Letter Agreement Regarding Voluntary Compensation Reduction Between Genaera Corporation and Leanne M. Kelly
Genaera Corporation and Leanne M. Kelly have agreed to a voluntary reduction in Ms. Kelly's base salary by 10%, effective June 1, 2008, setting her new annual salary at $198,000. Additionally, Ms. Kelly has agreed 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 Ms. Kelly's acceptance and signature.
EXHIBIT 10.3
[GENAERA LETTERHEAD]
May 27, 2008
Leanne M. Kelly
c/o Genaera Corporation
5110 Campus Drive
Plymouth Meeting, PA
19462
Dear Leanne:
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 $16,500.00 per month ($198,000/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/ Leanne M. Kelly | Date: | May 28, 2008 | |||||
