Document:

Exhibit 10.3

 

SUMMARY OF ANNUAL BONUS PROGRAM

 

Our executive officers participate in an annual  bonus program applicable to all our employees.  Under this program, the Compensation Committee of our Board of Directors annually establishes key performance criteria, based upon the corporate goals and objectives, to be met by ImmunoGen, and evaluates ImmunoGen’s actual performance against those criteria in its determination of whether annual bonuses will be paid to our employees, including our executives.  Key corporate performance criteria may include any or all of the following: (1) our actual financial performance against specified metrics in our operating plan for the applicable fiscal year; (2) achievement of certain research and development milestones, including internal product development advancement; (3) achievement of key targets associated with our collaborations with third parties, including support of partner programs; and (4) the creation and achievement of business development opportunities.  In establishing annual key performance criteria for the annual bonus program, the committee selects specific corporate objectives directed primarily to the future success of our business and the creation of long-term shareholder value. Payments under our annual bonus program currently consist entirely of cash.

 

The Compensation Committee generally also considers an executive’s individual performance in its determination of whether payments should be made to the executive under our annual bonus program, although currently the committee has determined that the CEO’s annual bonus should be based solely on the achievement of the key corporate performance criteria.  With respect to our other executive officers, 70% of their target bonus is based on the achievement of the key corporate performance criteria, and 30% is based on the achievement of individual performance objectives.  Their achievement of their respective individual performance objectives is evaluated by our CEO, and based on these evaluations, the committee determines the portion, if any, of our executive officers’ bonus compensation tied to individual performance.

 

Each participant in our annual bonus program is eligible to receive a target bonus expressed as a percentage of his or her annual base salary which, once set, remains at that level for each subsequent year unless specifically changed, in the case of our executive officers, by the Compensation Committee.   Beginning July 1, 2014, which is the start of our fiscal year 2015, target bonuses for our executive officers will be as follows:

 

	
 
    	
 
    	
Target Bonus
    	
 
    	
 
    
	
Title
    	
 
    	
(as % of Annual Base Salary)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
President &   CEO
    	
 
    	
 
    	
75%
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Executive Vice President or Senior Vice President
    	
 
    	
 
    	
40%   — 45%
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vice   President
    	
 
    	
 
    	
30%   — 35%
    	
 
    	
 
    

 

The Compensation Committee has set a 50% threshold aggregate percentage of achievement against the key corporate performance criteria below which the portion of participants’ annual bonus payable based on corporate performance will not be payable.  The key corporate performance criteria are structured to permit achievement up to 150% of target.  The individual objectives portion of a participant’s target bonus may be earned irrespective of whether the threshold for payment of the corporate performance bonuses has been achieved or the extent to which the bonuses based on corporate performance are payable.

 

When evaluating ImmunoGen’s performance against the key corporate performance criteria after completion of the performance period, the Compensation Committee evaluates any factors that were unanticipated at the time those criteria were established, such as unexpected results in pre-clinical or clinical development, as well as changes in business conditions and other relevant external circumstances, and has the discretion to adjust payouts based on corporate performance so that they align more appropriately with the changed environment, given the employees’ overall performance during the performance period in furtherance of ImmunoGen’s future success and creation of long-term shareholder value.  Any such adjustment, however, would not result in the portion of the participants’ bonus tied to corporate performance actually paid out exceeding the 150% maximum described above.Exhibit 10.4

 

Execution Copy

 

AMENDMENT NO. 1 TO THE

COLLABORATION AND LICENSE AGREEMENT

 

This Amendment No. 1 to the Collaboration and License Agreement (this “Amendment”) is dated as of August 31, 2006 (the “Amendment Effective Date”) by and between ImmunoGen, Inc., a Massachusetts corporation with a principal office at 128 Sidney Street, Cambridge, Massachusetts 02139 (“ImmunoGen”), and sanofi-aventis U. S. LLC, a Delaware limited liability company with a offices at 1041 Rt. 202-206, Bridgewater, NJ 08807 (“sanofi-aventis”).  Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Collaboration and License Agreement (the “Agreement”) dated as of July 30, 2003 (the “Agreement Effective Date”) by and between ImmunoGen and Aventis Pharmaceuticals, Inc. (“Aventis”).

 

WHEREAS, on the Agreement Effective Date, ImmunoGen and Aventis, the predecessor in interest to sanofi-aventis, entered into the Agreement for the purpose of collaborating on the identification and validation of targets for use in the discovery of antibodies and antibody-drug conjugates in the Collaborative Focus Area (as defined in the Agreement) and in the development and commercialization of such antibodies and antibody-drug conjugates; and

 

WHEREAS, the Parties hereto desire to amend the Agreement as set forth herein and to set forth certain additional terms applicable to the Agreement, as so amended.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the Parties hereto, intending to be legally bound, hereby agree as follows:

 

1.              Amendments to Agreement.

 

(a)                     Section 1.20 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“1.20                  “Collaboration Product” means any product, other than a Licensed Product, containing a Program Antibody.”

 

b)                         A new Section 2.14 is hereby added to the Agreement which shall provide as follows:

 

“2.14                  Collaboration Portfolio.  For purposes of clarity (a) Schedule 2.14 attached hereto lists all Antibody Targets, Program Targets, Program Targets with Program Antibodies and Program Targets with Lead Antibodies that are part of the Research Program as of the Amendment Effective Date. The Joint Research Committee shall update and amend, as appropriate, the then current Schedule 2.14 as necessary during each Contract Year and on the expiration of the Research Program Term in order to list all Antibody Targets, Program Targets, Program Targets with Program Antibodies, Program Targets with Lead Antibody and Program Targets with Lead Antibody in Development at that point in time.  In addition to those Program

 

 

Targets for which Program Antibodies have already been generated, it is anticipated that Program Antibodies shall have been generated prior to the expiration of the Research Program Term, for FGFR1, FRGFR4 and LRP6.”

 

(c)                      Section 2.8.1 of the Agreement is hereby amended by adding the following sentence at the end of such provision:

 

“Notwithstanding the foregoing, the Parties hereby agree that during the period commencing on the Amendment Effective Date and continuing until the expiration of the Research Program Term, (a) neither Party shall have the obligation under this Agreement to identify or provide Targets for use in the Research Program and the Parties will focus on progressing the Targets and Antibodies listed in Schedule 2.14 as more specifically described in the Research Plan for the remainder of the Research Program Term and (b) Aventis shall have the right to identify and provide new Targets for use in the Research Program pursuant to Section 2.8.2 below only to the extent that (i) the estimated number of FTEs to be provided by ImmunoGen under Section 2.5.1 for a particular Calendar Quarter is estimated to fall short of the number of FTEs set forth in the Annual Research Plan for such Calendar Quarter and (ii) ImmunoGen is not engaged in its own program outside of the collaboration on any such new Targets.  Further, all Targets identified pursuant to the Parties’ Sponsored Research Agreement(s) with East Carolina University, including any Sponsored Research Agreement entered into during the Research Program Term, related to development of murine monoclonal antibodies that selectively recognize novel antigens in human tissues, shall be provided for use in the Research Program and shall be designated Program Targets pursuant to Section 2.8.2 below.”

 

(d)                                 Section 7.1.2 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“7.1.2 Development Licenses.  With respect to all Program Targets for which Program Antibodies have been developed prior to the expiration of the Research Program Term, ImmunoGen hereby grants to Aventis and its Affiliates, subject to Section 7.1.8 below, an exclusive (even as to ImmunoGen and its Affiliates), worldwide, royalty-free license, with the right to grant sublicenses to Approved Subcontractors, under ImmunoGen Intellectual Property, to Develop Products.”

 

(e)                                  Section 7.5.2 of the Agreement is hereby deleted in its entirety.

 

2.              Miscellaneous.                                        The Parties acknowledge that in connection with the internal restructuring of the sanofi-aventis Group in the United States, certain assets and liabilities of Aventis, including its rights and obligations under the Agreement, were contributed to, and

 

2

 

assumed by, sanofi-aventis U.S. LLC, a limited liability company of which Aventis is a member.  The Parties hereby confirm and agree that, except as amended hereby, the Agreement remains in full force and effect and is a binding obligation of the Parties hereto.  This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their duly authorized representatives.

 

	
IMMUNOGEN, INC.
    	
 
    	
SANOFI-AVENTIS U.S. LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Mitchel Sayare
    	
 
    	
By:   
    	
/s/   Larry Baugh
    
	
Name:
    	
Mitchel Sayare
    	
 
    	
Name:
    	
Larry Baugh
    
	
Title:
    	
CEO
    	
 
    	
Title:
    	
Site Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Paul A. Darno, Jr.
    
	
 
    	
 
    	
Name:
    	
Paul A. Darno, Jr.
    
	
 
    	
 
    	
Title:
    	
Sr. Director, Finance
    

 

3

 

Schedule 2.14

 

[COLLABORATION PORTFOLIO AS OF AMENDMENT EFFECTIVE DATE

 

	
Antibody Targets
    	
 
    	
Program Target
    	
 
    	
Program Targets
   with Program
   Antibodies
    	
 
    	
Program Targets 
   with Lead Antibody
    	
 
    	
Program Targets
   with Lead Antibody in
   Development
    
	
Eph   receptors
    	
 
    	
FGFR1
    	
 
    	
EphA2
    	
 
    	
huCD38
    	
 
    	
CD   33 (AVE9633)
    
	
FGFRs
    	
 
    	
FGFR4
    	
 
    	
Endoglin
    	
 
    	
DS6   (SAR566658)]
    	
 
    	
CD   19 (SAR3419)
    
	
CD20
    	
 
    	
LRP6
    	
 
    	
Ron
    	
 
    	
 
    	
 
    	
IGF-1R   (AVE1642)
    
	
CD55
    	
 
    	
 
    	
 
    	
Wnt1
    	
 
    	
 
    	
 
    	
 
    
	
CD25
    	
 
    	
 
    	
 
    	
ECU   8D9
    	
 
    	
 
    	
 
    	
 
    
	
Wnt3a
    	
 
    	
 
    	
 
    	
ECU   15B4
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
ECU   16B9
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
GD3

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