Document:

EX-10.10

Exhibit 10.10

Alimera Sciences, Inc.

2008 Employee Stock Purchase Plan

(As Adopted Effective on the IPO Date)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. PURPOSE OF THE PLAN
	 	 	1	 
	 
	 	 	 	 
	SECTION 2. ADMINISTRATION OF THE PLAN
	 	 	1	 
	(a) Committee Composition
	 	 	1	 
	(b) Committee Responsibilities
	 	 	1	 
	 
	 	 	 	 
	SECTION 3. STOCK OFFERED UNDER THE PLAN
	 	 	1	 
	(a) Authorized Shares
	 	 	1	 
	(b) Anti-Dilution Adjustments
	 	 	1	 
	(c) Reorganizations
	 	 	1	 
	 
	 	 	 	 
	SECTION 4. ENROLLMENT AND PARTICIPATION
	 	 	2	 
	(a) Offering Periods
	 	 	2	 
	(c) Enrollment at IPO
	 	 	2	 
	(c) Enrollment After IPO
	 	 	2	 
	(d) Duration of Participation
	 	 	2	 
	 
	 	 	 	 
	SECTION 5. EMPLOYEE CONTRIBUTIONS
	 	 	3	 
	(a) Commencement of Payroll Deductions
	 	 	3	 
	(b) Amount of Payroll Deductions
	 	 	3	 
	(c) Reducing Withholding Rate or Discontinuing Payroll Deductions
	 	 	3	 
	(d) Increasing Withholding Rate
	 	 	3	 
	 
	 	 	 	 
	SECTION 6. WITHDRAWAL FROM THE PLAN
	 	 	3	 
	(a) Withdrawal
	 	 	3	 
	(b) Re-Enrollment After Withdrawal
	 	 	4	 
	 
	 	 	 	 
	SECTION 7. CHANGE IN EMPLOYMENT STATUS
	 	 	4	 
	(a) Termination of Employment
	 	 	4	 
	(b) Leave of Absence
	 	 	4	 
	(c) Death
	 	 	4	 
	 
	 	 	 	 
	SECTION 8. PLAN ACCOUNTS AND PURCHASE OF SHARES
	 	 	4	 
	(a) Plan Accounts
	 	 	4	 
	(b) Purchase Price
	 	 	4	 
	(c) Number of Shares Purchased
	 	 	4	 
	(d) Available Shares Insufficient
	 	 	5	 
	(e) Issuance of Stock
	 	 	5	 
	(f) Tax Withholding
	 	 	5	 
	(g) Unused Cash Balances
	 	 	5	 
	(h) Stockholder Approval
	 	 	5	 

i 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 9. LIMITATIONS ON STOCK OWNERSHIP
	 	 	5	 
	(a) Five Percent Limit
	 	 	5	 
	(b) Dollar Limit
	 	 	6	 
	 
	 	 	 	 
	SECTION 10. RIGHTS NOT TRANSFERABLE
	 	 	6	 
	 
	 	 	 	 
	SECTION 11. NO RIGHTS AS AN EMPLOYEE
	 	 	7	 
	 
	 	 	 	 
	SECTION 12. NO RIGHTS AS A STOCKHOLDER
	 	 	7	 
	 
	 	 	 	 
	SECTION 13. SECURITIES LAW REQUIREMENTS
	 	 	7	 
	 
	 	 	 	 
	SECTION 14. AMENDMENT OR DISCONTINUANCE
	 	 	7	 
	(a) General Rule
	 	 	7	 
	(b) Impact on Purchase Price
	 	 	7	 
	 
	 	 	 	 
	SECTION 15. DEFINITIONS
	 	 	8	 
	(a) Board
	 	 	8	 
	(b) Code
	 	 	8	 
	(c) Committee
	 	 	8	 
	(d) Company
	 	 	8	 
	(e) Compensation
	 	 	8	 
	(f) Corporate Reorganization
	 	 	8	 
	(g) Eligible Employee
	 	 	8	 
	(h) Exchange Act
	 	 	9	 
	(i) Fair Market Value
	 	 	9	 
	(j) IPO
	 	 	9	 
	(k) IPO Date
	 	 	9	 
	(l) Offering Period
	 	 	9	 
	(m) Participant
	 	 	9	 
	(n) Participating Company
	 	 	9	 
	(o) Plan
	 	 	9	 
	(p) Plan Account
	 	 	9	 
	(q) Purchase Price
	 	 	9	 
	(r) Stock
	 	 	9	 
	(s) Subsidiary
	 	 	9	 

ii 

 

Alimera Sciences, Inc.

2008 Employee Stock Purchase Plan

SECTION 1. PURPOSE OF THE PLAN.

          The Board adopted the Plan effective as of the IPO Date. The purpose of the Plan is to
provide Eligible Employees with an opportunity to increase their proprietary interest in the
success of the Company by purchasing Stock from the Company on favorable terms and to pay for such
purchases through payroll deductions. The Plan is intended to qualify for favorable tax treatment
under section 423 of the Code.

SECTION 2. ADMINISTRATION OF THE PLAN.

          (a) Committee Composition. The Committee shall administer the Plan. The Committee shall
consist exclusively of one or more members of the Board, who shall be appointed by the Board.

          (b) Committee Responsibilities. The Committee shall interpret the Plan and make all other
policy decisions relating to the operation of the Plan. The Committee may adopt such rules,
guidelines and forms as it deems appropriate to implement the Plan. The Committee’s determinations
under the Plan shall be final and binding on all persons.

SECTION 3. STOCK OFFERED UNDER THE PLAN.

          (a) Authorized Shares. The number of shares of Stock available for purchase under the Plan
shall be [1.5% of the outstanding shares of the Company’s Common Stock immediately following the
IPO] (subject to adjustment pursuant to Subsection (b) below). On January 1 of each year,
commencing with January 1, 2010, the aggregate number of shares of Stock available for purchase
during the life of the Plan shall automatically increase by the number of shares necessary to cause
the number of shares then available for purchase to be restored to [1.5% of the outstanding shares
of the Company’s Common Stock immediately following the IPO] (subject to adjustment pursuant to
Subsection (b) below).

          (b) Anti-Dilution Adjustments. The aggregate number of shares of Stock offered under the
Plan, the 2,500-share limitation described in Section 8(c) and the price of shares that any
Participant has elected to purchase shall be adjusted proportionately for any increase or decrease
in the number of outstanding shares of Stock resulting from a subdivision or consolidation of
shares or the payment of a stock dividend,
any other increase or decrease in such shares effected without receipt or payment of
consideration by the Company, the distribution of the shares of a Subsidiary to the Company’s
stockholders, or a similar event.

          (c) Reorganizations. Any other provision of the Plan notwithstanding, immediately prior to
the effective time of a Corporate Reorganization, the Offering Period then

 

 

in progress shall
terminate and shares shall be purchased pursuant to Section 8, unless the Plan is continued or
assumed by the surviving corporation or its parent corporation. The Plan shall in no event be
construed to restrict in any way the Company’s right to undertake a dissolution, liquidation,
merger, consolidation or other reorganization.

SECTION 4. ENROLLMENT AND PARTICIPATION.

          (a) Offering Periods. While the Plan is in effect, two Offering Periods shall commence in
each calendar year. The Offering Periods shall consist of the six-month periods commencing on each
                     1 and                      1, except that:

          (i) The first Offering Period under the Plan shall commence on the IPO Date and
shall end on                                , 2009; and

          (ii) The Committee may determine that the first Offering Period applicable to
the Eligible Employees of a new Participating Company shall commence on any date
specified by the Committee, provided that an Offering Period shall in no event be
longer than 27 months.

          (b) Enrollment at IPO. Each individual who, on the IPO Date, qualifies as an Eligible
Employee shall automatically become a Participant on such day. Each Participant who was
automatically enrolled on the IPO Date shall file the prescribed enrollment form with the Company.
The enrollment form shall be filed at the prescribed location within
___ business days after the
Company filed a registration statement on Form S-8 for the shares of Stock offered under the Plan.
If a Participant who was automatically enrolled on the IPO Date fails to file such form in a timely
manner, then such Participant shall be deemed to have withdrawn from the Plan under Section 6(a).
A former Participant who is deemed to have withdrawn from the Plan shall not be a Participant until
he or she re-enrolls in the Plan under Subsection (c) below. Re-enrollment may be effective only
at the commencement of an Offering Period.

          (c) Enrollment After IPO. In the case of any individual who qualifies as an Eligible Employee
on the first day of any Offering Period other than the first Offering Period, he or she may elect
to become a Participant on such day by filing the prescribed enrollment form with the Company. The
enrollment form shall be filed at the prescribed location at least
___ business days prior to such
day.

          (d) Duration of Participation. Once enrolled in the Plan, a Participant shall continue to
participate in the Plan until he or she:

          (i) Reaches the end of the Offering Period in which his or her employee
contributions were discontinued under Section 5(c) or 9(b);

          (ii) Is deemed to withdraw from the Plan under Subsection (b) above;

          (iii) Withdraws from the Plan under Section 6(a); or

2

 

          (iv) Ceases to be an Eligible Employee.

A Participant whose employee contributions were discontinued automatically under Section 9(b) shall
automatically resume participation at the beginning of the earliest Offering Period ending in the
next calendar year, if he or she then is an Eligible Employee. In all other cases, a former
Participant may again become a Participant, if he or she then is an Eligible Employee, by following
the procedure described in Subsection (c) above.

SECTION 5. EMPLOYEE CONTRIBUTIONS.

          (a) Commencement of Payroll Deductions. A Participant may purchase shares of Stock under the
Plan solely by means of payroll deductions. Payroll deductions shall commence as soon as
reasonably practicable after the Company has received the prescribed enrollment form.

          (b) Amount of Payroll Deductions. An Eligible Employee shall designate on the prescribed
enrollment form the portion of his or her Compensation that he or she elects to have withheld for
the purchase of Stock. Such portion shall be a whole percentage of the Eligible Employee’s
Compensation, but not less than 1% nor more than 15%.

          (c) Reducing Withholding Rate or Discontinuing Payroll Deductions. If a Participant wishes to
reduce his or her rate of payroll withholding, such Participant may do so by filing a new
enrollment form with the Company at the prescribed location at any time. The new withholding rate
shall be effective as soon as reasonably practicable after the Company has received such form. The
new withholding rate may be 0% or any whole percentage of the Participant’s Compensation, but not
more than his or her old withholding rate. No Participant shall make
more than ___ elections under
this Subsection (c) during any Offering Period. (In addition, employee contributions may be
discontinued automatically pursuant to Section 9(b).)

          (d) Increasing Withholding Rate. If a Participant wishes to increase his or her rate of
payroll withholding, such Participant may do so by filing a new enrollment form with the Company at
the prescribed location at any time. The new withholding rate may be effective on the first day of
any Offering Period, provided that the Participant has filed the enrollment form with the Company
at the prescribed location at least ___ business days prior to the first day of such Offering
Period. The new withholding rate may be any whole percentage of the Participant’s Compensation,
but not less
than 1% nor more than 15%. An increase in a Participant’s rate of payroll withholding may not
take effect during an Offering Period.

SECTION 6. WITHDRAWAL FROM THE PLAN.

          (a) Withdrawal. A Participant may elect to withdraw from the Plan by filing the prescribed
form with the Company at the prescribed location at any time before the last day of an Offering
Period. As soon as reasonably practicable thereafter, payroll deductions shall cease and the
entire amount credited to the Participant’s Plan Account shall be refunded to him or her in cash,
without interest. No partial withdrawals shall be permitted.

3

 

          (b) Re-Enrollment After Withdrawal. A former Participant who has withdrawn from the Plan
shall not be a Participant until he or she re-enrolls in the Plan under Section 4(c).
Re-enrollment may be effective only at the commencement of an Offering Period.

SECTION 7. CHANGE IN EMPLOYMENT STATUS.

          (a) Termination of Employment. Termination of employment as an Eligible Employee for any
reason, including death, shall be treated as an automatic withdrawal from the Plan under
Section 6(a). (A transfer from one Participating Company to another shall not be treated as a
termination of employment.)

          (b) Leave of Absence. For purposes of the Plan, employment shall not be deemed to terminate
when the Participant goes on a military leave, a sick leave or another bona fide leave of absence,
if the leave was approved by the Company in writing. Employment, however, shall be deemed to
terminate 90 days after the Participant goes on a leave, unless a contract or statute guarantees
his or her right to return to work. Employment shall be deemed to terminate in any event when the
approved leave ends, unless the Participant immediately returns to work.

          (c) Death. In the event of the Participant’s death, the amount credited to his or her Plan
Account shall be paid to a beneficiary designated by him or her for this purpose on the prescribed
form or, if none, to the Participant’s estate. Such form shall be valid only if it was filed with
the Company at the prescribed location before the Participant’s death.

SECTION 8. PLAN ACCOUNTS AND PURCHASE OF SHARES.

          (a) Plan Accounts. The Company shall maintain a Plan Account on its books in the name of each
Participant. Whenever an amount is deducted from the Participant’s Compensation under the Plan,
such amount shall be credited to
the Participant’s Plan Account. Amounts credited to Plan Accounts shall not be trust funds
and may be commingled with the Company’s general assets and applied to general corporate purposes.
No interest shall be credited to Plan Accounts.

          (b) Purchase Price. The Purchase Price for each share of Stock purchased at the close of an
Offering Period shall be the lower of:

          (i) 85% of the Fair Market Value of such share on the last trading day before
the commencement of such Offering Period or, in the case of the first Offering
Period under the Plan, 85% of the price at which one share of Stock is offered to
the public in the IPO; or

          (ii) 85% of the Fair Market Value of such share on the last trading day in such
Offering Period.

          (c) Number of Shares Purchased. As of the last day of each Offering Period, each Participant
shall be deemed to have elected to purchase the number of shares of Stock calculated in accordance
with this Subsection (c), unless the Participant has previously

4

 

elected to withdraw from the Plan
in accordance with Section 6(a). The amount then in the Participant’s Plan Account shall be
divided by the Purchase Price, and the number of shares that results shall be purchased from the
Company with the funds in the Participant’s Plan Account. The foregoing notwithstanding, no
Participant shall purchase more than 2,500 shares of Stock with respect to any Offering Period nor
more than the amounts of Stock set forth in Sections 3(a) and 9(b). The Committee may determine
with respect to all Participants that any fractional share, as calculated under this
Subsection (c), shall be (i) rounded down to the next lower whole share or (ii) credited as a
fractional share.

          (d) Available Shares Insufficient. In the event that the aggregate number of shares that all
Participants elect to purchase during an Offering Period exceeds the maximum number of shares
remaining available for issuance under Section 3, then the number of shares to which each
Participant is entitled shall be determined by multiplying the number of shares available for
issuance by a fraction. The numerator of such fraction is the number of shares that such
Participant has elected to purchase, and the denominator of such fraction is the number of shares
that all Participants have elected to purchase.

          (e) Issuance of Stock. The shares of Stock purchased by a Participant under the Plan may be
registered in the name of such Participant, or jointly in the name of such Participant and his or
her spouse as joint tenants with the right of survivorship or as community property (with or
without the right of survivorship). The Committee may require that such shares must be held for
the Participant’s benefit by a broker designated by the Committee until the expiration of the
holding period described in section 423(a)(1) of the Code. (The preceding sentence shall apply
whether or not the Participant is required to pay income tax in the United States.)

          (f) Tax Withholding. To the extent required by applicable federal, state, local or foreign
law, a Participant shall make arrangements satisfactory to the Company for the satisfaction of any
withholding tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any shares of Stock under the Plan until such obligations are satisfied.

          (g) Unused Cash Balances. An amount remaining in the Participant’s Plan Account that
represents the Purchase Price for any fractional share shall be carried over in the Participant’s
Plan Account to the next Offering Period. Any amount remaining in the Participant’s Plan Account
that represents the Purchase Price for whole shares that could not be purchased by reason of
Subsection (c) above, Section 3 or Section 9(b) shall be refunded to the Participant in cash,
without interest.

          (h) Stockholder Approval. Any other provision of the Plan notwithstanding, no shares of Stock
shall be purchased under the Plan unless and until the Company’s stockholders have approved the
adoption of the Plan.

SECTION 9. LIMITATIONS ON STOCK OWNERSHIP.

          (a) Five Percent Limit. Any other provision of the Plan notwithstanding, no Participant shall
be granted a right to purchase Stock under the Plan if such Participant,

5

 

immediately after his or
her election to purchase such Stock, would own stock possessing more than 5% of the total combined
voting power or value of all classes of stock of the Company or any parent or Subsidiary of the
Company. For purposes of this Subsection (a), the following rules shall apply:

          (i) Ownership of stock shall be determined after applying the attribution rules
of section 424(d) of the Code;

          (ii) Each Participant shall be deemed to own any stock that he or she has a
right or option to purchase under this or any other plan; and

          (iii) Each Participant shall be deemed to have the right to purchase 2,500
shares of Stock under this Plan with respect to each Offering Period.

          (b) Dollar Limit. Any other provision of the Plan notwithstanding, no Participant shall
purchase Stock with a Fair Market Value in excess of the following limit:

          (i) In the case of Stock purchased during an Offering Period that commenced in
the current calendar year, the limit shall be equal to (A) $25,000 minus (B) the
Fair Market Value of the Stock that the Participant previously purchased in the
current calendar year (under this Plan and all other employee stock purchase plans
of the Company or any parent or Subsidiary of the Company).

          (ii) In the case of Stock purchased during an Offering Period that commenced in
the immediately preceding calendar year, the limit shall be equal to (A) $50,000
minus (B) the Fair Market Value of the Stock that the Participant previously
purchased (under this Plan and all other employee stock purchase plans of the
Company or any parent or Subsidiary of the Company) in the current calendar year and
in the immediately preceding calendar year.

For purposes of this Subsection (b), the Fair Market Value of Stock shall be determined in each
case as of the beginning of the Offering Period in which such Stock is purchased. Employee stock
purchase plans not described in section 423 of the Code shall be disregarded. If a Participant is
precluded by this Subsection (b) from purchasing additional Stock under the Plan, then his or her
employee contributions shall automatically be discontinued and shall automatically resume at the
beginning of the earliest Offering Period ending in the next calendar year (if he or she then is an
Eligible Employee).

SECTION 10. RIGHTS NOT TRANSFERABLE.

          The rights of any Participant under the Plan, or any Participant’s interest in any Stock or
moneys to which he or she may be entitled under the Plan, shall not be transferable by voluntary or
involuntary assignment or by operation of law, or in any other manner other than by beneficiary
designation or the laws of descent and distribution. If a Participant in any manner attempts to
transfer, assign or otherwise encumber his or her rights or interest under the Plan,

6

 

other than by
beneficiary designation or the laws of descent and distribution, then such act shall be treated as
an election by the Participant to withdraw from the Plan under Section 6(a).

SECTION 11. NO RIGHTS AS AN EMPLOYEE.

          Nothing in the Plan or in any right granted under the Plan shall confer upon the Participant
any right to continue in the employ of a Participating Company for any period of specific duration
or interfere with or otherwise restrict in any way the rights of the Participating Companies or of
the Participant, which rights are hereby expressly reserved by each, to terminate his or her
employment at any time and for any reason, with or without cause.

SECTION 12. NO RIGHTS AS A STOCKHOLDER.

          A Participant shall have no rights as a stockholder with respect to any shares of Stock that
he or she may have a right to purchase under the Plan until such shares have been purchased on the
last day of the applicable Offering Period.

SECTION 13. SECURITIES LAW REQUIREMENTS.

          Shares of Stock shall not be issued under the Plan unless the issuance and delivery of such
shares comply with (or are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state securities laws and regulations, and the regulations of any stock exchange or
other securities market on which the Company’s securities may then be traded.

SECTION 14. AMENDMENT OR DISCONTINUANCE.

          (a) General Rule. The Board shall have the right to amend, suspend or terminate the Plan at
any time and without notice. Except as provided in Section 3, any increase in the aggregate number
of shares of Stock that may be issued under the Plan shall be subject to the approval of the
Company’s stockholders. In addition, any other amendment of the Plan shall be subject to the
approval of the Company’s stockholders to the extent required by any applicable law or regulation.
The Plan shall terminate automatically 20 years after its adoption by the Board, unless (a) the
Plan is extended by the Board and (b) the extension is approved within 12 months by a vote of the
stockholders of the Company.

          (b) Impact on Purchase Price. This Subsection (b) shall apply in the event that (i) the
Company’s stockholders during an Offering Period approve an increase in the number of shares of
Stock that may be issued under Section 3 and (ii) the aggregate number of shares to be purchased at
the close of such Offering Period exceeds the number of shares that remained available under
Section 3 before such increase. In such event, the Purchase Price for each share of Stock
purchased at the close of such Offering Period shall be the lower of:

          (i) The higher of (A) 85% of the Fair Market Value of such share on the last
trading day before the commencement of the applicable Offering Period or, in the
case of the first Offering Period under the Plan, 85% of the price

7

 

at which one
share of Stock is offered to the public in the IPO or (B) 85% of the Fair Market
Value of such share on the last trading day before the date when the Company’s
stockholders approve such increase; or

          (ii) 85% of the Fair Market Value of such share on the last trading day in such
Offering Period.

SECTION 15. DEFINITIONS.

          (a) “Board” means the Board of Directors of the Company, as constituted from time to time.

          (b) “Code” means the Internal Revenue Code of 1986, as amended.

          (c) “Committee” means a committee of the Board, as described in Section 2.

          (d) “Company” means Alimera Sciences, Inc., a Delaware corporation.

          (e) “Compensation” means (i) the total compensation paid in cash to a Participant by a
Participating Company, including salaries, wages, bonuses, incentive compensation, commissions,
overtime pay and shift premiums, plus (ii) any pre-tax contributions made by the Participant under
section 401(k) or 125 of the Code. “Compensation” shall exclude all non-cash items, moving or
relocation allowances, cost-of-living equalization payments, car allowances, tuition
reimbursements, imputed income attributable to cars or life insurance, severance pay, fringe
benefits, contributions or benefits received under employee benefit plans, income attributable to
the exercise of stock options, and similar items. The Committee shall determine whether a
particular item is included in Compensation. [Consider limiting to base salaries.]

          (f) “Corporate Reorganization” means:

          (i) The consummation of a merger or consolidation of the Company with or into
another entity or any other corporate reorganization; or

          (ii) The sale, transfer or other disposition of all or substantially all of the
Company’s assets or the complete liquidation or dissolution of the Company.

          (g) “Eligible Employee” means any employee of a Participating Company who meets both of the
following requirements:

          (i) His or her customary employment is for more than five months per calendar
year and for more than 20 hours per week; and

          (ii) He or she has been an employee of a Participating Company for not less
than ___ consecutive months, or such other period not in excess of 24 months as the
Committee may determine before the beginning of the applicable Offering Period.

8

 

The foregoing notwithstanding, an individual shall not be considered an Eligible Employee if his or
her participation in the Plan is prohibited by the law of any country that has jurisdiction over
him or her or if he or she is subject to a collective bargaining agreement that does not provide
for participation in the Plan.

          (h) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (i) “Fair Market Value” means the price at which Stock was last sold in the principal U.S.
market for Stock on the applicable date
or, if the applicable date was not a trading day, on the last trading day prior to the
applicable date. If Stock is no longer traded on a public U.S. securities market, the Fair Market
Value shall be determined by the Committee in good faith on such basis as it deems appropriate.
The Committee’s determination shall be conclusive and binding on all persons.

          (j) “IPO” means the Company’s initial offering of Stock to the public.

          (k) “IPO Date” means the effective date of the registration statement filed by the Company
with the Securities and Exchange Commission for its initial offering of Stock to the public.

          (l) “Offering Period” means a period with respect to which the right to purchase Stock may be
granted under the Plan, as determined pursuant to Section 4(a).

          (m) “Participant” means an Eligible Employee who participates in the Plan, as provided in
Section 4.

          (n) “Participating Company” means (i) the Company and (ii) each present or future Subsidiary
designated by the Committee as a Participating Company.

          (o) “Plan” means this Alimera Sciences, Inc. 2008 Employee Stock Purchase Plan, as it may be
amended from time to time.

          (p) “Plan Account” means the account established for each Participant pursuant to
Section 8(a).

          (q) “Purchase Price” means the price at which Participants may purchase Stock under the Plan,
as determined pursuant to Section 8(b).

          (r) “Stock” means the Common Stock of the Company.

          (s) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

9EX-10.11

Exhibit 10.11

Alimera Sciences, Inc.

Management Cash Incentive Plan

(As Adopted Effective ___ ___, 2008)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1. BACKGROUND AND PURPOSE
	 	 	1	 
	1.1 Effective Date
	 	 	1	 
	1.2 Purpose of the Plan
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 3. SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS
	 	 	3	 
	3.1 Selection of Participants
	 	 	3	 
	3.2 Determination of Performance Goals
	 	 	3	 
	3.3 Determination of Target Awards
	 	 	3	 
	3.4 Determination of Payout Formula or Formulae
	 	 	3	 
	3.5 Determination of Actual Awards
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 4. PAYMENT OF AWARDS
	 	 	4	 
	4.1 Right to Receive Payment
	 	 	4	 
	4.2 Timing of Payment
	 	 	4	 
	4.3 Form of Payment
	 	 	4	 
	4.4 Payment in the Event of Death
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 5. ADMINISTRATION
	 	 	4	 
	5.1 Committee Authority
	 	 	4	 
	5.2 Decisions Binding
	 	 	4	 
	5.3 Delegation by the Committee
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 6. GENERAL PROVISIONS
	 	 	5	 
	6.1 Tax Withholding
	 	 	5	 
	6.2 No Effect on Employment
	 	 	5	 
	6.3 No Effect on Other Benefits
	 	 	5	 
	6.4 Successors
	 	 	5	 
	6.5 Nontransferability of Awards
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 7. DURATION, AMENDMENT AND TERMINATION
	 	 	5	 
	7.1 Duration of the Plan
	 	 	5	 
	7.2 Amendment, Suspension or Termination
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 8. LEGAL CONSTRUCTION
	 	 	5	 
	8.1 Severability
	 	 	5	 
	8.2 Requirements of Law
	 	 	6	 
	8.3 Governing Law
	 	 	6	 
	8.4 Captions
	 	 	6	 

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Alimera Sciences, Inc.

Management Cash Incentive Plan

     ARTICLE 1. BACKGROUND AND PURPOSE

          1.1 Effective Date. This Plan is effective as of ___ ___, 2008.

          1.2 Purpose of the Plan. The Plan is intended to motivate Participants to achieve excellent
short- and long-term financial performance for the Company and its business units. The Plan’s
goals are to be achieved by providing Participants with the opportunity to earn cash incentive
awards for the achievement of goals relating to the performance of the Company.

     ARTICLE 2. DEFINITIONS

          The following words and phrases shall have the following meanings, unless a different meaning
is plainly required by the context:

          2.1 “Actual Award” means, as to any Performance Period, the actual award (if any) payable to a
Participant for the Performance Period. Each Actual Award is determined by the Payout Formula for
the Performance Period, subject to the Committee’s authority under Section 3.5 to increase,
eliminate or reduce the award otherwise indicated by the Payout Formula.

          2.2 “Affiliate” means any corporation or other entity (including, without limitation,
partnerships and joint ventures) controlled by the Company.

          2.3 “Base Salary” means, as to any Performance Period, the Participant’s earned salary during
the Performance Period. Base Salary shall be calculated before both (a) deductions for taxes or
benefits and (b) deferrals of compensation pursuant to Company-sponsored plans or
Affiliate-sponsored plans.

          2.4 “Board” means the Company’s Board of Directors.

          2.5 “Committee” means the Compensation Committee of the Board.

          2.6 “Company” means Alimera Sciences, Inc., a Delaware corporation, or any successor thereto.

          2.7 “Disability” means a permanent disability, as determined for purposes of the principal
long-term disability insurance plan maintained by the Company for the benefit of the Participant.
If there is no such plan, Disability shall be determined in accordance with a policy established by
the Committee.

          2.8 “Employee” means any employee of the Company or of an Affiliate, whether such employee is
so employed when the Plan is adopted or becomes so employed after the adoption of the Plan.

 

 

          2.9 “Fiscal Quarter” means a fiscal quarter within a Fiscal Year of the Company.

          2.10 “Fiscal Year” means the fiscal year of the Company.

          2.11 “Participant” means, as to any Performance Period, an Employee who has been selected for
participation in the Plan for that Performance Period pursuant to Section 3.1.

          2.12 “Payout Formula” means, as to any Performance Period, the formula or payout matrix
established by the Committee pursuant to Section 3.4 in order to determine the Actual Awards (if
any) to be paid to Participants. The formula or matrix may differ from Participant to Participant.

          2.13 “Performance Period” means a Fiscal Year, or any longer or shorter period determined by
the Committee.

          2.14 “Performance Goals” means the goal(s) or combined goal(s) determined by the Committee to
be applicable to a Participant for a Target Award for a Performance Period. As determined by the
Committee, the Performance Goal(s) may provide for a targeted level or levels of achievement using
the performance criteria specified by the Committee. Any criteria used may be measured (a) in
absolute terms, (b) in relative terms, including (without limitation) the passage of time and/or
against other companies or metrics, (c) on a per-share basis, (d) against the performance of the
Company as a whole or against particular segments or products of the Company and/or (e) on a
pre-tax or after-tax basis. The Committee shall determine whether any element(s), for example (but
not by way of limitation) the effect of mergers or acquisitions, shall be included in or excluded
from the determination of any Performance Goal with respect to any Participants, whether or not
such determinations result in any Performance Goal being measured on a basis other than generally
accepted accounting principles.

          2.15 “Plan” means this Alimera Sciences, Inc. Management Cash Incentive Plan, as set forth in
this instrument and as hereafter amended from time to time.

          2.16 “Progress Payment” means a portion of the Target Award or Actual Award determined in
accordance with Section 3.5 that has been earned by the Participant as of the end of the Progress
Period, based on achievement of the applicable Performance Goals, and that may be paid to the
Participant during the Performance Period.

          2.17 “Progress Period” means a period shorter than and within the Performance Period for which
a Progress Payment may be made.

          2.18 “Retirement” means, with respect to any Participant, a Termination of Employment
occurring in accordance with a policy or policies established by the Committee from time to time.

          2.19 “Target Award” means the target award payable under the Plan to a Participant for the
Performance Period or Progress Period, as applicable, expressed as a

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percentage of his or her Base
Salary or a specific dollar amount, as determined by the Committee in accordance with Section 3.3.

          2.20 “Termination of Employment” means a cessation of the employee-employer relationship
between an Employee and the Company or an Affiliate for any reason, including (without limitation)
a termination by resignation, discharge, death, Disability, Retirement or the disaffiliation of an
Affiliate, but excluding a transfer from the Company to an Affiliate or between Affiliates.

     ARTICLE 3. SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

          3.1 Selection of Participants. The Committee shall select the Employees who shall be
Participants for any Performance Period. The Committee also may designate as Participants one or
more individuals (by name or position) who are expected to become Employees during a Performance
Period. Participation in the Plan is in the sole discretion of the Committee and shall be
determined Performance Period by Performance Period. Accordingly, an Employee who is a Participant
for a given Performance Period is in no way assured of being selected for participation in any
subsequent Performance Period.

          3.2 Determination of Performance Goals. The Committee shall establish the Performance Goals
for each Participant for the Performance Period. Such Performance Goals shall be set forth in
writing.

          3.3 Determination of Target Awards. The Committee shall establish a Target Award for each
Participant for each Performance Period. Such Target Award shall be set forth in writing.

          3.4 Determination of Payout Formula or Formulae. The Committee shall establish a Payout
Formula or Formulae for purposes of determining the Actual Award (if any) payable to each
Participant. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual
performance to the Performance Goals, (c) provide for the payment of a Participant’s Target Award
if the Performance Goals for the Performance Period are achieved at the predetermined level and
(d) provide for the payment of an Actual Award greater than or less than the Participant’s Target
Award, depending upon the extent to which actual performance exceeds or falls below the Performance
Goals.

          3.5 Determination of Actual Awards. After the end of each Performance Period or, to the
extent that Progress Payments will be made, after the end of each Progress Period, the Committee
shall certify the extent to which the Performance Goals applicable to each Participant for the
Performance Period or Progress Period, as applicable, were achieved or exceeded, as determined by
the Committee. The Actual Award for each Participant shall be determined by applying the Payout
Formula to the level of actual performance that has been certified by the Committee. Any contrary
provision of the Plan notwithstanding, the Committee may (a) increase, reduce or eliminate the
Actual Award that otherwise would be payable under the Payout Formula or (b) determine whether or
not any Participant will receive an Actual Award or Progress Payment in the event that the
Participant incurs a Termination of

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Employment before such Actual Award or Progress Payment is to
be paid pursuant to Section 4.2.

     ARTICLE 4. PAYMENT OF AWARDS

          4.1 Right to Receive Payment. Each Actual Award or Progress Payment that may become payable
under the Plan shall be paid solely from the general assets of the Company or the Affiliate that
employs the Participant (as the case may be), as determined by the Company. No amounts awarded or
accrued under the Plan shall be funded, set aside or otherwise segregated prior to payment. The
obligation to pay Actual Awards or Progress Payments under the Plan shall at all times be an
unfunded and unsecured obligation of the Company. Participants shall have the status of general
creditors of the Company or the Affiliate that employs the Participant.

          4.2 Timing of Payment. Subject to Section 3.5, payment of each Actual Award or Progress
Payment shall be made as soon as administratively practicable, but in no event later than two and
one-half months after the end of the applicable Performance Period or Progress Period, as the case
may be.

          4.3 Form of Payment. Each Actual Award or Progress Payment shall be paid in cash (or its
equivalent) in a single lump sum.

          4.4 Payment in the Event of Death. If a Participant dies before receiving an Actual Award or
Progress Payment (determined under Section 3.5) that was scheduled to be paid before his or her
death for a prior Performance Period or Progress Period, then the Actual Award or Progress Payment
shall be paid to the Participant’s designated beneficiary or, if no beneficiary has been
designated, to the administrator or representative of his or her estate. Any beneficiary
designation or revocation of a prior designation shall be effective only if it is in writing,
signed by the Participant and received by the Company prior to the Participant’s death.

     ARTICLE 5. ADMINISTRATION

          5.1 Committee Authority. The Plan shall be administered by the Committee, subject to
Section 5.3. The Committee shall have all powers and discretion necessary or appropriate to
administer the Plan and to control its operation, including (without limitation) the power to
(a) determine which Employees shall be granted awards, (b) prescribe the terms and conditions of
the awards, (c) interpret the Plan, (d) adopt such procedures and sub-plans as are necessary or
appropriate to permit participation in the Plan by Employees who are foreign nationals or employed
outside of the United States, (e) adopt rules for the administration, interpretation and
application of the Plan and (f) interpret, amend or revoke any such rules.

          5.2 Decisions Binding. All determinations and decisions made by the Committee, the Board or
any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive and
binding on all persons and shall be given the maximum deference permitted by law.

          5.3 Delegation by the Committee. The Committee, on such terms and conditions as it may
provide, may delegate all or part of its authority and powers under the Plan to one or more
directors and/or employees of the Company.

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     ARTICLE 6. GENERAL PROVISIONS

          6.1 Tax Withholding. The Company or an Affiliate, as applicable, shall withhold all required
taxes from an Actual Award or Progress Payment, including any federal, state, local or other taxes.

          6.2 No Effect on Employment. Nothing in the Plan shall interfere with or limit in any way the
right of the Company or an Affiliate, as applicable, to terminate any Participant’s employment or
service at any time, with or without cause. Employment with the Company and its Affiliates is on
an at-will basis only. The Company expressly reserves the right, which may be exercised at any
time and without regard to when during or after a Performance Period such exercise occurs, to
terminate any individual’s employment with or without cause, and to treat him or her without regard
to the effect that such treatment might have upon him or her as a Participant.

          6.3 No Effect on Other Benefits. Except as expressly set forth in a Participant’s employment
agreement with the Company, any Actual Awards or Progress Payments under the Plan shall not be
considered for the purpose of calculating any other benefits to which such Participant may be
entitled, including (a) any termination, severance, redundancy or end-of-service payments,
(b) other bonuses or
long-service awards, (c) overtime premiums, (d) pension or retirement benefits or (e) future
Base Pay or any other payment to be made by the Company to such Participant.

          6.4 Successors. All obligations of the Company and any Affiliate under the Plan, with respect
to awards granted hereunder, shall be binding on any successor to the Company and/or such
Affiliate, whether the existence of such successor is the result of a merger, consolidation, direct
or indirect purchase of all or substantially all of the business or assets of the Company or such
Affiliate, or any similar transaction.

          6.5 Nontransferability of Awards. No award granted under the Plan shall be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated, other than by will, by the laws of
descent and distribution or to the limited extent provided in Section 4.4. All rights with respect
to an award granted to a Participant shall be available during his or her lifetime only to the
Participant.

     ARTICLE 7. DURATION, AMENDMENT AND TERMINATION

          7.1 Duration of the Plan. The Plan shall commence on the date specified herein and shall
remain in effect thereafter until terminated pursuant to Section 7.2.

          7.2 Amendment, Suspension or Termination. The Board or the Committee may amend, suspend or
terminate the Plan, or any part thereof, at any time and for any reason. No award may be granted
during any period of suspension or after termination of the Plan.

     ARTICLE 8. LEGAL CONSTRUCTION

          8.1 Severability. In the event any provision of the Plan shall be held illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining parts of the

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Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

          8.2 Requirements of Law. The granting of awards under the Plan shall be subject to all
applicable laws, rules and regulations, and to such approvals by any governmental agencies or
national securities markets as may be required.

          8.3 Governing Law. The Plan and all awards shall be construed in accordance with and governed
by the laws of the State of California, without regard to their conflict-of-law provisions.

          8.4 Captions. Captions are provided herein for convenience only and shall not serve as a
basis for interpretation or construction of the Plan.

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