Document:

exv10w73

Exhibit 10.73

*** INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS
REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

SETTLEMENT AGREEMENT 

     This Settlement Agreement (the “Agreement”) is made and entered into as of January 21, 2011
(the “Settlement Date”), by and between Impax Laboratories, Inc., a Delaware corporation, (“Impax”)
and Medicis Pharmaceutical Corp., a Delaware corporation (“Medicis”). Impax and Medicis are each
referred to as a “Party” and collectively referred to as the “Parties.”

RECITALS

     WHEREAS, Impax has asserted various claims and causes of action against Medicis in an action
captioned Impax Laboratories, Inc. v. Medicis Pharmaceutical Corp., Case No. cv 2010-022735
(the “Litigation”), which is pending in the Superior Court of Maricopa County, Arizona (the
“Court”);

     WHEREAS, Medicis has asserted various counterclaims and causes of action against Impax in the
Litigation;

     WHEREAS, Medicis and Impax both deny any wrongdoing or liability;

     WHEREAS, to avoid the expense of further litigation, and without any admission of wrongdoing
or liability, the Parties desire to settle the Litigation on the terms set forth herein.

     NOW, THEREFORE, in consideration of the foregoing, of the mutual covenants and promises set
forth herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

1. Dismissal Order. *** the Parties shall file a notice of settlement with the Court. ***
the Parties shall file with the Court a Stipulation and Order, in the form attached as Exhibit A,
dismissing the Litigation with prejudice, with each side to bear its own costs and attorneys’ fees.

2. ***

3. ***

4. No Liability. ***

5. Amendments.

     5.1 That certain Joint Development Agreement entered into between the Parties and dated
November 26, 2008 (as amended, the “JDA”) is hereby amended by replacing the first sentence of
Section 6.3 of the JDA with the following sentence:

     “Subject to the terms and conditions of this Agreement, within sixty (60) days
following the end of each calendar quarter, Impax shall pay to Medicis ***

 

 

     5.2 The Joint Development Agreement is hereby further amended by replacing the first sentence
of Section 6.4 of the JDA with the following sentence:

     “Subject to the terms and conditions of this Agreement, Medicis shall pay to Impax ***

     5.3 The Joint Development Agreement is hereby further amended by replacing the first sentence
of Section 6.5 of the JDA with the following sentence:

     “Subject to the terms and conditions of this Agreement, Medicis shall pay to
Impax ***

6. Confidentiality. The Parties agree that, except as otherwise may be required by
applicable laws, regulations, rules or orders, no information concerning this Agreement shall be
made public by either Party without the prior written consent of the other.

7. No Prior Transfer. The Parties hereby mutually represent and warrant that there has
been no assignment, sale or other transfer or disposition of any interest in any of the Claims.

8. Due Authorization. The Parties represent and warrant that the individuals signing this
Agreement on their behalf are duly authorized and fully competent to do so.

9. Assignment, Predecessors, Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the Parties and their respective successors and assigns.

10. Construction. The Parties hereby mutually acknowledge and represent that they have
been fully advised by their respective legal counsel of their rights and responsibilities under
this Agreement, that they have read, know and understand completely the contents of this Agreement,
and that they have voluntarily executed the same. The Parties further mutually acknowledge that
they have had input into the drafting of this Agreement and that, accordingly, in any construction
to be made of the Agreement, it shall not be construed for or against any party, but rather shall
be given a fair and reasonable interpretation, based on the plain language of the Agreement and the
expressed intent of the Parties.

11. Entire Agreement. The Parties acknowledge that this Agreement sets forth the entire
agreement and understanding of the Parties and supersedes all prior written or oral agreements or
understandings with respect to the subject matter hereof. No modification of any of the terms of
this Agreement, or any amendments thereto, shall be deemed to be valid unless in writing and signed
by an authorized agent or representative of both parties hereto. No course of dealing or usage of
trade shall be used to modify the terms and conditions herein. This Agreement shall be binding on
each of Impax and Medicis and their respective permitted successors and assigns.
Except as expressly set forth herein, the License Agreement and JDA shall remain in full force and
effect in accordance with their respective terms.

12. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. The Parties agree that telecopied or PDF copies of signatures will be sufficient, with
original signature pages to be supplied and exchanged at a later date.

 

 

13. Governing Law. In any action brought regarding the validity, construction and
enforcement of this Agreement, it shall be governed in all respects by the laws of the State of
Arizona, without regard to the principles of conflicts of laws. The federal and state courts in
the State of Arizona shall have jurisdiction over the parties hereto in all matters arising
hereunder and the parties hereto agree that the venue with respect to such matters will be a state
or federal court in the State of Arizona.

14. Waiver of Claims and Defenses. The Parties agree that this Agreement shall not be
subject to any claim of duress, mistake of law or mistake of fact, and that it expresses the full
and complete settlement of the Parties.

 

 

IN WITNESS WHEREOF, the Parties have fully executed and delivered this Settlement Agreement as of
the day and year first written above.

	 	 	 	 	 
	 	

IMPAX LABORATORIES, INC.

 	 
	 	By:  	/s/ Larry Hsu
 	 
	 	 	Name:  	Larry Hsu                                         	 
	 	 	Title:  	President & CEO 	 

	 	 	 	 	 
	 	

MEDICIS PHARMACEUTICAL CORP.

 	 
	 	By:  	/s/ Richard D. Peterson
 	 
	 	 	Name:  	Richard D. Peterson                                       	 
	 	 	Title:  	EVP, CFO & Treasurer 	 
	 

 

 

Exhibit A

Patricia Lee Refo (#017032)

Kelly Kszywienski (#025578)

Snell & Wilmer LLP

400 E. Van Buren

Phoenix, AZ 85004-2202

Telephone: (602) 382-6290

Facsimile: (602) 382-6070

prefo@swlaw.com

kkszywienski@swlaw.com

Of Counsel:

Andrew M. Berdon (NY Bar No. 2214138)

Quinn Emmanuel Urquhart & Sullivan, LLP

51 Madison Avenue, 22nd Floor

New York, New York 10010

Telephone: (212) 849-7000

Email: andrew.berdon@quinnemanuel.com

Thomas C. Frongillo (Mass. Bar No. 180690)

Weil, Gotshal & Manges LLP

100 Federal Street, Floor 34

Boston, MA 02110

Telephone: (617) 772-8335

Email: thomas.frongillo@weil.com

Danielle Rosenthal

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Telephone: (212) 310-8000

Facsimile: (212) 310-8007

Email: danielle.rosenthal@weil.com

Attorneys for Defendant Medicis Pharmaceutical Corp.

IN THE SUPERIOR COURT OF THE STATE OF ARIZONA

IN AND FOR THE COUNTY OF MARICOPA

	 	 	 

	Impax Laboratories, Inc.,

	 	No. CV 2010-022735
	 
	 	 
	Plaintiff,

	 	STIPULATION FOR DISMISSAL

WITH PREJUDICE
	          v.
	 	 
	 
	Medicis Pharmaceutical Corp.,

	 	(Assigned to the Honorable John A.
Buttrick)
	 
	 	 
	Defendant.
	 	 

 

 

     Plaintiff Impax Laboratories, Inc. and Defendant Medicis Pharmaceutical Corp., by and through
counsel undersigned, stipulate and agree that this matter shall be dismissed with prejudice, each
party to bear its own costs and attorneys’ fees.

     DATED this ___ day of January 2011.

	 	 	 	 	 	 	 	 	 

	SNELL & WILMER L.L.P.	 	 	 	MARISCAL, WEEKS, MCINTYRE &

FRIEDLANDER, P.A.
	By

	 	/s/ Patricia Lee Refo
 

	 	 	 	 	 	 
	 

	 	Patricia Lee Refo
	 	 	 	By
	 	/s/ David G. Bray (with permission)
	 

	 	 	 	 	 	 	 	 
	 

	 	Kelly A. Kszywienski
	 	 	 	 	 	Timothy J. Thomason
	 

	 	One Arizona Center
	 	 	 	 	 	David G. Bray
	 

	 	400 E. Van Buren
	 	 	 	 	 	2901 North Central Avenue, Suite 200
	 

	 	Phoenix, AZ 85004-2202
	 	 	 	 	 	Phoenix, Arizona 85012-2705
	 

	 	Attorneys for Defendant	 	 	 	 	 	Attorney for Plaintiff

MAILED this ____ day of January 2011 to:

Thomas J. Thomason

David G. Bray

Mariscal, Weeks, McIntyre & Friedlander PA

2901 N. Central #200

Phoenix, Arizona 85012

Susan L. Harriman

Steven P. Ragland

Michael E. Gadeberg

Keker & Van Nest LLP

710 Sansome Street

San Francisco, CA 94111-1704

Attorneys for Plaintiff Impax Laboratories, Inc.

 

 

Patricia Lee Refo (#017032)

Kelly Kszywienski (#025578)

Snell & Wilmer LLP

400 E. Van Buren

Phoenix, AZ 85004-2202

Telephone: (602) 382-6290

Facsimile: (602) 382-6070

prefo@swlaw.com

kkszywienski@swlaw.com

Of Counsel:

Andrew M. Berdon (NY Bar No. 2214138)

Quinn Emmanuel Urquhart & Sullivan, LLP

51 Madison Avenue, 22nd Floor

New York, New York 10010

Telephone: (212) 849-7000

Email: andrew.berdon@quinnemanuel.com

Thomas C. Frongillo (Mass. Bar No. 180690)

Weil, Gotshal & Manges LLP

100 Federal Street, Floor 34

Boston, MA 02110

Telephone: (617) 772-8335

Email: thomas.frongillo@weil.com

Danielle Rosenthal

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Telephone: (212) 310-8000

Facsimile: (212) 310-8007

Email: danielle.rosenthal@weil.com

Attorneys for Defendant Medicis Pharmaceutical Corp.

IN THE SUPERIOR COURT OF THE STATE OF ARIZONA

IN AND FOR THE COUNTY OF MARICOPA

	 	 	 

	Impax Laboratories, Inc., a Delaware
corporation,

	 	No. CV 2010-022735
	 
	 	 
	Plaintiff,

	 	ORDER FOR DISMISSAL WITH

PREJUDICE
	v.
	 	 
	 
	 	 
	 

	 	(Assigned to the Honorable John A. Buttrick)

 

 

	 	 	 

	Medicis Pharmaceutical Corp., a Delaware
corporation,

	 	 
	 
	 	 
	Defendant.
	 	 

     Pursuant to the parties’ Stipulation for Dismissal With Prejudice, and good cause appearing,

     IT IS HEREBY ORDERED that this action is dismissed in its entirety with prejudice, each party
to bear its own costs and attorneys’ fees.

     DATED this ____ day of January, 2011.

	 	 	 	 	 
	 	 	 
	 	  	

 	 
	 	 	The Honorable John A. Buttrick 	 
	 	 	Judge of the Maricopa County Superior Courtexv10w1

Exhibit 10.1

Holly Corporation

Amended and Restated Change in Control Agreement Policy

February 23, 2011

     This Amended and Restated Change in Control Agreement Policy reflects the terms and procedures
as approved at the February 23, 2011 meeting of the Board of Directors (“Board”) of Holly
Corporation (“Holly”) based upon the recommendation of the Compensation Committee of the Board.
This Amended and Restated Change in Control Agreement Policy supersedes and replaces all prior or
contemporaneous policies concerning such subject matter.

     1. Eligibility

     Employees
of Holly and any subsidiary or affiliate of Holly (but excluding
employees of Holly Logistics Services, L.L.C.(“HLS”), Holly
Energy Partners, L.P. (“HEP”) and any
subsidiary of HLS and HEP) at pay grades 34 and above will receive CIC Agreements either
upon hire or promotion to an eligible pay grade level at the benefit level described in Section 2
below. However, no eligible individual will be entitled to the benefits described in Section 2
below unless or until the individual timely executes a CIC Agreement in accordance with the
procedures established by the Chief Executive Officer of Holly.

     2. Severance Benefits under CIC Agreements

     The CIC Agreements contain a double trigger, meaning that severance benefits only become
payable if a “Change in Control” occurs and an executive experiences a “Termination Event” during
the “Protection Period.” The severance benefits potentially payable under the CIC Agreements
contain three components:

	 	•	 	Accrued but unpaid salary, reimbursement of expenses, and accrued vacation pay;
	 
	 	•	 	A lump sum amount equal to the sum of an executive’s base salary plus annual bonus multiplied
by the applicable multiplier (see chart below); and
	 
	 	•	 	Continuation of medical and dental benefits for a specified number of years (see chart below).

     The applicable multiplier and number of years that medical and dental benefits will be
continued will be determined based on the executive’s pay grade classification in accordance with
the following chart:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Years of Medical and Dental
	 	 	Lump Sum Multiplier	 	Continuation
	Grades 34 and 35
	 	 	1X	 	 	1 Year
	Grades 36 and 37
	 	 	2X	 	 	2 Years
	Grade 38 and Above
	 	 	3X	 	 	3 Years

 

 

     3. Term of CIC Agreements

     The initial term of each and every CIC Agreement will end on the first May 15th following the
effective date of the CIC Agreement, regardless of the date on which an executive entered into a
CIC Agreement with Holly. On that date and on each subsequent May 15th, the term of each CIC
Agreement will be automatically extended for one additional year, unless Holly gives notice to each
executive 60 days prior to the automatic extension date. For example, if an eligible executive is
hired on and enters into a CIC Agreement on March 1, 2011, the initial term of his CIC Agreement
will last until May 15, 2011, and if Holly does not give a notice of nonextension by March 16,
2011, then the term of the CIC Agreements will be automatically extended to May 15, 2012 on May 15,
2011. The occurrence of a “Change in Control” will extend or reduce the term of the CIC Agreements
through the end of the “Protection Period.”

     4. Applicable Definitions

	 	•	 	“Change in Control” — the CIC Agreements use the same definition used
with respect to awards issued under Holly’s Long Term Incentive Plan
(“LTIP”) with certain modifications (intended to comply with section
409A of the Internal Revenue Code) as specified below:

	 	•	 	A third party acquisition of more than 50% (versus 40% under the LTIP
awards) of the outstanding stock of Holly or of the combined voting
power of outstanding securities of Holly; or

	 	•	 	A majority of the Board is replaced during any 12 month
period with directors who are not endorsed by a majority
of the existent Board (versus no time limitation under the
LTIP awards); or
	 
	 	•	 	A merger or consolidation of Holly, except if:

	 	•	 	Holly’s voting securities continue to represent at least
50% (versus 60% under the LTIP awards) of the combined
voting power of the voting securities of the surviving
entity; or
	 
	 	•	 	The event is a recapitalization of Holly and no one person
owns more than 50% (versus 40% under the LTIP awards) of
Holly’s voting securities following the transaction; or

	 	•	 	A liquidation or sale of Holly, except to an entity owned 60% by Holly.

	 	•	 	“Protection Period” is the 24 month period beginning on the date a Change in Control occurs.
	 
	 	•	 	“Termination Event” means a termination of an executive’s employment without “Cause,” for
“Good Reason,” or as a condition to the consummation of or entry into a “Change in Control”
transaction.

	 	•	 	“Cause” means an executive’s (1) engagement in an act of
willful gross negligence or willful misconduct on a matter
that is not inconsequential, or (2) conviction of a
felony.
	 
	 	•	 	“Good Reason” means, without an executive’s consent, (1) a
material reduction in the executive’s authority, duties or
responsibilities (or in the authority, duties or
responsibilities of the executive’s supervisor), (2) a
material reduction in executive’s base compensation, or
(3) relocation of an executive to an office more than 50
miles away from the location at which executive normally
performs his duties. An executive must give notice of the
occurrence of a “Good Reason” event within 90 days and
give the company 30 days to cure.

 

 

     5. Additional Provisions

	 	•	 	Gross Up Payments — If the severance benefits paid under the CIC
Agreement (when combined with any other change in control payments,
including but not limited to the accelerated vesting of equity
compensation awards, received by the executive) exceed the limits
imposed by section 280G of the Internal Revenue Code by more than 10%,
then Holly will make a gross up payment to the executive. If the
severance benefits (when combined with other change in control
payments) exceed the section 280G limits by less than 10%, then the
executive’s severance benefits will be cut back to an amount within
the section 280G limits. The determination of whether either a gross
up payment or a cut back is required under these provisions will be
made by an independent public accounting firm.

	 	•	 	Release — Payment of the lump sum amount and continuation of medical and dental benefits are
conditioned on the execution and nonrevocation by an executive of a release agreement.
	 
	 	•	 	Arbitration — The CIC Agreements are subject to binding arbitration in the event of any dispute.

     6. Form Agreements

     The CIC Agreement form for Holly is attached as Appendix A.

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