WATSON PHARMACEUTICALS INC
KEY EMPLOYMENT AGREEMENT WITH CHARLES EBERT
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<TYPE>EX-10.1
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<FILENAME>dex101.htm
<DESCRIPTION>KEY EMPLOYMENT AGREEMENT WITH CHARLES EBERT
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<TITLE>Key Employment Agreement with Charles Ebert</TITLE>
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  <p align=right><font size=2 face="Times New Roman"><b>EXHIBIT 10.1</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>WATSON PHARMACEUTICALS, INC.</b></font></p> <p align=center><font size=2
face="Times New Roman"><b>KEY EMPLOYEE AGREEMENT</b></font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Key Employee Agreement (&#147;Agreement&#148;) is entered into as of August 15,
2002 (the &#147;Effective Date&#148;), by and between Charles Ebert, Ph.D. (&#147;Executive&#148;) and Watson Pharmaceuticals, Inc. (the &#147;Company&#148;), a Nevada corporation.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Whereas</b>, the Company and the Executive are parties to that certain Watson Pharmaceuticals, Inc. Key Employee Agreement dated June 30, 1999, as amended by that
certain Amendment No. 1 to Watson Pharmaceuticals, Inc. Key Employee Agreement dated November 15, 2000 (collectively the &#147;Original Agreement&#148;); and</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Whereas</b>, the Company and Executive wish to amend and restate the Original Agreement in accordance with the terms of this Agreement; and</font></p> <p><font
size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Whereas</b>, the Company desires to employ Executive to provide personal services to the Company, and wishes to provide Executive with certain compensation
and benefits in return for his services; and</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Whereas</b>, Executive wishes to be employed by the Company and provide personal services
to the Company in return for certain compensation and benefits, including the benefits provided under this Agreement;</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Now,
Therefore</b>, in consideration of the mutual promises and covenants contained herein, it is hereby agreed by and between the parties hereto as follows:</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>1.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Employment by the Company.</b>&#160;&#160; Subject to terms set forth herein, the Company agrees to
employ Executive in the position of Senior Vice President, Research &amp; Development, and Executive hereby accepts employment effective as of the Effective Date.&#160; In this position, Executive shall perform such duties as are assigned from time
to time by the Chief Executive Officer (&#147;CEO&#148;) of the Company or such other officer of the Company or one of its subsidiaries that the CEO in his discretion may from time to time designate (the &#147;Designated Officer,&#148; who shall
hold the title of President, Chief Operating Officer, or higher position of such entity), consistent with the Bylaws of the Company and as may be required by the Company&#146;s Board of Directors (the &#147;Board&#148;).&#160; During his employment
with the Company, Executive will devote his best efforts and substantially all of his business time and attention (except for vacation periods as set forth herein and reasonable periods of illness or other incapacity permitted by the Company&#146;s
general employment policies) to the business of the Company.&#160; Executive shall abide by the general employment policies and procedures of the Company, except that wherever the terms of this Agreement may differ from or are in conflict with the
Company&#146;s general employment policies or procedures, this Agreement shall control.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation.</b></font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salary.</b>&nbsp;
&nbsp;For services to be rendered hereunder, Executive shall receive a base salary as set forth in Section 1 of the Compensation and Severance Terms Schedule, </font></p> <p align=center><font size=2 face="Times New Roman">1.</font></p>

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  <font size=2 face="Times New Roman"><b><BR> </b></font> <p><font size=2 face="Times New Roman">attached hereto as Exhibit A.&#160; Executive will be considered annually for increases in base salary in accordance with
Company policy and subject to review and approval by the CEO, Designated Officer, or the Compensation Committee of the Board, as appropriate.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonus.</b>&#160;
Executive shall be eligible to participate in the Company&#146;s bonus plan at the executive level throughout the duration of Executive&#146;s employment with the Company.&#160; The Company shall have the sole discretion to determine whether
Executive is entitled to any such bonus and to determine the amount of the bonus.&#160; The amount of Executive&#146;s bonus may be determined in part based on Executive&#146;s performance with respect to certain goals established by the Company and
attainment by the Company of its planned financial objectives for the bonus period.&#160; Notwithstanding the foregoing, no bonus is guaranteed to Executive.&#160; Any bonus is subject to the approval of the CEO, Designated Officer, or the
Compensation Committee of the Board, as appropriate.&#160; The Company retains the authority to review, grant, deny or revise any bonus in its sole discretion.&#160; To be eligible to receive a bonus, Executive must remain in employment with the
Company throughout the entire fiscal year or as otherwise set forth in the applicable bonus plan.&#160; The target level of such bonus is set forth in Section 2 of Exhibit A attached hereto. </font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
Options.</b>&#160; In addition to any stock options which the Company may have already granted to Executive prior to the Effective Date, subject to approval of the Board or the Compensation Committee of the Board, as appropriate, Executive will
receive the stock option grants (if any) set forth in Section 3 of Exhibit A, and such additional grants of stock options as may from time to time be granted, pursuant to the terms and conditions set forth in the applicable stock option agreement
and plan documents, copies of which will be made available upon Executive&#146;s request.&#160; For the purposes of this Agreement, all stock options granted to Executive by the Company prior to the Effective Date, granted hereunder, or granted in
the future shall be referred to hereinafter as the &#147;Options.&#148;</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid Time
Off.</b>&#160; Executive shall be eligible to accrue paid time off (&#147;PTO&#148;) during the term of this Agreement, in accordance with the Company&#146;s standard policy regarding PTO and in an amount commensurate with other employees at a level
similar to that of the Executive.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standard Company
Benefits.</b>&#160; Executive shall be entitled to all rights and benefits for which he is eligible under the terms and conditions of the standard Company benefits plans (e.g., health and disability insurance, 401(k) retirement plan, etc.) and other
benefits and incentives which may be in effect from time to time and provided by the Company to employees at levels similar to the Executive.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proprietary Information and Inventions.</b></font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Executive agrees to execute and abide by the Employee Proprietary Information and
Inventions Agreement attached hereto as Exhibit C and made a part hereof by this reference.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Activities.</b></font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Activities.</b>&#160;
Except with the prior written consent of the CEO or the Board, as appropriate, Executive will not during his employment with the Company undertake or engage</font></p> <p align=center><font size=2 face="Times New Roman">2.</font></p>

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  <p><font size=2 face="Times New Roman">in any other employment, occupation or business enterprise, other than ones in which Executive is a passive investor.&#160; Executive may engage in civic and not-for-profit
activities so long as such activities do not materially interfere with the performance of his duties hereunder. Executive will not during his employment with the Company publicly disparage the Company or any of its subsidiaries, or their respective
past or present products, officers, directors, employees or agents.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments and
Interests</b>. During his employment by the Company, Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by him to be adverse to or in conflict with the interest of the
Company, its business or prospects, financial or otherwise. By way of clarification, nothing contained in this Agreement shall prevent Executive from holding, for investment purposes only, no more than one percent (1%) of the capital stock of any
publicly traded company.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Non-Competition</b>.&#160; During his employment by the Company, except on behalf of the Company, Executive will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative,
consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever known by him to compete directly
with the Company, anywhere in the world, in any line of business engaged in (or planned to be engaged in) by the Company.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Agreements.</b></font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive represents and warrants that his employment by the Company will not conflict
with and will not be constrained by any prior agreement or relationship with any third party.&#160; Executive represents and warrants that he will not disclose to the Company or use on behalf of the Company any confidential information governed by
any agreement with any third party except in accordance with an agreement between the Company and any such third party.&#160; During Executive&#146;s employment by the Company, Executive may use, in the performance of his duties, all information
generally known and used by persons with training and experience comparable to his own and all information which is common knowledge in the industry or otherwise legally in the public domain.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination Of Employment.</b></font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At-Will
Employment.</b>&#160; Executive&#146;s relationship with the Company is at-will.&#160; The Company shall have the right to terminate Executive&#146;s employment with the Company at any time with or without Cause and with or without
notice.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination by Company for
Cause.</b>&#160; If the Company terminates Executive&#146;s employment at any time for Cause, Executive&#146;s salary shall cease on the date of termination; and Executive will not be entitled to severance pay, pay in lieu of notice or any other
such compensation.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;<b>(a)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Definition of &#147;Cause.&#148;</b>&#160; For purposes of this Agreement, &#147;Cause&#148; shall mean (i)&nbsp;Executive&#146;s conviction of any felony; or, (ii)&nbsp;Executive&#146;s gross
misconduct, material violation of Company policy, or material breach of Executive&#146;s duties to the Company,</font></p> <p align=center><font size=2 face="Times New Roman">3.</font></p>

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 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2 face="Times New Roman">which Executive fails to correct within thirty (30) days after Executive is given written notice by the CEO or the Board, as
appropriate.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination by Company
Without Cause.</b>&#160; If the Company terminates Executive&#146;s employment at any time without Cause, Executive shall be entitled to severance benefits as set forth in Section 4.1 of the Compensation and Severance Terms Schedule, attached hereto
as Exhibit A.&#160; </font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Executive&#146;s
Voluntary Resignation.</b>&#160; Executive may terminate his employment with the Company at any time, with or without Good Reason, and with or without notice.&#160; In the event Executive voluntarily terminates his employment other than for Good
Reason, he will not be entitled to severance pay, pay in lieu of notice or any other such compensation.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive&#146;s Resignation
for Good Reason.</b>&#160; Executive may resign his employment for Good Reason so long as Executive tenders his resignation to the Company within sixty (60) days after the occurrence of the event which forms the basis for his termination for Good
Reason.&#160; If Executive terminates his employment for Good Reason, Executive shall be eligible for severance benefits as set forth in Section 4.2 of Exhibit A, attached hereto. </font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;<b>(a)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Definition of &#147;Good Reason.&#148;</b>&#160; For purposes of this Agreement, &#147;Good Reason&#148; shall mean any one of the following events which occurs on or after the Effective
Date:&#160; (i) any material reduction of the Executive&#146;s then existing annual base salary, except to the extent the annual base salary of all other executive officers of the Company is similarly reduced (provided such reduction does not exceed
fifteen percent (15%) of Executive&#146;s then existing annual base salary); (ii) any material reduction in the package of benefits and incentives, taken as a whole, provided to the Executive (except that employee contributions may be raised to the
extent of any cost increases imposed by third parties) or any action by the Company which would materially and adversely affect the Executive&#146;s participation or reduce the Executive&#146;s benefits under any such plans, except to the extent
that such benefits and incentives of all other executive officers of the Company are similarly reduced; (iii) any material diminution of the Executive&#146;s duties and responsibilities, taken as a whole, excluding for this purpose (A) a diminution
of duties and responsibilities that occurs as a consequence of a restructuring of the Company&#146;s business, or (B) an isolated, insubstantial or inadvertent action not taken in bad faith which is remedied by the Company immediately after notice
thereof is given by the Executive; (iv) following a Change of Control, any diminution of the Executive&#146;s duties, responsibilities, authority, reporting structure, titles or offices, excluding for this purpose an isolated, insubstantial or
inadvertent action not taken in bad faith which is remedied by the Company immediately after notice thereof is given by the Executive; (v) any material breach by the Company of its obligations under this Agreement; (vi) any failure by the Company to
obtain the assumption of this Agreement by any successor or assign of the Company; or (vii) any requirement that the Executive relocate to a work site that would increase the Executive&#146;s one-way commute distance by more than thirty-five (35)
miles from his then principal residence to the Company&#146;s facility in Salt Lake City, Utah, unless the Executive accepts such relocation opportunity.</font></p> <p align=center><font size=2 face="Times New Roman">4.</font></p>

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 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination for Death or
Disability</b>.&#160; Executive&#146;s employment with the Company will be terminated in the event of Executive&#146;s death, or any illness, disability or other incapacity in such a manner that Executive is physically rendered unable regularly to
perform his duties hereunder for a period in excess of one hundred eighty (180) consecutive days or more than one hundred eighty (180) days in any consecutive twelve (12) month period.&#160; The determination regarding whether Executive is
physically unable regularly to perform his duties shall be made by the Board.&#160; Executive&#146;s inability to be physically present on the Company&#146;s premises shall not constitute a presumption that Executive is unable to perform such
duties.&#160; In the event that Executive&#146;s employment with the Company is terminated for death or disability as described in this Section 6.6, Executive or Executive&#146;s heirs, successors, and assigns shall not receive any compensation or
benefits other than payment of accrued salary and PTO and such other benefits as expressly required in such event by applicable law or the terms of applicable benefit plans.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Cessation.</b>&#160;
If Executive violates any provision of Section 8 of this Agreement or the Employee Proprietary Information and Inventions Agreement and Executive fails to correct such violation within ten (10) days after Executive is given written notice by the CEO
or the Board, as appropriate, then any severance payments or other benefits being provided to Executive will cease immediately, and Executive will not be entitled to any further compensation from the Company.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change of Control.</b></font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definition.</b>&#160; For
purposes of this Agreement, Change of Control means the occurrence of any of the following:&#160; </font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>a sale of assets representing fifty percent (50%) or more of the net book value and of the fair market value of the Company&#146;s consolidated assets (in a single transaction or in a series of related
transactions); </font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>a liquidation or dissolution of the Company;</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<b>(c)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a merger or consolidation involving the Company or any subsidiary of the Company after the completion of which: (i) in the case of a merger (other than a triangular merger) or a consolidation involving
the Company, the shareholders of the Company immediately prior to the completion of such merger or consolidation beneficially own (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;), or comparable successor rules), directly or indirectly, outstanding voting securities representing less than sixty percent (60%) of the combined voting power of the surviving entity in such merger or consolidation, and (ii) in the case
of a triangular merger involving the Company or a subsidiary of the Company, the shareholders of the Company immediately prior to the completion of such merger beneficially own (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or
comparable successor rules), directly or indirectly, outstanding voting securities representing less than sixty percent (60%) of the combined voting power of the surviving entity in such merger and less than sixty percent (60%) of the combined
voting power of the parent of the surviving entity in such merger; </font></p> <p align=center><font size=2 face="Times New Roman">5.</font></p>

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face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<b>(d)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an acquisition by any person, entity or &#147;group&#148; (within the meaning of Section 13(d) or 14(d) of the Exchange Act or any comparable successor provisions), other than any employee benefit plan,
or related trust, sponsored or maintained by the Company or an affiliate of the Company and other than in a merger or consolidation of the type referred to in clause &#147;(c)&#148; of this sentence, of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act, or comparable successor rules) of outstanding voting securities of the Company representing more than thirty percent (30%) of the combined voting power of the Company (in a single transaction or series
of related transactions); or </font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(e)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the event that the individuals who, as of the Effective Date, are members of the Board (the &#147;Incumbent Board&#148;), cease for any reason to constitute at least fifty percent (50%) of the
Board.&#160; (If the election, or nomination for election by the Company&#146;s shareholders, of any new member of the Board is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new member of the Board shall be
considered as a member of the Incumbent Board.)</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Termination After a
Change of Control.</b>&#160; In the event Executive&#146;s employment with the Company is terminated without Cause, or Executive resigns for Good Reason, within ninety (90) days prior to or twenty-four (24) months following a Change of Control (a
&#147;Change of Control Termination&#148;), then Executive shall be eligible for severance benefits as set forth in Section 4.3 of Exhibit A, attached hereto.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Parachute
Payments.</b>&#160; In the event that it shall be determined under this Section 7.3 that any payment or benefit to Executive or for the benefit of Executive or on Executive&#146;s behalf (whether paid or payable or distributed or distributable)
pursuant to the terms of this Agreement or any other agreement, arrangement or plan with the Company or any Affiliate (as defined below) (including, without limitation, the severance benefits as set forth in Section 4.3 of Exhibit A, attached
hereto) (individually, a &#147;Payment&#148; and collectively, the &#147;Payments&#148;) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), or any successor provision
thereto (the &#147;Excise Tax&#148;), then Executive shall be entitled to receive from the Company one or more additional payments (individually, a &#147;Gross-Up Payment&#148; and collectively, the &#147;Gross-Up Payments&#148;) in an aggregate
amount such that the net amount of the Payments and the Gross-Up Payments retained by Executive after the payment of all Excise Taxes (and any interest and penalties imposed with respect to such Excise Taxes) on the Payments and all federal, state
and local income tax, employment taxes and Excise Taxes (including any interest and penalties imposed with respect to such taxes and Excise Taxes) on the Gross-Up Payments provided for in this Section 7.3, and taking into account any lost or reduced
tax deductions on account of the Gross-Up Payments, shall be equal to the Payments.&#160; For purposes of this Section 7.3, an &#147;Affiliate&#148; shall mean any successor to all or substantially all of the business and/or assets of the Company,
any person acquiring ownership or effective control of the Company or ownership of a substantial portion of the assets of the Company&#146;s assets, or any other person whose relationship to the Company, such successor or such person acquiring
ownership or control is such as to require attribution between the parties under Section 318(a) of the Code.</font></p> <p align=center><font size=2 face="Times New Roman">6.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<b>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>All determinations required to be made under this Section 7.3, including whether and when any Gross-Up Payment is required and the amount of such Gross-Up Payment, and the assumptions to be utilized in
arriving at such determinations, shall be made by the Accountants (as defined below), which shall provide Executive and the Company with detailed supporting calculations with respect to such Gross-Up Payment within thirty (30) days of the receipt of
notice from Executive or the Company that Executive has received or will receive a Payment.&#160; For the purposes of this Section 7.3, the &#147;Accountants&#148; shall mean the Company&#146;s independent certified public accounting firm serving
immediately prior to the Change of Control (or other change in ownership or effective control, or change in ownership of a substantial portion of the assets, of a corporation, as defined in Section 280G of the Code) with respect to which such
determination is being made.&#160; In the event that the Accountants are also serving as the accountants, auditors or consultants for the individual, entity or group effecting the Change of Control (or other change in ownership or effective control,
or change in ownership of a substantial portion of the assets, of a corporation, as defined in Section 280G of the Code), the Company shall appoint another nationally recognized independent certified public accounting firm, reasonably acceptable to
Executive, to make the determinations required hereunder (which accounting firm shall then be referred to as the &#147;Accountants&#148; hereunder).&#160; All fees and expenses of the Accountants shall be borne solely by the Company.&#160;
</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<b>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>For the purposes of determining whether any of the Payments will be subject to the Excise Tax and the amount of such Excise Tax, such Payments will be treated as &#147;parachute payments&#148; within the
meaning of section 280G of the Code, and all &#147;parachute payments&#148; in excess of the &#147;base amount&#148; (as defined under Section 280G(b)(3) of the Code) of Executive shall be treated as subject to the Excise Tax, unless and except to
the extent that, in the opinion of the Accountants, such Payments (in whole or in part) either do not constitute &#147;parachute payments&#148; or represent reasonable compensation for services actually rendered (within the meaning of section
280G(b)(4) of the Code) in excess of the &#147;base amount,&#148; or such &#147;parachute payments&#148; are otherwise not subject to such Excise Tax.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(c)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the amount of the Gross-Up Payment, Executive shall be deemed to pay federal income taxes at the highest applicable marginal rate of federal income taxation for the calendar year
in which the Gross-Up Payment is to be made and to pay any applicable state and local income taxes at the highest applicable marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in
federal income taxes which could be obtained from the deduction of such state or local taxes if paid in such year (determined without regard to limitations on deductions based upon the amount of Executive&#146;s adjusted gross income); and to have
otherwise allowable deductions for federal, state and local income tax purposes at least equal to those disallowed because of the inclusion of the Gross-Up Payment in Executive&#146;s adjusted gross income.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<b>(d)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any determination by the Accountants shall be binding upon the Company and Executive.&#160; As a result of uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accountants hereunder, it is possible that the Gross-Up Payment made will have been an amount less than the Company should have paid pursuant to this Section 7.3 (the &#147;Underpayment&#148;).&#160; In the event that the
Company exhausts its</font></p> <p align=center><font size=2 face="Times New Roman">7.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2 face="Times New Roman">remedies pursuant to Section 7.3(f) and Executive is required to make a payment of any Excise Tax, the Underpayment shall be
promptly paid by the Company to or for Executive&#146;s benefit.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(e)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive shall notify the Company in writing of any claim by the Internal Revenue Service or other taxing authority that, if successful, would require the payment by the Company of a Gross-Up Payment.
&#160;Such notification shall be given as soon as practicable after Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid.&#160; Executive
shall not pay such claim prior to the expiration of the 30-day period following the date on which Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes, interest and/or penalties with respect
to such claim is due).&#160; If the Company notifies Executive in writing prior to the expiration of such period that the Company desires to contest such claim, Executive shall:&#160; (i) give the Company any information reasonably requested by the
Company relating to such claim; (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, engaging legal representation with respect to such
claim by an attorney selected by the Company and reasonably acceptable to Executive; (iii) cooperate with the Company in good faith in order to effectively contest such claim; and (iv) permit the Company to participate in any proceedings relating to
such claims; <i>provided, however</i>, that the Company shall bear and pay directly all costs and expenses, including attorneys&#146; fees (including additional interest and penalties) incurred in connection with such contest and shall indemnify
Executive for and hold Executive harmless from, on an after-tax basis, any Excise Tax or income, employment or other taxes (including interest and penalties with respect thereto) imposed as a result of such representation and payment of all related
costs and expenses. </font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(f)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the foregoing provisions of this Section 7.3, the Company shall control all proceedings taken in connection with such contest and, at the Company&#146;s sole option, may pursue or forgo any
and all administrative appeals, proceedings, hearings and conferences with the Internal Revenue Service or other taxing authority in respect of such claim and may, at the Company&#146;s sole option, either direct Executive to pay the amount claimed
and sue for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; <i>provided, however</i>, that if the Company directs Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to Executive, on an interest-free basis, and shall indemnify
Executive for and hold Executive harmless from, on an after-tax basis, any Excise Tax or income, employment or other taxes (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance (including as a result of any forgiveness by the Company of such advance); <i>provided, further</i>, that any extension of the statute of limitations relating to the payment of taxes, interest and penalties for
the taxable year of Executive with respect to which such contested amount is claimed to be due shall be limited solely to such contested amount.&#160; Furthermore, the Company&#146;s control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.</font></p> <p align=center><font
size=2 face="Times New Roman">8.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<b>(g)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gross-Up Payments provided for in this Section 7.3 shall be paid to Executive not later than the date upon which the severance benefits payable to Executive under Section 4.3 of Exhibit A, attached
hereto, are due; <i>provided, however</i>, that if the amounts of such Gross-Up Payments cannot be finally determined by the Accountants on or before such day, the Company shall pay to Executive on such day an estimate, as determined in good faith
by the Company, of the minimum amount of such Gross-Up Payments and shall pay the remainder of such Gross-Up Payments (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) not later than 30 days after the amount thereof
can be determined by the Accountants.&#160; In the event that the amount of the estimated payments exceeds the amount subsequently determined by the Accountants to have been due to the Executive, such excess shall constitute a loan by the Company to
Executive, payable not later than 30 days after such determination and demand by the Company (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>8.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Nonsolicitation.</b>&#160; While employed by the Company, and for one (1) year following the
termination of Executive&#146;s employment with the Company, Executive agrees not to solicit, attempt to solicit, induce, or otherwise cause any employee or independent contractor of the Company to terminate his or her employment or contractual
relationship in order to become an employee or independent contractor to or for Executive or any other person or entity.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Release.</b>&#160; In exchange for the severance compensation and benefits provided under this
Agreement to which Executive would not otherwise be entitled, Executive shall enter into and execute a release substantially in the form attached hereto as Exhibit B (the &#147;Release&#148;) upon Executive&#146;s termination of employment.&#160;
Unless the Release is executed by Executive and delivered to the Company within twenty-one (21) days (forty-five (45) days in the event of a group termination) after the termination of Executive&#146;s employment with the Company, Executive shall
not receive any severance benefits provided under this Agreement, acceleration, if any, of Executive&#146;s Options as provided in this Agreement shall not apply and Executive&#146;s Options in such event may be exercised following the date of
Executive&#146;s termination only to the extent provided under their original terms in accordance with the applicable stock option plan and option agreements.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Provisions.</b></font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices.</b>&#160; Any
notices provided hereunder must be in writing and shall be deemed effective upon personal delivery (including, personal delivery by facsimile transmission) or the third day after mailing by first class mail, to the Company at its primary office
location and to Executive at his address as listed on the Company payroll (which address may be changed by written notice).</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severability.</b>&#160;
Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity or unenforceability will not affect any other provision or any other jurisdiction, and such invalid or unenforceable provision shall be</font></p> <p align=center><font size=2
face="Times New Roman">9.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2 face="Times New Roman">reformed, construed and enforced in such jurisdiction so as to render it valid and enforceable consistent with the intent of the
parties insofar as possible.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waiver.</b>&#160; If either
party should waive any breach of any provisions of this Agreement, he or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Entire
Agreement.</b>&#160; This Agreement, together with the Employee Proprietary Information and Inventions Agreement, constitute the final, complete, and exclusive embodiment of the entire agreement between Executive and the Company regarding the
subject matter hereof and supersede any prior agreement, promise, representation, or statement, written or otherwise, between Executive and the Company with regard to this subject matter. This Agreement is entered into without reliance on any
promise, representation, statement or agreement other than those expressly contained or incorporated herein, and it cannot be modified or amended except in a writing signed by Executive and a duly authorized officer of the Company.</font></p>
<p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.</b>&#160;
This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Headings.</b>&#160; The
headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successors and
Assigns.</b>&#160; This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive, the Company and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign any of
his duties hereunder and he may not assign any of his rights hereunder without the written consent of the Company, which shall not be withheld unreasonably.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attorneys&#146;
Fees.</b>&#160; If either party hereto brings any action to enforce his or its rights hereunder, the prevailing party in any such action shall be entitled to recover his or its reasonable attorneys&#146; fees and costs incurred in connection with
such action. </font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arbitration.</b>&#160; To
provide a mechanism for rapid and economical dispute resolution, Executive and the Company agree that any and all disputes, claims, or causes of action, in law or equity, arising from or relating to this Agreement (including the Release) or its
enforcement, performance, breach, or interpretation, will be resolved, to the fullest extent permitted by law, by final, binding, and confidential arbitration held in Orange County, California and conducted by Judicial Arbitration &amp; Mediation
Services/Endispute (&#147;JAMS&#148;), under its then-existing Rules and Procedures.&#160; Nothing in this Section 10.9 or in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent
irreparable harm pending the conclusion of any such arbitration.</font></p> <p align=center><font size=2 face="Times New Roman">10.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>10.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remedies.</b>&#160; Executive&#146;s
duties under Section 8 and the Employee Proprietary Information and Inventions Agreement shall survive termination of Executive&#146;s employment with the Company.&#160; Executive acknowledges that a remedy at law for any breach or threatened breach
by Executive of the provisions of these sections and the Employee Proprietary Information and Inventions Agreement would be inadequate, and that such a breach would cause irreparable harm to the Company; and Executive therefore agrees that the
Company shall be entitled to injunctive relief in case of any such breach or threatened breach.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>10.11</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Governing Law.</b>&#160; All
questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of California as applied to contracts made and to be performed entirely within California.</font></p> <p><font size=2
face="Times New Roman"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Witness Whereof</b>, the parties have executed this Agreement effective as of the Effective Date above written.</font></p> <p><font size=2
face="Times New Roman"><b>WATSON PHARMACEUTICALS, INC. </b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td colspan="4" valign=bottom> <p><font size=2 face="Times New Roman">By: &nbsp;&nbsp;&nbsp;/s/ ALLEN CHAO</font><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="3%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="33%" colspan="2" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="62%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="3%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Name: Allen Chao</font></p> </td> </tr>
<tr>
<td width="3%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="96%" colspan="3" valign=bottom> <p><font size=2 face="Times New Roman">Title: Chief Executive Officer</font></p> </td> </tr>
<tr>
<td> &nbsp;&nbsp; </td> </tr>
<tr>
<td width="10%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="89%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="10%" colspan="2" valign=bottom> <p><font size=2 face="Times New Roman"><b>Executive:</b></font></p> </td>
<td width="89%" colspan="2" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="37%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="62%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="37%" colspan="3" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;/s/ CHARLES EBERT</font></p> </td>
<td width="62%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="37%" colspan="3" valign=bottom> <hr size=1 width="100%" noshade color=black align=center> </td>
<td width="62%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td colspan="4" valign=bottom> <p><font size=2 face="Times New Roman">Name: Charles Ebert, Ph.D.</font></p> </td> </tr>
<tr>
<td width=27 height="2"></td>
<td width=47 height="2"></td>
<td width=193 height="2"></td>
<td width=454 height="2"></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">11.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <font size=2 face="Times New Roman"><BR> </font> <p align=center><font size=2 face="Times New Roman"><b>Exhibit A</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>COMPENSATION AND SEVERANCE TERMS
SCHEDULE</b></font></p> <p><font size=2 face="Times New Roman"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BASE SALARY</b></font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For services to be rendered under this Agreement, Executive shall receive an initial base salary at an annualized rate of $350,000, payable in accordance
with the Company&#146;s standard payroll practices, and subject to increases as set forth in the Agreement.</font></p> <p><font size=2 face="Times New Roman"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BONUS</b></font></p> <p><font
size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive&#146;s annual bonus, if granted, shall be at a target level of 30% of the Executive&#146;s then current base salary.</font></p> <p><font
size=2 face="Times New Roman"><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCK OPTIONS</b></font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the Effective
Date, Executive has outstanding option(s) to purchase the number of shares of Company common stock as indicated on Attachment A to this Exhibit A.</font></p> <p><font size=2
face="Times New Roman"><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVERANCE BENEFITS</b></font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>4.1&nbsp;&nbsp;&nbsp;&nbsp;Termination By Company without Cause.</b>&#160; If the Company terminates Executive&#146;s employment at any time without
Cause, the Company shall provide to Executive, within thirty (30) days after the Effective Date of the Release attached hereto as Exhibit B (as &#147;Effective Date&#148; is defined in the Release), as the only severance compensation and benefits
all of the following:</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A lump sum
severance payment, subject to standard withholdings or deductions, in an amount equal to the sum of: (i) twenty-four (24) months of Executive&#146;s then base salary; (ii) two times Executive&#146;s target bonus to be earned for the year in which
termination occurs or two times the bonus amount paid to the Executive in the prior year, whichever is greater; and (iii) Executive&#146;s prorated bonus (based on Executive&#146;s target bonus amount) for the year in which the termination
occurs.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued group health insurance
benefits (e.g., medical, dental, vision, etc.) for Executive and Executive&#146;s eligible dependents for a period of up to eighteen (18) months under COBRA, and if Executive is not covered under the Company&#146;s group health insurance plan at the
end of eighteen (18) months, the Company shall use its best efforts to provide Executive and Executive&#146;s eligible dependents with comparable health insurance coverage for an additional period of up six (6) months, but the Company shall not be
obligated to pay more than one hundred fifty percent (150%) of the cost of COBRA coverage for such comparable coverage; provided, however, that in any event the Company&#146;s obligation to provide any health benefits pursuant to this sentence ends
when Executive becomes eligible for health insurance with a new </font></p> <font size=2 face="Times New Roman"> </font> <p align=center><font size=2 face="Times New Roman">1.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <BR> <p><font size=2 face="Times New Roman">employer (and Executive agrees to promptly notify the Company in writing of any such event of eligibility).</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outplacement services for one year with a nationally recognized
service selected by the Company.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>4.2</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Executive&#146;s Resignation for Good Reason.</b>&#160; If
Executive terminates his employment with the Company for Good Reason, the Company shall provide to Executive, within thirty (30) days after the Effective Date of the Release attached hereto as Exhibit B (as &#147;Effective Date&#148; is defined in
the Release), as the only severance compensation and benefits, the same severance compensation and benefits provided in Section 4.1 hereof.</font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>4.3</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Change of Control Termination.</b>&#160; In the event of a Change of Control Termination, the Company shall provide to
Executive, within thirty (30) days after the Effective Date of the Release attached hereto as Exhibit B (as &#147;Effective Date&#148; is defined in the Release), as the only severance compensation and benefits, (a) the same severance compensation
and benefits provided in Section 4.1 hereof and, (b) any unvested Options held by Executive shall have their vesting accelerated in full so as to become one hundred percent (100%) vested and immediately exercisable in full as of the date of such
termination.</font></p> <p><font size=2 face="Times New Roman"><b>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relocation.</b></font></p> <p><font size=2 face="Times New Roman">Executive shall relocate his principal residence within the six months
following the Effective Date to a location in the Salt Lake City, Utah metropolitan area, and thereafter shall report to the Company&#146;s facility in Salt Lake City, Utah as his principal place of business.&#160; Executive shall be eligible to
receive such relocation assistance as offered generally by the Company to its executives pursuant to the Company&#146;s then existing policies as of the Effective Date; provided however, that should Executive&#146;s employment with the Company
terminate (other than by the Company without cause) within two (2) years of the Effective Date, Executive will reimburse the Company for such relocation expenses incurred by the Company.&#160; Concurrently with the execution of this Agreement,
Executive agrees to execute a Relocation Reimbursement Agreement in a form acceptable to the Company.</font></p> <font size=2 face="Times New Roman"></font> <p align=center><font size=2 face="Times New Roman">2.</font></p>

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 <BR> <p align=center><font size=2 face="Times New Roman"><b>Exhibit B</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>RELEASE AGREEMENT</b></font></p> <p><font size=2 face="Times New Roman">I
understand that my position with Watson Pharmaceuticals, Inc. (the &#147;Company&#148;) terminated effective _______________ (the &#147;Separation Date&#148;).&#160; The Company has agreed that if I choose to sign this Release, the Company will,
within thirty (30) days after the Effective Date of this Release,&#160; pay me certain severance benefits (minus the standard withholdings and deductions) pursuant to the terms of the Key Employee Agreement (the &#147;Agreement&#148;) entered into
as of ______________, 2002, between myself and the Company, and any agreements incorporated therein by reference.&#160; I understand that I am not entitled to such severance benefits unless I sign this Release.&#160; I further understand that,
regardless of whether I sign this Release, the Company will pay me all of my accrued salary and paid time off through the Separation Date, to which I am entitled by law.</font></p> <p><font size=2 face="Times New Roman">In consideration for the
severance benefits I am receiving under the Agreement, I hereby release the Company and its officers, directors, agents, attorneys, employees, shareholders, parents, subsidiaries, and affiliates (&#147;Releasees&#148;) from any and all claims,
liabilities, demands, causes of action, attorneys&#146; fees, damages, or obligations of every kind and nature, whether they are now known or unknown, arising at any time prior to the date I sign this Release.&#160; This general release includes,
but is not limited to:&#160; all federal and state statutory and common law claims, claims related to my employment or the termination of my employment or related to breach of contract, tort, wrongful termination, discrimination, harassment,
defamation, fraud, wages or benefits, or claims for any form of equity or compensation.&#160; Notwithstanding the release in the preceding sentence, I am not releasing any right of indemnification I may have for any liabilities and costs of defense
(including without limitation reasonable attorneys&#146; fees) arising from my actions within the course and scope of my employment with the Company.</font></p> <p><font size=2 face="Times New Roman">In releasing claims unknown to me at present, I
am waiving all rights and benefits under Section 1542 of the California Civil Code, and any law or legal principle of similar effect in any jurisdiction:&#160; <b>&#147;A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.&#148;</b></font></p> <p><font size=2 face="Times New Roman">If I am forty (40) years of age or
older as of the Separation Date, I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the federal Age Discrimination in Employment Act of 1967, as amended (&#147;ADEA&#148;).&#160; I also acknowledge
that the consideration given for the waiver in the above paragraph is in addition to anything of value to which I was already entitled.&#160; I have been advised by this writing, as required by the ADEA that:&#160; (a) my waiver and release do not
apply to any claims that may arise after my signing of this Release; (b) I should consult with an attorney prior to executing this Release; (c) I have twenty-one (21) days (forty-five (45) days in the event of a group termination) within which to
consider this Release (although I may choose to voluntarily execute this Release earlier); (d) I have seven (7) days following the execution of this release to revoke the Release; and (e) this Release will not be effective until the eighth day after
this Release has been signed both by me and by the Company (&#147;Effective Date&#148;).</font></p> <p><font size=2 face="Times New Roman">I acknowledge that I remain bound by the Invention Assignment and Confidential Nondisclosure Agreement which I
signed in connection with my employment (&#147;Invention Agreement&#148;) and that the provisions of the Invention Agreement shall remain in full force and effect. In accordance with my existing and continuing obligations under the Invention
Agreement, I have returned to the Company all materials required to be returned pursuant to the Invention Agreement, as well as any other Company property in my possession.&#160; In consideration for the severance benefits I am receiving hereunder,
I agree that I will reasonably cooperate with the Company for ninety (90) days after the Separation Date to assure the smooth transition of pending matters and to answer questions which may arise from</font></p>

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 <font size=2 face="Times New Roman"><BR> </font> <p><font size=2 face="Times New Roman">time to time regarding my former duties and responsibilities.&#160; Effective as of the Separation Date, I resign any and all
offices and directorships with the Company and any of its affiliates, and will execute all documents reasonably requested by the Company or its affiliates to effectuate such resignations.&#160; Further, I agree that I will not hereafter disparage
the Company or any of the Releasees, either orally or in writing, to any person or entity.&#160; The Company agrees that its officers and directors will not disparage me, either orally or in writing, to any person or entity.</font></p>
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<td width="25%" valign=bottom> <p align=center><font size=2 face="Times New Roman">Date</font></p> </td>
<td width="19%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="54%" valign=bottom> <p><font size=2 face="Times New Roman"><b>[Employee]</b></font></p> </td> </tr>
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<tr>
<td width="25%" valign=bottom> <p align=center><font size=2 face="Times New Roman">Date</font></p> </td>
<td width="19%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td>
<td width="54%" valign=bottom> <p><font size=2 face="Times New Roman">WATSON PHARMACEUTICALS, INC.</font></p> </td> </tr>
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<td width="54%" valign=bottom> <p><Font size="2" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman">2.</font></p>

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<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <br> <font size=2 face="Times New Roman"></font> <p align=center><font size=2 face="Times New Roman"><b>Exhibit C</b></font></p> <p align=center><font size=2 face="Times New Roman"><b>EMPLOYEE PROPRIETARY INFORMATION
AND INVENTIONS AGREEMENT</b></font></p>
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