Document:

exhibit1024.htm

    
      
         

      

      
         

        
          

        

      

      
         

        
          Exhibit
10.24

        

      

    

    COLUMBIA
LABORATORIES, INC.

    INCENTIVE
PLAN

    

    

    
      	
              1.  

            	
              Plan
      Objectives

            

    

    The
objectives of the Columbia Laboratories Incentive Plan are to:

    

    
      	
              ·  

            	
              Encourage
      and reward Participants for achievement of the Company’s financial,
      tactical and strategic objectives;

            

    

    

    
      	
              ·  

            	
              Reinforce
      a strong performance orientation with variability in awards based on
      individual contribution and teamwork;
and

            

    

    

    
      	
              ·  

            	
              Provide
      a fully competitive compensation package that will attract, reward and
      retain high caliber employees.

            

    

    

    
      	
              2.  

            	
              Plan
      Year

            

    

    The Plan
year is the Company’s fiscal year, January 1 through December 31.

    

    
      	
              3.  

            	
              Eligibility and
      Participation

            

    

    In
general, active exempt and non-exempt employees as of March 1 of the Plan year
are eligible to participate in the Incentive Plan. Employees who are eligible
for another term incentive plan (e.g., sales incentives) are not eligible to
participate. Participants who are hired after February 28, but before October 1,
of the Plan year are eligible for a pro-rated incentive award based on their
hire date. Participants hired on or after October 1, of the Plan year are not
eligible to participate that Plan year.

    

    To be
eligible for an incentive award, a Participant must be actively employed on the
date of distribution of awards for the Plan year. The following are exceptions to this
general rule:

    

    
      	
              ·  

            	
              If
      a Participant leaves the Company before the award distribution date for
      any of the following reasons, he or she will be eligible to receive a
      pro-rated target award based on the period of active employment during the
      year:

            

    

    

    
      	
              o  

            	
              Retirement
      with the consent of the Company

            

    

    
      	
              o  

            	
              Inability
      to perform the work as a result of injury, ill-health or
      disability

            

    

    
      	
              o  

            	
              Death
      in service

            

    

    

    
      	
              ·  

            	
              A
      Participant who takes an unpaid leave of absence (such as NJFLA) will be
      eligible for a pro-rated award for the period of active employment during
      the plan year. A Participant who begins an unpaid leave of absence and
      does not return prior to December 31 will be eligible for a pro-rated
      award upon return to work.  Participants who do not return to
      work will not be eligible for an
award.

            

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          Exhibit
10.24

        

      

    

     

    
      
        	
                4.  

              	
                General
      Approach

              

      

    

    
      	
              ·  

            	
              Each
      eligible Participant has an individual incentive target that is expressed
      in units as a percentage of base
      salary.   Individual  incentive targets are
      established on the basis of position level and are higher for positions of
      greater responsibility..

            

    

    

    
      	
              ·  

            	
              Performance
      criteria and relative weightings of each corporate goal are approved
      annually by the Compensation Committee and the Board of
      Directors.

            

    

    

    
      	
              ·  

            	
              Each
      year the funding of the annual incentive pool is determined by the
      Compensation committee on the basis of attainment of each of the financial
      and strategic goals for the fiscal year, and then finally determined by
      the Board. The total number of units in the pool may be more or less than
      the target incentive pool based on Company
  performance.

            

    

    

    
      	
              ·  

            	
              Individual
      awards will take into account performance against individual objectives
      and within the context of the overall annual incentive fund available for
      awards.

            

    

    

     

    
      
        	
                5.  

              	
                Individual Incentive
      Targets

              

      

    

    The
following incentive targets (expressed in units as a percentage of annualized
base salary) will apply to participants in the Plan based on their position and
level of responsibility in the Company.*

     

    
      	
              Position

            	
              Incentive
      Target

            
	
               

              Officer

               

            	
               

              30%

            
	
               

              Executive
      Director

              Senior
      Director

              Director

            	
               

               

              25%

            
	
               

              Associate
      Director

            	
               

              20%

            
	
               

              Senior
      Manager

              Manager

            	
               

               

              15%

            
	
               

              Supervisor

              Administrator

            	
               

               

              10%

            
	
               

              Non-exempt

            	
               

              4%

            

    

    

    The
incentive targets for the President and Chief Executive Officer; Senior Vice
President, General Counsel and Secretary; and  Senior Vice President,
Chief Financial Officer and Treasurer are governed by their respective
employment agreements.

    

     

    
      
        	
                6.  

              	
                Funding
      Criteria

              

      

    

    The
incentive pool is based upon the sum of all eligible Participants’ incentive
targets multiplied by the Board approved funding level (0% - 125%).

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          Exhibit
10.24

        

      

    

     

    
      
        	
                7.  

              	
                Determination of
      Annual Incentive Pool

              

      

    

    The
annual incentive pool is initially determined by the Compensation Committee of
the Board of Directors on the basis of the following: the attainment of the
financial and strategic goals for the Plan year as established by the Board of
Directors; competitive economic factors; the regulatory environment; the timely
and successful development of products; the Company’s exposure to product
liability and other lawsuits and contingencies; market and customer acceptance
and demand for the Company’s pharmaceutical products; reliability of supply of
the Company’s pharmaceutical products by contract manufacturers; product
recalls; relationships with significant customers; reimbursement policies of
third party payors; and general economic conditions. The annual incentive pool
is finally determined by the Board of Directors.

    Thethejeletermin

    The total
amount of the incentive pool sets the maximum that may be paid out in the total
awards to all individual Participants.

    

    
      	
              8.  

            	
              Calculation of
      Individual Awards

            

    

    To
determine a Participant’s actual award once the incentive pool funding
percentage is approved, involves two calculations:  (a) determination
of the Participant’s target award, and (b) application of the individual’s
performance factor.

    

    
      	
              (a)  

            	
               Determination
      of the Participant’s target award

            

    

    

    The
target award for the individual Participant is determined using the following
formula:

    

    Annualized
salary x position award target x pool funding percentage = target award in
units

    

    Example:  Salary
of $75,000 x position target award of 15% x pool funding percentage of 110% =
target award of 12,375 units.

    

    Note that
the target award is based on a Participant’s salary and position level in effect
on December 31 of the Plan year.

    

    
      	
              (b)  

            	
               Application
      of individual’s performance factor

            

    

    

    As a
result of the annual performance review, each Participant receives an overall
performance rating.  The rating reflects how well the individual
performed against his or her personal objectives and the Company
objectives.

    

    Using the
following table as a guide, the individual’s target award (as determined in (a)
above) may be modified to reflect his or her overall performance
rating.

    

    For
example, assume that the Participant whose target award is 12,375 units has a
performance rating of exceeds expectations.  The manager may recommend
an award ranging from 12,375 units (100%) to 15,469 units (125%) to reflect
individual performance.  If that individual’s rating is meets
expectations, the award range would be 9,281 units (75%) to 12,375 units
(100%).  Any individual with a rating of below expectations will not
receive an award.

    
      
         

      

      
         

        
          

        

      

      
         

        
          Exhibit
10.24

        

      

    

    

    
      	
              Overall
      Performance Level Against Individual and Company
Objectives

            	
              Award
      Guideline

              (%
      of Target Award)

            
	
               

              Exceeds  expectations

            	
               

              125 -
    150%

            
	
              High-Meets
      expectations

            	
              100
      - 125%

            
	
              Meets
      expectations

            	
                75
      - 100%

            
	
              Low
      - Meets  expectations

            	
              0 -
      75%

            
	
              Below
      Expectations

            	
              0%

            

    

    

    The sum of all individual
awards may not exceed the overall incentive pool allocated to the Company, as
explained in section 7 above.

     

     

     

    
      	
              9.  

            	
              Payments of
      Awards

            

    The form
and timing of awards is at the discretion of the Company, but these will be made
to participants on or before March 15 following completion of the fiscal
year.  If awards are made in the form of option grants, each unit
awarded will be equal to a number of options as determined by the Compensation
Committee of the Board in its sole discretion. Cash payments, if any, will be
made after the deduction of withholdings required by law or as authorized by the
recipient.

    

    
      	
              10.  

            	
              Plan
      Administration

            

    

    The
Company has complete discretion regarding all aspects of the Incentive Plan’s
implementation and administration, and may change the Plan in whole or in part
or eliminate the Plan entirely at any time.

    

    The
decision as to whether or not a Participant is eligible to receive an award
under the Plan rests solely with the Company, which also reserves the right to
forego awards or make reduced awards.  The Company’s determination
will be final and binding.

    

    Participation
in this plan does not in any way whatsoever create a contractual relationship
between the Participant and the Company.

    

    The
impact of any award made under the Plan on other employee benefit programs will
be governed by the terms of those programs.

    

    The Plan
is managed by the Compensation Committee of the Board of
Directors.  The Committee has full power and discretion to interpret
and administer the Plan.exhibit1025.htm

    
      
         

      

      
         

        
          

        

      

      
         

        
          Exhibit
10.25

        

      

    

    EXECUTIVE CHANGE IN CONTROL
SEVERANCE AGREEMENT

    

    THIS EXECUTIVE CHANGE IN CONTROL
SEVERANCE AGREEMENT dated as of ___________________ (as the same may be amended,
restated, supplemented or otherwise modified from time to time hereafter, this
“Agreement”), is entered into between Columbia Laboratories, Inc., a Delaware
corporation having its corporate offices at 354 Eisenhower Parkway, Livingston,
New Jersey (“Columbia” or the “Company”), and ________________
(“Executive”).

    

    WITNESSETH:

    

    WHEREAS, the Company desires to create
a greater incentive for Executive to remain in the employ of the Company,
particularly in the event of any possible change or threatened change in control
of the Company; and

    

    NOW THEREFORE, in partial consideration
of Executive’s past and future services to the Company and the mutual covenants
contained herein, the parties hereby agree as follows:

    

    1. Termination Following A
Change in Control

    

    (a)           Qualifying
Termination.  Executive shall be entitled to the compensation
and benefits listed in Paragraph 1(b), in addition to compensation and benefits
to which Executive would otherwise be entitled as of the date of termination, if
Executive’s employment with the Company is terminated either (i) by the Company
for any reason other than for Cause within 90 days before a Change in Control or
within one year following the occurrence of any Change in Control or successive
Change in Control or (ii) by Executive for Good Reason within one year following
the occurrence of any Change in Control or successive Change in Control, and in
each case Executive properly executes, and does not revoke or attempt to revoke,
a valid and reasonable release of claims against the Company, its affiliates and
their employees and agents.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)           Compensation and
Benefits.  Within ten business days after a Change in Control
event (or the last day of any period during which any release may be revoked by
Executive), the Company shall make a lump sum cash payment to Executive, subject
to any mandatory tax withholding, equal to one times Executive’s Base Salary and
Bonus for the year prior to the Change in Control plus a lump sum payment equal
to the value of the Fringe Benefits provided to Executive for the year prior to
the Change in Control.

    

    2. Definitions.

    

    (a)           Bonus.  “Bonus”
shall mean the greater of (i) the bonus, if any, paid to Executive in the year
prior to the Qualifying Termination, (ii) the bonus, if any, paid to Executive
in the year prior to the Change in Control, or (iii) the Executive’s target
bonus at the time of the Change in Control.

    

    (b)           Base
Salary.    “Base Salary” shall mean the greater of
(i) the annual rate of base salary in effect for Executive at the time of the
Qualifying Termination or (ii) the annual rate of base salary in effect for
Executive at the time of the Change in Control.

    

                  
(c)           Cause.  “Cause”
shall mean termination based on (i) gross negligence, recklessness or
malfeasance in the performance of Executive’s duties; (ii) Executive
committing any criminal act; (iii) Executive committing any act of fraud or
other material misconduct resulting or intending to result directly or
indirectly in gain or personal enrichment at the expense of Company;
(iv) Executive willfully engaging in any conduct relating to the business
of Company that could reasonably be expected to have a materially detrimental
effect on the business or financial condition of the Company;
(v) misconduct which materially discredits or damages Company, or violates
Company’s policies or procedures, after Company has notified Executive of the
actions Company deems to constitute non-compliance; (vi) Executive
materially breaches Executive’s obligations relating to confidential
information, non-solicitation and non-competition.

    

    (d)           Change In
Control.  “Change in Control” shall have occurred if
(a) there shall have consummated (i) any consolidation or merger of
Company in which Company is not the continuing or surviving entity or pursuant
to which shares of Company’s common stock would be converted to cash, securities
or other property, other than a merger of Company in which the holders of
Company’s common stock immediately prior to the merger have the same
proportionate ownership of common stock of the surviving entity immediately
after the merger, or (ii) any sale, lease, exchange or transfer (in one
transaction or a series of related transactions) of all, or substantially all,
of the assets of the company; or (b) the stockholders of the Company
approve a plan or proposal for the liquidation or dissolution of the Company; or
(c) any person (as that term is used in Sections 13(d) and 14(d)(z) of the
Securities and Exchange Act, as amended (the “Exchange Act”)) shall become a
beneficial owner (within the meaning of Rule 13d-2 under the Exchange Act) of
40% or more of Company’s outstanding common stock; or (d) during any period
of two consecutive years, individuals who at the beginning of such period
constitute the entire Board shall cease for any reason to constitute a majority
thereof unless the election, or the nomination for election by Company’s
stockholders, of each new director was approved by a vote of at least 50% of the
directors eligible to vote who were directors at the beginning of the
period.

    

    (e)           Good
Reason.  For purposes of this Agreement, “Good Reason” shall
mean the termination by Executive of Executive’s employment with the Company and
all its affiliates and subsidiaries that are considered a single employer within
the meaning of Sections 414(b) and 414(c) of the Code which is due to (i) a
material diminution of Executive’s responsibilities, or working conditions, or
duties; (ii) a material diminution in the Executive’s base salary; (iii) a
material negative change in the terms or status of this Agreement; or (iv) a
relocation, without Executive’s consent, of the Executive’s office more than 100
miles from its location at the commencement of this Agreement; provided,
however, the Executive shall provide written notice to the Company of the
initial existence of the condition causing the change in terms or status no more
than ninety (90) days after the change in terms or status occurs and the Company
shall have thirty (30) days to resolve the issue causing the change in terms or
status.  If the Company resolves such issue, then Executive’s
employment shall not be subject to the Good Reason provisions of this Agreement
as to such issue.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3. Applicable
Laws and Consent to Jurisdiction. The validity, construction,
interpretation, and enforceability of this Agreement shall be determined and
governed by the laws of the State of New Jersey without giving effect to the
principles of conflicts of law. For the purpose of litigating any dispute that
arises under this Agreement, the parties hereby consent to exclusive
jurisdiction of, and agree that such litigation shall be conducted in, any state
or federal court located in the State of New Jersey.

    

    4. Severability.
The provisions of this Agreement are severable and if any one or more provisions
are determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions shall nevertheless be binding and
enforceable.

    

    5. Miscellaneous;
Waiver.  Executive further agrees that this Agreement sets
forth the entire Agreement between the Company and Executive with respect to the
subject matter herein, supersedes any and all prior agree­ments between the
Company and Executive with respect to the subject matter herein, and shall not
be amended or added to except in writing signed by the Company and
Executive.  Executive understands that Executive may not assign
Executive’s duties and obligations under this Agreement to any other party and
that the Company may, at any time and without further action by or the consent
of Executive, assign this Agreement to any of its affiliated
companies.

    

    6. Counterparts.  This Agreement
may be executed in any number of counterparts, each of which shall be deemed an
original and all of which taken together shall constitute one and the same
agreement.

    

    7. Successors and
Assigns.  This Agreement
shall be binding on the successors and heirs of Executive and shall inure to the
benefit of the successors and assigns of the Company.

    

    8. Notices.  Any
notice required or permitted hereunder shall be in writing and shall be
sufficiently given if personally delivered or if sent by registered or certified
mail, postage prepaid, with return receipt requested, addressed:  (a)
in the case of the Company, to Columbia Laboratories, Inc., 354 Eisenhower
Parkway, Livingston, New Jersey, attn.: General Counsel, and (b) in the case of
Executive, to Executive's last known address as reflected in the Company's
records, or to such other address as Executive shall designate by written notice
to the Company.  Any notice given hereunder shall be deemed given at
the time of receipt thereof by the person to whom such notice is
given.

    

    9. Code
Section 409A Compliance.  Executive acknowledges and agrees
that he has been advised that, before entering into this Agreement, he should
consult with his financial, legal or tax adviser to determine the risk to him of
the imposition of tax under Internal Revenue Code Section
409A.  Executive shall have no claim against the Company with respect
to Code Section 409A.  This Agreement is intended to comply with the
requirements of Code Section 409A and the treasury regulations and other
guidance issued thereunder, as in effect from time to time.  To the
extent a provision of this Agreement is contrary to or fails to address the
requirements of Code Section 409A and related treasury regulations, this
Agreement shall be construed and administered as necessary to comply with such
requirements to the extent allowed under applicable treasury
regulations.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date first set forth above.

    

    

    EXECUTIVE                                                                                        
COLUMBIA LABORATORIES, INC.

    

    

    ________________________                                                        ________________________________

    By:           James
A. Meer

    Its:           Senior
Vice President, and ChiefFinancial Officer

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