Preview of our top selling Vice President (VP) Research and Development (R&D)
Adolor - Sr. Vice President, Research & Development Employment Letter
Exhibit 10.16
January 9, 2001
David Jackson, M.D.
6 Richmond Drive
Skillman, New Jersey 08558
Dear David:
On behalf of Adolor Corporation (the "Company"), I would like to extend an offer to you to join Adolor as a Sr. Vice President, Research & Development reporting directly to John Farrar, CEO and President. Reporting to you will be the Vice Presidents of Exploratory Research & Drug Discovery, Clinical Research & Development, Pre-Clinical Development, Regulatory Affairs, and the Director of Project Management.
In this position, your salary will be paid at an annual rate of $300,000 in accordance with the company's customary practices and will be subject to the normal payroll withholding taxes. Adolor's current pay practice is to make direct payroll deposits on alternate Fridays.
Benefits
As a full time employee, you will be eligible to participate in the company's employee benefit programs. These include:
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Blue Cross/Blue Shield's Personal Choice medical plan and dental insurance coverage through Guardian. As is the current practice in our industry, we ask that employees contribute a portion of the medical and dental insurance premiums
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Long Term Disability insurance
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You will be provided a company paid term life insurance plan equivalent to $1,000,000
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Following 30 days of continuous employment you will be eligible to join our 401(k) savings plan administered through Principal Financial Group which offers up to 22 funds from which to choose
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You will be entitled to take three weeks of vacation on an annual basis. Vacation accrues to you at the rate of one twelfth of your annual amount each month
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Benefits are subject to change from time-to-time at the discretion of the Company
Incentive Compensation
You will also be eligible to participate in the Company's incentive compensation plan, including a bonus plan and a special long-term incentive award. Bonuses under this plan are discretionary, are based on the achievement of individual and Company milestones and are subject to the approval of the Board of Directors. Your annual bonus target will be 30% of your base salary. Additionally, the company will offer you the right and option to purchase 20,000 shares of common stock, which will be Non-Qualified Stock Options, at year end 2001, if you are
successful in meeting your company objectives. The stock exercise price will be equal to the fair market value of the common stock on the date of your employment discounted $5.00 per share. These stock options will initiate vesting according to Adolor's standard vesting schedule (1/48th per month) as of the first day of your employment.
Stock Option Plan
Upon joining the Company, you will have the opportunity to participate in the Company's stock option plan. You will be offered an option to purchase 50,000 shares of Adolor's common stock at an exercise price equal to the fair market value of the common stock as of the date of your employment. These options are Incentive Stock Options and your right to purchase the stock (exercise a portion of the option) will vest in equal monthly amounts over a four year period commencing on the date you begin full time employment. The company will also offer you the option to purchase 30,000 additional shares of Common Stock which are Non-Qualified Stock Options. The vesting schedule is the same as listed above for the ISO grant. The exercise price for these Non-Qualified stock options will be equal to ...
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