Document:

exv10w1

 

Exhibit 10.1

SANTARUS, INC.

2006 BONUS PLAN*

 

* Excludes those covered under the Sales Incentive Plan

 

 

Santarus, Inc.

2006 Bonus Plan

The Santarus, Inc. (“Santarus” or the “Company”) Bonus 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. The Bonus Plan will create an environment that
focuses employees on the achievement of the 2006 goals. A combination of corporate performance and
individual performance will determine individual bonus payouts.

Purpose of the Plan

The Santarus Bonus 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 and any other employees with an annual base salary greater
than or equal to $200,000.

Eligibility

All regular employees of the Company working at least 20 hours per week will be eligible to
participate in the Plan. Temporary employees and part-time employees (working less than 20 hours
per week) are not included in this Plan. In order to be eligible to receive any bonus award
(“Bonus”) under this Plan, a participant: (a) must have commenced their employment with the
Company prior to November 15 of the Plan year and remained continuously employed through the end of
the Plan year and until the time Bonuses are paid; and (b) must be an employee in good standing
(i.e., not on a performance improvement plan or a Needs Improvement performer).

 

 

Corporate and Individual Performance

The President and CEO will present to the Compensation Committee and the Board a list of the
overall corporate goals for the Plan year, which is subject to approval. All participants in the
Plan will then develop a list of key individual goals, which will be approved by the responsible
Vice President.

The total bonus pool for the Plan will be based on achievement of the 2006 corporate goals and
individual objectives that have been approved as indicated above.

Bonus Awards

The Bonus will be paid in cash and is based on achievement of the 2006 corporate goals and
achievement of individual objectives. The Bonus will be calculated by using the Base Salary,
Weighting Factor, Target Bonus Percentage and Goal Multipliers as identified below:

Weighting Factor

The relative weight between corporate and individual performance factors will vary based on levels
within the organization. The weighting factors will be reviewed annually and adjusted, as
necessary or appropriate. The weighting for 2006 will be as follows:

	 	 	 	 	 	 	 	 	 
	Position	 	Corporate	 	 	Individual	 
	President and CEO
	 	 	100%	 	 	 	 	 
	Group G (Officers)
	 	 	100%	 	 	 	 	 
	Group F (Non-Officer VPs)
	 	 	80%	 	 	 	20%	 
	Group E (Directors)
	 	 	80%	 	 	 	20%	 
	Group D (Managers)
	 	 	60%	 	 	 	40%	 
	Group C
	 	 	40%	 	 	 	60%	 
	Group A & B
	 	 	20%	 	 	 	80%	 

Target Bonus Percentages 

Bonus awards will be determined by applying a “target bonus percentage” to the base salary of
employees in the Plan. Following are the 2006 target bonus percentages:

	 	 	 
	Position	 	Target Bonus Percentages
	President and CEO
	 	50%
	Group G
	 	35%
	Group F
	 	30%
	Group E
	 	20%
	Group D
	 	15%
	Group C
	 	10%
	Group B
	 	7.5%
	Group A
	 	5%

 

 

The base salary as of December 31, 2006 times the target bonus percentage will be used to establish
the target bonus award for the 2006 year.

Goal Multipliers

Corporate Goal Multiplier: The following scale will be used by the Board of Directors to
determine the actual “corporate goal multiplier” based upon measurement of actual corporate
performance versus pre-established corporate goals and objectives. The goal multiplier will be
used with the calculated target bonus award and the weighting factor to determine the actual cash
award for each individual based on corporate performance.

	 	 	 
	Performance Category
	 	Goal Multiplier
	 
	 	 
	1.
Performance for the year met or exceeded goals or was excellent in view of prevailing conditions
	 	90% - 150%
	 
	2.
Performance generally met most of the year’s goals or was acceptable in view of prevailing conditions
	 	50% - 90%
	 
	3. Performance for the year met some, but not all goals
	 	25% - 50%
	 
	4.
Performance for the year was not acceptable in view of prevailing conditions
	 	0%

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 2006 review cycle as well as any other relevant criteria relating to the
individual’s job performance during 2006. The specific multipliers for each performance rating
level is reviewed and approved by Executive Management each year.

Calculation of Award

The example below shows a sample bonus award calculation under the Plan. First, a target bonus
award 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 awards 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 bonus awards

 

 

for all Plan participants. This is accomplished by multiplying the target corporate bonus award
established for each individual by the actual 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 bonus award.

Example:          Actual Cash Bonus Award Calculation

	 	 	 
	Group Level
	 	B
	Position
	 	Executive Assistant
	Base Salary as of December 31, 2005
	 	$50,000
	Target Bonus Percentage
	 	        7.5%
	Target Bonus Award
	 	$  3,750

	 	 	 
	Target Bonus Award Components:
	 	 
	Target Bonus Award based on corporate performance (20%):
	 	$   750
	Target Bonus Award based on individual performance (80%):
	 	$3,000

	 	 	 
	Corporate Goal Multiplier
	 	80%
	Individual Goal Multiplier
	 	90%

	 	 	 
	Actual Cash Bonus Award Calculation:
	 	 
	 
	Corporate Bonus Award
	 	$   600 ($750 x 80%)
	Individual Bonus Award
	 	$2,700 ($3,000 x 90%)
	Total Actual Cash Bonus Award
	 	$3,300

Payment of the Actual Cash Bonus Award

Annual performance reviews for Plan participants will be completed by February 28, 2007. Payments
of actual cash bonus awards will be made as soon as practical, but not later than March 15, 2007.
Participants’ entitlement to Bonuses under this Plan does not vest until the Bonuses are actually
paid.

Participants who join the Company prior to November 15 of the Plan year and remain continuously
employed through the end of the Plan year will be eligible to participate in the Plan and have
their actual cash bonus award 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 the 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. A participant must also be an employee in good standing (not on a performance
improvement plan or Needs Improvement performer) in order to be eligible to receive a Bonus
payment.

 

 

Company’s Absolute Right to Alter or Abolish the Plan

Santarus reserves the right in its absolute discretion to abolish the Plan at any time or to alter
the terms and conditions under which bonus compensation will be paid. 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 Company’s discretion all or a portion of a
Bonus payment may be made in shares of the Company’s common stock.

Employment Duration/Employment Relationship

This Plan does not, and Santarus’ 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 Santarus or by the participant with or without cause.Ex 10.1

    2006
      COMPENSATION PLAN FOR OUTSIDE CONSULTANTS

    

    1. PURPOSE
      OF PLAN

    

    1.1
      This
      2006 Compensation Plan for Outside Consultants (the "Plan") of International
      Food Products Group, Inc., a Nevada corporation (the "Company") for persons
      that
      render outside consulting services to the Company, is intended to advance the
      best interests of the Company by providing outside consultants with compensation
      for bone fide consulting services rendered to the Company. 

    

    2. DEFINITIONS

    

    2.1
      For
      Plan purposes, except where the context might clearly indicate other wise,
      the
      following terms shall have the meanings set forth below:

    

    "Board"
      shall mean the Board of Directors of the Company.

    

    "Committee"
      shall mean the Compensation Committee, or such other committee appointed by
      the
      Board, which shall be designated by the Board to administer the Plan, or the
      Board if no committees have been established. If no committees have been
      established the Board will designate one member of the Board as the Plan
      Administrator. The Committee shall be composed of three or more persons as
      from
      time to time are appointed to serve by the Board. Each member of the Committee,
      while serving as such, shall be a disinterested person with the meaning of
      Rule
      16b-3 promulgated under the Securities Exchange Act of 1934.

    

    "Common
      Shares" shall mean the Company's Common Shares, $.001 par value per share,
      or,
      in the event that the outstanding Common Shares are hereafter changed into
      or
      exchanged for different shares of securities of the Company, such other shares
      or securities.

    

    "Company"
      shall mean International Food Products Group, Inc., a Nevada
      corporation.

    

    "Common
      Stock" shall mean shares of common stock which are issued by the Company
      pursuant to Section 5, below.

    

    "Common
      Stockholder" means the consultant to the Company to whom shares of Common Stock
      are issued pursuant to this Plan.

    

    “Common
      Stock Agreement" means an agreement executed by a Common Stockholder and the
      Company as contemplated by Section 5, below, which imposes on the shares of
      Common Stock held by the Common Stockholder such restrictions as the Board
      or
      Committee deem appropriate.

    

    
      
        
        

      

      
        -
          1 -

        
          

        

      

      
        
        

      

    

    3. ADMINISTRATION
      OF THE PLAN

    

    3.1
      The
      Committee shall administer the Plan and accordingly, it shall have full power
      to
      grant Common Stock issuances, construe and interpret the Plan, establish rules
      and regulations and perform all other acts, including the delegation of
      administrative responsibilities, it believes reasonable and proper.

    

    3.2
      The
      determination of those eligible to receive Common Stock, and the amount, type
      and timing of each grant and the terms and conditions of the Common Stock
      agreements shall rest in the sole discretion of the Committee, subject to the
      provisions of the Plan.

    

    3.3
      The
      Board, or the Committee, may correct any defect, supply any omission or
      reconcile any inconsistency in the Plan, or in any Common Stock agreement,
      in
      the manner and to the extent it shall deem necessary to carry it into
      effect.

    

    3.4
      Any
      decision made, or action taken, by the Committee or the Board arising out of
      or
      in connection with the interpretation and administration of the Plan shall
      be
      final and conclusive.

    

    3.5
      Meetings of the Committee shall be held at such times and places as shall be
      determined by the Committee. A majority of the members of the Committee shall
      constitute a quorum for the transaction of business, and the vote of a majority
      of those members present at any meeting shall decide any question brought before
      that meeting. In addition, the Committee may take any action otherwise proper
      under the Plan by the affirmative vote, taken without a

    meeting,
      of a majority of its members.

    

    3.6
      No
      member of the Committee shall be liable for any act or omission of any other
      member of the Committee or for any act or omission on his own part, including,
      but not limited to, the exercise of any power or discretion given to him under
      the Plan, except those resulting from his own gross negligence or willful
      misconduct.

    

    3.7
      The
      Company, through its management, shall supply full and timely information to
      the
      Committee on all matters relating to the eligibility of persons to receive
      Common Stock under the Plan ("Plan Participants"), their duties and performance,
      and current information on any Plan Participant's termination of association
      with the Company, and such other pertinent information as the Committee may
      require. The Company shall furnish the Committee with such clerical and other
      assistance as is necessary in the performance of its duties
      hereunder.

    

    4. SHARES
      SUBJECT TO THE PLAN

    

    4.1
      The
      total number of shares of the Company available for grants of Common Stock
      under
      the Plan shall be 12,000,000 Common Shares, subject to adjustment in accordance
      with Article 7 of the Plan, which shares may be either authorized but unissued
      or re-acquired Common Shares of the Company.

    

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

    5. AWARD
      OF COMMON STOCK

    

    5.1
      The
      Board or Committee from time to time, in its absolute discretion, may award
      Common Stock to outside consultants of the Company. All such recipients of
      Common Shares shall be collectively referred to throughout this Plan as Plan
      Participants. The Board or Committee, as the case maybe, is specifically
      authorized to grant the issuance of Common Stock under this Plan, as
      compensation that would otherwise be payable to the Plan Participants in
      exchange for their services to the Company.

    

    5.2
      Common Stock shall be issued only pursuant to a Common Stock Agreement, which
      shall be executed by the Common Stockholder and the Company and which shall
      contain such terms and conditions as the Board or Committee shall determine
      consistent with this Plan, including such restrictions on transfer as are
      imposed by the Common Stock Agreement.

    

    5.3
      Upon
      delivery of the shares of Common Stock to the Common Stockholder, below, the
      Common Stockholder shall have, unless otherwise provided by the Board or
      Committee, all the rights of a stockholder with respect to said shares, subject
      to the restrictions in the Common Stock Agreement, including the right to
      receive all dividends and other distributions paid or made with respect to
      the
      Common Stock.

    

    5.4
      All
      shares of Common Stock issued under this Plan (including any shares of Common
      Stock and other securities issued with respect to the shares of Common Stock
      as
      a result of stock dividends, stock splits or similar changes in the capital
      structure of the Company) shall be subject to such restrictions as the Board
      or
      Committee shall provide, which restrictions may include, without limitation,
      restrictions concerning voting rights, transferability of the Common Stock;
      provided that the Board or Committee may, on such terms and conditions as it
      may
      determine to be appropriate, remove any or all of such restrictions. Common
      Stock may not be sold or encumbered until all applicable restrictions have
      terminated or expire. The restrictions, if any, imposed by the Board or
      Committee of the Board under this Section 5 need not be identical for all Common
      Stock and the imposition of any restrictions with respect to any Common Stock
      shall not require the imposition of the same or

    any
      other
      restrictions with respect to any other Common Stock.

    

    5.5
      The
      Board or Committee shall cause a legend or legends to be placed on certificates
      representing shares of Common Stock that are subject to restrictions under
      Common Stock Agreements, which legend or legends shall make appropriate
      reference to the applicable restrictions.

    

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

    6. ADJUSTMENTS
      OR CHANGES IN CAPITALIZATION

    

    6.1
      In
      the event that the outstanding Common Shares of the Company are hereafter
      changed into or exchanged for a different number or kind of shares or other
      securities of the Company by reason of merger, consolidation, other
      reorganization, recapitalization, reclassification, combination of shares,
      stock
      split-up or stock dividend, prompt, proportionate, equitable, lawful and
      adequate adjustment shall be made of the aggregate number and kind of shares
      subject to all Common Stock Agreements which may be granted under the Plan,
      such
      that the Plan Participants shall have the right to receive such Common Shares
      as
      may be issued in exchange for the Common Shares had such merger, consolidation,
      other reorganization, recapitalization, reclassification, combination of shares,
      stock split-up or stock dividend not taken place;

    

    6.2
      The
      foregoing adjustments and the manner of application of the foregoing provisions
      shall be determined solely by the Committee, whose determination as to what
      adjustments shall be made and the extent thereof, shall be final, binding and
      conclusive. No fractional Shares shall be issued under the Plan on account
      of
      any such adjustments.

    

    7. AMENDMENT
      AND TERMINATION OF PLAN

    

    7.1
      The
      Board may at any time, and from time to time, suspend or terminate the Plan
      in
      whole or in part or amend it from time to time in such respects as the Board
      may
      deem appropriate and in the best interest of the Company.

    

    7.2
      No
      amendment, suspension or termination of this Plan shall, without the Plan
      Participant's consent, alter or impair any of the rights or obligations under
      any Common Stock Agreement theretofore granted to him under the
      Plan.

    

    7.3
      The
      Board may amend the Plan, subject to the limitations cited above, in such manner
      as it deems necessary to permit the granting of Stock Options meeting the
      requirements of future amendments or issued regulations, if any, to the
      Code.

    

    8. GOVERNMENT
      AND OTHER REGULATIONS

    

    8.1
      The
      obligation of the Company to issue, transfer and deliver Common Shares received
      under the Plan shall be subject to all applicable laws, regulations, rules,
      orders and approvals which shall then be in effect and required by the relevant
      stock exchanges on which the Common Shares are traded and by government entities
      as set forth below or as the Committee in its sole discretion shall deem
      necessary or advisable. Specifically, in connection with the Securities Act
      of
      1933, as amended, the receipt of any Common Shares under the Plan by Plan
      Participants shall be governed by the rules and regulations promulgated under
      the Securities Act of 1933, as amended, as to the permitted uses of Form S-8
      and
      the issuance of securities registered on such Form S-8. Any determination in
      this connection by the Committee shall be final, binding and conclusive. The
      Company may, but shall in no event be obligated to, take any other affirmative
      action in order to cause the issuance of Common Shares pursuant thereto to
      comply with any law or regulation of any government authority.

    

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

    9. MISCELLANEOUS
      PROVISIONS

    

    9.1
      No
      person shall have any claim or right to be granted Common Stock under the Plan,
      and the grant of Common Stock under the Plan shall not be construed as giving
      a
      Common Stockholder the right to be retained by the Company. Furthermore, the
      Company expressly reserves the right at any time to terminate its relationship
      with an Plan Participant with or without cause, free from any liability, or
      any
      claim under the Plan, except as provided herein, in

    any
      agreement between the Company and the Plan Participant.

    

    9.2
      Any
      expenses of administering this Plan shall be borne by the Company.

    

    9.3
      The
      place of administration of the Plan shall be in the City of Newport Beach,
      California, but the validity, construction, interpretation, administration
      and
      effect of the Plan and of its rules and regulations, and rights relating to
      the
      Plan, shall be determined solely in

    accordance
      with the laws of the State of Nevada.

    

    9.4
      Without amending the Plan, grants may be made to persons who are foreign
      nationals or employed outside the United States, or both, on such terms and
      conditions, consistent with the Plan's purpose, different from those specified
      in the Plan as may, in the judgment of the Committee, be necessary or desirable
      to create equitable opportunities given differences in tax laws in other
      countries.

    

    9.5
      In
      addition to such other rights of indemnification as they may have as members
      of
      the Board or the Committee, the members of the Committee shall be indemnified
      by
      the Company against all costs and expenses reasonably incurred by them in
      connection with any action, suit or proceeding to which they or any of them
      may
      be party by reason of any action taken or failure to act under or in connection
      with the Plan or any Common Stock Agreement granted thereunder, and against
      all
      amounts paid by them in settlement thereof (provided such settlement is approved
      by independent legal counsel selected by the Company) or paid by them in
      satisfaction of a judgment in any such action, suit or proceeding, except a
      judgment based upon a finding of bad faith; provided that upon the institution
      of any such action, suit or proceeding a Committee member shall, in writing,
      give the Company notice thereof and an opportunity, at its own expense, to
      handle and defend the same, with counsel acceptable to the

    Plan
      Participant, before such Committee member undertakes to handle and defend it
      on
      his own behalf.

    

    9.6
      Notwithstanding anything to the contrary in the Plan, if the Committee finds
      by
      a majority vote, after full consideration of the facts presented on behalf
      of
      both the Company and the Plan Participant, that the Plan Participant has been
      engaged in fraud, embezzlement, theft, insider trading in the Company's stock,
      commission of a felony or proven dishonesty in the course of his association
      with the Company or any subsidiary corporation which damaged the Company or
      any
      subsidiary corporation, or for disclosing trade secrets of the Company or any
      subsidiary corporation, the Plan Participant shall forfeit all Common Shares
      that remain in the beneficial ownership of the Plan Participant and that were
      received by him under the Plan. The decision of the Committee as to the cause
      of
      a Plan Participant's discharge and the damage done

    to
      the
      Company shall be final. No decision of the Committee, however, shall affect
      the
      finality of the discharge of such Plan Participant by the Company or any
      subsidiary corporation in any manner.

    

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

    10. WRITTEN
      AGREEMENT

    

    10.1
      All
      Common Shares granted hereunder shall be embodied in a written Common Stock
      Agreement which shall be subject to the terms and conditions prescribed above
      and shall be signed by the Plan Participant and by the President of the Company,
      or by the Chief Executive Officer of the Company or by the Plan Administrator
      of
      the Board, for and in the name and on behalf of the Company. Such Common Stock
      Agreement shall contain such other provisions as the Committee, in its
      discretion shall deem advisable.

    

    The
      undersigned duly appointed secretary of the Company, does hereby certify that
      this Plan, and its terms and provisions, were duly approved by the Company's
      Board of Directors on this 2nd day of February, 2006.

    

    

    /s/
      Richard Damion

    _________________________________________
      

    Richard
      Damion 

    CEO

     

    
      
        
        

      

      
        -
          6 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]