Document:

Exhibit 10.35

 

EXHIBIT 10.35

ALLERGAN

2008

MANAGEMENT BONUS PLAN

 

 

PURPOSE OF THE PLAN

The Allergan, Inc. 2008 Management Bonus Plan (the “Plan”) is designed to reward eligible
management-level employees for their contributions to providing Allergan’s stockholders increased
value for their investment through the successful accomplishment of specific financial objectives
and individual performance objectives.

PLAN YEAR

The Plan year runs from January 1, 2008 through December 31, 2008.

ELIGIBILITY

All regular full-time and part-time employees of Allergan, Inc. and its subsidiaries (the
“Company”) scheduled to work 20 or more hours per week in salary grades 7E and above who are not
covered by any other bonus or sales incentive plan are eligible to participate in the Plan.
Notwithstanding anything in this Plan to the contrary, any individual shall not be eligible to
participate in the Plan if such individual (a) performs services for the Company and is classified
or paid as an independent contractor (regardless of his or her classification for federal tax or
other legal purposes) by the Company or (b) performs services for the Company pursuant to an
agreement between the Company and any other person including a leasing organization. Participants
must be employed on or before June 30, 2008 in order to be eligible to receive a bonus.
Participants must be actively employed by the Company on the date bonuses are paid in order to be
eligible to receive a bonus. Participants who resign or are terminated for reasons other than those
noted below will receive no bonus.

Bonuses, if any, for participants who become eligible after the beginning of the plan year, retire
(“normal retirement” is defined as termination of employment after the Plan participant has
attained age 55, provided that such participant has been employed by the Company for a minimum of 5
years), become disabled, die or transfer into a position covered by another incentive plan will be
prorated. Bonuses, if any, for participants who are laid-off will be prorated provided the
participant was eligible for at least six months of the Plan year. All proration will be based on
the number of months of participation in the Plan during the Plan year.

PERFORMANCE OBJECTIVES

Bonuses for Plan participants are based on both corporate performance and individual performance in
relation to pre-established objectives, as follows:

CORPORATE OBJECTIVES

	w	 	Earnings Per Share (“EPS”)—EPS is defined as adjusted net earnings
from continuing operations as measured by Wall Street divided by
the weighted average number of common and common equivalent shares
on a diluted basis.
	 
	w	 	Revenue Growth in Local Currency—Net sales stated in constant
local currency compared to the prior year. Specifically defined
as the percentage change in annual net sales in constant local
currency from the previous fiscal year end to the current fiscal
year end (“Revenue Growth”). The purpose of net sales stated in
constant local currency is to remove any impact on net sales
growth from changes in currency exchange rates from year to year.
	 
	w	 	Research and Development (“R&D”) Reinvestment Rate—R&D expense as
a percentage of revenue. Specifically defined as the total annual
R&D expense as a percentage of annual net sales as of the current
fiscal year end.
	 
	w	 	Operating Income—Operating Income compared to budget will be
considered for allocation of bonus pools by Business
Unit/Function. Operating Income is defined as Net Sales minus

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	 	 	Cost of Goods minus Selling and General Administrative expenses minus
Research & Development minus allocated corporate interest where
applicable.

INDIVIDUAL OBJECTIVES

Management Bonus Objectives (“MBOs”) are prepared by each participant and his or her supervisor at
the beginning of the Plan year and may be modified throughout the year as necessary. Objectives
should reflect major results and accomplishments to be achieved in order to meet short and
long-term business goals that contribute to increased stockholder value. MBOs are expressed as
specific, quantifiable measures of performance in relation to key operating decisions for the
participant’s business unit, such as managing inventory levels, receivables, expenses, payables,
increasing sales, eliminating unnecessary capital expenditures, etc.

At the end of the Plan year, the supervisor evaluates the participant’s performance in relation to
his or her objectives in order to determine the size of the bonus award, if any. A more detailed
description of how the award is calculated is provided under “Individual Bonus Award Calculation.”

BONUS POOL CALCULATION

The components of this calculation for bonus pool funding are: (1) EPS, (2) Revenue Growth and (3)
R&D Reinvestment Rate.

Bonus pool funding –Bonuses are funded when the Company achieves a threshold level of
target EPS performance. The level of bonus funding is determined by EPS performance,
Revenue Growth and R&D Reinvestment Rate as outlined in the table below.

	w	 	Earnings Per Share, Revenue Growth and R&D Reinvestment Rate

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	R&D	 	 	 	 	 	 	TOTAL
	2008 EPS	 	2008 EPS	 	BONUS %	 	 	REVENUE	 	BONUS %	 	 	REINVEST.	 	BONUS %	 	 	BONUS % OF
	RANGE %	 	RANGE	 	OF TARGET	 	 	GROWTH	 	OF TARGET	 	 	RATE	 	OF TARGET	 	 	TARGET
	 	 	 	 	 	 	 	 	 	 
	-2.9%

	 	-$0.075
	 	 	0.0	%	 	 	 	12.8	%	 	 	0.0	%	 	 	 	15.72	%	 	 	0.0	%	 	 	 	0.0	%
	-2.3%

	 	-$0.060
	 	 	50.0	%	 	 	 	13.8	%	 	 	2.0	%	 	 	 	15.97	%	 	 	2.0	%	 	 	 	54.0	%
	-1.7%

	 	-$0.045
	 	 	60.0	%	 	 	 	14.8	%	 	 	4.0	%	 	 	 	16.22	%	 	 	4.0	%	 	 	 	68.0	%
	-1.2%

	 	-$0.030
	 	 	70.0	%	 	 	 	15.8	%	 	 	6.0	%	 	 	 	16.47	%	 	 	6.0	%	 	 	 	82.0	%
	-0.6%

	 	-$0.015
	 	 	80.0	%	 	 	 	16.8	%	 	 	8.0	%	 	 	 	16.72	%	 	 	8.0	%	 	 	 	96.0	%
	Target

	 	Target
	 	 	90.0	%	 	 	 	17.8	%	 	 	10.0	%	 	 	 	16.97	%	 	 	10.0	%	 	 	 	110.0	%
	0.8%

	 	 $0.020
	 	 	94.0	%	 	 	 	18.8	%	 	 	13.8	%	 	 	 	17.22	%	 	 	13.8	%	 	 	 	121.5	%
	1.5%

	 	 $0.040
	 	 	98.0	%	 	 	 	19.8	%	 	 	17.5	%	 	 	 	17.47	%	 	 	17.5	%	 	 	 	133.0	%
	2.3%

	 	 $0.060
	 	 	102.0	%	 	 	 	20.8	%	 	 	21.3	%	 	 	 	17.72	%	 	 	21.3	%	 	 	 	144.5	%
	3.1%

	 	 $0.080
	 	 	106.0	%	 	 	 	21.8	%	 	 	25.0	%	 	 	 	17.97	%	 	 	25.0	%	 	 	 	156.0	%
	3.8%

	 	 $0.100
	 	 	110.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	160.0	%

Revenue Growth and R&D Reinvestment Rate bonus funding may not exceed target unless EPS
performance is equal to or greater than target. If actual results fall between the performance
levels shown above, bonuses will be prorated accordingly.

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BONUS POOL DIFFERENTIATION BY BUSINESS UNIT/FUNCTION

	w	 	Operating Income—The target bonus pool
determined by EPS, Revenue Growth and R&D
Reinvestment Rate performance is modified for
each business unit/function based on Operating
Income results vs. budget. That is, a business
unit that exceeds budget will receive a greater
share of the total Company pool than a business
unit that is below budget.

At the end of the year, the Chief Executive Officer of Allergan, Inc. may recommend adjustments to
the bonus funding levels to the Organization and Compensation Committee (the “Committee”) after
consideration of key operating results. When calculating corporate performance for purposes of
this Plan, the Committee has the discretion to include or exclude any or all of the following
items:

	 	•	 	extraordinary, unusual or non-recurring items
	 
	 	•	 	effects of accounting changes
	 
	 	•	 	effects of financing activities
	 
	 	•	 	expenses for restructuring or productivity initiatives
	 
	 	•	 	other non-operating items
	 
	 	•	 	spending for acquisitions
	 
	 	•	 	effects of divestitures
	 
	 	•	 	amortization of acquired intangible assets

INDIVIDUAL BONUS AWARD CALCULATION

Target bonus awards are expressed as a percentage of the participant’s year-end annualized base
salary. The target percentages vary by salary grade (see Attachment No. 1).

A participant’s actual bonus award may vary above or below the targeted level based on the
supervisor’s evaluation of his or her performance in relation to the predetermined MBOs. Each
participant’s actual bonus award may be modified down to 0% or up to 150% of his or her target
bonus amount. However, the total of all bonus awards given within each business unit must total no
more than 100% of the total bonus pool dollars allocated to that business unit.

METHOD OF PAYMENT

For grade 8 Directors and above, bonuses are paid in cash up to a maximum bonus pool equal to 100%
of participants’ bonus targets and performance over such pool is paid in restricted stock or
restricted stock units with cliff vesting two years from the award effective date. Any payment in
the form of stock will be issued under the Incentive Compensation Plan or, if adopted by the
Company’s stockholders, 2008 Incentive Award Plan. Upon a recipient’s normal retirement eligibility
date (defined as the date on which the recipient has (i) attained age 55 and (ii) been employed by
the Company for a minimum of 5 years) all of the restrictions imposed on the recipient’s restricted
stock shall lapse. For grade 7 participants, all bonuses are paid in cash. Bonus awards are paid
following the close of the Plan year after the review and authorization of bonuses by the
Committee. Bonuses will be paid within 30 days following management communication of the award,
through the participant’s normal payroll channel. In the event of a Change in Control (as defined
in Attachment No. 2), bonuses will be paid within 30 days of the effective date of the Change in
Control.

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CHANGE IN CONTROL

If a Change in Control occurs after the close of the Plan year and Company performance supports
bonus pool funding, participants will be paid a bonus based on performance in relation to the EPS, Revenue Growth and R&D Reinvestment Rate targets.

If the Change in Control occurs during the Plan year, participants will be paid a bonus prorated to
the effective date of the Change in Control and EPS, Revenue Growth and R&D Reinvestment Rate
performance will be deemed to be the greater of:

	 	•	 	100% of the EPS, Revenue Growth and R&D Reinvestment Rate targets or 
	 
	 	•	 	the prorated actual year-to-date performance

In either case, a participant’s actual bonus may vary above or below the targeted level according
to the provisions outlined in “Individual Bonus Award Calculation” above. Participants must be
employed by the Company or its successor on the effective date of the Change in Control in order to
receive the prorated payment, unless their employment is terminated for retirement, death,
disability, or otherwise without cause. For purposes of this plan, “cause” shall be limited to only
three types of events: the willful refusal to comply with a lawful, written instruction of the
Board so long as the instruction is consistent with the scope and responsibilities of the
participant’s position prior to the Change in Control; dishonesty which results in a material
financial loss to the Company (or to any of its affiliated companies) or material injury to its
public reputation (or to the public reputation of any of its affiliated companies); or conviction
of any felony involving an act of moral turpitude.

GENERAL

Management reserves the right to define corporate performance and individual performance and to
review, alter, amend, or terminate the Plan at any time subject to approval of the Committee. This
Plan does not constitute a contract of employment and cannot be relied upon as such. Any questions
regarding this Plan should be directed to the Human Resources department or the Vice President,
Compensation and Benefits. This Management Bonus Plan document supersedes any previous document you
may have received.

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ATTACHMENT NO. 1

ALLERGAN

2008 MANAGEMENT BONUS PLAN

TARGET AWARDS

	 	 	 	 	 
	 	 	US	 	Intl
	Salary Grade	 	Target Bonus	 	Target Bonus
	7E
	 	12%
	 	15%
	8E
	 	17%
	 	20%
	9E
	 	23%
	 	25%
	10E
	 	25%
	 	30%
	11E
	 	35%
	 	35%
	12E
	 	35%
	 	40%
	13E
	 	40%
	 	45%
	14E
	 	50%	 	 
	15E
	 	65%	 	 

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ATTACHMENT NO. 2

CHANGE IN CONTROL DEFINITION

“Change in Control” shall mean the following and shall be deemed to occur if any of the following
events occur:

     (a) Any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”), is or becomes the “beneficial
owner,” as defined in Rule 13d-3 under the Exchange Act (a “Beneficial Owner”), directly or
indirectly, of securities of Allergan, Inc., a Delaware corporation (“Allergan”) representing (i)
20% or more of the combined voting power of Allergan’s then outstanding voting securities, which
acquisition is not approved in advance of the acquisition or within 30 days after the acquisition
by a majority of the Incumbent Board (as hereinafter defined) or (ii) 33% or more of the combined
voting power of Allergan’s then outstanding voting securities, without regard to whether such
acquisition is approved by the Incumbent Board;

     (b) Individuals who, as of the date hereof, constitute the Board of Directors of Allergan
(the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board of
Directors, provided that any person becoming a director subsequent to the date hereof whose
election, or nomination for election by Allergan’s stockholders, is approved by a vote of at least
a majority of the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of Allergan, as such terms
are used Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall, for the purposes
of this Agreement, be considered as though such person were a member of the Incumbent Board of
Allergan;

     (c) The consummation of a merger, consolidation or reorganization involving Allergan, other
than one which satisfies both of the following conditions:

          (1) a merger, consolidation or reorganization which would result in the voting securities of
Allergan outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of another entity) at least 55% of the
combined voting power of the voting securities of Allergan or such other entity resulting from the
merger, consolidation or reorganization (the “Surviving Corporation”) outstanding immediately after
such merger, consolidation or reorganization and being held in substantially the same proportion as
the ownership in Allergan’s voting securities immediately before such merger, consolidation or
reorganization, and

          (2) a merger, consolidation or reorganization in which no Person is or becomes the
Beneficial Owner directly or indirectly, of securities of Allergan representing 20% or more of the
combined voting power of Allergan’s then outstanding voting securities; or

     (d) The stockholders of Allergan approve a plan of complete liquidation of Allergan or an
agreement for the sale or other disposition by Allergan of all or substantially all of Allergan’s
assets.

Notwithstanding the preceding provisions of this Section, a Change in Control shall not be deemed
to have occurred if the Person described in the preceding provisions of this Section is (1) an
underwriter or underwriting syndicate that has acquired the ownership of any of Allergan’s then
outstanding voting securities solely in connection with a public offering of Allergan’s securities,
(2) Allergan or any subsidiary of Allergan or (3) an employee stock ownership plan or other
employee benefit plan maintained by Allergan (or any of its affiliated companies) that is qualified
under the provisions of the Internal Revenue Code of 1986, as amended. In addition,
notwithstanding the preceding provisions of this Section, a Change in Control shall not be deemed
to have occurred if the Person described in the preceding provisions of this Section becomes a
Beneficial Owner of more than the permitted amount of outstanding securities as a result of the
acquisition of voting securities by Allergan which, by reducing the number of voting securities
outstanding, increases the proportional number of shares beneficially owned by such Person,
provided, that if a Change in Control would occur but for the operation of this sentence and such
Person becomes the Beneficial Owner of any additional voting securities (other than through the
exercise of options granted under any stock option plan of Allergan or through a stock dividend or
stock split), then a Change in Control shall occur.

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EXHIBIT 10.15

                              TERMINATION AGREEMENT

      THIS TERMINATION AGREEMENT (the "Agreement) entered into by and between
GEORGE OFF, a resident of the Commonwealth of Pennsylvania (the "Chairman"), and
CHECKPOINT SYSTEMS, INC., a corporation organized and existing under the laws of
the Commonwealth of Pennsylvania (the "Company") this 28th day of December,
2007.

      WHEREAS, the Chairman and the Company entered into an Amended and Restated
Employment Agreement as of January 1, 2006 (the "Employment Agreement"); and

      WHEREAS, in recognition of the Board of Directors' election of Robert van
der Menve as Chief Executive Officer of Company as of December 27, 2007, it is
appropriate to revise certain terms of the Employment Agreement and to confirm
the Chairman's status as Chairman of the Board of Directors from that date
forward.

      NOW, THEREFORE, in consideration of the mutual covenants and obligations
contained herein, and intending to be legally bound, the parties, subject to the
terms and conditions set forth herein, agree as follows:

      1. The Chairman confirms his resignation as an employee and officer of the
Company effective as of December 27, 2007, and the Company confirms its
acceptance of such resignation.

         The parties further agree that the Chairman's resignation was for Good
Reason (as defined in the Employment Agreement).

      3. The Chairman shall continue to serve as Chairman of the Board of
Directors of the Company until his removal by the Board or his resignation, and
he shall use his best efforts to assist management during the transition period
following Mr, van der Merwe's appointment as Chief Executive Officer, provided
that the Chairman shall not resign for reasons other than physical incapacity
before the earlier of Dece. hor 31, 2008 or such date as of which the Board has
concluded that a sufficient transition period has elapsed.V

      4. The Chairman shall be entitled to such compensation for his services as
Chairman of the Board of Directors as determined by the Board.

      5. Section 10(b) of the Employment Agreement is hereby amended in the
following respects:

         (a) The Good Reason severance payment will not include e pro rate
portion of Average Annual Incentive Compensation.

         (b) The restricted stock units granted to the Chairman on April 1, 2005
shall not become vested as a result of his Good Reason termination.

         (c) The Good Reason severance payment shall include an additional
amount equal to the bonus which the Chairman would have earned as the Chief
Executive Officer of the Company for the current fiscal year had he not resigned
prior to the close of the fiscal year, reduced by $400,000. Such additional
amount shall be paid no later than March 15, 2008.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
the day and year first written above.

ATTE ST:                               CHECKPOINT SYSTEMS, INC.

/s/ Erica Elliott                      By:  R. Keith Elliott
-------------------------              ----------------------------------------

                                       /s/    George Off
                                       -----------------------------------------

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