Document:

Exhibit
10.4

 

EMPLOYMENT CONTRACT

 

BETWEEN THE UNDERSIGNED

 

CEPHALON FRANCE,

A Société
par Actions Simplifiées (simplified joint stock company) with a
capital of 19,200,000 euros, the registered office of which is at 20, rue
Charles Martigny — 94701 Maisons-Alfort, listed in the Creteil Trade and
Companies Register under the number B 552 061 962,

 

Represented by Monique ZOMENO, Vice-President
Human Resources Europe,

 

(hereinafter referred to as the “Company”)

 

AND

 

Mr. Alain Aragues,

 

(hereinafter referred to as
the “Employee”)

 

THE FOLLOWING HAS BEEN AGREED:

 

PREAMBLE

 

It is hereby pointed out, for information
purposes, that at the date of the signing of this employment contract, the
collective bargaining agreement applicable to the employment relationship is
the Pharmaceutical Industry National Collective Agreement. The collective
agreement and the other collective agreements applicable to the Company are
available for the Employee to consult.

 

The Employee was hired by Societe Laboratoires
L.Lafon (which subsequently became Cephalon France) on 7 January 2002 in
the capacity of Director of Pharmaceutical Operations. He was subsequently
appointed Senior Vice President & President Pharmaceutical Operations
Europe on 19 January 2005.

 

 

ARTICLE 1 — POSITION AND
CLASSIFICATION

 

The Employee will have the position of Senior
Vice President & President Pharmaceutical Operations Europe and will
be in charge of the general operational and administrative management of the
various functions and activities of the Company and, in particular, of sales
development for the EMEA region, and Business Development in Europe. The
Employee will have the status of a group XI Manager by virtue of the collective
agreement currently applicable to the Company.

 

By its nature, the Employee’s position is
liable to evolve over time, in the light of both the Company’s need to adapt,
and the corresponding necessity of adaptation in the light of its new needs,
and the Employee’s capacities and increasing knowledge and skills.

 

The Employee will pursue his activity under the
authority of his superiors, and within the context of the instructions given by
them, in particular by his direct superior, the Executive Vice President -
Worldwide Pharmaceutical Operations.

 

ARTICLE 2 — TERM OF THE
CONTRACT

 

This contract is concluded for an indefinite
period with effect from 1 November 2008, his length of service dating back
as from 7 January 2002.

 

There will be no trial period in respect of
this appointment.

 

ARTICLE 3 — WORKING HOURS
AND REMUNERATION

 

Given the fact that the Employee:

 

Holds a position that
involves a considerable degree of autonomy in the organization of his work, (he enjoys total freedom and independence in respect
of the organization and management of his timetable for the performance of his
duties as Vice President & President Pharmaceutical Operations
Europe),

 

Is empowered to take
decisions in a largely autonomous manner (which
is characteristic of the key nature of his position and the responsibilities
entrusted to him),

 

And will receive a
remuneration that is among the highest levels of remuneration paid within the
Company,

 

The Employee will have the status of Managing
Executive within the meaning of Article L.3111-2 of the French Labor Code.
He expressly acknowledges this.

 

Consequently, the Employee is expressly
excluded from the legal and regulatory provisions concerning working hours.

 

The Employee will have a fixed gross annual
reference salary of €396,900 (three hundred and ninety-six thousand nine
hundred euros). More specifically, he will receive on the score of his salaried
functions a fixed gross annual salary of €384,900 (three hundred and
eighty-four thousand nine hundred euros), i.e. a fixed monthly salary of
€33,075 (thirty-three thousand and seventy-five euros) paid in twelve equal
monthly installments.

 

 

This fixed remuneration is independent of the
time that the Employee actually devotes to the performance of his duties.

 

For the purposes of information, it is hereby
noted that in the light of the position held at the date of the signing of this
contract, the Employee may also be eligible, subject to meeting the necessary
conditions, to receive a variable remuneration corresponding to a percentage of
his fixed gross annual reference salary. The target percentage rate corresponds
to the level of responsibility attached to the position of Senior Vice
President & President Pharmaceutical Operations Europe, which is
susceptible of evolving as a function of the posts given to the Employee.

 

Payment of this variable remuneration will be
dependent on the group’s collective performance, plus the Employee’s individual
performance (the attainment of fixed personal objectives) specific to a given
accounting year. The rules relative to this remuneration may vary from one
accounting year to the next.

 

Accordingly, payment of the variable
remuneration, if applicable, and the amount of the said payment, will be
entirely at the Company’s discretion. The Employee consequently acknowledges
that the granting of a variable remuneration during one or more years does not
give him any rights with regard to its future payment.

 

ARTICLE 4 — PLACE OF WORK

 

4.1 Assignment

 

At the date of being hired, the Employee will
work in the establishment situated at 5/20 rue Charles Martigny, 94704
Maisons-Alfort Cedex.

 

4.2 Travel

 

In the light of the nature of his functions,
the Employee undertakes to travel in France or abroad on any business trips
necessary for the Department or for the needs of the Company’s organization.

 

Allowances or reimbursements for these business
trips will be paid in accordance with the provisions of Article 30 of the
National Collective Agreement applicable within the Pharmaceutical Industry and
the agreements, rules and practices in force within the Company on the
travel date.

 

4.3 Mobility

 

By mutual agreement between the parties, the
place of work is not an essential and determining condition of this contract.
It is fully understood that for reasons relating to both the Company’s
organizational structure and its smooth functioning, the Company may be led to
change the Employee’s place of work without this constituting modification of
the employment contract. Consequently, and in the light of the nature of his
functions, the Employee hereby agrees that his place of work may at any time be
moved to any other location within the entire geographical sector in which the
Company or the Group pursue their activities, including secondment or transfer
within the Group, either in France or abroad.

 

 

Implementation of this reassignment and the
reimbursement of removal expenses for which documentary proofs can be duly
provided, will take place in accordance with the provisions of Article 21
of the National Collective Agreement applicable within the Pharmaceutical
Industry, and in accordance with the agreements, rules and practices in
force within the Company on the date of the transfer or reassignment.

 

The Company may ask the Employee to perform any
temporary missions in France or abroad.

 

ARTICLE 5 - PAID HOLIDAYS

 

The Employee will benefit from paid holidays in
accordance with the provisions of the law, the Collective Agreement applicable
and the company policy.

 

ARTICLE 6 — USE AND
RETURN OF THE COMPANY’S PROPERTY

 

6.1  Use of the Company’s property

 

Any equipment that the Company may entrust to
the Employee for the performance of his duties, including computer equipment,
documents and software, will remain the property of the Company and must be
returned to it if so requested. It is understood that the Employee will be
given the use of the aforementioned items in order to perform the tasks
entrusted to him, and he will respect the Company’s interests when using them.

 

The Employee undertakes to use this equipment
and material only for professional purposes, and undertakes not to make any
copies or reproductions for his personal use or for any other use, unless he
has received express authorization to do so from the Company’s legal
representative.

 

6.2 Return of the Company’s
property

 

In the event of termination or breach of the
employment contract for any reason whatsoever, the Employee undertakes to
return to the Company all the documents entrusted to him by the Company for the
performance of his duties plus all tools and equipment, in good working order
(portable computer, company car, etc.). Failing this, the Company reserves
the right to initiate any legal proceedings that it may deem appropriate.

 

ARTICLE 7 — COMPANY CAR

 

In view of the Employee’s status, the Company
will place a vehicle at his disposal. He undertakes to use this in accordance
with the conditions stipulated in the rules concerning the use of company
cars.

 

The company car must be returned under the same
conditions as those set forth in Article 5.2..

 

 

ARTICLE 8 — EXPENSE
ACCOUNT

 

The Employee will be reimbursed for all his
professional expenses on presentation of documentary proofs, in accordance with
the practices in force within the Company.

 

ARTICLE 9 —
CONFIDENTIALITY AND DISCRETION

 

The Employee is bound by a general obligation
to maintain absolute discretion and secrecy with regard to all industrial,
commercial and financial operations and all secrets and processes concerning
the Company’s activity and that of the Group to which it belongs, and all other
information that comes to his knowledge on a confidential basis during the
performance of his duties, where this information is given to him on such a
basis by the Management or its representatives, or where it is confidential by
its nature, unless he has expressly received prior authorization from the
Management or its representatives.

 

This obligation applies in respect of both
third parties and employees of the Company.

 

This obligation will remain fully in force both
throughout the entire duration of the employment contract and after it has come
to an end, regardless of the reasons for its having come to an end.

 

ARTICLE 10 — PROFESSIONAL
OBLIGATIONS

 

The Employee undertakes throughout the duration
of his employment contract to comply with the instructions given to him by the
Company, and with the internal rules governing the operation of the
Company, and the Group’s internal rules.

 

The Employee undertakes in general to take all
the measures necessary to satisfactorily fulfill the mission entrusted to him.

 

In the event of his being unable to perform his
duties, regardless of the reason for this, the Employee undertakes to inform
the Company as soon as possible.

 

The Employee also undertakes to inform the
Company without delay of any change in his situation vis-à-vis the information
he provided to the Company at the time of his being hired (address, family
situation, etc.).

 

ARTICLE 11 —
SUPPLEMENTARY SOCIAL PROTECTION

 

The Employee will benefit from a supplementary
scheme subject to the provisions of the National Interprofessional Agreement of
8 December 1961, codified on 15 March 1988, and the appendices and
riders thereto, plus the internal rules of the ARRCO organization. On this
head, the Employee will be affiliated to the following supplementary pension
scheme: C.G.I.S. —Tour Mornay — 5 - 9, rue Van Gogh — 75591 Paris Cedex 12. The
Employee will also be affiliated to the complementary pension scheme
administered by A.C.G.M.E — Groupe Mornay —Tour Mornay — 5 - 9 rue Van Gogh —
75591 Paris Cedex 12.

 

The Employee will benefit from the scheme
providing provident cover (death, invalidity, disability) and cover for medical
costs (illness, surgery, maternity) taken out by the Company with: APGIS — 12,
rue Massue, 94684 Vincennes Cedex.

 

 

ARTICLE 12 — CANCELLATION
OF THE CONTRACT

 

Either the Employee or the Company may cancel
the employment contract at any time, subject to complying with the legislation
and collective agreements in force, and subject to providing 3 months’ notice
in the event of dismissal or redundancy, except in the event of dismissal on
the grounds of serious professional misconduct, or in the case of force
majeure.

 

However,
and taking into account the above, in the event of cancellation of the
employment contract at the initiative of the Company (except when this is on the grounds of serious professional misconduct), or
in the context of a loss of control resulting from a merger and/or acquisition
of the Group and/or the Company in Europe, the Employee will receive an indemnity
equal to 12 months’ gross basic salary, including any severance payments due
according to the applicable collective bargaining agreement and the French
Labour Code, at the most recent salary level and a bonus prorated according to
the number of full months worked and paid the next year on February in
link to the overall company bonus pool.

 

ARTICLE 13 —
MISCELLANEOUS PROVISIONS

 

As from the date of the signing of this
contract, it replaces all other contracts and any letters proposing employment
or letters of appointment between the Employee and the Company.

 

The provisions of this contract are not
inseparable and consequently should any of them come to be pronounced null and
void by a competent court, this will not affect the other provisions.

 

This contract is governed by French law and any
disputes that may arise concerning its performance or termination will be
submitted to the competent French courts.

 

This contract is drawn up on two original
copies, one of which must be signed and returned to the Company as rapidly as
possible.

 

Signed on two original copies, one for each of
the parties.

 

Signed in Maisons-Alfort, on December 9th, 2008

 

 

	
  /s/
  Alain Aragues

  	
   

  	
  /s/
  Monique Zomeno

  
	
  The Employee

  	
   

  	
  The Company, represented by Monique

  
	
   

  	
   

  	
  ZOMENO, Vice-President HR

  

 

 

AMENDMENT TO EMPLOYMENT CONTRACT

 

This Amendment to Employment
Contract is made as of the 20th day of July, 2010 by and between Cephalon
France, a Société par Actions Simplifiées (the “Company”), and Alain Aragues (“Executive”).

 

WHEREAS, Executive is an executive
of the Company, currently serving as its Executive Vice President and President
of Cephalon Europe;

 

WHEREAS, the Company and Executive
entered into that certain Employment Contract dated December 9, 2008 (the “Employment
Contract”);

 

WHEREAS, the Company and Executive
desire to amend the Employment Contract to provide certain severance payments
and benefits in the event that Executive’s employment is terminated as set
forth below; and

 

WHEREAS, Executive shall be entitled
to the severance payments and benefits under this Amendment or those provided
under the Employment Contract, whichever is greater.

 

NOW, THEREFORE, in consideration of
the foregoing and the mutual covenants and agreements hereinafter set forth and
intending to be legally bound hereby, the Company and Executive agree as
follows:

 

1.             The
Employment Contract is hereby amended by adding the attached Addendum to the
end.

 

2.             In
all respects not amended, the Employment Contract is hereby ratified and
confirmed.

 

IN WITNESS WHEREOF, the undersigned,
intending to be legally bound, have executed this Amendment as of the date
first above written.

 

 

	
   

  	
   

  	
   

  	
  CEPHALON FRANCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Robin DeRogatis

  	
   

  	
  By:

  	
  /s/ Frank Baldino, Jr., Ph.D.

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Catherine Landez

  	
   

  	
  /s/
  Alain Aragues

  
	
  Witness:
  Catherine Landez

  	
   

  	
  ALAIN ARAGUES

  

 

 

ADDENDUM

 

EXECUTIVE SEVERANCE
PROVISIONS

 

The following Addendum is an
amendment to the Employment Contract dated December 9, 2008 (the “Employment
Contract”) between Cephalon France, a Société par Actions Simplifiées (the “Company”),
and Alain Aragues (“Executive”).

 

Executive shall not receive
severance payments under both Article 12 of the Employment Contract and
this Addendum.  Instead, in the event of
Executive’s termination of employment with the Company and its affiliates under
circumstances that allow Executive to receive severance payments, Executive
shall receive severance payments under either Article 12 of the Employment
Contract or this Addendum, whichever provides the greater payments.

 

1.             Definitions.

 

(a)           “Annual Base Salary” shall
mean twelve times the greater of (i) the highest monthly base salary paid
or payable (including any base salary which has been earned but deferred) to
Executive by the Company and its affiliates, together with any and all salary
reduction authorized amounts under any of the Company’s benefit plans or
programs, or (ii) the monthly base salary paid or payable to Executive by
the Company (including authorized deferrals, salary reduction amounts and any
car allowance) immediately prior to Executive’s Termination Date.

 

(b)           “Annual Bonus” shall mean one
hundred percent (100%) of Executive’s target annual bonus for the year in which
Executive’s Termination Date occurs, plus one hundred percent (100%) of any
other bonuses Executive receives, or is entitled to receive, during the year in
which Executive’s Termination Date occurs.

 

(c)           “Board” shall mean the Board
of Directors of Cephalon.

 

(d)           “Bonus Multiplier” shall mean
the quotient determined by dividing the total number of months in which
Executive performed services for the Company during the calendar year in which
Executive’s Termination Date occurs divided by twelve (12).

 

(e)           “Cause” shall mean Executive
has engaged in any gross misconduct or negligence (faute grave ou lourde) and
in particular in any unauthorized disclosure of confidential information or
trade secrets, or any other act that is materially and demonstrably detrimental
to the Company.

 

(f)            “Cephalon” shall mean
Cephalon, Inc., which is a parent of the Company.

 

(g)           “Change in Control” shall be
deemed to have occurred if any of the following events occurs:

 

 

(i)                                     the direct or indirect acquisition by any person or related
group of persons (other than Cephalon or a person that directly or indirectly
controls, is controlled by, or is under common control with, Cephalon) of
beneficial ownership of securities possessing more than thirty percent (30%) of
the combined voting power of Cephalon’s outstanding securities pursuant to a
tender or exchange offer made directly to Cephalon’s shareholders which the
Board does not recommend such shareholders to accept;

 

(ii)                                  a change in the composition of the Board over a period of
twenty-four (24) months or less such that a majority of the Board members
ceases, by reason of one or more contested elections for Board membership, to
be comprised of individuals who either (x) have been Board members continuously
since the beginning of such period, or (y) have been elected or nominated for
election as Board members during such period by at least a majority of the
Board members described in clause (x) who were still in office at the time such
election or nomination was approved by the Board;

 

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

 

(iv)                              the sale, transfer or other disposition of more than
seventy-five percent (75%) of Cephalon’s assets in a single or related series
of transactions.

 

(h)                                 “Disability” shall mean Executive is considered as
disabled (incapacité) in accordance with French law.

 

(i)                                     “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Addendum relied upon,
and (ii) briefly summarizes the facts and circumstances deemed to provide a
basis for termination of Executive’s employment under the provision so
indicated.

 

(j)                                     “Termination Date” shall mean the last day of
Executive’s employment with the Company.

 

(k)                                  “Termination of Employment” shall mean the
termination of Executive’s active employment relationship with the Company.

 

2.                                       Termination of Employment Prior to a Change in Control.

 

(a)                                  Termination Prior to a Change in Control.  In the event that
Executive’s employment with the Company is terminated prior to a Change in
Control on account of a termination by the Company for any reason other than
Cause, death or Disability, Executive shall be entitled to the benefits
provided in subsection (b) of this Section 2.

 

 

(b)                                 Compensation Upon Termination Prior to Change in Control.  In the event a
termination described in subsection (a) of this Section 2 occurs, the Company
shall provide Executive with the following:

 

(i)                                     Executive shall receive a cash payment equal to one and a
half (1.5) times Executive’s Annual Base Salary at the rate in effect
immediately before Executive’s Termination Date.

 

(ii)                                  Executive shall receive a cash payment equal to the premium
cost that Executive would have to pay, at the rates in effect on Executive’s
Termination Date, to continue the Company’s supplementary private health
insurance (“mutuelle”) for Executive and, where applicable, Executive’s spouse
and dependents, if receiving such coverage on Executive’s Termination Date, for
a period of eighteen (18) months following Executive’s Termination Date, plus
an additional amount to fully gross-up Executive for any ordinary income taxes
that result from such payment, so that the after-tax amount that Executive will
receive will be equivalent to the rates for such medical and dental coverage.

 

(iii)                               The Company shall cover the cost of reasonable outplacement
assistance services for Executive that are directly related to Executive’s
Termination of Employment and are actually provided by an outplacement agency
selected by Executive, in an amount not to exceed  US
$15,000 converted into Euros at the exchange rate applicable at the Termination
Date.

 

(iv)                              Executive shall receive any amounts earned, accrued or owing
but not yet paid to Executive as of Executive’s Termination Date, payable in a
lump sum, and any benefits accrued or earned in accordance with the terms of
any applicable benefit plans and programs of the Company.

 

(c)                                  Notice of Termination.  Any termination on account of this Section 2
shall be communicated by a Notice of Termination to the other Parties hereto
given in accordance with Section 16 hereof.

 

3.                                       Termination of Employment on Account of a Change in Control.

 

(a)                                  Termination on Account of a Change in Control.  In the event that
Executive’s employment with the Company is terminated after, or in connection
with, a Change in Control on account of: (i) a termination by the Company
following a Change in Control for any reason other than Cause, death or
Disability, or (ii) a termination by the Company (other than for Cause, death
or Disability) prior to or in connection with an anticipated Change in Control
at the request or direction of the acquirer involved in the Change in Control,
Executive shall be entitled to the benefits provided in subsection (b) of this
Section 3. If Executive is entitled to benefits described in subsection (b) of
this Section 3 by reason of clause (a)(ii) above, Executive shall be entitled
to such benefits upon Executive’s Termination of Employment regardless of
whether the Change in Control actually occurs.

 

 

(b)                                 Compensation in Connection With a Termination on Account of
a Change in Control.  Subject to the provisions of Section 5
hereof, in the event a termination described in subsection (a) of this Section
3 occurs, the Company shall provide Executive with the following:

 

(i)                                     Executive shall receive a cash payment equal to the sum of
(x) three (3) times Executive’s Annual Base Salary at the rate in effect
immediately before Executive’s Termination Date, (y) three (3) times Executive’s
Annual Bonus, and (z) the Bonus Multiplier times Executive’s Annual Bonus.

 

(ii)                                  Executive shall receive a cash payment equal to the premium
cost that Executive would have to pay, at the rates in effect on Executive’s
Termination Date, to continue the Company’s supplementary private health
insurance (“mutuelle”) for Executive and, where applicable, Executive’s spouse
and dependents, if receiving such coverage on Executive’s Termination Date, for
a period of thirty-six (36) months following Executive’s Termination Date, plus
an additional amount to fully gross-up Executive for any ordinary income taxes
that result from such payment, so that the after-tax amount that Executive will
receive will be equivalent to the rates for such medical and dental coverage.

 

(iii)                               All stock options and restricted stock held by Executive
will become fully vested and/or exercisable, as the case may be, on the
Termination Date, and all stock options shall remain exercisable after
Executive’s Termination Date as set forth in the applicable option agreements
with the Company.

 

(iv)                              The Company shall cover the cost of reasonable outplacement
assistance services for Executive that are directly related to Executive’s
Termination of Employment and are actually provided by an outplacement agency
selected by Executive, in an amount not to exceed US $15,000 converted into
Euros at the exchange rate applicable at the Termination Date.

 

(v)                                 Executive shall receive any amounts earned, accrued or owing
but not yet paid to Executive as of Executive’s Termination Date, payable in a
lump sum, and any benefits accrued or earned in accordance with the terms of
any applicable benefit plans and programs of the Company.

 

(c)                                  Notice of Termination.  Any termination on account of this Section 3
shall be communicated by a Notice of Termination to the other Parties hereto in
accordance with Section 16 hereof.

 

4.                                       Termination of Employment on Account of Disability.  Notwithstanding
anything in this Addendum to the contrary, if Executive’s employment terminates
on account of Disability (“incapacité”), Executive shall be entitled to receive
disability benefits under any disability program maintained by the Company that
covers Executive, and Executive shall not be considered to have terminated
employment under this Addendum and shall not receive benefits pursuant to
Sections 2 and 3 hereof.

 

 

5.                                       Other Payments.  The payments due under Sections 2 and 3
hereof shall be in addition to and not in lieu of any payments or benefits due
to Executive under any other plan, policy or program of the Company, except
that no cash payments shall be paid to Executive under the Company’s then
current severance pay policies and there shall be no duplication of benefits
between Article 12 of the Employment Contract and this Addendum.  In the event of Executive’s termination of
employment with the Company and its affiliates under circumstances that allow
Executive to receive severance payments, Executive shall receive severance
payments under either Article 12 of the Employment Contract or this Addendum,
whichever provides the greater payments.

 

6.                                       Enforcement.

 

(a)                                  In the event that the Company shall fail or refuse to make
payment of any amounts due Executive under Sections 2, 3 and 5 hereof within
the respective time periods provided therein, the Company shall pay to
Executive, in addition to the payment of any other sums provided in this
Addendum, interest, compounded daily, on any amount remaining unpaid from the
date payment is required under Sections 2, 3 and 5, as appropriate, until paid
to Executive, at the rate from time to time announced by Wells Fargo Bank, N.A.
as its “prime rate” plus two percent (2%), each change in such rate to take
effect on the effective date of the change in such prime rate.

 

(b)                                 It is the intent of the Parties that Executive not be
required to incur any expenses associated with the enforcement of Executive’s
rights under Sections 2, 3 and 5 of this Addendum by arbitration, litigation or
other legal action because the cost and expense thereof would substantially
detract from the benefits intended to be extended to Executive hereunder.  Accordingly, the Company shall pay Executive
the amount necessary to reimburse Executive in full for all expenses (including
all attorneys’ fees and legal expenses) incurred by Executive in enforcing any
of the obligations of the Company under this Addendum.

 

7.                                       No Mitigation.  Executive shall not be required to mitigate
the amount of any payment or benefit provided for in this Addendum by seeking
other employment or otherwise, nor shall the amount of any payment or benefit
provided for herein be reduced by any compensation earned by other employment
or otherwise.

 

8.                                       Non-Exclusivity of Rights.  Except as provided in Section 5, nothing in
this Addendum shall prevent or limit Executive’s continuing or future
participation in or rights under any benefit, bonus, incentive or other plan or
program provided by the Company or any of its subsidiaries or affiliates and
for which Executive may qualify.

 

9.                                       No Set-Off.  The Company’s obligation to make the payments
provided for in this Addendum and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right which
the Company may have against Executive or others.

 

 

10.                                 Taxes.  Any payment required under this Addendum
shall be subject to all requirements of the law with regard to the withholding
of taxes, filing, making of reports and the like, and the Company shall use its
best efforts to satisfy promptly all such requirements.

 

11.                                 Confidential Information.  Executive shall remain subject to the terms
and conditions of Executive’s Employee Confidentiality Agreement, which shall
continue in full force and effect, except as specifically modified herein.

 

12.                                 Non-Solicitation.  In further consideration for the Company’s
promises herein, Executive agrees that for the period beginning with the
termination of Executive’s employment with the Company for any reason other
than that described in Section 3(a) above, and for a period of one (1) year
thereafter, Executive will not, directly or indirectly solicit, recruit or hire
any part-time or full-time employee, representative or consultant of the
Company or its subsidiaries or affiliates to work for a third party other than
the Company or its subsidiaries or affiliates or engage in any activity that
would cause any employee, representative or consultant to violate any agreement
with the Company or its subsidiaries or affiliates.  The foregoing covenant shall not apply to any
person after twelve (12) months have elapsed after the date on which such
person’s employment by the Company has terminated.

 

13.                                 Equitable Relief.

 

(a)                                  Executive acknowledges that the restrictions contained in
Sections 11 and 12 hereof are reasonable and necessary to protect the
legitimate interests of the Company and its affiliates, that the Company would
not have entered into this Addendum in the absence of such restrictions, and
that any violation of any provision of those Sections will result in
irreparable injury to the Company. 
Executive represents that Executive’s experience and capabilities are
such that the restrictions contained in Section 12 hereof will not prevent
Executive from obtaining employment or otherwise earning a living at the same
general level of economic benefit as is currently the case.  Executive further represents and acknowledges
that (i) Executive has been advised by the Company to consult Executive’s own
legal counsel in respect of this Addendum, and (ii) that Executive has had full
opportunity, prior to execution of this Addendum, to review thoroughly this
Addendum with Executive’s legal counsel.

 

(b)                                 Executive agrees that the Company shall be entitled to
preliminary and permanent injunctive relief, without the necessity of proving
actual damages, as well as an equitable accounting of all earnings, profits and
other benefits arising from any violation of Sections 11 or 12 hereof, which
rights shall be cumulative and in addition to any other rights or remedies to
which the Company may be entitled.  In
the event that any of the provisions of Sections 11 or 12 hereof should ever be
adjudicated to exceed the time, geographic, service, or other limitations
permitted by applicable law in any jurisdiction, then such provisions shall be
deemed reformed in such jurisdiction to the maximum time, geographic, service,
or other limitations permitted by applicable law.

 

 

(c)                                  Executive irrevocably and unconditionally (i) agrees that
any suit, action or other legal proceeding arising out of Section 11 or 12
hereof, including without limitation, any action commenced by the Company for
preliminary and permanent injunctive relief or other equitable relief, may be
brought in the appropriate Labour Court, or if such court does not have
jurisdiction or will not accept jurisdiction, in any court of general
jurisdiction in France, (ii) consents to the non-exclusive jurisdiction of any
such court in any such suit, action or proceeding, and (iii) waives any
objection which Executive may have to the laying of venue of any such suit,
action or proceeding in any such court. 
Executive also irrevocably and unconditionally consents to the service
of any process, pleadings, notices or other papers in a manner permitted by the
notice provisions of Section 16 hereof.

 

14.                                 Term of Addendum.  This Addendum shall continue in full force
and effect for the duration of Executive’s employment with the Company;
provided, however, that after the termination of Executive’s employment during
the term of this Addendum, this Addendum shall remain in effect until all of
the obligations of the Parties hereunder are satisfied or have expired.

 

15.                                 Successor Company.  The Company shall require any successor or
successors (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, by agreement in form and substance satisfactory to Executive, to
acknowledge expressly that this Addendum is binding upon and enforceable
against the Company in accordance with the terms hereof, and to become jointly
and severally obligated with the Company to perform this Addendum in the same
manner and to the same extent that the Company would be required to perform if
no such succession or successions had taken place.  Failure of the Company to obtain such
agreement prior to the effectiveness of any such succession shall be a breach
of this Addendum.  As used in this
Addendum, the Company shall mean the Company as herein before defined and any
such successor or successors to its business and/or assets, jointly and
severally.

 

16.                                 Notice.  All notices and other communications required
or permitted hereunder or necessary or convenient in connection herewith shall
be in writing and shall be delivered personally or mailed by registered or
certified mail, return receipt requested, or by overnight express courier
service, as follows:

 

If to the Company, to:

 

                                                Cephalon France

                                                Attn:

 

If to Executive, to:

 

or to such other names or addresses
as the Company or Executive, as the case may be, shall designate by notice to
the other Parties hereto in the manner specified in this Section; provided,

 

 

however, that if no such notice is
given by the Company following a Change in Control, notice at the last address
of the Company or to any successor pursuant to this Section 16 shall be deemed
sufficient for the purposes hereof.  Any
such notice shall be deemed delivered and effective when received in the case
of personal delivery, five (5) days after deposit, postage prepaid, with the
U.S. Postal Service in the case of registered or certified mail, or on the next
business day in the case of overnight express courier service.

 

17.                                 Governing Law.  This Addendum shall be governed by and
interpreted under French law.

 

18.                                 Contents of Agreement, Addendum and Assignment.

 

(a)                                  This Addendum supersedes all prior agreements except the
Employment Contract, sets forth the entire understanding between the Parties
hereto with respect to the subject matter hereof and cannot be changed,
modified, extended or terminated except upon written amendment executed by
Executive and executed on the Company’s behalf by a duly authorized
officer.  The provisions of this Addendum
may provide for payments to Executive under certain compensation or bonus plans
under circumstances where such plans would not provide for payment
thereof.  It is the specific intention of
the Parties that the provisions of this Addendum shall supersede any provisions
to the contrary in such plans, and such plans shall be deemed to have been
amended to correspond with this Addendum without further action by the Company
or the Board.

 

(b)                                 All of the terms and provisions of this Addendum shall be
binding upon and inure to the benefit of and be enforceable by the respective
heirs, representatives, successors and assigns of the Parties hereto, except
that the duties and responsibilities of Executive and the Company hereunder
shall not be assignable in whole or in part by the Company.  If Executive should die after Executive’s
Termination Date and while any amount payable hereunder would still be payable
to Executive hereunder if Executive had continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of
this Addendum to Executive’s devises, legates or other designees or, if there
is no such designee, to Executive’s estate.

 

19.                                 Severability.  If any provision of this Addendum or
application thereof to anyone or under any circumstances shall be determined to
be invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provisions or applications of this Addendum which can be given
effect without the invalid or unenforceable provision or application.

 

20.                                 Remedies Cumulative; No Waiver.  No right conferred
upon the Parties by this Addendum is intended to be exclusive of any other
right or remedy, and each and every such right or remedy shall be cumulative
and shall be in addition to any other right or remedy given hereunder or now or
hereafter existing at law or in equity. 
No delay or omission by a Party in exercising any right, remedy or power
hereunder or existing at law or in equity shall be construed as a waiver thereof.

 

 

21.                                 Miscellaneous.  All section headings are for convenience
only.  This Addendum may be executed in
several counterparts, each of which is an original. It shall not be necessary
in making proof of this Addendum or any counterpart hereof to produce or
account for any of the other counterparts.

 

IN WITNESS WHEREOF, the undersigned,
intending to be legally bound, have executed this Addendum as of the date first
above written.

 

 

	
   

  	
   

  	
   

  	
  CEPHALON FRANCE

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Robin DeRogatis

  	
   

  	
  By:

  	
  /s/ Frank Baldino, Jr., Ph.D.

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Catherine Landez

  	
   

  	
  /s/
  Alain Aragues

  
	
  Witness: Catherine Landez

  	
   

  	
  ALAIN ARAGUESExhibit 10.1

 

Eagle Rock Energy G&P, LLC

 

Executive Change of Control Agreement Policy

 

July 27, 2010

 

This
Executive Change of Control Agreement Policy reflects the terms and procedures
as approved at the July 27, 2010 meeting of the Compensation Committee of
the Board of Directors of Eagle Rock Energy G&P, LLC (the “Company”).

 

1. Eligibility

 

Employees
of the Company at the Vice President level and above will receive an Executive
Change of Control Agreement (“COC Agreement”)
either upon hire or promotion to an eligible position at the benefit level
described in Section 2 below. However, no eligible individual will be
entitled to the benefits described in Section 2 below unless or until the
individual timely executes a COC Agreement in accordance with the procedures
established by the Company.  The COC
Agreements constitute part of a “top-hat” plan intended to satisfy the
exemption set forth in Section 201(2) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”).

 

2. Severance Benefits under COC Agreements

 

The
COC Agreements contain a double trigger, meaning that severance benefits only
become payable if a “Change of Control” occurs and an executive experiences a
termination of employment either without “Cause” or for “Good Reason” during
the “Protection Period” (which is the six month period preceding a “Change of
Control” and the two year period following a “Change of Control”). The
severance benefits potentially payable under the COC Agreements contain five
components:

 

·                  Accrued but unpaid salary, earned but unpaid
performance bonus for the prior fiscal year, reimbursement of expenses, and
employee benefits in accordance with their terms;

·                  A pro-rata performance bonus for the calendar
year of termination;

·                  A lump sum amount equal to the sum of the
executive’s base salary plus the executive’s target performance bonus,
multiplied by the applicable multiplier (see chart below);

·                  Continuation of medical and dental benefits
for a specified number of months (see chart below); and

·                  Reimbursement of outplacement services up to
$30,000.

 

Payment
of benefits under the COC Agreements is conditioned on the execution and
nonrevocation by an executive of a release agreement.

 

The
applicable multiplier and number of years that medical and dental benefits will
be continued will be determined based on the executive’s classification in
accordance with the following chart:

 

 

	
   

  	
   

  	
  Lump Sum Multiplier

  	
   

  	
  Number of Months of 

  Benefit Continuation

  
	
  Chief
  Executive Officer

  	
   

  	
  3.0

  	
   

  	
  36 months

  
	
  Senior
  Vice Presidents

  	
   

  	
  2.5

  	
   

  	
  30 months

  
	
  Vice
  Presidents

  	
   

  	
  1.5

  	
   

  	
  18 months

  

 

An
executive who is demoted will retain the multiplier and benefit continuation
period originally assigned pursuant to the chart above.

 

3. Term of COC Agreements

 

The
initial term of each COC Agreement ends on the earlier of (a) the fifth
anniversary of the effective date of the COC Agreement, or (b) the
occurrence of a “Change of Control.”  If
a “Change of Control” has not occurred prior to the fifth anniversary of the
effective date, then on the fifth anniversary of the effective date, the term
of the COC Agreements will be automatically extended for one additional year
periods, unless the Company gives notice to each executive 60 days prior
to an automatic extension date. The occurrence of a “Change of Control” will
extend the term of the COC Agreements through the end of the applicable “Protection
Period.”

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