Exhibit 10.2
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (this “ Agreement ”) dated as of the
15th day of July, 2008, is made by and among Duramed
Pharmaceuticals, Inc., a Delaware corporation having its principal
executive offices at One Belmont Avenue, 11th Floor, Bala Cynwyd,
PA 19004 (the “ Company ”), Barr
Pharmaceuticals, Inc., a Delaware corporation having its principal
executive offices at 225 Summit Avenue, Montvale, New Jersey
07645-1523 (“ BPI ”), and G. Frederick Wilkinson
(the “ Employee ”).
WITNESSETH:
WHEREAS, the Company and the Employee
entered into an employment agreement dated as of January 5, 2006
(the “ Prior Agreement ”);
WHEREAS, the Company, BPI and the
Employee wish to amend and restate the Prior Agreement;
WHEREAS, the Company and BPI wish to
assure themselves of the services of the Employee and provide an
inducement for the Employee to remain in their employ; and
WHEREAS, the Employee is willing to
remain in the employ of the Company and BPI on the terms and
conditions hereafter set forth.
NOW, THEREFORE, the Company, BPI and
the Employee hereby agree that, effective as of the date first
stated above, the Prior Agreement is amended and restated in its
entirety to read as follows:
1. Employment . The
Company and BPI agree to employ the Employee, and the Employee
agrees to serve in the employ of the Company and BPI, during the
term of this Agreement on the terms and conditions hereafter set
forth.
2. Term . The term of
this Agreement shall commence on July 15, 2008 (the “
Commencement Date ”) and shall terminate at 5 P.M.
(E.S.T.) on December 31, 2009 unless sooner terminated in
accordance with the terms of this Agreement or extended as
hereinafter provided. The term of this Agreement shall be extended,
without further action by the Company, BPI or the Employee, on the
date (the “ Extension Effective Date ”) that is
six (6) months before December 31, 2009 and on the date
(also an “ Extension Effective Date ”) that is
six (6) months before each subsequent December 31, for
successive periods of twelve (12) months each, unless the
Company, BPI or an Affiliate shall have given written notice to the
Employee, or the Employee shall have given written notice to the
Company, in the manner set forth in paragraph 13(e) or
(f) below, prior to the Extension Effective Date in question,
that the term of this Agreement that is in effect at the time such
written notice is given is not to be extended or further extended,
as the case may be.
3. Position and
Responsibilities; Place of Performance .
(a) Throughout
the term of this Agreement, the Employee agrees to serve in the
employ of the Company and BPI, and the Company and BPI agree to
employ the Employee, as the Chief Executive Officer of the Company,
reporting to the Chief Executive Officer of BPI
(the
“ BPI CEO ”). As the Company’s Chief
Executive Officer, the Employee shall be responsible for directing,
managing and overseeing all commercial and developmental
proprietary pharmaceutical activities conducted by the BPI or any
Affiliate (as defined below), including sales, marketing, managed
care, clinical trials and medical affairs related to such
activities and including any such activities conducted by the
Company on behalf of BPI or any Affiliate, but excluding shared
services such as regulatory affairs, regulatory quality control,
information technology and systems, finance and human resources,
subject only to the authority of the BPI CEO and the Board of
Directors of BPI (the “ Board” ), and except for
the aforementioned exclusions, shall have all of the powers,
authority, duties and responsibilities usually incident to the
position and role of Chief Executive Officer of companies that are
comparable in size, character and performance to the Company, and
such other reasonable duties, consistent with the position of Chief
Executive Officer, as may lawfully be assigned to the Employee by
the Board or the BPI CEO.
(b) In
connection with the Employee’s employment by the Company and
BPI, the Employee shall be based at the principal executive offices
of BPI in the greater New York City metropolitan area, including
Montvale, New Jersey, and the Employee agrees to travel, to the
extent reasonably necessary to perform the Employee’s duties
and obligations under this Agreement, to Company facilities and
other destinations elsewhere at the Company’s expense.
(c) During
the term of this Agreement, the Employee shall serve the Company
and BPI on an exclusive basis (it being understood that the
Employee’s engaging in activities on behalf of an Affiliate
shall be deemed serving the Company and BPI for this purpose) and
shall devote all the Employee’s business time, attention,
skill and efforts to the faithful performance of the
Employee’s duties hereunder; provided that the Employee may
engage in community service and charitable activities or such other
activities as approved by the BPI CEO and the Board that do not
materially interfere with the performance of the Employee’s
duties and responsibilities hereunder.
4. Compensation . For
all services rendered by the Employee in any capacity during the
term of this Agreement, and for the Employee’s undertakings
with respect to confidential information, non-solicitation and
disparaging remarks set forth in Sections 6 and 7 below, the
Employee shall be entitled to the following:
(a) a
salary, payable in installments not less frequent than monthly, at
the annual rate of seven hundred thousand dollars ($700,000), with
such increases in such rate, if any, as the Board or a committee of
the Board may approve from time to time during the term of this
Agreement in accordance with the Company’s regular
administrative practices applicable to senior officers from time to
time during the term of this Agreement (the Employee’s annual
salary rate as increased from time to time during the term of this
Agreement being hereafter referred to as the “ Base
Salary ”);
(b) participation
in the Company’s annual executive incentive or bonus plan as
in effect from time to time, with the opportunity to receive, for
each fiscal year of the Company that begins or ends during the term
of this Agreement, a target award of seventy-five percent (75%) of
the Base Salary earned during such year (or such higher amount as
the Board or a committee of the Board may determine, in its
discretion, up to a maximum of the lesser of (i) one hundred
percent (100%) of Base Salary earned during such year or
(ii) three percent (3%) of the
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Company’s pre-tax and pre-bonus net operating income for such
year), in accordance with the terms and conditions of such
incentive or bonus plan, it being understood that any award for the
fiscal year of the Company in which the term of this Agreement
terminates pursuant to the terms hereof shall be prorated based on
the portion of such fiscal year that coincides with the term of
this Agreement and shall be made at the same time as awards (if
any) are made to other participants with respect to such fiscal
year. The Company will pay the Employee’s annual incentive
bonus for each year at the same time as annual incentive bonus
payments for such year (if any) are made to other participants with
respect to such fiscal year, and in all events within the two and
one half (2 1 /
2 ) months following the end of
the calendar year in which the bonus is earned. Annual incentive
bonuses are intended to qualify for the short-term deferral
exception to Section 409A of the Internal Revenue Code of
1986, as amended (the “ Code ”);
(c) participation
in the stock incentive plan applicable to Company officers as from
time to time in effect, subject to the terms and conditions of such
plan;
(d) the
business and personal use of an automobile at Company expense
including, without limitation, payment or reimbursement of
automobile insurance and maintenance expenses in accordance with
BPI’s automobile policy applicable to senior officers on the
Commencement Date, or, in lieu of the business and personal use of
an automobile at Company expense, a monthly cash allowance which
shall not be less than one thousand five hundred dollar ($1,500);
and
(e) participation
in all health, welfare, savings and other employee benefit and
fringe benefit plans (including vacation pay plans or policies and
life and disability insurance plans) in which other senior officers
of the Company participate during the term of this Agreement,
subject in all events to the terms and conditions of such plans as
in effect from time to time. Nothing in this paragraph
(e) shall preclude the Company, BPI or an Affiliate from
amending or terminating any such plan at any time prior to a Change
in Control or Potential Change in Control. The plans covered by
this paragraph (e) shall not include the annual incentive or
stock incentive plans, which are covered by paragraphs (b) and
(c) above.
5. Termination of
Employment .
(a)
Termination by the Company, BPI or an Affiliate without Good
Cause or by the Employee for Good Reason; Non-Renewal
Termination .
(i) If the Employee’s
employment with the Company and BPI is terminated by the Company,
BPI or an Affiliate without Good Cause (except as an incident of
assigning the rights to Employee’s services to a Permitted
Assignee in accordance with paragraph 13(d) below) when the
Employee is willing and able to continue performing service, or is
terminated by the Employee for Good Reason, in either case during
the term of this Agreement and other than at the expiration of the
term of this Agreement as the same may have been extended in
accordance with the provisions of Section 2 above (any such
employment termination being hereafter referred to as a “
Compensable Termination ”), the Company shall pay the
Employee, in accordance with normal payroll practices, the portion
of the Employee’s Base Salary accrued through the date of the
Compensable Termination and any other amounts to which the Employee
is entitled by law or pursuant to the terms of any compensation or
benefit plan or arrangement in which
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the Employee
participated prior to the Compensable Termination and, in addition,
subject to all of the provisions of this Section 5,
Section 14 below, and further subject to compliance by the
Employee with the provisions of Sections 6 and 7 below,
relating to confidential information, non-solicitation and
disparaging remarks, the Company shall, as liquidated damages or
severance pay or both (whichever characterization(s) will serve to
validate the payments), and as additional consideration for the
Employee’s undertakings under Sections 6 and 7 below,
pay the Employee the following:
(A) the Employee’s annual bonus
for the fiscal year of the Company preceding the fiscal year of the
Company in which the Compensable Termination occurs, if unpaid at
the time of the Compensable Termination. Such annual bonus shall be
paid at the same time as bonuses (if any) for such preceding fiscal
year are paid to other officers, and in all events within the first
two and one half (2 1 / 2 ) months of the fiscal year in which the
Compensable Termination occurs. The amount of such bonus shall be
determined by the Board or a committee of the Board on a basis
consistent with the prior bonus determinations with respect to the
Employee or, in the event a Change in Control or Potential Change
in Control (as defined in Section 11 below) occurred before the
Compensable Termination, consistent with the bonus determinations
with respect to the Employee prior to the Change in Control or
Potential Change in Control. If the Board or a committee of the
Board made no bonus determinations with respect to the Employee
before the Compensable Termination or, if applicable, before the
Change in Control or Potential Change in Control, the amount of
such bonus shall be determined on a basis consistent with the
Board’s or Board committee’s bonus determinations with
respect to other senior officers of the Company before the
Compensable Termination or, if applicable, before the Change in
Control or Potential Change in Control; and
(B) a prorated annual bonus for the
fiscal year of the Company in which the Compensable Termination
occurs, payable at the same time as bonuses (if any) for such
fiscal year are paid to other officers, and in all events within
the first two and one half (2 1 / 2 ) months of the fiscal year following the
fiscal year in which the Compensable Termination occurs. Such
prorated annual bonus shall be determined by multiplying the
“Applicable Average Bonus” as defined below in this
subparagraph 5(a)(i)(B) by a fraction, the numerator of which shall
be the number of days elapsed in such fiscal year through (and
including) the date on which the Compensable Termination occurs and
the denominator of which shall be the number three hundred
sixty-five (365). For purposes of this Agreement, the “
Applicable Average Bonus ” means the highest of
(I) the average annual bonus (including any portion of the
bonus that is deferred) awarded to the Employee during the three
(3)-year period immediately preceding the Compensable Termination
or, if the Employee was employed by the Company or BPI for less
than three (3) years before the Compensable Termination,
during the period of the Employee’s employment by the Company
or BPI prior to the Compensable Termination (annualizing any bonus
awarded for less than a full year of employment), (II) the
average annual bonus (including any portion of the bonus that is
deferred) awarded to the Employee during the three (3) fiscal
years
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of the Company
that precede the fiscal year in which the Compensable Termination
occurs or during the portion of such three (3) fiscal years in
which the Employee was employed by the Company or BPI (annualizing
any bonus awarded for less than a full year of employment);
provided that, if the Compensable Termination occurs after a Change
in Control or Potential Change in Control, the Applicable Average
Bonus shall not be less than the average annual bonus (including
any portion of the bonus that is deferred) awarded to the Employee
during the three (3) years preceding the date on which the
Change in Control or Potential Change in Control occurred or during
the portion of such three (3) years in which the Employee was
employed by the Company or BPI (annualizing any bonus awarded for
less than a full year of employment); or (III) the
Employee’s target bonus (based on the greatest of
(i) the Employee’s target bonus percentage and Base
Salary rate as specified in Section 4 above, (ii) the
Employee’s approved target bonus percentage and Base Salary
rate in effect on the date of the Compensable Termination, or
(iii) the Employee’s approved target bonus percentage
and Base Salary rate in effect on the date of notice of such
Compensable Termination); and
(C) an amount of money (the “
Severance Payment ”) equal to three (3) times the
Employee’s “Annual Cash Compensation” as
hereafter defined, unless the Severance Payment is payable solely
on account of the Employee’s resignation for Good Reason
pursuant to subparagraph 5(d)(v) below (relating to the Company,
BPI or an Affiliate giving the Employee notice of non-extension),
in which case the Severance Payment shall be equal to one and
one-quarter (1 1 /
4 ) times the Employee’s
“Annual Cash Compensation” as hereafter defined. Except
as otherwise provided hereafter in this subparagraph 5(a)(i)(C) and
Section 14, seventy-five percent (75%) of the Severance
Payment shall be paid in a lump sum within ten (10) days after
the date of the Compensable Termination. The twenty-five percent
(25%) balance of the Severance Payment shall be paid in six
(6) equal monthly installments, one (1) of which shall be
paid at the end of each of the first six (6) months after the
date of the Compensable Termination, provided, in the case of each
of such six (6) installments, that the Employee has not accepted
full-time or regular part-time employment with or regularly served
as a consultant to a for-profit pharmaceutical company prior to the
date for payment of such installment, it being understood and
agreed that the foregoing condition shall not be violated by the
Employee’s serving as a member of a board of directors of a
for-profit pharmaceutical company or by his/her performing
consulting services on an ad hoc basis for such a
company. If a Change in Control occurs that is a “change in
control event” within the meaning of Code Section 409A
and Treasury Regulation §1.409A-3(i)(5)(i) (or any similar or
successor provisions) (either before or after the Compensable
Termination and in accordance with Treasury Regulation
§1.409A-3(c)), the Severance Payment (or, in the case of such
a “change in control event” that occurs after the
Compensable Termination, any portion thereof that remains unpaid at
the time such “change in control event” occurs) shall
be paid in a lump sum within ten (10) days after the
Compensable Termination (or, in the case of such a “change in
control event” that occurs after the Compensable Termination,
within ten (10) days after the “change in control
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event”
occurs), and the two (2) preceding sentences of this
subparagraph shall not apply. For thirty-six (36) months
following a Compensable Termination, the Company shall also provide
the Employee (and, as applicable, the Employee’s covered
dependents), at Company expense, with continuation coverage under
the Company’s group health plan(s) covering similarly
situated executives. For purposes of this Section 5, the
Employee’s “ Annual Cash Compensation ”
shall mean the sum of (I) the Employee’s highest Base
Salary ( i.e., one (1) year’s salary at its
highest rate), plus (II) the “Applicable Average
Bonus” as defined in subparagraph 5(a)(i)(B) above.
(ii) If the term of this Agreement as
the same may have been extended in accordance with the provisions
of Section 2 above is not extended or further extended because
the Company, BPI or an Affiliate gives written notice of
non-extension to the Employee as provided in Section 2 above,
and there is not Good Cause for termination of the Employee’s
employment at the time of giving such notice, and the Employee does
not thereafter resign for Good Reason during the term of this
Agreement as permitted by paragraph 5(d)(v) below, and the Employee
is willing and able to renew or execute a new agreement providing
terms and conditions substantially similar to those in this
Agreement and to continue providing such services, then the Company
shall pay the Employee, subject to fulfillment by the Employee of
the Employee’s obligations under this Agreement during the
balance of the term and the Employee’s compliance with the
provisions of Sections 6 and 7 below, relating to confidential
information, non-solicitation and disparaging remarks, as
non-renewal compensation, and as additional consideration for the
Employee’s undertakings under this Agreement, including
Sections 6 and 7 below, an amount of money (the “
Non-Renewal Payment ”) equal to one and one- quarter
(1 1 / 4 ) times the Employee’s Annual Cash
Compensation as defined in subparagraph 5(a)(i)(C) above, in
addition to any other amounts to which the Employee may be entitled
hereunder (including without limitation the Employee’s annual
bonus pursuant to paragraph 4(b) above for the fiscal year of the
Company in which the Employee’s employment terminates and any
amounts to which the Employee may be entitled under Section 8,
9 or 10 below) or by law or pursuant to the terms of any
compensation or benefit plan or arrangement in which the Employee
participated before the Employee’s employment terminated.
Except as otherwise provided hereafter in this subparagraph
5(a)(ii), seventy-five percent (75%) of the Non-Renewal Payment
shall be paid in a lump sum within ten (10) days after the
date on which the Employee’s employment terminates, subject
to paragraph 5(f) and Section 14. The twenty-five percent
(25%) balance of the Non-Renewal Payment shall be paid in six
(6) equal monthly installments one (1) of which shall be
paid at the end of each of the first six (6) months after the
date on which the Employee’s employment terminates. If a
Change in Control occurs that is a “change in control
event” within the meaning of Code Section 409A and
Treasury Regulation §1.409A-3(i)(5)(i) (or any similar or
successor provisions) (either before or after the Employee’s
termination and in accordance with Treasury Regulation
§1.409A-3(c)), the Non-Renewal Payment (or, in the case of
such a “change in control event” that occurs after the
Employee’s termination, any portion thereof that remains
unpaid at the time such “change in control event”
occurs) shall be paid in a lump sum within ten (10) days after
the date on which the Employee’s employment terminates (or,
in the case of such a “change in control event” that
occurs
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after the
Employee’s termination, within ten (10) days after the
“change in control event” occurs), and the two
(2) preceding sentences of this subparagraph shall not apply.
For thirty-six (36) months following the Employee’s
termination, the Company shall also provide the Employee (and, as
applicable, the Employee’s covered dependents), at Company
expense, with continuation coverage under the Company’s group
health plan(s) covering similarly situated executives.
(iii) The foregoing provisions of
(including any payments under) this paragraph 5(a) shall be in lieu
of any severance pay that may be payable under any plan or practice
of the Company, any other Subsidiary or Affiliate, or BPI (as such
terms are defined in Section 11 below), or by law (including
the WARN Act or any similar state or foreign law), but shall be in
addition to (and not in lieu of) any payments to which the Employee
may be entitled under Sections 8, 9 and 10 below.
Subparagraphs 5(a)(i)(C) and 5(a)(ii) above are intended to be
mutually exclusive, and in no event shall such subparagraphs,
either individually or collectively, be construed to require the
Company to pay an amount of money in excess of three (3) times
the Employee’s Annual Cash Compensation under such
subparagraphs, either individually or collectively, in addition to
continuation coverage under the Company’s group health
plan(s) covering similarly situated executives provided by the
Company to the Employee (and, as applicable, the Employee’s
covered dependents), at Company expense, for thirty-six
(36) months.
(iv) The Employee shall not be
required to mitigate the amount of any payment or benefit provided
for in this Agreement (including but not limited to any payment
provided for above in this paragraph 5(a)) by seeking other
employment or otherwise, nor shall any compensation earned by the
Employee in other employment or otherwise reduce the amount of any
payment or benefit provided for in this Agreement, except as
provided in subparagraphs 5(a)(i)(C) and 5(a)(ii) above.
(v) A Compensable Termination shall
not include a termination of employment by reason of the
Employee’s death.
(b)
Termination by the Company, BPI or an Affiliate for Good Cause
or by the Employee without Good Reason . If, during the term of
this Agreement, the Employee’s employment by the Company and
BPI is terminated by the Company, BPI or an Affiliate for Good
Cause or by the Employee without Good Reason, the Employee shall
not be entitled to receive any compensation under Section 4
above accruing after the date of such termination or any payment
under paragraph 5(a) above. However, any obligations of the Company
under Sections 8, 9 and 10 shall not be affected by such
termination of employment. The provisions of this paragraph 5(b)
shall be in addition to, and not in lieu of, any other rights and
remedies the Company and BPI may have at law or in equity or under
any other provision of this Agreement in respect of such
termination of employment. However, if during the term of this
Agreement the Employee’s employment is terminated by the
Employee without Good Reason and the Employee gives the Company at
least one hundred twenty (120) days’ advance notice of
such termination, then the Employee shall not have any obligation
or liability under this Agreement on account of such termination of
employment, but the Employee’s obligations under
Section 6 and 7 hereof shall not be affected by such
termination of employment.
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(c)
Good Cause Defined . For purposes of this Agreement, the
Company, BPI and the Affiliates shall have “ Good
Cause ” to terminate the Employee’s employment by
the Company during the term of this Agreement only if:
(i) (A) the Employee fails to
substantially perform the Employee’s duties hereunder for any
reason or to devote substantially all the Employee’s business
time exclusively to the affairs of the Company and BPI (including
Company and BPI activities on behalf of the other Affiliates),
other than by reason of a medical condition that prevents the
Employee from substantially performing the Employee’s duties
hereunder even with a reasonable accommodation by the Company or
BPI, or fails to obtain the consent of the BPI Board to his service
on the board of directors of another company, and (B) such
failure is not discontinued within a reasonable period of time, in
no event to exceed thirty (30) days, after the Employee
receives written notice from the Company, BPI or an Affiliate of
such failure; or
(ii) the Employee commits an act of
dishonesty resulting or intended to result directly or indirectly
in gain or personal enrichment at the expense of the Company, BPI
or an Affiliate, or engages in conduct that constitutes a felony in
the jurisdiction in which the Employee engages in such conduct;
or
(iii) the Employee is grossly
negligent or engages in willful misconduct or insubordination in
the performance of the Employee’s duties hereunder; or
(iv) the Employee materially breaches
the Employee’s obligations under Section 6 or paragraph
7(a) below, relating to confidential information and
non-solicitation.
In addition, the Employee’s
employment shall be deemed to have terminated for Good Cause if,
after the Employee’s employment has terminated, facts and
circumstances arising during the course of the Employee’s
employment are discovered that would have justified a termination
for Good Cause under subparagraphs 5(c)(ii) or
(iv) above.
Any foregoing provision of this
paragraph 5(c) to the contrary notwithstanding, the Company, BPI
and the Affiliates shall not have “Good Cause” to
terminate the Employee’s employment within three
(3) years after a Change in Control or Potential Change in
Control (as such terms are defined in Section 11 below) unless
(A) the Employee’s act or omission is willful and has a
material adverse effect upon the Company, BPI or an Affiliate,
(B) the Board gives the Employee (I) written notice
warning of its intention to terminate the Employee for Good Cause
if the specified act or omission alleged to constitute Good Cause
is not discontinued and, if curable, cured, and (II) a
reasonable opportunity after receipt of such written notice, but in
no event less than two (2) weeks, to discontinue and, if curable,
cure the conduct alleged to constitute Good Cause, and (C) the
Employee fails to discontinue and, if curable, cure the act or
omission in question; provided that clauses (B) and
(C) of this sentence shall not apply with respect to conduct
on the part of the Employee that constitutes a felony in the
jurisdiction in which the Employee engages in such conduct, and,
provided further, that this sentence shall not apply to conduct
involving moral turpitude. For all purposes of this Agreement, no
act, or failure to act, on the Employee’s part shall be
deemed “willful” unless done, or omitted to be done, by
the Employee intentionally and in bad faith ( i.e. , without
reasonable belief that the Employee’s
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action
or omission was in furtherance of the interests of the Company, BPI
or a Subsidiary or Affiliate).
(d)
Good Reason Defined . For purposes of this Agreement, the
Employee shall have “ Good Reason ” to terminate
employment during the term of this Agreement only if:
(i) the Company fails to pay or
provide any amount or benefit that the Company is obligated to pay
or provide under Section 4 above or Section 8, 9, or 10
below and the failure is not remedied within thirty (30) days
after the Company receives written notice from the Employee of such
failure; or
(ii) the Employee is assigned duties,
responsibilities, or reporting relationships not contemplated by
Section 3 above without the Employee’s consent, or the
Employee’s duties or responsibilities or power or authority
contemplated by Section 3 above are limited in any respect
materially detrimental to the Employee, and in either case the
situation is not remedied within thirty (30) days after the
Company receives written notice from the Employee of the situation;
or
(iii) the Employee is removed from,
or not elected or reelected to, the office, title or position of
Chief Executive Officer of the Company, and BPI and the Affiliates
do not have Good Cause for doing so; or
(iv) BPI or an Affiliate relocates
the Employee’s office outside of either BPI’s principal
executive offices or the greater New York City metropolitan area
without the Employee’s written consent (given in a personal
rather than representative capacity) and the situation is not
remedied within thirty (30) days after the Company receives
written notice from the Employee of the situation; or
(v) the Company, BPI or an Affiliate
gives the Employee written notice, in the manner set forth in
paragraph 13(f) below, prior to any Extension Effective Date, that
the term of this Agreement that is in effect at the time such
written notice is given is not to be extended or further extended,
as the case may be; provided that the giving of such written notice
to the Employee shall constitute Good Reason only if and when the
Employee shall have performed such of the Employee’s duties
and responsibilities for such period of time, in no event to exceed
ninety (90) days after the giving of such notice, as the BPI
CEO or the Board, may reasonably request in writing to transition
the Employee’s duties and responsibilities; or
(vi) a Change in Control occurs and
as a result thereof either (A) equity securities of BPI cease
to be publicly-traded, or (B) the Employee is not elected or
designated to serve as the sole Chief Executive Officer of the
Company or its survivor in the Change in Control; or
(vii) a Change in Control or
Potential Change in Control occurs and (A) the dollar value of
the stock optioned to the Employee annually thereafter is less than
the average annual dollar value of the stock that was optioned to
the Employee during the four (4) years prior to the Change in
Control or Potential Change in Control, or (B) the material
terms of such options (including without limitation vesting
schedules) are less favorable to the Employee than the material
terms of the options that were granted to the
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Employee during
the four (4) years prior to the Change in Control or Potential
Change in Control, and in either case (A) or (B) the
situation is not remedied within thirty (30) days after the Company
receives written notice from the Employee of the situation. For
purposes of (A) and (B) of this subparagraph 5(d)(vii),
if free-standing stock appreciation rights are granted to the
Employee, the stock subject to such rights shall be considered
stock that is optioned to the Employee, and if alternative stock
appreciation rights (a/k/a tandem stock appreciation rights) are
granted to the Employee, the stock appreciation rights shall be
considered terms of the options to which they are
alternative/tandem; or
(viii) the Company, BPI or a
Permitted Assignee attempts to assign any of its rights or
obligations under this Agreement other than in accordance with
paragraph 13(d) below and does not remedy the situation within
thirty (30) days after the Company receives written notice
from the Employee of the situation; or
(ix) the Company, BPI or any
Subsidiary or Affiliate materially breaches the terms of this
Agreement.
In no event shall the
Employee’s continued employment after any of the foregoing
constitute the Employee’s consent to the act or omission in
question, or a waiver of the Employee’s right to terminate
employment for Good Reason hereunder on account of such act or
omission, except as provided in the following sentence. With
respect to any act, omission, or occurrence that is alleged to
occur after the Commencement Date and prior to a Change in Control
or Potential Change in Control, the Employee must provide the
Company with written notice of any one (1) or more of the
conditions set forth in this definition of Good Reason within six
(6) months of the initial existence of the condition for such
condition to constitute Good Reason. Such notice shall not excuse
the Employee from continuing to perform the duties and
responsibilities assigned to the Employee until such time as the
Employee terminates employment. Notwithstanding the foregoing, this
notice requirement shall not apply to acts or omissions alleged to
constitute Good Reason that arise after a Change in Control or
Potential Change in Control.
(e)
Disability
(i) Notwithstanding any provision of
this Agreement to the contrary, (A) if during the term of this
Agreement as the same may be extended from time to time pursuant to
Section 2 above, a medical condition prevents the Employee,
even with a reasonable accommodation by the Company or BPI, from
substantially performing the Employee’s duties hereunder (it
being understood that a transitory illness, such as a cold or flu,
that prevents the Employee from substantially performing the
Employee’s duties hereunder during a brief period is not such
a medical condition), then until the date, if any, on which the
Employee recovers from such medical condition (the “
Evaluation Period ”), the Company and BPI may
terminate the Employee’s employment only pursuant to
subparagraph 5(e)(ii) below (a “ Disability
Termination ”) or for willful misconduct constituting
Good Cause under paragraph 5(c) above, and (B) if any notice
of non-extension of the term of this Agreement was given before the
Evaluation Period, or is given during the Evaluation Period,
whether by the Company, BPI or an Affiliate or the Employee,
pursuant to Section 2 above, and, but for this clause (B), the
term of this Agreement would expire during the Evaluation Period as
a result of such notice of non-
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extension
having been given, then the term of this Agreement will
automatically be extended without action by any party until the
Employee recovers from such medical condition. For purposes of this
paragraph 5(e), the Employee will be deemed to recover from a
medical condition only if and when the Employee both (I) has
been able to substantially perfo
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