EMPLOYMENT AGREEMENT

Exhibit 10.35

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of December 1, 2008, by and between NPS PHARMACEUTICALS, INC., a Delaware corporation, with a business address at 550 Hills Drive, Bedminster, New Jersey 07921, and all its affiliates (collectively the "Company"), and Roger Garceau, with an address of 3 Montaine Place, Lebanon, New Jersey 08833 (the "Executive").

Recitals

WHEREAS, the Company desires to employ the Executive as Senior Vice-President, Research and Development, and Chief Medical Officer of the Company effective as of December 11, 2008 (the "Commencement Date"), and the Executive desires to be so employed by the Company upon the terms and conditions hereinafter provided.

NOW, THEREFORE, the Company and the Executive, in consideration of the mutual promises contained herein, hereby agree as follows:

1. Employment Duties
2. 1. Position and Duties . The Executive will be appointed Chief Medical Officer of the Company with duties and responsibilities commensurate with such position effective on the Commencement Date.
   2. Reporting Relationship . The Executive will report directly to the Chief Executive Officer of the Company (the "CEO").
   3. Location . The Executive will have his primary office at the Company office at 550 Hills Drive, Bedminster, New Jersey.
3. Rights Granted Upon the Commencement Date

Upon the Commencement Date, the Executive shall be provided One Hundred Fifty Thousand (150,000) Non-Qualified Stock Options (" NQSOs " ) under the Company's 1998 Stock Option Plan (the "1998 Plan"), as the same may be amended from time to time, and under the Non-Qualified Stock Option Agreement executed by the Company and the Executive, with an exercise price equal to the closing price of the Company's common stock on the Commencement Date. The Company and the Executive agree that under no circumstances shall any grant of NQSOs be made at a discount from the fair market value, as defined by Treasury Regulations promulgated under Section 409A of the Internal Revenue Code of 1986, as amended ("Code") (the "Fair Market Value"), of the Company's common stock as of the date of grant.

3. Compensation

For services rendered hereunder by the Executive, the Company shall pay the Executive the amounts set forth below.

4. 1. Base Salary . The Company shall pay to the Executive an annual base salary of $325,000 (the "Base Salary") payable in accordance with the standard payroll practices of the Company. In addition, the CEO after review and approval from the Compensation Committee of the Board, in its sole and absolute discretion, may determine to increase such Base Salary for the Executive from time to time; however, nothing contained herein shall obligate the CEO to make such discretionary increases.
   2. Short-Term Incentives - Annual Bonus . The Executive shall be entitled to participate in the Company's current Executive Short-Term Incentive Plan (the "Bonus Plan") in accordance with the terms of such Bonus Plan, as the same may be amended from time to time. The target bonus opportunity for the Executive under the Bonus Plan shall be 35% of his Base Salary.
   3. Long-Term Incentives - Equity . The Executive will be entitled to receive awards granted by the Compensation Committee pursuant to any equity program or long-term incentive plan that may be maintained by the Company from time to time. The amount of any awards shall be determined at the sole discretion of the Compensation Committee.
5. Benefits

The Executive shall be entitled to the following employee benefits, which the Company may revise from time to time, which employee benefits are currently provided to all non-temporary employees of the Company that work a minimum of 30 hours per week:

•   Medical insurance coverage for the Executive and his legal dependents as defined by the Company's standard insurance plan.
•   Dental insurance coverage for the Executive and his legal dependents as defined by the Company's standard insurance plan.
•   Long-term care insurance.
•   Short-term disability coverage.
•   Term life insurance in the amount of one times the Executive's Base Salary.
•   Accidental death and dismemberment insurance in the amount of one times the Base Salary.
•   Long-term disability coverage.
•   401(k) plan.
•   Option to participate in the 125 Cafeteria Plan which includes dependent care and health care flexible spending accounts.
•   Annual paid time off ("PTO") of twenty-five (25) days per year, with 7.7 hours earned per full pay period worked.
•   Nine (9) Company holiday days every calendar year.

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5. Restrictive Covenants

The Executive acknowledges that he will execute and deliver to the Company the Employee Agreement Concerning Invention Assignment, Non-Disclosure and Non-Competition, a copy of which is attached hereto as Exhibit A (the "Restrictive Covenant Agreement").

6. Indemnification

The Executive will be indemnified by the Company to the same extent the Company indemnifies other officers and/or directors during and following employment and/or services as a Director. Attached hereto as Exhibit B is the current Indemnity Agreement between the Company and the Executive.

7. Change In Control Protection

Protection in the Event of a Company Change . The Executive shall be entitled to participate in the NPS Pharmaceuticals, Inc. Change in Control Severance Pay Plan (the "CC Plan") in accordance with the terms of such CC Plan, as the same may be amended from time to time. Benefits under the CC Plan shall be paid in lieu of termination benefits under any other provision of this Agreement, and if the Executive receives benefits under the CC Plan, he shall have no right to benefits under Section VIII.

8. Termination Provisions (other than Change in Control)
9. 1. Definitions . For purposes of this Agreement, the following definitions shall apply:
   2. 1. "Cause" shall mean (a) an act of material dishonesty by the Executive in connection with his responsibilities as an employee, (b) the Executive's conviction of, or plea of nolo contendere to, a felony, (c) the Executive's gross misconduct in connection with the performance or failure of performance of a material component of the Executive's responsibilities as an employee that is materially injurious to the Company, (d) the Executive's continued substantial violations of his employment duties after he has received a written demand for performance from the Company which specifically sets forth the factual basis for the Company's belief that the Executive has not substantially performed such duties and after he has been provided with a 60-day cure period, (e) the Executive's continued poor performance after receiving notice of the specific areas in which performance is deficient after which performance does not improve over a 60-day cure period, or (f) a violation of a material provision of the Company's Code of Business Conduct and Ethics.
      2. "Good Reason" shall mean, without the express written consent of the Executive, the occurrence of any of the following conditions, provided the Executive provides notice to the Company of the existence of the condition within 90 days of the initial existence of the condition and the Company fails to remedy the condition within 30 days of receipt of such

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notice: (i) a material relocation in the geographic location at which the Executive must perform his services; (ii) any material reduction in the Executive's Base Salary, other than a reduction of a proportionally like amount affecting all other senior executives of the Company; (iii) a change in the Executive's reporting responsibilities so that the Executive no longer reports directly to the Chief Executive Officer; (iv) a material diminution in the Executive's authority, duties or responsibilities; or (v) any other action or inaction that constitutes a material breach of this Agreement by the Company.

8. 2. 3. "Total Disability" shall mean the Executive is unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident or disability insurance benefit plan covering Company employees, as determined by the Company in its sole and absolute discretion.
   3. Termination by the Company Without Cause . Except as provided below, if the Company terminates the employment of the Executive without Cause, from and after such effective date of termination, the Executive shall no longer be entitled to receive any Base Salary, bonus or option awards, or other amounts or benefits otherwise payable hereunder, except such continuation and/or conversion rights as required by law or provided under the terms of any Company sponsored employee benefit plan or agreement executed by the Company and the Executive. Notwithstanding the foregoing, the Executive shall be entitled to receive the following:

8. 3. 3. Any previously earned and accrued but unpaid Base Salary up to the Executive's date of termination (the "Accrued Base Salary");
      4. Any unpaid bonus for the calendar year prior to the year in which the termination occurred which may be owed under the Bonus Plan described in Section III.b. above (the "Accrued Bonus");
      5. Subject to the provisions of Section VIII.f., a severance payment in an amount equal to 1.5 times the Executive's Base Salary in effect immediately preceding the date of termination (the "Severance Benefit"); and
      6. Vested options shall remain exercisable in accordance with the terms of the 1998 Plan or such other plan of the Company or agreement executed

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by the Company and the Executive as the same may be in effect from time to time, as applicable, that control such vested options.

The Company shall, subject to Section IX.k., pay all amounts due under this Section VIII.b. within thirty (30) days following the Executive's effective date of termination.

Notwithstanding the foregoing, if the Company terminates the employment of the Executive without Cause following a Change of Control (as defined in the CC Plan as in effect from time to time), then the Executive shall be entitled only to the payments and rights as provided in Section VII.

8. 3. Termination by the Company For Cause . Except as provided below, if the Company terminates the employment of the Executive for Cause, from and after such effective date of termination, the Executive shall no longer be entitled to any Base Salary, bonus or option awards, or other amounts or benefits otherwise payable hereunder, except such continuation and/or conversion rights as required by law or provided under the terms of any Company sponsored employee benefit plan or agreement executed by the Company and the Executive. The Executive shall not be entitled to the Severance Benefit under this Agreement. This forfeiture of any right to the Severance Benefit shall be in addition to any forfeiture of rights to stock options, bonuses or other amounts provided for in any other employee benefit plan, program or agreement of the Company or executed by the Company and the Executive, including, but not limited to the Bonus Plan and the 1998 Plan. Notwithstanding the foregoing, the Executive shall be entitled to receive any Accrued Base Salary and Accrued Bonus. Vested options shall remain exercisable in accordance with the terms of the 1998 Plan or such other plan of the Company or agreement executed by the Company and the Executive as the same may be in effect from time to time, as applicable, that control such vested options.
   4. Termination as a Result of Death or Disability . Except as provided below, upon either (i) the death of the Executive or (ii) a determination by the Company that the Executive has incurred a Total Disability, the Executive shall no longer be entitled to any Base Salary, bonus or option awards, or other amounts or benefits otherwise payable hereunder, except such continuation and/or conversion rights as required by law or provided under the terms of any Company sponsored employee benefit plan or agreement executed by the Company and the Executive. Notwithstanding the foregoing, the Executive or his estate, as applicable, shall be entitled to the following:

8. 4. 5. Any Accrued Base Salary;
      6. Any Accrued Bonus, and any other bonus that is earned or accrued as of the date of the Executive's death or termination for Total Disability, as such date is determined by the Board, in its sole and absolute discretion; and
      7. Vested options shall remain exercisable in accordance with the terms of the 1998 Plan or such other plan of the Company or agreement executed by the Company and the Executive as the same may be in effect from time to time, as applicable, that control such vested options.

The Company shall pay all amounts due under this Section VIII.d. within thirty (30) days following the date of (A) the Executive's death or (B) the determination of his Total Disability, as applicable.

8. 5. Termination by Executive for Good Reason . Except as provided below, if the Executive terminates his employment for Good Reason, the Executive shall no longer be entitled to receive any Base Salary, bonus or option awards, or other amounts or benefits otherwise payable hereunder, except such continuation and/or conversion rights as required by law or provided under the terms of any Company sponsored employee benefit plan or agreement executed by the Company and the Executive. Notwithstanding the foregoing, the Executive shall be entitled to receive the following:

8. 5. 0. Any Accrued Base Salary;
      1. Any Accrued Bonus;
      2. Subject to the provisions of Section VIII.f., the Severance Payment; and

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8. 5. 3. Vested options shall remain exercisable in accordance with the terms of the 1998 Plan or such other plan of the Company or agreement executed by the Company and the Executive as the same may be in effect from time to time, as applicable, that control such vested options.

The Company shall, subject to Section IX.k., pay all amounts due under this Section VIII.e. within thirty (30) days following the Executive's effective date of termination.

Notwithstanding the foregoing, if the Executive terminates employment with the Company for Good Reason following a Change of Control (as defined in the CC Plan as in effect from time to time), then the Executive shall be entitled only to the payments and rights as provided in Section VII.

8. 6. Release . The payment of the Severance Payment is conditioned on the Executive executing, and failing to revoke during any applicable revocation period, a general release of all claims against the Company and its affiliates in a form acceptable to the Company within twenty-one (21) days of the Executive's date of termination.
9. Miscellaneous Provisions

9. 5. Third Party Agreements . The Executive hereby confirms that the Executive is not bound by the terms of any agreement with any previous employer or other party

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which restricts in any way the Executive's use or disclosure of information or the Executive's engagement in any business. The Executive represents to the Company that the Executive's execution of this Agreement, the Executive's employment with the Company and the performance of the Executive's proposed duties for the Company will not violate any obligations the Executive may have to any such previous employer or other party. In the Executive's work for the Company, the Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and the Executive will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

9. 2. Taxes . The Company has not made any representation regarding, nor will the Company indemnify the Executive with respect to any tax liability as may be imposed on him in connection with any Base Salary, bonus or other benefits conferred upon him hereunder; and the Executive shall be liable for all applicable state and federal income taxes, other than the Company's share of applicable employment taxes, associated therewith.
   3. Binding Effect . This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns, provided that neither party shall assign any of its rights or privileges hereunder without the prior written consent of the other party except that the Company may assign its rights hereunder to a successor in ownership of all or substantially all the assets of the Company.
   4. Severability . Should any part or provision of this Agreement be held unenforceable by a court of competent jurisdiction, the validity of the remaining parts or provisions shall not be affected by such holding, unless such enforceability substantially impairs the benefit of the remaining portions of this Agreement.
   5. Captions . The captions used in this Agreement are for convenience only and are not to be used in interpreting the obligations of the parties under this Agreement.
   6. Choice of Law . The validity, construction and performance of this Agreement and the transactions to which it relates shall be governed by the laws of the State of New Jersey, without regard to choice of laws provisions. Each of the parties hereto hereby irrevocably submits to the exclusive jurisdiction of any New Jersey State or United States Federal Court located in Somerset County over any action or proceeding arising out of this Agreement or the employment relationship between them, and each party hereby irrevocably agrees that all claims in respect of such action or proceeding may be held and determined in such New Jersey State or Federal Court.
   7. Entire Agreement . This Agreement, together with the Exhibits hereto, embodies the entire understanding of the parties as it relates to the subject matter contained

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herein and as such, supersedes any prior agreement or understanding between the parties relating to the terms of employment of the Executive. No amendment or modification of this Agreement shall be valid or binding upon the parties unless in writing executed by each of the parties. Notwithstanding the foregoing, any agreement executed by the Company and the Executive that provides for bonuses, stock options, stock or other grant of value to the Executive, as may exist from time to time, shall, to the extent such agreement explicitly so provides, be deemed incorporated into this Agreement.

9. 8. Notices . Any and all notices or other communications hereunder shall be sufficiently given if sent by hand, overnight courier or by certified mail, return receipt requested, postage prepaid, addressed to the party to receive the same at its or his address set forth on page one (1) hereof, or to such other address as the party to receive the same shall have specified by written notice given in a manner provided for in this Section IX.h. Such notices or other communications shall be deemed to have been given upon receipt if given by hand or by overnight courier and three days after the date deposited in the mail.
   9. No Presumption . Should any of the provisions of this Agreement (including any Exhibit hereto) require judicial interpretation, it is agreed that the court interpreting or construing this Agreement shall not apply a presumption that any provision shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agents prepared the same, it being agreed that both parties and their respective agents have participated in the preparation of this Agreement.
   10. Counterparts . This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and together which shall constitute one and the same instrument.
   11. Section 409A Savings Clause . This Agreement is intended to comply with the provisions of Section 409A of the Code (and any regulations and guidelines issued thereunder) to the extent this Agreement is otherwise subject thereto, and this Agreement shall be interpreted consistent therewith. If any compensation or benefits prov