February 13, 2007 Steven Halladay 3260 Whipple Road Union City, California 94587 RE: Amendment to Change-in-Control Agreement Dear Mr. Halladay:
Exhibit 10.6
February 13, 2007
Xxxxxx Xxxxxxxx
0000 Xxxxxxx Xxxx
Xxxxx Xxxx, Xxxxxxxxxx 00000
0000 Xxxxxxx Xxxx
Xxxxx Xxxx, Xxxxxxxxxx 00000
RE: Amendment to Change-in-Control Agreement
Dear Xx. Xxxxxxxx:
This letter (this “Amendment”) amends that certain Change-in-Control Agreement (the “Original
Agreement”) entered into by and between you and Questcor Pharmaceuticals, Inc., a California
corporation (“Questcor”) in connection with your commencement of employment at Questcor. Unless
otherwise modified by this Amendment, the Original Agreement remains in full force and effect.
This Amendment, once fully executed and delivered by Questcor and you, entitles you to receive
the benefits set forth in this Amendment in the event of certain Changes in Control (as defined in
The Questcor Pharmaceuticals Incorporated 1992 Stock Option Plan (the “1992 Plan) or the 2006
Equity Incentive Award Plan (the “2006 Plan”). You shall receive no benefits under this Amendment
unless there has been a Change in Control.
1. Cash Severance. In the event that a Change in Control occurs, and your employment
with the Company is terminated as a result of an Involuntary Termination (as defined below) at any
time within the twelve (12) month period commencing on the date of such Change in Control, you will
receive severance compensation equal to the sum of (i) an amount equal to the product of your
minimum annual base salary in effect as of the date of termination multiplied by the number one
(1), plus (ii) an amount equal to the product of your target bonus as established by the Board of
Directors or its Compensation Committee for the year during which the termination takes place
multiplied by the number one (1) (the “Severance Payment”). If payment is due to you as a result
of you terminating your employment for Good Reason, then the Severance Payment shall be paid as
follows: (1) if, on the date you terminate your employment for Good Reason, the Company is a
reporting company under the Securities Exchange Act of 1934 (the “Exchange Act”), then you will be
entitled to receive such payment in a single lump sum on the first business day that occurs at the
end of the period commencing on the date of termination and ending six months after the last day of
the calendar month in which the date of termination occurs (e.g., if you terminate your employment
on March 15, 2007, the Company will pay the amount specified herein on the first business day
immediately following September 30, 2007); (2) however, if the Company is not a reporting company
under the Exchange Act at the time you terminate your employment for Good Reason, you shall be
entitled to receive such payment in a single lump sum on the fifth business day following your
termination of employment. If paid upon a Change in Control, the Severance Payment shall be in
lieu of, and not in addition to, the payment of any cash severance payments that you may otherwise
be entitled to under your Offer Letter.
2. At-Will Employment. Nothing contained in this Amendment shall (i) confer upon you
any right to continue in the employ of the Company, (ii) constitute any contract or agreement of
employment, or (iii) interfere in any way with the at-will nature of your employment with the
Company.
3. Entire Agreement. This Amendment, the Original Agreement, the Offer Letter, the
Plan and any Option Agreements or Restricted Stock Award Agreement set forth the entire agreement
of the parties hereto in respect of the accelerated vesting of stock options or restricted stock
held by you and supersede all prior agreements, promises, covenants, arrangements, communications,
representations or warranties, whether oral or written, by any officer, employee or representative
of any party hereto, and any prior agreement of the parties hereto in respect of the accelerated
vesting of stock options held by you, is hereby terminated and cancelled.
4. Miscellaneous. No provision of this Amendment may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by you
and such officer as may be specifically designated by the Board. No waiver by either party hereto
at any time of any breach by the other party hereto of or compliance with, any condition or
provision of this Amendment to be performed by such other party shall be deemed a waiver of similar
or dissimilar provisions or conditions at the same or at any prior or subsequent time. No
agreements or representations, oral or otherwise, express or implied, with respect to the subject
matter hereof have been made by either party which are not expressly set forth in this Amendment.
The validity, interpretation, construction and performance of this Amendment shall be governed by
the laws of the State of California without regard to its conflicts of law principles. The section
headings contained in this Amendment are for convenience only, and shall not affect the
interpretation of this Amendment.
Please indicate your acceptance of this Amendment by returning a signed copy of this Amendment.
| Sincerely, |
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| /s/ Xxxxx X. Fares | ||||
| Xxxxx X. Fares | ||||
| Chief Executive Officer Questcor Pharmaceuticals, Inc. |
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Accepted by,
/s/ Xxxxxx Xxxxxxxx
|
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Xxxxxx Xxxxxxxx |
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Date: February 14, 2007 |
