Document:

Prepared by R.R. Donnelley Financial -- Form of Employment, Confidential Information, Invention Assignment & Arbitration

 Exhibit 10.3 
  
 Conor Medsystems, Inc. 
 EMPLOYMENT, CONFIDENTIAL INFORMATION, 
 INVENTION ASSIGNMENT, 

AND ARBITRATION AGREEMENT 
  
 As a condition of my employment with Conor Medsystems, Inc., its subsidiaries, affiliates, successors or assigns (together the “Company”), and
in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by Company, I agree to the following: 
  
 1. At-Will Employment. I understand and acknowledge that my employment with the company is for an unspecified duration and constitutes
“at-will” employment. I also understand that any representation to the contrary is unauthorized and not valid unless obtained in writing and signed by the president of the company. I acknowledge that this employment relationship may be
terminated at any time, with or without good cause or for any or no cause, at the option either of the company or myself, with or without notice. 
  
 2. Confidential Information. 
  
 (a) Company Information. I agree at all times during the term of my employment and thereafter, to hold in strictest
confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm or corporation without written authorization of the Board of Directors of the Company, any Confidential Information of the Company, except under a
non-disclosure agreement duly authorized and executed by the Company. I understand that “Confidential Information” means any non-public information that relates to the actual or anticipated business or research and development of the
Company, technical data, trade secrets or know-how, including, but not limited to, research, product plans or other information regarding Company’s products or services and markets therefor, customer lists and customers (including, but not
limited to, customers of the Company on whom I called or with whom I became acquainted during the term of my employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration
information, marketing, finances or other business information. I further understand that Confidential Information does not include any of the foregoing items which have become publicly known and made generally available through no wrongful act of
mine or of others who were under confidentiality obligations as to the item or items involved or improvements or new versions thereof. 
  
 (b) Former Employer Information. I agree that I will not, during my employment with the Company, improperly use or disclose
any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that I will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any such
employer, person or entity unless consented to in writing by such employer, person or entity. 
  

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 (c) Third Party Information. I recognize that the Company has received and
in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. I agree to
hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with the Company’s
agreement with such third party. 
  
 3. Inventions.

  
 (a) Inventions Retained and
Licensed. I have attached hereto, as Exhibit A, a list describing all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to my employment with the Company (collectively
referred to as “Prior Inventions”), which belong to me, which relate to the Company’s proposed business, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I
represent that there are no such Prior Inventions. If in the course of my employment with the Company, I incorporate into a Company product, process or service a Prior Invention owned by me or in which I have an interest, I hereby grant to the
Company a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or service, and to practice any
method related thereto. 
  
 (b) Assignment
of Inventions. I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title, and interest
in and to any and all inventions, original works of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks or trade secrets, whether or not patentable or registrable under copyright or similar laws, which I may
solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time I am in the employ of the Company (collectively referred to as “Inventions”), except as
provided in Section 3(f) below. I further acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of and during the period of my employment with the Company and which are protectable by
copyright are “works made for hire,” as that term is defined in the United States Copyright Act. I understand and agree that the decision whether or not to commercialize or market any invention developed by me solely or jointly with others
is within the Company’s sole discretion and for the Company’s sole benefit and that no royalty will be due to me as a result of the Company’s efforts to commercialize or market any such invention. 
  
 (c) Inventions Assigned to the United States.
I agree to assign to the United States government all my right, title, and interest in and to any and all Inventions whenever such full title is required to be in the United States by a contract between the Company and the United States or any of
its agencies. 
  

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 (d) Maintenance of Records. I agree to keep and maintain adequate and
current written records of all Inventions made by me (solely or jointly with others) during the term of my employment with the Company. The records will be in the form of notes, sketches, drawings, and any other format that may be specified by the
Company. The records will be available to and remain the sole property of the Company at all times. 
  
 (e) Patent and Copyright Registrations. I agree to assist the Company, or its designee, at the Company’s expense, in
every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all
pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to
assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating
thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement. If the Company is unable because of my mental or
physical incapacity or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Inventions or original works of authorship assigned to the
Company as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all
other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me. 
  
 (f) Exception to Assignments. I understand that the provisions of this Agreement requiring
assignment of Inventions to the Company do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870 (attached hereto as Exhibit B). I will advise the Company promptly in writing of any
inventions that I believe meet the criteria in California Labor Code Section 2870 and not otherwise disclosed on Exhibit A. 
  
 4. Conflicting Employment. I agree that, during the term of my employment with the Company, I will not engage in any other employment,
occupation or consulting directly related to the business in which the Company is now involved or becomes involved during the term of my employment, nor will I engage in any other activities that conflict with my obligations to the Company.

  
 5. Returning Company Documents. I agree that, at
the time of leaving the employ of the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by me pursuant to my employment with the 

  

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Company or otherwise belonging to the Company, its successors or assigns, including, without limitation, those records maintained pursuant to paragraph 3(d).
In the event of the termination of my employment, I agree to sign and deliver the “Termination Certification” attached hereto as Exhibit C. 
  
 6. Notification of New Employer. In the event that I leave the employ of the Company, I hereby grant consent to notification by the Company
to my new employer about my rights and obligations under this Agreement. 
  
 7. Solicitation of Employees. I agree that for a period of twelve (12) months immediately following the termination of my relationship with the Company for any reason, whether with or without cause, I
shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of the
Company, either for myself or for any other person or entity. 
  
 8. Conflict of Interest Guidelines. I agree to diligently adhere to the Conflict of Interest Guidelines attached as Exhibit D hereto. 
  
 9. Representations. I agree to execute any proper oath or verify any proper document required to carry out the
terms of this Agreement. I represent that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Company. I
hereby represent and warrant that I have not entered into, and I will not enter into, any oral or written agreement in conflict herewith. 
  
 10. Arbitration and Equitable Relief. 
  
 (a) Arbitration. In consideration of my employment with the company, its promise to arbitrate all employment-related
disputes and my receipt of the compensation, pay raises and other benefits paid to me by the company, at present and in the future, I agree that any and all controversies, claims, or disputes with anyone (including the company and any employee,
officer, director, shareholder or benefit plan of the company in their capacity as such or otherwise) arising out of, relating to, or resulting from my employment with the company or the termination of my employment with the company, including any
breach of this agreement, shall be subject to binding arbitration under the arbitration rules set forth in the California Code Of Civil Procedure section 1280 through 1294.2, including section 1283.05 (the “Rules”) and pursuant to
California law. Disputes which I agree to arbitrate, and thereby agree to waive any right to a trial by jury, include any statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of
1964, the Americans With Disabilities Act of 1990, the Age Discrimination In Employment Act of 1967, the Older Workers Benefit Protection Act, the California Fair Employment And Housing Act, the California Labor Code, claims of harassment,
discrimination or wrongful termination and any statutory claims. I further understand that this agreement to arbitrate also applies to any disputes that the company may have with me. 
  

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 (b) Procedure. I agree that any arbitration will be administered by the
American Arbitration Association (“AAA”) and that the neutral arbitrator will be selected in a manner consistent with its national rules for the resolution of employment disputes. I agree that the arbitrator shall have the power to decide
any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. I also agree that the arbitrator shall have the power to award
any remedies, including attorneys’ fees and costs, available under applicable law. I understand the company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that I shall pay the first $200.00 of any filing
fees associated with any arbitration I initiate. I agree that the arbitrator shall administer and conduct any arbitration in a manner consistent with the Rules and that to the extent that the AAA’s national rules for the resolution of
employment disputes conflict with the Rules, the Rules shall take precedence. I agree that the decision of the arbitrator shall be in writing. 
  
 (c) Remedy. Except as provided by the rules and this agreement, arbitration shall be the sole, exclusive and final remedy
for any dispute between the Company and me. Accordingly, except as provided for by the rules and this agreement, neither the Company nor I will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding,
the arbitrator will not have the authority to disregard or refuse to enforce any lawful company policy, and the arbitrator shall not order or require the company to adopt a policy not otherwise required by law which the company has not adopted.

  
 (d) Availability of Injunctive
Relief. In addition to the right under the rules to petition the court for provisional relief, I agree that any party may also petition the court for injunctive relief where either party alleges or claims a violation of the Employment,
Confidential Information, Invention Assignment Agreement between me and the company or any other agreement regarding trade secrets, confidential information, nonsolicitation or labor code §2870. I understand that any breach or threatened breach
of such an agreement will cause irreparable injury and that money damages will not provide an adequate remedy therefore, and both parties hereby consent to the issuance of an injunction. In the event either party seeks injunctive relief, the
prevailing party shall be entitled to recover reasonable costs and attorney fees. 
  
 (e) Administrative Relief. I understand that this agreement does not prohibit me from pursuing an administrative claim with
a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission or the Workers’ Compensation Board. This agreement does, however, preclude me from pursuing court
action regarding any such claim. 
  
 (f)
Voluntary Nature of Agreement. I acknowledge and agree that I am executing this agreement voluntarily and without any duress or undue influence by the Company or anyone else. I further acknowledge and agree that I have carefully read
this agreement and that I have asked any 

  

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questions needed for me to understand the terms, consequences and binding effect of this agreement and fully understand it, including that I am waiving
my right to a jury trial. Finally, I agree that I have been provided an opportunity to seek the advice of an attorney of my choice before signing this agreement. 
  
 11. General Provisions. 
  
 (a) Governing Law; Consent to Personal Jurisdiction. This Agreement will be governed by the
laws of the State of California. I hereby expressly consent to the personal jurisdiction of the state and federal courts located in California for any lawsuit filed there against me by the Company arising from or relating to this Agreement.

  
 (b) Entire Agreement. This
Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter contained herein and supersedes all prior discussions or representations between us including, but not limited to, any
representations made during my interview(s) or relocation negotiations, whether written or oral. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the
President of the Company and me. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. 
  

(c) Severability. If one or more of the provisions in this Agreement are deemed void by law, then the remaining
provisions will continue in full force and effect. 
  
 (d) Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. 
  
 Date: 
  

	
	
	 
	 Signature

	
	 
	 Name of Employee (typed or printed)

  

 Page 6 of 11 

 Exhibit A 
  
 LIST OF PRIOR INVENTIONS 
 AND ORIGINAL WORKS OF AUTHORSHIP 
  

					
	 Title

	 	 Date

	 	 Identifying Number or Brief Description

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  
  ̈ No inventions or improvements 
  
  ̈ Additional Sheets Attached 
  

			
		
	Signature of Employee:	 	 

			
		
	 Print Name of Employee:
	 	 

			
		
	 Date:
	 	 

  

 Page 7 of 11 

 Exhibit B 
  
 CALIFORNIA LABOR CODE SECTION 2870 
 INVENTION ON OWN TIME-EXEMPTION FROM AGREEMENT 
  
 “(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 
  

	 	(1)	Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the
employer; or 

  

	 	(2)	Result from any work performed by the employee for the employer. 

  
 (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to
be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.” 
  

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 Exhibit C 
  
 CONOR MEDSYSTEMS, INC. 
  
 TERMINATION CERTIFICATION 
  
 This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items belonging to Conor Medsystems, Inc., its subsidiaries, affiliates, successors or assigns
(together, the “Company”). 
  
 I further certify that I
have complied with all the terms of the Company’s Employment, Confidential Information, Invention Assignment and Arbitration Agreement signed by me, including the reporting of any inventions and original works of authorship (as defined
therein), conceived or made by me (solely or jointly with others) covered by that agreement. 
  
 I further agree that, in compliance with the Employment, Confidential Information, Invention Assignment, and Arbitration Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or
other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of authorship, customer lists, business plans, financial information
or other subject matter pertaining to any business of the Company or any of its employees, clients, consultants or licensees. 
  
 I further agree that for twelve (12) months from this date, I will not hire any employees of the Company and I will not solicit, induce, recruit or
encourage any of the Company’s employees to leave their employment. 
  
 Date:

  

	
	
	 
	 (Employee’s Signature)

	
	 
	 (Type/Print Employee’s Name)

  

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 Exhibit D 
  
 CONOR MEDSYSTEMS, INC. 
  
 CONFLICT OF INTEREST GUIDELINES 
  
 It is the policy of Conor Medsystems, Inc. to conduct its affairs in strict compliance with the letter and spirit of the law and to adhere to the highest
principles of business ethics. Accordingly, all officers, employees and independent contractors must avoid activities which are in conflict, or give the appearance of being in conflict, with these principles and with the interests of the Company.
The following are potentially compromising situations which must be avoided. Any exceptions must be reported to the President and written approval for continuation must be obtained. 
  

	 	1.	Revealing confidential information to outsiders or misusing confidential information. Unauthorized divulging of information is a violation of this policy whether or not for personal
gain and whether or not harm to the Company is intended. (The Employment, Confidential Information, Invention Assignment and Arbitration Agreement elaborates on this principle and is a binding agreement.) 

  

	 	2.	Accepting or offering substantial gifts, excessive entertainment, favors or payments which may be deemed to constitute undue influence or otherwise be improper or embarrassing to
the Company. 

  

	 	3.	Participating in civic or professional organizations that might involve divulging confidential information of the Company. 

  

	 	4.	Initiating or approving any form of personal or social harassment of employees. 

  

	 	5.	Investing or holding outside directorship in suppliers, customers, or competing companies, including financial speculations, where such investment or directorship might influence in
any manner a decision or course of action of the Company. 

  

	 	6.	Borrowing from or lending to employees, customers or suppliers. 

  

	 	7.	Acquiring real estate of interest to the Company. 

  

	 	8.	Improperly using or disclosing to the Company any proprietary information or trade secrets of any former or concurrent employer or other person or entity with whom obligations of
confidentiality exist. 

  

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	 	9.	Unlawfully discussing prices, costs, customers, sales or markets with competing companies or their employees. 

  

	 	10.	Making any unlawful agreement with distributors with respect to prices. 

  

	 	11.	Improperly using or authorizing the use of any inventions which are the subject of patent claims of any other person or entity. 

  

	 	12.	Engaging in any conduct which is not in the best interest of the Company. 

  
 Each officer, employee and independent contractor must take every necessary action to ensure compliance with these guidelines and to bring problem areas
to the attention of higher management for review. Violations of this conflict of interest policy may result in discharge without warning. 
  

 Page 11 of 11Prepared by R.R. Donnelley Financial -- Employment Letter Agreement between Registrant and Frank Litvack, M.D.

 Exhibit 10.13 
  
 March 4, 2004 
  
 VIA HAND DELIVERY 
  
 Frank Litvack 
 Conor Medsystems, Inc. 
  

	Re:	New Employment Terms 

  
 Dear Frank: 
  
 As we discussed, this letter (the
“Agreement”) sets forth the new terms and conditions of your employment relationship with Conor Medsystems, Inc. (the “Company”). On March 4, 2004, these terms and conditions were approved by the Company’s Board of Directors
(“Board”). Except as expressly stated herein, this Agreement supersedes and replaces all previous agreements between you and the Company, including but not limited to your Engagement Letter dated January 1, 2002 and your Contract Extension
dated August 7, 2003. As noted below, your current stock option grants are not affected by this Agreement. The terms contained in this Agreement will become effective as of the date that both you and the Company sign this Agreement (the
“Effective Date”). 
  

	1.	Position and Reporting Relationship 

  
 You will continue to be employed in the full-time employment position of Chief Executive Officer (“CEO”) reporting to the Company’s Board. 
  

	2.	Base Salary 

  
 Your monthly base salary will continue to be $4,000, less standard payroll deductions and withholdings and paid in accordance with the Company’s normal payroll schedule. Contingent upon your continued employment
as CEO, it is anticipated that your base salary will continue at this rate until at least December 31, 2005. 
  

	3.	Option Grants 

  
 Your current stock options are not affected by this Agreement, and your current stock option agreements will remain in full force and effect in accordance with their terms. As approved by the Board on March 4, 2004,
the Company granted you the following four (4) new stock option grants under the Company’s 1999 Stock Plan (the “Plan”): 
  
 (a) First New Grant. The Company granted you an option to purchase one hundred sixty-eight thousand (168,000) shares of the Company’s Common
Stock (the “First New Grant”) at a per share price of twenty cents ($0.20), which is the fair market value of the Common Stock 

  

 Frank Litvack 
 March
4, 2004 
 Page 2 
  

 
as of March 4, 2004 as determined by the Board. The First New Grant is governed by the terms and conditions of the Plan and your stock option grant
agreement, which includes a vesting schedule, contingent upon your continued employment as CEO, pursuant to which the First New Grant shares shall vest in twelve (12) equal monthly installments of fourteen thousand (14,000) shares each, the first
such installment to vest as of January 31, 2005, and the remaining installments to vest on the last day of each full calendar month thereafter until the First New Grant is fully vested; 
  
 (b) Second New Grant. The Company granted you an option to purchase six hundred fifty thousand (650,000) shares of
the Company’s Common Stock (the “Second New Grant”) at a per share price of twenty cents ($0.20), which is the fair market value of the Common Stock as of March 4, 2004 as determined by the Board. The Second New Grant is governed by
the terms and conditions of the Plan and your stock option grant agreement, which includes an eighteen (18) month vesting schedule, contingent upon your continued employment as CEO, pursuant to which one-eighteenth (1/18th) of the shares will vest as of July 31, 2004, and on the last day of each full calendar month thereafter until the Second New
Grant is fully vested; 
  
 (c) Third New Grant. The Company
granted you an option to purchase five hundred thousand (500,000) shares of the Company’s Common Stock (the “Third New Grant”) at a per share price of twenty cents ($0.20), which is the fair market value of the Common Stock as of
March 4, 2004 as determined by the Board. The Third New Grant is governed by the terms and conditions of the Plan and your stock option grant agreement, which includes an eighteen (18) month vesting schedule, contingent upon your continued
employment as CEO and/or your continued service as Chairman of the Board, pursuant to which one-eighteenth (1/18th)
of the shares will vest as of July 31, 2004, and on the last day of each full calendar month thereafter until the Third New Grant is fully vested; 
  
 (d) Fourth New Grant. The Company granted you an option to purchase one hundred thousand (100,000) shares of the Company’s Common Stock (the
“Fourth New Grant”) at a per share price of twenty cents ($0.20), which is the fair market value of the Common Stock as of March 4, 2004 as determined by the Board. The Fourth New Grant is governed by the terms and conditions of the Plan
and your stock option grant agreement, and will be fully vested and immediately exercisable, effective as of July 1, 2004; and 
  
 (e) Fifth New Grant. The Company granted you an option to purchase one hundred sixty-eight thousand (168,000) shares of the Company’s Common
Stock (the “Fifth New Grant”) at a per share price of twenty cents ($0.20), which is the fair market value of the Common Stock as of March 4, 2004 as determined by the Board. The Fifth New Grant is governed by the terms and conditions of
the Plan and your stock option grant agreement, which includes a vesting schedule, contingent upon your continued employment as CEO, pursuant to which the Fifth New Grant shares shall vest in twelve (12) equal monthly installments of fourteen
thousand (14,000) shares each, the first such installment to vest as of January 31, 2004, and the remaining installments to vest on the last day of each full calendar month thereafter until the Fifth New Grant is fully vested.  
  

 Frank Litvack 
 March
4, 2004 
 Page 3 
  

 (f) Early Exercise and Change of Control Single Trigger Acceleration. The First New Grant, the
Second New Grant, the Third New Grant and the Fifth New Grant (collectively, the “New Grants”) will contain provisions allowing for early exercise and providing for accelerated vesting of all unvested shares in the event of a Change of
Control of the Company (the “Single Trigger Acceleration”), provided that the Single Trigger Acceleration shall occur only if all of the following conditions are met: (i) if elected by the purchaser in the Change of Control, you must enter
into a post-closing consulting agreement, the duration of which will be twelve (12) months (or a shorter period if elected by the purchaser or a longer period if agreed to by you), in a form acceptable to the purchaser under which you commit to
providing consulting services of up to twenty (20) hours per month in any area of your expertise as requested by the purchaser, and you will be entitled to receive consulting fees at the rate of four thousand dollars ($4,000) per month; (ii) in
connection with the Change of Control, you must enter into a noncompetition agreement for the benefit of the purchaser that restricts you, for twelve (12) months post-closing (or a shorter period if elected by the purchaser or a longer period if
agreed to by you), from engaging in any competitive activities, either directly or indirectly, in any area of the Company’s business as it then exists, or working for a competitor (including as a consultant or in some other role); and (iii) you
must timely provide the Company and the purchaser with an effective general release of all known and unknown claims in the form provided to you. You understand and agree that if you receive the Single Trigger Acceleration, you will not be eligible
to receive the Severance Benefits pursuant to Paragraph 9, even in the event that your employment terminates without Cause. The stock option agreements for each of the New Grants will define “Change of Control” as: (i) the consummation of
a merger, reorganization or other transaction or series of related transactions following which the stockholders of the Company immediately prior to the transaction own less than fifty percent (50%) of the total voting power represented by the
voting securities of the surviving entity (or its parent) outstanding immediately after the transaction, and the directors serving on the Company’s Board immediately prior to such transaction fail to constitute a majority of the board of
directors of the surviving entity (or its parent) immediately after such transaction; or (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  

	4.	Employee Benefits; Business Expenses 

  
 You will continue to be eligible to participate in the Company’s standard employee benefit plans, pursuant to the terms, conditions and limitations of the benefit
plans. In addition, you will continue to be eligible for reimbursement of your reasonable business expenses incurred in connection with your employment, including but not limited to reasonable lodging and travel expenses, in accordance with the
Company’s business expense reimbursement policies and practices. 
  

 Frank Litvack 
 March
4, 2004 
 Page 4 
  

	5.	Confidentiality Agreement; Compliance With Company Policies 

  
 The Confidentiality, Invention Assignment and Nonsolicitation Agreement that you signed on May 15, 2002 (the “Confidentiality Agreement”), is not affected by
this Agreement and will remain in full force and effect in accordance with its terms. You will continue to be required to abide by the Confidentiality Agreement as a condition of your employment. In addition, you will continue to be required to
abide by the Company’s policies and procedures, as may be in effect from time to time.  
  

	6.	Outside Activities 

  
 You will continue to be prohibited from engaging in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved
during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. Similarly, you agree to continue to not bring any third party confidential information to the Company, including but
not limited to that of your former employer or other current employers, and that in performing your duties for the Company you will not in any way utilize or disclose any such information. The Company acknowledges that you are a practicing
interventional cardiologist on a part-time basis at Cedars Sinai Medical Center and that you may continue to perform services in that capacity. The Company further acknowledges that you are rendering services and may continue to render services to
other entities engaged in the medical device business in connection with interventional cardiology, including, without limitation, Savacor, Inc., Immusol, Inc., and Corset, Inc., and that you may have an equity position in such entities. The Company
consents to you continuing to render such services and holding any equity position that you may have, or that may result from the exercise of stock options, in such entities; provided, however, that your confidentiality and other obligations
to the Company will apply to the providing of such services.  
  

	7.	At-Will Employment Relationship 

  
 Your employment relationship is terminable at-will, and either you or the Company may terminate your employment relationship at any time, with or without Cause (defined
below) or advance notice. 
  

	8.	Terms of Post-Resignation Chairman Service 

  
 If, before December 31, 2005, you resign as CEO and as an employee of the Company due solely to the hiring, or anticipated hiring, of a specifically identified and viable
CEO candidate, the Board may approve your continued role as Chairman of the Board. If such approval occurs, during your continued service as Chairman you will be eligible to receive: (a) compensation at the rate of two thousand dollars ($2,000) per
month; (b) continued vesting of the Third New Grant in accordance with its terms; and (c) if you timely elect continued group health care coverage pursuant to federal COBRA law, the Company will pay your COBRA premiums to continue your health care
coverage at the rate in effect as of your employment termination date 

  

 Frank Litvack 
 March
4, 2004 
 Page 5 
  

 
until the earlier to occur of either (i) your eligibility to receive group health insurance coverage through a new employer, or (ii) your right to COBRA
coverage terminates by law.  
  

	9.	Severance Arrangement 

  
 Provided that you meet the conditions set forth in this paragraph, you will be eligible to receive the Severance Benefits (defined below) if, prior to December 31, 2005:
(a) you are terminated without Cause (as defined below) by the Company; or (b) you resign as CEO due solely to the hiring, or anticipated hiring, of a specifically identified and viable CEO candidate and you do not resign as Chairman of the Board
but rather are removed as Chairman by the other Board members following your employment termination date. In order to be eligible for the Severance Benefits, you must first: (i) timely provide the Company with an effective general release of all
known and unknown claims in the form provided to you by the Company; (ii) enter into a written consulting agreement with the Company that includes the terms summarized in Exhibit A attached hereto (the “Consulting Agreement”), and
satisfactorily provide consulting services, at the Company’s request, thereunder during the twelve (12) months that you receive the Severance Payments (as defined below); and (iii) if requested by a majority of the other Board members, you
resign as Chairman of the Board. At the Company’s option, in lieu of the Consulting Agreement referenced in the immediately preceding sentence, the Company may require that you enter into a noncompetition agreement, and that you comply with
your obligations under such noncompetition agreement during the twelve (12) months that you receive the Severance Payments, in order to be eligible to receive Severance Payments. 
  
 For purposes of this Agreement, the Severance Benefits are defined as: (a) severance in the form of salary continuation for twelve (12)
months at the base salary rate in effect as of your employment termination date, subject to standard payroll deductions and withholdings and paid on the Company’s normal payroll dates (the “Severance Payments”); and (b) acceleration,
equal to the number of shares that would have vested if your employment as CEO had continued for twelve (12) months after the employment termination date, of the shares subject to First New Grant, the Second New Grant, the Third New Grant and the
Fifth New Grant.  
  
 For purposes of this Agreement, “Cause” for
termination shall mean any of the following: (a) your commission of any felony or any crime involving fraud, dishonesty or moral turpitude; (b) your attempted commission of or participation in a fraud against the Company, or any material act of
dishonesty against the Company; (c) your material breach of any contract or agreement between you and the Company (including but not limited to this Agreement), or breach of any statutory duty you owe to the Company that you do not cure within ten
(10) days after your receipt of written notice from the Board thereof (which notice need only be provided if such breach is capable of cure); (d) your conduct that constitutes gross insubordination, incompetence or habitual neglect of duties which
you fail to cure within seven (7) days of receiving written notice from the Board thereof (which notice need only be provided if such conduct is capable of cure); or (e) your continued substantial violation of your duties after receipt of a written
demand for performance from the Board which specifically sets forth the factual basis for the Board’s belief that you have not substantially performed your duties and you fail to 

  

 Frank Litvack 
 March
4, 2004 
 Page 6 
  

 
cure such violations or perform your duties within fifteen (15) days after receiving such written demand provided that written demand from the Board need
only be provided if such violations are capable of cure. 
  
 10. Miscellaneous

  
 This Agreement, together with your Confidentiality Agreement and stock
option agreements, sets forth and forms the complete and exclusive statement of your agreement with the Company concerning the terms and conditions of your employment as of the Effective Date. This Agreement supersedes any other agreements or
promises made to you by anyone, whether oral or written, concerning the subject matters set forth herein including, but not limited to, your Engagement Letter dated January 1, 2002 and your Contract Extension dated August 7, 2003. Changes in your
employment terms, other than those changes expressly reserved to the Company’s or Board’s discretion in this Agreement, require a written modification signed by a duly authorized officer of the Company which must be approved by the Board.
This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together shall constitute one and the same Agreement, and signatures transmitted via facsimile shall
be deemed the equivalent of originals. 
  
 We look forward to continuing your
employment relationship under the terms and conditions contained herein. To accept this Agreement, please sign and return this letter to the Company. 
  

					
	Sincerely,	 	 	 	  
	CONOR MEDSYSTEMS, INC.	 	 	 	  
			
	/s/ Robert Higgins	 	 	 	/s/ John Friedman
	Robert Higgins	 	 	 	John Friedman
	Compensation Committee	 	 	 	Compensation Committee
	Board of Directors	 	 	 	Board of Directors

  

	
	Accepted:
	
	/s/ Frank Litvack
	Frank Litvack

  

 Frank Litvack 
 March
4, 2004 
 Page 7 
  

 EXHIBIT A 
  
 SUMMARY OF CONSULTING AGREEMENT TERMS

  
 The Consulting Agreement referenced in Paragraph 9 shall include the
following terms in addition to other standard terms: 
  

	 	•	Consulting duties to include providing business development and licensing opportunities, regulatory strategy, and clinical trial design and execution. 

  

	 	•	Consulting services to be provided at Company’s reasonable request for twelve (12) months following termination of employment (the “Consulting Period”). It is
expected that the consulting services requested by the Company will not exceed an average of ten (10) hours per month and that travel will not be required under the Consulting Agreement. 

  

	 	•	Reasonable business expenses incurred by Consultant will be reimbursed by the Company promptly following the Company’s receipt of a written request for reimbursement supported
by satisfactory documentation of the expenses which shall include receipts. Any expenses in excess of $100 will require advance written approval by an authorized officer of the Company. 

  

	 	•	The Severance Payments provided by the Company will include any and all compensation owed for the consulting services and no additional compensation will be owed or provided by the
Company. 

  

	 	•	Consultant will be prohibited from engaging in any activity (either on his own or another’s behalf) competitive with the Company during the Consulting Period.

  

	 	•	Consulting Agreement to contain confidentiality and intellectual property provisions protective of the Company.

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