Document:

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EXHIBIT
10.9

DIRECTOR’S AGREEMENT

     This Agreement is entered into as of June 1, 2004 (the “Effective Date”) between Christopher
Reinhard, an individual resident of the State of California, (the “Director”) and Artes Medical
USA, Inc., a Delaware corporation, with offices at 4660 La Jolla Village Drive, Suite 825, San
Diego, California 92122 (the “Company”).

RECITALS

     A. Director is interested in accepting a position as Chairman and a member of the Board of
Directors of the Company.

     B. The Company desires to engage the services of Director as a member of its Board of
Directors to serve under the terms of this Agreement.

     NOW THEREFORE, in consideration of the recitals and the mutual agreement contained herein,
Director and Company agree as follows:

     1. Election. Director will be elected to the Board of Directors and to the position
of Chairman of the Board of Directors, each effective June 1, 2004, pursuant to applicable law and
the Company’s then-current Certificate of Incorporation, Bylaws and any other applicable
agreements. Director agrees to serve as Chairman and a member of the Company’s Board of Directors
until his successor is elected and qualified, or until his earlier resignation or removal.

     2. Director Obligations. During the term of this Agreement, Director shall have the
following obligations:

          a. Director will devote such time and attention to the affairs of the Company as, in his/her
good faith business judgment, a reasonable and diligent director similarly situated would devote
thereto in the circumstances;

          b. Director will comply fully with a director’s fiduciary duty of care, and will perform
his/her duties as a director and as a member of any Board committee in good faith, in a manner such
director believes to be in the best interests of the Company and its shareholders and with such
care, including reasonable inquiry, as an ordinarily prudent person in a like position would use
under similar circumstances. Provided, however, that if the Company’s Certificate of Incorporation
contains a provision eliminating or limiting the personal liability of a director for monetary
damages for a breach of such duty of care, Director shall be personally liable for such breaches
only to the extent and in the circumstances provided under such provision or applicable law;

          c. Director will comply fully with a director’s fiduciary duty of loyalty, and will fully
disclose to the Board any self-interest in any transaction or opportunity potentially involving the
Company. Without such prior disclosure and prior Company Board approval, Director shall refrain
from participating in any such interested transaction;

          d. Director shall use his/her best efforts to attend all regular and special meetings of the
Board of Directors and any committees to which he is elected;

 

 

          e. Director shall spend a reasonable amount of time for informal consultations with the Chief
Executive Officer of the Company or other directors over the telephone or otherwise; and

          f. Director shall consult, advise and assist in support of the Company’s products and
services.

     3. Company Obligations. During the term of this Agreement, the Company shall have the
following obligations:

          a. The Company will furnish Director with such information and access to its books, records
and personnel to enable Director to perform his/her duties.

          b. Contemporaneously with the execution of this Agreement, the Company and Director will enter
into an Indemnification Agreement in the form attached as Exhibit A. Director will also be
entitled to indemnification as provided and to the extent set forth under the Company’s
then-applicable Certificate of Incorporation and Bylaws, and applicable law;

          c. The Company will immediately add Director to its current Directors’ and Officers’ Liability
insurance policy, and will immediately advise Director of any subsequent changes to such policy;
and

          d. The Company will compensate Consultant as provided in Section 5 below.

     4. Term and Expiration.

          a. This Agreement shall become effective as of the date of Director’s election to the
Company’s Board of Directors and remain in effect until Director’s successor is elected and
qualified, or until his earlier resignation or removal. Director will act as an independent
contractor at all times hereunder and not as an employee of the Company, and Director will have no
authority to, and will not, bind the Company without express written approval from the Company’s
Chief Executive Officer.

          b. Termination of this Agreement upon expiration of the term of this Agreement shall not
affect Director’s right to compensation for expenses incurred or his/her right to indemnification
for acts performed prior to the termination date.

     5. Compensation.

          a. For the services provided by Director hereunder, the Company’s Board of Directors has
approved the grant to Director, of a warrant to purchase up to 650,000 shares of Company Common
Stock, on terms provided in the form of Warrant attached as Exhibit B. Director may receive
additional options as approved by the Board of Directors, such option grants to be made pursuant to
a formal stock option agreement between the Company and
Director, with the exercise price and other terms and conditions of such options will be
governed exclusively by such option agreement.

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          b. If the Company wishes to engage Director for special projects or services, and if Director
agrees to perform such special projects or services, such arrangements shall be summarized in
writing and signed by the Company’s President, with such writing to include the scope of such
services and the compensation therefor.

          c. The Company will reimburse Director for any actual expenses incurred by Director while
rendering services under this Agreement, so long as the expenses are reasonable. Such expenses
include expenses incurred while traveling on the Company’s business or traveling to Board meetings
held outside San Diego County. Director will not be reimbursed for travel expenses for meetings
held in San Diego County. Requests for reimbursement shall be in a form reasonably acceptable to
the Company.

     6. Proprietary Information and Inventions. Director understands and agrees that the
Company possesses and will continue to possess information that has been created, discovered or
developed, or has otherwise become known to the Company or has been provided to the Company by
third parties under obligations of confidentiality, which information has commercial value in the
business in which the Company is engaged. All of such information is hereinafter called
“Proprietary Information.”

          a. All Proprietary Information shall be the sole property of the Company and its assigns, and
the Company and its assigns shall be the sole owner of all patents and other rights in connection
therewith. At all times during his/her services hereunder, and at all times after termination of
such service, Director will keep in confidence and trust all Proprietary Information, and will not
use for his/her own account (or for the benefit of any other person or entity), or disclose any
Proprietary Information or anything relating to it without the prior written consent of the
Company, except as may be necessary in the ordinary course of performing duties as a director
hereunder.

          b. All documents, data, records, apparatus, equipment and other physical property, whether or
not pertaining to Proprietary Information, furnished to Director by the Company or produced by
Director or others in connection with Director’s service shall be and remain the sole property of
the Company and shall be returned promptly to the Company as and when requested by the Company,
except that Director may retain, for archival purposes only, one copy of such material so long as
it is retained in a secured environment. Should the Company not so request, Director shall return
and deliver all such property upon termination of his service as a director for any reason, and
Director will not retain any such property or any reproduction of such property upon such
termination (subject to the archival exception above).

          c. Director will promptly disclose to the Company, or any persons designated by it, all
improvements, inventions, formulae, processes, experimental protocols, techniques, know-how and
data relating to the Company’s current or potential business (collectively “Inventions”), whether
or not patentable, made or conceived or reduced to practice or learned by Director, either alone or
jointly with others, during the period of his/her service. Such Inventions shall be the property
of the Company. Such disclosure shall continue for
one (1) year after termination of this Agreement. Director hereby assigns and agrees to
assign to the Company any Inventions that Director may conceive, make, invent or suggest in
connection with his/her services under this Agreement.

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          d. Except as provided above, other Inventions that are developed by Director and not related
to the Company (or its current or proposed businesses) during the term of this Agreement shall
remain the property of Director.

     7. Prohibited Activities. During the term of this Agreement, Director will not,
directly or indirectly, own, manage, operate, join, control, finance, consult to, advise or
participate in the ownership, management, operation, control or financing of, or be connected as an
officer, director, employee, partner, principal, agent, representative, consultant or otherwise
with, or allow his name to be used in any Annual Report, Quarterly Report, Private Placement
Memorandum or advertisement of, or solicit or attempt to solicit business on behalf of, any person,
business or enterprise which is in actual or potential competition with the Company or any of
Company’s affiliates.

     8. General Provisions.

          a. Entire Agreement. This Agreement contains the complete and entire understanding
and agreement between the parties and supersedes any previous communications, representations or
agreements, verbal or written, related to the subject matter of this Agreement. This Agreement may
only be amended by a writing signed by the party to be charged or its successor(s) in interest.

          b. Severability. In the event any paragraph or provision of this Agreement is held to
be void or unenforceable by a court of competent jurisdiction, the remaining provisions of the
Agreement shall nevertheless be binding upon the parties with the same force and effect as though
the void and unenforceable parts had been severed or deleted.

          c. Conflict of Laws. Although Director’s fiduciary duties will be governed by the law
of the Company’s state of organization, the parties hereto expressly agree that this interpretation
and enforcement of this Agreement shall be governed by, and construed in accordance with, the laws
of the United States and the State of California, applicable to contracts executed and to be
performed entirely within California and by California residents, to the exclusion of any other
applicable body of governing law and without regard to choice of law provisions. In the event that
either party commences a legal action pursuant to this Agreement, the parties hereto agree that the
federal and state courts located in the State of California shall have exclusive jurisdiction over
any such action.

          d. Binding on Others. This Agreement shall be binding upon and shall inure to the
benefit of the parties’ successors and assigns.

          e. Captions. The captions appearing in this Agreement are inserted for convenience
and reference only, and in no way define, limit or describe the scope or intent of this Agreement
or any of the provisions hereof.

          f. No Waiver. The waiver of any term or provision of this Agreement shall not be
construed as a waiver of any other term or provision.

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          g. Condition of Performance. Each party’s performance of its duties and obligations
hereunder is conditioned upon, and subject to, the faithful performance by the other party of such
other party’s own duties and obligations hereunder.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
written first above.

	 	 	 	 	 	 	 
	Date: 6.17.04	 	“Director”	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Christopher Reinhard	 	 
	 	 	 	 	 
	 	 	Christopher Reinhard	 	 
	 
	 	 	 	 	 	 
	Date: June 14th, 2004	 	“Company”	 	 
	 	 	Artes Medical USA, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stefan Lemperle, M.D.	 	 
	 

	 	 	 	 	 	 
	 	 	Its: President & CEO	 	 

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EXHIBIT A

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (the “Agreement”) is made as of June 1, 2004, by and
between Artes Medical USA, Inc., a Delaware corporation (the “Company”), and Christopher
Reinhard (the “Indemnitee”).

RECITALS

     The Company and Indemnitee recognize the increasing difficulty in obtaining liability
insurance for directors, officers and key employees, the significant increases in the cost of such
insurance and the general reductions in the coverage of such insurance. The Company and Indemnitee
further recognize the substantial increase in corporate litigation in general, subjecting
directors, officers and key employees to expensive litigation risks at the same time as the
availability and coverage of liability insurance has been severely limited. Indemnitee does not
regard the current protection available as adequate under the present circumstances, and Indemnitee
and agents of the Company may not be willing to continue to serve as agents of the Company without
additional protection. The Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, and to indemnify its directors, officers and key employees so as
to provide them with the maximum protection permitted by law.

AGREEMENT

     In consideration of the mutual promises made in this Agreement, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the Company and Indemnitee hereby
agree as follows:

     1. Indemnification.

          (a) Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is
or was a party or is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative (other than an action
by or in the right of the Company) by reason of the fact that Indemnitee is or was a director,
officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any
action or inaction on the part of Indemnitee while an officer or director or by reason of the fact
that Indemnitee is or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be unreasonably
withheld) actually and reasonably incurred by Indemnitee in connection with such action, suit or
proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be
in or not opposed to the best interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed
to the best interests of the Company, or, with respect

 

 

to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that
Indemnitee’s conduct was unlawful.

          (b) Proceedings By or in the Right of the Company. The Company shall indemnify
Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened,
pending or completed action or proceeding by or in the right of the Company or any subsidiary of
the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of
any action or inaction on the part of Indemnitee while an officer or director or by reason of the
fact that Indemnitee is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys’ fees) and, to the fullest extent permitted by law, amounts
paid in settlement (if such settlement is approved in advance by the Company, which approval shall
not be unreasonably withheld), in each case to the extent actually and reasonably incurred by
Indemnitee in connection with the defense or settlement of such action or suit if Indemnitee acted
in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company and its stockholders, except that no indemnification shall be made in
respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudicated by
court order or judgment to be liable to the Company in the performance of Indemnitee’s duty to the
Company and its stockholders unless and only to the extent that the court in which such action or
proceeding is or was pending shall determine upon application that, in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses which such court shall deem proper.

          (c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful
on the merits or otherwise in defense of any action, suit or proceeding referred to in Section 1(a)
or Section 1(b) or the defense of any claim, issue or matter therein, Indemnitee shall be
indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by
Indemnitee in connection therewith.

     2. No Employment Rights. Nothing contained in this Agreement is intended to create in
Indemnitee any right to continued employment.

     3. Expenses; Indemnification Procedure.

     (a) Advancement of Expenses. The Company shall advance all expenses incurred by
Indemnitee in connection with the investigation, defense, settlement or appeal of any civil or
criminal action, suit or proceeding referred to in Section l(a) or Section 1(b) hereof (including
amounts actually paid in settlement of any such action, suit or proceeding). Indemnitee hereby
undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be
determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby.

     (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to
his or her right to be indemnified under this Agreement, give the Company notice in writing as soon
as practicable of any claim made against Indemnitee for which indemnification will or could be
sought under this Agreement. Notice to the Company shall be directed to the Chief Executive
Officer of the Company and shall be given in accordance with the provisions of

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Section 12(d) below. In addition, Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

     (c) Procedure. Any indemnification and advances provided for in Section 1 and this
Section 3 shall be made no later than thirty (30) days after receipt of the written request of
Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the
Company’s Certificate of Incorporation or Bylaws providing for indemnification, is not paid in full
by the Company within thirty (30) days after a written request for payment thereof has first been
received by the Company, Indemnitee may, but need not, at any time thereafter bring an action
against the Company to recover the unpaid amount of the claim and, subject to Section 11 of this
Agreement, Indemnitee shall also be entitled to be paid for the expenses (including attorneys’
fees) of bringing such action. It shall be a defense to any such action (other than an action
brought to enforce a claim for expenses incurred in connection with any action, suit or proceeding
in advance of its final disposition) that Indemnitee has not met the standards of conduct which
make it permissible under applicable law for the Company to indemnify Indemnitee for the amount
claimed, but the burden of proving such defense shall be on the Company and Indemnitee shall be
entitled to receive interim payments of expenses pursuant to Section 3(a) unless and until such
defense may be finally adjudicated by court order or judgment from which no further right of appeal
exists. It is the parties’ intention that if the Company contests Indemnitee’s right to
indemnification, the question of Indemnitee’s right to indemnification shall be for the court to
decide, and neither the failure of the Company (including its Board of Directors, any committee or
subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a
determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct required by applicable law, nor an actual determination
by the Company (including its Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such
applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the
applicable standard of conduct.

     (d) Notice to Insurers. If, at the time of the receipt of a notice of a claim
pursuant to Section 3(b) hereof, the Company has director and officer liability insurance in
effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers
in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such
policies.

     (e) Selection of Counsel. In the event the Company shall be obligated under Section
3(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate,
shall be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee,
upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such
notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees of counsel
subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i)
Indemnitee shall have the right to employ counsel in any such proceeding at Indemnitee’s expense;
and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the
Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest
between the Company and Indemnitee in the conduct of any

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such defense or (C) the Company shall not, in fact, have employed counsel to assume the
defense of such proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company.

     4. Additional Indemnification Rights; Nonexclusivity.

     (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby
agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that
such indemnification is not specifically authorized by the other provisions of this Agreement, the
Company’s Certificate of Incorporation, the Company’s Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute, or rule which expands the
right of a Delaware corporation to indemnify a member of its board of directors or an officer, such
changes shall be deemed to be within the purview of Indemnitee’s rights and the Company’s
obligations under this Agreement. In the event of any change in any applicable law, statute or
rule which narrows the right of a Delaware corporation to indemnify a member of its board of
directors or an officer, such changes, to the extent not otherwise required by such law, statute or
rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights
and obligations hereunder.

     (b) Nonexclusivity. The indemnification provided by this Agreement shall not be
deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate
of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested members of
the Company’s Board of Directors, the General Corporation Law of the State of Delaware, or
otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity
while holding such office. The indemnification provided under this Agreement shall continue as to
Indemnitee for any action taken or not taken while serving in an indemnified capacity even though
he or she may have ceased to serve in any such capacity at the time of any action, suit or other
covered proceeding.

     5. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines
or penalties actually or reasonably incurred in the investigation, defense, appeal or settlement of
any civil or criminal action, suit or proceeding, but not, however, for the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments,
fines or penalties to which Indemnitee is entitled.

     6. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that in certain
instances, Federal law or public policy may override applicable state law and prohibit the Company
from indemnifying its directors and officers under this Agreement or otherwise. For example, the
Company and Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”) has
taken the position that indemnification is not permissible for liabilities arising under certain
federal securities laws, and federal legislation prohibits indemnification for certain ERISA
violations. Indemnitee understands and acknowledges that the Company has undertaken or may be
required in the future to undertake with the SEC to submit the question of indemnification to a
court in certain circumstances for a determination of the Company’s right under public policy to
indemnify Indemnitee.

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     7. Officer and Director Liability Insurance. The Company shall, from time to time,
make the good faith determination whether or not it is practicable for the Company to obtain and
maintain a policy or policies of insurance with reputable insurance companies providing the
officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the
Company’s performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance coverage against the
protection afforded by such coverage. In all policies of director and officer liability insurance,
Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights
and benefits as are accorded to the most favorably insured of the Company’s directors, if
Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the
Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or
director but is a key employee. Notwithstanding the foregoing, the Company shall have no
obligation to obtain or maintain such insurance if the Company determines in good faith that such
insurance is not reasonably available, if the premium costs for such insurance are disproportionate
to the amount of coverage provided, if the coverage provided by such insurance is limited by
exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar
insurance maintained by a parent or subsidiary of the Company.

     8. Severability. Nothing in this Agreement is intended to require or shall be
construed as requiring the Company to do or fail to do any act in violation of applicable law. The
Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall
not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as
provided in this Section 8. If this Agreement or any portion hereof shall be invalidated on any
ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify
Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not
have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in
accordance with its terms.

     9. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

     (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way
of defense, except with respect to proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law, but such indemnification or advancement of
expenses may be provided by the Company in specific cases if the Board of Directors finds it to be
appropriate;

     (b) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a court of competent jurisdiction determines that each of the material assertions
made by Indemnitee in such proceeding was not made in good faith or was frivolous;

     (c) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) to the extent such expenses or liabilities have been paid directly to

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Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability
insurance maintained by the Company; or

     (d) Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

     10. Construction of Certain Phrases.

     (a) For purposes of this Agreement, references to the “Company” shall include, in addition to
the resulting corporation, any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger which, if its separate existence had continued, would have
had power and authority to indemnify its directors, officers, and employees or agents, so that if
Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is
or was serving at the request of such constituent corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee
shall stand in the same position under the provisions of this Agreement with respect to the
resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

     (b) For purposes of this Agreement, references to “other enterprises” shall include employee
benefit plans; references to “fines” shall include any excise taxes assessed on Indemnitee with
respect to an employee benefit plan; and references to “serving at the request of the Company”
shall include any service as a director, officer, employee or agent of the Company which imposes
duties on, or involves services by, such director, officer, employee or agent with respect to an
employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the interest of the participants and
beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner
“not opposed to the best interests of the Company” as referred to in this Agreement.

     11. Attorneys’ Fees. In the event that any action is instituted by Indemnitee under
this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be
paid all court costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee
with respect to such action, unless as a part of such action, the court of competent jurisdiction
determines that each of the material assertions made by Indemnitee as a basis for such action were
not made in good faith or were frivolous. In the event of an action instituted by or in the name
of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys’ fees,
incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such action the
court determines that each of Indemnitee’s material defenses to such action were made in bad faith
or were frivolous.

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     12. Miscellaneous.

     (a) Governing Law. This Agreement and all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the State of Delaware, without giving effect to principles of conflict
of law.

     (b) Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire
agreement and understanding of the parties relating to the subject matter herein and merges all
prior discussions between them. No modification of or amendment to this Agreement, nor any waiver
of any rights under this Agreement, shall be effective unless in writing signed by the parties to
this Agreement. The failure by either party to enforce any rights under this Agreement shall not
be construed as a waiver of any rights of such party.

     (c) Construction. This Agreement is the result of negotiations between and has been
reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this
Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be
construed in favor of or against any one of the parties hereto.

     (d) Notices. Any notice, demand or request required or permitted to be given under
this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent
by fax or 48 hours after being sent by nationally-recognized courier or deposited in the U.S. mail,
as certified or registered mail, with postage prepaid, and addressed to the party to be notified at
such party’s address or fax number as set forth below or as subsequently modified by written
notice.

     (e) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument.

     (f) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, legal
representatives and assigns.

     (g) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company to effectively bring suit to enforce such rights.

[Signature Page Follows]

7

 

     The parties hereto have executed this Agreement as of the day and year set forth on the first
page of this Agreement.

	 	 	 	 	 	 	 	 
	 	 	Artes Medical USA, Inc.
	 
	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 
	 

	 	 	 

	 	 
	 
	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 

	 	 	 
	 
	 
	 

	 	 	 	 

	 	 	 
	 

	 	Fax Number:	 	 	 	 
	 

	 	 	 	 	 

	 	 	 

	 	 	 	 	 
	AGREED TO AND ACCEPTED:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Christopher Reinhard	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Fax Number:
	 	 	 	 
	 

	 	 	 	 

8

 

EXHIBIT B

WARRANT

Intentionally omitted.exv10w10

 

EXHIBIT
10.10

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into and becomes effective as of
February 15, 2004 (the “Effective Date”) by and between Artes Medical USA, Inc. (“Employer” or
“Company”) and Russell Anderson (“Employee”).

RECITALS

     A. Employer is a Delaware corporation and is doing business in the State of California.

     B. Both Employer and Employee desire that Employee serve Employer in the capacity of Vice
President, Engineering and Manufacturing and both parties desire to memorialize this relationship
in writing.

     IN CONSIDERATION of the promises and of the mutual covenants contained herein, and for other
good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do
hereby agree as follows:

AGREEMENT

     l. Employment. Employer hereby engages Employee to serve as Vice President,
Engineering and Manufacturing and Employee hereby accepts such engagement upon the terms and
conditions set forth herein.

     2. Term. The term of this Agreement shall begin on the Effective Date stated above
and shall remain in effect for five (5) years, unless terminated pursuant to Section 12. If the
Agreement is not terminated pursuant to Section 12, the Agreement shall continue from year to year
after February 14, 2009, unless either party to the Agreement gives written notice to the other of
a desire to change, amend, modify or terminate the Agreement, at least sixty (60) days prior to the
expiration of the then-current term of the Agreement.

     3. Duties. Employee is employed to serve as the Vice President, Engineering and
Manufacturing and shall perform such duties as are customarily performed by a Vice President,
Engineering and Manufacturing and such other duties as the Chief Executive Officer assigns from
time to time. Employee acknowledges that he will report to the Chief Executive Officer who will be
Employee’s supervisor. As part of Employee’s duties, Employee acknowledges and understands that:
(a) Employee will devote his utmost knowledge and best skill to the performance of his duties; (b)
Employee will devote his full business time to the rendition of such services, subject to absences
for customary vacations and for temporary illness; and (c) Employee will not engage in any other
gainful occupation which requires his personal attention without prior consent of Employer, with
the exception that Employee may personally trade in stock, bonds,
securities, commodities or real estate investments for his own benefit, subject to Section 4
below.

     4. Non-Competition. During the Employment Term and for three (3) months after
Employee’s employment terminates, if it is terminated pursuant to Section 13(b) or 13(c) of this
Agreement, Employee shall not, without the prior written permission of Employer, in the United

1

 

States, its territories and possessions or within an one hundred (100) mile radius of any
Competitive Business of Employer, its affiliates or subsidiaries located outside the United States,
directly or indirectly, (a) enter into the employ of or render any services to any person, firm or
corporation engaged in any Competitive Business (as defined below); (b) engage in any Competitive
Business for his own account; (c) become associated with or interested in any Competitive Business
as an individual, partner, shareholder, creditor, director, officer, principal, agent, employee,
trustee, consultant, advisor or in any other relationship of capacity; (d) employ or retain, or
have or cause any other person or entity to employ or retain, any person who was employed or
retained by Employer or its affiliates while the Employee was employed by Employer or (e) solicit,
interfere with, or endeavor to entice away from Employer any of its customers or sources of supply.
However, nothing in this Agreement shall preclude the Employee from investing his personal assets
in the securities of any Competitive Business if such securities are traded on a national stock
exchange or in the over-the-counter market if such investment does not result in his beneficially
owning, at any time, more than 4.9% of the publicity-traded equity securities of such competitor.
“Competitive Business” shall mean any business or enterprise which (a) designs, sells,
manufactures, markets and/or distributes injectable material for soft tissue augmentation or (b)
engages in any other business in which Employer is involved at any time during the twelve month
period immediately prior to the termination of the Employee’s employment.

     5. Confidentiality. Employee shall not disclose any information relating to Employer,
its employees or customers, and information regarding the affairs or operations of Employer,
including Employer proprietary information, trade secrets, patents and customer lists, to any third
party or parties during or after the term of this Agreement, without the prior written consent of
Employer. In connection herewith, Employee shall execute a Confidentiality and Non-Disclosure
Agreement attached hereto as Exhibit A and incorporated herein by this reference.

     6. Limitations on Authority. Employee understands that he may not enter into any of
the following types of agreements that exceed Twenty Five Thousand Dollars ($25,000.00) in amount,
without the express written approval of the Chief Executive Officer or his designee:

          a. Pledge the credit of Employer or any of its other employees;

          b. Bind the Employer under any contract, agreement, note, mortgage or otherwise;

          c. Release or discharge any debt due to Employer unless the Employer has received the full
amount thereof, and,

          d. Sell, mortgage, transfer or otherwise dispose of any assets of the Employer.

     7. Personnel Policies and Procedures. The Employer shall have the authority to
establish from time to time personnel policies and procedures to be followed by its employees.
Employee agrees to comply with the policies and procedures of the Employer. To the extent any

2

 

provisions in Employer’s personnel policies and procedures differ with the terms of this Agreement,
the terms of this Agreement shall apply.

     8. Compensation.

          a. Salary. For the calendar year 2004, Employee shall be paid an annual base salary,
less income taxes and other applicable withholdings, of One Hundred Thousand Dollars ($100,000.00),
payable in equal monthly payments commencing on February 15, 2004. On or before December 31, 2004,
Employee shall be paid an additional amount of salary in the amount of Sixteen Thousand Six Hundred
and Sixty-six Dollars ($16,666.00). From and after January 1, 2005, Employee shall be paid an
annual base salary, less income taxes and other applicable withholdings, of One Hundred and Twenty
Thousand Dollars ($120,000.00), payable in equal monthly payments.

          b. Stock Options. Employee shall have the right to purchase shares of common stock of
Employer in accordance with the terms of that certain Stock Option Agreement, in the form attached
hereto as Exhibit B and incorporated herein by this reference. The parties acknowledge that no
stock options shall be issued to Employee until Employer’s 2001 Stock Option Plan has been amended
to accommodate the issuance of such stock options, and any such stock options which would have been
available for exercise under the terms and conditions of such Stock Option Agreement had stock
options been issued to Employee as of the date of this Agreement shall vest immediately.

     9. Fringe Benefits. The benefits set forth in this Section 9 shall continue through
the term of the Agreement and any renewals thereof, subject to any modifications thereof which
shall be set forth in writing and signed by the parties; and such benefits shall continue upon
termination for other than good cause (as defined below) until (a) the last day of a three (3)
month period after the effective date of termination or (b) the date upon which Employee accepts
employment from a third party after the effective date of termination, which ever date first
occurs.

          a. Medical, Dental and Long-Term Disability. Employee and his family shall receive
medical insurance, dental insurance and long-term disability benefits as currently provided to
full-time employees of Employer.

          b. Retirement Benefits. Employee shall receive retirement benefits (defined benefit
contribution (401 K) and pension plan) as currently available to full-time employees of Employer.

     10. Vacation and Leave. a. Employee shall be entitled to three (3) weeks of paid
vacation per year and personal leave time. No more than one week of that vacation can be carried
over to the next calendar year. Any additional vacation time will be forfeited.

b. Employee agrees that no significant time off will be taken until employer receives notice from
the FDA that its product Artefill is approved for commercial sale and distribution.

3

 

     11. Expenses. Employer shall reimburse Employee for reasonable and necessary expenses
incurred by Employee in the ordinary course of business for Employer, in accordance with Employer’s
policies and procedures.

     12. Termination. This Agreement and the employment of Employee shall terminate prior
to its expiration date under the following conditions:

          a. The death of Employee;

          b. The permanent disability of Employee (permanent disability shall exist when Employee
suffers from a condition of mind or body that indefinitely prevents his from further performance of
the essential functions of his position with or without reasonable accommodation); or,

           c. Upon receipt by Employee of written notice from Employer that Employee’s employment is
being discharged for “good cause.” The Employer has “good cause” to discharge Employee, without
liability, for the reasons listed below:

               i. Employee fails or refuses to faithfully and diligently perform the usual and customary
duties of his employment which failure or refusal is not cured within thirty (30) days after
written notice thereof is given to Employee; or

               ii. Employee fails or refuses to comply with the policies, standards and/or rules of the
Employer which from time to time may be established; or

               iii. Employee fails or refuses to act in accordance with any lawful direction or order of the
Employer; or

               iv. It is determined that the Employee has conducted himself in an unprofessional, unethical,
illegal or fraudulent manner, or has acted or failed to act in a manner detrimental to the
reputation, character or standing of Employer; including, but not limited to, theft or
misappropriation of Employer’s assets, engaging in unlawful discriminatory or harassing conduct,
the filing of false expense or related reports, or being convicted of a felony; or

               v. Employee violates any term or condition of this Agreement; or

               vi. As a result of a slow-down in business, or similar circumstance, or upon a Change of
Control (defined below), it is determined that Employee’s services are no longer needed; or

          d. Upon receipt by Employee of written notice from Employer that Employee’s employment is
being discharged for “other than good cause;” or

          e. Upon receipt by Employer of written notice from Employee that Employee is resigning, except
as set forth otherwise below. In such event, Employer’s obligations hereunder shall terminate
after paying Employee any compensation owed through the last day he works; or

4

 

          f. By the mutual consent of Employer and the Employee on such terns as they may agree.

     13. Compensation Upon Termination.

          a. Good Cause. In the event Employee is discharged for good cause, he shall receive
two (2) weeks’ notice that his employment is terminated and shall receive compensation at his then
wage level for those two weeks. Employee is entitled to no other severance compensation when he is
terminated for good cause as defined in Section 12(c) above.

          b. For Other Than Good Cause. In the event Employee’s employment is terminated for
other than good cause, he shall receive severance compensation of three (3) months’ salary at his
then-current wage level. Employee is entitled to no other severance compensation when termination
occurs under Section 12(d) above, except when such resignation occurs in connection with a Change
of Control as defined below.

          c. Change of Control. “Change of Control” as used in this Agreement shall mean (a)
the acquisition of Employer by another entity by means of any transaction or series of related
transactions (including, without limitation, any reorganization, merger or consolidation, but
excluding any merger effected exclusively for the purpose of changing the domicile of Employer); or
(b) a sale or exchange of all or substantially all of the assets of the Employer; unless in the
case of transaction described in (a) or (b) above, the shareholders of record of Employer immediately prior to such acquisition or sale will,
immediately after such acquisition or sale (by virtue of securities issued as consideration for
such acquisition or sale or otherwise), hold at least fifty percent (50%) of the voting securities
of the surviving or acquiring entity. Employer will use its best efforts to ensure that the
acquiring or surviving company agrees to the same employment terms as set forth herein. If the
acquiring or surviving company does not agree to the existing employment terms, and Employee
resigns as a result of such Change of Control and the failure of the acquiring company to agree to
these employment terms and conditions, such termination shall be deemed to be “for other than good
cause,” notwithstanding Section 12(d) above, and Employee shall receive the severance compensation
set forth in Section 13(b) above. Payment of any severance pay due hereunder shall be made
immediately prior to the closing or consummation of any transaction which constitutes a Change of
Control. For purposes of this section, any resignation of Employee in connection with the
anticipated merger of Employer and Artes Europe (a foreign entity) shall not result in the payment
of severance benefits and shall not constitute a termination for “other than good cause.”

     14. Arbitration/Sole Remedy for Breach of Agreement. In the event of any dispute
between Employer and Employee concerning any aspect of the employment relationship, including any
disputes relating to termination, all such disputes shall be resolved by binding arbitration before
a single neutral arbitrator pursuant to the following terms. This provision shall supersede any
prior arbitration agreement, policy or understanding between the parties. The parties intend to
revoke any prior arbitration agreement.

          a. Claims Covered by the Agreement. Employee and Employer mutually consent to the
resolution by final and binding arbitration of all claims or controversies (“claims”) that Employer
may have against Employee or that Employee may have against Employer or

5

 

against its officers,
directors, partners, employees, agents, pension or benefit plans, administrators, or fiduciaries,
franchisors, or any parent, subsidiary or affiliated company or corporation (collectively referred
to as “Employer”), relating to, resulting from, or in any way arising out of Employee’s employment
relationship with Employer and/or the termination of Employee’s employment relationship with
Employer, to the extent permitted by law, The claims covered by this Agreement include, but are not
limited to, claims for wages or other compensation due; claims for breach of any contract or
covenant (express or implied); tort claims; claims for discrimination and harassment (including,
but not limited to, race, sex, religion, national origin, age, marital status or medical condition,
disability, or sexual orientation); claims for benefits (except where an employee benefit or
pension plan specifies that its claims procedure shall culminate in an arbitration procedure
different from this one); and claims for violation of any public policy, federal, state or other
governmental law, statute, regulation or ordinance, except claims excluded in the following
section.

          b. Claims Not Covered by the Agreement. Claims Employee may have for workers’
compensation (excluding discrimination claims under workers’ compensation statutes) or unemployment
compensation benefits are not covered by this Agreement. Also not covered are claims by Employer
for injunctive and/or other equitable relief for unfair competition and/or the use and/or
unauthorized disclosure of trade secrets or confidential information, as to which Employee
understands and agrees that Employer may seek and obtain relief from a court of competent
jurisdiction.

          c. Required Notice of Claims and Statute of Limitations. Arbitration may be initiated
by Employee by serving or mailing a written notice to Dr. Stefan Lemperle of Employer. Arbitration
may be initiated by Employer by serving or mailing a written notice to Employee at his/her last
known address. The notice shall identify and describe the nature of all claims asserted and the
facts upon which such claims are based. The written notice shall be served or mailed within the
applicable statute of limitations period set forth by federal or state law.

          d. Arbitration Procedures.

               i. After demand for arbitration has been made by serving written notice under the terms of
Section 142(c) of this Agreement, the party demanding arbitration shall file a demand for
arbitration with the American Arbitration Association (“AAA”) in San Diego, California. The
arbitrator shall be selected from the AAA panel and the arbitration shall be conducted pursuant to
AAA policies and procedures. All rules governing the arbitration shall be the rules as set forth
by AAA.

               ii. The arbitrator shall apply the substantive law of the state of California, or federal law,
or both, as applicable to the claim(s) asserted.

               iii. In the event the arbitrator determines a breach of contract occurred, the parties agree
that any award of contract damages shall not be greater than three (3) months’ wages at Employee’s
then-current rate of pay.

6

 

               iv. Either party may file a motion for summary judgment with the arbitrator under the Federal
Rules of Civil Procedure. The arbitrator is entitled to resolve some or all of plaintiff’s claims
through such a motion.

          e. Arbitration Decision. The arbitrator’s decision will be final and binding. A
party’s right to appeal the decision is limited to grounds provided under applicable federal or
state law.

          f. Arbitration Fees and Costs. Employer shall be responsible for the arbitrator’s
fees and costs. Except as provided by statute, each party shall be responsible for its own
attorneys’ fees.

          g. Waiver of Jury Trial/Exclusive Remedy. Employee and Employer waive any
constitutional right to have any dispute between them covered by the terms of this Agreement
decided by a court of law and/or by a jury in a court proceeding and/or by any administrative
agency, other than those claims subject to Paragraph 14(b).

     15. Successors and Assigns. The rights and obligations of the Employer under this
Agreement shall enure to the benefit of and shall be binding upon the successors and assigns of
Employer. Employee shall not be entitled to assign any of his rights or obligations under this
Agreement.

     16. Governing Law. This Agreement shall be interpreted, construed, governed and
enforced in accordance to the laws of the State of California.

     17. Amendments. No amendment or modification of the terms or conditions of this
Agreement shall be valid unless in writing and signed by the parties hereto.

     18. Separate Terms/Severability. Each term, condition, covenant or provision of this
Agreement shall be viewed as separate and distinct, and in the event that any such term, covenant
or provision shall be held by a court or arbitrator of competent jurisdiction to be invalid,
unenforceable or void, the remaining provisions shall continue in full force and effect.

     19. Waiver. A waiver by either party of a breach of provision or provisions of this
Agreement shall not constitute a general waiver, or prejudice the other party’s right otherwise to
demand strict compliance with that provision or any other provisions in this Agreement.

     20. Notices. Any notice required or permitted to be given under this Agreement shall
be sufficient, if in writing, sent by mail to his residence in the case of Employee, or hand
delivered to the Employee, or to its principal office in the case of the Employer.

     21. Entire Agreement. Employee acknowledges receipt of this Agreement and agrees that
this Agreement (including all exhibits attached hereto) represents the entire Agreement with
Employer concerning the subject matter hereof, and supersedes any previous oral or written
communications, representations, understandings or Agreements with Employer or any agent thereof
Employee understands that no representative of the Employer has been authorized to enter into any
Agreement or commitment with Employee which is inconsistent in any way with the terms of this
Agreement.

7

 

     IN WITNESS HEREOF, the parties have executed this Agreement as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	/s/ Russell Anderson	 	 
	 	 	 	 	 
	 	 	Russell Anderson	 	 
	 
	 	 	 	 	 	 
	 	 	Artes Medical USA, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Dr. Stefan Lemperle
 

     Dr. Stefan Lemperle
	 	 
	 

	 	 	 	     Chief Executive Officer	 	 

8

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