Document:

Exhibit 10.26

 

December
21, 2005

 

[Name]

[Title]

The
Medicines Company

8
Campus Drive

Parsippany,
NJ 07054

 

Dear
[Name]:

 

In recognition of and as an incentive to induce you
to maintain your continued commitment to The Medicines Company (the “Company”),
the Company agrees, on the terms and subject to the conditions set forth in
this letter (this “Agreement”), as follows:

 

1.                                       As used herein, the following terms shall
have the following meanings:

 

1.1                                 “Cause” shall mean (i) conviction of (or the
entry of a guilty plea or plea of nolo contendere to) any felony or any crime
involving moral turpitude or dishonesty; (ii) participation in a fraud or act
of dishonesty against the Company or any of its affiliates; (iii) willful and
material breach of the Company’s or any of its affiliates’ policies; (iv)
intentional and material damage to the Company’s or any of its affiliates’
property;  (v) materially unsatisfactory
performance of your key duties, responsibilities or objectives, unless such
unsatisfactory performance is cured within ninety (90) days after written
notice; provided, however, that such opportunity to cure shall not be required
where, in the Company’s determination, such unsatisfactory performance is not
capable of cure; or (vi) material breach of your confidentiality obligations or
duties under your non-disclosure, non-competition or other similar agreement
with the Company or any of its affiliates.

 

1.2                                 “Change in Control Event” means:

 

(i)                                     any sale or transfer of all or substantially
all of the assets of the 

 

 

Company to another corporation or entity, or any
merger, consolidation or reorganization of the Company into or with another
corporation or entity, with the result that, upon conclusion of the
transaction, the voting securities of the Company immediately prior thereto do
not represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) more than 50% of the combined voting
power of the voting securities of the continuing or surviving entity of such
merger, consolidation or reorganization; or

 

(ii)                                  a disclosure that any person (as the term “person”
is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act),
other than (A) any shareholder who, prior to the Company becoming subject to
the reporting requirements of Section 13 of the Exchange Act, previously held
at least 30% of the combined voting power of outstanding voting securities of
the Company, (B) the Company, or (C) any corporation owned directly or
indirectly by the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company, has become the
beneficial owner (as the term “beneficial owner” is defined under
Rule 13d-3 or any successor rule or regulation thereto under the Exchange
Act) of securities representing 30% or more of the combined voting power of the
then outstanding voting securities of the Company; or

 

(iii)                               such time as individuals who as of the date
hereof constitute the Board of Directors of the Company, and any new director (other
than a director designated by a person who has entered into an agreement with
the Company to effect any transaction described in clause (i) or (ii) of
this section) whose election by

 

2

 

the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors
then still in office who were either directors at the beginning of the period
or whose election or whose nomination for election was previously so approved,
cease for any reason to constitute a majority of the Board of Directors; or

 

(iv)                              the liquidation or dissolution of the
Company.

 

1.3                                 “Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

1.4                                 “Good Reason” shall
mean the Company’s taking any of
the following actions, which actions shall not have been cured within a 30-day
period following written notice by you: (A) the principal place of the
performance of your responsibilities is changed to a location outside of a 30
mile radius from the Principal Location; (B) there is a material reduction in
your responsibilities as of the date hereof without Cause; (C) there is a
material reduction in your annual base salary as of the date hereof, unless
such reduction is applicable generally to other employees in your grade level;
provided, however, that if such reduction is in an amount greater than ten
percent (10%) of your annual base salary as of the date hereof, then such
reduction shall constitute Good Reason (unless cured as set forth herein) even
if it is applicable generally to other employees in your grade level; (D) there
is a material reduction in your benefits, bonus eligibility or equity
eligibility as of the date hereof, unless such material reduction is also
applicable to other employees in your grade level;  or (E) there is a material breach of the
Company’s obligations to you.

 

1.5                                 “Principal Location” shall mean the principal
place of the performance of your responsibilities on the date hereof.

 

3

 

1.6                                 “Termination Date” shall mean the date on
which the termination of your employment shall become effective.

 

1.7                                 “Termination Event” shall mean the
termination of your employment effective on or prior to the first anniversary
of the date of the consummation of a Change in Control Event (i) by the Company
without Cause; or (ii) by you upon written notice given promptly after the
Company’s taking any action that constitutes Good Reason.

 

2.                                       If the Company terminates your employment
other than for Cause, or if you terminate your employment for Good Reason other
than as provided in Section 3 hereof, subject to Sections 5, 6 and 7 hereof,
the Company will pay to you, and you will be entitled to receive:

 

(i)                                     on the Termination Date,  in a lump sum, an amount equal to one (1)
year of your then current annual base salary, and

 

(ii)                                  for a period of twelve (12) months after the
Termination Date, reimbursement of COBRA health care premiums actually paid by
you and payment by the Company for reasonable outplacement assistance of your
choosing; provided that the payments provided in this Section 2 (ii) shall
terminate upon your commencing employment with a new employer, and

 

(iii)                               accelerated vesting, effective on the
Termination Date, of stock options previously granted to you which would have
vested within one (1) year after the Termination Date (assuming that you had
continued to be employed by the Company during such one (1) year period).

 

3.                                       If you terminate your employment for Good
Reason as a result of the Company taking the action described in item (C) of
the definition of

 

4

 

Good Reason, and a Change in Control Event has not
been consummated prior to such termination, subject to Sections 5, 6 and 7
hereof, the Company will pay to you, and you will be entitled to receive:

 

(i)                                     on the Termination Date,  in a lump sum, an amount equal to six (6)
months of your then current annual base salary, and

 

(ii)                                  for a period of twelve (12) months after the
Termination Date, reimbursement of COBRA health care premiums actually paid by
you and payment by the Company for reasonable outplacement assistance of your
choosing; provided that the payments provided in this Section 2 (ii) shall
terminate upon your commencing employment with a new employer, and

 

(iii)                               accelerated vesting, effective on the
Termination Date, of stock options previously granted to you which would have
vested within six (6) months after the Termination Date (assuming that you had
continued to be employed by the Company during such six (6) month period).

 

4.                                       If a Termination Event occurs, subject to
Sections  5, 6 and 7 hereof, the Company
will pay to you, and you will be entitled to receive:

 

(i)                                     on the Termination Date, in a lump sum, an
amount equal to the sum of (A) one (1) year of your then current annual base
salary, plus (B) an amount equal to forty percent (40%) of your then current
annual base salary (in lieu of any other bonus payment payable for the year in
which termination occurs), and

 

(ii)                                  for a period of twelve (12) months after the
Termination Date, reimbursement of COBRA health care premiums actually paid by
you and payment by the Company for reasonable

 

5

 

outplacement assistance of your choosing; provided
that the payments provided in this Section 3 (ii) shall terminate upon your
commencing employment with a new employer, and

 

(iii)                               accelerated vesting, effective on the
Termination Date, of stock options previously granted to you which would have
vested within one (1) year after the Termination Date (assuming that you had
continued to be employed by the Company during such one (1) year period).

 

5.                                       (a)                                  In addition to
any other amounts that may be payable to you hereunder, in the event of the
termination of your employment with the Company for any reason, the Company
will pay you (or in the case of death, your spouse and, in the event you have
no spouse, your estate), your base salary earned but not yet paid through the
Termination Date, any vacation pay accrued through the Termination Date payable
pursuant to the Company’s policies in effect from time to time, any
unreimbursed business expenses incurred through the Termination Date pursuant
to the Company’s policies in effect from time to time, and (except if the
Company terminates your employment for Cause), any bonus earned but not yet
paid prior to your Termination Date.

 

(b)                                 The Company may
withhold from any and all amounts payable under this Agreement such federal,
state and local taxes as may be required to be withheld pursuant to applicable
law or regulation. Upon your termination of employment from the Company, the
Company may also offset amounts that you owe to the Company against any amounts
payable to you hereunder.

 

6

 

(c)                                  If your
employment is terminated for any reason, you are not required to seek other
employment or attempt in any way to reduce any amounts payable to you under
this Agreement, except with respect to health coverage and outplacement as
provided under Sections 2 (ii), 3 (ii) and 4 (ii) hereof.

 

6.                                       In order to receive the payments and benefits
provided in this Agreement, you will be required to execute, effective as of
the Termination Date, a general release in favor of the Company, in form and
substance reasonably satisfactory to the Company.

 

7.                                       (a)                                  Any provision in this Agreement (or any
agreement or arrangement referenced herein) that is inconsistent with the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), and the regulations issued or to be issued by the Department of
the Treasury thereunder (“Section 409A”), including the timing of any payment,
shall be promptly amended in a manner mutually agreed to by the parties hereto
in good faith in order to attempt to avoid triggering adverse tax consequences
to you under Section 409A.

 

(b)                                 In the event any payment that is either
received by you or paid by the Company on your behalf, or any property or
any other benefit provided to you under this Agreement or under any other plan,
arrangement or agreement with the Company or any other person whose payments,
property or benefits are treated as contingent on a change of ownership or
control of the Company (or in the ownership of a substantial portion of the
assets of the Company) or of any person affiliated with the Company or such
person (but only if such payment or other

 

7

 

property or benefit is in connection with your
employment by the Company) (collectively, the “Company Payments”), will be
subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (or
any successor provision and any similar tax that may hereafter be imposed
by any taxing authority), the amount of the Company Payments shall be
automatically reduced to an amount that is one dollar less than an amount that
would be subject to the Excise Tax; provided, however, that the reduction
shall occur only if the reduced Company Payments (after taking into account
further reductions for applicable federal, state and local income, social
security and other taxes) would be greater than the unreduced Company Payments
minus (i) the Excise Tax payable with respect to such Company Payments, and
(ii) all applicable federal, state and local income, social security and other
taxes on such Company Payments.

 

8.                                       Except as amended as set forth herein, all of
the terms and conditions of the letter agreement, dated April 11, 2002, between
you and the Company remain in full force and effect. In addition, by signing
this Agreement, you acknowledge and reaffirm your obligation to keep
confidential all non-public information concerning the Company which you
acquired during the course of your employment with the Company, as stated more
fully in the Invention and Non-Disclosure Agreement, and your obligations not
to compete with the Company or to solicit or hire employees of the Company, as
stated more fully in the Non-Competition and Non-Solicitation Agreement, both
of which agreements you executed at the inception of your employment and which
remain in full force and effect following the termination of your employment.

 

8

 

9.                                       No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto.

 

10.                                 This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns. This Agreement is assignable by the Company
only to an entity that is owned, directly or indirectly, in whole or in part by
the Company or by any successor to the Company or an acquirer of all or
substantially all of the assets of the Company.

 

Please indicate your acceptance of and agreement to
the foregoing by executing the enclosed copy of this letter where indicated and
returning it to me.

 

 

	
  Very truly yours,

  	
   

  
	
   

  	
   

  
	
  THE MEDICINES COMPANY

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Clive A. Meanwell

  
	
  Title:

  	
  Chairman and Chief Executive Officer

  
	
   

  
	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Name]

  	
   

  
					

 

9Exhibit 10.27

 

The Medicines Company

8 Campus Drive

Parsippany, New Jersey 07054

 

December 23, 2005

 

Dear
                   :

 

This
letter agreement (this “Agreement”) is being entered into by and between The
Medicines Company (the “Company”), a Delaware corporation, and you in
connection with the acceleration of vesting of any stock options granted to you
pursuant to the Company’s                                        
Plan that are “Out of the Money Options” (as defined below).

 

Upon
the recommendation of the Compensation Committee, the Board of Directors of the
Company (the “Board”) has determined to fully accelerate the vesting of each
otherwise unvested stock option held by an option holder either employed by the
Company or serving as a member of the Board as of December 23, 2005, if such
option has an exercise price per share equal to or greater than $20.50 (the “Out
of the Money Options”).

 

Lock-Up
Agreement

 

In
consideration of the acceleration of each Out of the Money Options, you hereby
agree to refrain from selling, transferring, pledging or otherwise disposing of
any shares of the Company’s common stock, par value $0.001 per share (the “Shares”)
acquired upon the exercise of the Out of the Money Option (the “Lock-Up”), until
the date on which the exercise would have been permitted under the
pre-acceleration vesting schedule set forth in the option agreement between you
and the Company relating to the Out of the Money Options. Notwithstanding the
foregoing, if (i) you cease to be employed by the Company or a member of the
Board prior to such time as exercise would have been permitted under the
pre-acceleration vesting schedule for the Out of the Money Options, or (ii)
there is a “Change in Control Event,” as defined in the Company’s 2004 Stock
Incentive Plan prior to such time as exercise would have been permitted under the
pre-acceleration vesting schedule for the Out of the Money Options, the Lock-Up
shall expire with respect to all of the Shares relating to the Out of the Money
Options on the last day of your employment with the Company or membership on
the Board, or consummation of the Change in Control Event, as applicable.

 

This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one
instrument.

 

If
this Agreement correctly sets forth our agreement on the subject matter hereof,
kindly sign and return to the Company the enclosed copy of the Agreement which
will then constitute our agreement on this subject.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  THE
  MEDICINES COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

I
acknowledge receipt and agree with the foregoing terms and conditions as of the
date first written above.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]