Document:

Exhibit
10.1

ImmunoGen, Inc.

 

Compensation Policy for
Non-Employee Directors

 

Objective

 

It is the objective of ImmunoGen to compensate
non-employee Directors in a manner which will enable recruitment and retention
of highly qualified Directors and fairly compensate them for their services as
a Director.

 

Cash Compensation (effective November 12, 2009)

 

	
  Annual meeting fee for non-employee Directors:

  	
  $35,000 per annum, paid quarterly

  
	
   

  	
   

  
	
  Additional annual fees:

  	
   

  
	
   

  	
   

  
	
  (a)  Lead Director / Chairman of the Board:(1)

  	
  $30,000 per annum, paid quarterly

  
	
   

  	
   

  
	
  (b)  Chairman of the Audit Committee:

  	
  $15,000 per annum, paid quarterly

  
	
   

  	
   

  
	
  (c)  Chairman of the Compensation Committee:

  	
  $9,000 per annum, paid quarterly

  
	
   

  	
   

  
	
  (d)  Chairman of the G&N Committee:

  	
  $9,000 per annum, paid quarterly

  
	
   

  	
   

  
	
  (e)  Other members of the Audit Committee

  	
  $8,000 per annum, paid quarterly

  
	
   

  	
   

  
	
  (f)  Other members of the Compensation Committee

  	
  $5,000 per annum, paid quarterly

  
	
   

  	
   

  
	
  (g)  Other members of the G&N Committee

  	
  $5,000 per annum, paid quarterly

  

 

Directors are entitled to be reimbursed for their
reasonable expenses incurred in connection with attendance at Board and
committee meetings during their tenure as a Director.  Any reimbursement in one calendar year shall
not affect the amount that may be reimbursed in any other calendar year and a
reimbursement (or right thereto) may not be exchanged or liquidated for another
benefit or payment.  Any business expense
reimbursements subject to Section 409A of the Internal Revenue Code of
1986 shall be made no later than the end of the calendar year following the
calendar year in which such business expense is incurred by the Director.

 

Quarterly
payments shall be paid in arrears within 30 days following the end of each
quarter, with the first payments under this policy to be made in January 2010
with respect to service during the quarter ended December 31, 2009.(2) 
A non-employee Director may elect to 

 

	
  (1)

  	
  Payable to non-employee
  Chairman of the Board only.

  
	
  (2)

  	
  The January 2010
  payment will be pro-rated to reflect service from November 12, 2009
  through December 31, 2009. Thereafter, quarterly payments will be paid
  in arrears based on calendar quarters. Quarterly payments will be
  appropriately pro-rated for Directors who retire, resign or are otherwise removed
  from the Board prior to the end of a calendar quarter.

  

 

 

receive any or all of his or her cash
compensation in the form of deferred stock units (“DSUs”) having an aggregate
Fair Market Value equal to the amount deferred, measured on the date of grant
which shall be the last day of the calendar quarter for which the retainer is
being paid.  Elections made under the
2004 Non-Employee Director Compensation and Deferred Share Unit Plan, as
amended, for calendar year 2009 shall continue to be effective with respect to
services during the quarter ended December 31, 2009.  All other elections as to form of payment
shall be made annually by December 31st of the year
prior to service which election shall be effective for all payments to be made
in the following calendar year.  New
non-employee Directors shall make their elections within 30 days of their
initial appointment or election to the Board of Directors for all payments to
be made in that calendar year.  Any such
election shall be prospective only for compensation attributable to services
performed after the effective date of such election and any amounts
covered by such election shall be prorated as necessary.  Each non-employee Director shall be deemed to
have elected to receive payments in cash for payments in periods prior to any
such election or if no timely election shall have been made.  Notwithstanding the foregoing, a previous
election made by a non-employee Director pursuant to the 2004 Non-Employee
Director Compensation Deferred Share Unit Plan or under this policy shall
remain in effect for subsequent calendar years until it is changed by the
completion, signature and delivery to the Company of a new election form, in
accordance with the terms of this policy.

 

Upon making such election, DSUs shall be granted as
described above without any further action by the Compensation Committee.  These awards are fully vested as to all of
the issued DSUs on the date of grant.

 

Equity Compensation (effective November 11, 2009)

 

(a)  Initial Grant.  New non-employee Directors will automatically
be granted, without any further action by the Compensation Committee, DSUs
having an aggregate fair market value of $65,000 (rounded down to the nearest
whole share), measured on the date of grant which shall be the date of their
initial election or appointment to the Board. 
This award will vest pro rata, on a quarterly basis over a three-year
period, as to eight and one-third percent (8-1/3%) of the issued DSUs (rounded
down to the nearest whole share) per quarter with the first vesting date to be
the date that is the first day of the third month following the month in which
the date of grant occurs.

 

(b)  First Anniversary Grant.  On the first anniversary of a non-employee Director’s
initial election or appointment to the Board, such non-employee Director will
automatically be granted, without any further action by the Compensation
Committee, a number of DSUs having an aggregate fair market value of $30,000
(rounded down to the nearest whole share), measured on the date of grant which
shall be the date of such first anniversary and pro-rated based on the number
of whole months remaining between the first day of the month in which such
first anniversary date occurs and the first October 31 following the date
of grant (the “Monthly Amount”).  This
award will vest on the same schedule as the Continuing Director Grants awarded
pursuant to paragraph (c) below; provided that in all cases the last
vesting date of a First Anniversary Grant shall be the first November 1
following the date of grant.  The number
of 

 

2

 

issued
DSUs that shall vest on any particular date shall be equal to the number of
months in each vesting period based on the Monthly Amount calculation.(3)

 

(c)  Continuing Director Grants.  After receiving a First Anniversary Grant under
paragraph (b), non-employee directors will automatically be granted, on an
annual basis and without further action by the Compensation Committee, DSUs
having an aggregate fair market value of $30,000 (rounded down to the nearest
whole share), measured on the date of grant which shall be the earlier of the
date of ImmunoGen’s annual meeting of shareholders or November 20 of the
applicable year.  These awards will vest
pro rata, on a quarterly basis over a one-year period, as to twenty-five
percent (25%) of the issued DSUs (rounded down to the nearest whole share) per
quarter on each of February 1, May 1, August 1 and November 1
following the date of grant.  If a
non-employee director receives a First Anniversary Grant under paragraph (b) above
between November 1 and November 20 of any year, then such
non-employee director will not be eligible to receive a Continuing Director
Grant under this paragraph (c) for that year.(4)

 

(d)  Terms of Grant.  All DSU awards to non-employee directors
under this policy are granted under the 2006 Employee, Director and Consultant
Equity Incentive Plan (the “2006 Plan”), and are subject to the terms and
conditions set forth in the 2006 Plan and the form of Deferred Stock Unit
Agreement attached hereto as Exhibit A. All capitalized terms that are not
defined herein shall have the meanings set forth in the 2006 Plan.

 

Approved
by the Board of Directors: November 11, 2009

 

	
  (3)

  	
  For example, if an award is granted on April 15, the amount of
  the award will be 7/12 of the full-year award (April through October)
  and such award will vest on May 1 as to 1/12 of the full-year award,
  August 1 as to 3/12 of the full-year award and November 1 as to
  3/12 of the full-year award.

  
	
  (4)

  	
  Any director who transitions from an employee director to a
  non-employee director without a break in service shall not be eligible to
  receive an award of DSUs under paragraphs (a) or (b), but shall be
  eligible to receive awards under paragraph (c), beginning with the first
  annual meeting of shareholders on or after which such director ceases to be
  an employee of the Company.

  

 

3

 

EXHIBIT A

 

DIRECTOR DEFERRED STOCK UNIT AWARD AGREEMENT

 

UNDER THE IMMUNOGEN, INC.

2006 EMPLOYEE, DIRECTOR AND CONSULTANT EQUITY INCENTIVE
PLAN AND THE COMPENSATION POLICY FOR NON-EMPLOYEE DIRECTORS

 

Name of Grantee: 

No. of Deferred Stock Units Granted: 

Grant Date:

 

Pursuant to the ImmunoGen, Inc.
2006 Employee, Director and Consultant Equity Incentive Plan (the “Plan”) and
the Compensation Policy for Non-Employee Directors in effect on the date
hereof, ImmunoGen, Inc. (the “Company”) hereby grants a deferred stock
unit award consisting of the number of deferred stock units listed above (an “Award”)
to the Grantee named above.  Each
deferred stock unit shall relate to one share of Common Stock, par value $.01
per share (the “Stock”) of the Company, subject to the restrictions and
conditions set forth herein and in the Plan.

 

1.             Restrictions on Transfer of Award.  The Award
shall not be sold, transferred, pledged, assigned or otherwise encumbered or
disposed of by the Grantee, until (i) the deferred stock units have vested
as provided in Section 2 of this Agreement, (ii) the Grantee shall
have ceased to be a member of the Company’s Board of Directors for any reason
and (iii) shares of Stock have been issued pursuant to Section 4 of
this Agreement.

 

2.             Vesting of Award.  The Award shall vest in
accordance with the schedule set forth below, provided in each case that the
Grantee is then, and since the Grant Date has continuously been, a member of
the Company’s Board of Directors.

 

	
  Incremental (Aggregate)

  Number of

  Deferred Stock Units Vested

  	
   

  	
  Vesting Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Notwithstanding the foregoing, all unvested deferred stock units shall
vest immediately prior to the occurrence of a Change of Control (as defined in
the Plan).

 

3.             Forfeiture.  In the event the Grantee ceases to be a
member of the Company’s Board of Directors prior to the applicable vesting
dates, all deferred stock units that have not vested as of the Grantee’s
cessation of service on the Board of Directors shall be immediately forfeited
to the Company.

 

 

4.             Receipt of Shares of Stock.

 

(a)           Within 30 days following the date on
which the Grantee ceases to be a member of the Company’s Board of Directors for
any reason, the Company shall issue to the Grantee in book entry form the
number of shares of Stock equal to the number of vested deferred stock units
pursuant to Section 2 of this Agreement in satisfaction of the Award.

 

(b)           In each instance above, the issuance
of shares of Stock shall be subject to the payment by the Grantee by cash or
other means acceptable to the Company of any federal, state, local and other
applicable taxes required to be withheld in connection with such issuance in
accordance with Section 7 of this Agreement.  The Grantee understands that once shares have
been delivered by book entry to the Grantee in respect of the deferred stock
units, the Grantee will be free to sell such shares of Stock, subject to
applicable requirements of federal and state securities laws.

 

(c)           Until such time as shares of Stock
are issued to the Grantee pursuant to Section 4(a) the Grantee shall
have no rights as a stockholder with respect to any shares of Stock underlying
the Award, including, but not limited to any voting rights, provided however,
that when and if any cash dividends or other distributions are paid with
respect to the shares of Stock underlying the Award such amounts shall accrue
and be converted into additional deferred stock units based on the Fair Market
Value of the common stock on any such dividend payment or distribution date
(with any such fractions of deferred stock units computed to four decimal
places rounded down) and any such additional deferred stock units shall be
subject to the same conditions and restrictions as are the deferred stock units
with respect to which they were paid.

 

(d)           If any of the benefits or
the delivery of shares of Stock set forth in this Award or the Plan are
deferred compensation under Section 409A of the Code, any termination of
services triggering payment of such benefits must constitute a “separation from
service” under Section 409A of the Code before, subject to subsection (e) below,
distribution of such benefits can commence or the delivery of shares of Stock
can occur.   For purposes of
clarification, this paragraph shall not cause any forfeiture of benefits on the
part of the Grantee, but shall only act as a delay until such time as a “separation
from service” occurs.

 

(e)           Notwithstanding anything to the
contrary herein or in the Plan, if the Grantee is a “key employee” (as defined
in Section 409A of the Code) as of the date the Grantee ceases to be a
member of the Company’s Board of Directors, any issuance of Stock upon a
termination of services shall, to the extent this requirement of Section 409A
of the Code is applicable to this Award, be delayed to the extent necessary to
avoid the imposition of excise taxes or other penalties under Section 409A
of the Code until the date which is the first business day after six (6) months
have elapsed since the Grantee is no longer providing service for any reason
other than death.

 

5.             Incorporation of Plan.  Notwithstanding
anything herein to the contrary, this Agreement shall be subject to and
governed by all the terms and conditions of the Plan, including the powers of
the Administrator set forth in paragraphs 4 and 24 of the Plan.  Capitalized terms in this Agreement shall
have the meaning specified in the Plan, unless a different meaning is specified
herein.  The Grantee acknowledges receipt
of a copy of the Plan.

 

5

 

6.             Transferability of this Agreement.  This Agreement
is personal to the Grantee, is non-assignable and is not transferable in any
manner, by operation of law or otherwise, other than by will or the laws of
descent and distribution.

 

7.             Tax Withholding.  The Grantee shall, not later
than the date as of which the receipt of this Award becomes a taxable event for
Federal income tax purposes, pay to the Company or make arrangements
satisfactory to the Administrator for payment of any Federal, state, and local
taxes required by law to be withheld on account of such taxable event.  The Grantee may elect to have the required
minimum tax withholding obligation satisfied, in whole or in part, by (i) authorizing
the Company to withhold from shares of Stock to be issued, or (ii) transferring
to the Company, a number of shares of Stock with an aggregate Fair Market Value
that would satisfy the withholding amount due. Any reduction in accordance with
the foregoing shall, to the extent applicable, be effected in accordance with Section 409A
of the Code and Treasury Regulation Sections 1.409A-3(j)(4)(vi) or
1.409A-3(j)(4)(xi).

 

8.             No Guarantee of Tax Consequences.  The Company
makes no guarantee of any tax consequences associated with this Award.

 

9.             Notice.  Notice hereunder shall be given to the
Company at its principal place of business, and shall be given to the Grantee
at the address set forth below, or in either case at such other address as one
party may subsequently furnish to the other party in writing.

 

10.           Continuation of Service.  The Award
does not confer upon the Grantee any rights with respect to continuation
of service as a director of the Company.

 

11.           Governing Law.  This Agreement shall be construed and
enforced in accordance with the laws of the Commonwealth of Massachusetts,
without giving effect to the conflict of law principles thereof.

 

12.           Data Privacy.  By entering into this Agreement, the
Grantee:  (i) authorizes the Company
and each Affiliate, and any agent of the Company or any Affiliate administering
the Plan or providing Plan record keeping services, to disclose to the Company
or any of its Affiliates such information and data as the Company or any such
Affiliate shall request in order to facilitate the issuance of the Award and
the grant of shares of Stock and the administration of the Plan; (ii) waives
any data privacy rights he or she may have with respect to such information;
and (iii) authorizes the Company and each Affiliate to store and transmit
such information in electronic form.

 

13.           Counterparts.  This Agreement may be executed in one or more
counterparts, and by different parties hereto on separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

	
   

  	
  IMMUNOGEN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

6

 

The foregoing Agreement is hereby accepted and the
terms and conditions thereof hereby agreed to by the undersigned.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Grantee’s Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Grantee’s name and address:

  
	
   

  	
   

  	
   

  

 

7Exhibit
10.2

 

COPY

 

SEVERANCE AGREEMENT

 

This Agreement is entered
into as of the 17th day of December, 2009 (the “Effective
Date”) by and between ImmunoGen, Inc., a Massachusetts
corporation (the “Company”) and Suzanne Cadden
(the “Executive”).

 

WHEREAS, the Company
recognizes that the Executive’s service to the Company is very important to the
future success of the Company;

 

WHEREAS, the Executive
desires to enter into this Agreement to provide the Executive with certain
financial protection in the event that his employment terminates under certain
conditions following a change in control of the Company; and

 

WHEREAS the Board of
Directors of the Company (the “Board”) has
determined that it is in the best interests of the Company to enter into this
Agreement.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Executive hereby agree as follows:

 

1.             Definitions.

 

(a)           Cause.  For
purposes of this Agreement, “Cause”
shall mean that the Executive has (i) intentionally committed an act or
omission that materially harms the Company; (ii) been grossly negligent in
the performance of the Executive’s duties to the Company; (iii) willfully
failed or refused to follow the lawful and proper directives of the Board or
the CEO; (iv) been convicted of, or pleaded guilty or nolo
contendre, to a felony; (v) committed an act involving moral
turpitude; (vi) committed an act relating to the Executive’s employment or
the Company involving, in the good faith judgment of the Board, material fraud
or theft; (vii) breached any material provision of this Agreement or any
nondisclosure or non-competition agreement between the Executive and the
Company, as all of the foregoing may be amended prospectively from time to
time; or (viii) breached a material provision of any code of conduct or
ethics policy in effect at the Company, as all of the foregoing may be amended
prospectively from time to time.

 

(b)           Change in Control. 
For purposes of this Agreement, a “Change in Control”
shall mean the occurrence of any of the following events; provided  that
“Change in Control” shall be interpreted in a manner, and limited to the extent
necessary, so that it will not cause adverse tax consequences for either party
with respect to Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and Treasury
Regulations 1.409A-3(i)(5), and any successor statute, regulation and
guidance thereto:

 

(i)            Ownership.  Any “Person”
(as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as
defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing 50% or more of the total voting power
represented by the Company’s then outstanding voting securities (excluding for
this purpose any such voting securities held by the Company or its Affiliates
(as defined in the Company’s 2006 Employer, Director and Consultant Equity
Incentive Plan) or by any employee benefit plan of the Company) pursuant to a
transaction or a series of related transactions which the Board does not
approve; or

 

 

(ii)           Merger/Sale of Assets. 
(A) A merger or consolidation of the Company whether or not
approved by the Board, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or the parent of such
corporation) at least 50% of the total voting power represented by the voting
securities of the Company or such surviving entity or parent of such
corporation, as the case may be, outstanding immediately after such merger or
consolidation; or (B) the stockholders of the Company approve an agreement
for the sale or disposition by the Company of all or substantially all of the
Company’s assets; or

 

(iii)          Change in Board Composition.  A change in the composition of the Board, as
a result of which fewer than a majority of the directors are Incumbent
Directors.  “Incumbent Directors” shall
mean directors who either (A) are directors of the Company as of November 11,
2006, or (B) are elected, or nominated for election, to the Board with the
affirmative votes of at least a majority of the Incumbent Directors at the time
of such election or nomination (but shall not include an individual whose
election or nomination is in connection with an actual or threatened proxy
contest relating to the election of directors to the Company).

 

(c)           Disability. 
For purposes of this Agreement, “Disability” shall mean that the Executive (i) is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than
twelve (12) months, or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than
twelve (12) months, receiving income replacement benefits for a period of
not less than three (3) months under a Company-sponsored group
disability plan.  Whether the Executive has a Disability will be
determined by a majority of the Board based on evidence provided by one or more
physicians selected by the Board and approved by the Executive, which approval
shall not be unreasonably withheld.

 

(d)           Good Reason. 
For purposes of this Agreement, “Good Reason”
shall mean the occurrence of one or more of the following without the Executive’s
consent: (i) a change in the principal location at which the Executive
performs his duties for the Company to a new location that is at least forty (40)
miles from the prior location; (ii) a material change in the Executive’s
authority, functions, duties or responsibilities as an executive of the Company, which would cause his position with
the Company to become of less responsibility, importance or scope than his highest
position with the Company at any time from the date of this Agreement to
immediately prior to the Change in Control, provided, however,
that such material change is not in connection with the termination of the
Executive’s employment by the Company for Cause or death or Disability and
further provided that it shall not be considered a material change if the
Company becomes a subsidiary of another entity and the Executive continues to
hold a position in the subsidiary that is at least as high as the highest
position he held with the Company at any time from the date of this Agreement
to immediately prior to the Change in Control; (iii) a material reduction
in the Executive’s annual base salary or (iv) a material reduction in the Executive’s
target annual bonus as compared to the target annual bonus set for the previous
fiscal year.

 

2

 

2.             Term
of Agreement.  The term of this
Agreement (the “Term”) shall commence on the Effective Date and shall continue
in effect for two (2) years; provided, however, that
commencing on second anniversary of the Effective Date and continuing each
anniversary thereafter, the Term shall automatically be extended for one (1) additional
year unless, not later than nine (9) months before the conclusion of
the Term, the Company or the Executive shall have given notice not to extend
the Term; and further  provided, however, that if a Change
in Control shall have occurred during the Term, the Term shall expire on the
last day of the twenty-fourth (24th) month following the month in which such Change in
Control occurred.  Notice of termination
or termination of this Agreement shall not constitute Cause or Good Reason
(both terms as defined above).

 

3.             Termination;
Notice; Severance Compensation.

 

(a)           In the event that within a period of two (2) months
before or two (2) years following the consummation of a Change in
Control the Company elects to terminate the Executive’s employment other than
for Cause (but not including termination due to the Executive’s Disability),
then the Company shall give the Executive no less than sixty (60) days
advance notice of such termination (the “Company’s Notice Period”); provided
that the Company may elect to require the Executive to cease performing
work for the Company so long as the Company continues the Executive’s full
salary and benefits during the Company’s Notice Period.

 

(b)           In the event that within a period of two (2) months
before or two (2) years following the consummation of a Change in
Control the Executive elects to terminate his employment for Good Reason, then
the Executive shall give the Company no less than thirty (30) days and no
more than sixty (60) days advance notice of such termination (the “Executive’s
Notice Period”); provided  that the Company may elect to require
the Executive to cease performing work for the Company so long as the Company
continues the Executive’s full salary and benefits during the Executive’s
Notice Period.  In order to effect a
termination for Good Reason pursuant to this Agreement, the Executive must
notice his intent to terminate for Good Reason not later than ninety (90)
days following the occurrence of the Good Reason.

 

(c)           In the event that within a period of two (2) months
before or two (2) years following the consummation of a Change in
Control the Executive’s employment with the Company is terminated by the
Company other than for Cause (but not including termination due to the
Executive’s death or Disability), or by the Executive for Good Reason, then,
contingent upon the Executive’s execution of a release of claims against the
Company in a form reasonably acceptable to the Company (the “Release”) the Executive shall be
entitled to, in addition to any amounts due to the Executive for services
rendered prior to the termination date:

 

3

 

(i)  the Executive’s
target annual bonus for the fiscal year in which such termination occurs at one
hundred percent (100%) of such target annual bonus, pro-rated by the
number of calendar days in which the Executive is employed by the Company
during the applicable year, including any applicable Notice Period, and less
any amount of the target annual bonus for the applicable year previously paid
to the Executive, which shall be paid no later than sixty (60) days after the
Executive’s termination of employment, provided  that the Release
is executed and effective by then; and

 

(ii)  a lump sum payment from the Company in an
amount equal to one and one-half (1.5) times the Executive’s Annual
Salary, which shall be paid no later than sixty (60) days after the Executive’s
termination of employment, provided  that the Release is executed
and effective by then;

 

(iii)  all outstanding options, restricted
stock and other similar rights held by the Executive, which shall become one
hundred percent (100%) vested; and

 

(iv)  continuation of medical insurance coverage for the Executive
and the Executive’s family, subject to COBRA and subject to the Executive’s
payment of a premium co-pay related to the coverage that is no less favorable
than the premium co-pay charged to active employees of the Company electing the
same coverage, for eighteen (18) months from the Separation Date; provided
that the Company shall have no obligation to provide such coverage if the
Executive fails to elect COBRA benefits in a timely fashion or if the Executive
becomes eligible for medical coverage with another employer.

 

For purposes of this Agreement, “Annual Salary” shall
mean the Executive’s annual base salary then in effect or, if higher, in effect
at the time of the Change in Control, excluding reimbursements and amounts
attributable to stock options and other non-cash compensation; and the “Severance Compensation” shall mean
the compensation set forth in (ii), (iii), and (iv) above.

 

(d)           Notwithstanding any other provision with respect to the
timing of payments, if, at the time of the Executive’s termination, the Executive
is deemed to be a “specified employee” (within the meaning of Code Section 409A,
and any successor statute, regulation and guidance thereto) of the Company,
then limited only to the extent necessary to comply with the requirements of
Code Section 409A, any payments to which the Executive may become entitled
under this Agreement which are subject to Code Section 409A (and not
otherwise exempt from its application) will be withheld until the first (1st) business day of the
seventh (7th) month
following the termination of the Executive’s employment, at which time the Executive
shall be paid an aggregate amount equal to the accumulated, but unpaid,
payments otherwise due to the Executive under the terms of this Agreement.

 

(e)           If any
payment or benefit the Executive would receive under this Agreement, when
combined with any other payment or benefit the Executive receives pursuant to a
Change in Control (“Payment”) would (i) constitute a “parachute payment”
within the meaning of Code Section 280G, and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be either (x) the full amount
of such Payment or (y) such less amount as would result in no portion of
the Payment being subject to the Excise Tax, whichever of the foregoing
amounts, taking into account the applicable federal, state, and local
employments taxes, income taxes, and the Excise Tax results in the Executive’s
receipt, on an after-tax basis, of the 

 

4

 

greater amount of the Payment, notwithstanding that
all or some portion of the Payment may be subject to the Excise Tax.  The Company shall determine in good faith which
payment(s) or benefit(s) to reduce based on what provides the best
economic result for the Executive.  The
Company shall provide the Executive with sufficient information to make such
determination and to file and pay any required taxes.

 

4.             No
Duplication of Compensation.  The
Severance Compensation shall replace, and be provided in lieu of, any severance
or similar compensation that may be provided to the Executive under any other
agreement or arrangement in relation to termination of employment; provided,
however, that this prohibition against duplication shall not be
construed to otherwise limit the Executive’s rights to payments or benefits
provided under any pension plan (as defined in Section 3(2) of the
Employee Retirement Income Security Act of 1974, as amended), deferred
compensation, stock, stock option or similar plan sponsored by the Company.

 

5.             No
Mitigation.  If the Executive’s
employment with the Company terminates following a Change in Control, the
Executive is not required to seek other employment or to attempt in any way to
reduce any amounts payable to the Executive by the Company pursuant to Section 3
or Section 15.  Except as set forth
in Section 4, the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as
the result of employment by another employer, by retirement benefits, by offset
against any amount claimed to be owed by the Executive to the Company, or
otherwise.

 

6.             Confidentiality,
Non-Competition, and Assignment of Inventions.  The Company’s obligations under this
Agreement are contingent upon the Executive’s execution of the Company’s
Proprietary Information, Inventions, and Competition Agreement (the “Proprietary
Information Agreement”).  The parties
agree that the obligations set forth in the Proprietary Information Agreement
shall survive termination of this Agreement and termination of the Executive’s
employment, regardless of the reason for such termination.

 

7.             Enforceability.  If any provision of this Agreement shall be
deemed invalid or unenforceable as written, this Agreement shall be construed,
to the greatest extent possible, or modified, to the extent allowable by law,
in a manner which shall render it valid and enforceable.  No invalidity or unenforceability of any
provision contained herein shall affect any other portion of this Agreement.

 

8.             Notices.  Except as otherwise specifically provided
herein, any notice required or permitted by this Agreement shall be in writing
and shall be delivered as follows with notice deemed given as indicated: (i) 
by personal delivery when delivered personally; (ii) by overnight courier
upon written verification of receipt; (iii) by telecopy or facsimile
transmission upon acknowledgment of receipt of electronic transmission; or (iv) by
certified or registered mail, return receipt requested, upon verification of
receipt.  Notices to the Executive shall
be sent to the last known address in the Company’s records or such other
address as the Executive may specify in writing.  Notices to the Company shall be sent to the
Company’s CEO and Lead Director, or to such other Company representative as the
Company may specify in writing.

 

9.             Claims
for Benefits.  All claims by the
Executive for benefits under this Agreement shall be directed to and determined
by the Board and shall be in writing. 
Any denial by the Board of a claim for benefits under this Agreement
shall be delivered to the Executive in writing and shall set forth the specific
reasons for the denial and the specific provisions of this Agreement relied
upon.  The 

 

5

 

Board shall afford a reasonable opportunity to the
Executive for a review of the decision denying a claim and shall further allow
the Executive to appeal to the Board a decision of the Board within sixty (60)
days after notification by the Board that the Executive’s claim has been
denied.

 

10.           Modifications
and Amendments.  The terms and
provisions of this Agreement may be modified or amended only by written
agreement executed by the Company and the Executive.  The Company and the Executive agree that they
will jointly execute an amendment to modify this Agreement to the extent
necessary to comply with the requirements of Code Section 409A, or any
successor statute, regulation and guidance thereto; provided  that
no such amendment shall increase the total financial obligation of the Company
under this Agreement.

 

11.           Waivers
and Consents.  The terms and
provisions of this Agreement may be waived, or consent for the departure
therefrom granted, only by a written document executed by the party entitled to
the benefits of such terms or provisions. 
No such waiver or consent shall be deemed to be or shall constitute a
waiver or consent with respect to any other terms or provisions of this
Agreement, whether or not similar.  Each
such waiver or consent shall be effective only in the specific instance and for
the purpose for which it was given, and shall not constitute a continuing
waiver or consent.

 

12.           Binding
Effect; Assignment.  The Agreement
will be binding upon and inure to the benefit of (a) the heirs, executors
and legal representatives of the Executive upon the Executive’s death and (b) any
successor of the Company.  Any such
successor of the Company will be deemed substituted for the Company under the
terms of the Agreement for all purposes. 
For this purpose, “successor” means any person, firm, corporation or
other business entity which at any time, whether by purchase, merger or
otherwise, directly or indirectly acquires all or substantially all of the
assets or business of the Company.  None
of the rights of the Executive to receive any form of compensation payable
pursuant to the Agreement may be assigned or transferred except by will or the
laws of descent and distribution.  Any
other attempted assignment, transfer, conveyance or other disposition of the
Executive’s right to compensation or other benefits will be null and void.

 

13.           Governing
Law.  This Agreement and the rights
and obligations of the parties hereunder shall be construed in accordance with
and governed by the law of the Commonwealth of Massachusetts, without giving
effect to the conflict of law principles thereof.

 

14.           Jurisdiction
and Service of Process.  Any legal
action or proceeding with respect to this Agreement shall be brought in the
courts of the Commonwealth of Massachusetts or of the United States of America
for the District of Massachusetts.  By
execution and delivery of this Agreement, each of the parties hereto accepts
for itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts.

 

15.           Attorneys’
Fees.  The Company shall pay to the
Executive all legal fees and expenses incurred by the Executive in disputing in
good faith any issue hereunder relating to the termination of the Executive’s
employment, in seeking in good faith to obtain or enforce any benefit or right
provided by this Agreement.  Such
payments shall be made within five (5) business days after delivery
of the Executive’s written requests for payment accompanied with such evidence
of fees and expenses incurred as the Company reasonably may require.

 

6

 

16.           Withholding.  The Company is authorized to
withhold, or to cause to be withheld, from any payment or benefit under the
Agreement the full amount of any applicable withholding taxes.

 

17.           Tax
Consequences.  The Company does not
guarantee the tax treatment or tax consequences associated with any payment or
benefit arising under this Agreement.

 

18.           Acknowledgment.  The
Executive acknowledges that he has had the opportunity to discuss this matter
with and obtain advice from his private attorney, has had sufficient time to,
and has carefully read and fully understands all the provisions of the
Agreement, and is knowingly and voluntarily entering into the Agreement.

 

19.           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

20.           Section 409A.  The parties hereto intend that this Agreement
comply with the requirements of Code Section 409A and related regulations
and Treasury pronouncements.  If any
provision provided herein results in the imposition of an additional tax under
the provisions of Code Section 409A, the Executive and the Company agree
that such provision will be reformed to avoid imposition of any such additional
tax in the manner that the Executive and the Company mutually agree is
appropriate to comply with Code Section 409A.

 

IN WITNESS WHEREOF, the
parties have executed and delivered this Severance Agreement as of the day and
year first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  IMMUNOGEN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Daniel Junius

  
	
   

  	
  Name: Daniel Junius

  
	
   

  	
  Title: President & Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ Suzanne Cadden

  
	
   

  	
  Name: Suzanne Cadden

  

 

7

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