Document:

Exhibit 10

Exhibit 10.29

 

EMPLOYMENT AGREEMENT

 

AGREEMENT,

dated as of December 13, 2001, between Transkaryotic Therapies, Inc., a

Delaware corporation (the “Company”), and David Pendergast (the “Executive”).

 

1.             EMPLOYMENT.  The Company hereby employs the Executive and

the Executive hereby accepts employment, effective January 2, 2002 (the

“Commencement Date”), with the Company upon the terms and conditions herein set

forth.

 

2.             DUTIES.  The Executive shall be engaged as a full-time employee to act as

the Company’s Senior Vice President, Quality and Analytical Development, and

shall report to the Company’s Founder and Chief Executive Officer.  The Executive shall perform the duties

consistent with such position as the Founder and Chief Executive Officer shall

from time to time reasonably designate, including formulation, bioassay

development and analytical development. 

The Executive shall devote his entire time, attention and energies to

the business of the Company and shall not engage in any other business activity

or activities, whether or not such business activity is pursued for gain,

profit or other pecuniary advantage that, in the judgment of the Company, may

conflict with the proper performance of the Executive’s duties under this

Agreement.  Notwithstanding the

foregoing, (a) with respect to businesses which do not compete with the

Company, the Executive may invest his personal or family assets in such form or

manner as will not require any services on the part of the Executive in the

operation of the affairs of the companies in which such investments are made

and in which his participation is solely that of an investor, and (b) the

Executive may purchase securities in any corporation whose securities are

regularly traded in recognized securities markets, provided that such

investments shall not result in his collectively owning beneficially at any

time one percent (1%) or more of the equity securities of any corporation

engaged in a business competitive to that of the Company.

 

3.             COMPENSATION.

 

(a)           Base Salary.  For services rendered under this Agreement,

the Company shall pay the Executive an annual salary of $280,000 (the “Base

Salary”), payable (after deduction of applicable withholding for Federal and

state income and payroll taxes) in equal semi-monthly installments.  The Company may review the Executive’s

compensation annually and make such increases to the Base Salary as the Company

determines are merited, based upon the Executive’s performance and consistent

with the Company’s compensation policies as established by the Compensation

Committee of the Company’s Board of Directors. 

Any such increase in annual Base Salary shall be communicated to the

Executive shortly after the January meeting of the Board of Directors and shall

be made effective on the first day of January each year.

 

(b)           Bonus. The Chief Executive

Officer and the Executive shall establish objective performance goals for the

Executive for such calendar year.  Upon

the attainment of such performance goals, but subject to the overall performance

of the Company during such year, the Executive may be entitled to a bonus

targeted at twenty percent (20%) of base compensation, as determined by the

Compensation Committee of the Company’s Board of Directors.  Within thirty (30) days after the close of each

such calendar year, the Company shall evaluate the attainment of the

performance goals for such calendar year and determine the amount of any

performance bonus payable hereunder. 

Any such performance bonus shall be payable within ninety (90) days after

the calendar year to which it relates.

 

 

 

 

(c)           Fringe Benefits.  In addition to Base Salary and Bonus

payments under Sections 3(a), (b), and (c) above, the Executive shall be

eligible for and participate in such fringe benefits, in accordance with the

terms of each such benefit, as shall be generally provided to executives of the

company, including incentive compensation, the Company’s 401(k) Plan, health

and dental insurance, and any retirement programs, stock options plans or

employee stock purchase plans which may be adopted from time to time during the

term hereof by the Company.  Nothing

herein contained shall be deemed to preclude the Company from granting such

additional compensation or benefits to the Executive as it shall in its sole

discretion determine.

 

(d)           Stock Options.  Upon authorization by the Company’s Board of

Directors or Compensation Committee, the Company will promptly grant the

Executive under the Company’s 1993 Long-Term Incentive Plan (the “Plan”) a

nonstatutory stock option to purchase an aggregate of one hundred thousand

(100,000) shares of the Common Stock of the Company, par value $.01 per share,

at a purchase price equal to the bid price of the stock as of the close of

business on the last trading day before the Commencement Date.  Of such options, 8,334 will vest immediately

upon your hire date, with the remaining 91,666 vesting annually for a period of

six (6) years on the anniversary date of this Agreement.  Such options shall be exercisable during the

ten (10) year period following its date of vesting and shall be subject to all

the terms and conditions of the Plan and the Company’s standard form of Stock

Option Agreement, copies of which have been delivered to the Executive

separately.

 

4.             VACATION.  During the term of this Agreement, the Executive shall be

entitled to fifteen (15) annual vacation days accrued at the rate of 1.25 days

per month.

 

5.             SICK LEAVE.  During the term of this Agreement, the

Executive shall be entitled to sick leave consistent with the Company’s customary

sick leave policy.

 

6.             EXPENSES.  During the term of this Agreement, the Company shall reimburse

the Executive in accordance with the Company’s customary policies for all

reasonable out-of-pocket expenses incurred by the Executive in connection with

the business of the Company and in performance of his duties under this

Agreement upon the Executive’s presentation to the Company of an itemized

accounting of such expenses with reasonable supporting data.

 

7.             TERM.

 

(a)           The Executive’s employment under this

Agreement shall commence on the Commencement Date and shall continue until

terminated by the Company as provided in this Section 7(a) or by the Executive

as provided in Section 7(c) below.  The

Company may, at its election, terminate the obligations of the Company under

this Agreement as follows:

 

(i)            Upon at least sixty (60) days’ prior

written notice if the Executive becomes physically or mentally incapacitated or

is injured so that he is unable to perform the services required of him

hereunder and such inability to perform continues for a period in excess of six

(6) months and is continuing at the time of such notice; or

 

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(ii)           For “Cause” upon prior written notice

of such termination to the Executive. 

For purposes of this Agreement, the Company shall have “Cause” to

terminate its obligations hereunder upon (a) the Company’s determination that

the Executive has ceased or failed to substantially perform his duties

hereunder (other than as a result of his incapacity due to physical or mental

illness or injury), and at least thirty (30) days’ prior written notice to the

Executive, (b) the Executive’s death, (c) the Company’s determination that the

Executive has engaged or is about to engage in conduct materially injurious to

the Company, (d) the Executive’s having been convicted of a felony, or (e) the

Executive’s participation in activities proscribed by the provisions of

Sections 2, 9, or 11 hereof or material breach of any of the other covenants herein;

or

 

(iii)          Without Cause upon at least sixty (60)

days’ prior written notice of such termination to the Executive.

 

(b)           If, subsequent to six (6) months of

the date the Executive’s employment hereunder commences, this Agreement is

terminated pursuant to Section 7(a)(i) above, subject to Section 11(d) below,

the Executive shall receive severance pay until the fourth anniversary of the

date hereof at the rate of one hundred percent (100%) of Base Salary, reduced

by applicable payroll taxes and further reduced by the amount received by the

Executive during such period under any Company maintained disability insurance

policy or plan or under Social Security or similar laws.  Such severance payments shall be paid periodically

to the Executive as provided in Section 3(a) for the payment of Base

Salary.  If this Agreement is terminated

at any time pursuant to Section 7(a)(ii) above, the Executive shall receive no

severance pay.  If this Agreement is

terminated pursuant to Section 7(a)(iii) above after one year of service or

more, the Executive shall receive severance pay, for a period of twelve (12)

months from and after such termination, equal to the Base Salary less the

amount, if any, earned by the Executive during such twelve (12) month period,

whether as salary, consulting fees, deferred payments or other direct or

indirect compensation.  Such severance

payments (less applicable withholding and payroll taxes) shall be paid

periodically to the Executive as provided in Section 3(a) for the payment of

Base Salary.

 

(c)           The Executive may terminate his

employment under this Agreement upon breach by the Company or for Good

Reason.  Termination of the Executive’s

employment for “breach” shall mean that the Company fails to perform, in any

material respect, its obligations under the Agreement, after written notice to

the Company setting forth in reasonable detail the nature of such breach, if

such breach remains uncured for a period of 90 days following such notice to

the Company.  Termination of the

Executive’s employment for “Good Reason” shall only mean termination based on

(i) a substantial diminution in the responsibilities, duties, and powers of the

Executive including, without limitation, the Executive ceasing to be the Senior

Vice President, Quality and Analytical Development of the Company; and/or (ii)

the relocation of the Executive’s present office location to an area more than

100 miles from the metropolitan Boston area. 

In the event of termination of employment pursuant to this paragraph

(c), the Company shall pay to the Executive severance pay for a period of

twelve (12) months in an amount equal to (x) 100% of the Executive’s Base

Salary immediately prior to such termination; plus, (y) any bonus payment for

the fiscal year preceding the year in which such termination occurs that was

earned but not paid at the date of such termination.  The Executive shall not be required to mitigate the amount of any

payment provided for in this paragraph (c) by seeking other employment or

otherwise, but the amount of any payment or benefit provided for in this

paragraph (c) shall be reduced by an amount equal to any compensation earned by

the Executive as a result of employment with another employer after termination

of employment with the Company, or otherwise.

 

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(d)           The Executive may terminate his

employment under this Agreement for any reason upon at least sixty (60) days’

prior written notice.  In the event of

any such termination of employment pursuant to this paragraph (d) (excluding

any termination of employment paragraph (c) above), the Executive shall not be

entitled to any severance payments.

 

8.             REPRESENTATIONS.  The Executive hereby represents to the

Company that (a) he is legally entitled to enter into this Agreement and to

perform the services and other obligations contemplated herein; (b) he has, and

throughout the term of this Agreement will continue to have, the full right,

power and authority, subject to no rights of third parties, to grant to the

Company the rights contemplated by Section 10 hereof; and (c) he is not subject

to any agreement, rule, regulation or policy of any university, research

institution or other third party inconsistent with the foregoing

representations.

 

9.             DISCLOSURE OF INFORMATION.

 

(a)           The Executive recognizes and

acknowledges that the Company’s trade secrets, know-how and proprietary

processes as they may exist from time to time (including, without limitation,

information regarding methods, cultures, vectors, plasmids, synthesis

techniques, nucleic acid sequences, purification techniques, gene activation

and gene therapy techniques, treatments for lysosomal storage disorders, and

assay procedures) as well as the Company’s confidential business plans and

financial data are valuable, special and unique assets of the Company’s

business, access to and knowledge of which are essential to the performance of

the Executive’s duties hereunder.  The

Executive shall not, during or after the term of his employment by the Company,

in whole or in part, disclose such secrets, know-how, processes, business plans

or financial data to any person, firm, corporation, association or other entity

for any reason or purpose whatsoever, nor shall the Executive make use of any

such property for his own purposes or for the benefit of any person, firm,

corporation or other entity (except the Company) under any circumstances during

or after the term of his employment, provided that after the term of his

employment, these restrictions shall not apply to such secrets, know-how, and

processes which the Executive can establish by competent proof:

 

(i)            were known, other than under binder

of secrecy, to the Executive prior to his employment by the Company;

 

(ii)           were passed into the public domain

prior to or after their development by or for the Company, other than through

acts or omissions attributable to the Executive; or

 

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(iii)          were subsequently obtained, other than

under binder of secrecy, from a third party not acquiring the information under

an obligation of confidentiality from the disclosing party.

 

(b)           Upon termination of his employment

hereunder, the Executive shall promptly turn over to the Company all originals

and copies which he may have of any of the Company’s confidential information

described in this Section 9.

 

10.           INTELLECTUAL PROPERTY. 

The Executive hereby sells, transfers, and assigns to the Company, or to

any person or entity designated by the Company, the entire right, title, and

interest of the Executive in and to all inventions, ideas, discoveries, and

improvements (including, without limitation, all microorganisms, strains or

cultures) whether patented or unpatented, and copyrightable material made or

conceived by the Executive, solely or jointly, during the term hereof, which

arise out of research or other activities conducted by, for or under the

direction of the Company, whether or not conducted at the Company’s facilities,

or which relate to methods, apparatus, designs, products, processes or devices,

sold, leased, used or under consideration or development by the Company.  The Executive acknowledges that all

copyrightable materials developed or produced by the Executive within the scope

of his employment constitute works made for hire.  The Executive shall communicate promptly and disclose to the

Company, in such form as the Company may reasonably request, all information,

details, and data pertaining to any such inventions, ideas, discoveries, and

improvements; and the Executive shall execute and deliver to the Company such

formal transfers and assignments and such other papers and documents and shall

give such testimony as may be necessary or required of the Executive to permit

the Company or any person or entity designated by the Company to file and

prosecute patent applications and, as to copyrightable material, to obtain

copyrights thereof.  Any such invention,

idea, discovery or improvement disclosed by the Executive within one (1) year

following the termination of this Agreement shall be deemed to fall within the

provisions of this Section 10 unless proved to have been first conceived and

made following such termination.

 

11.           COVENANTS NOT TO COMPETE OR

INTERFERE.

 

(a)           Subject to Section 11(b) below,

during the term of this Agreement and the period ending twenty-four (24) months

from and after the termination of the Executive’s employment hereunder, the

Executive shall not engage in any business (whether as an officer, director,

owner, employee, partner, consultant, advisor or other direct or indirect

participant) engaged in: (a) the development of (1) non-viral gene therapy, (2)

gene targeting, (3) gene activation methods, or (4) treatments for lysosomal

storage disorders; (b) the sale of products or rendering of services related to

(1) non-viral gene therapy, (2) gene targeting, (3) gene activation methods, or

(4) lysosomal storage disorders; or (c) any other activity which directly

competes with any of the Company’s business activities.  This Agreement shall not be construed to

restrict the Executive’s right to be employed as a faculty member of any

university or employee of any nonprofit agency or foundation after any

termination of this Agreement where this covenant not to compete shall continue

to be in effect.  During the period in

which this covenant not to compete is in effect, the Executive also shall not

interfere with, disrupt or attempt to disrupt the relationship, contractual or

otherwise, between the Company and any customer, supplier, lessor, lessee,

employee, consultant, research partner or investor of the Company.

 

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(b)           If this Agreement is terminated by

the Company pursuant to Section 7(a)(iii) above, the provisions of the first

sentence of Section 11(a) shall apply until twelve (12) months from and after

such termination.

 

(c)           It is the desire and intent of the

parties that the provisions of this Section 11 shall be enforced to the fullest

extent permissible under the laws and public policies applied in each

jurisdiction in which enforcement is sought. 

Accordingly, if any particular Subsection or portion of this Section 11

shall be adjudicated to be invalid or unenforceable, this Section 11 shall be

deemed amended to delete therefrom the portion thus adjudicated to be invalid

or unenforceable, such deletion to apply only with respect to the operation of

this Section in the particular jurisdiction in which such adjudication is made.

 

(d)           In the event of any breach of the

provisions of this Section 11 by the Executive, any and all rights of the

Executive to receive severance payments under Section 7(b) above shall

automatically terminate.

 

12.           INJUNCTIVE RELIEF.  If there is a breach or threatened breach of

the provisions of Section 9, 10, or 11 of this Agreement, the Company shall be

entitled to an injunction, without bond, restraining the Executive from such

breach.  Nothing herein shall be

construed as prohibiting the Company from pursuing any other remedies for such

breach or threatened breach.

 

13.           INSURANCE.  The Company may, at its election and for its benefit, insure the

Executive against accidental loss or death, and the Executive shall submit to

such physical examinations and supply such information as may be required in

connection therewith.

 

14.           NOTICES.  Any notice required or permitted to be given under this Agreement

to the Executive shall be sufficient if in writing and if sent by certified or

registered mail to his residence, or in the case of the Company, to

Transkaryotic Therapies, Inc., 195 Albany Street, Cambridge, MA  02139, Attention:  Chief Executive Officer, or to such other offices or addresses as

the company shall designate from time to time in writing to the Executive.  Any such notice shall be effective on the

earlier of (a) the date on which it is personally delivered or (b) three (3)

days after it is deposited in the United States mails, postage prepaid.

 

15.           WAIVER OF BREACH.  A waiver by the Company or the Executive of

a breach of any provision of this Agreement by the other party shall not

operate or be construed as a waiver of any subsequent breach by the other

party.

 

16.           GOVERNING LAW.  This Agreement shall be governed by and

construed and enforced in accordance with the internal laws of the Commonwealth

of Massachusetts without giving effect to the conflicts of laws provisions

thereof.

 

17.           ASSIGNMENT.  This Agreement may be assigned, without the consent of the

Executive, by the Company to any person, partnership, corporation or other

entity which succeeds to the business of the Company or which has purchased

substantially all the assets of the Company, provided such assignee assumes all

the liabilities of the Company hereunder.

 

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18.           ENTIRE AGREEMENT.  This Agreement contains the entire agreement

of the parties and supersedes any prior understandings or agreements between

the Executive and the Company.  This

agreement may be changed only by an agreement in writing signed by the party

against whom enforcement of any waiver, change, modification, extension or

discharge is sought.

 

IN WITNESS

WHEREOF, the parties have executed this Employment Agreement as of the date

first above written.

 

	

   

  	

  TRANSKARYOTIC

  THERAPIES, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Richard

  F Selden

  	

   

  
	

   

  	

   

  	

  Richard F

  Selden, M.D., Ph.D.

  
	

   

  	

   

  	

  Founder and

  Chief Executive Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  /s/ David

  Pendergast

  	

   

  
	

   

  	

   

  	

  David

  Pendergast

  

 

7Exhibit 10

Exhibit 10.30

 

EMPLOYMENT AGREEMENT

 

AGREEMENT,

dated as of March 18, 2001, between Transkaryotic Therapies, Inc., a Delaware

corporation (the “Company”), and Renato Fuchs (the “Executive”).

 

1.             EMPLOYMENT.  The Company hereby employs the Executive and

the Executive hereby accepts employment, effective March 18, 2002 (the

“Commencement Date”), with the Company upon the terms and conditions herein set

forth.

 

2.             DUTIES.  The Executive shall be engaged as a full-time employee to act as

the Company’s Senior Vice President, Manufacturing and Operations, and shall

report to the Company’s Founder and Chief Executive Officer.  The Executive shall perform the duties

consistent with such position as the Founder and Chief Executive Officer shall

from time to time reasonably designate. 

The Executive shall devote his entire time, attention and energies to

the business of the Company and shall not engage in any other business activity

or activities, whether or not such business activity is pursued for gain,

profit or other pecuniary advantage that, in the judgment of the Company, may

conflict with the proper performance of the Executive’s duties under this

Agreement.  Notwithstanding the

foregoing, (a) with respect to businesses which do not compete with the

Company, the Executive may invest his personal or family assets in such form or

manner as will not require any services on the part of the Executive in the

operation of the affairs of the companies in which such investments are made

and in which his participation is solely that of an investor, and (b) the

Executive may purchase securities in any corporation whose securities are

regularly traded in recognized securities markets, provided that such

investments shall not result in his collectively owning beneficially at any

time one percent (1%) or more of the equity securities of any corporation

engaged in a business competitive to that of the Company.

 

3.             COMPENSATION.

 

(a)           Base Salary.  For services rendered under this Agreement,

the Company shall pay the Executive an annual salary of $280,000 (the “Base

Salary”), payable (after deduction of applicable withholding for Federal and

state income and payroll taxes) in equal semi-monthly installments.  The Company may review the Executive’s

compensation annually and make such increases to the Base Salary as the Company

determines are merited, based upon the Executive’s performance and consistent

with the Company’s compensation policies as established by the Compensation

Committee of the Company’s Board of Directors. 

Any such increase in annual Base Salary shall be communicated to the

Executive shortly after the January meeting of the Board of Directors and shall

be made effective on the first day of January each year.

 

(b)           Bonus. The Chief Executive

Officer and the Executive shall establish objective performance goals for the

Executive for such calendar year.  Upon

the attainment of such performance goals, but subject to the overall

performance of the Company during such year, the Executive may be entitled to a

bonus targeted at twenty percent (20%) of base compensation, as determined by

the Compensation Committee of the Company’s Board of Directors.  Within thirty (30) days after the close of

each such calendar year, the Company shall evaluate the attainment of the

performance goals for such calendar year and determine the amount of any

performance bonus payable hereunder. 

Any such performance bonus shall be payable within ninety (90) days

after the calendar year to which it relates.

 

 

 

 

(c)           Fringe Benefits.  In addition to Base Salary and Bonus

payments under Sections 3(a), (b), and (c) above, the Executive shall be

eligible for and participate in such fringe benefits, in accordance with the

terms of each such benefit, as shall be generally provided to executives of the

company, including incentive compensation, the Company’s 401(k) Plan, health

and dental insurance, and any retirement programs, stock options plans or

employee stock purchase plans which may be adopted from time to time during the

term hereof by the Company.  Nothing

herein contained shall be deemed to preclude the Company from granting such

additional compensation or benefits to the Executive as it shall in its sole

discretion determine.

 

(d)           Stock Options.  Upon authorization by the Company’s Board of

Directors or Compensation Committee, the Company will promptly grant the

Executive under the Company’s 1993 Long-Term Incentive Plan (the “Plan”) a

nonstatutory stock option to purchase an aggregate of one hundred thousand

(100,000) shares of the Common Stock of the Company, par value $.01 per share,

at a purchase price equal to the bid price of the stock as of the close of

business on the last trading day before the Commencement Date.  Of such options, 10,000 will vest immediately

upon your hire date, with the remaining 90,000 vesting annually for a period of

six (6) years on the anniversary date of this Agreement. In addition, if the

Executive chooses to step down as the Senior Vice President, Manufacturing and

Operations to take a less demanding role at the Company after five (5) years of

employment with the Company, but remains an employee of the Company, the

Executive’s option will continue to vest for the following year.  Such options shall be exercisable during the

ten (10) year period following its date of vesting and shall be subject to all

the terms and conditions of the Plan and the Company’s standard form of Stock

Option Agreement, copies of which have been delivered to the Executive

separately.

 

4.             VACATION.  During the term of this Agreement, the Executive shall be

entitled to fifteen (15) annual vacation days accrued at the rate of 1.25 days

per month.

 

5.             SICK LEAVE.  During the term of this Agreement, the

Executive shall be entitled to sick leave consistent with the Company’s

customary sick leave policy.

 

6.             EXPENSES.  During the term of this Agreement, the Company shall reimburse

the Executive in accordance with the Company’s customary policies for all

reasonable out-of-pocket expenses incurred by the Executive in connection with

the business of the Company and in performance of his duties under this

Agreement upon the Executive’s presentation to the Company of an itemized

accounting of such expenses with reasonable supporting data.

 

7.             TERM.

 

(a)           The Executive’s employment under this

Agreement shall commence on the Commencement Date and shall continue until

terminated by the Company as provided in this Section 7(a) or by the Executive

as provided in Section 7(c) below.  The

Company may, at its election, terminate the obligations of the Company under

this Agreement as follows:

 

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(i)            Upon at least sixty (60) days’ prior

written notice if the Executive becomes physically or mentally incapacitated or

is injured so that he is unable to perform the services required of him

hereunder and such inability to perform continues for a period in excess of six

(6) months and is continuing at the time of such notice; or

 

(ii)           For “Cause” upon prior written notice

of such termination to the Executive. 

For purposes of this Agreement, the Company shall have “Cause” to

terminate its obligations hereunder upon (a) the Company’s determination that

the Executive has ceased or failed to substantially perform his duties

hereunder (other than as a result of his incapacity due to physical or mental

illness or injury), and at least thirty (30) days’ prior written notice to the

Executive, (b) the Executive’s death, (c) the Company’s determination that the

Executive has engaged or is about to engage in conduct materially injurious to

the Company, (d) the Executive’s having been convicted of a felony, or (e) the

Executive’s participation in activities proscribed by the provisions of

Sections 2, 9, or 11 hereof or material breach of any of the other covenants

herein; or

 

(iii)          Without Cause upon at least sixty (60)

days’ prior written notice of such termination to the Executive.

 

(b)           If, subsequent to six (6) months of

the date the Executive’s employment hereunder commences, this Agreement is

terminated pursuant to Section 7(a)(i) above, subject to Section 11(d) below,

the Executive shall receive severance pay until the fourth anniversary of the

date hereof at the rate of one hundred percent (100%) of Base Salary, reduced

by applicable payroll taxes and further reduced by the amount received by the

Executive during such period under any Company maintained disability insurance

policy or plan or under Social Security or similar laws.  Such severance payments shall be paid

periodically to the Executive as provided in Section 3(a) for the payment of

Base Salary.  If this Agreement is

terminated at any time pursuant to Section 7(a)(ii) above, the Executive shall

receive no severance pay.  If this

Agreement is terminated pursuant to Section 7(a)(iii) above after one year of

service or more, the Executive shall receive severance pay, for a period of

twelve (12) months from and after such termination, equal to the Base Salary

less the amount, if any, earned by the Executive during such twelve (12) month

period, whether as salary, consulting fees, deferred payments or other direct

or indirect compensation.  Such

severance payments (less applicable withholding and payroll taxes) shall be

paid periodically to the Executive as provided in Section 3(a) for the payment

of Base Salary.

 

(c)           The Executive may terminate his

employment under this Agreement upon breach by the Company or for Good

Reason.  Termination of the Executive’s

employment for “breach” shall mean that the Company fails to perform, in any

material respect, its obligations under the Agreement, after written notice to

the Company setting forth in reasonable detail the nature of such breach, if

such breach remains uncured for a period of 90 days following such notice to

the Company.  Termination of the Executive’s

employment for “Good Reason” shall only mean termination based on (i) a

substantial diminution in the responsibilities, duties, and powers of the

Executive including, without limitation, the Executive ceasing to be the Senior

Vice President, Manufacturing and Operations of the Company; and/or (ii) the

relocation of the Executive’s present office location to an area more than 100

miles from the metropolitan Boston area. 

In the event of termination of employment pursuant to this paragraph

(c), the Company shall pay to the Executive severance pay for a period of

twelve (12) months in an amount equal to (x) 100% of the Executive’s Base

Salary immediately prior to such termination; plus, (y) any bonus payment for

the fiscal year preceding the year in which such termination occurs that was earned

but not paid at the date of such termination. 

The Executive shall not be required to mitigate the amount of any

payment provided for in this paragraph (c) by seeking other employment or

otherwise, but the amount of any payment or benefit provided for in this

paragraph (c) shall be reduced by an amount equal to any compensation earned by

the Executive as a result of employment with another employer after termination

of employment with the Company, or otherwise.

 

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(d)           The Executive may terminate his

employment under this Agreement for any reason upon at least sixty (60) days’

prior written notice.  In the event of

any such termination of employment pursuant to this paragraph (d) (excluding

any termination of employment paragraph (c) above), the Executive shall not be

entitled to any severance payments.

 

8.             REPRESENTATIONS.  The Executive hereby represents to the

Company that (a) he is legally entitled to enter into this Agreement and to

perform the services and other obligations contemplated herein; (b) he has, and

throughout the term of this Agreement will continue to have, the full right,

power and authority, subject to no rights of third parties, to grant to the

Company the rights contemplated by Section 10 hereof; and (c) he is not subject

to any agreement, rule, regulation or policy of any university, research

institution or other third party inconsistent with the foregoing

representations.

 

9.             DISCLOSURE OF INFORMATION.

 

(a)           The Executive recognizes and

acknowledges that the Company’s trade secrets, know-how and proprietary

processes as they may exist from time to time (including, without limitation,

information regarding methods, cultures, vectors, plasmids, synthesis

techniques, nucleic acid sequences, purification techniques, gene activation

and gene therapy techniques, treatments for lysosomal storage disorders, and

assay procedures) as well as the Company’s confidential business plans and

financial data are valuable, special and unique assets of the Company’s

business, access to and knowledge of which are essential to the performance of

the Executive’s duties hereunder.  The

Executive shall not, during or after the term of his employment by the Company,

in whole or in part, disclose such secrets, know-how, processes, business plans

or financial data to any person, firm, corporation, association or other entity

for any reason or purpose whatsoever, nor shall the Executive make use of any

such property for his own purposes or for the benefit of any person, firm,

corporation or other entity (except the Company) under any circumstances during

or after the term of his employment, provided that after the term of his

employment, these restrictions shall not apply to such secrets, know-how, and

processes which the Executive can establish by competent proof:

 

(i)            were known, other than under binder

of secrecy, to the Executive prior to his employment by the Company;

 

4

 

(ii)           were passed into the public domain prior

to or after their development by or for the Company, other than through acts or

omissions attributable to the Executive; or

 

(iii)          were subsequently obtained, other than

under binder of secrecy, from a third party not acquiring the information under

an obligation of confidentiality from the disclosing party.

 

(b)           Upon termination of his employment

hereunder, the Executive shall promptly turn over to the Company all originals

and copies which he may have of any of the Company’s confidential information

described in this Section 9.

 

10.           INTELLECTUAL PROPERTY.  The Executive hereby sells, transfers, and

assigns to the Company, or to any person or entity designated by the Company,

the entire right, title, and interest of the Executive in and to all inventions,

ideas, discoveries, and improvements (including, without limitation, all

microorganisms, strains or cultures) whether patented or unpatented, and

copyrightable material made or conceived by the Executive, solely or jointly,

during the term hereof, which arise out of research or other activities

conducted by, for or under the direction of the Company, whether or not

conducted at the Company’s facilities, or which relate to methods, apparatus,

designs, products, processes or devices, sold, leased, used or under

consideration or development by the Company. 

The Executive acknowledges that all copyrightable materials developed or

produced by the Executive within the scope of his employment constitute works

made for hire.  The Executive shall

communicate promptly and disclose to the Company, in such form as the Company

may reasonably request, all information, details, and data pertaining to any

such inventions, ideas, discoveries, and improvements; and the Executive shall

execute and deliver to the Company such formal transfers and assignments and

such other papers and documents and shall give such testimony as may be

necessary or required of the Executive to permit the Company or any person or

entity designated by the Company to file and prosecute patent applications and,

as to copyrightable material, to obtain copyrights thereof.  Any such invention, idea, discovery or

improvement disclosed by the Executive within one (1) year following the

termination of this Agreement shall be deemed to fall within the provisions of

this Section 10 unless proved to have been first conceived and made following

such termination.

 

11.           COVENANTS NOT TO COMPETE OR

INTERFERE.

 

(a)           Subject to Section 11(b) below,

during the term of this Agreement and the period ending twenty-four (24) months

from and after the termination of the Executive’s employment hereunder, the

Executive shall not engage in any business (whether as an officer, director,

owner, employee, partner, consultant, advisor or other direct or indirect

participant) engaged in: (a) the development of (1) non-viral gene therapy, (2)

gene targeting, (3) gene activation methods, or (4) treatments for lysosomal

storage disorders; (b) the sale of products or rendering of services related to

(1) non-viral gene therapy, (2) gene targeting, (3) gene activation methods, or

(4) lysosomal storage disorders; or (c) any other activity which directly

competes with any of the Company’s business activities.  This Agreement shall not be construed to restrict

the Executive’s right to be employed as a faculty member of any university or

employee of any nonprofit agency or foundation after any termination of this

Agreement where this covenant not to compete shall continue to be in

effect.  During the period in which this

covenant not to compete is in effect, the Executive also shall not interfere

with, disrupt or attempt to disrupt the relationship, contractual or otherwise,

between the Company and any customer, supplier, lessor, lessee, employee,

consultant, research partner or investor of the Company.

 

5

 

 

 

(b)           If this Agreement is terminated by

the Company pursuant to Section 7(a)(iii) above, the provisions of the first

sentence of Section 11(a) shall apply until twelve (12) months from and after

such termination.

 

(c)           It is the desire and intent of the

parties that the provisions of this Section 11 shall be enforced to the fullest

extent permissible under the laws and public policies applied in each

jurisdiction in which enforcement is sought. 

Accordingly, if any particular Subsection or portion of this Section 11

shall be adjudicated to be invalid or unenforceable, this Section 11 shall be

deemed amended to delete therefrom the portion thus adjudicated to be invalid

or unenforceable, such deletion to apply only with respect to the operation of

this Section in the particular jurisdiction in which such adjudication is made.

 

(d)           In the event of any breach of the

provisions of this Section 11 by the Executive, any and all rights of the

Executive to receive severance payments under Section 7(b) above shall

automatically terminate.

 

12.           INJUNCTIVE RELIEF.  If there is a breach or threatened breach of

the provisions of Section 9, 10, or 11 of this Agreement, the Company shall be

entitled to an injunction, without bond, restraining the Executive from such

breach.  Nothing herein shall be

construed as prohibiting the Company from pursuing any other remedies for such

breach or threatened breach.

 

13.           INSURANCE.  The Company may, at its election and for its benefit, insure the

Executive against accidental loss or death, and the Executive shall submit to

such physical examinations and supply such information as may be required in

connection therewith.

 

14.           NOTICES.  Any notice required or permitted to be given under this Agreement

to the Executive shall be sufficient if in writing and if sent by certified or

registered mail to his residence, or in the case of the Company, to

Transkaryotic Therapies, Inc., 195 Albany Street, Cambridge, MA  02139, Attention:  Chief Executive Officer, or to such other offices or addresses as

the company shall designate from time to time in writing to the Executive.  Any such notice shall be effective on the

earlier of (a) the date on which it is personally delivered or (b) three (3)

days after it is deposited in the United States mails, postage prepaid.

 

15.           WAIVER OF BREACH.  A waiver by the Company or the Executive of

a breach of any provision of this Agreement by the other party shall not

operate or be construed as a waiver of any subsequent breach by the other

party.

 

16.           GOVERNING LAW.  This Agreement shall be governed by and

construed and enforced in accordance with the internal laws of the Commonwealth

of Massachusetts without giving effect to the conflicts of laws provisions

thereof.

 

17.           ASSIGNMENT.  This Agreement may be assigned, without the consent of the

Executive, by the Company to any person, partnership, corporation or other

entity which succeeds to the business of the Company or which has purchased

substantially all the assets of the Company, provided such assignee assumes all

the liabilities of the Company hereunder.

 

6

 

 

 

18.           ENTIRE AGREEMENT.  This Agreement contains the entire agreement

of the parties and supersedes any prior understandings or agreements between

the Executive and the Company.  This

agreement may be changed only by an agreement in writing signed by the party

against whom enforcement of any waiver, change, modification, extension or

discharge is sought.

 

IN WITNESS

WHEREOF, the parties have executed this Employment Agreement as of the date

first above written.

 

	

   

  	

  TRANSKARYOTIC

  THERAPIES, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Richard

  F Selden

  	

   

  
	

   

  	

   

  	

  Richard F

  Selden, M.D., Ph.D.

  
	

   

  	

   

  	

  Founder and

  Chief Executive Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  /s/ Renato

  Fuchs

  	

   

  
	

   

  	

   

  	

  Renato Fuchs

  
					

 

7

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