Document:

Agreement with Barry E. Stewart with Respect to rights upon Termination

 Exhibit 10.23 
  

					
	Barry E. Stewart	 	 	 	 
	8884 Grey Hawk Point	 	 	 	 
	Orlando, Florida 32836	 	 	 	August 10, 2004

  

	 	Re:	Agreement with Respect to Rights Upon Termination of Employment 

  

Dear Barry: 
  
 Rotech Healthcare Inc., a Delaware corporation (the “Company” or “Rotech”), is pleased to offer you the following agreement with respect to your rights upon the termination of your employment with
the Company or in the event of the closing of a change of control transaction. 
  
 1. Upon the termination of employment by you for Good Reason or by the Company without Cause (as those terms are defined below), the Company shall: (a) pay to you, with your final paycheck, any base salary or bonus
earned by you but not yet paid as of the date of the termination of your employment; (b) fully reimburse you for all reimbursable expenses; (c) pay to you in a lump sum no later than twenty (20) days after the termination of your employment, an
amount equal to the sum of (i) one hundred fifty percent (150%) of your annual base salary (measured as of the time of the termination of your employment and without mitigation due to any remuneration or other compensation earned by you following
such termination of employment), and (ii) an amount equal to your annual target performance bonus for the year in which your employment is terminated; and (d) provided that you timely elect to continue your medical coverage pursuant to the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”), pay on your behalf the cost of continuing your existing group medical benefits for a period of eighteen (18) months from the date of the termination of your employment. 

 
 2. In the event of the closing of a Change of Control (as the term is
defined below), the Company shall pay to you in a lump sum concurrent with such closing, an amount equal to the sum of (a) one hundred fifty percent (150%) of your annual base salary (measured as of the time of the closing of the Change of Control
transaction), and (b) an amount equal to your annual target performance bonus for the year in which the closing of the Change of Control transaction occurs. In the event of a Change of Control, the payments provided for in this Paragraph 2 shall be
your sole and exclusive benefits. Accordingly, in the event your employment is terminated by the Company or by you at anytime following a Change of Control, for whatever reason, you shall not be entitled to any of the payments or benefits provided
for in Paragraph 1, above unless otherwise provided by any Company policy or applicable law. 
  
 For purposes of this Agreement, a “Change of Control” shall be deemed to have occurred if, after the signing of this letter agreement, there shall have occurred any of the following: (i) any
“person,” as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than the Company, any trustee or other 

 
fiduciary holding securities under an employee benefit plan of the Company or any company affiliated with the Company, or any company owned, directly or
indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, acquires beneficial ownership (as defined under Section 13(d) of the Exchange Act) of voting securities of the Company
and immediately thereafter is a “50% Beneficial Owner.” For purposes of this provision, a “50% Beneficial Owner” shall mean a person who is the “beneficial owner” (as defined under Section 13(d) of the Exchange Act),
directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then-outstanding voting securities; provided, however, that the term “50% Beneficial Owner”
shall not include any person who was a beneficial owner of outstanding voting securities of the Company at the Effective Date (an “Existing Shareholder”), including any group that may be formed which is comprised solely of Existing
Shareholders or any affiliate of an Existing Shareholder to whom voting securities may be transferred if and for so long as the Existing Shareholder remains an indirect beneficial owner of the voting securities following such transfer, unless and
until such time after the signing of this letter agreement any such Existing Shareholder shall have acquired beneficial ownership (other than by means of a stock dividend, stock split, gift, inheritance or receipt of securities in compensation for
individual services as a director or officer of the Company) of any additional voting securities of the Company; (ii) during any period of two (2) consecutive years commencing on or after the signing of this letter agreement, individuals who at the
beginning of such period constitute the Board, and any new director (other than a director designated by a “person” (as defined above) who has entered into an agreement with the Company to effect a transaction described in subsections (i),
(iii) or (iv) of this definition) whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election was previously so approved (the “Continuing Directors”), cease for any reason to constitute at least a majority thereof; (iii) the shareholders of the Company have
approved a merger, consolidation, recapitalization, or reorganization of the Company, or a reverse stock split of any class of voting securities of the Company, or the consummation of any such transaction if shareholder approval is not obtained,
other than any such transaction which would result in at least 50% of the combined voting power of the voting securities of the Company or the surviving entity outstanding immediately after such transaction being beneficially owned by persons who
together beneficially owned at least 80% of the combined voting power of the voting securities of the Company outstanding immediately prior to such transaction with the relative voting power of each such continuing holder compared to the voting
power of each other continuing holder not substantially altered as a result of the transaction; provided that, for purposes of this sub-paragraph 2(iii), such continuity of ownership (and preservation of relative voting power) shall be deemed to be
satisfied if the failure to meet such 50% threshold (or to substantially preserve such relative voting power) is due solely to the acquisition of voting securities by an employee benefit plan of the Company or any company affiliate with the Company,
such surviving entity or a subsidiary thereof; and provided further, that, if consummation of the corporate transaction referred to in this sub-paragraph 2(iii) is subject, at the time of such approval by shareholders, to the consent of any
government or governmental agency or approval of the shareholders of another entity or other material contingency, no Change of Control shall occur until such time as such consent and approval has been obtained and any other material contingency has
been satisfied; or (iv) the shareholders of the Company have approved a plan of complete liquidation 

  

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of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction having
a similar effect); provided that, if consummation of the transaction referred to in this sub-paragraph 2(iii) is subject, at the time of such approval by shareholders, to the consent of any government or governmental agency or approval of the
shareholders of another entity or other material contingency, no Change of Control shall occur until such time as such consent and approval has been obtained and any other material contingency has been satisfied. 
  
 The foregoing notwithstanding, a transaction shall not constitute a Change of
Control if its sole purpose is to change the state of the Company’s incorporation. In addition, an initial or secondary public offering (“IPO”) of the securities of the Company shall not constitute a Change of Control for purposes of
this letter agreement. 
  
 3. Your entitlement to the severance
pay and other termination benefits provided for in either Paragraph 1 or 2 of this letter agreement are conditioned upon your (a) providing a general release of claims in favor of the Company, in a form approved by the Company, of any and all claims
arising out of, relating to or concerning your employment or the termination of your employment with the Company; and (b) material compliance with the restrictive covenants set forth in Paragraphs 6, 7 and 8, below. 
  
 4. Wherever reference is made in this letter agreement to the termination of
your employment by the Company being with or without Cause, “Cause” shall include, without limitation, the termination of your employment with the Company due to the occurrence of one or more of the following events as determined by a
majority vote of the Board of Directors: (a) your conviction or your entry of a plea of guilty or nolo contendere to any felony, (b) your engagement in conduct constituting breach of fiduciary duty, willful misconduct or gross negligence relating to
the Company or the performance of your duties (including intentional acts of employment discrimination or sexual harassment) or fraud which have a significant adverse effect on the Company, (c) your willful failure to follow a reasonable and lawful
written directive of the Chief Executive Officer or the Board of Directors (which shall be capable of being performed by you with reasonable effort), (d) your deliberate and continued failure to perform your material duties, or (e) your intentional
disparagement of the Company or any of its affiliate, subsidiary or parent companies or any of their collective executives, shareholders, directors, or officers in any written or oral communication; provided, however, that you shall receive thirty
(30) days’ prior written notice that the Board of Directors intends to meet to consider your termination for Cause and specifying the actions allegedly constituting Cause. 
  
 5. For purposes of this letter agreement, “Good Reason” shall mean the occurrence of one or more of the following
events: (a) the Company’s failure to pay your base salary, earned bonus or additional earned compensation or its failure to continue your benefits, perquisites or related benefits, (b) a decrease in your base salary, (c) without your written
consent, requiring you to regularly report to work at a facility more than fifty (50) miles from the location of your employment at the time of the execution of this letter agreement, (d) without your written consent, the directing to you of any
duties or responsibilities which are materially inconsistent with your responsibilities, positions and/or titles, (e) without your written consent, a material reduction in your title, duties, positions or responsibilities, or (f) without your
written consent, the failure by the Company to continue in effect any employee benefit or compensation plan 

  

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including, but not limited to, any life insurance plan, health insurance plan and accidental death or disability plan in which you participate unless (1)
such benefit or compensation plan, life insurance plan, health insurance plan or related covenant, or accidental death or disability plan or similar plan or benefit is replaced with a comparable plan in which you will participate or which will
provide you with comparable benefits, or (2) the Company requests that you seek comparable coverage under another such plan(s) and the Company reimburses you in full, on an after-tax basis (taking into consideration all net Federal, State and local
income taxes), for such coverage. In the event you believe Good Reason to exist, then you must provide the Company with written notice no later than ninety (90) days after such event or condition you claim constitutes Good Reason occurs specifying
the bases for your belief that Good Reason exists. If the Company shall not have cured or eliminated the event constituting Good Reason within thirty (30) days after receipt of your written notice, upon expiration of such 30-day period, your
employment hereunder shall automatically be terminated. 
  
 6. By
signing this letter, you acknowledge, confirm and agree that, given your position as a member of the senior management team of Rotech, you will be privy to and put in possession of certain confidential and proprietary information regarding Rotech,
including, but not limited to, plans, strategies, financial and accounting related information, pricing and contracts, customers, billing information, business relationships, budgets, projections and personnel information (collectively,
“Confidential Information”) and that the disclosure or use by you of any such Confidential Information, other than directly for the purposes of fulfilling your job requirements, would cause material, substantial and irreparable damage to
Rotech. Accordingly, you acknowledge and confirm that you have a continuing duty of confidentiality to Rotech and agree that you will hold, during the period of your employment and at all times thereafter, in the utmost and strictest confidence and
will not, without Rotech’s prior written permission, use or disclose (or act so as to cause the use or disclosure of) any Confidential Information. This provision shall survive the termination of your employment with the Company. 
  
 7. You further acknowledge and recognize the highly competitive nature of the
Company’s business and that you will have the opportunity to develop substantial relationships with existing and prospective clients, customers, strategic partners and employees and representatives of the Company during the course of and as a
result of your employment as a member of senior management of the Company. In light of the foregoing, you also covenant and agree, that for a period of one (1) year following termination of your employment with Rotech, whether voluntary or
involuntary, you will not, directly or indirectly, on your own behalf or on behalf of another person or entity, (a) be engaged in any business (as a principal, partner, director, officer, agent, employee, consultant or otherwise), or be financially
interested in any entity or company, that provides or performs any services that directly compete with Rotech, (b) hire or engage, or attempt to hire or engage, on behalf of yourself or any other person or entity, any person known by you to be a
current employee, consultant or representative of Rotech, or (c) intentionally or knowingly suggest, assist in or influence a distributor, source, supplier, customer, client or contractor of Rotech to sever his, her or its business relationship
with, decrease in any material or substantial respect its activity with, or intentionally or knowingly do anything (whether by act of commission or omission) which would be adverse in any material or substantial respect to the interests of Rotech.
This provision shall survive the termination of your employment with Rotech. 
  

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 8. You further agree that at any time upon the request of the Company or at the time of the termination
of your employment for any reason, you will immediately deliver to the Company (and will not keep in your possession, recreate or deliver to anyone else) any and all Confidential Information or other property or materials belonging to the Company,
its successors or assigns including all copies. 
  
 9. You further
acknowledge, and by your signature hereby confirm, that the Company has agreed to provide you with the benefits and payments provided for herein in consideration for your agreement to be bound by the restrictive covenants contained in Paragraphs 6
through 8 of this letter agreement and that such benefits serve as sufficient consideration therefore. 
  
 If the foregoing correctly sets forth our understanding, please sign two (2) copies of this letter and return it to the undersigned, whereupon this letter shall constitute a binding agreement between you and the
Company. 
  

			
	Very truly yours,
	
	Rotech Healthcare Inc.
		
	By:	 	

	Name:	 	Philip L. Carter
	Title:	 	CEO & President

  

	
	Accepted and Agreed:
	
	  

	Barry E. Stewart

  

 5License Agreement Amendment No. 3 Dated March 25, 2005

 Exhibit 10.1 
  
 LICENSE AGREEMENT 
  
 AMENDMENT NO. 3 
  
 THIS AMENDMENT NO. 3 TO THE LICENSE AGREEMENT (“Third Amendment”) is made and entered into effective as of March 25, 2005 (“Third Amendment
Date”) by and between ROCHE PALO ALTO LLC (successor in interest by merger to SYNTEX (U.S.A.) INC.) (“Roche”), having offices at 3431 Hillview Avenue, Palo Alto, California 94304, and CV THERAPEUTICS, INC. (“CVT”), having an
address at 3172 Porter Drive, Palo Alto, California 94304. Capitalized Terms used in the Third Amendment that are not otherwise defined herein shall have the same meanings as such terms are defined in the License Agreement. 
  
 RECITALS 
  
 Roche and CVT entered into the License Agreement effective March 27, 1996 (“License Agreement”) and entered into
two Amendments to the License Agreement effective July 3, 1997 and November 30, 1999, respectively (“Amendments”). The License Agreement as amended by the Amendments and this Third Amendment shall constitute the “Agreement.”

  
 The parties now wish to amend the Agreement to change date of
the payment of the milestones and otherwise amend the Agreement as expressly set forth herein. 
  
 NOW, THEREFORE, in consideration of the mutual promises contained herein, the sufficiency of which is hereby acknowledged, Roche and CVT now wish to amend the Agreement as follows effective as of the Third Amendment
Date: 
  
 1.    Amendment of Sections
5.1(b)(2) and (3).    Sections 5.1(b)(2) and (3) of the License Agreement are hereby amended and replaced in their entirety with the following new Sections 5.1(b)(2) and (3): 
  

	 	(2)	First NDA Payment.    Within thirty (30) days of the first approval of an NDA or equivalent in one of the Major Market Countries (the “First
Approval”), CVT shall pay to Roche Eleven Million United States Dollars (US$11,000,000.00). If the First Approval of an NDA or equivalent in one of the Major Market Countries has not occurred by March 31, 2006, CVT shall pay to Roche by no
later than April 10, 2006 Three Million United States Dollars (US$3,000,000.00). If, after March 31, 2006, CVT receives the First Approval of an NDA or equivalent in one of the Major Market Countries, CVT shall pay to Roche Eight Million United
States Dollars (US$8,000,000.00) within thirty (30) days of such First Approval. 

  

	 	(3)	Second NDA Payment.    In addition to the payment in Section 5.1(b)(2) above, CVT shall pay to Roche within thirty (30) days of the second approval of an
NDA or equivalent in one of the Major Market Countries Nine Million United States Dollars (US$9,000,000.00). 

 2.    Amendment of Section 5.1(b)(5).    Section 5.1(b)(5)
shall be deleted in its entirety. 
  
 3.    Ratification of Changes to Article XIII – Notices.    For the avoidance of doubt, the parties ratify and agree that the original notice provisions under Article XIII of the Agreement
are hereby replaced with the following, which shall apply for purposes of all notices (including notices regarding payments and payments themselves) under the Agreement: 
  

	 	For Roche:	Roche Palo Alto LLC 

	 	    	3431 Hillview Avenue 

	 	    	Palo Alto, California 94304 

	 	    	Attn: General Counsel 

	 	    	Facsimile: (650) 852-1338 

  

	 	And with a copy to:	F. Hoffmann-La Roche Ltd 

	 	    	P.O. Box CH-4070 Basel 

	 	    	Switzerland 

	 	    	Attn: Corporate Law 

	 	    	Facsimile: 41-61-68-81396 

  

	 	For CVT:	CV Therapeutics, Inc. 

	 	    	3172 Porter Drive 

	 	    	Palo Alto, CA 94304 

	 	    	Attn: General Counsel 

	 	    	Facsimile: (650) 858-0388 

  

	 	With a copy to:	Latham & Watkins LLP 

	 	    	135 Commonwealth Drive 

	 	    	Menlo Park, CA 94025 

	 	    	Attn: Alan Mendelson, Esq. 

	 	    	Facsimile: (650) 463-2600 

  
 4.    Full Force and Effect.    This Third Amendment amends the terms of the Agreement and the Amendments
and is deemed incorporated into, and governed by all the other terms of, the Agreement and Amendments. In the event of any conflict between the terms of the Agreement and the Amendments and the terms of this Third Amendment, the terms of this Third
Amendment shall govern. The provisions of the Agreement, as amended by the Amendments and this Third Amendment, remain in full force and effect. 
  
 IN WITNESS WHEREOF, the parties have executed this Third Amendment to be effective as of the Third Amendment Date. 
  

									
	ROCHE PALO ALTO LLC	 	 	 	CV THERAPEUTICS, INC.
					
	By:	 	/s/ Robert B. Stein	 	 	 	By:	 	/s/ Louis G. Lange
					
	Name:	 	Robert B. Stein	 	 	 	Name:	 	Louis G. Lange, M.D., Ph.D.
					
	Title:	 	President	 	 	 	Title:	 	Chairman & CEO

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