EX-10.110






Exhibit 10.110




March 12, 2006



Mr. Thomas P. Rice


Chief Executive Officer


1010 Seminole Drive #308


Ft. Lauderdale, Florida 33304



Re: Employment Agreement



Dear Tom:



Reference is made to your employment agreement dated February 3, 2004 (the “Employment
Agreement”). We wish to confirm the following under the Employment Agreement (applying its defined
terms):




	1.	 	Severance Payments. The severance compensation to which you may become entitled
under Section 7 of the Employment Agreement is modified as follows: in the event your
employment is terminated pursuant to Section 6(b) or pursuant to Section 6(d), in each case on
or after a Change in Control, then, in addition to the amounts and benefits set forth in
Section 7 (i.e., those amounts and benefits that would be paid or provided upon a termination
of your employment by the Company without Cause under Section 6(b) of the Employment
Agreement), the Company shall pay you (i) a lump sum payment equal to six months of your Base
Compensation amount, and (ii) a lump sum payment equal to fifty-percent of the most recent
Bonus actually paid to you by the Company prior to such Change in Control (less applicable
withholding). These severance amounts would be paid to you within thirty (30) days after
written notice of a qualifying termination (subject to six months’ delay if and as required by
Section 409A (defined below) in order to avoid adverse tax consequences to you under Section
409A). These severance benefits are subject to your execution of the Release referenced in
Section 7 of the Employment Agreement.






	2.	 	Code Section 409A. We intend that the Employment Agreement and any other agreement
or arrangement with the Company (the Employment Agreement and such other agreements and
arrangements, together, the “Arrangements”) comply with Section 409A (“Section 409A”) of the
Internal Revenue Code of 1986, as amended (the “Code”). If any provision of any Arrangement
would result in the imposition on you of a penalty tax under Section 409A, or any related
guidance issued by the U.S. Treasury Department or the Internal Revenue Service, the Company
shall, after consulting with you, reform such Arrangement to avoid the imposition of such
penalty; provided that any such reformation shall to the maximum extent possible retain the
originally intended economic and tax benefits to you under such Arrangement, and the original
purpose of such Arrangement, without violating Section 409A or creating any unintended or
adverse tax consequences to you. Such reform may include, without limitation, imposition of a
six month delay in the payment of severance benefits if required under Section 409A due to the
fact that you are a “key employee” under Section 409A and the amounts payable to you under
such Arrangement are considered “deferred compensation” of a type requiring six-month delay
under Section 409A. The Company shall indemnify and hold you harmless, on an after-tax basis,
for any additional tax (including interest and penalties with respect thereto) imposed on you
as a result of Code Section 409A with regard to the payments and benefits hereunder.






	3.	 	280G Gross Up. The Company wishes to modify the “gross up” payments provided for
under Section 7 of the Employment Agreement. You will be paid “gross up” amounts in an
aggregate amount equal to (i) any excise taxes incurred by you as a result of any amounts or
benefits provided to you by the Company pursuant to the Employment Agreement, any other
Arrangement or otherwise that are considered to be “parachute payments” under Internal Revenue
Code Section 280G and the regulations promulgated thereunder, and (ii) any federal and state
and local income tax liability arising as a result of the payment of such excise tax (in each
case, including any interest and penalties imposed with respect to such taxes), payable within
sixty (60) days after such excise and income taxes are incurred (subject to six months’ delay
if and as required by Section 409A in order to avoid adverse consequences to you under Section
409A).






	4.	 	RSU Deferrals. Consistent with the foregoing, your ability to defer receipt of the
common stock to be received upon vesting of the RSU grant referenced in Section 4(C) of the
Employment Agreement is disallowed.





All other terms of the Employment Agreement remain in full force and effect.



Please indicate your agreement with the terms and conditions set forth in this Letter
Agreement by signing the enclosed copy of this Letter Agreement and returning it to me.



Very truly yours



ANDRX CORPORATION



By:     


Name: Robert I. Goldfarb


Title: Senior Vice President, General Counsel and Secretary



Accepted and Agreed:



     


Thomas P. Rice


Dated: March 11, 2006