Document:

exv10w50

 

EXHIBIT 10.50

			
	 	 	 
	Robert Hamm 

	 	October 15, 2007

Dear Bob:

I am pleased to confirm your promotion to EVP, Pharmaceutical Operations & Technology. This
position will report to James Mullen, CEO & President, and will be based at our Cambridge, MA
facility.

The specific terms of your promotion are as follows.

Promotion Date: The effective date of your promotion is October 12, 2007.

Base Salary: Effective with the date of promotion, your biweekly salary will be $16,769.24, which
is equivalent to an annual salary of $436,000.24.

Short-term-incentive: Your target bonus level under Biogen Idec’s Annual Bonus Plan will be 50% of
your annualized base salary.

Long-term Incentive: You will be granted 2,700 restricted stock units (RSUs). Assuming your
continued employment, these RSUs will vest and convert into shares of Biogen Idec common stock at
the rate of one-third per year over three years, beginning on the first anniversary of your grant
date. The grant date will be the first trading day of the month following your effective date of
promotion.

You will also be granted an option to purchase 6,900 shares of the common stock of Biogen Idec at
an exercise price equal to the closing price of Biogen Idec stock as reported on the NASDAQ
National Market on the grant date. The grant date will be the first trading day of the month
following your effective date of promotion. The option will have a ten-year term and, assuming
your continued employment, will vest equally over a four-year period at the rate of 25% per year,
starting on the first anniversary of your grant date.

The actual terms of your RSU and stock option grants will be communicated to you in a separate
Notice of Grant. You are considered a “designated employee”, as defined in the 2005 Omnibus Equity
Plan. You are encouraged to carefully review the 2005 Omnibus Equity Plan Document for information
on the implications of being a designated employee under the Plan, as well as any applicable terms
and conditions of your grants under this program. This document is available on iNet in the Human
Resources Business Area. If you do not have access to the iNet or would prefer to have a copy
mailed to you, please call the HR Helpdesk at 866-824-8444 (toll free), 617-679-3400 or ext. 83400
(internal).

Stock Trading Plan: As an Executive Vice President of the Company, you are required to enter into a
10b5-1 stock trading plan. A 10b5-1 plan enables you to buy and sell Biogen Idec securities under
pre-specified conditions (e.g., when the price of Biogen Idec stock reaches a certain price), and
allows you to sell outside of quarterly “trading windows” whether or not you are in possession of
material, nonpublic information. More information on 10b5-1 trading plans can be found on iNet.

Biogen
Idec 14 Cambridge Center Cambridge, MA 02142 Phone 617-679-2000 www.biogenidec.com

 

 

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Additional Executive Benefits

Vacation: You are entitled to 25 vacation days per year, accrued on a per pay period basis.

Supplemental Savings Plan: You are entitled to participate in Biogen Idec’s Supplemental Savings
Plan (SSP). This plan allows you to make pre-tax deferrals of up to 80% of your base salary and
up to 100% of your Annual Bonus payment. Your contributions to this plan may be limited by your
contributions towards other plans (e.g., 401k, ESPP, medical, etc.). If you were not previously
eligible for the SSP, enrollment information will be sent to you shortly.

Life Insurance: You will be provided life insurance coverage equal to three times your annual
base salary, subject to meeting the medical standards stated in the group term life insurance
policy for U.S. employees. Biogen Idec pays the premium for this insurance. The IRS requires
employers to impute the value of company-paid life insurance for coverage over $50,000. This
imputed income will be displayed on your pay stub.

Severance: Under certain circumstances, you will be entitled to receive severance benefits.
Your severance benefits are explained in detail in the attached executive severance document.

IRC 280G Excise Taxes: In the event of a Change in Control (as defined in Section 280G of the
Internal Revenue Code), compensation paid to you may trigger an excise tax (in addition to
ordinary income taxes). Biogen Idec will reimburse you for any excise taxes you incur under IRC
280G as a result of a Change in Control. This includes gains from the exercise of stock options
and vesting of restricted stock and/or units, as well as the reimbursement for such penalties.
In addition, Biogen Idec will reimburse you for income taxes imposed on the excise taxes.

Tax Preparation, Financial and Estate Planning: You are entitled to reimbursement of up to
$7,500 per calendar year (January 1 — December 31) for expenses incurred due to tax preparation,
financial and/or estate planning services, as well as the purchase of tax preparation and/or
financial planning software. To receive reimbursement, copies of receipts/invoices from
eligible service providers should be submitted through the Company’s third party reimbursement
service provider. Such reimbursements are considered taxable income.

Air Travel Upgrade: You are entitled to fly first class on all U.S. transcontinental flights
(e.g., Boston to San Diego). Overseas flights and other domestic flights are subject to the
same policy as all other employees.

 

 

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Once you have accepted this offer, please sign and return a copy of this letter to me. I am
confident you will continue to contribute to Biogen Idec’s success and wish you the best of luck in
your new position.

	 	 	 	 	 
	Sincerely,

 	 	 
	/s/ James C. Mullen
 	 	 
	James Mullen 	 	 
	CEO & President 	 	 
	 

cc: Craig Schneier

	 	 	 
	/s/ Robert Hamm

	 	15 Oct 2007
	Robert Hamm

	 	Date

Your employment at Biogen Idec continues to be employment at-will. This means that just as you are
free to leave your employment at any time, with or without cause or notice, Biogen Idec also has
the same right to terminate your employment at any time, with or without cause or notice.

 

 

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Executive Severance — Executive Vice President

As an Executive Vice President, you are entitled to severance benefits in the event your employment
is terminated by Biogen Idec other than For Cause or for reason of death or Disability (as these
terms are defined in the Biogen Idec 2005 Omnibus Equity Plan).

Benefits

Your severance benefits are comprised of (i) a lump sum payment (as calculated below), (ii) upon
completion of the appropriate forms, continuation of your participation in Biogen Idec’s group
medical and dental insurance plans, to the same extent permitted by COBRA and to the same extent
such insurance is then provided to regular employees of Biogen Idec, including payment by you of a
portion of the insurance premiums (i.e., the “Insurance Benefit”) and (iii) the reasonable cost of
up to nine months of executive-level outplacement services from a recognized provider of such
services, at the expense of Biogen Idec (upon receipt of appropriate documentation).

The lump sum severance payment is calculated as follows:

[9 + (A x 2.5)] x B = lump sum payment

	 	where:	 	 A is the number of full years of service with Biogen Idec (but A x 2.5 may not exceed 12), and
B is the monthly equivalent of your target annual cash compensation at the time of your termination (i.e., one-twelfth
of the sum of your then annual base salary plus target annual bonus).

The following are examples of how the lump sum payment and Insurance Benefit Period are determined:

	 	 	 	If your employment with Biogen Idec is terminated after 10 months of employment, you will
receive a lump sum payment equal to nine months of your target annual cash compensation and
continue to participate in Biogen Idec’s group medical and dental plans for nine months, unless
you become eligible to participate in another employer’s medical and dental plans before that
date. COBRA continuation of medical and dental benefits is available, at your own expense, for
an additional nine months after this nine-month Insurance Benefit Period.
	 
	 	 	 	If your employment with Biogen Idec is terminated after five years, you will receive a lump sum
payment equal to 21 months [9+12] of your target annual cash compensation and continue to
participate in Biogen Idec’s group medical and dental plans for 21 months, unless you become
eligible to participate in another employer’s medical and dental plans before that date.

If at any time within two years following a Corporate Transaction or Corporate Change in Control
(as these terms are defined in Biogen Idec’s 2005 Omnibus Equity Plan) your employment is
terminated by Biogen Idec or the succeeding corporate entity, other than For Cause or for reason of
death or Disability (as these terms are defined in Biogen Idec’s 2005 Omnibus Equity Plan), or you
experience an Involuntary Employment Action (defined below) and as a result you terminate your
employment with Biogen Idec or the succeeding corporate entity, then, regardless of the length of
your service with Biogen Idec and the succeeding corporate entity, and in lieu of the formula set
forth above, you will receive a lump sum payment equivalent to 24 months of your target annual cash
compensation at the time of your termination or at the time of a Corporate Transaction or Corporate
Change in Control, whichever is higher. In addition, you will be entitled to continue
participating in Biogen Idec’s group medical and dental plans for 24 months, unless you become
eligible to participate in another employer’s medical and dental plans before that date. The term
“Involuntary Employment Action” shall have the definition set forth in Biogen Idec’s 2005 Omnibus
Equity Plan, provided, however, that the term “Corporate Transaction” used

 

 

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in that definition shall be deemed to mean either a Corporate Transaction or Change in Control, as
the case may be, and provided also that prior to your termination of employment you have notified
the Chief Legal Counsel or the Head of Human Resources of Biogen Idec in writing of the basis for
your Involuntary Employment Action, you have given such notice within one year of the circumstances
giving rise to your Involuntary Employment Action and Biogen Idec does not cure such circumstances
within 30 days after the date of your notice.

Delivery of Benefits

Payment and provision of all the benefits provided under this arrangement are conditioned on your
execution and delivery of all necessary forms and an irrevocable general release in favor of Biogen
Idec, in form and substance reasonably acceptable to Biogen Idec, with respect to any and all
claims relating to your employment and the termination of your employment with Biogen Idec. If you
retire or voluntarily terminate your employment with Biogen Idec, or Biogen Idec terminates your
employment For Cause or for reason of death or Disability (as these terms are defined in Biogen
Idec’s 2005 Omnibus Equity Plan), or you do not provide the requisite general release, you will not
be eligible to receive the severance benefits described above.

If all other conditions of this arrangement are met, a lump sum payment (less applicable taxes and
other mandatory deductions as required by law) will be paid to you following the termination of
your employment, no later than the first to occur of: a) 90 days following your termination of
your employment with Biogen Idec and b) March 15 of the year following the calendar year in which
termination of employment occurs, unless you are a “specified employee” as defined in Section 409A
of the Internal Revenue Code of 1986, as amended (i.e., “Section 409A”). (If all preconditions to
payment, including the delivery of an irrevocable general release, are not satisfied prior to the
earlier of these two dates, payment to you may be delayed and you may incur additional tax
liabilities under Section 409A.) If you are a “specified employee”, to the extent required by
Section 409A, payment will not be made to you before the date which is six months after you
“separate from service” (or, if earlier, your date of death or Disability) unless the payment
qualifies as excepted welfare benefits under Section 409A, does not constitute a “deferral of
compensation” under Section 409A or is otherwise not subject to the requirements of Section 409A.

The Insurance Benefit will continue until the earlier of (i) the date you become eligible to
participate in the medical and dental insurance plan of another employer or (ii) the date that is
[9 + (A x 2.5)] months, but not more than 21 months (or 24 months in the case of a Corporate
Transaction or Change in Control), following the termination of your employment with Biogen Idec
(the “Insurance Benefit Period”). You will have the right, at your own expense, to continue your
participation in Biogen Idec’s group medical and dental insurance plans at the expiration of the
Insurance Benefit Period, pursuant to the provisions of COBRA, but only for an 18-month period that
will be deemed to have commenced at the start of your severance.

General 

Biogen Idec shall administer and shall have the discretionary authority to adopt rules for the
management and operation of this arrangement, to interpret the provisions of the arrangement and to
construe the terms of the severance arrangement in its sole discretion. The decision of Biogen
Idec, or the duly authorized delegate, is final and conclusive for all purposes.

The severance arrangement may be amended, modified, suspended or terminated by Biogen Idec at any
time; provided that the severance arrangement may not be amended or terminated without your written
consent for a period of two years following a Corporate Transaction or a Change in Control.

 

 

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This arrangement is unfunded. This arrangement will benefit and bind Biogen Idec and its
successors and permitted assigns and you and your heirs, executors and legal representatives. You
do not have any right to transfer or assign your benefits under this arrangement.

This arrangement shall be construed, administered and enforced according to the laws of the State
of Delaware, except to the extent that such laws are preempted by the federal laws of the United
States of America.exv10w51

 

EXHIBIT 10.51

December 17, 2007

By Hand Delivery

Dr. Burt Adelman

Dear Burt:

     You
have advised us that you plan to retire from your employment with Biogen Idec (the
“Company”) as of December 31, 2007 (the “Retirement Date”). In light of your knowledge and
experience, however, the Company wishes to retain your services as a consultant for a period
of time following your retirement.

     The purpose of this letter, therefore, is to confirm the agreement between you and the
Company concerning your consulting arrangements (the “Agreement”), as follows:

     1. Consulting Services.

          (a) Consulting Period. The Company hereby engages your services as a
consultant to the Company for the period commencing on the Retirement Date and expiring
six (6) months following the Retirement Date (the “Consulting Period”).

          (b) Services. During the Consulting Period, you shall make yourself available to
the Company to provide such advice and other consulting services, reasonably related to your
skills and experience, as the Company may from time to time request, upon reasonable notice to
you (the “Services”). You agree to coordinate with the Company in respect to any periods of
your unavailability due to vacations or other reasonable absences, in order that you may
continue to meet the Company’s needs throughout the Consulting Period.

          (c) Consulting Fee. As full compensation for all Services rendered by you during
the Consulting Period the Company shall pay you a consulting fee of Four Hundred Thousand
Dollars ($400,000) (the “Consulting Fee”). The Consulting Fee shall be payable in one lump sum
on January 4, 2007.

          (d) No Eligibility for Benefits, Plans or Paid Time Off. As a result of your
retirement, you are entitled to regular retiree health benefits provided by the Company and you and
your qualified beneficiaries may participate at your cost in the Company’s group health plan
through the federal law commonly known as “COBRA”. You are not otherwise eligible to participate
in, or receive benefits under, any of the Company’s employee benefit plans, programs or
arrangements or to holidays, vacation or other paid time off during the Consulting Period.

          (e) Business Expenses. The Company will reimburse you for reasonable and
necessary business expenses incurred by you in providing Services to the Company under this
Agreement during the Consulting Period; provided that those expenses are authorized in
advance, and provided further that you submit, on a timely basis, such documentation and

Biogen
Idec 14 Cambridge Center Cambridge, MA 02142 Phone 617 679 2000
www.biogenidec.com

 

 

substantiation of those expenses as the Company may reasonably require from time to time.

          (f) Relationship of the Parties. You and the Company acknowledge and agree
that you are an independent contractor in the performance of Services under this
Agreement, and that nothing in this Agreement creates an employment relationship,
partnership or joint venture between you and the Company.

          (g) Tax Matters. Because you are an independent contractor, the Consulting Fee
will not be subject to withholding for Social Security, unemployment, Medicare, federal, state
or local income or other taxes. You shall be solely responsible for the withholding and
payment of any and all such taxes and other legally-required payments on any sums received
from the Company under this Agreement. You agree to indemnify and hold harmless the Company
and its Affiliates, and their respective shareholders, directors, officers, employees, agents,
successors and assigns, from any and all losses, costs and expenses, including without
limitation attorneys’ fees, and any other liabilities incurred as a result of your failure to
meet your tax obligations.

          (h) Intellectual Property and Other Property. The Company shall own and be free
to use all intellectual property created, invented or conceived of by you in the performance of
Services under this Agreement (“Intellectual Property”). You agree to assign to the Company all
such Intellectual Property, and to assist the Company in applying for patents and other protection
with respect to any such Intellectual Property. You agree to disclose all information material to
patentability of any invention within the Intellectual Property to the Company for purposes of
disclosure to the U.S. Patent and Trademark Office.

     You acknowledge that specially prepared or commissioned work shall be a “work for hire by an
independent contractor” as defined under the United States Copyright laws (17 U.S.C. Sections 101
et seq.). and in the event any work prepared by you as part of the Services is determined not to be
a work for hire by an independent contractor, you hereby irrevocably assign all copyrights in the
work (including the right to prepare derivative works) to the Company.

          (i) Confidentiality. During the Consulting Period, you will have access to
confidential and proprietary information and you may receive or create ideas, know-how, trade
secrets, information, data, processes, substances and the like of the Company (the “Information”).
You agree that you not reveal or disclose the Information to any third party or use any Information
for any purpose other than the performance of the Services without first obtaining the written
consent of the Company.

     The obligations of confidential treatment under this paragraph do not apply to any
information, which:

	 	(A)	 	was known to you prior to receipt thereof from the Company other
than as a result your prior employment by the Company;
	 
	 	(B)	 	was or becomes a matter of public information or publicly
available through no act or failure to act on your part; or
	 
	 	(C)	 	is acquired by you from a third party entitled to
freely disclose such information to you.

-2-

 

     2. Cooperation. You agree to cooperate with the Company’s reasonable requests during
the Consulting Period and thereafter with respect to all matters arising during or related to your
employment or the Services, including but not limited to all matters in connection with any
governmental investigation, litigation or regulatory or other proceeding which may have arisen or
which may arise following the signing of this Agreement.

     3. Assignment. Neither you nor the Company may make any assignment of this Agreement
or any interest herein, by operation of law or otherwise, without the prior written consent of the
other. This Agreement shall inure to the benefit of and be binding upon you and the Company,
together with your/its respective successors, executors, administrators, heirs and permitted
assigns.

     4. Miscellaneous. This Agreement constitutes the entire agreement between you and the
Company, and supersedes all prior communications, agreements and understandings, whether written or
oral, with respect to your employment, other than the Employee Proprietary Information and
Inventions and Dispute Resolution Agreement between you and Biogen
Idec dated March 8, 2004 and
your obligations with respect to the securities of the Company. This Agreement may not be modified
or amended, and no breach shall be deemed to be waived, unless agreed to in writing by you and an
authorized representative of the Company. This is a Massachusetts contract, and shall be governed
and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to
the conflict of laws principles thereof.

     If the terms of this Agreement are acceptable to you, please sign, date and return it to
me. The enclosed counterpart of this letter, which you should also sign and date, is for your
records.

	 	 	 	 	 
	 	Sincerely,

BIOGEN IDEC, INC.

 	 
	 	By:  	/s/ Craig Schneier
 	 
	 	 	Craig Schneier 	 
	 	 	Executive Vice President, Human Resources, Public Affairs and Communications 	 
	 

	 	 	 	 	 
	Accepted and agreed:

 	 	 
	Signature:  	/s/ Burt Adelman
 	 	 
	Date: 	12/18/2007 	 	 
	 	 	 	 
	 

     

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