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:

b7 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

b7 Long Term Disability insurance

b7 You will be provided a company paid term life insurance plan equivalent to $1,000,000

b7 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

b7 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

b7 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, whic ...