Document:

Exhibit
10.46

 

INTERMUNE,
INC.

 

2000
NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN, AS AMENDED

 

INTERMUNE,
INC.

 

2000
NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

 

ADOPTED
FEBRUARY 8, 2000

APPROVED
BY STOCKHOLDERS MARCH 20, 2000

AMENDED
ON JUNE 19, 2002

AMENDED
ON MARCH 5, 2003

APPROVED
BY STOCKHOLDERS MAY 29, 2003

 

1.             Purposes.

 

(a)           Eligible
Option Recipients. The persons eligible to receive Options
are the Non-Employee Directors of the Company.

 

(b)           Available Options. The purpose of the Plan is to
provide a means by which Non-Employee Directors may be given an opportunity to
benefit from increases in value of the Common Stock through the granting of
Nonstatutory Stock Options.

 

(c)           General Purpose. The Company, by means of the
Plan, seeks to retain the services of its Non-Employee Directors, to secure and
retain the services of new Non-Employee Directors and to provide incentives for
such persons to exert maximum efforts for the success of the Company and its
Affiliates.

 

2.             Definitions.

 

(a)           “Affiliate” means any
parent corporation or subsidiary corporation of the Company, whether now or
hereafter existing, as those terms are defined in Sections 424(e) and (f),
respectively, of the Code.

 

(b)           “Annual Grant” means a
Director Annual Grant or a Chairman Annual Grant.

 

(c)           “Board” means the Board of
Directors of the Company.

 

(d)           “Chairman”  means the Chairman of the Board.

 

(e)           “Chairman Annual Grant” shall have the
meaning ascribed in Section 6(b).

 

(f)            “Chairman Tri-Annual Grant” shall
have the meaning ascribed in Section 6(a).

 

(g)           “Code” means the Internal
Revenue Code of 1986, as amended.

 

(h)           “Common Stock” means the
common stock of the Company.

 

(i)            “Company” means InterMune,
Inc.

 

(j)            “Consultant” means any
person, including an advisor, (i) engaged by the

 

 

Company or an Affiliate to render consulting or advisory services and
who is compensated for such services or (ii) who is a member of the Board of
Directors of an Affiliate. However, the term “Consultant” shall not include
either Directors of the Company who are not compensated by the Company for
their services as Directors or Directors of the Company who are merely paid a
director’s fee by the Company for their services as Directors.

 

(k)           “Continuous Service” means
(i) with respect to Options granted to an Optionholder in his or her capacity
as Chairman, that the Optionholder’s service as Chairman is not interrupted or
terminated; and (ii) with respect to Options granted to an Optionholder in his
or her capacity as a Director, that the Optionholder’s service with the Company
or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. Solely with respect to subclause (ii) above, the
Optionholder’s Continuous Service shall not be deemed to have terminated merely
because of a change in the capacity in which the Optionholder renders service
to the Company or an Affiliate as an Employee, Consultant or Director or a
change in the entity for which the Optionholder renders such service, provided
that there is no interruption or termination of the Optionholder’s service. For
example, a change in status without interruption from a Non-Employee Director
of the Company to a Consultant of an Affiliate or an Employee of the Company
will not constitute an interruption of Continuous Service. The Board or the
chief executive officer of the Company, in that party’s sole discretion, may
determine whether Continuous Service shall be considered interrupted in the
case of any leave of absence approved by that party, including sick leave,
military leave or any other personal leave.

 

(l)            “Director”
means a member of the Board of Directors of the Company.

 

(m)          “Director Annual Grant” shall
have the meaning ascribed in Section 6(a).

 

(n)           “Director Tri-Annual Grant”
shall have the meaning ascribed in Section 6(a).

 

(o)           “Disability” means
the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code.

 

(p)           “Employee”
means any person employed by the Company or an Affiliate. Mere service as a
Director or payment of a director’s fee by the Company or an Affiliate shall
not be sufficient to constitute “employment” by the Company or an Affiliate.

 

(q)           “Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

(r)           “Fair Market Value”
means, as of any date, the value of the Common Stock determined as follows:

 

(i)            If
the Common Stock is listed on any established stock exchange or traded on the
Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of
a share of Common Stock shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or market
(or the exchange or market with the greatest volume of trading in the Common
Stock) on the last market trading day prior to the day of determination, as
reported in The Wall Street Journal or such other source as the Board deems
reliable.

 

(ii)           In
the absence of such markets for the Common Stock, the Fair Market Value shall
be determined in good faith by the Board.

 

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(s)           “Non-Employee Director”
means a Director who is not an Employee.

 

(t)            “Nonstatutory Stock Option”
means an Option not intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code and the regulations promulgated thereunder.

 

(u)           “Officer” means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

 

(v)            “Option” means a
Nonstatutory Stock Option granted pursuant to the Plan.

 

(w)           “Option Agreement” means a
written agreement between the Company and an Optionholder evidencing the terms
and conditions of an individual Option grant. Each Option Agreement shall be
subject to the terms and conditions of the Plan.

 

(x)           “Optionholder” means a
person to whom an Option is granted pursuant to the Plan or, if applicable,
such other person who holds an outstanding Option.

 

(y)           “Plan” means this
InterMune, Inc. 2000 Non-Employee Directors’ Stock Option Plan.

 

(z)           “RULE 16b-3” means Rule
16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3,
as in effect from time to time.

 

(aa)         “Securities Act” means the
Securities Act of 1933, as amended.

 

(bb)         “Tri-Annual Grant” means a
Director Tri-Annual Grant or a Chairman Tri-Annual Grant.

 

3.             Administration.

 

(a)           Administration By Board.  The Board shall administer the Plan. The
Board may not delegate administration of the Plan to a committee.

 

(b)           Powers Of Board.  The Board shall have the power, subject to,
and within the limitations of, the express provisions of the Plan:

 

(i)            To
determine the provisions of each Option to the extent not specified in the
Plan.

 

(ii)           To
construe and interpret the Plan and Options granted under it, and to establish,
amend and revoke rules and regulations for its administration. The Board, in
the exercise of this power, may correct any defect, omission or inconsistency
in the Plan or in any Option Agreement, in a manner and to the extent it shall
deem necessary or expedient to make the Plan fully effective.

 

(iii)         To
amend the Plan or an Option as provided in Section 12.

 

(iv)          To
terminate or suspend the Plan as provided in Section 13.

 

(v)            Generally,
to exercise such powers and to perform such acts as the Board

 

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deems necessary or
expedient to promote the best interests of the Company that are not in conflict
with the provisions of the Plan.

 

(c)           Effect Of Board’s Decision.  All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

 

4.             Shares Subject to the
Plan.

 

(a)           Share Reserve. Subject to
the provisions of Section 11 relating to adjustments upon changes in the Common
Stock, the Common Stock that may be issued pursuant to Options shall not exceed
in the aggregate three hundred thousand (300,000) shares of Common Stock plus
an annual increase to be added each January 1, commencing with January 1, 2004,
equal to three hundred thousand (300,000) shares of Common Stock.
Notwithstanding the foregoing, the Board may designate a smaller number of
shares of Common Stock to be added to the share reserve as of a particular
January 1.

 

(b)           Reversion Of Shares To The Share Reserve.
If any Option shall for any reason expire or otherwise terminate, in whole or
in part, without having been exercised in full, the shares of Common Stock not
acquired under such Option shall revert to and again become available for
issuance under the Plan.

 

(c)           Source Of Shares. The
shares of Common Stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

 

5.             Eligibility.

 

The Options as set forth in Sections 6(a),
6(c)(i) and 6(c)(ii) automatically shall be granted under the Plan to all
Non-Employee Directors.  The Options as
set forth in Sections 6(b), 6(c)(iii) and 6(c)(iv) automatically shall be
granted under the Plan to each Chairman.

 

6.             Non-Discretionary
Grants.

 

(a)           Grants to Directors
Without any further action of the Board, each person who is a Non-Employee
Director, upon the date of such person’s initial election or appointment to be
a Non-Employee Director by the Board or the Company’s stockholders,
automatically shall be granted a grant to purchase thirty thousand (30,000)
shares of Common Stock (a “Director Tri-Annual Grant”) and a grant to purchase
twenty-five thousand (25,000) shares of Common Stock (a “Director Annual
Grant”) on the terms and conditions set forth herein.

 

(b)           Grants to Chairman.  Without any further action of
the Board, each person who is the Chairman, upon the date of such person’s
initial election or appointment to be the Chairman by the Board, automatically
shall be granted a grant to purchase thirty thousand (30,000) shares of Common
Stock (a “Chairman Tri-Annual Grant”) and a grant to purchase twenty-five
thousand (25,000) shares of Common Stock (a “Chairman Annual Grant”) on the
terms and conditions set forth herein.

 

(c)           Annual and Tri-Annual
Grants.

 

(i)            Without
any further action of the Board, a Non-Employee Director who continues to serve
the Company as a Non-Employee Director on the date his or her

 

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Director Annual Grant
fully vests automatically shall be granted another Director Annual Grant.

 

(ii)           Without
any further action of the Board, a Non-Employee Director who continues to serve
the Company as a Non-Employee Director on the date his or her Director
Tri-annual Grant fully vests automatically shall be granted another Director
Tri-Annual Grant.

 

(iii)         Without
any further action of the Board, a Chairman who continues to serve the Company
as Chairman on the date his or her Chairman Annual Grant fully vests
automatically shall be granted another Chairman Annual Grant.

 

(iv)          Without
any further action of the Board, a Chairman who continues to serve the Company
as Chairman on the date his or her Chairman Tri-Annual Grant fully vests
automatically shall be granted another Chairman Tri-Annual Grant.

 

7.             Option
Provisions.

 

Each Option shall be in such form and shall contain
such terms and conditions as required by the Plan. Each Option shall contain
such additional terms and conditions, not inconsistent with the Plan, as the
Board shall deem appropriate. Each Option shall include (through incorporation
of provisions hereof by reference in the Option or otherwise) the substance of
each of the following provisions:

 

(a)           Term.  No Option shall be exercisable after the
expiration of ten (10) years from the date it was granted.

 

(b)           Exercise Price.  The exercise price of each Option shall be
one hundred percent (100%) of the Fair Market Value of the stock subject to the
Option on the date the Option is granted. Notwithstanding the foregoing, an
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of
Section 424(a) of the Code.

 

(c)           Consideration.  The purchase price of stock acquired
pursuant to an Option may be paid, to the extent permitted by applicable
statutes and regulations, in any combination of the following methods:

 

(i)            By
cash or check.

 

(ii)           Provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in THE WALL STREET JOURNAL, by delivery of already-owned shares of
Common Stock either that the Optionholder has held for the period required to
avoid a charge to the Company’s reported earnings (generally six months) or
that the Optionholder did not acquire, directly or indirectly from the Company,
that are owned free and clear of any liens, claims, encumbrances or security
interests, and that are valued at Fair Market Value on the date of exercise.
“Delivery” for these purposes shall include delivery to the Company of the
Optionholder’s attestation of ownership of such shares of Common Stock in a
form approved by the Company. Notwithstanding the foregoing, the Optionholder
may not exercise the Option by tender to the Company of Common Stock to the
extent such tender would violate the provisions of any law,

 

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regulation or agreement restricting the redemption of
the Company’s stock.

 

(iii)         Provided
that at the time of exercise the Common Stock is publicly traded and quoted
regularly in THE WALL STREET JOURNAL, pursuant to a program developed under
Regulation T as promulgated by the Federal Reserve Board that, prior to the
issuance of Common Stock, results in either the receipt of cash (or check) by
the Company or the receipt of irrevocable instructions to pay the aggregate
exercise price to the Company from the sales proceeds.

 

(d)           Transferability.  An Option is transferable by will or by the
laws of descent and distribution. An Option also is transferable (i) by
instrument to an inter vivos or testamentary trust, in a form accepted by the
Company, in which the Option is to be passed to beneficiaries upon the death of
the trustor (settlor) and (ii) by gift, in a form accepted by the Company, to a
member of the “immediate family” of the Optionholder as that term is defined in
the general instructions to Form S-8 (promulgated under the Securities Act). An
Option shall be exercisable during the lifetime of the Optionholder only by the
Optionholder and a permitted transferee as provided herein. However, the
Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionholder, shall thereafter be entitled to exercise the Option.

 

(e)           Exercise Schedule. 
An Option shall be exercisable only for whole shares and then only as
the shares of Common Stock subject to the Option vest.

 

(f)            Vesting Schedule.
Options shall vest as follows:

 

(i)            A
Tri-Annual Grant shall vest in consecutive monthly installments at a rate of
one thirty-sixth (1/36th) of the total number of shares subject to such Option.
The first such installment shall vest one month from the date of grant of such
Option and shall continue until such Option has fully vested, provided however,
that vesting shall cease on termination of the Optionholder’s Continuous
Service.  For Tri-Annual Grants granted
between January 1, 2003 and May 29, 2003, such vesting will be effective
retroactively to the later of January 1, 2003 or the date of such
Optionholder’s date of election as a non-employee director or Chairman (as
applicable).

 

(ii)           An
Annual Grant shall vest in consecutive monthly installments at a rate of one
twelfth (1/12th) of the total number of shares subject to such Option. The
first such installment shall vest one month from the date of grant of such
Option and shall continue until such Option has fully vested, provided however,
that vesting shall cease on termination of the Optionholder’s Continuous
Service. For Annual Grants granted between January 1, 2003 and
May 29, 2003, such vesting will be effective retroactively to the later of
January 1, 2003 or the date of such Optionholder’s date of election as a
non-employee director or Chairman (as applicable).

 

(g)           Termination Of Continuous Service.  In the event an Optionholder’s Continuous
Service terminates (other than due to the Optionholder’s death or Disability),
the Optionholder may exercise his or her Option (to the extent that the
Optionholder was entitled to exercise it as of the date of termination) but
only within such period of time ending on the earlier of (i) the date that is
three (3) months after the date of such termination, or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, after termination,
the Optionholder does not exercise his or her Option within the time specified
in the Option Agreement, the Option shall terminate.

 

6

 

(h)           Disability Of Optionholder.  In the event an Optionholder’s Continuous
Service terminates due to the Optionholder’s Disability, the Optionholder may
exercise his or her Option (to the extent that the Optionholder was entitled to
exercise it as of the date of termination), but only within such period of time
ending on the earlier of (i) the date that is twelve (12) months after the date
of such termination, or (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified herein, the Option shall
terminate.

 

(i)            Death Of Optionholder.  In the event (i) an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s death or (ii)
the Optionholder dies within the three-month period after the termination of
the Optionholder’s Continuous Service for a reason other than death, then the
Option may be exercised (to the extent the Optionholder was entitled to exercise
the Option as of the date of death) by the Optionholder’s estate, by a person
who acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the Option upon the Optionholder’s death, but
only within the period ending on the earlier of (1) the date that is eighteen
(18) months following the date of death or (2) the expiration of the term of
such Option as set forth in the Option Agreement. If, after death, the Option
is not exercised within the time specified herein, the Option shall terminate.

 

(j)            Extension Of Termination Date.  If exercise of the Option following the
termination of the Optionholder’s Continuous Service would be prohibited at any
time solely because the issuance of shares would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of: (i) the expiration of the term of the Option set forth in
subsection 7(a), or (ii) the expiration of the applicable period of time after
the termination of the Optionholder’s Continuous Service during which the
exercise of the Option would not be in violation of such registration
requirements.

 

8.             Covenants of the
Company.

 

(a)           Availability Of Shares.
During the terms of the Options, the Company shall keep available at all times
the number of shares of Common Stock required to satisfy such Options.

 

(b)           Securities Law Compliance.  The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Options and to issue and sell shares of
Common Stock upon exercise of the Options; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
the Plan, any Option or any stock issued or issuable pursuant to any such
Option. If, after reasonable efforts, the Company is unable to obtain from any
such regulatory commission or agency the authority which counsel for the
Company deems necessary for the lawful issuance and sale of stock under the
Plan, the Company shall be relieved from any liability for failure to issue and
sell stock upon exercise of such Options unless and until such authority is
obtained.

 

9.             Use of Proceeds from
Stock.

 

Proceeds from the sale of stock pursuant to Options
shall constitute general funds of the Company.

 

7

 

10.          Miscellaneous.

 

(a)           Stockholder Rights. No
Optionholder shall be deemed to be the holder of, or to have any of the rights
of a holder with respect to, any shares subject to such Option unless and until
such Optionholder has satisfied all requirements for exercise of the Option
pursuant to its terms.

 

(b)           No Service Rights. Nothing
in the Plan or any instrument executed or Option granted pursuant thereto shall
confer upon any Optionholder any right to continue to serve the Company as a
Non-Employee Director or as Chairman or shall affect the right of the Company
or an Affiliate to terminate (i) the employment of an Employee with or without
notice and with or without cause, (ii) the service of a Consultant pursuant to
the terms of such Consultant’s agreement with the Company or an Affiliate or
(iii) the service of a Director pursuant to the Bylaws of the Company or an
Affiliate, and any applicable provisions of the corporate law of the state in
which the Company or the Affiliate is incorporated, as the case may be.

 

(c)           Investment Assurances. The
Company may require an Optionholder, as a condition of exercising or acquiring
stock under any Option, (i) to give written assurances satisfactory to the
Company as to the Optionholder’s knowledge and experience in financial and
business matters and/or to employ a purchaser representative reasonably
satisfactory to the Company who is knowledgeable and experienced in financial
and business matters and that he or she is capable of evaluating, alone or
together with the purchaser representative, the merits and risks of exercising
the Option; and (ii) to give written assurances satisfactory to the Company
stating that the Optionholder is acquiring the stock subject to the Option for
the Optionholder’s own account and not with any present intention of selling or
otherwise distributing the stock. The foregoing requirements, and any
assurances given pursuant to such requirements, shall be inoperative if (iii)
the issuance of the shares upon the exercise or acquisition of stock under the
Option has been registered under a then currently effective registration
statement under the Securities Act or (iv) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the stock.

 

(d)           Withholding Obligations.
The Optionholder may satisfy any federal, state or local tax withholding
obligation relating to the exercise or acquisition of stock under an Option by
any of the following means (in addition to the Company’s right to withhold from
any compensation paid to the Optionholder by the Company) or by a combination
of such means: (i) tendering a cash payment; (ii) authorizing the Company to
withhold shares from the shares of the Common Stock otherwise issuable to the
Optionholder as a result of the exercise or acquisition of stock under the Option,
provided, however, that no shares of Common Stock are withheld with a value
exceeding the minimum amount of tax required to be withheld by law; or (iii)
delivering to the Company owned and unencumbered shares of the Common Stock.

 

11.          Adjustments upon Changes
in Stock.

 

(a)           Capitalization Adjustments.
If any change is made in the stock subject to the Plan, or subject to any
Option, without the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation, stock
dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate
structure or other transaction not involving the receipt of consideration by
the Company), the Plan will be appropriately adjusted in the class(es) and

 

8

 

maximum number of securities subject both to the Plan pursuant to
subsection 4(a) and to the nondiscretionary Options specified in Section 5, and
in the classes and maximum number of securities added to the Plan each January
1 pursuant to subsection 4(a), and the outstanding Options will be
appropriately adjusted in the class(es) and number of securities and price per
share of stock subject to such outstanding Options. The Board shall make such
adjustments, and its determination shall be final, binding and conclusive. (The
conversion of any convertible securities of the Company shall not be treated as
a transaction “without receipt of consideration” by the Company.)

 

(b)           Dissolution Or Liquidation.
In the event of a dissolution or liquidation of the Company, then all
outstanding Options shall terminate immediately prior to such event.

 

(c)           Change In Control. In the
event of (i) a sale, lease or other disposition of all or substantially all of
the securities or assets of the Company, (ii) a merger or consolidation in
which the Company is not the surviving corporation or (iii) a reverse merger in
which the Company is the surviving corporation but the shares of Common Stock
outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise, then any surviving corporation or acquiring corporation may assume
any Options outstanding under the Plan or may substitute similar Options
(including an option to acquire the same consideration paid to the stockholders
in the transaction described in this subsection 11(c)) for those outstanding
under the Plan, and the vesting of Options held by Non-Employee Directors shall
accelerate in full on the date immediately preceding the date of such event. In
the event no surviving corporation or acquiring corporation assumes such
Options or substitutes similar Options for those outstanding under the Plan,
then with respect to Options held by Optionholders whose Continuous Service has
not terminated, the vesting of such Options (and the time during which such
Options may be exercised) shall accelerate in full on the date immediately preceding
the date of such event, and the Options shall terminate if not exercised at or
prior to such event. With respect to any other Options outstanding under the
Plan, such Options shall terminate if not exercised prior to such event.

 

12.          Amendment of the Plan
and Options.

 

(a)           Amendment Of Plan. The
Board at any time, and from time to time, may amend the Plan. However, except
as provided in Section 11 relating to adjustments upon changes in stock, no
amendment shall be effective unless approved by the stockholders of the Company
to the extent stockholder approval is necessary to satisfy the requirements of
Rule 16b-3 or any Nasdaq or securities exchange listing requirements.

 

(b)           Stockholder Approval. The
Board may, in its sole discretion, submit any other amendment to the Plan for
stockholder approval.

 

(c)           No Impairment Of Rights. Rights
under any Option granted before amendment of the Plan shall not be impaired by
any amendment of the Plan unless (i) the Company requests the consent of the
Optionholder and (ii) the Optionholder consents in writing.

 

(d)           Amendment Of Options. The
Board at any time, and from time to time, may amend the terms of any one or
more Options; provided, however, that the rights under any Option shall not be
impaired by any such amendment unless (i) the Company requests the consent of
the Optionholder and (ii) the Optionholder consents in writing.

 

9

 

13.          Termination or
Suspension of the Plan.

 

(a)           Plan Term. The Board may
suspend or terminate the Plan at any time. No Options may be granted under the
Plan while the Plan is suspended or after it is terminated.

 

(b)           No Impairment Of Rights. Suspension or
termination of the Plan shall not impair rights and obligations under any
Option granted while the Plan is in effect except with the written consent of
the Optionholder.

 

14.          Effective Date of Plan
and amendments.

 

The Plan became effective on March 29, 2000. The
March 5, 2003 amendment to the Plan shall become effective as of
Jan. 1, 2003, provided that the stockholders approve such amendment at the
2003 annual meeting of stockholders. No Option that has been granted under an
amendment adopted by the Board shall be exercised unless and until such
amendment has been approved by the stockholders, which approval shall be within
twelve (12) months after the date such amendment is adopted by the Board.

 

15.          Choice of Law.

 

All questions
concerning the construction, validity and interpretation of this Plan shall be
governed by the law of the State of Delaware, without regard to such state’s
conflict of laws rules.

 

10Exhibit 10.58

 

April 30, 2002

 

 

Lawrence M. Blatt

2176 Riverside Lane

Boulder, CO 80304

 

 

Dear Larry:

 

On behalf of InterMune, Inc. (The “Company”), we are pleased to offer
you the position of Vice President, Biopharmacology Research, reporting to
President & CEO, W. Scott Harkonen, MD.

 

The terms of your employment will be as follows:

 

You will receive a base salary of $19,375.00 per month, paid on a
semi-monthly basis.  The Company will
choose and retain a relocation company to provide you with the following
services: area orientation, full packing services, pick-up and delivery,
household goods transportation, transport of (1) automobile, storage in transit
for 30 days and $75,000 full value protection. 
The relocation expenses will be paid by the Company and is subject to
repayment in full if your employment terminates before one year.  In addition, the Company will provide you
with a one-time payment of $25,000 (plus tax gross up) to be paid one week
after start date for miscellaneous relocation expenses.    As a full-time employee of the Company,
you will be eligible for the Company’s standard benefits package including
medical and dental as well as the employee stock purchase program, 401K
Retirement Plan and our Flexible Spending Plan.  Your position is exempt, and you will not be eligible for
overtime.

 

The Company will also provide to you a loan in the amount of
$250,000.  The term of the loan will be
for five (5) years, and the other terms and conditions of this loan will be
governed by a loan agreement.  We
understand that you may enter into a bridge loan with a bank for the sale of
your existing property, and the Company will be pleased to sign as a guarantor
of such loan.

 

Subject to approval of the Compensation Committee of the Company’s
Board of Directors, you will be granted an option to purchase 80,000 shares of
the Company’s common stock. Your right to exercise the shares of this option
will be subject to a vesting schedule, such that 80,000 shares of your option
will be fully vested at the end of four years completed employment. The grant
will be made by the Compensation Committee of the Company’s Board of Directors
at its next meeting after your first day of employment.  The exercise price will be the same as the
closing price of the Company’s Common Stock on the Nasdaq Exchange on the day
before the meeting. Your vesting will begin on your first day of your
employment with us; however, it is subject to a one-year cliff. The terms and
conditions of this option, including vesting, will be governed by an agreement
that you will be required to sign.

 

As a condition of your employment, you will be required to provide
proof of U.S. citizenship or that you are legally entitled to work in the
United States, and to execute and be bound by the terms of the enclosed
Proprietary Information and Inventions Agreement.  In that regard, please be aware that Company policy prohibits all
employees from bringing to the Company, or using in performance of their
responsibilities at the Company, any confidential information, trade secrets,
or proprietary material or processes of any previous employer.  Employment with the Company is at will, is
not for any specific term and can be terminated by you or the Company at any
time for any reason with or without cause.

 

This offer remains open through end of the day on May 1,
2002.  Upon acceptance of this offer,
the terms described in this letter and in the Proprietary Information and
Inventions Agreement shall be the terms of your employment, superseding and
terminating any other employment agreements or understandings with InterMune,
whether written or oral.  Any additions
or modifications of these terms must be in writing and signed by you and an
officer of the

 

1

 

Company.  Your anticipated start
date will be May 3, 2002

 

Again, let me indicate how pleased we are to extend this offer, and how
much we at InterMune look forward to working with you.  We anticipate that you will find this an
exciting and challenging position in a dynamic and growing company.

 

Please accept this offer by signing and returning the enclosed
duplicate original of this letter to me. 
If you have any questions, please call me or Mireya Ono in the office.

 

 

	
  Very truly yours,

  
	
   

  
	
   

  
	
  /s/ W. Scott Harkonen

  	
   

  
	
   

  	
   

  
	
  W. Scott Harkonen, MD

  President & CEO

  

 

 

UNDERSTOOD AND
ACCEPTED:

 

 

	
  /s/ Lawrence M. Blatt

  	
   

  	
  May 1, 2002

  	
   

  
	
  Lawrence M. Blatt

  	
  Date

  	
   

  

 

2

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