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Exhibit 10.1    
    

VERTEX PHARMACEUTICALS INCORPORATED

2007 NEW HIRE STOCK and OPTION PLAN  

1.     DEFINITIONS  

        Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Vertex Pharmaceuticals Incorporated 2007 New Hire Stock
and Option Plan, have the following meanings: 

        Administrator means a majority of the independent members of the Company's Board of Directors and/or the Management Development and
Compensation Committee of the Company, which is committee of the Board of Directors to which the Board of Directors has delegated power to act on its behalf in administering this Plan in whole or in
part. 

        Affiliate means a corporation that, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or
indirect. 

        Board of Directors means the Board of Directors of the Company. 

        Code means the United States Internal Revenue Code of 1986, as amended. 

        Common Stock means shares of the Company's common stock, $.01 par value. 

        Company means Vertex Pharmaceuticals Incorporated, a Massachusetts corporation. 

        Employee means an employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer
or director of the Company or of an Affiliate), that has been designated by the Administrator to be eligible for one or more Stock Rights under the Plan. 

        Exchange Act means the Securities Exchange Act of 1934, as amended. 

        Fair Market Value of a Share of Common Stock on a particular date shall be the mean between the highest and lowest quoted selling prices
on such date (the "valuation date") on the securities market where the Common Stock is traded, or if there were no sales on the valuation date, on the next preceding date within a reasonable period
(as determined in the sole discretion of the Administrator) on which there were sales. If there were no sales in such a market within a reasonable period, the fair market value shall be as determined
in good faith by the Administrator in its sole discretion. The Fair Market Value as determined in this paragraph shall be rounded down to the next lower whole cent if the foregoing calculation results
in fractional cents. 

        ISO means an option intended to qualify as an incentive stock option under Code Section 422. 

        Non-Employee Director means a member of the Board of Directors who is not an employee of the Company or any Affiliate. 

        Non-Qualified Option means an option that is not intended to qualify as an ISO. 

        Option means a Non-Qualified Option granted under the Plan. 

        Participant means an Employee of the Company or an Affiliate holding one or more Stock Rights that have been granted under the Plan. As
used herein, "Participant" shall include "Participant's Survivors" and a Participant's permitted transferees where the context requires. 

        Participant's Survivors means a deceased Participant's legal representatives and/or any person or persons who acquires the Participant's
rights to a Stock Right by will or by the laws of descent and distribution. 

        Plan means this Vertex Pharmaceuticals Incorporated 2007 New Hire Stock and Option Plan, as amended from time to time. 

 

        Shares means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock
into which the Shares are changed or for which they are exchanged within the provisions of Section 3 of the Plan. The Shares subject to Stock Rights granted under the Plan may be authorized and
unissued shares or shares held by the Company in its treasury, or both. 

        Stock Agreement means an agreement between the Company and a Participant delivered pursuant to the Plan with respect to a Stock Right, in
such form as the Administrator shall approve. 

        Stock-Based Award means a grant by the Company under the Plan of an equity award or equity-based award that is not an Option or Stock
Grant. 

        Stock Grant means a grant by the Company of Shares under the Plan. 

        Stock Right means a right to Shares or the value of Shares of the Company granted pursuant to the Plan as a Non-Qualified
Option, a Stock Grant or a Stock-Based Award. 

2.     PURPOSES OF THE PLAN  

        The Plan is intended to encourage ownership of Shares by new Employees of the Company in order to attract such persons, to induce them to work for the benefit of
the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of Stock Rights to persons who
have not previously been employees or directors of the Company or have not been employees of the Company for a bona fide period of
non-employment, in each case in order to induce such individuals enter into employment with the Company. 

3.     SHARES SUBJECT TO THE PLAN  

        The number of Shares subject to this Plan as to which Stock Rights may be granted from time to time shall be 750,000 or the equivalent of such number of Shares
after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with
Section 17 of this Plan. 

4.     ADMINISTRATION OF THE PLAN  

        The Administrator shall administer the Plan. Subject to the provisions of the Plan, the Administrator is authorized to: 

	a.
	Interpret
the provisions of the Plan and of any Stock Right or Stock Agreement and to make all rules and determinations that it deems necessary or advisable for the administration of
the Plan

	b.
	Determine
which persons shall be granted Stock Rights;

	c.
	Determine
the number of Shares and exercise price for which a Stock Right shall be granted;

	d.
	Specify
the terms and conditions upon which a Stock Right or Stock Rights may be granted;

	e.
	In
its discretion, accelerate:

	(i)
	the
date of exercise of any installment of any Option; or

	(ii)
	the
date or dates of vesting of Shares, or lapsing of Company repurchase rights with respect to any Shares, under any Stock Rights; and

	f.
	In
its discretion, extend the exercise date for any Option. 

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Subject
to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final. 

        The
Administrator may employ attorneys, consultants, accountants or other persons, and the Administrator, the Company and its officers and directors shall be entitled to rely upon the
advice, opinions or valuations of such persons. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Company, all
Participants, and all other interested persons. No member or agent of the Administrator shall be personally liable for any action, determination, or interpretation made in good faith with respect to
this Plan or grants hereunder. Each member of the Administrator shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him or
her or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with this Plan unless arising out of
such member's own fraud or bad faith. Such indemnification shall be in addition to any rights of indemnification the members of the Administrator may have as directors or otherwise under the
by-laws of the Company, or any agreement, vote of stockholders or disinterested directors, or otherwise. 

5.     ELIGIBILITY FOR PARTICIPATION  

        The Administrator shall, in its sole discretion, name the Participants in the Plan. Notwithstanding the foregoing, the Administrator may  only authorize the grant of a Stock Right to a person that has not previously been an employee or director of the Company or has not been an employee of
the Company for a bona fide period of non-employment, in each case who is being offered the Stock Right in order to induce such individuals to enter into employment with the Company;  provided,
however, that the actual grant of such Stock Right shall be conditioned upon such person
becoming
eligible to become a Participant at or prior to the time of execution of the Stock Agreement evidencing such Stock Right. The granting of any Stock Right to any individual shall neither entitle that
individual to, nor disqualify him or her from, participation in other grants of Stock Rights. 

6.     TERMS AND CONDITIONS OF OPTIONS  

        6.1   General.    Each Option shall be set forth in writing in a Stock Agreement, duly executed by the Company and,
to the extent required by law or requested by the Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and
conditions specifically required under this Plan, as the Administrator may deem appropriate including, without limitation, subsequent approval by the stockholders of the Company of this Plan or any
amendments thereto. Each Stock Agreement shall state the option price (per share) of the Shares covered by each Option, the number of Shares to which it pertains, the date or dates on which it first
is exercisable and the date after which it may no longer be exercised (subject to Sections 11, 12 and 13 of this Plan). Option rights may accrue or become exercisable in installments over a period of
time, or upon the achievement of certain conditions or the attainment of stated goals or events. 

        6.2   Limitation on Number of Options Granted.    Notwithstanding anything in this Plan to the contrary, no
Participant shall be granted an aggregate of Options and/or Stock-Based Awards under this Plan in any calendar year for more than an aggregate of 600,000 Shares (subject to adjustment pursuant to
Section 17 to the extent consistent with Section 162(m) of the Code). 

7.     TERMS AND CONDITIONS OF STOCK GRANTS  

        Each Stock Grant shall be set forth in a Stock Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the
Participant. The Stock Agreement shall be in the form approved by the Administrator, with such changes and modifications to such form 

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as
the Administrator, in its discretion, shall approve with respect to any particular Participant or Participants. The Stock Agreement shall contain terms and conditions that the Administrator
determines to be appropriate and in the best interest of the Company; provided, however, that the purchase price per share of the Shares covered by each Stock Grant shall not be less than the par
value per Share. Each Stock Agreement shall state the number of Shares to which the Stock Grant pertains and the terms of any right of the Company to reacquire the Shares subject to the Stock Grant,
including the time and events upon which such rights shall accrue and the purchase price therefor, and any restrictions on the transferability of such Shares. 

8.     TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS  

        The Administrator shall have the right to grant other Stock-Based Awards having such terms and conditions as the Administrator may determine, including, without
limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock units. The
principal terms of each Stock-Based Award shall be set forth in a Stock Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. The
Stock Agreement shall be in a form approved by the Administrator and shall contain terms and conditions that the Administrator determines to be appropriate. 

9.     EXERCISE OF OPTIONS AND ISSUANCE OF SHARES  

        An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee, together with provision for payment of
the full purchase price in accordance with this Section for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Stock Agreement. Such
notice shall be signed by the person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the
Plan or the Stock Agreement. 

        Payment
of the purchase price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check acceptable to the
Administrator, or (b) at the discretion of the Administrator, (i) through delivery of shares of Common Stock not subject to any restriction under any plan and having a Fair Market Value
equal as of the date of exercise to the cash exercise price of the Option, (ii) in accordance with a cashless exercise program established with a securities
brokerage firm, and approved by the Company, (iii) by any other means (excluding, however, delivery of a promissory note of the Participant) that the Administrator determines to be consistent
with the purpose of this Plan and applicable law, or (iv) by any combination of the foregoing. 

        The
Company shall then as soon as is reasonably practicable deliver the Shares as to which such Option was exercised to the Participant (or to the Participant's Survivors, as the case
may be). It is expressly understood that the Company may delay the delivery of the Shares in order to comply with any law or regulation that requires the Company to take any action with respect to the
Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares. 

10.   ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS  

        By its terms, a Stock Right granted to a Participant shall not be transferable by the Participant other than by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act or the rules thereunder or as approved by the Administrator in its
discretion and set forth in the applicable Stock Agreement, provided, however, that the Administrator shall not approve any transfer of a Stock Right for consideration. Except as provided in the
preceding sentence or as otherwise permitted under a Stock Agreement, a Stock Right shall be exercisable, during the Participant's lifetime 

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only
by such Participant (or by his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to
execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary to the
provisions of this Plan, or the levy of any attachment or similar process upon a Stock Right, shall be null and void. 

11.   EFFECT ON STOCK RIGHTS OF TERMINATION OF SERVICE  

        11.1     Except
as otherwise provided in the applicable Stock Agreement or as otherwise provided in Sections 12 or 13, if a Participant ceases to be an Employee,
Non-Employee Director, consultant or advisor with the Company and its Affiliates (for any reason other than termination for "cause," or death) (a "Termination of Service") before the
Participant has exercised all Stock Rights, the Participant may exercise any Stock Right granted to him or her to the extent that the Stock Right is exercisable on the date of such Termination of
Service. Any such Stock Right must be exercised within three months after the date of the Participant's Termination of Service, unless otherwise provided in the applicable Stock Agreement, but in no
event after the expiration of the term of the Stock Right. 

        11.2     The
provisions of this Section, and not the provisions of Section 14, shall apply to a Participant who subsequently dies after the Termination of
Service; provided, however, that in the case of a Participant's death within three (3) months after the Termination of Service, the Participant's Survivors may exercise the Stock Right within
one (1) year after the date of the Participant's death, but in no event after the date of expiration of the term of the Stock Right. 

        11.3     Notwithstanding
anything herein to the contrary, if subsequent to a Participant's Termination of Service, but prior to the exercise of a Stock Right, the
Administrator determines that, either prior or subsequent to the Participant's Termination of Service, the Participant engaged in conduct which would constitute "cause" (as defined in
Section 12), then such Participant shall forthwith cease to have any right to exercise any Stock Right. Stock Rights that consist of Shares issued under Stock Grants for which any restrictions
on transfer or Company repurchase right shall have lapsed, shall be deemed for all purposes to have been "exercised." 

        11.4     Absence
from work with the Company or an Affiliate because of temporary disability or a leave of absence for any purpose, shall not, during the period of
any such absence in accordance with Company policies, be deemed, by virtue of such absence alone, a Termination of Service, except as the Administrator may otherwise expressly provide. 

        11.5     Except
as required by law or as set forth in a Participant's Stock Agreement, Stock Rights granted under the Plan shall not be affected by any change of a
Participant's status within or among the Company and any Affiliates, so long as the Participant continues to be an employee, director, consultant or advisor of the Company or any Affiliate. 

12.   EFFECT ON STOCK RIGHTS OF TERMINATION OF SERVICE FOR "CAUSE"  

        Except as otherwise provided in a Participant's Stock Agreement or as otherwise agreed in writing by the Administrator, if a Participant's service with the
Company or an Affiliate is terminated for "cause," all outstanding and unexercised (vested or unvested) Stock Rights will immediately be forfeited as of the time the Participant is notified that his
or her service is terminated for "cause." Stock Rights that consist of Shares issued under Stock Grants for which any restrictions on transfer or Company repurchase right shall have lapsed, shall be
deemed for all purposes to have been "exercised." For purposes of this Plan, "cause" shall include (and is not limited to) dishonesty with respect to the Company and its Affiliates, insubordination,
substantial malfeasance or non-feasance of duty, unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or similar agreement between the Participant and the Company, and conduct substantially prejudicial to the business of the Company or 

5

 

any
Affiliate. The determination of the Administrator as to the existence of cause will be conclusive on the Participant and the Company. "Cause" is not limited to events that have occurred prior to a
Participant's termination of service, nor is it necessary that the Administrator's finding of "cause" occur prior to termination of service. If the Administrator determines, subsequent to a
Participant's termination of service but prior to the exercise of a Stock Right, that either prior or subsequent to the Participant's termination of service the Participant engaged in conduct which
would constitute "cause," then the right to exercise any Stock Right shall be forfeited as set forth in this Section 12. Any definition in an agreement between a Participant and the Company or
an Affiliate which contains a conflicting definition of "cause" for termination of service and which is in effect at the time of such termination of service shall supersede the definition in this Plan
with respect to that Participant. 

13.   EFFECT ON STOCK RIGHTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR, CONSULTANT OR ADVISOR  

        Except as otherwise provided in a Participant's Stock Agreement, in the event of death of a Participant while the Participant is an Employee,
Non-Employee Director, consultant or advisor of the Company or of an Affiliate, any Stock Rights granted to such Participant may be exercised by the Participant's Survivors to the extent
exercisable but not exercised on the date of death. Any such Stock Right must be exercised within one (1) year after the date of death of the Participant but in no event after the date of
expiration of the term of the Stock Right, notwithstanding that the decedent might have been able to exercise the Stock Right as to some or all of the Shares on a later date if he or she had not died
and had continued to be an Employee, Non-Employee Director, consultant or advisor. 

14.   RIGHTS AS A STOCKHOLDER  

        No Participant to whom a Stock Right (other than a Stock Grant) has been granted shall have rights as a stockholder with respect to any Shares covered by such
Stock Right, except after due exercise thereof and/or tender of the full purchase price for the Shares being purchased pursuant to such exercise. The provisions of this Section 14 shall not be
applicable to Shares issued pursuant to Stock Grants, provided that the Participant shall have tendered the purchase price therefore, notwithstanding the existence of stock transfer restrictions on or
a Company repurchase right with respect to such Shares. 

15.   NO EMPLOYMENT OR OTHER RELATIONSHIP RIGHTS  

        Nothing in this Plan or any Stock Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director status
of a Participant, or to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other
service by the Company or any Affiliate for any period of time. 

16.   DISSOLUTION OR LIQUIDATION OF THE COMPANY  

        Upon the dissolution or liquidation of the Company (other than in connection with a transaction subject to the provisions of Section 17.2), all Stock
Rights granted under this Plan which as of such date shall not have been exercised will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant's
Survivors have not otherwise terminated and expired, the Participant or Participant's Survivors will have the right immediately prior to such dissolution or liquidation to exercise any Stock Right to
the extent that such Stock Right is exercisable as of the date immediately prior to such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding Stock-Based
Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the applicable Stock Agreement. 

6

 

17.   ADJUSTMENTS  

        Upon the occurrence of any of the following events, a Participant's rights with respect to any Stock Right granted to him or her hereunder that have not
previously been exercised in full shall be adjusted as hereinafter provided, unless otherwise specifically provided in the Stock Agreement or in any employment agreement between a Participant and the
Company or an Affiliate: 

        17.1     Stock Dividends and Stock Splits.    If the shares of Common Stock shall be subdivided or
combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock
subject to or deliverable upon the exercise of a Stock Right shall be appropriately increased or decreased, and appropriate adjustments shall be made in the purchase price per Share to reflect such
event. The number of Shares subject to the limitation in Section 6.2 shall also be proportionately adjusted upon the occurrence of such events. 

        17.2     Consolidations or Mergers.    In the event of a consolidation or merger in which the Company is
not the surviving corporation or which results in the acquisition of substantially all the Company's outstanding stock by a single person or entity or by a group of persons and/or entities acting in
concert, or in the event of the sale or transfer of substantially all the Company's assets (any of the foregoing, an "Acquisition"), all then outstanding Stock Rights (excluding any Shares subject to
Stock Grants as to which all Company repurchase rights shall have lapsed) shall terminate unless assumed pursuant to clause (i) below; provided that either (i) the Company's Board of
Directors shall provide for the surviving or acquiring entity or an affiliate thereof to assume the outstanding Stock Rights or grant replacement stock rights in lieu thereof, any such replacement to
be upon an equitable basis as determined by the Administrator, or (ii) if there is no such assumption or substitution, all outstanding Stock Rights shall become immediately and fully
exercisable and all Company repurchase rights with respect to Stock Rights shall lapse, in each case immediately prior to the Acquisition, notwithstanding any restrictions or vesting conditions set
forth therein. 

        17.3     Recapitalization or Reorganization.    In the event of a recapitalization or reorganization of
the Company (other than a transaction described in Section 17.2 above) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of
Common Stock, a Participant upon exercising a Stock Right shall be entitled to receive for the purchase price paid upon such exercise the securities he or she would have received if he or she had
exercised such Stock Right prior to such recapitalization or reorganization. 

        17.4     Adjustments to Stock Grants and Stock-Based Awards.    Upon the happening of any of the events
described in Sections 17.1, 17.2 or 17.3, any outstanding Stock-Based Award and the Shares subject to any Stock Grant, vested or unvested, shall be appropriately adjusted to reflect the events
described in such Sections. The Administrator shall determine the specific adjustments to be made under this Section 17.4. 

18.   ISSUANCES OF SECURITIES  

        Except as expressly provided herein, no issuance (including for this purpose the delivery of shares held in treasury) by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to Stock
Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including without limitation, securities) of the Company. 

7

 

19.   FRACTIONAL SHARES  

        No fractional share shall be issued under the Plan and the person exercising any Stock Right shall receive from the Company cash in lieu of any such fractional
share equal to the Fair Market Value thereof. 

21.   WITHHOLDING  

        If any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act ("FICA") withholdings or other amounts are required by
applicable law or governmental regulation to be withheld from the Participant's salary, wages or other remuneration in connection with the exercise of a Stock Right, the lapsing of a Company
repurchase right, the Company may withhold from the Participant' compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which
employs or employed the Participant, the amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company's Common Stock, is authorized by the
Administrator (and permitted by law). For purposes hereof, the Fair Market Value of any shares withheld for purposes of payroll withholding shall be determined in the manner provided in
Section 1 above, as of the most recent practicable date prior to the date of exercise. If the Fair Market Value of the shares withheld is less than the amount of payroll withholdings required,
the Participant may be required to advance the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise of an Option for less than
the then Fair Market Value on the Participant's payment of such additional withholding. In no event shall shares be withheld from any award in satisfaction of tax withholding requirements in an amount
that exceeds the statutory minimum amount of tax withholding required. 

23.   EFFECTIVE DATE; TERMINATION OF THE PLAN  

        This Plan shall be effective on November 8, 2007, the effective date of its adoption by the Board of Directors. The Plan will terminate on June 1,
2008. The Plan also may be terminated at an earlier date by vote of the Board of Directors. Termination of this Plan will not affect any Stock Rights granted or Stock Agreements executed prior to the
effective date of such termination. 

24.   AMENDMENT OF THE PLAN; AMENDMENT OF STOCK RIGHTS  

        The Plan may be amended by the Board of Directors or the Administrator, including, without limitation, to the extent necessary to qualify the shares issuable upon
exercise of any outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan for listing on any national securities exchange or quotation in any national automated quotation system
of securities dealers. Any amendment approved by the Administrator that the Administrator determines is of a scope that requires stockholder approval shall be subject to stockholder approval. No
modification or amendment of the Plan shall adversely affect a Participant's rights under a Stock Right previously granted to the Participant, without such Participant's consent. 

        In
its discretion, the Administrator may amend any term or condition of any outstanding Stock Right, provided: (i) such term or condition is not prohibited by the Plan; and
(ii) if the amendment is adverse to the Participant, such amendment shall be made only with the consent of the Participant or the Participant's Survivors, as the case may be. Notwithstanding
the foregoing, the Administrator shall not have the authority to reduce the exercise price of any Option after the date of grant, except for adjustments permitted under Section 17 of this Plan. 

25.   GOVERNING LAW  

        This Plan shall be construed and enforced in accordance with the law of The Commonwealth of Massachusetts. 

8

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Exhibit 10.2    
    

July 12,
2007 

Lisa
Kelly

40 Wyman Road

Lexington, MA 02420 

	RE:
	Vertex
Pharmaceuticals Incorporated

Change of Control Agreement 

Dear
Lisa: 

Your
expertise, reputation and position make you a key member of the senior management team of Vertex Pharmaceuticals Incorporated (the "Company"). As a
result, the Company would like to provide you with the following "change of control" benefit to help ensure that in the event the Company becomes involved in a "change of control" transaction, there
will be no distraction from your attention to the needs of the Company. 

	I.
	Definitions.    For the purposes of this Agreement, capitalized terms shall have the following meaning:

	1.
	"Base Salary" shall mean your annual base salary in effect immediately prior to a Change of Control (as such term is defined in  Section I.4 below).

	2.
	"Cause" shall mean:

	(a)
	your
conviction of a felony crime of moral turpitude;

	(b)
	your
willful refusal or failure to follow a lawful directive or instruction of the Company's Board of Directors or the individual(s) to whom you report,  provided that you receive prior written notice of the
directive(s) or instruction(s) that you failed to follow, and provided
further that the Company, in good faith, gives you thirty (30) days to correct any problems and further provided if you
correct the problem(s) you may not be terminated for Cause in that instance;

	(c)
	in
carrying out your duties you commit (i) willful gross negligence, or (ii) willful gross misconduct, resulting in either case in material harm to the Company,  unless such act, or failure to act,
 was believed by you, in good faith, to be in the best interests of the Company; or

	(d)
	your
violation of the Company's policies made known to you regarding confidentiality, securities trading or inside information.

	3.
	"Change of Control" shall mean that:

	(a)
	any
"person" or "group" as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the"Act"), becomes a beneficial owner, as such term is used in
Rule 13d-3 promulgated under the Act, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the outstanding securities of the
Company, as the case may be, having the right to vote in the election of directors; or 

all
or substantially all the business or assets of the Company are sold or disposed of, or the Company or a subsidiary of the Company combines with another company pursuant to a merger, consolidation,
or other similar transaction, other than (i) a transaction solely for the purpose of reincorporating the Company or one of its subsidiaries in a
different jurisdiction or recapitalizing or reclassifying the Company's stock; or (ii) a merger or consolidation in which the shareholders of the Company immediately prior to such merger or
consolidation continue to own at least a majority of the outstanding voting 

 

securities
of the Company or the surviving entity immediately after the merger or consolidation. 

	4.
	"Disability" shall mean a disability as determined under the Company's long-term disability plan or program in effect at the
time the disability first occurs, or if no such plan or program exists at the time of disability, then a "disability" as defined under Internal Revenue Code Section 22(e)(3).

	5.
	"Good Reason" shall mean that within ninety (90) days prior to a Change of Control, or within twelve (12) months after a
Change of Control, one of the following events occurs without your consent:

	(a)
	You
are assigned to material duties or responsibilities that are inconsistent, in any significant respect, with the scope of duties and responsibilities associated with your position
and office immediately prior to the Change of Control (provided that such reassignment of duties or responsibilities is not for Cause, due to your
Disability or at your request);

	(b)
	You
suffer a material reduction in the authorities, duties, or job title and responsibilities associated with your position and office immediately prior to the Change of Control, on
the basis of which you make a good faith determination that you can no longer carry out your position or office in the manner contemplated before the Change of Control
(provided that such reduction in the authorities, duties, or job title and responsibilities is not for Cause, due to your Disability or at your
request);

	(c)
	your
annual base salary is decreased below the Base Salary;

	(d)
	the
principal offices of the Company, or the location of the office to which you are assigned at the time this Agreement is entered into, is relocated to a place
thirty-five (35) or more miles away, without your agreement; or

	(e)
	following
a Change of Control, the Company's successor fails to assume the Company's rights and obligations under this Agreement.

	6.
	"Termination Date" shall mean the last day of your employment with the Company.

	7.
	"Pro-Rata Share of Restricted Stock" shall mean, for any grant of restricted stock as to which the Company's repurchase
right lapses ratably over a specified period (e.g. in equal annual increments over four years), that number of shares as to which the Company's repurchase right with respect to those shares would have
lapsed if the Executive's employment by the Company had continued an additional 18 month period. For any other shares of restricted stock, "Pro-Rata Share of Restricted Stock" shall
mean, as to any shares of restricted stock which were granted on the same date and as to which the Company's repurchase right lapses on the same date, that portion of such shares calculated by
multiplying the number of shares by a fraction, the numerator of which is the number of days that have passed since the date of grant, plus the number of days in 18 months, and the denominator
of which is the total number of days from the date of the grant until the date (without regard to any provisions for earlier vesting upon achievement of a specified goal) on which the Company's
repurchase right would lapse under the terms of the grant.

	II.
	Severance Benefits upon Change of Control.    In the event your employment is terminated
(except for termination for Cause or due to a Disability) within ninety (90) days prior to a Change of Control or within twelve
(12) months after a Change of Control; or if you, of your own initiative, terminate your employment within ninety (90) days prior to a Change of Control or within twelve 

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(12) months
after a Change of Control for Good Reason, in exchange for a general release of all claims, you shall receive the following benefits: 

	1.
	Severance Payment—The Company shall make a lump sum payment to you equal to:

	(a)
	Your
annual Base Salary (provided, however, that in the event you terminate your employment for Good Reason based on a reduction in
Base Salary, then the base salary to be used in calculating the Severance Payment shall be the base salary in effect immediately prior to such reduction in Base Salary); and

	(b)
	any
unpaid portion of a bonus award actually awarded but not yet paid to you under any bonus program applicable to the Company's senior executives and in effect prior to the Change of
Control, pro rated in the event the Termination Date is prior to the end of the bonus plan year. 

The
Severance Payment shall be made in cash within ten (10) days of the execution of a general release and expiration without revocation of any applicable revocation periods under the general
release. 

	2.
	Accelerated Vesting.

	(a)
	Stock
options for the purchase of the Company's securities held by you as of the Termination Date and not then exercisable shall be deemed to have been held by you for an additional
18 months, for purposes of calculating the number of options which are exercisable on the Termination Date. The options to which this accelerated vesting applies shall remain exercisable until
the earlier of (a) the end of the 90-day period immediately following the Termination Date, or (b) the date the stock option(s) would otherwise expire; and

	(b)
	the
Company's lapsing repurchase right with respect to shares of restricted stock held by you shall lapse with respect to the Pro-Rata Share of Restricted Stock.

	(c)
	Notwithstanding
anything to the contrary in this agreement, the terms of any option agreement or restricted stock agreement shall govern the acceleration, if any, of vesting or
lapsing of the Company's repurchase rights, as applicable, except to the extent that the terms of this agreement are more favorable to you.

	3.
	Continued Insurance Coverage—If COBRA coverage is elected by you, the Company shall pay the cost of COBRA continuation
premiums on your behalf to continue standard medical, dental and life insurance coverage for you (or the cash equivalent of same in the event you are ineligible for continued coverage) for a period of
18 months from the Termination Date. 

You
shall not be required to mitigate the amount of the Severance Payment or any other benefit provide under this Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation earned by you as the result of other employment, by retirement benefits, or by offset against any amount claimed to be
owed by you to the Company or otherwise. 

	III.
	Miscellaneous.

	1.
	Employee's Obligations.    Upon the termination of employment, you shall promptly deliver to the Company all property of the
Company and all material documents, statistics, account records, programs and other similar tangible items which may by in your possession or under your control and which relate in a material way to
the business or affairs of the Company or its subsidiaries, and no copies of any such documents or any part thereof shall be retained by you. 

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	2.
	Entire Agreement.    This Agreement and the "Employee Non-Disclosure,
Non-Competition & Inventions Agreement" previously executed by you covers the entire understanding of the parties as to the subject matter hereof,
superseding all prior understandings and agreements related hereto. No modification or amendment of the terms and conditions of this Agreement shall be effective unless in writing and signed by the
parties or their respective duly authorized agents.

	3.
	Governing Law.    This Agreement shall be governed by the laws of The Commonwealth of Massachusetts, as applied to contracts
entered into and performed entirely in Massachusetts by Massachusetts residents.

	4.
	Successors and Assigns.    This Agreement may be assigned by the Company upon a sale, transfer or reorganization of the
Company. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors, permitted assigns, legal representatives and heirs. 

Kindly
indicate your acceptance of the forgoing by signing and dating this Agreement as noted below, and returning one fully executed original to my attention. 

	 	 	Very truly yours,
	

 	
 	

Vertex Pharmaceuticals Incorporated
	

 	
 	

By:	

/s/  JOSHUA S. BOGER      
 Joshua S. Boger
 President and CEO

ACCEPTED
AND AGREED: 

	

/s/  LISA KELLY      
 Signature	

 
	

 Date	

 

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QuickLinks

Exhibit 10.2

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