Document:

Offer Letter between Catalent Pharma Solutions,Inc. and Matthew Walsh

 Exhibit 10.1 
  

					
	 

	 	 Catalent Pharma Solutions
 14 Schoolhouse
Road
 Somerset, NJ 08873
  
 T (732) 537-6341
 F (732) 537-5996
 www.catalent.com
	 	

 February 29, 2008 
 Mr. Matt Walsh 
 [Home Address] 
 Re: Severance
Benefits  
 Dear Matt: 
 The purpose of this letter is to
memorialize the severance payments and benefits to which you will be entitled if your employment with Catalent Pharma Solutions, Inc. (the “Company”) ceases under specified circumstances. 
 Specifically, if either (i) you are involuntarily terminated by the Company for a reason other than Cause (as defined below), death or disability, or (ii) you
resign from your position with the Company for Good Reason (as defined below), you will receive the following severance payments and benefits on account of such termination: 
  

	 	(a)	A severance payment equal to one (1) times the sum of your annual base salary and target bonus, payable in equal installments over the one (1) year period following the
date of your termination of employment (the “Severance Period”), consistent with the normal payroll practices of the Company; and 

  

	 	(b)	You will continue to receive the group health benefits coverage in effect on your termination date (or generally comparable coverage) for yourself and, where applicable, your spouse
and eligible dependents (to the extent they were receiving such coverage as of the termination date), at the same premium rates as may be charged from time to time for employees of the Company generally, which coverage shall be provided until the
earlier of (x) the expiration of the Severance Period and (y) the date you are or become eligible for coverage under group health plan(s) of any other employer. Such continued coverage shall run concurrently with COBRA.

 These severance payments and benefits are conditioned on you signing and not revoking the Company’s standard release of claims for
executives generally. In addition, your entitlement to the severance payments and benefits are conditioned on your execution of and adherence to, the Management Equity Subscription Agreement; Section 6 of that Agreement sets forth customary
restrictions on competition during your employment with the Company and for a period of one (1) year following your termination of employment for any reason as well as customary confidentiality and non-solicitation covenants. 
 For purposes of this letter, the term “Cause” shall mean: (i) your willful failure to perform your duties which is not cured within fifteen (15) days
following written notice from the Company; (ii) your conviction or confessing to or becoming subject to proceedings that provide a reasonable basis for the Company to believe that you have engaged in a (x) felony, (y) crime involving
dishonesty, or (z) crime involving moral turpitude and which is demonstrably injurious to the 

  

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Company and its subsidiaries; (iii) your willful malfeasance or misconduct which is demonstrably injurious to the Company and its subsidiaries; or
(iv) breach by you of the material terms of any non-competition, non-solicitation or confidentiality provisions. For purposes of this definition, no act or failure to act will be deemed “willful” unless effected by you not in good
faith. 
 The term “Good Reason” shall mean, without your consent,: (i) a substantial diminution in your position or duties, adverse change in
reporting lines, up and down, or assignment of duties materially inconsistent with your position; (ii) any reduction in your base salary; (iii) failure of the Company to pay compensation or benefits when due; (iv) the Company’s
failure to provide you with an annual bonus opportunity that is at the same level as established in your offer letter dated February 29, 2008; or (v) you are required to move your principal business location more than fifty
(50) miles, in each case, which is not cured within thirty (30) days following the Company’s receipt of written notice from you describing the event constituting Good Reason. 
 Please note that, with respect to your outstanding equity rights at the time of your termination of employment, your individual grant agreement and the related equity
documents set forth the consequences of your termination of employment on such equity rights. 
 Your agreement to the terms of this letter supersedes any
other oral or written agreement or understanding you have with the Company (including any predecessor entity) regarding your eligibility for severance payments and benefits. 
 Please sign below your agreement to the terms of this letter. This letter may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument. 
 If you have any questions regarding these severance payments and benefits you should contact John Lowry at (732) 537-6401.

  

	
	Sincerely,
	
	 /s/ John Lowry

	 John Lowry
 President and CEO

  

							
	I hereby agree to the terms of this letter.	 		 	
				
	 /s/ Matt Walsh
	 		 	February 29, 2008	 	
	Matt Walsh	 		 	Date	 	

  

 2Severance Agreement for Matthew Walsh

 Exhibit 10.2 
  

					
	 

	 		 	
	 		 	
	 	 Catalent Pharma Solutions
 14 Schoolhouse
Road
 Somerset, NJ 08873
  
 T (732) 537-6341
 F (732) 537-5996
 www.catalent.com
	 	

 February 29, 2008 
 Mr. Matt Walsh 
 [Home Address] 
 Dear Matt:

 Congratulations on your offer of employment! Catalent is the leading provider of pharmaceutical development services, drug delivery technologies,
manufacturing and packaging services to the global pharmaceutical and biotechnology industry. We take great pride in hiring executives who have talent, drive and commitment and we are extremely delighted to have you join our team. 
 I am pleased to confirm in writing our offer of employment to you. The major provisions of your offer are: 
  

	 	1.	Position: Your position is Senior Vice President and Chief Financial Officer, reporting directly to John Lowry, President and Chief Executive Officer.

  

	 	2.	Pay: Your base rate of pay will be $485,000 (gross amount) annually, paid on a bi-monthly basis. The official Catalent workweek starts on Monday and runs through Sunday.
Catalent employees are paid every other Friday, one week in arrears according to the payroll schedule included in your packet. 

  

	 	3.	Performance: Your performance and merit reviews will follow the standard annual review calendar for Catalent. 

  

	 	4.	Sign-On Bonus: You are also being offered a one-time sign-on bonus of $200,000 (gross amount) which will be paid in September 2008 commensurate with Catalent’s annual
Management Incentive Plan (MIP). If you voluntarily terminate employment with Catalent within twelve (12) months of your payout date, you will be obligated to repay Catalent the full amount of the sign on bonus. 

  

	 	5.	Rewards: Catalent is pleased to offer a comprehensive, competitive compensation program that rewards talented employees for their performance. 

  

	 	a.	You will be eligible for participation in our short-term incentive plan, which we call our Management Incentive Plan (MIP). Your potential incentive for fiscal year 2008 (July 1,
2007 - June 30, 2008) will be 75% of your annual base salary, prorated to reflect the number of days you are employed during the fiscal year. Annual bonus payments are determined based upon the achievement of specific financial and management agenda
objectives. This will be explained to you in more detail when you come on board, but I am happy to answer any questions you may have in the interim. 

  

	 	b.	You will be eligible for our health, life, disability and 401(k) retirement savings plans on your first day of employment. You will receive more information on these benefits during
your new hire orientation session. 

 

 
  

	 	c.	You will be eligible to participate in Catalent’s Deferred Compensation Plan that enables you to save over the IRS limits in the qualified 401(k) plan. Complete details on
the features of this plan and how to enroll will be mailed to your home. 

  

	 	d.	We will recommend to the Board of Directors of PTS Holdings Corp. (parent entity of Catalent) that you be awarded stock options to acquire shares of common stock of PTS Holdings
Corp. with an aggregate value of $4,000,000 dollars (based on the per share exercise price in effect at the time of grant) and with an exercise price per share equal to the Fair Market Value on the date of grant (as such term is defined in the
Equity Documents). The grant of your award will be subject to your investment of not less than $400,000 in cash to purchase shares of common stock of PTS Holdings Corp. at a per share purchase price equal to the Fair Market Value. Provided that you
make your required $400,000 investment at one time on a date that occurs before the 60th day following your start date with company, the company will pay you your sign-on bonus immediately prior to the date of your investment. The company is
agreeing to pay your sign-on bonus early to allow you to utilize the after-tax proceeds of this bonus to satisfy a portion of your investment requirement. In the event that you do not make the entire $400,000 investment prior to the 60th day
following your start date with the company, your sign-on bonus will be paid at the ordinary time to the extent it becomes payable in accordance with its terms. The grant of your award is also subject to the approval of the Board of Directors of PTS
Holdings Corp. and the date of the award, if so approved, will be the date the Board of Directors approves your award. The timing of the approval of your recommended grant is dependent on your acceptance and start date. The complete terms and
conditions of this equity award, including vesting provisions, will be communicated to you as part of the Equity Documents that you will receive, pending approval of the award. Equity Documents as used herein is defined as the PTS Holdings Corp.
Management Equity Subscription Agreement, PTS Holdings Corp. Securityholders Agreement, 2007 PTS Holdings Corp. Stock incentive Plan, and the Non-Qualified Stock Option Agreement to the 2007 PTS Holdings Corp. Stock Incentive Plan (the “Equity
Documents 

 6. Severance: A separate severance agreement letter is being prepared that will provide to you severance equal to your
annual base salary and MIP target bonus, subject to the terms of the agreement. 
 7. Paid Time Off: Upon joining Catalent you will receive seven
(7) paid company holidays (New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day following, and Christmas Day). 
 During the 2008 calendar year, you will be eligible to receive 26 days of Paid Time Off (PTO) prorated to date of hire. PTO includes vacation, sick and personal days, all of which need to be used during the 2008 calendar year. Please note
that Catalent does not allow the carryover of unused PTO unless required by state law. Currently, New Jersey does not require such carry-overs. 
 8.
Start Date: Your first day of employment will be on a mutually agreement date, but no later than April 7, 2008. 
 9. Relocation: You are
eligible for relocation assistance in accordance with the Catalent Pharma Solutions for Homeowners Assistance. Your relocation package will include customary fees paid on sale of your current residence, realtor fees, moving (packing, unpacking),
temporary housing and fees related to closing costs. In addition you will be eligible to receive the equivalent of one month salary to cover other related incidentals, expenses, details to be provided. Catalent will also arrange to make the services
of Primacy Relocation, LLC available to help facilitate the sale of your home. Primacy is Catalent’s third-party provider under the Solutions for Homeowners Assistance policy, and will assist you throughout the sale process. In the event you
are unable to sell your home for a price equal to your original purchase price for the home, Catalent will agree to reimburse you for any loss from your original purchase price over the gross sales price, up to a maximum 
  

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 reimbursement of $250,000 on an after-tax basis and net of any taxes that may apply. It is understood that if you voluntarily
leave the employment of Catalent Pharma Solutions before one year, you will be responsible for reimbursing 100% of these costs (including any form of reimbursement payment), after one year 50% of these costs (including any form of reimbursement
payment) and that after two years, there would no longer be a reimbursement obligation. By signing this offer letter, you agree that Catalent Pharma Solutions may withhold any amounts due from your final paycheck, as they relate to the above.

 10. Screening: Consistent with our policies for all Catalent personnel and the special consideration of our industry, this offer is contingent upon
the taking of a company-paid drug screening test, the results of which must be negative, as well as an acceptable background check, including references. 
 The drug screen must be completed within five days of receipt of this offer. 
  

	11.	Terms: Employment with Catalent is not for any definite period of time and is terminable, with or without notice, at the will of either you or the company at any time for any
reason. There shall be no contract, express or implied, of employment. 

  

	12.	Ethics: As a company founded on a core set of values, we ask you to review the attached. Standards of Business Conduct. 

  

	13.	Orientation: Orientation for you will be conducted at the Somerset facility. We will work out a mutually agreeable day and time for your orientation to receive information
about the benefits program, as well as technology training. If possible, on your first day, please bring the necessary identification to fill out your I-9 form. Typical identification items include your driver’s license and social security
card. 

 Please fax back a signed copy of this offer within 48 hours of receipt of your electronic offer packet. Please fax your signed
offer to Harry Weininger at 732-537-5932. Please contact Anna Murray at 732-537-6217 or anna.murray@catalent.com prior to faxing through signed copy. 
 If
you have any questions, please feel free to call me at 732-537-6401. 
  

	
	Sincerely,
	
	 /s/ John Lowry

	John Lowry
	President and CEO
	Catalent Pharma Solutions, Inc.

  

									
	Enclosures	 		 		 	
					
	cc:	  	H.Weininger	 		 		 	
				
		  	I accept the above offer of employment:	 		 	
					
		  	 /s/ Matt Walsh
	 		 	February 29, 2008	 	
		  	Matt Walsh	 		 	Date	 	

  

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