Employment Agreement Amendment between Obagi Medical Products, Inc. and Joseph W. Sortais (April 12, 2000)

Summary

This amendment updates the employment agreement between Obagi Medical Products, Inc. and Joseph W. Sortais. It sets Mr. Sortais's annual salary at $150,000 effective April 15, 2000, with annual cost of living increases and eligibility for a performance-based bonus of up to 40% of base salary. The company also intends to grant additional stock options by mutual agreement. If Mr. Sortais is terminated without cause, he will receive six months of base salary as severance, unless he violates the agreement. All other terms of the original agreement remain in effect.

EX-10.20 21 a2028118zex-10_20.txt EXHIBIT 10.20 EXHIBIT 10.20 EMPLOYMENT AGREEMENT April 12, 2000 Joseph W. Sortais 12 Cedar Tree Lane Irvine, CA 92612 Dear Joe: 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/ Philip Rose ----------------------------------------- Philip Rose, President Accepted By: /s/ Joseph W. Sortais -------------------------------- Joseph W. Sortais