Document:

EXHIBIT
10.1

 

[Letterhead of Obagi Medical Products]

 

March 24, 2008

 

Mr. Stephen Garcia

9839 La Arena Circle

Fountain Valley, CA 92708

 

Re:   Transition Arrangements

 

Dear Stephen:

 

The purpose of this letter is
to confirm the circumstances of your employment with OMP, Inc. over the
next four months as we have discussed recently. 
Our intent is to facilitate the Company’s orderly transition to a new
CFO & EVP of Operations & Administration, and to provide you
with the possibility of a substantial monetary reward, the “Transition Success
Payment,” in exchange for your cooperation in that transition.

 

We plan to continue your
employment as CFO at your current salary and benefits until July 15,
2008.  During that period of time you
will be transitioning your duties and responsibilities to others, as directed
by the Company, and you will use your best efforts to ensure a smooth
transition.  Although our plan is to
continue your employment through July 15, your employment status until
that time will remain “at will,” which means that either you or the Company may
end your employment at any time for any reason.

 

Provided that you remain
employed by the Company until July 15, 2008 and you have performed your
transitional duties to the Company’s reasonable satisfaction, you will be
eligible based at the CEO’s sole discretion, to receive a Transition Success
Payment equal to your current annual salary of $253,000 payable over a period
of one year on the Company’s normal payroll cycle, less all normal payroll
deductions.  During the period of time
that you receive this payment, you will not be an employee of the Company and
you will not be eligible to receive any benefits provided to the Company’s
employees.  In addition, you will be
eligible based at the CEO’s sole discretion, to receive any and all stock
options that remain unvested, that would have vested between the Separation
Date and December 31, 2008, shall be deemed fully vested and immediately
exercisable, as of the Separation Date. 
If your employment ends for any reason before July 15, 2008, unless
by mutual agreement with the CEO, you will not be eligible for this payment or
the accelerated stock vesting.  Your
receipt of this payment shall be conditional upon your execution of a release
of all claims as stated in Exhibit A attached hereto.

 

 

Please sign below to indicate
your acceptance of this proposal.  We
look forward to a mutually satisfactory transition.

 

	
   

  	
  Sincerely

  
	
   

  
	
   

  	
  /s/ Steven R. Carlson

  
	
   

  
	
   

  
	
  March 24, 2008

  	
   

  	
    /s/ Stephen Garcia

  
	
  Date

  	
  Stephen Garcia

  
			

 

 

Exhibit A

 

Separation Agreement and General Release

 

For
good and valuable consideration, the parties below enter this Separation
Agreement and General Release (the “Agreement”).

 

1.             Parties.  The
parties to this Agreement are Stephen Garcia, his heirs, representatives,
successors and assigns (hereinafter referred to collectively as “Mr. Garcia”)
and OMP, Inc. and/or any of its successors, subsidiaries, affiliates,
parents, and related companies (hereinafter referred to collectively as the
“Company”).

 

2.             Separation from Employment.  Mr. Garcia
acknowledges and agrees that his employment relationship with the Company has
ended, effective July 15, 2008 (the “Separation Date”), and has not been
terminated earlier by either party.

 

3.             Separation Benefits.  As consideration for the promises and covenants of Mr. Garcia set
forth in this Agreement the Company will pay Mr. Garcia a Transition
Success Payment equal to one year of pay at his current rate of compensation of
$253,000.  This sum shall be paid over a
period of one year in equal installments on the Company’s normal payroll
schedule, less all normal payroll deductions. 
Mr. Garcia shall not be an employee of the Company during the
period that these payments are made, and he shall not be eligible for any
benefits provided to the Company’s employees during that period.  These payments will begin on the first normal
payroll date after the effective date of this Agreement.  In addition, you will be eligible based at
the CEO’s sole discretion, to receive any and all stock options that remain
unvested, that would have vested between the Separation Date and December 31,
2008, shall be deemed fully vested and immediately exercisable, as of the
Separation Date.   Mr. Garcia will
be allowed to continue, at Mr. Garcia’s sole expense, his coverage in the
Company’s group health plans, pursuant to applicable law (COBRA).

 

4.             No Other Payments Due.  Mr. Garcia acknowledges and agrees that he has received all salary, accrued
vacation, bonuses, or other such sums due to him other than the Transition
Success Payment.

 

5.             Release of Claims By Mr. Garcia.   As
consideration for the promises and covenants of the Company set forth in this
Agreement, Mr. Garcia hereby fully and forever releases and discharges the
Company and its or their current and former owners, shareholders, agents,
employee benefit plans, representatives, employees, attorneys, parties,
successors, predecessors, related companies, and assigns (hereinafter
collectively called the “Released Parties”), from all claims and causes of
action, whether known or unknown, including but not limited to those arising
out of or relating in any way to Mr. Garcia’s employment with the Company,
including the termination of his employment, based on any acts or events
occurring up until the date of Mr. Garcia’s signature below.  Mr. Garcia understands and agrees that
this Release is a full and complete waiver of all claims, including, but not
limited to, any claims of wrongful discharge, 

 

 

breach
of contract, breach of the covenant of good faith and fair dealing, violation
of public policy, defamation, personal injury, emotional distress; any claims
under Title VII of the Civil Rights Act of 1964, as amended, the Fair Labor
Standards Act, the Age Discrimination in Employment Act of 1967, the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), as related to
severance benefits, the California Fair Employment and Housing Act, California
Government Code § 12900 et seq., the California Labor Code, the
California Business & Professions Code, the Equal Pay Act of 1963, the
Americans With Disabilities Act, the Family and Medical Leave Act, the
California Family Rights Act, the Civil Rights Act of 1991; and any claims
under any other federal, state, and local laws and regulations.  This Agreement does not release claims that
cannot be released as a matter of law, including, but not limited to, claims
under Division 3, Article 2 of the California Labor Code (which includes
indemnification rights).

 

6.             Outstanding Claims.  As
further consideration and inducement for this Agreement, Mr. Garcia
represents that he has not filed or otherwise pursued any charges, complaints
or claims of any nature which are in any way pending against the Company or any
of the Released Parties with any court with respect to any matter covered by
this Agreement and that, to the extent permitted by law, he will not do so in
the future.  Mr. Garcia further
represents that, with respect to any charge, complaint or claim he has filed or
otherwise pursued or will file or otherwise pursue in the future with any state
or federal agency against the Company or any of the Released Parties, he will
forgo any monetary damages, including but not limited to compensatory damages,
punitive damages, and attorneys’ fees, to which he may otherwise be entitled in
connection with said charge, complaint or claim.  Nothing in this Agreement shall limit Mr. Garcia’s
right to file a charge, complaint or claim with any state or federal agency or
to participate or cooperate in such matters.

 

7.             Civil Code 1542 Waiver. As a further consideration and inducement
for this Agreement, Mr. Garcia hereby waives any and all rights under Section 1542
of the California Civil Code or any other similar state, local, or federal law,
statute, rule, order or regulation he may have with respect to the Company and
any of the Released Parties.

 

Section 1542 provides:

 

A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR
HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER
MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

Mr. Garcia
expressly agrees that this Agreement shall extend and apply to all unknown,
unsuspected and unanticipated injuries and damages as well as those that are
now disclosed.

 

8.             Consideration and Revocation
Periods.  Mr. Garcia has been advised that he
should to consult with an attorney before signing this Agreement.  Mr. Garcia also understands that he has
twenty-one (21) calendar days after receipt of this Agreement within which to
review and 

 

 

consider
it and decide to execute or not execute it, and that he shall not sign it prior
to July 15, 2008.  Mr. Garcia
also understands that for a period of seven (7) calendar days after signing
this Agreement, he may revoke this Agreement by delivering to the VP, Human
Resources of the Company, within said seven (7) calendar days, a letter
stating that he is revoking it.  This
Agreement will be effective only after the expiration of this revocation
period.

 

9.             No Admission of Liability.  By entering into this Agreement, the Company
and all Released Parties do not admit any liability whatsoever to Mr. Garcia
or to any other person arising out of claims heretofore or hereafter asserted
by him, and the Company, for itself and all Released Parties, expressly denies
any and all such liability.

 

10.          Confidentiality of Terms of Agreement.  Mr. Garcia
agrees to maintain in confidence the terms of this Agreement and to discuss
them only with attorneys, tax advisors, and family members who have a
reasonable need to know of such terms.

 

11.          Non-Disclosure of Confidential
and Proprietary Information.  Mr. Garcia agrees that he shall continue
to maintain the confidentiality of all confidential and proprietary information
of the Company.  Mr. Garcia agrees
that, in accordance with this Agreement and any other confidentiality
agreements which may exist between him and the Company, he shall not divulge,
furnish, or make available to any party any confidential or proprietary
information of the Company.  Mr. Garcia
further agrees that on or before the Separation Date, he shall return to the
Company all of its property in his possession.

 

12.          Joint Participation In
Preparation Of Agreement.  The parties hereto participated jointly in
the negotiation and preparation of this Agreement, and each party has had the
opportunity to obtain the advice of legal counsel and to review, comment upon,
and redraft this Agreement.  Accordingly,
it is agreed that no rule of construction shall apply against any party or
in favor of any party.  This Agreement
shall be construed as if the parties jointly prepared this Agreement, and any
uncertainty or ambiguity shall not be interpreted against any one party and in
favor of the other.

 

13.          Choice of Law and Consent to
Jurisdiction.  The parties agree that California law shall
govern the validity, effect, and interpretation of this Agreement.

 

14.          Section Headings.  Section headings
in this Agreement are included for convenience of reference only and shall not
be considered a part of this Agreement for any other purpose.

 

15.          Entire Agreement.  This
Agreement constitutes the complete understanding between Mr. Garcia and
the Company and supersedes any and all prior agreements, promises, representations,
or inducements, no matter its or their form, concerning its subject matter,
with the exception of the Settlement Agreement and General Release and any
confidentiality, proprietary information, trade secret or invention assignment
agreement previously executed by Mr. Garcia, which remain in full force
and effect to the extent not inconsistent with this Agreement.  No promises or agreements made subsequent to
the execution of this Agreement by these parties shall be binding unless
reduced to writing and signed by authorized representatives of these
parties.  Should any of the provisions of
this Agreement be rendered invalid by a court or government agency of 

 

 

competent jurisdiction, the remainder of this
Agreement shall, to the fullest extent permitted by applicable law, remain in
full force and effect.

 

16.          Acknowledgement.  Mr. Garcia
hereby acknowledges that he has read and understands the foregoing Agreement
and that he signs it voluntarily and without coercion.

 

 

	
  Dated:
                                  ,
  200   

  	
   

  
	
   

  	
  Stephen
  Garcia

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:
                                  ,
  200   

  	
  OMP, Inc.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  [Title]Exhibit 10.7

 

FIRST AMENDMENT TO
AMENDED AND RESTATED

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

OF

BARRINGTON BROADCASTING LLC

 

 

This FIRST AMENDMENT TO AMENDED AND RESTATED LIMITED LIABILITY COMPANY
AGREEMENT OF BARRINGTON BROADCASTING LLC (this “Amendment”), dated as of
January 1, 2008, is made to that certain Amended and Restated Limited
Liability Company Operating Agreement of Barrington Broadcasting LLC (f/k/a
Pilot Group TV LLC), a Delaware limited liability company (the “Company”),
dated as of December 30, 2003 (the “Operating Agreement”), as
entered into by and among Pilot Group LP, a Delaware limited partnership (“Pilot”),
and Barrington Broadcasting
Company, LLC, a Delaware limited liability company (“Barrington”).  Pilot, Barrington and the Managing Member (as
designated from time to time by Pilot in accordance with Section 3.1
hereof), in their capacities as members of the Company, and each other Person
(as defined herein) who acquires a membership interest in the Company and
executes and delivers a counterpart signature page to this Agreement, are
each referred to herein individually as a “Member” and collectively as
the “Members”.

 

RECITALS:

 

WHEREAS,
the Members are parties to the Operating Agreement;

 

WHEREAS,
each of the parties hereto desire to amend the Operating Agreement to make the
modifications set forth below; and

 

NOW,
THEREFORE, in consideration of the agreements and covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and intending to be legally bound hereby, the
parties agree to amend the Operating Agreement by executing this Amendment, and
the parties hereto hereby enter into this Amendment, so as to agree with each
other as follows:

 

1.                                       Amendment to the Operating Agreement. The Operating Agreement is hereby
amended as follows:

 

(i)            Section 5.4
is hereby deleted in its entirety and replaced with the following:

 

“Section 5.4           Purchase of Barrington’s
Contingent Interest.  (i)  If the employment by Barrington
Broadcasting Group LLC (“Barrington Group”) of K. James Yager (“Yager”) or
Chris Cornelius (“Cornelius”) is terminated for cause by Barrington

 

 

Group, Barrington shall, upon demand by the Company,
be obligated to sell the Contingent Interest (as defined herein) held by
Barrington to the Company, and the Company shall have the option (which option
shall be assignable by the Company without the consent of Barrington), but not
the obligation, to purchase such Contingent Interest at a purchase price equal
to the fair market value thereof (determined by reference to the amount of
distributions to which Barrington would be entitled upon a hypothetical sale of
all the Company’s assets, the payment of all the Company’s liabilities and the
distribution of the net proceeds to the Members as provided in Section 6.2
hereof), as agreed upon by the Managing Member and Barrington.  If the Managing Member and Barrington cannot
agree upon the fair market value of such Contingent Interest, the fair market
value thereof shall be determined in the manner set forth above by an
independent appraiser selected by the Managing Member and reasonably
satisfactory to Barrington.  The Company
shall exercise such right by giving written notice thereof, within 90 days
following the date of the termination of the respective employment agreement,
to Barrington.  The closing of such
purchase shall occur within 30 days after the final determination of the fair
market value of the Contingent Interest. 
Upon the closing of any such purchase, Barrington shall cease to be a
Member and shall have no further rights or obligations under this
Agreement.  For purposes of this Section 5.4,
the term cause shall have the meaning ascribed to such term in the then current
employment agreement, between Yager and Barrington Group, with respect to
Yager, and Cornelius and Barrington Group, with respect to Cornelius.”

 

(ii)           Sections
6.2, (c) and (d) are hereby deleted in its entirety and replaced with
the following:

 

“(c)         Third, 100% to Barrington, until
Barrington has received a cumulative distribution pursuant to clause (b) above
and this clause (c) equal to 11% of the amounts distributed pursuant to
clause (b) above and this clause (c); and

 

(d)        Fourth,
89% to Pilot and 11% to Barrington.”

 

2.                                       Ratification and Confirmation of the
Operating Agreement; No Other Changes.  Except as
modified by this Amendment, the Operating Agreement is hereby ratified and
confirmed in all respects.  Nothing
herein shall be held to alter, vary or otherwise affect the terms, conditions
and provision of the Operating Agreement, other than as contemplated herein.

 

3.                                       Effectiveness. 
This Amendment shall be effective as of the date hereof.

 

4.                                       Governing Law. 
This Amendment shall be governed by, and construed in accordance with,
the laws and decisions of the State of Delaware, without regard to the
conflicts of law provisions thereof.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

 

 

IN
WITNESS WHEREOF, the undersigned have executed and delivered this Agreement as
of the date first written above.

 

 

	
   

  	
  THE
  MEMBERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  PILOT GROUP LP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Pilot Group GP LLC

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Paul M. McNicol

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Paul M. McNicol

  
	
   

  	
   

  	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARRINGTON
  BROADCASTING COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ K. James Yager

  	
   

  
	
   

  	
   

  	
   

  	
  Name: K. James Yager

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  MANAGING MEMBER:

  
	
   

  	
   

  	
   

  
	
   

  	
  PILOT GROUP GP LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Paul M. McNicol

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Paul M. McNicol

  
	
   

  	
   

  	
   

  	
  Title: Senior Vice
  President

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