Annex 2
British Biotech
Dr Peter Lewis
Director of Research & Development
British Biotech plc
Watlington Road
Oxford OX4 5LY
Dear Peter
I am pleased to tell you that the Remuneration
Committee has approved a bonus payment to you in respect of the
1996-97 financial year of £ , this being 75 per
cent of the maximum of 40 per cent of base salary. As you know,
half of this will be paid in the form of deferred shares and half
in cash or deferred shares at your option. Tony Weir is writing
to you separately to provide you with the full details of these
arrangements. For the moment let me simply confirm that if you
leave the company's employ prior to the end of the deferral period,
you will receive back the full cash value of that part of the
bonus allocated to deferred shares.
With regard to arrangements for 1997-98, the
Remuneration Committee approved a five per cent increase in base
salary to £ to be implemented from 1 May 1997.
As you know, the Committee has agreed other appropriate arrangements
for the coming financial year in our exchange of letters of 23
and 24 April 1997. Although you will not participate formally
in the 1997-98 management bonus scheme, I would like you to consider
the special incentive arrangements we have set in place as a substantially
enhanced bonus potential. With this in mind it is important that
we define a set of personal objectives for you this year which
encompass the key goals of R & D. I will arrange a separate
meeting to discuss this in the near future.
Finally, I would like to say how pleased I am
that we have been able to map out with harmony a clear plan for
the future. You have made a major contribution to the company'
growth and success over the last five years and given us a firm
base for the future. You may not see it with such a rosy glow
but I am serious when I say that we could not have achieved our
success today without you.
I rely on your continued leadership during the
transition period. I would like us to work together with confidence
to manage British Biotech's further development over the coming
months.
With kind regards.
Yours sincerely
Keith McCullagh
6 May 1997
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