Document:

exv4wxcyx14y

 

Exhibit 4(c)(14)

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Memo	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
		 	élan corporation, plc
	 	 	 	 	Lincoln House, Lincoln Place,
	 	 	 	 	Dublin 2, Ireland
	 

	 	 	 	Telephone
	 	(+353 1) 709 4000	 	 	 	 
	 

	 	 	 	Fax
	 	(+353 1) 662 4123	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	To

	 	Paul Breen
	 	Date
	 	26 November 2001	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	From

	 	Roisin Farragher
	 	CC
	 	Campbell Fitch	 	 	 	 
	 

	 	 	 	 	 	Paul Gallen	 	 	 	 
	 

	 	 	 	 	 	Ann Williams	 	 	 	 
	 

	 	 	 	 	 	Colin Sainsbury	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Subject

	 	Employee Loan	 	 	 	 	 	 	 	 

Paul

Further to previous discussions, outlined below are the terms of your relocation bonus with élan
corporation, plc (the “Company”).

Subject to the terms set out below, the Company will provide you with a bonus in the amount of
£50,000 (the “Bonus”). The Bonus is conditional on you remaining in continuous employment with the
company for five years from the date of commencement of your employment with the Company (“the
Term”). If for any reason your employment by the company ceases or terminates (except in the case
of death or permanent disability) during the Term, part of the Bonus will be repayable as more
particularly set out in the table below.

	 	 	 	 	 
	Date of Cessation of Employment	 	Amount Repayable
	After end of year 1*
	 	£	40,000	 
	After end of year 2
	 	£	30,000	 
	After end of year 3
	 	£	20,000	 
	After end of year 4
	 	£	10,000	 
	After end of year 5
	 	£	0	 

 

			
	*	 	Determined as the annual anniversary of the date of commencement of your employment with the
Company (1 July 2001).

subject to the following terms and conditions:

	1.	 	Should you cease to be employed by the Company for any reason (other than redundancy or sale
of the company/Athlone entity), the amount repayable at the date of termination of employment,
shall be repayable on demand by you in full to the Company and shall be due and payable within
30 days of your last day of employment (“Final

 

 

	 	 	Repayment Date”). The Company may, in the exercise of its sole discretion, set off any amount
owed by you under this Loan against any termination, redundancy, salary or other final payment
arising by virtue of the cessation of your employment with the Company whether or not same falls
due for payment to you before the Final Repayment Date.

	2.	 	If you fail to repay the amount repayable as stipulated in Clause 1 above, interest at the
rate of 10% per annum will accrue on the amount repayable from the Final Repayment Date until
the date the Company receives the outstanding balance.

	3.	 	Any tax liability (e.g. income tax or benefit-in-kind tax) which may arise as a result of the
Bonus or the repayment thereof will be your sole responsibility.

	4.	 	You shall provide security to the Company for the repayment of the amount repayable in the
event of your employment ceasing or terminating during the Term in the form of

	 	a)	 	a mortgage or charge (the “Mortgage”) over your residence at Apartment 55, Silver Quay,
Athlone, County Westmeath, in form and substance satisfactory to the Company. (The Company
shall discharge all costs associated with the perfection and registration of such Mortgage.
You shall arrange adequate household insurance cover on the premises and have the Company
noted on the policy).

WARNING: Your home is at risk if you do not adhere to the terms and conditions of this
letter and the Company may enforce its security over your home in the event that you fail to
discharge your obligations hereunder, upon ceasing to be an employee of the Company.

If you wish to accept the terms of this Letter, please return the duplicate hereof properly signed
within the next ten (10) days. We will also require the following before payment of the Bonus:

	•	 	If applicable, written consent of your bank or building society to the creation of a mortgage over the premises and
details of the amount secured by that mortgage and confirmation from the bank or building society that the existing
mortgage will rank in priority only for that amount ;

	•	 	Evidence of insurance of the property with Elan’s interest noted thereon;

	•	 	Consent of spouse or co-habitee to the entry into by you of this Loan and the creation of a Mortgage over the premises
and a declaration satisfactory to our solicitors regarding your marital status ; and

	•	 	Certificate of title from your solicitor in relation to the title in the premises in Law Society approved format;

Furthermore, you will following request of the Company enter into and/or execute any and all such
additional documents, certificates notices in order to give effect to the creation of a Mortgage as
specified in Clause 4 above and the security herein referred to.

Should you have any further questions, please do not hesitate to contact either myself or Campbell.

Regards

 

 

Acceptance:

I have read the terms of this letter and confirm that I fully understand the terms thereof and
agree to be bound by them.

Signed by:

Paul Breen.

Date:

Witnessexv4wxcyx15y

 

Exhibit 4(c)(15)

ELAN CORPORATION, plc

CASH BONUS PLAN

2005 Plan Year

INTRODUCTION AND PURPOSE

The Elan Corporation, plc Cash Bonus Plan has been established to financially reward employees if
and when the Company achieves its strategic and operating goals. Cash Bonus Plan financial rewards
will be based on a combination of individual, team, group and company performance measurements.
This Cash Bonus Plan has also been established to provide an incentive for employees to remain in
employment at Elan through (and beyond) the date of payout of any cash bonus (as set forth below).

ELIGIBILITY TO PARTICIPATE IN THE PLAN

Full-time and part-time employees who are not participating in a formal Elan sales or incentive
plan are eligible to participate in the Cash Bonus Plan. At the Company’s discretion, employees
who are participating in a formal Elan sales or incentive plan may also be considered for a Cash
Bonus Plan award.

For the 2005 Plan Year, the effective date of the Cash Bonus Plan is January 1, 2005.
Employees employed by the Company on the effective date of the Cash Bonus Plan will be eligible for
full participation in the plan. Employees hired after January 1 (but prior to October 1) will be
eligible to participate in the plan on a pro-rated basis, based on the date of hire. Employees
hired on or after October 1 of the plan year will not be eligible to participate in the plan in
that year. In addition, a condition to earning the award is that an employee remains employed
through the pay date of the award, which for 2005 will be not later than March 15, 2006. An
employee who leaves employment prior to the pay date of the award will not have earned any bonus.

Change in Status During the Plan Period

	1.	 	Band Change: Employees’ annual target bonus amounts are linked in part to their band
levels in Elan’s Total Compensation program, and band-level targets help determine the overall
annual cash bonus pool. If employees change band levels during the course of the plan year,
the impact of their different band levels on any recommended Cash Bonus Plan award will be
considered proportionally to the time spent in each band.

	2.	 	Termination: Consistent with the eligibility rules, employees who terminate for any
reason prior to the pay date of the award will not be eligible for any award associated with
work performed during the preceding plan period.

	3.	 	Promotion to a Position Included in a Formal Sales or Incentive Plan: If an employee
assumes a position wherein they will participate in a formal Elan sales or incentive

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	 	 	plan, they may, at the Company’s discretion, be considered for a pro-rated Cash Bonus Plan
award relative to their service before assuming a non-eligible position.

	4.	 	Disability, Retirement, Leave of Absence: An employee whose status as an active
employee is changed during the plan period due to disability, retirement or leave of absence
may be considered for a prorated award.

	5.	 	Death: An employee whose status as an active employee is changed during the
plan period due to death may be considered for a full year award.

CASH BONUS POOL

Cash Bonus Awards are funded from an annual cash bonus pool. The size of the cash bonus pool is
influenced by a number of factors, including band-level targets and the company’s performance,
strategy and priorities.

AWARDS

Employees’ Cash Bonus Plan awards are generally expressed as a percentage of their annual,
regular-salary earnings. For the purposes of this Plan, annual, regular-salary earnings shall equal
an employee’s base salary earned during the plan year. Shift differential and overtime will also
be included in annual, regular-salary earnings as applicable per location regulations.

Bonus awards under the plan shall be made in the year following the conclusion of the plan year.
For the 2005 Plan Year, the pay date for any Cash Bonus Plan awards will be not later than March
15, 2006. Payments under the plan are subject to the normal withholding of taxes as required by
governing country and local regulations. For U.S.-based employees, payments will not be considered
in the calculation of benefits, with the exception of the Elan 401(k) Plan, from which
participating employees’ elected contribution percentage will be applied.

PERFORMANCE MEASUREMENTS

Cash Bonus Plan rewards will be based on a combination of individual, team, group and company
performance measurements and are determined at the sole discretion of the Company.

Company Performance Measurements

Elan measures its performance against a broad series of financial, operational and scientific
objectives and accomplishments and sets annual metrics relating to them.

Employee Performance Measurements

Each employee will work with their manager to establish objectives that support the overall company
objectives. At the conclusion of the plan year, the employee’s performance against the individual
objectives will be evaluated.

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Discretion and Differentiation

During the company’s annual performance management process, employees’ performances are assessed
relative to their individual and, when appropriate, team or group goals, all of which should align
with the company’s goals. Based on these assessments and a commitment to foster a differentiated
pay-for-performance culture, Elan senior management prepares initial Cash Bonus Award
recommendations for all employees eligible to participate in the plan.

At the conclusion of the plan year, the Leadership Development and Compensation Committee (LDCC) of
the Board of Directors, at its discretion and as part of its responsibilities, reviews the
company’s performance and determines the cash bonus pool for the plan year.

After the LDCC determines the funding of the cash bonus pool, the company’s executive management
team, led by the CEO, reconciles the cash bonus pool with the initial Cash Bonus Award
recommendations prepared by senior management.

Ultimately, any payouts of the Cash Bonus Plan are based on assessments of the company’s
performance as reflected by the LDCC’s funding of the cash bonus pool; individual performances as
reflected by the company’s performance management processes; and the Company’s strategy and
priorities. Each of these assessments is determined solely within the discretion of the Company.

PLAN PROVISIONS

Eligibility for participation in this plan does not guarantee employment, nor does participation at
one time guarantee ongoing participation, nor is their any guarantee that any plan metrics or
guidelines for one plan year will carry automatically to another plan year. Final participant
awards are subject to the approval of the CEO and the Leadership Development and Compensation
Committee (LDCC).

Participation in this plan should in no way be construed as a contract or promise of employment
and/or compensation. Employment is at will (depending upon location) and, therefore, employment
can terminate, with or without cause and with or without notice, at any time at the option of the
Company or employee.

The Company reserves the rights to adjust, amend, suspend, terminate or make exceptions to this
plan at any time.

The plan is administered by Elan Strategic Human Resources/Global Compensation, to whom any
questions should be addressed.

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