Document:

WBSN-EX10.10_2012.12.31 10K

Exhibit 10.10  
  
WEBSENSE, INC.

2000 EMPLOYEE STOCK PURCHASE PLAN

As Amended by the Board July 22, 2009
As Amended by the Board January 25, 2011
As Amended and Restated by the Board January 22, 2013
As Approved by the stockholders _______, 2013

I.    PURPOSE OF THE PLAN

This Employee Stock Purchase Plan is intended to promote the interests of Websense, Inc., a Delaware corporation, by providing eligible employees with the opportunity to acquire a proprietary interest in the Corporation through participation in a payroll deduction-based employee stock purchase plan designed to qualify under Section 423 of the Code.

Capitalized terms herein shall have the meanings assigned to such terms in the attached Appendix.

II.    ADMINISTRATION OF THE PLAN

The Plan Administrator shall have full authority to interpret and construe any provision of the Plan and to adopt such rules and regulations for administering the Plan as it may deem necessary in order to comply with the requirements of Code Section 423. Decisions of the Plan Administrator shall be final and binding on all parties having an interest in the Plan.

III.    STOCK SUBJECT TO PLAN

A.    The stock purchasable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares of Common Stock purchased on the open market. The number of shares of Common Stock reserved for issuance under the Plan is 6,925,905, which consists of (i) 500,000 shares initially authorized upon adoption of the Plan by the Board on February 11, 2000, (ii) an aggregate of 4,425,905 shares authorized pursuant to automatic annual increases beginning on January 1, 2001 and ending January 1, 2010, and (iii) 2,000,000 shares authorized by the Board as of January 22, 2013. If any purchase right granted under the Plan terminates without having been exercised in full, the shares of Common Stock not purchased under such purchase right will again become available for issuance under the Plan.

B.    Should any change be made to the Common Stock by reason of any merger, consolidation, reorganization, reincorporation, stock split, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, liquidating 

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dividend, recapitalization, combination of shares, change in corporate structure or other similar equity restructuring transaction (as that term is used in Financial Accounting Standards Board Accounting Standards Codification Topic 718 or any successor thereto), exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and class of securities issuable under the Plan, (ii) the maximum number and class of securities subject to the Per Participant Purchase Date Limit described in Section VII.D. of the Plan, (iii) the maximum number and class of securities subject to the Aggregate Purchase Date Limit described in Section VII.D. of the Plan and (iv) the number and class of securities and the price per share in effect under each outstanding purchase right in order to prevent the dilution or enlargement of benefits thereunder.

IV.    OFFERING PERIODS

A.    Shares of Common Stock shall be offered for purchase under the Plan through a series of overlapping offering periods until such time as (i) the maximum number of shares of Common Stock available for issuance under the Plan shall have been purchased or (ii) the Plan shall have been sooner terminated.

B.    Each offering period shall be of such duration (not to exceed twenty-four (24) months) as determined by the Plan Administrator prior to the start date of such offering period.  The initial offering period commenced on the date the underwriting agreement for the initial public offering of Websense, Inc. was signed, and ended on the last business day in April 2002.  Offering periods shall commence at semi-annual intervals on the first business day of May and November each year over the term of the Plan. Accordingly, except for the initial offering period, two (2) separate offering periods shall commence in each calendar year the Plan remains in existence. 

C.    Each offering period shall consist of a series of one or more successive Purchase Intervals. Purchase Intervals shall run from the first business day in May to the last business day in October each year and from the first business day in November each year to the last business day in April in the following year. However, the first Purchase Interval in effect under the initial offering period commenced at the Effective Time and terminated on the last business day in October 2000.

D.    Should the Fair Market Value per share of Common Stock on any Purchase Date within an offering period be less than the Fair Market Value per share of Common Stock on the start date of that offering period, then that offering period shall automatically terminate immediately after the purchase of shares of Common Stock on such Purchase Date, and a new offering period shall commence on the next business day following such Purchase Date. The new offering period shall have a duration of twenty (24) months, unless a shorter duration is established by the Plan Administrator within five (5) business days following the start date of that offering period. All individuals participating in the terminated offering period shall automatically be transferred to the new offering period.

2.

V.    ELIGIBILITY

A.         Each individual who is an Eligible Employee on the start date of any offering period under the Plan may enter that offering period on such start date. 

B.    To participate in the Plan for a particular offering period, the Eligible Employee must complete the enrollment forms prescribed by the Plan Administrator (including a stock purchase agreement and a payroll deduction authorization) and file such forms with the Plan Administrator (or its designate) on or before the start date of that offering period in accordance with the terms prescribed by the Plan Administrator.  

VI.    PAYROLL DEDUCTIONS

A.    The payroll deduction authorized by the Participant for purposes of acquiring shares of Common Stock during an offering period may be any multiple of one percent (1%) of the Cash Earnings paid to the Participant during each Purchase Interval within that offering period, up to a maximum of fifteen percent (15%). The deduction rate so authorized shall continue in effect throughout the offering period, except to the extent such rate is changed in accordance with the following guidelines:

(i)    The Participant may, at any time during the offering period, reduce his or her rate of payroll deduction to become effective as soon as possible after filing the appropriate form with the Plan Administrator. The Participant may not, however, effect more than one (1) such reduction per Purchase Interval.  The Plan Administrator may impose a deadline before any Purchase Date for effecting such reduction.

(ii)    The Participant may, prior to the commencement of any new Purchase Interval within the offering period, increase the rate of his or her payroll deduction by filing the appropriate form with the Plan Administrator. The new rate (which may not exceed the fifteen percent (15%) maximum) shall become effective on the start date of the first Purchase Interval following the filing of such form.  The Plan Administrator may impose a deadline before the start date of a Purchase Interval for effecting such increase.

B.    Payroll deductions shall begin on the first pay day administratively feasible following the start of the offering period in which the Participant in enrolled and shall (unless sooner terminated by the Participant) continue through the pay day ending with or immediately prior to the last day of that offering period. The amounts so collected shall be credited to the Participant's book account under the Plan, but no interest shall be paid on the balance from time to time outstanding in such account. The amounts collected from the Participant shall not be required to be held in any segregated account or trust fund and may be commingled with the general assets of the Corporation and used for general corporate purposes.

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C.    Payroll deductions shall automatically cease upon the termination of the Participant's purchase right in accordance with the provisions of the Plan.

D.    The Participant's acquisition of Common Stock under the Plan on any Purchase Date shall neither limit nor require the Participant's acquisition of Common Stock on any subsequent Purchase Date, whether within the same or a different offering period.

VII.    PURCHASE RIGHTS

A.    GRANT OF PURCHASE RIGHTS. A Participant shall be granted a separate purchase right for each offering period in which he or she participates. The purchase right shall be granted on the start date of the offering period and shall provide the Participant with the right to purchase shares of Common Stock, in a series of successive installments during that offering period, upon the terms set forth below. The Participant shall execute a stock purchase agreement embodying such terms and such other provisions (not inconsistent with the Plan) as the Plan Administrator may deem advisable.

Under no circumstances shall purchase rights be granted under the Plan to any Eligible Employee if such individual would, immediately after the grant, own (within the meaning of Code Section 424(d)) or hold outstanding options or other rights to purchase, stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Corporation or any Corporate Affiliate.

B.    EXERCISE OF THE PURCHASE RIGHT. Each purchase right shall be automatically exercised in installments on each successive Purchase Date within the offering period, and shares of Common Stock shall accordingly be purchased on behalf of each Participant on each such Purchase Date. The purchase shall be effected by applying the Participant's payroll deductions for the Purchase Interval ending on such Purchase Date to the purchase of whole shares of Common Stock at the purchase price in effect for the Participant for that Purchase Date.

C.    PURCHASE PRICE. The purchase price per share at which Common Stock will be purchased on the Participant's behalf on each Purchase Date within the particular offering period in which he or she is participating shall be equal to eighty-five percent (85%) of the lower of (i) the Fair Market Value per share of Common Stock on the start date of that offering period or (ii) the Fair Market Value per share of Common Stock on that Purchase Date.

D.    NUMBER OF PURCHASABLE SHARES. The number of shares of Common Stock purchasable by a Participant on each Purchase Date during the offering period shall be the number of whole shares obtained by dividing the amount collected from the Participant through payroll deductions during the Purchase Interval ending with that Purchase Date by the purchase price in effect for the Participant for that Purchase Date. However, the maximum number of shares of Common Stock purchasable per 

4.

Participant on any one Purchase Date (with respect to all offering periods in which such Participant is enrolled including such Purchase Date) shall not exceed 2,500 shares, subject to periodic adjustments in the event of certain changes in the Corporation's capitalization (the “Per Participant Purchase Date Limit”). However, the Plan Administrator shall have the discretionary authority, exercisable at any time, to increase or decrease the Per Participant Purchase Date Limit, to become effective no earlier than the next offering period beginning on or after such exercise of authority. In addition, the maximum number of shares of Common Stock purchasable in total by all Participants in the Plan on any one Purchase Date (with respect to all offering periods including such Purchase Date) shall not exceed 500,000 shares, subject to periodic adjustments in the event of certain changes in the Corporation's capitalization (the “Aggregate Purchase Date Limit”). However, the Plan Administrator shall have the discretionary authority, exercisable prior to any Purchase Date, to increase or decrease the Aggregate Purchase Date Limit, to become effective for such Purchase Date or for any Purchase Date thereafter.  

E.    EXCESS PAYROLL DEDUCTIONS. Any payroll deductions not applied to the purchase of shares of Common Stock on any Purchase Date because they are not sufficient to purchase a whole share of Common Stock shall be held for the purchase of Common Stock on the next Purchase Date. However, any payroll deductions not applied to the purchase of Common Stock by reason of the Per Participant Purchase Date Limit, the Aggregate Purchase Date Limit or the limitation on the number of shares issuable under the Plan shall be promptly refunded. 

F.    TERMINATION OF PURCHASE RIGHT. The following provisions shall govern the termination of outstanding purchase rights:

(i)    A Participant may, at any time prior to the next scheduled Purchase Date in the offering period, terminate his or her outstanding purchase right by filing the appropriate form with the Plan Administrator (or its designate), and no further payroll deductions shall be collected from the Participant with respect to the terminated purchase right. The Plan Administrator may impose a deadline before any Purchase Date for effecting such termination.  Any payroll deductions collected during the Purchase Interval in which such termination occurs shall, at the Participant's election, be immediately refunded or held for the purchase of shares on the next Purchase Date. If no such election is made at the time such purchase right is terminated, then the payroll deductions collected with respect to the terminated right shall be refunded as soon as possible.

(ii)    The termination of such purchase right shall be irrevocable, and the Participant may not subsequently rejoin the offering period for which the terminated purchase right was granted. In order to resume participation in any subsequent offering period, such individual must re-enroll in the Plan (by making a timely filing of the prescribed enrollment forms) on or before the start date of that offering period.

5.

(iii)    Should the Participant cease to remain an Eligible Employee  for any reason (including death, disability or change in status) while  his or her purchase right remains outstanding, then that purchase  right shall immediately terminate, and all of the Participant's payroll deductions for the Purchase Interval in which the purchase  right so terminates shall be immediately refunded. However, should the Participant cease to remain in active service by reason of an approved unpaid leave of absence, then the Participant shall have the right,  exercisable up until the last business day of the Purchase Interval in  which such leave commences, to (a) withdraw all the payroll deductions collected to date on his or her behalf for that Purchase Interval or  (b) have such funds held for the purchase of shares on his or her behalf on the next scheduled Purchase Date. In no event, however, shall any further payroll deductions be collected on the Participant's behalf during such leave. Upon the Participant's return to active service (x) within ninety (90) days following the commencement of such leave or (y) prior to the expiration of any longer period for which such Participant's right to reemployment with the Corporation is guaranteed by statute or contract, his or her payroll deductions under the Plan shall automatically resume at the rate in effect at the time the leave began, unless the Participant withdraws from the Plan prior to his or her return. An individual who returns to active employment following a leave of absence that exceeds in duration the applicable (x) or (y) time period will be treated as a new Employee for purposes of subsequent participation in the Plan and must accordingly re-enroll in the Plan (by making a timely filing of the prescribed enrollment forms) on or before the start date of any subsequent offering period in which he or she wishes to participate.

G.    CHANGE IN CONTROL. Each outstanding purchase right shall automatically be exercised, immediately prior to the effective date of any Change in Control, by applying the payroll deductions of each Participant for the Purchase Interval in which such Change in Control occurs to the purchase of whole shares of Common Stock at a purchase price per share equal to eighty-five percent (85%) of the lower of (i) the Fair Market Value per share of Common Stock on the start date of the offering period in which the Participant is enrolled at the time of such Change in Control (ii) the Fair Market Value per share of Common Stock immediately prior to the effective date of such Change in Control. However, the Per Participant Purchase Date Limit shall continue to apply to any such purchase, but not the Aggregate Purchase Date Limit.

The Corporation shall use its best efforts to provide at least ten (10) days' prior written notice of the occurrence of any Change in Control, and Participants shall, following the receipt of such notice, have the right to terminate their outstanding purchase rights prior to the effective date of the Change in Control.

H.    PRORATION OF PURCHASE RIGHTS. Should the total number of shares of Common Stock to be purchased pursuant to outstanding purchase rights on any particular date exceed the number of shares then available for issuance under the Plan or exceed the Per Participant Purchase Date Limit or Aggregate Purchase Date Limit, the Plan Administrator shall make a pro-rata allocation of the available shares on 

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a uniform and nondiscriminatory basis, and the payroll deductions of each Participant, to the extent in excess of the aggregate purchase price payable for the Common Stock pro-rated to such individual, shall be refunded.

I.    ASSIGNABILITY.  The purchase right shall be exercisable only by the Participant and shall not be assignable or transferable by the Participant.

J.    STOCKHOLDER RIGHTS. A Participant shall have no stockholder rights with respect to the shares subject to his or her outstanding purchase right until the shares are purchased on the Participant's behalf in accordance with the provisions of the Plan and the Participant has become a holder of record of the purchased shares.

VIII.    ACCRUAL LIMITATIONS

A.    No Participant shall be entitled to accrue rights to acquire Common Stock pursuant to any purchase right outstanding under this Plan if and to the extent such accrual, when aggregated with (i) rights to purchase Common Stock accrued under any other purchase right granted under this Plan and (ii) similar rights accrued under other employee stock purchase plans  (within the meaning of Code Section 423)) of the Corporation or any Corporate Affiliate, would otherwise permit such Participant to purchase more than Twenty-Five Thousand Dollars ($25,000.00) worth of stock of the Corporation or any Corporate Affiliate (determined on the basis of the Fair Market Value per share on the date or dates such rights are granted) for each calendar year such rights are at any time outstanding.

B.    For purposes of applying such accrual limitations to the purchase rights granted under the Plan, the following provisions shall be in effect:

(i)    The right to acquire Common Stock under each outstanding  purchase right shall accrue in a series of installments on each  successive Purchase Date during the offering period on which such  right remains outstanding.

(ii)    No right to acquire Common Stock under any outstanding  purchase right shall accrue to the extent the Participant has already  accrued in the same calendar year the right to acquire Common Stock  under one or more other purchase rights at a rate equal to Twenty-Five Thousand Dollars ($25,000.00) worth of Common Stock (determined on the basis of the Fair Market Value per share on the date or dates of grant) for each calendar year such rights were at any time outstanding.

C.    If by reason of such accrual limitations, any purchase right of a Participant does not accrue for a particular Purchase Interval, then the payroll deductions that the Participant made during that Purchase Interval with respect to such purchase right shall be promptly refunded.

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D.    In the event there is any conflict between the provisions of this Article and one or more provisions of the Plan or any instrument issued thereunder, the provisions of this Article shall be controlling.

IX.    EFFECTIVE DATE AND TERM OF THE PLAN

A.    The Plan was adopted by the Board on February 11, 2000, and became effective at the Effective Time. 

B.    Unless sooner terminated by the Board, the Plan shall terminate upon the earlier of (i) the date on which all shares available for issuance under the Plan shall have been sold pursuant to purchase rights exercised under the Plan or (ii) the date on which all purchase rights are exercised in connection with a Change in Control.  No further purchase rights shall be granted or exercised, and no further payroll deductions shall be collected, under the Plan following such termination.

X.    AMENDMENT OF THE PLAN

A.    The Board may alter, amend, suspend or terminate the Plan at any time to become effective as determined by the Board. However, the Plan may be amended or terminated immediately upon Board action, if and to the extent necessary to assure that the Corporation will not recognize, for financial reporting purposes, any compensation expense in connection with the shares of Common Stock offered for purchase under the Plan, should the financial accounting rules applicable to the Plan at the Effective Time be subsequently revised so as to require the Corporation to recognize compensation expense in the absence of such amendment or termination.

B.    In no event may the Board effect any of the following amendments or revisions to the Plan without the approval of the Corporation's stockholders: (i) increase the number of shares of Common Stock issuable under the Plan, except for permissible adjustments in the event of certain changes in the Corporation's capitalization, (ii) alter the purchase price formula so as to reduce the purchase price payable for the shares of Common Stock purchasable under the Plan or (iii) modify the eligibility requirements for participation in the Plan.

XI.    GENERAL PROVISIONS

A.    All costs and expenses incurred in the administration of the Plan shall be paid by the Corporation; however, each Plan Participant shall bear all costs and expenses incurred by such individual in the sale or other disposition of any shares purchased under the Plan. 

B.    Nothing in the Plan shall confer upon the Participant any right to continue in the employ of the Corporation or any Corporate Affiliate for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Corporate Affiliate employing such person) or of the Participant, which rights are 

8.

hereby expressly reserved by each, to terminate such person's employment at any time for any reason, with or without cause.

C.    References in the Plan to a “business day” shall mean any day on which the exchange(s) or market(s) on which the shares of Common Stock are listed, including but not limited to the NYSE, Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or any successors thereto, is open for trading.

D.    The provisions of the Plan shall be governed by the laws of the State of New York without resort to that State's conflict-of-laws rules.

9.

APPENDIX

The following definitions shall be in effect under the Plan:

A.     BOARD shall mean the Corporation's Board of Directors.

B.     CASH EARNINGS shall mean (i) the regular base salary and commission payments paid to a Participant by one or more Participating Companies during such individual's period of participation in one or more offering periods under the Plan. Such Cash Earnings shall be calculated before deduction of (A) any income or employment tax withholdings or (B) any contributions made by the Participant to any Code Section 401(k) salary deferral plan or any Code Section 125 cafeteria benefit program now or hereafter established by the Corporation or any Corporate Affiliate. However, Cash Earnings shall NOT include any contributions made by the Corporation or any Corporate Affiliate on the Participant's behalf to any employee benefit or welfare plan now or hereafter established (other than Code Section 401(k) or Code Section 125 contributions deducted from such Cash Earnings).

C.    CHANGE IN CONTROL shall mean a change in ownership of the Corporation pursuant to any of the following transactions:

(i)     a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or

(ii)     the sale, transfer or other disposition of all or substantially all of the assets of the Corporation in complete liquidation or dissolution of the Corporation, or

(iii)     the acquisition, directly or indirectly, by a person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by or is under common control with the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's stockholders.

D.    CODE shall mean the Internal Revenue Code of 1986, as amended, including any applicable regulations and guidance thereunder.

E.    COMMON STOCK shall mean the Corporation's common stock.

A-1.

F.     CORPORATE AFFILIATE shall mean any parent or subsidiary corporation of the Corporation (as determined in accordance with Code Section 424), whether now existing or subsequently established.

G.     CORPORATION shall mean Websense, Inc., a Delaware corporation, and any corporate successor to all or substantially all of the assets or voting stock of Websense, Inc. that shall by appropriate action adopt the Plan.

H.     EFFECTIVE TIME shall mean the time at which the Underwriting Agreement is executed and the Common Stock priced for the initial public offering of such Common Stock. Any Corporate Affiliate that becomes a Participating Corporation after such Effective Time shall designate a subsequent Effective Time with respect to its employee-Participants.

I.     ELIGIBLE EMPLOYEE shall mean any person who is employed by a Participating Corporation on a basis under which he or she is regularly expected to render more than twenty (20) hours of service per week for more than five (5) months per calendar year for earnings considered wages under Code Section 3401 (a).  Employees in jurisdictions outside of the United States will not be “eligible employees” under a particular offering period if, as of the start of the offering period, the grant of purchase rights under such offering period would not be in compliance with the applicable laws, regulations or requirements of any jurisdiction in which the employee resides or is employed, as determined in the sole discretion of the Plan Administrator.

J.     FAIR MARKET VALUE per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

(i)    If the Common Stock is listed on any established stock exchange or traded on any established market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in Common Stock) on the date of determination, as reported in such source as the Plan Administrator deems reliable.  If there is no closing selling price for the Common Stock on the date of determination, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

(ii)    In the absence of such markets for the Common Stock, the Fair Market Value will be determined by the Plan Administrator in good faith in compliance with applicable laws.

(iii)    For purposes of the initial offering period that began at the Effective Time, the Fair Market Value was deemed to be equal to the price per share at which the Common Stock was sold in the initial public offering pursuant to the Underwriting Agreement.

A-2.

K.    1933 ACT shall mean the Securities Act of 1933, as amended.

L.    PARTICIPANT shall mean any Eligible Employee of a Participating Corporation who is actively participating in the Plan.

M.    PARTICIPATING CORPORATION shall mean the Corporation and such Corporate Affiliate(s) as may be authorized from time to time by the Board to extend the benefits of the Plan to their Eligible Employees. The Participating Corporations in the Plan shall be designated by the Board from time to time. Offering periods for Eligible Employees of each Corporate Affiliate will be treated as separate offering periods under the Plan. 

N.    PLAN shall mean the Corporation's 2000 Employee Stock Purchase Plan, as set forth in this document.

O.    PLAN ADMINISTRATOR shall mean the committee of two (2) or more Board members appointed by the Board to administer the Plan.

P.    PURCHASE DATE shall mean the last business day of each Purchase Interval. The initial Purchase Date was October 31, 2000.

Q.    PURCHASE INTERVAL shall mean each successive six (6)-month period within the offering period at the end of which there shall be purchased shares of Common Stock on behalf of each Participant.

R.    UNDERWRITING AGREEMENT shall mean the agreement between the Corporation and the underwriter or underwriters managing the initial public offering of the Common Stock.

A-3.Ex10.32.1-VentivAmendment

Exhibit 10.32.1

The confidential portions of this exhibit have been filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities and Exchange Act of 1934, as amended.
REDACTED PORTIONS OF THIS EXHIBIT ARE MARKED BY AN ***.

FIRST AMENDMENT TO SALES AND PROMOTIONAL SERVICES AGREEMENT

This First Amendment (“First Amendment") to the Sales and Promotional Services Agreement dated December 30, 2011 (the “Agreement”), by and between ENDO PHARMACEUTICALS INC., a Delaware corporation ("CLIENT") and VENTIV COMMERCIAL SERVICES, LLC, a New Jersey limited liability company ("VCS"), is entered into as of September 21, 2012 (the “Effective Date”).  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

WITNESSETH:

WHEREAS, pursuant to the Agreement, Article III, Section 3.2(b) allows for CLIENT in its sole discretion to increase or decrease the number of Sales Representatives and/or District Managers in the VCS Field Force by up to *** (***%) percent;

WHEREAS, CLIENT desires to decrease the VCS Field Force by *** (***%) percent; and

WHEREAS, the Parties desire to amend the Agreement to reflect certain modifications (defined below) as set forth herein.

NOW THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the Parties hereto agree as follows:

1. Article III, Section 3.2(b) of the Agreement is amended to provide that the Initial Total Headcount shall consist of 170 Sales Representatives, 17 District Managers, one Project Manager, one VCS Trainer and one National Sales Director.

2.Schedule B of the Agreement shall be deleted in its entirety and replaced and restated with Schedule B attached hereto and made a part hereof.

3.Schedule B-Y to the Agreement shall be deleted in its entirety and replaced and restated with Schedule B-Y attached hereto and made a part hereof.

4.The Parties agree that the implementation of Sections 1 of this First Amendment shall commence on October 5, 2012 and Sections 2 and 3 of this First Amendment shall commence on October 1, 2012.

5.As a result of the changes set forth in Section 1 of this First Amendment, VCS shall be required to reduce the number of Fleet Vehicles provided under the Agreement by approximately *** (***) vehicles.  Sections 3.3(f), 3.3(g), and 11.4 of the Agreement shall apply to VCS’s disposal of these Fleet Vehicles.

6.All terms and conditions of the Agreement not specifically amended herein shall remain unchanged and in full force and effect.    

7. This First Amendment may be executed in multiple counterparts, each of which shall be deemed an original, but all of which shall constitute the same agreement.

[Signature page to follow]

IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed by their duly authorized representatives.

	
					
	ENDO PHARMACEUTICALS INC.
	 
	VENTIV COMMERCIAL SERVICES, LLC

	 
	 
	 
	 
	 

	By:
	/s/ David P. Holveck
	 
	By:
	/s/ Paul Mignon

	 
	 
	 
	 
	 

	Name:
	David P. Holveck
	 
	Name:
	Paul Mignon

	 
	 
	 
	 
	 

	Title
	President and CEO
	 
	Title
	President, Selling Solutions

AMENDED AND RESTATED

Schedule B

COMPENSATION - FEES PAYABLE TO VCS
I.  Reconciled Pass-through Expenses
VCS shall invoice CLIENT monthly for all fees and costs payable by CLIENT for Services as set forth in the Budget included as Schedule B-Y, and shall bill to CLIENT Reconciled Pass-through Expenses, which shall include:
		
	-
	Fuel

		
	-
	VCS Sales Representative and District Manager salaries for those Sales Representatives and District Managers actually employed by VCS for the applicable month

		
	-
	VCS Field Force travel and cell phone expenses (only to the extent used in the performance of duties pursuant to this Agreement) and other expenses captured on routine expense reports)

		
	-
	District Manager Bonuses (plus applicable employer portion of taxes)

		
	-
	Sales Representative Bonuses (plus applicable employer portion of taxes)

		
	-
	Sales Representative travel subject to compliance with Client travel policies as amended from time to time

		
	-
	Direct Marketing Expense (DME) Funds in accordance with specified budget

		
	-
	Ordinary and reasonable office expenses

		
	-
	Sample Management Services and Storage

		
	-
	Backfill Recruiting

		
	-
	Costs for non-lease expenses for Assigned Vehicles (before conversion to open ended leases)

Reconciled Pass-through Expenses are subject to the provisions of Section 4.3 of the Agreement.

II.  Fixed Management Fee and At-Risk Management Fee
For each full Agreement Year during the Term, VCS shall be paid the Fixed Management Fee of $*** for the 4th quarter of 2012 and $*** (annually) for 2013 and be eligible to earn the At-Risk Management Fee.  For the Second Extension and any other partial Agreement Year during the Term, VCS shall be paid *** (***) of the Fixed Management Fee and the *** portion of any achieved At-Risk Management Fee for each month (***) during such Second Extension and any other partial Agreement Year during the Term.  All fees referenced in this Schedule B are provided on an annualized basis unless otherwise specified. 
The annual At-Risk Management Fee is made up of three separate components:
1.    $*** for the 4th quarter of 2012 and $*** for 2013, which ***, and shall be paid to VCS *** as further described below (the “Rx Sales Fee”);
2.    $*** for the 4th quarter of 2012 and $*** (annually) for 2013, which ***:  (a) ***; and (b) shall be paid to VCS *** (***).
3.    $*** for the 4th quarter of 2012 and $*** (annually) for 2013, which ***:  (a) ***; and (b) shall be paid to VCS *** (***).
Rx Sales Fee
Rx Sales goals will be ***.  In addition, ***.
***:
Table 1
	
			
	***
	***%
	*** % ***

	***
	***%
	*** % ***

	***
	***%
	*** % ***

	***
	***%
	*** % ***

	***
	***%
	*** % ***

	***
	***%
	*** % ***

	***
	***%
	*** % ***

VCS’ attainment of the Rx Sales goals will be***:  (1) *** (ii) ***.
***:
Table 2
	
		
	***
	***

	***%
	***%

	***% ***%
	***%

	***% ***%
	***%

	***% ***%
	***%

	***% ***%
	***%

	***% ***%
	***%

	***%
	***%

An example of the Rx Sales Fee payable to VCS *** is as follows:

	
									
	***
	***
	***
	***
	***
	***
	***
	***
	***

	 
	 
	 
	 
	 
	 
	 

	***
	***%
	$***
	$***
	$***
	$***
	$***
	$***
	$***

	***
	***%
	$***
	$***
	$***
	$***
	$***
	$***
	$***

	***
	***%
	$***
	$***
	$***
	$***
	$***
	$***
	$***

	***
	***%
	$***
	$***
	$***
	$***
	$***
	$***
	$***

	***
	***%
	$***
	$***
	$***
	$***
	$***
	$***
	$***

	***
	***%
	$***
	$***
	$***
	$***
	$***
	$***
	$***

*** 
***
VCS shall receive the quarterly portion of the *** ($***) based on *** (1) ***, or (2) *** payable to VCS on a *** is as follows:
*** Table
	
				
	Column A
	Column B
	Column C
	Column D

	***
	***
	***
	***

	***
	***
	***
	***

	***
	***
	***
	***

	***
	***
	***
	***

	***
	***
	***
	***

	***
	***
	***
	***

	***
	***%
	$***
	$***

For purposes of clarification: (1) ***; and (2) the above table is based on ***.  

Active Territory Fee
For each calendar quarter, VCS shall be responsible to ensure that the ***.
VCS shall receive the quarterly portion of the ($***) only *** (i.e., if *** .

AMENDED AND RESTATED
Schedule B-Y

	
							
	inVentiv Commercial Services

	Proposal for Endo: 170 Full Time Professionals, 17 District Managers, PD, PM, & Rx Sampling

	 
	 
	58 Reps
	170Reps
	 
	 
	 

	 
	 
	Oct1-5
	Q4
	Total Q4
	 
	2013

	Amounts to be Reconciled (from fixed fees)
	 
	 
	 
	 
	 
	 

	Rep Salary
	 
	 ***
	 ***
	 ***
	 
	 ***

	Rep Parking / Tolls
	 
	 ***
	 ***
	 ***
	 
	 ***

	Rep Office Expense
	 
	 ***
	 ***
	 ***
	 
	 ***

	Rep Phone / Internet
	 
	 ***
	 ***
	 ***
	 
	 ***

	District Manager Salary
	 
	 ***
	 ***
	 ***
	 
	 ***

	District Manager Travel
	 
	 ***
	 ***
	 ***
	 
	 ***

	District Manager Office Expense
	 
	 ***
	 ***
	 ***
	 
	 ***

	District Manager Phone / Internet
	 
	 ***
	 ***
	 ***
	 
	 ***

	Sample Storage
	 
	 ***
	 ***
	 ***
	 
	 ***

	Estimate for non lease expenses for Lease Assumed Vehicles (Before conversion to Opne End Leases)
	 
	 
	 ***
	 ***
	 
	 ***

	Fuel for Reps & DM's
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 ***
	 
	 

	At Risk Management Fee
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 ***
	 
	 

	Backfill Recruiting
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 ***
	 
	 

	Interview Travel
	 
	 ***
	 ***
	 ***
	 
	 ***

	District Manager Bonus
	 
	 ***
	 ***
	 ***
	 
	 ***

	Full-Time Representative Bonus
	 
	 ***
	 ***
	 ***
	 
	 ***

	Full-Time Representative Travel
	 
	 
	 ***
	 ***
	 
	 ***

	DME Funds
	 
	 ***
	 ***
	 ***
	 
	 ***

	3rd Party Data Acquisition
	 
	 ***
	 ***
	 ***
	 
	 ***

	National Training Meeting & POA's
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 
	 
	 

	Amounts Reconciled  and Pass Through Total
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 
	 
	 

	Amounts not to be Reconciled (from fixed fees)
	 
	 
	 
	 
	 
	 

	Total Benefits
	 
	 ***
	 ***
	 ***
	 
	 ***

	Total Taxes
	 
	 ***
	 ***
	 ***
	 
	 ***

	Lease Expense for all Fleet Vehicles
	 
	 ***
	 ***
	 ***
	 
	 ***

	Project Manager
	 
	 ***
	 ***
	 ***
	 
	 ***

	Project Director
	 
	 ***
	 ***
	 ***
	 
	 ***

	Dedicated Trainer
	 
	 ***
	 ***
	 ***
	 
	 ***

	Sample Management Services
	 
	 ***
	 ***
	 ***
	 
	 ***

	IC Management & Reporting
	 
	 ***
	 ***
	 ***
	 
	 ***

	Total Administrative Fee
	 
	 ***
	 ***
	 ***
	 
	 ***

	Total Fixed Management Fee
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 
	 
	 

	Total Fixed Monthly Fees
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 
	 
	 

	Total Fixed Fee, At Risk Management Fee, Backfill & Passthrough Estimate
	 
	 ***
	 ***
	 ***
	 
	 ***

	 
	 
	 
	 
	 
	 
	 

	 Note ***
	 
	 
	 
	 
	 
	 

	a) ***
	 
	 
	 
	 
	 
	 

	b) ***
	 
	 
	 
	 
	 
	 

	c) ***

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]