Document:

Exhibit 10.22

 

THE MEDICINES COMPANY

 

Nonstatutory Stock Option Agreement

Under 2004 Stock Incentive Plan

 

1.                                       Grant
of Option.  

 

(a)                                  This
agreement evidences the grant by The Medicines Company, a Delaware corporation
(the “Company”), on          , 200   
(the “Grant Date”) to                            ,
a                            
of the Company (the “Participant”), of an option to purchase, in whole or in
part, on the terms provided herein and in the Company’s 2004 Stock Incentive
Plan (the “Plan”),  a total of                            shares
(the “Shares”) of common stock, $0.001 par value per share (“Common Stock”), of
the Company at a price of $ per Share. 
Unless earlier terminated, this option shall expire on the tenth
anniversary of the Grant Date (the “Final Exercise Date”).  

 

(b)                                 It
is intended that the option evidenced by this agreement shall not be an
incentive stock option as defined in Section 422 of the Internal Revenue
Code of 1986, as amended and any regulations promulgated thereunder (the “Code”).  Except as otherwise indicated by the context,
the term “Participant”, as used in this option, shall be deemed to include any
person who acquires the right to exercise this option validly under its terms.

 

2.                                       Vesting
Schedule.

 

(a)                                  This
option will become exercisable (“vest”) in                                           .  This option shall expire upon, and will not
be exercisable after, the Final Exercise Date.

 

(b)                                 The
right of exercise shall be cumulative so that to the extent the option is not
exercised in any period to the maximum extent permissible it shall continue to
be exercisable, in whole or in part, with respect to all Shares for which it is
vested until the earlier of the Final Exercise Date or the termination of this
option under Section 3 hereof or the Plan. 

 

(c)                                  Notwithstanding anything in this option
to the contrary, in the event that the Participant’s relationship with the
Company is terminated by reason of death or disability (within the meaning of Section 22(e)(3)
of the Code), then, in addition to the Shares as to which this option is
exercisable as of such termination date pursuant to the terms hereof, this
option shall also become exercisable for an additional number of Shares equal
to 50% of the Shares covered by this option which were not otherwise 

 

 

exercisable as of
such termination date.  For example, if
as of the termination date, 6,000 shares of a 10,000 share stock option had
vested and no shares covered by such option had been exercised, upon such
termination date, the option would become exercisable for an additional 2,000
shares (50% of (10,000 - 6,000)) or total of 8,000 shares.  

 

3.                                       Exercise
of Option.

 

(a)                                  Form
of Exercise.  Each election to
exercise this option shall be in writing, signed by the Participant, and
received by the Company at its principal office, accompanied by this agreement,
and payment in full in the manner provided in the Plan.  The Participant may purchase less than the
number of Shares covered hereby, provided that no partial exercise of this
option may be for any fractional share or for fewer than ten whole shares.

 

(b)                                 Continuous
Relationship with the Company Required. 
Except as otherwise provided in this Section 3, this option may not
be exercised unless the Participant, at the time he or she exercises this
option, is, and has been at all times since the date of grant of this option,
an employee, officer or director of, or consultant or advisor to, the Company
or any parent or subsidiary of the Company as defined in Section 424(e) or
(f) of the Code (an “Eligible Participant”).

 

(c)                                  Termination
of Relationship with the Company.  If
the Participant ceases to be an Eligible Participant for any reason, then,
except as provided in paragraphs (d) and (e) below, the right to exercise this
option shall terminate         months
after such cessation (but in no event after the Final Exercise Date), provided
that this option shall be exercisable only to the extent that the
Participant was entitled to exercise this option on the date of such cessation.  Notwithstanding the foregoing, if the
Participant, prior to the Final Exercise Date, violates the non-competition or
confidentiality provisions of any employment contract, confidentiality and
nondisclosure agreement or other agreement between the Participant and the
Company, the right to exercise this option shall terminate immediately upon
written notice to the Participant from the Company describing such violation.

 

(d)                                 Exercise
Period Upon Death or Disability.  If
the Participant dies or becomes disabled (within the meaning of Section 22(e)(3)
of the Code) prior to the Final Exercise Date while he or she is an Eligible
Participant and the Company has not terminated such relationship for “cause” as
specified in paragraph (e) below, this option shall be exercisable for a period
of one year following the date of death or disability of the Participant, provided
that this option shall be exercisable only to the extent that this
option was exercisable by the Participant on the date of his or her death or
disability, and further provided that this option shall not be exercisable
after the Final Exercise Date.

 

2

 

(e)                                  Discharge
for Cause.  If the Participant, prior
to the Final Exercise Date, is discharged by the Company for Cause, the right
to exercise this option shall terminate immediately upon the effective date of
such discharge.  “Cause” shall mean:  (i) conviction of any felony or any crime
involving moral turpitude or dishonesty; (ii) participation in a fraud or act
of dishonesty against the Company (or, if applicable, a successor corporation
to the Company); (iii) willful and material breach of the Company’s policies
(or, if applicable, the policies of a successor corporation to the Company);
(iv) intentional and material damage to the Company’s property (or, if
applicable, the property of a successor corporation to the Company); or (v)
material breach of such Participant’s non-disclosure, non-competition or other
similar agreement with the Company (or, if applicable, a successor corporation
to the Company). 

 

4.                                       Withholding.

 

No
Shares will be issued pursuant to the exercise of this option unless and until
the Participant pays to the Company, or makes provision satisfactory to the
Company for payment of, any federal, state or local withholding taxes required
by law to be withheld in respect of this option.

 

5.                                       Non-transferability
of Option.

 

This
option may not be sold, assigned, transferred, pledged or otherwise encumbered
by the Participant, either voluntarily or by operation of law, except by will
or the laws of descent and distribution and, during the lifetime of the
Participant, this option shall be exercisable only by the Participant.  Notwithstanding the foregoing, a Participant
may transfer this option by means of a gift to a family member (as such term is
defined in General Instruction A to Form S-8, as may be amended from time to
time) of such Participant, provided that prior written notice of such gift is
provided to the Company.

 

6.                                       Provisions
of the Plan.  

 

This
option is subject to the provisions of the Plan, a copy of which is furnished
to the Participant with this option.  

 

3

 

IN
WITNESS WHEREOF, the Company has caused this option to be executed under its
corporate seal by its duly authorized officer. 
This option shall take effect as a sealed instrument.  

 

	
   

  	
  The Medicines
  Company

  
	
   

  	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Steven Koehler

  
	
   

  	
  Title:

  	
  CFO

  
							

 

 

PARTICIPANT’S ACCEPTANCE

 

The
undersigned hereby accepts the foregoing option and agrees to the terms and
conditions thereof.  The undersigned
hereby acknowledges receipt of a copy of the Company’s 2004 Stock Incentive
Plan Prospectus.

 

	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name]

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

4Exhibit 10.25

 

November 29th 2004

 

John Kelley

14
Green Hill Road,

Chester, New Jersey 07930

 

Dear John,

 

It is
my pleasure to submit to you this revised offer of employment with The
Medicines Company (the “Company”) as President and Chief Operating Officer
reporting to me.   Everyone with whom you’ve met is enthusiastic
about your joining us and I firmly believe that your background,
qualifications, management and leadership credentials will strongly contribute
to our business. We appreciate the commitment you have shown by adjusting your
start date to December 1st 2004,
and we recognize that you need to honor certain personal and/or professional
commitments for travel during December/January.

 

On
behalf of the Company, I have set forth below the terms of your employment.
This offer letter supersedes and cancels all prior oral and written
negotiations, agreements and commitments.

 

•                  You are being
employed to serve on a full-time basis as President and Chief Operating
Officer.

 

•                  Your salary
shall be $13,125 per pay period
(semi-monthly) (annualized rate of $315,000.00).

 

•                  You will receive
a payment of $20,000, as a “one-time” sign-on payment, such payment to be made
in the first pay-period after your commencement.

 

 

•                  You will be
granted options to purchase 225,000
shares of Common Stock of the Company at an exercise price to be determined by
the closing price of the stock on the date of grant – this is expected to be
your first day of employment.

 

•                  Based on your
meeting company and personal performance goals, and at the sole discretion of
the Board of Directors, your target bonus is 50%.
 Generally this level of bonus would be
anticipated if you meet all of the goals set for you and if the Company meets
all of its annual business goals. To begin, your individual goals would be set
in two steps. First, a set of “90-day objectives” which we
will discuss and agree on during the first days of your employment.  Second, a set of “2005 annual goals” which we can agree after
consideration during the first 90-days of employment. Both sets of goals
will take into account the overall Company goals. In subsequent years, we
anticipate annual appraisal of the Company’s and of your performance at the end
of each calendar year with goal-setting just before the beginning of each
calendar year. We believe this should be a collaborative process. At this level
of employment, we find that dialogue with the Board of Directors as well as
with the Chief Executive Officer is very useful for performance management.

 

•                  You will be
entitled to participate in any and all benefit and bonus programs that the
Company establishes and makes available to its employees from time to time,
including but not limited to, health insurance, life insurance and disability
insurance, to the extent you meet all eligibility requirements for
participation.

 

•                  You will be
entitled to four weeks weeks of paid
vacation per calendar year.

 

•                  You will be
required to execute two agreements: 1) Invention and Non-disclosure Agreement
and 2) Non-Competition and Non-Solicitation Agreement. Forms that we have used
in the past are enclosed with this letter.

 

 

Your
employment with the Company will be “at will,” which means that both the
Company and you have the right to terminate the employment at any time for any
reason.

 

The
Company may also terminate your employment for “Cause” (as defined on Appendix 1
attached hereto).  If the Company
terminates your employment for Cause, or if you voluntarily terminate your
employment without Good Reason (as defined on Appendix 1 attached hereto), the
Company will pay you your base salary through the date of termination and all
other amounts required by law and the Company shall then have no further
obligation to you.

 

If the
Company terminates your employment other than for Cause or if a “Termination
Event”  (as defined on Appendix 1 attached
hereto) occurs, or if you terminate your employment for Good Reason, you will
be entitled to receive (i) on the effective date of the termination of your
employment, the equivalent of twelve months’ base salary plus a bonus payment
equivalent to the average of the past three years’ (annualized if not full
year) bonus (in a lump sum less applicable deductions), and (ii) for a period
of twelve months after the effective date of the termination of your
employment, reimbursement of COBRA health care premiums and outplacement
assistance of your choosing.  In
addition, if the Company terminates your employment other than for Cause, or if
you voluntarily terminate your employment for Good Reason, your right to
continue to vest in and exercise any stock option grants previously received
will be extended for twelve months beyond the dates outlined in the respective stock
option agreements.

 

Please
understand that this is an offer letter and is not a contract of employment for
a particular duration or period.

 

This offer is contingent
upon your successful completion of the Company’s preliminary drug screen,
satisfactory references and successful completion of all other facets of the
Company’s pre-employment screening process. 

 

 

Also, as a condition of
employment you are to present proof of your identity and your eligibility to
work in the United States, as required by United States Immigration and
Naturalization.

 

As an employee,
you will be required to abide by the rules and regulations of the Company.  You should also recognize that either you or
the Company may terminate your employment at any time and for any reason, other
than those specifically prohibited by law.

 

By
accepting this offer, you confirm that your work for us in the position offered
will not violate any non-competition or other agreement with other employers
and that you will not violate any obligation not to use or disclose
confidential information obtained from other employers.

 

If
this letter sets forth the terms under which you will be initially employed by
the Company, would you please so indicate by signing the enclosed copy of this
letter in the space provided below.

 

I have
enclosed two copies of this offer letter. 
Please sign and return one of the copies to indicate your acceptance and
your agreement with the terms stated in this letter.

 

Very
truly yours,

 

	
  /s/
  Clive Meanwell

  	
   

  
	
   

  
	
  Clive
  Meanwell

  
	
  Chairman,
  President and Chief Executive Officer

  

 

The
foregoing correctly sets forth the terms of my employment by The Medicines
Company.

 

	
  /s/
  John Kelley

  	
   

  
	
  John
  Kelley

  

 

 

APPENDIX 1

 

DEFINED TERMS

 

1.                                       “Cause”
shall mean (i) conviction of any felony or any crime involving moral turpitude
or dishonesty; (ii) participation in a fraud or act of dishonesty against the
Company (or, if applicable, a successor corporation to the Company); (iii)
willful and material breach of the Company’s policies (or, if applicable, a
successor corporation to the Company); (iv) intentional and material damage to the
Company’s property (or, if applicable, a successor corporation to the Company);
or (v) material breach of the employee’s confidentiality obligations or duties
under the employee’s non-disclosure, non-competition or other similar agreement
with the Company (or, if applicable, a successor corporation to the Company).

 

2.                                       “Change
in Control Event” shall mean:

 

(i)                                     any
sale or transfer of all or substantially all of the assets of the Company to
another corporation or entity, any merger, consolidation or reorganization of
the Company into or with another corporation or entity, with the result that,
upon conclusion of the transaction, the voting securities of the Company
immediately prior thereto do not represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity) more than
50% of the combined voting power of the voting securities of the continuing or
surviving entity of such consolidation, merger or reorganization; or

 

(ii)                                  a disclosure that any person (as the term “person” is used
in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act), other
than (A) the Company or (B) any corporation owned 

 

 

directly or indirectly by the stockholders of the
Company in substantially the same proportion as their ownership of stock of the
Company, becomes the beneficial owner as the term “beneficial owner” is defined
under Rule 13d-3 or any successor rule or regulation thereto under the
Exchange Act) of securities representing 30% or more of the combined voting
power of the then outstanding voting securities of the Company; or

 

(iii)                               such time as individuals
who as of the date hereof constitute the Board of Directors of the Company, and
any new director (other than a director designated by a person who has entered
into an agreement with the Company to effect any transaction described in
clause (i) or (ii) of this section) whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then still in office who were either
directors at the beginning of the period or whose election or whose nomination
for election was previously so approved, cease for any reason to constitute a
majority of the Board of Directors; or

 

(iv)                              the liquidation or dissolution of the Company.

 

3.               “Termination
Event” shall mean the termination of the employee’s employment on or prior to
the first anniversary of the date of the consummation of a Change in Control
Event (i) by the Company or an acquiring or succeeding corporation without
Cause; or (ii) by the employee upon written notice given promptly after the
Company’s or an acquiring or succeeding corporation’s taking of any of the
following actions, which actions shall not have been cured within a 30-day
period following such notice: (A) the principal place of the performance of the
employee’s responsibilities (the “Principal Location”) is changed to a location
outside of a 30 mile radius from the Principal Location; (B) there is a
material reduction in the 

 

 

employee’s responsibilities without Cause; (C) there
is a material reduction in the employee’s salary;  or (D) there is a significant diminution in
the scope of the employee’s responsibilities without the employee’s agreement
(excluding increases in responsibility and sideways moves to jobs with similar
descriptions.

 

4.               “Good Reason” shall mean the Company’s
or an acquiring or succeeding corporation’s taking of any of the following
actions, which actions shall not have been cured within a 30-day period
following written notice by the employee: (A) the Principal Location is changed
to a location outside of a 30 mile radius from the Principal Location on the
employee’s start date of employment with the Company; (B) there is a material
reduction in the employee’s responsibilities without Cause; (C) there is a
material reduction in the employee’s salary, benefits, bonus eligibility, or
equity eligibility;  (D) there is a
significant diminution in the scope of the employee’s responsibilities without
the employee’s agreement (excluding increases in responsibility and sideways
moves to jobs with similar descriptions); (E) the employee shall no longer
report to the chief executive officer of the Company; or (F) there is a
material breach of the Company’s obligations to the employee.

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