Document:

exv10w98

Exhibit 10.98

Nonemployee Director Compensation Guidelines

          Following a review conducted by the Compensation Committee of changing practices for
compensating outside directors, on February 12, 2008, the Board of Directors approved a new
compensation arrangement for recognizing the service of outside directors and more closely aligning
their overall compensation with the interests of other shareholders. The Chairman of the Board of
Directors will receive an annual fee of $50,000 paid in equal quarterly increments. Each
nonemployee director will continue to receive an annual fee of $25,000 paid in equal quarterly
increments. The chairperson of each standing committee will receive an annual fee of $7,500 and
each non-chair committee member will receive an annual fee of $5,000, payable quarterly. Directors
will not be paid a separate amount for each board or committee meeting attended. Each nonemployee
director who continues to serve beyond an Annual Shareholder Meeting will also receive a stock
option to purchase 55,000 shares granted on the date of each Annual Meeting, with an exercise price
equal to the fair market value of the common stock on the date of grant, and will vest in equal
quarterly increments over a period of one year. In addition, the
Chairman of the Board of Directors, who continues to serve beyond an
Annual Shareholder Meeting, will be granted restricted stock equal to $45,000 on the date of each Annual Meeting. Newly elected
directors joining the Board during the period between shareholder meetings will receive a grant for
a pro rata amount of the 55,000 shares subject to option (reflecting the period of time until the
next annual meeting). These equity grants will be made under the terms of the existing equity
compensation plans. These new arrangements replaced the previous nonemployee director compensation
program. On May 9, 2008, the Board of Directors passed a resolution granting Timothy Mayleben an
incremental $25,000 per annum (payable quarterly) stipend in consideration of his providing on
behalf of the Board ongoing special oversight and advice to the Company on strategic and other
matters, including without limitation financing alternatives, partnership opportunities and other
strategic alternatives.exv10w45

EXHIBIT 10.45

April 30, 2008

Mr. Michael Green

12543 Grevillea Pl.

San Diego, CA 92130

               Re: Offer of Employment

Dear Michael:

It is a pleasure to offer you a regular, full-time exempt position as Chief Financial Officer with
Artes Medical (sometime referred to herein as the “Company”) effective Wednesday, May 7, 2008 which
is subject to approval by the Board of Directors of the Company and expected to be received no
later than May 6, 2008. When you report to work for the first time, you will be given a copy of
the Company’s Employee Handbook to read and sign, and the duties and obligations of the parties
will be contained in that agreement. That document will control in the event of any obligations,
rights or duties which are not set forth here to the contrary.

Your duties and responsibilities have been explained in prior discussions and consist of those
duties and responsibilities customarily performed by a Chief Financial Officer. You will report to
Diane Goostree, President and CEO. Your initial rate of compensation will be $11,538.46 payable
bi-weekly, which when annualized equals $300,000 and is subject to all customary employee taxes and
withholdings.

You also will be eligible to receive an annual performance bonus with the Company’s Annual Bonus
Incentive Plan with a target of 50% of your annual salary. Bonus is based on both Company and
individual performance; hence, actual payments can be more or less than the targeted amount. Bonus
payments are subject to all required payroll withholdings and will be pro-rated for the number of
months employed in any bonus plan year, subject to any required management or Board approval. You
will be provided a copy of the Annual Bonus Incentive Plan.

As an employee you will be eligible for participation in the current Artes Medical employee
benefits:

	 	•	 	Medical Insurance
	 
	 	•	 	Dental Insurance
	 
	 	•	 	Vision Insurance
	 
	 	•	 	Life and Accidental Death and Dismemberment Insurance
	 
	 	•	 	Short Term Disability Insurance
	 
	 	•	 	Long Term Disability Insurance
	 
	 	•	 	Employee Assistance Program
	 
	 	•	 	Business Travel Accident Insurance
	 
	 	•	 	Flexible Spending Accounts
	 
	 	•	 	401(k) Savings Plan covering employee contributions

Current benefit coverage will be effective the first of the month following your date of hire.

 

 

You will be eligible to participate in the Company’s 2006 Equity Incentive Plan (the “Plan”).
Based on your position, you will be entitled to receive an initial incentive stock option award to
purchase 165,000 shares of Artes Medical common stock, subject to approval by the Board of
Directors. Exercise, vesting terms and conditions are determined by the Board of Directors (the
“Board”). Pricing of options will be determined by the price of the stock at the close of market on
the day your options are approved by the Board.

As an employee you will be required to execute and abide by the terms and conditions set forth in
the Company’s Proprietary Information and Inventions Agreement which you will be asked to sign on
your first day of employment, which is attached as Exhibit A.

The employment relationship between Artes Medical and its employees may be terminated by the
employee or Artes Medical at any time, with or without cause or advance notice. This offer is not
intended to create any contractual obligations that in any way conflict with the Company’s policy
of at-will employment. The at-will nature of your employment described by this offer letter shall
constitute the entire agreement between you and Artes Medical concerning the nature and duration of
your employment. Any contrary representations or agreements which may have been made to you are
superseded by this offer. Although your job duties, title, compensation and benefits may change
over time, the at-will term of your employment with Artes Medical can only be changed in writing
signed by you and the President & Chief Executive Officer of the Company.

As an employee of Artes Medical, you will be required to comply with all Company policies and
procedures. In particular, you will be required to familiarize yourself with, and to comply with,
Artes Medical’s policy prohibiting harassment and discrimination and the policy concerning
substance abuse. Violations of these policies may lead to immediate termination of employment.

This offer of at-will employment is contingent upon successful completion of appropriate proof of
eligibility to work in the United States (please bring confirming information with you on your
first day of work) and successful verification of employment and education. In accordance with
company policy, a background check will be performed to confirm your education degrees, prior
employment, motor vehicle record and any possible criminal convictions. We reserve the right, in
our sole discretion, to rescind this offer based upon the results of the background check.

We sincerely hope that you will accept this position and look forward to having you join Artes
Medical. If you wish to accept this offer, please sign below and return the fully executed letter
to us within five (5) business days or this offer expires on May 5, 2008. Please sign below and
return the fully executed letter to us with. You should keep one copy of this letter for your own
records.

Should you need any additional information or assistance, please do not hesitate to call.

Sincerely,

/s/ Diane Goostree

Diane Goostree

President & Chief Executive Officer

cc: Human Resources

enc: Confidentiality Agreement

 

 

ACCEPTANCE OF EMPLOYMENT OFFER

I have read, understand and accept the foregoing terms and conditions of employment.

In consideration for the offer of employment with Artes Medical that is contained in this offer
letter and accepted by me, I acknowledge that the Confidential Information of Artes Medical is a
special, valuable and unique asset of the Company. I agree at all times during my employment with
Artes Medical, and at all times after termination of such employment, not to disclose for any
purpose and to keep in strict confidence and trust all of such Confidential Information. I agree
during and after the period of my employment with Artes Medical not to use, directly or indirectly,
any Confidential Information other than in the course of performing duties as an employee of Artes
Medical nor will I directly or indirectly disclose any Confidential Information or anything
relating to it to any person or entity except, with the Company’s consent, as may be necessary for
the performance of my duties as an employee of Artes Medical. I will also execute and abide by the
terms of Artes Medical’s Proprietary Information and Inventions Agreement.

As further consideration for the offer of employment with Artes Medical that is contained in this
offer letter and accepted by me, I agree that during the term of my employment and for one (1) year
thereafter, I will not encourage or solicit any employee of Artes Medical to leave the Company for
any reason. However, this obligation shall not affect any responsibility I may have as an employee
of the Company with respect to the bona fide hiring and firing of Company personnel.

	 	 	 	 	 
	 	 	 
	Date:  05/03/08 	/s/ Michael Green
 	 
	 	Michael Green 	 
	 	 	 

 

 

	 	 	 	 	 

Exhibit A

ARTES MEDICAL, INC.

PROPRIETARY INFORMATION

AND INVENTIONS AGREEMENT

April 30, 2008

The following confirms and constitutes an agreement (this “Agreement”) between Artes Medical, Inc.,
a Delaware corporation (the “Company”) and me. In consideration of my employment or consulting
relationship with the Company (the “Service Relationship”), I hereby agree as follows:

1. I understand that the Company possesses and will possess Proprietary Information (as defined
herein) which is important to its business. For purposes of this Agreement, “Proprietary
Information” is information that was or will be developed, created, or discovered by or on behalf
of the Company, or which became or will become known by, or was or is conveyed to the Company,
which has commercial value in the Company’s business. “Proprietary Information” includes, but is
not limited to, information about manuals, procedures, client lists (including the identity of the
clients on such lists and any contact and other information compiled by the Company related to such
clients), utilization data, lead lists, trade secrets, source code, object code, computer programs,
designs, technology, ideas, know-how, processes, compositions, data, techniques, improvements,
inventions (whether patentable or not), works of authorship, business and product development
plans, customers and other information concerning the Company’s actual or anticipated business,
research or development, or which is received in confidence by or for the Company from any other
person. I understand that the Service Relationship creates a relationship of confidence and trust
between the Company and me with respect to Proprietary Information.

2. I understand that the Company possesses or will possess “Company Materials” which are important
to its business. For purposes of this Agreement, “Company Materials” are documents or other media
or tangible items that contain or embody Proprietary Information or any other information
concerning the business, operations or plans of the Company, whether such documents have been
prepared by me or by others. “Company Materials” include, but are not limited to, blueprints,
drawings, photographs, charts, graphs, notebooks, client lists (including the identity of the
clients on such lists and any contact and other information compiled by the Company related to such
clients), lead lists, manuals, computer disks, tapes or printouts, sound recordings and other
printed, typewritten or handwritten documents, as well as samples, products and the like.

3. In consideration of the Service Relationship, I hereby agree as follows:

(a) All Proprietary Information and all title, patents, patent rights, copyrights, trade
secret rights, and other intellectual property and rights anywhere in the world
(collectively “Rights”) in connection therewith shall be the sole property of the Company.
I hereby assign to the Company any Rights I may have or acquire in such Proprietary
Information, including Rights to Proprietary Information created or produced by me, or
assigned to me by a third party under a valid assignment, on behalf of the Company and for
the Company’s benefit prior to commencement of the Service Relationship, whether or not
other consideration has been paid for such Rights. At all times, both during the Service
Relationship and after its termination, I will keep in confidence and trust and will not use
or disclose any Proprietary Information or anything relating to it without the prior written
consent of an officer of the Company, except as required in connection with the performance
of my duties for the Company. Disclosure restrictions of this Agreement shall not apply to
any information (i) that is generally known to the public through no fault of mine or (ii)
that I am required to disclose by law or court order; provided, however, that I use diligent
efforts to limit disclosure and provide the Company with advanced notice of such law or
court order requiring notice. I understand that nothing contained herein will prohibit an
employee from disclosing to anyone the amount of his or her wages.

(b) All Company Materials shall be the sole property of the Company. I agree that during my
Service Relationship, I will not remove any Company Materials from the business premises of
the Company or deliver any Company Materials to any person or entity outside the Company,
except as required in connection with the performance of my duties for the Company. I
further agree that, immediately upon the termination of the Service Relationship by me or by
the Company, for any reason (or during the Service Relationship, if so requested by the
Company), I will return, at the Company’s expense, all Company Materials, apparatus,
equipment and other physical

 

 

property, or any reproduction of such property, excepting only (i) my personal copies of
records relating to my compensation; (ii) my personal copies of any materials previously
distributed generally to stockholders of the Company; and (iii) my copy of this Agreement.

(c) I will promptly disclose in writing to an officer of the Company or any person or
persons designated by the Company’s Board of Directors, all “Inventions” (which term
includes improvements, inventions, works of authorship, trade secrets, technology, clinical
protocols, procedures, computer programs, formulas, compositions, ideas, designs, processes,
techniques, know-how and data, whether or not patentable) made or conceived or reduced to
practice or developed by me, either alone or jointly with others, during the term of the
Service Relationship which (i) are made wholly or partially with Proprietary Information of
the Company; or (ii) which are developed partially, or wholly in the course of providing
services pursuant to the Service Relationship; or (iii) relate at the time of conception or
reduction to practice to the Company’s business which involve the use of the Company’s
Proprietary Information.

(d) I agree that all Inventions which I make, conceive, reduce to practice or develop (in
whole or in part, either alone or jointly with others) during the Service Relationship,
which (i) are made wholly or partially with Proprietary Information of the Company; or (ii)
which are developed partially, or wholly in the course of providing services pursuant to the
Service Relationship; or (iii) relate at the time of conception or reduction to practice to
the Company’s business which involve the use of the Company’s Proprietary Information,
shall be the sole property of the Company to the maximum extent permitted by Section 2870 of
the California Labor Code, a copy of which is attached and I hereby assign such Inventions
and all Rights therein to the Company. The Company shall be the sole owner of all Rights in
connection therewith. No assignment in this Agreement shall extend to inventions, the
assignment of which is prohibited by Labor Code Section 2870.

(e) I agree to perform, during and after the Service Relationship, all acts deemed
reasonably necessary or desirable by the Company to permit and assist it, at the Company’s
expense, in evidencing, perfecting, obtaining, maintaining, defending and enforcing the
Company’s Rights and/or my assignment with respect to any Inventions in any and all
countries. Such acts may include, but are not limited to, execution of documents and
assistance or cooperation in legal proceedings. I hereby irrevocably designate and appoint
the Company and its duly authorized officers and agents as my agents and attorneys-in-fact
to act for and in my behalf and instead of me, to execute and file any documents and to do
all other lawfully permitted acts to further the above purposes with the same legal force
and effect as if executed by me.

(f) Any assignment of copyright hereunder includes all rights of paternity, integrity,
disclosure and withdrawal and any other rights that may be known as or referred to as “moral
rights” (collectively “Moral Rights”). To the extent such Moral Rights cannot be assigned
under applicable law and to the extent the following is allowed by the laws in the various
countries where Moral Rights exist, I hereby waive such Moral Rights and consent to any
action of the Company that would violate such Moral Rights in the absence of such consent.
I will confirm any such waivers and consents from time to time as requested by the Company.

(g) To avoid any confusion, I may, at my option, attach hereto a list of existing Inventions
to which I claim ownership as of the date of this Agreement and that I desire to
specifically clarify are not subject to this Agreement.

(h) I represent that my performance of all the terms of this Agreement will not breach any
agreement to keep in confidence proprietary information acquired by me in confidence or in
trust prior to the Service Relationship. I have not entered into, and I agree I will not
enter into, any agreement either written or oral in conflict herewith or in conflict with
the Service Relationship.

4. I agree that this Agreement is not an employment contract and that I have the right to resign
and the Company has the right to terminate the Service Relationship at any time, for any reason,
with or without cause, subject to the terms and conditions set forth otherwise in the agreement
that creates the Service Relationship.

5. I recognize that, in the course of the Service Relationship I will have access to confidential
information regarding the identity of Company clients as well as other client-specific information,
including information regarding contracts with the Company. I therefore agree that during the
Service Relationship and for a period of two (2) years following the cessation of the Service
Relationship, I will not, without the express written permission of the Company, in my individual
capacity or as agent for or representative of another person or entity, directly or indirectly
solicit, encourage, induce or attempt to (i) induce any person who is a customer with a contractual
relationship with the Company to cease doing business with the Company or (ii) employ or retain, or
have or cause any other person or entity to employ or retain, any person who was employed or
retained by the Company or its affiliates while the employee was employed

 

 

by the Company. I agree that a violation of the foregoing non-solicitation obligations will
constitute a material breach of this Agreement.

6. I agree that this Agreement does not purport to set forth all of the terms and conditions of the
Service Relationship, and that as an employee of and/or consultant to the Company I have
obligations to the Company which are not set forth in this Agreement.

7. I agree that my obligations under paragraphs 3(a) through 3(e) and paragraph 3(g) of this
Agreement shall continue in effect after termination of the Service Relationship, regardless of the
reason or reasons for termination, and whether such termination is voluntary or involuntary on my
part, and that the Company is entitled to communicate my obligations under this Agreement to any
future employer or potential employer of mine.

8. I agree that any dispute in the meaning, effect or validity of this Agreement shall be resolved
in accordance with the laws of the State of California without regard to the conflict of laws
provisions thereof. I further agree that if one or more provisions of this Agreement are held to
be illegal or unenforceable under applicable California law, such illegal or unenforceable
portion(s) shall be limited or excluded from this Agreement to the minimum extent required so that
this Agreement shall otherwise remain in full force and effect and enforceable in accordance with
its terms.

9. I acknowledge that any disclosure or unauthorized use of Proprietary Information will constitute
a material breach of this Agreement and cause substantial harm to the Company for which damages
would not be a fully adequate remedy, and, therefore, in the event of any such breach, in addition
to other available remedies, the Company shall have the right to seek injunctive relief to enforce
the terms of this Agreement.

10. Any disagreement between the parties relating to any interpretation, construction, performance
or breach of this Agreement, shall be settled by arbitration to be held in San Diego County,
California, in accordance with the rules then in effect of the American Arbitration Association.
The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision
of the arbitrator shall be final, conclusive and binding on the parties to the arbitration.
Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The Company
and I shall each pay one-half of the costs and expenses of such arbitration, and each of us shall
separately pay our counsel fees and expenses.

11. This Agreement shall be effective as of the date I execute this Agreement and shall be binding
upon me, my heirs, executors, assigns, and administrators and shall inure to the benefit of the
Company, its subsidiaries, successors and assigns.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

12. This Agreement can only be modified by a subsequent written agreement executed by a duly
authorized officer of the Company and me.

	 	 	 	 	 
	 	 	 
	Dated:      5/3/                    , 2008 	/s/ Michael Green
 	 
	 	(Signature) 	 
	 	 	 
	 	  Michael Green
 	 
	 	(Print or Type Name) 	 
	 	 	 
	 

ACCEPTED AND AGREED TO:

ARTES MEDICAL, INC.

	 	 	 	 	 
	 	 	 
	 	By:  	                         /s/ Diane Goostree
 	 	 
	 	 	Diane Goostree 	 	 
	 
	 	Its:      President & CEO 	 	 	 

 

 

	 	 	 	 	 

ATTACHMENT A

Artes Medical, Inc.

5870 Pacific Center Blvd.

San Diego, CA 92121

Ladies and Gentlemen:

      1. The following is a list of Inventions relevant to the subject matter of the services I will
be providing Artes Medical, Inc. (the “Company”) that have been made or conceived or first reduced
to practice by me alone or jointly with others prior to the Service Relationship that I desire to
clarify are not subject to the Company’s Proprietary Information and Inventions Agreement.

	 	 	 	 	 	 	 
	None

	 	 	 	 
	 	No Inventions
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	None

	 	 	 	 	 	See below:
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	None

	 	 	 	 	 	Additional sheets attached
	 

	 	 	 	 	 	 

      2. I propose to bring to the Service Relationship the following materials and documents of a
former employer:

	 	 	 	 	 	 	 
	None

	 	 	 	 	 	No materials or documents
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	None

	 	 	 	 	 	See below:
	 

	 	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	Date:      5/3/08 	/s/ Michael Green
 	 
	 	(Signature) 	 
	 	 	 
	 	                                Michael Green
 	 
	 	(Print or Type Name) 	 
	 	 	 

 

 

	 	 	 	 	 

ATTACHMENT B

Section 2870. Application of provision providing that employee shall assign or offer to assign
rights in invention to employer.

(a) Any provision in an employment agreement which provides that an employee shall assign, or offer
to assign, any of his or her rights in an invention to his or her employer shall not apply to an
invention that the employee developed entirely on his or her own time without using the employer’s
equipment, supplies, facilities, or trade secret information except for those inventions that
either:

                    (1) Relate at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development of the employer;
or

                    (2) Result from any work performed by the employee for his employer.

(b) To the extent a provision in an employment agreement purports to require an employee to assign
an invention otherwise excluded from being required to be assigned under subdivision (a), the
provision is against the public policy of this state and is unenforceable.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]