Document:

Exhibit
10.36

 

IKARIA HOLDINGS, INC.

 

2007 STOCK OPTION PLAN

 

NOTICE OF STOCK OPTION GRANT

 

Lota
Zoth (“Optionee”)

 

You
have been granted an option (this “Option”) to purchase Common Stock of
Ikaria Holdings, Inc. (the “Company”) as follows:

 

	
  Board
  Approval Date:

  	
   

  	
  June 8,
  2009

  
	
   

  	
   

  	
   

  
	
  Date
  of Grant (Later of Board Approval Date or Commencement of
  Employment/Consulting):

  	
   

  	
  June 8,
  2009

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price per Share:

  	
   

  	
  $9.62

  
	
   

  	
   

  	
   

  
	
  Type
  of Shares:

  	
   

  	
  Prior
  to an “Initial Public Offering” (as such term is defined in the Company’s
  Amended and Restated Certificate of Incorporation as may be amended from time
  to time), this Option shall be exercisable for shares of Non-Voting Common Stock of the
  Company. Upon and following an “Initial Public Offering” any unexercised
  portion of this Option shall automatically become exercisable instead for an
  equivalent number of shares of the Company’s Voting
  Common Stock without any further action on the part of the Company
  or Optionee.

  
	
   

  	
   

  	
   

  
	
  Total
  Number of Shares Granted:

  	
   

  	
  7,500

  
	
   

  	
   

  	
   

  
	
  Total
  Exercise Price:

  	
   

  	
  $72,150

  
	
   

  	
   

  	
   

  
	
  Type
  of Option:

  	
   

  	
  Nonstatutory
  Stock Option

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  June 7,
  2019

  
	
   

  	
   

  	
   

  
	
  Vesting
  Commencement Date:

  	
   

  	
  December 14,
  2008

  
	
   

  	
   

  	
   

  
	
  Vesting/Exercise
  Schedule:

  	
   

  	
  This
  Option shall vest and become exercisable as follows: 100% of the total number
  of shares that may be purchased pursuant to the Option shall be vested

  

 

 

	
   

  	
   

  	
  and
  become exercisable on the first anniversary of the Vesting Commencement Date
  for so long as the Optionee remains an employee of or consultant to the Company.

  
	
   

  	
   

  	
   

  
	
  Termination
  Period:

  	
   

  	
  This
  Option may be exercised for ninety (90) days after termination of employment
  or consulting relationship except as set out in Section 5 of the Stock
  Option Agreement (but in no event later than the Expiration Date). Optionee
  is responsible for keeping track of these exercise periods following
  termination for any reason of his or her service relationship with the
  Company. The Company will not provide further notice of such periods.

  
	
   

  	
   

  	
   

  
	
  Transferability:

  	
   

  	
  This
  Option may not be transferred.

  

 

By
your signature and the signature of the Company’s representative below, you and
the Company agree that this Option is granted under and governed by the terms
and conditions of the Ikaria Holdings, Inc. 2007 Stock Option Plan and the
Stock Option Agreement, both of which are attached and made a part of this
document.

 

In
addition it is a condition precedent to the exercise of this Option that you
sign and return to the Company a counterpart signature page indicating
your agreement to be bound as a “Stockholder” by the Company’s Common
Stockholders Agreement dated as of February 22, 2007, as may be amended
from time to time.

 

In
addition, you agree and acknowledge that your rights to any Shares underlying
this Option will be earned only as you provide services to the Company over
time, that the grant of this Option is not as consideration for services you
rendered to the Company prior to your Vesting Commencement Date, and that
nothing in this Notice or the attached documents confers upon you any right to
continue your employment or consulting relationship with the Company for any
period of time, nor does it interfere in any way with your right or the Company’s
right to terminate that relationship at any time, for any reason, with or without
cause.

 

	
   

  	
   

  	
  IKARIA
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Lota Zoth

  	
   

  	
  By:

  	
  /s/
  Elizabeth A. Larkin

  
	
  Lota
  Zoth

  	
   

  	
  Name:

  	
  Elizabeth
  A. Larkin

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  

 

2

 

	
  Attachments:

  	
   

  	
  Ikaria
  Holdings, Inc. 2007 Stock Option Plan

  
	
   

  	
   

  	
  Stock
  Option Agreement

  
	
   

  	
   

  	
  Exhibit A:
  Form of Exercise Notice & Restricted Stock Purchase Agreement

  
	
   

  	
   

  	
  Exhibit B:
  Form of Common Stockholders Agreement

  

 

3

 

Ikaria Holdings, Inc. 2007 Stock Option Plan

 

See
Ikaria, Inc. 2007 Stock Option Plan, as amended, filed as exhibit 10.4 to
Ikaria Inc.’s Registration Statement on Form S-1 filed on May 13,
2010.

 

 

IKARIA HOLDINGS, INC.

 

2007 STOCK OPTION PLAN

 

STOCK OPTION AGREEMENT

 

1.             Grant of Option.  Ikaria Holdings, Inc.,
a Delaware corporation (the “Company”), hereby grants to Lota Zoth (“Optionee”),
an option (the “Option”) to purchase the total number of shares of
Common Stock (the “Shares”) set forth in the Notice of Stock Option
Grant (the “Notice”), at the exercise price per Share set forth in the
Notice (the “Exercise Price”) subject to the terms, definitions and
provisions of the Ikaria Holdings, Inc. 2007 Stock Option Plan (the “Plan”)
adopted by the Company, which is incorporated in this Agreement by
reference.  Unless otherwise defined in
this Agreement, the terms used in this Agreement shall have the meanings
defined in the Plan.  This Option shall
initially be exercisable for shares of Non-Voting Common Stock of the Company; provided,
however, that in the event of an “Initial Public Offering” (as such term is
defined in the Company’s Amended and Restated Certificate of Incorporation as
may be amended from time to time), this Option shall automatically become
exercisable instead for shares of the Company’s Voting Common
Stock without any further action on the part of the Company or Optionee.

 

2.             Designation
of Option.  This Option is intended to
be an Incentive Stock Option as defined in Section 422 of the Code only to
the extent so designated in the Notice, and to the extent it is not so
designated or to the extent the Option does not qualify as an Incentive Stock
Option, it is intended to be a Nonstatutory Stock Option.

 

Notwithstanding
the above, if designated as an Incentive Stock Option, in the event that the
Shares subject to this Option (and all other Incentive Stock Options granted to
Optionee by the Company or any Parent or Subsidiary, including under other
plans of the Company) that first become exercisable in any calendar year have
an aggregate fair market value (determined for each Share as of the date of
grant of the option covering such Share) in excess of $100,000, the Shares in
excess of $100,000 shall be treated as subject to a Nonstatutory Stock Option,
in accordance with Section 5(c) of the Plan.

 

3.             Exercise of Option.  This Option shall be
exercisable during its term in accordance with the Vesting/Exercise Schedule
set out in the Notice and with the provisions of Section 10 of the Plan as
follows:

 

(a)           Right to Exercise.

 

(i)            This Option may not be
exercised for a fraction of a share.

 

(ii)           In the event of Optionee’s
death, disability or other termination of employment, the exercisability of the
Option is governed by Section 5 below, subject to the limitations
contained in this Section 3.

 

 

(iii)          In no event may this Option
be exercised after the Expiration Date of the Option as set forth in the
Notice.

 

(b)           Method of Exercise.

 

(i)            This Option shall be
exercisable by execution and delivery of (A) the Exercise Notice and
Restricted Stock Purchase Agreement attached hereto as Exhibit A (the
“Exercise Agreement”) or of any other form of written notice approved
for such purpose by the Company which shall state Optionee’s election to
exercise the Option, the number of Shares in respect of which the Option is
being exercised, and such other representations and agreements as to the holder’s
investment intent with respect to such Shares as may be required by the Company
pursuant to the provisions of the Plan and (B) a counterpart signature page to
the Company’s Common Stockholders Agreement, a copy of which is attached hereto
as Exhibit B.  Such written
notice shall be signed by Optionee and shall be delivered to the Company by
such means as are determined by the Plan Administrator in its discretion to
constitute adequate delivery.  The
written notice shall be accompanied by payment of the Exercise Price.  This Option shall be deemed to be exercised
upon receipt by the Company of such written notice accompanied by the Exercise
Price and the counterpart signature page to the Common Stockholders
Agreement.

 

(ii)           As a condition to the
exercise of this Option and as further set forth in Section 12 of the
Plan, Optionee agrees to make adequate provision for federal, state or other
tax withholding obligations, if any, which arise upon the vesting or exercise
of the Option, or disposition of Shares, whether by withholding, direct payment
to the Company, or otherwise.

 

(iii)          The Company is not
obligated, and will have no liability for failure, to issue or deliver any
Shares upon exercise of the Option unless such issuance or delivery would
comply with the Applicable Laws, with such compliance determined by the Company
in consultation with its legal counsel. 
This Option may not be exercised until such time as the Plan has been
approved by the stockholders of the Company, or if the issuance of such Shares
upon such exercise or the method of payment of consideration for such shares
would constitute a violation of any applicable federal or state securities or
other law or regulation, including any rule under Part 221 of Title
12 of the Code of Federal Regulations as promulgated by the Federal Reserve
Board.  As a condition to the exercise of
this Option, the Company may require Optionee to make any representation and
warranty to the Company as may be required by the Applicable Laws.  Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to Optionee on the date on
which the Option is exercised with respect to such Shares.

 

4.             Method of
Payment.  Payment of the Exercise
Price shall be by any of the following, or a combination of the following, at
the election of Optionee:

 

(a)           cash or check;

 

(b)           prior to the date, if any,
upon which the Common Stock becomes a Listed Security, by surrender of other
shares of Common Stock of the Company that have an aggregate

 

2

 

Fair
Market Value on the date of surrender equal to the Exercise Price of the Shares
as to which the Option is being exercised; provided, however,
that this Section 4(b) shall only apply to Options granted following
the consummation of the merger of the Company’s wholly owned subsidiary, Ikaria
Acquisition, Inc., with and into Ikaria, Inc. if permitted by the
Administrator at the time of exercise. 
In the case of shares acquired directly or indirectly from the Company,
such shares must have been owned by Optionee for more than six (6) months
on the date of surrender (or such shorter or longer period of time as may be
deemed necessary in the Administrator’s sole discretion to avoid risk of the
incurrence of adverse accounting charges by the Company);

 

(c)           following the date, if any,
upon which the Common Stock is a Listed Security, and if the Company is at such
time permitting “same day sale” cashless brokered exercises, delivery of a
properly executed exercise notice together with irrevocable instructions to a
broker participating in such cashless brokered exercise program to deliver
promptly to the Company the amount required to pay the exercise price (and
applicable withholding taxes); or

 

(d)           any other method of payment
permitted under the Plan and approved by the Administrator at the time of
exercise.

 

5.             Termination of Relationship.  Following the date of termination of Optionee’s
Continuous Service Status for any reason (the “Termination Date”),
Optionee may exercise the Option only as set forth in the Notice and this Section 5.  To the extent that Optionee is not entitled
to exercise this Option as of the Termination Date, or if Optionee does not
exercise this Option within the Termination Period set forth in the Notice or
the termination periods set forth below, the Option shall terminate in its
entirety.  In no event, may any Option be
exercised after the Expiration Date of the Option as set forth in the Notice.

 

(a)           Termination.  In the event of termination of Optionee’s
Continuous Service Status other than as a result of Optionee’s disability or
death or for Cause (as defined in the Plan), Optionee may, to the extent
Optionee is vested in the Option Shares at the date of such termination (the “Termination
Date”), exercise this Option during the Termination Period set forth in the
Notice.

 

(b)           Other Terminations.  In connection with any termination other than
a termination covered by Section 5(a), Optionee may exercise the Option
only as described below:

 

(i)            Termination upon Disability of
Optionee.  In the event of termination of Optionee’s
Continuous Service Status as a result of Optionee’s disability, Optionee may,
but only within six months from the Termination Date, exercise this Option to
the, extent Optionee was vested in the Option Shares as of such Termination
Date.

 

(ii)           Death of Optionee.  In the event of the death of Optionee (a) during
the term of this Option and while an Employee or Consultant of the Company and
having been in Continuous Service Status since the date of grant of the Option,
or (b) within ninety (90) days after Optionee’s Termination Date, the
Option may be exercised at any time within six months following the date of
death by Optionee’s estate or by a person who acquired the right to

 

3

 

exercise
the Option by bequest or inheritance, but only to the extent Optionee was
vested in the Option as of the Termination Date.

 

(iii)          Termination for Cause.  In the event Optionee’s Continuous Service
Status is terminated for Cause, the Option shall terminate immediately upon
such termination for Cause as set forth in Section 10(b)(iv) of the
Plan.  In the event Optionee’s employment
or consulting relationship with the Company is suspended pending investigation
of whether such relationship shall be terminated for Cause, all Optionee’s
rights under the Option, including the right to exercise the Option, shall be
suspended during the investigation period, also as set forth in Section 10(b)(iv) of
the Plan.

 

6.             Restrictions on Transfers of the
Option and the Shares.  This Option may not be transferred in any
manner otherwise than by will or by the laws of descent or distribution and may
be exercised during the lifetime of Optionee only by him or her.  The terms of this Option shall be binding
upon the executors, administrators, heirs, successors and assigns of
Optionee.  The Shares issued upon exercise
of this Option are subject to the restrictions on transfers set forth in the
Common Stockholders Agreement attached hereto as Exhibit B.

 

7.             Tax Consequences.  Below is a brief summary as of the date of
this Option of certain of the federal tax consequences of exercise of this
Option and disposition of the Shares under the laws in effect as of the Date of
Grant.  THIS SUMMARY IS INCOMPLETE, AND
THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE
EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

 

(a)           Incentive Stock Option.

 

(i)            Tax Treatment upon Exercise and
Sale of Shares.  If this Option qualifies as an Incentive
Stock Option, there will be no regular federal income tax liability upon the
exercise of the Option, although the excess, if any, of the fair market value
of the Shares on the date of exercise over the Exercise Price will be treated
as an adjustment to the alternative minimum tax for federal tax purposes and
may subject Optionee to the alternative minimum tax in the year of
exercise.  If Shares issued upon exercise
of an Incentive Stock Option are held for at least one year after exercise and
are disposed of at least two years after the Option grant date, any gain
realized on disposition of the Shares will also be treated as long-term capital
gain for federal income tax purposes.  If
Shares issued upon exercise of an Incentive Stock Option are disposed of within
such one-year period or within two years after the Option grant date, any gain
realized on such disposition will be treated as compensation income (taxable at
ordinary income rates) to the extent of the difference between the Exercise
Price and the lesser of (i) the fair market value of the Shares on the
date of exercise, or (ii) the sale price of the Shares.

 

(ii)           Notice of Disqualifying
Dispositions.  With respect to any Shares issued upon
exercise of an Incentive Stock Option, if Optionee sells or otherwise disposes
of such Shares on or before the later of (i) the date two years after the Option
grant date, or (ii) the date one year after the date of exercise, Optionee
shall immediately notify the Company in writing of such disposition.  Optionee acknowledges and agrees that he or
she may be subject to

 

4

 

income
tax withholding by the Company on the compensation income recognized by
Optionee from the early disposition by payment in cash or out of the current
earnings paid to Optionee.

 

(b)           Nonstatutory
Stock Option.  If this Option does not qualify
as an Incentive Stock Option, there may be a regular federal (and state) income
tax liability upon the exercise of the Option. 
Optionee will be treated as having received compensation income (taxable
at ordinary income tax rates) equal to the excess, if any, of the fair market
value of the Shares on the date of exercise over the Exercise Price.  If Optionee is an Employee, the Company will
be required to withhold from Optionee’s compensation or collect from Optionee
and pay to the applicable taxing authorities an amount equal to a percentage of
this compensation income at the time of exercise.  If Shares issued upon exercise of a
Nonstatutory Stock Option are held for at least one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
income tax purposes.

 

8.             Lock-Up
Agreement.  In connection with the
initial public offering of the Company’s securities and upon request of the
Company or the underwriters managing any underwritten offering of the Company’s
securities, Optionee hereby agrees not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise dispose of any securities of
the Company (other than those included in the registration) without the prior
written consent of such underwriters for such period (not to exceed 180 days,
but subject to such extension(s) as may be required by the underwriters in
order to publish research reports while complying with the Rule 2711 of
the National Association of Securities Dealers, Inc.) from the effective
date of such registration as may be requested by such managing underwriters and
to execute an agreement reflecting the foregoing as may be requested by the
underwriters at the time of the Company’s initial public offering.  The foregoing restrictions shall be subject
to any longer restrictive periods that may be agreed between an Optionee and
the Company, including without limitation as provided in that certain Common
Stockholders Agreement dated as of February 22, 2007, by and among the
Company and certain current holders of the Company’s Common Stock.

 

9.             Effect of
Agreement.  Optionee acknowledges
receipt of a copy of the Plan and represents that he or she is familiar with
the terms and provisions thereof (and has had an opportunity to consult counsel
regarding the Option terms), and hereby accepts this Option and agrees to be
bound by its contractual terms as set forth herein and in the Plan.  Optionee hereby agrees to accept as binding,
conclusive and final all decisions and interpretations of the Plan
Administrator regarding any questions relating to the Option.  In the event of a conflict between the terms
and provisions of the Plan and the terms and provisions of the Notice and this
Agreement, the Plan terms and provisions shall prevail.  The Option, including the Plan, constitutes
the entire agreement between Optionee and the Company on the subject matter
hereof and supersedes all proposals, written or oral, and all other
communications between the parties relating to such subject matter.

 

[BY EXECUTING THE NOTICE OF STOCK OPTION GRANT TO WHICH THIS AGREEMENT
IS ATTACHED YOU AGREE TO THE TERMS SET FORTH HEREIN]

 

5

 

EXHIBIT A

 

IKARIA HOLDINGS, INC.

 

2007 STOCK OPTION PLAN

 

EXERCISE NOTICE AND RESTRICTED STOCK PURCHASE AGREEMENT

 

This
Agreement (“Agreement”) is made as of
                                        ,
by and between Ikaria Holdings, Inc., a Delaware corporation (the “Company”),
and Lota Zoth (“Purchaser”).  To
the extent any capitalized terms used in this Agreement are not defined, they
shall have the meaning ascribed to them in the 2007 Stock Option Plan.

 

1.             Exercise of Option.  Subject to the terms and conditions
hereof, Purchaser hereby elects to exercise his or her option to purchase
                              
shares of the Non-Voting Common Stock (the “Shares”) of the Company
under and pursuant to the Company’s 2007 Stock Option Plan (the “Plan”)
and the Stock Option Agreement granted May 21, 2009 (the “Option
Agreement”).  The purchase price for
the Shares shall be $9.62 per Share for a total purchase price of
$                              .  The term “Shares” refers to the
purchased Shares and all securities received in replacement of the Shares or as
stock dividends or splits, all securities received in replacement of the Shares
in a recapitalization, merger, reorganization, exchange or the like, and all
new, substituted or additional securities or other properties to which
Purchaser is entitled by reason of Purchaser’s ownership of the Shares.  Enclosed herewith is a counterpart signature page indicating
Purchaser’s agreement to be bound as a “Stockholder” by the Company’s Common
Stockholders Agreement dated as of February 22, 2007, as may be amended
from time to time (the “Common Stockholders Agreement”).

 

2.             Time and
Place of Exercise.  The purchase and sale of the
Shares under this Agreement shall occur at the principal office of the Company
simultaneously with the execution and delivery of this Agreement in accordance
with the provisions of Section 3(b) of the Option Agreement.  On such date, the Company will deliver to
Purchaser a certificate representing the Shares to be purchased by Purchaser
(which shall be issued in Purchaser’s name) against payment of the exercise
price therefor by Purchaser by any method listed in Section 4 of the
Option Agreement.

 

3.             Limitations
on Transfer.  In addition to any other
limitation on transfer created by applicable securities laws, Purchaser shall
not assign, encumber or dispose of any interest in the Shares except in
compliance with the Common Stockholders Agreement and applicable securities
laws.

 

4.             Investment
and Taxation Representations.  In connection with the
purchase of the Shares, Purchaser represents to the Company the following:

 

(a)           Purchaser is aware of the
Company’s business affairs and financial condition and has acquired sufficient
information about the Company to reach an informed and

 

 

knowledgeable
decision to acquire the Shares. 
Purchaser is purchasing these securities for investment for his or her
own account only and not with a view to, or for resale in connection with, any “distribution”
thereof within the meaning of the Securities Act of 1933, as amended (the “Securities
Act”), or under any applicable provision of state law.  Purchaser does not have any present intention
to transfer the Shares to any person or entity.

 

(b)           Purchaser understands that
the Shares have not been registered under the Securities Act by reason of a
specific exemption therefrom, which exemption depends upon, among other things,
the bona fide nature of Purchaser’s investment intent as expressed herein.

 

(c)           Purchaser further
acknowledges and understands that the securities must be held indefinitely
unless they are subsequently registered under the Securities Act or an
exemption from such registration is available. 
Purchaser further acknowledges and understands that the Company is under
no obligation to register the securities. 
Purchaser understands that the certificate(s) evidencing the
securities will be imprinted with a legend which prohibits the transfer of the
securities unless they are registered or such registration is not required in
the opinion of counsel for the Company.

 

(d)           Purchaser is familiar with
the provisions of Rules 144 and 701, each promulgated under the Securities
Act, which, in substance, permit limited public resale of “restricted
securities” acquired, directly or indirectly, from the issuer of the securities
(or from an affiliate of such issuer), in a non-public offering subject to the
satisfaction of certain conditions. 
Purchaser understands that the Company provides no assurances as to
whether he or she will be able to resell any or all of the Shares pursuant to Rule 144
or Rule 701, which rules require, among other things, that the
Company be subject to the reporting requirements of the Securities Exchange Act
of 1934, as amended, that resales of securities take place only after the holder
of the Shares has held the Shares for certain specified time periods, and under
certain circumstances, that resales of securities be limited in volume and take
place only pursuant to brokered transactions. 
Notwithstanding this paragraph (d), Purchaser acknowledges and agrees to
the restrictions set forth in paragraph (e) below.

 

(e)           Purchaser further
understands that in the event all of the applicable requirements of Rule 144
or 701 are not satisfied, registration under the Securities Act, compliance with
Regulation A, or some other registration exemption will be required; and that,
notwithstanding the fact that Rules 144 and 701 are not exclusive, the
Staff of the Securities and Exchange Commission has expressed its opinion that
persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rule 144 or 701 will
have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and
their respective brokers who participate in such transactions do so at their
own risk.

 

(f)            Purchaser understands that
Purchaser may suffer adverse tax consequences as a result of Purchaser’s
purchase or disposition of the Shares. 
Purchaser represents that Purchaser has consulted any tax consultants
Purchaser deems advisable in connection with the purchase or disposition of the
Shares and that Purchaser is not relying on the Company for any tax advice.

 

2

 

5.             Restrictive Legends and
Stop-Transfer Orders.

 

(a)           Legends.  The certificate or certificates representing
the Shares shall bear the following legends (as well as any legends required by
applicable state and federal corporate and securities laws):

 

(i)            THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF.  NO SUCH SALE OR
DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

(ii)           THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE
TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE
COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF
THE COMPANY.

 

(b)           Stop-Transfer Notices.  Purchaser agrees that, in order to ensure
compliance with the restrictions referred to herein, the Company may issue
appropriate “stop transfer” instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

 

(c)           Refusal to Transfer.  The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred
in violation of any of the provisions of this Agreement or (ii) to treat
as owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so
transferred.

 

6.             No Employment Rights.  Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company, or a parent or subsidiary
of the Company, to terminate Purchaser’s employment or consulting relationship,
for any reason, with or without cause.

 

7.             Lock-Up Agreement.  In connection with the initial public
offering of the Company’s securities and upon request of the Company or the
underwriters managing any underwritten offering of the Company’s securities,
Purchaser agrees not to sell, make any short sale of, loan, grant any option
for the purchase of, or otherwise dispose of any securities of the Company
(other than those included in the registration) without the prior written
consent of such

 

3

 

underwriters
for such period (not to exceed 180 days, but subject to such extension(s) as
may be required by the underwriters in order to publish research reports while
complying with the Rule 2711 of the National Association of Securities
Dealers, Inc.) from the effective date of such registration as may be
requested by such managing underwriters and to execute an agreement reflecting
the foregoing as may be requested by the underwriters at the time of the
Company’s initial public offering.  The
foregoing restrictions shall be subject to any longer restrictive periods that
may be agreed between an Optionee and the Company, including without limitation
as provided in that certain Common Stockholders Agreement.

 

8.             Miscellaneous.

 

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

 

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

 

(c)           Severability.  If one or more
provisions of this Agreement are held to be unenforceable under applicable law,
the parties agree to renegotiate such provision in good faith.  In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii) the
balance of the Agreement shall be enforceable in accordance with its terms.

 

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

 

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

 

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

 

4

 

(g)           Successors
and Assigns.  The rights and benefits of
this Agreement shall inure to the benefit of, and be enforceable by the Company’s
successors and assigns.  The rights and
obligations of Purchaser under this Agreement may only be assigned with the
prior written consent of the Company.

 

(h)           California
Corporate Securities Law.  THE SALE OF THE SECURITIES
WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE
COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES
IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE
CALIFORNIA CORPORATIONS CODE.  THE RIGHTS
OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE
QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

 

[Signature Page Follows]

 

5

 

The
parties have executed this Exercise Notice and Restricted Stock Purchase
Agreement as of the date first set forth above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  IKARIA
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  Lota
  Zoth

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  

 

I,
                                        ,
spouse of Lota Zoth, have read and hereby approve the foregoing Agreement.  In consideration of the Company’s granting my
spouse the right to purchase the Shares as set forth in the Agreement, I
hereby agree to be irrevocably bound by the Agreement and further agree that
any community property or other such interest shall hereby by similarly bound
by the Agreement.  I hereby appoint my
spouse as my attorney-in-fact with respect to any amendment or exercise of any
rights under the Agreement.

 

	
   

  	
   

  
	
   

  	
  Spouse
  of Lota Zoth

  

 

6

 

NOTE:  THE FOLLOWING SHEET IS A COUNTERPART SIGNATURE
PAGE TO THE COMPANY’S COMMON STOCKHOLDER AGREEMENT, WHICH MUST ALSO BE SIGNED
AND RETURNED TO THE COMPANY IN ORDER TO EXERCISE YOUR STOCK OPTION PURSUANT TO SECTION 6
OF YOUR STOCK OPTION AGREEMENT.

 

IF
YOU ARE MARRIED YOUR SPOUSE MUST ALSO SIGN THE COUNTERPART SPOUSAL CONSENT
TO THE COMMON STOCKHOLDERS AGREEMENT.

 

 

IN
WITNESS WHEREOF, this Common Stockholders Agreement has been signed by or on
behalf of each of the parties hereto, all as of the date first above written.

 

	
   

  	
  INDIVIDUAL
  STOCKHOLDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:
  Lota Zoth

  

 

[SIGNATURE PAGE TO IKARIA
HOLDINGS, INC. COMMON STOCKHOLDERS AGREEMENT]

 

 

The
undersigned acknowledges that the undersigned has read the foregoing Common
Stockholders Agreement between the Company and the undersigned’s spouse,
understands that the undersigned’s spouse holds shares of Common Stock subject
to the provisions of such Agreement and agrees to be bound by the foregoing
Agreement.

 

	
   

  	
   

  
	
   

  	
  Spouse
  of Lota Zoth

  

 

[SIGNATURE PAGE TO IKARIA HOLDINGS, INC. COMMON STOCKHOLDERS
AGREEMENT]

 

 

EXHIBIT B

 

See
Common Stockholders Agreement among Ikaria, Inc. and the stockholders
listed on the signature pages thereto, dated as of February 22, 2007,
filed as exhibit 4.2 to Ikaria Inc.’s Registration Statement on Form S-1
filed on May 13, 2010.Exhibit 10.37

 

EXECUTION VERSION

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT AGREEMENT by and
between Ikaria Holdings, Inc., a Delaware corporation (the “Company”),
and Douglas Greene, M.D. (the “Executive”), dated as of the 31st day of
May, 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 Executive Vice President and Head of Research
and Development, 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 May 31,
2010 (the “Effective Date”), and ending on May 30, 2011 (the “Initial
Term”); provided, however, that commencing on May 30,
2011 and each annual anniversary of such date (May 30, 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
Executive Vice President and Head of Research and Development, 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.  In such capacity, the Executive shall report
to the Company’s Chief Executive Officer (the “CEO”).

 

(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, charitable and legal affairs, in each case only if, and to the
extent that, such activities do not interfere with the performance of the
Executive’s duties and responsibilities hereunder or otherwise result in a
breach of this Agreement. 
Notwithstanding anything else herein to the contrary, the Executive may (i) serve
as a director or trustee of other organizations with the prior consent

 

1

 

of the CEO (which shall not
be unreasonably withheld) and (ii) continue to provide consulting services
to clients with whom the Executive had a consulting agreement prior to the
Effective Date, with the intent to complete and cease providing these services
no later than March 31, 2011.

 

(c)           The
Executive’s services hereunder shall be performed at the Company’s headquarters,
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 no
less than $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.

 

(b)           Annual Bonus.  For each full calendar year 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 (i) shall be guaranteed at a minimum of 50% of Annual Base
Salary but (ii) shall be pro-rated based on the number of days the
Executive was an employee of the Company during 2010.

 

(c)           Signing Bonus.  Within thirty (30) days following the
Effective Date, and provided that the Executive is employed by the Company at
the time of payment, the Company shall pay the Executive a signing bonus of
$15,000 (less applicable withholdings).

 

(d)           Equity Grants.

 

(i)              Stock Option Grant.   As soon as practicable after the Effective
Date,  the Company shall grant to the
Executive a ten-year option pursuant to the Company’s 2010 Ikaria Long Term
Incentive Plan, as amended, to purchase 300,000 shares of non-voting 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”). The Option shares
shall vest as follows: 75,000 on each of the first four anniversaries of the
Effective Date provided that the Executive continues to be employed on such
date.  When fully executed by the
Company and the Executive, the terms of the Option as they relate to vesting
shall supercede and replace the terms of this subsection (i).

 

(ii)             Performance RSU Grant.  As soon as
practicable after the Effective Date, the Company shall grant to the Executive
restricted stock units in respect of 

 

2

 

150,000
shares of non-voting common stock (the “RSUs”).  Subject to the provisions
of this Agreement and the Executive’s continued employment with the Company,
the restrictions on the RSUs will lapse and the underlying shares will vest and
become non-forfeitable as follows upon achievement of one or more of the
following milestones as certified by the CEO in his discretion (each, a “Milestone”):
(A) one-third upon the marketing approval by the Food and Drug
Administration (the “FDA”) of terlipressin for the HRS-1 indication, (B) one-third
upon the marketing approval by the FDA of an additional indication for INOMAX
(either bronchopulmonary dysplasia (BPD) or acute respiratory distress syndrome
(ARDS)), and (C) one-third upon the marketing approval of IK-5001 within
the European Union.  In addition, provided that the following conditions
are met: (i) the Executive is continuously employed by the Company through
December 31, 2011, (ii) his employment is terminated thereafter in
circumstances in which Section 5(a) applies, and (iii) one or
more Milestones is achieved following the Executive’s termination but prior to December 31,
2015, then 50% of the portion of RSUs that would have vested upon achieving
each such Milestone if the Executive were still employed on such date will vest
upon achievement of the Milestone.  When fully executed by the Company and
the Executive, the terms of the RSUs as they relate to the restrictions lapsing
shall supercede and replace the terms of this subsection (ii).

 

(e)           Benefits.  During the Employment Period, the Executive
and/or the Executive’s family, as the case may be, shall be eligible to
participate in 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 

 

3

 

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 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 written 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 CEO;

 

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

 

4

 

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 CEO.  For purposes of this Agreement,
a “Change in Control” shall 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, 

 

5

 

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 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.            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, payable
in twelve (12) separate monthly installments in accordance with the Company’s
standard monthly payroll practices and subject to withholding and taxes (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.             Subject
to Section 3(d)(ii), the unvested portion of any equity compensation,
including the RSUs and the Options, 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 during the period beginning on the
Date of Termination and ending on the first anniversary of the Date of
Termination, assuming that the Executive’s employment had 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 

 

6

 

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.

 

(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.

 

If the Executive’s
employment is terminated by the Company for any reason other than for Cause,
including and limited to Termination without Cause or Termination for 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, 

 

7

 

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.

 

If
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
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 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) shall be made, provided, or commenced, as
applicable, promptly after the Date of Termination, provided that, except in
the case of 5(a)(A), 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
Sections 5(a)(B), (C), and (E) and Sections 5(c)(A) and (C) 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 Sections 5(a)(B), (C), and (E) and
Sections 5(c)(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.

 

8

 

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

 

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) through
5(c) 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 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 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 the Internal Revenue Code of 1986 as amended, and
the regulations issued thereunder (“Section 409A”), the vesting 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.

 

(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.

 

(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 non-public information about their client
and customer lists and non-public information concerning proprietary
manufacturing formulations and processes, costs, profits, real estate, markets,
sales, 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 

 

9

 

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 in furtherance of his duties
for the Company or 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) belonging to the Company 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 possess or have under the Executive’s control.

 

(b)           During the “Noncompetition Period,” the Executive shall
not, without the prior written consent of the CEO, 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 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 

 

10

 

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 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 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

 

11

 

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
only 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 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. In addition, during the term of the Executive’s employment, 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 reasonably 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.  The Company shall pay or
reimburse the Executive for all time and reasonable expenses devoted to such
cooperation.

 

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.

 

12

 

(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 by 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 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 

 

13

 

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 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 

 

14

 

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, 10 and 11 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) 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.

 

15

 

(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

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Douglas Greene

  	
   

  
	
  Douglas Greene, M.D.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  IKARIA, 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 Douglas
Greene, M.D. (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 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 or (iii) 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 compensation and 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 and the Employment Agreement constitute the complete and
final agreement between the parties and supersede and replace 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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Douglas Greene, M.D.

  

 

 

Exhibit B

Disclosed Work Product and Business Opportunities

 

The
Executive retains all ownership of, and rights to, his professional knowledge,
experience and “know-how”, and all consulting arrangements, contracts and other
business rights and opportunities to which he is or was subject or exposed
prior to the Effective Date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]