Document:

EX-10.41 LETTER AGREEMENT, JULY 10, 2003

 

Exhibit 10.41

	 	 	 
	Robert G. Andersen

	 	Phone: 617-679-5517
	Chief Financial Officer and

	 	Fax: 617-679-5542
	Vice President of Operations

	 	e-mail: randersen@hybridon.com

CONFIDENTIAL

July 10, 2003

R. Russell Martin, M.D.

Sr. Vice President of Drug Development

27 High Field Lane

Madison, CT 06443

Dear Russ,

This letter of understanding is intended to finalize our agreement regarding
your transition towards full retirement. Hybridon acknowledges the receipt of
your letter dated May 8, 2003 and the follow-up discussions held on June 16,
2003, and recognizes your desire to move towards retirement from the Company.
Given Hybridon’s current cash situation and the need for continuity in the role
of Chief Medical Officer, the Company is proposing the following terms
regarding your transition.

Transition Term

The transition period begins on July 1, 2003 and extends through the end of
2003.

Job Title

Chief Medical Officer

 

 

			
	R. Russell Martin, M.D.

June 11, 2003

Page 2
	 	CONFIDENTIAL

Compensation

Throughout this period, you shall continue to be reimbursed at your current
salary rate ($250,250.00) and continue to receive all benefits currently
provided, including medical, dental and long-term disability insurance. You
may continue to participate in Hybridon’s 401(k) plan and the Company will
continue to provide a matching contribution to your account, within the
guidelines of the plan. You may also participate in the Company’s Employee
Stock Purchase Plan, up to the maximum permissible amount.

Other Benefits

Hybridon will continue to reimburse you for temporary housing expenses
associated with staying over night in the Boston area on a taxable basis. The
Company will also continue to provide you with a cell phone, phone card and
beeper for business use, and reimburse you for the cost of a high-speed
internet connection for business use. Upon retirement at year-end, ownership
of your laptop computer and installed software will revert to you for your
continuing personal use.

Stock Options

According to our records, you have been granted a total of 394,330 options to
purchase Hybridon common stock, 370,892 of which have already vested. These
options will continue to vest throughout the transition period (two additional
quarters of vesting beyond June 30, 2003) such that 378,705 options would
normally be vested. At the end of your employment, the Company will accelerate
the vesting of the remaining 15,625 options. In consideration of the large
number of options becoming freely exercisable at year-end, the Company agrees
to extend the time these options may be exercised to one year from the date of
your retirement (no earlier than December 31, 2004). Please note that the
Incentive Stock Option (ISO) status of these options will only extend for
approx. three months from the end of your employment with the Company.

On-site Requirements

Throughout the six-month transition period, the Company recognizes your
intention to be off-site for extended periods of time, particularly throughout
the summer months. We are requesting that you plan to be present at out
Cambridge facilities for:

	 	–	 	scheduled Board of Directors meetings (September and December);
	 	–	 	critical team meetings where your presence is deemed essential; and
	 	–	 	meetings of management and/or the Executive Committee, where your
presence is also deemed essential.

 

 

			
	R. Russell Martin, M.D.

June 11, 2003

Page 3
	 	CONFIDENTIAL

In general, it is assumed that most communication can be handled via phone and
email and your on-site presence can be significantly reduced from your present
commitment.

Responsibilities

Detailed in Exhibit A, attached.

Confidentiality

You would continue to be bound by the Confidentiality and Non-Disclosure
Agreement currently in effect between you and the Company.

Russ, we appreciate your willingness to continue to fulfill a critical role
for Hybridon throughout this transition period. If you are in agreement with
the above provisions, please so acknowledge by signing this document in the
space provided below.

Sincerely,

	 	 	 	 
	/s/ Robert G. Andersen

	 	July 10, 2003	 
	
 

	 	
 	 
	Hybridon, Inc.

	 	Date	 
	Robert G. Andersen
	 	 	 
	Chief Financial Officer and
	 	 	 
	Vice President of Operations
	 	 	 

Agreed and acknowledged,

	 	 	 	 
	/s/ R. Russell Martin, M.D.

	 	July 10, 2003	 
	
 

	 	
 	 
	R. Russell Martin, M.D.

	 	Date	 

 

 

Attachment to Letter of Understanding dated June 11, 2003

CONFIDENTIAL

Exhibit A

Responsibilities: R. Russell Martin, M.D.

(July 1, 2003 – December 31, 2003)

	•	 	Position: Chief Medical Officer
	 
	•	 	Regulatory

	 	–	 	Act as Senior Regulatory Officer for the Company.

	•	 	Clinical

	 	–	 	Continue to act as Hybridon’s Medical Monitor for all ongoing or
new HYB2055 or GEM®231 clinical studies.
	 	–	 	Provide study design evaluation for all clinical studies.
	 	–	 	Provide study data evaluation and interpretation for all ongoing
or new clinical studies.
	 	–	 	Supervise the collection and evaluation of data for all Serious
Adverse Events occurring during the ongoing or new studies.

	•	 	Administrative

	 	–	 	Complete six-month review process for Ms. Terry Burns, Manager,
Clinical Research.

 

 

Amendment to the Letter of Understanding

with Dr. R. Russell Martin

December 31, 2003

This amendment extends the provisions of the Letter of Understanding between
Dr. Russell Martin and Hybridon, Inc., dated July 10, 2003, as follows:

Transition Term

The term of the agreement is extended for an additional 3 months, from the end
of 2003 until March 31, 2004.

Compensation

Continues at the current salary rate for an additional 3 months. A cash bonus
for the year 2003 in the amount of $10,000 has been paid on Dec. 31, 2003.
Unused vacation from 2003 (approx. 200 hours) shall be compensated in the
amount of $24,000 and paid in three installments of $8,000 each, one payment
per month for the remaining three months covered by the agreement. Other
provisions remain unchanged.

Other Benefits

Continue unchanged

Stock Options

Stock options for the year 2003 have been awarded in Dec. 2003 (15,000 options)
and shall be fully vested and available for exercise on April 1, 2004. The
time over which all options may be exercised shall be extended from Dec. 31,
2004 until March 31, 2005.

On-Site Requirements

The Board of Directors meeting scheduled for March 2004 is added to the list of
required meetings.

Responsibilities

Continue unchanged

Agreed and acknowledged,

	 	 	 	 	 	 	 
	/s/ R. Russell Martin

	 	January 7, 2004	 	/s/ Robert G. Andersen
	 	January 7, 2004
	
 

	 	
 
	 	
 
	 	
 
	R. Russell Martin, M.D.

	 	Date
	 	Hybridon, Inc.
	 	Date
	Chief Medical Officer

	 	 	 	Robert G. Andersen	 	 
	Sr. Vice President, Drug Development

	 	 	 	Chief Financial Officer and	 	 
	

	 	 	 	V.P. of Operations	 	 

 

Amendment Two to the Letter of Understanding

with Dr. R. Russell Martin

April 1, 2004

This amendment further extends the provisions of the Letter of Understanding
between Dr. R. Russell Martin and Hybridon, Inc., dated July 10, 2003, as
follows:

Transition Term

The term of the agreement is extended for an additional 3 months, from March
31, 2004 until June 30, 2004.

Compensation

Compensation shall continue at the current rate for an additional 6 months,
three months beyond June 30, 2004. For the three-month period from July 1,
2004 through September 30, 2004, participation in the company’s 401K Plan and
Employee Stock Purchase Plan will no longer be permitted. You will continue to
receive other benefits currently provided, including medical, dental and
long-term disability insurance, for the 6 month period you are receiving
compensation.

Other Benefits

Continue unchanged

Stock Options

Your stock options were 100% vested as of April 1, 2004. The time over which
these stock options may be exercised shall extend for one year beyond the
termination date of your employment with the Company.

On-Site Requirements

The Company shall provide reimbursement for all reasonable out-of-pocket
expenses associated with regular travel to Hybridon’s offices in Cambridge MA,
on a weekly basis, for approx. 2 days per week and including an overnight stay.

Agreed and acknowledged,

	 	 	 	 	 	 	 
	/s/ R. Russell Martin

	 	April 1, 2004
	 	/s/ Robert G. Andersen
	 	April 1, 2004
	
 

	 	
 
	 	
 
	 	
 
	R. Russell Martin, M.D.

	 	Date
	 	Hybridon, Inc.
	 	Date
	Chief Medical Officer

	 	 	 	Robert G. Andersen	 	 
	Sr. Vice President, Drug Development

	 	 	 	Chief Financial Officer and	 	 
	

	 	 	 	V.P. of OperationsEXHIBIT 10.1

                  REPORT OF INDEPENDENT CHARTERED ACCOUNTANTS

To the Directors and Shareholders of Elan Corporation, plc

We have audited the accompanying consolidated balance sheets of Elan
Corporation, plc and subsidiaries ("the Company") as of 3l December 2003 and
2002, and the related consolidated profit and loss accounts, statements of cash
flows, statements of changes in shareholders' funds and statements of total
recognised gains and losses for each of the years in the three year period
ended 31 December 2003, all prepared in accordance with Irish generally
accepted accounting principles. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on the consolidated financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of the Company as of
31 December 2003 and 2002, and the results of their operations and their cash
flows for each of the years in the three year period ended 31 December 2003
in conformity with generally accepted accounting principles in Ireland.

Accounting principles generally accepted in Ireland vary in certain significant
respects from accounting principles generally accepted in the United States of
America. Information relating to the nature and effect of such differences is
presented in Note 33 to the consolidated financial statements.

/s/ KPMG

KPMG
Chartered Accountants
Dublin, Ireland
23 April 2004

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