Letter Agreement Regarding Voluntary Compensation Reduction and Incentive Forfeiture between Genaera Corporation and John L. Armstrong, Jr.
Genaera Corporation and John L. Armstrong, Jr. have agreed that, effective June 1, 2008, Mr. Armstrong will voluntarily reduce his base salary by 10% to $34,500 per month and forfeit any cash incentives, including salary increases and discretionary bonuses, for the year 2008. This agreement is part of the company's cash conservation efforts and is confirmed by both parties' signatures.
EXHIBIT 10.1
[GENAERA LETTERHEAD]
May 27, 2008
John L. Armstrong, Jr.
c/o Genaera Corporation
5110 Campus Drive
Plymouth Meeting, PA
19462
Dear Jack:
In conjunction with Genaera’s decision to implement initiatives designed to conserve cash into mid-2009, we have discussed and you have agreed, intending to be legally bound, to the following:
| • | A voluntary 10% reduction in base compensation. As such, effective June 1, 2008, your base salary will be $34,500.00 per month ($414,000/year); and |
| • | A voluntary forfeiture of cash incentives, including salary increases and discretionary bonus awards, for 2008. |
Please indicate your agreement with these changes by signing in the space provided below.
| Sincerely, | ||||||||
| /s/ R. Frank Ecock | ||||||||
| R. Frank Ecock | ||||||||
| Compensation Committee Chair | ||||||||
| RFE/jlb | ||||||||
| Accepted: | /s/ John L. Armstrong, Jr. | Date: | May 28, 2008 | |||||
