Document:

exv10w7

Exhibit 10.7

ADC TELECOMMUNICATIONS, INC.

2010 GLOBAL STOCK INCENTIVE PLAN

Section 1. Purpose.

     The purpose of the Plan is to promote the interests of the Company and its shareholders by
aiding the Company in attracting and retaining employees, officers and non-employee Directors
capable of assuring the future success of the Company, to offer such persons incentives to put
forth maximum efforts for the success of the Company’s business and to compensate such persons
through various stock-based arrangements and provide them with opportunities for stock ownership in
the Company, thereby aligning the interests of such persons with the Company’s shareholders.

Section 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Affiliate” shall mean (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which the Company has a
significant equity interest, in each case as determined by the Committee.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Dividend Equivalent, Performance Award, Stock Award or Other Stock-Based Award granted
under the Plan.

     (c) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing an Award granted under the Plan. An Award Agreement may be in an electronic
medium and need not that be signed by a representative of the Company or the Participant. Each
Award Agreement shall be subject to the applicable terms and conditions of the Plan and any other
terms and conditions (not inconsistent with the Plan) determined by the Committee.

     (d) “Board” shall mean the Board of Directors of the Company.

     (e) “Change in Control” shall have the meaning ascribed to such term in any Award Agreement;
provided, however, that no Award Agreement shall contain a definition of Change in Control that has
the effect of accelerating the exercisability of any Award or the lapse of restrictions relating to
any Award upon only the announcement or shareholder approval of (rather than consummation of) any
reorganization, merger or consolidation of, or sale or other disposition of all or substantially
all of the assets of, the Company.

     (f) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder.

 

 

     (g) “Committee” shall mean the Compensation Committee of the Board or any successor committee
of the Board designated by the Board to administer the Plan. The Committee shall be comprised of
not less than such number of Directors as shall be required to permit Awards granted under the Plan
to qualify under Rule 16b-3, and each member of the Committee shall be a “Non-Employee Director”
within the meaning of Rule 16b-3 and an “outside director” within the meaning of Section 162(m).
The Company expects to have the Plan administered in accordance with the requirements for the award
of “qualified performance-based compensation” within the meaning of Section 162(m)of the Code.

     (h) “Company” shall mean ADC Telecommunications, Inc., a Minnesota corporation, or any
successor corporation.

     (i) “Director” shall mean a member of the Board.

     (j) “Dividend Equivalent” shall mean any right granted under Section 6(d) of the Plan.

     (k) “Eligible Person” shall mean any employee, officer or non-employee Director providing
services to the Company or any Affiliate whom the Committee determines to be an Eligible Person.
An Eligible Person must be a natural person.

     (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (m) “Fair Market Value” shall mean, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such property determined by
such methods or procedures as shall be established from time to time by the Committee.
Notwithstanding the foregoing, unless otherwise determined by the Committee, the Fair Market Value
of Shares on a given date for purposes of the Plan shall be the closing sale price of the Shares on
the NASDAQ Global Select Market as reported on such date or, if such market is not open for trading
on such date, on the most recent preceding date when such market was open for trading.

     (n) “Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that
is intended to meet the requirements of Section 422 of the Code or any successor provision.

     (o) “Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (p) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (q) “Other Stock-Based Award” shall mean any right granted under Section 6(g) of the Plan.

     (r) “Participant” shall mean an Eligible Person designated to be granted an Award under the
Plan.

 

 

     (s) “Performance Award” shall mean any right granted under Section 6(e) of the Plan.

     (t) “Performance Goal” shall mean one or more of the following performance goals, either
individually, alternatively or in any combination, applied on a corporate, subsidiary, division,
business unit, line of business or geographic region basis: sales, revenue, costs, expenses,
earnings (including one or more of net profit after tax, gross profit, operating profit, earnings
before interest and taxes, earnings before interest, taxes, depreciation and amortization and net
earnings), earnings per share, earnings per share from continuing operations, operating income,
pre-tax income, net income, margins (including one or more of direct gross, gross, operating
income, net income and pretax net income margins), returns (including one or more of return on
actual or proforma assets, net assets, equity, investment, investment capital, capital and net
capital employed), shareholder return (including total shareholder return relative to an index or
peer group), stock price, economic value added, cash generation, cash flow, unit volume, working
capital, market share, cost reductions and development and implementation of strategic plans,
management succession plans or diversity initiatives. A Performance Goal may be an absolute
measure or a defined change (amount or percentage) in a measure. A Performance Goal may reflect
absolute entity or business unit performance or performance relative to the performance of a peer
group of companies or other external measure. To the extent consistent with Section 162(m), the
Committee may provide that, in determining whether the Performance Goal has been achieved, the
effect of certain events may be excluded. These events include, but are not limited to, any of the
following: asset write-downs, litigation or related judgments or settlements, changes in tax law,
accounting principles or other such laws or provisions affecting reported results, severance,
contract termination and other costs related to exiting certain business activities, and gains or
losses from the disposition of businesses or assets or from the early extinguishment of debt.

     (u) “Person” shall mean any individual or entity, including a corporation, partnership,
limited liability company, association, joint venture or trust.

     (v) “Plan” shall mean this ADC Telecommunications, Inc. 2010 Global Stock Incentive Plan, as
amended from time to time.

     (w) “Prior Plans” shall mean the ADC Telecommunications, Inc. 2008 Global Stock Incentive
Plan, the ADC Telecommunications Inc. 1991 Global Stock Incentive Plan, and the ADC
Telecommunications, Inc. Non-employee Director Stock Option Plan, as each of such plans has been
amended from time to time.

     (x) “Qualified Performance Award” means a Performance Award that (i) is made to as officer of
the Company who may be a “covered person” under Section 162(m), and (ii) is intended to be
“qualified performance-based compensation” within the meaning of Section 162(m).

     (y) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

 

 

     (z) “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share (or a cash payment equal to the Fair Market Value of a
Share) at some future date.

     (aa) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act or any successor rule or regulation.

     (bb) “Section 162(m)” shall mean Section 162(m) of the Code and the applicable Treasury
Regulations promulgated thereunder.

     (cc) “Shares” shall mean shares of Common Stock, par value of $0.20 per share, of the Company
or such other securities or property as may become subject to Awards pursuant to an adjustment made
under Section 4(c) of the Plan.

     (dd) “Specified Employee” shall mean a “specified employee” as such term is defined in Section
409A(a)(2)(B) of the Code.

     (ee) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

     (ff) “Stock Award” shall mean any Share granted under Section 6(f) of the Plan.

Section 3. Administration.

     (a) Power and Authority of the Committee. The Plan shall be administered by the
Committee. Subject to the express provisions of the Plan and to applicable law, the Committee
shall have full power and authority to: (i) designate Participants; (ii) determine the type or
types of Awards to be granted to each Participant under the Plan; (iii) determine the number of
Shares to be covered by (or the method by which payments or other rights are to be calculated in
connection with) each Award; (iv) determine the terms and conditions of any Award or Award
Agreement; (v) amend the terms and conditions of any Award or Award Agreement; (vi) accelerate the
exercisability of any Award or the lapse of restrictions relating to any Award; (vii) determine
whether, to what extent and under what circumstances Awards may be exercised in cash, Shares, other
securities, other Awards or other property, or canceled, forfeited or suspended; (viii) determine
whether, to what extent and under what circumstances cash, Shares, other securities, other Awards,
other property and other amounts payable with respect to an Award under the Plan shall be deferred
either automatically or at the election of the holder of the Award or the Committee; (ix) interpret
and administer the Plan and any instrument or agreement, including any Award Agreement, relating to
the Plan; (x) establish, amend, suspend or waive such rules and regulations and appoint such agents
as it shall deem appropriate for the proper administration of the Plan; and (xi) make any other
determination and take any other action that the Committee deems necessary or desirable for the
administration of the Plan. Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to the Plan or any Award
or Award Agreement shall be within the sole discretion of the Committee, may be made at any time
and shall be final, conclusive and binding upon any Participant, any holder or
beneficiary of any Award or Award Agreement, and any employee of the Company or any Affiliate.

 

 

     (b) Delegation. The Committee may delegate its powers and duties under the Plan to
one or more Directors (including a Director who is also an officer of the Company) or a committee
of Directors and may authorize one or more officers of the Company to grant Awards under the Plan,
subject to such terms, conditions and limitations as the Committee may establish in its sole
discretion; provided, however, that the Committee shall not delegate its powers and duties under
the Plan (i) with regard to officers or directors of the Company or any Affiliate who are subject
to Section 16 of the Exchange Act or (ii) in such a manner as would cause the Plan not to comply
with the requirements of Section 162(m).

     (c) Power and Authority of the Board of Directors. Notwithstanding anything to the
contrary contained herein, the Board may, at any time and from time to time, without any further
action of the Committee, exercise the powers and duties of the Committee under the Plan, unless the
exercise of such powers and duties by the Board would cause the Plan not to comply with the
requirements of Section 162(m).

Section 4. Shares Available for Awards.

     (a) Shares Available. Subject to adjustment as provided in Section 4(c) of the Plan,
the aggregate number of Shares that may be issued under all Awards under the Plan shall be the sum
of (i) 9,700,000 and (ii) any Shares subject to any award under the Prior Plans that, after the
effective date of this Plan, are not purchased or are forfeited or reacquired by the Company, or
otherwise not delivered to the Participant due to termination or cancellation of such award. If
any Shares covered by an Award or to which an Award relates are not purchased or are forfeited or
are reacquired by the Company (including shares of Restricted Stock, whether or not dividends have
been paid on such shares), or if an Award otherwise terminates or is cancelled without delivery of
any Shares, then the number of Shares counted pursuant to Section 4(b) of the Plan against the
aggregate number of Shares available under the Plan with respect to such Award, to the extent of
any such forfeiture, reacquisition by the Company, termination or cancellation, shall again be
available for granting Awards under the Plan. Shares that are withheld in full or partial payment
to the Company of the purchase or exercise price relating to an Award or in connection with the
satisfaction of tax obligations relating to an Award shall not be available for granting Awards
under the Plan.

     (b) Accounting for Awards. For purposes of this Section 4, if an Award entitles the
holder thereof to receive or purchase Shares, the number of Shares covered by such Award or to
which such Award relates shall be counted on the date of grant of such Award against the aggregate
number of Shares available for Awards under the Plan. With respect to Options and Stock Appreciation Rights,
the number of Shares available for Awards under the Plan shall be reduced by one Share for each
Share covered by such Award or to which such Award relates. With respect to any Awards other than
Options and Stock Appreciation Rights, the number of Shares available for Awards under the Plan
shall be reduced by 1.21 Shares for each Share covered by such Award or to which such Award
relates. For Stock Appreciation Rights settled in Shares upon exercise, the aggregate number of
Shares with respect to which the Stock Appreciation Right is exercised, rather than the number of
Shares actually issued upon exercise, shall be counted against the number of Shares available for
Awards under the Plan. Awards that do not entitle the holder thereof to receive or purchase Shares
and Awards that are settled in cash shall not be counted against the aggregate number of Shares
available for Awards under the Plan.

 

 

     (c) Adjustments. In the event that any dividend or other distribution (whether in the
form of cash, Shares, other securities or other property), recapitalization, stock split, reverse
stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or
exchange of Shares or other securities of the Company, issuance of warrants or other rights to
purchase Shares or other securities of the Company or other similar corporate transaction or event
affects the Shares such that an adjustment is necessary in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and
type of Shares (or other securities or other property) that thereafter may be made the subject of
Awards, (ii) the number and type of Shares (or other securities or other property) subject to
outstanding Awards, (iii) the purchase or exercise price with respect to any Awards and (iv) the
limitations contained in Section 4(d) of the Plan.

     (d) Award Limitations Under the Plan.

          (i) Section 162(m) Limitation for Awards Denominated in Shares. No Eligible Person
may be granted any Award or Awards denominated in Shares, for more than 3,000,000 Shares (subject
to adjustment as provided for in Section 4(c) of the Plan), in the aggregate in any taxable year.

          (ii) Section 162(m) Limitation for Awards Denominated in Cash. The maximum amount
payable pursuant to all Qualified Performance Awards denominated in cash to any Participant in the
aggregate in any taxable year shall be $25,000,000 in value, whether payable in cash, Shares or
other property. This limitation contained in this Section 4(d)(ii) does not apply to any Award or
Awards subject to the limitation contained in Section 4(d)(i). The limitation contained in this
Section 4(d)(ii) shall apply only with respect to any Award or Awards granted under this Plan, and
limitations on awards granted under any other shareholder approved incentive plan maintained by the
Company will be governed solely by the terms of such other plan.

Section 5. Eligibility.

     Any Eligible Person shall be eligible to be designated a Participant. In determining which
Eligible Persons shall receive an Award and the terms of any Award, the Committee may take into
account the nature of the services rendered by the respective Eligible Persons, their present and
potential contributions to the success of the Company or such other factors as the Committee, in
its discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive Stock Option may
only be granted to full-time or part-time employees (which term as used herein includes, without
limitation, officers and Directors who are also employees), and an Incentive Stock Option shall not
be granted to an employee of an Affiliate unless such Affiliate is also a “subsidiary corporation”
of the Company within the meaning of Section 424(f) of the Code or any successor provision.

 

 

Section 6. Awards.

     (a) Options. The Committee is hereby authorized to grant Options to Eligible Persons
with the following terms and conditions and with such additional terms and conditions not
inconsistent with the provisions of the Plan as the Committee shall determine:

          (i) Exercise Price. The purchase price per Share purchasable under an Option shall be
determined by the Committee and shall not be less than 100% of the Fair Market Value of a Share on
the date of grant of such Option; provided, however, that the Committee may designate a per share
exercise price below Fair Market Value on the date of grant (A) to the extent necessary or
appropriate, as determined by the Committee, to satisfy applicable legal or regulatory requirements
of a foreign jurisdiction or (B) if the Option is granted in substitution for a stock option
previously granted by an entity that is acquired by or merged with the Company or an Affiliate.

          (ii) Option Term. The term of each Option shall be fixed by the Committee but shall
not be longer than 10 years from the date of grant.

          (iii) Time and Method of Exercise. The Committee shall determine the time or times at
which an Option may be exercised in whole or in part and the method or methods by which, and the
form or forms (including, without limitation, cash, Shares, other securities, other Awards or other
property, or any combination thereof, having a Fair Market Value on the exercise date equal to the
applicable exercise price) in which, payment of the exercise price with respect thereto may be made or
deemed to have been made.

     (b) Stock Appreciation Rights. The Committee is hereby authorized to grant Stock
Appreciation Rights to Eligible Persons subject to the terms of the Plan and any applicable Award
Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a
right to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the
date of exercise (or, if the Committee shall so determine, at any time during a specified period
before or after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as
specified by the Committee, which price shall not be less than 100% of the Fair Market Value of one
Share on the date of grant of the Stock Appreciation Right; provided, however, that the Committee
may designate a per share grant price below Fair Market Value on the date of grant (A) to the
extent necessary or appropriate, as determined by the Committee, to satisfy applicable legal or
regulatory requirements of a foreign jurisdiction or (B) if the Stock Appreciation Right is granted
in substitution for a stock appreciation right previously granted by an entity that is acquired by
or merged with the Company or an Affiliate. Subject to the terms of the Plan and any applicable
Award Agreement, the grant price, methods of exercise, dates of exercise, methods of settlement and
any other terms and conditions of any Stock Appreciation Right shall be as determined by the
Committee. The term of any Stock Appreciation Right will be fixed by the Committee but shall not
be longer than 10 years from the date of grant. The Committee may impose such conditions or
restrictions on the exercise of any Stock Appreciation Right as it may deem appropriate.

     (c) Restricted Stock and Restricted Stock Units. The Committee is hereby authorized
to grant Awards of Restricted Stock and Restricted Stock Units to Eligible Persons with the

 

 

following terms and conditions and with such additional terms and conditions not inconsistent with
the provisions of the Plan as the Committee shall determine:

          (i) Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be
subject to such restrictions as the Committee may impose (including, without limitation, any
limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or
other right or property with respect thereto), which restrictions may lapse separately or in
combination at such time or times, in such installments or otherwise, as the Committee may deem
appropriate.

          (ii) Issuance and Delivery of Shares. Any Restricted Stock granted under the Plan
shall be issued at the time such Awards are granted and may be evidenced in such manner as the
Committee may deem appropriate, including book-entry registration or issuance of a stock
certificate or certificates, which certificate or certificates shall be held by the Company. Such
certificate or certificates shall be registered in the name of the Participant and shall bear an
appropriate legend referring to the restrictions applicable to such Restricted Stock. Shares
representing Restricted Stock that is no longer subject to restrictions shall be delivered to the Participant promptly after the
applicable restrictions lapse or are waived. In the case of Restricted Stock Units, no Shares
shall be issued at the time such Awards are granted. Upon the lapse or waiver of restrictions and
the restricted period relating to Restricted Stock Units evidencing the right to receive Shares,
such Shares shall be issued and delivered to the holder of the Restricted Stock Units.

          (iii) Forfeiture. Except as otherwise determined by the Committee, upon a
Participant’s termination of employment or resignation or removal as a Director (in either case, as
determined under criteria established by the Committee) during the applicable restriction period,
all Shares of Restricted Stock and all Restricted Stock Units held by the Participant at such time
shall be forfeited and reacquired by the Company; provided, however, that the Committee may, when
it finds that a waiver would be in the best interest of the Company, waive in whole or in part any
or all remaining restrictions with respect to Shares of Restricted Stock or Restricted Stock Units.

     (d) Dividend Equivalents. The Committee is hereby authorized to grant Dividend
Equivalents to Eligible Persons under which the Participant shall be entitled to receive payments
(in cash, Shares, other securities, other Awards or other property as determined in the discretion
of the Committee) equivalent to the amount of cash dividends paid by the Company to holders of
Shares with respect to a number of Shares determined by the Committee. Subject to the terms of the
Plan and any applicable Award Agreement, such Dividend Equivalents may have such terms and
conditions as the Committee shall determine. Notwithstanding the foregoing, (i) the Committee may
not grant Dividend Equivalents to Eligible Persons in connection with grants of Options or Stock
Appreciation Rights to such Eligible Persons, and (ii) no Dividend Equivalent payments shall be
made to a Participant with respect to any Performance Award prior to the date on which all
conditions or restrictions relating to such Awards have been satisfied, waived or lapsed.

     (e) Performance Awards. The Committee is hereby authorized to grant Performance
Awards to Eligible Persons subject to the terms of the Plan and any applicable Award

 

 

Agreement. A Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares
(including, without limitation, Restricted Stock and Restricted Stock Units), other securities,
other Awards or other property, and (ii) shall confer on the holder thereof the right to receive
payments, in whole or in part, upon the achievement of one or more objective Performance Goals
during such performance periods as the Committee shall establish. Subject to the terms of the
Plan, the Performance Goals to be achieved during any performance period, the length of any
performance period, the amount of any Performance Award granted, the amount of any payment to be
made pursuant to any Performance Award and any other terms and conditions of any Performance Award
shall be determined by the Committee. Qualified Performance Awards shall be conditioned, to the
extent required by 162(m), solely on the achievement of one or more objective Performance Goals
established by the Committee within the time prescribed by Section 162(m), and Qualified
Performance Awards shall otherwise comply with the requirements of Section 162(m).

     (f) Stock Awards. The Committee is hereby authorized to grant to Eligible Persons
Shares without restrictions thereon, as deemed by the Committee to be consistent with the purpose
of the Plan. Subject to the terms of the Plan and any applicable Award Agreement, such Stock
Awards may have such terms and conditions as the Committee shall determine.

     (g) Other Stock-Based Awards. The Committee is hereby authorized to grant to Eligible
Persons such other Awards that are denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, Shares (including, without limitation,
securities convertible into Shares), as are deemed by the Committee to be consistent with the
purpose of the Plan. The Committee shall determine the terms and conditions of such Awards,
subject to the terms of the Plan and the Award Agreement. Shares, or other securities delivered
pursuant to a purchase right granted under this Section 6(g), shall be purchased for consideration
having a value equal to at least 100% of the Fair Market Value of such Shares or other securities
on the date the purchase right is granted. The consideration paid by the Participant may be paid
by such method or methods and in such form or forms (including, without limitation, cash, Shares,
other securities, other Awards or other property, or any combination thereof), as the Committee
shall determine.

     (h) General.

          (i) Consideration for Awards. Awards may be granted for no cash consideration or for
any cash or other consideration as may be determined by the Committee or required by applicable
law.

          (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with or in substitution for any
other Award or any award granted under any other plan of the Company or any Affiliate. Awards
granted in addition to or in tandem with other Awards or in addition to or in tandem with awards
granted under any other plan of the Company or any Affiliate may be granted either at the same time
as or at a different time from the grant of such other Awards or awards.

 

 

          (iii) Forms of Payment under Awards. Subject to the terms of the Plan and of any
applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon
the grant, exercise or payment of an Award may be made in such form or forms as the Committee shall
determine (including, without limitation, cash, Shares, other securities, other Awards or other
property, or any combination thereof), and may be made in a single payment or transfer, in
installments or on a deferred basis, in each case in accordance with rules and procedures
established by the Committee. Such rules and procedures may include, without limitation,
provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant
or crediting of Dividend Equivalents with respect to installment or deferred payments.

          (iv) Term of Awards. The term of each Award shall be for a period not longer than 10
years from the date of grant.

          (v) Limits on Transfer of Awards. Except as otherwise provided in this Section
6(h)(v), no Award (other than a Stock Award) and no right under any such Award shall be
transferable by a Participant other than by will or by the laws of descent and distribution. The
Committee may establish procedures as it deems appropriate for a Participant to designate a Person
or Persons, as beneficiary or beneficiaries, to exercise the rights of the Participant and receive
any property distributable with respect to any Award in the event of the Participant’s death. The
Committee, in its discretion and subject to such additional terms and conditions as it determines,
may permit a Participant to transfer a Non-Qualified Stock Option to any “family member” (as such
term is defined in the General Instructions to Form S-8 (or any successor to such Instructions or
such Form) under the Securities Act of 1933, as amended) at any time that such Participant holds
such Option, provided that such transfers may not be for value (i.e., the transferor may not
receive any consideration therefor) and the family member may not make any subsequent transfers
other than by will or by the laws of descent and distribution. Each Award under the Plan or right
under any such Award shall be exercisable during the Participant’s lifetime only by the Participant
(except as provided herein or in an Award Agreement or amendment thereto relating to a
Non-Qualified Stock Option) or, if permissible under applicable law, by the Participant’s guardian
or legal representative. No Award (other than a Stock Award) or right under any such Award may be
pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation,
attachment or encumbrance thereof shall be void and unenforceable against the Company or any
Affiliate.

          (vi) Restrictions; Securities Exchange Listing. All Shares or other securities
delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such
restrictions as the Committee may deem advisable under the Plan, applicable federal or state
securities laws and regulatory requirements, and the Committee may cause appropriate entries to be
made or legends to be placed on the certificates for such Shares or other securities to reflect
such restrictions. If the Shares or other securities are traded on a securities exchange, the
Company shall not be required to deliver any Shares or other securities covered by an Award unless
and until such Shares or other securities have been admitted for trading on such securities
exchange.

          (vii) Prohibition on Option and Stock Appreciation Right Repricing. Except as
provided in Section 4(c) hereof, no Option may be amended to reduce its initial exercise price,

 

 

and no Option shall be cancelled and replaced with an Option or Options having a lower exercise price.
In addition, except as provided in Section 4(c) hereof, no Stock
Appreciation Right may be amended to reduce its grant price, and no Stock Appreciation Right
shall be cancelled and replaced with a Stock Appreciation Right having a lower grant price.

          (viii) Section 409A Provisions. Notwithstanding anything in the Plan or any Award
Agreement to the contrary, to the extent that any amount or benefit that constitutes “deferred
compensation” to a Participant under Section 409A of the Code and applicable guidance thereunder is
otherwise payable or distributable to a Participant under the Plan or any Award Agreement solely by
reason of the occurrence of a Change in Control or due to the Participant’s disability or
“separation from service” (as such term is defined under Section 409A), such amount or benefit will
not be payable or distributable to the Participant by reason of such circumstance, unless the
Committee determines in good faith that (i) the circumstances giving rise to such Change in
Control, disability or separation from service meet the definition of a change in ownership or
control, disability or separation from service, as the case may be, in Section 409A(a)(2)(A) of the
Code and applicable proposed or final regulations, or (ii) the payment or distribution of such
amount or benefit would be exempt from the application of Section 409A by reason of the short-term
deferral exemption or otherwise. Any payment or distribution that otherwise would be made to a
Participant who is a Specified Employee (as determined by the Committee in good faith) on account
of separation from service may not be made before the date which is six months after the date of
the Specified Employee’s separation from service (or, if earlier, upon the Specified Employee’s
death), unless the payment or distribution is exempt from the application of Section 409A by reason
of the short-term deferral exemption or otherwise.

Section 7. Amendment and Termination; Corrections.

          (a) Amendments to the Plan. The Board may amend, alter, suspend, discontinue or
terminate the Plan at any time; provided, however, that, notwithstanding any other provision of the
Plan or any Award Agreement, prior approval of the shareholders of the Company shall be required
for any amendment to the Plan that:

               (i) requires shareholder approval under the rules or regulations of the Securities and
Exchange Commission, the NASDAQ Global Select Market or any securities exchange that are applicable
to the Company;

               (ii) increases the number of shares authorized under the Plan as specified in Section 4(a) of
the Plan;

               (iii) increases the number of shares or value subject to the limitations contained in Section
4(d) of the Plan;

               (iv) permits repricing of Options or Stock Appreciation Rights which is prohibited by Section
6(h)(vii) of the Plan;

               (v) permits the award of Options or Stock Appreciation Rights at a price less than 100% of the
Fair Market Value of a Share on the date of grant of such Option or Stock Appreciation Right,
contrary to the provisions of Sections 6(a)(i) and 6(b)(ii) of the Plan; and

 

 

          (vi) would cause Section 162(m) of the Code to become unavailable with respect to the Plan.

     (b) Amendments to Awards. Subject to the provisions of the Plan, the Committee may
waive any conditions of or rights of the Company under any outstanding Award, prospectively or
retroactively. Except as otherwise provided in the Plan, the Committee may amend, alter, suspend,
discontinue or terminate any outstanding Award, prospectively or retroactively, but no such action
may adversely affect the rights of the holder of such Award without the consent of the Participant
or holder or beneficiary thereof.

     (c) Correction of Defects, Omissions and Inconsistencies. The Committee may correct
any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award or Award
Agreement in the manner and to the extent it shall deem desirable to implement or maintain the
effectiveness of the Plan.

Section 8. Income Tax Withholding.

     In order to comply with all applicable federal, state, local or foreign income tax laws or
regulations, the Company may take such action as it deems appropriate to ensure that all applicable
federal, state, local or foreign payroll, withholding, income or other taxes, which are the sole
and absolute responsibility of a Participant, are withheld or collected from such Participant. In
order to assist a Participant in paying all or a portion of the applicable taxes to be withheld or
collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the
Committee, in its discretion and subject to such additional terms and conditions as it may adopt,
may permit the Participant to satisfy such tax obligation by (a) electing to have the Company
withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or the
lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such
taxes or (b) delivering to the Company Shares other than Shares issuable upon exercise or receipt
of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes. The election, if any, must be made on or before the date that the amount of
tax to be withheld is determined.

Section 9. General Provisions.

     (a) No Rights to Awards. No Eligible Person, Participant or other Person shall have any claim to be granted any
Award under the Plan, and there is no obligation for uniformity of treatment of Eligible Persons,
Participants or holders or beneficiaries of Awards under the Plan. The terms and conditions of
Awards need not be the same with respect to any Participant or with respect to different
Participants.

     (b) Award Agreements. No Participant shall have rights under an Award granted to such
Participant unless and until an Award Agreement is issued to, and accepted by, the Participant.

     (c) No Rights of Shareholders. Except with respect to Restricted Stock and Stock
Awards, neither a Participant nor the Participant’s legal representative shall be, or have any of
the rights and privileges of, a shareholder of the Company with respect to any Shares issuable

 

 

upon the exercise or payment of any Award, in whole or in part, unless and until the Shares have been
issued.

     (d) No Limit on Other Compensation Plans or Arrangements. Nothing contained in the
Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or
additional compensation plans or arrangements, and such plans or arrangements may be either
generally applicable or applicable only in specific cases.

     (e) No Right to Employment or Directorship. The grant of an Award shall not be
construed as giving a Participant the right to be retained as an employee of the Company or any
Affiliate, or a Director to be retained as a Director, nor will it affect in any way the right of
the Company or an Affiliate to terminate a Participant’s employment at any time, with or without
cause. In addition, the Company or an Affiliate may at any time dismiss a Participant from
employment free from any liability or any claim under the Plan or any Award, unless otherwise
expressly provided in the Plan or in any Award Agreement.

     (f) Governing Law. The internal law, and not the law of conflicts, of the State of
Minnesota, shall govern all questions concerning the validity, construction and effect of the Plan
or any Award, and any rules and regulations relating to the Plan or any Award.

     (g) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan or
any Award under any law deemed applicable by the Committee, such provision shall be construed or
deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended
without, in the determination of the Committee, materially altering the purpose or intent of the
Plan or the Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of
the Plan or any such Award shall remain in full force and effect.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any Affiliate and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such
right shall be no greater than the right of any unsecured general creditor of the Company or any
Affiliate.

     (i) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant
to the Plan or any Award, and the Committee shall determine whether cash shall be paid in lieu of
any fractional Share or whether such fractional Share or any rights thereto shall be canceled,
terminated or otherwise eliminated.

     (j) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

Section 10. Effective Date of the Plan; Effect on Prior Plans.

     The Plan was adopted by the Board on November 19, 2009. The Plan shall be subject to approval
by the shareholders of the Company at the annual meeting of shareholders of the

 

 

Company to be held
on February 9, 2010, and the Plan shall be effective as of the date of such shareholder approval.
On and after shareholder approval of the Plan, no awards will be granted under the Prior Plans, but
all outstanding awards previously granted under the Prior Plans shall remain outstanding. After
shareholder approval of the Plan, such awards made under the Prior Plans shall be governed by the
terms and conditions of the Plan, but any Shares issued under such awards shall not be deemed to be
issued under the Plan for purposes of Section 4(a).

Section 11. Term of the Plan.

     The Plan shall terminate at midnight on February 9, 2020, unless terminated before then by the
Board; provided, however, that no Qualified Performance Award may be granted under the Plan after
the fifth year following the year in which the shareholders of the Company approved the Performance
Goals, unless and until the Performance Goals are reapproved by the shareholders. Awards may be
granted under the Plan until the earlier to occur of the date of termination of the Plan or the
date on which all Shares available for Awards under the Plan have been purchased or acquired. As long as any
Awards are outstanding under the Plan, the terms of the Plan shall govern such Awards.exv10w50

Exhibit 10.50

TRANSITION AGREEMENT

     TRANSITION AGREEMENT (this “Agreement”) made and entered into by and between Biogen Idec
Inc. (the “Company”) and James C. Mullen (the “Executive”), dated as of January 4, 2010.

     WHEREAS, the Executive has been employed as President and Chief Executive Officer of the
Company and has served as a member of the Company’s Board of Directors pursuant to a written
agreement originally dated June 20,2003 (as amended, the “Employment Agreement”); and

     WHEREAS, the Executive and the Company have mutually determined that it is an appropriate
time for the Company to transition to a new President and Chief Executive Officer and therefore
wish to set forth clearly the terms of such transition;

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises, terms,
provisions and conditions set forth in this Agreement, the parties hereby agree as follows:

	1.	 	Dates.

     (a) For purposes of this Agreement, the “Transition Date” shall be such date
designated by the Board of Directors of the Company (the “Board), by notice to the Executive.

     (b) For purposes of this Agreement, the “Separation Date” shall be June 8, 2010 or such
earlier date as the Executive’s employment with the Company terminates due to Executive’s
death or disability or termination by the Company for any reason. If the Transition Date does
not occur prior to the Separation Date, then references herein to the Transition Date shall be
deemed to be references to the Separation Date, where the context so requires.

	2.	 	Resignation. The Executive hereby resigns (a) his position as President and Chief
Executive Officer of the Company, effective as of the Transition Date and (b) his
employment with the Company, effective as of the Separation Date. The Executive further agrees
that he will resign from the Board upon the formal request of the Board at any time following
the Transition Date. The Executive shall not stand for reelection to the Board.
	 
	3.	 	Continuation Period. The period from the date hereof through the Transition Date
shall be referred to as the “Continuation Period”. During the Continuation Period, the
Executive shall continue to serve as the Company’s President and Chief Executive Officer and,
until the end of his current Board term, as a member of the Board, and shall have such duties
and responsibilities as provided in Section 2 of the Employment Agreement. Notwithstanding the
foregoing, it is understood and agreed that following the public disclosure by the Company of
the existence of this Agreement, the Executive will be allowed (i) to devote

 

 

	 	 	working time to career-related matters, including communicating with prospective employers
and/or boards regarding potential future opportunities, provided doing so does not materially
interfere with his performance of his duties and responsibilities hereunder and (ii) to join
the board of directors or other governing body of one or more other entities so long as the
Executive’s membership thereon does not violate Section 6 of the Employment Agreement.

	4.	 	Transition Period.

     (a) The period (if any) from the Transition Date through the Separation Date shall
be referred to as the “Transition Period.” During the Transition Period, the Executive shall
continue as a Company employee as Special Advisor to the Company.

     (b) During the Transition Period, the Executive may be assigned such projects and tasks
as are reasonably related to, and consistent with his former position as,
President and Chief Executive Officer of the Company.

	5.	 	Compensation and Benefits Through the Separation Date.

     (a) From the date hereof through June 8, 2010, the Company shall continue to pay the
Executive his base salary at the rate in effect immediately prior to the date hereof at the
rate of $1,200,000 per year (the “Base Salary”), payable in accordance with the normal payroll
practices of the Company.

     (b) From the date hereof through June 8, 2010, the Executive shall be entitled to
continue to participate in any and all employee benefit plans of the Company in which he was
participating immediately prior to the date hereof and, as of the Separation Date, (i) all
matching credits for contributions with respect to periods through June 8, 2010 will be
credited to the Executive’s accounts (notwithstanding the ordinary crediting schedule
applicable to such plans) and (ii) all such benefits (including matching credits) shall be
fully vested. Exhibit A sets forth a list of certain of the Executive’s benefits as of
December 28, 2009.

     (c) The Executive shall be paid an annual bonus with respect to 2009 in an amount not
less than the product of his 2009 annual bonus target (125% of base salary) and the corporate
multiplier (to be determined by the Compensation Committee of the Board based on performance
metrics previously established in 2009 consistent with the determination made for the
Company’s other executive officers). Such annual bonus will be paid at the time bonus awards
with respect to 2009 are paid to the Company’s other executive officers, but prior to March
15, 2010.

     (d) Subject to the provisions of Section 11(c), no later than the later of June 8, 2010
and ten business days following the Separation Date, the Executive shall be paid a pro-rata
bonus with respect to 2010 based on his Base Salary and an annual bonus target of 125% of the
Base Salary, pro-rated for the portion of calendar year 2010 that precedes June 8, 2010.

2

 

     (e) The Company shall pay or reimburse the Executive for all reasonable and necessary
business expenses incurred or paid by the Executive in the performance of his duties and
responsibilities, in accordance with the applicable reimbursement policy of the Company.

     (f)  Until the Transition Date, the Executive shall retain his current office
location in the Company’s offices and shall maintain the same level of administrative support
and services as are being provided as of the date hereof. Between the Transition Date and the
Separation Date, the Executive shall be provided an office and a level of administrative
support and services comparable to the level being provided as of the date hereof.

	6.	 	Stock Options.

     (a) Attached hereto as Exhibit B is a schedule of all outstanding stock options
previously granted (and not yet exercised) to the Executive by the Company or a predecessor as
of December 28, 2009 (the “Stock Options”). From the date hereof through the Separation Date,
the Stock Options shall continue to vest in accordance with the governing terms of the
applicable stock plan and/or the option agreement or other award documentation governing such
Stock Options.

     (b) Notwithstanding any provision of the Employment Agreement or any stock plan or
agreement evidencing a Stock Option, upon the Separation Date (and immediately prior to the
termination of the Executive’s employment) each Stock Option shall, to the extent not
theretofore vested, become fully vested and exercisable.

     (c) Following the Separation Date, the Executive shall be entitled to exercise each Stock
Option, in whole or in part. until the earlier of (i) three years following June 8, 2010 and
(ii) the expiration of the maximum term of such Stock Option. The Company shall permit the
Executive to elect to net-exercise all such Stock Options (for both exercise prices and taxes)
throughout the above-described period. The Company shall also take such actions as are
necessary to permit the Executive unrestricted resale of shares acquired pursuant to such
Stock Options and the Stock Awards described in Section 7 hereof (including maintaining the
effectiveness of a Form S-8 or similar form and a resale prospectus with respect to such
equity awards).

	7.	 	Restricted Stock. Attached hereto as Exhibit C is a schedule of all
outstanding and unvested restricted stock unit awards previously granted to the Executive by
the Company or a predecessor as of December 28, 2009 (the “Stock Awards”), provided,
however, that the final number of shares available pursuant to the Performance Based
Restricted Stock Unit Award identified in Exhibit C (“PBRSUs”) shall be determined (and
increased or decreased, as the case may be) by the attainment of the applicable performance
goals. From the date hereof through the Separation Date, the Stock Awards shall continue to
vest in accordance with the governing terms of the applicable stock plan or award
documentation governing such Stock Awards. Notwithstanding any provision of the

3

 

	 	 	Employment Agreement or any stock plan or agreement evidencing a Stock Award, as of the
Separation Date, each Stock Award (including “Earned PBRSUs” as determined in accordance
with the terms of the PBRSU grant) shall, to the extent not theretofore vested, become fully
vested and the Company shall deliver to the Executive shares in respect of each such award.

	8.	 	Final Salary and Paid Time Off. On the first regular Company payday immediately
following the Separation Date, the Executive shall receive payment with respect to any accrued
paid time off rights, including but not limited to, pay for the vacation the Executive had
earned and not used as of the Separation Date determined in accordance with Company policy and
as reflected on the books of the Company.

	9.	 	Severance Benefits. In the event that prior to June 8, 2010, the Company has
publicly announced a transaction which would constitute a Change in Control (as defined in the
Employment Agreement), then the Company shall pay to the Executive the cash severance payment
described in Section 5(a) of the Employment Agreement only upon the consummation of such
Change in Control (and otherwise in accordance with the provisions of the Employment
Agreement). No payment will be due to the Executive if such transaction is not consummated.

	10.	 	Non-Competition. The Executive affirms that those provisions of Section 6 of the
Employment Agreement shall continue to apply in accordance with their terms for the one year
period following the Separation Date.

	11.	 	Mutual Release of Claims.

     (a) In consideration of the Company’s promises in this Agreement, Executive hereby
knowingly and voluntarily releases and forever discharges the Company and each of its
parents, subsidiaries and affiliates, together with all of their respective current and
former principals, officers, directors, agents, representatives and employees, and each of
their successors and assigns (collectively, the “Company Releasees”), from any and all
debts, demands, actions, causes of actions, accounts, covenants, contracts, agreements,
claims, damages, omissions, promises, and any and all claims and liabilities whatsoever, of
every name and nature, known or unknown, suspected or unsuspected, both in law and equity
(“Claims”), which Executive ever had, now has, or may hereafter claim to have against the
Company Releasees by reason of any matter, cause or thing whatsoever arising from the
beginning of time to the time Executive signs this Agreement (the “General Release”). This
General Release of Claims shall, except as set forth below, apply to any Claim of any type,
including, without limitation and by way of example only, any and all Claims of any type
that Executive may have arising under the common law, under Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967,
the Older Workers Benefit Protection Act, the Americans With Disabilities Act of 1967, the
Family and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974,
the Sarbanes-Oxley Act of 2002, the Massachusetts Fair Practices Act, Mass. Gen. L.
ch. 151B and Mass. Gen. L. ch. 149, §§ 24A-24J, the
Massachusetts Civil Rights Act, and the Massachusetts Equal Rights Law,

4

 

each as amended, and any other federal, state or local statutes, regulations,
ordinances or common law, or under any policy, agreement, contract, understanding or
promise, written or oral, formal or informal, between any of the Company Releasees and
Executive, including, without limitation, the Employment Agreement, and shall further apply,
without limitation, to any and all Claims in connection with, related to or arising out of
Executive’s employment, or the termination of Executive’s employment, with the Company;
provided, however, that nothing contained in this General Release shall (i) release any
claim that cannot be waived under applicable law, (ii) release Executive’s rights to any
benefits under any employee benefit plan of the Company or an affiliate, with respect to
those Stock Options or Stock Awards specifically listed in this Transition Agreement, or
with respect to health care continuation under COBRA, (iii) release any entitlement to or
with respect to indemnification which the Executive may have pursuant to Section 7 of the
Employment Agreement, as provided in Section 13 below, or pursuant to the Company’s bylaws,
any policy of insurance maintained by the Company or otherwise under law, or (iv) be
construed to release the Executive’s rights under this Agreement or be construed to prohibit
or restrict in any manner the Executive from bringing appropriate proceedings to enforce
this Agreement. Executive acknowledges that his execution of the Transition Agreement
terminates any claims he previously held to any and all equity, compensation, and employee
benefits, other than those specifically identified in this Transition Agreement.

		 	     (b) In consideration of the Executive’s promises in this Agreement, the
Company, on behalf of itself and each of its parents, subsidiaries and affiliates, and each
of their successors and assigns, hereby knowingly and voluntarily releases and forever
discharges Executive from any and all Claims, which it ever had, now has, or may hereafter
claim to have against Executive by reason of any matter, cause or thing whatsoever arising
from the beginning of time to the time the Company signs this Agreement (the “Company
Release”), including, without limitation, all Claims of any type that the Company have
against Executive under any federal, state or local statutes, regulations, ordinances or
common law, or under any policy, agreement, contract, understanding or promise, written or
oral, formal or informal, between Executive and any Company Releasee, including, without
limitation, the Employment Agreement, and any and all Claims in connection with,
related to or arising out of Executive’s employment, or the termination of Executive’s
employment, with the Company; provided, however, that nothing contained in this Company
Release shall release Executive from the Non- Competition provisions of Section 6 of the
Employment Agreement, in accordance with Section 10 above, or from Executive’s obligations
under the Employee’s Proprietary Information and Inventions Agreement, effective June 1,
1989, entered into by the Executive and Biogen Inc. (the “Proprietary Information and
Inventions Agreement”).

		 	     (c) Additionally, the Executive and the Company, on behalf of itself and each of its
parents, subsidiaries and affiliates, and each of their successors and assigns, hereby agree
to execute the Mutual Release and Waiver attached as Exhibit D on the Separation Date. If
the Executive timely delivers the Mutual Release and Waiver, the Executive will be entitled
to the benefits described in Section 5(d) of this Agreement. Absent satisfaction of the
provisions of the foregoing sentence, the Executive is not entitled to the benefits
described in Section 5(d) of this Agreement. For the avoidance of doubt, the Executive’s

5

 

	 	 	entitlement to the benefits described in Section 5(d) of this Agreement is conditioned
solely upon the Executive’s execution of the Mutual Release and Waiver attached as Exhibit D
and is not conditioned on the Company’s execution of such release and waiver. The Company
and the Executive further agree that the Mutual Release and Waiver attached as Exhibit
D shall only be effective with respect to either party if it is executed by both
parties.

	12.	 	Withholding. All payments made by the Company to the Executive under this Agreement
shall be subject to applicable tax withholding.

	13.	 	Indemnification. The Company agrees to provide the Executive with the
indemnification, insurance, expense advancement and other rights set forth in Section 7 of the
Employment Agreement, except that to the extent permitted by law, the Company’s expense
advancement obligations thereunder shall be unconditional.

	14.	 	Legal Fees. The Company shall pay, or reimburse the Executive for the legal fees,
charges and disbursements of the Executive’s counsel, Skadden, Arps, Slate, Meagher &
Flom LLP (“Skadden”) incurred in connection with the negotiation and
execution of this Agreement. Such reimbursement or payment shall be made by the Company within
ten business days of the Executive’s or Skadden’s submission to the Company of an invoice or
invoices in Skadden’s customary form, which submission shall be made no later than thirty (30)
days after the Effective Date. In the event that the Executive recognizes income
with respect to such legal fee reimbursement, the Company shall pay to the Executive an
additional amount such that the Executive is in the same after-tax position he would have been
in had no income been recognized with respect to such reimbursement. Such tax reimbursement
(and any related tax gross-up) shall be paid not later than 60 days following the date the
applicable tax is paid by the Executive. The Company further agrees to pay or reimburse the
Executive, in the manner set forth in this Section 14, for reasonable legal fees incurred by
the Executive following the Effective Date in connection with the matters covered by this
Agreement.

	15.	 	Consultation with Attorney; Voluntary Agreement. Executive understands and agrees
that Executive has the right and has been given the opportunity to review this Agreement and,
specifically, the General Release in Section 11 above, with an attorney. Executive also
understands and agrees that Executive is under no obligation to consent to the General Release
set forth in Section 11 above. Executive represents that he has read this Agreement, including
the General Release set forth in Section 11 and understand its terms and that Executive enters
into this Agreement freely, voluntarily, and without coercion.

	16.	 	Effective Date; Revocation. Executive acknowledges and represents that he has been
given at least twenty-one (21) days during which to review and consider the provisions of this
Agreement and, specifically, the General Release set forth in Section 11 above, although
Executive may sign and return it sooner if Executive so desires. Executive further
acknowledges and represents that Executive has been advised by the Company

6

 

	 	 	that Executive has the right to revoke this Agreement for a period of seven (7) days after
signing it. Executive acknowledges and agrees that, if Executive wishes to revoke this
Agreement, he must do so in a writing, signed by Executive and received by the
Company no later than 5:00 p.m. Eastern Time on the seventh (7th) day of the revocation
period. If no such revocation occurs, the General Release and this Agreement shall
become effective on the eighth (8th) day following Executive’s execution of this
Agreement (the “Effective Date”). Executive further acknowledges and agrees that, in
the event that Executive revokes this Agreement, it shall have no force or effect.

	17.	 	Miscellaneous.

     (a) Except as modified hereby, the Employment Agreement shall remain in effect in
accordance with its terms; provided, however, that the provisions of Section 5 of the
Employment Agreement shall not apply except as explicitly provided in this Agreement. In the
event the terms of this Agreement conflict with the terms of the Employment Agreement, this
Agreement shall control. For the avoidance of doubt, the terms of this Agreement set forth
the parties’ final agreement with respect to the termination of the Executive’s employment
with and service to the Company and the obligations of the parties in connection with such
termination.

     (b) This Agreement may not be modified or amended, and no breach shall be deemed to be
waived, unless agreed to in writing by the Executive and the authorized designee of the
Board. The captions and headings in this Agreement are for convenience only, and in no way
define or describe the scope or content of any provision of this Agreement.

     (c) The Company and the Executive each hereby affirm that it is their mutual view that
the provision of payments and benefits described or referenced herein are exempt from or in
compliance with the requirements of Internal Revenue Code Section 409A and that each party’s
tax reporting shall be completed in a manner consistent with such view. The Executive and
the Company hereby further agree that in the event that any payment or benefit made or
provided to the Executive in connection with his service to the Company results in the
imposition of an excise tax pursuant to Section 4999 of the Internal Revenue Code, the
Executive shall be entitled to the payment described in Section 5(f) of the Employment
Agreement, which shall be paid in the manner set forth therein.

     (d) The parties agree that the Executive’s Proprietary Information and Inventions
Agreement shall remain in effect in accordance with its terms.

     (e) The Executive agrees to return to the Company, on the Separation Date or
immediately thereafter, all files, records, documents, reports, computers, and other
property of the Company in his possession or control and he further agrees that he will not
keep, transfer or use any copies or excerpts of the foregoing items.

7

 

     (f) The Executive agrees that during his employment and from and after the Separation
Date, he will make himself available to the Company to provide reasonable
 cooperation and assistance to the Company with respect to areas and matters in which he was
involved during his employment, including any threatened or actual litigation concerning the
Company, and make himself reasonably available to provide to the Company, if requested,
information and counsel relating to ongoing matters of interest to the Company. The Company
agrees to reimburse the Executive for the actual out-of- pocket expenses incurred by him as
a result of complying with this provision, subject to submission to the Company of
documentation substantiating such expenses as the Company may require. The Executive’s
obligations under this Section 17(f) after the Separation Date shall be
conditioned upon the Company’s execution of the Mutual Release and Waiver attached as
Exhibit D.

     (g)  This Agreement may be executed in counterparts, each of which
shall be deemed an original, and which together shall be deemed to be one and the same
instrument.

     (h) The Company agrees that the Executive is not required to seek other employment or
to attempt in any way to reduce any amounts payable to the Executive. Further, no payment or
benefit provided for in this Agreement shall 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
any affiliate, or otherwise.

     (i) The Company and the Executive agree that the text set forth on Exhibit E hereof
shall be used by the Company for the press release announcing this Agreement and the
Transition Period with respect to the Executive.

     (j) The Company and the Executive agree that, in the event of a dispute with respect to
the provisions of this Agreement, the dispute resolution provisions of Section 8 of the
Employment Agreement shall apply, except that the Company shall pay the Executive’s
reasonable legal fees incurred in connection with his enforcement of his rights hereunder.

     (k)  In the event that any one or more of the provisions of this Agreement
shall be held to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remainder of the Agreement shall not in any way be affected or
impaired thereby.

     (l) This Agreement shall he governed by and construed and enforced in accordance with
the laws of the Commonwealth of Massachusetts, without reference to its choice of law rules.
The parties hereby consent to submit to the exclusive jurisdiction of the state and federal
courts of the Commonwealth of Massachusetts for any actions, suits or proceedings arising
out of or relating to this Agreement.

	18.	 	Notices. Any and all notices, requests, demands and other communications provided
for by this Agreement shall be in writing and shall be effective when delivered in person,
consigned to a reputable national or international courier service or deposited in the

8

 

	 	 	United States mail, postage prepaid, registered or certified, and addressed
to the Executive at his last known address on the books of the Company or,
in the case of the Company, at the Company’s principal place of business,
attention of the General Counsel of the Company, or to such other address
as either party may specify by notice to the other actually received.

	 	 	 	 	 
	ACCEPTED AND AGREED TO:

	 	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 
	James C. Mullen

	 	Biogen Idec Inc.	 	 
	 
	 	 	 	 
	      /s/ James C. Mullen
 

     1/4/10 

	 	      /s/ William D. Young
 

     1/4/10 

	 	 
	Date

	 	Date	 	 

9

 

EXHIBIT A

As of December 28, 2009

The contents of this exhibit are for informational purposes only and shall not be construed to
limit or reduce the entitlements of the Executive to benefits under the terms of any benefit plan
or program of the Company, as modified by this Agreement.

401(k) Savings Plan

Supplemental Savings Plan

Employee Stock Purchase Plan

Disability Benefits

Life and Accidental Death & Dismemberment Insurance

Business Travel Accident Insurance

Medical Benefits, Dental Benefits, and Wellness & Fitness Programs

Career Policy (including, but not limited to, tuition reimbursements and service awards)

Tax and Financial Planning Reimbursement

Vacation Policy

 

 

EXHIBIT B

As of December 28, 2009

The contents of this exhibit are for informational purposes only and shall not be construed to
limit or reduce the entitlements of the Executive to benefits under the terms of any benefit plan
or program of the Company, as modified by this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Exercise	 	 	Options	 	 	Options	 	 	Options	 	 	Options
	Grant Date	 	 	Price	 	 	Granted	 	 	Vested	 	 	Unvested	 	 	Outstanding
	06/16/2000
	 		$51.85	 	 	 	287,500	 	 	 	287,500	 	 	 	0	 	 	 	287,500	 
	12/14/2001
	 		$49.03	 	 	 	402,500	 	 	 	402,500	 	 	 	0	 	 	 	402,500	 
	02/17/2005
	 		$67.57	 	 	 	325,000	 	 	 	325,000	 	 	 	0	 	 	 	325,000	 
	02/07/2006
	 		$44.59	 	 	 	240,000	 	 	 	60,000	 	 	 	60,000	 	 	 	120,000	1
	02/13/2007
	 		$49.17	 	 	 	210,000	 	 	 	105,000	 	 	 	105,000	 	 	 	210,000	 
	02/13/2008
	 		$63.24	 	 	 	166,100	 	 	 	41,525	 	 	 	124,575	 	 	 	166,100	 
	02/25/2009
	 		$50.55	 	 	 	131,530	 	 	 	0	 	 	 	131,530	 	 	 	131,530	 
	Total
	 	 	 	 	 	 	1,762,630	 	 	 	1,221,525	 	 	 	421,105	 	 	 	1,642,630	 

 

			
	1	 	120,000 options have been exercised.

 

 

EXHIBIT C

As of December 28, 2009

The contents of this exhibit are for informational purposes only and shall not be construed to
limit or reduce the entitlements of the Executive to benefits under the terms of any benefit plan
or program of the Company, as modified by this Agreement.

Restricted Stock Unit Grant History

	 	 	 	 	 
	Grant Date	 	RSUs Awarded	 	RSUs Unvested
	02/13/2007

	 	70,000
	 	23,333
	02/13/2008
	 	59,300
	 	39,533
	02/25/2009
	 	49,455
	 	49,455
	Total
	 	178,755
	 	112,321

Performance-Based Restricted Stock Unit Award History

	 	 	 
	Grant Date	 	Granted PBRSUs2
	02/25/2009
	 	49,455

 

			
	2	 	The final number of PBRSUs which have been
granted and will vest may change depending on and subject to both
(i) the extent to which the established performance goals have been
achieved and (ii) the corporate multiplier determined by the Board.

 

 

EXHIBIT D

MUTUAL RELEASE AND WAIVER

     MUTUAL RELEASE AND WAIVER AGREEMENT (this “Release Agreement”), dated as of [DATE], between
Biogen Idec Inc. (the “Company”) and James C. Mullen (the “Executive”), dated as of [DATE].

     WHEREAS, the Company and Executive are parties to a Transition Agreement dated [DATE]
(the “Transition Agreement”); and

     WHEREAS, Executive’s service to the Company pursuant to the Transition Agreement terminated
as of [DATE];

     WHEREAS, the parties have agreed in the Transition Agreement to execute this Release
Agreement and have conditioned the receipt of certain benefits under the Transition Agreement
upon the Executive’s execution of this Release Agreement on the Separation Date (as defined in
the Transition Agreement);

     NOW, THEREFORE, in consideration of the promises and of the releases,
representations, and obligations contained herein, the parties hereto agree as follows:

          1. Mutual Release of Claims.

               In consideration of the Company’s promises in this Release Agreement, Executive hereby
knowingly and voluntarily releases and forever discharges the Company and each of its
parents, subsidiaries and affiliates, together with all of their respective current and
former principals, officers, directors, agents, representatives and employees, and each of
their successors and assigns (collectively, the “Company Releasees”), from any and all debts,
demands, actions, causes of actions, accounts, covenants, contracts, agreements, claims,
damages, omissions, promises, and any and all claims and liabilities whatsoever, of every
name and nature, known or unknown, suspected or unsuspected, both in law and equity
(“Claims”), which Executive ever had, now has, or may hereafter claim to have against the
Releasees by reason of any matter, cause or thing whatsoever arising from the beginning of
time to the time Executive signs this Release Agreement (the “General Release”). This General
Release of Claims shall, except as set forth below, apply to any Claim of any type,
including, without limitation and by way of example only, any and all Claims of any type that
Executive may have arising under the common law, under Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1991, the Americans With Disabilities Act of 1967, the Family
and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974, the
Sarbanes-Oxley Act of 2002, the Massachusetts Fair Practices Act, Mass. Gen. L.
ch. 151B and Mass. Gen. L. ch. 149, §§ 24A-24J, the Massachusetts Civil Rights Act, and the
Massachusetts Equal Rights Law, each as amended, and any other federal, state or local
statutes, regulations, ordinances or common law, or under any policy, agreement, contract,
understanding or promise, written or oral, formal or informal, between any of the Releases
and Executive, and shall further apply, without limitation, to any and all Claims in
connection with, related to or arising out of Executive’s employment or transition period, or
the termination of Executive’s employment or transition period, with the Company;
provided, however, that nothing contained in this General Release shall (i)
release any claim that cannot be

D-1

 

waived under applicable law. (ii) release Executive’s rights to any benefits under any
employee benefit plan of the Company or an affiliate, with respect to those Stock Options or
Stock Awards specifically listed in the Transition Agreement, or with respect to health care
continuation under COBRA, (iii) release any entitlement to indemnification which Executive
may have pursuant to Section 7 of the Employment Agreement between Executive and the Company
originally dated June 20, 2003 (as amended, the “Employment Agreement”), as provided in
Section 13 of the Transition Agreement, or pursuant to the Company’s bylaws, any policy of
insurance maintained by the Company or otherwise in accordance with law, or (iv) be construed
to release the Executive’s rights under this Release Agreement or the Transition Agreement or
to prohibit or restrict in any manner the Executive from bringing appropriate proceedings to
enforce his rights under the Transition Agreement or this Release Agreement. Executive
acknowledges that his execution of the Transition Agreement and this Release Agreement
terminates any claims he previously held to any and all equity, compensation, and employee
benefits, other than those specifically identified in the Transition Agreement.

               In consideration of the Executive’s promises in this Release Agreement, the
Company, on behalf of itself and each of its parents, subsidiaries and affiliates, and each of
their successors and assigns, hereby knowingly and voluntarily releases and forever discharges
Executive from any and all Claims, which it ever had, now has, or may hereafter claim to have
against Executive by reason of any matter, cause or thing whatsoever arising from the beginning
of time to the time the Company signs this Release Agreement (the “Company Release”), including,
without limitation, all Claims of any type that the Company have against Executive under any
federal, state or local statutes, regulations, ordinances or common law, or under any policy,
agreement, contract, understanding or promise, written or oral, formal or informal, between
Executive and any Company Releasee, including, without limitation, the Employment Agreement, and
any and all Claims in connection with, related to or arising out of Executive’s employment or
service to, or the termination of Executive’s employment or service with, the Company;
provided, however, that nothing contained in this Company Release shall (i)
release Executive from the Non-Competition provisions of Section 6 of the Employment
Agreement, in accordance with Section 10 of the Transition Agreement, or from Executive’s
obligations under the Proprietary Information and Inventions Agreement, or (ii) be construed to
prohibit the Company from bringing appropriate proceedings to enforce this Release Agreement.

               2. Consultation with Attorney; Voluntary Agreement. Executive understands and agrees
that Executive has the right and has been given the opportunity to review this Release Agreement
with an attorney. Executive also understands and agrees that Executive is under no obligation to
consent to this Release Agreement. Executive represents that he has read this Release Agreement and
understand its terms and that Executive enter into this Agreement freely, voluntarily, and without
coercion.

               3. Effective Date. Executive acknowledges and represents that he has been
given reasonable time to review and consider the provisions of this Release Agreement. This
Release Agreement shall become effective upon Executive’s execution below (subject to the
provisions of Section 8 below), which shall occur on the Separation Date (as defined in the
Transition Agreement).

               4. Severability. In the event that any one or more of the provisions of
this Release Agreement shall be held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remainder of the Release Agreement shall not in any way be
affected or impaired thereby.

D-2

 

               5. Governing Law. This Release Agreement shall be governed by and construed and
enforced in accordance with the laws of the Commonwealth of Massachusetts, without reference to its
choice of law rules. The parties hereby consent to submit to the exclusive jurisdiction of the
state and federal courts of the Commonwealth of Massachusetts for any actions, suits or proceedings
arising out of or relating to this Release Agreement.

               6. Headings. All descriptive headings in this Release Agreement are inserted for
convenience only and shall be disregarded in construing or applying any provision of this Release
Agreement.

               7. Counterparts. This Release Agreement 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.

               8. Effectiveness
of Release Agreement. It is expressly agreed by the Company and the
Executive that the provisions of this Release Agreement shall be null and void and of no force or
effect unless the Release Agreement is executed by both the executive and the Company.

          IN WITNESS WHEREOF, the Company and Executive have executed this Release
Agreement, on the date and year set forth below.

	 	 	 	 	 
	ACCEPTED AND AGREED TO:

	 	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 
	James C. Mullen

	 	Biogen Idec Inc.	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	Date

	 	Date	 	 
	[To be signed on the Separation Date]

	 	[To be signed on the Separation Date]	 	 

D-3

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