Anadys
Pharmaceuticals, Inc.
Executive Officer Bonus
Plan
The bonus plan
is intended to:
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a.
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Strengthen the connection between
individual compensation and Company success, enhancing our ability
to achieve the Corporate Goals (as determined by our Board of
Directors) and enhance shareholder value
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b.
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Encourage teamwork among all
disciplines within the Company
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c.
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Reinforce the Company’s
pay-for-performance philosophy by awarding higher bonuses to higher
performing employees
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d.
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Help ensure that the Company’s
overall cash compensation for executive officers is
competitive
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The
Compensation Committee of the Board of Directors (the
“Committee”) is responsible for reviewing and approving
the Plan and any proposed modifications to the Plan. The Committee
is also responsible for determining final bonus award amounts under
the Plan for all Executive Officers. Notwithstanding any provisions
of the Plan, the Compensation Committee retains absolute discretion
to determine whether any bonus payments will be made in a
particular year and the amount of any bonus payments. Bonus
determinations under this Plan will be made on an annual basis for
the applicable calendar year (each a “Plan
Year”).
In order to be
eligible to receive any bonus award under this Plan, a participant
(a) must have commenced his/her employment with the Company
prior to October 1 st of
the Plan Year and remained continuously employed through the end of
the Plan Year; (b) must be an employee in good standing (i.e.,
not on a performance improvement plan or an Unacceptable
Performance performer (performance category = 1)), and
(c) must be an exe