EXHIBIT 10.20
EMPLOYMENT AGREEMENT
April 12, 2000
Xxxxxx X. Xxxxxxx
00 Xxxxx Xxxx Xxxx
Xxxxxx, XX 00000
Dear Xxx:
This employment agreement amendment updates sections of the
original employment agreement effective March 8, 1999. All other sections of
the original employment agreement continue in effect and are reaffirmed.
B. COMPENSATION
SALARY: Your salary will be $150,000 per annum effective April 15, 2000,
subject to annual cost of living increases based on the Consumer Price Index
for All Items, All Urban Consumers for the Los Angeles-Anaheim-Riverside, CA
area or such greater increase as may be approved by the Company's Board of
Directors in its discretion. Your salary shall be paid semi-monthly, subject
to standard payroll deductions and withholdings.
BONUS: You shall be entitled to an annual bonus based on the achievement of
certain benchmarks as set forth on Exhibit "A" attached hereto. You will be
eligible to earn a bonus of 40% of base salary, as adjusted for performance in
accordance with the benchmarks set forth in Exhibit "A." No bonus is payable
unless you are employed by the Company on December 31 of the applicable year.
All bonuses will be subject to the legal deductions and withholdings, etc. as
customary.
STOCK OPTION GRANT: The Company INTENDS to grant you additional stock options
to purchase common stock of the Company. These grants will be determined by
mutual agreement with the intent of completing this process prior to May 31,
2000.
D. TERMINATION
If the Company terminates your employment without cause you
will receive as your sole severance, your base salary for six (6) months
payable semi-monthly, subject to standard payroll deductions and
withholdings. These payments shall cease immediately if you violate any
provision of this agreement, including the provisions of Section F. If the
Company exercises this right to terminate your employment without cause, no
compensation will be owed to you other than the severance payment referred to
in the previous sentences.
Sincerely,
Obagi Medical Products, Inc.
By: /s/ Xxxxxx Xxxx
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Xxxxxx Xxxx, President
Accepted By: /s/ Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxx
