Document:

ex10-28.htm

    EXHIBIT
10.28

    

    EXECUTIVE
SEVERANCE AGREEMENT

    

    Executive Severance Agreement
("Agreement") is made effective as of May 1, 2008 (the "Effective Date"),
between Linvatec Corporation d/b/a CONMED Linvatec, a Florida corporation with
its principal place of business at 11311 Concept Blvd., Largo, Florida 33773,
hereinafter referred to as "Linvatec," and Joseph G. Darling, hereinafter
referred to as "Darling."

    

    RECITALS

    

    WHEREAS, this Agreement is subject to
and shall be effective and binding on Darling, and shall be binding on Linvatec
upon execution;

    

    WHEREAS, Linvatec Corporation has
offered employment to Darling, and Darling has accepted such employment subject
to the execution of this Executive Severance Agreement;

    

    In
consideration of the promises and of the mutual covenants contained herein, and
for other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

     

    
      	
               
      

            	
              1.

            	
              Severance
      Obligation.  In addition to the terms and conditions of
      employment offered to Darling, which terms are set forth in a separate
      instrument, Linvatec has agreed to provide Darling with a Severance
      Payment, as set forth herein:

            

    

     

    
      	
               
      

            	
              (a)

            	
              In
      the event of (i) a sale of substantially all of the assets of, or a
      transfer of substantially all of the stock of, Linvatec (hereinafter
      referred to as a “Change of Control”) and (ii) if either (x) Darling does
      not retain the title of President and comparable responsibilities for the
      eighteen (18) month period following such Change of Control, or (y)
      Darling is terminated with or without cause within eighteen (18) months of
      such change in control, provided Darling agrees to stay on as an employee
      during such eighteen (18) months, Linvatec or its successors or assigns
      will pay to Darling a Severance Payment equal to his salary then in effect
      for eighteen (18) months; provided that Darling shall have provided thirty
      (30) days prior written notice to the Chief Executive Officer of Linvatec
      and the General Counsel of Conmed Corporation within thirty days of his
      having been deprived of the title of President or the comparable
      responsibilities with Linvatec then being permitted thirty (30) days to
      cure, if possible, before Darling shall be entitled to the payment
      contemplated herein; provided further, that if Darling is terminated for
      misconduct, he shall be entitled to no Severance
  Payment.

            

    

     

    
      	
               
      

            	
              (b)

            	
              In
      circumstances not involving a Change in Control, if within two (2) years
      of the Effective Date, Linvatec terminates Darling’s employment without
      cause, Linvatec or its successors or assigns will pay to Darling a
      Severance Payment equal to his salary then in effect for twelve (12)
      months; provided that Darling is not employed with another company;
      provided further, that if Darling is terminated for misconduct, he shall
      be entitled to no Severance
Payment.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	
               
      

            	
              (c)

            	
              In
      circumstances not involving a Change in Control, if Linvatec terminates
      Darling’s employment with cause, Linvatec or its successors or assigns
      will pay to Darling a Severance Payment equal to his salary then in effect
      for six (6) months, provided that Darling is not employed with another
      company; provided further, that if Darling is terminated for misconduct,
      he shall be entitled to no Severance
Payment.

            

    

     

    
      	
               
      

            	
              (d)

            	
              In
      circumstances not involving a Change in Control, if Linvatec terminates
      Darling’s employment for misconduct, Darling shall be entitled to no
      Severance Payment.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Any
      Severance Payment described in this Paragraph as due will be paid provided
      further if the following conditions are met:  (i) Darling
      executes a full general release, releasing all claims, known or unknown,
      suspected or unsuspected, that Darling may have against Linvatec arising
      out of or any way related to Darling’s employment or termination of
      employment with Linvatec; and (ii) Darling complies with all
      surviving provisions of this
Agreement.

            

    

     

    
      	
               
      

            	
              (f)

            	
              For
      purposes of this Agreement, the term “Severance Payment” shall refer to
      the salary amounts referred to herein.  For the sake of clarity,
      the term Severance Payment shall not include any right to continue to
      participate in the maintenance of health or welfare benefits, including,
      without limitation, the 401(k) Plan, pension plan or employee stock
      purchase plan otherwise available to Linvatec employees. Darling agrees
      that any Severance Payment otherwise due under this Agreement may be
      reduced by Linvatec or its successors and assigns to fulfill any
      outstanding payments or debts due and owing by Darling to Linvatec
      following written notice of its intent to make such
      deductions.

            

    

     

    
      	
               
      

            	
              2.

            	
              Governing Law; Consent
      to Forum and Jurisdiction; Waiver of Jury.  This
      Agreement will be governed by and construed in accordance with the laws of
      the United States and the State of Florida.  Each party consents
      to the exclusive jurisdiction and venue of the state or federal courts in
      Largo, Florida, if applicable, in any action, suit, or proceeding arising
      out of or relating to this Agreement.  Linvatec and Darling
      waive any right otherwise in existence to a jury trial for any claims
      arising under or relating to the provisions of this Agreement, with any
      claims arising or relating to this Agreement to be resolved in the manner
      set forth herein.

            

    

     

    
      	
               
      

            	
              3.

            	
              Nature of
      Employment.  The nature of the employment relationship
      between Linvatec Corporation and its employees is
      at-will.  Linvatec makes no representation that employment with
      Linvatec represents a guarantee of continued
      employment.  Linvatec recognizes that employees may resign at
      any time and for any reason.  Likewise, individual employment
      may be discontinued whenever Linvatec deems it to be in their best
      interests.  Any statements to the contrary are disavowed and
      should not be relied on by any
employee.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.

            	
              Entire Agreement; No
      Amendment Unless Signed. This Agreement constitutes the entire
      agreement between the parties hereto and supersedes and replaces all prior
      agreements or understandings (whether oral or written) concerning
      severance in the event of a Change in Control of Linvatec or
      otherwise.   This Agreement may not be changed or modified
      except by an instrument in writing signed by both parties and which states
      that it is an amendment hereto.

            

    

     

    
      	
               
      

            	
              5.

            	
              Discretion to
      Administrator of Linvatec Severance Plan.  All
      determinations concerning eligibility and the extent of any payments made
      under this Agreement shall reside with the Administrator of the Linvatec
      Severance Plan.  The Plan Administrator shall have the same
      discretion to interpret the provisions of this Agreement as would be the
      case under the Linvatec Severance Plan, with Darling to have the same
      remedies and process for submitting claims and for submitting any appeals
      as would be the case under the Linvatec Severance
  Plan.

            

    

     

    THE
PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND
EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED
THIS AGREEMENT ON THE DATES SHOWN BELOW.

    

    

    

    
      	 
      	 
      	
              Executive

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/ Joseph G. Darling

            
	 
      	 
      	
              Joseph
      G. Darling

            
	 
      	 
      	
              President

            
	 
      	 
      	 
      
	 
      	 
      	
              Linvatec
      Corporation d/b/a

              CONMED
      Linvatec

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/ Daniel S. Jonas

            
	 
      	 
      	
               Daniel
      S. Jonas

            
	 
      	 
      	
              Director
      – Assistant Secretaryexv10w1

Exhibit 10.1

SANTARUS, INC.

2009 BONUS PLAN*

*Excludes those covered under the Field Sales Incentive Plans

 

 

Santarus, Inc.

2009 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 objective of the Bonus Plan is to create an
environment that focuses employees on the achievement of the 2009 corporate and individual goals.
A combination of corporate performance and individual performance will determine individual bonus
payouts.

Purpose of the Plan

The Santarus, Inc. 2009 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, other than any employee eligible to participate in the Company’s Field
Sales Incentive Plans. 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 (or
“Bonus”) under this Plan, a participant: (a) must have commenced their employment with the Company
prior to November 15, 2009 and remained continuously employed through December 31, 2009 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, 2009 or an Unacceptable performer as determined during the 2009
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.

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 the
responsible vice president or the Compensation Committee of the Board of Directors, as applicable.

The total bonus pool for the Plan will be based on achievement of the 2009 corporate goals and
individual goals that have been approved as indicated above.

Bonus Awards

The Bonus will be paid in cash and is based on achievement of the 2009 corporate goals and
achievement of individual goals. The Bonus will be calculated by using the base salary as of
December 31, 2009, 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 2009 will be as follows:

	 	 	 	 	 	 	 	 	 
	Position	 	Corporate	 	Individual
	President and CEO
	 	 	100	%	 	 	 	 
	Group I (Officers)
	 	 	100	%	 	 	 	 
	Group H (Non-Officer VPs)
	 	 	80	%	 	 	20	%
	Group G (Executive Directors)
	 	 	80	%	 	 	20	%
	Group F (Senior Directors)
	 	 	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 amounts will be determined by applying a “target bonus percentage” to the base salary of
employees in the Plan. Following are the 2009 target bonus percentages:

 

 

	 	 	 	 	 
	Position	 	Target Bonus Percentages
	President and CEO
	 	 	50	%
	Group I
	 	 	35	%
	Group H
	 	 	30	%
	Group G
	 	 	30	%
	Group F
	 	 	25	%
	Group E
	 	 	20	%
	Group D
	 	 	15	%
	Group C
	 	 	10	%
	Group B
	 	 	7.5	%
	Group A
	 	 	6	%

The base salary as of December 31, 2009 times the target bonus percentage will be used to establish
the target Bonus amount for the 2009 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
actual “corporate goal multiplier” based upon measurement of actual corporate performance versus
the pre-established corporate goals. The goal multiplier will be used with the calculated target
Bonus amount and the weighting factor to determine the actual Bonus amount for each individual
based on corporate performance.

	 	 	 	 	 	 	 
	 	 	Performance Category	 	Goal Multiplier
	1.

	 	Performance for the year exceeded the goal
or was excellent in view of prevailing conditions
	 	110% — 150%

	 
	 	 	 	 	 	 
	2.

	 	Performance met the year’s goal
or is considered achieved in view of prevailing conditions
	 	90% — 109%

	 
	 	 	 	 	 	 
	3.

	 	Performance for the year met some aspects of the goal
but not all.
	 	40% — 89%

	 
	 	 	 	 	 	 
	4.

	 	The goal was not achieved and performance 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 2009 review cycle as well as any other relevant criteria relating to the
individual’s job performance during 2009. The specific multipliers for each performance rating
level are as follows:

 

 

	 	 	 	 	 
	Performance Rating:	 	Multiplier
	Pinnacle
	 	 	120	%
	Standing Ovation
	 	 	105	%
	Great Performance
	 	 	90	%
	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 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 component of the Bonus amount.

Example:          Actual Bonus Amount Calculation

	 	 	 
	Group Level

	 	B
	Position

	 	Executive Assistant
	Base Salary as of December 31, 2009

	 	$50,000 
	Target Bonus Percentage

	 	7.5% 
	Performance Rating

	 	Standing Ovation
	Target Bonus Amount

	 	$3,750 
	 
	 	 
	Target Bonus Amount Components:
	 	 
	Target Bonus Amount based on corporate performance (20%):

	 	$750 
	Target Bonus Amount based on individual performance (80%):

	 	$3,000 
	 
	 	 
	Corporate Goal Multiplier

	 	80% 
	Individual Goal Multiplier

	 	105% 

 

 

	 	 	 	 	 
	Actual Bonus Amount Calculation:	 	 	 	 
	Corporate Bonus Amount
	 	 	$600 ($750 x 80%)	 
	Individual Bonus Amount
	 	 	$3,150 ($3,000 x 105%)	 
	 
	 	 	 
	Total Actual Cash Bonus Amount
	 	$	3,750	 

Payment of the Bonus Amounts

Annual performance reviews for Plan participants will be completed by February 28, 2010. Payments
of actual Bonus amounts will be made as soon as practical, but not later than March 15, 2010.
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.

Participants who join the Company prior to November 15, 2009 and remain continuously employed
through December 31, 2009 will be eligible to participate in the Plan and 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 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, other disciplinary status or Unacceptable performer) in order to be eligible to
receive a Bonus payment.

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 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 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.

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