Document:

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Exhibit 10.1

SUCAMPO PHARMACEUTICALS, INC

AMENDED & RESTATED

2001 STOCK INCENTIVE PLAN

Section 1. Purpose of the Plan.

     The purpose of this Plan (as defined below) is to promote the interests of Sucampo
Pharmaceuticals, Inc., a Delaware corporation, and its stockholders by aiding in maintaining and
developing employees, officers, consultants, independent contractors and Directors capable of
assuring the future success of the Company to offer such persons additional incentives to put forth
maximum efforts for the success of the business, and to afford them an opportunity to acquire a
proprietary interest in the Company.

Section 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Affiliate” shall mean (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which the Company has a
significant equity interest, in each case as determined by the Committee.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Award, Other Stock Grant or Other Stock-Based Award granted under the Plan.

     (c) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted under the Plan.

     (d) “Board” shall mean the Board of Directors of the Company.

     (e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder.

     (f) “Committee” shall mean a committee of Directors designated by the Board to administer the
Plan.

     (g) “Common Stock” shall mean the common stock, $.01 par value per share, of the Company.

     (h) “Company” shall mean Sucampo Pharmaceuticals, Inc., a Delaware corporation, and any
successor corporation.

     (i) “Director” shall mean a member of the Board.

     (j) “Effective Date” shall mean the date given in Section 15 of the Plan.

 

 

     (k) “Eligible Person” shall mean any employee, officer, consultant, independent contractor or
Director providing services to the Company or any Affiliate whom the Committee determines to be an
Eligible Person.

     (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (m) “Fair Market Value” shall mean, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such property determined by
such methods or procedures as shall be reasonably established in good faith from time to time by
the Committee.

     (n) “Incentive Stock Option” shall mean an Option granted under Section 6(a) of the Plan that
is intended to meet the requirements of Section 422 of the Code or any successor provision.

     (o) “Non-Qualified Stock Option” shall mean an Option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (p) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option, and shall
include Reload Options.

     (q) “Other Stock Grant” shall mean any right granted under Section 6(e) of the Plan.

     (r) “Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.

     (s) “Participant” shall mean an Eligible Person designated to be granted an Award under the
Plan.

     (t) “Performance Award” shall mean any right granted under Section 6(d) of the Plan.

     (u) “Person” shall mean any individual, corporation, partnership, association or trust.

     (v) “Plan” shall mean the Sucampo Pharmaceuticals, Inc. 2001 Stock Incentive Plan, as amended
from time to time, the provisions of which are set forth herein.

     (w) “Reload Option” shall mean any Option granted under Section 6(a)(iv) of the Plan.

     (x) “Restricted Stock” shall mean any Shares granted under Section 6(c) of the Plan.

     (y) “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share (or a cash payment equal to the Fair Market Value of a
Share) at some future date.

     (z) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act, or any successor rule or regulation.

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     (aa) “Shares” shall mean shares of Class A Common Stock, $.01 par value per share, of the
Company or such other securities or property as may become subject to Awards pursuant to an
adjustment made under Section 4(c) of the Plan.

     (bb) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

Section 3. Stock Subject to the Plan.

     (a) Subject to adjustment as provided in Section 8, the maximum number of Shares that may be
issued under all Awards under the Plan shall be 350,000, and the maximum number of Shares available
for granting Incentive Stock Options under the Plan shall not exceed 350,000, subject to adjustment
as provided in Section 8 and subject to the provisions of Section 422 or 424 of the Code or any
successor provision. The Shares may be either authorized but unissued Shares or issued Shares that
have been reacquired by the Company. Any Shares that are used by a Participant as full or partial
payment to the Company of the purchase price relating to an Award, or in connection with the tax
obligations relating to an Award, shall again be available for granting Awards (other than
Incentive Stock Options) under the Plan. In addition, if any Shares covered by an Award or to
which an Award relates are not purchased or are forfeited, or if an Award otherwise terminates
without delivery of any Shares, then the number of Shares counted against the aggregate number of
Shares available under the Plan with respect to such Award, to the extent of any such forfeiture or
termination, shall again be available for granting Awards under the Plan. If an Option under this
Plan expires or for any reason is terminated or expires unexercised with respect to any Shares,
such Shares shall again be available for Options thereafter granted during the term of this Plan.

     (b) Commencing at such time, as the Company’s Shares becomes registered under Section 12 of
the Exchange Act, no Person may be granted any Award or Awards under this Plan, the value of which
is based solely on an increase in the value of the Shares after the date of grant, for more than
100 Shares (subject to adjustment as provided for in Section 8) in the aggregate in any calendar
year. The foregoing annual limitation specifically includes the grant of any Award or Awards
representing “qualified performance-based compensation” within the meaning of Section 162(m) of the
Code.

Section 4. Administration of Plan.

     (a) This Plan shall be administered by the Board or the Committee. The members of the
Committee shall be appointed by and serve at the pleasure of the Board. Commencing at such time as
the Company’s Common Stock becomes registered under Section 12 of the Exchange Act, the Committee
shall consist of not less than that number of Directors that shall be required to permit Awards
granted under this Plan to qualify under Rule 16b-3 (or any successor rule or regulation)
promulgated by the Securities and Exchange Commission under the Exchange Act, as amended, each of
whom shall be a “Non-Employee Director” within the meaning of such Rule. If the Company is subject
to Section 162(m) of the Code, the Company expects to have this Plan administered in accordance
with the requirements for the award of “qualified performance-based compensation” within the
meaning of such Section and each member of the Committee shall be an “outside director” within the
meaning of such Section. If the Committee

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is established, the Board may, at any time and from time to time, without any further action
of the Committee, exercise the powers and duties of the Committee under this Plan.

     The Committee shall have plenary authority in its discretion, but subject to the express
provisions of this Plan, to (i) designate Participants; (ii) determine the type or types of Awards
to be granted to each Participant under the Plan; (iii) determine the number of Shares to be
covered by (or with respect to which payments, rights or other matters are to be calculated in
connection with) each Award; (iv) determine the terms and conditions of any Award or Award
Agreement; (v) amend the terms and conditions of any Award or Award Agreement and accelerate the
exercisability of Options or the lapse of restrictions relating to Restricted Stock, Restricted
Stock Units or other Awards; (vi) determine whether, to what extent and under what circumstances
Awards may be exercised in cash, Shares, other securities, other Awards or other property, or
canceled, forfeited or suspended; (vii) determine whether, to what extent and under what
circumstances cash, Shares, promissory notes, other securities, other Awards, other property and
other amounts payable with respect to an Award under the Plan shall be deferred either
automatically or at the election of the holder thereof or the Committee; (viii) interpret and
administer the Plan and any instrument or agreement, including an Award Agreement, relating to the
Plan; (ix) establish, amend, suspend or waive such rules and regulations and appoint such agents as
it shall deem appropriate for the proper administration of the Plan; and (x) make any other
determination and take any other action that the Committee deems necessary or desirable for the
administration of the Plan, subject to the exclusive authority of the Board under Section 13 to
amend or terminate this Plan. The Committee’s determinations on the foregoing matters, unless
otherwise disapproved by the Board, shall be final and conclusive.

     (b) The Committee shall select one of its members as its Chair and shall hold its meetings at
such times and places as it may determine. A majority of its members shall constitute a quorum.
All determinations of the Committee shall be made by not less than a majority of its members. Any
decision or determination that is set forth in a written document and signed by all of the members
of the Committee shall be fully effective as if it had been made by a majority vote at a meeting
duly called and held. The Committee may appoint a Secretary and may make such rules and
regulations for the conduct of its business as it shall deem advisable.

     (c) Power and Authority of the Board. Notwithstanding anything to the contrary contained
herein, the Board may, at any time and from time to time, without any further action of the
Committee, exercise the powers and duties of the Committee under the Plan.

Section 5. Eligibility.

     Any Eligible Person shall be eligible to be designated a Participant. In determining which
Eligible Persons shall receive an Award and the terms of any Award, the Committee may take into
account the nature of the services rendered by the respective Eligible Persons, their present and
potential contributions to the success of the Company or such other factors as the Committee, in
its discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive Stock Option may
only be granted to full or part-time employees (which term as used herein includes, without
limitation, officers and Directors who are also employees), and an Incentive Stock Option shall not
be granted to an employee of an Affiliate unless such Affiliate is also a

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“subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code or
any successor provision.

Section 6. Awards.

     (a) Options. The Committee is hereby authorized to grant Options to Participants with
the following terms and conditions and with such additional terms and conditions not inconsistent
with the provisions of the Plan as the Committee shall determine:

          (i) Exercise Price. The purchase price per Share purchasable under an Option shall be
determined by the Committee; provided, however, that such purchase price shall not be less than
100% of the Fair Market Value of a Share on the date of grant of such Option.

          (ii) Option Term. The term of each Option shall be fixed by the Committee.

          (iii) Time and Method of Exercise. The Committee shall determine the time or times at
which an Option may be exercised in whole or in part and the method or methods by which, and the
form or forms (including, without limitation, cash, Shares, promissory notes, other securities,
other Awards or other property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the relevant exercise price) in which, payment of the exercise price with
respect thereto may be made or deemed to have been made.

          (iv) Reload Options. The Committee may grant Reload Options, separately or together
with another Option, pursuant to which, subject to the terms and conditions established by the
Committee, the Participant would be granted a new Option when the payment of the exercise price of
a previously granted Option is made by the delivery of Shares owned by the Participant pursuant to
Section 6(a)(iii) of the Plan or the relevant provisions of another plan of the Company, and/or
when Shares are tendered or withheld as payment of the amount to be withheld under applicable
income tax laws in connection with the exercise of an Option, which new Option would be an Option
to purchase the number of Shares not exceeding the sum of (A) the number of Shares so provided as
consideration upon the exercise of the previously granted option to which such Reload Option
relates and (B) the number of Shares, if any, tendered or withheld as payment of the amount to be
withheld under applicable tax laws in connection with the exercise of the option to which such
Reload Option relates pursuant to the relevant provisions of the plan or agreement relating to such
option. Reload Options may be granted with respect to Options previously granted under the Plan or
any other stock option plan of the Company or may be granted in connection with any Option granted
under the Plan or any other stock option plan of the Company at the time of such grant. Such
Reload Options shall have a per share exercise price equal to the Fair Market Value of one Share as
of the date of grant of the new Option. Any Reload Option shall be subject to availability of
sufficient Shares for grant under the Plan.

          (v) With respect to Incentive Stock Options granted under the Plan, to the extent that the
aggregate Fair Market Value (determined at the time the Incentive Stock Option is granted) of the
Shares with respect to which all Incentive Stock Options are exercisable for the first time by an
employee during any calendar year exceeds $100,000, in accordance with Section 422A(d) of the Code,
such Options shall be treated as Non-Qualified Stock Options.

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     (b) Stock Appreciation Rights. The Committee is hereby authorized to grant Stock
Appreciation Rights to Participants subject to the terms of the Plan and any applicable Award
Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a
right to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the
date of exercise (or, if the Committee shall so determine, at any time during a specified period
before or after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as
specified by the Committee, which price shall not be less than 100% of the Fair Market Value of one
Share on the date of grant of the Stock Appreciation Right. Subject to the terms of the Plan and
any applicable Award Agreement, the grant price, term, methods of exercise, dates of exercise,
methods of settlement and any other terms and conditions of any Stock Appreciation Right shall be
as determined by the Committee. The Committee may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate.

     (c) Restricted Stock and Restricted Stock Units. The Committee is hereby authorized
to grant Restricted Stock and Restricted Stock Units to Participants with the following terms and
conditions and with such additional terms and conditions not inconsistent with the provisions of
the Plan as the Committee shall determine:

          (i) Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be
subject to such restrictions as the Committee may impose (including, without limitation, a waiver
by the Participant of the right to vote or to receive any dividend or other right or property with
respect thereto), which restrictions may lapse separately or in combination at such time or times,
in such installments or otherwise as the Committee may deem appropriate. To effect such
restrictions as the Committee may deem appropriate, the Company may require that the Participant
execute and deliver a stockholder’s agreement which may contain further restrictions on voting and
transfer of the Shares covered by the Restricted Stock Award.

          (ii) Stock Certificates. Any Restricted Stock granted under the Plan shall be
registered in the name of the Participant and shall bear an appropriate legend referring to the
terms, conditions and restrictions applicable to such Restricted Stock. In the case of Restricted
Stock Units, no Shares shall be issued at the time such Awards are granted.

          (iii) Forfeiture. Except as otherwise determined by the Committee, upon termination
of employment (as determined under criteria established by the Committee) during the applicable
restriction period, all Shares of Restricted Stock and all Restricted Stock Units at such time
subject to restriction shall be forfeited and reacquired by the Company; provided, however, that
the Committee may, when it finds that a waiver would be in the best interest of the Company, waive
in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock or
Restricted Stock Units. Upon the lapse or waiver of restrictions and the restricted period
relating to Restricted Stock Units evidencing the right to receive Shares, such Shares shall be
issued and delivered to the holders of the Restricted Stock Units.

     (d) Performance Awards. The Committee is hereby authorized to grant Performance
Awards to Participants subject to the terms of the Plan and any applicable Award Agreement. A
Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares
(including, without limitation, Restricted Stock and Restricted Stock Units), other securities,

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other Awards or other property and (ii) shall confer on the holder thereof the right to
receive payments, in whole or in part, upon the achievement of such performance goals during such
performance periods as the Committee shall establish. Subject to the terms of the Plan and any
applicable Award Agreement, the performance goals to be achieved during any performance period, the
length of any performance period, the amount of any Performance Award granted, the amount of any
payment or transfer to be made pursuant to any Performance Award and any other terms and conditions
of any Performance Award shall be determined by the Committee.

     (e) Other Stock Grants. The Committee is hereby authorized, subject to the terms of
the Plan and any applicable Award Agreement, to grant to Participants Shares without restrictions
thereon as are deemed by the Committee to be consistent with the purpose of the Plan.

     (f) Other Stock-Based Awards. The Committee is hereby authorized to grant to
Participants subject to the terms of the Plan and any applicable Award Agreement, such other Awards
that are denominated or payable in, valued in whole or in part by reference to, or otherwise based
on or related to, Shares (including, without limitation, securities convertible into Shares), as
are deemed by the Committee to be consistent with the purpose of the Plan. Shares or other
securities delivered pursuant to a purchase right granted under this Section 6(f) shall be
purchased for such consideration, which may be paid by such method or methods and in such form or
forms (including, without limitation, cash, Shares, promissory notes, other securities, other
Awards or other property or any combination thereof), as the Committee shall determine, the value
of which consideration, as established by the Committee, shall not be less than 100% of the Fair
Market Value of such Shares or other securities as of the date such purchase right is granted.

     (g) General.

          (i) No Cash Consideration for Awards. Awards shall be granted for no cash
consideration or for such minimal cash consideration as may be required by applicable law.

          (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with or in substitution for any
other Award or any award granted under any plan of the Company or any Affiliate other than the
Plan. Awards granted in addition to or in tandem with other Awards or in addition to or in tandem
with awards granted under any such other plan of the Company or any Affiliate may be granted either
at the same time as or at a different time from the grant of such other Awards or awards.

          (iii) Forms of Payment under Awards. Subject to the terms of the Plan and of any
applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon
the grant, exercise or payment of an Award may be made in such form or forms as the Committee shall
determine (including, without limitation, cash, Shares, promissory notes, other securities, other
Awards or other property or any combination thereof), and may be made in a single payment or
transfer, in installments or on a deferred basis, in each case in accordance with rules and
procedures established by the Committee. Such rules and procedures may

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include, without limitation, provisions for the payment or crediting of reasonable interest on
installment or deferred payments.

          (iv) Limits on Transfer of Awards. No Award (other than Other Stock Grants) and no
right under any such Award shall be transferable by a Participant otherwise than by will or by the
laws of descent and distribution; provided, however, that, if so determined by the Committee, a
Participant may, in the manner established by the Committee, transfer Options (other than Incentive
Stock Options) or designate a beneficiary or beneficiaries to exercise the rights of the
Participant and receive any property distributable with respect to any Award upon the death of the
Participant. Each Award or right under any Award shall be exercisable during the Participant’s
lifetime only by the Participant or, if permissible under applicable law, by the Participant’s
guardian or legal representative. No Award or right under any such Award may be pledged,
alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or
encumbrance thereof shall be void and unenforceable against the Company or any Affiliate.

          (v) Term of Awards. The term of each Award shall be for such period as may be
determined by the Committee.

          (vi) Restrictions; Securities Exchange Listing. All Shares or other securities
delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such
restrictions as the Committee may deem advisable under the Plan, applicable federal or state
securities laws and regulatory requirements, and the Committee may cause appropriate entries to be
made or legends to be affixed to reflect such restrictions. If any securities of the Company are
traded on a securities exchange, the Company shall not be required to deliver any Shares or other
securities covered by an Award unless and until such Shares or other securities have been admitted
for trading on such securities exchange.

          (vii) Restrictions on Shares. (A) At the discretion of the Board, the Company may
reserve to itself or its assignee(s) in the Award (1) a right of first refusal to purchase any
Shares that a Participant (or a subsequent transferee) may propose to transfer to a third party and
(2) a right to repurchase any or all Shares of Restricted Stock held by a Participant upon such
Participant’s termination of employment or service with the Company or Affiliate for any reason
within a specified time as determined by the Board at the time of grant. To effect such
restrictions as the Committee may deem appropriate, the Company may require that the Participant
execute and deliver a stockholder’s agreement which may contain further restrictions on voting and
transfer of the Shares covered by Award.

Section 7. Ten Percent Shareholder Rule.

     Notwithstanding any other provision in this Plan, if at the time an Award is otherwise to be
granted pursuant to this Plan the Participant owns directly or indirectly (within the meaning of
Section 424(d) of the Code) Shares constituting more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or its parent or subsidiary corporations
(within the meaning of Section 424(e) or 424(f) of the Code), if any, then any Award to be granted
to such Participant pursuant to this Plan shall satisfy the requirements of Section 422(c)(7) of
the Code, the option price shall be not less than 110% of the fair market

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value of the Shares determined as described herein, and such Award by its terms shall not be
exercisable after the expiration of five (5) years from the date such Award is granted.

Section 8. Adjustments.

     If the Committee shall determine that, as the result of any change in the Shares or other
securities of the Company through merger, consolidation, reorganization, recapitalization, stock
dividend (of whatever amount), stock split or other similar corporate transaction or change in the
corporate structure of the Company, adjustments in this Plan and outstanding Options would be
appropriate to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under this Plan, then the Committee shall make such adjustments in this Plan and
outstanding Awards as it may deem equitable. In the event of any such changes, adjustments shall
include, where appropriate, changes in the number and type of Shares subject to this Plan and the
number and type of Shares and the price per Share subject to outstanding Awards; provided, however,
that the number of Shares covered by any Award or to which such Award relates shall always be a
whole number.

Section 9. Income Tax Withholding; Tax Bonuses.

     (a) In order to comply with all applicable domestic or foreign income tax laws or regulations,
the Company may take such action as it deems appropriate to ensure that all applicable federal,
state or local payroll, withholding, income or other taxes, which are the sole and absolute
responsibility of a Participant are withheld or collected from such Participant. In order to
assist a Participant in paying all or a portion of the federal, state or local taxes to be withheld
or collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the
Committee, in its discretion and subject to such additional terms and conditions as it may adopt,
may permit the Participant to satisfy such tax obligation by (i) electing to have the Company
withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or the
lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such
taxes, or (ii) delivering to the Company Shares other than Shares issuable upon exercise or receipt
of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes. The election, if any, must be made on or before the date that the amount of
tax to be withheld is determined.

     (b) The Committee, in its discretion, shall have the authority, at the time of grant of any
Award under this Plan or at any time thereafter, to approve cash bonuses to designated Participants
to be paid upon their exercise or receipt of (or the lapse of restrictions relating to) the Award
in order to provide funds to pay all or a portion of federal, state or local taxes due as a result
of such exercise or receipt (or the lapse of restrictions relating to). The Committee shall have
full authority in its discretion to determine the amount of any such tax bonus.

Section 10. Amendment and Termination.

     (a) The Board may amend, alter, suspend, discontinue or terminate this Plan at any time;
provided, however, that notwithstanding any other provision of this Plan or any Award Agreement,
without the approval of the stockholders of the Company, no such amendment, alteration, suspension,
discontinuation or termination shall be made that, absent such approval (i)

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would violate the rules or regulations of any securities exchange (including The Nasdaq Stock
Market) that are applicable to the Company; or (ii) would cause the Company to be unable, under the
Code, to grant Incentive Stock Awards under this Plan.

     (b) The Committee may waive any conditions of or rights of the Company under any outstanding
Award, prospectively or retroactively. Except as otherwise provided herein or in the Award
Agreement, the Committee may not amend, alter, suspend, discontinue or terminate any outstanding
Award, prospectively or retroactively, if such action would adversely affect the rights of the
holder of such Award, without the consent of the holder or beneficiary thereof.

     (c) The Committee may correct any defect, supply any omission or reconcile any inconsistency
in this Plan or any Award Agreement in the manner and to the extent it shall deem desirable to
carry this Plan into effect.

Section 11. Time of Granting.

     The granting of an Award pursuant to this Plan shall be effective only if an Award Agreement
shall have been duly executed and delivered by and on behalf of the Company and the person to whom
such Award is granted. Nothing contained in this Plan or in any resolution adopted or to be
adopted by the Board or by the stockholders of the Company, and no action taken by the Committee or
the Board (other than the execution and delivery of such Award Agreement), shall constitute the
granting of an Award hereunder.

Section 12. No Right to Awards; No Guaranty of Continued Service or Future Benefits.

     (a) No Eligible Person, Participant or other Person shall have any claim to be granted any
Award under this Plan, and there is no obligation for uniformity of treatment of Eligible Persons,
Participants or holders or beneficiaries of Awards under this Plan. The terms and conditions of
Awards need not be the same with respect to any Participant or with respect to different
Participants.

     (b) Nothing in this Plan or in any Award Agreement hereunder shall confer on any employee,
Director, consultant or independent contractor any right to continue in the employ or service of
the Company or any of its Affiliates or affect in any way the right of the Company or any of its
Affiliates to terminate any such person’s employment or other services at any time, with or without
cause. In addition, the Company or an Affiliate may at any time terminate the employment or
service of an employee, Director, consultant or independent contractor free from any liability or
any claim under this Plan or any Award or Award Agreement, unless otherwise expressly provided in
this Plan or in any such Award or Award Agreement.

     (c) Awards shall be granted under this Plan in the sole discretion of the Board or the
Committee and will not form part of the Participant’s salary or other compensation or entitle the
Participant to similar Award grants in the future.

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Section 13. General Provisions.

     (a) Nothing in this Plan shall prevent the Company or any Affiliate from adopting or
continuing in effect other or additional compensation arrangements, and such arrangements may be
either generally applicable or applicable only in specific cases.

     (b) The validity, construction and effect of this Plan or any Award hereunder, and any rules
and regulations relating to this Plan or any Award hereunder, shall be determined in accordance
with the laws of the State of Delaware.

     (c) If any provision of this Plan or any Award Agreement hereunder is or becomes or is deemed
to be invalid, illegal or unenforceable in any jurisdiction or would disqualify this Plan or any
Award Agreement hereunder under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially altering the purpose or
intent of this Plan hereunder, such provision shall be stricken as to such jurisdiction or Award
Agreement, and the remainder of this Plan or any such Award Agreement shall remain in full force
and effect.

     (d) Neither this Plan nor any Award Agreement hereunder shall create or be construed to create
a trust or separate fund of any kind or a fiduciary relationship between the Company or any
Affiliate of the Company and a Participant or any other Person.

     (e) Fractional Shares may be issued or delivered pursuant to this Plan or any Award hereunder;
provided that the Committee may determine whether cash shall be paid in lieu of any fractional
Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or
otherwise eliminated.

     (f) Headings are given to the Sections and subsections of this Plan solely as a convenience to
facilitate reference. Such headings shall not be deemed in any way material or relevant to the
construction or interpretation of this Plan or any provision hereof.

Section 14. Effective Date and Termination of Plan.

     (a) This Plan shall be effective as of February 15, 2001 (the “Effective Date).

     (b) Unless this Plan shall have been discontinued as provided in Section 10 above, this Plan
shall terminate on December 31, 2010. No Award may be granted after such termination, but
termination of this Plan shall not, without the consent of the recipient, alter or impair any
rights or obligations under any Award theretofore granted.

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Exhibit 10.10

     On June 16, 2006, the Registrant entered into an employment agreement substantially
similar to the attached agreement with each of the following executive officers:

	 	 	 	 	 
	Executive	 	Salary	 
	Mariam E. Morris
	 	 	 	 
	Chief
Financial Officer and Treasurer
	 	$	160,000	 
	 
	 	 	 	 
	Brad E. Fackler
	 	 	 	 
	Executive
Vice President of Commercial Operations
	 	$	220,000	 
	 
	 	 	 	 
	Gayle R. Dolecek
	 	 	 	 
	Senior Vice
President of Research and Development
	 	$	135,000	 
	 
	 	 	 	 
	Kei S. Tolliver
	 	 	 	 
	Vice
President of Business Development and Company Operations and Secretary
	 	$	112,832	 
	 
	 	 	 	 
	Charles S. Hrushka
	 	 	 	 
	Vice President of Marketing
	 	$	165,000	 

 

 

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”), dated as of                               , 2006
(the “Effective Date”), is hereby entered into in the State of Maryland by and between
SUCAMPO PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), and
                               (“Executive”).

     WHEREAS, Executive has been employed by the Company for some time, most recently pursuant to
the terms of an Employment Agreement effective as of                               ;

     WHEREAS, Executive possesses certain skills, experience or expertise which will be of use to
the Company;

     WHEREAS, the parties acknowledge that Executive’s abilities and services are unique and will
significantly enhance the business prospects of the Company; and

     WHEREAS, in light of the foregoing, the Company desires to continue to employ Executive as its
                               and Executive desires to remain in such employment.

     NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements
herein contained, the Company and Executive hereby agree as follows:

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Article 1. Employment Agreement

     1.1 Employment and Duties

     The Company offers and Executive hereby accepts employment with the Company for the Term (as
hereinafter defined) as its                               , and in connection therewith, to perform such
duties as Executive shall reasonably be assigned by Executive’s supervisor and/or by the Company’s
Board of Directors. Executive hereby warrants and represents that Executive has no contractual
commitments or other obligations to third parties inconsistent with Executive’s acceptance of this
employment and performance of the obligations set forth in this Agreement. Executive shall perform
such duties and carry out Executive’s responsibilities hereunder faithfully and to the best of
Executive’s ability, and shall devote Executive’s full business time and best efforts to the
business and affairs of the Company during normal business hours (exclusive of periods of vacation,
sickness, disability, or other leaves to which Executive is entitled). Executive will perform all
of Executive’s responsibilities in compliance with all applicable laws and will ensure that the
operations that Executive manages are in compliance with all applicable laws.

Article 2. Employment Term

     2.1 Term

     The term of Executive’s employment hereunder (the “Term”) shall be deemed to commence
on the Effective Date and shall end on the second anniversary of the Effective Date, unless sooner
terminated as hereinafter provided; provided, however, that the Term shall be
automatically renewed and extended for an additional period of one (1) year on each anniversary

3

 

thereafter unless either party gives a Notice of Termination (as defined below) to the other
party at least sixty (60) days prior to such anniversary.

     2.2 Survival on Merger or Acquisition

     In the event the Company is acquired during the Term, or is the non-surviving party in a
merger, or sells all or substantially all of its assets, this Agreement shall not automatically be
terminated, and the Company agrees to use its best efforts to ensure that the transferee or
surviving company shall assume and be bound by the provisions of this Agreement.

Article 3. Compensation and Benefits

     3.1 Compensation

     (a) Base Salary. The Company shall pay Executive a salary at an annual rate
that is not less than $___, to be paid in bi-weekly installments, in arrears (the
“Base Salary”). Thereafter, the Base Salary will be reviewed by the Compensation
Committee of the Board of Directors (“Compensation Committee”) at least annually, and the
Committee’s recommendation shall be reviewed and approved by the Board of Directors. The
Base Salary may, in the sole discretion of the Board of Directors, be increased, but not
decreased (unless mutually agreed by Executive and the Company).

     (b) Stock Compensation. At least annually for the Term of this Agreement,
Executive shall be eligible for consideration to receive restricted stock grants, incentive
stock options or other awards in accordance with the 2006 Stock Incentive Plan.
Recommendations concerning the decision to make an award pursuant to that Plan and the
amount of any award are entirely discretionary and shall be made initially by the

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Compensation Committee, subject to review and approval by the Board of Directors. In
the event that, during the Term (i) the Company is acquired or is the non-surviving party in
a merger, or (ii) the Company sells all or substantially all of its assets, or (iii) in the
event of the death of Executive, all unvested restricted stock awards and incentive stock
options having previously been awarded to Executive shall immediately vest and may be
exercised in accordance with the terms of the Plan and the Executive’s grant award.

     (c) Bonuses. Executive shall be eligible to receive an annual bonus award in
recognition of Executive’s contributions to the success of the Company pursuant to the
Company’s management incentive bonus program as it may be amended or modified from time to
time. Recommendations concerning the decision to make an award and the amount of any award
are entirely discretionary and shall be made initially by the Compensation Committee,
subject to review and approval by the Board of Directors.

     (d) Withholding Taxes. All compensation due to Executive shall be paid subject
to withholding by the Company to ensure compliance with all applicable laws and regulations.

     3.2 Participation in Benefit Plans

     Executive shall be entitled to participate in all employee benefit plans or programs of the
Company offered to other employees to the extent that Executive’s position, tenure, salary, and
other qualifications make Executive eligible to participate in accordance with the terms of such
plans. The Company does not guarantee the continuance of any particular employee benefit plan or
program during the Term, and Executive’s participation in any such plan or program shall be subject
to all terms, provisions, rules and regulations applicable thereto. Executive will be

5

 

entitled to                      vacation days per year, to be used and administered in accordance
with the Company’s vacation policy as it may change from time to time.

     3.3 Expenses

     The Company will pay or reimburse Executive for all reasonable and necessary out-of-pocket
expenses incurred by Executive in the performance of Executive’s duties under this Agreement.
Executive shall provide to the Company detailed and accurate records of such expenses for which
payment or reimbursement is sought, and Company payments shall be in accordance with the regular
policies and procedures maintained by the Company from time to time.

     3.4 Professional Organizations

     During the Term, Executive shall be reimbursed by the Company for the annual dues payable for
membership in professional societies associated with subject matter related to the Company’s
interests. New memberships for which reimbursement will be sought shall be approved by the Company
in advance.

     3.5 Parking

     During the Term, the Company shall either provide parking for Executive’s automobile at the
Company’s expense or reimburse Executive for such expense.

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Article 4. Termination of Employment

     4.1 Definitions

     As used in Article 4 of this Agreement, the following terms shall have the meaning set forth
for each below:

     (a) “Benefit Period” shall mean the two (2) month period commencing on the Date
of Termination which occurs in connection with a termination of employment described in the
first sentence of Section 4.4(a), or a period ending when Executive becomes eligible for
group medical benefits coverage from another source, whichever is shorter.

     (b) “Cause” shall mean any of the following:

     (i) the gross neglect or willful failure or refusal of Executive to perform
Executive’s duties hereunder (other than as a result of Executive’s death or
Disability);

     (ii) perpetration of an intentional and knowing fraud against or affecting the
Company or any customer, supplier, client, agent or employee thereof;

     (iii) any willful or intentional act that could reasonably be expected to
injure the reputation, financial condition, business or business relationships of
the Company or Executive’s reputation or business relationships;

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     (iv) conviction (including conviction on a nolo contendere plea) of a felony or
any crime involving fraud, dishonesty or moral turpitude;

     (v) the material breach by Executive of this Agreement (including, without
limitation, the Employment Covenants set forth in Article 5 of this Agreement); or

     (vi) the failure or continued refusal to carry out the directives of
Executive’s supervisor or the Board of Directors that are consistent with
Executive’s duties and responsibilities under this Agreement which is not cured
within thirty (30) days after receipt of written notice from the Company specifying
the nature of such failure or refusal; provided, however, that Cause
shall not exist if such refusal arises from Executive’s reasonable, good faith
belief that such failure or refusal is required by law.

     (c) “Date of Termination” shall mean the date specified in the Notice of
Termination (as hereinafter defined) (except in the case of Executive’s death, in which case
the Date of Termination shall be the date of death); provided, however, that
if Executive’s employment is terminated by the Company other than for Cause, the date
specified in the Notice of Termination shall be at least thirty (30) days from the date the
Notice of Termination is given to Executive.

     (d) “Notice of Termination” shall mean a written notice from the Company to
Executive that indicates Section 2 or the specific provision of Section 4 of this Agreement
relied upon as the reason for such termination or nonrenewal, the Date of Termination, and,
in the case of termination or non-renewal by the Company for Cause,

8

 

in reasonable detail, the facts and circumstances claimed to provide a basis for
termination or nonrenewal.

     (e) “Good Reason” shall mean:

     (i) Company effects a material diminution of Executive’s position, authority or
duties;

     (ii) any requirement that Executive, without his/her consent, move his/her
regular office to a location more than fifty (50) miles from Company’s executive
offices;

     (iii) the material failure by Company, or its successor, if any, to pay
compensation or provide benefits or perquisites to Executive as and when required by
the terms of this Agreement; or

     (iv) any material breach by Company of this Agreement.

     The Executive shall have Good Reason to terminate Executive’s employment if (i) within
twenty-one (21) days following Executive’s actual knowledge of the event which Executive
determines constitutes Good Reason, Executive notifies the Company in writing that Executive
has determined a Good Reason exists and specifies the event creating Good Reason, and (ii)
following receipt of such notice, the Company fails to remedy such event within twenty-one
(21) days. If either condition is not met, Executive shall not have a Good Reason to
terminate Executive’s employment.

     (f) “Change in Control” shall mean:

9

 

     (i) the acquisition by any person of beneficial ownership of fifty percent
(50%) or more of the outstanding shares of the Company’s voting securities; or

     (ii) the Company is the non-surviving party in a merger; or

     (iii) the Company sells all or substantially all of its assets; provided,
however, that no “Change in Control” shall be deemed to have occurred merely as the
result of a refinancing by the Company or as a result of the Company’s insolvency or
the appointment of a conservator; or

     (iv) the Compensation Committee of the Company, in its sole and absolute
discretion determines that there has been a sufficient change in the share ownership
or ownership of the voting power of the Company’s voting securities to constitute a
change of effective ownership or control of the Company.

     4.2 Termination Upon Death or Disability

     This Agreement, and Executive’s employment hereunder, shall terminate automatically and
without the necessity of any action on the part of the Company upon the death of Executive. In
addition, if at any time during the Term, Executive shall become physically or mentally disabled
(as determined by an independent physician competent to assess the condition at issue), whether
totally or partially, so that Executive is unable substantially to perform Executive’s duties and
services hereunder, with or without reasonable accommodation, for either (i) a period of sixty (60)
consecutive calendar days, or (ii) ninety (90) consecutive or non-consecutive calendar days during
any consecutive five (5) month period (the “Disability Date”), the Company

10

 

may terminate this Agreement and Executive’s employment hereunder by written notice to
Executive after the Disability Date (but before Executive has recovered from such disability).

     4.3 Company’s and Executive’s Right to Terminate

     This Agreement and Executive’s employment hereunder may be terminated at any time by the
Company for Cause or, if without Cause, upon thirty (30) days prior written notice to Executive.
In the event the Company should give Executive notice of termination without Cause, the Company
may, at its option, elect to provide Executive with thirty (30) days’ salary in lieu of Executive’s
continued active employment during the notice period. This Agreement and Executive’s employment
hereunder may be terminated by Executive at any time for Good Reason and, if without Good Reason,
upon thirty (30) days prior written notice to the Company.

     4.4 Compensation Upon Termination

     (a) Severance. In the event the Company terminates (or elects not to renew)
this Agreement without Cause or pursuant to Section 4.2 due to the disability of Executive,
or in the event Executive terminates this Agreement for Good Reason, Executive shall be
entitled to receive: (i) Executive’s Base Salary through the Date of Termination, (ii)
reimbursement of any COBRA continuation premium payments made by Executive for the Benefit
Period, and (iii) a lump sum severance payment equal to two (2) months of Executive’s then
current Base Salary to be made not later than ten (10) business days following the
expiration of the revocation period in Executive’s Release (as provided in Section 4.4(c)
below) without any revocation having occurred. Notwithstanding the foregoing, the Company
shall, to the extent necessary and only to the extent necessary, modify the timing of
delivery of severance benefits to Executive if the Company

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reasonably determines that the timing would subject the severance benefits to any
additional tax or interest assessed under Section 409A of the Internal Revenue Code. In
such event, the payments will be made as soon as practicable without causing the severance
benefits to trigger such additional tax or interest under Section 409A of the Internal
Revenue Code. In the event this Agreement is terminated (or not renewed) for any reason
other than by the Company without Cause or pursuant to Section 4.2 due to the disability of
Executive or by Executive for Good Reason, Executive shall not be entitled to the
continuation of any compensation, bonuses or benefits provided hereunder, or any other
payments following the Date of Termination, other than Base Salary earned through such Date
of Termination.

     (b) Change in Control. In the event that Executive is terminated other than
for “Cause” within eighteen (18) months following the occurrence of a “Change in Control” of
the Company, then Executive shall be entitled to a severance payment in an amount that is
two (2) times the amount specified in Section 4.4(a), clause (iii) above (the “Change in
Control Severance Payment”). In the event that Executive shall become entitled to a Change
in Control Severance Payment as provided herein, the Company shall cause its independent
auditors promptly to review, at the Company’s sole expense, the applicability to those
payments of Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”). If the auditors determine that any payment of the Change in Control Severance
Payment would be subject to the excise tax imposed by Section 4999 of the Code or any
interest or penalties with respect to such excise tax, then such payment owed to Executive
shall be reduced by an amount calculated to provide to

12

 

Executive the maximum Change in Control Severance Payment which will not trigger
application of Sections 280G and 4999 of the Code.

     (c) Release. Anything to the contrary contained herein notwithstanding, as a
condition to Executive receiving severance benefits to be paid pursuant to this Section 4.4,
Executive shall execute and deliver to the Company a general release in the form attached
hereto as Exhibit A. The Company shall have no obligation to provide any severance benefits
to Executive until it has received the general release from Executive and any revocation or
rescission period applicable to the Release shall have expired without revocation or
rescission.

Article 5. Employment Covenants

     5.1 Definitions

     As used in this Article 5 of the Agreement, the following terms shall have the meaning set
forth for each below:

     (a) “Affiliate” shall mean a person or entity that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or under common control
with another person or entity, including current and former directors and officers of such
an entity.

     (b) “Confidential Information” shall mean all confidential and proprietary
information of the Company, its Predecessors and Affiliates, whether in written, oral,
electronic or other form, including but not limited to trade secrets; technical, scientific
or business information; processes; works of authorship; Inventions; discoveries;

13

 

developments; systems; chemical compounds; computer programs; code; algorithms;
formulae; methods; ideas; test data; know how; functional and technical specifications;
designs; drawings; passwords; analyses; business plans; information regarding actual or
demonstrably anticipated business, research or development; marketing, sales and pricing
strategies; and information regarding the Company’s current and prospective consultants,
customers, licensors, licensees, investors and personnel, including their names, addresses,
duties and other personal characteristics. Confidential Information does not include
information that (i) is in the public domain, other than as a result of an act of
misappropriation or breach of an obligation of confidentiality by any person; (ii) Executive
can verify by written records kept in the ordinary course of business was in Executive’s
lawful possession prior to its disclosure to Executive; (iii) is received by Executive from
a third party without a breach of an obligation of confidentiality owed by the third party
to the Company and without the requirement that Executive keep such information
confidential; or (iv) Executive is required to disclose by applicable law, regulation or
order of a governmental agency or a court of competent jurisdiction. If Executive is
required to make disclosure pursuant to clause (iv) of the preceding sentence as a result of
the issuance of a court order or other government process, Executive shall (a) promptly, but
in no event more than 72 hours after learning of such court order or other government
process, notify, pursuant to Section 6.1 below, the Company; (b) at the Company’s expense,
take all reasonable necessary steps requested by the Company to defend against the
enforcement of such court order or other government process, and permit the Company to
intervene and participate with counsel of its choice in any proceeding relating to the
enforcement thereof; and (c) if such compelled disclosure is

14

 

required, Executive shall disclose only that portion of the Confidential Information
that is necessary to meet the minimum legal requirement imposed on Executive.

     (c) “Executive Work Product” shall mean all Confidential Information and
Inventions conceived of, created, developed or prepared by Executive (whether individually
or jointly with others) before or during Executive’s employment with the Company, during or
outside of working hours, which relate in any manner to the actual or demonstrably
anticipated business, research or development of the Company, or result from or are
suggested by any task assigned to Executive or any work performed by Executive for or on
behalf of the Company or any of its Affiliates.

     (d) “Invention” shall mean any apparatus, biological processes, cell line,
chemical compound, creation, data, development, design, discovery, formula, idea,
improvement, innovation, know-how, laboratory notebook, manuscript, process or technique,
whether or not patentable or protectable by copyright, or other intellectual property in any
form.

     (e) “Predecessor” shall mean an entity, the major portion of the business and
assets of which was acquired by another entity in a single transaction or in a series of
related transactions.

     (f) “Trade Secrets,” as used in this Agreement, will be given its broadest
possible interpretation under the law applicable to this Agreement.

15

 

     5.2 Nondisclosure and Nonuse

     Executive acknowledges that prior to and during Executive’s employment with the Company,
Executive had and will have occasion to create, produce, obtain, gain access to or otherwise
acquire, whether individually or jointly with others, Confidential Information. Accordingly,
during the term of Executive’s employment with the Company and at all times thereafter, Executive
shall keep secret and shall not, except for the Company’s benefit, disclose or otherwise make
available to any person or entity or use, reproduce or commercialize, any Confidential Information,
unless specifically authorized in advance by the Company in writing.

     5.3 Other Confidentiality Obligations

     Executive acknowledges that the Company may, from time to time, have agreements with other
persons or entities or with the U.S. Government or governments of other countries, or agencies
thereof, which impose confidentiality obligations or other restrictions on the Company. Executive
hereby agrees to be bound by all such obligations and restrictions and shall take all actions
necessary to discharge the obligations of the Company thereunder, including, without limitation,
signing any confidentiality or other agreements required by such third parties.

5.4 Return of Confidential Information

     At any time during Executive’s employment with the Company, upon the Company’s request, and in
the event of Executive’s termination of employment with the Company for any reason whatsoever,
Executive shall immediately surrender and deliver to the Company all records, materials, notes,
equipment, drawings, documents and data of any nature or medium, and all copies thereof, relating
to any Confidential Information (collectively the “the Company Materials”) which is in Executive’s
possession or under Executive’s control. Executive shall not

16

 

remove any of the Company Materials from the Company’s business premises or deliver any of the
Company Materials to any person or entity outside of the Company, except as required in connection
with Executive’s duties of employment. In the event of the termination of Executive’s employment
for any reason whatsoever, Executive shall promptly sign and deliver to the Company a Termination
Certificate in the form of Exhibit B attached hereto.

     5.5 Confidential Information of Others

     Executive represents that Executive’s performance of all the terms of this Agreement and
Executive’s employment with the Company do not and will not breach any agreement to keep in
confidence proprietary information, knowledge or data with regard to which Executive has
obligations of confidentiality or nonuse, and Executive shall not disclose to the Company or cause
the Company to use any such confidential proprietary information, knowledge or data belonging to
any previous employer of Executive or other person. Executive represents that Executive has not
brought and will not bring to the Company or use at the Company any confidential materials or
documents of any former employer or other person that are not generally available to the public,
unless express written authorization for their possession and use has been obtained from such
former employer or other person. Executive agrees not to enter into any agreement, whether written
or oral, that conflicts with these obligations.

     5.6 Other Obligations

     The terms of this Section 5 are in addition to, and not in lieu of, any statutory or other
contractual or legal obligation to which Executive may be subject relating to the protection of
Confidential Information.

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     5.7 Assignment of Confidential Information and Inventions; Works Made for Hire

     Executive hereby assigns to the Company all right, title and interest in all intellectual
property, including any patent applications, trade secrets, know how, copyrights, software, or
trademarks associated with the Executive Work Product and Confidential Information. Executive
hereby acknowledges and agrees that all Executive Work Product subject to copyright protection
constitutes “work made for hire” under United States copyright laws (17 U.S.C. § 101) and is owned
exclusively by the Company. To the extent that title to any Executive Work Product subject to
copyright protection does not constitute a “work for hire,” and to the extent title to any other
Executive Work Product does not, by operation of law or otherwise, vest in the Company, all right,
title, and interest therein, including, without limitation, all copyrights, patents and trade
secrets, and all copyrightable or patentable subject matter, are hereby irrevocably assigned to the
Company. Executive shall promptly disclose to the Company in writing all Executive Work Product.
Executive shall, without any additional compensation, execute and deliver all documents or
instruments and give the Company all assistance it requires to transfer all right, title, and
interest in any Executive Work Product to the Company; to vest in the Company good, valid and
marketable title to such Executive Work Product; to perfect, by registration or otherwise,
trademark, copyright and patent protection of the Company with respect to such Executive Work
Product; and otherwise to protect the Company’s trade secret and proprietary interest in such
Executive Work Product. Executive hereby irrevocably designates and appoints the Company and its
duly authorized officers and agents as Executive’s agents and attorneys-in-fact to act for and on
Executive’s behalf, and to execute and file any documents and to do all other lawfully permitted
acts to further the purposes of this Section 5.7 with the same legal force and effect as if
executed by Executive.

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     5.8 Representations

     Executive represents that, to the best of his or her knowledge, none of the Inventions will
violate or infringe upon any right, patent, copyright, trademark or right of privacy, or constitute
libel or slander against or violate any other rights of any person, firm or corporation, and that
Executive will not knowingly create any Invention which causes any such violation.

     5.9 Inventions, Intellectual Property and Equipment Not Transferred

     Executive has set forth on Exhibit C attached hereto a complete list and brief description of
all Inventions, intellectual property and equipment located at the Company which is owned directly
or indirectly by Executive and which shall not be transferred to the Company pursuant to this
Agreement. Except as so listed, Executive agrees that he or she will not assert any rights under
any intellectual property as having been made or acquired by Executive prior to being employed by
the Company. The Company may, at its discretion, require detailed disclosures and materials
demonstrating ownership of the intellectual property so listed.

     5.10 Exclusivity of Employment

     During the Term, and without prior approval of the Board of Directors, Executive shall not
directly or indirectly engage in any activity competitive with or adverse to the Company’s business
or welfare or render a material level of services of a business, professional or commercial nature
to any other person or firm, whether for compensation or otherwise; provided, however, that
Executive may                               , provided that such activities do not in any way interfere
with the performance of Executive’s duties to the Company.

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     5.11 Covenant Not to Compete

     Executive agrees to be bound and abide by the following covenant not to compete:

     (a) Term and Scope. During Executive’s employment with the Company and for a
period of twelve (12) months after the Term, Executive will not render to any Conflicting
Organization (as hereinafter defined), services, directly or indirectly, anywhere in the
world in connection with any Conflicting Product (as hereunder defined), except that
Executive may accept employment with a Conflicting Organization whose business is
diversified (and which has separate and distinct divisions) if Executive first certifies to
the Company in writing that such prospective employer is a separate and distinct division of
the Conflicting Organization and that Executive will not render services directly or
indirectly in respect of any Conflicting Product. Such twelve (12) month time period shall
be tolled during any period that Executive is engaged in activity in violation of this
covenant.

     (b) Judicial Construction. Executive and the Company agree that, if the period
of time or the scope of this Covenant Not to Compete shall be adjudged unreasonably
overbroad in any court proceeding, then the period of time and/or scope shall be modified
accordingly, so that this covenant may be enforced with respect to such services or
geographic areas and during such period of time as is judged by the court to be reasonable.

     (c) Definitions. For purposes of this Agreement, the following terms shall
have the following meanings:

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     “Conflicting Product” means any product, method or process, system or
service of any person or organization other than the Company that is the same as,
similar to or interchangeable with any product, method or process, system or service
that was provided or under development by the Company or any of its Affiliates at
the time Executive’s employment with the Company terminates, or about which
Executive acquired any Confidential Information or developed any Executive Work
Product.

     “Conflicting Organization” means any person or organization which is
engaged in research on or development, production, marketing, licensing, selling or
servicing of any Conflicting Product.

     5.12 Non-Solicitation

     For a period of twelve (12) months after termination of employment with the Company for any
reason, Executive shall not directly or indirectly solicit or hire, or assist any other person in
soliciting or hiring, any person employed by the Company (as of the date of Executive’s
termination) or any person who, as of the date of Executive’s termination, was in the process of
being recruited by the Company, or induce any such employee to terminate his or her employment with
the Company.

     5.13 Judicial Enforcement

     In the event of a breach or violation of any provision of this Article 5 by Executive, the
parties agree that, in addition to any other remedies it may have, the Company shall be entitled to
equitable relief for specific performance, and Executive hereby agrees and acknowledges that the

21

 

Company has no adequate remedy at law for the breach of the employment covenants contained
herein.

Article 6. Miscellaneous

     6.1 Notices

     All notices or other communications which are required or permitted hereunder shall be deemed
to be sufficient if contained in a written instrument given by personal delivery, air courier or
registered or certified mail, postage prepaid, return receipt requested, addressed to such party at
the address set forth below or such other address as may thereafter be designated in a written
notice from such party to the other party:

	 	 	 
	To Company:

	 	Sucampo Pharmaceuticals, Inc.
	 

	 	4733 Bethesda Avenue, Suite 450
	 

	 	Bethesda, Maryland 20814
	 

	 	Attention: Chief Executive Officer
	 
	 	 
	To Executive:
	 	 

All such notices, advances and communications shall be deemed to have been delivered and received
(i) in the case of personal delivery, on the date of such delivery, (ii) in the case of air
courier, on the business day after the date when sent and (iii) in the case of mailing, on the
third business day following such mailing.

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     6.2 Headings

     The headings of the articles and sections of this Agreement are inserted for convenience only
and shall not be deemed a part of or affect the construction or interpretation of any provision
hereof.

     6.3 Modifications; Waiver

     No modification of any provision of this Agreement or waiver of any right or remedy herein
provided shall be effective for any purpose unless specifically set forth in a writing signed by
the party to be bound thereby. No waiver of any right or remedy in respect of any occurrence or
event on one occasion shall be deemed a waiver of such right or remedy in respect of such
occurrence or event on any other occasion.

     6.4 Entire Agreement

     This Agreement, together with Executive’s Acknowledgement of Consideration, contains the
entire agreement of the parties with respect to the subject matter hereof and supersedes all other
agreements, oral or written, heretofore made with respect thereto including, without limitation,
that certain agreement between Executive and the Company dated October 6, 2004.

     6.5 Severability

     Any provision of this Agreement that may be prohibited by, or unlawful or unenforceable under,
any applicable law of any jurisdiction shall, as to such jurisdiction, be ineffective without
affecting any other provision hereof. To the full extent, however, that the provisions of such

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applicable law may be waived, they are hereby waived, to the end that this Agreement be deemed
to be a valid and binding agreement enforceable in accordance with its terms.

     6.6 Controlling Law

     This Agreement has been entered into by the parties in the State of Maryland and shall be
continued and enforced in accordance with the laws of Maryland.

     6.7 Arbitration

     Any controversy, claim, or breach arising out of or relating to this Agreement or the breach
thereof shall be settled by arbitration in the State of Maryland in accordance with the rules of
the American Arbitration Association for commercial disputes and the judgment upon the award
rendered shall be entered by consent in any court having jurisdiction thereof; provided,
however, that this provision shall not preclude the Company from seeking injunctive or
similar relief from the courts to enforce its rights under the Employment Covenants set forth in
Article 5 of this Agreement. It is understood and agreed that, in the event the Company gives
notice to Executive of termination for Cause and it should be finally determined in a subsequent
arbitration that Executive’s termination was not for Cause as defined in this Agreement, then the
remedy awarded to Executive shall be limited to such compensation and benefits as Executive would
have received in the event of Executive’s termination other than for Cause at the same time as the
original termination.

     6.8 Assignments

     Subject to obtaining Executive’s prior approval, which shall not be unreasonably withheld or
delayed, the Company shall have the right to assign this Agreement and to delegate all rights,

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duties and obligations hereunder to any entity that controls the Company, that the Company
controls or that may be the result of the merger, consolidation, acquisition or reorganization of
the Company and another entity. Executive agrees that this Agreement is personal to Executive and
Executive’s rights and interest hereunder may not be assigned, nor may Executive’s obligations and
duties hereunder be delegated (except as to delegation in the normal course of operation of the
Company), and any attempted assignment or delegation in violation of this provision shall be void.

     6.9 Read and Understood

     Executive has read this Agreement carefully and understands each of its terms and conditions.
Executive has sought independent legal counsel of Executive’s choice to the extent Executive deemed
such advice necessary in connection with the review and execution of this Agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

	 	 	 	 	 
	 	SUCAMPO PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Sachiko Kuno, PhD. 	 
	 	 	Chief Executive Officer 	 
	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

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