Document:

Exhibit 10.38

 

EXECUTION VERSION

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT by and
between Ikaria Holdings, Inc., a Delaware corporation (the “Company”),
and Craig Tooman (the “Executive”), dated as of the 28th day of July, 2010 (this “Agreement”).

 

WHEREAS, the Executive
possesses skills, experience and knowledge that are of value to the Company;
and

 

WHEREAS, the Company desires
to employ the Executive as its Chief Financial Officer, and the Executive is
willing to be employed by the Company, in each case on the terms and conditions
set forth herein.

 

NOW, THEREFORE, in
consideration of the promises and mutual covenants herein contained, the
parties hereto agree as follows:

 

1.              Employment
Period.  The Company shall employ the
Executive, and the Executive shall serve the Company, on the terms and
conditions set forth in this Agreement, for the period commencing on July 26,
2010 (the “Effective Date”), and ending on July 25, 2011 (the “Initial
Term”); provided, however, that commencing on July 26, 2011 and each
annual anniversary of such date (July 26, 2011, and each annual
anniversary thereof, shall hereinafter be referred to as the “Renewal Date”),
unless previously terminated, the Term shall be automatically extended so as to
terminate one year from the applicable Renewal Date (each such one year
renewal, a “Renewal Term,” and the Initial Term together with all Renewal
Terms(s), the “Term”), unless at least ninety (90) days prior to such
Renewal Date the Company or the Executive shall give written notice to the
other party that the Term shall not be so extended.  The Executive’s period of employment pursuant
to this Agreement shall hereinafter be referred to as the “Employment Period.”

 

2.              Position and Duties.

 

(a)           During the Employment Period, the Executive shall serve as
Chief Financial Officer, of the Company, with such duties and responsibilities
as are customarily assigned to such position, and such other duties and
responsibilities not inconsistent therewith as may be assigned to the Executive
from time to time by the Company’s Chief Executive Officer (the “CEO”),
or the Chairman of the Company’s Board of Directors (the “Board”) in the
absence of the CEO.  In such capacity,
the Executive shall report to the Company’s Chief Executive Officer.

 

(b)           During the Employment Period, and excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive shall
devote his full business time and efforts to the business and affairs of the
Company and use his best efforts to carry out such responsibilities faithfully
and efficiently.  During the Employment
Period, the Executive shall not be engaged in any other business activity
without the prior written consent of the Company except for time spent in
managing his personal, financial and legal affairs, engaging in charitable and
civic activities, and serving on boards of directors provided such service on
boards is consented to by the CEO in advance, in each case only if, and to the
extent that, such 

 

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activities do not interfere with
the performance of the Executive’s duties and responsibilities hereunder or
otherwise result in a breach of this Agreement.

 

(c)           The Executive’s services hereunder shall be performed at
the Company’s headquarters in Clinton, New Jersey, subject to such business
travel as may be required from time to time.

 

3.              Compensation.

 

(a)           Base Salary.  During the Employment Period, the Executive
shall receive a base salary (such base salary, as it may be increased from time
to time hereunder, the “Annual Base Salary”) at the annual rate of
$450,000.  The Annual Base Salary shall
be payable in accordance with the Company’s payroll practices as in effect from
time to time, subject to applicable taxes and withholding.  During the Employment Period, the Annual Base
Salary shall be reviewed for possible merit increases at least annually but
shall not be reduced during the Employment Period.  Following an increase in base salary, the
increased base salary shall thereafter become the Executive’s “Annual Base
Salary” for all purposes under this Agreement.

 

(b)           Signing Bonus.  Provided that the Executive continues to be
employed by the Company through the applicable payment date, the Company shall
pay a cash sign-on bonus in the total amount of $215,000, payable in two
installments as follows: (i) on the first payroll payment date following
the Effective Date, $115,000 (less applicable withholdings) and (ii) on
the eighteen month anniversary of the Effective Date, $100,000 (less applicable
withholdings); provided, in the event of the Executive’s termination of
employment by the Company other than for Cause, by the Executive for Good
Reason, or due to the Executive’s death or Disability (each such capitalized
term as defined below), the second such installment of the signing bonus shall
become immediately nonforfeitable and payable in a lump sum subject to the
terms of, and at the time set forth in, Section 5(d) hereof.

 

(c)           Annual Bonus.  For each full calendar year in which the
Executive serves ending during the Employment Period, the Executive shall be
eligible to earn an annual cash bonus payable in accordance with the terms of
the Company’s management incentive program at a target of 50% of Annual Base
Salary, or such higher level established by the Company from time to time (the “Annual
Bonus”).  For the 2010 calendar year,
the Executive’s Annual Bonus will not be pro-rated and will be calculated as
though the Executive worked for the Company for the full calendar year.

 

(d)           Equity Compensation.

 

(i)            Stock Option Grant.   As soon as practicable after the Effective
Date, the Company shall grant the Executive a ten-year option pursuant to the
Company’s 2010 Long-Term Incentive Plan, as amended, to purchase 250,000 shares
of common stock, par value $0.01 per share, of the Company (such shares,
including any securities into which such shares are changed or for which such
shares are exchanged, the “Common Stock”) at a per share exercise price
equal to the fair value of the Common Stock as of the date of grant (as
determined by the Board of Directors of the Company) (the “Option”).  Subject to the provisions of this Agreement,
the Option shares shall vest as follows: 62,500 shares on each of the first
four 

 

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anniversaries of the Effective
Date, and shall include such other terms and conditions consistent with this
Agreement as are set forth in the form of stock option award agreement
furnished to the Executive in connection with this Agreement.

 

(ii)           RSU Grant.            As soon as practicable, but not later than 45 days, after
the Effective Date, the Company shall grant to the Executive restricted stock
units pursuant to the Company’s 2010 Long-Term Incentive Plan, as amended, in
respect of 50,000 shares of Common Stock (the “RSUs”).  Subject to the provisions of this Agreement,
the RSUs shall vest and become non-forfeitable on the first anniversary of the
Effective Date, payable in shares of Common Stock within fifteen (15) days
thereafter, and shall include such other terms and conditions consistent with
this Agreement as are set forth in the form of RSU award agreement, furnished
to the Executive in connection with this Agreement.

 

(e)           Benefits.  During the Employment Period, the Executive
and/or the Executive’s family, as the case may be, shall be provided with such
employee benefits, and under the same terms, as are provided by the Company
from time to time to its executives.  The
Company reserves the right to modify or terminate its benefits plans generally
for employees.

 

(f)            Vacation.  During each year of the Employment Period,
the Executive shall be entitled to paid vacation consistent with the Company’s
practices, policies and programs for its senior executives; provided that the
Executive shall be entitled to no less than four (4) weeks of paid
vacation during each year of the Employment Period.

 

(g)           Business and Entertainment Expenses.  During the
Employment Period, the Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses, incurred by the Executive in
carrying out the Executive’s duties under this Agreement; provided that the
Executive complies with the policies, practices and procedures of the Company
for submission of expense reports, receipts, or similar documentation of such
expenses.

 

4.             Termination of Employment.

 

(a)           Death or Disability.  The Executive’s employment hereunder shall be
terminated automatically by the Company upon the Executive’s death during the
Term.  The Company shall, to the full
extent permitted by law, be entitled to terminate the Executive’s employment
because of the Executive’s Disability (as herein defined) during the Term. “Disability”
means that the Executive has been finally determined to have a permanent
disability under the long-term disability insurance plan of the Company
applicable to the Executive.

 

(b)           By the Company.  The Company may terminate the Executive’s
employment hereunder during the Term for Cause or without Cause.  For purposes of this Agreement, the term “Cause”
shall be defined as: (A) disloyalty or dishonesty which results or is
intended to result in material personal enrichment to Executive at the material
expense of the Company or any of its subsidiaries (including, without
limitation, fraud, embezzlement or dishonesty or breach of business ethics); (B) fraudulent
conduct in connection with the material business or affairs of the Company or
any of its subsidiaries that materially and adversely affects the Company or
any of its subsidiaries; (C) conviction of a felony or any crime involving
moral turpitude (or entering into a plea of nolo contendere with respect to
such crime); (D) gross 

 

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misconduct that materially and
adversely affects the Company; (E) any breach or intended breach of any
Company policies or procedures as in effect from time to time, in each case
constituting a material violation of such policies or procedures, and in each
case causing material harm to the Company; or (F) failure by the Executive
to provide thirty (30) days advance written notice of resignation; provided
that in the case of subsection (E) of this Section 4(b), the Company
shall give written notice to the Executive at least ten (10) days prior to
such termination (“Notice of Termination for Cause”) of the Company’s
intent to terminate, which notice shall set out in detail the ways in which
Executive has materially breached or expressed an intent to breach materially a
Company policy or procedure in such a way as to cause the Company material
harm, and Executive shall have failed to cure such breach prior to the
expiration of ten (10) days following the date on which such notice is
provided to him; and provided further that with respect to the Executive’s
violation of Subsection (E) of this Section 4(b), the Executive shall
have only one opportunity to cure such failure and thereafter may be terminated
immediately in connection with subsequent violations of Subsection (E) of
this Section 4(b).

 

(c)           By the Executive for Good Reason.  The Executive may
terminate the Executive’s employment hereunder during the Term for Good Reason
or other than for Good Reason.  For
purposes of this Agreement, “Good Reason” means that the Company has
engaged in any of the following without the Executive’s consent:

 

A.            any material and adverse change in the Executive’s
position, title or status, any change in the Executive’s job duties, authority
or responsibilities to those of lesser status, or any obligation that the
Executive report other than to the Chief Executive Officer of the Company;

 

B.            any material and adverse breach of this Agreement by the
Company; provided, that any failure of a successor to assume and agree to
perform under this Agreement required by Section 7(c) shall be deemed
to be a material and adverse breach of this Agreement by the Company;

 

C.            relocation of the Company’s headquarters more than fifty
(50) miles from its present location or transfer of Executive to any location
more than fifty (50) miles from the location of the current headquarters; or

 

D.            any material and adverse change in the Executive’s
compensation or benefits;

 

provided,
that, following a Change in Control, any change (in the case of clauses (A) and
(D)) and any breach (in the case of clause (B)), in each case whether or not
material and adverse, shall constitute Good Reason hereunder and (in the case
of clause (A)) a change shall be deemed to have occurred if, following a Change
in Control in which the Company becomes controlled by another entity (a “Parent
Company”) (i) the Executive’s position, title, status, job duties,
authority or responsibilities with the Parent Company are not equivalent to his
position, title, status, job duties, authority and responsibilities with the
Company immediately prior to the Change in Control and/or (ii) the
Executive is obligated to report other than to the Chief Executive Officer of
the Company.  For purposes of this
Agreement, a “Change in Control” shall 

 

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have
occurred if, after the Effective Date, (A) any “Person” (as the term
person is used for purposes of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other
than any Person that includes New Mountain Partners II, L.P., New Mountain Affiliated
Investors II, L.P. or Allegheny New Mountain Partners, L.P. or any of their
affiliates (an “Excluded Person”)), is the “Beneficial Owner” (within
the meaning of Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of more than 50% of the voting capital stock of the Company, (B) any
Person other than an Excluded Person has or obtains the right to elect a
majority of the Board or (C) the Company sells in a single transaction or
series of transactions all or substantially all of its assets; and provided,
that, for avoidance of doubt, an initial public offering of securities of the
Company shall not constitute a Change in Control for purposes of this
Agreement.

 

A termination of employment by the
Executive for Good Reason shall be effectuated by giving the Company written
notice (“Notice of Termination for Good Reason”) of the termination,
setting forth the conduct of the Company that constitutes Good Reason, within
ninety (90) days of the first date on which the Executive has knowledge of such
conduct.  The Executive shall further
provide the Company at least thirty (30) days following the date on which such
notice is provided to cure such conduct. 
Failing such cure, a termination of employment by the Executive for Good
Reason shall be effective on the day following the expiration of such cure
period.

 

(d)           No Waiver.  The failure to set forth any fact or
circumstance in a Notice of Termination for Cause or a Notice of Termination
for Good Reason shall not constitute a waiver of the right to assert, and shall
not preclude the party giving notice from asserting, such fact or circumstance
in an attempt to enforce any right under or provision of this Agreement.

 

(e)           Date of Termination.  The “Date of Termination” means the
date of the Executive’s death, the date on which the Executive is finally
determined to have a Disability, or the date on which the termination of the
Executive’s employment by the Company or by the Executive is effective.

 

5.              Obligations of the Company upon Termination.

 

(a)           Termination without Cause; Termination for Death or
Disability; Termination for Good Reason; or Non-Renewal of the Term.  If either (i) during
the Term, (A) the Company terminates the Executive’s employment, for any
reason other than for Cause, including and limited to Termination without Cause
or Termination for death or Disability, or (B) the Executive terminates
his employment for Good Reason, or (ii) the Executive terminates his
employment at the end of the Term and the Company has previously given notice
to the Executive that the Term will not be extended, then the Company shall pay
the amounts and provide the benefits, subject to and in accordance with Section 5(d) hereof,
in each case as set forth in paragraphs A through F below.

 

A.            The Executive’s earned and accrued but unpaid cash
compensation, in the form of a lump-sum payment, to be paid not later than the
regularly scheduled pay period next following the date on which the termination
becomes effective, which shall equal the sum of (i) any portion of the
Executive’s Annual Base Salary earned through 

 

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the Date of Termination that has
not yet been paid, (ii) any unpaid Annual Bonus that was earned by the
Executive and declared due and owing by the Company, and (iii) any accrued
but unpaid vacation time, in each case subject to applicable taxes and
withholding (the amounts set forth in subclauses (i)-(iii) constitute the “Accrued
Obligations”).  The Company shall
also provide the Executive with any other benefits (other than severance
benefits) to which the Executive is entitled under the Company’s benefit plans
and arrangements as and when due under such plans and arrangements (the “Accrued
Benefits”).

 

B.            A pro rata portion of the Executive’s Annual Bonus in the
form of a lump-sum payment, which shall equal the sum of the Executive’s Annual
Bonus at target, multiplied by the number equal to the sum of any partial and
full months worked by the Executive in the year of termination, divided by the number
twelve (12) (the “Pro Rata Bonus”).

 

C.            Payments, payable in accordance with the Company’s standard
monthly payroll practices and subject to withholding and taxes, of an amount
equal to the sum of (i) the Executive’s Annual Base Salary and (ii) the
greater of the Annual Bonus at the target level and the actual Annual Bonus
most recently paid to the Executive, determined on a monthly basis, for a
period of 12 (twelve) months from the Date of Termination (the “Salary
Continuation Severance Payments”).

 

D.            For twelve (12) months from the Date of Termination, and
subject to the Executive electing COBRA continuation coverage, the Company
shall provide the Executive with medical, dental and vision benefits at
active-employee rates.

 

E.             A lump sum payment of $18,263 in lieu of the annual financial
planning, annual physical and life insurance benefits (the “Benefit Payment”).

 

F.             The unvested portion of any equity compensation granted to
the Executive  shall (whether or not
specified in the grant agreements evidencing
such equity compensation) become immediately vested as to that portion thereof
that would become exercisable in the case of options or vested in the case of
restricted stock units (including the Option and the RSUs) during the period
beginning on the Date of Termination and ending on the first anniversary of the
Date of Termination, treating the Executive’s employment as having continued
during the entirety of such period; provided, that if the Date of Termination
is on or after the date on which a Change in Control occurs, then any equity
compensation granted to the Executive shall (whether or not specified in the
grant agreements evidencing such equity compensation) become fully vested as of
the Date of Termination.

 

(b)           Cause, etc.  If the Executive’s employment is terminated
by the Company for Cause during the Term, or if the Executive terminates his
employment during the Term other than for Good Reason, the Company shall pay
the Executive, in a lump-sum payment (subject to applicable taxes and withholding)
not later than the next regularly scheduled pay period following the Date of
Termination, the Accrued Obligations, and, following the Date of Termination,
the Company shall provide the Executive with the Accrued Benefits as and when
due.

 

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(c)           Termination without Cause; Termination for Death or
Disability; Termination for Good Reason; or Non-Renewal of the Term following a
Change in Control.  If either (i) within eighteen (18)
months following a Change in Control, (A) the Company terminates the
Executive’s employment for any reason other than for Cause, including and
limited to Termination without Cause or Termination for death or Disability, or
(B) the Executive terminates his employment for Good Reason, or (ii) the
Executive terminates his employment at the end of the Term and the Company has
given notice to the Executive within eighteen (18) months following a Change in
Control that the Term will not be extended, then the Company shall, in addition
to the payment and benefits provided for in Sections 5(a)(A) through 5(a)(F) and
subject to and in accordance with Section 5(d), pay the amounts and
provide the benefits described in paragraphs (A) through (D) below:

 

A.            A lump sum payment equal to one-half (.5) times the sum of (i) the
Executive’s Annual Base Salary and (ii) the greater of the Annual Bonus at
the target level and the actual Annual Bonus most recently paid to the
Executive (the “CIC Severance Payment”).

 

B.            In addition to the continuation coverage provided in Section 5(a)(D) hereof,
and subject to the Executive electing COBRA continuation coverage, the Company
shall provide the Executive with medical, dental and vision benefits at
active-employee rates for an additional six (6) months.

 

C.            A lump sum payment equal to one half (1⁄2) times the
Benefit Payment (the “CIC Benefit Payment”).

 

D.                 The unvested portion of any equity compensation granted to
the Executive shall (whether or not specified in the grant agreements
evidencing such equity compensation) become immediately fully vested.

 

E.                 If the Executive’s employment is terminated by the Company
for any reason other than for Cause, death or Disability at any time prior to
the date of a Change in Control and either (i) such termination occurred
after the Company entered into a definitive agreement, the consummation of
which would constitute a Change in Control or (ii) the Executive was
terminated at the request of a third party who has indicated an intention or
has taken steps reasonably calculated to effect a Change in Control, such
termination shall be deemed to have occurred after a Change in Control,
notwithstanding that such event or condition occurred prior to a Change in
Control, and the payments and benefits described above in this Section 5(c) shall
apply.

 

For
purposes of this Section 5(c), with respect to the definition of Good
Reason, if any event or condition described in Section 4(c) occurs at
any time prior to the date of a Change in Control and either (i) occurred
after the Company entered into a definitive agreement, the consummation of
which would constitute a Change in Control or (ii) was at the request of a
third party who has indicated an intention or has taken steps reasonably
calculated to effect a Change in Control, any resulting termination by the
Executive for Good Reason shall be deemed to have occurred after a Change in
Control, notwithstanding that such event or condition occurred prior to a
Change in Control, and the payments and benefits described above in this Section 5(c) shall
apply.

 

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If
the Executive terminates his employment at the end of the Term and the Company
had previously given notice to the Executive that the Term will not be extended
at any time prior to or following the date of a Change in Control and either (i) such
notice or termination occurred after the Company entered into a definitive
agreement, the consummation of which would constitute a Change in Control or (ii) the
Company gave such notice of termination to the Executive that the Term will not
be extended at the request of a third party who has indicated an intention or
has taken steps reasonably calculated to effect a Change in Control, such
termination shall be deemed to have occurred after a Change in Control,
notwithstanding that such event or condition occurred prior to a Change in
Control, and the payments and benefits described above in this Section 5(c) shall
apply.

 

(d)           Timing
of Severance Payments and Benefits.

 

The
Company’s obligations to make the payments, or otherwise perform, as set forth Section 3(b)(ii) if
paid in connection with the Executive’s termination of employment, in Sections
5(a)(B), (C), (D), (E), and (F) and Sections 5(c)(A), (B), (C) and
(D), shall, except in the case of a Termination based on death, be conditioned
upon: (i) the Executive’s continued compliance with his obligations under Section 6
and (ii) the Executive’s execution, delivery and non-revocation of a valid
and enforceable general release of claims against the Company and its
affiliates in the form attached hereto as Exhibit A (the “Release”)
within forty-five (45) days after the Executive’s Date of Termination.

 

The
payments and benefits described in Sections 5(a)(A), (D), and (F) and
Sections 5(c)(B) and (D) (except, under Sections 5(a)(F) and
5(c)(D), respecting the RSUs and other equity awards subject to Section 409A
of the Internal Revenue Code, as amended, (“Code”)) shall be made,
provided, or commenced, as applicable, promptly after the Date of Termination,
provided that the Executive has executed and delivered the Release, and the
Release has become irrevocable by such date.

 

If
no stock of the Company is publicly traded on an established securities market
or otherwise on the Date of Termination, the payments and benefits described in
Section 3(b)(ii) if paid in connection with Executive’s termination
of employment, in Sections 5(a)(B), (C), and (E) and Sections
5(d)(A) and (C), and under Sections 5(a)(F) and 5(c)(D), respecting
the RSUs and other equity awards subject to Section 409A of the Code shall
be made, provided, or commenced, as applicable, on the forty-fifth (45th) day after the Date of Termination.  If stock of the Company is publicly traded on
an established securities market or otherwise on the Date of Termination, the
payments and benefits described in Section 3(b)(ii) if paid in
connection with Executive’s termination of employment, Sections 5(a)(B), (C),
and (E) and Sections 5(d)(A) and (C) shall be made,
provided, or commenced, as applicable, upon the day following the day that is
six (6) months after the Date of Termination (or any earlier date of the
Executive’s death) (including with the first such payment of amounts payable
via installments a lump sum make-up payment, for amounts that otherwise would
have been paid during such six (6) month period but for such required
delay under Section 409A(a)(2)(B)(i), for the period from the Date of
Termination to the date of payment).

 

Except
for any payments made pursuant to the Company’s Senior Executive Bonus Pool
Program, the payments described in Sections 5(a) through (d) shall 

 

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constitute
the exclusive payments in the nature of severance or termination pay which
shall be due to the Executive upon a termination of employment and shall be in
lieu of any other such payments under any plan, program, policy or other
arrangement of the Company or any affiliate. 
The Executive shall have no obligation to mitigate any amounts payable
or arrangements made under any provision of this Agreement, whether by seeking
employment or otherwise, and such payments shall not be offset by any future
employment or other compensation for services.

 

If
the Executive dies during the period between the Date of Termination and the
date on which the payments and benefits described in Sections 5(a) and 5(d) are
due to be paid, all such payments and benefits shall be paid to the personal
representative of the Executive’s estate.

 

(e)          Immediate
Vesting and Payment on Change in Control.  Without limitation of Section 5(a)(F),
the unvested portion of any equity compensation granted to the Executive shall
(whether or not specified in the grant agreements evidencing such equity
compensation) immediately become fully vested, and payable respecting the RSUs
and other similar awards, upon a Change in Control, whether or not a
termination of the Executive’s employment occurs; provided, however, that to
the extent equity compensation is treated as deferred compensation for purposes
of Section 409A of the Code and the regulations issued thereunder (“Section 409A”),
the payment of such equity compensation shall only accelerate pursuant to this Section 5(e) upon
a Change in Control which also constitutes a change in control or effective control
of the Company or a change in the ownership of a substantial portion of its
assets, in each case within the meaning of Section 409A (“409A CiC”),
and shall in the event that the Change in Control is not a 409A CiC be payable
upon the first to occur thereafter of a 409A CiC, the Executive’s separation
from service (within the meaning of Section 409A) or the scheduled date
for payment thereof under the applicable terms of such equity compensation.

 

(f)            Separate Payments.  The Pro Rata Bonus, the Salary Continuation
Severance Payments, the Benefit Payment, the CIC Benefit Payment, and the CIC
Severance Payment are each intended to be separate payments for purposes of Section 409A.  All payments hereunder constituting a “deferral
of compensation” under Section 409A and payable upon the termination of
the Executive’s employment, shall be payable upon the Executive’s separation
from service (within the meaning of Section 409A).

 

(g)           Indemnification by the Company.  The Company shall
defend, indemnify, and hold the Executive harmless from and against any
liabilities the Executive may incur by virtue of the applicability of Section 409A
to any payments made hereunder.

 

(h)           Taxes and Withholding.  All payments and benefits to be made or
otherwise provided to the Executive hereunder shall be subject to applicable
taxes and withholding.

 

6.              Confidential Information; Noncompetition; Work Product.  The Executive
acknowledges that his employment by the Company will, throughout the Employment
Period bring him into close contact with the confidential affairs of the
Company and its affiliates, including information about their client and
customer lists and information concerning proprietary manufacturing
formulations and processes, costs, profits, real estate, markets, sales, 

 

9

 

products, key personnel, pricing
policies, operational methods, patents, research and development, technical
processes, and other business affairs and methods, plans for future product
development and other information not readily available to the public.  The Executive further acknowledges that the
services to be performed under this Agreement are of a special, unique,
unusual, extraordinary and intellectual character.  The Executive further acknowledges that the
business of the Company and its subsidiaries is international in scope, that
their products are marketed throughout the world, that the Company and its
subsidiaries competes in nearly all of their business activities with other
entities that are or could be located in nearly any part of the world and that
the nature of the Executive’s services, position and expertise are such that he
is capable of competing with the Company and its subsidiaries from nearly any
location in the world. In recognition of the foregoing, the Executive covenants
and agrees:

 

(a)           The Executive, at all times during the Employment Period
and thereafter, shall hold in a fiduciary capacity for the benefit of the
Company all secret, trade, proprietary or confidential information, knowledge
or data relating to the Company or any of its affiliated companies and
shareholders, and their respective businesses, that the Executive obtains
during the Executive’s employment by the Company or any of its affiliated
companies and that is not public knowledge (other than as a result of the
Executive’s violation of this Section 6(a)) (“Confidential Information”).  The Executive shall not communicate, divulge
or disseminate Confidential Information at any time during or after the
Executive’s employment with the Company, except as required to discharge his
duties hereunder, with the prior written consent of the Company, or as
otherwise required by law or legal process. 
The Executive shall deliver promptly to the Company on termination of the
Executive’s employment by the Company, or at any other time the Company may so
request, at the Company’s expense, all memoranda, notes, records, reports and
other documents (and all copies thereof) relating to the Company’s business,
which the Executive obtained while employed by, or otherwise serving or acting
on behalf of, the Company and which the Executive may then posses or have under
the Executive’s control.

 

(b)           During the “Noncompetition Period,” the Executive shall
not, without the prior written consent of the Board, engage in or become
associated with a “Competitive Activity.” 
For purposes of this Section 6: 
(i) the “Noncompetition Period” means the period commencing
on the Effective Date and ending on the twelve-month anniversary of the date upon
which Executive’s employment with the Company is terminated for any reason; (ii) a
“Competitive Activity” means any business or other endeavor that engages
in clinical or pre-clinical research or development, manufacturing, marketing,
sales, or commercialization of products or services that directly or indirectly
compete with, or are a therapeutic alternative to, either (x) the products
of, or services engaged in by, the Company or any of its subsidiaries at the
Date of Termination in any geographic location in the United States,  or (y) the products proposed to be developed or
commercialized, or services proposed to be engaged in, by the Company or any of
its subsidiaries at the Date of Termination in any geographic location in the
United States (provided that clause (y) shall apply only to any proposed
business activity as to which the Company or any of its subsidiaries has
devoted significant and documented efforts at the Date of Termination, whether
internally or through acquisition, licensing or other business development
activities); provided, however, that the Executive shall not be engaged in a
Competitive Activity if he is providing services to a division or subsidiary of
a multi-division entity or holding company, so long as no division or subsidiary
to which the Executive provides services is in

 

10

 

competition with the Company or its
subsidiaries or affiliates, and the Executive does not otherwise engage in a
Competitive Activity on behalf of the multi-division entity or any competing
division or subsidiary; and (iii) the Executive shall be considered to
have become “associated with a Competitive Activity” if the Executive becomes
directly or indirectly involved as an owner, investor (other than a passive
stockholder of less than five percent (5%) of a corporation the securities of
which are traded on a national securities exchange), employee, officer,
director, consultant, independent contractor, agent, partner, advisor, or in
any other capacity calling for the rendition of the Executive’s personal
services, with any individual, partnership, corporation or other organization
that is engaged directly or indirectly in a Competitive Activity.

 

(c)                                  During the Noncompetition Period, the Executive shall not,
on his own behalf or on behalf of any other person, firm or entity (x) directly
or indirectly solicit, induce or attempt to solicit or induce (except via
general advertising) any employee of the Company or any of its subsidiaries to
terminate his employment with the Company or any of its subsidiaries, or to
provide any assistance whatsoever to any person, firm or entity engaged in a
Competitive Activity, or (y) directly or indirectly induce any business,
entity or person with which the Company or any of their subsidiaries or
affiliates has a business relationship to terminate or alter such business
relationship.

 

(d)                                 In addition to such other rights and remedies as the
Company may have at equity or in law with respect to any breach of this
Agreement, if the Executive commits a material breach of any of the provisions
of Section 6, the Company shall have the right to seek to have such
provisions specifically enforced by any court having equity jurisdiction
(without any obligation to post a bond or other security); it being
acknowledged and agreed that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages alone will not provide
an adequate remedy to the Company.

 

(e)                                  The Executive acknowledges that during the Employment
Period, the Executive may conceive of, discover, invent or create inventions,
improvements, new contributions, literary property, computer programs and
software material, ideas and discoveries, whether patentable or copyrightable
or not (all of the foregoing being collectively referred to herein as “Work
Product”), and that various business opportunities shall be presented to
the Executive by reason of the Executive’s employment by the Company.  The Executive acknowledges that all of the
foregoing shall be owned by and belong exclusively to the Company and that the
Executive shall have no personal interest therein; provided that they are
either related in any manner to the business (commercial or experimental) of
the Company or any of its subsidiaries, or are, in the case of Work Product,
conceived or made on the Company’s time or with the use of the Company’s
facilities or materials, or, in the case of business opportunities, are
presented to the Executive for the possible interest or participation of the
Company or any of its subsidiaries.  The
Executive shall (i) promptly disclose any such Work Product and business
opportunities to the Company; (ii) assign to the Company, upon request and
without additional compensation, the entire rights to such Work Product and
business opportunities; (iii) sign all papers necessary to carry out the
foregoing; and (iv) give testimony in support of the Executive’s
inventorship or creation in any appropriate case.  The Executive agrees that the Executive will
not assert any rights to any Work Product or business opportunity as having
been made or 

 

11

 

acquired by the Executive prior to
the date of this Agreement except for Work Product or business opportunities
disclosed on Exhibit B to this Agreement.

 

(f)                                    The Executive acknowledges and agrees that the provisions
of this Section 6 are necessary to protect the business operations and
affairs of the Company and its subsidiaries. The Executive understands that the
restrictions set forth in this Agreement may limit his ability to earn a
livelihood in a business similar that of the Company, but he nevertheless
believes that he has received and will receive sufficient consideration and
other benefits as an employee of the Company to justify clearly such
restrictions which, in any event (given his education, skills and ability), the
Executive does not believe would prevent him from earning a livelihood.

 

7.                                       Successors.

 

(a)                                  This Agreement is personal to the Executive and, without
the prior written consent of the Company, shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of
and be enforceable by the Executive’s legal representatives.

 

(b)                                 This Agreement shall inure to the benefit of and be binding
upon the Company and its successors and assigns, and may be assigned by Company
in connection with any sale, transfer or other disposition of all or
substantially all of its business and assets.

 

(c)                                  The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company expressly to
assume and agree to perform under this Agreement in the same manner and to the
same extent that the Company would have been required to perform it if no such
succession had taken place, except under circumstances in which such assumption
occurs by operation of law.  As used in
this Agreement, “Company” shall mean both the Company as defined above and any
such successor that assumes and agrees to perform this Agreement, by operation
of law or otherwise.

 

8.                                       Indemnification.  The Executive shall in all events be entitled
to defense by and full indemnification from the Company for any claims that a
third party brings against him based on any alleged act or omission related in
any way to the Executive’s employment by the Company to the maximum extent
permitted under applicable law, and advance of fees and costs in accordance
with the Company’s by-laws.  In addition,
during the term of the Executive’s employment and for all relevant periods
thereafter, the Executive shall be covered under any directors’ and officers’
insurance policy maintained by the Company.

 

9.                                       Post-Termination Assistance.  After the termination of the Executive’s
employment for any reason, for so long as the Executive is receiving any
payments pursuant to this Agreement, the Executive shall cooperate, at the
reasonable request of the Company or any of its subsidiaries, (i) in the
transition of any matter for which the Executive had authority or
responsibility during the Employment Period, or (ii) with respect to any
other matter involving the Company or any of its subsidiaries for which the
Executive may be of assistance.  Any such
cooperation required from the Executive shall take into account any
responsibilities to which the Executive is subject to a subsequent employer or
otherwise.

 

12

 

10.                                 Miscellaneous.

 

(a)                                  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New Jersey, applicable to agreements
made and to be performed entirely within such state.  The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified
except by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

(b)                                 All notices and other communications under this Agreement
shall be in writing and shall be given by hand delivery to the other party or
by registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

 

If
to the Executive, to the Executive’s address as

maintained on the payroll records of the Company.

 

If
to the Company:

 

Ikaria
Holdings, Inc.

6
Route 173

Clinton,
New Jersey 08809

Telephone:  (908) 238-6600

Facsimile:  (908) 238-6699

Attention:  General Counsel

 

or
to such other address as either party furnishes to the other in writing in
accordance with this Section 10. 
Notices and communications shall be effective when actually received by
the addressee.

 

(c)                                  The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.  If any
provision of this Agreement shall be held invalid or unenforceable in part, the
remaining portion of such provision, together with all other provisions of this
Agreement, shall remain valid and enforceable and continue in full force and
effect to the fullest extent consistent with law, and the invalid or
unenforceable provision shall be deemed to have been redrafted as if in the
original, so as to be valid and enforceable to the maximum extent permissible
under applicable law.

 

(d)                                 Notwithstanding any other provision of this Agreement, the
Company may withhold from amounts payable under this Agreement all federal,
state, local and foreign taxes that are required to be withheld by applicable
laws or regulations.

 

(e)                                  The failure of the Executive or the Company to insist upon
strict compliance with any provision of, or to assert any right under, this
Agreement shall not be deemed to be a waiver of such provision or right or of
any other provision of or right under this Agreement.

 

(f)                                    The Executive and the Company acknowledge that this
Agreement represents the complete agreement between the parties and supersedes
any other agreement 

 

13

 

between them concerning the subject
matter hereof.  This Agreement may not be
modified except by express written agreement between the parties.

 

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

 

(h)                                 Whenever this Agreement provides for any payment to the
Executive’s estate, such payment may be made instead to such beneficiary or
beneficiaries as the Executive may designate by written notice to the
Company.  The Executive shall have the
right to revoke any such designation and to redesignate a beneficiary or
beneficiaries by written notice to the Company (and to any applicable insurance
company) to such effect.

 

(i)                                     The Executive represents and warrants to the Company that
this Agreement is legal, valid and binding upon the Executive and the execution
of this Agreement and the performance of the Executive’s obligations hereunder
does not and will not constitute a breach of, or conflict with the terms or
provisions of, any agreement or understanding to which the Executive is a party
(including, without limitation, any other employment agreement). The Company
represents and warrants to the Executive that this Agreement is legal, valid
and binding upon the Company and the execution of this Agreement and the
performance of the Company’s obligations hereunder does not and will not
constitute a breach of, or conflict with the terms or provisions of, any
agreement or understanding to which the Company is a party.

 

(j)                                     Neither the Executive, his legal representative nor any
beneficiary designated by the Executive shall have any right, without the prior
written consent of the Company, to assign, transfer, pledge, hypothecate,
anticipate or commute to any person or entity any payment due in the future
pursuant to any provision of this Agreement, and any attempt to do so shall be
void and shall not be recognized by the Company.

 

(k)                                  Each party (i) hereby irrevocably submits itself to
and acknowledges and recognizes the jurisdiction of the courts of the State of
New Jersey in the County of Hunterdon (which court, together with all
applicable appellate courts, for purposes of this Agreement, are the only “courts
of competent jurisdiction”), for the purpose of any suit, action or other
proceeding arising out of, under, or in connection with, relating to, or based
upon this Agreement, (ii) agrees that any service of process in connection
with any such suit, action or other proceeding may be made upon it by means of
the United States mail or such other service as may be authorized by any such
court, (iii) agrees that the courts of competent jurisdiction shall be the
sole and exclusive courts and forums for the purpose of any such suit, action
or proceeding and (iv) waives and agrees not to assert, by way of motion,
as a defense, or otherwise, in any such suit, action or proceeding, any claim
that it is not subject to the jurisdiction of courts of competent jurisdiction,
that such suit, action or proceeding is brought in an inconvenient forum, that
the venue of the suit, action or proceeding is improper or that this Agreement
or the subject matter hereof may not be enforced in or by such court.  Each party agrees that its submission to
jurisdiction and its consent to service of process by mail is made for the
express benefit of the other party.

 

(l)                                     Each of the parties has been represented by counsel (or has
had the opportunity to be so represented) in the negotiation and preparation of
this Agreement.  The 

 

14

 

parties agree that this Agreement
is to be construed as jointly drafted. 
Accordingly, this Agreement will be construed according to the fair
meaning of its language, and the rule of construction that ambiguities are
to be resolved against the drafting party will not be employed in the
interpretation of this Agreement.

 

(m)                               The Executive acknowledges and agrees that the Company may
satisfy its obligations to make payments to the Executive under this Agreement
by causing one or more of its subsidiaries to make such payments to the
Executive.  The Executive agrees that any
such payment made by any such subsidiary shall fully satisfy and discharge the
Company’s obligation to make such payment to the Executive hereunder (but only
to the extent of such payment).

 

(n)                                 Notwithstanding the expiration or termination of this Agreement,
the provisions of Sections 5, 6, 7, 8, 9, and 10 of the Agreement shall
continue in full force and effect and remain fully binding upon the parties, in
each case as applicable in accordance with their terms without expansion.

 

11.                                 Gross-Up Payment.

 

(i)                                 To the extent that any (a) severance payment, (b) transaction
or other bonus payment, (c) payment under any transaction or other
incentive plan, (d) payment related to equity or made under an equity
incentive program, or (e) other amounts or payments of any type or kind
whatsoever, in the nature of compensation (within the meaning of Section 280G
of the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder (“Section 280G”)) or otherwise to or for the
benefit of the Executive under this Agreement, or any other agreement or plan,
or otherwise (or any part of such amount or other payment) (collectively, “Payments”),
in any case constitutes an “excess parachute payment” within the meaning of Section 280G
and Section 4999 of the Internal Revenue Code (“Section 4999”),
then the Company shall pay to the Executive an additional sum (“Gross-Up
Payment”) such that, after all taxes applicable to the receipt of such
amount have been subtracted therefrom, the remaining amount will equal the sum
of the amount of tax imposed with respect to the “excess parachute payments,”
plus any interest and penalties thereon (other than those caused solely by
Executive’s action or inaction). 
Therefore, the effect shall be to maintain the Executive in the same
financial position that he would have been in had no tax under Section 4999
been imposed.  All payments and
reimbursements to which the Executive is entitled under this Section 11
shall be made not later than April 15 of the taxable year of the Executive
next following the taxable year of the Executive in which the Executive
receives amounts subject to Section 4999.

 

(ii) 
Notwithstanding the immediately preceding paragraph, in the event that a
reduction to the Payments in respect of the Executive of 10% or less, but not
more than $250,000, would cause none of the Payments to be “excess parachute
payments,” the Executive will not be entitled to a Gross-Up Payment and the
Payments shall be reduced to the extent necessary so that none of the Payments
shall be “excess parachute payments.” 
Unless the Executive shall have given prior written notice to the
Company specifying a different order by which to effectuate the foregoing, the
Company shall reduce or eliminate the Payments (x) by first reducing or
eliminating the portion of the Payments which are not payable in cash (other
than that portion of the Payments subject to clause (z) hereof), (y) then
by reducing or eliminating cash payments (other than that portion of the
Payments subject to clause (z) hereof) 

 

15

 

and
(z) then by reducing or eliminating the portion of the Payments (whether
payable in cash or not payable in cash) to which Treasury Regulation § 1.280G-1
Q/A 24(c) (or successor thereto) applies, in each case in reverse order
beginning with payments or benefits which are to be paid the farthest in time
from the date of the Change in Control. 
Any notice given by the Executive pursuant to the preceding sentence
shall take precedence over the provisions of any other plan, arrangement or
agreement governing the Executive’s rights and entitlements to any benefits or
compensation.

 

(iii)  The provisions of this Section 11
shall expire, and shall be of no further force or effect, on December 31,
2010.

 

[SIGNATURE PAGE FOLLOWS]

 

16

 

IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and,
pursuant to the authorization of its Board, the Company has caused this
Agreement to be executed in its name on its behalf, all as of the day and year
first above written.

 

 

	
  EXECUTIVE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Craig Tooman 7-7-10

  	
   

  
	
  Craig Tooman, Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  IKARIA HOLDINGS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Daniel Tassé

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Daniel Tassé

  	
   

  
	
  Title:

  	
  President, Chief Executive Officer and Chairman

  	
   

  

 

 

Exhibits:

A:  Form of Waiver and Release of Claims

B:  Disclosed Work Product and Business
Opportunities

 

 

Exhibit A

Form of Waiver and Release of Claims

 

WAIVER AND RELEASE OF CLAIMS

 

1.                                       General Release.  In consideration of the payments and benefits
to be made under the Employment Agreement, dated as of
                      ,
2010, to which Ikaria Holdings, Inc. (the “Company”) and Craig
Tooman (the “Executive”) are parties (the “Employment Agreement”),
the Executive, with the intention of binding the Executive and the Executive’s
heirs, executors, administrators and assigns, does hereby release, remise,
acquit and forever discharge the Company and each of its subsidiaries and
affiliates (the “Company Affiliated Group”), their present and former
officers, directors, executives, agents, shareholders, attorneys, employees and
employee benefits plans (and the fiduciaries thereof), and the successors,
predecessors and assigns of each of the foregoing (collectively, the “Company
Released Parties”), of and from any and all claims, actions, causes of
action, complaints, charges, demands, rights, damages, debts, sums of money,
accounts, financial obligations, suits, expenses, attorneys’ fees and
liabilities of whatever kind or nature in law, equity or otherwise, whether
accrued, absolute, contingent, unliquidated or otherwise and whether now known,
unknown, suspected or unsuspected which the Executive, individually or as a
member of a class, now has, owns or holds, or has at any time heretofore had,
owned or held, against any Company Released Party (an “Action”) arising
out of or in connection with the Executive’s service as an employee, officer
and/or director to any member of the Company Affiliated Group (or the predecessors
thereof), including (i) the termination of such service in any such
capacity, (ii) for severance or vacation benefits, unpaid wages, salary or
incentive payments, (iii) for breach of contract, wrongful discharge,
impairment of economic opportunity, defamation, intentional infliction of
emotional harm or other tort and (iv) for any violation of applicable
state and local labor and employment laws (including, without limitation, all
laws concerning harassment, discrimination, retaliation and other unlawful or
unfair labor and employment practices), any and all Actions based on the
Employee Retirement Income Security Act of 1974 (“ERISA”), and any and
all Actions arising under the civil rights laws of any federal, state or local
jurisdiction, including, without limitation, Title VII of the Civil Rights Act
of 1964 (“Title VII”), the Americans with Disabilities Act (“ADA”),
Sections 503 and 504 of the Rehabilitation Act, the Family and Medical Leave
Act and the Age Discrimination in Employment Act (“ADEA”), excepting
only:

 

(a)                                  rights of the Executive under this Waiver and Release of
Claims and the Employment Agreement;

 

(b)                                 rights of the Executive relating to equity awards or equity
of the Company held by the Executive as of his date of termination;

 

(c)                                  the right of the Executive to receive COBRA continuation
coverage in accordance with applicable law and the Employment Agreement;

 

(d)                                 rights to indemnification the Executive may have (i) under
applicable corporate law, (ii) under the by-laws or certificate of
incorporation of any 

 

 

Company
Released Party, (iii) under Section 8 of the Employment Agreement and
(iv) as an insured under any director’s and officer’s liability insurance
policy now or previously in force;

 

(e)                                  claims (i) for benefits under any health, disability,
retirement, deferred compensation, life insurance or other, similar employee
benefit plan or arrangement of the Company Affiliated Group and (ii) for
earned but unused vacation pay through the date of termination in accordance
with applicable Company policy; and

 

(f)                                    claims for the reimbursement of unreimbursed business
expenses incurred prior to the date of termination pursuant to applicable
Company policy.

 

2.                                       No Admissions, Complaints or Other Claims.  The Executive
acknowledges and agrees that this Waiver and Release of Claims is not to be
construed in any way as an admission of any liability whatsoever by any Company
Released Party, any such liability being expressly denied.  The Executive also acknowledges and agrees
that he has not, with respect to any transaction or state of facts existing
prior to the date hereof, filed any Actions against any Company Released Party
with any governmental agency, court or tribunal.

 

3.                                       Application to all Forms of Relief.  This Waiver and
Release of Claims applies to any relief no matter how called, including,
without limitation, wages, back pay, front pay, compensatory damages,
liquidated damages, punitive damages for pain or suffering, costs and attorney’s
fees and expenses.

 

4.                                       Specific Waiver.  The Executive specifically acknowledges that
his acceptance of the terms of this Waiver and Release of Claims is, among
other things, a specific waiver of any and all Actions under Title VII, ADEA,
ADA and any state or local law or regulation in respect of discrimination of
any kind; provided, however, that nothing herein shall be deemed, nor does
anything herein purport, to be a waiver of any right or Action which by law the
Executive is not permitted to waive.

 

5.                                       Voluntariness.  The Executive acknowledges and agrees that he
is relying solely upon his own judgment; that the Executive is over eighteen
years of age and is legally competent to sign this Waiver and Release of
Claims; that the Executive is signing this Waiver and Release of Claims of his
own free will; that the Executive has read and understood the Waiver and
Release of Claims before signing it; and that the Executive is signing this
Waiver and Release of Claims in exchange for consideration that he believes is
satisfactory and adequate.  The Executive
also acknowledges and agrees that he has been informed of the right to consult
with legal counsel and has been encouraged to do so.

 

6.                                       Complete Agreement/Severability.  This Waiver and
Release of Claims constitutes the complete and final agreement between the
parties and supersedes and replaces all prior or contemporaneous agreements,
negotiations, or discussions relating to the subject matter of this Waiver and
Release of Claims.  All provisions and
portions of this Waiver and Release of Claims are severable.  If any provision or portion of this Waiver
and Release of Claims or the application of any provision or portion of the
Waiver and Release of Claims shall be determined 

 

 

to
be invalid or unenforceable to any extent or for any reason, all other
provisions and portions of this Waiver and Release of Claims shall remain in
full force and shall continue to be enforceable to the fullest and greatest
extent permitted by law.

 

7.                                       Acceptance and Revocability.  The Executive acknowledges that he has been
given a period of 21 days within which to consider this Waiver and Release of
Claims, unless applicable law requires a longer period, in which case the
Executive shall be advised of such longer period and such longer period shall
apply.  The Executive may accept this
Waiver and Release of Claims at any time within this period of time by signing
the Waiver and Release of Claims and returning it to the Company.  This Waiver and Release of Claims shall not
become effective or enforceable until seven calendar days after the Executive
signs it.  The Executive may revoke his
acceptance of this Waiver and Release of Claims at any time within that seven
calendar day period by sending written notice to the Company.  Such notice must be received by the Company within
the seven calendar day period in order to be effective and, if so received,
would void this Waiver and Release of Claims for all purposes.

 

8.                                       Governing Law.  Except for issues or matters as to which
federal law is applicable, this Waiver and Release of Claims shall be governed
by and construed and enforced in accordance with the laws of the State of New
Jersey without giving effect to the conflicts of law principles thereof.

 

 

	
   

  	
  EXECUTIVE 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Craig Tooman, Chief Financial Officer

  

 

 

Exhibit B

Disclosed Work Product and Business Opportunities

 

NONEExhibit 10.39

 

TRANSITION AGREEMENT

 

This
Agreement is between Ikaria, Inc. and its subsidiaries (referred to in
this Agreement as “Ikaria”) and Dr. Ralf Rosskamp (referred to in
this Agreement as “Dr. Rosskamp”).

 

1.                                       Background.  Ikaria and Dr. Rosskamp are party to an
Amended and Restated Employment Agreement dated as of June 1, 2009 (the “Employment
Agreement”).  Dr. Rosskamp
intends to separate from service with Ikaria on October 5, 2010 (the “Separation
Date”).  Subject to the terms and
conditions set forth in this Agreement, Ikaria wishes to retain the
services of Dr. Rosskamp from the effective date of this Agreement (see  paragraph 20) until the Separation Date (the “Transition
Period”)

 

2.                                       Position.  During the Transition Period, Dr. Rosskamp
shall serve as Senior Advisor to the Chief Executive Officer.

 

3.                                       Transition
Period.

 

a.                                       Compensation
and Benefits.  Dr. Rosskamp
and Ikaria agree that during the Transition Period, Dr. Rosskamp will
continue to receive the compensation and benefits set forth in Section 3
of the Employment Agreement.

 

b.                                      Stock Awards.  During the Transition Period, Dr. Rosskamp
will continue to vest in his stock options and other equity awards pursuant to
the terms set forth in the applicable award agreement and the Ikaria plan under
which such award was granted.

 

4.                                       Payments
Following the Separation Date; No Other Payments.

 

a.                                       Agreed Payment.  In consideration of (i) the timely
execution of both this Agreement and the Release of Claims attached hereto as
Attachment A (the “Release of Claims”), as further set forth in paragraph
6 below, (ii) this Agreement and the Release of Claims becoming
effective (see  paragraph 20), (iii) Dr. Rosskamp
honoring all of the terms of this Agreement and the Release of Claims , and (iv) Dr. Rosskamp
serving in the position described in paragraph 2 of this Agreement
during the Transition Period, Ikaria will pay Dr. Rosskamp $630,000
less (A) applicable federal, state, and local taxes and other applicable
payroll deductions and withholdings, such amount to be paid in twelve (12)
equal monthly installments commencing on the forty-fifth (45th) day after the Separation
Date (the “Agreed Payment”).   It
is understood and acknowledged that the Agreed Payment represents full payment
for all amounts owed under Section 5(a)(C) of the Employment
Agreement

 

b.                                      Additional
Payment.  In consideration of (i) the
timely execution of both this Agreement and the Release of Claims (ii) this
Agreement and the Release of Claims becoming effective (see
paragraph 20) and (iii) Dr. Rosskamp honoring all of the terms
of this Agreement and the Release of Claims, Ikaria will pay Dr. Rosskamp
an additional $493,497, less applicable federal, state, and local taxes and
other applicable 

 

1

 

payroll
deductions and withholdings, such amount to be paid in a lump sum on the
forty-fifth (45th) day after the
Separation Date (the “Additional Payment”).  It is understood and acknowledged that the
Additional Payment represents full payment for all amounts owed under Sections
5(a)(A), (B), (D) and (E) of the Employment Agreement and a
supplemental payment of $315,000 (the “Supplemental Payment”), which
Supplemental Payment will be reduced by the amount of salary paid to Dr. Rosskamp
during the Transition Period.   For the
avoidance of doubt, Dr. Rosskamp shall be entitled to the entire
Supplemental Payment of $315,000 such that if his employment with Ikaria is
terminated for any reason [other than for cause] prior to the Separation Date,
any portion of the Supplemental Payment which has not been paid to Dr. Rosskamp
as salary during the Transition Period shall be paid to him in a lump sum on
the payment date for the Additional Payment as set forth in this paragraph.

 

c.                                       No Other
Payments.  Dr. Rosskamp
acknowledges and agrees that the Agreed Payment and the Additional Payment
(except for the Supplemental Payment) shall be in satisfaction of, and not in addition to, any payments,
benefits, or other cash or non-cash remuneration of any kind to which Dr. Rosskamp
may have otherwise been entitled to under (i) the Employment Agreement
(including any payments or benefits that Dr. Rosskamp may otherwise be
entitled to under Section 5 of the Employment Agreement) or (ii) any
other agreement, plan, program, or practice of Ikaria.  Dr. Rosskamp also acknowledges and
agrees that the Supplemental Payment is in addition to any rights he had under
the Employment Agreement.

 

d.                                      D&O
Insurance; Indemnification.  Ikaria agrees to continue to cover Dr. Rosskamp
under the directors and officers insurance policy(ies), if any, maintained by
Ikaria for its officers and directors on terms comparable to the terms in
effect from time to time for Ikaria’s other officers through the end of the
Transition Period.  Any indemnification
under its certificate of incorporation or by-laws that Ikaria provides to its
other officers will similarly apply to Dr. Rosskamp.

 

5.                                       Acknowledgement.  Dr. Rosskamp (i) acknowledges that
the Agreed Payment and the Additional Payment will not commence to be paid or
provided unless he accepts this Agreement and this Agreement becomes effective
(see  paragraph 20) and (ii) acknowledges
that the covenants contained in Section 6 of the Employment Agreement will
continue in effect in accordance with their terms.

 

6.                                       Release.

 

In consideration of this Agreement, including,
without limitation, the Transition Period and the payments described in paragraph
4, which Dr. Rosskamp acknowledges he would not otherwise be entitled
to receive, Dr. Rosskamp understands and agrees that his acceptance of
this Agreement means that, except as stated in paragraph 9, he is
forever waiving and giving up any and all claims, actions, causes of action,
complaints, charges, demands and rights (including attorneys’ fees and costs)
of whatever kind or nature in law, equity or otherwise, whether known or
unknown (collectively “Claims”), he has or may have, individually or as
a member of a class, that are  based on any
event or  act or failure to act that
occurred prior to his execution of this Agreement, and hereby releases and
forever discharges Ikaria, its parent, subsidiaries, 

 

2

 

shareholders
and related companies, and their respective directors, officers, employees, and
agents from any and all such Claims.  Dr. Rosskamp
understands that this release and waiver of Claims includes, but is not limited
to, Claims relating to or arising under (a) his employment and the
termination of his employment, (b) any Ikaria policy, practice, contract
or agreement, (c) any tort or personal injury, (d) any policies,
practices, laws or agreements governing the payment of wages, commissions or
other compensation, (e) any laws governing employment discrimination
and/or retaliation, including, but not limited to, Title VII of the Civil Rights Act of 1964, 42
U.S.C. § 2000e et seq., the
Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et  seq.,
the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic
Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et  seq.,
the Family
and Medical Leave Act, 29 U.S.C. § 2601 et  seq., the Worker
Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et
seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et  seq.,
Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15
U.S.C. § 1681 et  seq., the Employee Retirement Income Security Act of 1974 (“ERISA”),
29 U.S.C. § 1001 et  seq., the New Jersey Law Against Discrimination, N.J.
Stat. Ann. § 10:5-1 et seq.,
the New Jersey Family Leave Act, N.J. Stat. Ann. § 34:11B-1 et seq., the New Jersey Conscientious
Employee Protection Act, N.J. Stat. Ann. § 34:19-1 et seq., and N.J. Stat.
Ann. § 34:11-56.1 et seq.
(New Jersey equal pay law), all as amended, and any other similar federal,
state and local laws or statutes, (f) any laws governing whistle blowing
or retaliation, including but not limited to the Sarbanes-Oxley Act, (g) any
laws or agreements that provide for punitive, exemplary or statutory damages,
and (h) any laws or agreements that provide for payment of attorney fees,
costs, or expenses.

 

7.                                       No
Disparagement.  Dr. Rosskamp
agrees, both during the Transition Period and at all times thereafter, not to
make critical, negative, or disparaging remarks about Ikaria, its shareholders,
its services, its directors, its employees or its agents to others.   Dr. Rosskamp agrees that any request
for employment verification or other employment related information shall be
directed to James Briggs, and he shall so advise any prospective employer or
other person who may make such a request.

 

8.                                       Future
Employment.  Dr. Rosskamp
agrees that he is not now nor hereafter entitled to employment or reemployment
with, or any other service relationship with, Ikaria and he agrees not to
knowingly seek such employment or service relationship on any basis or through
an employment agency.  Dr. Rosskamp
further agrees and acknowledges that should he apply for any position in
contradiction of this paragraph, Ikaria may completely ignore such
application and fail to consider it based on this paragraph.

 

9.                                       Claims
Not Waived.  Dr. Rosskamp
understands that this Agreement does not waive any claims that he may
have (a) for compensation for illness or injury or medical expenses under
any worker’s compensation statute, (b) for vested benefits under any plan
currently maintained by Ikaria that provides for retirement benefits, (c) under
any law or any policy or plan currently maintained by Ikaria that provides
health insurance continuation or conversion rights, (d) for vested rights
under the 2007 Stock Option Plan and related Notices of Stock Option Grants and
Stock Option Agreements, (e) for indemnification under Ikaria’s
certificate of incorporation, by-laws or coverage 

 

3

 

under
any of Ikaria’s directors and officers insurance policies, (f) for
indemnification under Section 5(h) of the Employment Agreement or (g) that
by law cannot be released or waived.

 

10.                                 Government Cooperation.  Nothing in this Agreement prohibits either
party from cooperating with any government agency.

 

11.                                 Prior
Agreement(s).  Dr. Rosskamp
agrees and understands that this Agreement does not supersede any obligation to
which he was subject under a prior agreement while employed with Ikaria that
addresses confidentiality, noncompetition, nonsolicitation, or ownership of
intellectual or other proprietary property, and he further explicitly
acknowledges and reaffirms his obligations as set forth in any and all such
agreements, which obligations remain in full force and effect.  Dr. Rosskamp further agrees and
understands that this Agreement does not reduce his obligations to comply with
applicable laws relating to trade secrets, confidential information, or unfair
competition (including, without limitation, any such obligations under the
Employment Agreement).

 

12.                                 Confidentiality.  Dr. Rosskamp agrees, both during the
Transition Period and at all times thereafter, that the existence and terms of
this Agreement are not to be disclosed to anyone other than his attorney, tax
advisor, or his immediate family, except as otherwise required by law, and that
if disclosed to such persons, Dr. Rosskamp will advise them that they may
not disclose the existence or terms of this Agreement to others, and that he
will be responsible for such disclosure. 
Except for disclosure required pursuant to applicable laws or
regulations, including filing this Agreement with the Securities and Exchange
Commission, and except for disclosure that Ikaria believes in good faith to be
necessary for any legitimate business purpose, Ikaria agrees to hold in
confidence the existence and terms of this Agreement.

 

13.                                 Nonadmission.  Dr. Rosskamp and Ikaria both acknowledge
and agree that nothing in this Agreement is meant to suggest that Ikaria has
violated any law or contract or that Dr. Rosskamp has any claim against
Ikaria.

 

14.                                 Voluntary Agreement.  Dr. Rosskamp acknowledges and states
that he has entered into this Agreement knowingly and voluntarily.

 

15.                                 Consulting An Attorney.  Dr. Rosskamp acknowledges that Ikaria
has advised him that he may consult an attorney of his own choice about this
Agreement and every matter that it covers before signing this Agreement, and
has encouraged him to do so.

 

16.                                 Obligation to Pay Attorney Fees and Costs.  Dr. Rosskamp understands and agrees that if he violates the
commitments he has made in this Agreement, Ikaria may seek to recover any
payments and/or value of any benefits provided in this Agreement and that,
except as provided in paragraph 17, he will be responsible for paying
the actual attorney fees and costs incurred by Ikaria in enforcing this
Agreement or in defending a claim released by paragraph 6.  Ikaria understands and agrees that if Ikaria violates the commitments it has
made in this Agreement, Dr. 

 

4

 

Rosskamp may seek to recover damages from Ikaria and
that it will be responsible for paying the actual attorney fees and costs
incurred by Dr. Rosskamp in enforcing this Agreement or in defending a
claim released by paragraph 6.

 

17.                                 Exception to Attorney Fees
Obligation.  The obligation to pay Ikaria’s attorney fees
and costs does not apply to an action by Dr. Rosskamp regarding the
validity of this Agreement under the ADEA.

 

18.                                 Complete Agreement.  Dr. Rosskamp understands and agrees that
this Agreement contains the entire agreement between Dr. Rosskamp and
Ikaria relating to the termination of his employment, that this Agreement
(except as provided in paragraph 11 of this Agreement) supersedes and
displaces any prior agreements and discussions relating to such matters and
that he may not rely on any such prior agreements or discussions, except that
Sections 5(h), 6, 7 and 10 of the Employment Agreement are not superseded or
displaced by virtue of this paragraph 18 or of this Agreement generally
and shall continue in full force and effect in accordance with their
terms.  Notwithstanding the foregoing, Ikaria
and Dr. Rosskamp agree that the Notices of Stock Option Grants and the
related Stock Option Agreements dated December 17, 2009 and October 18,
2007 are not superseded or displaced by virtue of this paragraph 18 or
of this Agreement generally.

 

19.                                 Execution of This Agreement and
the Release of Claims.  The Company hereby
advises Dr. Rosskamp to consult with an attorney of his own choosing
before signing this Agreement and the Release of Claims, and he is being
provided with at least twenty-one (21) calendar days to do so (although Dr. Rosskamp
may voluntarily sign this Agreement, but not the Release of Claims, prior to
the end of the twenty-one  (21) day
period).  Dr. Rosskamp must execute
and return the Release of Claims to Ikaria on, but not before, the Separation
Date.

 

20.                                 Acknowledgements, Effective Date
and Revocation.  This
Agreement shall not be effective until seven (7) days after Dr. Rosskamp
signs this Agreement and returns it to Ikaria’s Senior Vice President, Human
Resources, James Briggs care of Ikaria Holdings, Inc., 6 Route 173,
Clinton, NJ 08809, in the manner set forth in paragraph 26.  Dr. Rosskamp acknowledges that he has
been given at least twenty-one (21) days to consider this Agreement, and that
Ikaria has advised him in writing herewith to consult with an attorney of his
own choosing prior to signing this Agreement. 
He understands that he may revoke this Agreement for a period of seven (7) days
after signing it by delivering to Dr. Briggs a written statement stating
he wishes to revoke this Agreement and not be bound by it.  In the event of such revocation, this
Agreement shall become null and void and have no further effect.  Dr. Rosskamp understands and agrees that
by entering into this Agreement, he is waiving any and all rights or claims he
might have under the Age Discrimination in Employment Act, as amended by the
Older Workers Benefits Protection Act, and that he has received consideration
beyond that to which he was previously entitled.

 

21.                                 Final and Binding Effect.  Dr. Rosskamp understands that if this
Agreement and/or the Release of Claims become effective, they will have a final
and 

 

5

 

binding
effect and that by signing and not timely revoking this Agreement and/or the
Release of Claims he may be giving up legal rights.

 

22.                                 Future
Cooperation.  Dr. Rosskamp
agrees to cooperate with Ikaria in the future and to provide to Ikaria truthful
information, testimony, or affidavits requested in connection with any matter
that arose during his employment.  This
cooperation may be performed at reasonable times and places and in a manner as
to not interfere with any other employment Dr. Rosskamp may have at the
time of request.  Ikaria agrees (a) to
pay Dr. Rosskamp $300 per hour for time spent providing such cooperation
and (b) to reimburse Dr. Rosskamp for expenses incurred in providing
such cooperation, so long as such expenses are approved in advance by Ikaria.

 

23.                                 Return
of Property.  Dr. Rosskamp
acknowledges an obligation and agrees to return all Ikaria property, unless
otherwise specified in this paragraph. 
This includes all files, memoranda, documents, records, credit cards,
keys and key cards, computers, laptops, personal digital assistants, cellular
telephones, Blackberry devices or similar instruments, other equipment of any
sort, badges, vehicles, and any other property of Ikaria.  In addition, Dr. Rosskamp agrees to
provide any and all access codes or passwords necessary to gain access to any
computer, program, or other equipment that belongs to Ikaria or is maintained
by Ikaria or on Ikaria property. 
Further, Dr. Rosskamp acknowledges an obligation and agrees not to
destroy, delete or disable any Ikaria property, including items, files and
materials on computers and laptops.

 

24.                                 Compliance
with Section 409A.  Subject
to the provisions in this Section 24, the payments and benefits described in paragraph 4 shall begin only upon the date
of Dr. Rosskamp’s “separation from service” (determined as set
forth below) which occurs on or after the
Separation Date.  The following rules shall
apply with respect to distribution of the payments and benefits to be provided to Dr. Rosskamp.

 

a.                                       It is intended
that each installment of the payments and benefits provided under this
Agreement shall be treated as a separate “payment” for purposes of Section 409A
of the Internal Revenue Code of 1986, as amended, and the guidance issued
thereunder (“Section 409A”). 
Neither Dr. Rosskamp
nor Ikaria shall have the right to accelerate or defer the delivery of any such
payments or benefits except to the extent specifically permitted or required by
Section 409A.

 

b.                                      If, as of the
date of Dr. Rosskamp’s “separation
from service” from Ikaria, Dr. Rosskamp
is not a “specified employee” (within the meaning of Section 409A),
then each installment of the payments and benefits shall be made on the dates
and terms set forth in this Agreement.

 

c.                                       If, as of the
date of Dr. Rosskamp’s “separation
from service” from Ikaria, Dr. Rosskamp
is a “specified employee” (within the meaning of Section 409A),
then:

 

i.                                          Each
installment of the payments and benefits due under this Agreement that, in
accordance with the dates and terms set forth herein, shall in all
circumstances, regardless of when the separation from service occurs, be paid
within the 

 

6

 

short-term deferral period (as defined in Section 409A)
shall be treated as a short-term deferral within the meaning of Treasury
Regulation Section 1.409A-1(b)(4) to the maximum extent permissible
under Section 409A and shall be made on the dates and terms set forth in
this Agreement; and

 

ii.                                       Each
installment of the payments and benefits due under this Agreement that is not
described in paragraph 24(c)(i) above and that would, absent this
subsection, be paid within the six-month period following Dr. Rosskamp’s “separation from
service” from Ikaria shall not be paid until the date that is six months and
one day after such separation from service (or, if earlier, Dr. Rosskamp’s death), with any
such installments that are required to be delayed being accumulated during the
six-month period and paid in a lump sum on the date that is six months and one
day following Dr. Rosskamp’s
separation from service and any subsequent installments, if any, being paid in
accordance with the dates and terms set forth herein; provided, however,
that the preceding provisions of this sentence will not apply to any
installment of payments and benefits if and to the maximum extent that such
installment is deemed to be paid under a separation pay plan that does not
provide for a deferral of compensation by reason of the application of Treasury
Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary
separation from service).  Any
installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must
be paid no later than the last day of the second taxable year following the
taxable year in which the separation from service occurs.

 

d.                                      The
determination of whether and when Dr. Rosskamp’s
separation from service from Ikaria has occurred shall be made in a
manner consistent with, and based on the presumptions set forth in, Treasury
Regulation Section 1.409A-1(h). 
Solely for purposes of this paragraph
24(d), “Ikaria” shall include all persons with whom Ikaria would be
considered a single employer as determined under Treasury Regulation Section 1.409A-1(h)(3).

 

e.                                       All
reimbursements and in-kind benefits provided under this Agreement shall be made
or provided in accordance with the requirements of Section 409A to the
extent that such reimbursements or in-kind benefits are subject to Section 409A,
including, where applicable, the requirements that (i) any reimbursement
is for expenses incurred during Dr. Rosskamp’s
lifetime (or during a shorter period of time specified in this Agreement), (ii) the
amount of expenses eligible for reimbursement during a calendar year may not
affect the expenses eligible for reimbursement in any other calendar year, (iii) the
reimbursement of an eligible expense will be made on or before the last day of
the calendar year following the year in which the expense is incurred and (iv) the
right to reimbursement is not subject to set off or liquidation or exchange for
any other benefit.

 

25.                                 Representations.  By signing this Agreement, Dr. Rosskamp
represents that he has read this entire document and understands all of its
terms.

 

26.                                 Twenty One (21) Day Consideration
Period.  Dr. Rosskamp
may consider whether to sign and accept this Agreement for a period of
twenty-one (21) days from the day he received it.  If this Agreement is not signed, dated, and
returned to 

 

7

 

Ikaria’s
Senior Vice President, Human Resources, James Briggs care of Ikaria Holdings, Inc.,
6 Route 173, Clinton, NJ 08809 within twenty-two (22) days, the payments and
benefits described in paragraph 4 will no longer be available.

 

	
  ACCEPTED:
  

  	
   

  	
  ACCEPTED:  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ikaria
  Holdings, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Ralf Rosskamp 

  	
   

  	
  /s/
  James Briggs 7/28/10

  
	
  Dr. Ralf
  Rosskamp  

  	
   

  	
   

  
	
   

  	
   

  	
  Senior
  Vice President

  
	
  Date:

  	
  July
  19, 2010

  	
   

  	
  Human
  Resources

  
				

 

Date
Agreement was originally given to Dr. Rosskamp: July 15, 2010

 

8

 

ATTACHMENT A — RELEASE OF CLAIMS

 

1.                                       Releases.

 

In
consideration of the Agreement to which this Release of Claims is attached as
Attachment A (the “Agreement”), including, without limitation, the
Transition Period and the payments described in paragraph 4 of the
Agreement, which Dr. Rosskamp acknowledges he would not otherwise be
entitled to receive, Dr. Rosskamp understands and agrees except as stated
below, he is forever waiving and giving up any and all claims, actions, causes
of action, complaints, charges, demands and rights (including attorneys’ fees
and costs) of whatever kind or nature in law, equity or otherwise, whether
known or unknown (collectively “Claims”), he has or may have,
individually or as a member of a class, that are  based
on any event or  act or failure to act
that occurred prior to his execution of this Release of Claims, and hereby
releases and forever discharges Ikaria, its parent, subsidiaries, shareholders
and related companies, and their respective directors, officers, employees, and
agents from any and all such Claims.  Dr. Rosskamp
understands that this release and waiver of Claims includes, but is not limited
to, Claims relating to or arising under (a) his employment and the
termination of his employment, (b) any Ikaria policy, practice, contract
or agreement, (c) any tort or personal injury, (d) any policies,
practices, laws or agreements governing the payment of wages, commissions or
other compensation, (e) any laws governing employment discrimination
and/or retaliation, including, but not limited to, Title VII of the Civil Rights Act of 1964, 42
U.S.C. § 2000e et seq., the
Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et  seq.,
the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic
Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et  seq.,
the Family
and Medical Leave Act, 29 U.S.C. § 2601 et  seq., the Worker
Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et
seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et  seq.,
Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15
U.S.C. § 1681 et  seq., the Employee Retirement Income Security Act of 1974 (“ERISA”),
29 U.S.C. § 1001 et  seq., the New Jersey Law Against Discrimination, N.J.
Stat. Ann. § 10:5-1 et seq.,
the New Jersey Family Leave Act, N.J. Stat. Ann. § 34:11B-1 et seq., the New Jersey Conscientious
Employee Protection Act, N.J. Stat. Ann. § 34:19-1 et seq., and N.J. Stat.
Ann. § 34:11-56.1 et seq.
(New Jersey equal pay law), all as amended, and any other similar federal,
state and local laws or statutes, (f) any laws governing whistle blowing
or retaliation, including but not limited to the Sarbanes-Oxley Act, (g) any
laws or agreements that provide for punitive, exemplary or statutory damages,
and (h) any laws or agreements that provide for payment of attorney fees,
costs, or expenses.

 

2.                                       Claims
Not Waived.  Dr. Rosskamp
understands that this Release of Claims does not waive any claims that
he may have (a) for compensation for illness or injury or medical expenses
under any worker’s compensation statute, (b) for vested benefits under any
plan currently maintained by Ikaria that provides for retirement benefits, (c) under
any law or any policy or plan currently maintained by Ikaria that provides
health insurance continuation or conversion rights, (d) for vested rights
under the 2007 Stock Option Plan and related Notices of Stock Option Grants and
Stock Option Agreements, (e) for indemnification under Ikaria’s
certificate of incorporation,

 

9

 

by-laws or coverage under any of Ikaria’s directors
and officers insurance policies, (f) for indemnification under Section 5(h) of
the Employment Agreement or (g) that by law cannot be released or waived.

 

3.                                       Business
Expenses and Final Compensation. 
Dr. Rosskamp acknowledges
that he has been reimbursed by Ikaria for all business expenses incurred in
conjunction with the performance of his employment and that no other
reimbursements are owed to him. 
He further acknowledges
that he have received payment in full for all services rendered in conjunction
with his employment by Ikaria, including payment for all wages, bonuses, and
accrued, unused vacation time, and that he is not entitled to receive any
additional consideration beyond that provided for in the Agreement.

 

4.                                       Return
of Property.  Dr. Rosskamp
represents that he has returned all Ikaria property, unless otherwise specified
in this paragraph.  This includes all
files, memoranda, documents, records, credit cards, keys and key cards,
computers, laptops, personal digital assistants, cellular telephones,
Blackberry devices or similar instruments, other equipment of any sort, badges,
vehicles, and any other property of Ikaria. 
In addition, Dr. Rosskamp has provided any and all access codes or
passwords necessary to gain access to any computer, program, or other equipment
that belongs to Ikaria or is maintained by Ikaria or on Ikaria property.  Further, Dr. Rosskamp represents that he
has not destroyed, deleted or disabled any Ikaria property, including items,
files and materials on computers and laptops.

 

5.                                       Acknowledgements,
Effective Date and Revocation.  This Release of Claims shall not be effective
until seven (7) days after Dr. Rosskamp signs it and returns it to
Ikaria’s Senior Vice President, Human Resources, James Briggs care of Ikaria
Holdings, Inc., 6 Route 173, Clinton, NJ 08809, in the manner set forth in
paragraph 26 of the Agreement.  Dr. Rosskamp
acknowledges that he have been given at least twenty-one (21) days to consider
this Release of Claims, and that Ikaria has advised him in writing to consult
with an attorney of his own choosing prior to signing this Agreement.  He understands that he may revoke this
Release of Claims for a period of seven (7) days after signing it by
delivering to Dr. Briggs a written statement stating he wishes to revoke
this Release of Claims and not be bound by it. 
In the event of such revocation, this Release of Claims shall become
null and void and have no further effect. 
Dr. Rosskamp understands and agrees that by entering into this
Release of Claims, he is waiving any and all rights or claims he might have
under the Age Discrimination in Employment Act, as amended by the Older Workers
Benefits Protection Act, and that he has received consideration beyond that to
which he was previously entitled.

 

6.                                       Voluntary
Agreement.  Dr. Rosskamp
acknowledges and states that he has entered into this Release of Claims
knowingly and voluntarily.

 

10

 

	
  ACCEPTED:

  	
   

  	
  ACCEPTED:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ikaria
  Holdings, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Ralf Rosskamp

  	
   

  	
  /s/
  James Briggs 7/28/10

  
	
  Dr. Ralf
  Rosskamp

  	
   

  	
   

  
	
   

  	
   

  	
  Senior
  Vice President

  
	
  Date:

  	
  July
  19, 2010

  	
   

  	
  Human
  Resources

  
				

 

11

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