**Exhibit 10.30**

June 1, 2001

Leo Gu[address]
|   | Re: | **Notification Under the Worker  Adjustment and Retraining Notification Act (“WARN Act”) and Offer of  Severance Package** |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

Dear Leo:

This Letter Agreement (the “Letter Agreement”)is to inform you in advance that IntraBiotics Pharmaceuticals, Inc. (the“Company”) is restructuring its workforce at its facilities located at 2021 Stierlin Court, Mountain View, California and1245 Terra Bella, Mountain View, California. This restructuring constitutes a “mass layoff” under the WARN Act.

Due to this restructuring, you will be laidoff.  Your employment termination iscurrently scheduled to occur onAugust 31, 2001 (the “SeparationDate”).  Until the Separation Date, youwill remain an employee of the Company, and you will be paid your current basesalary (less all applicable deductions and withholdings) in accordance with theCompany’s normally scheduled payroll dates. In addition, you will remain eligible for those benefits provided underthe Company’s employee benefit plans. On the Separation Date, the Company will pay you all accrued salary andall accrued and unused vacation through the Separation Date, subject tostandard payroll deductions and withholdings. There are no bumping rights.  Thelayoff is expected to be permanent.

From now until the Separation Date, the Companyasks that you continue to report for work. You will be asked to provide services to the Company to aid in thistransition period. Your exact duties will be jointly determined by you and theCompany during the week of June 4, 2001 and set forth in writing.

Moreover, if you are still employed by theCompany on the Separation Date, and if on or after the Separation Date you signand (without revoking your signature) deliver to the Company a ConfidentialSeparation and Release Agreement in a form substantially similar to thedocument attached hereto as Exhibit A, the Company will provide you with thefollowing “Severance Package” benefits: (i) if after the Separation Date youtimely elect to continue your health insurance benefits through COBRA coverage,the Company will pay for six (6) months of such COBRA coverage at no cost toyou; (ii) the Company will accelerate six (6) months vesting of all unvestedstock options from the Separation Date; and (iii) the Company will pay you in asingle lump sum an amount equivalent to six (6) months of your current basesalary, less all applicable deductions and withholdings within fifteen (15)days of the Separation Date.  If youremployment is terminated prior to the Separation Date and such terminationconstitutes an Involuntary Termination Without Cause (as defined below) or aConstructive Termination (as defined below), then you shall receive a cashpayment equal to your base salary as if you continued to be employed from thedate of your termination through February 28, 2002.For purposes of this Letter Agreement, “Constructive Termination” means thatyou voluntarily terminate your employment with the Company after:
**(i)**         the assignment to you of any duties or responsibilitiesthat result in a significant diminution in your function as in effect on June1, 2001; *provided, however*, thata mere change in your title or reporting relationships shall not constitute aConstructive Termination;

**(ii)       ** a reduction by theCompany in your current base salary by five percent (5%) or more; *provided, however*, that a reduction by theCompany of your current base salary by up to ten percent (10%) shall notconstitute a Constructive Termination for purposes of this Letter Agreement ifit is made in connection with an across-the-board reduction by the Company ofall employees’ annual base salaries by a percentage at least equal to thepercentage by which your current base salary is reduced;

**(iii)**       a relocation of your business office to alocation that requires you to commute more than thirty-five (35) miles eachway, except for required travel by you on the Company’s business to an extentsubstantially consistent with your business travel obligations prior to June 1,2001; *provided, however*, that norelocation of your business office shall constitute a Constructive Terminationfor purposes of this Letter Agreement if you provide services to the Companyfrom a remote location (e.g., through telecommuting) at the time of therelocation;

**(iv)**        a material breach by the Company of anyprovision of this Letter Agreement; or

**(v)**         any failure by the Company to obtainthe assumption of these benefits by any successor or assign of the Company.

For purposes ofthis Letter Agreement, “Involuntary Termination Without Cause” means yourdismissal or discharge for reasons other than Cause.  For this purpose, “Cause” means that, in the reasonabledetermination of the Company, that you have:

**(i)**         been indicted for or convicted of orpleaded guilty or no contest to any felony or any crime involving dishonestythat is likely to inflict or has inflicted demonstrable and material injury onthe business of the Company;

**(ii)**        participated in any fraud against theCompany;

**(iii)**       willfully and materially breached a Companypolicy;

**(iv)**        intentionally damaged any property ofthe Company thereby causing demonstrable and material injury to the business ofthe Company;

**(v)**         willfully and materially breached yourobligations under your IntraBiotics’ Employment, Confidential Information AndInvention Assignment Agreement;

**(vi)**        engaged in conduct that, in thereasonable determination of the Company, demonstrates gross unfitness to serve;or

**(vii)**      demonstrated a continued pattern ofsubstantial nonperformance of your duties.

Notwithstanding the foregoing, Cause shall notexist based on conduct described in clause (iii), (vi) or (vii) above unlessthe conduct described in such clause has not been cured within fifteen (15)days following your receipt of written notice from the Company specifying theparticulars of the conduct constituting Cause.

If you voluntarily leave the Company before theSeparation Date (other than in a Constructive Termination), or if you areterminated for Cause before the Separation Date, no part of the SeverancePackage is earned or payable.

This Agreement, including Exhibit A, constitutesthe complete, final and exclusive embodiment of the entire agreement betweenyou and the Company with regard to this subject matter.  It is entered into without reliance on anypromise, warranty, or representation, written or oral, other than thoseexpressly contained herein, and it supersedes any other such promises,warranties or representations.  ThisAgreement may not be modified or amended except in a writing signed by both youand a duly authorized officer of the Company. This Agreement shall bind the heirs, personal representatives,successors and assigns of both you and the Company, and inure to the benefit ofboth you and the Company, their heirs, successors and assigns.  This Agreement shall be deemed to have beenentered into and shall be construed and enforced in accordance with the laws ofthe State of California as applied to contracts made and to be performedentirely within California.

If you have any questions, the name andtelephone number of the Company’s official to contact for further informationis:

                                        RayMendonca                                        Director,Human Resources                                        IntraBioticsPharmaceuticals, Inc.                                        (650)567-6650

I want to thankyou personally for your contributions to IntraBiotics Pharmaceuticals, Inc.,and thank you in advance for your assistance during the Transition Period.

Sincerely,

**INTRABIOTICSPHARMACEUTICALS, INC.**

Kenneth Kelley,President & Chief Executive Officer

**Exhibit A – General Waiver andRelease Agreement**
**AGREED AND ACCEPTED:**  
Dated:                                               , 2001