Letter Agreement Regarding Compensation Adjustments Between Genaera Corporation and Michael J. Gast, M.D., Ph.D.

Summary

Genaera Corporation and Michael J. Gast, M.D., Ph.D. have agreed to a voluntary reduction in Dr. Gast's base salary by 10%, effective June 1, 2008, setting his new salary at $25,000 per month. Dr. Gast also agrees to 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 effective upon Dr. Gast's acceptance and signature.

EX-10.2 3 dex102.htm LETTER AGREEMENT BETWEEN THE COMPANY AND MICHAEL J. GAST, M.D., PH.D. Letter Agreement between the Company and Michael J. Gast, M.D., Ph.D.

EXHIBIT 10.2

[GENAERA LETTERHEAD]

May 27, 2008

Michael J. Gast, M.D., Ph.D.

c/o Genaera Corporation

5110 Campus Drive

Plymouth Meeting, PA

19462

Dear Michael:

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 $25,000.00 per month ($300,000/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/ John L. Armstrong, Jr.

        John L. Armstrong, Jr.
        President and Chief Executive Officer
JLA/jlb        
Accepted:  

/s/ Michael J. Gast

    Date:  

May 28, 2008