Vanda Pharmaceuticals Inc.
EXHIBIT 10.30
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.30</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Vanda Pharmaceuticals Inc.</B></FONT><BR>
<FONT style="font-variant: SMALL-CAPS">9605 Medical Center Drive, Suite&nbsp;300</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">Rockville, MD 20850</FONT>
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;1, 2008

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Mr.&nbsp;Albert Gianchetti
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Al:

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter (the &#147;Agreement&#148;) confirms the agreement between you and Vanda Pharmaceuticals
Inc. (the &#147;Company&#148;) regarding the termination of your employment with the Company.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1. Termination Date</B>. Your employment with the Company will terminate on December&nbsp;1, 2008 (the
&#147;Termination Date&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2. Effective Date and Revocation</B>. You have up to 21&nbsp;days after you receive this Agreement to
review it. You are advised to consult an attorney of your own choosing (at your own expense)
before signing this Agreement. Furthermore, you have up to seven days after you sign this
Agreement to revoke it. If you wish to revoke this Agreement after signing it, you may do so by
delivering a letter of revocation to me. If you do not revoke this Agreement, the eighth day after
the date you sign it will be the &#147;Effective Date.&#148; Because of the seven-day revocation period, no
part of this Agreement will become effective or enforceable until the Effective Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3. Salary and Vacation Pay</B>. On the Termination Date, the Company will pay you $1,179.96 (less
all applicable withholding taxes and other deductions). This amount represents all of your salary
earned through the Termination Date. On December&nbsp;15, 2008, the Company will pay you $10,619.64
(less all applicable withholding taxes and other deductions). This amount represents all of your
accrued but unused vacation time. You acknowledge that, prior to the execution of this Agreement,
you were not entitled to receive any additional money from the Company and that the only payments
and benefits that you are entitled to receive from the Company in the future are those specified in
this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4. Bonus</B>. Although you otherwise would not have been entitled to receive any bonus for 2008,
the Company will pay you $76,700 (less all applicable withholding taxes and other deductions) on
December&nbsp;15, 2008. This amount represents 100% of your target bonus for 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5. Severance Pay</B>. Although you otherwise would not have been entitled to receive any
severance pay from the Company, the Company will continue paying you an amount equal to your
current base salary (less all applicable withholding taxes) for 12&nbsp;months in accordance with the
Company&#146;s standard payroll procedures, starting after the Effective Date. The aggregate amount of
these severance payments is equal to $306,800 (less all applicable
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Albert Gianchetti<BR>
December&nbsp;1, 2008<BR>
Page 2

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">withholding taxes). If you breach any provision of this Agreement, no additional severance
payments will be made but this Agreement will remain in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6. COBRA Premiums</B>. You will receive information about your right to continue your group
health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (&#147;COBRA&#148;) after
the Termination Date. In order to continue your coverage, you must file the required election
form. If you sign this Agreement and elect to continue group health insurance coverage, then the
Company will pay the employer portion of the monthly premium under COBRA for yourself and, if
applicable, your dependents until the earliest of (a)&nbsp;the end of the period of 12&nbsp;months following
the month in which the Termination Date occurs, (b)&nbsp;the expiration of your continuation coverage
under COBRA or (c)&nbsp;the date when you become eligible for health insurance in connection with new
employment or self-employment. You acknowledge that you otherwise would not have been entitled to
any continuation of Company-paid health insurance.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7. Stock Options</B>. On October&nbsp;25, 2007, the Company granted you an option to purchase 90,000
shares of its Common Stock (the &#147;First Option&#148;). As of the Termination Date, you will be vested in
24,374 of the shares that are subject to the First Option. On January&nbsp;4, 2008, the Company granted
you an option to purchase 100,000 shares of its Common Stock (the &#147;Second Option&#148; and, together
with the First Option, the &#147;Options&#148;). As of the Termination Date, you will be vested in 20,833 of
the shares that are subject to the Second Option. The Options are exercisable with respect to the
vested shares at any time until the date three months after the Termination Date. The Options will
expire with respect to the vested shares on the date three months after the Termination Date, and
they will expire with respect to the unvested shares on the Termination Date. The Stock Option
Agreements relating to the Options will remain in full force and effect, and you agree to remain
bound by these Agreements. Any other Stock Option Agreements between you and the Company will also
remain in full force and effect. You acknowledge and agree that you have no rights relating to the
Company&#146;s stock other than those enumerated in this Section&nbsp;7 and in Section&nbsp;8.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8. Restricted Shares</B>. On October&nbsp;25, 2007, the Company granted you 3,000 restricted shares of
its Common Stock (the &#147;Shares&#148;). As of the Termination Date, you will be vested in 750 of the
Shares. The remaining Shares will be forfeited on the Termination Date. The Stock Purchase
Agreement relating to the Shares will remain in full force and effect, and you agree to remain
bound by this Agreement. Any other Stock Purchase Agreements between you and the Company will also
remain in full force and effect.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9. Release of All Claims</B>. In consideration for receiving the severance benefits described
above, to the fullest extent permitted by law, you waive, release and promise never to assert any
claims or causes of action, whether or not now known, against the Company or its predecessors,
successors or past or present subsidiaries, stockholders, directors, officers, employees,
consultants, attorneys, agents, assigns and employee benefit plans with respect to any matter,
including (without limitation) any matter related to your employment with the Company or the
termination of that employment, including (without limitation) claims to attorneys&#146; fees or costs,
claims of wrongful discharge, constructive discharge, emotional distress, defamation,
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Albert Gianchetti<BR>
December&nbsp;1, 2008<BR>
Page 3

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">invasion of privacy, fraud, breach of contract or breach of the covenant of good faith and
fair dealing and any claims of discrimination or harassment based on sex, age, race, national
origin, disability or any other basis under Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act of 1967, the Americans with Disabilities Act and all other laws
and regulations relating to employment. However, this release covers only those claims that arose
prior to the execution of this Agreement and only those claims that may be waived by applicable
law. Execution of this Agreement does not bar any claim that arises hereafter, including (without
limitation) a claim for breach of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10. No Admission</B>. Nothing contained in this Agreement will constitute or be treated as an
admission by you or the Company of liability, any wrongdoing or any violation of law.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11. Other Agreements</B>. At all times in the future, you will remain bound by your Proprietary
Information and Inventions Agreement with the Company, which you signed on October&nbsp;25, 2007, and a
copy of which is attached as Exhibit&nbsp;A. Except as expressly provided in this Agreement, this
Agreement renders null and void all prior agreements between you and the Company and constitutes
the entire agreement between you and the Company regarding the subject matter of this Agreement.
This Agreement may be modified only in a written document signed by you and a duly authorized
officer of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12. Company Property</B>. You represent that you have returned to the Company all property that
belongs to the Company, including (without limitation) copies of documents that belong to the
Company and files stored on your computer(s) that contain information belonging to the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13. Confidentiality of Agreement</B>. You agree that you will not disclose to others the
existence or terms of this Agreement, except that you may disclose such information to your spouse,
attorney or tax adviser if such individuals agree that they will not disclose to others the
existence or terms of this Agreement.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14. No Disparagement</B>. You agree that you will never make any negative or disparaging
statements (orally or in writing) about the Company or its stockholders, directors, officers,
employees, products, services or business practices, except as required by law.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>15. Severability</B>. If any term of this Agreement is held to be invalid, void or unenforceable,
the remainder of this Agreement will remain in full force and effect and will in no way be
affected, and the parties will use their best efforts to find an alternate way to achieve the same
result.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>16. Choice of Law</B>. This Agreement will be construed and interpreted in accordance with the
laws of the State of Maryland (other than their choice-of-law provisions).
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>17. Execution</B>. This Agreement may be executed in counterparts, each of which will be
considered an original, but all of which together will constitute one agreement.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Albert Gianchetti<BR>
December&nbsp;1, 2008<BR>
Page 2

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Execution of a facsimile copy will have the same force and effect as execution of an original,
and a facsimile signature will be deemed an original and valid signature.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please indicate your agreement with these terms by signing below and returning this document
to me.
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    <TD colspan="3" valign="top" align="left">Very truly yours,</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><FONT style="font-variant: SMALL-CAPS">Vanda Pharmaceuticals Inc.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By<BR>
Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Mihael H. Polymeropoulos
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Chief Executive Officer
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">I agree to the terms of this Agreement, and I am voluntarily signing this release of all claims. I
acknowledge that I have read and understand this Agreement, and I understand that I cannot pursue
any of the claims and rights that I have waived in this Agreement at any time in the future.
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Albert Gianchetti
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
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    <TD>&nbsp;</TD>
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    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature of Albert Gianchetti</DIV></TD>
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