Document:

Employment Agreement/Robert Goldfarb

 

Exhibit 10.120

Confidential

September 16, 2005               

Mr. Robert Goldfarb

230 Golden Beach Drive

Golden Beach, FL 33160

Dear Rob:

     It is with great pleasure that I confirm your appointment to the position of Senior Vice
President, General Counsel and Secretary for Andrx Corporation effective September 16,2005. In
line with your promotion, the following changes have been made to the terms of your employment.

	1.	 	Salary: Your annual base salary has been increased to $336,600.
	 
	2.	 	Reporting To: Chief Executive Officer.
	 
	3.	 	Bonus Opportunity: In your new position, you will be eligible for a bonus
opportunity of up to 45% of earned salary in 2005. Consistent with our policy, your bonus
opportunity will be prorated for 2005.
	 
	4.	 	Equity Compensation: A request will be made to the Compensation Committee of the
Andrx Board of Directors to award you 10,000 additional restricted stock units for a total
award of 22,500 units in 2005.
	 
	5.	 	Grade Level: Your position is graded at band level 12 in the Company’s job band
structure.
	 
	6.	 	Termination Without Cause and Change of Control Provisions: In the event of
termination without Cause or Change of Control, this letter shall supersede the provisions
provided to you in the letter from Thomas Rice, Chief Executive Officer, dated January 5,
2005. In exchange for your agreement to and non-revocation of a Separation Agreement (the
“Agreement”), Andrx will provide you with the following provisions:

	 	A.	 	In the event that your employment is terminated by Andrx, without Cause, at
any time prior to December 31, 2007, you shall be entitled to 24 months of
compensation at your then current annual salary along with the continuation of
medical and dental benefits at the usual employee rate for a period of 12-months.
	 
	 	B.	 	In the event that during the 18-month period following the occurrence of a
Change of Control, Andrx or any successor entity terminates your employment without
Cause or you terminate your employment for

 

 

	 	 	 	Good Reason as defined herein, you shall be entitled to: (i) a lump sum payment of two
years of your then current annual salary, (ii) a lump sum payment of two years of your
target bonus at that time, (iii) the continuation of medical and dental benefits at
the usual employee rate for a period of 1-year, (iv) the accelerated vesting of all
outstanding equity awards, including but not limited to, stock options and restricted
stock awards, (v) an amount representing a gross up for any federal, state and local
income tax liability arising from any amounts payable pursuant to this agreement which
are considered to be a “parachute payment” under Internal Revenue Code 280G and the
regulations promulgated there under, and (vi) a 12-month career transition service.

     For the purpose of this agreement, “Change of Control” shall mean: (i) any ‘person’ (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act) is or becomes the
‘beneficial owner’ (as defined in Rule 13d-3 under the Securities Exchange Act), directly or
indirectly, of securities representing forty percent (40%) or more of the combined voting power of
the then outstanding securities, (ii) a merger, consolidation, share exchange, business
combination, joint venture or similar transaction, as a result of which the stockholders of the
Company prior to such transaction hold less than forty percent (40%) of the combined voting power
of the then outstanding securities after giving effect to such transaction, (iii) any sale, lease,
exchange, transfer or other disposition of all or substantially all of its assets of the Company,
or (iv) the Company has filed a Current Report on Form 8-K reporting under current Item 5.01 (or
other Item if subsequently renumbered or subsequent Item) that a change of control of the Company
has occurred.

     “Cause” means any or all of the following: (i) any willful, reckless, or grossly negligent
refusal or failure by you to perform the duties of your position; (ii) any willful, reckless, or
grossly negligent conduct by you with regard to the Company’s business(es), assets, or employees;
(iii) any conviction of you, or plea of guilty or no contest (nolo contendre) entered by you
regardless of whether adjudication is withheld — as to any violation of federal, state, or local
law, other than a minor traffic offense; (iv) any breach of any fiduciary duty owed to by you to
the Company; (v) any breach by you of any of the terms of any employment agreement, including but
not limited to any confidentiality and/or non-competition agreement or other restrictive covenant
agreement; (vi) any falsification or misrepresentation by you of any records of the Company; (vii)
any willful, reckless, or grossly negligent conduct by you which is injurious to or tends to bring
discredit upon the Company; or (viii) any material violation by you of the Company’s policies or
procedures, including those provided for in the Company’s Code of Conduct or Employee Handbook.

 

 

     “Good Reason” shall mean (i) any decrease in your salary without Cause, (ii) any material
diminution in your job responsibilities or title without Cause or (iii) reassignment of or
requirement for work in a location greater than 25 miles from your current work location.

     Rob, I would like to take this opportunity to congratulate you on your promotion and to wish
you ongoing success in your new role. To signify your acceptance of these changes to the terms of
your employment, please sign both copies of this letter agreement. Please return one to me as soon
as possible, and retain the other for your file.

	 	 	 	 	 
	 

	 	 	 	Sincerely,
	 
	 	 	 	 
	 

	 	 	 	Ian J. Watkins
	 

	 	 	 	Senior Vice President
	 

	 	 	 	Human Resources
	 
	 	 	 	 
	AGREED TO AND ACCEPTED ON	 	 
	THIS 8th DAY OF NOVEMBER, 2005	 	 
	 
	 	 	 	 
	/s/ Robert I. Goldfarb
	 	 	 	 
	 

	 	 	 	 

 

 

Confidential

January 5, 2005

Mr. Robert Goldfarb

230 Golden Beach Drive

Golden Beach, FL 33160

Dear Rob:

I am pleased to advise you that the Board of Directors (the “Board”) of Andrx Corporation (“Andrx’)
has approved certain changes to the terms of your employment. These changes are subject to your
continuing cooperation, commitment to and support of the strategic objectives set by the Board and
myself, and are intended to both provide you with additional comfort in connection with those
determinations, and to assure the Board and I of your cooperation, commitment and support in
implementing those objectives:

	 	•	 	In the event that your employment is terminated by Andrx at any time prior to
December 31, 2007, without “Cause,” you shall be entitled to 12 months of
compensation at your then current annual salary.
	 
	 	•	 	In the event that, during the 24 month period after a Change of Control of Andrx,
your employment is terminated by Andrx or any successor entity without Cause or you
voluntarily terminate your employment for Good Reason, you shall be entitled to:

	 	(i)	 	12 months of your then current annual salary
	 
	 	(ii)	 	accelerated vesting of all outstanding stock options and
restricted stock unit awards

     For purposes of this letter:

     “Change of Control” shall mean: (i) any ‘person’ (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) is or becomes the ‘beneficial owner’ (as defined in Rule 13(d) under the
Exchange Act, directly or indirectly, of securities representing forty percent (40%) or more of the
combined voting power of the then outstanding securities, (ii) a merger, consolidation, share
exchange, business combination, joint venture or similar transaction, as a result of which the
stockholders of the Company prior to such transaction hold less than forty percent (40%) of the
combined voting power of the then outstanding securities after giving effect to such transaction,
(iii) any sale, lease, exchange, transfer or other disposition of all or substantially all of the
assets of Company, or (iv) where the Company has filed a Current Report on Form 8-K reporting under

 

 

current Item 5.01 (or other Item if subsequently renumbered or subsequent Item) that a change of
control of the Company has occurred;

     “Cause” shall mean (1) the commission of a criminal act by you, gross negligence, gross
malfeasance, gross misfeasance, or gross misconduct by you in the performance of your job, (2)
actions by you which cause Andrx’s reputation or image to materially suffer, (3) a breach by you of
your Confidentiality and Non-Competition agreement, and (4) other events or matters relating to
your job performance or conduct that would ordinarily cause an employer to seriously consider the
termination of an employee’s employment; and

     “Good Reason” shall mean any decrease in your salary without “Cause” or material diminution in
responsibilities or title without “Cause” or the reassignment to an office 25 miles or more from
your current office location.

     The changes reflected by this letter are not being offered to all Andrx employees. As such,
it is extremely important that you keep the existence and terms of this letter, and the strategic
matters we are preparing to undertake, extremely confidential.

     Rob, I would like to take this opportunity to thank you for your significant contribution to
Andrx. Please acknowledge your understanding of the foregoing by signing and returning a copy of
this letter to me as soon as possible.

	 	 	 	 	 
	 

	 	 	 	Sincerely,
	 
	 	 	 	 
	 

	 	 	 	Thomas P. Rice
	 

	 	 	 	Chief Executive Officer
	 
	 	 	 	 
	Agreed to and Accepted on	 	 
	this 22nd day of March, 2005	 	 
	 
	 	 	 	 
	/s/ Robert I. GoldfarbEmployment Agreement/Ian Watkins

 

EXHIBIT 10.121

January 10, 2005

Mr. Ian J. Watkins

399 Mallard Road

Weston, FL 33327

Dear Ian:

     I am pleased to advise you that the Compensation Committee of the Board of Directors (the
“Board”) of Andrx Corporation (“Andrx’) has approved certain changes to the terms of your
employment, as detailed in Andrx’s letter of April 1, 2003 that you countersigned (the “Original
Employment Letter”).

     These changes are subject to your continuing cooperation, commitment to and support of the
strategic objectives set by the Board and myself, and are intended to both provide you with
additional comfort in connection with those determinations, and to assure the Board and I of your
cooperation, commitment and support in implementing those determinations. Should your cooperation,
commitment and support towards those decisions be deficient, then in accordance with our other
discussions and agreement, the terms of the Original Employment Letter shall only be modified to
provide you with the amounts set forth in Paragraph 1 below, whether or not a “change of control”
(as defined herein), occurred.

     Subject to this caveat, the following changes shall apply to the terms of your employment:

     1. In the event Andrx terminates your employment without “cause” (as defined herein), you
shall be entitled to:

	 	(i)	 	A lump sum payment of two years of your then current annual salary,
	 
	 	(ii)	 	The continuation of medical and dental benefits, at the usual employee rate,
for a period of one year,
	 
	 	(i)	 	Accelerated vesting of that portion of the 30,000 share option grant you
received in connection with your Original Employment Letter that would have vested
over the next 12-months,
	 
	 	(ii)	 	Accelerated vesting of an additional 12-month portion of the restricted stock
units (“RSU”) granted to you, pursuant to the terms of your RSU Agreement and Original
Employment Letter with Andrx; and
	 
	 	(iii)	 	A 12-month career transition service

     2. In the event that, during the 18-month period following the occurrence of a “change of
control”, Andrx or any successor entity terminates your employment

 

 

Mr. Ian J. Watkins

January 10, 2005

Page 2

without “cause” or you terminate your employment for “good reason” (as defined herein), you shall
be entitled to:

	 	(i)	 	A lump sum payment of two years of your then current annual
salary,
	 
	 	(ii) 	 	A lump sum payment of two years of your target bonus at that time,
	 
	 	(iii)	 	The continuation of medical and dental benefits at the usual employee rate,
for a period of one year,
	 
	 	(iv)	 	Accelerated vesting of all outstanding stock options and RSU awards, and
	 
	 	(v)	 	An amount representing a gross-up of any federal and state and local income
tax liability arising from any amounts payable pursuant to this Agreement which are
considered to be a “parachute payment” under Internal Revenue Code §280G and the
regulations promulgated hereunder; and
	 
	 	(vi)	 	A 12-month career transition service.

     3. For the purpose of this letter:

          “Change of Control” shall mean: (i) any ‘person’ (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act) is or becomes the ‘beneficial owner’ (as defined in Rule
13d-3 under the Securities Exchange Act), directly or indirectly, of securities representing forty
percent (40%) or more of the combined voting power of the then outstanding securities, (ii) a
merger, consolidation, share exchange, business combination, joint venture or similar transaction,
as a result of which the stockholders of the Company prior to such transaction hold less than forty
percent (40%) of the combined voting power of the then outstanding securities after giving effect
to such transaction, (iii) any sale, lease, exchange, transfer or other disposition of all or
substantially all of its assets of the Company, or (iv) the Company has filed a Current Report on
Form 8-K reporting under current Item 5.01 (or other Item if subsequently renumbered or subsequent
Item) that a change of control of the Company has occurred.

          “Cause” shall mean (i) the commission of a criminal act by you, gross negligence, gross
malfeasance, gross misfeasance, or gross misconduct by you in the performance of your job, (ii)
actions by you which cause Andrx’s reputation or image to materially suffer, (iii) a breach by you
of your Confidentiality and Non-Competition agreement, and (iv) other events or matters relating to
your job performance or conduct that would ordinarily cause an employer to seriously consider the
termination of an employee’s employment.

          “Good reason” shall mean (i) any decrease in your salary without cause, (ii) any material
diminution in your job responsibilities or title without cause or (iii) you are reassigned to a
work location greater than 25 miles from your current work location.

 

 

Mr. Ian J. Watkins

January 10, 2005

Page 3

     The Board and I would like to take this opportunity to thank you for your significant
contribution to Andrx. Please acknowledge your understanding of the foregoing by signing and
returning a copy of this letter to me as soon as possible.

Sincerely,

Thomas P. Rice

Chief Executive Officer

AGREED TO AND ACCEPTED ON

THIS 13th DAY OF JANUARY 2005

/s/ Ian J. Watkins

 

 

April 1, 2003

REVISED

Mr. Ian J. Watkins

19 Church Close

Ashington

West Sussex

RH20 3DL

England

Dear Mr. Watkins:

     I am very pleased to offer you a position at Andrx (“Andrx”), upon the
following terms:

	 	 	 	 	 	 	 
	 	(1	)	 	Position:
	 	Senior Vice President, Human Resources

	 	 	 	 	 	 	 

	 	(2	)	 	Reporting to:
	 	Richard J. Lane, Chief Executive Officer

	 	 	 	 	 	 	 

	 	(3	)	 	Salary:
	 	$310,000 annually

	 	 	 	 	 	 	 

	 	(4	)	 	Stock Options:
	 	Non-qualified stock options to purchase
30,000 shares of Andrx’s common stock.
Although the actual stock option grant,
vesting schedule, and exercise price of
these options will be determined by the
Andrx Board at their next meeting, we
anticipate that these options will vest
annually over a four year period of time.
Additional options will likely be granted.
Your target grant will be 30,000 shares
annually.

	 	 	 	 	 	 	 

	 	(5	)	 	Restricted Stock:
	 	In accordance with our Restricted Stock
Program, we will recommend to the Andrx
Board that you be granted 10,000 shares of
Andrx’s common stock. Although the actual
grant of restricted shares must be approved
by the Board, it is anticipated that the
shares will vest annually over a five year
period.

	 	 	 	 	 	 	 

	 	(6	)	 	Target Bonus:
	 	You will be eligible for a target bonus of
45% with a potential maximum of 67 1/2% of
salary. As this bonus program has only just
been implemented at Andrx, achievement of
this bonus in 2003 will be dependent on 2003
Andrx revenues and pretax earnings. In 2004,
we plan to base bonuses on a mixture of
Company and individual performance metrics.

	 	 	 	 	 	 	 

	 	(7	)	 	Car Allowance:
	 	Andrx will pay you a car allowance of $600
per month.

	 	 	 	 	 	 	 

	 	(8	)	 	Termination:
	 	In the event that your employment is
terminated by Andrx at any time prior to
December 31, 2004, without “cause,” you
shall be entitled to (i) at least one year’s
compensation at your then current annual
salary together with the prior year’s bonus
(or the Target Bonus if termination occurred
during your first year of employment) and
(ii) the immediate vesting of that portion
of the foregoing Andrx stock options and
restricted stock awards that would have
vested in the next 12 months.

 

 

Mr. Ian J. Watkins

March 12, 2003

Page 2

	 	 	 	 	 	 	 
	 	 	 	 	 	 	During the one year period after a “change
of control,” in the event that your
employment is terminated by Andrx or any
successor entity without “cause” or you
voluntarily terminate your employment for
“good reason,” you shall be entitled to (i)
at least three year’s compensation at your
then current annual salary together with
three times the prior year’s bonus (or the
Target Bonus if termination occurred during
your first year of employment) (ii) and the
immediate vesting of that portion of the
foregoing Andrx stock options and restricted
stock awards that would have vested in the
next 36 months.

	 	 	 	 	 	 	 

	 	 	 	 	 	 	For the foregoing purposes, (i) a change of
control shall be deemed to have occurred if
there occurs a “change of control” as
defined in Rule 12 b-2 promulgated under the
Securities Exchange Act of 1934; (ii)
“cause” shall mean (a) the commission of a
criminal act by you, gross negligence, gross
malfeasance, gross misfeasance, or gross
misconduct by you in the performance of your
job, (b) actions by you which cause Andrx`s
reputation or image to materially suffer,
(c) a breach by you of your Confidentiality
and Non-Competition agreement, and (d) other
events or matters relating to your job
performance or conduct that would ordinarily
cause an employer to seriously consider the
termination of an employee’s employment;
(iii) “good reason” shall mean any decrease
in your salary without “cause” or any
material change in your job responsibilities
without “cause.”

	 	 	 	 	 	 	 

	 	(9	)	 	Relocation:
	 	Upon presentation of appropriate
substantiating documentation, Andrx shall
reimburse you for relocation expenses and
temporary living expenses, (including any
tax gross ups), which you reasonably incur
while (i) maintaining a temporary residence
after you report for work for up to four
months, (ii) closing costs related to the
sale of your home in New York or the UK and
the purchase of a home in Florida, (iii)
moving expenses from New York or UK and (iv)
“gross up” of any amounts paid to you for
relocation which are taxable to you. In the
event you resign without good reason before
completing one full year of employment by
Andrx, you shall be required to repay 100%
of the reimbursed relocation expenses to
Andrx. Such amount shall be reduced to
66.66% if you thereafter resign before
completing two full years of employment and
shall be further reduced to 33.33% if you
thereafter resign before completing three
full years of employment. Although you are
free to choose any moving company you like,
we suggest you ask Allied Van Lines, with
whom we have a corporate discount program,
for a quote.

 

 

Mr. Ian J. Watkins

March 12, 2003

Page 3

	 	 	 	 	 	 	 
	 	(10	)	 	Benefits:
	 	Andrx maintains a 401(k) plan and makes a
matching contribution of 50% of the amount
you contribute to the plan, up to 5% of your
annual compensation and applicable laws.
Andrx also maintains group medical (HMO or
POS), dental and life insurance plans for
all of its full-time employees and their
families. As a member of our professional
team, you and your family will be entitled
to immediately participate (beginning the
first day of the month after you begin work)
in our medical insurance plan. These and
other benefits you will receive as an Andrx
employee are described in the enclosed
materials.

	 	 	 	 	 	 	 

	 	(11	)	 	Other Benefits:
	 	The Company will provide you with annual
membership in the local country club.
However, you will be responsible for
non-business related expenses which you
occur.

	 	 	 	 	 	 	 

	 	(12	)	 	Vacation:
	 	You will be entitled to four weeks of
vacation per year

	 	 	 	 	 	 	 

	 	(13	)	 	Report Date:
	 	As soon as possible

     The Company does not have a tax/ financial planning program for senior
executives at this time. However, we are most interested in establishing such a
benefit. Should you agree to join us, we would ask you to develop such a program
and other executive benefit programs for the Company. While we cannot guarantee
the Board will approve your suggestions, we know they are amenable to discussing
these types of programs.

     This offer of employment assumes that your employment by Andrx and the
performance of your duties will not violate the terms of any non-compete or
other agreements to which you are a party and such assumption is a condition of
your employment. Moreover, as your position will give you access to information
which Andrx keeps confidential, your execution of our standard Confidentiality
and Non-Competition Agreement will also be a condition of your employment.

     I am sure that you will find the environment here at Andrx both
stimulating and rewarding and we look forward to your joining us. Should you
have any questions, please feel free to call Ron Norris or me.

 

 

Mr. Ian J. Watkins

March 12, 2003

Page 4

     Please signify your acceptance of this offer by signing a copy of this
letter where indicated below and returning that copy to me by either fax (at
954-585-1888) or by mail.

Sincerely,

Richard J. Lane

Chief Executive Officer

AGREED TO AND ACCEPTED ON

THIS  _____ DAY OF ________________, 2003

 

Ian J. Watkins

CC: Ron Norris

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