Document:

Exhibit 10.30

 

Execution Version

 

Amendment No. 3

to

Employment Agreement

 

This
Amendment No. 3 (the “Amendment”) to the Employment Agreement,
dated November 1, 1994, as amended on May 12, 1995 and November 8,
2004 (the “Agreement”), between Vertex Pharmaceuticals Incorporated, a
Massachusetts corporation (together with its successors and assigns, the “Company”)
and Joshua S. Boger (the “Executive”) is entered into by the parties on December 30,
2008.  The parties hereby agree that the
Agreement shall be amended as follows:

 

1.             Section 6.4 of the Agreement shall be
amended to add the following words at the end of the first sentence of such
Section:

 

“, payable in a lump sum within ten (10) business
days after the effective date of termination.”

 

2.             Section 7.1.4 of the Agreement shall be
amended by adding the following at the end of such Section:

 

“The parties intend that continued health coverage
under the Company’s plans shall not constitute a ‘deferral of compensation’
under Treas. Reg. Section 1.409A-1(b) during the period the Executive
would be entitled to continuation coverage under COBRA (typically 18 months)
and that any continued life, disability and accident coverage shall not
constitute a ‘deferral of compensation’ during any period in which such continued
coverage qualifies as a ‘limited payment’ of an ‘in kind’ benefit under Treas.
Reg. Section 1.409A-1(b)(9)(v)(C) and (D). 
Any portion of the continued life, disability, accident and health
coverage that is subject to Section 409A of the Code is intended to
qualify as a ‘reimbursement or in-kind benefit plan’ under Treas. Reg. Section 1.409A-3(i)(1)(iv).  In no event shall the amount that the Company
pays for any such benefit in any one year affect the amount that it will pay in
any other year, and in no event shall the benefits described in this paragraph
be subject to liquidation or exchange. If the Company reimburses the Executive
for the amount of any benefit under this Section 7.1.4, such reimbursement
shall be made on or before the last day of the Executive’s taxable year
following the taxable year in which the expense was incurred. Notwithstanding
the foregoing, if the Executive is a ‘specified employee’ (as defined in Section 12)
as of the date of the Executive’s termination of employment, no such life,
disability or accident benefits that are not excludable from the income of the
Executive and that are, in the aggregate, in excess of the then current dollar
limit set forth in Section 402(g)(1)(B) of the Code shall be payable during the
first six (6) months after such Executive’s termination of employment. To the
extent that amounts would otherwise have been payable during such six month
period in excess of such limit, the excess amount shall be payable on the first
day following the end of the six-month period after the Executive’s termination
of employment. The Executive shall have the right during such six-month period
to pay any unpaid part of the premiums on such benefits at the Executive’s own
expense in order for the Executive to keep such benefits in force.”

 

3.             Section 7.1.6 of the Agreement shall be
amended by adding the following at the end of the last sentence of such
Section:

 

“, but in no event later than the last day of the
Executive’s taxable year following the taxable year in which the Executive
remits the related taxes.”

 

 

4.             Section 11.5.1 of the Agreement shall be
amended by deleting the second sentence of such Section in its entirety.

 

5.             A new Section 12 shall be added, which
shall state in its entirety as follows:

 

“12.         409A.

 

Each
payment and benefit payable under this Agreement is intended to constitute a
separate payment for purposes of Treasury Reg. §1.409A-2(b)(2).  If the Executive is a ‘specified employee’ as
defined in Treasury Reg. §1.409A-1(i), the commencement of the delivery of any
such payments that constitute nonqualified deferred compensation payable upon a
‘separation from service’ under Section 409A(a)(2)(A)(i) of the Code
(determined after applying the presumptions set forth in Treasury Reg.
§1.409A-1(h)(1)) will be delayed until the later of (i) the first business
day that is more than six months after the employment termination date and (ii) the
date such payments would otherwise be payable hereunder. The determination of
whether, and the extent to which, any of the payments to be made to the
Executive hereunder are nonqualified deferred compensation shall be made after
the application of all applicable exclusions, including those set forth under
Treasury Reg. § 1.409A-1(b)(9). Any payments that are intended to qualify for
the exclusion for separation pay due to involuntary separation from service set
forth in Reg. §1.409A-1(b)(9)(iii) must be paid no later than the last day
of the second taxable year following the taxable year in which the employment
termination date occurs. To the extent that the termination of the Executive’s
employment does not constitute a separation of service under Section 409A(a)(2)(A)(i)
of the Code (as the result of further services that are reasonably anticipated
to be provided by the Executive to the Company at the time the Executive’s
employment is terminated, determined after applying the presumptions set forth
in Treasury Reg. §1.409A-1(h)(1)), the payment of any non-qualified deferred
compensation will be further delayed until the later of (i) date the first
business day that is more than six months after the date of a subsequent event
constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code
and (ii) the date such payments would otherwise be payable hereunder.”

 

6.             As so amended, the Agreement shall remain in
full force and effect.

 

7.             This Amendment may be executed in any number
of counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the date first
written above.

 

	
   

  	
  VERTEX PHARMACEUTICALS
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Valerie L. Andrews

  
	
   

  	
   

  	
  Valerie L. Andrews

  
	
   

  	
   

  	
  Vice President and Deputy General Counsel

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Joshua S. Boger

  
	
   

  	
   

  	
  Joshua S. Boger

  
	
   

  	
   

  	
  President and Chief
  Executive OfficerExhibit 10.60

 

Vertex Employee Compensation Plan

 

On
an annual basis in the first quarter of the fiscal year the Management
Development and Compensation Committee of our Board of Directors adopts an
employee compensation plan for our officers and other employees, including our
named executive officers together with performance goals for that fiscal year.
The plan addresses three components of employee compensation—base salary,
performance bonus which serve as short-term incentives and equity grants which
serve as long-term incentive—that are designed to motivate, reward and retain
employees by aligning compensation with the achievement of strategic corporate
goals as well as individual performance objectives.

 

Upon
completion of each performance period (usually a calendar year), our Board of
Directors assigns us a performance rating on the basis of achievement of goals
for the company set by the Board early in the performance period. The amount
available for payment of performance bonuses is established on the basis of
this performance rating, and is allocated to employees on the basis of salary
tier and individual performance rating. The base salary of the executive
officers are set based on market and other competitive factors. Merit increases
to base salaries for other employees are made on the basis of individual
performance rating. Annual equity grants, made in the form of stock options,
restricted stock grants, or a combination of both are made on the basis of
salary tier and individual performance.

 

The
Management Development and Compensation Committee retains broad discretion to
determine the appropriate form and level of compensation, particularly for our
executives, on the basis of its assessment of our executives, the demand for
talent, our performance and other factors. Key corporate performance factors
generally include, among other things, achievement of specific financial
objectives, research productivity, development progression with respect to both
internal development efforts and collaborative development, and other aspects
of our performance. We reserve the right to modify the plan, and the key
corporate performance factors and criteria under the plan, at any time.

 

On
February 5, 2009, we determined the cash bonus awards related to the
fiscal year ended December 31, 2008 and annual salaries effective February
2009. The cash bonus awards for the following executive officers were:

 

	
  Name

  	
   

  	
  2008 Cash Bonus

  	
   

  	
  2009 Salary

  	
   

  
	
  Joshua S. Boger

  	
   

  	
  $

  	
  978,750

  	
   

  	
  $

  	
  950,151

  	
   

  
	
  Matthew W. Emmens

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  1,100,000

  	
   

  
	
  Kurt C. Graves

  	
   

  	
  $

  	
  369,968

  	
   

  	
  $

  	
  470,453

  	
   

  
	
  Peter Mueller

  	
   

  	
  $

  	
  385,324

  	
   

  	
  $

  	
  472,481

  	
   

  
	
  Ian F. Smith

  	
   

  	
  $

  	
  391,500

  	
   

  	
  $

  	
  463,500

  	
   

  
	
  Kenneth S. Boger

  	
   

  	
  $

  	
  315,158

  	
   

  	
  $

  	
  412,207Exhibit 10.64

 

Amendment No. 2

to

Amended and Restated Employment Agreement

 

This
Amendment No. 2 to the Amended and Restated Employment Agreement, dated November 8,
2004, as amended on February 11, 2008 (the “Agreement”), between
Vertex Pharmaceuticals Incorporated, a Massachusetts corporation (together with
its successors and assigns, the “Company”) and Kenneth S. Boger (the “Executive”)
is entered into by the parties on December 29, 2008.  The parties hereby agree that the Agreement
shall be amended as follows:

 

1.                                      Section 1(g) shall be amended by
adding the following to the end thereof:

 

“Notwithstanding the
foregoing, to the extent that any payments under this Agreement that are payable
upon disability constitute nonqualified deferred compensation subject to Section 409A
of the Code, “DISABILTY” or “DISABLED” shall mean, by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, the Executive is either (a) unable to engage in any substantial
gainful activity or (b) receiving income replacement benefits for a period
of not less than three months under any disability plan covering employees of
the Company.  For purposes of the immediately
foregoing sentence, the existence of a disability will be determined in all
respects in accordance with the provisions of Section 409A(a)(2)(C) of
the Code.

 

2.                                      Section 8 shall be amended by inserting
the following language at the end of the current language, as follows:

 

“Any reimbursement in
one calendar year shall not affect the amount that may be reimbursed in any
other calendar year, and a reimbursement (or right thereto) may not
be exchanged or liquidated for another benefit or payment.  Any expense
reimbursements subject to Section 409A of the Code shall be made no later
than the end of the calendar year following the calendar year in which such
business expense is incurred by the Executive.”

 

3.                                      Section 10(a)(vii) shall be amended
in its entirety to read as follows:

 

“(vii)       six months of Severance Pay, payable in
accordance with the regular payroll practices of the Company, commencing on the
first day of the month following the month in which termination under this SECTION
10(a) occurred;”

 

4.                                      Section 10(b) shall
be amended to delete the last paragraph thereof in its entirety.

 

5.                                      The
first phrase of Section 10(c)(iii) shall be amended to read as
follows:

 

“(iii)        Twelve months of Severance Pay, payable
in accordance with the regular payroll practices of the Company, commencing on
the first day of the month following the month during which the Executive’s
employment is terminated under this SECTION 10(c);”

 

6.                                      Section 10(c)(viii) shall
be amended in its entirety as follows:

 

“(viii)      until the earlier of (a) the
expiration of the term of the Severance Pay paid under Section 10(c)(iii) above
or (b) the date the Executive receives equivalent coverage and benefits
under the 

 

 

plan of a subsequent employer, the Company shall
provide the Executive with medical and dental insurance benefits substantially
similar to those which the Executive was receiving immediately prior to the
termination of his employment, including any employer paid portion of the
premium, subject to the Executive’s election of benefits under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”) in accordance with the
applicable plan procedures. During such time that the Executive is receiving
such continued medical and dental benefits from the Company, the Company shall
also provide Executive with life insurance benefits substantially similar to
those which the Executive was receiving immediately prior to the termination of
his employment

 

7.                                      Section 26 shall be amended as follows:

 

(i)            By adding the following to the end
of the first paragraph thereof:

 

“The Company will pay to Executive the Additional
Amount within 10 days after the Executive delivers to the Company a calculation
of the Additional Amount, together with such supporting documentation as the
Company may reasonably require, provided that the Company does not object to
such calculation.”

 

(ii)           By adding the following to the end of
the third paragraph thereof:

 

“Notwithstanding the foregoing, no payments under
this Section 26 from the Company to Executive shall be made after the end
of the calendar year immediately following the calendar year in which the
Executive remits the related taxes to the applicable taxing authority.”

 

8.             Section 27
shall be amended to add the following at the end of the current language:

 

“Any portion of a payment that constitutes nonqualified deferred
compensation under Section 409A of the Code payable as a result of a
termination of employment may only be paid upon a “separation from service”
under Section 409A(a)(2)(A)(i) of the Code. 
For purposes of clarification, the foregoing sentence shall not cause
any forfeiture of benefits on the part of the Executive, but shall only act as
a delay until such time as a “separation from service” occurs.”

 

 

As so amended, the Employment Agreement shall
remain in full force and effect. 
Executed as of the date set forth above:

 

	
   

  	
   

  	
  VERTEX PHARMACEUTICALS INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Valerie Andrews

  
	
   

  	
   

  	
   

  	
  V.P. & Deputy General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Kenneth S. Boger

  
	
   

  	
   

  	
   

  	
  Kenneth S. Boger

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