BIOGEN IDEC INC.
EX-10.49 LETTER REGARDING EMPLOYEMENT ARRANGEMENT OF PAUL J. CLANCY
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<TYPE>EX-10.49
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<FILENAME>b68103biexv10w49.htm
<DESCRIPTION>EX-10.49 LETTER REGARDING EMPLOYEMENT ARRANGEMENT OF PAUL J. CLANCY
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 10.49
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    <TD align="left" valign="top">Paul J. Clancy
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    <TD>&nbsp;</TD>
    <TD align="right" valign="top">August&nbsp;17, 2007</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Paul:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I am pleased to confirm your promotion to Executive Vice President and Chief Financial Officer.
This position will report to James C. Mullen, Chief Executive Officer, and will be based at our
Cambridge, MA facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The specific terms of your promotion are as follows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Promotion Date</B>: The effective date of your promotion is August&nbsp;13, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Base Salary: </B>Effective with the date of promotion, your biweekly salary will be $17,307.70, which
is equivalent to an annual salary of $450,000.20.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Short-term-incentive: </B>Your target bonus level under Biogen Idec&#146;s Annual Bonus Plan will be 50% of
your annualized base salary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Long-term Incentive: </B>You will be granted 8,000 restricted stock units (RSUs). Assuming your
continued employment, the RSUs will vest and convert into shares of Biogen Idec common stock at the
rate of one-third per year for three years, starting on the first anniversary of your grant date.
The grant date will be the first trading day of the month following your effective date of
promotion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You will also be granted an option to purchase 20,000 shares of the common stock of Biogen Idec at
an exercise price equal to the closing price of Biogen Idec stock as reported on the NASDAQ
National Market on the grant date. The grant date will be the first trading day of the month
following your effective date of promotion. The option will have a ten-year term and, assuming
your continued employment, will vest equally over a four-year period at the rate of 25% per year,
starting on the first anniversary of your grant date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The actual terms of your RSU and stock option grants will be communicated to you in a separate
Notice of Grant. You are considered a &#147;designated employee&#148;, as defined in the 2005 Omnibus Equity
Plan. Please read the 2005 Omnibus Equity Plan Document for information on the implications of
being a designated employee under the Plan, as well as any applicable terms and conditions of your
grants under this program. The 2005 Omnibus Equity Plan Document can be found on iNet.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Stock Trading Plan: </B>As an Executive Vice President of the Company, you are required to enter into
a 10b5-1 stock trading plan. A 10b5-1 plan enables you to buy and sell Biogen Idec securities
under pre-specified conditions (e.g., when the price of Biogen Idec stock reaches a certain price),
and allows you to sell outside of quarterly &#147;trading windows&#148; whether or not you are in possession
of material, nonpublic information. More information on 10b5-1 trading plans can be found on iNet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional Executive Benefits</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Vacation: </B>Based on your current years of service, you are entitled to 25 vacation days per
year, accrued on a per pay period basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Supplemental Savings Plan: </B>You are entitled to participate in Biogen Idec&#146;s Supplemental
Savings Plan (SSP). This plan allows you to make pre-tax deferrals of up to 80% of your base
salary and up
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Biogen
Idec 14 Cambridge Center Cambridge, MA 02142 Phone 617-679-2000 www.biogenidec.com
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Page 2 of 4</div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">to 100% of your Annual Bonus payment. Your contributions to this plan may be
limited by your contributions towards other plans (e.g., 401k, ESPP, medical, etc.).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Life Insurance: </B>You will be provided life insurance coverage equal to three times your annual
base salary, subject to meeting the medical standards stated in the group term life insurance
policy for U.S. employees. Biogen Idec pays the premium for this insurance. The IRS requires
employers to impute the value of company-paid life insurance for coverage over $50,000. This
imputed income will be displayed on your pay stub.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Severance: </B>In the event Biogen Idec terminates your employment other than For Cause (as defined
in the executive severance document attached to this letter), you will receive a severance
benefit of at least nine months of your annual cash compensation and coverage under Biogen
Idec&#146;s group medical and dental insurance plans. Your severance benefits are explained in
greater detail in the attached executive severance document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>IRC 280G Excise Taxes: </B>In the event of a Change in Control (as defined in Section&nbsp;280g of the
Internal Revenue Code), compensation paid to you may trigger an excise tax (in addition to
ordinary income taxes). Biogen Idec will reimburse you for any excise taxes you incur as a
result of a Change in Control. This includes gains from the exercise of stock options and
vesting of restricted stock and/or units, as well as the reimbursement for such penalties<I>. </I>In
addition, Biogen Idec will reimburse you for income taxes imposed on the excise taxes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Tax Preparation, Financial and Estate Planning: </B>You are entitled to reimbursement of up to
$7,500 per calendar year (January 1 &#151; December&nbsp;31) for expenses incurred due to tax preparation,
financial and/or estate planning services, as well as the purchase of tax preparation and/or
financial planning software. Eligible services provided by qualified providers, accompanied by
copies of receipts/invoices, will be reimbursed. Such reimbursements are considered taxable
income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Air Travel Upgrade: </B>You are entitled to fly first class on all U.S. transcontinental flights
(e.g., Boston to San Diego). Overseas flights and other domestic flights are subject to the
same policy as all other employees.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Once you have accepted this offer, please sign and return a copy of this letter to me.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I am confident you will continue to contribute to Biogen Idec&#146;s success and wish you the best of
luck in your new position.
</DIV>


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    <TD colspan="3" align="left">Sincerely,<BR>
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    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ James C. Mullen
&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD colspan="3" align="left">James C. Mullen&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD colspan="3" align="left">Chief Executive Officer and President&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD colspan="5">&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">cc: Craig E. Schneier, Ph.D.

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    <TD valign="top" align="left" style="border-bottom: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">/s/ Paul J. Clancy
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">8/21/07</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Paul J. Clancy
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Page 3 of 4</div>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Severance &#151; Executive Vice President</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As an Executive Vice President, you are entitled to severance benefits in the event your employment
is terminated by Biogen Idec other than For Cause or for reason of death or Disability (as these
terms are defined in the Biogen Idec 2005 Omnibus Equity Plan). Your severance benefits are
comprised of (i)&nbsp;a lump sum payment (as calculated below), (ii)&nbsp;upon completion of the appropriate
forms, continuation of your participation in Biogen Idec&#146;s group medical and dental insurance
plans, to the same extent permitted by COBRA and to the same extent such insurance is then provided
to regular employees of Biogen Idec, including payment by you of a portion of the insurance
premiums (i.e., the &#147;Insurance Benefit&#148;), and (iii)&nbsp;the reasonable cost of up to nine months of
executive-level outplacement services from a recognized provider of such services, at the expense
of Biogen Idec (upon receipt of appropriate documentation).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The lump sum severance payment is calculated as follows:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;9 &#043; (A x 2.5)&#093; x B = lump sum payment</B>
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">where:</TD>
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    <TD> A is the number of full years of service with Biogen Idec (but A x 2.5 may not exceed 12), and
B is the monthly equivalent of your target annual cash compensation at the time of your termination (i.e., one-twelfth
of the sum of your then annual base salary plus target annual bonus).</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The lump sum payment (less applicable taxes and other mandatory deductions as required by law) will
be paid to you following the later<SUP style="font-size: 85%; vertical-align: text-top">1</SUP> of (i)&nbsp;the termination of your employment with
Biogen Idec and (ii)&nbsp;the effective date of a signed general release in favor of Biogen Idec (see
below). The Insurance Benefit will continue until the earlier of (i)&nbsp;the date you become eligible
to participate in the medical and dental insurance plan of another employer or (ii)&nbsp;the date that
is &#091;9 &#043; (A x 2.5)&#093; months, but not more than 21&nbsp;months, following the termination of your
employment with Biogen Idec (the &#147;Insurance Benefit Period&#148;). You will have the right, at your own
expense, to continue your participation in Biogen Idec&#146;s group medical and dental insurance plans
at the expiration of the Insurance Benefit Period, pursuant to the provisions of COBRA, but only
for an 18-month period that will be deemed to have commenced at the start of your severance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following are examples of how the lump sum payment and Insurance Benefit Period are determined:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>If your employment with Biogen Idec is terminated after ten months of employment, you will
receive a lump sum payment equal to nine months of your target annual cash compensation and
continue to participate in Biogen Idec&#146;s group medical and dental plans for nine months, unless
you become eligible to participate in another employer&#146;s medical and dental plans before that
date. COBRA continuation of medical and dental benefits is available, at your own expense, for
an additional nine months after this nine-month Insurance Benefit Period.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>If your employment with Biogen Idec is terminated after five years, you will receive a lump sum
payment equal to twenty-one months &#091;9&#043;12&#093; of your target cash annual compensation and continue
to participate in Biogen Idec&#146;s group medical and dental plans for twenty-one months, unless you
become eligible to participate in another employer&#146;s medical and dental plans before that date.</I>
</DIV>


<DIV align="left">
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    <TD>&nbsp;</TD>
    <TD>If you are a &#147;specified employee&#148; under Section&nbsp;409A of
the Internal Revenue Code of 1986 (which includes certain officers of public
companies, including Biogen Idec), that portion of your severance payment that
is subject to (and not otherwise exempt from) Section&nbsp;409A will be paid in a
lump sum six months after the date of your termination of employment.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If at any time within two years following a Corporate Transaction or Corporate Change in Control
(as these terms are defined in Biogen Idec&#146;s 2005 Omnibus Equity Plan) your employment is
terminated by Biogen Idec or the succeeding corporate entity, other than For Cause or for reason of
death or Disability (as these terms are defined in Biogen Idec&#146;s 2005 Omnibus Equity Plan), or you
experience an Involuntary Employment Action (defined below) and as a result you terminate your
employment with Biogen Idec or the succeeding corporate entity, then, regardless of the length of
your service with Biogen Idec and the succeeding corporate entity, and in lieu of the formula set
forth above, you will receive a lump sum payment<SUP style="font-size: 85%; vertical-align: text-top">2</SUP> equivalent to twenty-four months of
your then-current target annual cash compensation. In addition, you will be entitled to continue
participating in Biogen Idec&#146;s group medical and dental plans for twenty-four months, unless you
become eligible to participate in another employer&#146;s medical and dental plans before that date.
The term &#147;Involuntary Employment Action&#148; shall have the definition set forth in Biogen Idec&#146;s 2005
Omnibus Equity Plan, provided, however, that for purposes hereof the term &#147;Corporate Transaction&#148;
used in such definition shall be deemed to mean either a Corporate Transaction or Change in
Control, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment and provision of the severance benefits described above are conditioned on your execution
of a general release in favor of Biogen Idec, in form and substance reasonably acceptable to Biogen
Idec, with respect to any and all claims relating to your employment and the termination of your
employment with Biogen Idec. If you retire or voluntarily terminate your employment with Biogen
Idec, or Biogen Idec terminates your employment For Cause or for reason of death or Disability (as
these terms are defined in Biogen Idec&#146;s 2005 Omnibus Equity Plan), or you do not provide the
requisite general release, you will not be eligible to receive the severance benefits described
above.
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    <TD>If you are a &#147;specified employee&#148; under Section&nbsp;409A of
the Internal Revenue Code of 1986 (which includes certain officers of public
companies, including Biogen Idec), that portion of your severance payment that
is subject to (and not otherwise exempt from) Section&nbsp;409A will be paid in a
lump sum six months after the date of your termination of employment.</TD>
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