Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Agreement
is made this 2nd day of June, 2005 with an effective date of May 31, 2005
(the “Effective Date”), by and between
VITACUBE SYSTEMS HOLDINGS, INC., a Nevada corporation (“Employer” or
the “Company”), and DOUGLAS RIDLEY (“Employee”).  This Agreement supersedes and replaces all
prior employment agreements between the parties whether written or oral.

 

BACKGROUND

 

A.                                   The
Company desires to employ Employee as its President.

 

B.                                     Employee
desires employment with the Company as its President.

 

THEREFORE, in
consideration of the Background, the mutual promises contained herein, and
other good and valuable consideration, the parties agree as follows:

 

1.                                       Employment Duties.

 

1.1.                              Employment.  Company agrees to employ Employee as
President until terminated as herein provided. 
The Company’s board of directors may amend Employee’s job title and
description from time to time.  Employee
hereby accepts employment by the Company and agrees diligently and faithfully
to perform his duties pursuant to this Agreement. EMPLOYEE ACKNOWLEDGES AND THE
PARTIES AGREE THAT EMPLOYEE IS ONE OF THE COMPANY’S EXECUTIVE AND MANAGEMENT
PERSONNEL AND THAT ALL CONFIDENTIALITY, NON-COMPETE AND NON-SOLICITATION
COVENANTS AND PROVISIONS CONTAINED IN THIS AGREEMENT ARE FULLY ENFORCEABLE
AGAINST EMPLOYEE.

 

1.2.                              Time
Devoted. Employee will devote his full business hours and energies to the
business of the Company to accomplish all duties reasonably assigned, and will
devote his best efforts to advance the interests of the Company. During the
term of this Agreement, without the prior approval of the Company’s CEO or
board of directors, Employee shall not be engaged in any other business
activity, with the exception of Simply Because LLC, whether or not pursued for
gain, profit or other pecuniary advantage, which may interfere with his duties
under this Agreement.

 

1.3.                              Duties.  Employee’s duties shall include: management
of the day-to-day operations of the Company, general administration of the
Company’s business including sales, marketing, and strategic planning for the
Company, supervision and direction of employees and
other corporate officers, and all other duties necessary to perform the
foregoing responsibilities or assigned to Employee by the board of
directors.  Employee will

 

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have the authority to perform and execute
the necessary actions to implement the operational initiatives set by the
Company acting through its board of directors.

 

2.                                       Term. 
The term of Employee’s employment hereunder shall commence on the
Effective Date and shall continue for a period of two years (the “Initial Term”).  Employee’s employment shall terminate at the
end of the Initial Term unless extended by mutual agreement of the parties
unless earlier terminated as provided below.

 

3.                                       Compensation.

 

3.1.                              Salary.  Employee will receive as compensation for all
responsibilities a base salary (“Base Salary”) of $175,000 per year, payable
according to the salary schedule of Employer.  In addition to the Base Salary and the Plan
Bonus described below, Employee will receive a one-time signing bonus of
$25,000 upon the execution of this Agreement, to be paid and included with
Employee’s first salary payment.

 

3.2.                              Stock
Options. Employee also, pursuant to the terms of Employer’s 2003 Stock
Incentive Plan (the “ISOP”), shall receive options (the “Options”) to purchase,
at a price of $3.20 per share, an aggregate of 200,000 shares of Employer’s
common stock.  Pursuant to the ISOP, the
grant of the Options shall be effective the date of Employee’s employment.  The Options shall vest, effective on December 31,
in equal amounts over a four year period, such that Employee shall receive the
right to purchase 50,000 shares, commencing December 31, 2005.

 

3.3.                              Bonuses.  Employer intends to initiate an
incentive executive bonus plan (the “Plan Bonus”) for all executives of the
Company.  Employee will be eligible for
inclusion for the Plan Bonus if and when it is instituted by the Company, but
only on the same basis as other executives may participate and as approved by
the compensation committee of the Board of Directors, or such equivalent Board
body.

 

3.4.                              Withholding/Deductions.  All
compensation the Company pays Employee, including commissions, is subject to
all federal, state, and municipal withholding requirements, any applicable
occupational privilege tax and any court ordered deductions such as
garnishments.  Compensation may also be
reduced by deductions Employee authorizes for insurance, 401(k) contributions,
and other similar purposes.

 

3.5.                              Final Salary. 
Employee’s final paycheck will be reduced by the amount of any lawful
charge or indebtedness Employee owes the Company.

 

4.                                       Benefits.

 

4.1.                              Voluntary Benefits. 
Employee shall receive all benefits generally available to senior
executive employees of the Company from time to time.  The Company does not promise to provide any
fringe benefits but agrees that, if provided, Employee shall have the right to participate.  Such participation shall be subject to all
qualification, vesting and other requirements of the plans.

 

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4.2.                              Additional Benefits.  In
addition to the benefits set forth in Section 4.1,

 

4.2.1.                     Employee will
not reside near the Company’s main place of business, therefore Employer shall
provide for, or reimburse Employee for the reasonable cost of, air travel,
local car, and lodging associated with his work and time spent at the Company
offices. Employee shall work primarily at the Company’s main place of business
in order to perform the foregoing duties and responsibilities, and shall plan
associated travel in advance taking advantage of reduced-cost airfare, car, and
lodging.

 

4.2.2.                     Employee
shall be entitled to four weeks of paid vacation each year, with such vacation
to be scheduled and taken in accordance with the Company’s standard vacation
policies applicable to such personnel. 
In addition, Employee shall be entitled to such sick leave and holidays
at full pay in accordance with the Company’s policies established and in effect
from time to time.

 

4.2.3.                     The Company
shall pay the expenses reasonably incurred by Employee in connection with a
cellular telephone and a home high-speed internet connection.

 

4.2.4.                     The Company
shall maintain director and officer liability insurance at all times during the
term of Employee’s employment and for a period of three years after Employee’s
termination of employment.

 

4.2.5.                     The Company
shall reimburse the Employee for the cost of health insurance for the Employee
and his family.

 

4.3.                              Expense Reimbursement. 
Employee shall be entitled to reimbursement from the Company of all
expenses incurred in performing duties hereunder, including without limitation,
meals, lodging, travel, and business entertainment, subject to the rules and
regulations adopted by the Company for handling of such business expenses.

 

5.                                       Best Efforts of Employee. 
Employee shall at all times faithfully, with diligence and to the best
of Employee’s ability, experience and talents, perform all duties required of
and from Employee pursuant to the express and implicit terms hereof to the
reasonable satisfaction of the Company.

 

6.                                       Termination.  Employee’s employment hereunder may be
terminated under the circumstances set forth below.

 

6.1.                              Death.  Employee’s employment hereunder shall
terminate immediately upon his death.

 

6.2.                              Disability.  Employee’s
employment hereunder shall terminate if Employee becomes physically or mentally
disabled so as to become unable, for a period of more than 90 consecutive
working days, or for more than 90 working days in the aggregate during any

 

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12-month
period, to perform his duties hereunder, to the same extent he performed them
prior to the onset of such disability.

 

6.3.                              Cause.  The Company may terminate Employee’s
employment immediately for “just cause.” 
“Just cause” shall mean the occurrence of any of the following:

 

6.3.1.                     Employee
materially breaches or fails to perform his obligations in accordance with the
terms and conditions of this Agreement, provided that the Company shall have
delivered to Employee written notice setting forth Employee’s deficiencies and
Employee shall have not taken reasonable steps to cure such deficiency within
five business days of such notice.

 

6.3.2.                     Employee
commits a felony or any other act abhorrent to the community which a reasonable
person would consider materially damaging to the reputation of the Company or
its successors or assigns.

 

6.3.3.                     Employee
commits an act of fraud, misappropriation, or personal dishonesty in connection
with his employment hereunder.

 

6.3.4.                     Employee commits a material and
willful violation of a federal or state law or regulation applicable to the
business of the Company or its status as a public company.

 

6.4.                              Good
Reason.  Employee may terminate his
employment for “good reason” after giving the Company detailed written notice
thereof, if the Company shall have failed to cure the event or circumstances
constituting “good reason” within five business days after receiving such
notice.  Good reason shall mean the
occurrence of any of the following without the written consent of Employee:

 

6.4.1.                     Any material
breach by the Company of this Agreement.

 

6.4.2.                     Any material
reduction in Employee’s duties or responsibilities.

 

6.4.3.                     The Company
is the subject of a regulatory action brought by the Securities and Exchange
Commission or a state securities administrator that results in a finding that
the Company committed a material violation of a securities law arising out of
actions by the Company prior to the date of this Agreement.

 

6.4.4.                     A change in
control.  A “change in control” means (a) the
acquisition, directly or indirectly by any person or group (within the meaning
of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
1934, as amended) other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Company, of beneficial ownership (within
the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as
amended) of securities possessing more than 30% of the total combined voting
power in the election of directors of the Company’s

 

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then-outstanding securities or (b) a
change in a majority of the board of directors in a period of less than one
year.

 

6.5.                              Without
Cause.  The Company shall have the
right to terminate Employee’s employment hereunder without cause by providing
Employee with at least 30 days prior written notice of such termination.

 

6.6.                              Without
Good Reason.  Employee shall have the
right to terminate his employment without good reason by providing the Company
with at least 30 days advance written notice of such termination.

 

7.                                       Compensation Upon Termination.

 

7.1.                              If
Employee’s employment is terminated because of disability, for cause by the
Company, or without good reason by Employee, the Company shall only be
obligated to pay Employee the salary and bonuses earned as of the date of
termination, and reimbursement of all outstanding business expenses for which
reimbursement is due.

 

7.2.                              If
the Company terminates this Agreement without cause, or if Employee resigns for
good reason, Employee shall
receive from the Company, as long as Employee does not violate the provisions
of Section 8 hereof, severance pay equal to the remaining months left on
this contract, payable in equal monthly installments from the date of
termination of employment, and all of Employee’s unvested options will vest and
will be exercisable as provided in the ISOP Agreement.  Employee is also entitled to all salary and
bonuses earned as of the date of termination and reimbursement of all
outstanding business expenses for which reimbursement is due.  At the option of the Company, the payments
due hereunder may be paid in a lump sum rather than in installments.

 

7.3.                              If
Employee’s employment is terminated as a result of his death, the Company shall
pay Employee’s spouse or estate, all salary and bonuses earned as of the date
of termination and reimbursement of all outstanding business expenses for which
reimbursement is due.

 

8.                                       Covenants and Conditions.

 

8.1.                              Confidentiality.  Employee
acknowledges that during the course of Employee’s employment with the Company,
Employee will be exposed to and have access to confidential and proprietary
information including trade secrets concerning the business and affairs of the
Company.  Employee acknowledges that such
confidential and proprietary information has been and will continue to be of
central importance to the Company and that disclosure of it to or its use by
others could cause substantial loss to the Company.  Employee acknowledges that the Company
developed such confidential and proprietary information for its exclusive use
and benefit and it is an exclusive, confidential, and proprietary asset of the
Company.  Accordingly, Employee agrees as
follows:

 

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Employee,
except with the prior written consent of the Company or as may be required by
law or any legal process, will not, at any time during or after employment, use
(except in connection with employment by the Company) or disclose to any person
or entity any confidential or proprietary information of the Company which was
obtained by Employee as a result of Employee’s employment with the Company, and
shall hold all of the same confidential. 
For purposes of this Agreement, “confidential or proprietary information”
means information, whether written or otherwise, which has a business purpose
and is not known or generally available from sources outside the Company,
concerning, among other things, (a) the Company’s business operations,
internal structure, and financial affairs, including, but not limited to, its
distributors, customers, products, endorsers, celebrities and affiliates,
services, employees, forecasts, sales and marketing methods, costs,
inventories, and sources of supply; (b) the current, prospective, or past
distributors or customers of the Company, their buying habits, and the prices
at which products are offered or sold to them; (c) past, present, or
future contracts held by the Company respecting the business or operations of
the Company or distributors or customers, or suppliers of the Company; (d) the
work performed by Employee for the Company; and (e) all other compilations
of information which relate to the business of the Company.

 

The
restrictions and obligations in this Section 8.1 shall survive in
perpetuity the termination of this Agreement and the termination of Employee’s
employment by the Company.

 

8.2.                              Company
Property.  All contracts, agreements, financial books, records,
instruments and documents; distributor lists, customer lists, memoranda, data,
reports, programs, software, tapes; rolodexes; telephone and address books;
research; bids; proposals; drawings; print-outs; graphs; listings; programming;
and any other instruments, records, or documents relating or pertaining to (a) distributors
or customers of the Company; (b) any employee or independent contractor of
the Company; (c) suppliers of the Company; (d) athlete and celebrity
endorsers of the Company, or (e) the services rendered by Employee to the
Company, or in connection with the Company business (collectively the “Records”),
shall at all times be and remain the property of the Company.  Except as authorized by the Company, Employee
agrees not to retain or carry away from the premises of the Company any
Records, copies of Records, equipment, or any other materials or matter of any
kind which are the property of the Company. 
Upon the termination for any reason of employment with the Company,
Employee shall immediately turnover to the Company all Records, copies of any
Records, equipment, and other materials or matter which are in Employee’s
possession or control and which are the property of the Company.

 

8.3.                              Developments.  Employee acknowledges that all designs,
drawings, graphs, sketches, print-outs, formulas, software, inventions,
discoveries, innovations, new technology, endorsement relationships or other
developments (collectively called “Developments”) conceived or developed by
Employee during the term of employment, which Developments are related in any
way to the business of the Company then being

 

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conducted or proposed to be conducted by
the Company or to the business of any distributor or customer or prospective
distributor or customer of the Company, are and will be the exclusive property
of the Company, and shall be subject to the provisions of Section 8.1 of
this Agreement.  Employee will promptly
notify the Company of any such Developments. 
Employee shall, when appropriate and upon request of the Company,
actively assist the Company in executing all papers and performing all other
lawful acts which the Company deems necessary or advisable for the securing of
legal protection for any such Developments, whether through patent, copyright,
or any other means.  Employee further
agrees that, upon request of the Company, and at no charge, Employee will
assign any rights arising out of such Developments to the Company.

 

8.4.                              Papers,
Drawings, and Other Documents.  Employee agrees not to make or
permit to be made, except in the pursuance of employment duties under the terms
of this Agreement and for the sole use and account of the Company, any copies,
abstracts, or summaries of any designs, papers, drawings, or any other
documents of any kind which may come into Employee’s possession and which
relate or refer to the Company or its business. 
Employee grants to the Company all rights to possession and all title in
and to any such designs, papers, drawings, or other documents, or copies,
abstracts, or summaries thereof, which come into the possession of Employee
within the period of employment by the Company and which relate or refer to the
Company’s business.  Notwithstanding
anything herein to the contrary, Employee may retain any course materials
Employee obtains from attending private or college courses or seminars.  If the Company desires a copy of such
materials, Employee shall provide it to the Company for copying, at the Company’s
expense, upon reasonable notice to Employee.

 

8.5.                              Security
Regulations.  Employee agrees to abide by the Company’s personnel
policies and all security regulations and rules of employment adopted by
the Company from time to time.

 

8.6.                              Covenant
Not to Compete.  Employee agrees that
during the term of this Agreement he will not (except through the ownership of
not more than 5% of the securities of an entity listed on the NASDAQ Stock
Market or a national securities exchange), directly or indirectly, as a
proprietor, director, officer, employee, partner, stockholder, consultant,
owner or otherwise, render services to or participate in the affairs of any
Competitive Business.  A “Competitive
Business” shall mean any business that engages in the manufacturing, selling,
marketing, developing, packaging, or distributing of vitamins, nutritional
supplements or any other product being manufactured, sold, developed, marketed
or distributed by the Company, in any geographic area in which the Company has
business or distributor operations at the time of Employee’s termination of
employment.

 

8.7.                              Nonsolicitation
of Employees.  Employee agrees that
during the term of this Employment and for a period of 12 months following
termination of this Agreement, Employee will not (except on behalf of the
ownership of not more than 5% of the securities of any entity listed on the
NASDAQ Stock Market or a national securities exchange), directly or indirectly,
as proprietor, director, officer, employee, partner, stockholder, consultant,

 

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owner or
otherwise, solicit or attempt to solicit the employment of, hire, or assist or
participate in any manner in the hiring or recruitment of any employee or
independent contractor employed or retained by the Company, or any former
employee or independent contractor whose employment or retention by the Company
has ceased within six months prior to the date of such solicitation, hire or
other involvement in the hiring or recruitment or such persons.

 

8.8.                              Scope
and Reasonableness.  The parties to this Agreement expressly
agree and contract that it is not their intention to violate any policy,
statute or common law.   The parties to
this Agreement agree that the limitations contained in Section 8 with
respect to time, geographical area, and scope of activity are
reasonable.  However, if any court shall
determine that the time, geographical area, or scope of activity of any
restriction contained in Section 8 is unenforceable, it is the intention
of the parties that such restrictive covenant set forth herein shall not
thereby be terminated but shall be deemed amended to the extent required to
render it valid and enforceable.

 

8.9.                              Remedies
for Breach.  The parties acknowledge that breach of Section 8
of this Agreement by Employee will result in immediate, substantial, and
irreparable harm to the Company.  The
parties therefore agree that the Company shall have, in addition to any remedy
available to it at law or in equity, the right to enforce the terms of Section 8
of this Agreement by the remedy of specific performance or injunction upon
proper application to a court of competent jurisdiction.  Employee agrees that the Company does not
need to post a bond to obtain an injunction and waives Employee’s rights to
require such a bond.

 

9.                                       Representations of Employee.  Employee
hereby represents and warrants that as of the date hereof, Employee is not a
party to any agreement, contract, or understanding, and that no facts or
circumstances exist that would in any way restrict or prohibit Employee from
undertaking or performing any of Employee’s obligations under this
Agreement.  Furthermore, Employee
understands and acknowledges that Employee may have confidentiality obligations
to prior employers under common law, statute, or contract.  Employee represents and warrants that in the
course of rendering services to the Company, Employee will not use or otherwise
disclose any confidential or proprietary information obtained by Employee in
connection with any prior employment. 
Employee shall indemnify and hold the Company harmless from any claims,
demands, costs, or liabilities (including attorneys’ fees and disbursements)
incurred by the Company in connection with or resulting from Employee’s breach
of the representations set forth in this Section 9.

 

10.                                 Assignment.  Employee’s
obligations and duties under this Agreement are personal in nature.  Employee shall not, without the consent of
the Company, assign or transfer this Agreement or any rights or obligations
hereunder.  The Company may assign this
Agreement, or any benefit, duty, or obligation under
this Agreement.

 

11.                                 Construction.  The titles
appearing herein are used for purposes of convenience only and shall in no way
change the meaning of this Agreement.

 

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12.                                 Notices.   All notices,
requests, demands, consents, and other communications which are required or may
be given under this Agreement (collectively, the “Notices”) shall be in writing
and shall be deemed received (a) if given by facsimile, when transmitted,
and confirmation received, if transmitted on a business day before 5:00 p.m.
local time and, otherwise, on the next business day following transmission; (b) if
given by email, when transmitted, if transmitted on a business day before 5:00 p.m.
local time and, otherwise, on the next business day following transmission; (c) if
given by certified mail, return receipt requested, postage pre-paid, three
business days after being deposited in the United States mail; (d) if
given by a nationally recognized overnight courier service, one business day
after being so deposited; and (e) if personally delivered, when received
or personally delivered.  The mailing
address, facsimile number, and email address of the parties are as follows:

 

If to
Employee, address to:

 

Douglas Ridley

At his home
address, email address or fax number

most recently on file with the Company

 

If to Company,
address to:

 

Vitacube
Systems Holdings, Inc.

408 S. Holly
Street

Denver,
CO  80246

Facsimile:  303-316-4116

Email:  marypat@v3s.com

 

Any party may, from time to time, specify a different
address or facsimile number by giving Notice in accordance with this section.

 

13.                                 Entire Agreement.  This Agreement
constitutes the full and complete understanding and agreement of the parties,
supersedes all prior understandings and agreements as to the employment of
Employee, and cannot be amended, changed, modified, or terminated without the
consent, in writing, of the parties hereto.

 

14.                                 Non-Waiver.  The waiver by
either party of a breach of any term of this Agreement shall not operate or be
construed as a waiver of any subsequent breach thereof.

 

15.                                 Severability.  If any of the
provisions of this Agreement shall be or become invalid or illegal under any
provision of applicable law or for any other reason, the remainder of the
Agreement shall not be affected and shall remain in full force and effect.

 

16.                                 Governing Law - Venue.   THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF COLORADO (WITHOUT REGARD TO ITS RULES OF CONFLICTS OF LAWS).

 

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17.                                 Arbitration.  Any dispute relating to this Agreement,
or to the breach of this Agreement, except such as may concern Section 8,
arising between Employer and Employee, shall be settled by arbitration in
accordance with the commercial arbitration rules of the American
Arbitration Association (“AAA”), which arbitration may be initiated by any
party hereto by written notice to the other of such party’s desire to arbitrate
the dispute.  The arbitration proceedings
shall take place in Denver, Colorado, and shall be administered by AAA.
Colorado’s Uniform Arbitration Act of 1975, C.R.S. §13-22-201 et
seq. as amended, shall govern any arbitration under this Agreement.  Employer’s right to equitable relief set
forth in Section 8 may be brought and enforced in any court of competent
jurisdiction.  Employee agrees and
consents to the District Court of the City and County of Denver, State of
Colorado, having jurisdiction over any such dispute.

 

18.                                 Counterparts; Facsimiles.   This Agreement may be executed in
counterparts, each of which shall be deemed an original and which together
shall constitute a single instrument. 
This Agreement may be executed and delivered by facsimile transmission,
all with the same force and effect as if the same was a fully executed and
delivered original manual counterpart

 

[ signatures appear on
following page ]

 

10

 

Dated as of the day and year first above
written.

 

 

	
   

  	
  VITACUBE SYSTEMS HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Earnest Mathis Jr

  	
   

  
	
   

  	
        Earnest
  Mathis Jr., Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
     /s/ Douglas Ridley

  	
   

  
	
   

  	
  Douglas
  Ridley

  

 

11Exhibit 10.1

 

 

Dyax
Corp.

300
Technology Square

Cambridge,
MA 02139

 

CONFIDENTIAL DOCUMENT 

 

May 31, 2005

 

Thomas Beck, M.D.

345 Silver Hill Road

Concord, MA 01742

 

Dear Tom,

 

On behalf of Dyax Corp.,
this letter will confirm our offer of employment to you for the position of
Executive Vice President, Business and Product Development.  The terms of our offer are as follows:

 

Supervision:

 

You will be reporting
directly the Company’s Chief Executive Officer.

 

Responsibilities:

 

As Executive Vice
President, Business and Product Development, you will be responsible for (i) supervising
and managing the strategic operation of the Clinical, Development, Program
Management and Business Development departments, and (ii) such other
duties as the Company’s Chief Executive Officer and/or Board of Directors shall
designate.  All such duties shall be
performed and discharged, faithfully, diligently and to the best of your
ability and in compliance with all applicable laws and regulations.  In performing these duties, you agree to
devote substantially all of your working time and efforts to the business and
affairs of Dyax and its affiliates.

 

Notwithstanding anything
to the contrary contained herein or elsewhere, you will be permitted to serve
as a member of the Board of Directors of one or more other companies, provided
that (i) you obtain prior approval from the Company’s Chief Executive
Officer and (ii) such service does not materially affect the performance
of your duties to the Company.

 

On or before December 31,
2005, you will meet with the Company’s Chief Executive Officer to evaluate the
status and progression of your domain and responsibilities and set mutually
agreeable goals for the future.

 

Salary
and Bonus:

 

As an exempt employee you
will receive an annual salary of $300,000 to be paid in accordance with the
Company’s standard payroll practice. 
Currently, our payroll is paid on a bi-weekly basis.  In addition to your base salary, you will be
eligible to receive an annual bonus for up to forty percent (40%) of your base
salary following the completion of each calendar year during the term of your
employment.  Bonus eligibility and
amounts will be subject to the attainment of specific individual and corporate
objectives that will be determined by you and the

 

 

Company’s Chief Executive
Officer, and approved by of the Compensation Committee of the Board of
Directors.  For the calendar year ending December 31,
2005, you will be eligible to receive a pro-rated proportion of this bonus for
your service during the remainder of this year.

 

Stock
Options:

 

Subject to approval by
the Compensation Committee, Dyax agrees to grant you an Incentive Stock Option
for the purchase of 100,000 shares of Dyax common stock at a purchase price
equal to the fair market value of the stock on the grant date, which will be
your first day of employment.  The
options will be subject to the provisions of the Company’s 1995 Equity Incentive Plan (the “Plan”)
and the Stock Option Award Agreement to be entered into by you and the Company
following approval of the grant, which in relevant part will require that such
options (i) vest in equal quarterly installments over four years; (ii) expire
in 10 years; and (iii) may be exercised (as to the vested portion) for
ninety (90) days following the termination of your employment.  Additionally, as a performance incentive to
you, if the Company is successful in achieving its goal of dosing a patient in
a pivotal, placebo-controlled Phase III clinical trial of DX-88 for
hereditary angioedema (HAE) prior to the end of 2005, 20% of the shares
underlying the option granted to you (i.e. 20,000 shares) will become
immediately vested and exercisable by you.

 

Benefits:

 

You will be eligible to
participate in the Company’s employee benefits in the same manner provided
generally to the Company’s senior executives, including health and dental
insurance, 401(k) savings plan, disability insurance and life insurance.  A package describing these benefits is
enclosed.

 

As a senior executive,
you will also be subject to coverage under the Company’s Directors and Officers
(D&O) insurance policy, a copy of which will be provided to you upon
request.  In addition, please be aware
that the Company’s by-laws require that the Company shall, to the fullest
extent permitted by the General Corporation Law of the State of Delaware (the
state in which Dyax was incorporated), indemnify each person who was or is a
party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative, by reason of the fact that he is or was, or has agreed to
become, a director or officer of the Company.

 

Vacation:

 

Initially, you will receive twenty (20) days of vacation and continue to accrue
one additional day for each year of employment, up to a maximum of thirty (30)
days of vacation per year in accordance with the Company’s vacation
policy.  In addition, should you become
ill, you shall be allowed up to five (5) paid sick days, provided that any
unused sick days shall not to be carried over from year to year and shall not
to be cashed out upon termination.

 

Termination and Severance:

 

All employees at Dyax are
employed at will.  “Employment at will”
refers to the traditional relationship between employer and employee, allowing
either party to unilaterally terminate the employment relationship.  While we ask that all senior executives
provide at least ninety (90) days prior notice, you will be free to resign at
any time.  Similarly, the Company
reserves the right to terminating your employment at any time, with or without
cause and with or without prior notice.

 

2

 

However, in the event you
are terminated by the Company without “cause,” Dyax agrees to pay you your
monthly base salary for a minimum of six (6) months as severance.  All bonuses that have been earned for a
completed calendar year and all accrued vacation time shall be paid upon
termination.  Medical and dental benefits
shall continue during the period when you are receiving severance.  Other than your rights under COBRA, all other
benefits and vesting of your stock options will terminate as of your date of
termination.  You will also be eligible
to receive this severance package if, following your meeting with the Chief
Executive Officer on or before December 31, 2005, you elect to resign
within thirty (30) days due to an inability to reach a mutual understanding
with the Company as to the progression of your domain and responsibilities and
goals for the future.

 

If your employment is
terminated for “cause” by the Company or is terminated by you for any reason,
your compensation, benefits, and stock option vesting shall cease as of the
termination date.  For purposes of this
offer, “cause” shall mean:

 

(i)            the
willful and continued failure by you substantially to perform your duties with
the Company (other than any such failure resulting from your incapacity due to
physical or mental illness or any failure resulting from your terminating your
employment following a material diminution of your title or duties to the
Company), as determined by the Board of Directors;

 

(ii)           gross
misconduct or the commission of any act of dishonesty or moral turpitude in
connection with your employment, as determined by the Board of Directors; or

 

(iii)          the
conviction of a felony or a crime involving moral turpitude.

 

Change of
Control Agreement:

 

Additionally, the Company
has agreed to provide you with additional benefits in the event your employment
within the Company is terminated after a “change in control” on the same terms
as has previously been offered to other senior executives of the Company.  A copy of the letter containing such terms
(the “Change of Control Agreement”) is enclosed for your review.

 

Confidentiality Agreement:

 

You will be required to sign the Company’s Standard Employee
Confidentiality Agreement on or before your first day of work.  A copy is enclosed for your review.  The Confidentiality Agreement obligates you
not to disclose confidential information you may learn during your employment
with the Company, to assign to the Company rights in inventions or other
intellectual property developed in the course of your employment and not to
solicit employees or business away from the Company for a period of one year
following any termination of your employment.

 

Additional
Documents:

 

You will be also be
required to a Certificate of Acknowledgment under which you acknowledge that
you have read and agree to comply with the Company’ s Corporate
Communications, Disclosure and Insider Trading / Reporting Policy,
the Company’ s Code of Ethics and the Audit Committee Procedures for Handling Complaints .  A copy of each of these documents is also
enclosed.

 

3

 

If this offer letter
correctly sets forth our agreement on the subject matter hereof, kindly sign
and return to Dyax the enclosed copy of this letter, along with the Change of
Control Agreement and Confidentiality Agreement referenced above.  Such documents will then constitute the
complete agreement with respect to your employment by the Company, and will
supercede all prior oral or written agreements relating to such matters.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Henry E. Blair

  	
   

  
	
   

  	
  Henry E. Blair

  
	
   

  	
  Chairman,
  President and CEO

  

 

 

I acknowledge receipt and
agree with the foregoing terms and conditions.

 

 

	
  /s/ Thomas Beck, M.D.

  	
   

  
	
  Thomas Beck,
  M.D.

  

 

4

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