Document:

Exhibit
10.1

 

 

July 19, 2010

 

Behringer Harvard Opportunity Advisors I, LLC

15601 Dallas Parkway, Suite 600

Addison, Texas 
75001

 

Re:          Deferral
of Asset Management Fees

 

Ladies and Gentlemen:

 

Reference is made to that certain Amended and
Restated Advisory Agreement, dated as of December 29, 2006, as amended
(the “Advisory Agreement”), by and between Behringer Harvard Opportunity
REIT I, Inc., a Maryland corporation (the “Company”), and Behringer
Harvard Opportunity Advisors I, LLC, a Texas limited liability company (the “Advisor”).  Capitalized terms used herein but not defined
herein shall have the meanings set forth in the Advisory Agreement.

 

In consideration of the mutual agreements and
covenants contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and the
Advisor hereby agree as follows:

 

1.             Deferral
of Asset Management Fees. 
Notwithstanding anything to the contrary contained in the Advisory
Agreement, the Advisor, on behalf of itself and its Affiliates, and its and
their respective successors and assigns, hereby defers until September 30,
2010 the Company’s obligation to pay asset management fees in the amount of (i) $235,000
accrued during the month of May 2010 and (ii) $237,000 accrued during
the month of June 2010.

 

2.             Ratification;
Effect on Advisory Agreement.

 

(a)           Ratification.  The Advisory Agreement, as amended by this
letter agreement, shall remain in full force and effect and is hereby ratified
and confirmed in all respects.

 

(b)           Effect
on the Advisory Agreement.  On and
after the date hereof, each reference in the Advisory Agreement to “this
Agreement,” “herein,” “hereof,” “hereunder,” or words of similar import shall
mean and be a reference to the Advisory Agreement as amended hereby.

 

3.             Miscellaneous.

 

(a)           Governing
Law; Venue.  This letter agreement
and the legal relations between the parties hereto shall be construed and
interpreted in accordance with the internal laws of the State of Texas without
giving effect to its conflicts of law principles, and venue for any action
brought with respect to any claims arising out of this letter agreement shall
be brought exclusively in Dallas County, Texas.

 

(b)           Modification.  This letter agreement shall not be changed,
modified, or amended, in whole or in part, except by an instrument in writing
signed by both parties hereto, or their respective successors or assignees.

 

(c)           Headings.  The titles and headings of the sections and
subsections contained in this letter agreement are for convenience only, and
they neither form a part of this letter agreement nor are they to be used in
the construction or interpretation hereof.

 

 

 

(d)           Severability.  The provisions of this letter agreement are
independent of and severable from each other, and no provision shall be
affected or rendered invalid or unenforceable by virtue of the fact that for
any reason any other or others of them may be invalid or unenforceable in whole
or in part.

 

(e)           Counterparts.  This letter agreement may be executed in
multiple counterparts, each of which shall be deemed to be an original as
against any party whose signature appears thereon, and all of which shall
together constitute one and the same instrument.  This letter agreement shall become binding
when one or more counterparts hereof, individually or taken together, shall
bear the signatures of all of the parties reflected hereon as the
signatories.  This letter agreement, to
the extent signed and delivered by means of electronic mail or a facsimile
machine, shall be treated in all manner and respects as an original agreement
or instrument and shall be considered to have the same binding legal effect as
if it were an original signed version thereof delivered in person.  No party hereto shall raise the use of
electronic mail or a facsimile machine to deliver a signature or the fact that
any signature was transmitted or communicated through the use of electronic
mail or a facsimile machine as a defense to the formation or enforceability of
a contract and each party hereto forever waives any such defense.

 

If the foregoing meets with your approval,
please indicate your acceptance of this letter agreement by countersigning a
copy of this letter agreement in the space indicated below.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  BEHRINGERHARVARD OPPORTUNITY

  
	
   

  	
  REIT I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Robert S. Aisner

  
	
   

  	
  Name:

  	
  Robert S. Aisner

  
	
   

  	
  Its:

  	
  Chief Executive Officer and President

  

 

 

Acknowledged and agreed, as of

the date first written above:

 

BEHRINGER HARVARD OPPORTUNITY ADVISORS I, LLC

 

	
  By:

  	
  Harvard
  Property Trust, LLC,

  
	
   

  	
  its
  Manager

  

 

 

	
   

  	
  By:

  	
  /s/Gary
  S. Bresky

  	
   

  
	
   

  	
   

  	
  Gary
  S. Bresky

  	
   

  
	
   

  	
   

  	
  Executive
  Vice President and

  	
   

  
	
   

  	
   

  	
  Chief
  Financial OfficerExhibit 10.1

 

EXECUTIVE SEVERANCE AGREEMENT

 

This
Executive Severance Agreement is made as of the 20th day of July, 2010 by and
between Cephalon, Inc., a Delaware corporation (the “Company”), and Wilco
Groenhuysen (“Executive”).

 

WHEREAS,
Executive is an executive of the Company, currently serving as its Chief
Financial Officer; and

 

WHEREAS,
the Company and Executive desire to enter into an Executive Severance Agreement
to provide certain payments and benefits in the event that Executive’s
employment is terminated as set forth below.

 

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 (individually a “Party” and together, the “Parties”)
agree as follows:

 

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 (as defined in
section 1504 of the Code without regard to subsection (b) thereof),
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 the Company.

 

(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 act of unethical conduct, willful
misconduct, fraud or embezzlement, any unauthorized disclosure of confidential
information or trade secrets, or any other act that is materially and demonstrably
detrimental to the Company.

 

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

 

1

 

(i)                                     the direct or
indirect acquisition by any person or related group of persons (other than the
Company or a person that directly or indirectly controls, is controlled by, or
is under common control with, the Company) of beneficial ownership (within the
meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of securities
possessing more than thirty percent (30%) of the combined voting power of the
Company’s outstanding securities pursuant to a tender or exchange offer made
directly to the Company’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 the Company’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 the
Company’s assets in a single or related series of transactions.

 

(g)                                 “Code”
means the Internal Revenue Code of 1986, as amended.

 

(h)                                 “Constructive
Termination” means Executive’s voluntary resignation following any of the
following events: (i) a change in Executive’s position with the Company or
the successor thereto which materially reduces Executive’s level of
responsibility; (ii) a reduction in Executive’s level of compensation
(including base salary, significant fringe benefits and the target level of any
non-discretionary and objective-standard incentive payment or bonus award) by
more than ten percent (10%) in the aggregate; or (iii) a relocation of
Executive’s place of employment that would increase Executive’s commute by more
than fifty (50) miles; provided, however, such change, reduction or relocation
is effected by the Company or the successor thereto without Executive’s
consent.  In order for a termination to
constitute a Constructive Termination, Executive must provide a written Notice
of Termination to the Company within thirty (30) days after the event
constituting a Constructive Termination. 
The Company shall have a period of thirty (30) days in which it may
correct the act or failure to act that constitutes the grounds for Constructive
Termination as set forth in Executive’s Notice of Termination.  If the Company does not correct the act or
failure to act within such period, Executive must terminate employment within
thirty (30) days after the end of the cure period, in order for the termination
to be considered a Constructive Termination.

 

(i)                                     “Disability”
shall mean Executive is, by reason of any medically determinable physical or
mental impairment expected to result in death or to be of continuous 

 

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duration of not less than one year, unable to engage
in any substantial gainful employment or service.

 

(j)                                     “Notice of
Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement 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.

 

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

 

(l)                                     “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 an
involuntary 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.  Subject to the provisions of Section 5
hereof, in the event a termination described in subsection (a) of this Section 2
occurs, the Company shall provide Executive with the following, provided that
Executive executes and does not revoke the Release (as defined in Section 5):

 

(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.  Subject to Section 24(b), payment
shall be made in a lump sum payment within sixty (60) days after Executive’s
Termination Date, provided Executive executes a Release during the sixty (60)
day period and does not revoke the Release.

 

(ii)                                  Executive shall
receive a cash payment equal to the premium cost that Executive would have to
pay, at COBRA rates as in effect on Executive’s Termination Date, to continue
the Company’s medical and dental coverage 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 COBRA rates for
such coverage.  Subject to Section 24(b),
payment shall be made in a lump sum payment within sixty (60) days after
Executive’s Termination Date, provided Executive executes a Release during the
sixty (60) day period and does not revoke the Release.

 

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(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 $15,000; provided, however, that the period during
which the outplacement assistance services will be covered and the
reimbursements paid does not extend beyond the period set forth in Treas. Reg.
§1.409A-1(b)(9)(v)(E).

 

(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 18
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) an involuntary termination by the Company following a
Change in Control for any reason other than Cause, death or Disability, (ii) Executive
voluntarily terminates employment with the Company following a Change in
Control on account of a Constructive Termination, or (iii) 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)(iii) 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, provided that
Executive executes and does not revoke the Release:

 

(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. Subject
to Section 24(b), payment shall be made in a lump sum payment within sixty
(60) days after Executive’s Termination Date, provided Executive executes a
Release during the sixty (60) day period and does not revoke the Release.

 

(ii)                                  Executive shall
receive a cash payment equal to the premium cost that Executive would have to
pay, at COBRA rates as in effect on Executive’s 

 

4

 

Termination Date, to
continue the Company’s medical and dental coverage 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
COBRA rates for such coverage.  Subject
to Section 24(b), payment shall be made in a lump sum payment within sixty
(60) days after Executive’s Termination Date, provided Executive executes a
Release during the sixty (60) day period and does not revoke the Release.

 

(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 $15,000; provided, however, that the period during
which the outplacement assistance services will be covered and the
reimbursements paid does not extend beyond the period set forth in Treas. Reg.
§1.409A-1(b)(9)(v)(E).

 

(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 18
hereof.

 

4.                                       Termination of
Employment on Account of Disability.  Notwithstanding anything in this Agreement to
the contrary, if Executive’s employment terminates on account of Disability,
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 Agreement and shall
not receive benefits pursuant to Sections 2 and 3 hereof.

 

5.                                       Release.  Notwithstanding the foregoing, no such
payments shall be made unless Executive executes, and does not revoke, the
Company’s standard written release (the “Release”), of any and all claims
against the Company and all related parties with respect to all matters arising
out of Executive’s employment by the Company (other than any entitlements under
the terms of this Agreement or under any other plans or programs of the Company
in which Executive participated and under which Executive has accrued or become
entitled to a benefit) or the termination thereof.

 

5

 

6.                                       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.

 

7.                                       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 6 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 Agreement, interest, compounded
daily, on any amount remaining unpaid from the date payment is required under
Sections 2, 3 and 6, 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 6
of this Agreement 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 Agreement.

 

8.                                       No Mitigation.  Executive shall not be required to mitigate
the amount of any payment or benefit provided for in this Agreement 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.

 

9.                                       Non-Exclusivity
of Rights.  Except as
provided in Section 6, nothing in this Agreement 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.

 

10.                                 No Set-Off.  The Company’s obligation to make the payments
provided for in this Agreement 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.

 

11.                                 Taxes.  Any payment required under this Agreement
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.

 

12.                                 Application of Section 280G
of the Code.  In the
event Executive becomes entitled to any benefits or payments in the nature of
compensation (within the meaning of section 280G(b)(2) of the Code) under
this Agreement, or any other plan, arrangement, or agreement 

 

6

 

with the Company (the “Payments”), and such benefits
or payments would (in the absence of this Section 12) be subject to the
excise tax imposed by section 4999 of the Code (the “Excise Tax”), the
aggregate present value of the Payments under this Agreement shall be reduced
(but not below zero) to the Reduced Amount (as defined below), if reducing the
Payments under this Agreement will provide Executive with a greater net
after-tax amount than would be the case if no reduction was made.  The “Reduced
Amount” shall be an amount expressed in present value which maximizes the
aggregate present value of Payments without causing any Payment under this
Agreement to be subject to the Excise Tax, determined in accordance with
section 280G(d)(4) of the Code.  The Company shall reduce the
Payments under this Agreement by first reducing Payments that are payable in
cash and then by reducing non-cash Payments.  Only amounts payable under
this Agreement shall be reduced pursuant to this Section 12.

 

(a)                                  Determinations.  All determinations to be made under this Section 12
shall be made by the Company’s independent public accounting firm as in effect
immediately prior to the event that constitutes a change in control under
section 280G of the Code or another independent firm selected by the Company
before such event (the “Accounting Firm”), which firm shall provide its
determinations and any supporting calculations to the Company and Chief
Executive Officer within ten (10) business days after such event.  Any such determination by the Accounting Firm
shall be binding upon the Company and Executive.

 

(b)                                 Fees and
Expenses.  All of the
fees and expenses of the Accounting Firm in performing the determinations
referred to in this Section 12 shall be borne solely by the Company.  The Company agrees to indemnify and hold
harmless the Accounting Firm of and from any and all claims, damages and
expenses resulting from or relating to its determinations pursuant to this Section 12,
except for claims, damages or expenses resulting from the gross negligence or
willful misconduct of the Accounting Firm.

 

13.                                 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.

 

14.                                 Non-Competition.

 

(a)                                  During the
period of Executive’s employment by the Company and, if Executive’s employment
with the Company terminates for any reason other that described in Section 3(a) above,
for a period of one (1) year thereafter, except with the written consent
of the Board, Executive shall not directly or indirectly, own, manage, operate,
join, control, finance or participate in the ownership, management, operation,
control or financing of, or be connected as an officer, director, employee,
partner, principal, agent, representative, stockholder, consultant, investor or
otherwise with, or use or permit Executive’s name to be used in connection
with, any person, business or enterprise which directly or indirectly engages
in (i) the development of compounds, or (ii) the sale or marketing of
products, that compete with the Company’s compounds or products (the “Company’s
Business”).  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:

 

7

 

(i)                                     except with the
prior written consent of the Board, directly or indirectly solicit, entice or
induce any customer to become a customer of any other person, firm or
corporation with respect to the Company’s Business or to cease doing business
with the Company or its subsidiaries or affiliates, and that Executive will not
approach any such person, firm or corporation for such purpose or authorize or
knowingly approve, encourage or assist the taking of such actions by any other
person, firm or corporation; or

 

(ii)                                  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.

 

(b)                                 The foregoing
restrictions shall not be construed to prohibit Executive’s ownership of less
than five percent of any class of securities of any corporation which is engaged
in any of the foregoing businesses and has a class of securities registered
pursuant to the Securities Exchange Act of 1934, as amended, provided that such
ownership represents a passive investment and that neither Executive nor any
group of persons including Executive in any way, either directly or indirectly,
manages or exercises control of any such corporation, guarantees any of its
financial obligations, otherwise takes any part in its business, other than
exercising Executive’s rights as a stockholder, or seeks to do any of the
foregoing.

 

15.                                 Equitable
Relief.

 

(a)                                  Executive
acknowledges that the restrictions contained in Sections 13 and 14 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 Agreement 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
14 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 Agreement, and (ii) that
Executive has had full opportunity, prior to execution of this Agreement, to
review thoroughly this Agreement 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 13 or 14 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 13 or 14 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 

 

8

 

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 13 or 14 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 United
States District Court for the District of Delaware, or if such court does not
have jurisdiction or will not accept jurisdiction, in any court of general
jurisdiction in Delaware, (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 18 hereof.

 

16.                                 Term of
Agreement.  This
Agreement 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 Agreement, this Agreement shall
remain in effect until all of the obligations of the Parties hereunder are
satisfied or have expired.

 

17.                                 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 Agreement 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 Agreement 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 Agreement.  As used in this
Agreement, 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.

 

18.                                 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, Inc.

41 Moores Rd.

Frazer, PA 
19355

Attn:

 

With
a copy to:

 

Morgan, Lewis & Bockius LLP

1701 Market Street

 

9

 

Philadelphia, PA 19103-2921

Attn:  I. Lee
Falk, Esquire

 

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 18 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.

 

19.                                 Governing Law.  This Agreement shall be governed by and
interpreted under the laws of the State of Delaware without giving effect to
any conflict of laws provisions.

 

20.                                 Contents of
Agreement, Amendment and Assignment.

 

(a)                                  This Agreement
supersedes all prior agreements, 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
Agreement 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 Agreement shall supersede any
provisions to the contrary in such plans, and such plans shall be deemed to
have been amended to correspond with this Agreement without further action by
the Company or the Board.

 

(b)                                 Nothing in this
Agreement shall be construed as giving Executive any right to be retained in
the employ of the Company, or as changing or modifying the “at will” nature of
Executive’s employment status.

 

(c)                                  All of the
terms and provisions of this Agreement 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 Agreement to Executive’s
devises, legates or other designees or, if there is no such designee, to
Executive’s estate.

 

10

 

21.                                 Severability.  If any provision of this Agreement 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 Agreement which can be
given effect without the invalid or unenforceable provision or application.

 

22.                                 Remedies
Cumulative; No Waiver.  No
right conferred upon the Parties by this Agreement 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.

 

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

 

24.                                 Section 409A.

 

(a)                                  Interpretation.  Notwithstanding the other provisions hereof,
this Agreement is intended to comply with the requirements of section 409A of
the Code, to the extent applicable, and shall be interpreted to avoid any
penalty sanctions under section 409A of the Code.  If any payment or benefit cannot be provided
or made at the time specified herein without incurring sanctions under section
409A of the Code, then such benefit or payment shall be provided in full at the
earliest time thereafter when such sanctions will not be imposed.  All payments to be made upon termination of
employment under this Agreement may only be made upon a “separation from
service” under section 409A of the Code. 
For purposes of section 409A of the Code, each payment made under this
Agreement shall be treated as a separate payment.  In no event may Executive, directly or
indirectly, designate the calendar year of payment.  Notwithstanding any provision of this
Agreement to the contrary, in no event shall the timing of Executive’s
execution of the Release, directly or indirectly, result in Executive
designating the calendar year of payment, and if a payment that is subject to
execution of the Release could be made in more than one taxable year, payment
shall be made in the later taxable year.

 

(b)                                 Payment Delay.  Notwithstanding any provision to the contrary
in this Agreement, if on Executive’s Termination Date Executive is a “specified
employee” (as such term is defined in section 409A(a)(2)(B)(i) of the Code and
its corresponding regulations) as determined by the Company (or any successor
thereto) in its sole discretion in accordance with its “specified employee”
determination policy, then all cash severance payments payable to Executive
under this Agreement that are deemed as deferred compensation subject to the
requirements of section 409A of the Code shall be postponed for a period of six
months following Executive’s “separation from service” with the Company (or any
successor thereto).  The postponed
amounts shall be paid to Executive in a lump sum within thirty (30) days after
the date that is six (6) months following Executive’s “separation from service”
with the Company (or any successor thereto). If Executive dies during such six
(6)-month period and prior to payment of the postponed cash amounts hereunder,
the amounts delayed on account of section 409A of the Code shall be paid to the
personal representative of Executive’s estate within sixty 

 

11

 

(60) days after Executive’s death.  No interest shall be paid on any amounts
delayed pursuant to this subsection.

 

(c)                                  Reimbursements.  All reimbursements provided under this
Agreement shall be made or provided in accordance with the requirements of
section 409A, including, where applicable, the requirement that (i) any
reimbursement is for expenses incurred during Executive’s lifetime (or during a
shorter period of time specified in this Agreement), (ii) the amount of
expenses eligible for reimbursement during a calendar year may not affect the
expenses eligible for reimbursement in any other calendar year, (iii) the
reimbursement of an eligible expense will be made on or before the last day of
the taxable year following the year in which the expense is incurred, and (iv) the
right to reimbursement is not subject to liquidation or exchange for another
benefit.  If expenses are incurred in
connection with any tax audit or litigation, any reimbursements under the
Agreement for such expenses shall be paid not later than the end of Executive’s
taxable year following Executive’s taxable year in which (i) the tax audit or
litigation is resolved if no taxes are paid or (ii) the taxes that are subject
to such audit or litigation are remitted to the taxing authority.  Any tax gross up payments to be made hereunder
shall be made not later than the end of Executive’s taxable year next following
Executive’s taxable year in which the related taxes are remitted to the taxing
authority.

 

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

 

 

	
   

  	
   

  	
   

  	
  CEPHALON,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/
  Robin DeRogatis

  	
   

  	
  By:

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

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Chairman
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Robin DeRogatis

  	
   

  	
   

  	
  /s/
  Wilco Groenhuysen

  
	
  Witness: Robin DeRogatis

  	
   

  	
  WILCO
  GROENHUYSEN

  

 

12

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