Document:

Exhibit 4.1

Exhibit 4.1

AMENDMENT NO. 4 TO RIGHTS AGREEMENT

     This Amendment No. 4 (this “Amendment”) to Rights Agreement, effective as of December
3, 1998, as amended on July 21, 2000, December 14, 2005 and March 1, 2006 (the “Rights
Agreement”), is effective as of May 12, 2008, by and between La Jolla Pharmaceutical Company, a
Delaware corporation (the “Corporation”) and American Stock Transfer & Trust Company, a New
York corporation (the “Rights Agent”). Capitalized terms used herein but not defined herein
shall have their defined meanings set forth in the Rights Agreement.

     WHEREAS, the Corporation and the Rights Agent entered into the Rights Agreement, effective as
of December 3, 1998;

     WHEREAS, the Rights Agreement was amended, as of July 21, 2000, to amend the terms of the
Rights Agreement to eliminate the concept and powers of the Continuing Directors and to amend the
definition of “Acquiring Person” to permit the State of Wisconsin Investment Board to invest up to
a level of just under 20% beneficial ownership without triggering the Rights Agreement;

     WHEREAS, the Rights Agreement was further amended as of December 14, 2005, to amend the
definition of “Acquiring Person” to permit Essex Woodlands Health Ventures Fund VI, L.P. to invest
up to a level of just under 29% and to permit Frazier Healthcare V, LP to invest up to a level of
just under 19% beneficial ownership without triggering the Rights Agreement;

     WHEREAS, the Rights Agreement was further amended as of March 1, 2006, to amend the definition
of “Acquiring Person” to permit Alejandro Gonzalez to invest up to a level of just under 19%
beneficial ownership without triggering the Rights Agreement; and

     WHEREAS, the parties hereto wish to amend the Rights Agreement to further amend the definition
of “Acquiring Person” to permit Essex Woodlands Health Ventures and its Affiliates and Associates
including, without limitation, Essex Woodlands Health Ventures Fund VI, L.P. and Essex Woodlands
Health Ventures Fund VII, L.P., to invest up to a level of just under 37.2% beneficial ownership
without triggering the Rights Agreement.

     NOW, THEREFORE, the parties hereby agree as follows:

	 	1.	 	Section 1(a) is hereby deleted in its entirety and the following is inserted in
lieu thereof:

	 	 	 	“(a) “Acquiring Person” shall mean any Person who or which,
together with all Affiliates and Associates of such Person, without
the prior approval of the Board of Directors of the Corporation,
shall become, after the date hereof, the Beneficial Owner of 15% or
more (or, in the case of State of Wisconsin Investment Board, 20% or
more; or, in the case of Essex Woodlands Health Ventures and its
Affiliates and Associates including, without limitation, Essex
Woodlands Health Ventures Fund VI, L.P. and Essex Woodlands Health
Ventures Fund VII, L.P., 37.2% or more; or, in the case of Frazier
Healthcare V, LP, 19% or more; or, in the case of Alejandro
Gonzalez, 19% or more) of the shares of Common Stock then
outstanding, but shall not include an Exempt Person, or a Person who
or which, together with its Affiliates and Associates, shall become
the Beneficial Owner of 15% or more (or, in the case of State of
Wisconsin Investment Board, 20% or more; or, in the case of Essex
Woodlands Health Ventures and its Affiliates and Associates
including, without limitation, Essex Woodlands Health Ventures Fund
VI, L.P. and Essex Woodlands Health Ventures Fund VII, L.P., 37.2%
or more; or, in the case of Frazier Healthcare V, LP, 19% or more;
or, in the case of Alejandro Gonzalez, 19% or more) of the shares of
Common Stock then outstanding solely as a result of a reduction in
the number of shares of Common Stock outstanding due to a repurchase
of Common Stock by the Corporation, unless such Person shall
thereafter purchase or otherwise become the Beneficial Owner of
additional shares of Common

 

 

	 	 	 	Stock representing 1% of the shares of Common Stock then
outstanding. Notwithstanding the foregoing, if the Board of
Directors of the Corporation determines in good faith that a Person
who would otherwise be an “Acquiring Person,” as defined pursuant to
the foregoing provisions of this paragraph (a), has become such
inadvertently, and such Person divests as promptly as practicable a
sufficient number of shares of Common Stock so that such Person
would no longer be an “Acquiring Person,” as defined pursuant to the
foregoing provisions of this paragraph (a), then such Person shall
not be deemed to be an “Acquiring Person” for any purposes of this
Agreement. Furthermore, notwithstanding the foregoing, no
stockholder of the Corporation beneficially owning as of the Rights
Dividend Declaration Date (together with such stockholder’s
Affiliates and Associates) 15% or more of the shares of Common Stock
outstanding as of the date of this Agreement (an “Original 15%
Stockholder”) shall be an Acquiring Person unless and until such
Original 15% Stockholder or any of such stockholder’s Associates or
Affiliates shall, after the Rights Declaration Date, acquire any
additional shares of Common Stock without the prior approval of the
Board of Directors of the Corporation (set forth in a resolution of
the Board), at which point such stockholder shall be an Acquiring
Person if, immediately following and giving effect to such
acquisition, such Original 15% Stockholder, together with all such
stockholder’s Affiliates and Associates, shall be the Beneficial
Owner of 15% or more of the shares of Common Stock then
outstanding.”

	 	2.	 	Section 3(a) is hereby deleted in its entirety and the following is inserted in
lieu thereof:

	 	 	 	“(a) Until the earlier of (i) the Close of Business on the tenth
(10th) day after the Stock Acquisition Date (or, if the tenth (10th)
day after the Stock Acquisition Date occurs before the Record Date,
the Close of Business on the Record Date), or (ii) the Close of
Business on the tenth (10th) day after the date that a tender or
exchange offer by any Person (other than an Exempt Person) is first
published or sent or given within the meaning of Rule 14d-2(a) of
the General Rules and Regulations under the Exchange Act, if, upon
consummation thereof, such Person, together with its Affiliates and
Associates, would be the Beneficial Owner of 15% or more of the
shares of Common Stock then outstanding, or, in the case of the
State of Wisconsin Investment Board, Essex Woodlands Health
Ventures, Frazier Healthcare V, LP, and Alejandro Gonzalez, if State
of Wisconsin Investment Board, together with its Affiliates and
Associates, would be the Beneficial Owner of 20%, Essex Woodlands
Health Ventures, together with its Affiliates and Associates
including, without limitation, Essex Woodlands Health Ventures Fund
VI, L.P. and Essex Woodlands Health Ventures Fund VII, L.P., would
be the Beneficial Owner of 37.2%, or Frazier Healthcare V, LP,
together with its Affiliates and Associates, would be the Beneficial
Owner of 19%, or Alejandro Gonzalez would be the Beneficial Owner of
19%, or more of the shares of Common Stock then outstanding
(irrespective of whether any shares are actually purchased pursuant
to any such offer) (each of the time periods in (i) and (ii) being
subject to extension as provided in Section 27 and the
earliest of (i) and (ii) being herein referred to as the
“Distribution Date”), (x) the Rights will be evidenced
(subject to the provisions of paragraph (b) of this
Section 3 ) by the certificates for the Common Stock
registered in the names of the holders of the Common Stock (which
certificates for Common Stock shall be deemed also to be
certificates for Rights) and not by separate certificates, and (y)
each Right will be transferable only in connection with the transfer
of the underlying share of Common Stock (including a transfer to the
Corporation). As soon as practicable after the Distribution Date,
the Rights Agent will send to each record holder of the Common Stock
as of the Close of Business on the Distribution Date, at the

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	 	 	 	address of such holder shown on the records of the Corporation, one
or more rights certificates in substantially the form of Exhibit B
hereto (the “Rights Certificates”), evidencing one Right for
each share of Common Stock so held, subject to adjustment as
provided herein. In the event that an adjustment in the number of
Rights per share of Common Stock has been made pursuant to
Section 11(p), at the time of distribution of the Rights
Certificates, the Corporation shall make the necessary and
appropriate rounding adjustments (in accordance with Section 14(a))
so that Rights Certificates representing only whole numbers of
Rights are distributed and cash is paid in lieu of any fractional
Rights. As of and after the Distribution Date, the Rights will be
evidenced solely by such Rights Certificates.”

	 	3.	 	Section 11(a)(ii) is hereby deleted in its entirety and the following is
inserted in lieu thereof:

	 	 	 	“(ii) Subject to Section 23(a) and Section 24, in the event any
Person (other than an Exempt Person), alone or together with its
Affiliates and Associates, shall, at any time after the Rights
Dividend Declaration Date, become an Acquiring Person, unless the
event causing the 15% threshold (or in the case of State of
Wisconsin Investment Board, 20% threshold; or, in the case of Essex
Woodlands Health Ventures and its Affiliates and Associates
including, without limitation, Essex Woodlands Health Ventures Fund
VI, L.P. and Essex Woodlands Health Ventures Fund VII, L.P., 37.2%
threshold; or, in the case of Frazier Healthcare V, LP, 19%
threshold, or, in the case of Alejandro Gonzalez, 19% threshold) to
be crossed is a transaction set forth in Section 13(a), or is an
acquisition of shares of Common Stock pursuant to a tender offer or
an exchange offer for all outstanding shares of Common Stock at a
price and on terms determined by the Board of Directors of the
Corporation, after receiving advice from one or more investment
banking firms, to be (a) at a price that is fair to stockholders of
the Corporation (taking into account all factors which such members
of the Board deem relevant including, without limitation, prices
that could reasonably be achieved if the Corporation or its assets
were sold on an orderly basis designed to realize maximum value) and
(b) otherwise in the best interests of the Corporation and its
stockholders, then, proper provision shall be made so that each
holder of a Right (except as provided below and in Section 7(e))
shall thereafter have the right to receive, upon exercise thereof at
the then current Purchase Price in accordance with the terms of this
Agreement, in lieu of a number of one one-thousandths of a share of
Preferred Stock, such number of shares of Common Stock of the
Corporation as shall equal the result obtained by (x) multiplying
the then current Purchase Price by the then number of one
one-thousandths of a share of Preferred Stock for which a Right was
exercisable immediately prior to the occurrence of a
Section 11(a)(ii) Event, and (y) dividing that product (which,
following such occurrence, shall thereafter be referred to as the
“Purchase Price” for each Right and for all purposes of this
Agreement) by 50% of the Current Market Price (determined pursuant
to Section 11(d)) per share of Common Stock on the date of such
occurrence (such number of shares is herein called the
“Adjustment Shares”); provided that the
Purchase Price and the number of Adjustment Shares shall be further
adjusted as provided in this Agreement to reflect any events
occurring after the date of such occurrence; and provided, further,
that if the transaction that would otherwise give rise to the
foregoing adjustment is also subject to the provisions of
Section 13, then only the provisions of Section 13 shall apply and
no adjustment shall be made pursuant to this Section 11(a)(ii).”

     4. Exhibit C is hereby deleted in its entirety and Exhibit C attached hereto and incorporated
by reference herein is inserted in lieu thereof.

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     5. Except as expressly set forth in this Amendment all other terms of the Rights Agreement
shall remain in full force and effect.

     6. This Amendment shall be governed by and construed in accordance with the laws of the State
of Delaware applicable to contracts made and to be performed entirely within such State.

     7. This Amendment may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together
constitute but one and the same instrument.

[The remainder of this page has been intentionally left blank; signature page follows.]

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          IN WITNESS WHEREOF, the Corporation and the Rights Agent have executed this Amendment
effective as of the date first above written.

	 	 	 	 	 
	 	THE CORPORATION:

La Jolla Pharmaceutical Company,

a Delaware corporation

 	 
	 	By:  	/s/
Deirdre Y. Gillespie 	 
	 	 	Deirdre Y. Gillespie 	 
	 	 	Chief Executive Officer 	 
	 
	 	RIGHTS AGENT:

American Stock Transfer & Trust Company,

a New York corporation

 	 
	 	By:  	/s/
Herbert J. Lemmer 	 
	 	 	Name:  	Herbert J. Lemmer 	 
	 	 	Title:  	Vice President 	 
	 

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EXHIBIT C

Summary of Rights to Purchase

Preferred Stock

of

La Jolla Pharmaceutical Company

     On November 19, 1998 (the “Rights Dividend Declaration Date”) the Board of Directors
of La Jolla Pharmaceutical Company (the “Corporation”) declared a dividend of one Right (a
“Right”) for each outstanding share of Corporation Common Stock to be distributed to
stockholders of record at the close of business on December 18, 1998 (the “Record Date”).
Each Right entitles the registered holder to purchase from the Corporation one one-thousandth of a
share (a “Unit”) of Series A Junior Participating Preferred Stock (the “Preferred
Stock”) at a “Purchase Price” of $30, subject to adjustment. The description and terms
of the Rights are set forth in a Rights Agreement (as amended from time to time, the “Rights
Agreement”) dated December 3, 1998, between the Corporation and American Stock Transfer & Trust
Company, as Rights Agent. Effective as of July 21, 2000, the Corporation and the Rights Agent
entered into an Amendment to the Rights Agreement (“Amendment No. 1”), which (a) eliminated
the concept and powers of the “Continuing Directors” and (b) amended the definition of “Acquiring
Person” to permit the State of Wisconsin Investment Board to invest up to a level of just under 20%
beneficial ownership without triggering the Rights Agreement. Effective as of December 14, 2005,
the Corporation and the Rights Agent entered into Amendment No. 2 to Rights Agreement
(“Amendment No. 2”), which further amended the definition of “Acquiring Person” to permit
Essex Woodlands Health Ventures Fund VI, L.P. and Frazier Healthcare V, LP to invest up to a level
of just under 29% and 19% beneficial ownership, respectively, without triggering the Rights
Agreement. Effective as of March 1, 2006, the Corporation and the Rights Agent entered into
Amendment No. 3 to Rights Agreement (“Amendment No. 3”), which further amended the
definition of “Acquiring Person” to permit Alejandro Gonzalez to invest up to a level of just under
19% beneficial ownership without triggering the Rights Agreement. Effective as of May 12, 2008, the
Corporation and the Rights Agent entered into Amendment No. 4 to Rights Agreement (“Amendment
No. 4”), which further amended the definition of “Acquiring Person” to permit Essex Woodlands
Health Ventures and its affiliates and associates including, without limitation, Essex Woodlands
Health Ventures Fund VI, L.P. and Essex Woodlands Health Ventures Fund VII, L.P., to invest up to a
level of just under 37.2% beneficial ownership without triggering the Rights Agreement.

     A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to a Registration Statement on Form 8-A dated December 4, 1998, a copy of Amendment No.
1 has been filed with the Securities and Exchange Commission as an Exhibit to a Current Report on
Form 8-K filed on January 26, 2001, a copy of Amendment No. 2 has been filed with the Securities
and Exchange Commission as an Exhibit to a Current Report on Form 8-K filed on December 16, 2005, a
copy of Amendment No. 3 has been filed with the Securities and Exchange Commission as an Exhibit to
a Current Report on Form 8-K filed on March 1, 2006 and a copy of Amendment No. 4 has been filed
with the Securities and Exchange Commission as an Exhibit to a Current Report on Form 8-K filed on
May 14, 2008. A copy of the Rights Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3 and
Amendment No. 4 are available free of charge from the Corporation. This summary description of the
Rights does not purport to be complete and is qualified in its entirety by reference to the Rights
Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3 and Amendment No. 4, which are
incorporated herein by reference. A more detailed summary is also attached to the Post-Effective
Amendment No. 4 to Form 8-A filed on May 14, 2008 with the Securities and Exchange Commission in
connection with the amendment of the rights plan, and can be viewed on the Securities and Exchange
Commission’s web site at www.sec.gov or obtained from the Corporation upon request.

     Each share of Common Stock of the Corporation outstanding at the close of business on the
Record Date received one Right. In addition, prior to the earliest of the Distribution Date, a
Section 13 Event or the Expiration Date (as each is described below), one additional Right (as such
number may be adjusted pursuant to the provisions of the Rights Agreement) shall be issued with
each share of Common Stock issued after the Record Date. Following the Distribution Date and prior
to the expiration or redemption of the Rights, the Corporation will issue one Right (as such number
may be adjusted pursuant to the provisions of the Rights Agreement) for each share of Common Stock
issued pursuant to the exercise of stock options or under employee plans or upon the exercise,
conversion or exchange of securities issued by the Corporation prior to the Distribution Date.

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     Until the Distribution Date (as described below), (i) the Rights will attach to and be
evidenced by the Common Stock certificates and will be transferred with and only with such Common
Stock certificates, (ii) new Common Stock certificates issued after December 18, 1998 will contain
a notation incorporating the Rights Agreement by reference and (iii) the surrender for transfer of
any certificates for Common Stock outstanding will also constitute the transfer of the Rights
associated with the Common Stock represented by such certificate.

     The Rights are not exercisable until the Distribution Date and will expire at the earliest of:
(i) the close of business on December 2, 2008; (ii) the date of redemption of the Rights; (iii) the
date the Board of Directors of the Corporation orders the exchange of Rights; or (iv) the date of
consummation of a tender offer approved as fair to and in the best interests of the Corporation and
its stockholders and adequately priced with each stockholder receiving the same consideration per
share in the same manner (the “Expiration Date”).

     The Rights will separate from the Common Stock and a Distribution Date will occur (the
“Distribution Date”) upon the earlier of 10 days (or such longer time as may be determined
by the Corporation’s Board of Directors following (i) a public announcement (or determination by
the Corporation’s Board of Directors) that a person or group of affiliated or associated persons
(an “Acquiring Person”) has acquired, or obtained the right to acquire, beneficial
ownership of 15% or more (or, in the case of State of Wisconsin Investment Board, 20% or more; or,
in the case of Essex Woodlands Health Ventures and its affiliates and associates including, without
limitation, Essex Woodlands Health Ventures Fund VI, L.P. and Essex Woodlands Health Ventures Fund
VII, L.P., 37.2% or more; or, in the case of Frazier Healthcare V, LP, 19% or more; or, in the case
of Alejandro Gonzalez, 19% or more) of the outstanding shares of Common Stock (the “Stock
Acquisition Date”), or (ii) the commencement of a tender offer or exchange offer that would
result in a person or group beneficially owning 15% or more (or, in the case of State of Wisconsin
Investment Board, 20% or more; or, in the case of Essex Woodlands Health Ventures and its
affiliates and associates including, without limitation, Essex Woodlands Health Ventures Fund VI,
L.P. and Essex Woodlands Health Ventures Fund VII, L.P., 37.2% or more; or, in the case of Frazier
Healthcare V, LP, 19% or more; or, in the case of Alejandro Gonzalez, 19% or more) of such
outstanding shares of Common Stock. Notwithstanding the foregoing, however, the trigger percentage
expressed in clauses (i) and (ii) above will not be triggered with respect to Abbott Laboratories
unless and until Abbott Laboratories (or its affiliated and associated persons) acquires, after the
Rights Dividend Declaration Date, any additional shares of Common Stock without the prior approval
of the Board of Directors of the Corporation and if, immediately following and giving effect to
such acquisition, Abbott Laboratories (together with its affiliated and associated persons) is the
beneficial owner of 15% or more of the shares of Common Stock then outstanding.

     As soon as practicable after the Distribution Date, Rights Certificates will be mailed to
holders of record of the Common Stock as of the close of business on the Distribution Date and,
thereafter, the separate Rights Certificates alone will represent the Rights.

     At any time after the Distribution Date but prior to the Expiration Date of the Rights, each
right may be exercised at the stated purchase price of $30 (subject to adjustment, the
“Exercise Price”) for one one-thousandth of a share of the Preferred Stock; provided,
however, that upon the occurrence of any of the events described below, the Rights may no longer be
exercised for Preferred Stock and may only be exercised for certain other securities described
below.

     In the event that on or at any time following the Rights Dividend Declaration Date, either (i)
a person (other than Abbott Laboratories) becomes the beneficial owner of more than 15% (or, in the
case of State of Wisconsin Investment Board, more than 20%; or, in the case of Essex Woodlands
Health Ventures and its affiliates and associates including, without limitation, Essex Woodlands
Health Ventures Fund VI, L.P. and Essex Woodlands Health Ventures Fund VII, L.P., more than 37.2%;
or, in the case of Frazier Healthcare V, LP, more than 19%; or, in the case of Alejandro Gonzalez,
more than 19%) of the then outstanding shares of Common Stock, or (ii) Abbott Laboratories acquires
any additional shares of Common Stock without the prior approval of the Board of Directors, and if,
immediately following and giving effect to such acquisition, Abbott Laboratories beneficially owns
15% or more of the then outstanding shares of Common Stock (in either case except pursuant to an
offer for all outstanding shares of Common Stock which the Board of Directors determines to be fair
to and otherwise in the best interests of the Corporation and its stockholders), then each holder
of a Right will thereafter have the right to receive, upon exercise, Common Stock (or, in certain
circumstances, cash, property or other securities of the Corporation) having a value equal to two
times the Purchase Price of the Right. Rights are exercisable following the occurrence of the

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foregoing only after such time as the Rights are no longer redeemable by the Corporation, as
set forth below. Notwithstanding any of the foregoing, following the occurrence of the event set
forth in this paragraph, all Rights that are, or (under certain circumstances specified in the
Rights Agreement) were, beneficially owned by any Acquiring Person will be null and void.

     In the event that, at any time following the Stock Acquisition Date, (i) the Corporation is
acquired in a merger or other business combination transaction in which the Corporation is not the
surviving corporation or in which the Corporation’s outstanding Common Stock is exchanged for cash,
stock or other property (other than a merger which follows an offer for all outstanding shares
described in the preceding paragraph), or (ii) 50% or more of the Corporation’s assets or earning
power is sold or transferred, each holder of a Right (except Rights which previously have been
voided as set forth above) shall thereafter have the right to receive, upon exercise, common stock
of the acquiring company having a value equal to two times the Purchase Price of the Right. (An
event described in this paragraph is a “Section 13 Event.”)

     The Purchase Price payable, and the number of Units of Preferred Stock or other securities or
property issuable, upon exercise of the Rights are subject to adjustment from time to time to
prevent dilution, as set forth in the Rights Agreement. With certain exceptions, no adjustment in
the Purchase Price will be required until cumulative adjustments amount to at least 1% of the
Purchase Price. No fractional Rights, fractions of shares of Preferred Stock (other than fractions
which are integral multiples of one one-thousandth of a share), or fractional shares of Common
Stock will be issued and, in lieu thereof, an adjustment in cash will be made based on the market
price of the Rights, Preferred Stock, or Common Stock, respectively, on the last trading date prior
to the date of exercise.

     In general, the Corporation may redeem the Rights in whole, but not in part, at a price of
$0.001 per Right, at any time until ten days following the Stock Acquisition Date (or such later
date as may be determined by the Corporation’s Board of Directors). Immediately upon the action of
the Board of Directors ordering redemption of the Rights, the Rights will terminate and the only
right of the holders of Rights will be to receive the $0.001 redemption price.

     At any time after a person becomes beneficial owner of 15% or more (or, in the case of State
of Wisconsin Investment Board, 20% or more; or, in the case of Essex Woodlands Health Ventures and
its affiliates and associates including, without limitation, Essex Woodlands Health Ventures Fund
VI, L.P. and Essex Woodlands Health Ventures Fund VII, L.P., 37.2% or more; or, in the case of
Frazier Healthcare V, LP, 19% or more; or, in the case of Alejandro Gonzalez, 19% or more) of the
Common Stock then outstanding, and prior to the first date upon which that person becomes the
beneficial owner of at least 50% of the outstanding Common Stock, the Corporation may, by majority
vote of the Board of Directors, exchange some or all of the outstanding Rights (other than those
that have become void) for shares of Common Stock at an exchange ratio of one share of Common Stock
per Right, appropriately adjusted for splits, dividends, and similar transactions (the “Ratio
of Exchange”). Immediately upon the action of the Board of Directors ordering the exchange of
the Rights, the Rights will terminate and the only right of the holders of Rights will be to
receive the number of Common Shares equal to the Ratio of Exchange.

     Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Corporation, including, without limitation, the right to vote or to receive dividends.

     Other than those provisions relating to the redemption price of the Rights, any of the
provisions of the Rights Agreement may be supplemented or amended by the Board of Directors prior
to the Distribution Date, without approval of the Rights holders, whether or not a supplement or
amendment is adverse to the Rights holders. After the Distribution Date, the provisions of the
Rights Agreement (other than the provisions relating to the redemption price or the final
expiration date of the Rights) may be amended by the Board of Directors in order to make changes
which do not materially and adversely affect the interests of holders of Rights (excluding the
interests of any Acquiring Person), provided, however, that the Rights Agreement
may not be amended to (i) make the Rights again redeemable after the Rights have ceased to be
redeemable, or (ii) change any other time period unless such change is for the benefit of the
holders (excluding any Acquiring Person).

8exv10w10w1

Exhibit 10.10.1

COMPENSATION AND BENEFITS

ASSURANCE AGREEMENT

Qdoba Restaurant Corporation

Contents

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 1. Term of Agreement
	 	 	2	 
	 
	 	 	 	 
	Section 2. Severance Benefits
	 	 	3	 
	 
	 	 	 	 
	Section 3. Excise Tax – Gross-Up
	 	 	8	 
	 
	 	 	 	 
	Section 4. Successors and Assignments
	 	 	10	 
	 
	 	 	 	 
	Section 5. Miscellaneous
	 	 	11	 
	 
	 	 	 	 
	Section 6. Contractual Rights and Legal Remedies
	 	 	11	 

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Compensation and Benefits Assurance Agreement

Qdoba Restaurant Corporation

     This COMPENSATION AND BENEFITS ASSURANCE AGREEMENT (this “Agreement”) is made, entered into,
and is effective as of the 9th day of May, 2008 (the “Effective Date”) by and between
Jack in the Box Inc. (hereinafter referred to as the “Company”) and Gary J. Beisler (hereinafter
referred to as the “Executive”).

     WHEREAS, the Executive is presently employed by the Company in a key management capacity as
Chief Executive Officer and President of the Company’s wholly owned subsidiary Qdoba Restaurant
Corporation (“Qdoba”); and

     WHEREAS, the Executive possesses considerable experience and knowledge of the business and
affairs of the Company concerning its policies, methods, personnel, and operations, and

     WHEREAS, the Company desires assuring the continued employment of the Executive in a key
management capacity and the Executive is desirous of having such assurances.

     NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreement of
the parties set forth in this Agreement, and of other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound
agree as follows:

Section 1. Term of Agreement

     This Agreement will commence on the Effective Date and shall continue in effect for two full
calendar years (through May 9, 2010) (the “Initial Term”).

     The Initial Term of this Agreement automatically shall be extended for two additional calendar
years at the end of the Initial Term, and then again after each successive two-year period
thereafter (each such two-year period following the Initial Term a “Successive Period”). However,
either party may terminate this Agreement at the end of the Initial Term, or at the end of any
Successive Period thereafter, by giving the other party written notice of intent not to renew,
delivered at least six (6) months prior to the end of such Initial Term or Successive Period. If
such notice is properly delivered by either party, this Agreement, along with all corresponding
rights, duties, and covenants shall automatically expire at the end of the Initial Term or
Successive Period then in progress.

     In the event that a “Change in Control” of Qdoba occurs (as defined in Section 2.4 herein)
during the Initial Term or any Successive Period, upon the effective date of such Change in
Control, the term of this Agreement shall automatically and irrevocably be renewed for a period of
twenty-four (24) full calendar months from the effective date of such Change in Control. This
Agreement shall thereafter automatically terminate following the twenty-four (24) month Change in
Control renewal period. Further, this

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Agreement shall be assigned to, and shall be assumed by, the purchaser in such Change in Control,
as further provided in Section 4 herein.

Section 2. Severance Benefits

     2.1. Right to Severance Benefits. The Executive shall be entitled to receive from the Company
Severance Benefits as described in Section 2.3 herein, if during the term of this Agreement there
has been a Change in Control of Qdoba and if, within twenty-four (24) calendar months immediately
thereafter, the Executive’s employment with the Company shall end due to a Qualifying Termination
(as defined in Section 2.2 herein). The Severance Benefits described in Sections 2.3(a), 2.3(b),
2.3(c), and 2.3(g) herein shall be paid in cash to the Executive.

     The Severance Benefits described in Sections 2.3(a), 2.3(b), 2.3(c), 2.3(d) 2.3(e) and 2.3(g)
shall be paid out of the general assets of the Company.

     2.2. Qualifying Termination. In the event the Executive incurs a separation from service (as
defined in Internal Revenue Code (the “Code”) section 409A and its regulations) as a result of the
occurrence of any of the following events during the 24-month period following a Change in Control
of Qdoba (“Qualifying Termination”), the Company shall provide Executive Severance Benefits, as
such benefits are described under Section 2.3 herein:

	 	(a)	 	The involuntary termination of the Executive’s employment with Qdoba without
Cause (as such term is defined in Section 2.6. herein); and
	 
	 	(b)	 	The Executive’s voluntary termination of employment with Qdoba for Good
Reason (as such term is defined in Section 2.5 herein).

     Notwithstanding the foregoing, a Qualifying Termination shall not include (i) a termination of
the Executive’s employment within twenty-four (24) calendar months after a Change in Control by
reason of death or disability (as such term is defined under the Company’s governing disability
plan, in effect immediately prior to a Change in Control), (ii) the Executive’s voluntary
termination of employment with Qdoba without Good Reason, or (iii) the involuntary termination of
the Executive’s employment with Qdoba for Cause.

     In the event the Executive’s employment with Qdoba is terminated during the 24-month period
following a Change in Control due to death or disability (as defined under the Company’s governing
disability plan, in effect immediately prior to a Change in Control), any benefits or payments
provided to the Executive will be provided in accordance with the terms of the Company’s standard
severance policy then in effect.

     2.3. Description of Severance Benefits. Subject to, and to the extent applicable, the
payment distribution rules applicable to “specified employees” (as defined in Code section 409A)
set forth in Section 6.12 herein, in the event that the Executive incurs a Qualifying Termination,
the Company shall pay to the Executive and provide the Executive the following:

3

 

	 	(a)	 	A lump-sum cash amount equal to the Executive’s unpaid Base Salary (as such
term is defined in Section 2.7 herein), accrued vacation pay, un-reimbursed business
expenses, and all other items earned by and owed to the Executive through and
including the date of the Qualifying Termination; provided that any business expense
reimbursements shall (i) be paid no later than the last day of the Executive’s tax
year following the tax year in which the expense was incurred, (ii) not be affected by
any other expense eligible for reimbursement in a tax year, and (iii) not be subject
to liquidation or exchange for another benefit. Such payment shall be payable within
90 days of the effective date of the Executive’s Qualifying Termination and constitute
full satisfaction for these amounts owed to the Executive.
	 
	 	(b)	 	A lump-sum cash amount equal to the result obtained by multiplying (i) the
Executive’s annual rate of Base Salary in effect upon the date of the Qualifying
Termination or, if greater, the Executive’s annual rate of Base Salary in effect
immediately prior to the occurrence of the Change in Control by (ii) a multiple of
1.5x (such multiple referred to herein as the “Multiple”). Such payment shall be
payable within 90 days of the effective date of the Executive’s Qualifying Termination
and constitute full satisfaction for these amounts owed to the Executive.
	 
	 	(c)	 	A lump-sum cash amount equal to the result obtained by multiplying (i) the
Multiple and (ii) the greater of: (I) the result of the Executive’s annualized Base
Salary determined in (b) above multiplied by the Executive’s average bonus percentage
for the last three (3) years prior to the effective date of the Change in Control or
(II) the Executive’s average dollar amount of bonus paid for the last three (3) years
prior to the Change in Control. If the Executive does not have three (3) full years
of bonus payments prior to a Change in Control, the Company will substitute the target
bonus percentage for each missing year. Such payment shall be payable within 90 days
of the effective date of the Executive’s Qualifying Termination and constitute full
satisfaction for these amounts owed to the Executive, provided, however, that to the
extent, if any, required under section 409A of the Code, such payment shall not be
made until six months after the effective date of the Executive’s Qualifying
Termination.
	 
	 	(d)	 	At the exact same cost to the Executive, and at the same coverage level as in
effect as of the Executive’s date of the Qualifying Termination (subject to changes in
coverage levels applicable to all employees generally), a continuation of the
Executive’s (and the Executive’s eligible dependents’) health insurance coverage for
18 months from the date of the Qualifying Termination, (such period referred to herein
as the “Continuation Coverage Period”). The Continuation Coverage Period will run
concurrently with any coverage provided as required by the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”). If coverage provided during the Continuation
Coverage Period requires a monthly payment to the Plan, the

4

 

	 	 	 	Company will pay the required amount, adjusted on a pre-tax basis. For this
purpose, the Executive shall be deemed to be at the highest marginal rate of
federal and state taxes. Notwithstanding the foregoing, any payments or benefits
that the Executive receives during the Continuation Coverage Period shall (i) be
paid no later than the last day of the Executive’s tax year following the tax year
in which the expense was incurred, (ii) not be affected by any other expense
eligible for reimbursement in a tax year, and (iii) not be subject to liquidation
or exchange for another benefit. Such payment shall constitute full satisfaction
for these amounts owed to the Executive; provided, however, that any tax gross-up
payment shall be paid no later than the end of the Executive’s tax year following
the tax year in which the Executive remitted the related taxes to an agency.
	 
	 	 	 	The Continuation Coverage Period shall cease prior to the end of the eighteenth
(18th) month of such period in the event the Executive becomes covered under health
insurance coverage of a subsequent employer which does not contain any exclusion or
limitation with respect to any preexisting condition of the Executive or the
Executive’s eligible dependents. For purposes of enforcing this offset provision,
the Executive acknowledges and agrees to inform the Company as to the terms and
conditions of any subsequent employment and the corresponding benefits earned from
such employment. The Executive shall provide, or cause a subsequent employer to
provide, to the Company in writing correct, complete, and timely information
concerning the benefits provided under such health insurance coverage.
	 
	 	(e)	 	The Executive shall be entitled, at the expense of the Company, to receive
standard outplacement services from a nationally recognized outplacement firm of the
Executive’s selection, for period of up to one (1) year from the effective date of the
Executive’s Qualifying Termination.
	 
	 	(f)	 	Pursuant to the terms of the Company’s Stock Incentive Plan, all unvested
stock options will become fully vested as of the effective date of the Executive’s
Qualifying Termination. Such options shall be exercisable in accordance with the terms
of the Company’s Stock Incentive Compensation Plan and the award agreement.
	 
	 	(g)	 	A lump-sum cash amount equal to 25% of the total of principal plus interest
or gain earned thereon, pursuant to the terms of the “Q-Value” fund within the
Company’s non-qualified deferred compensation plan (the “Executive Deferred
Compensation Plan,”), in the Executive’s Q-Value fund in the Company’s Executive
Deferred Compensation Plan, at the effective date of the Change in Control. Such
payment shall be payable within 90 days of the effective date of the Executive’s
Qualifying Termination and constitute full satisfaction for these amounts owed to the
Executive, provided, however, that to the extent required under section 409A of the
Code, such

5

 

	 	 	 	payment shall not be made until six months after the effective date of the
Executive’s Qualifying Termination.

     2.4. Definition of “Change in Control.” “Change in Control” of Qdoba Restaurant Corporation
means, and shall be deemed to have occurred upon, the first to occur of any of the following
events:

	 	(a)	 	Any Person (other than those Persons in control of the Company as of the
Effective Date, or other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company, or a corporation owned directly or indirectly by
the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company) becomes the Beneficial Owner, directly or
indirectly, of securities of Qdoba representing fifty percent (50%) or more of (i) the
then outstanding shares of the securities of Qdoba, or (ii) the combined voting power
of the then outstanding securities of Qdoba entitled to vote generally in the election
of directors (“Company Voting Stock”); or
	 
	 	(b)	 	The Board of Directors of the Company approve: (i) a plan of complete
liquidation of Qdoba; or (ii) an agreement for the sale or disposition of all or
substantially all of Qdoba’s assets; or (iii) a merger, consolidation, or
reorganization of Qdoba with or involving any other corporation, if immediately after
such transaction persons who hold over fifty percent (50%) of the outstanding voting
securities entitled to vote generally in the election of directors of the surviving
entity (or the entity owning 100% of such surviving entity) are not persons who,
immediately prior to such transaction, held Qdoba’s Voting Stock.
	 
	 	 	 	However, in no event shall a “Change in Control” be deemed to have occurred, with
respect to the Executive, if the Executive is part of a purchasing group which
consummates the Change in Control transaction. The Executive shall be deemed “part
of a purchasing group” for purposes of the preceding sentence if the Executive is
an equity participant in the purchasing company or group (except for: (i) passive
ownership of less than two percent (2%) of the stock of the purchasing company; or
(ii) ownership of equity participation in the purchasing company or group which is
otherwise not significant, as determined prior to the Change in Control by a
majority of the non-employee continuing Directors).

     2.5. Definition of “Good Reason.” “Good Reason” shall be determined by the Executive, in the
exercise of good faith and reasonable judgment, and shall mean, without the Executive’s express
written consent, the occurrence of any one or more of the following conditions:

	 	(a)	 	The material diminution in the Executive’s authorities, duties or
responsibilities, which shall include a material reduction or alteration in the nature
or status of the Executive’s authorities, duties, or responsibilities,

6

 

	 	 	 	from those in effect as of ninety (90) calendar days prior to the Change in
Control, other than an insubstantial and inadvertent act that is remedied by the
Company promptly after receipt of notice thereof given by the Executive;
	 
	 	(b)	 	The Company requiring the Executive to be based at a location in excess of
fifty (50) miles from the location of the Executive’s principal job location or office
immediately prior to the Change in Control; except for required travel on the
Company’s business to an extent consistent with the Executive’s then present business
travel obligations;
	 
	 	(c)	 	A material reduction by the Company of the Executive’s Base Salary in effect
on the Effective Date, or as the same shall be increased from time to time;
	 
	 	(d)	 	A material reduction in the compensation, health and welfare benefits,
retirement benefits, or perquisite programs under which the Executive receives value,
as such program exists for Qdoba immediately prior to the Change in Control. However,
the replacement of an existing program with a new program will be permissible (and not
grounds for a Good Reason termination) if there is not a material reduction in the
value to be delivered to the Executive under the new program; or
	 
	 	(e)	 	Any material breach by the Company of its obligations under Section 4 of this
Agreement.

     A termination will not be considered Good Reason as defined herein unless the Executive
provides the Company with written notice of the existence of the applicable condition described in
clauses (i) through (v) above no later than 90 days after the initial existence of such condition
is known by the Executive and the Company fails to remedy such condition within 30 days of the date
of such written notice.

     The Executive’s right to terminate employment for Good Reason shall not be affected by the
Executive’s incapacity due to physical or mental illness.

     The Executive’s continued employment shall not constitute consent to, or a waiver of rights
with respect to, any circumstance constituting Good Reason herein.

     2.6. Definition of “Cause”. “Cause” shall be determined by a committee designated by the
Board of Directors of the Company (“Administrative Committee”), in the exercise of good faith and
reasonable judgment, and shall mean the occurrence of any of the following:

	 	(a)	 	A demonstrably willful and deliberate act or failure to act by the Executive
(other than as a result of incapacity due to physical or mental illness) which is
committed in bad faith, without reasonable belief that such action or inaction is in
the best interests of Qdoba or the Company, which causes

7

 

	 	 	 	actual material financial injury to Qdoba or the Company and which act or inaction
is not remedied within fifteen (15) business days of written notice from the
Company; or
	 
	 	(b)	 	The Executive’s conviction by a court of competent jurisdiction for
committing an act of fraud, embezzlement, theft, or any other act constituting a
felony involving moral turpitude or causing material harm, financial or otherwise, to
Qdoba or the Company.

     2.7. Other Defined Terms. The following terms shall have the meanings set forth below:

	 	(a)	 	“Base Salary” means, at any time, the then-regular annualized rate of pay
which the Executive is receiving as a salary, excluding amounts (i) designated by the
Company as payment toward reimbursement of expenses; or (ii) received under incentive
or other bonus plans, regardless of whether or not the amounts are deferred.
	 
	 	(b)	 	“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3
of the General Rules and Regulations under the Exchange Act (as such term is defined
below).
	 
	 	(c)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, or any successor act thereto.
	 
	 	(d)	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of
the Exchange Act and used in Section 13(d) and 14(d) thereof, including a “group” as
defined in Section 13(d) thereof.

Section 3. Excise Tax – Gross Up

     3.1. Net-Benefit Reduction & Gross-Up Payment

	 	(a)	 	Net-Benefit Reduction. In the event that the aggregate amount of
payments paid or distributed to Executive pursuant to this Agreement that would be
subject to excise tax under section 4999 of the Internal Revenue Code (“Excise Tax”)
exceed the Executive’s “base amount”(as defined by Code section 280G(b)(3) and its
regulations) by an amount equal to 10% or less (“Payments”), then the Payments shall
be reduced such that the value of the aggregate total payments that the Executive is
entitled to receive shall be one dollar ($1) less than the maximum amount which the
Executive may receive without becoming subject to the Excise Tax or which the Company
may pay without loss of deduction under Code section 280G(a).
	 
	 	(b)	 	Gross-Up Payment. In the event that the aggregate amount of payments
paid or distributed to the Executive pursuant to this Agreement that would be subject
to Excise Tax, or any similar tax that may hereafter be imposed exceeds the
Executive’s base amount by an amount greater than 10%

8

 

	 	 	 	(“Covered Payments”), the Company shall pay to the Executive at the time specified
in Section 3.5 an additional amount (the “Gross-Up Payment”) such that the net
amount retained by the Executive with respect to such Covered Payments, after
deduction of any Excise Tax on the Covered Payments and any Federal, state and
local income tax and other tax on the Gross-Up Payment provided for by this
Section, but before deduction for any Federal, state or local income or employment
tax withholding on such Covered Payments, shall be equal to the amount of the
Covered Payments.

     3.2. Applicable Rules. For purposes of determining whether any of the Covered Payments will
be subject to the Excise Tax and the amount of such Excise Tax:

	 	(a)	 	Such Covered Payments shall be treated as “parachute payments” within the
meaning of section 280G of the Code, unless, and except to the extent that, in the
good faith judgment of the Company’s independent certified public accountants
appointed prior to the Effective Date or tax counsel selected by such accountants (the
“Accountants”), the Company has a reasonable basis to conclude that such Covered
Payments (in whole or in part) either do not constitute “parachute payments” or
represent reasonable compensation for personal services actually rendered (within the
meaning of Code section 280G(b)(4)(B)) in excess of the “base amount,” or such
“parachute payments” are otherwise not subject to such Excise Tax; and
	 
	 	(b)	 	The value of any non-cash benefits or any deferred payment or benefit shall
be determined by the Accountants in accordance with the principles of section 280G of
the Code.

     3.3. Additional Rules. For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to pay (A) Federal income taxes at the highest applicable marginal rate
of Federal income taxation for the calendar year in which the Tax Reimbursement Payment is to be
made, and (B) any applicable state and local income and other taxes at the highest applicable
marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of
the maximum reduction in Federal income taxes which could be obtained from the deduction of such
state or local taxes if paid in such year.

     3.4. Repayment or Additional Payment in Certain Circumstances.

	 	(a)	 	Repayment. In the event that the Excise Tax is subsequently
determined by the Accountants or pursuant to any proceeding or negotiations with the
Internal Revenue Service to be less than the amount taken into account hereunder in
calculating the Gross-Up Payment made, Executive shall repay to the Company, at the
time that the amount of such reduction in the Excise Tax is finally determined, the
portion of such prior Gross-Up Payment that would not have been paid if such lesser
Excise Tax had been applied in initially calculating such Gross-Up Payment.
Notwithstanding the foregoing, in the event any portion of the Gross-Up Payment to be
repaid to

9

 

	 	 	 	the Company has been paid to any Federal, state or local tax authority, repayment
thereof shall not be required until actual refund or credit of such portion has
been made to Executive by the applicable tax authority. Executive and the Company
shall mutually agree upon the course of action to be pursued (and the method of
allocating the expenses thereof) if Executive’s good faith claim for refund or
credit is denied.
	 
	 	(b)	 	Additional Gross-Up Payment. In the event that the Excise Tax is
later determined by the Accountants or pursuant to any proceeding or negotiations with
the Internal Revenue Service to exceed the amount taken into account hereunder at the
time the Gross-Up Payment is made (including, but not limited to, by reason of any
payment the existence or amount of which cannot be determined at the time of the
Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of
such excess (plus any interest or penalty payable with respect to such excess) at the
time that the amount of such excess is finally determined; provided, however, that
such additional Gross-Up Payment shall be made within the time period specified in
Treasury regulation section 1.409A-3(i)(1)(v).

     3.5. Timing for Gross-Up Payment. The Gross-Up Payment (or portion thereof) provided for in
this Section shall be paid to Executive no later than ten (10) business days following the payment
of the Covered Payments; provided, however, that if the amount of such Gross-Up Payment (or portion
thereof) cannot be finally determined on or before the date on which payment is due, the Company
shall pay to Executive by such date an amount estimated in good faith by the Accountants to be the
minimum amount of such Gross-Up Payment and shall pay the remainder of such Gross-Up Payment
(together with interest at the rate provided in section 1274(b)(2)(B) of the Code) as soon as the
amount thereof can be determined, but in no event later than 45 calendar days after payment of the
related Covered Payments. To the extent that the amount of the estimated Gross-Up Payment exceeds
the amount subsequently determined to have been due, Executive shall pay such excess to the Company
on the fifth business day after written demand by the Company for payment.

Section 4. Successors and Assignments

     4.1. Successors. The Company will require any successor (whether via a Change in Control,
direct or indirect, by purchase, merger, consolidation, or otherwise) of the Company to expressly
assume and agree to perform the obligations under this Agreement in the same manner and to the same
extent that the Company would be required to perform if no such succession had taken place.

     4.2. Assignment by Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and legatees. If the Executive should die while any
amount is still payable to the Executive hereunder had the Executive continued to live, all such
amounts, unless otherwise provided herein, shall be paid in

10

 

accordance with the terms of this Agreement, to the Executive’s devisee, legatee, or other
designee, or if there is no such designee, to the Executive’s estate.

     An Executive’s rights hereunder shall not otherwise be assignable.

Section 5. Miscellaneous

     5.1. Administration. This Agreement shall be administered by the Board of Directors of the
Company (the “Board”), or by the Administrative Committee. The Administrative Committee (with the
approval of the Board, if the Board is not the Administrative Committee) is authorized to interpret
this Agreement, to prescribe and rescind rules and regulations, and to make all other
determinations necessary or advisable for the administration of this Agreement.

     In fulfilling its administrative duties hereunder, the Administrative Committee may rely on
outside counsel, independent accountants, or other consultants to render advice or assistance.

     5.2. Notices. Any notice required to be delivered to the Company or the Administrative
Committee by the Executive hereunder shall be properly delivered to the Company when personally
delivered to (including by a reputable overnight courier), or actually received through the U.S.
mail, postage prepaid, by:

Jack in the Box Inc.

9330 Balboa Avenue

San Diego, CA 92123

Attn: General Counsel

     Any notice required to be delivered to the Executive by the Company or the Administrative
Committee hereunder shall be properly delivered to the Executive when personally delivered to
(including by a reputable overnight courier), or actually received through the U.S. mail, postage
prepaid, by, the Executive at his last known address as reflected on the books and records of the
Company.

Section 6. Contractual Rights and Legal Remedies

     6.1. Contractual Rights to Benefits. This Agreement establishes in the Executive a right to
the benefits to which the Executive is entitled hereunder. However, except as expressly stated
herein, nothing herein contained shall require or be deemed to require, or prohibit or be deemed to
prohibit, the Company to segregate, earmark, or otherwise set aside any funds or other assets in
trust or otherwise to provide for any payment to be made or required hereunder.

     6.2. Legal Fees, Compensation and Expenses. The Company shall pay all legal fees, costs of
litigation, prejudgment interest, and other expenses which are incurred in good faith by the
Executive. Additionally, the Company should be required to continue to pay and provide the
Executive’s compensation and benefits pending resolution of conflict. The aforementioned payments
are a result of the Company’s refusal to provide the Severance Benefits to which the Executive
becomes entitled under this Agreement, or as a

11

 

result of the Company’s (or any third party’s) contesting the validity, enforceability, or
interpretation of the Agreement, or as a result of any conflict between the parties pertaining to
this Agreement.

     6.3. Arbitration. The Executive shall have the right and option to elect (in lieu of
litigation) to have any dispute or controversy arising under or in connection with this Agreement
settled by arbitration conducted before a panel of three (3) arbitrators sitting in a location
selected by the Executive within fifty (50) miles from the location of his or her job with the
Company, in accordance with the rules of the American Arbitration Association then in effect. The
Executive’s election to arbitrate, as herein provided, and the decision of the arbitrators in that
proceeding, shall be binding on the Company and the Executive.

     Judgment may be entered on the award of the arbitrator in any court having jurisdiction. All
expenses of such arbitration, including the fees and expenses of the counsel for the Executive,
shall be borne by the Company.

     6.4. Unfunded Agreement. This Agreement is intended to be an unfunded general asset promise
for a select, highly compensated member of the Company’s management and, therefore, is intended to
be exempt from the substantive provisions of the Employee Retirement Income Security Act of 1974,
as amended.

     6.5. Exclusivity of Benefits. Unless specifically provided herein, neither the provision of
this Agreement nor the benefits provided hereunder shall reduce any amounts otherwise payable, or
in any way diminish the Executive’s rights as an employee of the Company, whether existing now or
hereafter, under any compensation and/or benefit plans, programs, policies, or practices provided
by the Company, for which the Executive may qualify.

     Vested benefits or other amounts which the Executive is otherwise entitled to receive under
any plan, policy, practice, or program of the Company (i.e., including, but not limited to, vested
benefits under the Company’s 401(k) plan), at or subsequent to the Executive’s date of Qualifying
Termination shall be payable in accordance with such plan, policy, practice, or program except as
expressly modified by this Agreement.

     6.6. Includable Compensation. Severance Benefits provided hereunder shall not be considered
“includable compensation” for purposes of determining the Executive’s benefits under any other plan
or program of the Company.

     6.7. Employment Status. Nothing herein contained shall be deemed to create an employment
agreement between the Company and the Executive, providing for the employment of the Executive by
the Company for any fixed period of time. The Executive’s employment with the Company is
terminable at-will by the Company or the Executive and each shall have the right to terminate the
Executive’s employment with the Company at any time, with or without Cause, subject to the
Company’s obligation to provide Severance Benefits as required hereunder.

12

 

     In no event shall the Executive be obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to the Executive under any of the provisions of this
Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by
the Executive as a result of employment by another employer, other than as provided in Section
2.3(e) herein.

     6.8. Entire Agreement. This Agreement represents the entire agreement between the parties
with respect to the subject matter hereof, and supersedes all prior discussions, negotiations, and
agreements concerning the subject matter hereof, including, but not limited to, any prior severance
agreement made between the Executive and the Company.

     6.9. Tax Withholding. The Company shall withhold from any amounts payable under this Agreement
at federal, state, city, or other taxes as legally required to be withheld.

     6.10. Waiver of Rights. Except as otherwise provided herein, the Executive’s acceptance of
Severance Benefits, the Gross-Up Payment (if applicable), and any other payments required hereunder
shall be deemed to be a waiver of all rights and claims of the Executive against the Company
pertaining to any matters arising under this Agreement.

     6.11. Severability. In the event any provision of the Agreement shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision
had not been included.

     6.12. Applicable Law. To the extent not preempted by the laws of the United States, the laws
of the State of Delaware shall be the controlling law in all matters relating to the Agreement.

     6.13. Application of Section 409A. Notwithstanding any inconsistent provision of this
Agreement, to the extent the Company determines in good faith that (i) payments or benefits
received or to be received by the Executive pursuant to this Agreement in connection with the
Executive’s termination of employment would constitute deferred compensation subject to the rules
of section 409A of the Code, and (ii) the Executive is a “specified employee” under section 409A of
the Code, then only to the extent required to avoid the Executive’s incurrence of any additional
tax or interest under Section 409A, such payment or benefit will be delayed until the earliest date
following the Executive’s “separation from service” within the meaning of Section 409A which will
permit the Executive to avoid such additional tax or interest. The Company and the Executive agree
to negotiate in good faith to reform any provisions of this Agreement to maintain to the maximum
extent practicable the original intent of the applicable provisions without violating the
provisions of section 409A, if the Company deems such reformation necessary or advisable pursuant
to guidance under section 409A to avoid the incurrence of any such interest and penalties. Such
reformation shall not result in a reduction of the aggregate amount of payments or benefits under
this Agreement. The preceding provisions shall not be construed as a guarantee by the Company or
Qdoba of any

13

 

particular tax effect for any income to the Executive provided pursuant to the Agreement or
other agreement or arrangement contemplated by the Agreement.

     6.14. No Duplication of Benefits. In no event shall severance benefits be payable under this
Agreement if the same or similar benefits are payable under any other Compensation and Benefits
Assurance Agreement between the Company and the Executive based upon the same events, transactions,
or circumstances.

     IN WITNESS WHEREOF, the Company has executed this Agreement, to be effective as of the day and
year first written above.

ATTEST:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Jack in the Box, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Secretary
	 	 	 	 

Senior Vice President, Human
	 	 
	 

	 	 	 	 	 	Resources & Strategic Planning	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Executive	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Gary J. Beisler
	 	 
	 

	 	 	 	Title:	 	Chief Executive Officer & President	 	 
	 

	 	 	 	 	 	Qdoba Restaurant Corporation	 	 

14

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