Document:

2010 Corporate Bonus Plan

 Exhibit 10.35 
 CONFIDENTIAL 
 CADENCE PHARMACEUTICALS, INC. 

 BONUS PLAN 
 Effective January 1, 2010 
 INTRODUCTION AND PURPOSE 
 The Cadence Pharmaceuticals, Inc. (“Cadence” or the “Company”) Bonus Plan (the “Plan”) is designed to reward eligible employees
for the achievement of corporate objectives, as well as measured individual objectives that are consistent with and support the overall corporate objectives. Since cooperation between departments and employees will be required to achieve corporate
objectives that represent a significant portion of the Plan, the Plan should help foster teamwork and build a cohesive management team. 
 The
Plan is designed to: 
  

	 	•	 	 Encourage high performance by providing an incentive program to achieve overall corporate objectives and to enhance shareholder value.

  

	 	•	 	 Reward those individuals who significantly impact corporate results. 

  

	 	•	 	 Encourage increased teamwork among all disciplines within Cadence. 

  

	 	•	 	 Incorporate an incentive program in the Cadence overall compensation program to help attract and retain employees. 

  

	 	•	 	 Provide an incentive for eligible employees to remain employed by Cadence through and beyond the payout of any earned bonus.

 ELIGIBILITY 
 All regular, exempt employees at the Manager level or higher are eligible to participate in the Plan. Employees are not eligible if included in a separate formal incentive plan provided by the Company. In order to be eligible, a participant
must have been in an eligible position for at least three (3) full consecutive months prior to the end of the Plan year, and the participant must remain employed through the end of the Plan year and until awards are paid. If the participant is
not employed on the date awards are paid, the participant will not have earned any bonus. If the participant has been subject to a performance improvement plan or other disciplinary procedure during the Plan year, any award to such individual will
be at the discretion of the President and CEO or the Compensation Committee. 
 Change in Status During the Plan Period: 
  

	 	a.	Participants hired during the Plan year: 

  

	 	•	 	 Participants hired during the Plan year are eligible for a prorated award based the number of months employed in an eligible position.

  

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	 	•	 	 Participants hired after the end of the third quarter are not eligible to participate for the plan year. 

  

	 	b.	Promotion/change in level: 

  

	 	•	 	 For promotions that occur after April 30th of the applicable Plan year but prior to October 1st of the applicable Plan year, the calculation will be prorated, based on the number of months at each bonus percentage
level. 

  

	 	•	 	 If the promotion occurred on or after October 1st of the applicable Plan year, the entire calculation will be based on the bonus percentage applicable prior to the
promotion. 

  

	 	c.	Transfer to a position that is included in a separate formal Incentive Plan: Awards will be pro-rated using the same discipline as outlined for promotions above
and in the formal Incentive Plan. 

  

	 	d.	Termination of employment: 

  

	 	•	 	 If a participant’s employment is terminated voluntarily prior to the date awards are paid, the participant will not be eligible to receive an
award. 

  

	 	•	 	 If a participant’s employment is terminated involuntarily prior to the date awards are paid, it will be at the absolute discretion of the Company
whether or not an award payment is made. 

  

	 	e.	Leave of Absence: Employee may be considered for a prorated award. 

 AWARD CALCULATION 
 Awards will be determined by applying a “bonus
percentage” to the participant’s base salary in effect at the end of the Plan year. While the Compensation Committee may change the bonus percentage for any Plan year, the following bonus percentages will initially be used for this
purpose: 
  

				
	 Position Title
	  	Bonus Percentage	 
	 President/CEO
	  	60	% 
	 EVP, SVP
	  	35	% 
	 VP
	  	30	% 
	 Senior Director
	  	25	% 
	 Director
	  	20	% 
	 Associate Director, Senior Manager
	  	15	% 
	 Manager
	  	10	% 

 Corporate and Individual
Performance Factors 
 The President and / or CEO will present to the Compensation Committee a list of the overall corporate objectives for
the applicable Plan year, which are subject to approval by the Compensation Committee. All participants in the Plan will then develop a list of key individual objectives, which must be approved by the responsible Vice President or Senior Vice
President and by the President and / or CEO. 
  

 2 

 The relative weight between corporate and individual performance factors varies based on the
individual’s assigned level within the organization. The weighting may be reviewed periodically and may be adjusted for any Plan year. The weighting for the performance factors will initially be as follows: 
  

							
	 	  	Corporate	 	 	Individual	 
	 President/CEO
	  	100	% 	 		
	 EVP/SVP/VP
	  	60	% 	 	40	% 
	 Dir/Assoc Dir/Sr Mgr
	  	50	% 	 	50	% 
	 Manager
	  	40	% 	 	60	% 

 Performance Award
Multiplier 
 Separate award multipliers will be established for both the corporate and the individual components of each award. The award
multiplier for the corporate component shall be determined by the Compensation Committee each Plan year, in its sole discretion. The same award multiplier for the corporate component of the award shall be used for all Plan participants. The award
multiplier for the individual component shall be determined by the responsible Vice President or Senior Vice President and by the President and / or CEO. 
 While the Compensation Committee may change the award multipliers for any Plan year, the following scale will be used to determine the actual performance award multiplier based upon the measurement of
corporate and individual performance objectives. 
  

					
	 	  	 Performance Category
	  	 Award Multiplier

			
	1.	  	Performance for the year met or exceeded objectives or was excellent in view of prevailing conditions	  	75% - 150%
			
	2.	  	Performance generally met the year’s objectives or was very acceptable in view of prevailing conditions	  	50% - 100%
			
	3.	  	Performance for the year met some, but not all, objectives	  	25% - 50%
			
	4.	  	Performance for the year was not acceptable in view of prevailing conditions	  	0%

 Example 
 The example below shows a sample cash bonus award calculation under the Plan, which is determined after the end of the performance period. 
 Step #1: A potential base bonus award is calculated by multiplying the employee’s base salary by their assigned level bonus percentage.

 Step #2: The calculated potential base bonus amount is then split between the corporate and individual performance factors by
the employee’s assigned level (per the weighting above). This calculation establishes specific potential dollar awards for the performance period based on both the individual and corporate performance factor components. 
  

 3 

 Step #3: After the end of the performance period, corporate and individual award multipliers
will be established using the criteria described above. Awards are determined by multiplying the potential bonus awards in Step #2 by the actual corporate and individual award multipliers. 
  

											
	Example:	  	Step # 1: Potential Bonus Award Calculation
					
	 	  	Position:	  	 	  	Director	 	 	 
		  	Base salary:	  		  	$	100,000	  	 	
		  	Target bonus percentage:	  	 	20	% 	 	
		  	Potential base bonus:	  	$	20,000	  	 	
		
		  	Step # 2: Split award target amount based on weighting of Performance Factors
				
		  	 Potential corporate performance bonus (50%):
	  	$	10,000	  	 	
		  	 Potential individual performance bonus (50%):
	  	$	10,000	  	 	
				
		  	Step # 3: Actual Cash Incentive Award Calculation	  				 	
		
		  	 Assumed payment multipliers based on assessment of corporate and individual performance:

			
		  	Corporate multiplier	  	75%-performance generally met objectives
		  	Individual multiplier	  	125%-performance generally exceeded objectives
		  	Cash Award:	  		  				 	
				
		  	 Corporate component
	  	$	7,500	  	 	($10,000 x 75%)
		  	 Individual component
	  	$	12,500	  	 	($10,000 x 125%)
		  		  		  	 	 	 	 	
		  	 Total Award
	  	$	20,000	  	 	

 AWARD PAYMENTS 
 Bonus award payments may be made in cash, through the issuance of stock, stock options or another form of equity award, or by a combination of cash, stock, stock options and/or another form of equity
award, at the discretion of the Compensation Committee. All bonus award payments are subject to applicable tax withholdings. In the event that the Compensation Committee and / or the Board of Directors elect to pay bonus awards in stock or stock
options, the Compensation Committee, in its sole discretion, will make a determination as to the number of shares of stock or stock options to be issued to each Plan participant based, in part, upon the overall corporate performance and each
participant’s individual performance, as described. The issuance of stock and stock options may also be subject to the approval of the Company’s stockholders, and any stock options issued will be subject to the terms and conditions of the
Company’s Equity Incentive Award Plan, as amended from time to time by the Company. 
 Payment of bonus awards will be made as soon as
practicable after the issuance of the Company’s year-end audited Financial Statements for the Plan year, but not later than December 31 of the year following the Plan year. Payments will not be impacted by any benefits, with the exception
of elected 401(k) contributions which will be applied. 
  

 4 

 PLAN PROVISIONS 
 Governance 
 The Plan will be governed by the Compensation Committee of the Board of
Directors (the “Compensation Committee”). The President and / or CEO of Cadence will be responsible for the administration of the Plan. The Compensation Committee will be responsible for approving any compensation or incentive awards to
officers of the Company. All determinations of the Compensation Committee, under the Plan, shall be final and binding on all Plan participants. 
 Compensation Committee’s Absolute Right to Alter or Abolish the Plan 
 The Compensation Committee reserves the right in its
absolute discretion to abolish the Plan at any time or to alter the terms and conditions under which incentive compensation will be paid. Such discretion may be exercised any time before, during, and after the Plan year is completed. No participant
shall have any vested right to receive any compensation hereunder until actual delivery of such compensation. Participation in the Plan at any given time does not guarantee ongoing participation. 
 Employment Duration/Employment Relationship 
 This Plan does not, and Cadence’s policies and practices in administering this Plan do not, constitute an express or implied contract or other agreement concerning the duration of any participant’s employment with the Company. The
employment relationship of each participant is “at will” and may be terminated at any time by Cadence or by the participant, with or without cause. 
 Any questions pertaining to this plan should be directed to the Human Resources Department. 
  

 5 

 Cadence Pharmaceuticals, Inc. 
 Bonus Plan 
 Effective January 1, 2010 

 This is to acknowledge that I have received a copy of the 2010 Bonus Plan. 
  

									
					
	Name: 	 	 	 		 	Date: 	 	______________________
		 	(Print)	 		 		 	
					
		 	 	 		 		 	
		 	(Signature)	 		 		 	

  

 6exhibit10_21.htm

Exhibit 10.21

 

PHYSICIANS FORMULA HOLDINGS, INC.

DIRECTOR INDEMNIFICATION AGREEMENT

 

    THIS AGREEMENT (this "Agreement") is made as of April 24, 2009, by and between Physicians Formula Holdings, Inc., a Delaware corporation (the "Company", which term shall include, where appropriate, any Entity (as hereinafter defined) controlled directly or indirectly by the Company) and Padraic Spence (the "Indemnitee").

 

    WHEREAS, it is essential to the Company that it be able to retain and attract as directors the most capable persons available;

 

    WHEREAS, increased corporate litigation has subjected directors to litigation risks and expenses, and the limitations on the availability of directors and officers liability insurance have made it increasingly difficult for companies to attract and retain such persons;

 

    WHEREAS, the Company desires to provide Indemnitee with specific contractual assurance of Indemnitee's rights to full indemnification against litigation risks and expenses (regardless, among other things, of any amendment to the Company's certificate of incorporation or revocation of any provision of the Company's by-laws or any change in the ownership of the Company or the composition of its Board of Directors); and

 

    WHEREAS, Indemnitee is relying upon the rights afforded under this Agreement in accepting Indemnitee's position as a director of the Company.

 

    NOW, THEREFORE, in consideration of the promises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

    1. Definitions.

 

       (a) "Corporate Status" describes the status of a person who is serving or has served (i) as a director of the Company, including as a member of any committee thereof, (ii) in any capacity with respect to any employee benefit plan of the Company, or (iii) as a director, partner, trustee, officer, employee, or agent of any other Entity at the request of the Company.  For purposes of subsection (iii) of this Section 1(a), an officer or director of the Company who is serving or has served as a director, partner, trustee, officer, employee or agent of a Subsidiary (as defined below) shall be deemed to be serving at the request of the Company.

 

       (b) "Entity" shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other legal entity.

 

       (c) "Expenses" shall mean all fees, costs and expenses incurred in connection with any Proceeding (as defined below), including, without limitation, reasonable attorneys' fees, disbursements and retainers (including, without limitation, any such fees, disbursements and retainers incurred by Indemnitee pursuant to Sections 8 and 10(c) of this Agreement), fees and disbursements of expert witnesses, private investigators and professional advisors (including, without limitation, accountants and investment bankers), court costs, transcript costs, fees of experts, travel expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage, delivery services, secretarial services and other disbursements and expenses.

 

       (d) "Indemnifiable Expenses," "Indemnifiable Liabilities" and "Indemnifiable Amounts" shall have the meanings ascribed to those terms in Section 3(a) below.

 

       (e) "Liabilities" shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.

 

       (f)  "Proceeding" shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation, administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative, arbitrative or investigative, whether formal or informal, including a proceeding initiated by Indemnitee pursuant to Section 10 of this Agreement to enforce Indemnitee's rights hereunder.

 

       (g) "Subsidiary" shall mean any corporation, partnership, limited liability company, joint venture, trust or other Entity of which the Company owns (either directly or through or together with another Subsidiary of the Company) either (i) a general partner, managing member or other similar interest or (ii) (A) 50% or more of the voting power of the voting capital equity interests of such corporation, partnership, limited liability company, joint venture or other Entity, or (B) 50% or more of the outstanding voting capital stock or other voting equity interests of such corporation, partnership, limited liability company, joint venture or other Entity.

 

    2. Services of Indemnitee.  In consideration of the Company's covenants and commitments hereunder, Indemnitee agrees to serve or continue to serve as a director of the Company.  However, this Agreement shall not impose any obligation on Indemnitee or the Company to continue Indemnitee's service to the Company beyond any period otherwise required by law or by other agreements or commitments of the parties, if any.

 

 

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    3. Agreement to Indemnify.  The Company agrees to indemnify Indemnitee as follows:

 

       (a) Subject to the exceptions contained in Section 4(a) below, if Indemnitee was or is a party or is threatened to be made a party to any Proceeding (other than an action by or in the right of the Company) by reason of Indemnitee's Corporate Status, Indemnitee shall be indemnified by the Company against all Expenses and Liabilities incurred or paid by Indemnitee in connection with such Proceeding (referred to herein as "Indemnifiable Expenses" and "Indemnifiable Liabilities," respectively, and collectively as "Indemnifiable Amounts").

 

       (b) Subject to the exceptions contained in Section 4(b) below, if Indemnitee was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Company to procure a judgment in its favor by reason of Indemnitee's Corporate Status, Indemnitee shall be indemnified by the Company against all Indemnifiable Expenses.

 

    4. Exceptions to Indemnification.  Indemnitee shall be entitled to indemnification under Sections 3(a) and 3(b) above in all circumstances other than the following:

 

       (a) If indemnification is requested under Section 3(a) and it has been adjudicated finally by a court of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee failed to act (i) in good faith and (ii) in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful, Indemnitee shall not be entitled to payment of Indemnifiable Amounts hereunder.

 

       (b) If indemnification is requested under Section 3(b) and

 

          (i) it has been adjudicated finally by a court of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee failed to act (A) in good faith and (B) in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, Indemnitee shall not be entitled to payment of Indemnifiable Expenses hereunder; or

 

          (ii) it has been adjudicated finally by a court of competent jurisdiction that Indemnitee is liable to the Company with respect to any claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen, including, without limitation, a claim that Indemnitee received an improper personal benefit, no Indemnifiable Expenses shall be paid with respect to such claim, issue or matter unless the court of law or another court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Indemnifiable Expenses which such court shall deem proper.

 

    5. Procedure for Payment of Indemnifiable Amounts.  Indemnitee shall submit to the Company a written request specifying the Indemnifiable Amounts for which Indemnitee seeks payment under Section 3 of this Agreement and the basis for the claim.  The Company shall pay such Indemnifiable Amounts to Indemnitee within ten (10) calendar days following receipt of the request.

 

    6. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified against all Expenses reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each successfully resolved claim, issue or matter.  For purposes of this Agreement, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

    7. Effect of Certain Resolutions.  Neither the settlement nor termination of any Proceeding nor the failure of the Company to award indemnification or to determine that indemnification is payable shall create an adverse presumption that Indemnitee is not entitled to indemnification hereunder.  In addition, the termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal action or proceeding, had reasonable cause to believe that Indemnitee's action was unlawful.

 

    8. Agreement to Advance Expenses; Conditions.  The Company shall pay to Indemnitee all Indemnifiable Expenses incurred by Indemnitee in connection with any Proceeding, including a Proceeding by or in the right of the Company, in advance of the final disposition of such Proceeding, as the same are incurred.  To the extent required by Delaware corporate law, Indemnitee hereby undertakes to repay the amount of Indemnifiable Expenses paid to Indemnitee if it is finally determined by a court of competent jurisdiction that Indemnitee is not entitled under this Agreement to indemnification with respect to such Expenses.  This undertaking is an unlimited and unsecured general obligation of Indemnitee and no interest shall be charged thereon.

 

    9. Procedure for Advance Payment of Expenses.  Indemnitee shall submit to the Company a written request specifying the Indemnifiable Expenses for which Indemnitee seeks an advancement under Section 8 of this Agreement, together with documentation evidencing that Indemnitee has incurred such Indemnifiable Expenses.  Payment of Indemnifiable Expenses under Section 8 shall be made no later than ten (10) calendar days after the Company's receipt of such request.

 

 

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    10. Remedies of Indemnitee.

 

       (a) Right to Petition Court.  In the event that Indemnitee makes a request for payment of Indemnifiable Amounts under Sections 3 and 5 above or a request for an advancement of Indemnifiable Expenses under Sections 8 and 9 above and the Company fails to make such payment or advancement in a timely manner pursuant to the terms of this Agreement, Indemnitee may petition a court of law to enforce the Company's obligations under this Agreement.

 

       (b) Burden of Proof.  In any judicial proceeding brought under Section 10(a) above, the Company shall have the burden of proving that Indemnitee is not entitled to payment of Indemnifiable Amounts hereunder.

 

       (c) Expenses.  The Company agrees to reimburse Indemnitee in full for any Expenses incurred by Indemnitee in connection with investigating, preparing for, litigating, defending or settling any action brought by Indemnitee under Section 10(a) above, or in connection with any claim or counterclaim brought by the Company in connection therewith.

 

       (d) Validity of Agreement.  The Company shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section 10(a) above, that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration for this Agreement and shall stipulate in court that the Company is bound by all the provisions of this Agreement.

 

       (e) Failure to Act Not a Defense.  The failure of the Company (including its Board of Directors or any committee thereof, independent legal counsel or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of Indemnifiable Expenses under this Agreement shall not be a defense in any action brought under Section 10(a) above, and shall not create a presumption that such payment or advancement is not permissible.

 

    11. Representations and Warranties of the Company.  The Company hereby represents and warrants to Indemnitee as follows:

 

       (a) Authority.  The Company has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution, delivery and performance of the undertakings contemplated by this Agreement have been duly authorized by the Company.

 

       (b) Enforceability.  This Agreement, when executed and delivered by the Company in accordance with the provisions hereof, shall be a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors' rights generally.

 

    12. Insurance.  The Company shall, as promptly as practicable following the date hereof, use reasonable efforts to obtain and maintain directors and officers' liability insurance coverage on terms reasonably satisfactory to the Company’s Board of Directors.  In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company's officers and directors.

 

    13. Fees and Expenses.  During the term of the Indemnitee's service as a director, the Company shall promptly reimburse the Indemnitee for all expenses incurred by him in connection with his service as a director or member of any board committee or otherwise in connection with the Company's business and shall pay or provide the Indemnitee with fees and other compensation, including stock options or awards, in amounts and value which are at least equal to those provided to any of the Company's other non-employee directors from time to time.

 

    14. Contract Rights Not Exclusive.  The rights to payment of Indemnifiable Amounts and advancement of Indemnifiable Expenses provided by this Agreement shall be in addition to, but not exclusive of, any other rights which Indemnitee may have at any time under applicable law, the Company's by-laws or certificate of incorporation, or any other agreement, vote of stockholders or directors (or a committee of directors), or otherwise, both as to action in Indemnitee's official capacity and as to action in any other capacity as a result of Indemnitee's serving as a director of the Company.

 

    15. Successors.  This Agreement shall be (a) binding upon all successors and assigns of the Company (including any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or indirect successor by merger or consolidation or otherwise by operation of law) and (b) binding on and shall inure to the benefit of the heirs, personal representatives, executors and administrators of Indemnitee.  This Agreement shall continue for the benefit of Indemnitee and such heirs, personal representatives, executors and administrators after Indemnitee has ceased to have Corporate Status.

 

    16. Subrogation.  In the event of any payment of Indemnifiable Amounts under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of contribution or recovery of Indemnitee against other persons, and Indemnitee shall take, at the request and expense of the Company, all reasonable action necessary to secure such subrogation rights, including the execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

    17. Change in Law.  To the extent that a change in Delaware law (whether by statute or judicial decision) shall permit broader indemnification or advancement of expenses than is provided under the terms of the certificate of incorporation and/or by-laws of the Company and this Agreement, Indemnitee shall be entitled to such broader indemnification and advancements, and this Agreement shall be deemed to be automatically amended to such extent.

 

 

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    18. Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the minimum extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and clauses of this Agreement shall remain fully enforceable and binding on the parties.

 

    19. Indemnitee as Plaintiff.  Except as provided in Section 10(c) of this Agreement and in the next sentence, Indemnitee shall not be entitled to payment of Indemnifiable Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought by Indemnitee against the Company, any Entity which it controls, any director or officer thereof, or any third party, unless such Company has consented to the initiation of such Proceeding.  This Section shall not apply to counterclaims or affirmative defenses asserted by Indemnitee in an action brought against Indemnitee.

 

    20. Modifications and Waiver.  Except as provided in Section 17 above with respect to changes in Delaware law which broaden the right of Indemnitee to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall be binding unless executed in writing by each of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement (whether or not similar), nor shall such waiver constitute a continuing waiver.

 

    21. General Notices.  All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given (i) when personally delivered, sent by telecopy (with hard copy to follow) upon receipt of mechanical confirmation of delivery, (ii) for deliveries within the continental United States, one day following the day when deposited with a reputable and established overnight express courier (charges prepaid), (iii) for overseas deliveries, five days following the day when deposited with a reputable and established overnight express courier (charges prepaid), or (iv) for deliveries within the continental United States, five days following mailing by certified or registered mail, postage prepaid and return receipt requested:

 

       (i) If to Indemnitee, to:

 

       Padraic Spence

       2736 Jalmia Drive

       Los Angeles, CA 90046

       Telecopy: __________________

 

       (ii) If to the Company, to:

 

       Physicians Formula Holdings, Inc.

       1055 West 8th Street

       Azusa, CA 91702

       Telephone: (626) 334-3395

       Telecopy: (626) 812-6009

 

or to such other address as may have been furnished in the same manner by any party to the others.

 

    22. Governing Law.  This Agreement shall be governed by and construed and enforced under the laws of the State of Delaware without giving effect to the provisions thereof relating to conflicts of law.

 

*   *   *   *   *

 

 

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    IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	PHYSICIANS FORMULA HOLDINGS, INC. 	 
	 	 	 	 
	 	By: 	/s/ Joseph J. Jaeger 	 
	 	 	Name: Joseph J. Jaeger 	 
	 	 	Title: Chief Financial Officer 	 
	 	 	 	 
	 	INDEMNITEE 	 
	 	 	 	 
	 	/s/ Padraic Spence 	 
	 	Padraic Spence 	 

 

 

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