Document:

Exhibit 10.147

 

	
  

  	
   

  	
   

  

 

October 12,
2007

 

W.
Bradford Middlekauff

c/o
Medarex, Inc.

707
State Road

Princeton,
NJ 08540

 

Dear
Brad:

 

This
letter agreement (the “Separation Letter”) is a follow-up to the notice of
non-renewal provided to you by Medarex, Inc. (the “Company”) on October 4,
2007 (the “Notice”).  It modifies the
Notice and sets forth our understanding regarding the terms of your continued
employment with the Company.

 

1.                                      Term. 
As stated in the Notice, the Company is not renewing the term of your employment
pursuant to the Employment Agreement dated January 5, 2004 (the “Agreement”)
beyond its expiration on January 4, 2008. 
As discussed, however, the Company and you have agreed to an extended
term of employment beyond such date from January 5, 2008 through April 30,
2008 or an earlier date as mutually agreed by you and the Company (the “Extended
Term”).  The terms of the Agreement will
not apply to the Extended Term, except as expressly stated herein.

 

2.                                      Duties. 
Between the date of this Separation Letter and the date that a new
executive assumes duties as  the Company’s
General Counsel and Secretary, but in no event later than January 4, 2008
(such earlier date or January 4, 2008, as applicable, the “Transition Date”),
you will continue to serve as the Company’s Senior Vice President, General
Counsel and Secretary subject to the terms of the Agreement.  In no event will the Transition Date be
earlier than November 15, 2007.  On
the Transition Date, you will step down as the Company’s General Counsel and
Secretary and commence service as the Company’s Senior Vice President,
Strategic Planning.  In this full-time
exempt position, you will be responsible for coordinating the planning process
resulting in a written strategic plan for the Company, transitioning your
duties and knowledge to your successor, and assisting on such other projects as
determined by the Company’s Chief Executive Officer or the Board of Directors.

 

3.                                      Other Terms and
Conditions.

 

a.             All other terms and
conditions of the Agreement will continue unchanged through its expiration on January 4,
2008, except the timing of the payments and benefits provided by Section 6.A.(1) thereof,
which shall be modified as set forth below. 
You acknowledge and agree that neither the changes set forth in
paragraph 2 above to the 

 

 

terms of the
Agreement and your employment nor any other provision in this Separation Letter
constitutes “good reason” for resignation under the Agreement.

 

b.             During
the Extended Term, the Company shall pay you a salary of $385,000 per annum, in
bi-weekly installments, and you shall be eligible to participate in such
standard employee benefit programs as the Company shall maintain from time to
time for the benefit of its executive officers, including vacation benefits.  In addition, your existing stock options
shall continue to vest and remain exercisable in accordance with the terms of
the applicable stock option plans and the grant documents thereunder.

 

4.                                      Separation from Service
Date.  The Company does not currently anticipate
extending the Extended Term beyond April 30, 2008, and so your service
with the Company in all capacities will terminate on April 30, 2008 (the “Separation
from Service Date”).  As a result, and
provided your service with the Company has not terminated prior to such date
for any other reason, your rights to compensation after the Separation from
Service Date will be governed by Section 6.A of the Agreement.  For the avoidance of doubt, you will continue
to receive the benefits enumerated in Sections 3.C.(3), 3.C.(4) and 3.C.(6) of
the Agreement (to the extent permitted by the Company’s insurance carriers) for
one year commencing with the Separation from Service Date.  Pursuant to Section 6.A.(1), the Company
will pay to you (or to the appropriate insurance carrier on your behalf), as
severance, your base salary and the premiums for those enumerated benefits set
forth in Section 6.A.(1) (to the extent permitted by the Company’s
insurance carriers) for one year following the Separation from Service Date.  Since the continuation of medical benefits
following your separation from service will occur during part of the period in
which the availability of such coverage is mandated by federal COBRA, you will
be provided with a COBRA election form, and provided you make a timely election
for such coverage, the Company will pay your COBRA premiums during the one year
continuation period in satisfaction of its obligations to provide continued
medical insurance for one year following the Separation from Service Date.  However, as also provided in the Agreement,
your rights to receive the base salary payments and the enumerated benefits
following the Separation from Service Date will be offset to the extent you
receive earned income and/or benefits from other employment during the one year
severance period.  Section 6.A.(1) of
the Agreement also provides for your continued ability to exercise options to
acquire Company common stock that are vested as of the Separation from Service
Date.  Notwithstanding any provisions of
the stock option plan or stock option agreement pursuant to which any options
were granted, your opportunity to exercise such options will continue until the
earlier of eighteen months following the Separation from Service Date or the
end of the respective original terms of the options.  Following the Separation from Service Date,
the Company shall have no other obligations to you in respect of compensation
and benefits.

 

5.                                      Section 409A
Provision.  In all cases, if you are a “specified
employee” of the Company for purposes of Section 409A of the Internal
Revenue Code at the time of your separation from service (as determined for
purposes of Section 409A) with the Company and if an exception under Section 409A
does not apply, any salary continuation payments and any payments by the
Company on your behalf for the life insurance benefits (other than the COBRA
benefits) that are otherwise scheduled to commence immediately after your 

 

2

 

separation from service will be delayed in their entirety by six months
from the date of your separation from service. 
On the first regularly scheduled payroll pay date following the six
month anniversary of the date of your separation from service, the Company will
pay you a lump sum payment equal to the salary continuation payments that you
would otherwise have received and the life insurance premium payments that
would have otherwise been paid on your behalf through such pay date, and the
balance of the salary and life insurance benefit payments to which you are
entitled under Section 6.A.(1) will be paid thereafter on the
original schedule, such that all payments will be made by the first anniversary
of the date of your separation from service. 
The Company believes such delay in payment will avoid the application of
adverse taxation to you under Section 409A.  However, the Company does not guarantee such
tax treatment and you are strongly encouraged to consult your own tax,
financial and legal advisors regarding the effects of this letter agreement on
your personal tax situation.

 

* * * * * * *

 

If
you have any questions regarding the foregoing or the operation of the
Agreement, please let me know.  This
letter agreement modifies the Agreement only as expressly set forth herein.

 

Sincerely,

 

 

	
  MEDAREX,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
  /s/
  Howard Pien

  	
   

  
	
   

  	
   

  	
  Howard
  Pien

  
	
   

  	
  President
  and Chief Executive Officer

  

 

 

Acknowledged
and Agreed this 15th day of October:

 

	
  /s/
  W. Bradford Middlekauff

  	
   

  
	
  W.
  Bradford Middlekauff

  

 

3Exhibit 10.2

 

THE ALLSTATE CORPORATION

 

ANNUAL COVERED EMPLOYEE INCENTIVE COMPENSATION
PLAN

 

As
Amended and Restated Effective November 13, 2007

 

 

1.             Purposes.

 

                                                The Plan’s purposes are to provide cash
incentive compensation to Covered Employees to achieve annual performance
goals, and to maximize the deductibility of such compensation under Section
162(m) of the Internal Revenue Code (the “Code”).

 

2.             Definitions.

 

                                                The following terms when used in the Plan
shall, for the purposes of the Plan, have the following meanings:

 

                                                a. 
“Award” means the cash amount payable to a Participant for a fiscal year
pursuant to the terms of the Plan.

 

                                                b. “Board” means the Board of Directors
of The Allstate Corporation.

 

                                                c. 
“Business Unit” means any operating unit of The Allstate Corporation or
any of its Subsidiaries, including but not limited to, the property and
casualty business, the life business, the investments business, or the
international business.

 

                                                d. 
“Committee” means two or more members of the Board who are “outside
directors” within the meaning of Section 162(m) of the Code and the regulations
thereunder.

 

                                                e. 
“Company” means The Allstate Corporation.

 

f.  “Covered Employee” means a Participant who is
a “Covered Employee” as defined in Section 162(m)(3) of the Code.

 

                g.  “Fiscal
Year” means the calendar year.

 

                                                h. 
“Participant” means an elected officer of the Company or a Subsidiary
who is a Covered Employee for the fiscal year or for any shorter period within
the fiscal year in which the Covered Employee is an employee of the Company or
of any Subsidiary.

 

                                                 i.  “Plan”
means the Annual Covered Employee Incentive Compensation Plan.

 

 

1

 

 

                                                j. 
“Subsidiary” means any corporation of which the Company owns directly or
indirectly a majority of the outstanding shares of voting stock.

 

3.             Administration of the
Plan.

 

                                                a. 
The Plan shall be administered by the Committee.  Members of the Committee shall be appointed
by the Board.

 

                                                b. 
The Committee shall have the authority to make all determinations it
deems necessary or advisable for the administration of the Plan, including the
selection of Participants, and, subject to the limitations set forth herein,
the determination of the timing and amount of Awards made to each Participant,
and the establishment of objective and measurable performance standards (“performance
goals”) for earning Awards.

 

                                                c. 
The Committee shall have the authority to exercise discretion to
decrease the amount of any Award otherwise payable under the Plan, but the
Committee shall have no authority to increase the amount of any such Award.

 

4.             Awards.

 

                                                a. 
Awards under the Plan shall consist of annual cash bonuses based solely
upon the degree of attainment of objective and measurable performance goals of
the Company and/or its Subsidiaries and/or Business Units over the fiscal year
or, if shorter, over the period within the fiscal year in which a Covered
Employee is an employee of the Company or of any Subsidiary.

 

                                                b. 
The Committee shall establish written performance goals within 90 days
after the beginning of the fiscal year (or, if the Covered Employee is not an
employee at the beginning of the fiscal year, within the first 25% of the
period within the fiscal year in which the Covered Employee is an employee),
and while the outcome of the performance goals is substantially uncertain.  Such performance goals shall be expressed in
terms of objective and measurable annual financial and/or operating criteria,
and may involve comparisons with respect to historical results of the Company
and its Subsidiaries and operating groups or Business Units thereof, as well as
comparisons with respect to peer group performance.  Performance goals shall be expressed using
one or more of the following measures of performance:  net income, operating income, return on
equity, earnings per share, return on assets, values of assets, revenues,
market share, prices of Company stock, or strategic business criteria
consisting of one or more Company, Subsidiary or Business Unit objectives based
on meeting specified revenue goals, market penetration goals, business
expansion goals, cost targets, customer retention goals, customer satisfaction
goals, or goals relating to acquisitions or divestitures.  The calculation is specifically defined at
the time the goal is set.  Each
performance goal must state, in terms of an objective formula or standard, the
Award payable to each Participant if the performance goal is attained.

 

2

 

 

                                                c. No Award for any Participant for any
fiscal year may exceed $5,500,000.

 

5.                                 Payment of Awards.

 

                                                a. 
Awards under the Plan shall be paid to Participants as soon as
practicable after the completion of the fiscal year audit and after the
Committee certifies that the performance goals and any other material terms
were in fact satisfied, but notwithstanding any other provision in this Plan to
the contrary, in no event before January 1 or after March 15 of the year
following the fiscal year in which the Award was earned.  Awards deferred at the Participant’s election
shall be paid in accordance with the terms and conditions of any deferred
compensation plan in which the Participant is eligible to participate.

 

                                                b. 
Awards shall be paid in cash, less required withholding, or for those
eligible may be deferred at the Participant’s election, subject to the terms
and conditions of any deferred compensation plan in which the Participant is
eligible to participate.

 

                                                c. 
Unless the Committee has taken action under subsection 3.c. hereof prior
to payment of an Award, each Participant selected by the Committee for a fiscal
year who remains actively employed by the Company or a Subsidiary at the end of
the fiscal year shall be entitled to receive a payment of an Award earned
pursuant to the terms of the Plan with respect to such year.

 

                                                d. 
If a Participant’s employment is terminated prior to completion of a
fiscal year for any reason other than as described in subsection 5.e. below,
the Participant will forfeit any Award otherwise payable for such fiscal year.

 

                                                e. 
If a Participant dies, retires or is disabled during the fiscal year,
and the Committee has not taken action under Section 3.c. hereof, the
Participant’s Award will be prorated based on the number of Participant’s half
months the Participant was eligible to participate during the fiscal year as an
elected officer of the Company or any of its Subsidiaries.  If a Participant dies before receipt of an
Award, the Award will be paid to the Participant’s estate.

 

                                                f. 
Prorated Awards will be paid at the same time as regular Awards.

 

6.             Miscellaneous.

 

                                                a. 
All amounts payable hereunder shall be payable only to the Participant
or his or her beneficiaries.  The rights
and interests of a Participant under the Plan may not be assigned, encumbered,
or transferred, voluntarily or involuntarily, other than by will or the laws of
descent and distribution.

 

                                                b. 
No individual shall have any claim or right to be a Participant in the
Plan at any time, and any individual’s participation in the Plan may be
terminated at any time with or without notice, cause or regard to past
practices.

 

3

 

 

                                                c. 
Neither the Plan nor any action hereunder shall confer on any person any
right to remain in the employ of the Company or any of its Subsidiaries or
shall affect an employee’s compensation not arising under the Plan.  Neither the adoption of the Plan nor its
operation shall in any way affect the right and power of the Company or any
Subsidiary to dismiss or discharge any employee at any time.

 

                                                d. 
The Company and its Subsidiaries shall have the right to deduct from any
Award, prior to payment, the amount of any taxes required to be withheld by any
federal, state or local government with respect to such payments.

 

                                                e. 
The Committee may rely upon any information supplied to it by any
officer of the Company or any Subsidiary or by any independent accountant for
the Company and may rely upon the advice of counsel in connection with the
administration of the Plan and shall be fully protected in relying upon such
information or advice.

 

                                                f. 
All expenses and costs in connection with the administration of the Plan
shall be borne by the Company.

 

                                                g. 
The Plan and any agreements entered into thereunder shall be governed by
and construed in accordance with the laws of the state of Illinois.

 

7.             Amendment or Termination
of the Plan.

 

                                                The Board may suspend, terminate, modify
or amend the Plan; provided, however, that any such action which
changes employees eligible to participate, the criteria set forth in subsection
4.b., or the maximum amount of an Award set forth in subsection 4.c., shall be
disclosed to and approved by the Company’s stockholders.  Stockholder approval must be given by a
majority of the votes cast by the holders of Company shares represented in
person or by proxy at the annual meeting next following the date of any such
change.

 

8.             Effective Date.

 

                                                The Plan was adopted by the Board of
Directors of the Company on March 9, 1999, and was approved by the Company’s
stockholders on May 18, 1999.  The Plan
was amended and restated by the Board on March 9, 2004, and the material terms
of the performance goals of the Plan, as amended, were submitted to the Company’s
stockholders for approval on May 18, 2004. 
The Plan was further amended and restated by the Board on November 13,
2007 to comply with Internal Revenue Code §409A.

 

 

4

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