Document:

Exhibit 10.3

 

December 19,
2008

 

Scott
Siegel

3
Charles Court

Ringoes,
NJ 08551

 

Dear
Scott:

 

The
purpose of this letter is to amend your existing Offer Letter with Redpoint Bio
Corporation (the “Company”), dated September 10, 2007 (your “Existing
Offer Letter”), to comply with the requirements of section 409A of the Internal
Revenue Code of 1986, as amended and the final regulations issued thereunder.

 

Specifically,
the first paragraph of Section 8 of your Existing Offer Letter is hereby
amended in its entirety to read as follows:

 

“If
the Company terminates your employment “Without Cause” (as defined below), then
you will continue to receive (i) your base salary (at the rate in effect
immediately prior to your termination date) for a period of twelve (12) months,
beginning on the first payroll date after the expiration of the thirty (30)-day
period following the date of your termination of employment and each payroll
date thereafter until fully paid, in accordance with the Company’s regular
payroll practices, and (ii) medical and dental coverage at the same level
in effect at the date of your termination of employment (or generally
comparable coverage) for a period of twelve (12) months following your date of
termination for yourself and, where applicable, your spouse and dependents, at
the same premium rates as may be charged from time to time for employees
generally, as if you had continued in employment during such twelve (12)-month
period.  In addition, all of your stock
options outstanding as of your termination date (if any) which would have
vested and become exercisable during the twelve (12)-month period following
your termination date will become fully vested and exercisable as of the date
of your termination of employment.”

 

The
fourth paragraph of Section 8 of your Existing Offer Letter is hereby
deleted in its entirety.

 

Lastly,
a new Section 12 is hereby added to your Existing Offer Letter to read in
its entirety as follows:

 

 

“12.         Section 409A.

 

a.             This Agreement is intended to
comply with the requirements of section 409A of the Internal Revenue Code of
1986, as amended (the “Code”), or an exemption and shall in all respects be
administered in accordance with section 409A or an exemption.  Severance benefits under this Agreement are
intended to be exempt from section 409A under the “separation pay exemption”
and “short-term deferral exemption” to the maximum extent applicable.  Notwithstanding any provision in this
Agreement to the contrary, payment may only be made under this Agreement upon
an event and in a manner permitted by section 409A of the Code or an applicable
exemption.  For purposes of section 409A
of the Code, all payments to be made upon a termination of employment under
this Agreement may only be made upon a “separation from service” under section
409A of the Code, each payment made under this Agreement shall be treated as a
separate payment, and the right to a series of installment payments under this
Agreement is to be treated as a right to a series of separate payments. In no
event shall you, directly or indirectly, designate the calendar year of the
payment.

 

b.             All reimbursements and in kind
benefits provided under this Agreement shall be made or provided in accordance
with the requirements of section 409A, including, where applicable, the
requirement that (i) any reimbursement is for expenses incurred during
your lifetime (or during a shorter period of time specified in this Agreement),
(ii) the amount of expenses eligible for reimbursement, or in kind
benefits provided, during a calendar year may not affect the expenses eligible
for reimbursement, or in kind benefits to be provided, in any other calendar
year, (iii) the reimbursement of an eligible expense will be made on or
before the last day of the calendar year following the year in which the
expense is incurred, and (iv) the right to reimbursement or in kind
benefits is not subject to liquidation or exchange for another benefit.

 

c.             Notwithstanding anything in this
Agreement to the contrary, if required by section 409A of the Code and if you
are a “specified employee” of a publicly-traded corporation as determined under
section 409A at the time of your “separation from service” with the Company,
any payments under this Agreement that are required to be postponed pursuant to
section 409A shall be postponed for a period of six (6) months after your “separation
from service” with the Company, as required by section 409A.  The accumulated postponed amount shall be
paid in a lump sum payment within ten (10) days after the end of the six
(6)-month period, and any remaining installment payments due to you shall
recommence on the first payroll date that occurs after the date that is six
months following your “separation from service” with the Company.  If you die during the postponement period
prior to the payment of the postponed amount, the amounts withheld on account
of section 409A shall be paid to the personal representative of your estate
within sixty (60) days after the date of your death.”

 

 

This
letter may be executed in any number of counterparts, and each such counterpart
shall be deemed to be an original instrument, but all such counterparts
together shall constitute but one agreement. 
This letter shall be governed by, and construed and enforced in
accordance with the substantive and procedural laws of the State of New Jersey without regard to rules governing
conflicts of law.

 

In
all respects not modified herein, your Existing Offer Letter is hereby ratified
and confirmed.

 

Please
acknowledge your acceptance of the foregoing amendment to your Existing Offer
Letter by signing below and returning this letter to Scott Horvitz no later
than December 22, 2008, at which time this letter will be a binding
agreement between you and the Company.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
  /s/F.
  Raymond Salemme

  	
   

  
	
   

  	
   

  
	
  F.
  Raymond Salemme

  	
   

  
	
  Chief
  Executive Officer

  	
   

  

 

 

I
hereby agree with the foregoing amendment to my Existing Offer Letter.

 

 

	
  /s/
  Scott Siegel

  	
   

  	
              12/22/08

  
	
  Scott
  Siegel

  	
   

  	
  DateExhibit 10.1

 

SECOND ACKNOWLEDGEMENT AND AMENDMENT AGREEMENT

 

This Second Acknowledgement and
Amendment Agreement (the “Acknowledgement”) is dated December 23,
2008, and is entered into by and between Martin J. Joyce (the “Employee”),
and BioSphere Medical, Inc., a Delaware corporation (the “Company”).

 

WHEREAS, the Employee and the
Company have entered into a certain letter agreement dated June 14, 2005,
as modified by an Acknowledgement and Amendment Agreement dated October 10,
2007, regarding the Employee’s employment with the Company (the “Letter
Agreement”); and

 

WHEREAS, the parties desire to
modify the provisions of the Letter Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and for other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the
undersigned hereby agree as follows:

 

1.                                      The
Letter Agreement is hereby amended as follows:

 

(a)                                  Section 4.1 is
hereby deleted in its entirety and replaced with the following new Section 4.1:

 

“4.1                           In the
event your at-will employment is terminated by the Company without Cause (as
defined below) in anticipation of, or within twelve months after, a Change in
Control (as defined below), the Company shall continue to pay to you your
salary as in effect on the date of termination and the amount of the annual
bonus paid to you for the fiscal year immediately preceding the date of
termination (payable in annualized monthly installments) and shall, provided
you elect to receive group medical insurance pursuant to the federal “COBRA”
law,  29 U.S.C. § 1161 et seq.,
provide to you (so long as you are entitled to COBRA coverage) reimbursement
for the share of the premium for group medical and dental that is paid by the
Company for active and similarly-situated employees who receive the same type
of coverage for a period of 12 months, provided, however, that the Company’s
obligation to make the aforesaid payments or provide the aforesaid benefits
shall immediately terminate in the event that you violate the provisions of Section 5
or Section 6 during such 12 month period. 
The payment to you of the amounts payable under this Section 4.1
shall be contingent upon your execution and non-revocation of a release in a
form reasonably acceptable to the Company within 30 days of the date of
termination and (ii) shall constitute your sole remedy in the event of a
termination of your employment in the circumstances set forth in this Section 4.1.

 

The payments and benefits shall
commence 60 days following the date of termination, provided that the
release has been properly executed and not revoked as of such date, or, if the
release has been executed and any applicable revocation period has

 

1

 

expired prior to the 60th day following the
date of termination, then the payments and benefits may commence prior to the
60th day but no sooner than the 30th day following the date of termination. 
Notwithstanding the foregoing, if the 60th day following the date of termination occurs
in the calendar year following the termination, then the payments shall
commence no earlier than January 1 of such subsequent calendar year.

 

Payments to
the Employee under this Section 4.1 shall be bifurcated into two portions,
consisting of a portion that does not constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) and a portion that does constitute
nonqualified deferred compensation. 
Payments hereunder shall first be made from the portion that does not
consist of nonqualified deferred compensation until it is exhausted and then
shall be made from the portion that does constitute nonqualified deferred
compensation.  Notwithstanding the
foregoing, because the Employee is a “specified employee” as defined in Section 409A
(a)(3)(B)(i) of the Code, the commencement of the delivery of any such
payments that constitute nonqualified deferred compensation will be delayed to
the date that is 6 months and one day after the Employee’s termination of
employment (the “Earliest Payment Date”) unless payable upon the Employee’s
death.  Any payments that are delayed
pursuant to the preceding sentence shall be paid on the Earliest Payment
Date.  The determination of whether, and
the extent to which, any of the payments to be made to the Employee hereunder
are nonqualified deferred compensation shall be made after the application of
all applicable exclusions under Treasury Reg. § 1.409A-1(b)(9).  Any payments that are intended to qualify for
the exclusion for separation pay due to involuntary separation from service set
forth in Reg. § 1.409A-1(b)(9)(iii) must be paid no later than the last
day of the second taxable year of the Employee following the taxable year of
the Employee in which the Employee’s termination of employment occurs.”

 

(b)                                 Section 15 is
hereby deleted in its entirety and replaced with the following new Section 15:

 

“15.                           Section 409A.

 

Notwithstanding anything else
to the contrary in this agreement, to the extent that any of the payments that
may be made hereunder constitute “nonqualified deferred compensation”, within
the meaning of Section 409A and the Employee is a “specified employee”
upon his separation (as defined under Section 409A), the timing of any
such payment following the separation date shall be modified if, absent such
modification, such payment would otherwise be subject to penalty under Section 409A.  In any event, the Company makes no
representation or warranty and shall have no liability to the Employee or to
any other person if any provisions of this agreement are determined to
constitute “nonqualified deferred compensation” subject to Section 409A
but do not satisfy the requirements of that section.

 

It is intended that each
installment of the severance payments and benefits provided hereunder shall be
treated as a separate “payment” for purposes of Section 409A.  Neither the Company nor the Employee shall
have the right to accelerate or defer the delivery of 

 

2

 

any such payments or benefits
except to the extent specifically permitted or required by Section 409A.”

 

2.                                       The
parties acknowledge and agree that all other provisions of the Letter Agreement
shall remain in full force and effect.

 

3.                                       This
Acknowledgement shall be governed by and construed and interpreted in
accordance with the substantive laws of the Commonwealth of Massachusetts
without regard to its principles of conflicts of law.

 

4.                                       This
Acknowledgement may be executed in any number of counterparts, and each such
counterpart shall be deemed to be an original instrument, but all such
counterparts together shall constitute but one agreement.

 

[Remainder
of Page Intentionally Left Blank]

 

3

 

IN WITNESS WHEREOF, the Parties
have executed this Second Acknowledgement and Amendment Agreement as of the
date first above written.

 

 

	
   

  	
  BIOSPHERE MEDICAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Richard J. Faleschini

  
	
   

  	
  Richard J. Faleschini

  
	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Martin J. Joyce

  
	
   

  	
  Martin J. Joyce

  
	
   

  	
  Executive Vice President of Finance and

  
	
   

  	
  Administration and Chief Financial Officer

  

 

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