Document:

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”),
made this 28th day of April 2008, is entered into by Momenta
Pharmaceuticals, Inc., a Delaware corporation with its principal place of
business at 675 West Kendall Street, Cambridge, Massachusetts (the “Company”),
and                       ,
an individual residing at the address indicated below   (the “Employee”).

 

The Company desires to continue to employ the
Employee and the Employee desires to continue to be employed by the Company. In
consideration of the mutual covenants and promises contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are
acknowledged by the parties hereto, the parties agree as follows:

 

1.             Term of Employment. The Company hereby agrees to continue to employ
the Employee and the Employee hereby accepts continued employment with the
Company, upon the terms set forth in this Agreement, commencing on April 28,  2008 (the “Commencement Date”). There
shall be no definite term of employment, and the Employee’s employment shall continue
to be at-will, such that both the Company and the Employee remain free to end
the employment relationship for any reason, at any time, with or without
notice.

 

2.             Title and Capacity. The Employee shall serve as                             ,
and shall report to the                        of
the Company. The Employee shall be based at the Company’s headquarters in
Cambridge, Massachusetts.  The Employee hereby accepts such employment and
agrees to undertake the duties and responsibilities inherent in such position
and such other duties and responsibilities as the Company shall from time to
time reasonably assign to the Employee. The Employee agrees to devote his/her
entire business time, attention and energies to the business and interests of
the Company. The Employee agrees to abide by the rules, regulations,
instructions, personnel practices and policies of the Company and any changes
therein that may be adopted from time to time by the Company.

 

3.             Compensation and Benefits.

 

3.1           Base
Salary. The Company shall
pay the Employee, in accordance with the Company’s regular payroll practices, a
base salary at the annualized rate of $              . 
Such salary shall be subject to adjustment thereafter, as determined by the
Board or a committee or designee thereof.

 

3.2           Annual
Discretionary Bonus. If the
Company’s Board approves an annual bonus for calendar year 2008 or any calendar
year thereafter, the Employee will be eligible for a discretionary bonus award.
The annual target for the Employee’s bonus will be at % of the Employee’s
annualized base salary. The Company will determine, in its sole discretion,
whether (and in what amount) a bonus award is payable to the Employee. In
determining whether a bonus award in any given year shall be granted, the
Company will review whether it has achieved its annually approved corporate
goals as well as whether the Employee has achieved his/her personal objectives
as established by the Company. In order to be eligible for any bonus hereunder,
the Employee must be an active employee of the Company on the date such bonus
is distributed.

 

3.3           Employee
Benefits. Subject to the
provisions of this Section 3.3, the Employee shall be entitled to
participate in all benefit plans and programs that the Company establishes and
makes available to its employees to the extent that the Employee is eligible
under (and subject to the provisions of) the plan documents governing those
programs. The Employee shall be entitled to twenty (20) days of paid vacation time
per year (pro-rated for any partial year worked), to be administered in
accordance with Company policy.

 

3.4           Reimbursement
of Expenses. The Company
shall reimburse the Employee for all reasonable travel, entertainment and other
expenses incurred or paid by the Employee in connection with, or related to,
the performance of his/her duties, responsibilities or services under this
Agreement, upon presentation by the Employee of documentation, expense
statements, vouchers and/or such other supporting information as the 

 

 

Company may reasonably request; provided, however, that
the amount available for such travel, entertainment and other expenses may be
fixed in advance by the Company.

 

3.5           Withholding. All salary, bonus and other compensation or
benefits payable to the Employee shall be subject to applicable withholdings
and taxes.

 

4.             Payments Upon Resignation By The Employee
Without Good Reason or Termination By The Company For Cause.

 

4.1           Payment
upon Voluntary Resignation or Termination for Cause. If the Employee voluntarily resigns his/her
employment other than for Good Reason (as defined in Section 4.2), or if
the Company terminates the Employee for Cause (as defined in Section 4.3),
the Company shall pay the Employee all accrued and unpaid base salary through
the Employee’s date of termination and any vacation that is accrued but unused
as of such date. The Employee shall not be eligible for any severance or
separation payments (including, but not limited to, those described in Sections
5 and 6  of this Agreement) or any
continuation of benefits (other than those provided for under the Federal
Consolidated Omnibus Budget Reconciliation Act (“COBRA”)), or any other
compensation pursuant to this Agreement or otherwise. The Employee also shall
have such rights, if any, with respect to outstanding stock options and
restricted stock grants as may be provided under the agreement applicable to
each.

 

4.2           Definition
of “Good Reason”. For
purposes of this Agreement, “Good Reason” means the occurrence, without the
Employee’s written consent, of any of the events or circumstances set forth in
clauses (a) through (d) below, provided, however, that an event
described in clauses (a) through (d) below shall not constitute Good
Reason unless it is communicated in writing, within 90 days of the event giving
rise to the claim, by the Employee to the Company or its successor and unless
it is not corrected by the Company or its successor and the Employee has not
been reasonably compensated for any loss or damages resulting therefrom within
thirty (30) days of the Company’s or successor’s receipt of such written
notice:

 

(a)           the
assignment to the Executive of duties inconsistent in any material respect with
the Executive’s position (including status, offices, titles and reporting
requirements), authority or responsibilities, or any other action or omission
by the Company which results in a material diminution in such position,
authority or responsibilities;

(b)           a
material breach of this Agreement by the Company;

(c)           a
material reduction in the Employee’s base salary; or

(d)           a
change by the Company in the location at which the Employee performs his/her
principal duties for the Company to a new location that is both (i) outside
a radius of 50 miles from the
Employee’s principal residence and (ii) more than 30 miles from the location at which the Employee performed his/her
principal duties for the Company.

 

4.3           Definition
of “Cause”. For purposes of
this Agreement, “Cause” is defined as: (i) a good faith finding by no
fewer than two-thirds of the members of the Board (excluding the Employee, if
applicable) of (a) the Employee’s failure to (1) perform reasonably
assigned lawful duties or (2) comply with a lawful instruction of the Board,
Chief Executive Officer or such other executive officer with direct supervisory
authority over the Employee so long as, in the case of (2), the instruction is
consistent with the scope and responsibilities of the Employee’s position, or (b) the
Employee’s dishonesty, willful misconduct or gross negligence, or (c) the
Employee’s substantial and material failure or refusal to perform according to,
or to comply with, the policies, procedures or practices established by the
Company or the Board and, in the case of (a) or (c), the Employee has had
ten (10) days written notice to cure his/her failure to so perform or
comply; or (ii) the Employee’s indictment, or the entering of a guilty
plea or plea of “no contest” with respect to, a felony or any crime involving
moral turpitude.

 

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5.             Termination Without Cause, Termination by
Reason of Death or Disability, Resignation for Good Reason.

 

5.1           If
the Employee’s employment with the Company is terminated by reason of the
Employee’s death or Disability (as defined in Section 5.2), by the Company
without Cause (as defined in Section 4.3),  or by the Employee’s voluntary resignation for Good Reason
(as defined in Section 4.2),  other
than in connection with a Change in Control (as defined in Section 6.1(a)),
then the Employee shall be paid all accrued and unpaid base salary and any
accrued but unused vacation through the date of termination. In addition, if
the Employee’s employment with the Company is terminated by reason of the
Employee’s Disability, by the Company without Cause, or by the Employee’s
voluntary resignation for Good Reason, subject to the Employee’s execution and
non-revocation of a binding severance and mutual release agreement in a form
provided by and satisfactory to the Company (hereinafter, a “Severance
Agreement”), the Employee shall be eligible to receive the following separation
benefits:

 

(a)           an
amount equal to the sum of (i) twelve (12) months of the Employee’s base
salary as of the date of termination (which amount shall be payable in
installments in accordance with the Company’s regular payroll practices, beginning
on the next payroll date following the 30th day after the date of termination)
and (ii) the greater of (x) the annual discretionary target bonus
established by the Board (or any other person or persons having authority with
respect thereto) for the Employee for the fiscal year in which the date of
termination occurs or (y) the annual bonus paid to the Employee for the
most recently completed fiscal year (which amount shall be payable in one lump
sum on the next payroll date following the 30th day after the date
of termination);

 

(b)           if
the Employee is eligible for and elects to continue his/her medical and/or
dental health insurance coverage pursuant to COBRA, the Company shall continue
to contribute, until the earlier of (x) twelve (12) months following the
date of termination or (y) the date on which the Employee becomes eligible
to receive group medical and/or dental insurance coverage through a new
employer (the “Contribution Period”), toward the cost of the Employee’s COBRA
premiums the same amount that it pays on behalf of active and similarly
situated employees receiving the same type of coverage. The remaining balance
of any premium costs, and all premium costs after the Contribution Period,
shall be paid by the Employee on a monthly basis. After the Contribution
Period, the Employee may continue receiving coverage under COBRA at his/her own
cost if and to the extent that he/she remains eligible for COBRA continuation. The
Employee agrees that he/she shall notify the Company in writing immediately
following the date on which he/she becomes eligible for group medical and/or
dental insurance coverage through another employer;

 

(c)           the
Company shall continue to provide benefits to the Employee in accordance with
any applicable life insurance, accident and/or disability plans under which the
Employee was eligible as of the date of termination consistent with such
benefits as may be provided to active and similarly situated employees covered
by such plans, until the earlier of (x) twelve (12) months following the
date of termination or (y) the date on which the Employee becomes eligible
to receive substantially comparable coverage through a new employer (the “Extended
Benefits Period”); provided, however, that if such plans do not permit
continued coverage of the Employee following the date of termination, the
Company shall instead reimburse the Employee for the reasonable cost of
purchasing substantially comparable coverage during the Extended Benefits
Period. The Employee agrees that he/she shall notify the Company in writing
immediately following the date on which he/she becomes eligible for life
insurance, accident and/or disability coverage through a new employer. The
benefits provided and/or payments made under this subsection shall be in
installments in accordance with the Company’s regular payroll practices,
beginning with the payroll date following the 30th day after the
date of termination; and

 

(d)           The
Employee shall be entitled to continued vesting of any unvested stock
options and any future stock option grants awarded to the Employee after the
date of this Agreement (collectively, the “Outstanding Stock Options”) for a
period of twelve (12) months from the date of termination (the “Extended
Vesting Date”) and the right to exercise any Outstanding Stock Options
shall terminate on the earlier of three 

 

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months after the Extended Vesting Date and the original expiration date
of the Outstanding Stock Option (assuming no termination of employment
occurred). The Employee shall also be entitled to immediate vesting, on the
date of termination, of any restricted stock awards with underlying shares that
vest solely through the passage of time (i.e.,
service-based vesting) and not upon the achievement of specified
conditions or milestones (i.e.,
performance-based vesting), including any future restricted stock awards
granted to the Employee after the date of this Agreement that contain
service-based vesting provisions (collectively, “Outstanding Restricted Stock
Awards”), in each case that would have vested during the period of twelve
(12) months from the date of termination.  The Employee shall have no
further rights with respect to any Outstanding Restricted Stock Awards that
remain unvested after taking into account the previous sentence.

 

5.2        For purposes of this Agreement, “Disability” shall mean the Employee’s
absence from the full-time performance of the Employee’s duties with the
Company for 180 consecutive calendar days as a result of incapacity due to
mental or physical illness which is determined to be total and permanent by a
physician selected by the Company or its insurers and acceptable to the
Employee or the Employee’s legal representative.

 

5.3        Taxes.

 

(a)               Notwithstanding
any other provision of this Agreement, except as set forth in Section 5.3(b),
in the event that the Company undergoes a “Change in Ownership or Control” (as
defined below), the Company shall not be obligated to provide to the Employee a
portion of any “Contingent Compensation Payments” (as defined below) that the
Employee would otherwise be entitled to receive to the extent necessary to
eliminate any “excess parachute payments” (as defined in Section 280G(b)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”)) for the
Employee. For purposes of this Section 5.3, the Contingent Compensation
Payments so eliminated shall be referred to as the “Eliminated Payments” and
the aggregate amount (determined in accordance with Treasury Regulation Section 1.280G-1,
Q/A-30 or any successor provision) of the Contingent Compensation Payments so
eliminated shall be referred to as the “Eliminated Amount.”

 

(b)              Notwithstanding
the provisions of Section 5.3(a), no such reduction in Contingent
Compensation Payments shall be made if (i) the Eliminated Amount (computed
without regard to this sentence) exceeds (ii) 110% of  the aggregate
present value (determined in accordance with Treasury Regulation Section 1.280G-1,
Q/A-31, Q/A-32 and Q/A-33 or any successor provisions) of the amount of any
additional taxes that would be incurred by the Employee if the Eliminated
Payments (determined without regard to this sentence) were paid to him/her
(including, state and federal income taxes on the Eliminated Payments, the
excise tax imposed by Section 4999 of the Code payable with respect to all
of the Contingent Compensation Payments in excess of the Employee’s “base
amount” (as defined in Section 280G(b)(3) of the Code), and any
withholding taxes). The override of such reduction in Contingent Compensation
Payments pursuant to this Section 5.3(b) shall be referred to as a “Section 5.3(b) Override.”  For purpose of this paragraph, if any federal
or state income taxes would be attributable to the receipt of any Eliminated
Payment, the amount of such taxes shall be computed by multiplying the amount
of the Eliminated Payment by the maximum combined federal and state income tax
rate provided by law.

 

(c)               For
purposes of this Section 5.3 the following terms shall have the following
respective meanings:

 

(i)            “Change in Ownership or Control” shall
mean a change in the ownership or effective control of the Company or in the
ownership of a substantial portion of the assets of the Company determined in
accordance with Section 280G(b)(2) of the Code.

 

(ii)           “Contingent Compensation Payment” shall mean any payment (or
benefit) in the nature of compensation that is made or made available (under
this Agreement or otherwise) to a 

 

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“disqualified individual” (as defined in Section 280G(c) of
the Code) and that is contingent (within the meaning of Section 280G(b)(2)(A)(i) of
the Code) on a Change in Ownership or Control of the Company.

 

(d)           Any
payments or other benefits otherwise due to the Employee following a Change in
Ownership or Control that could reasonably be characterized (as determined by
the Company) as Contingent Compensation Payments (the “Potential Payments”)
shall not be made until the dates provided for in this Section 5.3(d). Within
30 days after each date on which the Employee first becomes entitled to receive
(whether or not then due) a Contingent Compensation Payment relating to such
Change in Ownership or Control, the Company shall determine and notify the
Employee with reasonable detail regarding the basis for its determinations) (i) which
Potential Payments constitute Contingent Compensation Payments, (ii) the
Eliminated Amount and (iii) whether the Section 5.3(b) Override
is applicable. Within 30 days after delivery of such notice to the Employee,
the Employee shall deliver a response to the Company (the “Employee Response”)
stating either (A) that he/she agrees with the Company’s determination
pursuant to the preceding sentence, in which case he/she shall indicate, if applicable, which Contingent Compensation
Payments, or portions thereof (the aggregate amount of which, determined in
accordance with Treasury Regulation Section 1.280G-1, Q/A-30 or any
successor provision, shall be equal to the Eliminated Amount), shall be treated
as Eliminated Payments or (B) that he/she disagrees with such
determination, in which case he/she  shall set
forth (i) which Potential Payments should be characterized as Contingent
Compensation Payments, (ii) the Eliminated Amount, (iii) whether the Section 5.3(b) Override
is applicable, and (iv) which (if any) Contingent Compensation Payments,
or portions thereof (the aggregate amount of which, determined in accordance
with Treasury Regulation Section 1.280G-1, Q/A-30 or any successor
provision, shall be equal to the Eliminated Amount, if any), shall be treated
as Eliminated Payments. In the event that the Employee fails to deliver an
Employee Response on or before the required date, the Company’s initial
determination shall be final and the Contingent Compensation Payments that
shall be treated as Eliminated Payments shall be determined by the Company in
its absolute discretion. If the Employee states in the Employee Response that he/she
agrees with the Company’s determination, the Company shall make the Potential
Payments to the Employee within three business days following delivery to the
Company of the Employee Response (except for any Potential Payments which are
not due to be made until after such date, which Potential Payments shall be
made on the date on which they are due). If the Employee states in the Employee
Response that he/she disagrees with the Company’s determination, then, for a
period of 60 days following delivery of the Employee Response, the Employee and
the Company shall use good faith efforts to resolve such dispute. If such
dispute is not resolved within such 60-day period, such dispute shall be
settled exclusively by arbitration in Boston, Massachusetts, in accordance with
the rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitrator’s award in any court having jurisdiction. The
Company shall, within three business days following delivery to the Company of
the Employee Response, make to the Employee those Potential Payments as to
which there is no dispute between the Company and the Employee regarding
whether they should be made (except for any such Potential Payments which are
not due to be made until after such date, which Potential Payments shall be
made on the date on which they are due). The balance of the Potential Payments
shall be made within three business days following the resolution of such
dispute. Subject to the limitations contained in Sections 5.3(a) and (b) hereof,
the amount of any payments to be made to the Employee following the resolution
of such dispute shall be increased by amount of the accrued interest thereon
computed at the prime rate announced from time to time by The Wall Street Journal, compounded monthly
from the date that such payments originally were due.

 

(e)           The
provisions of this Section 5.3 are intended to apply to any and all
payments or benefits available to the Employee under this Agreement or any
other agreement or plan of the Company under which the Employee receives
Contingent Compensation Payments.

 

6.             Termination Following Change of Control.

 

6.1           Key
Definitions. As used herein,
the following terms shall have the following respective meanings:

 

5

 

(a)           “Change
in Control” means an event or occurrence set forth in any one or more of
subsections (i) through (iv) below (including an event or occurrence that
constitutes a Change in Control under one of such subsections but is
specifically exempted from another such subsection), provided that such event or occurrence also constitutes a change in
ownership or effective control of the Company or in the ownership of a
substantial portion of the assets of the Company, each within the meaning of Section 409A
(as defined below):

 

(i)            the
acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership of any capital stock of
the Company if, after such acquisition, such Person beneficially owns (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more
of either (x) the then-outstanding shares of common stock of the Company
(the “Outstanding Company Common Stock”) or (y) the combined voting
power of the then-outstanding securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this
subsection (i), the following acquisitions shall not constitute a Change in
Control: (a) any acquisition directly from the Company (excluding an
acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting
securities of the Company, unless the Person exercising, converting or
exchanging such security acquired such security directly from the Company or an
underwriter or agent of the Company), (b) any acquisition by the Company, (c) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or (d) any
acquisition by any corporation pursuant to a transaction which complies with
clauses (x) and (y) of subsection (iii) of this Section 6.1;
or

 

(ii)           such
time as the Continuing Directors (as defined below) do not constitute a
majority of the Board (or, if applicable, the Board of Directors of a successor
corporation to the Company), where the term “Continuing Director” means
at any date a member of the  Board (x) who
was a member of the Board on the date of the execution of this Agreement or (y) who
was nominated or elected subsequent to such date by at least a majority of the
directors who were Continuing Directors at the time of such nomination or
election or whose election to the Board was recommended or endorsed by at least
a majority of the directors who were Continuing Directors at the time of such
nomination or election; provided, however, that there shall be
excluded from this clause (y) any individual whose initial assumption of
office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the
Board; or

 

(iii)          the
consummation of a merger, consolidation, reorganization, recapitalization or
statutory share exchange involving the Company or a sale or other disposition
of all or substantially all of the assets of the Company, in one or a series of
transactions (a “Business Combination”), unless, immediately following
such Business Combination, each of the following two conditions is satisfied: (x) all
or substantially all of the individuals and entities who were the beneficial
owners of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the then-outstanding shares of common
stock and the combined voting power of the then-outstanding securities entitled
to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include,
without limitation, a corporation which as a result of such transaction owns
the Company or substantially all of the Company’s assets either directly or
through one or more subsidiaries) (such resulting or acquiring corporation is
referred to herein as the “Acquiring Corporation”) in substantially the
same proportions as their ownership, immediately prior to such Business
Combination, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, respectively; and (y) no Person (excluding any employee
benefit plan (or related trust) maintained or sponsored by the Company or by
the Acquiring Corporation) beneficially owns, directly or indirectly, 50% or
more of the then outstanding shares of common stock of the Acquiring Corporation,
or of the combined voting power of the then-outstanding securities of such
corporation entitled to vote generally in the election of directors (except to
the extent that such ownership existed prior to the Business Combination); or

 

6

 

(iv)          approval
by the stockholders of the Company of a complete liquidation or dissolution of
the Company.

 

(b)           “Change
in Control Date” means the first date during the period of time the
Employee is employed pursuant to this Agreement on which a Change in Control
occurs. Anything in this Agreement to the contrary notwithstanding, if (a) a
Change in Control occurs, (b) the Employee’s employment with the Company
is terminated prior to the date on which the Change in Control occurs, and (c) it
is reasonably demonstrated by the Employee that such termination of employment (i) was
at the request of a third party who has taken steps reasonably calculated to
effect a Change in Control or (ii) otherwise arose in connection with or in
anticipation of a Change in Control, then for all purposes of this Agreement
the “Change in Control Date” shall mean the date immediately prior to the date
of such termination of employment.

 

(c)           Change
of Control Termination
occurs where the Employee is terminated without Cause (as defined in Section 4.3)
or resigns for Good Reason (as defined in Section 4.2), in either case
within twelve (12) months following the Change in Control Date. In addition,
any termination of the Employee’s employment that occurs within twelve (12)
months following the Change in Control Date shall be communicated by a written
notice to the other party (the “Notice of Termination”), given in accordance
with Section 10 hereof. Any such Notice of Termination shall: (i) indicate
the specific termination provision of this Agreement relied upon by the party
giving such notice, (ii) in the case of a termination by the Company for
Cause or by the Employee for Good Reason, set forth in reasonable detail the
facts and circumstances claimed to provide a basis for such Cause or Good
Reason, and (iii) specify the Date of Termination (as defined below). The
effective date of an employment termination (the “Date of Termination”) shall
be the close of business on the date specified in the Notice of Termination
(which date, other than in the case of a termination due to the Employee’s
death, or a termination by the Company for Cause (which notice shall be
governed by Section 4.3)), may not be less than 15 days or more than 120
days after the date of delivery of such Notice of Termination). In the event
the Company fails to satisfy the requirements of this Section 6.1 (c) regarding
a Notice of Termination, the purported termination of the Employee’s employment
pursuant to such Notice of Termination shall not be effective for purposes of
this Agreement.

 

6.2           Benefits
to Employee Upon a Change of Control Termination.

 

In the event of a Change of
Control Termination, the Employee shall be entitled to all accrued and unpaid
base salary and any accrued but unused vacation through the date of termination
the Employee shall be eligible to receive the following separation benefits:

 

(a)           an
amount equal to the sum of (i) twelve (12) months of the Employee’s base
salary as of the date of termination (which amount shall be payable in one lump
sum on the next payroll date following the 30th day after the date
of termination; provided, however, that if the Change in Control Date precedes
the Change in Control, then such amount shall be payable in accordance with Section 5.1(a)(i) hereof),
and (ii) the greater of (x) the annual discretionary target bonus
established by the Board (or any other person or persons having authority with
respect thereto) for the Employee for the fiscal year in which the date of
termination occurs or (y) the annual bonus paid to the Employee for the
most recently completed fiscal year (which amount shall be payable in one lump
sum on the next payroll date following the 30th day after the date of
termination);

 

(b)           the
Company shall, if the Employee is eligible for and elects to continue his/her
medical and/or dental health insurance coverage pursuant to COBRA, continue to
contribute during the Contribution Period defined above toward the cost of the
Employee’s COBRA premiums the same amount that it pays on behalf of active and
similarly situated employees receiving the same type of coverage. The remaining
balance of any premium costs, and all premium costs after the Contribution
Period, shall be paid by the Employee on a monthly basis. After the
Contribution Period, the Employee may continue receiving coverage under COBRA
at his/her own cost if and to the extent that he/she remains eligible for COBRA
continuation. The 

 

7

 

Employee agrees that he/she shall notify the Company in writing
immediately following the date on which he/she becomes eligible for group
medical and/or dental insurance coverage through another employer; and

 

(c)           during
the Extended Benefits Period defined above, the Company shall continue to
provide benefits to the Employee in accordance with any applicable life
insurance, accident and/or disability plans under which the Employee was
eligible as of the date of termination consistent with such benefits as may be
provided to active and similarly situated employees covered by such plans;
provided, however, that if such plans do not permit continued coverage of the
Employee following the date of termination, the Company shall instead reimburse
the Employee for the reasonable cost of purchasing substantially comparable
coverage during the Extended Benefits Period. The Employee agrees that she
shall notify the Company in writing immediately following the date on which she
becomes eligible for life insurance, accident and/or disability coverage
through another employer. The benefits provided and/or payments made under this
subsection shall be in installments in accordance with the Company’s regular
payroll practices, beginning with the payroll date following the 30th
day after the date of termination; and

 

(d)           the
Employee shall be entitled to immediate vesting of any unvested option shares,
restricted shares and any future grants awarded to the Employee. All such
equity awards (whether stock options or restricted stock grants) will remain exercisable
in accordance with the applicable stock option plan or grant agreement.

 

6.3           Injunctive
Relief. The Company and the
Employee agree that any breach of Section 6 of this Agreement by the
Company is likely to cause the Employee substantial and irrevocable damage and
therefore, in the event of any such breach, in addition to such other remedies
which may be available, the Employee shall have the right to specific
performance and injunctive relief.

 

7.             Mitigation. The Employee shall
not be required to mitigate the amount of any payment or benefits provided for
in Sections 5 or 6 by seeking other employment or otherwise except with
regard to medical and dental coverage if new employment is obtained.

 

8.             Survival. The provisions of Sections 5, 6, 9 (including Exhibit A
referenced in Section 9) and 10 shall survive the termination of this
Agreement for any reason.

 

9.             Non-Competition,
Non-Solicitation, Confidential Information and Developments. The Employee hereby restates and reaffirms
all of his/her obligations pursuant to the Employee Nondisclosure,
Noncompetition and Assignment of Inventions Agreement dated as of                between
the Company and the Employee and attached hereto as Exhibit A (the “Nondisclosure
Agreement”) and acknowledges that the Nondisclosure Agreement remains in full
force and effect and is incorporated fully herein.

 

10.           Notices. Any notice delivered under this Agreement
shall be deemed duly delivered three (3) business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one
(1) business day after it is sent for next-business day delivery signature
required via a reputable nationwide overnight courier service, in each case to
the address of the recipient set forth in the introductory paragraph hereto. Either
party may change the address to which notices are to be delivered by giving
notice of such change to the other party in the manner set forth in this Section 10.

 

11.           Termination
of Executive Retention Agreement. The Company and the Employee hereby agree that, in consideration of
the terms and conditions of this Agreement, the Executive Retention Agreement
dated as of               between
the Company and the Employee (the “Executive Retention Agreement”) is hereby
expressly terminated by mutual agreement and neither party has any further
rights or obligations thereunder.

 

12.           Entire
Agreement. This Agreement,
including the Nondisclosure Agreement attached hereto as Exhibit A,
constitutes the entire agreement between the parties and supersedes all prior
agreements and 

 

8

 

understandings (including, without limitation, the Executive Retention
Agreement), whether written or oral, relating to the subject matter of this
Agreement.

 

13.           Amendment. This Agreement may be amended or modified
only by a written instrument executed by both the Company and the Employee.

 

14.           Governing
Law. This Agreement shall be
governed by and construed in accordance with the laws of the Commonwealth of
Massachusetts (without reference to the conflict of laws provisions thereof). Any
action, suit or other legal proceeding arising under or relating to any
provision of this Agreement shall be commenced only in a court of the
Commonwealth of Massachusetts (or, if appropriate, a federal court located
within the Commonwealth of Massachusetts), and the Company and the Employee
each consents to the jurisdiction of such a court. The Company and the Employee
each hereby irrevocably waive any right to a trial by jury in any action, suit
or other legal proceeding arising under or relating to any provision of this
Agreement.

 

15.           Successors
and Assigns. The Company
shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company as expressly to assume and agree to perform this
Agreement to the same extent that the Company would be required to perform it
if no such succession had taken place. Failure of the Company to obtain an
assumption of this Agreement upon the effectiveness of any succession shall be
a breach of this Agreement and shall constitute Good Reason if the Employee
elects to terminate employment, except that for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination. As used in this Agreement, “Company” shall mean
the Company as defined above and any successor to its business or assets as
aforesaid which assumes and agrees to perform this Agreement, by operation of
law or otherwise. This Agreement shall be binding upon and inure to the benefit
of both parties and their respective successors and assigns; provided, however,
that the obligations of the Employee are personal and shall not be assigned by the
Employee.

 

16.           Acknowledgment. The Employee states and represents that he/she
has had an opportunity to fully discuss and review the terms of this Agreement
with an attorney. The Employee further states and represents that he/she has
carefully read this Agreement, understands the contents herein, freely and
voluntarily assents to all of the terms and conditions hereof, and signs his/her
name of his/her own free act. The Employee further acknowledges that the law
firm of WilmerHale is acting as counsel to the Company in connection with the
transactions contemplated by this Agreement, and is not acting as counsel for
the Employee.

 

17.           Section 409A.

 

17.1         Distributions. Subject to this Section 17.1, any
payments or benefits under Sections 5 and 6 shall begin only upon the date of a
“separation from service” as defined below which occurs on or after the date of
termination under Section 5.1 or a Change of Control Termination under Section 6.1(c).
The following rules shall apply with respect to distribution of the
payments and benefits, if any, to be provided to the Employee under Sections 5
and 6:

 

(a)           It is intended that each installment of the payments and benefits
provided under sections 5 and 6 shall be treated as a separate “payment” for
purposes of Section 409A of the U.S. Internal Revenue Code of 1986, as
amended, and the guidance issued thereunder (“Section 409A”). Neither the
Company nor the Employee shall have the right to accelerate or defer the
delivery of any such payments or benefits except to the extent specifically
permitted or required by Section 409A;

 

(b)           If, as of the date of the “separation from service” of the Employee
from the Company (as defined below), the Employee is not a “specified employee”
(within the meaning of Section 409A), then each installment of the
payments and benefits shall be made on the dates and terms set forth in
sections 5 and 6; and

 

9

 

(c)           If, as of the date of the “separation from service” of the Employee
from the Company, the Employee is a “specified employee” (within the meaning of
Section 409A), then:

 

(i)            Each installment of the payments and benefits
due under Sections 5 and 6 that, in accordance with the dates and terms set
forth herein, will in all circumstances, regardless of when the separation from
service occurs, be paid within the Short-Term Deferral Period (as hereinafter
defined) shall be treated as a short-term deferral within the meaning of
Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent
permissible under Section 409A. For purposes of this Agreement, the “Short-Term
Deferral Period” means the period ending on the later of the 15th
day of the third month following the end of the Employee’s tax year in which
the separation from service occurs and the 15th day of the third
month following the end of the Company’s tax year in which the Employee’s
separation from service occurs; and

 

(ii)           Each installment of the payments and benefits due under Sections 5 and
6 that is not described in Section 17.1(c)(i) and that would, absent
this subsection, be paid within the six-month period following the “separation
from service” of the Employee from the Company shall not be paid until the date
that is six months and one day after such separation from service (or, if
earlier, the Employee’s death), with any such installments that are required to
be delayed being accumulated during the six-month period and paid in a lump sum
on the date that is six months and one day following the Employee’s separation
from service and any subsequent installments, if any, being paid in accordance
with the dates and terms set forth herein; provided, however,
that the preceding provisions of this sentence shall not apply to any
installment of payments and benefits if and to the maximum extent that that
such installment is deemed to be paid under a separation pay plan that does not
provide for a deferral of compensation by reason of the application of Treasury
Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an
involuntary separation from service). Any installments that qualify for the
exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must
be paid no later than the last day of the Employee’s second taxable year
following the Employee’s taxable year in which the separation from service
occurs.

 

17.2         The
determination of whether and when a separation from service has occurred shall
be made and in a manner consistent with, and based on the presumptions set
forth in, Treasury Regulation Section 1.409A-1(h).

 

17.3         All
reimbursements and in-kind benefits provided under the Agreement shall be made
or provided in accordance with the requirements of Section 409A to the
extent that such reimbursements or in-kind benefits are subject to Section 409A.

 

17.4         The
Company makes no representation or warranty and shall have no liability to the
Employee or any other person if any provisions of this Agreement are determined
to constitute deferred compensation subject to Section 409A but do not
satisfy an exemption from, or the conditions of, such section.

 

18.           Miscellaneous.

 

18.1         No
delay or omission by the Company in exercising any right under this Agreement
shall operate as a waiver of that or any other right. A waiver or consent given
by the Company on any one occasion shall be effective only in that instance and
shall not be construed as a bar to or waiver of any right on any other
occasion.

 

18.2         The
captions of the sections of this Agreement are for convenience of reference
only and in no way define, limit or affect the scope or substance of any
section of this Agreement.

 

18.3         In
case any provision of this Agreement shall be invalid, illegal or otherwise
unenforceable, the validity, legality and enforceability of the remaining
provisions shall in no way be affected or impaired thereby.

 

10

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year set forth above.

 

	
   

  	
  MOMENTA PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name

  

 

11Exhibit 10.4

 

SECOND AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”), made this 28th day of April 2008,
is entered into by Momenta Pharmaceuticals, Inc., a Delaware corporation
with its principal place of business at 675 West Kendall Street, Cambridge,
Massachusetts (the “Company”), and Ganesh Venkataraman, an individual residing
at the address indicated below (the “Employee”).

 

The Company desires to continue to employ the Employee and the Employee
desires to continue to be employed by the Company.  In consideration of the mutual covenants and
promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are acknowledged by the parties hereto, the
parties agree as follows:

 

1.                                       Term of
Employment.  The Company
hereby agrees to continue to employ the Employee and the Employee hereby
accepts continued employment with the Company, upon the terms set forth in this
Agreement, commencing on April 28,  2008
(the “Commencement Date”).  There shall be no definite term of
employment, and the Employee’s employment shall continue to be at-will, such
that both the Company and the Employee remain free to end the employment
relationship for any reason, at any time, with or without notice.

 

2.                                       Title and
Capacity.  The
Employee shall serve as Senior Vice President, Research and Chief Scientific
Officer and shall report to both the Chief Executive Officer and the Chief
Operating Officer of the Company.  The
Employee shall be based at the Company’s headquarters in Cambridge,
Massachusetts.  The Employee hereby
accepts such employment and agrees to undertake the duties and responsibilities
inherent in such position and such other duties and responsibilities as the
Company shall from time to time reasonably assign to the Employee.  The Employee agrees to devote his/her entire
business time, attention and energies to the business and interests of the
Company.  Provided that the Employee is
in compliance with the immediate preceding sentence (and except to the extent
that the restrictions contained in Section 9.2 may apply), nothing in this
Agreement shall prohibit Employee from engaging in religious, charitable or
other community or non-profit activities, including MIT visiting professor, TiE
and Chuloporn Institute.  The Employee
agrees to abide by the rules, regulations, instructions, personnel practices
and policies of the Company and any changes therein that may be adopted from
time to time by the Company.

 

3.                                     Compensation
and Benefits.

 

3.1                                 Base Salary.  The Company shall pay the Employee, in
accordance with the Company’s regular payroll practices, a base salary at the
annualized rate of $302,565.16.  Such
salary shall be subject to adjustment thereafter, as determined by the Board or
a committee or designee thereof.

 

3.2                                 Annual Discretionary Bonus.  If the Company’s Board approves an annual
bonus for calendar year 2008 or any calendar year thereafter, the Employee will
be eligible for a discretionary bonus award. 
The annual target for the Employee’s bonus will be at 35% of the
Employee’s annualized base salary.  The Company
will determine, in its sole discretion, whether (and in what amount) a bonus
award is payable to the Employee.  In
determining whether a bonus award in any given year shall be granted, the
Company will review whether it has achieved its annually approved corporate
goals as well as whether the Employee has achieved his/her personal objectives
as established by the Company.  In order
to be eligible for any bonus hereunder, the Employee must be an active employee
of the Company on the date such bonus is distributed.

 

3.3                                 Employee Benefits.  Subject to the provisions of this Section 3.3,
the Employee shall be entitled to participate in all benefit plans and programs
that the Company establishes and makes available to its employees to the extent
that the Employee is eligible under (and subject to the provisions of) the plan
documents governing those programs.  The
Employee shall be entitled to twenty (20) days of paid vacation time per year
(pro-rated for any partial year worked), to be administered in accordance with
Company policy.

 

 

3.4                                 Reimbursement of Expenses.  The Company shall reimburse the Employee for
all reasonable travel, entertainment and other expenses incurred or paid by the
Employee in connection with, or related to, the performance of his/her duties,
responsibilities or services under this Agreement, upon presentation by the
Employee of documentation, expense statements, vouchers and/or such other
supporting information as the Company may reasonably request; provided, however,
that the amount available for such travel, entertainment and other expenses may
be fixed in advance by the Company.

 

3.5                                 Withholding.  All salary, bonus and other compensation or
benefits payable to the Employee shall be subject to applicable withholdings
and taxes.

 

4.                                     Payments Upon
Resignation By The Employee Without Good Reason or Termination By The Company
For Cause.

 

4.1                                 Payment upon Voluntary
Resignation or Termination for Cause.  If the Employee voluntarily resigns his/her
employment other than for Good Reason (as defined in Section 4.2), or if
the Company terminates the Employee for Cause (as defined in Section 4.3),
the Company shall pay the Employee all accrued and unpaid base salary through the
Employee’s date of termination and any vacation that is accrued but unused as
of such date.  The Employee shall not be
eligible for any severance or separation payments (including, but not limited
to, those described in Sections 5 and 6  of
this Agreement) or any continuation of benefits (other than those provided for
under the Federal Consolidated Omnibus Budget Reconciliation Act (“COBRA”)), or
any other compensation pursuant to this Agreement or otherwise.  The Employee also shall have such rights, if any,
with respect to outstanding stock options and restricted stock grants as may be
provided under the agreement applicable to each.

 

4.2                             Definition of “Good Reason”.  For purposes of this Agreement, “Good Reason”
means the occurrence, without the Employee’s written consent, of any of the
events or circumstances set forth in clauses (a) through (d) below,
provided, however, that an event described in clauses (a) through (d) below
shall not constitute Good Reason unless it is communicated in writing, within
90 days of the event giving rise to the claim, by the Employee to the Company
or its successor and unless it is not corrected by the Company or its successor
and the Employee has not been reasonably compensated for any loss or damages
resulting therefrom within thirty (30) days of the Company’s or successor’s
receipt of such written notice:

 

(a)                                  the assignment to the
Executive of duties inconsistent in any material respect with the Executive’s
position (including status, offices, titles and reporting requirements),
authority or responsibilities, or any other action or omission by the Company
which results in a material diminution in such position, authority or
responsibilities;

(b)                                 a material breach of this
Agreement by the Company;

(c)                                  a material reduction in the
Employee’s base salary; or

(d)                                 a change by the Company in
the location at which the Employee performs his/her principal duties for the
Company to a new location that is both (i) outside a radius of 50 miles from the Employee’s principal
residence and (ii) more than 30
miles from the location at which the Employee performed his/her principal
duties for the Company.

 

4.3                                 Definition of “Cause”.  For purposes of this Agreement, “Cause” is
defined as: (i) a good faith finding by no fewer than two-thirds of the
members of the Board (excluding the Employee, if applicable) of (a) the
Employee’s failure to (1) perform reasonably assigned lawful duties or (2) comply
with a lawful instruction of the Board, Chief Executive Officer or such other
executive officer with direct supervisory authority over the Employee so long
as, in the case of (2), the instruction is consistent with the scope and
responsibilities of the Employee’s position, or (b) the Employee’s
dishonesty, willful misconduct or gross negligence, or (c) the Employee’s
substantial and material failure or refusal to perform according to, or to
comply with, the policies, procedures or practices established by the Company
or the Board and, in the case of (a) or (c), the Employee has 

 

2

 

had
ten (10) days written notice to cure his/her failure to so perform or
comply; or (ii) the Employee’s indictment,  or the entering of a guilty plea or plea of “no
contest” with respect to, a felony or any crime involving moral turpitude.

 

5.                              Termination
Without Cause, Termination by Reason of Death or Disability, Resignation for
Good Reason.

 

5.1                                 If the Employee’s employment
with the Company is terminated by reason of the Employee’s death or Disability
(as defined in Section 5.2), by the Company without Cause (as defined in Section 4.3),  or by the Employee’s voluntary resignation
for Good Reason (as defined in Section 4.2),  other than in connection with a Change in Control (as defined
in Section 6.1(a)), then the Employee shall be paid all accrued and unpaid base
salary and any accrued but unused vacation through the date of
termination.  In addition, if the
Employee’s employment with the Company is terminated by reason of the Employee’s
Disability, by the Company without Cause, or by the Employee’s voluntary
resignation for Good Reason, subject to the Employee’s execution and
non-revocation of a binding severance and mutual release agreement in a form
provided by and satisfactory to the Company (hereinafter, a “Severance Agreement”),
the Employee shall be eligible to receive the following separation benefits:

 

(a)                                  an amount equal to the sum
of (i) twelve (12) months of the Employee’s base salary as of the date of
termination (which amount shall be payable in installments in accordance with
the Company’s regular payroll practices, beginning on the next payroll date
following the 30th day after the date of termination) and (ii) the greater
of (x) the annual discretionary target bonus established by the Board (or
any other person or persons having authority with respect thereto) for the
Employee for the fiscal year in which the date of termination occurs or (y) the
annual bonus paid to the Employee for the most recently completed fiscal year
(which amount shall be payable in one lump sum on the next payroll date
following the 30th day after the date of termination);

 

(b)                                 if the Employee is eligible
for and elects to continue his/her medical and/or dental health insurance
coverage pursuant to COBRA, the Company shall continue to contribute, until the
earlier of (x) twelve (12) months following the date of termination or (y) the
date on which the Employee becomes eligible to receive group medical and/or
dental insurance coverage through a new employer (the “Contribution Period”),
toward the cost of the Employee’s COBRA premiums the same amount that it pays
on behalf of active and similarly situated employees receiving the same type of
coverage.  The
remaining balance of any premium costs, and all premium costs after the
Contribution Period, shall be paid by the Employee on a monthly basis.  After the Contribution Period, the Employee
may continue receiving coverage under COBRA at his/her own cost if and to the
extent that he/she remains eligible for COBRA continuation.  The Employee agrees that he/she shall notify
the Company in writing immediately following the date on which he/she becomes
eligible for group medical and/or dental insurance coverage through another
employer;

 

(c)                                  the Company shall continue
to provide benefits to the Employee in accordance with any applicable life
insurance, accident and/or disability plans under which the Employee was
eligible as of the date of termination consistent with such benefits as may be
provided to active and similarly situated employees covered by such plans,
until the earlier of (x) twelve (12) months following the date of termination
or (y) the date on which the Employee becomes eligible to receive
substantially comparable coverage through a new employer (the “Extended
Benefits Period”); provided, however, that if such plans do not permit
continued coverage of the Employee following the date of termination, the
Company shall instead reimburse the Employee for the reasonable cost of
purchasing substantially comparable coverage during the Extended Benefits
Period.  The Employee agrees that he/she
shall notify the Company in writing immediately following the date on which
he/she becomes eligible for life insurance, accident and/or disability coverage
through a new employer.  The benefits
provided and/or payments made under this subsection shall be in installments in
accordance with the Company’s regular payroll practices, beginning with the
payroll date following the 30th day after the date of termination;
and

 

3

 

(d)                                 The Employee shall be
entitled to continued vesting of any unvested stock options and any future
stock option grants awarded to the Employee after the date of this Agreement
(collectively, the “Outstanding Stock Options”) for a period of twelve (12)
months from the date of termination (the “Extended Vesting Date”) and the right
to exercise any Outstanding Stock Options shall terminate on the earlier
of three months after the Extended Vesting Date and the original expiration
date of the Outstanding Stock Option (assuming no termination of employment
occurred).  The Employee shall also be
entitled to immediate vesting, on the date of termination, of any restricted
stock awards with underlying shares that vest solely through the passage of time
(i.e., service-based vesting)
and not upon the achievement of specified conditions or milestones (i.e., performance-based vesting), including any future
restricted stock awards granted to the Employee after the date of this
Agreement that contain service-based vesting provisions (collectively, “Outstanding
Restricted Stock Awards”), in each case that would have vested during the
period of twelve (12) months from the date of termination.  The Employee
shall have no further rights with respect to any Outstanding Restricted Stock
Awards that remain unvested after taking into account the previous sentence.

 

5.2                                 For purposes of this
Agreement, “Disability” shall mean the Employee’s absence from the full-time
performance of the Employee’s duties with the Company for 180 consecutive
calendar days as a result of incapacity due to mental or physical illness which
is determined to be total and permanent by a physician selected by the Company
or its insurers and acceptable to the Employee or the Employee’s legal representative.

 

5.3                                 Taxes.

 

(a)                                  Notwithstanding any other
provision of this Agreement, except as set forth in Section 5.3(b), in the
event that the Company undergoes a “Change in Ownership or Control” (as defined
below), the Company shall not be obligated to provide to the Employee a portion
of any “Contingent Compensation Payments” (as defined below) that the Employee
would otherwise be entitled to receive to the extent necessary to eliminate any
“excess parachute payments” (as defined in Section 280G(b)(1) of the
Internal Revenue Code of 1986, as amended (the “Code”)) for the
Employee.  For purposes of this Section 5.3,
the Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated
Payments” and the aggregate amount (determined in accordance with Treasury
Regulation Section 1.280G-1, Q/A-30 or any successor provision) of the
Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated
Amount.”

 

(b)                                 Notwithstanding the
provisions of Section 5.3(a), no such reduction in Contingent Compensation
Payments shall be made if (i) the Eliminated Amount (computed without
regard to this sentence) exceeds (ii) 110% of  the aggregate
present value (determined in accordance with Treasury Regulation Section 1.280G-1,
Q/A-31, Q/A-32 and Q/A-33 or any successor provisions) of the amount of any
additional taxes that would be incurred by the Employee if the Eliminated
Payments (determined without regard to this sentence) were paid to him/her
(including, state and federal income taxes on the Eliminated Payments, the
excise tax imposed by Section 4999 of the Code payable with respect to all
of the Contingent Compensation Payments in excess of the Employee’s “base
amount” (as defined in Section 280G(b)(3) of the Code), and any
withholding taxes).  The override of such
reduction in Contingent Compensation Payments pursuant to this Section 5.3(b) shall
be referred to as a “Section 5.3(b) Override.”  For purpose of this paragraph, if any federal
or state income taxes would be attributable to the receipt of any Eliminated
Payment, the amount of such taxes shall be computed by multiplying the amount
of the Eliminated Payment by the maximum combined federal and state income tax
rate provided by law.

 

(c)                                  For purposes of this Section 5.3
the following terms shall have the following respective meanings:

 

(i)                                     “Change in Ownership or
Control” shall mean a change in the ownership or effective control of the
Company or in the ownership of a substantial portion of the assets of the
Company determined in accordance with Section 280G(b)(2) of the Code.

 

4

 

(ii)                                  “Contingent Compensation
Payment” shall mean any payment (or benefit) in the nature of compensation
that is made or made available (under this Agreement or otherwise) to a “disqualified
individual” (as defined in Section 280G(c) of the Code) and that is
contingent (within the meaning of Section 280G(b)(2)(A)(i) of the
Code) on a Change in Ownership or Control of the Company.

 

(d)                                 Any payments or other
benefits otherwise due to the Employee following a Change in Ownership or
Control that could reasonably be characterized (as determined by the Company)
as Contingent Compensation Payments (the “Potential Payments”) shall not
be made until the dates provided for in this Section 5.3(d).  Within 30 days after each date on which the
Employee first becomes entitled to receive (whether or not then due) a
Contingent Compensation Payment relating to such Change in Ownership or
Control, the Company shall determine and notify the Employee with reasonable
detail regarding the basis for its determinations) (i) which Potential
Payments constitute Contingent Compensation Payments, (ii) the Eliminated
Amount and (iii) whether the Section 5.3(b) Override is
applicable.  Within 30 days after
delivery of such notice to the Employee, the Employee shall deliver a response
to the Company (the “Employee Response”) stating either (A) that he/she
agrees with the Company’s determination pursuant to the preceding sentence, in
which case he/she shall
indicate, if applicable, which Contingent Compensation Payments, or portions
thereof (the aggregate amount of which, determined in accordance with Treasury
Regulation Section 1.280G-1, Q/A-30 or any successor provision, shall be
equal to the Eliminated Amount), shall be treated as Eliminated Payments or (B) that
he/she disagrees with such determination, in which case he/she  shall set forth (i) which Potential Payments should be
characterized as Contingent Compensation Payments, (ii) the Eliminated
Amount, (iii) whether the Section 5.3(b) Override is applicable,
and (iv) which (if any) Contingent Compensation Payments, or portions
thereof (the aggregate amount of which, determined in accordance with Treasury
Regulation Section 1.280G-1, Q/A-30 or any successor provision, shall be
equal to the Eliminated Amount, if any), shall be treated as Eliminated
Payments.  In the event that the Employee
fails to deliver an Employee Response on or before the required date, the
Company’s initial determination shall be final and the Contingent Compensation
Payments that shall be treated as Eliminated Payments shall be determined by
the Company in its absolute discretion. 
If the Employee states in the Employee Response that he/she agrees with
the Company’s determination, the Company shall make the Potential Payments to
the Employee within three business days following delivery to the Company of
the Employee Response (except for any Potential Payments which are not due to
be made until after such date, which Potential Payments shall be made on the
date on which they are due).  If the
Employee states in the Employee Response that he/she disagrees with the Company’s
determination, then, for a period of 60 days following delivery of the Employee
Response, the Employee and the Company shall use good faith efforts to resolve
such dispute.  If such dispute is not
resolved within such 60-day period, such dispute shall be settled exclusively
by arbitration in Boston, Massachusetts, in accordance with the rules of
the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s
award in any court having jurisdiction. 
The Company shall, within three business days following delivery to the
Company of the Employee Response, make to the Employee those Potential Payments
as to which there is no dispute between the Company and the Employee regarding
whether they should be made (except for any such Potential Payments which are
not due to be made until after such date, which Potential Payments shall be
made on the date on which they are due). 
The balance of the Potential Payments shall be made within three
business days following the resolution of such dispute.  Subject to the limitations contained in
Sections 5.3(a) and (b) hereof, the amount of any payments to be made to
the Employee following the resolution of such dispute shall be increased by
amount of the accrued interest thereon computed at the prime rate announced
from time to time by The Wall Street Journal,
compounded monthly from the date that such payments originally were due.

 

(e)                                  The provisions of this Section 5.3
are intended to apply to any and all payments or benefits available to the
Employee under this Agreement or any other agreement or plan of the Company
under which the Employee receives Contingent Compensation Payments.

 

5

 

6.                                 Termination
Following Change of Control.

 

6.1                                 Key Definitions.  As used herein, the following terms shall
have the following respective meanings:

 

(a)                                  “Change in Control” means
an event or occurrence set forth in any one or more of subsections (i) through (iv) below
(including an event or occurrence that constitutes a Change in Control under
one of such subsections but is specifically exempted from another such
subsection), provided that such event
or occurrence also constitutes a change in ownership or effective control of
the Company or in the ownership of a substantial portion of the assets of the
Company, each within the meaning of Section 409A (as defined below):

 

(i)                                     the acquisition by an
individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership of any capital stock of
the Company if, after such acquisition, such Person beneficially owns (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more
of either (x) the then-outstanding shares of common stock of the Company
(the “Outstanding Company Common Stock”) or (y) the combined voting
power of the then-outstanding securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this
subsection (i), the following acquisitions shall not constitute a Change in
Control: (a) any acquisition directly from the Company (excluding an
acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting
securities of the Company, unless the Person exercising, converting or
exchanging such security acquired such security directly from the Company or an
underwriter or agent of the Company), (b) any acquisition by the Company, (c) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or (d) any
acquisition by any corporation pursuant to a transaction which complies with
clauses (x) and (y) of subsection (iii) of this Section 6.1;
or

 

(ii)                                  such time as the Continuing
Directors (as defined below) do not constitute a majority of the Board (or, if
applicable, the Board of Directors of a successor corporation to the Company),
where the term “Continuing Director” means at any date a member of
the  Board (x) who was a member of
the Board on the date of the execution of this Agreement or (y) who was
nominated or elected subsequent to such date by at least a majority of the
directors who were Continuing Directors at the time of such nomination or
election or whose election to the Board was recommended or endorsed by at least
a majority of the directors who were Continuing Directors at the time of such
nomination or election; provided, however, that there shall be
excluded from this clause (y) any individual whose initial assumption of
office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the
Board; or

 

(iii)                               the consummation of a
merger, consolidation, reorganization, recapitalization or statutory share
exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company, in one or a series of
transactions (a “Business Combination”), unless, immediately following
such Business Combination, each of the following two conditions is satisfied: (x) all
or substantially all of the individuals and entities who were the beneficial
owners of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the then-outstanding shares of common
stock and the combined voting power of the then-outstanding securities entitled
to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include,
without limitation, a corporation which as a result of such transaction owns
the Company or substantially all of the Company’s assets either directly or
through one or more subsidiaries) (such resulting or acquiring corporation is
referred to herein as the “Acquiring Corporation”) in substantially the
same proportions as their ownership, immediately prior to such Business
Combination, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, respectively; and (y) no Person (excluding any employee
benefit plan (or related 

 

6

 

trust)
maintained or sponsored by the Company or by the Acquiring Corporation)
beneficially owns, directly or indirectly, 50% or more of the then outstanding
shares of common stock of the Acquiring Corporation, or of the combined voting
power of the then-outstanding securities of such corporation entitled to vote
generally in the election of directors (except to the extent that such
ownership existed prior to the Business Combination); or

 

(iv)                              approval by the stockholders
of the Company of a complete liquidation or dissolution of the Company.

 

(b)                                 “Change in Control Date”
means the first date during the period of time the Employee is employed
pursuant to this Agreement on which a Change in Control occurs.  Anything in this Agreement to the contrary
notwithstanding, if (a) a Change in Control occurs, (b) the Employee’s
employment with the Company is terminated prior to the date on which the Change
in Control occurs, and (c) it is reasonably demonstrated by the Employee
that such termination of employment (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change in Control
or (ii) otherwise arose in connection with or in anticipation of a Change
in Control, then for all purposes of this Agreement the “Change in Control Date”
shall mean the date immediately prior to the date of such termination of
employment.

 

(c)                                  Change of Control
Termination occurs where the Employee is terminated without
Cause (as defined in Section 4.3) or resigns for Good Reason (as defined
in Section 4.2), in either case within twelve (12) months following the
Change in Control Date.  In addition, any
termination of the Employee’s employment that occurs within twelve (12) months
following the Change in Control Date shall be communicated by a written notice
to the other party (the “Notice of Termination”), given in accordance with Section 10
hereof.  Any such Notice of Termination
shall: (i) indicate the specific termination provision of this Agreement
relied upon by the party giving such notice, (ii) in the case of a
termination by the Company for Cause or by the Employee for Good Reason, set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for such Cause or Good Reason, and (iii) specify the Date of
Termination (as defined below).  The
effective date of an employment termination (the “Date of Termination”) shall
be the close of business on the date specified in the Notice of Termination
(which date, other than in the case of a termination due to the Employee’s
death, or a termination by the Company for Cause (which notice shall be
governed by Section 4.3)), may not be less than 15 days or more than 120
days after the date of delivery of such Notice of Termination).  In the event the Company fails to satisfy the
requirements of this Section 6.1 (c) regarding a Notice of
Termination, the purported termination of the Employee’s employment pursuant to
such Notice of Termination shall not be effective for purposes of this
Agreement.

 

6.2                                 Benefits to
Employee Upon a Change of Control Termination.  In the event of a Change of Control
Termination, the Employee shall be entitled to all accrued and unpaid base
salary and any accrued but unused vacation through the date of termination.  In addition, the Employee shall be eligible
to receive the following separation benefits:

 

(a)                                  an amount equal to the sum
of (i) twelve (12) months of the Employee’s base salary as of the date of
termination (which amount shall be payable in one lump sum on the next payroll
date following the 30th day after the date of termination; provided,
however, that if the Change in Control Date precedes the Change in Control,
then such amount shall be payable in accordance with Section 5.1(a)(i) hereof),
and (ii) the greater of (x) the annual discretionary target bonus
established by the Board (or any other person or persons having authority with
respect thereto) for the Employee for the fiscal year in which the date of
termination occurs or (y) the annual bonus paid to the Employee for the
most recently completed fiscal year (which amount shall be payable in one lump
sum on the next payroll date following the 30th day after the date of
termination);

 

(b)                                 the Company shall, if the
Employee is eligible for and elects to continue his/her medical and/or dental
health insurance coverage pursuant to COBRA, continue to contribute during the
Contribution Period defined above toward the cost of the Employee’s COBRA
premiums the same amount that it 

 

7

 

pays
on behalf of active and similarly situated employees receiving the same type of
coverage.  The
remaining balance of any premium costs, and all premium costs after the
Contribution Period, shall be paid by the Employee on a monthly basis.  After the Contribution Period, the Employee
may continue receiving coverage under COBRA at his/her own cost if and to the
extent that he/she remains eligible for COBRA continuation.  The Employee agrees that he/she shall notify
the Company in writing immediately following the date on which he/she becomes
eligible for group medical and/or dental insurance coverage through another
employer; and

 

(c)                                  during the Extended Benefits
Period defined above, the Company shall continue to provide benefits to the
Employee in accordance with any applicable life insurance, accident and/or
disability plans under which the Employee was eligible as of the date of
termination consistent with such benefits as may be provided to active and
similarly situated employees covered by such plans; provided, however, that if
such plans do not permit continued coverage of the Employee following the date
of termination, the Company shall instead reimburse the Employee for the
reasonable cost of purchasing substantially comparable coverage during the
Extended Benefits Period.  The Employee
agrees that she shall notify the Company in writing immediately following the
date on which she becomes eligible for life insurance, accident and/or disability
coverage through another employer.  The
benefits provided and/or payments made under this subsection shall be in
installments in accordance with the Company’s regular payroll practices,
beginning with the payroll date following the 30th day after the
date of termination; and

 

(d)                                 the Employee shall be
entitled to immediate vesting of any unvested option shares, restricted shares
and any future grants awarded to the Employee. 
All such equity awards (whether stock options or restricted stock
grants) will remain exercisable in accordance with the applicable stock option
plan or grant agreement.

 

6.3                            Disputes.

 

(a)                                  Settlement of Disputes;
Arbitration.  All claims
by the Employee for benefits under this Section 6 shall be directed to and
determined by the Board of Directors of the Company and shall be in
writing.  Any denial by the Board of
Directors of a claim for benefits under this Section 6 shall be delivered
to the Employee in writing and shall set forth the specific reasons for the
denial and the specific provisions of this Agreement relied upon.  The Board of Directors shall afford a
reasonable opportunity to the Employee for a review of the decision denying a
claim.  Any further dispute or
controversy arising under or in connection with this Section 6 shall be
settled exclusively by arbitration in Boston, Massachusetts, in accordance with
the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s
award in any court having jurisdiction.

 

(b)                                 Expenses.  The Company agrees to pay as incurred, to the
full extent permitted by law, all legal, accounting and other fees and expenses
which the Employee may reasonably incur as a result of any claim or contest
(regardless of the outcome thereof) by the Company, the Employee or others
regarding the validity or enforceability of, or liability under, any provision
of this Section 6 or any guarantee of performance thereof (including as a
result of any contest by the Employee regarding the amount of any payment or benefits
pursuant to this Section 6), plus in each case interest on any delayed
payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of
the Code.

 

6.4                                 Injunctive Relief.  The Company and the Employee agree that any
breach of Section 6 of this Agreement by the Company is likely to cause
the Employee substantial and irrevocable damage and therefore, in the event of
any such breach, in addition to such other remedies which may be available, the
Employee shall have the right to specific performance and injunctive relief.

 

8

 

7.                                       Mitigation.  The Employee
shall not be required to mitigate the amount of any payment or benefits
provided for in Sections 5 or 6 by seeking other employment or otherwise
except with regard to medical and dental coverage if new employment is
obtained.

 

8.                                       Survival.  The provisions of Sections 5, 6, 9
(including Exhibit A referenced in Section 9) and 10 shall survive
the termination of this Agreement for any reason.

 

9.                                       Confidential Information; Intellectual Property;
Non-Competition; Non-Solicitation.

 

9.1                                 Confidential Information.   While employed by the Company and
thereafter, Employee shall not, directly or indirectly, use any Confidential
Information (as defined below) other than pursuant to his employment by and for
the benefit of the Company, or disclose any Confidential Information to anyone
outside of the Company, whether by private communication, public address,
publication or otherwise, or disclose any Confidential Information to anyone
within the Company who has not been authorized to receive such information,
except as directed in writing by an authorized representative of the
Company.  The term “Confidential
Information” as used throughout this Agreement shall mean all trade secrets,
proprietary information, know-how, data, designs, specifications, processes,
customer lists and other technical or business information (and any tangible
evidence, record or representation thereof), whether prepared, conceived or developed
by a consultant or employee of the Company (including Employee) or received by
the Company from an outside source, which is in the possession of the Company
(whether or not the property of the company) and which is maintained in
confidence by the Company.  Without
limiting the generality of the foregoing, Confidential Information shall
include:

 

(a)   any idea, improvement, invention, innovation,
development, technical data, design, formula, device, pattern, sequence,
concept, art, method, process, machine, manufacturing method, composition of
matter, computer program, software, firmware, source code, object code,
algorithm, subroutine, object module, schematic, model, diagram, flow chart,
chip masking specification, user manual, training or service manual, product
specification or design, plan for a new or revised product, sample,
compiliation of information, or work in process, and any and all revisions and
improvements relating to any of the foregoing (in each case whether or not reduced
to tangible form); and

 

(b) 
the name of any employee, consultant, customer or prospective customer, or any
other customer or prospective customer information, any sales plan, marketing
material, plan or survey, business plan or opportunity, product or development
plan or specification, business proposal, financial record, or business record
or other record or information relating to the present or proposed business of
any customer.

 

Notwithstanding
the foregoing, the term Confidential Information shall not apply to information
which the Company has voluntarily disclosed to the public without restriction,
or which has otherwise lawfully entered the public domain.  Employee acknowledges that the Company from
time to time has in its possession information which is claimed by customers
and others to be proprietary and which the Company has agreed to keep
confidential.  Employee agrees that all
such information shall be Confidential Information for purposes of this
Agreement.

 

9.2                                 Ownership and Assignment of Intellectual Property.

 

(a) 
Employee agrees that all originals and all copies of all manuscripts, drawings,
prints, manuals, diagrams, letters, notes, notebooks, reports, models, records,
files, memoranda, plans sketches and all other documents and materials
containing, representing, evidencing, recording, or constituting any
Confidential Information (as defined in Section 9.1 above), however and
whenever produced (whether by Employee or others) shall be the sole property of
the Company.

 

(b) 
Employee agrees that all Confidential Information and all other discoveries,
inventions, ideas, specifications, designs, concepts, research and other
information, processes, products, methods and  improvements, or parts thereof conceived,
developed, or otherwise made by him, alone or jointly with others 

 

9

 

and in any way relating to the
Company’s present or proposed products, programs or services or to tasks
assigned to him during the course of his employment, whether or not patentable
or subject to copyright protection and whether or not reduced to tangible from
or reduced to practice, during the period of his employment with the Company,
whether or not made during my regular working hours, and whether or not made on
the Company’s premises, and whether or not disclosed by him to the Company
(hereinafter referred to as “Intellectual Property”) together with all products
or services which embody or emulate any Intellectual Property shall be the sole
property of the Company.

 

(c) 
Employee agrees to and hereby does, assign to the Company all his right, title
and interest throughout the world in and to all Intellectual Property and to
anything tangible which evidences, incorporates, constitutes, represents or
records any Intellectual Property. 
Employee agrees that all Intellectual Property shall constitute works
made for hire under the copyright laws of the United States and hereby assigns
and, to the extent any such assignment cannot be made at present, Employee
hereby agrees to assign to the Company all copyrights, patents and other
proprietary rights Employee may have in any Intellectual Property, together
with the right to file for and/or own wholly without restriction United States
and foreign patents, trademarks, and copyrights.  Employee agrees to waive, and hereby waives,
all moral rights or proprietary rights in or to any Intellectual Property and,
to the extent that such rights may not be waived, agrees not to assert such
rights against the Company or its licensees, successors or assigns.

 

(d) 
Employee hereby certifies that Schedule A sets forth any and all
confidential information and intellectual property that Employee claims as his
own or otherwise intends to exlude from this Agreement because it was developed
by him prior to the date of this Agreement. 
Employee understands that after execution of this Agreement he shall
have no right to exclude Confidential Information or Intellectual Property from
this Agreement.

 

9.3                                 Employee’s Obligation to Keep Records.  Employee shall
make and maintain adequate and current written records of all Intellectual
Property, including noteboooks and invention disclosures, which records shall
be available to and remain the property of the Company at all times.  Employee shall disclose all Intellectual
Property promptly, fully and in writing to the Company immediately upon
production or development of the same and at any time upon request.

 

9.4                                 Employee’s Obligation to Cooperate.  Employee will,
at any time during his employment, or after it terminates, upon request of the
Company, execute all documents and perform all lawful acts which the Company
considers necessary or advisable to secure its rights hereunder and to carry
out the intent of this Agreement.  Without
limiting the generality of the foregoing, Employee will assist the Company in
any reasonable manner to obtain for its own benefit patents or copyrights in
any and all countries with respect to all Intellectual Property assigned
pursuant to Section 9.2, and Employee will execute, when requested, patent
and other applications and assignments thereof to the Company, or persons
designated by it, and any other lawful documents deemed necessary by the
Company to carry out the purposes of this Agreement, and Employee will further
assist the Company in every way to enforce any patents and copyrights obtained,
including testifying in any suit or proceeding involving any of said patents or
copyrights or executing any documents deemed necessary by the Company, all
without further consideration than provided for herein.  It is understood that reasonable
out-of-pocket expenses of Employee’s assistance incurred at the request of the
Company under this Section will be reimbursed by the Company.

 

9.5                                 Noncompetition.  Employee agrees that during the
term of this Agreement and for a period of 12 months after the termination of
this Agreement (the “Restricted Period”), Employee shall not directly or
indirectly (i) provide any services to any business or enterprise relying
on competitive technologies similar to the Company’s core technologiesto
develop biosimilar or generic pharmaceuticals or that sells directly competing
products or services in the same therapeutic class as proprietary
pharmaceuticals developed by the Company or any of its subsidiaries while Employee
was employed by the Company (the “Field of Interest”) to any person other than
the Company, (ii) become an owner, partner, shareholder, consultant,
agent, employee or co-venturer or any person that has committed, or intends to
commit, significant resources to the Field of Interest.

 

10

 

9.6                                 Nonsolicitation.  During the Restricted Period,
Employee shall not (i) solicit, encourage, or take any other action which
is intended to induce any employee of, or consultant to the Company (or any
other Person who may have been employed by, or may have been a consultant to,
the Company during the term of Employee’s employment) to terminate his or her
employment or relationship with the Company in order to become employed by or
otherwise perform services for any other Person or (ii) solicit, endeavor
to entice away from the Company or otherwise interfere with the relationship of
the Company with any Person who is, or was within the then-most recent 12 month
period, a client or customer of the Company.

 

10.                                 Notices.  Any notice delivered under this Agreement
shall be deemed duly delivered three (3) business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one
(1) business day after it is sent for next-business day delivery signature
required via a reputable nationwide overnight courier service, in each case to
the address of the recipient set forth in the introductory paragraph
hereto.  Either party may change the
address to which notices are to be delivered by giving notice of such change to
the other party in the manner set forth in this Section 10.

 

11.                                 Termination of Executive
Retention Agreement and Employment Agreement.  The Company and the Employee hereby agree
that, in consideration of the terms and conditions of this Agreement, (a) the
Executive Retention Agreement dated as of October 29, 2007 between the
Company and the Employee (the “Executive Retention Agreement”) and (b) the
Employment Agreement dated as of April 10, 2002, as amended May 18,
2007 (the “Previous Employment Agreement”) are hereby expressly terminated by
mutual agreement and neither party has any further rights or obligations
thereunder.

 

12.                                 Entire Agreement.  This Agreement constitutes the entire agreement
between the parties and supersedes all prior agreements and understandings
(including, without limitation, the Executive Retention Agreement and the
Previous Employment Agreement), whether written or oral, relating to the
subject matter of this Agreement.

 

13.                                 Amendment.  This Agreement may be amended or modified
only by a written instrument executed by both the Company and the Employee.

 

14.                                 Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts
(without reference to the conflict of laws provisions thereof).  Any action, suit or other legal proceeding
arising under or relating to any provision of this Agreement shall be commenced
only in a court of the Commonwealth of Massachusetts (or, if appropriate, a
federal court located within the Commonwealth of Massachusetts), and the
Company and the Employee each consents to the jurisdiction of such a
court.  The Company and the Employee each
hereby irrevocably waive any right to a trial by jury in any action, suit or
other legal proceeding arising under or relating to any provision of this
Agreement.

 

15.                                 Successors and Assigns.  The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Company as
expressly to assume and agree to perform this Agreement to the same extent that
the Company would be required to perform it if no such succession had taken
place.  Failure of the Company to obtain
an assumption of this Agreement upon the effectiveness of any succession shall
be a breach of this Agreement and shall constitute Good Reason if the Employee
elects to terminate employment, except that for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination.  As used
in this Agreement, “Company” shall mean the Company as defined above and any
successor to its business or assets as aforesaid which assumes and agrees to
perform this Agreement, by operation of law or otherwise.  This Agreement shall be binding upon and
inure to the benefit of both parties and their respective successors and
assigns; provided, however, that the obligations of the Employee are personal
and shall not be assigned by the Employee.

 

11

 

16.                                 Acknowledgment.  The Employee states and represents that he/she
has had an opportunity to fully discuss and review the terms of this Agreement
with an attorney.  The Employee further
states and represents that he/she has carefully read this Agreement,
understands the contents herein, freely and voluntarily assents to all of the
terms and conditions hereof, and signs his/her name of his/her own free act.  The Employee further acknowledges that the
law firm of WilmerHale is acting as counsel to the Company in connection with
the transactions contemplated by this Agreement, and is not acting as counsel
for the Employee.

 

17.                             Section 409A.

 

17.1                           Distributions.  Subject to this Section 17.1, any
payments or benefits under Sections 5 and 6 shall begin only upon the date of a
“separation from service” as defined below which occurs on or after the date of
termination under Section 5.1 or a Change of Control Termination under Section 6.1(c).  The following rules shall apply with
respect to distribution of the payments and benefits, if any, to be provided to
the Employee under Sections 5 and 6:

 

(a)                                            It is intended
that each installment of the payments and benefits provided under sections 5
and 6 shall be treated as a separate “payment” for purposes of Section 409A
of the U.S. Internal Revenue Code of 1986, as amended, and the guidance issued
thereunder (“Section 409A”). 
Neither the Company nor the Employee shall have the right to accelerate
or defer the delivery of any such payments or benefits except to the extent
specifically permitted or required by Section 409A;

 

(b)                                           If, as of the
date of the “separation from service” of the Employee from the Company (as
defined below), the Employee is not a “specified employee” (within the meaning
of Section 409A), then each installment of the payments and benefits shall
be made on the dates and terms set forth in sections 5 and 6; and

 

(c)                                            If, as of the
date of the “separation from service” of the Employee from the Company, the
Employee is a “specified employee” (within the meaning of Section 409A),
then:

 

(ii)                                  Each installment of the
payments and benefits due under Sections 5 and 6 that, in accordance with the
dates and terms set forth herein, will in all circumstances, regardless of when
the separation from service occurs, be paid within the Short-Term Deferral
Period (as hereinafter defined) shall be treated as a short-term deferral
within the meaning of Treasury Regulation Section 1.409A-1(b)(4) to
the maximum extent permissible under Section 409A.  For purposes of this Agreement, the “Short-Term
Deferral Period” means the period ending on the later of the 15th
day of the third month following the end of the Employee’s tax year in which
the separation from service occurs and the 15th day of the third
month following the end of the Company’s tax year in which the Employee’s
separation from service occurs; and

 

(ii)                                  Each installment of the
payments and benefits due under Sections 5 and 6 that is not described in Section 17.1(c)(i) and
that would, absent this subsection, be paid within the six-month period
following the “separation from service” of the Employee from the Company shall
not be paid until the date that is six months and one day after such separation
from service (or, if earlier, the Employee’s death), with any such installments
that are required to be delayed being accumulated during the six-month period
and paid in a lump sum on the date that is six months and one day following the
Employee’s separation from service and any subsequent installments, if any,
being paid in accordance with the dates and terms set forth herein; provided,
however, that the preceding provisions of this sentence shall not apply
to any installment of payments and benefits if and to the maximum extent that
that such installment is deemed to be paid under a separation pay plan that
does not provide for a deferral of compensation by reason of the application of
Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay
upon an involuntary separation from service). 
Any installments that qualify for the exception under Treasury
Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the
last day of the Employee’s second taxable year following the Employee’s taxable
year in which the separation from service occurs.

 

12

 

17.2                           The determination of whether
and when a separation from service has occurred shall be made and in a manner
consistent with, and based on the presumptions set forth in, Treasury
Regulation Section 1.409A-1(h).

 

17.3                           All
reimbursements and in-kind benefits provided under the Agreement shall be made
or provided in accordance with the requirements of Section 409A to the
extent that such reimbursements or in-kind benefits are subject to Section 409A.

 

17.4                           The Company makes no
representation or warranty and shall have no liability to the Employee or any
other person if any provisions of this Agreement are determined to constitute
deferred compensation subject to Section 409A but do not satisfy an
exemption from, or the conditions of, such section.

 

18.                                 Miscellaneous.

 

18.1                           No delay or omission by the
Company in exercising any right under this Agreement shall operate as a waiver
of that or any other right.  A waiver or
consent given by the Company on any one occasion shall be effective only in
that instance and shall not be construed as a bar to or waiver of any right on
any other occasion.

 

18.2                           The captions of the sections
of this Agreement are for convenience of reference only and in no way define,
limit or affect the scope or substance of any section of this Agreement.

 

18.3                           In case any provision of
this Agreement shall be invalid, illegal or otherwise unenforceable, the
validity, legality and enforceability of the remaining provisions shall in no
way be affected or impaired thereby.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the day and year set forth
above.

 

	
   

  	
   

  	
  MOMENTA PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
     /s/
  Craig A. Wheeler

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  

  	
         
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    /s/ Ganesh Venkataraman                            

  
	
   

  	
   

  	
  Sign 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                                                    

  
	
   

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                                                    

  

 

13

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