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Exhibit 10.6    
    

 
 

EMPLOYMENT AGREEMENT    
    

        This AGREEMENT ("Agreement") is made and entered into as of the 25 day of September, 2003, by and between FIRST HORIZON PHARMACEUTICAL CORPORATION, a
Delaware corporation (the "Company") and ROBERT D. GODFREY, JR. ("Executive"). 

 
 

WITNESSETH.    
    

        WHEREAS, the Company desires to employ the Executive, and the Executive desires to accept such employment, upon the terms and conditions hereinafter set forth; 

        NOW,
THEREFORE, in consideration of Executive's employment or continued employment, the covenants and mutual agreements set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: 

	1.
	Employment.    Throughout the Term (as defined in Section 2 below), the Company shall employ Executive as provided
herein, and Executive hereby accepts such employment. In accepting such employment, Executive states that, to the best of his knowledge, he is not now, and by accepting such employment, will not be,
under any restrictions in the performance of the duties contemplated under this Agreement as a result of the provisions of any prior employment agreement or non-compete or similar
agreement to which Executive is or was party.

	2.
	Term of Employment.    Subject to approval of this Agreement by the Company's Board of Directors, the term of Executive's
employment by the Company hereunder commenced on May 23, 2003 (the "Effective Date") and shall continue thereafter unless sooner terminated as a result of Executive's death or in accordance
with the provisions of Section 6 below (the "Term").

	3.
	Duties.    Throughout the Term, and except as otherwise expressly provided herein, Executive shall be employed by the Company
as the Vice President of Sales And Sales Operations of the Company. Executive shall devote his full time to the performance of his duties as Vice President of Sales of the Company in accordance with
the Company's By-laws, this Agreement and the directions of the Company's Board of Directors and any executive officer of the Company who is senior to Executive. Without limiting the
generality of the foregoing, throughout the Term Executive shall faithfully perform his duties as Vice President of Sales at all times so as to promote the best interests of the Company. In addition,
subject to approval of this Agreement by the Board of Directors, the Board of Directors shall elect Executive as an officer of the Company at its first board meeting after the Effective Date.

	4.
	Compensation.

	(a)
	Salary.    For any and all services performed by Executive under this Agreement during the Term, in whatever capacity, the
Company shall pay to Executive an annual salary of One Hundred Forty-Five Thousand Dollars ($145,000.00) per year (the "Salary") less any and all applicable federal, state and local
payroll and withholding taxes. The Salary shall be paid in the same increments as the Company's normal payroll, but no less frequent than bi-monthly and prorated, however, for any period
of less than a full month. The Salary will be reviewed annually by the Compensation Committee of the Board and a determination shall be made at that time as to the appropriateness of an increase, if
any, thereto.

	(b)
	Bonus.    In addition to the Salary, Executive shall be eligible to receive from the Company an incentive compensation bonus
(the "Bonus") based on a percentage of his Salary. The Bonus, if any, shall be determined based on such criteria as shall be 

 

determined
from time to time by the Compensation Committee of the Board of Directors. The nature of the criteria and the determination as to whether the criteria have been satisfied, shall be
determined by the Compensation Committee of the Board in its sole discretion. Accordingly, there is no assurance that a Bonus will be paid to Executive with respect to all or any particular year
during the Term. 

	5.
	Benefits and Other Rights.    In consideration for Executive's performance under this Agreement, the Company shall provide to
Executive the following benefits:

	(a)
	The
Company will provide Executive with cash advances for or reimbursement of all reasonable out-of-pocket business expenses incurred by Executive in
connection with his employment hereunder. Such reimbursement, however, is conditioned upon Executive adhering to any and all reasonable policies established by Company from time to time with respect
to such reimbursements or advances, including, but not limited to, a requirement that Executive submit supporting evidence of any such expenses to the Company.

	(b)
	To
the extent from time-to-time provided by the Company to employees of the Company at the same level as Executive, either (i) a car allowance or
(ii) a company car, gasoline charge card and car maintenance plan. Executive acknowledges that the Company may in its discretion change its policies for these purposes including, without
limitation, ceasing to provide the benefits set forth in this paragraph.

	(c)
	The
Company will provide Executive and his family with the opportunity to receive group medical coverage under the terms of the Company's health insurance plan, but subject to
completion of normal waiting periods. During any such waiting period, the Company will pay, or reimburse Executive for, the cost of COBRA coverage for Executive and his family under his prior health
plan.

	(d)
	During
the Term the Executive shall be entitled to fifteen (15) days paid vacation, it being understood and agreed that unused vacation shall not be carried over from one year
to the next. In addition, Executive shall be entitled to eight (8) paid holidays and four (4) paid personal days off.

	6.
	Termination of the Term.

	(a)
	The
Company shall have the right to terminate the Term under the following circumstances:

	(i)
	Executive
shall die;

	(ii)
	With
or without Cause, effective upon written notice to Executive by the Company; or

	(iii)
	Upon
or within one (1) year following a Change of Control.

	(b)
	Executive
shall have the right to terminate the Term under the following circumstances,

	(i)
	At
any time upon sixty (60) days prior written notice to the Company; or

	(ii)
	For
Good Reason upon or within one (1) year following a Change of Control.

	(c)
	For
purposes of this Agreement, "Cause" shall mean:

	(i)
	Executive
shall be convicted of the commission of a felony or a crime involving dishonesty, fraud or moral turpitude;

	(ii)
	Executive
has engaged in acts of fraud, embezzlement, theft or other dishonest acts against the Company; 

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	(iii)
	Executive
commits an act which negatively impacts the Company or its employees including, but not limited to, engaging in competition with the Company, disclosing confidential
information or engaging in sexual harassment, discrimination or other human rights-type violations;

	(iv)
	Executive's
gross neglect or willful misconduct in the discharge of his duties and responsibilities; or

	(v)
	Executive's
repeated refusal to follow the lawful direction of the Board of Directors or supervising officers.

	(d)
	For
purposes of this Agreement, "Change of Control" shall mean the occurrence of any of the following:

	(i)
	The
acquisition (other than by a direct purchase of shares from the Company) by any "person," including a "syndication" or "group", as those terms are used in Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (other than any such person currently owning in excess of the following amount), of securities representing 20% or more of the combined
voting power of the Company's then outstanding voting securities, which is any security that ordinarily possesses the power to vote in the election of the Board of Directors of a corporation without
the happening of any precondition or contingency;

	(ii)
	The
Company is merged or consolidated with another corporation and immediately after giving effect to the merger or consolidation less than 80% of the outstanding voting securities
of the surviving or resulting entity are then beneficially owned in the aggregate by (x) the stockholders of the Company immediately prior to such merger or consolidation, or (y) if a
record date has been set to determine the stockholders of the Company entitled to vote on such merger or consolidation, the stockholders of the Company as of such record date;

	(iii)
	If
at any time during a calendar year a majority of the directors of the Company are not persons who were directors at the beginning of the calendar year; or

	(iv)
	The
Company transfers substantially all of its assets to another corporation which is a less than 80% owned subsidiary of the Company.

	(e)
	For
purposes of this Agreement, "Good Reason" shall mean the occurrence of any one or more of the following events which continues uncured for a period of not less thirty
(30) days following written notice given by Executive to the Company within fifteen (15) days following the occurrence of such event, unless the Executive specifically agrees in writing
that such event shall not be Good Reason:

	(i)
	Any
material breach of this Agreement by the Company;

	(ii)
	Any
failure to continue the Executive as an executive officer of the Company;

	(iii)
	The
requirement by the Company that Executive perform his services hereunder primarily at a location outside of the metropolitan Atlanta, Georgia area; or

	(iv)
	The
reduction of the Employee's salary below the amount set forth in Section 4(a) above without the written consent of Executive. 

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	7.
	Effect of Expiration or Termination of the Term.    Promptly following the termination of the Term, and except as otherwise
expressly agreed to by the Company in writing, Executive shall:

	(a)
	Immediately
resign from any and all other positions or committees which Executive holds or is a member of with the Company or any subsidiary of the Company including, but not limited
to, as an officer and director of the Company or any subsidiary of the Company.

	(b)
	Provide
the Company with all reasonable assistance necessary to permit the Company to continue its business operations without interruption and in a manner consistent with reasonable
business practices; provided, however, that such transition period shall not exceed thirty (30) days after termination nor require more than twenty (20) hours of Executive's time per
week and Executive shall be promptly reimbursed for all out-of-pocket expenses.

	(c)
	Deliver
to the Company possession of any and all property owned or leased by the Company which may then be in Executive's possession or under his control, including, without
limitation, any and all such keys, credit cards, automobiles, equipment, supplies, books, records, files, computer equipment, computer software and other such tangible and intangible property of any
description whatsoever. If, following the expiration or termination of the Term, Executive shall receive any mail addressed to the Company, then Executive shall immediately deliver such mail, unopened
and in its original envelope or package, to the Company.

	(d)
	Other
than as provided in this Section 7, upon a termination of employment all other benefits and/or entitlements to participate in programs or benefits, if any, will cease as
of the effective date except medical insurance coverage that may be continued at Executive's own expense as provided by applicable law or written Company policy.

	(e)
	Upon
termination of Executive pursuant to § 6(a)(i) or § 6(a)(ii) without Cause following the six (6) month anniversary of the Effective
Date, the Company shall: (i) provide Executive with Salary continuance, subject to § 7(h) for twelve (12) months (a "Salary Continuance") at the rate in effect immediately
prior to termination, plus (ii) a lump sum payment equal to One Hundred Percent (100%) of the Bonus, if any, paid to Executive for the calendar year immediately preceding termination, plus
(iii) provide twelve (12) months of COBRA coverage for Executive which shall be substantially equivalent to that provided by the Company prior to termination, plus (iv) provide
twelve (12) months of car allowance at seven hundred fifty dollars ($750.00) per month, subject to return of existing company vehicle at time of termination and provided the Company is
providing benefits under § 5(b) of this Agreement at the time of termination of employment, plus (v) all of Executive's then unvested options previously issued pursuant to the
Company's stock option plans shall immediately vest and be exercisable as herein provided. In the event of termination of Executive's employment prior to the six (6) month anniversary of the
Effective Date, Executive shall not be entitled to any severance from the Company.

	(f)
	Upon
termination of Executive pursuant to § 6(a)(ii) with Cause or § 6(b)(i), the Company shall pay Executive or Executive's estate all Salary accrued
but unpaid as of the date of such termination.

	(g)
	Upon
termination of Executive pursuant to § 6(a)(iii) or § 6(b)(ii), the Company shall: (i) provide Executive with Salary continuance for
twenty-four (24) months at the rate in effect immediately prior to termination, plus (ii) a lump sum payment equal to Two Hundred Percent (200%) of the Bonus, if any, paid to
Executive for the calendar year immediately preceding termination, plus (iii) provide COBRA coverage for Executive which shall be substantially equivalent to that provided by the Company prior
to termination until the earlier of (A) twenty-four (24) months after the date of termination, 

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(B) the
availability of replacement coverage to Executive from a third party employer after Executive has accepted another full-time position and (C) the expiration of COBRA
benefits by reason of lapse of the statutory or regulatory benefit period established by governmental authority, plus (iv) provide twenty-four (24) months of car allowance at
seven hundred fifty dollars ($750.00) per month, subject to return of existing company vehicle at time of termination and provided the Company is providing benefits under § 5(b) of
this Agreement at the time of termination of employment, plus (v) all of Executive's then unvested options previously issued pursuant to the Company's stock option plans shall immediately vest
and be exercisable as herein provided. 

	(h)
	In
the event that Executive shall be entitled to receive a Salary Continuance and COBRA benefit pursuant to § 7(e), such Salary Continuance and COBRA benefit shall
continue only until such time as Executive shall have accepted another full time position. In addition, in the event that Executive shall perform consulting or other services for which he shall
receive compensation, all compensation shall be reported to the Company and shall be offset against any remaining Salary Continuance payments. Failure of Executive to promptly report the receipt of
any compensation from a third party or the acceptance of a new position shall entitle the Company to terminate all remaining Salary Continuance and COBRA benefits and to seek restitution for any
payments made to Executive subsequent to such job acceptance or compensation receipt.

	(i)
	Any
dollar amounts which are to be paid at the time of termination under this Section 7, other than Salary Continuance, payments under Section 7(g)(i), the car allowance
and COBRA payments, shall be paid within thirty (30) days after the date of termination. Any Salary Continuance, payments under Section 7(g)(i) or COBRA payments shall be made in
accordance with the usual payroll practices which were applicable prior to termination. Except as otherwise specifically set forth herein, any and all payments made pursuant to this Agreement shall be
net of any and all applicable federal, state and local payroll and withholding taxes.

	(j)
	If
the Company or the Company's accountants determine that the payments called for under Section 7(g) of this Agreement either alone or in conjunction with any other payments
or benefits made available to the Employee by the Company will result in the Employee being subject to an excise tax ("Excise Tax") under Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code"), or if an Excise Tax is assessed against Executive as a result of such payments or other benefits, the Company shall make a Gross-Up Payment (as defined below) to or
on behalf of Executive as and when such determination(s) and assessment(s), as appropriate, are made, subject to the conditions of this subsection (i) A "Gross-Up Payment" shall
mean a payment to or on behalf of Executive that shall be sufficient to pay (i) any Excise Tax in full, (ii) any federal, state and local income tax and Social Security or other
employment tax on the payment made to pay such Excise Tax as well as any additional Excise Tax on the Gross-Up Payment, and (iii) any interest or penalties assessed by the Internal
Revenue Service on Executive if such interest or penalties are attributable to the Company's failure to comply with its obligations under this subsection (i) or applicable law. Any
determination under this subsection (i) by the Company or the Company's accountants shall be made in accordance with Section 280G of the Code, any applicable related regulations (whether
proposed, temporary or final), any related Internal Revenue Service rulings and any related case law, and shall assume that Executive shall pay Federal income taxes at the highest marginal rate in
effect for the year in which the Gross-Up Payment is made and state and local income taxes at the highest marginal rate in effect in the state of Executive's residence for such year.
Executive shall take such action (other than waiving Employee's right to any payments or benefits) as the Company reasonably requests under 

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the
circumstances to mitigate or challenge such tax. If the Company reasonably requests that Executive take action to mitigate or challenge, or to mitigate and challenge, any such tax or assessment
and Executive complies with such request, the Company shall provide Executive with such information and such expert advice and assistance from the Company's accountants, lawyers and other advisors as
Executive may reasonably request and shall pay for all expenses incurred in effecting such compliance and any related fines, penalties, interest and other assessments. Subject to the provisions of
this subsection (i), all determinations required to be made under this subsection (i), including whether and when a Gross-Up Payment is required and the amount of such Gross-up
Payment and the assumptions to be utilized in arriving at such determination, shall be made by the public accounting firm that is retained by the Company as of the date immediately prior to the Change
of Control (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and Executive within thirty (30) business days of the receipt of notice from the
Company or Executive that there has been a payment that could trigger a Gross-Up Payment, or such earlier time as is requested by the Company (collectively, the "Determination"). In the
event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, Executive may appoint another nationally recognized public
accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be
borne solely by the Company and the Company shall enter into any agreement requested by the Accounting Firm in connection with the performance of the services hereunder. The Gross-Up
Payment under this subsection (i) with respect to any payments shall be made no later than sixty (60) days following such payments. If the Accounting Firm determines that no Excise Tax
is payable by Executive, it shall furnish Executive with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on Executive's applicable federal income tax
return will not result in the imposition of a negligence or similar penalty. The Determination by the Accounting Firm shall be binding upon the Company and Executive. As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the Determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment")
or Gross-Up Payments are made by the Company which should not have been made ("Overpayment") consistent with the calculations required to be made hereunder. In the event that Executive
thereafter is required to make payment of any additional Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of Executive. In the event the amount of the Gross-Up
Payment exceeds the amount necessary to reimburse Executive for his Excise Tax as herein set forth, the Accounting Firm shall determine the amount of the Overpayment that has been made and any such
Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by Executive to or for the benefit of the Company. Executive shall cooperate,
to the extent Executive's expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the Internal Revenue Service in
connection with the Excise Tax. 

	8.
	Restrictive Covenants for Executive. Executive hereby covenants and agrees with the Company that for so long as Executive is employed by
the Company and for a period (the "Restricted Period") of twelve months after the termination of such employment for any reason. Executive shall not, without the prior written consent of the Company,
which consent shall be within the 

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sole
and exclusive discretion of the Company, either directly or indirectly on his own account or on behalf of any other person or entity: 

	(a)
	Perform
services for a Competing Business that are substantially similar in whole or in part to those that he performed for the Company in his role as Vice President of Sales,
including specifically, but not limited to, the sale or marketing of drug products or the management of individuals involved in the sale or marketing of drug products. For purposes of this covenant,
the term "Competing Business" shall mean any company engaged in the development, marketing or sale of prescription drug products, including generic and nongeneric drug products, which are competitive
with: (1) those products being marketed by the Company at the time of Executive's termination; or (2) those products that Executive was aware were under development by the Company and
expected to be marketed within two years of Executive's termination. This covenant shall apply only within the "Territory" which is defined as the fifty states of the United States. Executive
recognizes and agrees that in his capacity of Vice President of Sales, his duties extend throughout the entire service area of the Company which includes, at a minimum, the fifty states of the United
States and that, because of the executive nature of Executive's position with the Company, in order to afford the Company protection from unfair competition by the Executive following his termination
of employment, this covenant must extend throughout the stated Territory. Executive further acknowledges that this covenant does not prohibit him from engaging in his entire trade or business but only
a very limited segment of the pharmaceuticals industry.

	(b)
	Solicit
any current supplier, customer or client of the Company with whom Executive dealt, or with whom anyone in Executive's direct chain of command dealt, on behalf of the Company
within the year preceding Executive's termination of employment, for the purpose of purchasing drug products (or ingredients of drug products) or selling or marketing drug products, including generic
and nongeneric drug products, which are competitive with: (1) those products being marketed by the Company at the time of Executive's termination, or (2) those products that Executive
was aware were under development by the Company and expected to be marketed within two years of Executive's termination. Notwithstanding this subsection (b), Executive may solicit suppliers that have
excess capacity as reasonably determined by the Company.

	9.
	Confidentiality.    Attached to this Agreement as Exhibit A is the form of the Employee/Independent Contractor
Confidentiality and Non-Solicitation Agreement (the "Confidentiality Agreement") which the Company requires all employees, including, but not limited to, the Executive, to execute and
which is a part of each employee's terms of employment. By signing this Agreement, Executive acknowledges having received, read, executed and delivered to the Company a copy of the Confidentiality
Agreement and agrees that the terms of the Confidentiality Agreement shall be incorporated by reference into this Agreement and shall be considered as part of the terms and conditions of Executive's
continued employment with the Company.

	10.
	Remedies.

	(a)
	The
covenants of Executive set forth in Section 8 and Section 9 are separate and independent covenants for which valuable consideration has been paid, the receipt,
adequacy and sufficiency of which are acknowledged by Executive, and have also been made by Executive to induce the Company to enter into this Agreement and continue Executive's employment with the
Company. Each of the aforesaid covenants may be availed of, or relied upon, by the Company in any court of competent jurisdiction, and shall form the basis of injunctive relief and damages including
expenses of litigation (including, but not limited to, reasonable attorney's fees upon trial and appeal) suffered 

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by
the Company arising out of any breach of the aforesaid covenants by Executive. The covenants of Executive set forth in this Section 10 are cumulative to each other and to all other covenants
of Executive in favor of the Company contained in this Agreement and shall survive the termination of this Agreement for the purposes intended. 

	(b)
	Each
of the covenants contained in Section 8 and Section 9 above shall be construed as agreements which are independent of any other provision of this Agreement, and the
existence of any claim or cause of action by any party hereto against any other party hereto, of whatever nature, shall not constitute a defense to the enforcement of such covenants. If any of such
covenants shall be deemed unenforceable by virtue of its scope in terms of geographical area, length of time or otherwise, but may be made enforceable by the imposition of limitations thereon,
Executive agrees that the same shall be enforceable to the fullest extent permissible under the laws and public policies of the jurisdiction in which enforcement is sought. The parties hereto hereby
authorize any court of competent jurisdiction to modify or reduce the scope of such covenants to the extent necessary to make such covenants enforceable.

	(c)
	In
the event that Executive believes that the Company is in violation of a material obligation owed to Executive under this Agreement, and the Executive has given notice of such
violation to the Company requesting that the Company cure such violation, and within twenty (20) business days the Company has not undertaken steps to cure such violation or to provide
information to Executive demonstrating that the Company is not in violation of the Agreement, and as a result of such failure to cure or dispute such violation, the Executive terminates the Agreement
in accordance with Section 6(b). Executive shall not be barred from seeking employment with a competitor notwithstanding the restriction of Section 8(a); provided, however, that all
other restrictions contained in this Agreement, including, but not limited to, the covenants in Section 8(b) and in Section 9, shall remain in full force and effect.

	11.
	Enforcement Costs.    If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of
an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable
attorney's fees, court costs and all expenses even if not taxable as court costs (including, without limitation, all such fees, costs and expenses incident to appeal and other post judgment
proceedings), incurred in that action or proceeding, in addition to any other relief to which such party or parties may be entitled. Attorneys fees shall include, without limitation, paralegal fees,
investigative fees, administrative costs, sales and use taxes and all other charges billed by the attorney to the prevailing party.

	12.
	Notices.    Any and all notices necessary or desirable to be served hereunder shall be in writing and shall be:

	(a)
	Personally
delivered, or

	(b)
	Sent
by certified mail, postage prepaid, return receipt requested, or guaranteed overnight delivery by a nationally recognized express delivery company, in each case addressed to the
intended recipient at the address set forth below.

	(c)
	For
notices sent to the Company: 

First
Horizon Pharmaceutical Corporation

6195 Shiloh Road

Alpharetta, Georgia 30005

Telephone No.: (770) 442-9707

Facsimile No.: (770) 442-9594 

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	(d)
	For
notices sent to Executive 

Mr. Robert
Godfrey

1002 Brent Knoll Ct.

Woodstock, GA 30189 

Either
party hereto may amend the addresses for notices to such party hereunder by delivery of a written notice thereof served upon the other party hereto as provided herein. Any notice sent by
certified mail as provided above shall be deemed delivered on the third (3rd) business day next following the postmark date which it bears. 

	13.
	Entire Agreement.    This Agreement sets forth the entire agreement of the parties hereto with respect to the subject matter
hereof, and specifically supercedes any other agreement or understanding among the parties hereto related to the subject matter hereof. This Agreement may not be modified or revised except pursuant to
a written instrument signed by the party against whom enforcement is sought.

	14.
	Severability.    The invalidity or unenforceability of any provision hereof shall not affect the enforceability of any other
provision hereof, and except as otherwise provided in Section 10 above, any such invalid or unenforceable provision shall be severed from this Agreement.

	15.
	Waiver.    Failure to insist upon strict compliance with any of the terms or conditions hereof shall not be deemed a waiver
of such term or condition, and the waiver or relinquishment of any right or remedy hereunder at any one or more times shall not be deemed a waiver or relinquishment of such right or remedy at any
other time or times.

	16.
	Arbitration.    Any claims, disputes or controversies arising out of or relating to this Agreement between the parties (other
than those arising under Section 10) shall be submitted to arbitration by the parties. The arbitration shall be conducted in Atlanta, Georgia in accordance with the rules of the American
Arbitration Association then in existence and the following provisions: Either party may serve upon the other party by guaranteed overnight delivery by a nationally recognized express delivery
service, written demand that the dispute, specifying in detail its nature, be submitted to arbitration. Within seven business days after the service of such demand, each of the parties shall appoint
an arbitrator and serve written notice by guaranteed overnight delivery by a nationally recognized express delivery service, of such appointment upon the other party. The two arbitrators appointed
shall appoint a third arbitrator. The decision of two arbitrators in writing under oath shall be final and binding upon the parties. The arbitrators shall decide who is to pay the expenses of the
arbitration. If the two arbitrators appointed fail to agree upon a third arbitrator within ten days after their appointment, then an application may be made by either party, upon notice to the other
party, to any court of competent jurisdiction for the appointment of a third arbitrator, and any such appointment shall be binding upon both parties.

	17.
	Governing Law.    This Agreement and the rights and obligations of the parties hereto shall be governed by and construed in
accordance with the law of the State of Georgia, without regard to its conflicts of laws provisions. Subject to Section 16, each party hereto hereby (a) agrees that the state and federal
courts of the Northern District of Georgia shall have exclusive jurisdiction and venue of any litigation which may be initiated with respect to this Agreement or to enforce rights granted hereunder
and (b) consents to the personal jurisdiction and venue of such courts for such purposes.

	18.
	Benefit and Assignability.    This Agreement shall inure to the benefit of and be binding upon the Company and its successors
and assigns. The rights and obligations of Executive hereunder are personal to him, and are not subject to voluntary or involuntary alienation, transfer, delegation or assignment. 

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

	 	 	EXECUTIVE:
	

 	
 	

/s/ ROBERT D. GODFREY, JR.
 Name: Robert D. Godfrey, Jr.
	

 	
 	

FIRST HORIZON PHARMACEUTICAL CORPORATION
	

 	
 	

By:	
 	

/s/ DARRELL BORNE

	 	 	Its:	 	CFO

10

QuickLinks

Exhibit 10.6

EMPLOYMENT AGREEMENT

WITNESSETH.Exhibit
4(c).10

 

	
  Westpac

  	
   

  
	
  Australia’s First Bank

  	
   

  
	
   

  	
  Westpac Banking
  Corporation ABN 33 007 457 141

  
	
   

  	
   

  
	
   

  	
  David Morgan

  Chief Executive Officer

  Level 27, 60 Martin Place

  Sydney NSW 2000

  Telephone: (02) 9226 (2) 3001

  Facsimile: (02) 9226 (2) 4128

  Email: dmorgan@westpac.com.au

  

 

24 October 2002

 

PRIVATE &
CONFIDENTIAL

 

Ilana Atlas

Group Secretary and General Counsel

Level 27, 60 Martin Place

Sydney 032/927MP

 

Dear Ilana

 

I would like to formally
offer you a position on Westpac’s Group Executive Team on the terms set out
below and those contained in the attached Executive Employment Agreement.

 

1. DATE OF COMMENCEMENT

 

Your date of commencement
will be 11 November 2002.

 

2. POSITION AND DUTIES

 

Your role will be that of
Group Executive, People & Performance, which will report to me.

 

We will work together to
clarify and agree the scope of your responsibilities in a way that meets our
mutual objectives. Because of the dynamic nature of the industry and our
commitment to developing our key people, the scope of the role may change over
time.

 

3. REMUNERATION ARRANGEMENTS

 

Fixed Package and Employer Superannuation

 

Your Fixed Package will
be $500,000 per annum.

 

 

In addition to your Fixed
Package, Westpac will make superannuation contributions on your behalf to the Westpac
Staff Superannuation Plan (“WSSP”). The current value of these
contributions is 9% of your Fixed Package.

 

Your superannuation
benefits will continue to be provided for in the accumulation benefits section
of the WSSP. The accumulation benefit allows you to invest in a range of
investment options.

 

Flexible Choice Benefits

 

The following non-cash
benefits may be selected from your Fixed Package in lieu of cash salary. The
value of these non-cash benefits can be up to a maximum of 40% of your Fixed Package.
Any Fringe Benefits Tax (“FBT”) incurred will be deducted from your
Fixed Package.

 

Employee Superannnuation Contributions

 

You may elect to make
nominated contributions to WSSP from your Fixed Package. These contributions
(plus contributions tax) will be deducted from your Fixed Package on a pre-tax
basis.

 

Motor Vehicle

 

You will be entitled to
package two motor vehicles under a novated lease arrangement. The total running
costs (which include lease payments, petrol, insurance, FBT and registration)
will be deducted from your Fixed Package on a pre-tax basis.

 

Parking

 

If you wish to include
car parking in your package, Westpac will provide a parking space in its head
office building. The notional value, inclusive of FBT, will be deducted from
your Fixed Package on a pre-tax basis.

 

Other items

 

Other non-cash benefits,
such as child-care and personal computers, may be available to you from time to
time. As with the other non-cash benefits, the total cost of these benefits
will be deducted from your Fixed Package.

 

4. VARIABLE REMUNERATION

 

In addition to your Fixed
Package, you:

 

(a)
will be eligible to participate in the Group Executive Short Term Incentive
Plan (“STI”)
and

 

2

 

(b)
may from time to time be invited to acquire Westpac securities under Westpac’s
hurdled employee equity plans (“Long Term Incentive” or “LTI”).

 

The value of these
components varies with your individual performance and business performance, as
measured against challenging objectives to be agreed between us on
commencement. Your objectives are subject to annual review. Further information
is included in the Executive Employment Agreement attached.

 

5. OTHER MATTERS

 

Details of other
employment-related benefits, and Westpac’s arrangements regarding the
termination of your employment, are included in the attached Executive
Employment Agreement. The terms and conditions in this letter and the Executive
Employment Agreement replace all previous arrangements regarding your employment.

 

Ilana, I am looking
forward to working with you as a key member of the Executive Team. If you agree
that this letter reflects our discussions and meets your expectations in terms
of your appointment would you please sign the enclosed copy and return it to
me.

 

	
  Yours sincerely,

  
	
   

  
	
   

  
	
   

  
	
  David Morgan

  Chief Executive Officer

  

 

I, Ilana Atlas, accept
the terms and conditions outlined in this letter and the attached Executive
Employment Agreement and confirm that these terms and conditions constitute the
entire agreement between me and Westpac concerning my employment and that I
have not relied on any other representations or warranties by Westpac.

 

 

	
   

  	
   

  	
  4/November/2002

  

 

Ilana
Atlas

 

3

 

Executive Employment Agreement

 

This Agreement applies to
your employment as Westpac Group Executive, People & Performance. It should
be read in conjunction with the accompanying letter of offer.

 

1. Core Business Values

 

Our set of core values
provide the basis for how we go about our business of being a great Australian
company.

 

At Westpac our core
business values are:

 

•
Teamwork

 

•
Integrity

 

•
Performance

 

These values shape our
decisions and our relationships with all our key stakeholders including
customers, shareholders and employees.

 

2. Variable Remuneration

 

Short Term Incentive

 

You will be eligible to
be considered for an annual performance bonus under Westpac’s Value Management
Compensation Plan. The plan allows for a range of payment from between 0% and
200% of your target Short Term Incentive (“STI”) depending on performance.

 

If personal and Group
business results are on target for Westpac’s current financial year (ending  30
September 2003), your target STI is $300,000. This target is for a whole
financial year. Accordingly, after calculating your notional STI payment for
this financial year, your actual STI payment will be pro-rated in proportion to
your actual period of service over this financial year. In future years, the
target will be set annually at the commencement of the new financial year.

 

Where actual STI exceeds
target STI, it is our current policy to defer a portion of the STI payment. The
deferred portion is the amount over your target STI and the deferral period is
up to three years from the first payment date. A portion of the deferred
payment becomes due each year. Interest is applied to the balance outstanding
each year and paid annually. The terms of the deferral will be provided to you
at the time the deferral is made and, in certain circumstances, any unpaid
deferred payment (including interest) may be forfeited.

 

Westpac may, in its
discretion, choose to vary, discontinue or replace its STI plans.

 

4

 

Long Term Incentive

 

You will also be eligible
to participate in Westpac’s hurdled employee equity plans. The decision to
extend an invitation to you to participate and, if you accept the invitation,
the number of securities to be granted to you, are both at the discretion of
the Board or its authorised delegate. Any securities allocated to you will be
subject to performance hurdles which will determine the number of securities to
which, subject to the Plan rules, you will become entitled. An explanation of
the equity schemes and a summary of the plan rules will be provided to you at
the time an invitation is extended.

 

Your LTI target for FY
2003 is securities to the value of $700,000 (valued in accordance with the
Westpac valuation model as determined from time to time) with the actual number
dependent on your assessed personal contribution and potential, and Group
business results. Irrespective of this, all grants are at the sole discretion
of the Board or its authorised delegate.

 

Westpac may introduce and
substitute other security schemes at its discretion.

 

3. Annual Remuneration Review

 

Your remuneration will be
reviewed annually. This will generally be shortly after the end of the
financial year (30 September), effective 1 January of the following year.

 

4. Other Benefits

 

In addition to your Fixed
Package, Westpac will also provide you with the following benefits:

 

	
  Insurance

  	
   

  	
  Westpac will provide
  you with death and total and permanent disability insurance cover of up to
  $600,000 in the Westpac Executive Group Life Plan. This is in addition to any
  entitlement you have as a member of WSSP. Your coverage is subject to the
  policy terms and conditions.

  
	
   

  	
   

  	
   

  
	
  Health Checks

  	
   

  	
  You will be invited to
  attend an annual comprehensive health check at Westpac’s expense. This is
  provided as a benefit to you and the results of the health check will not be
  disclosed to Westpac.

  
	
   

  	
   

  	
   

  
	
  Westpac Employee
  Advantage

  	
   

  	
  You may access
  Westpac’s discretionary staff benefits under the Employee Advantage Program,
  which may include priority customer discounts on loans and other Westpac
  products as well as corporate discounts on various third party goods and
  services covering health and lifestyle benefits and other products. If you
  are not already with Westpac Private Bank, we will introduce you for your
  personal Banking requirements.

  

 

5

 

Please note that the
products and services provided under the Employee  Advantage Program may vary
from time to time.

 

5. Minimum Shareholding Guidelines

 

Westpac’s Board
Remuneration Committee has recently approved Executive Shareholding Guidelines (“Guidelines”).
Any grants made under the Proposed Equity Plans will be the subject
of the Guidelines.

 

The broad principles of
the Guidelines are as follows:

 

•                      disposal
restrictions may, at Westpac’s discretion, be placed on a proportion of any
securities to be awarded to a participant in Proposed Equity Plans until such
time as the minimum number of shares to be held under the Guidelines is met;

•                      Group
Executives will be required to hold a minimum of 60,000 Westpac shares;

•                      the
minimum number of shares will be reviewed every 3 years; and

•                      there
will be no time requirements placed upon executives for meeting the Guidelines,
but it is expected that executives will aim to increase their shareholding each
year with a view to reaching the required shareholding within a reasonable
time.

 

6. Business Expenses

 

Westpac will reimburse
you for all reasonable out of pocket expenses incurred by you on Westpac
business.

 

7. Termination

 

Termination and Notice Period

 

This Agreement and your
employment with Westpac may be terminated at any time by Westpac or you giving
twelve months’ written notice Westpac may elect to make a payment to you (based
on your Fixed Package) in lieu of part or all of this notice period.

 

During any period of
notice of termination, Westpac may direct you to perform different duties or no
duties, depending on the circumstances of your departure.

 

If you have committed
serious misconduct or a serious or persistent breach of this Agreement, Westpac
may terminate this Agreement and your employment with Westpac with immediate
effect and without any payment in lieu of notice.

 

If you are unable to
fulfil your duties because of illness or incapacity, Westpac may terminate this
Agreement and your employment with Westpac with immediate effect and without
any payment in lieu of notice.

 

If you are a director of
Westpac or any of its subsidiaries at the time that your employment with
Westpac concludes for any reason, you agree to resign from that office.

 

6

 

The termination of this
Agreement or your employment with Westpac for any reason, does not affect your
obligations, and Westpac’s rights, regarding confidential information and
intellectual property (see sections 8 and 9 of this agreement).

 

Termination and Change in Control

 

Westpac acknowledges that
particular concerns may arise in relation to your appointment conditions in the
event of a change in control of the ownership of Westpac. If Westpac terminates
your employment for reasons other than poor performance or misconduct, at any
time during a period of up to six months following a change in control, Westpac
will increase your payment in lieu of notice of termination to 1.5 times your
Fixed Package, less your Fixed Package for any period of actual notice of
termination. In these circumstances, this payment would replace any other
payment in lieu of notice.

 

For this purpose, ‘change
of control’ means where a person or corporate entity becomes the beneficial
owner of at least 35% of the voting shares of Westpac Banking Corporation on
issue.

 

Termination, incentive payments and employee securities

 

If you leave Westpac, in
most cases you will forfeit your rights to deferred incentive payments and
unvested employee securities. The relevant equity and incentive plan rules
determine treatment of  these items.

 

8. Executive Conduct

 

Your duties are such that
you will be involved in the affairs of a number of Westpac companies. For the
purposes of this Agreement, Westpac and the Westpac Group means Westpac Banking
Corporation and its related bodies corporate (as defined in the Corporations
Act 2001).

 

Requirements

 

As a member of the
executive team we require you to:

 

•                      Act
in Westpac’s best interests and use your best endeavours to promote Westpac’s
business interests

 

•                      Give
the whole of your time, ability and attention in normal working hours, or when
reasonably required outside those hours (without additional remuneration), to
the business and affairs of Westpac and any other member of the Westpac Group

 

•                      Faithfully and diligently perform
the duties and exercise the powers consistent with your position and any other
responsibilities that may be assigned to you by Westpac from time to time

 

•                      Comply
with any reasonable direction given to you by the Chief Executive Officer or
the Board

 

7

 

•                      Comply
with the Westpac Code of Conduct

 

•                      Disclose any business interests
activities or decisions which conflict, or appear to conflict, with your duties
or responsibilities to Westpac

 

•                      Refrain
from other business activities (including directorships) or employment without
the written consent of Westpac

 

•                      Refrain
from any business activity or employment outside Westpac that could involve you
having financial dealings with a member of the Westpac Group which may
establish some responsibility of that member to another party

 

•                      Not accept any payment or benefit
in money or kind from any person or entity as an inducement or reward for any
act or forbearance in connection with any matter or business transacted by or
on behalf of Westpac

 

•                      Maintain
and disclose a register of your investments that may be made available to
shareholders

 

•                      Maintain
and disclose a register of your directorships of companies not related to
Westpac

 

•                      Except
in performing your duties to Westpac, not use or disclose, either before or
after the termination of your employment and / or this Agreement, any
confidential information to which you are exposed, or which is disclosed to or
generated by you in the course  of, or in connection with your employment,
including (without limitation):

 

•                  information
concerning the business of any member of the Westpac Group or any of its
customers and any transactions in which a member of the Westpac Group or any of
its customers may be or may have been concerned or interested;

•                  strategic,
business or marketing plans of a member of the Westpac Group or any of its
customers;

•                  any
trade secret of a member of the Westpac Group or any of its customers; and

•                  customer
lists and any databases or other records of a member of the Westpac Group,

 

provided that this
information is not in the public domain, unless its reason for being public is
because you have breached an obligation to Westpac to keep the information
confidential.

 

•                      Maintain the confidentiality of
your remuneration and the terms of this Agreement as a private matter between
yourself and Westpac.

 

8

 

Policies

 

In particular you should
ensure that while you are employed with Westpac you read and at all times
observe and foster compliance with the key employment policies including the:

 

•                                          Code
of Conduct

 

•                                          Insider
Trading Policy

 

•                                          Internet
Technologies Code of Use

 

•                                          discrimination
and harassment policies

 

•                                          occupational
health and safety policies

 

•                                          media
policies

 

•                                          privacy
policies

 

These policies are
reviewed on a regular basis and amended to meet the needs of changing business
circumstances.

 

These and other policies
are located on the Westpac intranet and copies are available on request. The
Code of Conduct is attached.

 

Customers and employees

 

Your appointment to
Westpac will mean that you will come into contact with market sensitive
information concerning the members of the Westpac Group, their customers and
employees that is of significant commercial value. To protect this value, we
require that during your employment and for a period of twelve months after the
termination of your employment, you will not:

 

•             Solicit
or entice away any director or employee of a member of the Westpac Group

 

•             Directly
or indirectly employ or engage any person who has during your employment by
Westpac been a director or employee of, or independent contractor to a member
of the Westpac Group

 

•             Solicit
or entice away from a member of the Westpac Group any customer, or potential
customer, with whom you have had dealings during your employment

 

•             Attempt
to do any of the above things.

 

Your obligations in this
respect survive the termination of this Agreement and/or your employment with
Westpac.

 

9

 

9. Intellectual Property

 

Westpac’s Intellectual Property

 

As an employee of
Westpac, all work created by you during the course of your employment, is owned
by Westpac. This work may be created by you alone, or jointly with other
Westpac employees or third parties (such as consultants used by Westpac from
time to time).This work may include (but is not limited to):

 

•                                          development
of products or services;

 

•                                          development
of business processes;

 

•                                          marketing
materials;

 

•                                          registered
and unregistered trade marks and logos;

 

•                                          technology
developments;

 

•                                          all
material (including, without limitation, business cases, artwork, workflow
diagrams and reports) created by you during the course of your employment in
any form whatsoever,

 

Material

 

It may be the case that
Material is developed during the course of your employment which is ultimately
not used by Westpac. You acknowledge that, regardless of whether or not Westpac
uses that Material, it remains the intellectual property of Westpac. Except to
fulfil your duties as an employee of Westpac, you must not use any Material, or
disclose it to any third party, either during your employment with Westpac, or
after you leave Westpac.

 

You consent to all acts
or omissions of (or for the benefit of) Westpac which would otherwise
constitute a breach of any moral rights you may have in relation to any
Material or other copyright subject matter created by you which is connected
with your employment with Westpac.

 

You agree that, if
requested by Westpac, you will execute any document necessary to transfer
ownership of Material to Westpac.

 

Intellectual property of Third Parties

 

It is a condition of your
employment that you do not infringe the intellectual property rights of any
third party.

 

Previous employers

 

You must not use any
material created during the course of your employment with previous employers
during your employment with Westpac. To do so could infringe their intellectual
property rights in that material and may result in:

 

10

 

•                                          court
action preventing Westpac from using that material; and/or

 

•                                          costs
being incurred by Westpac if it must cease use of that material; and/or

 

•                                          reputational
damage to Westpac.

 

Material created for Westpac

 

It is a condition of your
employment that whenever you produce work in the course of your employment
which contains material owned by a third party, you obtain all necessary consents
and licences from that third party for use of that material.

 

10. Disclosure

 

You should be aware that
the terms of your employment including this Agreement and the accompanying
letter of offer may need to be disclosed to discharge legislative and regulatory
requirements both in Australia and overseas.

 

***********

 

11

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