Document:

EXHIBIT
10.1

SPHERIX
BOARD COMPENSATION PACKAGE

 

	
  Annual Retainer

  	
   

  	
  $5,000

  	
   

  	
  To be paid in cash at the first meeting of the term.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stock Awards

  	
   

  	
  $10,000

  	
   

  	
  To be calculated by dividing $10,000 by the closing
  stock price the day the Stock Awards are granted. The shares will be granted
  upon approval of the Board; however, the shares will be restricted and
  instructions will be given to the stock transfer agent that the shares may
  not be transferred until the one year anniversary of the Board Member’s
  departure from the Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Board Meeting Fees

  	
   

  	
  $2,500

  	
   

  	
  To be paid for all in-person Board Meetings. Members
  must be present to be paid.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Committee Meeting Fees

  	
   

  	
  $800

  	
   

  	
  To be paid for all in-person Committee Meetings.
  Members must be present to be paid.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Teleconference Fees

  	
   

  	
  $300

  	
   

  	
  To be paid for all teleconferences called by either
  the Chairman of the Board, the President, or by the Chairman of the relevant
  Committee. Members must be on-line to be paid.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional Retainer

  	
   

  	
  $1,000

  	
   

  	
  To be paid to the Chairman of the Audit Committee.EXHIBIT
10.2

RESTRICTED
STOCK AGREEMENT

THIS
RESTRICTED STOCK AGREEMENT is made as of this 23rd day of August, 2006, between
Spherix Incorporated, a Delaware corporation (“Company”), and ________________
(the “Director”).

WHEREAS,
the continued participation of the Director as a member of the Company’s Board
of Directors (the “Board”) is considered by the Company to be important for the
Company’s continued growth; and

WHEREAS,
in order to give the Director an incentive to continue to participate in the
affairs of the Company, and as a component of the Director’s compensation
package for serving as a member of the Board, the Board has determined that the
Director shall be granted shares of the Company’s $0.005 par value Common
Stock, subject to the restrictions stated below, in accordance with the terms
and conditions of the 1997 Amended And Restated Stock Option Plan (the “Plan”).

THEREFORE,
the parties agree as follows:

1.             Grant of Stock.

Subject to the terms and conditions of this Agreement
and the Plan, the Company hereby grants to the Director 7,752 shares of
the Company’s Common Stock (the “Stock”).

2.             Restrictions.

The Stock may not be sold, pledged or otherwise
transferred until the date which is one (1) year after the Director ceases to
serve as a member of the Board.  The
period of time between the date hereof and the date the Stock becomes
transferable is referred to herein as the “Restriction Period.”

3.             Legend and Stock Transfer
Instructions.

(a)                                  Any
certificates representing the Stock shall have endorsed thereon the following
legend:

“The shares represented
by this certificate are subject to an agreement between the Corporation and the
registered holder, a copy of which is on file at the principal office of this
Corporation.”

(b)                                 Any
Stock held in book entry account shall be held subject to restrictive
instructions consistent with Section 2 above.

 

4.             Escrow.

Any certificate or certificates evidencing the Stock
subject hereto shall be delivered to and deposited with the Secretary of the
Company as Escrow Agent in this transaction. 
The Stock may also be held in a restricted book entry account in the
name of the Director.  Such certificates
or such book entry shares are to be held by the Escrow Agent until termination
of the Restriction Period, when they shall be released by the Escrow Agent.

5.             Stockholder Rights.

During the Restriction Period, the Director shall have
all the rights of a stockholder with respect to the Stock except for the right
to transfer the Stock, as set forth in Section 2.  Accordingly, the Director shall have the
right to vote the Stock and to receive any cash dividends paid to or made with
respect to the Stock.

6.             Taxes.

The Director shall be liable for any and all taxes
arising out of this grant of Stock.  The
Director acknowledges and agrees that the ultimate liability for all
tax-related items legally due by him is and remains the Director’s
responsibility and that the Company (i) make no representations nor
undertakings regarding the treatment of any tax-related items in connection
with any aspect of this grant of Stock; and (ii) does not commit to structure
the terms or any aspect of this grant of Stock to reduce or eliminate the
Director’s liability for tax-related items.

7.             Plan Information.

The Director agrees to receive copies of the Plan, the
Plan prospectus and other Plan information from the Company’s web site,
including copies of any annual report, proxy and Form 10-K.  The Director acknowledges that copies of the
Plan, Company’s Plan prospectus, Plan information and stockholder information
are available upon written or telephonic request to the Company’s Secretary.

8.             Miscellaneous.

(a)                                  The
Company shall not be required (i) to transfer on its books any shares of Stock
of the Company which shall have been sold or transferred in violation of any of
the provisions set forth in this Agreement, or (ii) to treat as owner of such
Stock or to accord the right to vote as such owner or to pay dividends to any
transferee to whom such Stock shall have been so transferred.

(b)                                 The
parties agree to execute such further instruments and to take such action as
may reasonably be necessary to carry out the intent of this Agreement.

(c)                                  Any
notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon delivery to the Director at his address then on
file with the Company.

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(d)                                 The
Plan is incorporated herein by reference. 
The Plan and this Agreement constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and the Director
with respect to the subject matter hereof, and may not be modified except by
means of a writing signed by the Company and the Director.  This Agreement is governed by the laws of the
State of Delaware.

(e)                                  The
provisions of this Agreement are severable and if any one or more provisions
are determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions shall nevertheless be binding and enforceable.

	
  

  	
   

  	
  SPHERIX INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Richard C. Levin,

  
	
   

  	
   

  	
   

  	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTOR

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Director]

  

 

	
  Corporate Seal

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Katherine M. Brailer

  	
   

  	
   

  
	
   

  	
   

  	
  Corporate Secretary

  	
   

  	
   

  

 

 3Exhibit 10.1

	
  

  	
  September 12, 2006

  
	
  Mr. David F. Hale

  
	
  17079 Circa Del Sur

  
	
  Rancho Santa Fe, California 92067

  

Re:                             Position
as Chairman of the Board of Directors of Metabasis Therapeutics, Inc.

Dear David:

It is my sincere
pleasure, on behalf of Metabasis Therapeutics, Inc. (“Metabasis”), to offer you
the role of Chairman of the Board of Directors of Metabasis (the “Board’).  For so long as you remain Chairman and
subject to Board approval, Metabasis will grant you an option to purchase up to
10,000 shares of Metabasis common stock (the “Chairman Annual Grant”) under the
Metabasis 2001 Amended and Restated Equity Incentive Plan (the “Plan”)
concurrently with each Annual Grant (as defined in the Metabasis 2004
Non-Employee Directors’ Stock Option Plan). 
The Chairman Annual Grant shall have the same terms as each Annual
Grant, including vesting, and will be in addition to the Annual Grants.  All terms and conditions of the Chairman
Annual Grant will be set forth in the Plan and the Metabasis form of stock
option agreement, grant notice, exercise notice and other documents relating to
the Plan.  Should you choose to accept
this offer on the terms provided herein, your appointment as Chairman of the Board
of Directors is contingent and effective upon your execution of this letter.

As Chairman, you
will be expected to work closely with the Board, the Chief Executive Officer
and the executive team of Metabasis to further the goals and objectives of the
organization, consistent with the usual and customary duties of a chairman of
the board of a publicly traded biotechnology company.  The Board expects that in your new role as
Chairman, you will maintain an office at the Company’s La Jolla, California
headquarters, will spend at least one day per week on Metabasis business (or
traveling on behalf of Metabasis as needed), be involved in selected high level
management decisions as guided by the Board, and serve as a facilitator of
communications between the executive team of Metabasis and the non-employee
directors.  In addition, you have agreed
that, during your tenure as Chairman of Metabasis, you will promptly notify the
Board if you accept employment as an executive officer of any other company or
organization.  The Board, in its sole
discretion, will determine whether any such employment is consistent with the
duties undertaken pursuant to this letter.

As compensation
for your services as Chairman, you will be paid a Chairman fee of $100,000 per
annum, payable in accordance with Metabasis’ policies for payment of Board
compensation (the “Chairman Fee”).  The
Compensation Committee will review the Chairman Fee on an annual basis and may
modify the Chairman Fee as it deems necessary. 
In addition, Metabasis will grant you an option to purchase up to
100,000 shares of Metabasis common stock (the “Chairman Grant”) under the Plan.
The Chairman Grant shall be contingent upon your execution of this letter and
granted on the third business day after general public release of the Metabasis’
quarterly financial results for the third quarter of fiscal year 2006.  The Chairman Grant shall commence vesting
upon your execution of this letter and will vest monthly in equal increments
over a 36 month period, for so long as you continue to serve as Chairman and do
not accept employment with any other company or organization which the Board
determines is inconsistent with the duties undertaken pursuant to this letter;
provided, however, that in the

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event the Board elects a
new Chairman and you continue to serve as a director, consultant or employee of
Metabasis, the Chairman Grant will continue to vest in accordance with the
aforementioned schedule for a period of six months following such election of a
new Chairman.  If, during your board
service, there is a Change of Control
of Metabasis, as defined in the Plan, any unvested options will immediately
become fully vested.  All terms and
conditions of the Chairman Grant will be set forth in the Plan and the
Metabasis form of stock option agreement, grant notice, exercise notice and
other documents relating to the Plan.

In addition to the
Chairman Annual Grant, Chairman Fee and Chairman Grant, you will continue to
receive the fees and stock option grants provided to the non-employee directors
of Metabasis.  Metabasis will also
continue to reimburse you for reasonable out-of-pocket expenses incurred in
connection with your service as a director in accordance with Metabasis’
established reimbursement policies.  You
will also continue to receive indemnification under Metabasis’ standard form of
indemnity agreement for directors.

This letter, along
with the stock option documentation referred to herein, constitutes the entire
agreement between you and Metabasis regarding the subject matter hereof.  This agreement supersedes any other
agreements or promises made to you by anyone, whether oral or written, and it
may only be modified in a writing signed by a duly authorized officer of
Metabasis.

If the terms of
this letter are acceptable to you, please sign and date this letter below and
return it to me in the enclosed return envelope, retaining a copy for your
records.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/ Arnold L. Oronsky, Ph.D.

  	
   

  
	
   

  	
  Arnold L.
  Oronsky, Ph.D.

  
	
   

  	
  Member of the Compensation Committee

  
	
   

  	
  Metabasis Therapeutics, Inc.

  
	
   

  	
   

  
	
  Accepted and agreed:

  	
   

  
	
   

  	
   

  
	
  /s/ David F. Hale

  	
   

  
	
  David F. Hale

  	
   

  
	
   

  	
   

  
	
  Date: September 12, 2006

  	
   

  

 

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