Document:

NSE 10-K 2004 Exhibit 10.65 Memo of Under UofU Caroderm Nutriscan

UNIVERSITY OF UTAH
RESEARCH FOUNDATION 

and 

NUTRISCAN, INC. 

AMENDED AND RESTATED 

PATENT LICENSE
AGREEMENT 

(EXCLUSIVE) 

TABLE OF CONTENTS 

		
	WITNESSETH	 	1	 
	 	 
	1 - DEFINITIONS	 	2	 
	 	 
	2 - GRANT	 	5	 
	 	 
	3 - DILIGENCE	 	7	 
	 	 
	4 - ROYALTIES	 	9	 
	 	 
	5 - REPORTS AND RECORDS	 	12	 
	 	 
	6 - PATENT PROSECUTION	 	14	 
	 	 
	7 - CONFIDENTIALITY	 	15	 
	 	 
	8 - INFRINGEMENT	 	16	 
	 	 
	9 - PRODUCT LIABILITY	 	18	 
	 	 
	10 - EXPORT CONTROLS	 	19	 
	 	 
	11 - NON-USE OF NAMES	 	20	 
	 	 
	12 - ASSIGNMENT	 	20	 
	 	 
	13 - DISPUTE RESOLUTION	 	20	 
	 	 
	14 - TERMINATION	 	21	 
	 	 
	15 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS	 	23	 
	 	 
	16 - MISCELLANEOUS PROVISIONS	 	23	 
	 	 
	APPENDIX A	 	25	 
	 	 
	APPENDIX B	 	26	 

UNIVERSITY OF UTAH
RESEARCH FOUNDATION 

and 

NUTRISCAN, INC. 

AMENDED AND RESTATED 

PATENT LICENSE AGREEMENT 

        This Amended and Restated
Agreement is made and entered into effective as of the 7th day of March, 2002, (the
“EFFECTIVE DATE”) by and between the UNIVERSITY OF UTAH RESEARCH FOUNDATION,
having its principal office at 615 Arapeen Dr., Suite 110, Salt Lake City, UT 84108
(hereinafter referred to as “LICENSOR”), and Nutriscan, Inc., a corporation duly
organized under the laws of Utah, and having its principal office at 75 West Center
Street, Provo, Utah 84601 (hereinafter referred to as “LICENSEE”). 

WITNESSETH 

        WHEREAS,
LICENSOR is the owner of certain LICENSED TECHNOLOGY (as later defined herein) relating
to University of Utah Case No. U-2612, entitled NONINVASIVE DETECTION AND MAPPING OF
CHEMICAL SUBSTANCES IN THE SKIN AND SKIN-RELATED MALIGNANCIES by Werner Gellermann,
Robert W. McClane , Nikita B. Katz and Paul S. Bernstein and has the right to grant
licenses under said LICENSED TECHNOLOGY; 

        WHEREAS,
LICENSOR desires to have the LICENSED TECHNOLOGY developed and commercialized to benefit
the public and is willing to grant a license thereunder; 

        WHEREAS,
University of Utah inventors of the PATENT RIGHTS, were also original inventors/equity
participants in the company, the Conflict Avoidance Statements of Paul S. Bernstein,
Werner Gellermann and Robert W. McClane, are Appendix C hereto; the Waivers of Royalty of
Paul

1 

 S. Bernstein, Werner Gellermann and Robert W. McClane, inventors/equity participants
in company are Appendix D; 

        WHEREAS,
the LICENSOR originally granted a license to the LICENSEE pursuant to that certain License
Agreement dated June, 29, 2000 pursuant to which the LICENSOR accepted an equity interest
in LICENSEE in partial consideration for the license grant; 

        WHEREAS,
LICENSOR and the other original investors in LICENSEE have elected to sell all of their
interest in LICENSEE to Worldwide Nutritional Sciences, Inc.; and 

        WHEREAS,
in connection with such sale, LICENSEE and LICENSOR desire to amend and restate in its
entirety the LICENSE AGREEMENT . NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein, the parties hereto agree as follows:  

1 - DEFINITIONS 

        For
the purposes of this Agreement, the following words and phrases shall have the following
meanings: 

        1.1
 "AFFILIATE" means any person or entity that controls, is controlled by, or is under
common control with LICENSEE, directly or indirectly. For purposes of this definition,
"control" and its various inflected forms means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of such
person or entity, whether through ownership of voting securities, by contract or
otherwise. 

        1.2
 "PATENT RIGHTS" shall mean all of the following LICENSOR intellectual property: 

	  	  	a.  	  	 the
     United  States  patents  listed in Appendix A;  

	  	  	b.  	  	the
United  States patent applications listed in Appendix A, and divisionals,  continuations
and claims of continuation-in-part  applications  which shall be  directed  to subject
 matter specifically  described in such patent applications,  and the resulting patents; 

	  	  	c.  	  	any
patents  resulting from reissues or  reexaminations  of the United States patents
 described in a. and b. above;  

	  	  	d.  	  	the
Foreign patents listed in Appendix A;  

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	  	  	e.  	  	the
Foreign  patent  applications  listed in Appendix A, and  divisionals, continuations and
claims of continuation-in-part applications
which shall be directed to subject matter specifically described in such Foreign patent
applications, and the resulting patents;   

               	f. 	  	
                    Foreign patent applications filed after the EFFECTIVE DATE, including those
                    applications filed in at least the countries listed in Appendix B and
                    divisionals, continuations and claims of continuation_in_part applications which
                    shall be directed to subject matter specifically described in such patent
                    applications, and the resulting patents; and 

                    

               	g. 	  	
                    any Foreign patents, resulting from equivalent Foreign procedures to United
                    States reissues and reexaminations, of the Foreign patents described in d., e.
                    and f. above. 

                    

        1.3
“LICENSED TECHNOLOGY” means and includes the PATENT RIGHTS and other technology
and intellectual property, including inventions, whether patentable or unpatentable,
technical data, software, apparatus, know-how and trade secrets relating to University of
Utah Case No. U-2612 entitled NONINVASIVE DETECTION AND MAPPING OF CHEMICAL SUBSTANCES IN
THE SKIN AND SKIN-RELATED MALIGNANCIES owned and known by LICENSOR upon the EFFECTIVE
DATE. 

        1.4
A “LICENSED PRODUCT” shall mean any product or part thereof which: 

               	a. 	  	
                    is covered in whole or in part by an issued, unexpired claim or a pending claim
                    contained in the PATENT RIGHTS in the country in which any such product or part
                    thereof is made, used or sold; or 

                    

               	b. 	  	
                    is manufactured by using a process or is employed to practice a process which is
                    covered in whole or in part by an issued, unexpired claim or a pending claim
                    contained in the PATENT RIGHTS in the country in which any LICENSED PROCESS is
                    used or in which such product or part thereof is used or sold; and 

                    

               	c. 	  	
                    is covered by or incorporates any LICENSED TECHNOLOGY. 

                    

        1.5
A “LICENSED PROCESS” shall mean any process which is covered in whole or in part
by an issued, unexpired claim or a pending claim contained in the PATENT RIGHTS or is
covered by or incorporates any LICENSED TECHNOLOGY. 

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        1.6
“NET SALES” shall mean LICENSEE’S, its AFFILIATES’ (except as
described below) and its SUBLICENSEES’ billings for LICENSED PRODUCTS and LICENSED
PROCESSES less the sum of the following: 

	  	  	a.  	  	discounts allowed
in amounts customary in the trade for quantity purchases,                     cash
payments, prompt payments, wholesalers and distributors;

	  	  	 	  	 

	  	  	b..  	  	sales,
tariff                     duties and/or use taxes directly imposed and with reference to
particular sales; 

	  	  	c.  	  	outbound
transportation prepaid or allowed; and  

	  	  	d.  	  	amounts
allowed or                     credited on returns.  

	  	  	e.  	  	commissions
paid to independent sales representatives or                     agencies.  

        No
deductions shall be made for commissions paid to individuals regularly employed by
LICENSEE, or for cost of collections. NET SALES shall occur: 

               	 	(i)
                     with respect to NET SALES of LICENSED PRODUCTS and LICENSED PROCESSES in the
                    United States, when a LICENSED PRODUCT or LICENSED PROCESS shall be invoiced by
                    LICENSEE, or an AFFILIATE of LICENSEE, or a SUBLICENSEE, to a third party that
                    is not an AFFILIATE, or if not invoiced, when delivered to or performed for a
                    third party that is not an AFFILIATE (and no royalty shall be payable on
                    intercompany billings to AFFILIATES); 

                    

	  	
(ii) with
respect to NET SALES of LICENSED PRODUCTS outside of the United States
               through AFFILIATES, the date that is six months following the receipt of
the                LICENSED PRODUCT by an AFFILIATE and the royalty on such NET SALES
shall be                based on the published U.S. retail price rather than the transfer
price invoiced                to such AFFILIATES (and no royalty shall be payable on
billings by the AFFILIATE                for the LICENSED PRODUCTS);  

	  	
     (iii) with respect to NET SALES of LICENSED PROCESSES outside of the United
States, when such LICENSED PROCESS shall be invoiced by LICENSEE, a SUBLICENSEE,
or an AFFILIATE of LICENSEE to a third party that is not an AFFILIATE;

	  	
(iv) with
respect to NET SALES of LICENSED PRODUCTS by LICENSEE or SUBLICENSEE to
                    persons or entities outside of the UNITED STATES that are not

4 

	  	
AFFILIATES, the                     date the LICENSED PRODUCT shall be invoiced by
LICENSEE to such third party, or                     if not invoiced, when delivered to
such third party.  

In the event a Licensed Product is
leased, licensed or sold on an installment basis the royalties due hereunder shall be
calculated and paid on the amount of each installment as it is invoiced. 

        1.7
“OTHER REVENUE” shall mean LICENSEE’S gross revenues from the sale of
services (e.g. fees for consulting, research and development, and training) in connection
with: 

	  	  	a. 	  	the
sublicensing of the LICENSED TECHNOLOGY; and/or  

	  	b. 	  	the
     use or sale,  lease or other  transfer  of  LICENSED  PRODUCTS  or LICENSED
PROCESSES.  1.8  “TERRITORY”  shall mean worldwide.  

        1.9 “FIELD OF
USE”  shall mean the use of the LICENSED  TECHNOLOGY  for the  non-invasive
measurement of carotenoids and similar or relatedcompounds, and anti-oxidant status
and other compounds in human skin for the promotion and sale of nutritional supplements
and other carotenoid-containing products, but specifically excluding marketing the
LICENSED TECHNOLOGY to the professional medical community (e.g., pharmaceuticals, medical
doctors, medical clinics, medical research centers, medical schools and hospitals). 

2-GRANT 

        2.1
LICENSOR hereby grants to LICENSEE the right and license in the TERRITORY for the FIELD OF
USE to practice under the LICENSED TECHNOLOGY and, to the extent not prohibited by other
patents, to make, have made, use, lease, license, sell and export LICENSED PRODUCTS and to
practice the LICENSED PROCESSES, until the expiration of the last to expire of any of
LICENSOR’S rights in the LICENSED TECHNOLOGY, unless this Agreement shall be sooner
terminated according to the terms hereof. 

        LICENSEE
shall have the right to enter into sublicensing agreements for the rights, privileges and
licenses granted hereunder only during the EXCLUSIVE PERIOD (defined below) of this
Agreement. Upon any termination of this Agreement, SUBLICENSEES’ rights shall also
terminate, subject to Section 14.6 hereof. 

5 

        2.2
In order to establish a period of exclusivity for LICENSEE, LICENSOR hereby agrees that it
shall not grant any other license to make, have made, use, lease, sell and import LICENSED
PRODUCTS or to utilize LICENSED PROCESSES, in the TERRITORY for the FIELD OF USE or the
promotion and sale of nutritional supplements during the period of time commencing with
the EFFECTIVE DATE and terminating upon the last to expire of the PATENT RIGHTS
(hereinafter the “EXCLUSIVE PERIOD”). 

        2.3
The University of Utah reserves the right to practice under the LICENSED TECHNOLOGY for
noncommercial internal research purposes. 

        2.4
LICENSEE agrees to incorporate terms and conditions substantively similar to Articles 2,
5, 8.1-6, 9, 10, 11, 12, 13, and 16 of this Agreement into its sublicense agreements, so that these Articles shall be binding upon such
SUBLICENSEES as if they were parties to this Agreement. 

        2.5
LICENSEE agrees to forward to LICENSOR a copy of any and all sublicense agreements
promptly upon execution by the parties.  

        2.6
LICENSEE shall not receive from SUBLICENSEES anything of value in lieu of cash payments
or publicly traded securities in consideration for any sublicense under this Agreement,
without the express prior written permission of LICENSOR, which prior written permission
shall not be unreasonably withheld.  

        2.9
Nothing in this Agreement shall be construed to confer any rights upon LICENSEE by
implication, estoppel or otherwise as to any technology or patent rights of LICENSOR or
any other entity other than the LICENSED TECHNOLOGY, regardless of whether such rights
shall be dominant or subordinate to any LICENSED TECHNOLOGY. 

3 - DILIGENCE 

        3.1
LICENSEE shall use its commercially reasonable best efforts to bring one or more LICENSED
PRODUCTS or LICENSED PROCESSES to market and to continue active, diligent marketing
efforts for one or more LICENSED PRODUCTS or LICENSED PROCESSES throughout the life of
this Agreement. 

        3.2
 In addition, LICENSEE shall adhere to the following milestones: 

	  	  	                        a.  	  	LICENSEE
shall: 

  
6

     	(i) 	  	
          deliver to LICENSOR within 90 days of the execution of this agreement, a
          business plan relating to the commercialization of the LICENSED TECHNOLOGY in
          the FIELD OF USE; and 

          

     	(ii) 	  	
          provide similar reports to LICENSOR on January 31 of each year. 

          

               	b. 	  	
                    LICENSEE shall make a first commercial sale, lease, or license of a LICENSED
                    PRODUCT or LICENSED PROCESS on or before September 30, 2003. 

                    

        3.3 LICENSEE’S failure to
perform in accordance with either Paragraph 3.1 or 3.2 above shall be grounds for LICENSOR
to terminate this Agreement pursuant to Paragraph 14.3 hereof. Notwithstanding the
foregoing, if there is a major unanticipated research, development, marketing or
regulatory problem, the parties will meet to renegotiate revised due diligence deadlines. 

4 - ROYALTIES 

        4.1
For the rights, privileges and license granted hereunder, LICENSEE shall pay royalties to
LICENSOR in the manner hereinafter provided to the end of the term of the PATENT RIGHTS or
until this Agreement shall be otherwise terminated, which ever first occurs: 

               	a. 	  	
                    License Issue Fee of Twenty-Five Thousand Dollars ($25,000), receipt of Twenty
                    Thousand Dollars ($20,000) is hereby acknowledged and confirmed. An additional
                    payment of Five Thousand Dollars ($5,000) shall be made on or before June, 29,
                    2002. 

                    

               	b. 	  	
                    An ownership interest in the new company formed by LICENSEE equal to Five
                    Percent (5%) of the total ownership interest of the LICENSEE on the EFFECTIVE
                    DATE. LICENSOR acknowledge receipt of such five percent ownership, which it has
                    elected to sell pursuant to that certain Reconstituted Stock Purchase Agreement
                    dated March__, 2002. Following such sale, LICENSOR shall have no further
                    ownership interest in LICENSEE and shall

                    

7

               	 	  	
                    have no further right to any ownership
                    interest in LICENSEE or any entity formed by LICENSEE. 

                    

               	c. 	  	
                    License Maintenance Fees of Five Thousand Dollars ($5,000) for the year in which
                    the first NET SALES occurs, Ten Thousand Dollars ($10,000) the second year,
                    Twenty-five Thousand Dollars ($25,000) the third year and Fifty Thousand Dollars
                    ($50,000) each year thereafter; provided, however, License Maintenance Fees may
                    be credited to Running Royalties subsequently due on NET SALES or OTHER REVENUE
                    for each said year, if any. License Maintenance Fees paid in excess of Running
                    Royalties shall not be creditable to Running Royalties for future years. 

                    

               	d. 	  	
                    Running Royalties in an amount equal to Three and a half Percent (3.5%)
                    of NET SALES of the LICENSED PRODUCTS and LICENSED PROCESSES used, leased or
                    sold by and/or for LICENSEE and/or its SUBLICENSEES. Should LICENSEE assign its
                    right and obligations under this License Agreement to a party other than an
                    AFFILIATE, the Running Royalty shall be Four and a half Percent (4.5%) for NET
                    SALES made by the Assignee and its SUBLICENSEES. 

                    

               	e. 	  	
                    LICENSOR hereby grants to LICENSEE the right to enter into sublicensing
                    agreements with third parties (hereinafter referred to as
                    “SUBLICENSEES”) to the extent of LICENSEE’S rights under the
                    grant provided in Section 2.1 and provided that LICENSEE has current exclusive
                    rights thereto in the TERRITORY being sublicensed pursuant to Section 3.3.
                    LICENSEE may only enter into sublicensing agreements during the EXCLUSIVE PERIOD
                    of this AGREEMENT. Upon any termination of this AGREEMENT, SUBLICENSEES’
                    rights shall also terminate. 

                    

               	f. 	  	
                    Any sublicense granted by LICENSEE to a SUBLICENSEE shall incorporate all of the
                    terms and conditions of this AGREEMENT, which shall be binding upon each
                    SUBLICENSEE as if such SUBLICENSEE were a party to this AGREEMENT. 

                    

8

               	g. 	  	
                    LICENSEE shall pay to LICENSOR Thirty-five Percent (35% ) of any lump-sum fee or
                    advance payment received by LICENSEE from any SUBLICENSEE. However, that amount
                    may be reduced by an amount equal to the portion of the lump-sum fee or advance
                    payment re-invested by LICENSEE in further research and development of the
                    LICENSED TECHNOLOGY, but in no event shall LICENSEE pay LICENSOR less than
                    Fifteen Percent (15%) of any lump-sum fee or advance payment. LICENSEE shall not
                    receive from SUBLICENSEES anything of value in lieu of cash payments in
                    consideration for any sublicense under this AGREEMENT, without the express prior
                    written permission of LICENSOR. In addition, LICENSEE shall pay to LICENSOR a
                    royalty on NET SALES under any sublicense which royalty rate shall be the
                    greater of: (a) Fifty Percent (50.0%) of the royalty rate charged by LICENSEE on
                    NET SALES by such SUBLICENSEE, or; (b) the same rate that would be due to
                    LICENSOR from NET SALES by LICENSEE. 

                    

               	h. 	  	
                    LICENSEE shall promptly (a) provide LICENSOR with a copy of each sublicense
                    granted by LICENSEE hereunder and any amendments thereto or terminations
                    thereof; (b) collect and guarantee payment of all royalties due LICENSOR from
                    SUBLICENSEES; and (c) summarize and deliver copies of all reports due to
                    LICENSEE from SUBLICENSEES. 

                    

        4.2
All payments due hereunder shall be paid in full, without deduction of taxes or other fees
which may be imposed by any government, except as otherwise provided in Paragraph 1.6(b). 

        4.3
No multiple royalties shall be payable because any LICENSED PRODUCT, its manufacture, use,
lease or sale are or shall be covered by more than one LICENSED TECHNOLOGY, PATENT RIGHTS
patent application or PATENT RIGHTS patent licensed under this Agreement. 

        4.4
Royalty payments shall be paid in United States dollars in Salt Lake City, Utah, or at
such other place as LICENSOR may reasonably designate consistent with the laws and
regulations controlling in any foreign country. If any currency conversion shall be
required in connection with the payment of royalties hereunder, such conversion shall be
made by using the exchange rate prevailing at the Chase Manhattan Bank (N.A.) or its
successor on the last business day of the calendar quarterly reporting period to which
such royalty payments relate. 

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5 - REPORTS AND RECORDS 

        5.1
LICENSEE shall keep full, true and accurate books of account containing all particulars
that may be necessary for the purpose of showing the amounts payable to LICENSOR
hereunder. Said books of account shall be kept at LICENSEE’S principal place of
business or the principal place of business of the appropriate division of LICENSEE to
which this Agreement relates. Said books and the supporting data shall be open at all
reasonable times for five (5) years following the end of the calendar year to which they
pertain, to the inspection of LICENSOR or its agents for the purpose of verifying
LICENSEE’S royalty statement or compliance in other respects with this Agreement.
Should such inspection lead to the discovery of a greater than Five Percent (5%)
discrepancy in reporting to LICENSOR’S detriment, LICENSEE agrees to pay the full
cost of such inspection. 

        5.2
LICENSEE shall deliver to LICENSOR true and accurate reports, giving such particulars of
the business conducted by LICENSEE and its SUBLICENSEES under this Agreement as shall be
pertinent to diligence under Article 3 and royalty accounting hereunder: 

	  	  	a. 	  	before
the first commercial sale of a LICENSED PRODUCT or LICENSED PROCESS,
               annually, on January 31 of each year; and  

	  	  	b. 	  	after
the first commercial sale of a LICENSED PRODUCT or LICENSED PROCESS,
               quarterly, within sixty (60) days after March 31, June 30, September 30
and                December 31, of each year.  

        5.3
 These reports shall include at least the following: 

	  	  	a.  	  	 number of
LICENSED PRODUCTS manufactured, leased and sold by and/or for           LICENSEE and all
SUBLICENSEES;  

	  	  	b.  	  	accounting
for all LICENSED PROCESSES used or           sold by and/or for LICENSEE and all
SUBLICENSEES;  

	  	  	c.  	  	accounting
for NET SALES,           noting the deductions applicable as provided in Paragraph 1.6;  

	  	  	d.  	  	Royalties
due           under Paragraph 4.1(c);  

	  	  	e.  	  	Running
Royalties due under Paragraph 4.1(d);  

	  	  	f.  	  	royalties
due on other payments from SUBLICENSEES and assignees under paragraph           4.1(e),
and (f);  

	  	  	g.  	  	total
royalties due;  

	  	  	h.  	  	names
and addresses of all           SUBLICENSEES of LICENSEE;  

10

	  	  	i. 	  	Copies
of all sublicenses executed;  

	  	  	j. 	  	 the
amount spent on product development; and  

	  	  	k. 	  	the
number of full time equivalent employees working on the LICENSED TECHNOLOGY.  

        5.4
With each such report submitted, LICENSEE shall pay to LICENSOR the royalties due and
payable under this Agreement. If no royalties shall be due, LICENSEE shall so report. 

        5.5
On or before the ninetieth (90th) day following the close of LICENSEE’S fiscal year,
LICENSEE shall provide LICENSOR with LICENSEE’S consolidated financial statements for
the preceding fiscal year including, at a minimum, a balance sheet and an income
statement. Certified financial statements shall be provided after the company goes public. 

        5.6
The amounts due under Articles 4 and 6 shall, if overdue, bear interest until payment at a
per annum rate Two Percent (2%) above the prime rate in effect at the Chase Manhattan Bank
(N.A.) or its successors on the due date. The payment of such interest shall not foreclose
LICENSOR from exercising any other rights it may have as a consequence of the lateness of
any payment. 

6 - PATENT PROSECUTION 

        6.1
LICENSOR shall diligently prosecute and maintain PATENT RIGHTS with legal counsel of its
choice, after consultation with LICENSEE. LICENSOR shall provide LICENSEE with copies of
all relevant documentation and keep LICENSEE informed and apprized of the continuing
prosecution. LICENSEE shall keep any such documentation and information confidential. 

        6.2
LICENSEE shall pay in advance (Total to be forthcoming but approximately $12K — $15K)
for patent expenses already incurred by LICENSOR. Further LICENSEE shall pay in advance an
amount estimated by patent counsel for each step in the patent process to include all
costs and legal fees incurred by LICENSOR in the preparation, prosecution and maintenance
of PATENT RIGHTS, including without limitation, any taxes on such patent rights, however,
LICENSEE shall have the right to: 

	  	  	a. 	  	to
receive copies of all patent correspondence;  

	  	  	b. 	  	to
solicit, review and approve estimates and final billings from said patent
               attorneys for the above listed services;  

	  	  	c. 	  	to
review and provide comment on all correspondence from and all applications
               and draft responses to the patent office;  

11 

	  	  	d. 	  	 to
select the foreign countries in which patent applications shall be filed,
               prosecuted, and maintained, provided, however, that LICENSOR, at its own
cost                and expense, shall have the right to file, prosecute, maintain, and
license                patent applications/patents in a foreign country or countries in
which LICENSEE                does not elect to file;  

	  	  	e. 	  	to
elect whether and when to file divisionals, continuations, and
               continuations-in-part provided, however, that LICENSOR, at its own cost
and                expense, shall have the right to file, prosecute, maintain, and
license said                divisionals, continuations, and continuations-in-part if
LICENSEE does not elect                to file said divisionals, continuations, and/or
continuations-in-part, in which                case LICENSEE shall have no license rights
or otherwise to those patents.  

        6.3
Except at otherwise provided herein, payment of all fees and costs relating to the filing,
prosecution and maintenance of the PATENT RIGHTS shall be the responsibility of LICENSEE,
whether such fees and costs were incurred before or after the EFFECTIVE DATE. LICENSEE
shall pay such fees and costs to LICENSOR within thirty (30) days of invoicing; late
payments shall accrue interest and shall be subject to Paragraph 5.6. 

        6.4
In the event the PATENT RIGHTS are licensed to an independent third party for a different
field of use, LICENSEE’S will subsequently be responsible only for its pro-rata share
of patent prosecution expenses as described in this Section 6. For example, if the total
number of Licensees for PATENT RIGHTS is two, LICENSEE shall be obligated to pay 1/2 of
all patent expenses. 

7 —
CONFIDENTIALITY 

        7.1 LICENSEE and LICENSOR
acknowledge that either party may provide certain information to the other about the
LICENSED TECHNOLOGY that is considered to be confidential. LICENSEE and LICENSOR shall
take reasonable precautions to protect such confidential information. Such precautions
shall involve at least the same degree of care and precaution that LICENSEE customarily
uses to protect its own confidential information. 

        7.2
LICENSEE acknowledges that LICENSOR is subject to the Utah Governmental Records Access and
Management Act (“GRAMA”), Section 63-2-101 et seq., Utah Code Ann.
(1953), as amended. Licensor shall keep confidential any information provided to Licensor
by Licensee that Licensee considers confidential, to the extent allowable under GRAMA and
as provided in Section 53B-

12 

16-301 et seq., Utah Code Ann. In order to be
eligible for such protection under GRAMA, confidential information of Licensee disclosed
to Licensor must be in written or other tangible form, marked as proprietary, and
accompanied by a written claim by Licensee stating the reasons that such information must
be kept confidential. 

8 - INFRINGEMENT 

        8.1
LICENSEE shall inform LICENSOR promptly in writing of any alleged infringement of the
LICENSED TECHNOLOGY by a third party and of any available evidence thereof. 

        8.2
LICENSOR shall have the right, but shall not be obligated, to prosecute at its own expense
all infringements of the LICENSED TECHNOLOGY and, in furtherance of such right, LICENSEE
hereby agrees that LICENSOR may include LICENSEE as a party plaintiff in any such suit,
without expense to LICENSEE. The total cost of any such infringement action commenced or
defended solely by LICENSOR shall be borne by LICENSOR. Any recovery of damages by
LICENSOR for such suit shall be applied first in satisfaction of any unreimbursed expenses
and legal fees of LICENSOR relating to such suit, and next toward reimbursement of
LICENSOR for any payments under Article 4 past due or withheld and applied pursuant to
this Article 8. The balance remaining from any such recovery shall be divided with
Seventy-Five Percent (75%) going to the LICENSOR and Twenty-Five Percent (25%) going to
LICENSEE. 

        8.3
If within six (6) months after having been notified of an alleged infringement, LICENSOR
shall have been unsuccessful in persuading the alleged infringer to desist and shall not
have brought and shall not be diligently prosecuting an infringement action, or if
LICENSOR shall notify LICENSEE at any time prior thereto of its intention not to bring
suit against any alleged infringer in the TERRITORY for the FIELD OF USE, then, and in
those events only, LICENSEE shall have the right, but shall not be obligated, to prosecute
at its own expense any infringement of the LICENSED TECHNOLOGY in the TERRITORY for the
FIELD OF USE, and LICENSEE may, for such purposes, use the name of LICENSOR as party
plaintiff; provided, however, that such right to bring such an infringement action shall
remain in effect only during the EXCLUSIVE PERIOD. No settlement, consent judgment or
other voluntary final disposition of the suit may be entered into without the consent of
LICENSOR, which consent shall not unreasonably be withheld. LICENSEE shall indemnify
LICENSOR against any order for costs that may be made against LICENSOR in such
proceedings. 

        8.4
In the event that LICENSEE shall undertake litigation for the enforcement of the LICENSED
TECHNOLOGY, or the defense of the LICENSED TECHNOLOGY under Paragraph 8.5, LICENSEE 

13 

may
withhold up to Fifty Percent (50%) of the Running Royalty payments otherwise thereafter
due LICENSOR under Article 4 hereunder and apply the same toward reimbursement of up to
half of LICENSEE’S expenses, including reasonable attorneys’ fees, in connection
therewith. Any recovery of damages by LICENSEE for each such suit shall be applied first
in satisfaction of any unreimbursed expenses and legal fees of LICENSEE relating to such
suit, and next toward reimbursement of LICENSOR for any payments under Article 4 past due
or withheld and applied pursuant to this Article 8. The balance remaining from any such
recovery shall be divided with Twenty-five percent (25%) going to LICENSOR and
Seventy-five percent (75%) going to LICENSEE. 

        8.5
In the event that a declaratory judgment action alleging invalidity or noninfringement of
any of the LICENSED TECHNOLOGY shall be brought against LICENSOR or LICENSEE, LICENSOR, at
its option, shall have the right, within thirty (30) days after commencement of such
action, to take over the sole defense of the action at its own expense. If LICENSOR shall
not exercise this right, LICENSEE may take over the sole defense at LICENSEE’S sole
expense, subject to Paragraph 8.4. 

        8.6
In any infringement suit as either party may institute to enforce the LICENSED TECHNOLOGY
pursuant to this Agreement, the other party hereto shall, at the request and expense of
the party initiating such suit, cooperate in all respects and, to the extent possible,
have its employees testify when requested and make available relevant records, papers,
information, samples, specimens, and the like. 

        8.7
LICENSEE, during the EXCLUSIVE PERIOD, shall have the sole right in accordance with the
terms and conditions herein to sublicense any alleged infringer in the TERRITORY for the
FIELD OF USE for future use of the LICENSED TECHNOLOGY. Any upfront fees as part of such a
sublicense shall be shared equally between LICENSEE and LICENSOR; other revenues shall be
treated per Article 4. 

9 - PRODUCT LIABILITY 

        9.1
LICENSEE shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold LICENSOR, its trustees, directors, officers, employees and affiliates,
harmless against all claims, proceedings, demands and liabilities of any kind whatsoever,
including legal expenses and reasonable attorneys’ fees, arising out of the death of
or injury to any person or persons or out of any damage to property, resulting from the
production, manufacture, sale, use, lease, consumption or advertisement of the LICENSED
PRODUCT(s) and/or LICENSED PROCESS(es) or arising from any obligation of LICENSEE
hereunder. 

14 

        9.2
LICENSEE shall obtain and carry in full force and effect commercial, general liability
insurance which shall protect LICENSEE and LICENSOR with respect to events covered by
Paragraph 9.1 above. Such insurance shall be written by a reputable insurance company
authorized to do business in the State of Utah, shall list LICENSOR as an additional named
insured thereunder, shall be endorsed to include product liability coverage and shall
require thirty (30) days written notice to be given to LICENSOR prior to any cancellation
or material change thereof. The limits of such insurance shall not be less than Five
Hundred Thousand ($500,000) per occurrence with an aggregate of One Million Dollars
($1,000,000) for personal injury including death; Five Hundred Thousand Dollars ($500,000)
per occurrence with an aggregate of One Million Dollars ($1,000,000) for property damage;
and Five Hundred Thousand Dollars ($500,000) per occurrence with an aggregate of One
Million Dollars ($1,000,000) for errors and omissions. LICENSEE shall provide LICENSOR
with Certificates of Insurance evidencing the same. 

        9.3
 EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT
LICENSOR HAS MADE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT
SHALL LICENSOR BE HELD RESPONSIBLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES
ARISING OUT OF THE USE OF PATENT RIGHTS, EVEN IF LICENSOR IS ADVISED IN ADVANCE OF THE
POSSIBILITY OF SUCH DAMAGES. 

10 - EXPORT CONTROLS 

        LICENSEE
acknowledges that it is subject to United States laws and regulations controlling the
export of technical data, computer software, laboratory prototypes and other commodities
(including the Arms Export Control Act, as amended and the United States Department of
Commerce Export Administration Regulations). The transfer of such items may require a
license from the cognizant agency of the United States Government and/or written
assurances by LICENSEE that LICENSEE shall not export data or commodities to certain
foreign countries without prior approval of such agency. LICENSOR neither represents that
a license shall not be required nor that, if required, it shall be issued. 

15 

11- NON-USE OF NAMES 

        LICENSEE
shall not use the names or trademarks of the University of Utah, LICENSOR, nor any
adaptation thereof, nor the names of any of their employees, in any advertising,
promotional or sales literature without prior written consent obtained from LICENSOR, or
said employee, in each case, except to the extent permitted by University Policy and
Procedures # 8-12.4(D)(3) or the University policy in effect at the time, and except that
LICENSEE may state that it is licensed by LICENSOR under one or more of the patents and/or
applications or rights comprising the LICENSED TECHNOLOGY. 

12 - ASSIGNMENT 

        With
the prior written consent of LICENSOR, which shall not be unreasonably withheld, LICENSEE
may assign this Agreement, so long as the assignee shall agree in writing to be bound by
the terms and conditions hereof prior to such assignment. A written assignment and consent
to that assignment by LICENSOR shall be also required in the event of merger or other
business combination with LICENSEE or a sale by LICENSEE of all or substantially all of
LICENSEE’s assets. Failure of such assignee to so agree shall be grounds for
termination by LICENSOR under Paragraph 14.3. 

13 - DISPUTE RESOLUTION 

        13.1
Except for the right of either party to apply to a court of competent jurisdiction for a
temporary restraining order, a preliminary injunction, or other equitable relief to
preserve the status quo or prevent irreparable harm, any and all claims, disputes or
controversies arising under, out of, or in connection with the Agreement, including any
dispute relating to patent validity or infringement, which the parties shall be unable to
resolve within sixty (60) days shall be mediated in good faith. The party raising such
dispute shall promptly advise the other party of such claim, dispute or controversy in a
writing which describes in reasonable detail the nature of such dispute. By not later than
five (5) business days after the recipient has received such notice of dispute, each party
shall have selected for itself a representative who shall have the authority to bind such
party, and shall additionally have advised the other party in writing of the name and
title of such representative. By not later than ten (10) business days after the date of
such notice of dispute, the party against whom the dispute shall be raised shall select a
mediator in the Salt Lake City area and such representatives shall schedule a date with
such mediator for a mediation hearing. The parties shall enter into good faith mediation
and shall share the costs equally. If the representatives of the parties have not been
able to resolve the dispute within fifteen (15) business days after such mediation
hearing, then any and all claims, disputes or controversies arising under, out of, or in
connection with this

16 

Agreement, including any dispute relating to patent validity or
infringement, shall be resolved by final and binding arbitration in Salt Lake City, Utah
under the rules of the American Arbitration Association, or the Patent Arbitration Rules
if applicable, then obtaining. The arbitrators shall have no power to add to, subtract
from or modify any of the terms or conditions of this Agreement, nor to award punitive
damages. Any award rendered in such arbitration may be enforced by either party in either
the courts of Utah or in the United States District Court for the District of Utah, to
whose jurisdiction for such purposes LICENSOR and LICENSEE each hereby irrevocably
consents and submits. All costs and expenses, including reasonable attorneys’ fees,
of the prevailing party in connection with arbitration of such controversy or claim shall
be borne by the other party. 

        13.2
Notwithstanding the foregoing, nothing in this Article shall be construed to waive any
rights or timely performance of any obligations existing under this Agreement. 

14 - TERMINATION 

        14.1
If LICENSEE shall cease to carry on its business, this Agreement shall terminate upon
notice by LICENSOR. 

        14.2
Should LICENSEE fail to make any payment whatsoever due and payable to LICENSOR hereunder,
LICENSOR shall have the right to terminate this Agreement effective on sixty (60)
days’ notice, unless LICENSEE shall make all such payments to LICENSOR within said
sixty (60) day period. Upon the expiration of the sixty (60) day period, if LICENSEE shall
not have made all such payments to LICENSOR, the rights, privileges and license granted
hereunder shall automatically terminate. 

        14.3
Upon any breach or default of this Agreement by LICENSEE (including, but not limited to,
breach or default under Paragraph 3.3), other than those occurrences set out in Paragraphs
14.1 and 14.2 hereinabove, which shall always take precedence in that order over any
breach or default referred to in this Paragraph 14.3, LICENSOR shall have the right to
terminate this Agreement and the rights, privileges and license granted hereunder
effective on sixty (60) days’ notice to LICENSEE. Such termination shall become
automatically effective unless LICENSEE shall have cured any such material breach or
default prior to the expiration of the sixty (60) day period. 

        14.4
LICENSEE shall have the right to terminate this Agreement at any time on six (6)
months’ notice to LICENSOR, and upon payment of all amounts due LICENSOR through the
effective date of the termination. 

        14.5
Upon termination of this Agreement for any reason, nothing herein shall be construed to
release either party from any obligation that matured prior to the effective date of such
termination; and 

17 

Articles 1, 2.1, 4.2, 4.4, 9, 10, 11, 13, 14.5, 14.6, and 16 shall
survive any such termination. LICENSEE and any SUBLICENSEE thereof may, however, after the
effective date of such termination, sell all LICENSED PRODUCTS, and complete LICENSED
PRODUCTS in the process of manufacture at the time of such termination and sell the same,
provided that LICENSEE shall make the payments to LICENSOR as required by Article 4 of
this Agreement and shall submit the reports required by Article 5 hereof. 

        14.6
Upon termination of this Agreement for any reason, any SUBLICENSEE not then in default
shall have the right to seek a license from LICENSOR, LICENSOR agrees to negotiate such
licenses in good faith under reasonable terms and conditions. 

15 - PAYMENTS, NOTICES
AND OTHER COMMUNICATIONS 

        Any
payments, notice or other communication pursuant to this Agreement shall be sufficiently
made or given on the date of mailing if sent to such party by certified first class mail,
return receipt requested, postage prepaid, addressed to it at its address below or as it
shall designate by written notice given to the other party:  

In the case of LICENSOR:

 

Director

Technology Transfer Office

University of Utah

615 Arapeen Dr., Suite 110

Salt Lake City, UT 84108

With a copy to: 

OFFICE OF GENERAL COUNSEL

University of Utah

309 Park Building

Salt Lake City, Utah 84112

In
the case of LICENSEE: 

General Counsel

Nutriscan, Inc.

75 West Center Street

Provo, UT 84601

18 

16 - MISCELLANEOUS
PROVISIONS 

        16.1
All disputes arising out of or related to this Agreement, or the performance, enforcement,
breach or termination hereof, and any remedies relating thereto, shall be construed,
governed, interpreted and applied in accordance with the laws of the State of Utah,
U.S.A., except that questions affecting the construction and effect of any patent shall be
determined by the law of the country in which the patent shall have been granted. 

        16.2
The parties hereto acknowledge that this Agreement sets forth the entire Agreement and
understanding of the parties hereto as to the subject matter hereof, and shall not be
subject to any change or modification except by the execution of a written instrument
signed by the parties. 

        16.3
The provisions of this Agreement are severable, and in the event that any provisions of
this Agreement shall be determined to be invalid or unenforceable under any controlling
body of the law, such invalidity or unenforceability shall not in any way affect the
validity or enforceability of the remaining provisions hereof. 

        16.4
LICENSEE agrees to mark the LICENSED PRODUCTS sold in the United States with all
applicable United States patent numbers. All LICENSED PRODUCTS shipped to or sold in other
countries shall be marked in such a manner as to conform with the patent laws and practice
of the country of manufacture or sale. 

        16.5
The failure of either party to assert a right hereunder or to insist upon compliance with
any term or condition of this Agreement shall not constitute a waiver of that right or
excuse a similar subsequent failure to perform any such term or condition by the other
party. Any waiver must be in writing acknowledged by both parties. 

19 

IN
WITNESS WHEREOF, the parties have duly executed this Agreement the day and year set forth
below. 

			
	UNIVERSITY OF UTAH
RESEARCH FOUNDATION	 	NUTRISCAN, INC.	 	 	 
	  	 
	  	 
	By         /s/ Raymond Gesteland	 	By         /s/ Truman Hunt	 
	Name    Raymond Gesteland	 	Name    Truman Hunt	 		 
	Title      President	 	Title      Chief Executive Officer	 		 
	Date      March 7, 2002	 	Date      March 7, 2002	 

APPENDIX A 

PATENT RIGHTS on the
EFFECTIVE DATE 

UNITED STATES PATENT
RIGHTS 

	University of
Utah Case No. U-2612:	  	
NONINVASIVE  DETECTION  AND  MAPPING  OF  CHEMICAL  SUBSTANCES  IN THE  SKIN AND
SKIN-RELATED MALIGNANCIES [Inventors:  Nikita B. Katz, Paul S. Bernstein, Robert
W. McClane and Werner Gellermann]

					
	Country	 	Appl. No.	 	File Date	 	Patent No.	 	Issue Date	 	Patent No.	 
	US	 	335,932	 	06/18/99	 	 	 	 	 	Pending	 
	PCT	 	PCT/US00/07745	 	03/22/00	 	 	 	 	 	Pending	 

INTERPRETIVE
MEMORANDUM OF UNDERSTANDING

        THIS
INTERPRETIVE MEMORANDUM OF UNDERSTANDING is made this November 30, 2001, by and
between the UNIVERSITY OF UTAH RESEARCH FOUNDATION (“Licensor”), CARODERM, INC.,
a Utah corporation (“Carodrem”) and NUTRISCAN, INC., a Utah corporation
(“Nutriscan”). 

RECITALS

        A.              The
     Licensor holds a patent, U.S. Patent No. 6,205,354,  issued March 20, 2001,
to certain  technology  involving a noninvasive  measurement  of  carotenoids in
human skin (the “Licensed Technology”). 

        B.    
     The Licensor  previously  granted an exclusive  license to Nutriscan,  L.C.
under that certain  Patent  License  Agreement  dated June 29, 2000, and amended
March 13, 2001 (the “Nutriscan  License”) and the exclusive license to
Spectrotek, L.C. under that certain Patent License Agreement dated June 29, 2000
(the “Spectrotek License”) for certain limited use and applications of
the  Licensed  Technology  ( the  license  are  collectively  referred to as the
“Licenses”). 

        C.
                The Spectrotek License subsequently has been assigned in its
entirety to Caroderm. The Nutriscan License subsequently has been assigned in its entirety to
               Nutriscan in connection with the conversion of Nutriscan, L.C. from a limited
               liability company to a corporation. 

        D.
                It has come to the attention of all parties hereto that there has
arisen                confusion regarding certain terms in the definition of the “Field
of                Use” in each of the Licenses.  

        E.
                It was the Licensor’s and each licensee’s intent
originally to:  

          	a. 	  	
               license to Spectrotek, L.C. under the Spectrotek License the clinical use of the
               Licensed Technology for medical diagnostic purposes, excluding the use of the
               Licenses Technology in connection with the promotion or sale of nutritional
               supplements and other carotenoid-containing products in any manner; 

               

          	b. 	  	
               license to Nutriscan under the Nutriscan License the non-clinical use of the
               Licensed Technology for the promotion and sale of nutritional supplements and
               other carotenoid-containing products; and 

               

          	c. 	  	
               make the Licenses mutually exclusive in that the use of the Licensed Technology
               (i) under the Spectrotek License does not include the use of the Licensed
               Technology in connection with the promotion or sale of nutritional supplements,
               and (ii) under the Nutriscan License does not include the use of the Licensed
               Technology for clinical medical diagnostics. 

               

1 

          	F. 	  	
               It is in the best business judgment of all the parties to encourage and permit
               the exploitation of the Licensed
Technology pursuant to each of the party’s respective Licenses and that in order to
do so, the confusion concerning the respective Fields of Use should be resolved.

               

        Now
Therefore, the parties interpret certain terms in the definition of the Fields of Use in
each License and agree as follows: 

	1. 	  	The
“Field of Use” of each License shall be construed in a mannerconsistent
with
the original intent of the Licensor and the respective licenses as set forth in the
recitals above. 

	  	  	 

	2. 	  	The
term “professional medical community” as used in both  

	  	
Licenses
means the use of the Licensed Technology only in a medical clinical setting for medical
diagnostic purposes. 

	3.  	  	The
term “the promotion and sale of nutritional supplements and other
               carotenoid-containing products to consumer and non-medical professionals”               as
used in both Licenses includes all promotion and sales, through all
               distribution channels whatsoever, of nutritional supplements and other
               carotenoid-containing products because, directly or indirectly, all such
               products are ultimately sold or distributed to consumers.  

	4.  	  	As
a further point of clarification, a doctor or other medical professional who
               also is a distributor of nutritional supplements or other
carotenoid-containing                products for Nutriscan, or its affiliates,
assignees, successors or                sublicensees, could utilize the Licensed
Technology under the Nutriscan License                in connection with the promotion or
sale of nutritional supplements and other                carotenoid- containing products
so long as the Licensed Technology was not used                by such doctor or other
medical professional for medical diagnostic purposes or                in a medical
clinic setting.  

        The
Parties hereto evidence their agreement to the above interpretations by executing this
Interpretive Memorandum of Understanding intending to be bounded thereby. In the event the
foregoing should be determined inconsistent with any of the terms of the Licenses, the
terms of this Interpretive Memorandum of Understanding shall govern and be deemed an
amendment of each of the Licenses. 

2 

NUTRISCAN, INC. 

By:
/s/ Werner Gellerman
Date: December 12, 2001

CARODERM, INC. 

By: /s/
Dallin Bagley

Date: December 12, 2001

UNIVERSITY
OF UTAH RESEARCH FOUNDATION 

By:
/s/ Raymond F. Gesteland
Date: December 14, 2001

3<PAGE>
                                                                   EXHIBIT 10.10

[DATE]

VIA HAND DELIVERY

[Name]
Myogen, Inc.
7575 West 103rd Avenue, Suite 102
Westminster, CO  80021

Re:      Employment and Retention Agreement

Dear [Name]:

In consideration of your continued employment as [Position], Myogen, Inc. (the
"Company") is pleased to offer you the following agreement regarding your
employment with the Company and certain severance benefits (the "Agreement").
This Agreement amends and supersedes any and all prior agreements with respect
to your employment terms and severance benefits, including but not limited to,
that certain Offer Letter dated [date].

         1. EMPLOYMENT. The Company hereby continues to employ you and you
hereby accept such continued employment upon the terms and conditions set forth
herein and agree to perform such duties as are commensurate with your office as
prescribed by the Board of Directors of the Company.

         2. DUTIES. You shall render exclusive, full-time services to the
Company as its [position]. Your responsibilities, title, working conditions,
duties and/or any other aspect of your employment may be changed, added to or
eliminated during your employment at the sole discretion of the Company. During
the term of your employment hereunder, you shall devote your best efforts and
your full business time, skill and attention to the performance of your duties
on behalf of the Company.

         3. COMPENSATION. For all services rendered and to be rendered
hereunder, and for the other agreements by you contained herein, the Company
agrees to pay you, and you agree to accept a salary of [$________] per annum.
Such salary will be subject to review and adjustment on an annual basis in
accordance with the procedures set forth by the Company's Board of Directors or
Compensation Committee of the Board of Directors. Any such salary shall be
payable pursuant to the Company's payroll procedures which may be changed by the
Company from time to time and shall be subject to such deductions or
withholdings as the Company is required to make pursuant to law, or by further
agreement with you. In addition to your base salary, you may be eligible to
receive a bonus pursuant to a bonus plan as may be adopted by the Board of
Directors or the Compensation Committee of the Board of Directors.

                                       1.
<PAGE>

         4. TERMINATION. You and the Company each acknowledge that either party
has the right to terminate your employment with the Company at any time for any
reason whatsoever, with or without cause or advance notice pursuant to the
following:

               (a) TERMINATION BY DEATH OR DISABILITY. In the event you shall
die during the period of your employment hereunder or become permanently
disabled, as evidenced by your inability to carry out your job responsibilities
for a continuous period of six months, your employment and the Company's
obligation to make payments hereunder shall terminate on the date of your death,
or the date upon which, in the sole reasonable determination of the Board of
Directors, you have failed to carry out your job responsibilities for six
months. The Company's ability to terminate you as a result of any disability
shall be to the extent permitted by state and/or federal law.

               (b) VOLUNTARY RESIGNATION. In the event you voluntarily resign
from your employment with the Company (other than for Good Reason as defined
below), the Company's obligation to make payments hereunder shall cease upon
such resignation, except the Company shall pay you (i) any salary earned but
unpaid prior to the resignation and all accrued but unused vacation, and (ii)
any business expenses incurred by you in connection with your performance of
your duties, according to the policies of the Company, that were incurred but
not reimbursed as of the date of resignation. Vesting of any of your stock
options outstanding on the date of resignation shall cease on the date of
resignation. Should you voluntarily resign from your employment with the
Company, you agree to be bound by the provisions of Section 17.

               (c) TERMINATION FOR CAUSE. In the event you are terminated by the
Company for Cause (as defined below), the Company's obligation to make payments
hereunder shall cease upon the date of receipt by you of written notice and
explanation of such termination (the "Date of Termination" for purposes of this
paragraph 4(c)), except the Company shall: pay you any salary earned but unpaid
prior to termination, all accrued but unused vacation and any business expenses
that were incurred but not reimbursed as of the Date of Termination. Vesting of
any stock options outstanding on the Date of Termination shall cease on the Date
of Termination. In the event the Company terminates you for Cause, you agree to
be bound by the provisions of Section 17.

               (d) TERMINATION BY THE COMPANY WITHOUT CAUSE OR RESIGNATION FOR
GOOD REASON. Subject to the terms and conditions of this Agreement, the Company
will provide you with Severance Benefits if (i) the Company terminates your
employment without Cause or (ii) you resign your employment for Good Reason. You
will not be entitled to receive any Severance Benefits if (i) the Company
terminates your employment for Cause, (ii) you resign from your employment with
the Company other than for Good Reason, or (iii) your employment with the
Company terminates as a result of your death or disability. In addition, to the
extent that any federal, state or local laws, including, without limitation,
so-called "plant closing" laws, require the Company to give advance notice or
make a payment of any kind to you because of your involuntary termination due to
a layoff, reduction in force, plant or facility closing, sale of business,
change of control, or any other similar event or reason, the Severance Benefits
payable under this Agreement shall either be reduced proportionately, such that
the total amounts paid you do not exceed the amounts specified herein, or
eliminated. The Severance Benefits provided

                                       2.
<PAGE>

under this Agreement are intended to satisfy any and all statutory obligations
that may arise out of your involuntary termination of employment for the
foregoing reasons.

         5. DESCRIPTION OF SEVERANCE BENEFITS. For purposes of this Agreement,
"Severance Benefits" are defined as:

               (a) severance pay (the "Severance Pay") equivalent to (i) if a
Corporate Transaction occurs and as of, or within thirteen (13) months after the
effective time of such Corporate Transaction you become entitled to receive
Severance Benefits, [eighteen / twelve] months of your Base Salary (as defined
below) in effect as of your last day of full-time employment with the Company
or, (ii) if a Corporate Transaction has not occurred and you become entitled to
receive Severance Benefits, [twelve/six] months of your Base Salary (as defined
below) in effect as of your last day of full-time employment with the Company.
The date you are notified that your employment with the Company is being
terminated without Cause or the date you notify the Company that you are
terminating your employment for Good Reason, shall be referred to herein as the
"Notice Date." The Severance Pay will be paid in a single lump sum cash payment
within seven days after the effective date of the release described below, and
will be subject to standard payroll deductions and withholdings;

               (b) reimbursement of your out of pocket costs to continue your
group health insurance benefits (and dependent coverage, if applicable) under
COBRA at substantially the same level of coverage in effect immediately prior to
the Notice Date for [twelve/six] months following the last day of the month in
which your Notice Date occurs, payable in a single lump sum, whether or not you
elect or are eligible to receive COBRA; provided, that even if you do not elect
or are not eligible to receive COBRA, you shall receive the equivalent of such
out of pocket costs.

To receive any of the Severance Benefits, you must first sign and date a general
release of claims in favor of the Company in the form attached hereto as Exhibit
A (the "Release"). Such Release shall not be signed or dated until the Notice
Date, or three days thereafter.

         6. PARACHUTE PAYMENTS.

               (a) If any payment or benefit you would receive pursuant to a
Corporate Transaction from the Company or otherwise ("Payment") would (i)
constitute a "parachute payment" within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the "Code"), and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code (the
"Excise Tax"), then such Payment shall be reduced to the Reduced Amount. The
"Reduced Amount" shall be either (x) the largest portion of the Payment that
would result in no portion of the Payment being subject to the Excise Tax or (y)
the largest portion, up to and including the total, of the Payment, whichever
amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in your receipt, on an after-tax basis, of
the greater amount of the Payment notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax. If a reduction in payments or
benefits constituting "parachute payments" is necessary so that the Payment
equals the Reduced Amount, reduction shall occur in the following order unless
you elect in writing a different order (provided,

                                       3.
<PAGE>

however, that such election shall be subject to Company approval if made on or
after the date on which the event that triggers the Payment occurs): reduction
of cash payments; cancellation of accelerated vesting of stock awards; reduction
of employee benefits. In the event that acceleration of vesting of stock award
compensation is to be reduced, such acceleration of vesting shall be cancelled
in the reverse order of the date of grant of your stock awards unless you elect
in writing a different order for cancellation.

               (b) The accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the Corporate Transaction
shall perform the foregoing calculations. If the accounting firm so engaged by
the Company is serving as accountant or auditor for the individual, entity or
group effecting the Corporate Transaction, the Company shall appoint a
nationally recognized accounting firm to make the determinations required
hereunder. The Company shall bear all expenses with respect to the
determinations by such accounting firm required to be made hereunder.

               (c) The accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting
documentation, to the Company and you within fifteen calendar days after the
date on which your right to a Payment is triggered (if requested at that time by
the Company or you) or such other time as requested by the Company or you. If
the accounting firm determines that no Excise Tax is payable with respect to a
Payment, it shall furnish the Company and you with an opinion reasonably
acceptable to you that no Excise Tax will be imposed with respect to such
Payment. Any good faith determinations of the accounting firm made hereunder
shall be final, binding and conclusive upon the Company and you.

         7. DESCRIPTION OF CORPORATE TRANSACTION. For purposes of this
Agreement, "Corporate Transaction" is defined as: (i) a sale of substantially
all of the assets of the Company; (ii) a merger or consolidation in which the
Company is not the surviving corporation (other than a merger or consolidation
in which shareholders immediately before the merger or consolidation have,
immediately after the merger or consolidation, greater stock voting power);
(iii) a reverse merger in which the Company is the surviving corporation but the
shares of the Company's common stock outstanding immediately preceding the
merger are converted by virtue of the merger into other property, whether in the
form of securities, cash or otherwise (other than a reverse merger in which
shareholders immediately before the merger have, immediately after the merger,
greater stock voting power); or (iv) any transaction or series of related
transactions in which in excess of 50% of the Company's voting power is
transferred, other than the sale by the Company of stock in transactions the
primary purpose of which is to raise capital for the Company's operations and
activities.

         8. SALARY AND ACCRUED VACATION. On your last date of employment with
the Company, the Company will pay to you all of your accrued salary, and all of
your accrued but unused vacation earned through your last day of employment.

         9. DEFINITION OF BASE SALARY. For purposes of this Agreement, "Base
Salary" means your base salary as of the Notice Date, excluding the following:
any type of bonus payments, commissions, incentive payments or any other similar
remuneration paid directly to you, or any

                                       4.
<PAGE>

other income received in connection with stock options, contributions made by
the Company under any employee benefit plan, or similar items of compensation.

         10. DEFINITION OF CAUSE. For purposes of this Agreement, "Cause" means
that you have committed or engaged in: willful misconduct, gross negligence,
charges of theft, fraud, or other illegal or dishonest conduct which are
considered to be harmful to the Company by the majority vote of its Board of
Directors; refusal or unwillingness to perform material job duties, material
failure to adequately perform job duties, habitual absenteeism, substantial
dependence on alcohol or any controlled substance, sexual or other forms of
illegal harassment, conduct that reflects adversely upon, or making any remarks
disparaging of the Company, its Board, officers, directors, advisors,
executives, affiliates or subsidiaries; insubordination; any willful act that is
likely to and which does, in fact, have the effect of materially injuring the
reputation, business, or business relationship of the Company, violation of
fiduciary duty, violation of any duty of loyalty, material breach of any
material term of this Agreement, including your Employee Proprietary Information
and Inventions Agreement (a copy of which is attached hereto as Exhibit B), and
any matters of similar gravity to any of the above enumerated grounds.
Termination with Cause must be made with written notice to you. In the event you
are terminated for Cause you will not be entitled to the Severance Benefits, pay
in lieu of notice, vesting of any shares under any option plan, vesting of any
unrestricted shares, or any other such compensation set forth herein, but you
will be entitled to all compensation, benefits and unreimbursed expenses accrued
through the date of termination. You and the Company acknowledge that this
definition of "Cause" is not intended and does not apply to any aspect of the
relationship between the Company and any of its employees, including you, beyond
determining your eligibility for the Severance Benefits.

         11. DEFINITION OF GOOD REASON. For purposes of this Agreement, "Good
Reason" shall mean (i) relocation of your place of work greater than twenty-five
miles from your current work location; (ii) a decrease in compensation of more
than fifteen percent; or (iii) the Company unilaterally makes significant
detrimental changes to your job responsibilities.

         12. AT-WILL EMPLOYMENT. Nothing in this Agreement alters the at-will
nature of your employment relationship with the Company. Subject to the terms of
this Agreement, either you or the Company may terminate your employment
relationship at any time, with or without Cause or advance notice.

         13. RETURN OF COMPANY PROPERTY. By the date specified by the Company in
its sole discretion, you agree to return to the Company all Company documents
(and all copies thereof) and other Company property which you have had in your
possession at any time prior thereto, including, but not limited to, Company
files, notes, drawings, records, business plans and forecasts, financial
information, specifications, computer-recorded information, tangible property
(including, but not limited to, computers, pagers, cellular phones and personal
digital assistants), credit cards, entry cards, identification badges and keys;
and, any materials of any kind which contain or embody any proprietary or
confidential information of the Company (and all reproductions thereof).

         14. PROPRIETARY INFORMATION OBLIGATIONS. Both during and after your
employment you will refrain from any use or disclosure of the Company's
proprietary or confidential

                                       5.
<PAGE>

information or materials. In addition, you hereby acknowledge your continuing
obligations under your Employee Proprietary Information and Inventions Agreement
not to use or disclose any confidential or proprietary information of the
Company without prior written authorization from a duly authorized
representative of the Company.

         15. CONFIDENTIALITY. The provisions of this Agreement shall be held in
strictest confidence by you and the Company and shall not be publicized or
disclosed in any manner whatsoever; provided, however, that: (a) you may
disclose this Agreement to your immediate family; (b) the parties may disclose
this Agreement in confidence to their respective attorneys, accountants,
auditors, tax preparers, and financial advisors; (c) the Company may disclose
this Agreement as necessary to fulfill standard or legally required corporate
reporting or disclosure requirements; and (d) the parties may disclose this
Agreement insofar as such disclosure may be necessary to enforce its terms or as
otherwise required by law. Any willful and material violation of this provision
of this Agreement will nullify the Company's obligations to provide to you the
Severance Benefits.

         16. NON-DISPARAGEMENT. Both during and after your employment with the
Company, you and the Company agree not to disparage the other party, and you
agree not to disparage the Company's officers, directors, employees,
shareholders and agents, in any manner likely to be harmful to them or their
business, business reputation or personal reputation; provided that both you and
the Company shall respond accurately and fully to any question, inquiry or
request for information when required by legal process. Any willful and material
violation of this provision of this Agreement will nullify the Company's
obligations to provide to you the Severance Benefits.

         17. NON-COMPETITION AND NON-SOLICITATION. You acknowledge that you are
a member of executive and management personnel at the Company. You further
acknowledge that during your employment at the Company, you have been and will
be privy to extremely sensitive, confidential and valuable commercial
information, which constitutes trade secrets belonging to the Company, the
disclosure of which information and secrets would greatly harm the Company.

               (a) COVENANT NOT TO COMPETE. As a reasonable measure to protect
the Company from the harm of such disclosure and use of its information and
trade secrets against it, you agree to the following as part of this Agreement:
you agree that you shall not, individually or together with others, directly or
indirectly, for a period of [twelve / six] months (or such longer period of time
as you may receive the equivalent amount of your Base Salary as Severance Pay
pursuant to the terms of this Agreement) following the termination of your
employment with the Company, for any reason, whether as an owner, consultant,
partner, joint venturer, stockholder, broker, agent, financial agent, principal,
trustee, licensor or in any other capacity whatsoever (i) own, manage, operate,
join, control, finance or participate in the ownership, management, operation,
control or financing of, or be connected as an officer, director, executive,
partner, principal, agent, representative, consultant, licensor, licensee or
otherwise with, any business or enterprise which is a Conflicting Organization
(as defined in Exhibit C attached hereto), and (ii) sell or assist in the
design, development, manufacture, licensing, sale, marketing or support of any
Conflicting Product or Service (as defined in Exhibit C attached hereto), or
engage in any other manner, in any Conflicting Organization. The Company and you
agree that no more than

                                       6.
<PAGE>

1% of the outstanding voting stock of a publicly traded company or any stock
currently owned by you shall not constitute a violation of this paragraph. You
further agree and acknowledge that because of the nature and type of business
that the Company engages in, the geographic scope of the covenant not to compete
shall include all counties, cities, and states of the United States and any
other country, territory or region in which the Company conducts business and
that such a geographic scope is reasonable. Nothing in this paragraph should be
construed to narrow your obligations imposed by any other provision herein, any
other agreement, law or other source.

               (b) NON-SOLICITATION COVENANT. As a reasonable measure to protect
the Company from the harm of such disclosure and use of its information and
trade secrets against it, you agree to the following as part of this Agreement:
you acknowledge and agree that information regarding employees of the Company is
Proprietary Information (as defined in your Employee Proprietary Information and
Inventions Agreement), including without limitation; information regarding the
skills and knowledge of employees of the Company; information regarding any
past, present, or intended compensation, benefits, policies and incentives for
employees of the Company; and information regarding the management and reporting
structure of the Company. You agree that you will not, individually or with
others, directly or indirectly (including without limitation, individually or
through any business, venture, proprietorship, partnership, or corporation in
which they control or own more than a five percent interest, through any agents,
through any contractors, through recruiters, by their successors, by their
employees, or by their assigns) solicit, or induce any employee of the Company
to leave the Company during the period you are employed by the Company, and for
a period of twelve months (or such longer period of time as you may receive the
equivalent amount of your Base Salary as Severance Pay pursuant to the terms of
this Agreement) following the termination of your employment with the Company.
You further agree that for twelve months (or such longer period of time as you
may receive the equivalent amount of your Base Salary as Severance Pay pursuant
to the terms of this Agreement) following the separation, resignation or
termination of your employment with the Company, you will not, either directly
or indirectly, solicit or attempt to solicit any customer, client, supplier,
investor, vendor, consultant or independent contractor of the Company to
terminate, reduce or negatively alter his, her or its relationship with the
Company; provided, however, nothing contained herein shall prevent you from
hiring any such employee who responds to a general hiring program conducted in
the ordinary course of business not specifically directed to such employees or
who approaches you on a wholly unsolicited basis. The geographic scope of the
covenants in this paragraph 17(b) shall include any city, county, or state of
the United States and any such other city, territory, country, or jurisdiction
in which the Company does business. Nothing in this paragraph should be
construed to narrow the your obligations imposed by any other provision herein,
any other agreement, law or other source.

               (c) REASONABLE. You agree and acknowledge that the time
limitation and the geographic scope on the restrictions in this paragraph 17 and
its subparts are reasonable. You also acknowledge and agree that the limitation
in this paragraph 17 and its subparts is reasonably necessary for the protection
of the Company, that through this Agreement you shall receive adequate
consideration for any loss of opportunity associated with the provisions herein,
and that these provisions provide a reasonable way of protecting the Company's
business value which was imparted to you. In the event that any term, word,
clause, phrase, provision, restriction, or section of this paragraph 17 of this
Agreement is more restrictive than permitted by the law of

                                       7.
<PAGE>

the jurisdiction in which the Company seeks enforcement thereof, the provisions
of this Agreement shall be limited only to the extent that a judicial
determination finds the same to be unreasonable or otherwise unenforceable.
Moreover, notwithstanding any judicial determination that any term, word,
clause, phrase, provision, restriction, or section of this Agreement is not
specifically enforceable, the Company and you intend that the Company shall
nonetheless be entitled to recover monetary damages as a result of any breach
hereof.

               (d) LEGAL AND EQUITABLE REMEDIES. In view of the nature of the
rights in goodwill, employee relations, trade secrets, and business reputation
and prospects of the Company to be protected under this paragraph 17 of this
Agreement, you understand and agree that the Company could not be reasonably or
adequately compensated in damages in an action at law for your breach of your
obligations (whether individually or together) hereunder. Accordingly, you
specifically agree that the Company shall be entitled to temporary and permanent
injunctive relief, specific performance, and other equitable relief to enforce
the provisions of this paragraph 17 of this Agreement and that such relief may
be granted without the necessity of proving actual damages, and without bond.
You acknowledge and agree that the provisions in this paragraph 17 and its
subparts are essential and material to this Agreement, and that upon breach of
this paragraph 17 by you, the Company is entitled to withhold providing payments
or consideration, to equitable relief to prevent continued breach, to recover
damages and to seek any other remedies available to the Company. This provision
with respect to injunctive relief shall not, however, diminish the right of the
Company to claim and recover damages or other remedies in addition to equitable
relief.

               (e) EXTENSION OF TIME. In the event that you breach any covenant,
obligation or duty in this paragraph 17 or its subparts, any such duty,
obligation, or covenants to which you and the Company agreed by this paragraph
17 and its subparts shall automatically toll from the date of the first breach,
and all subsequent breaches, until the resolution of the breach through private
settlement, judicial or other action, including all appeals. The duration and
length of your duties and obligations as agreed by this paragraph 17 and its
subparts shall continue upon the effective date of any such settlement, or
judicial or other resolution.

The provisions of this paragraph 17 shall supersede any prior understanding or
agreement between the Company and you with regard to the subject matter of this
paragraph 17, including the Proprietary Information and Inventions Agreement
attached hereto as Exhibit B.

         18. MISCELLANEOUS. This Agreement constitutes the complete, final and
exclusive embodiment of the entire agreement between you and the Company with
regard to your employment terms and Severance Benefits. It is entered into
without reliance on any promise or representation, written or oral, other than
those expressly contained herein, and it supersedes any other such promises,
warranties or representations. This Agreement may not be modified or amended
except in writing signed by you and a duly authorized officer of the Company.
This Agreement will be deemed to have been entered into and will be construed
and enforced in accordance with the laws of the State of Colorado as applied to
contracts made and to be performed entirely within Colorado.

                                       8.
<PAGE>

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       9.
<PAGE>

The Company appreciates your continuing contributions to Myogen, Inc. Please
sign below to indicate your understanding and acceptance of this Agreement and
return the signed original to me at your earliest convenience.

Very truly yours,

MYOGEN, INC.

By:
    ----------------------------------------

Name:
      --------------------------------------

Title:
       -------------------------------------

UNDERSTOOD AND AGREED:

---------------------------------            ---------------------------------
[Name]                                       Date

                                      10.
<PAGE>

                                    EXHIBIT A

                                     RELEASE

         In exchange for the Severance Benefits provided under the foregoing
Employment and Retention Agreement with Myogen, Inc. (the "Company"), dated
____________, 2002, and except as set forth in this release, I hereby release,
acquit and forever discharge the Company, its parents and subsidiaries, and
their officers, directors, agents, servants, employees, shareholders,
successors, assigns and affiliates, of and from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorneys fees, damages, indemnities
and obligations of every kind and nature, in law, equity, or otherwise, known
and unknown, suspected and unsuspected, disclosed and undisclosed (other than
any claim for indemnification I may have as a result of any third party action
against me based on my employment with the Company), arising out of or in any
way related to agreements, events, acts or conduct at any time prior to the date
I execute this release, including, but not limited to: all such claims and
demands directly or indirectly arising out of or in any way connected with my
employment with the Company or the termination of that employment, including but
not limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands related
to salary, bonuses, commissions, stock, stock options, or any other ownership
interests in the Company, vacation pay, fringe benefits, expense reimbursements,
severance pay, or any other form of compensation; claims pursuant to any
federal, state or local law or cause of action including, but not limited to,
the federal Civil Rights Act of 1964, as amended; the federal Employee
Retirement Income Security Act of 1974, as amended; the federal Americans with
Disabilities Act of 1990; Colorado anti-discrimination statutes; tort law;
contract law; wrongful discharge; discrimination; fraud; defamation; emotional
distress; and breach of the implied covenant of good faith and fair dealing;
provided, however, that nothing in this paragraph shall be construed in any way
to release the Company from its existing obligations to indemnify me pursuant to
any agreement or applicable law.

I also hereby acknowledge that I am knowingly and voluntarily waiving and
releasing any rights I may have under the federal Age Discrimination in
Employment Act of 1967, as amended ("ADEA"). I also acknowledge that the
consideration given for the release in the preceding paragraph hereof is in
addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA,
that: (A) my waiver and release do not apply to any rights or claims that arise
on or after the date I execute this release; (B) I have the right to consult
with an attorney prior to executing this release; (C) I have twenty-one days to
consider this release (although I may choose to voluntarily execute this release
earlier); (D) I have seven days following my execution of this release to revoke
the release; and (E) this release shall not be effective until the date upon
which the revocation period has expired, which shall be the eighth day after I
execute this release.

This Release constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that is
not expressly stated herein. This Release may only be modified by a writing
signed by both me and a duly authorized officer of the Company. This release
shall be governed and construed under the laws of the State of Colorado. This

<PAGE>

Release shall be effective on the date I sign and return it to the Company,
provided that the Company has also signed it.

I accept and agree to the terms and conditions stated above.

                                          -------------------------------------
                                          [Name]

                                          Date:
                                               --------------------------------

                                          MYOGEN, INC.

                                          By:
                                             ----------------------------------

                                          Name:
                                               --------------------------------

                                          Title:
                                                -------------------------------

<PAGE>

                                    EXHIBIT B

            EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

                             [INTENTIONALLY OMITTED]

<PAGE>

                                    EXHIBIT C

                              CERTAIN DEFINED TERMS

DEFINITION OF CONFLICTING PRODUCT OR SERVICE. As used in this Agreement, a
"CONFLICTING PRODUCT OR SERVICE" means any drug or therapeutic, biological
materials or information relating to biological materials such as cell lines,
antibodies, tissue samples, proteins, nucleic acids and the like, product,
process, formula, system, development tool, application, or service of any
person or organization other than the Company, in existence or under
development, which competes with a drug or therapeutic, biological materials or
information relating to biological materials such as cell lines, antibodies,
tissue samples, proteins, nucleic acids and the like, product, process, formula,
system, development tool, application, or service of the Company, that is being
or has been marketed, under development, or part of the Company's business
development plans at such time as you terminate employment with the Company,
including, but not limited to cardiovascular therapeutics.

DEFINITION OF CONFLICTING ORGANIZATION. As used in this Agreement, a
"CONFLICTING ORGANIZATION" means any person or organization other than the
Company that is engaged in or is about to become engaged in the design,
research, development, production, marketing, distribution, leasing, licensing,
selling, or servicing of a Conflicting Product or Service, including, but not
limited to cardiovascular therapeutics.
<PAGE>
          Terms of Individual Executive Officer Employment Agreements
       (To be read in conjunction with the Form of Employment Agreement)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                        DATE OF OFFER        CURRENT   PARAGRAPH   PARAGRAPH   PARAGRAPH   PARAGRAPH
           NAME               POSITION                      LETTER           SALARY     5(a)(i)     5(a)(ii)      5(b)       17(a)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>                           <C>                    <C>            <C>          <C>        <C>        <C>
                       President, Chief Executive
J. William Freytag     Officer and Chairman              July 13, 1998      $357,000       18           12         12         12
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                       Chief Scientific & Medical
Michael R. Bristow     Officer and Director            August 31, 1998      $100,000       18           12         12         12
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                       Vice President of Finance
                       and Administration, Chief
                       Financial Officer, Treasurer
Joseph L. Turner       and Secretary                       May 2, 2000      $227,000       12            6         6          6
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                       Senior Vice President of
John R. Julian         Commercial Development           April 17, 2000      $246,800       12            6         6          6
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                       Vice President of Research
Richard J. Gorczynski  & Development                 November 10, 1998      $240,700       12            6         6          6
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                       Senior Vice President of
                       Clinical Development and
Michael J. Gerber      Regulatory Affairs             January 29, 2002      $271,300       12            6         6          6
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Andrew D. Dickinson    Vice President and
                       General Counsel                November 5, 2004      $205,000       12            6         6          6
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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