Document:

EX-10.1

 Exhibit 10.1 

 
 

 
 December 30, 2014 

Ms. Carolyn J. Logan 
 Salix Pharmaceuticals, Ltd. 

8510 Colonnade Center Drive 
 Raleigh, NC 27615 

Dear Carolyn: 
 You have informed Salix
Pharmaceuticals, Inc. (“Salix” and, collectively with its subsidiaries and affiliates and their respective successors and assigns, the “Company”) of your decision to retire from the Company effective on the earlier
of (a) January 30, 2015 and (b) the date on which a successor Chief Executive Officer of Salix (the “Successor CEO”) is appointed by the Board of Directors of Salix (the “Retirement Date”). The Company
desires your continued support, following the Retirement Date, in the transition of your duties and responsibilities and certain other matters, and you are willing to provide such support as a consultant on the terms and subject to the conditions
set forth below. This letter agreement (this “Agreement”) sets forth the mutual understandings and agreements we have reached regarding these matters. 

Accordingly, in reliance on the promises made in this Agreement, you, Salix and Salix Pharmaceuticals, Ltd. (“Parent”) agree
as of the date set forth above as follows: 
 1. Continuation of Employment. 

(a) You, Salix and Parent agree that, except as otherwise provided in Section 6 of this Agreement, during the period from
the date of this Agreement through the Retirement Date (the “Employment Period”), you will (i) continue to be employed by Salix as its Chief Executive Officer and President; (ii) continue to serve as the Chief Executive
Officer and President of Parent; (iii) continue to serve as a director of Parent; and (iv) continue to hold each and every other position you hold, on the date of this Agreement, as a director, officer or employee of the Company. Except as
otherwise provided in this Agreement, during the Employment Period, you will continue to be subject to and bound by, and will comply with, (A) the terms and conditions set forth in the Amended and Restated Employment Agreement, dated as of
April 29, 2014, by and between Salix and you (the “Employment Agreement”) and the Employment, Confidential Information, Invention Assignment, and Arbitration Agreement, dated as of [July 10, 2006], by and between Salix and you
(the “Invention Agreement”) and (B) all applicable policies and codes of the Company in effect from time to time. 

(b) During the Employment Period, you will (i) continue to receive your “Base Salary” (as such term is defined in the
Employment Agreement), as in effect on the date of this Agreement, pursuant to Section 3.1 of the Employment Agreement; and (ii) remain eligible to participate in, and receive applicable benefits under, the benefit plans and programs in
which you participate on the date of this Agreement, in each case in accordance with the Employment Agreement and the respective terms and conditions of such plans and programs. 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 

 

 
  

 (c) Notwithstanding anything to the contrary set forth in the Employment Agreement, and in
addition to your duties and responsibilities set forth therein, during the Employment Period, you shall provide such assistance and support to the Board of Directors of Parent as such Board of Directors or any member thereof shall reasonably request
in connection with the search for, and transition of your duties and responsibilities to, the Successor CEO. 
 2. Retirement.

 (a) You hereby irrevocably terminate, effective on the Retirement Date, your employment with Salix and hereby irrevocably resign,
effective on the Retirement Date, each and every other position you hold as a director, officer or employee of the Company, including, without limitation, Parent. You agree that, as requested by Parent, you will promptly execute and deliver such
other documents as may be reasonably necessary to evidence or memorialize such termination and resignations. Notwithstanding anything to the contrary set forth in the Employment Agreement, including, without limitation, any notice provisions set
forth therein, you irrevocably agree that your termination of your employment with Salix pursuant to this Agreement is without “Good Reason” (as such term is defined in the Employment Agreement) pursuant to Section 6.2(b) of the
Employment Agreement. 
 (b) On the first regular payroll date occurring on or after the Retirement Date, Salix will pay you an amount in
cash equal to (a) all unpaid Base Salary accrued through the Retirement Date pursuant to Section 3.1 of the Employment Agreement; and (b) all unused PTO (as such term is defined in the Employment Agreement) earned and accrued through
the Retirement Date pursuant to Paragraph C of Appendix A of the Employment Agreement. Promptly following your submission of an expense report in respect of any expenses incurred on or prior to the Retirement Date that have not yet been reimbursed,
Salix will reimburse you for such expenses, subject to and in accordance with applicable expense reimbursement policy. 
 (c) You
acknowledge and agree that you are not entitled to, and will not receive, (i) any payment in respect of any Bonus (as such term is defined in the Employment Agreement) for any period pursuant to the Employment Agreement or any applicable Bonus
Plan of the Company; or (ii) any severance pay or separation benefits in connection with, or as a result of, the termination and resignations set forth in this Section 2. 

(d) You and the Company agree that, effective at 12:01 a.m., Eastern Standard Time, on the first day following the Retirement Date, each of
(a) the Employment Agreement; and (b) the Invention Agreement, will hereby terminate and be of no further force or effect; provided, however, that Section 3 of the Invention Agreement (and any provision of the Invention
Agreement necessary for the interpretation thereof) shall not be terminated and shall remain in full force and effect in accordance with its terms. 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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 3. Provision of Consulting Services. You and Parent agree that, except
as otherwise provided in Section 6 of this Agreement, and provided that you remain an employee in good standing of Salix on the Retirement Date, during the period from the Retirement Date through August 23, 2018 (the
“Consulting Period”), you will serve as a consultant to Parent and shall, upon reasonable notice and at reasonable times, (a) provide such assistance and support to the Board of Directors of Parent as such Board of Directors or
any member thereof shall reasonably request in connection with the search for, or transition of your duties and responsibilities to, the Successor CEO; and (b) provide such consulting services regarding the Company’s business and
operations as Parent, its Board of Directors or the Successor CEO shall reasonably request (collectively, the “Services”). In providing the Services, you will be acting as an independent contractor of Parent and not as an employee
of Parent. Unless otherwise agreed by you and Parent, all Services will be provided telephonically. Notwithstanding anything in this Section 3 to the contrary, in no event will you be required to devote more than five (5) hours per
calendar month to the provision of the Services. For the avoidance of doubt, and subject to your full compliance with your obligations set forth in Section 10 of this Agreement, Parent acknowledges and agrees that you will be permitted
to seek and/or obtain new employment during the Consulting Period. During the Consulting Period, Parent will reimburse you, upon presentment of appropriate receipts, for the reasonable and necessary out-of-pocket expenses incurred by you directly as
a result of your provision of the Services in accordance with this Section 3. All receipts for such expenses must be presented to Parent for reimbursement within forty-five (45) days after such expenses are incurred. For the
avoidance of doubt, your obligations set forth in Section 4 of this Agreement will not constitute Services and such obligations will not be limited or modified in any way by the provisions of this Section 3. 

4. Cooperation. From and after the date hereof, you agree that you will (a) cooperate with the Company in connection
with any potential or actual judicial, administrative or other proceeding of any kind (including, without limitation, any arbitration), or any investigation (including, without limitation, any internal investigation), in any case by or involving or
relating, directly or indirectly to, the Company (collectively, “Proceedings or Investigations”); (b) assist and cooperate with the Company in the preparation and review of documents and in meetings with attorneys for, and
other representatives of, the Company in connection with any potential or actual Proceedings or Investigations; and (c) provide truthful testimony or statements as a witness or a declarant in connection with any potential or actual Proceedings
or Investigations. For the avoidance of doubt, your obligations under this Section 4 do not, and will not, require you to disclose to the Company any information that is subject to the attorney-client privilege or any work product
protections that exists between you and your personal attorneys. Parent will reimburse you, upon presentment of appropriate receipts, for the reasonable and necessary out-of-pocket expenses incurred by you in connection with such cooperation and
assistance. All receipts for such expenses must be presented for reimbursement within forty-five (45) days after such expenses are incurred. Should you be served with a subpoena in any judicial, administrative or other proceeding of any kind
involving or relating, directly or indirectly, to the Company, you agree to promptly, and in no event later than three (3) days after receipt thereof, notify Parent of such subpoena and, to the extent legally permissible, provide Parent with a
copy thereof. 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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 5. Treatment of Outstanding Equity-Based Awards. Subject to
Section 6 of this Agreement, Parent hereby agrees that the outstanding equity-based awards held by you as of the date hereof, which awards are set forth on Exhibit A hereto (collectively, the “Equity Awards”),
will remain outstanding and continue to vest (or, as applicable, remain exercisable) through the last day of the Consulting Period in accordance with the terms of the applicable Stock Plan (as defined below) and award agreement. Parent and you
hereby agree that the last day of the Consulting Period will constitute the date that your status as a consultant terminates for purposes of the applicable Stock Plan. “Stock Plans” means, collectively, (a) the Salix
Pharmaceuticals, Ltd. 2005 Stock Plan, as amended and (b) the Salix Pharmaceuticals, Ltd. 2014 Stock Plan, as amended. 
 6.
Termination; Clawback. 
 (a) In addition to all other remedies available to Parent and Salix at law or equity (including,
without limitation, injunctive relief), and notwithstanding anything to the contrary set forth in the Employment Agreement, you hereby agree that if, during the Employment Period, (i) you breach, in any material respect, any of your agreements
or obligations set forth in Section 1, Section 4, Section 7, Section 12, Section 21 or Section 23 of this Agreement; (ii) you breach, in any material respect, any of your
other material obligations set forth in this Agreement that are applicable during the Employment Period; (iii) the Board of Directors of Parent, acting in good faith, determines that, at any time during the period in which you were employed by
Salix or served as a director, officer or employee of the Company, including, without limitation, Parent, you intentionally engaged in wrongdoing that resulted, or would reasonably be expected to result, in material harm to Parent or any of its
subsidiaries or affiliates, or to the business or reputation of Parent or any of its subsidiaries or affiliates1; or (iv) you are found to have committed a violation of law by the U.S.
Securities and Exchange Commission (the “SEC”) or any other regulatory or governmental agency or court of law, in each case (A) the Employment Period and your employment with Salix will immediately terminate without notice;
(B) your status as an employee of the Company under the applicable Stock Plan will, without notice, be deemed to have immediately terminated other than by reason of your death or disability; and (C) any outstanding Equity Awards then held
by you that are then unvested or that otherwise then remain subject to restriction will, without notice, immediately terminate and you will not receive any shares of stock or any payment or other consideration therefor. 

(b) In addition to all other remedies available to Parent and Salix at law or equity (including, without limitation, injunctive relief), you
hereby agree that if, during the Consulting Period, (i) you (x) breach Section 16 of this Agreement or any of your agreements or obligations set forth in the Release (as defined below) or (y) breach, in any material
respect, any of your agreements or obligations set forth in Section 2, Section 4, Section 7, Section 9, Section 10, Section 11, Section 12, Section 21 or
Section 23 of this Agreement; (ii) you breach, in any material respect, any of your other material obligations set forth in this Agreement; (iii) the 

 

	1 	As of your execution of this Agreement, the Board of Directors of Parent has not made a determination under Section 6 (a)(iii) that would permit the immediate termination of any outstanding Equity Awards.

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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Board of Directors of Parent, acting in good faith, determines that, at any time during the period in which you were employed by Salix or served as a director, officer or employee of the Company,
including, without limitation, Parent, you intentionally engaged in wrongdoing that resulted, or would reasonably be expected to result, in material harm to Parent or any of its subsidiaries or affiliates, or to the business or reputation of Parent
or any of its subsidiaries or affiliates; or (iv) you are found to have committed a violation of law by the SEC or any other regulatory or governmental agency or court of law, in each case (A) the Consulting Period and your service as a
consultant to Parent pursuant to Section 3 of this Agreement will immediately terminate without notice; (B) your status as a consultant under the applicable Stock Plan will, without notice, be deemed to have immediately terminated
other than by reason of your death or disability; and (C) any outstanding Equity Awards then held by you that are then unvested or that otherwise then remain subject to restriction will, without notice, immediately terminate and you will not
receive any shares of stock or any payment or other consideration therefor. 
 (c) In addition to, and not in limitation of,
Section 6(a) and Section 6(b) of this Agreement, you hereby agree that if any of the actions or events set forth in clauses (i), (ii) or (iv) of Section 6(b) of this Agreement occurs, whether during the
Employment Period or the Consulting Period, (i) Parent may recover, and you agree to turn over to Parent promptly upon demand, any Equity Awards then held by you to the extent that such Equity Awards vested or otherwise became free of
restriction after the date of this Agreement, including, without limitation, those Equity Awards with a vesting date of January 1, 2015; and (ii) Parent may recover, and you agree to pay over to Parent promptly on demand, the net after-tax
proceeds received by you from any sale or other disposition of any Equity Awards that vested or otherwise became free of restriction after the date of this Agreement. Parent will, within five (5) days after the occurrence, to the extent known
by Parent, of any action or event set forth in clauses (i), (ii) or (iv) of Section 6(b) of this Agreement, provide you written notice thereof. 

(d) You acknowledge and agree that the amounts paid to you by the Company, including, without limitation, amounts payable pursuant to this
Agreement, may be subject to recoupment or clawback pursuant to the Sarbanes-Oxley Act of 2002, the Dodd–Frank Wall Street Reform and Consumer Protection Act or other applicable law, and you agree to repay such amounts to the extent legally
required thereunder. 
 7. Acknowledgment of Payment; Compliance with Employment Agreement. You acknowledge and agree that,
effective on the Retirement Date, (a) except as expressly set forth in this Agreement, you will not be eligible for, and will not receive, any fees, wages, payments, compensation or benefits of any kind from the Company; and (b) this
Agreement sets forth the total consideration to be paid to you by the Company and is in lieu of any and all payment for services and/or other consideration of any kind which at any time has been the subject of any prior discussion, representations,
inducements or promises, oral or written, direct or indirect, contingent or otherwise. You further acknowledge and agree that, as of the date of this Agreement, (i) no event has occurred or circumstance exists that would give you the right,
upon notice, with the passage of time or both, to terminate the Employment Agreement for Good Reason and (ii) you have been paid in full for all services provided by you to the Company and 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
 -5- 

 

 
  

 
have received all fees, wages, payments and compensation of any kind owed to you, including, but not limited to, pursuant to the Employment Agreement, except for any Base Salary accrued since the
last regular payroll period occurring prior to the date of this Agreement, earned and accrued PTO, and any unreimbursed business expenses. 

8. Health and Medical Coverage. 

(a) Subject to your eligibility for, and timely election of, continuation coverage under the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”), for the period commencing on the Retirement Date and continuing to the earlier of (i) the date on which the applicable continuation period under COBRA expires; and (ii) the date on which you become eligible to
receive reasonably comparable or increased health and medical coverage from a subsequent employer (the “COBRA Period”), Salix will provide you with continued health and medical coverage pursuant to COBRA. Salix will provide such
coverage at Salix’s expense and under Salix’s group health insurance plans in which you participated immediately prior to the Retirement Date (or plans providing reasonably comparable or increased health and medical coverage). The monthly
premium for such coverage (the “Cobra Monthly Premium”) will be paid to the applicable benefit carrier by Salix. If Salix cannot provide the foregoing benefits in a manner that is exempt from Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”), or that is otherwise compliant with applicable law (including, without limitation, Section 2716 of the Public Health Service Act), Salix will instead pay to you a taxable
monthly payment for the COBRA Period equal to the COBRA Monthly Premium then in effect, such payment to be made on a tax grossed-up basis such that the net amount received by you in respect of each monthly payment, after deduction of all federal,
state and local income taxes, employment-related taxes (including Social Security and Medicare taxes), will be equal to the amount of the COBRA Monthly Premium. In such case, you will be solely responsible for all matters relating to your
continuation of coverage pursuant to COBRA, including, without limitation, your election of such coverage and your timely payment of all premiums therefor. 

(b) Subject to your compliance with your agreements and obligations set forth in this Agreement, upon the expiration of the COBRA Period other
than pursuant to Section 8(a)(ii) of this Agreement, for the period commencing on the day immediately following the last day of the COBRA Period and continuing through the earlier of (i) the last day of the Consulting Period and
(ii) the date on which you become eligible to receive reasonably comparable or increased health and medical coverage from a subsequent employer, Salix will arrange to reimburse you for the amount of the monthly premiums for health and medical
coverage secured by you and reasonably comparable to that provided to you under Salix’s group health insurance plans immediately prior to the end of the COBRA Period (“Comparable Personal Coverage”). You will provide all
information reasonably requested by Salix in connection with such reimbursement payments for Comparable Personal Coverage. Salix will make such reimbursement payments to you on the first payroll date of Salix occurring in each month following the
end of the COBRA Period, and, to the extent that such reimbursement payments are taxable to you, will make such reimbursement payments on a tax grossed-up basis such that the net amount received by you in respect of each reimbursement payment, after
deduction of all 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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federal, state and local income taxes, employment-related taxes (including Social Security and Medicare taxes), will be equal to the amount of the monthly premium for such Comparable Personal
Coverage. Notwithstanding the foregoing, in no event will Salix be required to reimburse you for monthly premiums for Comparable Personal Coverage that are in excess of 150% of the COBRA Monthly Premium in effect on the last day of the COBRA Period.

 9. Non-Disclosure of Confidential Information.  

(a) You acknowledge that (i) the Company is engaged in a highly competitive business; (ii) you have served Parent and Salix in an
executive capacity; (iii) you have had access to and have gained knowledge of substantial trade secrets and Confidential Information (as defined below); and (iv) the restrictions, covenants and agreements set forth in this Agreement are
reasonably necessary to protect the legitimate interests of the Company. 
 (b) For purposes of this Agreement, “Confidential
Information” means any and all of the Company’s trade secrets, confidential and proprietary information and all other non-public information and data of or about the Company and its business, including, but not limited to, confidential
business methods and processes, research and development information, business plans and strategies, marketing plans and strategies, information pertaining to customers, pricing information, cost information, financial information, personnel
information, contract information, data compilations, information received from third parties that the Company is obligated to keep confidential, information with respect to contemplated strategic transactions, and information about prospective
products, whether or not reduced to writing or other tangible medium of expression, including, without limitation, work product created by you in rendering services to Parent and Salix. 

(c) You acknowledge that the Confidential Information is a valuable, special and unique asset of the Company. At all times on and following
the Retirement Date, you will not, except as may be authorized in writing by Parent, use or disclose to others any of the Confidential Information. You agree that the Company owns the Confidential Information and you have no rights, title or
interest in any of the Confidential Information. Except as otherwise agreed by Parent in writing, on the Retirement Date, you will deliver to Parent any and all materials (including all copies and electronically stored data) containing any
Confidential Information in your possession or subject to your custody or control. Your obligations set forth in this Section 9 shall continue as long as the Confidential Information remains confidential, and shall not apply to any
information which you are required by law or judicial process to disclose or which becomes generally publicly available through no fault or action of your own or others who were under confidentiality obligations with respect to such information.

 10. Non-Competition. During the Consulting Period, you will not work for any entity listed on Exhibit C to this
Agreement (each, a “Restricted Company”) or with any affiliate or division of such Restricted Company where (a) you will have, or would reasonably be expected to have, duties, or will perform, or would reasonably be expected to
perform, services that are the same as or substantially similar to any of the duties or services actually performed by 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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you for the Company within the twelve (12) month period immediately preceding the Retirement Date; or (b) you will use or disclose, or would reasonably be expected to use or disclose,
any Confidential Information of the Company. For purposes of clarification, it shall not be a violation of this Section 10 for you to work in an affiliate or division of a Restricted Company if: (i) the affiliate or division of the
Restricted Company does not compete with the Company; (ii) such work would not result in the use or disclosure of the Confidential Information; and (iii) you obtain the prior written consent of Parent, which consent shall not be
unreasonably withheld. You acknowledge that the foregoing restrictions set forth in this Section 10 are reasonable given (x) the position in which you have been employed with the Company, (y) that the Company’s business is
national in scope and (z) you, for or on behalf of a Restricted Company, could compete effectively with the Company from any location in the United States. 

11. Non-Solicitation. During the Consulting Period, you shall not (a) solicit, recruit or attempt to hire or employ any
person who is an employee of the Company; (b) assist any person or entity in the recruitment or hiring of any person who is an employee of the Company; (c) urge, induce or seek to induce any person to terminate his or her employment with
the Company; or (d) advise, suggest to or recommend to any person or entity that it employ or solicit for employment any person who is an employee of the Company. During the Consulting Period, you will not urge, induce or seek to induce any of
the Company’s customers, independent contractors, subcontractors, consultants, business partners, licensors, licensees, vendors, suppliers or others with whom the Company has a business relationship to terminate their relationship with the
Company, or to cancel, withdraw, reduce, limit or in any manner modify any such person’s or entity’s business with the Company. 

12. Non-Disparagement. From and after the date hereof, you shall not make or publish any statements or comments that disparage
or injure the reputation or goodwill of the Company, or any of its or their respective officers or directors, or otherwise make any oral or written statements that a reasonable person would expect at the time such statement is made to likely have
the effect of diminishing or injuring the reputation or goodwill of the Company or any of its or their respective officers or directors; provided, however, that nothing in this Section 12 shall prevent you from
(a) making truthful statements in good faith in response to any governmental or regulatory inquiry or in any judicial, administrative or other governmental proceeding or investigation; or (b) providing any information that may be required
by law. 
 13. Acknowledgement of Prohibition on Engaging in Certain Activities. You acknowledge and agree that the covenants
set forth in Section 9, Section 10, Section 11 and Section 12 of this Agreement prohibit you from engaging in certain activities on your own behalf or on behalf of or in conjunction with any person or
entity, regardless of whether you are acting as an employee, owner, independent contractor, consultant or advisor and regardless whether you are acting directly or indirectly. 

14. Severability. If any provision of this Agreement, or the application of any provision of this Agreement to any person or
circumstance, is, for any reason and to any extent, held invalid or unenforceable, such invalidity and unenforceability will not affect the remaining 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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provisions of this Agreement or its application to other persons or circumstances, all of which will be enforced to the greatest extent permitted by law; and you, Parent and Salix each agree that
any invalid or unenforceable provision may and will be reformed and applied to the extent needed to avoid that invalidity or unenforceability and in a manner that is as similar as possible to the intent of yourself and the Company (as described in
this Agreement) and preserves the essential economic substance and effect of this Agreement. 
 15. Remedies. You agree that
the restrictions, covenants and agreements set forth in this Agreement are reasonable protections to the immediate, proper and legitimate interests of the Company. You further agree (a) that any breach of this Agreement by you would cause
substantial and irreparable injury to the Company and that money damages would not be a sufficient remedy for an actual or threatened breach of this Agreement because of the difficulty of ascertaining the amount of damage that would be suffered by
the Company in the event that this Agreement is breached; (b) that, in addition to all other remedies available at law or equity, Parent shall be entitled to equitable relief, including injunction and specific performance, as a remedy for any
such breach or threatened breach, without proof of actual damages; and (c) to waive any requirement for the securing or posting of any bond in connection with such remedy. In the event of litigation relating to this Agreement, if a court of
competent jurisdiction determines, in a final, non-appealable judgment, that you have breached this Agreement, you shall be liable for and pay to Parent the reasonable legal fees and expenses incurred by the Company in connection with such
litigation, including any appeal therefrom. 
 16. Release. You shall execute irrevocably and deliver to each of Parent and
Salix, and not revoke, a release of claims in the form attached hereto as Exhibit B (the “Release”) prior to the 52nd day after the Retirement Date (and in no event earlier than the Retirement Date). 

17. Rights Not Affected. Nothing in this Agreement or the Release will affect (a) your rights under the Indemnity
Agreement, dated as of January 7, 2014, by and between Salix and you (the “Indemnity Agreement”); (b) your rights to indemnification set forth in the Amended and Restated Certificate of Incorporation and the Amended and
Restated Bylaws of Parent; or (c) your vested right, if any, under the Salix 401(k) retirement savings plan. 
 18. Entire
Agreement. This Agreement, the Employment Agreement, the Indemnity Agreement, the Stock Plans and Section 3 of the Invention Agreement constitute the entire agreement between the parties hereto pertaining to the subject matter hereof
and supersede all prior and contemporaneous agreements, understandings and representations, whether oral or written, of the parties in connection herewith. No covenant or condition or representation not expressed in this Agreement shall affect or be
effective to interpret, change or restrict this Agreement. No prior drafts of this Agreement and no words or phrases from any such prior drafts shall be admissible into evidence in any action, suit or other proceeding involving this Agreement or the
transactions contemplated hereby. 
 19. Waiver. No provision of this Agreement can be amended or waived except by a separate
writing signed, executed and delivered by you, Parent and Salix expressly amending or 

  
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Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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waiving such provision. The rights and remedies of the parties hereto are cumulative and not alternative. Neither the failure nor any delay by any party hereto in exercising any right, power or
privilege under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement can be discharged by any one party, in whole or in part, by a waiver or renunciation of the claim or right, unless in writing signed by the other
parties hereto; (b) no waiver that may be given by any party hereto will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on any party will be deemed to be a waiver of any obligation of
such party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement. 

20. GOVERNING LAW; WAIVER OF JURY TRIAL. 

(a) THE VALIDITY, INTERPRETATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF DELAWARE WITHOUT REGARD TO THE DELAWARE CHOICE OF LAW RULES. 
 (b) EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY CLAIM, ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. EACH
PARTY (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY CLAIM, ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 20(b). 

21. Consent to Jurisdiction. Each party hereto irrevocably and unconditionally submits to the exclusive jurisdiction and venue
of the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware lacks jurisdiction, then the applicable Delaware state court), or if under applicable law exclusive jurisdiction of any claim, action, suit or
proceeding arising out of this Agreement or any transaction contemplated hereby is vested in the federal courts, then the United States District Court for the District of Delaware, for purposes of any claim, action, suit or proceeding arising out of
this Agreement or any transaction contemplated hereby. Each party hereto hereby waives, and agrees not to assert in any such claim, action, suit or proceeding, to the fullest extent permitted by applicable law, any claim that (a) such party is
not personally subject to the jurisdiction of such courts; (b) such party and such party’s property is immune from any legal process issued by such courts; or (c) any claim, 

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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action, suit or proceeding commenced in such courts is brought in an inconvenient forum. Each party hereto further agrees that (i) service of any process by United States registered mail (or
any substantially similar form of mail) to such Party’s address set forth in Section 22 hereof shall be effective service of process for any claim, action, suit or proceeding with respect to any matters to which it has submitted to
jurisdiction in this Section 21 or otherwise; and (ii) nothing herein shall affect the right to effect service of process in any other manner permitted by law. 

22. Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to you: 

To the most recent address on file with the Company 

with a copy (not constituting notice) to: 

Williams & Connolly LLP 

725 Twelfth Street, NW 

Washington, D.C. 20005 

Attention: F. Whitten Peters, Esq. 

If to Parent, Salix, or the Company: 

Salix Pharmaceuticals, Ltd. 

8510 Colannade Center Drive 

Raleigh, NC 27615 
 Attention:
General Counsel 
 with a copy (not constituting notice) to: 

Cadwalader, Wickersham & Taft LLP 

One World Financial Center 
 New
York, NY 10281 
 Attention: Christopher Cox, Esq. 

or to such other address as any party hereto shall have furnished to the other parties hereto in writing in accordance herewith. Notice and communications
shall be effective when actually received by the addressee. 
 23. Non-Public Information. You hereby acknowledge that you are
aware that the securities laws of the United States generally prohibit any person who has material non-public information about a company from, among other things, (a) purchasing or selling securities of such company or securities convertible
into such securities on the basis of such information; or (b) communicating such information to any other person or entity under circumstances in which 

  
 8510 Colonnade Center
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 -11- 

 

 
  

 
it is reasonably foreseeable that such person or entity may purchase or sell such securities or securities convertible into such securities. Accordingly, you agree that you will not make any
purchase or sale of, or otherwise consummate any transactions involving, Parent securities or securities convertible into Parent securities while in possession of material non-public information regarding the Company, nor will you communicate such
information in a manner that violates the securities laws of the United States (regardless of whether such communication would be permitted elsewhere in this Agreement.). If you consummate a transaction involving Parent securities (or securities
convertible into Parent securities), you will file (or cause to be filed) any and all reports or notifications that may be required under Section 16 of the Securities and Exchange Act of 1934, as amended. 

24. Miscellaneous. 

(a) This Agreement is binding upon and will inure to the benefit of (i) you and your personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, legatees and assigns; and (ii) Parent and Salix and their respective successors and assigns. 

(b) The headings in this Agreement are inserted for convenience of reference only and will not be a part of or control or affect the meaning
of any provision of this Agreement. 
 (c) It is intended that the provisions of this Agreement comply with Section 409A, and all
provisions of this Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. Neither you nor any of your creditors or beneficiaries shall have the right to
subject any deferred compensation (within the meaning of Section 409A) payable under this Agreement to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under
Section 409A, any deferred compensation (within the meaning of Section 409A) payable to you or for your benefit under this Agreement may not be reduced by, or offset against, any amount owing by you to the Company. If, at the time of your
separation from service (within the meaning of Section 409A), (i) you are a “specified employee” (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time); and
(ii) the Company shall make a good faith determination that an amount payable under this agreement constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the
six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then the Company shall not pay such amount on the otherwise scheduled payment date, but shall instead accumulate such amount and pay
it, without interest, on the first business day after such six-month period. For purposes of Section 409A, each payment hereunder will be deemed to be a separate payment as permitted under Treasury Regulation Section 1.409A-2(b)(2)(iii).
Except as specifically permitted by Section 409A, the benefits and reimbursements provided to you under this Agreement during any calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant Section of
this Agreement in any other calendar year, and the 

  
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right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit. Further, reimbursement payments shall be made to you as soon as practicable following the date
that the applicable expense is incurred, but in no event later than the last day of the calendar year following the calendar year in which the underlying expense is incurred. 

(d) All payments made to you or on your behalf under this Agreement will be reduced by any amount that the Company is required by law to
withhold in advance payment of your federal, state and local income, wage and employment tax liability. 
 (e) This Agreement may be
executed in counterparts (including by facsimile or by PDF), and by the parties hereto in separate counterparts, each of which shall be deemed to be an original, and all of which taken together shall constitute one and the same agreement (and all
signatures need not appear on any one counterpart), and this Agreement shall become effective when one or more counterparts has been signed and delivered by each of the parties hereto. 

[Remainder of page intentionally left blank.] 

  
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Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
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 If the foregoing accurately reflects our agreement, please sign and return to us the enclosed
duplicate copy of this letter. 
  

					
	SALIX PHARMACEUTICALS, INC.
		
	By:	 	 /s/ WILLIAM C. BERTRAND

		 	Name:	 	William C. Bertrand
		 	Title:	 	General Counsel
	
	SALIX PHARMACEUTICALS, LTD.
		
	By:	 	 /s/ WILLIAM C. BERTRAND

		 	Name:	 	William C. Bertrand
		 	Title:	 	General Counsel

  

	
	Accepted and Agreed
	as of the date first written above:
	
	 /s/ CAROLYN J. LOGAN

	Carolyn J. Logan

  
 8510 Colonnade Center
Drive, Raleigh, NC 27615 www.salix.com T• 919.862.1000 F• 919.862.1095 
 -14-Exhibit 10.1 BJL Employment Agreement

EMPLOYMENT AGREEMENT
THIS AGREEMENT is made, effective as of January 1, 2015, by and between Gibraltar Industries, Inc., a Delaware corporation, with offices at 3556 Lake Shore Road, Buffalo, New York 14219 (the “Company”), and Brian J. Lipke, an individual residing in Derby, New York 14047 (the “Executive”).
RECITALS:
The Executive has been employed as the Chairman of the Board and Chief Executive Officer of the Company pursuant to the terms of an employment agreement made by and between the Executive and the Company and dated December 18, 2013 (such employment agreement being hereinafter the “Current Employment Agreement”). 
The Executive, in consultation with the Board, has decided to relinquish his position as Chief Executive Officer effective as of the date of this Agreement but to continue in the employ of the Company as Executive Chairman and continue to serve as Executive Chairman of the Company’s Board of Directors until May 31, 2015.  Effective June 1, 2015, the Executive will retire from his employment with the Company and will retire from his service as a member of the Company’s Board of Directors. 
The Company and the Executive desire to amend and restate the Current Employment Agreement to set forth in writing the terms and conditions with respect to the Executive’s continued employment with the Company and continued service as Chairman of the Company’s Board of Directors through May 31, 2015.
CONSIDERATION:
NOW, THEREFORE, in consideration of the conditions and covenants set forth in this Agreement, the parties hereto agree as follows:
ARTICLE 1 
Employment and Duties
1.01    Employment.  The Company hereby agrees to continue to employ the Executive as Executive Chairman during the period beginning on the date hereof and, unless terminated earlier as provided for or permitted by this Agreement, ending May 31, 2015, and the Executive hereby agrees to and does hereby accept employment during such period, as Executive Chairman and as and the Chairman of the Company’s Board of Directors.   In connection with the foregoing, the Executive hereby agrees that effective as of the date hereof, he will no longer hold the position of Chief Executive Officer of the Company and he will resign from his position as Chief Executive Officer of each corporation or other entity that is directly or indirectly owned by the Company.  

Notwithstanding the potential for a termination of the Executive’s employment prior to May 31, 2015, it is contemplated that the Executive will continue to be employed by the Company as Executive Chairman and continue to serve as the Chairman of the Company’s Board of Directors through May 31, 2015.  The Executive agrees that in the event his employment with the Company is terminated for any reason whatsoever, effective as of the date of such termination the Executive will be deemed and construed, without any further action on the part of the Executive (including, but not limited to, the execution and delivery of a written resignation letter), to have resigned: (a) from his position as Chairman of the Board of Directors; (b) from his position as Executive Chairman; (c) from all other positions he may hold as an officer or director or member of the management of any corporation or other entity that is directly or indirectly owned by the Company; and (d) from any and all other positions he may hold with the Company or any of the Company’s direct or indirect subsidiaries, whether as an officer or employee or as a member of any committee, board or other executive or administrative body.
1.02    Duties.  During the period of his employment under this Agreement the Executive shall perform such executive duties and responsibilities as may be assigned to him, from time to time, by the Board of Directors of the Company and shall be subject, at all times, to the control of the Company’s Board of Directors. The Executive may become a director or trustee of any corporation or entity that does not constitute a Competitive Operation as described in Section 4.03 hereof; provided that, the Executive will not be permitted to serve as a member of the board of directors of more than three (3) companies whose shares are traded on a nationally recognized stock exchange without first obtaining the approval of the Company’s Board of Directors. The Company shall not require the Executive to perform services hereunder outside the Buffalo, New York metropolitan area with such frequency or duration as would require the Executive to move his residence from the Buffalo, New York area.
1.03    Term.  For purposes of this Agreement, the period beginning on the date hereof and ending on May 31, 2015 or, if earlier, ending on the date the Executive’s employment with the Company is terminated as provided for or permitted by this Agreement is referred to as the “Term”.
ARTICLE 2     
Compensation and Fringe Benefits
2.01    Transitional Salary.  The compensation which shall be paid to the Executive for his continued service during the Term (the “Transitional Salary”) shall be equal to $850,000. The Transitional Salary shall be paid to the Executive in substantially equal installments, less applicable withholding taxes at the same time that the Company 

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issues payroll checks to the employees of the Company’s corporate offices located at 3556 Lake Shore Road, Buffalo, New York.
2.02    Incentive Compensation. During the Term, the Executive shall not be entitled to participate in any annual or long term incentive compensation plans which are available to other members of the Company’s senior management, including, but not limited to the Company’s Management Incentive Compensation Plan (the “MICP”) and the Company’s Long Term Incentive Plan (the “LTIP”).  In addition, during the Term, the Executive shall not have any right to participate in the management stock purchase plan which is available to other members of the Company’s senior management. Notwithstanding the foregoing, the Executive shall be entitled to payment of any amount he would otherwise be entitled to receive under the terms of the MICP with respect to his employment for the Company in 2014 and payment of the amount, if any, of the incentive compensation which is payable to the Executive with respect to his employment for the company in 2014 shall be made to the Executive at the same time that other members of the Company’s senior management receive payment of annual incentive compensation for services rendered in 2014 under the terms of the MICP.  In addition, the Executive shall be entitled to receive payment (either in shares of the Company’s common stock or in cash) with respect to any equity based incentive compensation awards made to the Executive prior to the effective date of this Agreement, whether made to the Executive under the LTIP or otherwise.
2.03    Reimbursement of Expenses. During the Term, the Company shall reimburse the Executive for all reasonable expenses which the Executive may, from time to time, incur on behalf of the Company in the performance of his responsibilities and duties under this Agreement, provided that the Executive accounts to the Company for such expenses in the manner prescribed by the Company.
2.04    401(k) Restoration Plan.  The Company maintains a non-qualified plan of deferred compensation for certain of its executives which is known as the “Gibraltar 401(k) Restoration Plan”, as amended.   Participation in the Gibraltar 401(k) Restoration Plan was frozen effective December 31, 2008.  However, if and to the extent that the Executive has accrued a benefit under the terms of the Gibraltar 401(k) Restoration Plan, the Executive shall be entitled to receive payment of such benefit in accordance with the terms and conditions of the Gibraltar 401(k) Restoration Plan.
2.05    Tax Qualified Plans. During the Term, the Executive shall be entitled to participate in all tax qualified pension, profit sharing, 401(k) or other tax qualified plans maintained, from time to time, by the Company for the employees of the Company who are employed at the Company’s Buffalo, New York corporate offices.

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2.06    Group Welfare Benefits. During the Term, the Executive shall be eligible to participate in the group health and welfare benefits plans and programs which are maintained by the Company for its executive officers who are employed by the Company at its Buffalo, New York corporate offices.. Notwithstanding the foregoing, the Company shall have no obligation to maintain or provide such group health and welfare benefits to the Executive unless the Executive pays to the Company, on a monthly basis, the employee portion of any costs associated with the maintenance and provision of such benefits by the Company to its executive officers who are employed by the Company at its Buffalo, New York corporate offices. 
2.07    Vacation and Other Benefits.   (a)  During the Term, the Executive shall be entitled to paid vacations for such reasonable periods of time as may be prescribed in the Company’s vacation policy in effect for salaried employees employed at the Company’s Buffalo, New York corporate offices.  In addition, except as provided in Section 2.02 hereof, during the Term the Executive shall be entitled to receive all other employment benefits and to participate in such other employee benefit plans as may, from time to time, be provided or maintained by the Company for salaried employees employed at the Company’s Buffalo, New York corporate offices.  
(a)    The Executive is currently a party to a Change in Control Agreement dated as of December 23, 2013 (the “Change in Control Agreement”).  If and to the extent that a Change in Control (as defined in the Change in Control Agreement) occurs during the Term, the Executive shall be entitled to receive any and all benefits provided for by the Change in Control Agreement.  For the avoidance of doubt, if the Executive’s employment is terminated for any reason whatsoever prior to the occurrence of a Change in Control as defined in the Change in Control Agreement, the Change in Control Agreement shall terminate effective on the effective date of the termination of the Executive’s employment and the Company shall have no liability or obligation to the Executive thereunder.
(b)    The Executive is currently a party to a Salary Continuation Agreement with the Company dated as of March 1, 1996 (the “Salary Continuation Agreement”).  For the avoidance of doubt, the Executive shall continue to be entitled to receive any and all payments required to be made to the Executive under the terms of the Salary Continuation Agreement.

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ARTICLE 3     
Termination
3.01    Termination in General.  The period of employment of the Executive under this Agreement may be terminated prior to May 31, 2015, by the Company for Cause (as provided for in Section 3.02 below), by the Company without Cause (as provided in Section 3.03 below), by the Executive (as provided for in Section 3.04 below) or by either the Company or the Executive (as provided for in Section 3.05) in the event that it is determined that the Executive suffers from a Total and Permanent Disability.  In addition, the period of the employment of the Executive shall be terminated upon the death of the Executive prior to May 31, 2015.  In the event that the period of the Executive’s employment under this Agreement is not terminated prior to May 31, 2015, the period of the Executive’s employment under this Agreement shall automatically and terminate and expire, without any further action on the part of the Company or the Executive on June 1, 2015 and, for purposes of this Agreement, the termination of the Executive’s employment effective June 1, 2015 shall be deemed to be a retirement.
3.02    Termination For Cause. The Company may terminate the Executive’s employment hereunder at any time for Cause (as defined below), by delivering to the Executive a written notice of termination setting forth the date on which such termination is to be effective and specifying in reasonable detail the facts and circumstances claimed to provide a basis for the termination.
For purposes of this Agreement, the Company shall have “Cause” to terminate the Executive’s employment hereunder if the Compensation Committee determines (and provides the Executive a written statement of its determination) that the Executive has engaged in egregious acts or omissions which have resulted in material injury to the Company and its business; provided that, the Executive shall not, under any circumstances, be deemed to have engaged in egregious acts or omissions if: (a) the acts or omissions have been committed or omitted by the Executive in connection with the implementation of policies or procedures or strategic initiatives which have been disclosed to the Board of Directors of the Company; and (b) the Board of Directors of the Company has not directed the Executive not to implement any such policies, procedures or strategic initiatives.
3.03    Termination Without Cause. The Company may, at any time on or after the date hereof, terminate the Executive’s employment, without Cause (as “Cause” is defined in Section 3.02 above), by delivering a written notice of termination to the Executive. Upon delivery by the Company to the Executive of a written notice of termination as provided for herein, the Executive’s employment hereunder shall be terminated effective as of the end of the thirty (30) day period beginning on the day following the date the 

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Company delivers the written notice of termination to the Executive or, if earlier, effective as of June 1, 2015.
3.04    Termination by the Executive.  (a)  The Executive may terminate his employment hereunder at any time by delivering a written notice of termination to the Company. Upon delivery by the Executive to the Company of a written notice of termination as provided for herein, the Executive’s employment hereunder shall be terminated effective as of the end of the thirty (30) day period beginning on the day following the date on which the Executive delivers the written notice of termination to the Company or, if earlier, effective as of June 1, 2015.
(a)    For purposes of this Agreement, the Executive’s termination of his employment pursuant to this Section 3.04 shall be deemed to be a “Good Reason Termination” if the reason that the Executive has terminated his employment (which reason shall be specifically set forth in the written notice of termination which is delivered by the Executive to the Company) is that: (i) the Executive has been assigned duties or responsibilities that are substantially inconsistent with the position, duties, responsibilities and status as a Executive Chairman; or (ii) the Company has failed to pay the Executive any installment of the Transitional Salary; or (iii) the Executive is required to move his residence from the Buffalo, New York metropolitan area as a result of a relocation of the Company’s Buffalo, New York corporate offices or a change in the duties of the Executive; or (iv) the Company breaches any of its material obligations under this Agreement; or (v) the Company breaches any of its obligations under this Agreement which is not material, and such breach is not cured by the Company within thirty (30) days following the Company’s receipt of written notice of such breach from the Executive.
3.05    Disability. If, during the period of the Executive’s employment hereunder, it is determined by either the Company or the Executive that the Executive suffers from a Total and Permanent Disability, the party that makes the determination that the Executive suffers from a Total and Permanent Disability shall provide written notice to the other party of such determination and, effective as of the last day of the calendar month in which such written notice is delivered, the Executive’s employment with the Company hereunder shall be deemed to be terminated. For purposes of this Agreement, the Executive shall be deemed to suffer from a Total and Permanent Disability if the Executive’s personal physician certifies in writing that the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

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ARTICLE 4    . 
Confidentiality; Non-Compete Provisions
4.01    Confidentiality. During the period of the Executive’s employment hereunder and for a period of three (3) years following a termination, for any reason whatsoever, of the Executive’s employment hereunder, the Executive agrees that he will not, without the written consent of the Board of Directors of the Company, disclose to any person (other than a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of his duties as an executive of the Company or to a person as required by any order or process of any court or regulatory agency) any material confidential information obtained by the Executive while in the employ of the Company with respect to any management strategies, policies or techniques or with respect to any products, improvements, formulae, designs or styles, processes, customers, methods of distribution, or methods of manufacture of the Company or any of its subsidiaries; provided, however, that confidential information shall not include any information known generally to the public (other than as a result of unauthorized disclosure by the Executive) or any information of a type not otherwise considered confidential by persons engaged in the same business or a business similar to that conducted by the Company.
4.02    Non-Compete. During a period of three (3) years after the date of any termination of the Executive’s employment hereunder, the Executive will not, directly or indirectly, own, manage, operate, control or participate in the ownership, management, operation or control of, or be connected as an officer, employee, partner, director or otherwise with, or have any financial interest in, or aid or assist anyone else in the conduct of, any business which competes with any business conducted by the Company or with any group, division or subsidiary of the Company in any geographic area where such business is being conducted at the time of such termination (any such business, subject to the provisions of Section 4.03 below, being hereinafter referred to as a “Competitive Operation”). Ownership by the Executive of 2% or less of the voting stock of any publicly held Company shall not constitute a violation of this Section 4.02.
4.03    Competitive Operation. For purposes of Section 4.02 hereof: (a) a business shall not be deemed to be a Competitive Operation unless: (i) 10% or more of the consolidated gross sales and operating revenues of the Company is derived from such business; or (ii) 10% or more of the consolidated assets of the Company are devoted to such business; and (b) a business which is conducted by the Company at the time of the Executive’s termination and which subsequently is sold or discontinued by the Company shall not, subsequent to the date of such sale or discontinuance, be deemed to be a Competitive Operation within the meaning of Section 4.02 hereof.

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4.04    Non-solicitation of Employees. During a period of three (3) years after the date of any termination of the Executive’s employment hereunder, the Executive will not, solicit or offer to employ any individuals that are employees of the Company or any of its subsidiaries or wholly owned limited liability companies (including any executive officers of the Company) at the time the Executive’s employment is terminated; provided that, the limitation on the right of the Executive to solicit or offer to employ individuals as contained in this Section shall not apply to any such individuals who, either before or after the termination of the Executive’s employment hereunder, have terminated their employment with the Company, its subsidiaries and its wholly owned limited liability companies.
ARTICLE 5     
Death and Disability Benefits
5.01    Death Benefits.  If: (a) the Executive dies during the Term; then (b) the Company shall cause the beneficiary of the Executive (or, if none, the personal representative of the Executive’s estate) to be paid any benefits payable to the beneficiaries of the Executive on account of the Executive’s death as provided for by the terms of: (i) any life insurance policies maintained by the Company for the benefit of the Executive; (ii) the Gibraltar 401(k) Plan; (iii) the Gibraltar 401(k) Restoration Plan; (iv) any equity based incentive compensation awards granted to the Executive in connection with the LTIP; (v) any awards of restricted stock, restricted stock units, options or other equity type awards granted to the Executive under the terms of the Gibraltar Industries, Inc. 2005 Equity Incentive Plan, as the same may be amended from time to time (hereinafter the “Omnibus Plan”) or otherwise granted to the Executive; and (vi) any tax qualified retirement plans maintained by the Company; and (c) the Company shall continue to pay the regularly scheduled installments of the Transitional Salary pay to the beneficiary of the Executive (or if none, the personal representative of the Executive’s estate) until the expiration of the Term.
5.02    Disability Benefits.  If: (a) the Executive’s employment is terminated as a result of his suffering of a Total and Permanent Disability; then (b) the Company shall cause the Executive to be paid any benefits payable to the Executive on account of his suffering of a Total and Permanent Disability under the terms of: (i) any disability insurance policies maintained by the Company for the benefit of the Executive; (ii) the Gibraltar 401(k) Plan; (iii) the Gibraltar 401(k) Restoration Plan; (iv) any equity based incentive compensation awards granted to the Executive in connection with the LTIP; (v) any awards of restricted stock, restricted stock units, options or other equity type awards granted to the Executive under the Omnibus Plan or otherwise granted to the 

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Executive; and (vi) any tax qualified retirement plans maintained by the Company; and (c) the Company shall continue to pay to the Executive the regularly scheduled installments of the Transitional Salary until the expiration of the Term.
ARTICLE 6     
Severance and Effects of Termination
6.01    Effect of Termination for Cause. In the event the Executive’s employment with the Company is terminated by the Company for Cause (as permitted by Section 3.02 hereof), the Company shall, on the date that the termination of the Executive’s employment becomes effective, pay to the Executive in one lump sum payment, an amount equal to the sum of: (a) any regularly scheduled installments of his Transitional Salary which are accrued and unpaid as of the date the termination of the Executive’s employment becomes effective; and (b) any bonuses accrued for but not yet paid to the Executive for the 2014 fiscal year of the Company.  After the amount required to be paid to the Executive by the preceding sentence has been paid, the Company shall have no further obligation to pay the Executive any additional Transitional Salary, compensation or bonuses and, except as otherwise provided in Section 6.07 and Section 6.08 hereof, no further obligation to pay to or provide the Executive any other benefits. For purposes of this Agreement, regularly scheduled installments of the Executive’s Transitional Salary shall not be deemed to be “accrued” if they are payable at any time after the date on which the termination of the Executive’s employment is effective.
6.02    Effect of Termination Without Cause. In the event that the Executive’s employment is terminated by the Company, without Cause (pursuant to Section 3.03 hereof), at any time on or after the date hereof: (a) the Company shall, on the date that the termination of the Executive’s employment with the Company is effective, pay to the Executive, in one lump sum payment, less applicable withholding taxes, an amount equal to the sum of: (i)  any bonus accrued for the 2014 fiscal year but not yet paid to the Executive; (ii) any regularly scheduled installments of his Transitional Salary which are accrued and unpaid as of the date the termination of the Executive’s employment becomes effective; and (iii) the full amount of any unpaid balance of the Transitional Salary.  After the amounts required to be paid to the Executive by the preceding sentence have been paid, the Company shall have no further obligation to pay the Executive any additional Transitional Salary, compensation or bonuses and, except as otherwise provided in Section 6.06, Section 6.07 and Section 6.08 hereof, no further obligation to pay to or to provide the Executive any other benefits.
6.03    Effect of Termination by the Executive.  (a)  In the event that the Executive’s employment is terminated by the Executive as permitted by Section 3.04 

9

hereof, and the termination is not deemed to be a “Good Reason Termination” (as defined in Section 3.04 hereof), the Company shall, on the date that the termination of the Executive’s employment with the Company is effective, pay to the Executive, in one lump sum payment, an amount equal to the sum of: (i) any regularly scheduled installments of his Transitional Salary which are accrued and unpaid as of the date of the Executive’s termination; and (ii) any bonuses accrued for but not yet paid to the Executive for the 2014 fiscal year of the Company.  After the amount required to be paid to the Executive by the preceding sentence has been paid, the Company shall have no further obligation to pay the Executive any additional Transitional Salary, compensation or bonuses, and, except as otherwise provided by Section 6.07 and Section 6.08 hereof, no further obligation to pay to or provide the Executive any other benefits.
(c)    In the event that the Executive’s employment is terminated by the Executive as permitted by Section 3.04 hereof, and the termination is deemed to be a “Good Reason Termination” (as defined in Section 3.04 hereof): (i) the Company shall, on the date the termination of the Executive’s employment with the Company is effective, pay to the Executive, in one lump sum payment an amount equal to the sum of: (A) any bonus accrued for the 2014 fiscal year but not yet paid to the Executive; (B) any regularly scheduled installments of his Transitional Salary which are accrued and unpaid as of the date the termination of the Executive’s employment is effective; and (C) the full amount of any unpaid balance of the Transitional Salary.  After the amount required to be paid to the Executive by the preceding sentence has been paid, the Company shall have no further obligation to pay the Executive any additional Transitional Salary, compensation or bonuses and, except as otherwise provided in Section 6.06, Section 6.07 and Section 6.08 hereof, no further obligation to pay to or to provide the Executive any other benefits.
6.04    Effect of Termination Due to Disability. In the event that the Executive’s employment with the Company is terminated as a result of his suffering of a Total and Permanent Disability as described in Section 3.05 hereof, the Company shall, on the date that the termination of the Executive’s employment becomes effective, pay to the Executive, in one lump sum payment, an amount equal to the sum of: (i) any bonus accrued for the 2014 fiscal year but not yet paid to the Executive; (ii) any regularly scheduled installments of his Transitional Salary which are accrued and unpaid as of the date the termination of the Executive’s employment as a result of his suffering of a Total and Permanent Disability is effective; (ii) the full amount of the unpaid balance of the Transitional Salary; and (iii) the amount required to be paid to the Executive pursuant to Section 5.02 above. After the amount required to be paid to the Executive by the preceding sentence has been paid, except as otherwise provided in Section 5.02 above and in Section 6.06, Section 6.07 and Section 6.08 hereof, the Company shall have no 

10

further obligation to pay the Executive any additional Base Salary, compensation, bonuses or other benefits.
6.05    Effect of Retirement. In the event that the Executive employment is terminated effective as of June 1, 2015 due to his retirement, the Company shall have no further obligation to pay the Executive any additional Base Salary, compensation or bonuses and, except as otherwise provided in Section 6.06, Section 6.07 and Section 6.08 hereof, no further obligation to pay to or provide the Executive any other benefits.
6.06    Continuation of Group Medical Insurance Coverage. In the event that: (a) the Executive’s employment is terminated: (i) by the Company without Cause (pursuant to Section 3.03); (ii) by the Executive for a reason which constitutes a Good Reason Termination (within the meaning of Section 3.04(b)); (iii) as a result of the suffering by the Executive of a Total and Permanent Disability (pursuant to Section 3.05); or (iv) as a result of the retirement of the Executive at the expiration of the Term; then (b) the Company shall take such action as may be necessary to provide that: (i) beginning on the first day immediately following the date on which the Executive’s employment is terminated for any of the reasons specified in subsection 6.06(a) above, the Executive shall be entitled, subject to the following provisions of this Section 6.06, to continue to participate in the group medical insurance plans which are available to exempt salaried employees employed by the Company at the Company’s corporate headquarters, whether located in Buffalo, New York or elsewhere (including dental insurance and the executive health reimbursement account features of such group medical insurance plans), for the remainder of the Executive’s life; and (ii) the Executive’s spouse shall be entitled, subject to the following provisions of this Section 6.06, to continue to participate in the group medical insurance plans which are available exempt salaried employees employed by the Company at the Company’s corporate headquarters, whether located in Buffalo, New York or elsewhere, for the remainder of her life.  Notwithstanding the foregoing, the Company shall have no obligation to permit the Executive and his spouse to participate in such group medical insurance plans unless the Executive pays to the Company, on a monthly basis, the employee portion of any costs associated with the maintenance and provision of such benefits by the Company to exempt salaried employees employed by the Company at the Company’s corporate headquarters (or such greater or lesser amount as may, from time to time, be required to be contributed by exempt salaried employees employed by the Company at the of the Company’s corporate headquarters toward the cost of maintaining and providing such benefits to such employees).
6.07    Obligations Which Survive Termination.  Nothing in this Agreement shall be deemed to limit the Executive’s rights to receive or the obligation of the Company to pay or provide for the Executive and his beneficiaries any retirement or other benefits 

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accrued by the Executive at any time under the terms of any retirement plans maintained by the Company which are subject to the requirements of the Employee Retirement Income Security Act of 1974, as amended, or otherwise intended to satisfy the requirements of Section 401 of the Internal Revenue Code of 1986, as amended (the “Code”).  In addition, notwithstanding anything to the contrary contained in this Agreement, in the event that the Executive’s employment is terminated, for any reason whatsoever, the Company shall continue to be obligated to pay the Executive the full amount accrued for his benefit under the terms of the Gibraltar 401(k) Restoration Plan.
6.08    Amendment of Outstanding Equity Awards.  (a)  On April 1, 2005, the Company granted the Executive 150,000 restricted stock units under the terms of the Omnibus Plan as a supplement to the retirement benefits which are available to the Executive under the retirement plans and programs which the Executive is entitled to participate in (such award being hereinafter referred to as the “Retirement RSU Award”).   The Company has also granted the Executive an award of restricted stock units in 2011 under the terms of the Omnibus Plan to carry into effect a long term incentive compensation award under the LTIP (such award being hereinafter referred to as the “LTIP Award”). The Company and the Executive intend that the terms of the Retirement RSU Award and the LTIP Award will be amended by this Section 6.08 to provide for issuance to the Executive of shares of common stock of the Company which would not otherwise be issuable to the Executive upon certain terminations of the Executive’s employment.  Accordingly, notwithstanding the termination of the Executive’s employment, the Company shall continue to be obligated to issue shares of common stock of the Company to the Executive (or, in the case of the Executive’s death, to the Executive’s beneficiary) under the terms of the Retirement RSU and the Award LTIP Award, in each case, as such awards are amended by the provisions of this Section 6.08.
(a)    Notwithstanding anything to the contrary contained in the Omnibus Plan or the Retirement RSU Award, the Company and the Executive hereby agree that the Retirement RSU Award shall, by this Section 6.08(b), be deemed and construed to be amended to the full extent necessary to provide that: (i)  the Restricted Units (as defined in the Retirement RSU Award) awarded to the Executive under the terms of the Retirement RSU Award shall not be forfeited by the Executive for any reason whatsoever; and (ii) the Restrictions (as defined in the Retirement RSU Award) on the Restricted Units awarded to the Executive under the Retirement RSU Award shall lapse on the earlier of: (A) the date of the Executive’s death; (B) the end of the six (6) month period which begins on the first day following the date the Executive’s employment with the Company is terminated, by the Company or by the Executive, for any reason whatsoever, including, but not limited to, a termination by the Company “for cause” (as defined in the Retirement RSU Award) and any termination initiated by the Executive.  

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Except as provided by the preceding provisions of this Section 6.08(b), the terms of the Retirement RSU Award shall remain in full force and effect.
(b)    Notwithstanding anything to the contrary contained in the Omnibus Plan or in the LTIP Award, the Company and the Executive hereby agree that the LTIP Award shall, by this Section 6.08(c), be deemed and construed to be amended to the full extent necessary to provide that: (i) if the Executive’s employment with the Company is terminated by the Executive under circumstances which constitute a Good Reason Termination within the meaning of Section 3.04(b) hereof, the Restrictions (as defined in the LTIP Award) on the Restricted Units (as defined in the LTIP Award) which have not lapsed as of the date the Executive’s employment is terminated, shall lapse on the earlier of: (A) the date of the Executive’s death; and (ii) the end of the six (6) month period which begins on the first day following the date the Executive’s employment is terminated by the Executive under circumstances which cause such termination to be a Good Reason Termination within the meaning of Section 3.04(b) hereof; and (ii) the Executive’s employment with the Company shall only be deemed and construed to have been terminated by the Company “for cause” if the Executive’s employment with the Company is terminated for “Cause” as defined above in Section 3.02 hereof (it being the intent that the “for cause” standard contained in each of the LTIP Award shall be the same as the “Cause” standard contained in this Agreement). Except as provided by the preceding provisions of this Section 6.08(c), the terms of the LTIP Award shall remain in full force and effect.
ARTICLE 7     
Miscellaneous
7.01    Amendments. This Agreement may not be amended or modified orally, and no provision hereof may be waived, except in a writing signed by the parties hereto.
7.02    Assignment. This Agreement cannot be assigned by either party hereto except with the written consent of the other.
7.03    Prior Agreements. This Agreement shall supersede and replace any and all prior agreements between the Company and the Executive with respect to the subject matter hereof, whether express or implied, and including specifically, the Current Employment Agreement. Notwithstanding the foregoing, this Agreement shall not be deemed to supersede, replace, amend or otherwise modify the terms of: (a) the Change in Control Agreement which agreement shall remain in full force and effect until terminated as described in Section 2.07(e); (b) the Salary Continuation Agreement; and (c) except as otherwise specifically provided by Section 6.08 hereof, the terms of the Retirement RSU 

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Award or the LTIP Award. Except as specifically provided herein, nothing contained in this Agreement shall be construed to constitute a waiver by the Executive or his beneficiaries of any rights or claims under any existing pension or retirement plans of the Company.
7.04    Binding Effect. This Agreement shall be binding upon and inure to the benefit of the personal representatives and successors in interest of the Executive and any successors in interest of the Company.
7.05    Applicable Law. This Agreement shall be governed and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed wholly within such State except with respect to the internal affairs of the Company and its respective stockholders, which shall be governed by the General Company Law of the State of Delaware.
7.06    Notices. All notices and other communications given pursuant to this Agreement shall be deemed to have been properly given or delivered if hand-delivered, or if mailed, five (5) business days following the deposit of any such notice in the U.S. mail system, certified mail or registered mail, postage prepaid, addressed to the Executive at the address first above written or if to the Company, at its address first above written. From time to time, any party hereto may designate by written notice any other address or party to which such notice or communication or copies thereof shall be sent.
7.07    Severability of Provisions. In case any one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby and this Agreement shall be interpreted as if such invalid, illegal or unenforceable provision was not contained herein.
7.08    409A Savings Clause. If and to the extent that any provision of this Agreement would result in the payment or deferral of compensation in a manner which does not comply with the provisions of Section 409A of the Code and the regulations promulgated thereunder, such provisions shall, to the maximum extent possible, be construed and interpreted in a manner which will cause such provisions to be implemented in a manner which complies with the applicable requirements of Section 409A and the regulations promulgated thereunder so as to avoid subjecting the Executive to taxation under Section 409A(a)(i)(A) of the Code.
7.09    Headings. The headings of the Sections and Articles of this Agreement are inserted for convenience only and shall not constitute a part hereof or affect in any way the meaning or interpretation of this Agreement.

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

/s/ Brian J. Lipke        
Brian J. Lipke

GIBRALTAR INDUSTRIES, INC.

By: /s/ Paul M. Murray                    
Paul M. Murray                        
SVP, Human Resources and 
Organizational Development 

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