This Agreement (“Agreement”) made as of this 20th day of September, 2006, between DUSA
Pharmaceuticals, Inc., a New Jersey corporation (“DUSA”) and Michael Todisco (“Todisco”).
WHEREAS, Todisco has been employed by DUSA since May 2, 2005 and DUSA wishes to promote
NOW THEREFORE, in consideration of the mutual covenants and promises, the parties agree as follows:
1. Employment : DUSA hereby employs Todisco and he hereby accepts such employment as the Vice
President, Controller. Todisco agrees to work on a full-time basis and to devote his best efforts and spend as
much time and attention as is necessary to manage the financial affairs of DUSA for which he is responsible.
Todisco shall report to the Chief Financial Officer of DUSA or other senior management officer as may be
determined from time to time.
2. Duties and Responsibilities : Notwithstanding any language contained herein to the contrary, Todisco
shall be responsible (by way of example and not by way of limitation) for:
3. Remuneration : DUSA will pay to Todisco a base salary equal to One Hundred Fifty Thousand Dollars
($150,000.00) per annum from time to time at intervals consistent with DUSA’s administrative practices, and a
retention bonus of Forty Thousand Dollars ($40,000.00) to be paid in a lump sum in the payroll period
immediately following execution of this Agreement. The base salary shall be reviewed by the Board of Directors
of DUSA from time to time, not less than on an annual basis, beginning in January 2007. Any salary increases
shall be determined by, and shall be made at the sole discretion of the Board. Following the end of each fiscal
year, the Board may award a cash bonus to Todisco in an amount up to 30% of his current base salary for such
year, as determined by the Board in its sole discretion. For purposes of awarding the total amount of such bonus,
mutually agreeable performance objectives will be set at the beginning of an