Document:

exv10w7

Exhibit 10.7

[FORM OF EMPLOYMENT AGREEMENT FOR 

HILARY RAPKIN, JAMIE MORIN AND ROBERT CORNETT]

EMPLOYMENT AGREEMENT

          This
Employment Agreement is made and entered intoamended and restated effective as of theis 28th day of October,
2005 (“Effective Date”) between Wright Express Corporation (“WEX”), a Delaware corporation
headquartered in South Portland, Maine and [                                    
    ] (the “Executive”).

          WHEREAS, WEX desires to employ the Executive as its [                                    
    ], and the Executive desires
to serve WEX in such capacity.

          NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

SECTION I 

EMPLOYMENT

          WEX agrees to employ the Executive and the Executive agrees to be employed by WEX for the
Period of Employment as provided in Section III below and upon the terms and conditions provided in
this Agreement.

SECTION II

POSITION AND RESPONSIBILITIES

          During the Period of Employment, the Executive will serve as [                                    
    ] of WEX and,
subject to the direction of the Chief Executive Officer of WEX (“CEO”), will perform such duties
and exercise such supervision with regard to the business of WEX as are associated with such
position, as well as such additional duties, reasonably associated with said position, as may be
prescribed from time to time by the CEO.

          The Executive will, during the Period of Employment, devote substantially all of [his/her]
time and attention during normal business hours to the performance of services for WEX. The
Executive will maintain a primary office and conduct [his/her] business in South Portland, Maine,
except for normal and reasonable business travel in connection with [his/her] duties hereunder.
Nothing contained in this Agreement will prevent or be construed to prevent the Executive from
devoting a reasonable amount of time to serving on civic and charitable boards and conducting
[his/her] personal affairs.

SECTION III

PERIOD OF EMPLOYMENT

          The period of the Executive’s employment under this Agreement (the “Period of Employment”)
will begin on the Effective Date and end on the second anniversary of such date, subject to earlier
termination as provided in this Agreement; provided, however, that the Period of
Employment will be automatically extended for an additional one year period on October 28, 2006,
and on each anniversary of such date thereafter, unless written notice of intent not to extend or
to reopen negotiations is provided by either party hereto to the other party hereto at least 30
days prior to such date or any such anniversary.

 

 

SECTION IV

COMPENSATION AND BENEFITS

          Compensation. For all services rendered by the Executive pursuant to this Agreement
during the Period of Employment, including services as an executive or officer of WEX or any
subsidiary or affiliate of thereof, the Executive will be compensated as follows:

     i. Base Salary.

          WEX will pay the Executive a base salary of not less than $[                                    
    ]
per year (“Base Salary”). From time to time, the Executive may be eligible to receive annual
increases as WEX deems appropriate, in accordance with WEX’s customary policies and procedures
regarding the salaries of senior officers, including pursuant to annual compensation reviews to
occur no less than once per year. Base Salary will be payable according to the customary payroll
practices of WEX, but in no event less frequently than semi-monthly.

     ii. Annual Incentive Awards.

          The Executive will be eligible for discretionary annual incentive compensation awards;
provided, that the Executive will be eligible to receive an Incentive Compensation Award in
respect of each fiscal year of WEX during the Period of Employment based upon a target bonus equal
to no less than [                                    
    ]% of [his/her] earned Base Salary in fiscal year 2005 and
[                                    
    ]% in fiscal year 2006; provided, however, that such bonus will be subject to
the attainment by WEX of applicable performance targets reasonably established and certified by or
at the direction of the Board (as hereinafter defined) or the Compensation Committee of the Board
(the “Committee”). For purposes of this Agreement, the term “Incentive Compensation Award” means
the annual bonus paid pursuant to the Wright Express Corporation Short-Term Incentive Plan (STIP),
as the Plan may be amended from time to time. The term “target” means the value of the STIP bonus
payable in the event the Executive achieves the annual target goals established pursuant to the
Plan.

     iii. Long Term Incentive Awards

          At such times as the Board or the Committee determines to conduct annual or periodic grants of
long term incentive awards to employees and officers of WEX, the Executive will be eligible to
receive such grants, subject to the sole and complete discretion of the Board or the Committee, and
upon such terms and conditions as determined by the Board or the Committee, but with due
consideration given to the Executive’s position with WEX and the Executive’s historical performance
and anticipated future contributions to WEX.

     iv. Additional Benefits

          The Executive will be entitled to participate in all other compensation and employee benefit
plans or programs offered generally to employees of WEX, and will receive all perquisites offered
to senior executive officers of WEX in positions comparable to the Executive’s position with WEX,
in either case pursuant to any plan or program now in effect, or later
established by WEX. The Executive will participate to the extent permissible under the terms
and provisions of such plans or programs, and in accordance with the terms of such plans and
programs.

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SECTION V

BUSINESS EXPENSES

          WEX will reimburse the Executive for all reasonable travel and other expenses incurred by the
Executive in connection with the performance of [his/her] duties and obligations under this
Agreement. The Executive will comply with such limitations and reporting requirements with respect
to expenses as may be established by WEX from time to time and will promptly provide all
appropriate and requested documentation in connection with such expenses.

SECTION VI 

DISABILITY

          If the Executive becomes Disabled, as defined below, during the Period of Employment, the
Period of Employment may be terminated at the option of the Executive upon notice of resignation to
WEX, or at the option of WEX upon 30 days’ advance notice of termination to the Executive. WEX’s
obligation to make payments to the Executive under this Agreement will cease as of such date of
termination, except for Base Salary and Incentive Compensation Awards earned but unpaid as of the
date of such termination, and except for payment of a pro rata portion of [his/her] Incentive
Compensation Award in respect of the year in which such Disability occurs (paid at target level).
For purposes of this Agreement, “Disabled” means the first to occur of either (i) the Executive’s
inability to perform [his/her] duties hereunder as a result of serious physical or mental illness
or injury for a period of no less than 180 days, together with a determination by an independent
medical authority after in person examination of the Executive and review of any relevant medical
records that the Executive is currently unable to perform such duties, or (ii) a determination by
the insurance carrier or third party administrator that the Executive is “Disabled” within the
meaning of the WEX Long Term Disability Plan then in effect. Such independent medical authority
shall be mutually and reasonably agreed upon by WEX and the Executive and such opinion shall be
binding on WEX and the Executive. Nothing contained herein is intended to limit any of the
Executive’s vested benefits under any WEX benefit plan or program.

SECTION VII

DEATH

          In the event of the death of the Executive during the Period of Employment, the Period of
Employment will end and WEX’s obligation to make payments under this Agreement will cease as of the
date of death, except for Base Salary and Incentive Compensation Awards earned but unpaid through
the date of death, and except for payment of a pro rata portion of [his/her] Incentive Compensation
Award in respect of the year in which [his/her] death occurs (paid at target level), which will be
paid to the Executive’s surviving spouse, estate or personal representative, as applicable. Nothing
contained herein is intended to limit any of the Executive’s vested benefits under any WEX benefit
plan or program.

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SECTION VIII

EFFECT OF TERMINATION OF EMPLOYMENT

          A.
Without Cause Termination and Constructive Discharge Outside of a Change in
Control. If the Executive’s employment terminates due to either a Without Cause Termination or
a Constructive Discharge, as defined below, and the Executive is not entitled to receive payment
pursuant to Section VIII(B) hereof, WEX will pay the Executive (or [his/her] surviving spouse,
estate or personal representative, as applicable) upon such Without Cause Termination or
Constructive Discharge (i) a cash payment equal to the Executive’s then current Base Salary,
payable, at the Company’s option, in either one lump sum or in equal installments not less frequently
than once per month over a twelve month period, or a combination of lump sum and equal installments
not less frequently than once per month over a twelve month period,, and (ii) any and all Base
Salary and Incentive Compensation Awards earned but unpaid through the date of such termination and
any legitimate unreimbursed business expenses. Nothing contained herein is intended to limit any
of the Executive’s vested benefits under any WEX benefit plan or program, including but not limited
to rights with respect to stock options, restricted shares or long term incentive awards.

          B.
Without Cause Termination and Constructive Discharge In Case of Change in Control. 
If the Executive’s employment terminates due to either a Without Cause Termination or a
Constructive Discharge, in either case within the time period beginning 90 days before the Change
in Control and ending 365 days after the Change in Control, then WEX will pay the Executive (or
[his/her] surviving spouse, estate or personal representative, as applicable) (i) a cash payment
equal to the sum of the Executive’s then current Base Salary plus [his/her] then current target
Incentive Compensation Award, multiplied by 200%, payable, at the Company’s option, in either one
lump sum or in equal
installments not less frequently than once per month over a twelve month period, or
a combination of lump sum and equal installments not less frequently than once per month over a
twelve month period, and (ii) any and all Base Salary and Incentive Compensation Awards earned but
unpaid through the date of such termination and any legitimate unreimbursed business expenses. In
addition, upon such termination, those of the Executive’s outstanding and unvested WEX stock
options and unvested WEX restricted stock units held by the Executive as of the date of termination
will immediately become vested. In addition, WEX shall pay to the Executive in a lump sum an
amount equal to the present value of WEX’s share of the cost of medical and dental insurance
premiums for a twenty-four (24) month period. Nothing contained herein is intended to limit any of
the Executive’s vested benefits under any WEX benefit plan or program, including but not limited to
rights with respect to stock options, restricted shares or long term incentive awards. Payment of
cash and benefits and accelerated vesting under this Section VIII(B) shall be in lieu of and not in
addition to anything that might be owed to Executive under Section VIII(A).

          C.
Termination for Cause; Resignation. If the Executive’s employment terminates due
to a Termination for Cause or a Resignation, as defined below, Base Salary and any Incentive
Compensation Awards earned but unpaid as of the date of such termination will be paid to the
Executive in a lump sum. Except as provided in this paragraph, WEX will have no further obligations
to the Executive hereunder. Nothing contained herein is intended to limit any of the Executive’s
vested benefits under any WEX benefit plan or program.

          D. For purposes of this Agreement, the following terms have the
following meanings:

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     i. “Termination for Cause” means termination because of (i) the Executive’s willful failure
to substantially perform [his/her] duties as an employee of WEX or any subsidiary thereof (other
than any such failure resulting from incapacity due to physical or mental illness), (ii) any act
of fraud, embezzlement, gross misconduct, dishonesty or similar conduct, in each case against WEX
or any subsidiary thereof, (iii) the Executive’s conviction of or indictment for a felony or any
crime involving moral turpitude, (iv) the Executive’s gross negligence in the performance of
[his/her] duties, (v) the Executive’s knowing or negligent making of a false certification to WEX
pertaining to its financial statements, or (vi) the Executive’s knowing or grossly negligent
violation of any provision of Section IX of this Agreement or any knowing violation of WEX’s Code
of Business Conduct and Ethics. WEX will provide the Executive a written notice that describes
the circumstances being relied on for the termination with respect to this paragraph. In the
event that WEX terminates the Executive’s employment without Cause but the Company later
discovers evidence not known at the time of termination that would have justified a Termination
for Cause under this paragraph, the Company may terminate the payment of all amounts to the
Executive pursuant to Section VIII(A) or (B), excluding any and all Base Salary and Incentive
Compensation Awards earned but unpaid through the date of such termination and any legitimate
unreimbursed business expenses.

     ii. “Constructive Discharge” means the Executive resigns in response to: (i) any material
failure of WEX to fulfill its obligations under this Agreement (including without limitation any
reduction of the Base Salary or any reduction in the target bonus percentage amount, as the same
may be increased during the Period of Employment), (ii) a material and adverse change to the
Executive’s titles, positions, duties and responsibilities with or to WEX, (iii) the relocation of
the Executive’s primary business office to a location more than 50 miles from Portland, Maine or
(iv) WEX’s failure to cause this Agreement to be assumed by any successor to the business of WEX.
The Executive will provide WEX a written notice that describes the circumstances being relied on
for the termination with respect to this paragraph within sixty (60) days after the event giving
rise to the notice. WEX will have sixty (60) days after receipt of such notice to remedy the
situation prior to the termination for Constructive Discharge.

     iii. “Without Cause Termination” or “Terminated Without Cause” means termination of the
Executive’s employment by WEX other than due to death, disability, or Termination for Cause.

     iv. “Resignation” means a termination of the Executive’s employment by the Executive, other
than in connection with a Constructive Discharge.

     v. “Change in Control” means the happening of any of the following events:

(1) An acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (any of which, a “Person”) resulting in such Person having beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50%
or more of either (i) the then-outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (ii) the combined voting power of the
then-outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); excluding,
however, the

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following: (A) Any acquisition directly from the Company, other than an acquisition by
virtue of the exercise of a conversion privilege unless the security being so converted was
itself acquired directly from the Company, (B) Any acquisition by the Company, (C) Any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any entity controlled by the Company, or (D) Any acquisition pursuant to a
transaction which complies with clauses (i), (ii) and (iii) of Section VIII(D)(v)(3);or

(2) A change in the composition of the board of directors of the Company (the
“Board”) such that the individuals who, as of the Effective Date, constitute the Board
(such Board shall be hereinafter referred to as the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided, however, for purposes
of this definition, that any individual who becomes a member of the Board subsequent to
the Effective Date, whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of those individuals who
are members of the Board and who were also members of the Incumbent Board (or deemed to
be such pursuant to this proviso) shall be considered as though such individual were a
member of the Incumbent Board; but, provided further, that any such individual whose
initial assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the Exchange Act) or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board shall not be so considered as
a member of the Incumbent Board; or

(3) Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company or the acquisition
of shares or assets of another company (“Corporate Transaction”); excluding, however,
such a Corporate Transaction pursuant to which (i) all or substantially all of the
individuals and entities who are the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction will beneficially own, directly or indirectly, more
than 50% of, respectively, the outstanding shares of common stock (or equity
interests), and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors (or equivalent governing body,
if applicable), as the case may be, of the entity resulting from such Corporate
Transaction (including an entity which as a result of such transaction owns the Company
or all or substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Corporate Transaction, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person
(other than the Company, any employee benefit plan (or related trust) of the Company or
such entity resulting from such Corporate Transaction) will beneficially own, directly
or indirectly, 50% or more of, respectively, the outstanding shares of common stock (or
equity interests) of the entity resulting from such Corporate Transaction or the
combined voting power of the outstanding voting securities of such corporation entitled
to vote generally in the election of directors (or equivalent governing body, if
applicable) except to the extent that such ownership existed prior to the Corporate
Transaction, and (iii) individuals who were members of the Incumbent Board will
constitute at least a majority of the members of the board of directors (or equivalent
governing body, if applicable) of the entity resulting from such Corporate
Transaction; or

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(4) The approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.

          E. Conditions to Payment.  All payments due to the Executive under this Section VIII
shall be made as soon as practicable in
accordance with Section VIIIA; provided, however,
that such payments, shall be subject to, and contingent upon, the execution by the Executive (or
[his/her] beneficiary or estate) of a release of any and all claims against WEX and its affiliates
in such reasonable form and substance adopted by WEX; provided further that such release
shall not waive, release or limit any rights the Executive has, or may have, to indemnification
under the Articles or Certificate of Incorporation, Bylaws, or other corporate governance documents
of WEX, to the extent arising out of claims asserted other than by the company or its affiliates,
or under applicable law, or any coverage or rights to coverage the Executive may have under
insurance maintained by WEX relating to the Executive’s actions on behalf of WEX within the scope
of and during the course of [his/her] employment with WEX. The Company will provide Executive with
a copy of such release not later than 21 days (45 days if Executive’s termination is part of an
exit incentive or other employment termination program offered to a group or class of employees)
before Executive’s termination of employment. Executive shall deliver the executed release to the
Company not later than eight days before the payment date provided in Section VIIIA for termination
payments to be made under this Agreement which are subject to 409A. The payments due to the
Executive under this Section VIII shall be in lieu of any other severance benefits otherwise
payable to the Executive under any severance plan of WEX or its affiliates and/or any other
agreement or arrangement. Nothing herein shall be construed as limiting the Executive’s
entitlement to any other vested accrued benefits to which she (or [his/her] estate if applicable)
is then entitled under WEX’s applicable employee benefit plans, including without limitation any
disability or life insurance plan benefits which may become payable. Any payments made under this agreement shall be compliant with IRS code 409A
including the timing of such payments.

SECTION VIIIA

OTHER TERMS RELATING TO TERMINATION OF EMPLOYMENT PAYMENTS; 

REIMBURSEMENTS; SECTION 409A EXEMPTIONS; DELAYED PAYMENTS UNDER 

SECTION 409A

     A. Time of Payment. Amounts payable under Section VIII following Executive’s
termination of employment, other than those expressly payable on a deferred basis, will be paid in
the payroll period next following the payroll period in which termination of employment occurs
except as otherwise provided in this Section VIIIA. Payment of any amount by reason of Executive’s
termination of employment shall be made no later than the last day of Executive’s second taxable
year following Executive’s taxable year in which the termination occurs.

     B. Reimbursements. Any reimbursements made or in-kind benefits provided under this Agreement
shall be subject to the following conditions:

     i. the amount of expenses eligible for reimbursement or in-kind benefits provided in
any one taxable year of Executive shall not affect the amount of expenses eligible for
reimbursement or in-kind benefits provided in any other taxable year of Executive;

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     ii. the reimbursement of any expense shall be made no later than the last day of
Executive’s taxable year following Executive’s taxable year in which the expense was
incurred (unless this Agreement specifically provides for reimbursement by an earlier date);

     iii. the right to reimbursement of an expense or payment of an in-kind benefit shall
not be subject to liquidation or exchange for another benefit.

     C. Short-Term Deferral Exemption. It is intended that payments made under this
Agreement due to Executive’s termination of employment that are not otherwise subject to Section
409A of the Internal Revenue Code (“409A”) which are paid on or before the 15th day of
the third month following the end of Executive’s taxable year in which his termination of
employment occurs shall be exempt from compliance with 409A pursuant to the exemption for
short-term deferrals set forth in Section 1.409A-1(b)(4) of the Treasury Regulations
(“Regulations”).

      D. Separation Pay Exemption. It is intended that payments made under this Agreement
due to Executive’s Without Cause Termination or Constructive Discharge that are not otherwise
subject to 409A which do not exceed two times the lesser of (a) the Executive’s annualized
compensation (determined in accordance with the Regulations) or (b) the maximum amount that may be
taken into account under Section 401(a)(17) of the Code ($245,000 for 2009) shall be exempt from
compliance with 409A pursuant to the exemption for separation pay set forth in Section
1.409A-1(b)(9) of the Regulations.

     E. Six-Month Delay for Specified Employees. Anything in this Agreement to the
contrary notwithstanding, payments to be made under this Agreement upon termination of Executive’s
employment which are subject to 409A (“409A Payments”) shall be delayed for six months following
such termination of employment if Executive is a Specified Employee as defined below on the date of
termination of employment. Any 409A Payment due within such six-month period shall be delayed to
the end of such six-month period.

       i. The Company will adjust the 409A Payment to reflect the deferred payment date by
multiplying the payment or reimbursement by the product of the six-month CMT Treasury Bill
annualized yield rate as published by the U.S. Treasury for the date on which such payment
or reimbursement would have been made but for the delay multiplied by a fraction, the
numerator of which is the number of days by which such payment or reimbursement was delayed
and the denominator of which is 365. 

       ii. The Company will make the adjusted 409A Payment at the beginning of the seventh
month following Executive’s termination of employment. Notwithstanding the foregoing, if
calculation of the amounts payable by any payment date specified in this Subsection E is not
administratively practicable due to events beyond the control of Executive (or Executive’s
beneficiary or estate) and for reasons that are commercially reasonable, payment will be
made as soon as administratively practicable in compliance with 409A and the Regulations
thereunder. In the event of Executive’s death during such six-month period, payment will be made in the payroll period next following the payroll
period in which Executive’s death occurs.

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      iii. “Specified Employee”. For purposes of this Agreement, a “Specified Employee”
shall mean an employee of the Company who satisfies the requirements for being designated a
“key employee” under Section 416(i)(1)(A)(i), (ii) or (iii) of the Code without regard to
Section 416(i)(5) of the Code at any time during a calendar year, in which case such
employee shall be considered a Specified Employee for the twelve-month period beginning on
the first day of the fourth month immediately following the end of such calendar year.
Notwithstanding the foregoing, all employees who are nonresident aliens during an entire
calendar year are excluded for purposes of determining which employees meet the requirements
of Section 416(i)(1)(A)(i), (ii) or (iii) of the Code without regard to Section 416(i)(5) of
the Code for such calendar year. The term “nonresident alien” as used herein shall have the
meaning set forth in Regulations Section 1.409A-1(j). In the event of any corporate spinoff
or merger, the determination of which employees meet the requirements of Section
416(i)(1)(A)(i), (ii) or (iii) of the Code without regard to Section 416(i)(5) of the Code
for any calendar year shall be determined in accordance with Regulations Section
1.409A-1(i)(6).

SECTION IX

OTHER DUTIES OF THE EXECUTIVE

DURING AND AFTER THE PERIOD OF EMPLOYMENT

          A. Cooperation with Legal Claims. The Executive will, with reasonable notice during or after
the Period of Employment, furnish information as may be in [his/her] possession and reasonably
cooperate with WEX and its affiliates as may reasonably be requested in connection with any claims
or legal action in which WEX or any of its affiliates is or may become a party. The foregoing shall
not unreasonably interfere with the Executive’s duties to any successor employer and the Company
shall reimburse the Executive for any reasonable expenses incurred for providing such assistance.

          B. Protection of Confidential Information.

          i. Acknowledgement. The Company and the Executive acknowledge that the services to
be performed by the Executive under this Agreement are unique and extraordinary and that, as a
result of the Executive’s employment, the Executive will be in a relationship of confidence and
trust with the Company and will come into possession of Confidential Information (as defined
below) that is (1) owned or controlled by the Company, (2) in the possession of the Company and
belonging to third parties or (3) conceived, originated, discovered or developed, in whole or in
part, by the Executive. “Confidential Information” means trade secrets and other confidential or
proprietary business, technical, personnel or financial information, whether or not the
Executive’s work product, in written, graphic, oral, electronic or other tangible or intangible
forms, including specifications, samples, records, data, computer programs, drawings, diagrams,
models, customer names, business or mailing addresses, ID’s or e-mail addresses, business or
marketing plans, studies, analyses, projections and reports, communications by or to attorneys
(including attorney-client privileged communications), memos and other materials prepared by
attorneys or under their direction (including attorney work product), and software systems and
processes. Any Confidential Information that is not

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readily available to the public shall be considered to be a trade secret and confidential and
proprietary, even if it is not specifically marked as such, unless the Company advises the
Executive otherwise in writing.

          ii. Nondisclosure. The Executive agrees that the Executive will keep the Confidential
Information in strictest confidence and trust, and will not, without the prior written consent of
the Company, directly or indirectly, use or disclose Confidential Information to any person,
during or after the Executive’s employment, except as may be necessary in the ordinary course of
performing the Executive’s duties under this Agreement. This Section IX(B) shall apply
indefinitely, both during and after the Period of Employment.

          iii. Surrender Upon Termination. The Executive agrees that, in the event of the
termination of the Executive’s employment for any reason, at any time, the Executive will
immediately deliver to the Company all property belonging to the Company, including documents and
materials of any nature pertaining to the Executive’s work with the Company, and will not take
with the Executive any documents or materials of any description, or any reproduction thereof of
any description, containing or pertaining to any Confidential
Information. It is understood that the Executive is free to use information that is in the public
domain, but not as a result of a breach of this Agreement.

          C. Restrictions.

          i. During the Period of Employment and for the Post Termination Period thereafter
(collectively, the “Restricted Period”), the Executive will not knowingly use [his/her] status with
WEX or any of its affiliates to obtain loans, goods or services from another organization on terms
that would not be available to [his/her] in the absence of [his/her] relationship to WEX or any of
its affiliates. The Post Termination Period means a period of two (2) years following the
Executive’s termination of employment, if, in connection with such termination, the Executive
receives a severance under Section VIII(B) of this Agreement, or one (1) year following the
Executive’s termination of employment, in all other cases, irrespective of the cause, manner or
time of such termination.

          ii. During the Restricted Period, the Executive will not make any statements or perform any
acts intended or reasonably calculated to advance the interest of any existing or prospective
Competing Enterprise or in any way to injure the interests of or disparage WEX or any of its
affiliates.

          iii. During the Restricted Period, the Executive, without prior express written approval by
the Chief Executive Officer of WEX, will not become employed by, render services to or directly or
indirectly (whether for compensation or otherwise) own or hold a proprietary interest in, manage,
operate, or control, or join or participate in the ownership, management, operation or control of,
or furnish any capital to or be connected in any manner with, any Competing Enterprise.

          iv. For purposes of this Section IX, a “Competing Enterprise” means any entity, organization
or person engaged, or planning to become engaged, in substantially the same or similar business to
that being conducted or actively and specifically planned to be conducted

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within the Restricted Period by WEX or its subsidiaries, owned or controlled. It includes,
without limitation: (i) the business of developing, managing, operating, marketing, processing,
financing, or otherwise being involved in providing any products or services for the benefit of or
use by commercial vehicle or aviation fleets through charge cards, credit cards, procurement cards
or any other form of payment services or electronic commerce; (ii) the sale, distribution or
publication of petroleum product pricing or management information or other products or services
currently sold or contemplated to be sold by WEX or any of its owned or controlled subsidiaries,
and (iii) the business of developing, managing, operating, marketing, processing, financing, or
otherwise being involved in providing commercial travel, entertainment and purchasing credit cards.
The restrictions in this Section shall not be construed to prevent the Executive from working for
a business entity that does not compete with WEX or its subsidiaries simply because the entity is
affiliated with a Competing Enterprise, so long as the entity is operationally separate and
distinct from the Competing Enterprise and the Executive’s job responsibilities at that entity are
unrelated to the Competing Enterprise. The Executive acknowledges that WEX’s and its subsidiaries’
businesses are conducted nationally and agrees that the provisions in this paragraph shall operate
throughout the United States.

          v. During the Restricted Period, the Executive, without express prior written approval from
the Chief Executive Officer, will not solicit any then-current clients, customers or private label,
cobrand or similar strategic partners of WEX or any of its affiliates. In addition, during the
Restricted Period, the Executive, without express prior written approval from the Chief Executive
Officer, will not discuss with any employee of WEX or any of its affiliates information related to
the operation or potential operation of any Competing Enterprise.

          vi. During the Restricted Period, the Executive will not interfere with the employees or
affairs of WEX or any of its affiliates or solicit or induce any person who is an employee of WEX
or any of its affiliates to terminate any relationship such person may have with WEX or any of its
affiliates. In addition, neither the Executive nor any entity she controls or person she employs
shall, during such period, directly or indirectly engage, employ or compensate any employee of WEX
or any of its affiliates. The Executive hereby represents and warrants that the Executive has not
entered into any agreement, understanding or arrangement with any employee of WEX or any of its
affiliates pertaining to any business in which the Executive has participated or plans to
participate, or to the employment, engagement or compensation of any such employee.

          vii. For the purposes of this Agreement, “proprietary interest” means legal or equitable
ownership, whether through stock holding or otherwise, of an equity interest in a business, firm or
entity or ownership of more than 1% of any class of equity interest in a publicly-held company and
the term “affiliate” will include without limitation all subsidiaries of WEX.

          D. The Executive hereby acknowledges that damages at law may be an insufficient remedy to WEX
if the Executive violates the terms of this Agreement and that WEX will be entitled, upon making
the requisite showing, to preliminary and/or permanent injunctive relief in any court of competent
jurisdiction to restrain the breach of or otherwise to specifically enforce any of the covenants
contained in this Section IX without the necessity of showing any actual damage or that monetary
damages would not provide an adequate remedy. Such right to an injunction will be in addition to,
and not in limitation of, any other rights or remedies WEX may have. Without limiting the
generality of the foregoing, neither party will oppose any motion the
other party may make for any expedited discovery or hearing in connection with any alleged
breach of this Section IX.

11

 

          E. The Executive agrees that the restrictions contained in this Section IX are an essential
element of the compensation the Executive is granted hereunder and but for the Executive’s
agreement to comply with such restrictions, WEX would not have entered into this Agreement.

SECTION X

DIRECTORS AND OFFICERS INSURANCE

          WEX will maintain D&O insurance for the Executive on a basis no less favorable than it
maintains for other officers of WEX.

SECTION XI

 MITIGATION

          The Executive will not be required to mitigate the amount of any payment provided for
hereunder by seeking other employment or otherwise, nor will the amount of any such payment be
reduced by any compensation earned by the Executive as the result of employment by another employer
after the date the Executive’s employment hereunder terminates or by offset against any amount
claimed to be owed by the Executive to WEX, or otherwise. The parties’ respective obligations
hereunder shall be absolute and unconditional and shall not be affected by any circumstances,
including without limitation any setoff, counterclaim, recoupment, defense or other right which the
other party hereto may have.

SECTION XII

WITHHOLDING TAXESTAXATION

          The Executive acknowledges and agrees that WEX may directly or indirectly withhold from any
payments under this Agreement all federal, state, city or other taxes that will be required
pursuant to any law or governmental regulation. Anything in this Agreement to the contrary
notwithstanding, the terms of this Agreement shall be interpreted and applied in a manner
consistent with the requirements of Section 409A of the Code and the Regulations so as not to
subject Executive to the payment of any tax or interest which may be imposed under such section,
and the Company shall have no right to accelerate or make any payment under this Agreement to the
extent such action would subject Executive to the payment of any tax or interest under such
section. If all or a portion of the benefits and payments provided under this Agreement
constitute taxable income to Executive for any taxable year that is prior to the taxable year in
which such payments and/or benefits are to be paid to Executive, as a result of the Agreement’s
failure to comply with the requirements of Section 409A of the Code and the Regulations, the
applicable payment or benefit shall be paid immediately to Executive to the extent such payment
or benefit is required to be included in income.

SECTION XIII

EFFECT OF PRIOR AGREEMENTS

12

 

          This Agreement will supersede any prior employment agreement between the Executive on the one
hand, and WEX (or any of its affiliates or parents) on the other hand (including without
limitation, the Employment Agreement dated March 24,1998 and all amendments thereto), and any such
prior employment agreement will be deemed terminated without any remaining obligations of either
party thereunder.

SECTION XIV

CONSOLIDATION, MERGER OR SALE OF ASSETS

          Nothing in this Agreement will preclude WEX from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another corporation that assumes this
Agreement and all obligations and undertakings of WEX hereunder. Upon such a consolidation, merger
or sale of assets the term “WEX” will mean the other corporation and this Agreement will continue
in full force and effect.

SECTION XV

MODIFICATION: WAIVER

          This Agreement may not be modified or amended except in writing signed by the parties. No term
or condition of this Agreement will be deemed to have been waived except when waived in writing by
the party charged with waiver. A waiver will operate only as to the specific term or condition
waived and will not constitute a waiver for the future or have any impact on anything other than
that which is specifically waived.

SECTION XVI

GOVERNING LAW

          This Agreement has been executed and delivered in the State of Maine and its validity,
interpretation, performance and enforcement will be governed by the internal laws of that state.

SECTION XVII

ARBITRATION

          A. Any controversy, dispute or claim arising out of or relating to this Agreement or the
breach hereof which cannot be settled by mutual agreement (other than with respect to the matters
covered by Section IX for which WEX may, but will not be required to, seek injunctive relief) will
be finally settled by binding arbitration in accordance with the Federal Arbitration Act (or if not
applicable, the applicable state arbitration law) as follows: Any party who is aggrieved will
deliver a written notice to the other party setting forth the specific points in dispute. Any
points remaining in dispute twenty (20) days after the giving of such written notice may be
submitted by either party, upon ten (10) days prior written notice to the other party, to
arbitration in Portland, Maine, to the American Arbitration Association, before a single arbitrator
appointed in accordance with the arbitration rules of the American Arbitration Association,
National Rules for the Resolution of Employment Disputes, modified only as herein expressly
provided. The arbitrator may enter a default decision against any party who fails to participate in
the arbitration proceedings.

13

 

          B. The decision of the arbitrator on the points in dispute will be final, and binding, and
judgment on the award may be entered in any court having jurisdiction thereof.

          C. Except as otherwise provided in this Agreement, the arbitrator will be authorized to
apportion his/[his/her] fees and expenses as the arbitrator deems appropriate. In the absence of
any such apportionment, the fees and expenses of the arbitrator will be borne equally by each
party, and each party will bear the fees and expenses of its or [his/her] own attorney.

          D. The parties agree that this Section XVII has been included to rapidly and inexpensively
resolve any disputes between them with respect to this Agreement, and that this Section XVII will
be grounds for dismissal of any court action commenced by either party with respect to this
Agreement, other than post-arbitration actions seeking to enforce an arbitration award, or matters
covered by Section IX. In the event that any court determines that this arbitration procedure is
not binding, or otherwise allows any litigation regarding a dispute, claim, or controversy covered
by this Agreement to proceed, the parties hereto hereby waive any and all right to a trial by jury
in or with respect to such litigation and do hereby consent to the jurisdiction of the appropriate
court within the State of Maine.

          E. The parties will keep confidential, and will not disclose to any person, except as may be
required by law, the existence of any controversy hereunder, the referral of any such controversy
to arbitration or the status or resolution thereof.

SECTION XVIII

SURVIVAL

          Sections IX, X, XI, XII, XIV and XVII will continue in full force in accordance with their
respective terms notwithstanding any termination of the Period of Employment.

SECTION XIX

SEPARABILITY

          All provisions of this Agreement are intended to be severable. In the event any provision or
restriction contained herein is held to be invalid or unenforceable in any respect, in whole or in
part, such finding will in no way affect the validity or enforceability of any other provision of
this Agreement. The parties hereto further agree that any such invalid or unenforceable provision
will be deemed modified so that it will be enforced to the greatest extent permissible under law,
and to the extent that any court of competent jurisdiction determines any restriction herein to be
unreasonable in any respect, such court may limit this Agreement to render it reasonable in the
light or the circumstances in which it was entered into and specifically enforce this Agreement as
limited.

14

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 

	 	WRIGHT EXPRESS CORPORATION	 	 
	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	By: Michael E. Dubyak	 	 
	 

	 	Title: President and CEO	 	 
	 
	 	 	 	 
	 

	 	[                                    
    ]	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

15exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made and entered into as of January 1, 2009
(“Effective Date”) by and between RXi Pharmaceuticals Corporation (“Employer”), a Delaware
corporation, and Tod Woolf, an individual and resident of the Commonwealth of Massachusetts
(“Employee”).

     WHEREAS, Employer and Employee desire to enter into an employment agreement under which
Employee shall continue to serve on a full-time basis as Employer’s President and Chief Executive
Officer on the terms set forth in this Agreement, with the term of this Agreement to commence on
the Effective Date.

     NOW, THEREFORE, upon the above premises, and in consideration of the mutual covenants and
agreements hereinafter contained, the parties hereto agree as follows.

     1. Engagement. Effective as of the Effective Date, Employer shall continue to employ
Employee, and Employee shall continue to serve, as Employer’s President and Chief Executive
Officer. Employee understands that his duties as President and Chief Executive Officer may change
from time to time over the term of this Agreement in the discretion of Employer’s Board of
Directors, but such duties shall in all events be consistent with the duties customarily assigned
to the Chief Executive Officer of a company such as Employer.

     2. Duties. Place of Employment. Employee shall perform all duties assigned to him by
the Employer’s Board faithfully, diligently and to the best of his ability. Such duties include,
without limitation, the overseeing and implementation of the business plan adopted by the Board (as
may be revised from time to time by the Board). Employee shall perform the services contemplated
under this Agreement in accordance with the policies established by and under the direction of the
Board of Directors. Employee shall have such corporate power and authority as shall reasonably be
required to enable him to discharge his duties under this Agreement. Employee’s services hereunder
shall be rendered at Employer’s offices in Worcester, Massachusetts (or such other location that is
then the corporate headquarters of Employer), except for travel when and as required in the
performance of Employee’s duties hereunder.

     3. Time and Efforts. Employee shall devote all of his business time, efforts,
attention and energies to Employer’s business and the discharge of his duties hereunder, except as
noted on Schedule A, which contains other potential activities of the Employee and disclosed
conflicts of interest.

     4. Term. The term (the “Term”) of Employee’s employment shall commence on the
Effective Date and shall expire on December 31, 2009, unless sooner terminated in accordance with
Section 6. Neither Employer nor Employee shall have any obligation to extend or renew this
Agreement. In the event the Agreement shall not be extended or renewed by Employer beyond the
Term, Employer shall continue to pay Employee his salary as provided for in Section 5.1 during the
period commencing on the date on which the Term ends and ending on the earlier of (a) June 30, 2010
or (b) the date of Employee’s re-employment with another employer (other than IPIFINI).

 

 

     5. Compensation. As the total consideration for Employee’s services rendered under the
Agreement, Employer shall pay or provide Employee the following compensation and benefits:

          5.1 Salary. Commencing on the Effective Date, Employee shall be entitled to receive
an annual Base Salary of Three Hundred and Seventy Five Thousand ($375,000).

          5.2 Discretionary Bonus. Employee may be eligible for an annual bonus for his
services during the Term. Employee’s eligibility to receive a bonus, any determination to award
Employee such a bonus and, if awarded, the amount thereof shall be in Employer’s sole discretion.

          5.3 Stock Options. The terms of the stock options granted to Employee under
Employer’s 2007 Incentive Plan (the “Stock Options”) prior to the Effective Date, shall be governed
by Employee’s employment agreement with the Employer dated as of February 22, 2008. Employee shall
be eligible to receive additional grants of Stock Options during the term of this Agreement, as
shall be determined by Employer’s Board of Directors in its sole discretion. In the event that the
Employee is terminated without Cause or resigns for Good Reason, with respect to any stock options
granted during the Term of this Agreement, the shares that would have vested during the Severance
Period (as defined in Section 6.2 below) shall vest and become exercisable as of the date of such
termination.

          5.4 Expense Reimbursement. Employer shall reimburse Employee for reasonable and
necessary business expenses incurred by Employee in connection with the performance of Employee’s
duties in accordance with Employer’s usual practices and policies in effect from time to time.

          5.5 Vacation. Employee will be entitled to 25 days of paid “time off” (vacation days
plus sick time/personal time) for each full calendar year in accordance with the Company’s policies
from time to time in effect, in addition to holidays observed by the Company (for partial calendar
years, the Employee’s paid “time off” will be pro-rated). Paid time off may be taken at such times
and intervals as the Employee shall determine, subject to the business needs of the Company, and
otherwise shall be subject to the policies of the Company, as in effect from time to time. The
number of paid “time off” days will accrue per pay period and will stop accruing once 20 days have
been reached.

          5.6 Employee Benefits. Employee shall be eligible to participate in any medical
insurance and other employee benefits made available by Employer to all of its employees under its
group plans and employment policies in effect during the Term. Employee acknowledges and agrees
that, any such plans or policies now or hereafter in effect may be modified or terminated by
Employer at any time in its discretion.

          5.7 Payroll Taxes. Employer shall have the right to deduct from the compensation and
benefits due to Employee hereunder any and all sums required for social security and withholding
taxes and for any other federal, state, or local tax or charge which maybe in effect or hereafter
enacted or required as a charge on the compensation or benefits of Employee.

2

 

     6. Termination. The Agreement may be terminated as set forth in this Section 6.

          6.1 Termination by Employer for Cause or Voluntary Resignation Without Good Reason.
Employer may terminate Employee’s employment hereunder for “Cause” upon notice to Employee and
Employee may voluntarily resign his employment hereunder upon notice to Employer. “Cause” for this
purpose shall mean any of the following:

               (a) Employee’s breach of any material term of the Agreement; provided that the first occasion
of any particular breach shall not constitute such Cause unless Employee shall have previously
received written notice from Employer stating the nature of such breach and affording Employee at
least ten days to correct such breach;

               (b) Employee’s conviction of, or plea of guilty or nolo contendere to, any felony or other
crime of moral turpitude;

               (c) Employee’s act of fraud or dishonesty injurious to Employer or its reputation;

               (d) Employee’s continual failure or refusal to perform his material duties as required under
the Agreement after written notice from Employer stating the nature of such failure or refusal and
affording Employee at least ten days to correct the same;

               (e) Employee’s act or omission that, in the reasonable determination of Employer’s Board of
Directors (or a Committee of the Board), indicates alcohol or drug abuse by Employee; or

               (f) Employee’s act or personal conduct that, in the judgment of Employer’s Board of Directors
(or a Committee of the Board), gives rise to a material risk of liability of Employee or Employer
under federal or applicable state law for discrimination, or sexual or other forms of harassment,
or other similar liabilities to subordinate employees.

     Upon termination of Employee’s employment by Employer for Cause or by Employee due to a
voluntary resignation without Good Reason, all compensation and benefits to Employee hereunder
shall cease and Employee shall be entitled only to payment, not later than three days after the
date of termination, of any accrued but unpaid salary and unused paid “time off” as provided in
Sections 5.1 and 5.5 as of the date of such termination and any unpaid bonus that may have been
previously awarded Employee as provided in Section 5.2 prior to such date.

          6.2 Termination by Employer without Cause or by Employee for Good Reason. Employer
may also terminate Employee’s employment without Cause upon notice to Employee. Employee may also
terminate Employee’s employment for Good Reason upon notice to the Employer. Upon termination of
Employee’s employment by Employer without Cause or by Employee for Good Reason, all compensation
and benefits to Employee hereunder shall cease and Employee shall be entitled to payment of:

3

 

          6.3

               (a) any accrued but unpaid salary and unused paid “time off” as of the date of such
termination as required by Massachusetts law and any unpaid bonus that may have been previously
awarded Employee as provided in Section 5.2 prior to such date, which shall be due and payable upon
the effective date of such termination;

               (b) an amount, which shall be due and payable within ten (10) days following the effective
date of such termination, equal to the salary that would otherwise be payable as provided in
Section 5.1 for the period of time which is equal to the earlier of either (i) the twelve-month
anniversary of such termination date; or (ii) the remainder of the Term of the Agreement but in no
event less than six(6) months (either (i) or (ii) shall be referred to as the “Severance Period”)
and

               (c) continued participation, at Employer’s cost and expense, during the Severance Period in
any Employer sponsored group benefit plans in which Employee was participating as of the date of
termination.

For purposes of this Agreement, Good Reason shall mean any of the following: (i) a material
reduction in Employee’s duties, position, or responsibilities in effect immediately prior to such
reduction; (ii) the Company reduces Employee’s Base Salary or bonus opportunity by more than 5%
relative to his salary and bonus opportunity in effect immediately prior to such
reduction;(iii) there is a material reduction by the Company in the kind or level of benefits to
which Employee is entitled immediately prior to such reduction with the result that Employee’s
overall benefits package is significantly reduced; (iv) without Employee’s express written consent,
Employee’s relocation to a facility or a location more than fifty (50) miles from his then current
location in Worcester, Massachusetts; or (v) CytRx Corporation votes its shares of capital stock of
Employer to elect individuals who are affiliates of CytRx Corporation to constitute a majority of
the Employer’s Board of Directors.

          6.4 Death or Disability. Employee’s employment will terminate automatically in the
event of Employee’s death or upon notice from Employer in event of his permanent disability.
Employee’s “permanent disability” shall have the meaning ascribed to such term in any policy of
disability insurance maintained by Employer (or Employee, as the case may be) with respect to
Employee, or if no such policy is then in effect, shall mean Employee’s inability to fully perform
his duties hereunder for any period of at least 75 consecutive days or for a total of 90 days,
whether or not consecutive. Upon termination of Employee’s employment as aforesaid, all
compensation and benefits to Employee hereunder shall cease and Employer shall pay to the
Employee’s heirs or personal representatives, not later than ten days after the date of
termination, any accrued but unpaid salary and unused paid “time off” as of the date of such
termination as required by Massachusetts law and any unpaid bonus that may have been previously
awarded Employee as provided in Section 5.2 prior to such date.

     7. Confidentiality. While this Agreement is in effect and for a period of four years
thereafter, Employee shall hold and keep secret and confidential all “trade secrets” (within the
meaning of applicable law) and other confidential or proprietary

4

 

information of Employer and shall
use such information only in the course of performing Employee’s duties under this Agreement;
provided, however, that with respect to trade secrets, Employee shall hold and keep secret and
confidential such trade secrets for so long as they remain trade secrets under
applicable law. Employee shall maintain in trust all such trade secret or other confidential
or proprietary information, as Employer’s property, including, but not limited to, all documents
concerning Employer’s business, including Employee’s work papers, telephone directories, customer
information and notes, and any and all copies thereof in Employee’s possession or under Employee’s
control. Upon the expiration or earlier termination of Employee’s employment with Employer, or
upon request by Employer, Employee shall deliver to Employer all such documents belonging to
Employer, including any and all copies in Employee’s possession or under Employee’s control.

     8. Equitable Remedies. Injunctive Relief. Employee hereby acknowledges and agrees
that monetary damages are inadequate to fully compensate Employer for the damages that would result
from a breach or threatened breach of Section 7 of this Agreement and, accordingly, that Employer
shall be entitled to equitable remedies, including, without limitation, specific performance,
temporary restraining orders, and preliminary injunctions and permanent injunctions, to enforce
such Section without the necessity of proving actual damages in connection therewith. This
provision shall not, however, diminish Employer’s right to claim and recover damages or enforce any
other of its legal or equitable rights or defenses.

     9. Indemnification. Insurance. Employer and Employee acknowledge that, as the Chief
Executive Officer of Employer, Employee shall be a corporate officer of Employer and, as such,
Employee shall be entitled to indemnification to the full extent mandated by Employer to its
officers, directors and agents under the Employer’s Certificate of Incorporation and Bylaws as in
effect as of the date of this Agreement. Subject to his insurability there under, Employer shall
maintain Employee as an additional insured under its current policy of directors and officers
liability insurance and shall use commercially reasonable efforts to continue to insure Employee
there under, or under any replacement policies in effect from time to time, during the Term.

     10. Severable Provisions. The provisions of this Agreement are severable and if any
one or more provisions is determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions, and any partially unenforceable provisions to the extent enforceable,
shall nevertheless be binding and enforceable.

     11. Successors and Assigns. This Agreement shall inure to the benefit of and shall be
binding upon Employer, its successors and assigns and Employee and his heirs and representatives;
provided, however, that neither party may assign this Agreement without the prior written consent
of the other party.

     12. Entire Agreement. This Agreement including Schedule A contains the entire
agreement of the parties relating to the subject matter hereof, and the parties hereto have made no
agreements, representations or warranties relating to the subject

5

 

matter of this Agreement that are
not set forth otherwise therein or herein. Except as expressly provided herein, this Agreement
supersedes any and all prior or contemporaneous agreements, written or oral, between Employee and
Employer relating to the subject matter hereof. Any such prior or contemporaneous agreements are
hereby terminated and of no further effect, and Employee, by the execution hereof, agrees that any
compensation provided for under any such agreements is specifically superseded and replaced by the
provisions of this Agreement for services rendered from and after the Effective Date.
Notwithstanding the foregoing, the Invention Assignment
and Confidentiality Agreement dated February 22, 2007, between the Employee and Employer shall
remain in force.

     13. Amendment. No modification of this Agreement shall be valid unless made in
writing, approved by the Employer’s Board of Directors (or a committee of the Board) and signed by
the parties hereto and unless such writing is made by an executive officer of Employer (other than
Employee). The parties hereto agree that in no event shall an oral modification of this Agreement
be enforceable or valid.

     14. Governing Law. This Agreement is and shall be governed and construed in
accordance with the laws of the Commonwealth of Massachusetts without giving effect to
Massachusetts’s choice-of-law rules.

     15. Notice. All notices and other communications under this Agreement shall be in
writing and mailed, telecopied (in case of notice to Employer only) or delivered by hand or by a
nationally recognized courier service guaranteeing overnight delivery to a party at the following
address (or to such other address as such party may have specified by notice given to the other
party pursuant to this provision):

If to Employer:

Legal Counsel

RXi Pharmaceuticals Corporation

60 Prescott St.

Worcester, MA 01605

If to Employee:

Mr. Tod Woolf

14 Babe Ruth Drive

Sudbury, MA 01776

     16. Survival. Sections 8 through 19 shall survive the expiration or termination of
this Agreement.

     17. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original and all of which together shall be deemed to be one and the same
agreement.

6

 

     18. Attorney’s Fees. In any action or proceeding to construe or enforce any provision
of this Agreement the prevailing party shall be entitled to recover its or his reasonable
attorneys’ fees and other costs of suit in addition to any other recoveries.

     IN WITNESS WHEREOF, this Agreement is executed as of the day and year first above written.

	 	 	 	 	 
	 	“EMPLOYER”

 	 
	 	By:  	 /s/   Sanford  J. Hillsberg 	 
	 	 	Sanford  J. Hillsberg 	 
	 	 	Chairman of the Board of Directors 	 
	 
	 	“EMPLOYEE”

 	 
	 	By:  	 /s/   Tod Woolf 	 
	 	 	Tod Woolf 	 
	 	 	 	 

7

 

	 	 	 	 	 

SCHEDULE A

Mr. Woolf is on the Scientific Advisory Board of ProNai, a company that uses DNA to inactivate
genes.

     Mr. Woolf is the President of IPIFINI, Inc., a company through which the above-mentioned
biomedical work is performed. IPIFINI, Inc. also has developed and owns several inventions outside
of the biomedical fields. Mr. Woolf and his family and friends may receive personal financial
compensation for any licenses taken to Invitrogen IP for which Mr. Woolf is a named inventor and
Mr. Woolf (and his family and friends) will receive a cash payment if Invitrogen meets certain
sales goals through November 4, 2008. These inventions are in the field of RNAi, so they will
present a known potential conflict which will have to be managed, by having the board vote on any
potentially conflicting agreements with Invitrogen in the field of RNAi.

8

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