Document:

exv10w2

Exhibit 10.2

SANTARUS, INC.

2011 BONUS PLAN*

 

			
	*	 	Excludes those covered under the Field Sales Incentive Plans

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Santarus, Inc.

2011 Bonus Plan

The Santarus, Inc. (“Santarus” or the “Company”) 2011 Bonus Plan (the “Plan”) is designed
to offer employees a performance-based plan that rewards the achievement of corporate goals, as
well as individual goals that are consistent with the corporate goals.

Purpose of the Plan

The Plan is designed to:

	 	•	 	Provide a bonus program that helps achieve overall corporate goals and enhances
shareholder value
	 
	 	•	 	Reward individuals for achievement of corporate and individual goals
	 
	 	•	 	Encourage teamwork among all disciplines within the Company
	 
	 	•	 	Offer an attractive bonus program to help attract and retain key employees

Plan Governance

The Compensation Committee of the Board of Directors is responsible for reviewing and
approving the Plan and any proposed modifications to the Plan. The President and CEO of Santarus
is responsible for administration of the Plan; provided that the Compensation Committee of the
Board of Directors is responsible for reviewing and approving all compensation, including
compensation under this Plan, for all officers, vice presidents, executive directors and any other
employees with an annual base salary greater than or equal to $250,000.

Eligibility

All regular employees of the Company who are regularly scheduled to work at least 20 hours per
week will be eligible to participate in the Plan, other than any employee eligible to participate
in the Company’s Field Sales Incentive Plans. Temporary employees and part-time employees (who are
regularly scheduled to work less than 20 hours per week) are not included in this Plan. In order
to be eligible to receive any bonus award (or “Bonus”) under this Plan, a participant: (a) must
have commenced their employment with the Company prior to November 15, 2011 and remained
continuously employed through December 31, 2011 and until the time Bonuses are paid; and (b) must
be an employee in good standing (e.g., not on a performance improvement plan as of December 31,
2011 or an Unacceptable performer as determined during the 2011 review cycle), as determined by the
Compensation Committee of the Board of Directors or the President and CEO of Santarus, as
applicable in their sole discretion. Employees joining during the

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bonus plan year will have their
actual bonus amount prorated based on their actual time with the Company during the Plan year.

A participant whose employment terminates voluntarily prior to the payment of a Bonus award
will not be eligible to receive a Bonus award. Continued employment is a condition of vesting. If
a participant’s employment is terminated involuntarily during the Plan year, or prior to payment of
Bonus awards, it will be at the absolute discretion of the Company whether or not a Bonus award
payment is made.

Corporate and Individual Performance

The President and CEO will present to the Compensation Committee of the Board of Directors a
list of the overall corporate goals for the Plan year, which is subject to approval by both the
Compensation Committee and the independent members of the Board of Directors. All participants in
the Plan will then develop a list of key individual goals, which will be approved by their manager
and used for the basis of the performance review and individual performance rating.

The total bonus pool for the Plan will be based on achievement of the 2011 corporate goals
and, where applicable, the individual’s annual performance review rating.

Bonus Awards

The Bonus will be paid in cash and is based on achievement of the 2011 corporate goals and
achievement of individual goals. The Bonus will be calculated by using the base salary as of
December 31, 2011, weighting factor, target bonus percentage and goal multipliers as identified
below:

Weighting Factor

The relative weight between the corporate and individual Bonus components will vary based on
levels within the organization. The weighting factors will be reviewed annually and adjusted, as
necessary or appropriate. The weighting for 2011 will be as follows:

	 	 	 	 	 	 	 	 	 
	Position	 	Corporate	 	Individual
	President and CEO
	 	 	100	%	 	 	 	 
	Group K (EVP Level Officer)
	 	 	100	%	 	 	 	 
	Group J (SVP Officers)
	 	 	100	%	 	 	 	 
	Group I (Non-Officer VPs)
	 	 	80	%	 	 	20	%
	Group H (Executive Directors)
	 	 	80	%	 	 	20	%
	Group G (Senior Directors)
	 	 	80	%	 	 	20	%
	Group F (Directors)
	 	 	80	%	 	 	20	%
	Group E (Senior Managers)
	 	 	60	%	 	 	40	%
	Group D (Managers)
	 	 	60	%	 	 	40	%
	Group C
	 	 	40	%	 	 	60	%
	Group A & B
	 	 	20	%	 	 	80	%

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Target Bonus Percentages

Bonus amounts will be determined by applying a “target bonus percentage” to the base salary of
employees in the Plan. Following are the 2011 target bonus percentages:

	 	 	 	 	 
	Position	 	Target Bonus Percentages
	President and CEO
	 	 	65	%
	Group K
	 	 	50	%
	Group J
	 	 	40	%
	Group I
	 	 	35	%
	Group H
	 	 	30	%
	Group G
	 	 	25	%
	Group F
	 	 	22	%
	Group E
	 	 	17	%
	Group D
	 	 	15	%
	Group C
	 	 	12	%
	Group B
	 	 	8	%
	Group A
	 	 	7	%

The base salary as of December 31, 2011 times the target bonus percentage will be used to
establish the target Bonus amount for the 2011 year.

Goal Multipliers

Corporate Goal Multiplier: The following scale will be used by the Compensation
Committee of the Board of Directors and the independent members of the Board of Directors to
determine the “total corporate goal multiplier” based upon measurement of actual corporate
performance versus the pre-established corporate goals. The Compensation Committee will evaluate
each corporate goal as follows:

	 	 	 	 	 
	Performance Category	 	Goal Multiplier
	1. Performance for the year significantly exceeded the goal
or was excellent in view of prevailing conditions
	 	 	110% - 200	%
	 
	 	 	 	 
	2. Performance fully met the year’s goal or is considered
achieved in view of prevailing conditions
	 	 	100% - 150	%
	 
	 	 	 	 
	3. Performance for the year met some aspects of the goal
but not all or met most aspects in view of prevailing conditions.
	 	 	75% - 100	%
	 
	 	 	 	 
	4. The performance met at least 50% of the goal or met at least
50% in view of prevailing conditions.
	 	 	50% - 75	%
	 
	 	 	 	 
	5. The goal was not achieved and performance was
not acceptable in view of prevailing conditions.
	 	 	0	%

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Each goal is evaluated separately, weighting applied and a total corporate goal multiplier is
reached. A total corporate goal multiplier of at least 50% is required prior to
any payout of Bonuses under the Plan and the total corporate goal multiplier may not exceed
150%.

Individual Goal Multiplier: The “individual goal multiplier” will be determined by
taking into account the performance rating (Pinnacle, Standing Ovation, Great Performance, etc.)
given to the individual through the 2011 review cycle as well as any other relevant criteria
relating to the individual’s job performance during 2011. The specific multipliers for each
performance rating level are as follows:

	 	 	 	 	 
	Performance Rating:	 	Multiplier
	Pinnacle
	 	 	125	%
	Standing Ovation
	 	 	115	%
	Great Performance
	 	 	100	%
	Too New
	 	 	70	%
	Fair Performance
	 	 	50	%

Calculation of Bonus Amount

The example below shows a sample Bonus amount calculation under the Plan. First, a target
Bonus amount is calculated for each Plan participant by multiplying the employee’s base salary by
the target bonus percentage. This dollar figure is then divided between the corporate component
and the individual component based on the weighting factor for that position. This calculation
establishes specific dollar target Bonus amounts for the performance period for each of the
corporate and individual components.

At the end of the performance period, corporate and individual goal multipliers will be
established using the criteria described above. The corporate goal multiplier, which is based on
overall corporate performance, is used to calculate the corporate component of the Bonus amount for
all Plan participants. This is accomplished by
multiplying the target corporate Bonus amount established for each individual by the total
corporate goal multiplier. The individual goal multiplier, which is based on an individual’s
performance rating, is used in the same way to calculate the actual individual component of the
Bonus amount.

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Example: Actual Bonus Amount Calculation

	 	 	 	 	 

	Group Level
	 	 	B	 
	Position
	 	Executive Assistant
	Base Salary as of December 31
	 	$	50,000	 
	Target Bonus Percentage
	 	 	8	%
	Performance Rating
	 	Standing Ovation
	Target Bonus Amount
	 	$	4,000	 
	 
	 	 	 	 
	Target Bonus Amount Components:
	 	 	 	 
	Target Bonus Amount based on corporate performance (20%):
	 	$	800	 
	Target Bonus Amount based on individual performance (80%):
	 	$	3,200	 
	 
	 	 	 	 
	Corporate Goal Multiplier
	 	 	80	%
	Individual Goal Multiplier
	 	 	105	%

Actual Bonus Amount Calculation:

	 	 	 	 	 

	Corporate Bonus Amount
	 	$	640 ($800 x 80	%)
	Individual Bonus Amount
	 	$	3,360 ($3,200 x 105	%)
	Total Actual Cash Bonus Amount
	 	$	4,000	 

Payment of the Bonus Amounts

Annual performance reviews for Plan participants will be completed by February 28, 2012.
Payments of actual Bonus amounts will be made as soon as practical, but not later than March 15,
2012. Participants’ entitlement to Bonuses under this Plan does not vest until the Bonuses are
actually paid. This plan is not intended to be subject to Section 409A of the Internal Revenue Code
of 1986, as amended.

Company’s Absolute Right to Alter or Abolish the Plan

The Compensation Committee of the Board of Directors reserves the right in its absolute
discretion to terminate and/or abolish all or any portion of the Plan at any time or to alter the
terms and conditions under which a Bonus will be paid. In the event of the Plan’s termination
prior to the payment of a Bonus, such Bonus will not be payable under this Plan. Such discretion
may be exercised any time before, during, and after the Plan year is completed. No participant
shall have any vested right to receive any payment
until actual delivery of such compensation. Notwithstanding the generality of the foregoing,
at the

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Company’s discretion all or a portion of a Bonus payment may be made in shares of the
Company’s common stock.

The Compensation Committee, in its discretion, may also determine whether to increase the
payout under the Plan for extraordinary achievement or to reduce payout if economic and business
conditions warrant such action.

Employment Duration/Employment Relationship

This Plan does not, and the Company’s policies and practices in administering this Plan do
not, constitute an express or implied contract or other agreement concerning the duration of any
participant’s employment with the Company. The employment relationship of each participant is “at
will” and may be terminated at any time by the Company or by the participant with or without cause.

7Exhibit 10.36

Exhibit 10.36

Spectrum Pharmaceuticals, Inc.

Long-Term Retention and Management Incentive Plan

PURPOSE

This Spectrum Pharmaceuticals, Inc. Long-Term Retention and Management Incentive Plan (this
“Plan”), effective as of April 22, 2011 (the “Effective Date”), is designed to focus executive
management on the achievement of key corporate goals of Spectrum Pharmaceuticals, Inc. (the
“Company”) and to provide incentive awards for the retention of executives and achievement of such
goals on or prior to the Plan’s Termination Date (as defined herein).

DEFINITIONS

	 	1.	 	“2009 Plan” means the Company’s 2009 Incentive Award Plan, as amended.

	 	2.	 	“Business Day” means any day upon which the principal market or exchange upon which the
Company’s shares are then listed or quoted for trading is open for business.

	 	3.	 	“Cause” unless otherwise defined in a Participant’s written employment agreement with
the Company, means: (a) the commission of any act of fraud, embezzlement or dishonesty by
Participant which adversely affects the business of the Company, (b) any unauthorized use
or disclosure by Participant of confidential information or trade secrets of the Company,
(c) the refusal or omission by the Participant to perform any duties required of him if
such duties are consistent with duties customary for the position held with the Company,
(d) any act or omission by the Participant involving malfeasance or gross negligence in the
performance of Participant’s duties to, or deviation from any of the policies or directives
of, the Company, (e) conduct on the part of Participant which constitutes the breach of any
statutory or common law duty of loyalty to the Company, or (f) any illegal act by
Participant which adversely affects the business of the Company, or any felony committed by
Participant, as evidenced by conviction thereof or a plea of nolo contendre.

	 	4.	 	“Common Stock” means the common stock of the Company, par value $0.001 per share.

	 	5.	 	“Change in Control” has the meaning ascribed thereto in the 2009 Plan.

	 	6.	 	“Good Reason” unless otherwise defined in a Participant’s written employment agreement
with the Company, means the Participant’s voluntary termination of his employment with the
Company if, without the prior consent of Participant, the Company takes any of the
following actions and fails to correct such action within thirty (30) days after
Participant serves written notice requesting correction: (a) a material diminution in
Participant’s authority, duties, responsibilities or reporting lines, (b) a material
reduction in the Participant’s base salary, or (c) any relocation of Participant’s
principal office, or principal place of employment, to a location that is more than fifty
(50) miles from Participant’s location on the Effective Date.

	 	7.	 	“Initial Capitalization Target” means the Company achieving a Market Capitalization of
Seven Hundred Fifty Million Dollars ($750,000,000) or more for twenty (20) consecutive
Business Days, provided, further that the shares will vest on the 20th Business
Day following the date on which the Company’s Market Capitalization reaches $750,000,000,
if, and only if, the closing Market Capitalization on the 20th Business Day is
equal to or greater than $750,000,000. The shares will be issued after the achievement of
the Initial Capitalization Target subject to the Company’s standard terms and conditions for performance compensation
under the Plan.

 

 

	 	8.	 	“Market Capitalization” means the aggregate number of shares of the Company’s issued
and outstanding Common Stock multiplied by the closing sales price of the Common Stock as
measured on any given Business Day. The shares will vest on and be issued as soon as
possible after the achievement of the Initial Capitalization Target.

	 	9.	 	“Participant(s)” means each of (a) Rajesh C. Shrotriya, M.D., the Company’s Chief
Executive Officer, (b) George F. Tidmarsh, M.D., Ph.D., the Company’s Chief Scientific
Officer, (c) James E. Shields, the Company’s Chief Commercial Officer, and (d) Brett L.
Scott, the Company’s Acting Chief Financial Officer.

	 	10.	 	“Proposed Change in Control” means an event that will result in a Change in Control if
consummated and that is evidenced by either of the following: (a) the Company’s entry into
a letter of intent or (b) the commencement of a tender offer.

	 
	 	11.	 	“Restricted Stock Award” has the meaning ascribed thereto in the 2009 Plan.

	 	12.	 	“Subsequent Capitalization Target” means the Company achieving a Market Capitalization
of One Billion Dollars ($1,000,000,000) or more for twenty (20) consecutive Business Days,
provided, further that the shares will vest on the 20th Business Day following
the date on which the Company’s Market Capitalization reaches $1,000,000,000, if, and only
if, the closing Market Capitalization on the 20th Business Day is equal to or
greater than $1,000,000,000. The shares will be issued after the achievement of the
Subsequent Capitalization Target subject to the Company’s standard terms and conditions for
performance compensation under the Plan

	 
	 	13.	 	“Termination Date” means April 22, 2016.

	 	14.	 	“Transaction Value” means the consideration paid and received for the assets or equity
of the Company that is paid to the Company and/or its stockholders (in their capacity as
stockholders) (after payment of all transaction expenses, including, but not limited to
legal, accounting, financing, management or retention fees, broker, investment banker or
advisor fees and any other closing costs and payment of any outstanding liabilities of the
Company not assumed in the subject transaction but expressly excluding the liability to pay
any bonuses under this Plan). For purposes of clarity, the value of any assumed liabilities
in any transaction will not be included in the calculation of the Transaction Value.

AWARD OPPORTUNITIES

Under this Plan, each Participant will be awarded (a) restricted stock pursuant to the 2009 Plan
upon the occurrence of specified Market Capitalization milestones, and (b) cash awards in the event
of a Change in Control, each as further described below.

 

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RESTRICTED STOCK AWARDS

1. Grant of Restricted Stock Awards. The Company will award to the Participants
shares of the Company’s Common Stock pursuant to Restricted Stock Awards that vest upon and will be
issued upon the achievement of the applicable Market Capitalization milestones set forth below
(each a “Stock Award, and collectively, the “Stock Awards”):

	 	 	 	 	 
	Participant	 	Shares Granted Pursuant to Stock Award
	Rajesh C. Shrotriya, M.D.,
 Chief Executive Officer

	 	(A)
	 	Five Hundred Twenty Thousand (520,000)
shares of the Company’s Common Stock upon
the Company achieving the Initial
Capitalization Target prior to the
Termination Date; and
	 
	 	 	 	 
	

	 	(B)
	 	Two Hundred Sixty Thousand (260,000)
shares of the Company’s Common Stock upon
the Company achieving the Subsequent
Capitalization Target prior to the
Termination Date.
	 
	 	 	 	 
	George F. Tidmarsh, M.D., 

Ph.D., Chief Scientific
Officer

	 	(A)
	 	Eight-Six Thousand Five Hundred
(86,500) shares of the Company’s Common
Stock upon the Company achieving the
Initial Capitalization Target prior to the
Termination Date; and
	 
	 	 	 	 
	 

	 	(B)
	 	Forty-Three Thousand Two Hundred Fifty
(43,250) shares of the Company’s Common
Stock upon the Company achieving the
Subsequent Capitalization Target prior to
the Termination Date.
	 
	 	 	 	 
	James E. Shields, Chief 

Commercial Officer

	 	(A)
	 	Eight-Six Thousand Five Hundred
(86,500) shares of the Company’s Common
Stock upon the Company achieving the
Initial Capitalization Target prior to the
Termination Date; and
	 
	 	 	 	 
	 

	 	(B)
	 	Forty-Three Thousand Two Hundred Fifty
(43,250) shares of the Company’s Common
Stock upon the Company achieving the
Subsequent Capitalization Target prior to
the Termination Date.
	 
	 	 	 	 
	Brett L. Scott, Acting Chief 

Financial Officer

	 	(A)
	 	Eight-Six Thousand Five Hundred
(86,500) shares of the Company’s Common
Stock upon the Company achieving the
Initial Capitalization Target prior to the
Termination Date; and
	 
	 	 	 	 
	 

	 	(B)
	 	Forty-Three Thousand Two Hundred Fifty
(43,250) shares of the Company’s Common
Stock upon the Company achieving the
Subsequent Capitalization Target prior to
the Termination Date.

 

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2. Achievement of Capitalization Target(s) as a Result of a Proposed Change in
Control. Notwithstanding Section 1 above, if the Initial Capitalization Target and/or the
Subsequent Capitalization Target is achieved contemporaneous with a Proposed Change in Control, the
achievement of the Initial Capitalization Target and/or Subsequent Capitalization Target, as
applicable, will not result in the issuance of the shares of the Company’s Common Stock pursuant to
Section 1 above and the Business Days elapsed during which such Proposed Change in Control is
pending will not count towards the twenty (20) consecutive Business Day measurement period,
provided, however, that in the event that the Proposed Change in Control is
abandoned (other than as a result of a Change in Control being consummated), the measurement period
will continue from the last Business Day prior to such Proposed Change in Control.

3. Termination Date; Change in Control.

(a) Termination Date. In the event that the Initial Capitalization Target and/or the
Subsequent Capitalization Target has not been achieved prior to the Termination Date, each
Participant’s right to future Stock Awards under the Plan will automatically be terminated without
consideration and without any further action required by the Company or Participants.

(b) Change in Control. In the event of the consummation of a Change in Control prior to the
achievement of the Initial Capitalization Target and/or the Subsequent Capitalization Target, each
Participant’s right to future Stock Awards under the Plan will automatically be terminated without
consideration and without any further action required by the Company or Participants.

4. Termination of Employment. All rights of a Participant with respect to the receipt
of a future Stock Award under the Plan will terminate without consideration and without any further
action required by the Company or such Participant, upon a termination of such Participant’s
employment with the Company prior to the achievement of the Initial Capitalization Target and/or
the Subsequent Capitalization Target, as applicable. Notwithstanding the preceding sentence, in
the event a Participant’s employment is terminated by the Company without Cause or by a Participant
for Good Reason within sixty (60) Business Days prior the Company’s achievement of the Initial
Capitalization Target, such Participant will be entitled to receive a pro rata number of shares of
the Company’s Common Stock, the issuance of which was conditioned upon achievement of the Initial
Capitalization Target, as follows:

S = ((A — B) ÷ (750,000,000 — B)) * C

For purposes of the foregoing formula, the following definitions apply:

(a) “S” means the number of shares of Common Stock that are awarded to the Participant
in connection with the Company’s achievement of the Initial Capitalization Target;

(b) “A” means the Company’s Market Capitalization as of the close of business on the
date of the Participant’s termination of Employment;

(c) “B” means $484,508,981, which represents the Company’s Market Capitalization on the
Effective Date; and

(d) “C” means the number of shares of the Company’s Common Stock under the
Participant’s Stock Award conditioned upon achievement of the Initial Capitalization Target.

 

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CASH AWARDS

1. Cash Awards. In the event of the consummation of a Change in Control prior to the
Termination Date, the Company will award each of the Participants cash payments concurrently with
the consummation of such Change in Control as follows (each a “Cash Award, and collectively, the
“Cash Awards”):

	 	 	 
	Participant	 	Contingent Cash Award
	 
	 	 
	Rajesh C. Shrotriya, M.D., 

Chief Executive Officer

	 	An amount equal to 1.00% of the Company’s Transaction Value.
	 
	 	 
	George F. Tidmarsh, M.D.,
Ph.D., Chief Scientific
Officer

	 	An amount equal to 0.17% of the Company’s Transaction Value.
	 
	 	 
	James E. Shields, Chief
Commercial Officer

	 	An amount equal to 0.17% of the Company’s Transaction Value.
	 
	 	 
	Brett L. Scott, Acting
Chief Financial Officer

	 	An amount equal to 0.17% of the Company’s Transaction Value.

Notwithstanding the foregoing, to the extent that any portion of the Transaction Value is
subject to delayed payment contingencies such as an earnout, holdback or other similar provision,
the Cash Award attributable to such portion of the Transaction Value will be subject to the same
payment contingencies (timing, achievement of certain goals, forfeiture, etc.).

2. Forfeiture of Cash Award. All rights of a Participant with respect to the Cash
Award will terminate upon the earlier to occur of (a) the Termination Date, and (b) upon a
termination of the Participant’s employment with the Company, whichever occurs first, to the extent
the Change in Control has not been consummated prior to such earlier date.

 

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