Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) Compensatory Arrangements of Certain Officers

Amended and Restated Employment Agreements

On January 10, 2020, Verrica Pharmaceuticals Inc. (the “Company”) entered into amended and restated employment agreements (the “A&R Employment Agreements”) with Ted White and Joe Bonaccorso (each an “Executive” and collectively, the “Executives”).

The A&R Employment Agreements amend and restate each Executive’s prior employment agreement with the Company. The A&R Employment Agreements provide for an initial annualized base salary of $440,000, and $374,500 for Messrs. White and Bonaccorso, respectively. The A&R Employment Agreements also provide for a discretionary annual performance bonus with a target amount equal to a percentage of the Executive’s annual base salary based upon our Board of Directors’ assessment of each individual and the Company’s attainment of goals as set by the Board of Directors in its sole discretion. The A&R Employment Agreements provide for initial target bonus opportunities of 45% of base salary for Mr. White and 40% of base salary for Mr. Bonaccorso. In addition, pursuant to the A&R Employment Agreements, each executive is eligible to receive annual equity compensation awards pursuant to the Company’s 2013 Equity Incentive Plan (the “Plan”) on such terms and conditions as determined by the Board of Directors or a committee thereof.

Pursuant to the terms of the A&R Employment Agreements, each Executive’s employment is at will and may be terminated at any time by us or the Executive. If the Executives’ employment is terminated by us without cause or by the Executive for good reason, then the terminated Executive would be eligible to receive severance benefits. The length of severance benefits that Executive would receive depends on (i) when his employment is terminated and (ii) whether or not he is terminated in connection with a change in control.

If Mr. White’s employment is terminated by the Company without Cause (as defined in the Employment Agreement) or if the Mr. White resigns with Good Reason (as defined in the Employment Agreement), then Mr. White would be entitled to 12 months of severance benefits. If Mr. Bonaccorso’s employment is terminated by the Company without Cause or if Mr. Bonaccorso resigns with Good Reason (an “Involuntary Termination”) on or before February 7, 2020, then he would be entitled to 6 months of severance benefits and if an Involuntary Termination occurs after February 7, 2020, then Mr. Bonaccorso would be entitled to 12 months of severance benefits. During the applicable severance period, each Executive would receive the following severance benefits, less applicable tax withholding:

If the Executive’s employment is terminated by the Company without Cause or if the Executive resigns with Good Reason, in either case within 12 months following or 1 month prior to the effective date of a Change in Control, then the Executive would be entitled to the following severance benefits, less applicable tax withholding:

The foregoing description of the A&R Employment Agreements are not complete and is qualified in its entirety by reference to the A&R Employment Agreements, which will be filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ending December 31, 2019.