Exhibit 10.53
AMENDED AND RESTATED EXECUTIVE
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT
(this " Agreement "), is
executed and delivered effective as of June 15, 2009 (the "
Effective Date "), by and between Obagi Medical Products,
Inc., a Delaware corporation (the " Company "), and
________________, an individual resident of the State of California
(" Executive ").
1. POSITION AND
RESPONSIBILITIES
(a) Position . Executive is employed by the
Company to render services to the Company in the position
of
____________________________. Executive shall report
directly to the Chief Executive Officer. Executive shall
perform such duties and responsibilities as are normally related to
such position, in accordance with industry standards, and any
additional duties now or hereafter assigned to Executive by the
Board of Directors of the Company. Executive shall abide
by the Company's rules, regulations and practices, as adopted or
modified from time to time in the Company's sole
discretion.
(b) Other Activities . Except with the prior
written consent of the Company, Executive shall not, during the
term of this Agreement, (i) accept any other employment, or (ii)
engage, directly or indirectly, in any other business activity
(whether or not pursued for pecuniary gain) that might interfere
with Executive's duties and responsibilities hereunder or create a
conflict of interest with the Company. Executive may
serve as a member of the board of directors of any Company that
does not compete directly with the
Company. Notwithstanding the foregoing, Executive may
also devote reasonable time and attention to civic, charitable or
social organizations so long as such activities do not interfere
with the performance of his duties to the Company.
(c) No Conflict . Executive represents and
warrants that Executive's execution of this Agreement, Executive's
employment with the Company and the performance of Executive's
proposed duties under this Agreement shall not violate any
obligations Executive may have to any prior employer, or any other
person or entity, including, without limitation, any obligations
with respect to proprietary or confidential information of any
prior employer, or any other person or entity.
2. COMPENSATION AND
BENEFITS
(a)
Base Salary . In consideration of the services to be
rendered under this Agreement, the Company shall pay to Executive a
salary at the current rate of ______________________________
Dollars ($____,____.00) per year, as adjusted from time to time as
described below (the " Base Salary "). The Base Salary shall
be paid in accordance with the Company's standard bi-weekly payroll
practices. The Base Salary will be reviewed and adjusted from time
to time in accordance with the Company's procedures for adjusting
salaries for senior executives and as approved by the Compensation
Committee of the Board of Directors.
(b)
Bonus . Executive shall be eligible to receive an
annual bonus based on a percentage of Executive’s Base Salary
(currently 50%), or other increased percentage as may be determined
by the Company’s Board of Director’s from time to time
(the “ Bonus ”). Any such Bonus shall
be subject to Executive's achievement of corporate financial
metrics or other goals and objectives to be established from time
to time by the Company's Board of Directors (or a committee
thereof).
(c)
Stock Option/Restricted Stock Awards . The
Company has previously granted to Executive non-qualified stock
options (“ Options ”) and/or restricted stock
units (“ RSUs ”) and may make future grants of
either (the “ Subsequent Options ” or “
Subsequent RSUs ”) under the Company’s 2005
Stock Incentive Plan (the “ 2005 Plan
”). Other than as set forth in Section 3(c), 3(d)
or 3(e) below, all such incentive awards shall vest in accordance
with the terms of the 2005 Plan and any additional terms approved
by the Compensation Committee of the Board of Directors at the time
of grant.
(d)
Benefits . Executive shall continue to be
eligible to participate in any and all medical, dental, vision,
retirement, life insurance, AD&D and other benefits (the
“ Benefits ”) established by the Company that
are made generally available by the Company to executive officers
of the Company, as such plans may be amended from time to time in
the Company's sole discretion. Without limiting the generality of
the foregoing, Executive, and to the extent applicable, Executive's
covered dependants, shall be eligible to participate in the
Company's 401(k) program and shall receive immediate enrollment for
health benefits to the maximum extent possible under the Company's
benefit plans.
(e)
Vacation . Executive shall receive three (3) weeks of
paid vacation time per calendar year, which amount shall increase
in accordance with the Company's vacation policy for employees of
the Company generally. Executive may take such accrued vacation at
such times as are mutually convenient to Executive and the Company.
In addition, Executive shall be entitled to all holidays provided
under the Company's regular holiday schedule.
(f)
Business Expenses . The Company will reimburse
Executive for reasonable and necessary expenses appropriately
incurred by Executive in performing his duties and obligations to
the Company in accordance with, and subject to, such policies and
procedures regarding executive officer expenses generally as the
Company may from time to time have in effect.
(a)
At-Will Termination by Company . The employment of
Executive shall be "at-will" at all times. The Company may
terminate Executive's employment with the Company at any time,
without any advance notice, for any reason or no reason at all,
notwithstanding anything to the contrary contained in or arising
from any statements, policies or practices of the Company relating
to the employment, discipline or termination of its employees. Upon
and after the date of such termination, all obligations of the
Company shall cease, except as set forth below in
Section 3(b), 3(c), 3(d) or 3(e).
(b)
At-Will Termination by Executive . Executive may terminate
employment with the Company at any time for any reason or no reason
at all, upon two weeks' advance written notice. During
such notice period Executive shall continue to diligently perform
all of Executive's duties hereunder. The Company shall have the
option, in its sole discretion, to make Executive's termination
effective at any time prior to the end of such notice period as
long as the Company pays Executive all compensation (including all
accrued Base Salary (at the annual rate then in effect), vacation
and any other amounts owed to Executive at the time of termination)
accrued to which Executive is entitled up through the last day of
the two-week notice period. Any such amounts shall be paid on the
effective date of termination. All reimbursable expenses incurred
up to and including the date of termination shall be submitted for
payment within thirty (30) days of termination and contain all
documentation required pursuant to Company policy. Any
and all options to acquire shares of Common Stock that have vested
under the Options, the RSU or any Subsequent Options or Subsequent
RSUs shall continue to belong to Executive. Executive
shall have ninety (90) days in which to exercise any vested portion
of any Options and Subsequent Options. All shares that
remain unvested under such Options, RSU, and any Subsequent Options
or Subsequent RSUs shall cease to vest on the date of
termination. Thereafter all obligations of the Company
shall cease.
(c)
Involuntary Termination by Company without Cause Other
Than for Good Reason.
(i) If the Company terminates Executive's employment
for reasons other than for Cause (as defined below) or death (which
is governed by subparagraph (e) below) or disability, which will be
dealt with on a case-by-case basis at the time such event occurs,
then, during the Severance Period (as defined below), the Company
shall (A) provided that Executive has been employed by the Company
for a period of at least six (6) months, pay to Executive a sum
equal to six (6) months of Base Salary (as then in
effect) and (B) continue to make available to Executive, at the
Company’s expense, the Benefits (including the full premium
for COBRA continuation coverage if applicable for Executive and his
eligible dependents) made generally available by the Company to its
Executives for the Severance Period, to the extent permitted under
applicable law and the terms of such benefit plans. The cash
consideration payable pursuant to subsection (A) above shall
be paid in equal monthly installments as salary continuation pay,
subject to deduction of ordinary payroll taxes, commencing on the
date that is no later than the earlier of thirty (30) days
following termination or the execution of the General Release (as
defined below). In addition, if the Company
terminates Executive's employment for reasons other than for Cause,
or death (as provided in subparagraph (e) below) or disability
(which will be dealt with on a case-by-case basis at the time
either such event occurs) then, Options, the RSU, and any
Subsequent Options or Subsequent RSUs automatically shall cease to
vest pursuant to the terms of the applicable stock option
agreements and restricted stock unit agreements, and in the case of
Options or Subsequent Options, Executive shall have ninety (90)
days in which to exercise any vested portion of such Options and
any Subsequent Options. Executive will own any vested
RSU or Subsequent RSUs without any further action on Executive
part. For purposes of this Agreement, the term " Severance
Period " shall mean the six (6)-month period immediately
following the date of Executive's termination. Any
accrued vacation pay and any other amounts owed to Executive at the
time of termination shall be paid on the effective date of
Executive’s termination. All reimbursable expenses
incurred up to and including the date of termination shall be
submitted for payment within thirty (30) days of termination and
contain all documentation required pursuant to Company
policy.
(ii) The Company's termination of Executive's employment
shall be for " Cause " if Executive: (A) exhibits willful
misconduct or dishonesty which materially and adversely effects the
business reputation of Executive or the Company; (B) is convicted
of a felony; (C) acts (or fails to act) in the performance of his
duties to the Company in bad (good) faith and to the Company's
detriment; (D) materially breaches this Agreement or any other
agreement with the Company, which if curable, is not cured to the
Company's reasonable satisfaction within thirty (30) days of
written notice thereof; or (E) engages in misconduct that is
demonstrably and materially injurious to the Company, including,
without limitation, willful and material failure to perform his
duties as an officer or Executive of the Company or excessive
absenteeism unrelated to illness or vacation.
(d)
Termination by Executive for Good Reason.
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If Executive
terminates his employment for Good Reason (as defined below) then,
during the Severance Period, the Company shall (A) pay to Executive
a sum equal to twelve (12) months of the Base Salary (as then in
effect) and (B) continue to make available to, and pay on
Executive’s behalf, the Benefits (including the full premium
for COBRA continuation coverage if applicable for Executive and his
eligible dependents) made generally available by the Company to its
Executives for that twelve (12)-month period, to the extent
permitted under applicable law and the terms of the benefit plans.
The cash consideration payable pursuant to subsection (A)
above shall be paid as salary continuation pay in equal monthly
installments, subject to normal payroll deductions, commencing on
the date that is no later than the earlier of thirty (30)) days
following termination or the execution of the General
Release. Any Benefits shall also be paid in equal
monthly installments during the Severance Period. All
reimbursable expenses incurred up to and including the date of
termination shall be submitted for payment within thirty (30) days
of termination and contain all documentation required pursuant to
Company policy. All accrued vacation and any other
amounts owed to Executive as of the termination date shall be paid
on the effective date of termination.
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In addition,
notwithstanding anything to the contrary contained in the stock
option agreements evidencing such Options, Subsequent Options or
the Plan or in any restricted stock unit agreement evidencing any
such RSUs or Subsequent RSUs, in the case of a Change of Control
where the consideration being paid is solely in cash, all Options
and RSUs, and Subsequent Options and Subsequent RSUs shall fully
vest and, in the case of Options and Subsequent Options, shall be
exercisable immediately prior to such Change of Co
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