Ms. Kei Tolliver, VP, Business Development & Company Operation 4520 East West Highway, 3rd Floor Bethesda, Maryland 20814 Re: Amendment to Employment Agreement Dear Ms. Tolliver:
Exhibit 10.5
November 14, 2007
PERSONAL AND CONFIDENTIAL
Xx. Xxx Xxxxxxxx, VP, Business Development & Company Operation
0000 Xxxx Xxxx Xxxxxxx, 0xx Xxxxx
Xxxxxxxx, Xxxxxxxx 00000
0000 Xxxx Xxxx Xxxxxxx, 0xx Xxxxx
Xxxxxxxx, Xxxxxxxx 00000
Re: Amendment to Employment Agreement
Dear Xx. Xxxxxxxx:
This letter will reflect the agreement between you and Sucampo Pharmaceuticals, Inc. (the
“Company”) upon certain amendments to the terms of the Employment Agreement between you and the
Company dated June 16, 2006.
Effective as of the first payroll period in June 2007, your Base Salary has been increased to
the annual rate of $124,000. In addition, effective immediately, your Compensation Upon Severance
in the event the Company terminates (or elects not to renew) your Employment Agreement “without
cause,” or upon disability pursuant to Section 4.2 of the Agreement, or in the event you terminate
the Agreement for “good reason” has been altered to increase your lump-sum severance to a payment
equal to six (6) months of your then-current base salary. Your Compensation Upon Severance has also
been altered to extend the period for which you are entitled to receive reimbursement for the cost
of continued health insurance coverage to a maximum of six (6) months after termination.
Consistent with the requirements for modification set forth in Section 6.3 of the Employment
Agreement, this letter will document the mutual agreement between you and the Company to amend (1)
Section 3.1(a) of your Employment Agreement to reflect the foregoing increase in Base Salary, (2)
Section 4.4(a)(iii) of that agreement to reflect the foregoing increase in your Compensation Upon
Severance, and (3) Section 4.1(a) of that agreement to alter the definition of “Benefit Period” to
mean “six (6) month period” rather than “two (2) month period.”
The foregoing are the only changes to the terms of the Employment Agreement to be made at this
time. Please indicate your agreement to these modifications of the Employment Agreement by
countersigning the enclosed copy of this letter in the space provided below and returning the same
to me for the Company’s files.
Thank you for your cooperation.
Sincerely, |
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/s/ XXXXX XXXX | ||||
Xxxxx Xxxx, M.D., Ph.D | ||||
President | ||||
Acknowledged and accepted this 5th day of December, 2007.
/s/ XXX XXXXXXXX | ||||
Xxx Xxxxxxxx | ||||