Document:

exv10w35

 

Exhibit 10.35

RETIREMENT, CONSULTING AND GENERAL RELEASE AGREEMENT

          This Retirement, Consulting and General Release Agreement (“Agreement”) is made and
entered into by and between John R. Julian, (“Julian” or “you”), on one side, and
Myogen, Inc. (“Myogen” or “the Company”), on the other side, as of the Effective Date
defined in Section 13 herein.

          Whereas, Julian and the Company previously entered into an Employment and Retention
Agreement dated October 2,2003 (“Prior Employment Agreement”);

          Whereas, Julian has notified the Company that he will retire and terminate his
employment relationship with the Company effective as of May 31, 2006 (the “Termination Date”);

          Whereas, the Company has requested that Julian provide certain consulting services to
the Company from the Termination Date through December 31, 2006 (“Consulting Period”) and Julian
has agreed to provide such services during the Consulting Period;

          Whereas, the Company accepts Julian’s retirement and termination of employment
notice and his agreement to provide consulting services to the Company;

          Whereas, Julian and the Company desire to terminate and replace in its entirety the
Prior Employment Agreement with this Agreement;

          Whereas, Julian and the Company also desire to confirm the termination of their
employment relationship effective as of the Termination Date (defined below) and enter into a
consulting relationship pursuant to the terms and conditions of this Agreement during the
Consulting Period.

          Whereas, during the Consulting Period, Julian and the Company acknowledge that
Julian’s Options (defined below) will continue to vest pursuant to the vesting schedule rates set
forth in the stock option agreements governing the Options.

          Now, Therefore, in consideration of the foregoing and the mutual covenants and
premises contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

          1. Transition Period.

                    (a) Transition Period. Commencing on March 3, 2006 (“the Transition Date”) and continuing
through the Termination Date (May 31, 2006), you will continue to serve as an employee of the
Company, with the title of Senior Advisor, reporting to the Chief Executive Officer (“Transition
Period”). During the Transition Period, you will be available to provide services to the Company
on a full-time basis. Your duties will be prescribed by the Chief Executive Officer in writing and
will focus primarily on assisting the Senior Vice President of Commercial Operations with the
set-up of the commercial infrastructure. During the Transition Period, you must be in compliance
with the appropriate policies and procedures as indicated in the Employee Handbook, and the
Proprietary Information Agreement. As of the Termination Date, you will cease to be employed by
the Company as Senior Advisor or in any other capacity.

 

 

                    (b) Salary. The Company will pay you at a rate equivalent to the annual base salary that you
were receiving as of the Transition Date until the Termination Date. These salary payments will be
made on the Company’s regular payroll dates subject to standard withholdings and deductions.

                    (c) Benefits. During the Transition Period, you will be entitled to continue your
participation in the Company’s employee health insurance and other benefit plans in effect on the
Transition Date.

          2. Accrued Salary and Paid Time Off. On the Termination Date, the Company will pay you all
accrued salary, and all accrued and unused vacation earned through the Termination Date, subject to
standard payroll deductions and withholdings. You are entitled to these payments regardless of
whether or not you sign this Agreement.

          3. Health Insurance. Following the Termination Date and to the extent provided by the federal
COBRA law or, if applicable, state insurance laws, and by the Company’s current group health
insurance policies, you will be eligible to continue your group health insurance benefits at your
own expense. Later, you may be able to convert to an individual policy through the provider of the
Company’s health insurance, if you wish. On or about the Termination Date, the Company or its
insurance carrier will provide you a COBRA notification setting forth your rights and
responsibilities with regard to COBRA coverage.

          4. Transition Period Bonus. Upon successful completion of the Transition Period, the Company
will transfer to Julian, and Julian will receive ownership of, his work laptop computer, provided,
that the Company will remove all confidential files from such computer and provided further that
Julian signs and dates the “General Release Agreement” attached as Exhibit E, after May 31, 2006,
but before June 21, 2006.

          5. Consulting Services. As consideration for the benefits provided to you under this
Agreement, you agree to provide to the Company consulting services related to the Company’s
business as requested by the Company’s CEO, or with your prior agreement and consent, the Company’s
Senior Vice President of Commercial Operations (“Consulting Services”). The Consulting Services
requested by the Company shall not exceed thirty-two (32) hours per month during the Consulting
Period unless you and the Company otherwise agree. The Consulting Services are to be performed at
such times and locations as shall be mutually convenient to you and the Company. You shall utilize
your best efforts, skills and talents in performing the Consulting Services.

                    (a) Compensation. You will be paid $250 per hour for Consulting Services rendered under this
Agreement during the Consulting Period. Notwithstanding the foregoing, Myogen shall not be
obligated to pay or reimburse Consultant more than $75,000 in the aggregate for Consulting Services
rendered under this Agreement during the Consulting Period unless Myogen has approved such
additional fees in writing in advance. During the Consulting Period, you shall submit an invoice
to Myogen monthly for such services, and Myogen will pay you for fees due hereunder within fifteen
(15) days of Myogen’s receipt of the invoice therefore.

                    (b) Expense Reimbursement. Myogen will reimburse you for incidental expenses incurred in
performing Consulting Services; provided, however, that Myogen shall not be obligated to reimburse
you for any such expenses unless (a) Myogen has approved of the expense in writing in advance and
(b) you provide Myogen with appropriate receipts or other relevant documentation for all such
expenses. Travel expenses will be subject to Myogen’s then-current travel policy.

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                    (c) Independent Contractor Status. It is understood and agreed that during the Consulting
Period, you are an independent contractor and not an employee, agent, joint venturer or partner of
the Company, and you agree not to hold yourself out as, or give any person reason to believe that
you are, an employee, agent, joint venturer or partner of the Company. You will not be entitled to
any of the benefits which Myogen may make available to its employees, such as group insurance,
profit-sharing or 401(k) benefits. You will be solely responsible for all tax returns and payments
required to be filed with or made to any federal, state or local tax authority with respect to your
performance of services and receipt of fees under this Agreement. You will regularly report
amounts paid to you by filing Form 1099-MISC with the Internal Revenue Service as required by law:
Because you are an independent contractor, Myogen will not withhold or make payments for social
security; make unemployment insurance or disability insurance contributions; or obtain worker’s
compensation insurance on your behalf. You agree to accept exclusive liability for complying with
all applicable state and federal laws governing self-employed individuals, including obligations
such as payment of taxes, social security, disability and other contributions based on fees paid to
you, your agents or employees under this Agreement. You hereby agree to indemnify and defend
Myogen against any and all such taxes or contributions, including penalties and interest. You are
free to enter any contract to provide services to other business entities, except any contract
which would induce you to violate this Agreement or the Proprietary Information Agreement.

                    (d) Proprietary Information. Julian agrees during the term of the Consulting Period and
thereafter that he will take all steps reasonably necessary to hold Myogen’s Proprietary
Information in trust and confidence, will not use Proprietary Information in any manner or for any
purpose not expressly set forth in this Agreement, and will not disclose any such Proprietary
Information to any third party without first obtaining Myogen’s express written consent on a
case-by-case basis. By way of illustration but not limitation “Proprietary Information” includes
(a) trade secrets, inventions, mask works, ideas, processes, formulas, source and object codes,
data, programs, other works of authorship, know-how, improvements, discoveries, developments,
designs and techniques (hereinafter collectively referred to as “Inventions”); and (b) information
regarding plans for research, development, new products, marketing and selling, business plans,
budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers;
and (c) information regarding the skills and compensation of other employees of Myogen.
Notwithstanding the other provisions of this Agreement, nothing received by Julian will be
considered to be Myogen Proprietary Information if (1) it has been published or is otherwise
readily available to the public other than by a breach of this Agreement; (2) it has been
rightfully received by Julian from a third party without confidential limitations; (3) it has been
independently developed for Julian by personnel or agents having no access to the Myogen
Proprietary Information; or (4) it was known to Julian prior to its first receipt from Myogen.

                    (e) Third Party Information. Julian understands that Myogen has received and will in the
future receive from third parties confidential or proprietary information (“Third Party
Information”) subject to a duty on Myogen’s part to maintain the confidentiality of such
information and use it only for certain limited purposes. Julian agrees to hold Third Party
Information in confidence and not to disclose to anyone (other than Myogen personnel who need to
know such information in connection with their work for Myogen) or to use, except in connection
with Julian ‘s work for Myogen, Third Party Information unless expressly authorized in writing by
an officer of Myogen.

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                    (f) No Conflict of Interest. Julian agrees during the term of the Consulting Period he will
not to accept work or enter into a contract or accept an obligation that is expressly prohibited by
this Agreement or directly competitive with Julian ‘s obligations under this Agreement or the scope
of services rendered for Myogen. Julian warrants that to the best of his knowledge, there is no
other existing contract or duty on Julian’s part inconsistent with this Agreement, unless a copy of
such contract or a description of such duty is attached to this Agreement as Exhibit B. Julian
further agrees not to disclose to Myogen, or bring onto Myogen’s premises, or induce Myogen to use
any confidential information that belongs to anyone other than Myogen or Julian.

                    (g) Disclosure of Work Product. As used in this Agreement, the term “Work Product” means any
Invention, whether or not patentable, and all related know-how, designs, mask works, trademarks,
formulae, processes, manufacturing techniques, trade secrets, ideas, artwork, software or other
copyrightable or patentable works. Julian agrees to disclose promptly in writing to Myogen, or
any person designated by Myogen, all Work Product which is solely or jointly conceived, made,
reduced to practice, or learned by Julian in the course of any work performed for Myogen (“Myogen
Work Product”). Julian represents that any Work Product relating to Myogen’s business or any
Project which Julian has made, conceived or reduced to practice at the time of signing this
Agreement (“Prior Work Product”) has been disclosed in writing to Myogen and attached to this
Agreement as Exhibit C. If disclosure of any such Prior Work Product would cause Julian to violate
any prior confidentiality agreement, Julian understands that he is not to list such Prior Work
Product in Exhibit C but he will disclose a cursory name for each such invention, a listing of the
party(ies) to whom it belongs, and the Fact that full disclosure as to such Prior Work Product has
not been made for that reason. A space is provided in Exhibit C for such purpose.

                    (h) Ownership of Work Product. Julian shall specifically describe and identify in Exhibit C
all technology which (a) Julian intends to use in performing under this Agreement, (b) is either
owned solely by Julian or licensed to Julian with a right to sublicense and (c) is in existence in
the form of a writing or working prototype prior to the Consulting Period (“Background
Technology”). Julian agrees that any and all Inventions conceived, written, created or first
reduced to practice in the performance of work under this Agreement shall be the sole and exclusive
property of Myogen.

                    (i) Assignment of Myogen Work Product. Except for Julian’s rights in the Background
Technology, Julian irrevocably assigns to Myogen all right, title and interest worldwide in and to
the Myogen Work Product and all applicable intellectual property rights related to the Myogen Work
Product, including without limitation, copyrights, trademarks, trade secrets, patents, moral
rights, contract and licensing rights (the “Proprietary Rights”). Except as set forth below,
Julian retains no rights to use the Myogen Work Product and agrees not to challenge the validity of
Myogen’s ownership in the Myogen Work Product. Julian hereby grants to Myogen a non-exclusive,
royalty-free, irrevocable and world-wide right, with rights to sublicense through multiple tiers of
sublicensees, to distribute, reproduce, make derivative works of, publicly perform, and publicly
display in any form or medium, whether now known or later developed, make, have made, use, sell,
import and offer for sale the Background Technology and any Prior Work Product incorporated or used
in the Myogen Work Product for the purpose of developing and marketing Myogen products but not for
the purpose of marketing Background Technology or Prior Work Products separate from Myogen
products.

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                    (j) Waiver or Assignment of Other Rights. If Julian has any rights to the Myogen Work Product
that cannot be assigned to Myogen, Julian unconditionally and
irrevocably waives the enforcement of such rights, and all claims and causes of action of any
kind against Myogen with respect to such rights, and agrees, at Myogen’s request and expense, to
consent to and join in any action to enforce such rights. If Julian has any right to the Myogen
Work Product that cannot be assigned to Myogen or waived by Julian, Julian unconditionally and
irrevocably grants to Myogen during the term of such rights, an exclusive, irrevocable, perpetual,
worldwide, fully paid and royalty-free license, with rights to sublicense through multiple levels
of sublicensees, to reproduce, create derivative works of, distribute, publicly perform and
publicly display by all means now known or later developed, such rights.

                    (k) Assistance. Julian agrees to cooperate with Myogen or its designee(s), both during and
after the Consulting Period, in the procurement and maintenance of Myogen’s rights in Myogen Work
Product and to execute, when requested, any other documents deemed necessary by Myogen to carry out
the purpose of this Agreement. Julian agrees to execute upon Myogen’s request a signed transfer of
copyright to Myogen in the form attached to this Agreement as Exhibit D for all Myogen Work Product
subject to copyright protection, including, without limitation, computer programs, notes, sketches,
drawings and reports.

                    (l) Enforcement of Proprietary Rights. Julian will assist Myogen in every proper way to
obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to
Myogen Work Product in any and all countries. To that end Julian will execute, verify and deliver
such documents and perform such other acts (including appearances as a witness) as Myogen may
reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and
enforcing such Proprietary Rights and the assignment thereof. In addition, Julian will execute,
verify and deliver assignments of such Proprietary Rights to Myogen or its designee. Julian’s
obligation to assist Myogen with respect to Proprietary Rights relating to such Myogen Work Product
in any and all countries shall continue beyond the termination of the Consulting Services, but
Myogen shall compensate Julian at a reasonable negotiated hourly rate after such termination for
the time actually spent by Julian at Myogen’s request on such assistance.

                    (m) Execution of Documents. In the event Myogen is unable for any reason, after reasonable
effort, to secure Julian’s signature on any document needed in connection with the actions
specified in the preceding Sections 4.h and 4.i, Julian hereby irrevocably designates and appoints
Myogen and its duly authorized officers and agents as his/her/its agent and attorney in fact, which
appointment is coupled with an interest, to act for and in his behalf to execute, verify and file
any such documents and to do all other lawfully permitted acts to further the purposes of the
preceding paragraph with the; same legal force and effect as if executed by Julian. Julian hereby
waives and quitclaims to Myogen any, and all claims, of any nature whatsoever, which Julian now or
may hereafter have for infringement of any Proprietary Rights assigned hereunder to Myogen.

                    (n) Termination. During the Consulting Period, if the Company reasonably determines that you
have breached any material terms of this Agreement, the Company shall notify you in writing of such
breach and you shall have thirty (30) days to cure the breach if it is capable of cure. If such
material breach is not cured within the period set forth above or if the beach is not otherwise
capable of cure, then the Company may terminate further Consulting Services by providing written
notice of such termination. In addition, you may terminate the Consulting Services at any time,
with or without cause, by giving the Company at least fifteen (15) days written notice of your
intention to terminate. In the event you shall die during the term of this Agreement or become
permanently disabled, as evidenced by your inability to carry out your job or consulting
responsibilities, as the case may be, for a continuous period of three

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months, this Agreement shall terminate on the date of your death, or the date upon which, in
the reasonable determination of the Company, you have failed to carry out your job or consulting
responsibilities for three months. The Company’s ability to terminate this Agreement as a result
of any disability shall be to the extent permitted by state and/or federal law. If not terminated
early, the Consulting Services shall terminate at the end of the Consulting Period.

          6. Stock Options. During your employment with the Company you were granted options to
purchase 364,359 shares of Common Stock (the “Options”) under the Company’s 1998 and 2003 Equity
Incentive Plans (the “Plans”). Pursuant to the Plans, your Options will continue to vest pursuant
to the vesting schedule rates set forth in the stock option agreements governing the Options until
the earlier of the termination of this Agreement pursuant to Section 5(n) or the end of the
Consulting Period. Accordingly, as of the end of the Consulting Period, the Options will be vested
and exercisable as to 121,192 shares (less any shares exercised during the Transition Period or the
Consulting Period). In accordance with the Plans, you may exercise all or any portion of your
Vested Options for a period of ninety (90) days following the Termination Date (“ISO Exercise
Period”). Following the ISO Exercise Period, and during the Consulting Period, your Vested Options
will continue to be exercisable but will be considered non-statutory Options. Upon the earlier of
the termination of this Agreement or the termination of the Consulting Period, you will have ninety
(90) days in which to exercise all or any portion of your Vested Options. Except as expressly
provided herein, all other rights and obligations with respect to the Options shall be governed by
the terms of the option grant notice, stock option agreements and the Plans.

          7. Other Compensation or Benefits. You acknowledge that, except as expressly provided in this
Agreement, you will not receive any additional compensation, severance or benefits after the
Termination Date.

          8. Expense Reimbursements. You agree that, within ten business (10) days of the Termination
Date, you will submit your final documented expense reimbursement statement reflecting all business
expenses you incurred through the Termination Date, if any, for which you seek reimbursement. The
Company will reimburse you for these expenses pursuant to its regular business practice.

          9. Return of Company Property. On or before the Termination Date, you shall return all
Company Documents and Company Property to the Company. For purposes of this Agreement, the terms
“Company Documents” and “Company Property” shall include, but not be limited to, Company files,
notes, drawings, records, business plans and forecasts, financial information, specifications,
computer-recorded information, tangible property (including, but not limited to, computers), credit
cards, entry cards, identification badges and keys; and, any materials of any kind which contain or
embody any proprietary or confidential information of the Company (and all reproductions thereof).

          10. Proprietary Information Obligations. Both during and after your employment you will
refrain from any use or disclosure of the Company’s proprietary or confidential information or
materials. You hereby acknowledge your continuing obligations under the Employee Proprietary
Information Inventions Non-Competition and Non-Solicitation Agreement executed by you and
incorporated by reference herein and attached hereto as Exhibit A (“Proprietary Information
Agreement”) not to use or disclose any confidential or proprietary information of the Company
without prior written authorization from a duly authorized representative of the Company.

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          11. Confidentiality. The provisions of this Agreement shall be held in strictest confidence
by you and the Company and shall not be publicized or disclosed in any manner whatsoever; provided,
however, that: (a) you may disclose this Agreement to your immediate family; (b) the parties may
disclose this Agreement in confidence to their respective attorneys, accountants, auditors, tax
preparers, and financial advisors; (c) the Company may disclose this Agreement as necessary to
fulfill standard or legally required corporate reporting or disclosure requirements; and (d) the
parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its
terms or as otherwise required by law.

          12. Public Statement; Non-disparagement. Julian and the Company agree that any public
statement made by either him or the Company shall affirm that Julian is retiring from the Company
and will be available for a period of time as an independent consultant/contractor. You and the
Company agree not to disparage the other party, and the other party’s officers, directors,
employees, shareholders and agents, in any manner likely to be harmful to them or their business,
business reputation or personal reputation; provided that you and the Company shall respond
accurately and fully to any question, inquiry or request for information when required by legal
process.

          13. General Release. Julian hereby generally and completely releases the Company, and its
respective directors, officers, employees, shareholders, partners, agents, attorneys, predecessors,
successors, parent and subsidiary entities, ERISA plans, current and former trustees and
administrators of ERISA plans, insurers, affiliates, and assigns (“Released Parties”) from any and
all claims, liabilities and obligations, both known and unknown, that arise out of or are in any
way related to events, acts, conduct, or omissions occurring prior to Julian’s signing this
Agreement. This general release includes, but is not limited to: (1) all claims arising out of or
in any way related to Julian’s employment with the Company or the termination of that employment;
(2) all claims related to Julian’s compensation or benefits from the Company or the Released
Parties, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in the Company or the
Released Parties; (3) all claims for breach of contract, wrongful termination and breach of the
implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy; and (5) all federal,
state, and local statutory claims, including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 and 1991 (as
amended), the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the
Employee Retirement Income and Securities Act (“ERISA”), the Family and Medical Leave Act (“FMLA”),
the federal Americans with Disabilities Act of 1990 (“ADA”), and the Colorado Anti-Discrimination
Statutes/Act, as amended, any and all protections pursuant to Colorado’s Wage Statutes, Wage Order
22, and the Fair Labor Standards Act (“FLSA”), (with the sole exclusions to any workers’
compensation claim and any claims for unemployment insurance), any wage and hour law (including any
claim for any penalties), privacy rights, whistleblower protections (under any state or federal
law, act, statute, or regulation), and constitutional protections. You represent that you have no
lawsuits, claims or actions pending in your name or on behalf of any other person or entity,
against the Company or any other person or entity subject to the release granted in this paragraph.
You agree that in the event you bring a claim covered by this release in which you seek damages
against the Company or in the event you seek to recover against the Company in any claim brought by
a governmental agency on your behalf, this Agreement shall serve as a complete defense to such
claims.

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          14. ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing
any rights you may have under the ADEA, and that the consideration given for the waiver and release
in the preceding paragraph is in addition to anything of value to which you were already entitled.
You further acknowledge that you have been advised by this writing that: (a) your waiver and
release do not apply to any rights or claims that may arise after the date you sign this Agreement;
(b) you may consult with an attorney prior to signing this Agreement (although you may choose
voluntarily not to do so); (c) you have twenty-one (21) days to consider this Agreement (although
you may voluntarily choose to sign this Agreement earlier); (d) you have seven (7) days following
the date you sign this Agreement to revoke the Agreement by providing written notice of revocation
to Myogen’s Human Resources Director; and (e) this Agreement will not be effective until the date
upon which the revocation period has expired, which will be the eighth calendar day after the date
you sign this Agreement (“Effective Date”).

          15. Termination of Prior Employment Agreement and Waiver of Rights Thereunder. Julian and the
Company hereby acknowledge and agree to terminate the Prior Employment Agreement in its entirety as
of the Effective Date of this Agreement and that the Prior Employment Agreement shall then no
longer have any force or effect. Moreover, except as expressly provided herein, Julian and the
Company acknowledge and agree to waive any rights or claims each may have under the Prior
Employment Agreement. Notwithstanding the foregoing provisions of this Paragraph 15, Julian
acknowledges and agrees that Sections 14 (Proprietary Information Obligations), 15
(Confidentiality), 16 (Non-disparagement), and 17 (Non-competition and Non-solicitation) of the
Prior Employment Agreement shall remain in full force and effect after the Effective Date of this
Agreement.

          16. Miscellaneous. This Agreement, and its Exhibits, constitutes the complete, final and
exclusive embodiment of the entire agreement between you and the Company with regard to this
subject matter. It is entered into without reliance on any promise or representation, written or
oral, other than those expressly contained herein, and it supersedes any other such promises,
warranties or representations, including, without limitation the Prior Employment Agreement (as
limited in Paragraph 15, above). This Agreement may not be modified or amended except in a writing
signed by both you and a duly authorized officer of the Company. This Agreement shall bind the
heirs, personal representatives, successors and assigns of you and the Company, and inure to the
benefit of both you and the Company, their heirs, successors and assigns, provided that you may not
assign this Agreement to a third party without first obtaining the prior written consent of the
Company. If any provision of this Agreement is determined to be invalid or unenforceable, in whole
or in part, this determination will not affect any other provision of this Agreement and the
provision in question shall be modified by the court so as to be rendered enforceable. This
Agreement shall be deemed to have been entered into and shall be construed and enforced in
accordance with the laws of the State of Colorado as applied to contracts made and to be performed
entirely within Colorado.

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          IN WITNESS WHEREOF, the parties have duly authorized and caused this Agreement to be executed
as follows:

	 	 	 	 	 	 	 
	John R. Julian	 	 	 	Myogen, Inc.
	An individual	 	 	 	A Delaware corporation
	 
	 	 	 	 	 	 
	/s/ John R. Julian

	 	 	 	By:
	 	     /s/ J. William Freytag
	 

	 	 	 	 	 	 
	John R. Julian	 	 	 	Name: J. William Freytag
	 	 	 	 	Its: CEO and President
	Date: 3/30/06	 	 	 	Date: 3/30/06

	 	 	 
	Exhibit A –

	 	Employee Proprietary Information Inventions Non-Competition
and Non-Solicitation Agreement
	Exhibit B

	 	Conflict of Interest Disclosure
	Exhibit C

	 	Prior Work Product Disclosure
	Exhibit D

	 	Assignment of Copyright
	Exhibit E

	 	General Release Agreement

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EXHIBIT A

Employee Proprietary Information Inventions Non-Competition and Non-Solicitation

Agreement

[Intentionally Omitted]

 

 

EXHIBIT B

CONFLICT OF INTEREST DISCLOSURE

None.

 

 

EXHIBIT C

PRIOR WORK PRODUCT DISCLOSURE

	 	 	 	 	 
	1.	 	Except as listed in Section 2 below, the following is a complete list of all Prior Work
Product that have been made or conceived or first reduced to practice by Julian alone or
jointly with others prior to my engagement by Myogen:
	 
	 	 	 	 
	 

	 	þ
	 	No inventions or improvements.

	 

	 	o
	 	See below:
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	o
	 	Additional sheets attached.
	 
	 	 	 	 
	2.	 	Due to a prior confidentiality agreement, Julian cannot complete the disclosure under
Section 1 above with respect to inventions or improvements generally listed below, the
proprietary rights and duty of confidentiality with respect to which Julian owes to the
following party(ies):

	 	 	 	 	 	 	 
	Invention or Improvement	 	Party(ies)	 	Relationship
	 
	 	 	 	 	 	 
	1.
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	2.
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	3.
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

	 	 	 	 	 
	 

	 	o
	 	Additional sheets attached.

BACKGROUND TECHNOLOGY DISCLOSURE

          The following is a list of all Background Technology which Julian intends to use in performing
under this Agreement:

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 

 

 

EXHIBIT D

ASSIGNMENT OF COPYRIGHT

          For good and valuable consideration which has been received, the undersigned sells, assigns
and transfers to Myogen and its successors and assigns, the copyright in and to the following work,
which was created by the following indicated author(s):

Title:                                                                                                                                             

Author(s):                                                                                                                                             

Copyright Office Identification No. (if any):                                                                                                     

and all of
the right, title and interest of the undersigned, vested and contingent, therein and thereto.

Executed this                      day of                                         , 200___

Signature:                                                                                 

Printed Name:                                                             

 

 

Exhibit E

GENERAL RELEASE AGREEMENT

In consideration for John R. Julian’s (“Julian” or “you”) eligibility to receive the Transition
Period Bonus, as described in paragraph 4 of the Retirement, Consulting and General Release
Agreement, Julian hereby generally and completely releases the Company, and its respective
directors, officers, employees, shareholders, partners, agents, attorneys, predecessors,
successors, parent and subsidiary entities, ERISA plans, current and former trustees and
administrators of ERISA plans, insurers, affiliates, and assigns (“Released Parties”) from any and
all claims, liabilities and obligations, both known and unknown, that arise out of or are in any
way related to events, acts, conduct, or omissions occurring prior to Julian’s signing this
Agreement. This general release includes, but is not limited to: (1) all claims arising out of or
in any way related to Julian’s employment with the Company or the termination of that employment;
(2) all claims related to Julian’s compensation or benefits from the Company or the Released
Parties, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in the Company or the
Released Parties; (3) all claims for breach of contract, wrongful termination and breach of the
implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy; and (5) all federal,
state, and local statutory claims, including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 and 1991 (as
amended), the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the
Employee Retirement Income and Securities Act (“ERISA”), the Family and Medical Leave Act (“FMLA”),
the federal Americans with Disabilities Act of 1990 (“ADA”), and the Colorado Anti-Discrimination
Statutes/Act, as amended, any and all protections pursuant to Colorado’s Wage Statutes, Wage Order
22, and the Fair Labor Standards Act (“FLSA”), (with the sole exclusions to any workers’
compensation claim and any claims for unemployment insurance), any wage and hour law (including any
claim for any penalties), privacy rights, whistleblower protections (under any state or federal
law, act, statute, or regulation), and constitutional protections. You represent that you have no
lawsuits, claims or actions pending in your name or on behalf of any other person or entity,
against the Company or any other person or entity subject to the release granted in this paragraph.
You agree that in the event you bring a claim covered by this release in which you seek damages
against the Company or in the event you seek to recover against the Company in any claim brought by
a governmental agency on your behalf, this Agreement shall serve as a complete defense to such
claims.

ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any
rights you may have under the ADEA, and that the consideration given for the waiver and release in
the preceding paragraph is in addition to anything of value to which you were already entitled.
You further acknowledge that you have been advised by this writing that: (a) your waiver and
release do not apply to any rights or claims that may arise after the date you sign this Agreement;
(b) you may consult with an attorney prior to signing this Agreement (although you may choose
voluntarily not to do so); (c) you have twenty-one (21) days to consider this Agreement (although
you may voluntarily choose to sign this Agreement earlier); (d) you have seven (7) days following
the date you sign this Agreement to revoke the Agreement by providing written notice of revocation
to Myogen’s Human Resources Director; and (e) this Agreement

 

 

will not be effective until the date upon which the revocation period has expired, which will be
the eighth calendar day after the date you sign this Agreement (“GR Effective Date”).

          This General Release Agreement constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and Julian with regard to the subject matter hereof. Julian
is not relying on any promise or representation by the Company that is not expressly stated herein.
This General Release Agreement may only be modified by a writing signed by both Julian and a duly
authorized officer of the Company.

          Julian accepts and agrees to the terms and conditions stated above.

	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	Sign Name:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 	 	 
	 	 	 	 	 	 	 
	J. William Freytag, CEO and Presidentexv10w36

 

Exhibit 10.36

February 21, 2006

VIA HAND DELIVERY

Michael R. Bristow, M.D., Ph.D.

Myogen, Inc.

7575 West 103rd Avenue, Suite 102

Westminster, CO 80021

Re:      Employment and Retention Agreement

Dear Dr. Bristow:

          In consideration of your employment as Founder and Scientific Advisor, Myogen, Inc. (the
“Company”) is pleased to offer you the following agreement regarding your employment with the
Company (the “Agreement”). This Agreement amends and supersedes any and all prior agreements with
respect to your employment terms, including but not limited to, that certain Employment and
Retention Agreement dated, October 1, 2003 and that certain Employee Proprietary Information and
Inventions Agreement dated as of September 23, 1998 and effective May 1, 1998.

          1. Employment. The Company hereby agrees to employ you and you hereby accept such employment
upon the terms and conditions set forth herein and agree to perform such duties as are commensurate
with your office as prescribed by the Chief Executive Officer of the Company.

          2. Duties. You shall render non-exclusive, part-time services to the Company as its Founder
and Scientific Advisor. You will be required to devote a minimum of four (4) hours per week to the
Company and your duties to the Company will include supporting the Company’s existing research and
development programs (including activities relating to the Company’s Collaboration Agreement with
Novartis Institutes for Biomedical Research, Inc.) and identifying and performing due diligence on
candidates for in-licensing by the Company. The responsibilities, title, working conditions,
duties and/or any other aspect of your employment may be changed, added to or eliminated during
your employment with your prior consent. During the term of your employment hereunder, you shall
devote your best efforts, skill and attention to the performance of your duties on behalf of the
Company.

          3. Compensation. For all services rendered and to be rendered hereunder, and for the other
agreements by you contained herein, the Company agrees to pay you, and you agree to accept a salary
of $100,000 per annum. Such salary will be subject to review and adjustment on an annual basis in
accordance with the procedures set forth by the Company’s Board of Directors or Compensation
Committee of the Board of Directors. Any such salary shall be payable pursuant to the Company’s
payroll procedures which may be changed by the Company from time to time and shall be subject to
such deductions or withholdings as the Company is required to make pursuant to law, or by further
agreement with you. In addition to your base salary, you

 

 

may be eligible to receive cash and stock bonuses pursuant to a bonus plan as may be adopted
by the Board of Directors or the Compensation Committee of the Board of Directors. As a part-time
employee, you are not eligible to accrue vacation time or participate in the Company’s standard
benefit programs.

          4. Termination. You and the Company each acknowledge that either party has the right to
terminate your employment with the Company at any time for any reason whatsoever, with or without
cause or advance notice. On your last date of employment with the Company, the Company shall pay
you (i) any salary earned but unpaid prior to termination of your employment, and (ii) any business
expenses incurred by you in connection with your performance of your duties, according to the
policies of the Company, that were incurred but not reimbursed as of the date of termination.
Vesting of any of your stock options outstanding on the date of termination shall cease on the date
of termination. You agree to be bound by the provisions of Section 10 of this Agreement subsequent
to the termination of your employment with the Company.

          5. At-Will Employment. Nothing in this Agreement alters the at-will nature of your employment
relationship with the Company. Subject to the terms of this Agreement, either you or the Company
may terminate your employment relationship at any time, with or without cause or advance notice.

          6. Return of Company Property. By the date specified by the Company in its sole discretion,
you agree to return to the Company all Company documents (and all copies thereof) and other Company
property which you have had in your possession at any time prior thereto, including, but not
limited to, Company files, notes, drawings, records, business plans and forecasts, financial
information, specifications, computer-recorded information, tangible property (including, but not
limited to, computers, pagers, cellular phones and personal digital assistants), credit cards,
entry cards, identification badges and keys; and, any materials of any kind which contain or embody
any proprietary or confidential information of the Company (and all reproductions thereof).

          7. Proprietary Information Obligations. Both during and after your employment you will
refrain from any use or disclosure of the Company’s proprietary or confidential information or
materials. In addition, you hereby acknowledge your continuing obligations under the Employee
Proprietary Information and Inventions Agreement executed of even date herewith, a copy of which is
attached hereto as Exhibit A, not to use or disclose any confidential or proprietary
information of the Company without prior written authorization from a duly authorized
representative of the Company.

          8. Confidentiality. The provisions of this Agreement shall be held in strictest confidence by
you and the Company and shall not be publicized or disclosed in any manner whatsoever; provided,
however, that: (a) you may disclose this Agreement to your immediate family; (b) the parties may
disclose this Agreement in confidence to their respective attorneys, accountants, auditors, tax
preparers, and financial advisors; (c) the Company may disclose this Agreement as necessary to
fulfill standard or legally required corporate reporting or disclosure requirements; and (d) the
parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its
terms or as otherwise required by law.

2.

 

          9. Non-Disparagement. Both during and after your employment with the Company, you and the
Company agree not to disparage the other party, and you agree not to disparage the Company’s
officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them
or their business, business reputation or personal reputation; provided that both you and the
Company shall respond accurately and fully to any question, inquiry or request for information when
required by legal process.

          10. Non-competition and Non-solicitation. You acknowledge that you are a member of senior
management and scientific personnel at the Company. You further acknowledge that during your
employment at the Company, you have been and will be privy to extremely sensitive, confidential and
valuable commercial information, which constitutes trade secrets belonging to the Company, the
disclosure of which information and secrets would greatly harm the Company.

                    (a) Covenant Not to Compete. As a reasonable measure to protect the Company from the harm of
such disclosure and use of its information and trade secrets against it, you agree to the following
as part of this Agreement: you agree that you shall not, individually or together with others,
directly or indirectly, for a period of twelve months following the termination of your employment
with the Company, for any reason, whether as an owner, consultant, partner, joint venturer,
stockholder, broker, agent, financial agent, principal, trustee, licensor or in any other capacity
whatsoever (i) own, manage, operate, join, control, finance or participate in the ownership,
management, operation, control or financing of, or be connected as an officer, director, executive,
partner, principal, agent, representative, consultant, licensor, licensee or otherwise with, any
business or enterprise which is a Conflicting Organization (as defined in Exhibit B
attached hereto), and (ii) sell or assist in the design, development, manufacture, licensing, sale,
marketing or support of any Conflicting Product or Service (as defined in Exhibit B
attached hereto), or engage in any other manner, in any Conflicting Organization. The Company and
you agree that no more than 1% of the outstanding voting stock of a publicly traded company or any
stock currently owned by you shall not constitute a violation of this paragraph. You further agree
and acknowledge that because of the nature and type of business that the Company engages in, the
geographic scope of the covenant not to compete shall include all counties, cities, and states of
the United States and any other country, territory or region in which the Company conducts business
and that such a geographic scope is reasonable. Nothing in this paragraph should be construed to
narrow your obligations imposed by any other provision herein, any other agreement, law or other
source.

                    (b) Non-solicitation Covenant. As a reasonable measure to protect the Company from the harm
of such disclosure and use of its information and trade secrets against it, you agree to the
following as part of this Agreement: you acknowledge and agree that information regarding employees
of the Company is Proprietary Information (as defined in your Employee Proprietary Information and
Inventions Agreement), including without limitation, the names of the Company employees;
information regarding the skills and knowledge of employees of the Company; information regarding
any past, present, or intended compensation, benefits, policies and incentives for employees of the
Company; and information regarding the management and reporting structure of the Company. You
agree that you will not, individually or with others, directly or indirectly (including without
limitation, individually or through any business, venture, proprietorship, partnership, or
corporation in which they control or own more

3.

 

than a five percent interest, through any agents, through any contractors, through recruiters,
by their successors, by their employees, or by their assigns) solicit, or induce any employee of
the Company to leave the Company during the period you are employed by the Company, and for a
period of twelve months following the termination of your employment with the Company. You further
agree that for twelve months following the separation, resignation or termination of your
employment with the Company, you will not, either directly or indirectly, solicit or attempt to
solicit any customer, client, supplier, investor, vendor, consultant or independent contractor of
the Company to terminate, reduce or negatively alter his, her or its relationship with the Company;
provided, however, nothing contained herein shall prevent you from hiring any such employee who
responds to a general hiring program conducted in the ordinary course of business not specifically
directed to such employees or who approaches you on a wholly unsolicited basis. The geographic
scope of the covenants in this paragraph 10(b) shall include any city, county, or state of the
United States and any such other city, territory, country, or jurisdiction in which the Company
does business. Nothing in this paragraph should be construed to narrow the your obligations
imposed by any other provision herein, any other agreement, law or other source.

                    (c) Reasonable. You agree and acknowledge that the time limitation and the geographic scope
on the restrictions in this paragraph 10 and its subparts are reasonable. You also acknowledge and
agree that the limitation in this paragraph 10 and its subparts is reasonably necessary for the
protection of the Company, that through the compensation and other benefits provided under this
Agreement and your prior agreements with the Company you shall receive adequate consideration for
any loss of opportunity associated with the provisions herein, and that these provisions provide a
reasonable way of protecting the Company’s business value which was imparted to you. In the event
that any term, word, clause, phrase, provision, restriction, or section of this paragraph 10 of
this Agreement is more restrictive than permitted by the law of the jurisdiction in which the
Company seeks enforcement thereof, the provisions of this Agreement shall be limited only to the
extent that a judicial determination finds the same to be unreasonable or otherwise unenforceable.
Moreover, notwithstanding any judicial determination that any term, word, clause, phrase,
provision, restriction, or section of this Agreement is not specifically enforceable, the Company
and you intend that the Company shall nonetheless be entitled to recover monetary damages as a
result of any breach hereof.

                    (d) Legal and Equitable Remedies. In view of the nature of the rights in goodwill, employee
relations, trade secrets, and business reputation and prospects of the Company to be protected
under this paragraph 10 of this Agreement, you understand and agree that the Company could not be
reasonably or adequately compensated in damages in an action at law for your breach of your
obligations (whether individually or together) hereunder. Accordingly, you specifically agree that
the Company shall be entitled to temporary and permanent injunctive relief, specific performance,
and other equitable relief to enforce the provisions of this paragraph 10 of this Agreement and
that such relief may be granted without the necessity of proving actual damages, and without bond.
You acknowledge and agree that the provisions in this paragraph 10 and its subparts are essential
and material to this Agreement, and that upon breach of this paragraph 10 by you, the Company is
entitled to withhold providing payments or consideration, to equitable relief to prevent continued
breach, to recover damages and to seek any other remedies available to the Company. This provision
with respect to injunctive relief shall not, however, diminish the right of the Company to claim
and recover damages or other remedies in addition to equitable relief.

4.

 

                    (e) Extension of Time. In the event that you breach any covenant, obligation or duty in this
paragraph 10 or its subparts, any such duty, obligation, or covenants to which you and the Company
agreed by this paragraph 10 and its subparts shall automatically toll from the date of the first
breach, and all subsequent breaches, until the resolution of the breach through private settlement,
judicial or other action, including all appeals. The duration and length of your duties and
obligations as agreed by this paragraph 10 and its subparts shall continue upon the effective date
of any such settlement, or judicial or other resolution.

          The provisions of this paragraph 10 shall supersede any prior understanding or agreement
between the Company and you with regard to the subject matter of this paragraph 10.

          11. Miscellaneous. This Agreement constitutes the complete, final and exclusive embodiment of
the entire agreement between you and the Company with regard to your employment terms. It is
entered into without reliance on any promise or representation, written or oral, other than those
expressly contained herein, and it supersedes any other such promises, warranties or
representations. This Agreement may not be modified or amended except in writing signed by you and
a duly authorized officer of the Company. This Agreement will be deemed to have been entered into
and will be construed and enforced in accordance with the laws of the State of Colorado as applied
to contracts made and to be performed entirely within Colorado.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

5.

 

          The Company appreciates your continuing contributions to Myogen, Inc. Please sign below
to indicate your understanding and acceptance of this Agreement and return the signed original to
me at your earliest convenience.

	 	 	 	 	 
	Very truly yours,	 	 
	 
	 	 	 	 
	Myogen, Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ J. William Freytag
 

	 	 
	 
	 	 	 	 
	Name: J. William Freytag	 	 
	 
	 	 	 	 
	Title: CEO & President	 	 
	 
	 	 	 	 
	Understood and Agreed:	 	 
	 
	 	 	 	 
	/s/ Michael R. Bristow	 	 
	 	 	 
	Michael R. Bristow, M.D., Ph.D.	 	 

6.

 

Exhibit A

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

[Intentionally Omitted]

 

 

Exhibit B

CERTAIN DEFINED TERMS

          Definition of Conflicting Product or Service. As used in this Agreement, a “Conflicting
Product or Service” means any drug or therapeutic, biological materials or information relating to
biological materials such as cell lines, antibodies, tissue samples, proteins, nucleic acids and
the like, product, process, formula, system, development tool, application, or service of any
person or organization other than the Company, in existence or under development, which competes
with a drug or therapeutic, biological materials or information relating to biological materials
such as cell lines, antibodies, tissue samples, proteins, nucleic acids and the like, product,
process, formula, system, development tool, application, or service of the Company, that is being
or has been marketed, under development, or part of the Company’s business development plans at
such time as you terminate employment with the Company, including, but not limited to
cardiovascular therapeutics.

          Definition of Conflicting Organization. As used in this Agreement, a “Conflicting
Organization” means any person or organization other than the Company that is engaged in or is
about to become engaged in the design, research, development, production, marketing, distribution,
leasing, licensing, selling, or servicing of a Conflicting Product or Service, including, but not
limited to cardiovascular therapeutics.

          Notwithstanding the foregoing, with respect to the non-competition provisions contained in
this Agreement, “Conflicting Organization” shall not include ARCA Discovery, Inc. and “Conflicting
Product or Service” shall not include any product, service or activity of ARCA Discovery, Inc.
provided that such product, service or activity is permitted by the terms of that Certain Strategic
Alliance Agreement by and between the Company and ARCA Discovery, Inc., dated of even date
herewith, as amended from time to time.

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