Document:

Exhibit
10.2

 

April 10,
2008

 

AMENDMENT TO
LETTER AGREEMENT

 

WHEREAS, Millennium
Pharmaceuticals, Inc. (the “Company”) and Christophe Bianchi (the “Employee”)
are parties to a certain Letter Agreement dated as of January 19, 2006
(the “Letter Agreement”);

 

WHEREAS, in connection
with that certain Agreement and Plan of Merger between Takeda America Holdings, Inc.
(“Takeda”), Mahogany Acquisition Corp. and the Company, as of April 10,
2008 (the “Merger Agreement”), the closing of which will result in, among other
things, the Company becoming a wholly-owned subsidiary of Takeda (the date on
which the Company becomes a wholly-owned subsidiary of Takeda as a result of
the Merger (as such term is defined in the Merger Agreement) being referred to
herein as the “Acquisition Date”); and

 

WHEREAS,
effective as of the Acquisition Date, the parties wish to amend certain terms
and conditions of the Letter Agreement by means of this amendment (the “Amendment”).

 

NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements
hereinafter set forth, the Employee and the Company hereto mutually covenant
and agree as follows:

 

1.             Amendment of Letter Agreement.

 

a.                                      A new Section 15 of the
Letter Agreement is hereby added as follows:

 

“15.  Merger.  Notwithstanding
the foregoing, in the event you terminate your employment by reason of clause (ii) of
the definition of Good Reason in Section 14, you shall only be entitled to
the payments and benefits set forth in Section 14 if such termination of
employment occurs on or after the first anniversary of the Acquisition
Date.  Any Good Reason described in the
preceding sentence that occurs before the first anniversary of the Acquisition
Date may be asserted by you as a reason to terminate employment for Good Reason
on or after the first anniversary of the Acquisition Date.  In consideration of the
foregoing, on the Acquisition Date the Company will accelerate the vesting of
your retirement benefit described in Paragraph 11 (i.e. your Account) and
distribute it to you in a lump sum six (6) months after your termination
of employment.”

 

b.             The Letter Agreement is hereby
amended by adding a new Section 16 as follows:

 

“16.  Retention Bonus. 
You will be eligible for a lump sum cash payment on the first anniversary
of the Acquisition Date provided that you are employed by the Company as of
such date in an amount equal to the sum 

 

 

of (i) 100% of your
annual base salary in effect as of the Acquisition Date, plus (ii) 100% of
the annual bonus paid to you for the Company’s fiscal year ending December 31,
2008 (such sum, the “First Year Retention Bonus”).  You will be eligible for a lump sum cash
payment on the second anniversary of the Acquisition Date provided that you are
employed by the Company as of such date in an amount equal to the sum of (i) 100%
of your annual base salary in effect as of the Acquisition Date, plus (ii) 100%
of the annual bonus paid to you for the Company’s fiscal year ending December 31,
2008 (such sum, the “Second Year Retention Bonus”).  Except as set forth below, you will not be
eligible for the retention bonuses as set forth above if your employment
terminates prior to such applicable anniversary.  In the event of your Voluntary Termination
for Good Reason (as defined below), the termination of your employment by the
Company other than for Justifiable Cause, or in the event of your death or “permanent
disability” as defined in the Company’s long-term disability policy (i) during
the first twelve month period following the Acquisition Date, you will be
eligible for a pro rata portion of the First Year Retention Bonus, counting
full months of employment with the Company from the Acquisition Date through
such termination, and (ii) during the second twelve month period following
the Acquisition Date, you will be eligible for a pro rata portion of the Second
Year Retention Bonus, counting full months of employment with the Company from
the first anniversary of the Acquisition Date through such termination.  Any prorated payment pursuant to the preceding
sentence shall be made within 10 business days of such termination.  If the annual bonus payment for the Company’s
fiscal year ending December 31, 2008 has not been paid to you or otherwise
determined by the Company as of the date the prorated payment is due, the
prorated payment shall be calculated using your target bonus amount for
2008.  Payments under this Section 16
shall be net of any applicable withholding taxes.  For purposes of this Section 16, “Voluntary
Termination for Good Reason” shall have the same meaning as given to such term
under the Key Employee Change in Control Severance Plan as in effect
immediately prior to the Acquisition Date, but with respect to the First Year
Retention Bonus only, determined without regard to clause (ii) thereof.”

 

c.                                       The Letter Agreement is hereby
amended by adding a new Section 17 as follows:

 

“17.  Amendment to Key Employee
Change in Control Severance Plan.

 

You hereby agree and
acknowledge that with respect to your participation, if any, in the Key Employee
Change in Control Severance Plan (the “Plan”), Section 3 of the Plan is
hereby amended by adding the following language to the end of Section 3:

 

2

 

‘Notwithstanding the
foregoing, upon the effective date of a Change in Control (i) you shall
automatically qualify for a Voluntary Termination for Good Reason under clause (ii) of
such definition, (ii) you agree not to assert a Voluntary Termination for
Good Reason during the first twelve (12) months following the effective date of
the Change in Control for a reason described in clause (ii) of such
definition, and (iii) after the first anniversary of the effective date of
the Change in Control you shall have the right to terminate your employment at
any time as a Voluntary Termination for Good Reason and receive the payments
and benefits under the Plan.’

 

You also agree and
acknowledge that the first full paragraph of Section 4(a) of the Plan
is hereby amended and replaced in its entirety with the following:

 

‘(a)  SALARY AND
BONUS PAYOUT.  Subject to any delay in
payment required to comply with Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), you will be paid a lump sum within thirty
(30) days following the date of the qualifying termination (but in no event
prior to January 1, 2009) an amount equal to the sum of : (i) your
Severance Multiple times your base salary at the greater of your rate of pay in
effect on the effective date of the Change in Control, or your rate of pay in
effect on the date of termination; (ii) your Severance Multiple times the
greater of your target bonus for the Company’s fiscal year ending December 31,
2008, or your target bonus on the date of termination; and (iii) the
greater of your target bonus for the Company’s fiscal year ending December 31,
2008, or your target bonus on the date of termination multiplied by a fraction,
the numerator of which shall equal the number of days you were employed by the
Company in the Company fiscal year in which the termination occurs and the
denominator of which shall equal 365.’

 

You further agree and
acknowledge that Section 4 of the Plan is hereby amended by adding a new Section 4(j) as
follows:

 

‘(j)  LONG-TERM
INCENTIVE COMPENSATION.  If you become
entitled to payments under Section 4(a), then any otherwise unvested stock
options, restricted stock, restricted stock units, stock appreciation rights,
phantom shares, long-term cash incentive bonus, or other form of equity,
phantom equity, quasi-equity, or long-term incentive compensation granted to
you by the Company or any related entity on or after the Acquisition Date (the “LTI
Compensation”) shall (notwithstanding any otherwise applicable vesting and
exercise schedule) immediately become vested and exercisable on a pro-rata 

 

3

 

basis determined by
reference to a ratio, the numerator of which shall be the number of your full
months of employment with the Company from the effective date of the Change in
Control and the denominator of which shall be the number of full months under
the vesting schedule of the relevant LTI Compensation award.’”

 

d.                                      The Letter Agreement is hereby
amended by adding a new Section 18 as follows:

 

“18.  Section 409A. 
Payment of amounts or benefits under this Letter Agreement will be
deferred and paid no earlier than six months following your termination of
employment if, and only to the extent, required to comply with Section 409A
of the Code.  In such event, the first
payment will be made for an aggregate amount equal to what would have been paid
under this Letter Agreement over the course of such deferred period.  To comply with Section 409A of the Code,
any Gross-Up Payment due to you under the Plan or the express terms of your
Letter Agreement shall be paid to you within ten (10) business days of
when the Excise Tax is imposed on you.”

 

2.             2009 Long-Term Equity Compensation. 
Following the Acquisition Date in 2009, the Company, its successor
and/or one or more affiliates of such entities, intend to grant to you LTI
Compensation (as defined above) that is substantially similar in economic value
to the equity award(s) granted by the Company to you during 2008 prior to
the Acquisition Date.

 

3.             Clarification.  For purposes
of clarity, the references in Section 1(c) above to the “Change of
Control” in the amendment to Section 4(a) of the Plan and the
addition of Section 4(j) to the Plan are meant to apply to the
closing of the transaction contemplated by the Merger Agreement.

 

4.             Assumption.  The Company’s
obligations to the Employee under this Amendment, the Letter Agreement, and the
Plan shall be assumed by any successor to the Company.

 

5.             No Mitigation. 
Notwithstanding any other provision of this Amendment, the Letter
Agreement, or the Plan, the Employee will have no obligation to mitigate
damages for any breach or termination of this Agreement, the Letter Agreement,
or the Plan by the Company or its successor, whether by seeking employment or
otherwise.

 

6.             Confirmation. 
Except as amended by this Amendment, the Letter Agreement and Plan shall
remain in full force and effect.

 

7.             Future Reference. 
All future references to the Letter Agreement or Plan shall mean such
agreement or plan as amended hereby.

 

4

 

8.             Counterparts. 
This Amendment may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

 

9.             Effective Date. 
This Amendment shall become effective upon the Acquisition Date and
until such time shall have no force and effect. 
In the event that the Merger Agreement is terminated in accordance with
its terms, this Amendment shall be null and void and shall have no force and
effect.

 

 

[SIGNATURES BEGIN
ON NEXT PAGE]

 

5

 

SIGNATURE PAGE TO

 

AMENDMENT TO
LETTER AGREEMENT

 

IN WITNESS WHEREOF, the
parties have executed this Amendment to the Letter Agreement on the date and
year first above written.

 

	
   

  	
  MILLENNIUM
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen M. Gansler

  
	
   

  	
   

  	
   

  

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ C Bianchi

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Christophe Bianchi

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  EVP Commercial

  
				

 

6Exhibit 10.3

 

April 10,
2008

 

AMENDMENT TO
LETTER AGREEMENT

 

WHEREAS, Millennium
Pharmaceuticals, Inc. (the “Company”) and Marsha H. Fanucci (the “Employee”)
are parties to a certain Letter Agreement dated as of August 6, 2004 (the “Letter
Agreement”);

 

WHEREAS, in connection
with that certain Agreement and Plan of Merger between Takeda America Holdings, Inc.
(“Takeda”), Mahogany Acquisition Corp. and the Company, as of April 10,
2008 (the “Merger Agreement”), the closing of which will result in, among other
things, the Company becoming a wholly-owned subsidiary of Takeda (the date on
which the Company becomes a wholly-owned subsidiary of Takeda as a result of
the Merger (as such term is defined in the Merger Agreement) being referred to
herein as the “Acquisition Date”); and

 

WHEREAS,
effective as of the Acquisition Date, the parties wish to amend certain terms
and conditions of the Letter Agreement by means of this amendment (the “Amendment”).

 

NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements
hereinafter set forth, the Employee and the Company hereto mutually covenant
and agree as follows:

 

1.             Amendment of Letter Agreement.

 

a.             The Letter Agreement is hereby
amended by adding a new Section 8 as follows:

 

“8.  Retention Bonus. 
You will be eligible for a lump sum cash payment on the first
anniversary of the Acquisition Date provided that you are employed by the
Company as of such date in an amount equal to the sum of (i) 100% of your
annual base salary in effect as of the Acquisition Date, plus (ii) 100% of
the annual bonus paid to you for the Company’s fiscal year ending December 31,
2008 (such sum, the “First Year Retention Bonus”).  Except as set forth below, you will not be
eligible for the First Year Retention Bonus if your employment terminates prior
to the first anniversary of the Acquisition Date.  In the event of your Voluntary Termination
for Good Reason (as defined below), the termination of your employment by the
Company other than for Justifiable Cause, or in the event of your death or “permanent
disability” as defined in the Company’s long-term disability policy during the
twelve month period following the Acquisition Date, you will be eligible for a
pro rata portion of the First Year Retention Bonus, counting full months of
employment with the Company from the Acquisition Date through such
termination.  Any 

 

 

prorated payment pursuant
to the preceding sentence shall be made within 10 business days of such
termination.  If the annual bonus payment
for the Company’s fiscal year ending December 31, 2008 has not been paid
to you or otherwise determined by the Company as of the date the prorated
payment is due, the prorated payment shall be calculated using your target
bonus amount for 2008. Payments under this Section 8 shall be net of any
applicable withholding taxes.  For
purposes of this Section 8, “Voluntary Termination for Good Reason” shall
have the same meaning as given to such term under the Key Employee Change in
Control Severance Plan as in effect immediately prior to the Acquisition Date,
but determined without regard to clause (ii) thereof.”

 

b.                                      The Letter Agreement is hereby
amended by adding a new Section 9 as follows:

 

“9.  Amendment to Key Employee
Change in Control Severance Plan.

 

You hereby agree and
acknowledge that with respect to your participation, if any, in the Key
Employee Change in Control Severance Plan (the “Plan”), Section 3 of the
Plan is hereby amended by adding the following language to the end of Section 3:

 

‘Notwithstanding the
foregoing, upon the effective date of a Change in Control (i) you shall
automatically qualify for a Voluntary Termination for Good Reason under clause (ii) of
such definition, (ii) you agree not to assert a Voluntary Termination for
Good Reason during the first twelve (12) months following the effective date of
the Change in Control for a reason described in clause (ii) of such
definition, and (iii) after the first anniversary of the effective date of
the Change in Control you shall have the right to terminate your employment at
any time as a Voluntary Termination for Good Reason and receive the payments
and benefits under the Plan.’

 

You also agree and
acknowledge that the first full paragraph of Section 4(a) of the Plan
is hereby amended and replaced in its entirety with the following:

 

‘(a)  SALARY AND
BONUS PAYOUT.  Subject to any delay in
payment required to comply with Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), you will be paid a lump sum within thirty
(30) days following the date of the qualifying termination (but in no event
prior to January 1, 2009) an amount equal to the sum of : (i) your
Severance Multiple times your base salary at 

 

2

 

the greater of your rate
of pay in effect on the effective date of the Change in Control, or your rate
of pay in effect on the date of termination; (ii) your Severance Multiple
times the greater of your target bonus for the Company’s fiscal year ending December 31,
2008, or your target bonus on the date of termination; and (iii) the
greater of your target bonus for the Company’s fiscal year ending December 31,
2008, or your target bonus on the date of termination multiplied by a fraction,
the numerator of which shall equal the number of days you were employed by the
Company in the Company fiscal year in which the termination occurs and the
denominator of which shall equal 365.’

 

You further agree and
acknowledge that Section 4 of the Plan is hereby amended by adding a new Section 4(j) as
follows:

 

‘(j)  LONG-TERM
INCENTIVE COMPENSATION.  If you become
entitled to payments under Section 4(a), then any otherwise unvested stock
options, restricted stock, restricted stock units, stock appreciation rights,
phantom shares, long-term cash incentive bonus, or other form of equity,
phantom equity, quasi-equity, or long-term incentive compensation granted to
you by the Company or any related entity on or after the Acquisition Date (the “LTI
Compensation”) shall (notwithstanding any otherwise applicable vesting and
exercise schedule) immediately become vested and exercisable on a pro-rata
basis determined by reference to a ratio, the numerator of which shall be the
number of your full months of employment with the Company from the effective
date of the Change in Control and the denominator of which shall be the number
of full months under the vesting schedule of the relevant LTI Compensation
award.’”

 

c.                                       The Letter Agreement is hereby
amended by adding a new Section 10 as follows:

 

“10.  Section 409A. 
Payment of amounts or benefits under this Letter Agreement will be
deferred and paid no earlier than six months following your termination of
employment if, and only to the extent, required to comply with Section 409A
of the Code.  In such event, the first
payment will be made for an aggregate amount equal to what would have been paid
under this Letter Agreement over the course of such deferred period.  To comply with Section 409A of the Code,
any Gross-Up Payment due to you under the Plan or the express terms of your
Letter Agreement shall be paid to you within ten (10) business days of
when the Excise Tax is imposed on you.”

 

3

 

2.             2009 Long-Term Equity Compensation. 
Following the Acquisition Date in 2009, the Company, its successor
and/or one or more affiliates of such entities, intend to grant to you LTI
Compensation (as defined above) that is substantially similar in economic value
to the equity award(s) granted by the Company to you during 2008 prior to
the Acquisition Date.

 

3.             Clarification.  For purposes
of clarity, the references in Section 1(b) above to the “Change of
Control” in the amendment to Section 4(a) of the Plan and the
addition of Section 4(j) to the Plan are meant to apply to the
closing of the transaction contemplated by the Merger Agreement.

 

4.             Assumption.  The Company’s
obligations to the Employee under this Amendment, the Letter Agreement, and the
Plan shall be assumed by any successor to the Company.

 

5.             No Mitigation.  Notwithstanding
any other provision of this Amendment, the Letter Agreement, or the Plan, the
Employee will have no obligation to mitigate damages for any breach or
termination of this Agreement, the Letter Agreement, or the Plan by the Company
or its successor, whether by seeking employment or otherwise.

 

6.             Confirmation. 
Except as amended by this Amendment, the Letter Agreement and Plan shall
remain in full force and effect.

 

7.             Future Reference. 
All future references to the Letter Agreement or Plan shall mean such
agreement or plan as amended hereby.

 

8.             Counterparts. 
This Amendment may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

 

9.             Effective Date. 
This Amendment shall become effective upon the Acquisition Date and
until such time shall have no force and effect. 
In the event that the Merger Agreement is terminated in accordance with
its terms, this Amendment shall be null and void and shall have no force and
effect.

 

 

[SIGNATURES BEGIN
ON NEXT PAGE]

 

4

 

SIGNATURE PAGE TO

 

AMENDMENT TO
LETTER AGREEMENT

 

IN WITNESS WHEREOF, the
parties have executed this Amendment to the Letter Agreement on the date and
year first above written.

 

	
   

  	
  MILLENNIUM
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen M. Gansler

  

 

	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ MHF

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Marsha Fanucci

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CFO

  

 

5

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