Cypress Bioscience 2005 Officer Bonus Plan
Cypress Bioscience has adopted a 2005 Bonus Plan for its officers, offering annual cash bonuses of 25% to 66 2/3% of base salary, depending on position. Bonuses are based on the company's achievement of specific corporate goals related to product development, new opportunities, and shareholder value. Officers must remain employed at the time of payment to receive a bonus. Awards for 2004 and 2005 are paid upon meeting these goals, with 2005 awards paid either when all goals are met or by January 31, 2006 for goals achieved by then.
Exhibit 10.24
Cypress Bioscience
2005 Bonus Plan
On February 8, 2005, the Compensation Committee of the Board of Directors of the Company adopted a Bonus Plan for the officers of the Company. The Bonus Plan was adopted to provide an outcome-based annual cash incentive to the officers of the Company. Pursuant to the Bonus Plan, the officers of the Company are eligible to receive cash bonuses up to between 25% to 66 2/3% of base salary, depending on the applicable participant’s position at the Company, for the year ended December 31, 2004 and the year ending December 31, 2005. The bonuses are contingent upon the Company’s achievement of certain corporate goals related to clinical development of the Company’s current product, milnacipran, new product opportunities and an increase in stockholder value. The Compensation Committee established these corporate goals and the timelines for their achievement at the February 8th meeting. Individual awards will be pro rated for a partial year of service. Awards based on the applicable participants’ base salaries for the year ended December 31, 2004, if any, will be paid upon achievement of the corporate goals established by the Compensation Committee. Awards, if any, based on the applicable participants’ base salaries for the year ending December 31, 2005 will be paid upon the earlier of (1) achievement of all the corporate goals established by the Compensation Committee or (2) January 31, 2006 with respect to the corporate goals established by the Compensation Committee and achieved by that date. These awards are only payable if the participant continues to be employed on the date of payment.
