Document:

Exhibit 10.5

Exhibit 10.5

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (“Agreement”), entered into as of January 1, 2010 (the “Effective Date”),
by and between Impax Laboratories, Inc., a Delaware corporation (the “Company”), and Charles V.
Hildenbrand (the “Executive”).

WITNESSETH:

WHEREAS, the Executive possesses unique personal knowledge, experience and expertise
concerning the business and operations conducted by the Company;

WHEREAS, the Company desires to continue to employ the Executive, and the Executive desires to
continue to be employed by the Company, upon the terms and subject to the conditions set forth in
this Agreement; and

WHEREAS, effective as of the Effective Date, the Company and the Executive desire to enter
into this Agreement as to the terms and conditions of the Executive’s continued employment with the
Company.

NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1.     EMPLOYMENT AND DUTIES

1.1 Term of Employment. The Executive’s initial term of employment under this
Agreement shall commence on the Effective Date and shall continue until December 31, 2012 (the
“Initial Term”), unless further extended or earlier terminated as provided in this Agreement. This
Agreement will automatically be renewed for single one-year periods unless written notice of
non-renewal is provided by either party at least 90 days prior to the end of the Initial Term or
the successive one-year period then in effect or unless earlier terminated as provided in this
Agreement. Non-renewal of this Agreement after December 31, 2012 shall not be considered a
Termination of Employment under section 5, nor shall the expiration of this Agreement be considered
a Termination of Employment under section 5. The period of time between the Effective Date and the
termination of the Executive’s employment under this Agreement or the expiration of this Agreement,
whichever is earlier, shall be referred to herein as the “Term.”

1.2 General.

1.2.1 During the Term, the Executive shall have the title of Senior Vice President, Operations
of the Company and shall have general supervision of the Company’s manufacturing operations as
assigned by Chief Executive Officer of the Company and such other authorities, duties and
responsibilities as may from time to time be delegated to him by the Chief Executive Officer. The
Executive shall faithfully and diligently discharge his duties hereunder and use his best efforts
to implement the policies established by the Board of Directors of the
Company (the “Board”) from time to time. During the Term, the Executive shall report to the
Chief Executive Officer.

 

 

 

1.2.2 The Executive shall devote all of his business time, attention, knowledge and skills
faithfully, diligently and to the best of his ability, in furtherance of the business and
activities of the Company; provided, however, that nothing in this Agreement shall
preclude the Executive from devoting reasonable periods of time required for:

(i) serving as a director or member of a committee of up to two (2) organizations or
corporations that do not, in the good faith determination of the Board, compete with the Company or
otherwise create, or could create, in the good faith determination of the Board, a conflict of
interest with the business of the Company;

(ii) delivering lectures, fulfilling speaking engagements, and any writing or publication
relating to his area of expertise; provided, however, that any fees, royalties or
honorariums received therefrom shall be promptly turned over to the Company;

(iii) engaging in professional organization and program activities;

(iv) managing his personal passive investments and affairs; and

(v) participating in charitable or community affairs;

provided that such activities do not materially, individually or in the aggregate, interfere with
the due performance of his duties and responsibilities under this Agreement or create a conflict of
interest with the business of the Company, as determined in good faith by the Board.

1.2.3 The Executive shall obtain a comprehensive medical examination every two years during
the Term, and the Company shall reimburse the Executive the cost thereof to the extent not
reimbursed by health insurance.

1.3 Reimbursement of Expenses. During the Term, the Company shall pay the reasonable
expenses incurred by the Executive in the performance of his duties hereunder, including, without
limitation, those incurred in connection with business related travel or entertainment, or, if such
expenses are paid directly by the Executive, the Company shall promptly reimburse him for such
payments, provided that the Executive properly accounts for such expenses in accordance with the
Company’s business expense reimbursement policy. To the extent any such reimbursements (and any
other reimbursements of costs and expenses provided for herein) are includable in the Executive’s
gross income for Federal income tax purposes, all such reimbursements shall be made no later than
March 15 of the calendar year next following the calendar year in which the expenses to be
reimbursed are incurred.

2.     COMPENSATION

2.1 Base Salary. During the Term, the Executive shall be entitled to receive a base
salary at the annual rate of $340,000, subject to increase or decrease, as determined by the Board
or its Compensation Committee from time to time in its discretion, payable in accordance with the
payroll practices of the Company (the “Base Salary”).

 

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2.2 Target Bonuses. In addition to Base Salary, during the Term the Executive shall
be eligible to receive an annual cash incentive bonus based upon a percentage of Base Salary and
attainment of goals established in writing by the Board or its Compensation Committee at the
beginning of each year (the “Target Bonus”) for each completed calendar year (subject to Section
5.4 hereof) of the Company. Such bonus shall be paid within 2-1/2 months following the end of the
calendar year to which it relates.

2.3 Options and Stock Awards. During the Term, the Executive shall be eligible to
receive grants of stock options and restricted stock in such amounts and subject to such terms as
determined by the Compensation Committee in its sole discretion.

2.4 Additional Compensation. During the Term, in addition to the foregoing, the
Executive shall be eligible to receive such other compensation as may from time to time be awarded
him by either the Board or the Compensation Committee in its sole discretion.

3.     PLACE OF PERFORMANCE

In connection with his employment by the Company, the Executive shall be based at the
Company’s principal executive offices in Hayward, California.

4.     EMPLOYEE BENEFITS

During the Term, the Executive shall continue to be entitled to vacation generally made
available to executive personnel of the Company and to participate in and have the benefit of all
group life, disability, hospital, surgical and major medical insurance plans and programs and other
employee benefit plans and programs as generally are made available to executive personnel of the
Company, as such benefit plans or programs may be amended or terminated in the sole discretion of
the Board and with the concurrence of the Compensation Committee, from time to time.

5.     TERMINATION OF EMPLOYMENT

5.1 General. The Executive’s employment under this Agreement may be terminated
without any breach of this Agreement only on the following circumstances:

5.1.1 Death. The Executive’s employment under this Agreement shall terminate upon his
death.

5.1.2 Disability. If the Executive suffers a Disability (as defined below), the
Company may terminate the Executive’s employment under this Agreement upon 30 days prior written
notice; provided that the Executive has not returned to full time performance of his duties during
such 30-day period. For purposes of this Agreement, “Disability” shall mean the Executive’s
inability to perform his duties and responsibilities hereunder, with or without reasonable
accommodation, due to any physical or mental illness or incapacity, which condition either (i) has
continued for a period of 180 days (including weekends and holidays) in any consecutive 365-day
period, or (ii) is projected by the Board in good faith after consulting with a doctor selected by
the Company and consented to by the Executive (or, in the event of the Executive’s incapacity, his
legal representative), such consent not to be unreasonably withheld,
that the condition is likely to continue for a period of at least six consecutive months from
its commencement.

 

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5.1.3 Good Reason. The Executive may terminate his employment under this Agreement
for Good Reason (as defined below) at any time on or prior to the 60th day after the occurrence of
any of the Good Reason events set forth in the following sentence. For purposes of this Agreement,
“Good Reason” shall mean the occurrence of any of the following events without the Executive’s
consent and which is not cured by the Company upon written notice by the Executive, such notice to
have been provided by the Executive within 30 days of any such event having occurred:

(i) any action or inaction by the Company constituting a material breach of the Agreement by
the Company;

(ii) a material diminution of the authorities, duties or responsibilities of the Executive set
forth in Section 1.2 above (other than temporarily while the Executive is physically or mentally
incapacitated and unable to properly perform such duties, as determined by the Board in good
faith);

(iii) the loss of any of the titles of the Executive with the Company set forth in Section 1.2
above;

(iv) a material reduction by the Company in the Base Salary or in any of the percentages of
Base Salary payable as a Target Bonus, but, except in the case of a reduction following a Change in
Control (as defined below), not including (a) a reduction in Base Salary or in any of the
percentages of Base Salary payable as a Target Bonus which is consistent with the reduction in Base
Salary or in any of the percentages of Base Salary payable as a Target Bonus imposed on all senior
executives of the Company or (b) a reduction in Base Salary or in any of the percentages of Base
Salary payable as a Target Bonus based on the results of peer benchmark data obtained by the Board
and after approval of the Board;

(v) the relocation of the Executive to an office more than 50 miles from its current location;

(vi) the assignment to the Executive of duties or responsibilities that are materially
inconsistent with any of his duties and responsibilities set forth in Section 1.2 hereof;

(vii) a material change in the reporting structure set forth in Section 1.2.1 hereof; or

(viii) the failure of the Company to obtain the assumption in writing of its obligation to
perform this Agreement by any successor in connection with a sale or other disposition by the
Company of all or substantially all of the Company’s assets or businesses within 10 days after such
sale or other disposition.

 

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5.1.4 Without Good Reason. The Executive may voluntarily terminate his employment
under this Agreement without Good Reason upon written notice by the Executive to
the Company at least 60 days prior to the effective date of such termination (which
termination the Company may, in its sole discretion, make effective earlier than the date set forth
in the Notice of Termination (as defined below)).

5.1.5 Cause. The Company may terminate the Executive’s employment under this
Agreement at any time for Cause (as defined below). For purposes of this Agreement, termination
for “Cause” shall mean termination of the Executive’s employment because of the occurrence of any
of the following as determined in good faith by the Board:

(i) the willful and continued failure by the Executive to substantially perform his
obligations under this Agreement (other than any such failure resulting from the Executive’s
incapacity due to a Disability); provided, however, that the Company shall have
provided the Executive with a Notice of Termination specifying such failure and the Executive shall
have been afforded at least 15 days within which to cure same;

(ii) the indictment of the Executive for, or his conviction of or plea of guilty or nolo
contendere to, a felony or any other crime involving moral turpitude or dishonesty;

(iii) the Executive’s willful misconduct in the performance of his duties hereunder (including
theft, fraud, embezzlement, and securities law violations or violation of the Company’s Code of
Conduct or other written policies); or

(iv) the Executive’s willful misconduct other than in the performance of his duties for the
Company (including theft, fraud, embezzlement, and securities law violations) that is actually or
potentially materially injurious to the Company, monetarily or otherwise.

For purposes of this Section 5.1.5, no act or failure to act on the part of the Executive shall be
considered “willful,” unless done, or omitted to be done, without reasonable belief that his action
or omission was in, or not opposed to, the best interest of the Company (including its reputation).
Prior to any termination for Cause, the Company shall provide the Executive with a Notice of
Termination specifying the event constituting Cause and shall give the Executive the opportunity to
appear before the Board to present his views on the Cause event. If, after such hearing, the
majority of the full Board (excluding the Executive) does not support such termination, the Notice
of Termination shall be rescinded. After providing the notice in the foregoing sentence, the Board
may suspend the Executive with full pay and benefits until a final determination pursuant to this
Section has been made.

5.1.6 Without Cause. The Company may terminate the Executive’s employment under this
Agreement without Cause immediately upon written notice by the Company to the Executive, other than
for death or Disability.

5.2 Notice of Termination. Any termination of the Executive’s employment by the
Company or by the Executive (other than termination by reason of the Executive’s death) shall be
communicated by written Notice of Termination to the other party of this Agreement. For purposes
of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide the basis for such termination.

 

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5.3 Date of Termination. The “Date of Termination” shall mean (a) if the termination
is the result of the Executive’s death, the date of his death, (b) if the termination is pursuant
to Section 5.1.2 hereof, 30 days after the Notice of Termination is given (provided that the
Executive shall not have returned to the performance of his duties on a full-time basis during such
30-day period), (c) if the termination is pursuant to Section 5.1.5 or Section 5.1.3 hereof, the
date specified in the Notice of Termination after the expiration of any applicable cure period, (d)
if the termination is pursuant to Section 5.1.4 hereof, the date specified in the Notice of
Termination which shall be at least 60 days after the Notice of Termination is given, or such
earlier date as the Company shall determine in its sole discretion, and (e) if the termination is
pursuant to Section 5.1.6 hereof, the date on which the Notice of Termination is given.

5.4 Compensation Upon Termination.

5.4.1 Termination for Cause or without Good Reason. If the Executive’s employment
shall be terminated by the Company for Cause or by the Executive without Good Reason, the Executive
shall receive from the Company: (a) any earned but unpaid Base Salary through the Date of
Termination, paid in accordance with the Company’s standard payroll practices; (b) any Target Bonus
earned but unpaid for a prior fiscal year, paid in accordance with Section 2.2 (including payment
timing); (c) reimbursement for any unreimbursed expenses properly incurred and paid in accordance
with Section 1.3 through the Date of Termination; (d) payment for any accrued but unused vacation
time in accordance with Company policy; (e) all stock options and restricted stock previously
granted to the Executive that have vested in accordance with the terms of such grants; and (f) such
vested accrued benefits, and other payments, if any, as to which the Executive (and his eligible
dependents) may be entitled under, and in accordance with the terms and conditions of, the employee
benefit arrangements, plans and programs of the Company as of the Date of Termination, other than
any severance pay plan (such amounts and benefits set forth in clauses (a) though (f) being
referred to hereinafter as the “Amounts and Benefits”), and the Company shall have no further
obligation with respect to this Agreement other than as provided in Sections 8 and 9 hereof. Any
stock options and restricted stock previously granted to the Executive that have not vested in
accordance with the terms of their grants as of the Date of Termination shall be forfeited as of
the Date of Termination.

5.4.2 Termination without Cause or For Good Reason. If, prior to the expiration of
the Term, the Executive resigns from his employment hereunder for Good Reason or the Company
terminates the Executive’s employment hereunder without Cause (other than a termination by reason
of death or Disability), and Section 5.4.3 does not apply, then the Company shall pay or provide
the Executive the Amounts and Benefits and, subject to Section 5.4.8:

(i) Subject to Section 9.9.2, an amount equal to the sum of (x) the balance of the Base Salary
due under this Agreement or one times the Base Salary as then in effect (without taking into
account any reduction therein that constitutes a basis for Good Reason), whichever is the greater,
plus (y) an amount equal to one times the average of the Target Bonus the Executive received from
the Company for all fiscal years completed during the Term, with the aggregate amount due paid in
equal installments on the Company’s normal payroll dates for a period of 12 months from the Date of
Termination in accordance with the
normal payroll practices of the Company, with each such payment deemed to be a separate
payment for the purposes of Code Section 409A (as defined below); and

 

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(ii) the continuation of all benefits for 12 months from the Date of Termination.

In addition, subject to Section 5.4.8, the vesting of all unvested stock options and restricted
stock previously granted to the Executive shall be accelerated by six months, and any such stock
options, notwithstanding any provision to the contrary in the option or the plan pursuant to which
the option was granted, shall remain exercisable for a period of six months following the Date of
Termination.

5.4.3 Termination Following Change in Control. Anything contained herein to the
contrary notwithstanding, in the event the Executive resigns from his employment hereunder for Good
Reason or the Company terminates the Executive’s employment hereunder without Cause (other than a
termination by reason of death or Disability) within 60 days preceding or 12 months following a
Change in Control (as defined below), the Company shall pay or provide the Executive the Amounts
and Benefits and, subject to Section 5.4.8, a change-in-control payment as follows:

(i) subject to Section 9.9.2, an amount equal to the sum of (x) the balance of the Base Salary
due under this Agreement or one and three quarters times the Base Salary as then in effect (without
taking into account any reduction therein that constitutes a basis for Good Reason), whichever is
the greater, plus (y) an amount equal to one and three quarters times the average of the Target
Bonus the Executive received from the Company for all fiscal years completed during the Term, with
the aggregate amount due paid in equal installments on the Company’s normal payroll dates for a
period of 12 months from the Date of Termination in accordance with the normal payroll practices of
the Company, with each such payment deemed to be a separate payment for the purposes of Code
Section 409A (as defined below); and

(ii) the continuation of all benefits for 24 months from the Date of Termination.

In addition, subject to Section 5.4.8, the vesting of all unvested stock options and restricted
stock previously granted to the Executive shall be accelerated to the Date of Termination, and any
such stock options, notwithstanding any provision to the contrary in the option or the plan
pursuant to which the option was granted, shall remain exercisable for a period of 12 months
following the Date of Termination.

5.4.4 For purposes of this Agreement, a “Change in Control” shall be deemed to occur upon any
of the following events, provided that such an event is a Change in Control Event within the
meaning of Code Section 409A (as defined below): (a) any “person” as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than
the Company, any trustee or other fiduciary holding securities under any employee benefit plan of
the Company, or any company owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of the common stock), becoming the beneficial
owner (as defined in Rule 13d-3 under the

 

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Exchange Act), directly or indirectly, of securities of the Company representing more than 50%
of the combined voting power of the Company’s then outstanding securities; (b) during any period of
12 consecutive months, the individuals who, at the beginning of such period, constitute the Board,
and any new director whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors then still in office
who either were directors at the beginning of the 12-month period or whose election or nomination
for election was previously so approved, cease for any reason to constitute at least a majority of
the Board; (c) a merger or consolidation of the Company with any other corporation or other entity,
other than a merger or consolidation that would result in the voting securities of the Company
outstanding immediately prior thereto (and held by persons that are not affiliates of the acquirer)
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation; provided, however, that a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no person (other than
those covered by the exceptions in clause (a) of this Section 5.4.4) acquires more than 50% of the
combined voting power of the Company’s then outstanding securities shall not constitute a Change in
Control; or (d) the consummation of a sale or other disposition by the Company of all or
substantially all of the Company’s assets, including a liquidation, other than the sale or other
disposition of all or substantially all of the assets of the Company to a person or persons who
beneficially own, directly or indirectly, more than 50% of the combined voting power of the
outstanding voting securities of the Company immediately prior to the time of the sale or other
disposition.

5.4.5 Termination upon Death. In the event of the Executive’s death, the Company
shall pay or provide to the Executive’s estate: (i) the Amounts and Benefits and (ii) a Pro Rata
Bonus, in accordance with Section 2.2. In addition, (A) all of the then remaining unvested
restricted stock previously granted to the Executive shall immediately become vested on the Date of
Termination and shall be distributed to the Executive’s estate within 60 days of the Date of
Termination and (B) the portion of the unvested stock options previously granted to the Executive
that are scheduled to vest in the calendar year of the Executive’s death shall immediately become
vested on the certification of the Compensation Committee based on the achievement of the
performance goals for such year, calculated through the Date of Termination, and shall be
distributed to the Executive’s estate 60 days after the Date of Termination. After giving effect
to the foregoing, any portion of the stock options that remain unvested on the certification
following the Executive’s death shall be forfeited.

5.4.6 Termination upon Disability. In the event the Company terminates the
Executive’s employment hereunder for reason of Disability, the Company shall pay or provide to the
Executive: (i) the Amounts and Benefits, (ii) a Pro Rata Bonus and (iii) medical benefits for six
months. In addition, subject to Section 5.4.8, (A) 50% of the unvested restricted stock previously
granted to the Executive shall immediately become vested on the Date of Termination and shall be
distributed to the Executive as provided in, and subject to, Sections 5.4.8 and 9.9.2 and (B) the
portion of the unvested stock options previously granted to the Executive that are scheduled to
vest in the calendar year the Date of Termination occurs shall immediately become vested on the
certification of the Compensation Committee based on the achievement of the performance goals for
such year, calculated through the Date of Termination, and shall be

 

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distributed to the Executive as provided in, and subject to, Sections 5.4.8 and 9.9.2. After
giving effect to the foregoing, any portion of the restricted shares and stock options that remain
unvested on the certification following the Date of Termination shall be forfeited as of the Date
of Termination.

5.4.7 No Mitigation or Offset. The Executive shall not be required to mitigate the
amount of any payment provided for in this Section 5.4 by seeking other employment or otherwise,
nor shall the amount of any payment provided for in this Section 5.4 be reduced by any compensation
earned by the Executive as the result of employment by another employer or business or by profits
earned by the Executive from any other source at any time before and after the Date of Termination.

5.4.8 Release. Notwithstanding any provision to the contrary in this Agreement, the
Company’s obligation to pay or provide the Executive with the payments and benefits under Sections
5.4.2 and 5.4.3 (other than the Amounts and Benefits), and any distributions with respect to the
restricted stock and stock options under Sections 5.4.2, 5.4.3 and 5.4.6, shall be conditioned on
the Executive’s execution and failure to revoke a waiver and general release in a form consistent
with Exhibit A hereto (subject to such changes as may be necessary at the time of execution in
order to make such release enforceable) (the “Release”). The Company shall provide the Release to
the Executive within seven days following the applicable Date of Termination. In order to receive
the payments and benefits under Sections 5.4.2 and 5.4.3 (other than the Amounts and Benefits) and
the distributions with respect to the restricted stock and stock options under Sections 5.4.2,
5.4.3 and 5.4.6, the Executive will be required to execute and deliver the Release within 21 days
after the date it is provided to him and not to revoke it within seven days following such
execution and delivery. Notwithstanding anything to the contrary contained herein, (i) all payments
delayed pursuant to this Section, except to the extent delayed pursuant to Section 9.9.2, shall be
paid to the Executive in a lump sum on the first Company payroll date on or following the 60th day
after the Date of Termination, and any remaining payments due under this Agreement shall be paid or
provided in accordance with the normal payment dates specified for them herein and (ii) all
distributions with respect to the restricted stock and stock options delayed pursuant to this
Section, except to the extent delayed pursuant to Section 9.9.2, shall be distributed to the
Executive on the 60th day after the Date of Termination.

6.     INSURABILITY; RIGHT TO INSURE

The Company shall have the right to maintain key man life insurance in its own name covering
the Executive’s life in an amount of up to $50,000,000.00. The Executive shall fully cooperate in
the procuring of such insurance, including submitting to any required medical examination and by
completing, executing and delivering such applications and other instrument in writing as may be
reasonably required by any insurance company to which application for insurance may be made by the
Company.

 

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7.     CONFIDENTIALITY; NON-COMPETITION; NON-SOLICITATION; NON-DISPARAGEMENT;
COOPERATION

7.1 The Company and the Executive acknowledge that the services to be performed by the
Executive under this Agreement are unique and extraordinary and, as a result of such
employment, the Executive shall be in possession of Confidential Information (as defined
below) relating to the business practices of the Company and its subsidiaries and affiliates
(collectively, the “Company Group”). The term “Confidential Information” shall mean any and all
information (oral and written) relating to the Company Group, or any of their respective
activities, or of the clients, customers or business practices of the Company Group, other than
such information which (i) is generally available to the public or within the relevant trade or
industry, other than as the result of breach of the provisions of this Section 7.1, or (ii) the
Executive is required to disclose under any applicable laws, regulations or directives of any
government agency, tribunal or authority having jurisdiction in the matter or under subpoena or
other process of law. The Executive shall not, during the Term or at any time thereafter, except
as may be required in the course of the performance of his duties hereunder (including pursuant to
Section 7.6 below) and except with respect to any litigation or arbitration involving this
Agreement, including the enforcement hereof, directly or indirectly, use, communicate, disclose or
disseminate to any person, firm or corporation any Confidential Information acquired by the
Executive during, or as a result of, his employment with the Company, without the prior written
consent of the Company. Without limiting the foregoing, the Executive understands that Executive
shall be prohibited from misappropriating any trade secret of the Company Group or of the clients
or customers of the Company Group acquired by the Executive during, or as a result of, his
employment with the Company, at any time during or after the Term.

7.2 Upon the termination of the Executive’s employment for any reason all Company Group
property that is in the possession of the Executive, including all documents, records, drug
formulations, notebooks, equipment, price lists, specifications, programs, customer and prospective
customer lists and other materials that contain Confidential Information that are in the possession
of the Executive, including all copies thereof, shall be promptly returned to the Company.
Anything to the contrary herein notwithstanding, the Executive shall be entitled to retain (i)
papers and other materials of a personal nature, including photographs, correspondence, personal
diaries, calendars and rolodexes, personal files and phone books, (ii) information showing his
compensation or relating to reimbursement of expenses, (iii) information that he reasonably
believes may be needed for tax purposes and (iv) copies of plans, programs and agreements relating
to his employment, or termination thereof, with the Company.

7.3 Except in the case of a Termination pursuant to Section 5.4.3 following a Change in
Control, the Executive hereby agrees that he shall not, during the Term and for a period of 12
months thereafter, directly or indirectly, engage or have an interest in, or render any services
to, any business (whether as owner, manager, operator, licensor, licensee, lender, partner,
stockholder, joint venturer, employee, consultant or otherwise) (such activities hereinafter
referred to collectively as “Engaging”) that competes directly with the Company. Notwithstanding
the foregoing, nothing herein shall prevent the Executive from (i) owning securities in a publicly
traded entity whose activities compete with those of the Company (or any member thereof), provided
that such securities holdings are not greater than five percent of the equity ownership in such
entity; (ii) Engaging in the business of the ownership and licensing (as licensor) of trademarks
and brands if the products or services carrying such trademarks and brands do not compete with the
products or services carrying the trademarks and brands owned and licensed (as licensor) by the
Company, or that the Company is actively planning to own or license (as licensor), on the Date of
Termination; or (iii) Engaging in an operating company
(including ownership of securities of such operating company’s holding company) with annual
revenues not in excess of $10,000,000.

 

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7.4 The Executive shall not, except in the furtherance of the Executive’s duties hereunder,
directly or indirectly, individually or on behalf of any other person, firm, corporation or other
entity, (i) during the Term (except in the good faith performance of his duties) and for a period
of 24 months thereafter, solicit, aid or induce any employee, representative or agent of the
Company to leave such employment or retention or to accept employment with or render services to or
with any other person, firm, corporation or other entity unaffiliated with the Company or hire or
retain any such employee, representative or agent, or take any action to materially assist or aid
any other person, firm, corporation or other entity in identifying, hiring or soliciting any such
employee, representative or agent, (ii) during the Term (except in the good faith performance of
his duties) and for a period of 12 months thereafter, solicit, aid or induce any customer of the
Company to purchase goods or services then sold by the Company from another person, firm,
corporation or other entity or assist or aid any other persons or entity in identifying or
soliciting any such customer or (iii) during the Term (except in the good faith performance of his
duties) and for a period of 24 months thereafter, interfere in any manner with the relationship of
the Company and any of its vendors. An employee, representative or agent shall be deemed covered
by this Section while so employed or retained by the Company and for six months thereafter.
Anything to the contrary herein notwithstanding, the following shall not be deemed a violation of
this Section 7.4: (a) the Executive’s solicitation of the Company’s customers and/or vendors in
connection with, and directly related to, his Engaging in a business that complies with Sections
7.3(ii) or (iii); (b) the Executive’s responding to an unsolicited request for an employment
reference regarding any former employee of the Company from such former employee, or from a third
party, by providing a reference setting forth his personal views about such former employee; or
(c) if an entity with which the Executive is associated hires or engages any employee of the
Company, if the Executive was not, directly or indirectly, involved in hiring or identifying such
person as a potential recruit or assisting in the recruitment of such employee. For purposes
hereof, the Executive shall be deemed to have been involved “indirectly” in soliciting, hiring or
identifying an employee only if the Executive (x) directs a third party to solicit or hire the
Employee, (y) identifies an employee to a third party as a potential recruit or (z) aids, assists
or participates with a third party in soliciting or hiring an employee.

7.5 At no time during or within five years after the Term shall the Executive, directly or
indirectly, disparage the Company Group or any of the Company Group’s past or present employees,
directors, products or services. The Company shall advise its senior officers and the members of
the Board (while serving in such capacities) not to disparage the Executive during the period.
Notwithstanding the foregoing, nothing in this Section 7.5 shall prevent any person from making any
truthful statement to the extent (i) necessary to rebut any untrue public statements made about him
or her; (ii) necessary with respect to any litigation, arbitration or mediation involving this
Agreement and the enforcement thereof; (iii) required by law or by any court, arbitrator, mediator
or administrative or legislative body (including any committee thereof) with jurisdiction over such
person; or (iv) made as good faith competitive statements in the ordinary course of business.

 

-11-

 

7.6 Upon the receipt of reasonable notice from the Company (including the Company’s outside
counsel), the Executive shall, while employed by the Company and thereafter, respond and provide
information with regard to matters of which the Executive has knowledge as a result of the
Executive’s employment with the Company and will provide reasonable assistance to the Company Group
and its representatives in defense of any claims that may be made against the Company Group (or any
member thereof), and will provide reasonable assistance to the Company Group in the prosecution of
any claims that may be made by the Company Group (or any member thereof), to the extent that such
claims may relate to matters related to the Executive’s period of employment with the Company (or
any predecessors). Any request for such cooperation shall take into account the Executive’s
personal and business commitments. The Executive shall promptly inform the Company (to the extent
the Executive is legally permitted to do so) if the Executive is asked to assist in any
investigation of the Company Group (or any member thereof) or their actions, regardless of whether
a lawsuit or other proceeding has then been filed with respect to such investigation. If the
Executive is required to provide any services pursuant to this Section 7.6 following the Term, upon
presentation of appropriate documentation, the Company shall promptly reimburse the Executive for
reasonable out-of-pocket travel, lodging, communication and duplication expenses incurred in
connection with the performance of such services and in accordance with the Company’s expense
policy for its senior officers, and for reasonable legal fees to the extent the Board in good faith
believes that separate legal representation is reasonably required. The Executive’s entitlement to
reimbursement of such costs and expenses, including legal fees, pursuant to this Section 7.6, shall
in no way affect the Executive’s rights, if any, to be indemnified and/or advanced expenses in
accordance with the Company’s (or any of its subsidiaries’) corporate or other organizational
documents, any applicable insurance policy, and/or in accordance with this Agreement.

7.7 Without intending to limit the remedies available to the Company, the Executive
acknowledges that a breach of any of the covenants contained in this Section 7 may result in
material and irreparable injury to the Company, or its affiliates or subsidiaries, for which there
is no adequate remedy at law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of such a breach or threat the Company shall be entitled to a
temporary restraining order and/or a preliminary or permanent injunction restraining the Executive
from engaging in activities prohibited by this Section 7 or such other relief as may be required
specifically to enforce any of the covenants in this Section 7. If for any reason it is held that
the restrictions under this Section 7 are not reasonable or that consideration therefor is
inadequate, such restrictions shall be interpreted or modified to include as much of the duration
and scope identified in this Section as will render such restrictions valid and enforceable.

7.8 In the event of any violation of the provisions of this Section 7, the Executive
acknowledges and agrees that: (a) the post-termination restrictions contained in this Section 7
shall be extended by a period of time equal to the period of such violation, it being the intention
of the parties hereto that the running of the applicable post-termination restriction period shall
be tolled during any period of such violation; (b) any severance payable which remains unpaid or
other benefits yet to be received under Section 5.4.2 or 5.4.3 shall be forfeited by the Executive;
and (c) any vested options not exercised as of the date of any violation of the provisions of this
Section 7 shall be forfeited.

 

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8.     INDEMNIFICATION; DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE

During the Term and thereafter, the Company shall indemnify and hold harmless the Executive
and his heirs and representatives as, and to the extent, provided in the Company’s by-laws. During
the Term and thereafter, the Company shall also cover Executive under the Company’s directors’ and
officers’ liability insurance on the same basis as it covers other senior executive officers and
directors of the Company.

9.     MISCELLANEOUS

9.1 Notices. All notices or communications hereunder shall be in writing, addressed
as follows (or to such other address as either party may have furnished to the other in writing by
like notice):

	 	 	 	 	 
	 

	 	To the Company:
	 	Impax Laboratories, Inc.
	 

	 	 	 	121 New Britain Boulevard
	 

	 	 	 	Chalfont, PA 18914
	 

	 	 	 	Attn: Chairman, Compensation Committee

	 	 	 	To the Executive, at the last address for the
Executive on the books of the Company.

All such notices shall be conclusively deemed to be received and shall be effective (i) if
sent by hand delivery, upon receipt, (ii) if sent by telecopy or facsimile transmission, upon
confirmation of receipt by the sender of such transmission, (iii) if sent by overnight courier, one
business day after being sent by overnight courier, or (iv) if sent by registered or certified
mail, postage prepaid, return receipt requested, on the fifth day after the day on which such
notice is mailed.

9.2 Severability. Each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Agreement is
held to be prohibited by or invalid under applicable law, such provision will be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Agreement.

9.3 Binding Effect; Benefits. Executive may not delegate his duties or assign his
rights hereunder. No rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company other than pursuant to a merger or consolidation in which the Company is
not the continuing entity, or a sale, liquidation or other disposition of all or substantially all
of the assets of the Company, provided that the assignee or transferee is the successor to all or
substantially all of the assets or businesses of the Company and assumes the liabilities,
obligations and duties of the Company under this Agreement, either contractually or by operation of
law. The Company further agrees that, in the event of any disposition of its business and assets
described in the preceding sentence, it shall use its best efforts to cause such assignee or
transferee expressly to assume the liabilities, obligations and duties of the Company hereunder.
For the purposes of this Agreement, the term “Company” shall include the Company and, subject to
the foregoing, any of its successors and assigns. This Agreement shall inure to
the benefit of, and be binding upon, the parties hereto and their respective heirs, legal
representatives, successors and permitted assigns.

 

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9.4 Modification of Termination Benefits. In the event that RiskMetrics Group or a
proxy advisory firm of similar stature recommends that stockholders do not vote in favor of the
election of any of the Company’s Directors because of any provision of sections 5 or 7 of this
Agreement, the Executive shall, upon request of the Company, enter into an amendment of this
Agreement modifying or eliminating such provision to the extent necessary to cause withdrawal of
such recommendation.

9.5 Entire Agreement. This Agreement, including the Exhibits hereto, represent the
entire agreement of the parties with respect to the subject matter hereof and shall supersede any
and all previous contracts, arrangements or understandings between the Company and the Executive.
This Agreement (including any of the Exhibits hereto) may be amended at any time by mutual written
agreement of the parties hereto. In the case of any conflict between any express term of this
Agreement and any statement contained in any plan, program, arrangement, employment manual,
memorandum or rule of general applicability of the Company, this Agreement shall control.

9.6 Withholding. The payment of any amount pursuant to this Agreement shall be
subject to applicable withholding and payroll taxes, and such other deductions as may be required
by applicable law.

9.7 Governing Law. This Agreement and the performance of the parties hereunder shall
be governed by the internal laws (and not the law of conflicts) of the State of Delaware.

9.8 Arbitration. Any dispute or controversy arising under or in connection with this
Agreement or the Executive’s employment with the Company, other than injunctive relief under
Section 7.7 hereof, shall be settled exclusively by arbitration, conducted before a single
arbitrator in San Francisco, California (applying Delaware law) in accordance with the Commercial
Arbitration Rules and Procedures of the American Arbitration Association then in effect. The
decision of the arbitrator will be final and binding upon the parties hereto. Judgment may be
entered on the arbitrator’s award in any court having jurisdiction. The parties acknowledge and
agree that in connection with any such arbitration and regardless of outcome (a) each party shall
pay all its own costs and expenses, including without limitation its own legal fees and expenses,
and (b) joint expenses shall be borne equally among the parties. EACH PARTY WAIVES RIGHT TO TRIAL
BY JURY.

9.9 Section 409A of the Code.

9.9.1 It is intended that the provisions of this Agreement comply with Section 409A of the
Internal Revenue Code and the regulations and guidance promulgated thereunder (collectively “Code
Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with
the requirements for avoiding taxes or penalties under Code Section 409A. If any provision of this
Agreement (or of any award of compensation, including equity compensation or benefits) would cause
the Executive to incur any additional tax or interest under Code Section 409A, the Company shall,
upon the specific request of the Executive, use its

 

-14-

 

reasonable business efforts to in good faith reform such provision to comply with Code Section
409A; provided, that to the maximum extent practicable, the original intent and economic benefit to
the Executive and the Company of the applicable provision shall be maintained, but the Company
shall have no obligation to make any changes that could create any additional economic cost or loss
of benefit to the Company. The Company shall timely use its reasonable business efforts to amend
any plan or program in which the Executive participates to bring it in compliance with Code Section
409A. Notwithstanding the foregoing, the Company shall have no liability with regard to any
failure to comply with Code Section 409A so long as it has acted in good faith with regard to
compliance therewith.

9.9.2 A termination of employment shall not be deemed to have occurred for purposes of any
provision of this Agreement providing for the payment of any amounts or benefits upon or following
a termination of employment unless such termination is also a “Separation from Service” within the
meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references
to a “resignation,” “termination,” “termination of employment” or like terms shall mean Separation
from Service. If the Executive is deemed on the Date of Termination to be a “specified employee,”
within the meaning of that term under Section (a)(2)(B) of Code Section 409A (“Code Section
409(a)(2)(B)”)and using the identification methodology selected by the Company from time to time,
or if none, the default methodology, then with regard to any payment, the providing of any benefit
or any distribution of equity made subject to this Section 9.9.2, to the extent required to be
delayed in compliance with Code Section 409A(a)(2)(B), and any other payment, the provision of any
other benefit or any other distribution of equity that is required to be delayed in compliance with
Code Section 409A(a)(2)(B), such payment, benefit or distribution shall not be made or provided
prior to the earlier of (i) the expiration of the six-month period measured from the date of the
Executive’s Separation from Service or (ii) the date of the Executive’s death. On the first day of
the seventh month following the date of Executive’s Separation from Service or, if earlier, on the
date of his death, (x) all payments delayed pursuant to this Section 9.9.2 (whether they would have
otherwise been payable in a single sum or in installments in the absence of such delay) shall be
paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due
under this Agreement shall be paid or provided in accordance with the normal payment dates
specified for them herein and (y) all distributions of equity delayed pursuant to this Section
9.9.2 shall be made to the Executive. In addition to the foregoing, to the extent required by Code
Section 409A(a)(2)(B), prior to the occurrence of both a Disability termination as provided in
Section 5.1.2 hereof and the Executive’s becoming “disabled” under Code Section 409A, the payment
of any compensation to the Executive under this Agreement shall be suspended for a period of six
months commencing at such time that the Executive shall be deemed to have had a Separation from
Service because either (A) a sick leave ceases to be a bona fide sick leave of absence, or (B) the
permitted time period for a sick leave of absence expires (an “SFS Disability”), without regard to
whether such SFS Disability actually results in a Disability termination. Promptly following the
expiration of such six-month period, all compensation suspended pursuant to the foregoing sentence
(whether it would have otherwise been payable in a single sum or in installments in the absence of
such suspension) shall be paid or reimbursed to the Executive in a lump sum. On any delayed
payment date under this Section 9.9.2, there shall be paid to the Executive or, if the Executive
has died, to his estate, in a single cash lump sum together with the payment of such delayed
payment, interest on the aggregate amount of such delayed payment at the Delayed Payment Interest
Rate (as defined below) computed from the

 

-15-

 

date on which such delayed payment otherwise would have been made to the Executive until the
date paid. For purposes of the foregoing, the “Delayed Payment Interest Rate” shall mean the short
term Applicable Federal Rate as of the business day immediately preceding the payment date for the
applicable delayed payment.

9.9.3 With regard to any provision herein that provides for reimbursement of costs and
expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to
reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another
benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided
during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind
benefits to be provided, in any other taxable year, provided that the foregoing clause (ii) shall
not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b)
of the Internal Revenue Code and the regulations and guidance promulgated thereunder solely because
such expenses are subject to a limit related to the period the arrangement is in effect and (iii)
such payments shall be made on or before the last day of the Executive’s taxable year following the
taxable year in which the expense was incurred.

9.10 Survivorship. Except as otherwise expressly set forth in this Agreement, upon
the expiration of the Term, the respective rights and obligations of the parties shall survive such
expiration to the extent necessary to carry out the intentions of the parties as embodied in this
Agreement. This Agreement shall continue in effect until there are no further rights or
obligations of the parties outstanding hereunder and shall not be terminated by either party
without the express prior written consent of both parties.

9.11 Counterparts. This Agreement may be executed in counterparts (including by
electronic transmission) which, when taken together, shall constitute one and the same agreement of
the parties.

9.12 Company Representations. The Company represents and warrants to the Executive
that (i) the execution, delivery and performance of this Agreement (and the agreements referred to
herein) by the Company has been fully and validly authorized by all necessary corporate action,
(ii) the officer signing this Agreement on behalf of the Company is duly authorized to do so, (iii)
the execution, delivery and performance of this Agreement does not violate any applicable law,
regulation, order, judgment or decree or any agreement, plan or corporate governance document to
which the Company is a party or by which it is bound and (iv) upon execution and delivery of this
Agreement by the Executive and the Company, it shall be a valid and binding obligation of the
Company enforceable against it in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the
enforcement of creditors’ rights generally.

[Signature Page Follows]

 

-16-

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and the
Executive has hereunto set his hand, as of the Signing Date.

	 	 	 	 	 
	 	Impax Laboratories, Inc.

 	 
	 	By:  	/s/ Robert L. Burr
 	 
	 	 	Name:  	Robert L. Burr 	 
	 	 	Title:  	Chairman, Compensation Committee 	 
	 
	 	 	 
	 	                                              /s/ Charles V. Hildenbrand
 	 
	 	Charles V. Hildenbrand 	 
	 	 	 

 

-17-

 

	 	 	 	 	 

EXHIBIT A

Form of General Release and Waiver

This General Release and Waiver (this “Release”) is entered into effective as of
                    
     ,
20     , by
                    
(the “Executive”) in favor of Impax Laboratories, Inc. (the
“Company”).

1. Confirmation of Termination. The Executive’s employment with the Company is
terminated as of
                   ,
20     
(the “Termination Date”). Except as set forth in the Employment
Agreement (as defined below), the Executive acknowledges that the Termination Date is the
termination date of his employment for purposes of participation in and coverage under all benefit
plans and programs sponsored by or through the Company. The Executive acknowledges and agrees that
the Company shall not have any obligation to rehire the Executive, nor shall the Company have any
obligation to consider him for employment, after the Termination Date. The Executive agrees that
he will not seek employment with the Company at any time in the future.

2. Resignation. Effective as of the Termination Date, the Executive hereby resigns as
an officer and director of the Company and any of its affiliates and from any such positions held
with any other entities at the direction or request of the Company or any of its affiliates. The
Executive agrees to promptly execute and deliver such other documents as the Company shall
reasonably request to evidence such resignations. In addition, the Executive hereby agrees and
acknowledges that the Termination Date shall be date of his termination from all other offices,
positions, trusteeships, committee memberships and fiduciary capacities held with, or on behalf of,
the Company or any of its affiliates.

3. Termination Benefits. Upon the Executive’s execution and delivery of this Release
and failure to revoke it within the time specified in Section 10 below, then, subject to Section 9
below, the Executive will be entitled to the payments and benefits (subject to taxes and all
applicable withholding requirements) set forth under Section [5.4.2] [5.4.3] of the Employment
Agreement effective as of January 1, 2009 between the Company and the Executive (the “Employment
Agreement”) and the distribution with respect to the restricted stock and stock options set forth
under Section [5.4.2] [5.4.3] [5.4.6] of the Employment Agreement (the “Termination Benefits”).
Notwithstanding anything herein to the contrary, the Amounts and Benefits (as defined in the
Employment Agreement) shall not be subject to the Executive’s execution of this Release. The
Executive acknowledges and agrees that the Termination Benefits exceed any payment, benefit, or
other thing of value to which the Executive might otherwise be entitled under any policy, plan or
procedure of the Company and/or any agreement between the Executive and the Company, except as
provided above.

4. General Release and Waiver. In consideration of the Termination Benefits, and for
other good and valuable consideration, receipt of which is hereby acknowledged, the Executive for
himself and for his heirs, executors, administrators, trustees, legal representatives and assigns
(collectively, the “Releasors”), hereby releases, remises, and acquits the Company and its
affiliates and all of their respective past, present and future parent entities, subsidiaries,
divisions, affiliates and related business entities, any of their successors and assigns, assets,

 

A-1

 

employee benefit plans or funds, and any of their respective past and/or present directors,
officers, fiduciaries, agents, trustees, administrators, managers, supervisors, shareholders,
investors, employees, legal representatives, agents, counsel and assigns, whether acting on behalf
of the Company or its affiliates or, in their individual capacities (collectively, the “Releasees”
and each a “Releasee”) from any and all claims, known or unknown, which the Releasors have or may
have against any Releasee arising on or prior to the date of this Release and any and all liability
which any such Releasee may have to the Releasors, whether denominated claims, demands, causes of
action, obligations, damages or liabilities arising from any and all bases, however denominated,
including but not limited to (a) any claim under the Age Discrimination in Employment Act of 1967,
the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Civil
Rights Act of 1964, the Civil Rights Act of 1991, Section 1981 of the Civil Rights Act of 1866, the
Equal Pay Act, the Immigration Reform and Control Act of 1986, the Employee Retirement Income
Security Act of 1974, (excluding claims for accrued, vested benefits under any employee benefit or
pension plan of the Company, subject to the terms and conditions of such plan and applicable law),
and the Sarbanes-Oxley Act of 2002, all as amended; (b) any claim under the California Fair
Employment and Housing Act and any other provision of the California Labor Law, all as amended; (c)
any claim under any other Federal, state, or local law and any workers’ compensation or disability
claims under any such laws; and (d) any claim for attorneys’ fees, costs, disbursements and/or the
like. This Release includes, without limitation, any and all claims arising from or relating to
the Executive’s employment relationship with Company and his service relationship as an officer or
director of the Company or any of its affiliates, or as a result of the termination of such
relationships. The Executive further agrees that the Executive will not file or permit to be filed
on the Executive’s behalf any such claim. Notwithstanding the preceding sentence or any other
provision of this Release, this Release is not intended to interfere with the Executive’s right to
file a charge with the Equal Employment Opportunity Commission (“EEOC”) in connection with any
claim he believes he may have against any Releasee. However, by executing this Release, the
Executive hereby waives the right to recover in any proceeding the Executive may bring before the
EEOC or any state human rights commission or in any proceeding brought by the EEOC or any state
human rights commission on the Executive’s behalf. This Release is for any relief, no matter how
denominated, including, but not limited to, injunctive relief, wages, back pay, front pay,
compensatory damages, or punitive damages. This Release shall not apply to (i) the obligation of
the Company to provide the Executive with the Amounts and Benefits and the Termination Benefits and
any provision relating thereto under the Employment Agreement; (ii) the Executive’s rights to
indemnification from the Company or rights to be covered under any applicable insurance policy with
respect to any liability the Executive incurred or might incur as an employee, officer or director
of the Company including, without limitation, the Executive’s rights under Section 8 of the
Employment Agreement; or (iii) any right the Executive may have to obtain contribution as permitted
by law in the event of entry of judgment against the Executive as a result of any act or failure to
act for which the Executive, on the one hand, and Company or any other Releasee, on the other hand,
are jointly liable.

5. Continuing Covenants. The Executive acknowledges and agrees that he remains
subject to the provisions of Section 7 of the Employment Agreement which shall remain in full force
and effect for the periods set forth therein.

 

A-2

 

6. No Admission. This Release does not constitute an admission of liability or
wrongdoing of any kind by the Company or any other Releasee. This Release is not intended, and
shall not be construed, as an admission that any Releasee has violated any federal, state or local
law (statutory or decisional), ordinance or regulation, breached any contract or committed any
wrong whatsoever against any Releasor.

7. Heirs and Assigns. The terms of this Release shall be binding upon and inure to
the benefit of the parties named herein and their respective successors and permitted assigns.

8. Miscellaneous. This Release will be construed and enforced in accordance with the
laws of the State of Delaware without regard to the principles of conflicts of law. If any
provision of this Release is held by a court of competent jurisdiction to be illegal, void or
unenforceable, such provision shall have no effect; however, the remaining provisions will be
enforced to the maximum extent possible. The parties acknowledge and agree that, except as
otherwise set forth herein, this Release constitutes the complete understanding between the parties
with regard to the matters set forth herein and, except as otherwise set forth herein, supersede
any and all agreements, understandings, and discussions, whether written or oral, between the
parties. No other promises or agreements are binding unless in writing and signed by each of the
parties after the Release Effective Date (as defined below). Should any provision of this Release
require interpretation or construction, it is agreed by the parties that the entity interpreting or
constructing this Release shall not apply a presumption against one party by reason of the rule of
construction that a document is to be construed more strictly against the party who prepared the
document.

9. Knowing and Voluntary Waiver. The Executive acknowledges that he: (a) has
carefully read this Release in its entirety; (b) has had an opportunity to consider it for at least
21 days; (c) is hereby advised by the Company in writing to consult with an attorney of his
choosing in connection with this Release; (d) fully understands the significance of all of the
terms and conditions of this Release and has discussed them with his independent legal counsel, or
had a reasonable opportunity to do so; (e) has had answered to his satisfaction any questions he
has asked with regard to the meaning and significance of any of the provisions of this Release and
has not relied on any statements or explanations made by any Releasee or their counsel; (f)
understands that he has seven days in which to revoke this Release (as described in Section 10)
after signing it and (g) is signing this Release voluntarily and of his own free will and agrees to
abide by all the terms and conditions contained herein.

10. Effective Time of Release. The Executive may accept this Release by signing it
and delivering it to the Company as provided in Section 9.1 of the Employment Agreement within 21
days of his receipt hereof. After executing this Release, the Executive will have seven days (the
“Revocation Period”) to revoke this Release by indicating his desire to do so in writing delivered
to the Company in accordance with Section 9.1 of the Employment Agreement by no later than 5:00
p.m. EST on the seventh day following the date on which he executes and delivers this Agreement.
The effective date of this Agreement shall be the eighth day after the Executive executes and
delivers this Agreement (the “Release Effective Date”). If the last day of the Revocation Period
falls on a Saturday, Sunday or holiday, the last day of the Revocation Period will be deemed to be
the next business day. If the Executive does not execute this Release or exercises his right to
revoke hereunder, he shall forfeit his right to receive any of the
Termination Benefits, and to the extent such Termination Benefits have already been provided,
the Executive agrees that he will immediately reimburse the Company for the amounts of such
payment.

 

A-3

 

IN WITNESS WHEREOF, the Executive has duly executed this Release as of the date first set
forth above.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

 

A-4exv10w1

Exhibit 10.1

AMENDED AND RESTATED

SENIOR MANAGEMENT AGREEMENT

BY AND BETWEEN

HURON CONSULTING GROUP INC.

AND

JAMES H. ROTH

 

 

SENIOR MANAGEMENT AGREEMENT

     AMENDED AND RESTATED SENIOR MANAGEMENT AGREEMENT (the “Agreement”), effective as of July 30,
2009 (the “Effective Date”), by and between Huron Consulting Group Inc., a Delaware corporation
(“Huron”), and James H. Roth (“Executive”).

PRELIMINARY RECITALS

     A. WHEREAS, Huron and its affiliates are engaged in the business of providing diversified
business consulting services (the “Business”). For purposes of this Agreement (except where the
context contemplates otherwise), the term the “Company” shall include Huron, its subsidiaries and
assignees and any successors in interest of the Company and its subsidiaries; and

     B. WHEREAS, Huron Consulting Services LLC (formerly known as Huron Consulting Group LLC) and
Executive previously entered into a Senior Management Agreement effective as of May 15, 2002, as
amended by a First Amendment to Senior Management Agreement effective as of the closing of the
Company’s initial public offering (collectively, such Senior Management Agreement and First
Amendment are referred to as the “Prior Agreement”); and

     C. WHEREAS, the Prior Agreement was amended effective as of June 13, 2008 to reflect changes
required by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”);

     D. WHEREAS, the Company currently employs Executive and desires to continue to employ
Executive from and after the Effective Date, and Executive desires to continue to be so employed by
the Company, as set forth herein, and the parties desire to amend and restate the Prior Agreement,
as amended, as set forth below, which amendment and restatement is intended to incorporate all
prior amendments into one document and to make other technical and conforming changes.

     NOW, THEREFORE, in consideration of the premises, the mutual covenants of the parties
hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

     1. Employment.

          1.1 Title and Duties. The Company agrees to continue to employ Executive, and
Executive agrees to accept such continuing employment with the Company, as Chief Executive Officer
for the Employment Period, in accordance with the terms and conditions of this Agreement. During
the Employment Period, Executive shall (a) have such responsibilities, duties and authorities as
are customarily assigned to such position and shall render such services or act in such capacity
for the Company and its affiliates as the Board of Directors of the Company (the “Board”) shall
from time to time direct, and (b) shall report to the Board. Executive shall perform the duties and
carry out the responsibilities assigned to him, to the best of his ability, in a trustworthy and
businesslike manner for the purpose of advancing the business of the Company and its affiliates.
Executive shall engage in travel as reasonably required in the

 

 

performance of Executive’s duties. Executive acknowledges that Executive’s duties and
responsibilities hereunder will require Executive’s full business time and effort and agrees that,
during the Employment Period, Executive will not engage in any other business activity or have any
business pursuits or interests which materially interfere or conflict with the performance of
Executive’s duties hereunder; provided that Executive may, with the approval of the General Counsel
and the Board, serve on the board of other corporations or charitable organizations and engage in
charitable activities, community affairs, and teaching. Executive shall become a member of the
Board as of November 3, 2009.

          1.2 Employment Period. The employment of Executive under this Agreement shall
continue from and after the Effective Date and shall continue through the third anniversary of the
Effective Date (the “Initial Period”). Commencing on the third anniversary of the Effective Date
and on each anniversary thereafter, the employment of Executive under this Agreement shall
automatically renew and extend for an additional year, unless one of the parties shall deliver to
the other sixty (60) days’ advance written notice of the cessation of such automatic renewal.
“Employment Period” shall mean the Initial Period and any automatic extensions of Executive’s
employment under this Agreement. Notwithstanding anything to the contrary contained herein, the
Employment Period is subject to termination prior to the date of expiration thereof pursuant to
this Section 1.2 and Sections 1.3, 1.4 and 1.5.

          1.3 Termination Upon Death. If Executive dies during the Employment Period,
Executive’s employment shall automatically terminate on the date of Executive’s death.

          1.4 Termination by the Company.

     (a) The Company may terminate Executive’s employment hereunder upon written notice to
Executive as described in Section 10.5. Such termination shall be effective upon the date
notice of such termination is given pursuant to Section 10.5 unless such notice shall
otherwise provide.

     (b) For purpose of this Agreement, “Cause” means the occurrence of any of the following
events, as determined in the reasonable good faith judgment of the Board:

     (i) the failure of Executive to perform Executive’s material duties (unless
such failure relates to any disability, sickness or injury of Executive) which
failure continues for twenty (20) days after the Company has given written notice to
Executive specifying in reasonable detail the manner in which Executive has failed
to perform such duties and affording opportunity to cure;

     (ii) commission by Executive of an act or omission (A) constituting (x) a
felony, (y) dishonesty with respect to the Company or (z) fraud, or (B) that
(x) could reasonably be expected to adversely and materially affect the Company’s
business or reputation, or (y) involves moral turpitude;

     (iii) the breach, non-performance or non-observance of any of the material
terms of this Agreement (other than a breach, non-performance or non-observance
described in clause (i) of this Section 1.4(b)), or any other agreement to which
Executive and the Company are parties, by Executive, if such breach, non-performance
or non-observance shall continue beyond a period of twenty

 

 

(20) days immediately after written notice thereof given by the Company to
Executive; or

     (iv) any breach, non-performance or non-observance of any of Sections 6.3, 6.4,
6.5 or 6.6 of this Agreement; provided, that if such conduct occurs while Executive
is employed hereunder, the Company shall allow Executive an opportunity for a
hearing before the Board prior to any termination of Executive for Cause.

     (c) Executive shall be deemed to have a “Permanent Disability” for purposes of this
Agreement if Executive is eligible to receive benefits under the Company’s long-term
disability plan then covering Executive.

          1.5 Termination by Executive. Except as otherwise provided herein, Executive shall
give sixty (60) days’ notice to the Company prior to the effectiveness of any resignation of
Executive’s employment with the Company. If, (a) the Company (i) gives notice to Executive that,
during the Employment Period, Executive’s primary location of employment with the Company will
change to a location that is more than seventy-five (75) miles from Executive’s primary location of
employment with the Company in Chicago, Illinois, (ii) materially breaches this Agreement, (iii)
materially reduces Executive’s Base Salary (as defined below) or target cash compensation for a
year, (iv) materially diminishes Executive’s position, title, duties or responsibilities with the
Company, or (v) executes a binding agreement committing the Company to a Change of Control (as
defined below) without also committing legally and announcing publicly that Executive shall become
the Chief Executive Officer of the ultimate parent company surviving the Change of Control, (b)
within sixty (60) days following the occurrence of one of the events described in Section 1.5(a),
Executive provides notice to the Company that he intends to resign his employment as a result of
such event, (c) the Company does not cure such event within the thirty (30) day period following
notice from Executive, and (d) Executive resigns his employment within thirty (30) days following
the end of the cure period, then Executive’s employment shall be considered to be on account of
“Good Reason”.

     2. Compensation.

          2.1 Base Salary. As consideration for the services of Executive hereunder, the
Company shall pay Executive an annual base salary of $800,000 (the “Base Salary”), payable in
accordance with the Company’s customary payroll practices as in effect from time to time. The
Board shall perform an annual review of Executive’s compensation based on Executive’s performance
of Executive’s duties and the Company’s other compensation policies, provided that Executive’s Base
Salary shall not be reduced without Executive’s consent unless such reduction is part of a
comparable overall reduction for members of senior management. The term Base Salary shall include
any changes to the Base Salary from time to time.

          2.2 Bonus Programs. Executive shall be eligible for the following:

           (a) For each calendar year Executive shall be eligible for an annual target bonus in
an amount determined by the Compensation Committee of the Board (the “Compensation
Committee”) based on Executive’s performance of Executive’s duties and the Company’s other
compensation policies (the “Target Bonus”), which Target Bonus for any calendar year shall
not be less than 110% of Executive’s Base Salary.

 

 

The actual annual bonus to be paid to Executive for a calendar year (the “Annual
Bonus”) will be based on Company and Executive performance and the applicable targets will
be established within the first 90 days of the year to which the Target Bonus relates.
Subject to the terms and conditions of this Agreement, Executive’s right to any bonus
payable pursuant to this Section 2.2(a) shall be contingent upon Executive being employed
by the Company on the last day of the calendar year for which the bonus is to be paid.

     (b) In 2011, Executive shall be eligible for a long-term incentive award (“LTI
Award”) with an aggregate value of no less than 130% and up to 150% of Executive’s Base
Salary, at the sole discretion of the Compensation Committee. The LTI Award may be
cash-based or equity-based, and may be subject to both time and performance-based
criteria, all as determined by the Compensation Committee.

     3. Equity Awards. Executive shall generally be eligible to participate in Huron’s
equity plans from time to time, with the amount of any equity awards and the terms and conditions
under which they are granted being in the sole discretion of the Compensation Committee based on
Executive’s performance of Executive’s duties and the Company’s other compensation policies. Such
equity awards shall be subject to the terms of the applicable equity incentive plan of the Company
and granting agreement. Subject to terms and conditions established by the Compensation Committee
in the first quarter of 2010, Executive shall be entitled to a special equity grant with a total
aggregate value of $2,400,000, which special equity grant is anticipated to consist of a
combination of restricted stock with a value of not less than $800,000 to be time (and not
performance) vested and performance shares and will be made in calendar year 2010.

     4. Benefits and Expenses.

          4.1 Benefits. During the Employment Period, Executive shall be eligible to
participate in the various health and welfare benefit plans maintained by the Company for its
similarly-situated key management employees from time to time, including but not limited to paid
vacation, medical and dental insurance, and disability and life insurance at levels as are provided
from time to time to similarly-situated executives of the Company.

          4.2 Business Expenses. During the Employment Period, the Company shall reimburse
Executive for all ordinary, necessary and reasonable travel and other business expenses incurred by
Executive in connection with the performance of Executive’s duties hereunder, in accordance with
the Company policy. Such reimbursement shall be made upon presentation of itemized expense
statements and such other supporting documentation as the Company may reasonably require. To the
extent that any such reimbursements are taxable to Executive (“Taxable Reimbursements”), such
reimbursements shall be paid to Executive only if (a) the expenses are incurred and reimbursable
pursuant to a reimbursement plan that provides an objectively determinable nondiscretionary
definition of the expenses that are eligible for reimbursement, and (b) the expenses are incurred
during the Employment Period. With respect to any Taxable Reimbursements, the amount of the
expenses that are eligible for reimbursement during one calendar year may not affect the amount of
reimbursements to be provided in any subsequent calendar year, the reimbursement of an eligible
expense shall be made on or before the last day of the calendar year following the calendar year in
which the expense was incurred,

 

 

and the right to reimbursement of the expenses shall not be subject to liquidation or exchange
for any other benefit.

     5. Compensation After Termination.

          5.1 Termination For Cause; Resignation Without Good Reason. If Executive’s employment
is terminated by the Company for Cause or if Executive resigns his employment other than for Good
Reason during the Employment Period then, except as required by law, the Company shall have no
further obligations to Executive (except payment of the Base Salary accrued through the date of
said termination), and the Company shall continue to have all other rights available hereunder
(including, without limitation, all rights under the Restrictive Covenants at law or in equity).

          5.2 Termination Without Cause; Resignation For Good Reason.

        (a) If Executive’s employment is terminated by the Company without Cause or Executive
resigns for Good Reason, then, subject to the terms and conditions of this Agreement,
Executive shall be entitled to receive the following amounts and benefits:

     (i) Severance pay (“Severance Pay”) in an amount equal to the sum of
Executive’s annual Base Salary and the then prevailing Target Bonus, which Severance
Pay shall be payable to Executive in a lump sum within sixty (60) days following
Executive’s termination of employment;

     (ii) Continuation of medical, dental and vision benefits for twelve (12)
months upon the same terms as exist from time to time for active similarly situated
executives of the Company, which benefits shall be considered part of, and not in
addition to, any coverage required under COBRA;

     (iii) An amount in cash equal to the Annual Bonus that Executive would have
earned for the year of termination or resignation had he remained employed for the
year in which his termination or resignation occurs based on satisfaction of Company
performance targets, multiplied by a fraction, the numerator of which is the number
of completed days of employment by Executive (including the date of termination or
resignation) during the year of termination or resignation and the denominator of
which is 365, which amount will be paid to Executive at the same time that the
annual bonus is otherwise payable to the Company’s executives in accordance with the
annual bonus plan; and

     (iv) Pro rata vesting of any outstanding equity awards granted to Executive
prior to 2010, notwithstanding anything to the contrary that may be delineated in
any equity plan or equity award agreement.

        (b) The Company shall have no other obligations under this Section 5.2 or otherwise
with respect to Executive’s employment from and after the employment termination date, and
the Company shall continue to have all other rights available hereunder (including,
without limitation, all rights under the Restrictive Covenants at law or in equity).

 

 

          5.3 Termination Due To Death, Permanent Disability. If Executive’s employment is
terminated due to Executive’s Permanent Disability or if Executive dies during the Employment
Period, then subject to the terms and conditions of this Agreement (a) Executive or Executive’s
estate, as the case may be, shall be entitled to receive, in addition to any amounts Executive may
be entitled to receive under the Company’s long-term disability plan or other benefit plans,
payment of Base Salary through the date of termination, and (b) Executive and/or Executive’s
eligible dependents shall receive continuation of medical, dental and vision benefits upon the same
terms as exist immediately prior to the termination of employment for similarly-situated active
executives of the Company for the six (6)-month period immediately following the termination of
employment (which benefits shall be considered part of, and not in addition to, any coverage
required under COBRA). The Company shall have no other obligations under this Section 5.3 or
otherwise with respect to Executive’s employment from and after the termination date, and the
Company shall continue to have all other rights available hereunder (including, without limitation,
all rights under the Restrictive Covenants at law or in equity).

          5.4 This Section Intentionally Left Blank

          5.5 Change of Control.

     (a) The provisions of Section 5.2 and 5.3 hereof to the contrary notwithstanding but
subject to the other terms and conditions of this Agreement, if (i) Executive is terminated
by the Company without Cause or Executive resigns his employment for CoC Good Reason
(defined below) in either case during the period commencing on a Change of Control and
ending on the second anniversary of the Change of Control (such two-year period being the
“Protection Period” hereunder), or (ii) Executive reasonably demonstrates that the Company’s
termination of Executive’s employment (or event which, had it occurred following a Change of
Control, would have constituted CoC Good Reason) prior to a Change of Control was
attributable to or intended to facilitate a Change of Control or was at the request of or
instigation of a third party who was taking steps reasonably calculated to effect a Change
of Control (or otherwise in contemplation of a Change of Control) and a Change of Control
actually occurs within twelve (12) months of such termination or resignation of Executive (
a “Qualifying Termination”), then, subject to the terms and conditions of this Agreement,
Executive shall be entitled to receive the following payments and benefits:

     (i) an amount in cash equal to Executive’s Target Bonus for the year of
termination or resignation multiplied by a fraction, the numerator of which is the
number of completed days of employment by Executive (including the date of
termination or resignation) during the year of termination or resignation and the
denominator of which is 365;

     (ii) an amount in cash equal to two times the sum of Executive’s annual Base
Salary and Target Bonus for the year of termination or resignation, and

     (iii) continuation of medical, dental and vision benefits until the second
anniversary of the date of such termination or resignation upon the same terms as
exist for Executive immediately prior to the termination or resignation date

 

 

(which benefits shall be considered part of, and not in addition to, any
coverage required under COBRA).

Following any termination or resignation of Executive’s employment pursuant to this Section
5.5, the Company shall continue to have all other rights available hereunder (including,
without limitation, all rights under the Restrictive Covenants and any restrictive covenants
set forth in any plan, award and agreement applicable to Executive, at law or in equity).
Subject to Executive’s execution of the Release described in Section 5.6, the payments
described in clauses (i) and (ii) (“Change of Control Severance Pay”) shall be paid in a
lump sum within sixty (60) days following Executive’s termination or resignation of
employment (or, in the case of a Qualifying Termination that occurs prior to the Change of
Control, within sixty (60) days following the Change of Control). If the Qualifying
Termination occurs prior to a Change of Control, in addition to the benefits described in
clause (iii) of this Section 5.5(a), Executive shall be paid a lump sum cash payment equal
to the difference between (I) the applicable premium paid by Executive for continuation of
medical benefits under COBRA from the date of the Qualifying Termination through the date of
the Change of Control (the “Pre-CIC Coverage Period”) and (II) the amount of the applicable
premium that would have been paid by Executive for continuation of medical benefits during
the Pre-CIC Coverage Period had the provisions of Section 5.5(a)(iii) been given effect from
the date of the Qualifying Termination, which payment shall be made in a lump sum within
sixty (60) days following the Change of Control. If (and to the extent) that the benefits
provided pursuant to Section 5.5(a)(iii) are taxable to Executive and are subject to Section
409A of the Code, the amount of the expenses that are eligible for reimbursement during one
calendar year may not affect the amount of reimbursements to be provided in any subsequent
calendar year, the reimbursement of an eligible expense shall be made on or before the last
day of the calendar year following the calendar year in which the expense was incurred, and
the right to reimbursement of the expenses shall not be subject to liquidation or exchange
for any other benefit.

     (b) Payments and benefits under Section 5.5(a) shall not be subject to mitigation or
offset, except that medical benefits may be offset by comparable benefits obtained by
Executive in connection with subsequent employment. Nothing in this Section 5.5 is intended
to result in duplication of benefits provided by other provisions of this Agreement.

     (c) Anything set forth in any equity plan, equity award or any other provision of this
Agreement between the Company and Executive to the contrary notwithstanding, all of
Executive’s outstanding equity grants that were awarded at or prior to the time of the
Change of Control shall fully vest upon the occurrence of a Qualifying Termination.

     (d) The Change of Control Severance Pay shall be in lieu of the Severance Pay otherwise
for a termination under Section 5.2 of this Agreement and any other plan or agreement of the
Company, whether adopted before or after the date hereof, which provides severance payments
or benefits. For the avoidance of doubt, Executive shall not be entitled to payments and
benefits under both this Section 5.5 and any other provision of this Section 5 as the result
of his termination of employment.

 

 

     (e) If it is determined that any amount, right or benefit paid or payable (or otherwise
provided or to be provided) to Executive by the Company or any of its affiliates under this
Agreement or any other plan, program or arrangement under which Executive participates or is
a party (collectively, the “Payments”), would constitute an “excess parachute payment”
within the meaning of Section 280G of the Code, subject to the excise tax imposed by Section
4999 of the Code, as amended from time to time (the “Excise Tax”), then the amount of the
Payments payable to Executive under this Agreement shall be reduced (a “Reduction”) to the
extent necessary so that no portion of such Payments payable to Executive is subject to the
Excise Tax.

     All determinations required to be made under this Section 5.5(e) and the assumptions to
be utilized in arriving at such determination, shall be made by an independent, nationally
recognized accounting firm mutually acceptable to the Company and Executive (the “Auditor”);
provided that in the event a Reduction is required, Executive may determine which Payments
shall be reduced in order to comply with the provisions of Section 5.5(e). The Auditor
shall promptly provide detailed supporting calculations to both the Company and Executive
following any determination that a Reduction is necessary. All fees and expenses of the
Auditor shall be paid by the Company. All determinations made by the Auditor shall be
binding upon the Company and Executive.

     (f) For purposes of this Agreement, the term “Change of Control” shall be deemed to
have occurred upon the first to occur of the following events:

     (i) any Person becomes the Beneficial Owner, directly or indirectly, of common
stock or voting securities of Huron (not including in the amounts beneficially owned
by such Person any common stock or voting securities acquired directly from Huron or
its Affiliates) representing 40% or more of the combined voting power of Huron’s
then outstanding securities; or

     (ii) there is consummated a merger or consolidation of Huron or any direct or
indirect subsidiary of Huron with any Person, other than (A) a merger or
consolidation which would result in the voting securities of Huron outstanding
immediately prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving
entity or any parent thereof) at least 50% of the combined voting power of the
securities of Huron or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, (B) a merger or consolidation
effected to implement a recapitalization of Huron (or similar transaction) after
which no Person other than existing security holders is or becomes the Beneficial
Owner, directly or indirectly, of securities of Huron (not including in the amount
Beneficially Owned by such Person any common stock or voting securities acquired
directly from Huron or its Affiliates) representing 50% or more of the combined
voting power of Huron’s then outstanding securities, or (C) a merger or
consolidation of a subsidiary of Huron that does not represent a sale of all or
substantially all of the assets of Huron; or

 

 

     (iii) the shareholders of Huron approve a plan of complete liquidation or
dissolution of Huron (except for a plan of liquidation or dissolution effected to
implement a recapitalization of Huron addressed in (ii) above); or

     (iv) there is consummated an agreement for the sale or disposition of all or
substantially all of the assets of Huron to a Person, other than a sale or
disposition by Huron of all or substantially all of the assets of Huron to an
entity, at least 50% of the combined voting power of the voting securities of which
are owned by shareholders of Huron.

     Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated transactions immediately
following which the record holders of the common stock of Huron immediately prior to such
transaction or series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of Huron immediately
following such transaction or series of transactions.

     For purposes of this Change of Control definition, (I) “Beneficial Owner” shall have the
meaning set forth in Rule 13d-3 under the Exchange Act, (II) “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended from time to time, (III) “Person” shall have the
meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
14(d) thereof, except that such term shall not include (w) Huron or any of Huron’s direct or
indirect subsidiaries, (x) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or any of its Affiliates, (y) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (z) a corporation owned, directly or
indirectly, by the stockholders of Huron in substantially the same proportions as their ownership
of stock of Huron and (IV) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated
under Section 12 of the Exchange Act.

     (g) For purposes of this Section 5.5 (and distinguished from “Good Reason” provided
under certain other circumstances under the Agreement), the term “CoC Good Reason” means the
occurrence of any of the following within the twenty-four (24) month period following a
Change of Control (or prior to a Change of Control in connection with a Qualifying
Termination) without the express written consent of Executive:

     (i) any material breach by the Company of the Agreement;

     (ii) any material adverse change in the status, responsibilities or position of
Executive;

     (iii) any material reduction in Base Salary or Target Bonus, other than in
connection with an across-the-board reduction in Base Salaries applicable in like
proportions to all similarly situated executives of the Company and any direct or
indirect parent of the Company;

     (iv) assignment of duties to Executive that are materially inconsistent with
Executive’s position and responsibilities described in this Agreement, including,
specifically, assignment of a position other than as Chief Executive

 

 

Officer of the ultimate parent surviving company surviving the Change of
Control; and

     (v) requiring Executive to be principally based at any office or location more
than seventy five (75) miles from the current offices of the Company in Chicago,
Illinois.

     Notwithstanding the foregoing provisions of this paragraph (g), Executive’s termination
of employment shall be considered to be on account of CoC Good Reason only if (A) an event
or condition occurs which satisfies the foregoing provisions of this Section 5.5(g), (B)
Executive provides the Company with written notice pursuant to Section 10.5 that he intends
to resign for CoC Good Reason and such written notice includes (I) a designation of at least
one of Section 5.5(g)(i)-(v) (the “Designated Sections”) which Executive believes is the
basis for CoC Good Reason, and (II) specifically describes the events or conditions
Executive is relying upon to satisfy the requirements of the Designated Sections, (C) as of
the thirtieth (30th) day following the Company’s receipt of such notice from
Executive, such events or conditions have not been corrected in all material respects, and
(D) Executive resigns his employment within sixty (60) days after the date on which
Executive first has actual knowledge of the events or conditions upon which Executive relies
upon to satisfy any of the Designated Sections.

          5.6 General Release. Executive acknowledges and agrees that Executive’s right to
receive severance pay and other benefits (including post-termination equity vesting) pursuant to
Section 5.2 and 5.5 of this Agreement
(collectively, the “Severance Benefits”) is contingent upon
Executive’s compliance with the covenants, representations, warranties and agreements set forth in
Section 6 of this Agreement and, except for those payments and benefits required to be made or
provided by law or pursuant to the express terms of a benefit plan or pursuant to the express terms
of this Agreement without a Release (and other than those benefits to be provided upon death), such
Severance Benefits shall be conditioned upon Executive’s execution and acceptance of the terms and
conditions of, and the effectiveness of, a general release in the standard form used by the Company
at the time of Executive’s termination of employment. (the “Release”); provided, however, that such
Release shall not require Executive to relinquish any rights or claims that (a) arise after his
execution of the Release, (b) relate to indemnification or liability insurance pursuant to the
Company’s insurance plans, bylaws or applicable law, or (c) cannot be waived by law. If Executive
fails to comply with the covenants set forth in Section 6 or if Executive fails to execute the
Release or revokes the Release during the seven (7)-day period following his execution of the
Release, then Executive shall not be entitled to any Severance Benefits. The Company shall provide
Executive with the Release within five (5) days following his termination of employment (or, in the
case of any benefits relating to a Qualifying Termination occurring prior to a Change of Control,
within five (5) days following the Change of Control).

     6. Restrictive Covenants and Agreements.

          6.1 Executive’s Acknowledgment. Executive agrees and acknowledges that in order to
assure the Company that it will retain its value and that of the Business as a going concern, it is
necessary that Executive not utilize special knowledge of the Business and its

 

 

relationships with customers to compete with the Company. Executive further acknowledges
that:

     (a) the Company is and will be engaged in the Business during the Employment Period and
thereafter;

     (b) Executive will occupy a position of trust and confidence with the Company, and
during the Employment Period, Executive will become familiar with the Company’s trade
secrets and with other proprietary and Confidential Information concerning the Company and
the Business;

     (c) the agreements and covenants contained in this Section 6 and Sections 7, 8 and 9
are essential to protect the Company and the confidentiality of its Confidential Information
(defined below) and near permanent client relationships as well as goodwill of the Business
and compliance with such agreements and covenants will not impair Executive’s ability to
procure subsequent and comparable employment; and

     (d) Executive’s employment with the Company has special, unique and extraordinary value
to the Company and the Company would be irreparably damaged if Executive were to provide
services to any person or entity in violation of the provisions of this Agreement.

          6.2 Confidential Information. As used in this Section 6, “Confidential Information”
shall mean the Company’s trade secrets and other non-public information relating to the Company or
the Business, including, without limitation, information relating to financial statements, customer
identities, potential customers, employees, suppliers, acquisition targets, servicing methods,
equipment, programs, strategies and information, analyses, marketing plans and strategies, profit
margins and other information developed or used by the Company in connection with the Business that
is not known generally to the public or the industry and that gives the Company an advantage in the
marketplace. Confidential Information shall not include any information that is in the public
domain or becomes known in the public domain through no wrongful act on the part of Executive.
Executive agrees to deliver to the Company at the termination of Executive’s employment, or at any
other time the Company may request, all memoranda, notes, plans, records, reports and other
documents (and copies thereof) relating to the Business or the Company or other forms of
Confidential Information which Executive may then possess or have under Executive’s control.

          6.3 Non-Disclosure. Executive agrees that during employment with the Company and
thereafter, Executive shall not reveal to any competitor or other person or entity (other than
current employees of the Company) any Confidential Information regarding Clients (as defined
herein) that Executive obtains while performing services for the Company. Executive further agrees
that Executive will not use or disclose any Confidential Information of the Company, other than in
connection with Executive’s work for the Company, until such information becomes generally known in
the industry through no fault of Executive.

          6.4 Non-Solicitation of Clients. Executive acknowledges that Executive will learn and
develop Confidential Information relating to the Company’s Clients and relating to the Company’s
servicing of those Clients. Executive recognizes that the Company’s relationships

 

 

with its Clients are extremely valuable to it and that the protection of the Company’s
relationships with its Clients is essential.

     Accordingly, and in consideration of the Company’s employment of Executive and the various
benefits and payments provided in conjunction therewith, Executive agrees that during the
Employment Period and for the longer period (“Restricted Period”) thereafter of (i) the period for
which Executive is entitled to receive severance payments under Section 5.2(a)(i) or, if
applicable, Section 5.5(a)(ii), or (ii) twelve (12) months following any termination of employment
with the Company, Executive will not, whether or not Executive is then self-employed or employed by
another, directly or through another, provide services that are the same or similar to those
services offered for sale and/or under any stage of development by the Company at the time of
Executive’s termination, to any Client of the Company whom Executive:

     (a) obtained as a Client for the Company; or

     (b) consulted with, provided services for, or supervised the provision of services for
during the twelve (12) month period immediately preceding termination of Executive’s
employment; or

     (c) submitted or assisted in the submission of a proposal for the provision of services
during the six (6) month period immediately preceding termination of Executive’s employment.

     “Client” shall mean those persons or firms for whom the Company has either directly or
indirectly provided services within the twenty-four (24)-month period immediately preceding
termination of Executive’s employment and therefore includes both the referral source or entity
that consults with the Company and the entity to which the consultation related. “Client” also
includes those persons or firms to whom Executive has submitted a proposal (or assisted in the
submission of a proposal) to perform services during the six (6) month period immediately preceding
termination of Executive’s employment. For the avoidance of doubt, for purposes of determining the
Restricted Period, the period for which Executive is entitled to receive severance payments shall
be determined based on the period of Base Salary that is to be paid to Executive as severance
payments, regardless of the period over which the severance pay is actually paid.

          6.5 Non-Interference with Relationships. Executive shall not at any time during the
Restricted Period directly or indirectly solicit, induce or encourage (a) any executive or employee
or other personnel (including contractors) of the Company, or (b) any customer, Client, supplier,
lender, professional advisor or other business relation of the Company to leave, alter or cease
his/her/its relationship with the Company, for any reason whatsoever. Executive shall not hire or
assist in the hiring of any executive or employee or other personnel (including contractors) of the
Company for that same time period, whether or not Executive is then self-employed or employed by
another business. Executive shall not at any time directly or indirectly make disparaging remarks
about the Company.

          6.6 Noncompetition. While Executive is employed by the Company, and for the
Restricted Period after Executive’s termination of employment with the Company (whether at the end
of the Employment Period or thereafter) for any reason, Executive agrees that he will not directly
or indirectly engage in, assist, perform services for, establish or open, or have any equity
interest (other than ownership of 5% or less of the outstanding stock of any corporation

 

 

listed on any securities exchange) in any person, firm, corporation, or business entity
(whether as an employee, officer, director, agent, security holder, creditor, consultant, or
otherwise) that engages in the Businesses; provided, however, that for any periods after
Executive’s termination of employment with the Company, the Businesses shall include only those
businesses that were conducted as part of the Businesses at the time of Executive’s termination of
employment.

          6.7 Modification. If any court of competent jurisdiction shall at any time deem that
the term of any Restrictive Covenant is too lengthy, or the scope or subject matter of any
Restrictive Covenant exceeds the limitations imposed by applicable law, the parties agree that
provisions of Sections 6.3, 6.4, 6.5 and 6.6 shall be amended to the minimum extent necessary such
that the provision is enforceable or permissible by such applicable law and be enforced as amended.

          6.8 Representations and Warranties. Executive has made full disclosure to the Company
concerning the existence of, and delivered copies of any documents relating to, any contractual
arrangement (including, but not limited to, any non-compete or non-solicitation agreement) that
Executive has with any current or former employer which agreement purports to be in effect as of
the Effective Date or the dates of Executive’s intended employment with the Company (other than the
Prior Agreement). Executive represents, warrants and covenants to the Company that (a)
Executive is not a party to or bound by any employment agreement, noncompete, nonsolicitation (of
customers or employees), nondisturbance (of customers, employees or vendors), or confidentiality
agreement with any previous employer or any other person or entity that would be violated by
Executive’s acceptance of this position or which would interfere in any material respect with the
performance of Executive’s duties with the Company, and (b) that Executive will not use any
confidential information or trade secrets of any person or party other than the Company in
connection with the performance of Executive’s duties with the Company (except as may be permitted
pursuant to non-disclosure agreements with clients).

     7. Ownership of Intellectual Property. All intellectual property, ideas, inventions,
writings, software and Confidential Information created or conceived by Executive alone or with
others while employed with the Company that relate to the Company’s business or clients or work
assigned to Executive by the Company (collectively, “Materials”) constitute “work made for hire”
and are the exclusive property of the Company. If for any reason any Materials cannot legally
constitute a “work made for hire,” then this Agreement shall operate as an irrevocable assignment
and agreement to assign to the Company all right, title and interest in such Materials. Executive
will promptly disclose to the Company in writing all Materials developed during his employment with
the Company, and Executive will execute such documents as may be necessary to evidence his
assignment(s) of all right, title and interest in Materials to the Company. If Executive claims
ownership in any intellectual property, ideas or inventions that predate his employment with the
Company, then Executive will disclose such claims in writing to the Company’s Human Resources
Department before commencing any work for the Company.

     8. Effect on Termination. If, for any reason, this Agreement shall terminate or
Executive’s employment with the Company shall terminate, then, notwithstanding such termination,
those provisions contained in this Section 8 and Sections 6, 7, 9 and 10 hereof shall survive and
thereafter remain in full force and effect.

 

 

     9. Remedies.

          9.1 Non-Exclusive Remedy for Restrictive Covenants. Executive acknowledges and agrees
that the covenants set forth in Sections 6.3, 6.4, 6.5 and 6.6 of this Agreement (collectively, the
“Restrictive Covenants”) are reasonable and necessary for the protection of the Company’s business
interests, that irreparable injury will result to the Company if Executive breaches any of the
terms of the Restrictive Covenants, and that in the event of Executive’s actual or threatened
breach of any such Restrictive Covenants, the Company will have no adequate remedy at law.
Executive accordingly agrees that in the event of any actual or threatened breach by Executive of
any of the Restrictive Covenants, the Company shall be entitled to immediate temporary injunctive
and other equitable relief, without the necessity of showing actual monetary damages or the posting
of bond. Nothing contained herein shall be construed as prohibiting the Company from pursuing any
other remedies available to it for such breach or threatened breach, including the recovery of
damages.

          9.2 Arbitration. Except as set forth in Section 9.1, any controversy or claim arising
out of or related to (i) this Agreement, (ii) the breach thereof, (iii) Executive’s employment with
the Company or the termination of such employment, or (iv) Employment Discrimination, shall be
settled by arbitration in Chicago, Illinois before a single arbitrator administered by the American
Arbitration Association (“AAA”) under its National Rules for the Resolution of Employment Disputes,
amended and restated effective as of January 1, 2004 (the “Employment Rules”), and judgment on the
award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
Notwithstanding the foregoing, Rule R-34 of the AAA’s Commercial Arbitration Rules amended and
restated effective as of September 1, 2007 (instead of Rule 27 of the Employment Rules) shall apply
to interim measures. References herein to any arbitration rule(s) shall be construed as referring
to such rule(s) as amended or renumbered from time to time and to any successor rules. References
to the AAA include any successor organization. “Employment Discrimination” means any
discrimination against or harassment of Executive in connection with Executive’s employment with
the Company or the termination of such employment, including any discrimination or harassment
prohibited under federal, state or local statute or other applicable law, including the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disability Act or any similar federal, state or local statute.

          9.3 Prevailing Party. In any lawsuit, arbitration or other proceeding arising from
this Agreement, the non-prevailing party shall pay the reasonable attorneys’ fees, expert fees and
other reasonable costs and expenses of the prevailing party.

     10. Miscellaneous.

          10.1 Assignment. Executive may not assign any of Executive’s rights or obligations
hereunder without the written consent of the Company. Except as otherwise expressly provided
herein, all covenants and agreements contained in this Agreement by or on behalf of any of the
parties hereto shall bind and inure to the benefit of the respective successors and assigns of the
parties hereto whether so expressed or not. In connection with a Change of Control, the Company
shall cause a successor to the Company to explicitly assume and agree to be bound by this Agreement
and any such successor shall explicitly assume and agree to be bound by this Agreement.

 

 

          10.2 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity and without invalidating the
remainder of this Agreement.

          10.3 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one and the
same Agreement.

          10.4 Descriptive Headings; Interpretation. The descriptive headings in this Agreement
are inserted for convenience of reference only and are not intended to be part of or to affect the
meaning or interpretation of this Agreement. The use of the word “including” in this Agreement
shall be by way of example rather than by limitation.

          10.5 Notices. All notices, demands or other communications to be given under or by
reason of the provisions of this Agreement shall be in writing and shall be deemed to have been
duly given if (a) delivered personally to the recipient, (b) sent to the recipient by reputable
express courier service (charges prepaid) or mailed to the recipient by certified or registered
mail, return receipt requested and postage prepaid, or (c) transmitted by telecopy to the recipient
with a confirmation copy to follow the next day to be delivered by overnight carrier. Such
notices, demands and other communications shall be sent to the addresses indicated below:

	 	 	 
	     To the Company:

	 	Huron Consulting Group Inc.
	 

	 	550 West Van Buren Street
	 

	 	Chicago, IL 60607
	 

	 	Attention:     Mary Sawall
	 

	 	Facsimile:     (312) 583-8701
	 
	 	 
	     To Executive:

	 	James H. Roth
	 

	 	145 Melrose Avenue
	 

	 	Kenilworth, IL 60043

or to such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. The date in which such notice shall be
deemed given shall be (w) the date of receipt if personally delivered, (x) three (3) business days
after the date of mailing if sent by certified or registered mail, (y) one business day after the
date of delivery to the overnight courier if sent by overnight courier or (z) the next business day
after the date of transmittal by telecopy.

          10.6 Preamble; Preliminary Recitals. The Preliminary Recitals set forth in the
Preamble hereto are hereby incorporated and made part of this Agreement.

          10.7 Taxes. All compensation payable to Executive from the Company shall be subject
to all applicable withholding taxes, normal payroll withholding and any other amounts required by
law to be withheld.

          10.8 Entire Agreement. Except as otherwise expressly set forth herein, this Agreement
sets forth the entire understanding of the parties, and supersedes and preempts all

 

 

prior oral or written understandings and agreements with respect to the subject matter hereof,
including the Prior Agreement, as amended.

          10.9 Governing Law. This Agreement shall be construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of
this Agreement shall be governed by, the laws of the State of Illinois without giving effect to
provisions thereof regarding conflict of laws.

          10.10 No Strict Construction. The language used in this Agreement will be deemed to
be the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party hereto.

          10.11 Amendment and Waivers. Any provisions of the Agreement may be amended or waived
only with the prior written consent of the Company and Executive.

          10.12 Additional Section 409A Provisions. Notwithstanding any provision contained in
this Agreement to the contrary, if (a) any payment hereunder is subject to Section 409A of the
Code, (b) such payment is to be paid on account of Executive’s separation from service (within the
meaning of Section 409A of the Code), and (c) Executive is a “specified employee” (within the
meaning of Section 409A(a)(2)(B) of the Code), then such payment shall be delayed, if necessary,
until the first day of the seventh month following Executive’s separation from service (or, if
later, the date on which such payment is otherwise to be paid under this Agreement). With respect
to any payments hereunder that are subject to Section 409A of the Code and that are payable on
account of a separation from service, the determination of whether Executive has had a separation
from service shall be determined in accordance with Section 409A of the Code. It is the intention
of both the Company and Executive that the benefits and rights to which Executive could be entitled
in connection with termination of employment comply with Section 409A of the Code and the Treasury
Regulations and other guidance promulgated or issued thereunder, and the provisions of this
Agreement shall be construed in a manner consistent with that intention. If Executive or the
Company believes, at any time, that any such benefit or right does not so comply, it shall promptly
advise the other and shall negotiate reasonably and in good faith to amend the terms of such
benefits and rights such that they comply with Section 409A of the Code (with the most limited
possible economic effect on Executive and on the Company). Neither the Company nor Executive,
individually or in combination, may accelerate any payment or benefit that is subject to Section
409A of the Code, except in compliance with Section 409A and the provisions of this Agreement, and
no amount that is subject to Section 409A shall be paid prior to the earliest date on which it may
be paid without violating Section 409A. For purposes of applying the provisions of Section 409A to
this Agreement, each separately identified amount to which Executive is entitled under this
Agreement shall be treated as a separate payment. In addition, to the extent permissible under
Section 409Aof the Code, any series of installment payments under this Agreement shall be treated
as a right to a series of separate payments.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates written
below.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	HURON CONSULTING GROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John S. Moody
 

	 	 
	 

	 	Its:
	 	Chair, Compensation Committee
 

	 	 
	 

	 	Date:
	 	January 12, 2010
 

	 	 
	 
	 	 	 	 	 	 
	 	 	NAME	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ James H. Roth	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	James H. Roth	 	 
	 	 	 	 	 
	 	 	(print name)	 	 
	 
	 	 	 	 	 	 
	 	 	January 12, 2010	 	 
	 	 	 	 	 
	 	 	Date

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