Document:

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                                                                   EXHIBIT 10.17

                              CONSULTING AGREEMENT
                                     BETWEEN
                                   R. D. CASH
                                       AND
                               QUESTAR CORPORATION

     This CONSULTING AGREEMENT is entered into effective as of May 1, 2002,
between Questar Corporation, a corporation organized and existing under the laws
of the state of Utah, with its principal place of business at 180 East 100
South, Salt Lake City, Utah 84111, herein referred to as "the Company," and R.
D. Cash of 3205 61st Street, Lubbock, Texas 79413, herein referred to as
"Mr.Cash."

RECITALS

     1.   Mr. Cash has retired from Questar Corporation and no longer serves as
          an employee of the Company, but he does continue to serve as Chairman
          of the Company's Board of Directors. He has substantial knowledge of
          certain areas of the Company's business and operations.

     2.   Due to Mr. Cash's knowledge regarding Company business and operations,
          the Company has requested that he perform consulting and advisory
          services on an irregular, part-time basis. Mr. Cash desires to perform
          such services subject to the terms and conditions set forth below.

THEREFORE, THE PARTIES AGREE AS FOLLOWS:

SECTION I - PROPRIETARY INFORMATION

     Proprietary Information shall include, but not be limited to, information,
knowledge, documents and data, subject to the exclusions of Section X, that:
(a) pertain to existing operations and future developments of any aspect of the
Company's current or prospective businesses Mr. Cash is aware of from his past
employment or through services rendered pursuant to this Agreement that are
regarded and protected as confidential by the Company, the disclosure of which
to unauthorized persons could have a detrimental consequence to the Company.

SECTION II - SERVICES

     Mr. Cash will perform consulting and advisory services for the Company as
requested from time to time by Company representatives. Specifically, Mr. Cash
may be requested to consult on the following subjects: investor relations
activities, charitable contributions, employee benefits, strategic planning, any
exploration and production projects/organization, mergers and acquisition
activity, and succession planning.

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SECTION III - PLACE OF WORK

     The Company will not provide Mr. Cash with a permanent office or other
place of work. However, the Company will provide best efforts work space from
time to time and access to secretarial and office services for his work on
Company affairs.

SECTION IV - TIME DEVOTED TO WORK

     In performing services under this Agreement, Mr. Cash shall establish his
own work schedule. The Company's only interest is in the results of his
performance and his advice. The Company agrees to give reasonable advance notice
of meetings or other travel. Mr. Cash agrees to be generally available by
telephone, electronic mail, or fax and shall give reasonable notice to the
Company in the event of vacations or other events that might interfere with
normal availability and communications.

SECTION V - COMPANY REPRESENTATIVE

     Keith O. Rattie is designated as the Company's representative when dealing
with Mr. Cash.

SECTION VI - PAYMENT

     The Company will pay Mr. Cash a retainer of $16,666.67 per month, which is
payable on or before the first day of each month. In the event this Agreement is
continued after the first year on a month-to-month basis, Mr. Cash will be paid
this same dollar figure per month unless renegotiated. Mr. Cash will also be
reimbursed for any out-of-pocket expenses he incurs while performing services
under this Agreement. Examples of such expenses are the cost of transportation,
meals, and lodging if Mr. Cash is required to perform services outside the area
of his domicile or if sudden transportation is needed to return to Salt Lake
City. The Company will reimburse reasonable mileage expenses if Mr. Cash is
requested to travel out of town to perform responsibilities pursuant to the
terms of this Agreement.

SECTION VIII - STATUS

     This Agreement provides for the performance of services by Mr. Cash as an
independent contractor. Mr. Cash will not be considered an employee of the
Company for any purpose and shall not represent himself as an employee of the
Company to third parties. He will not be eligible to participate in any pension
or welfare benefit programs or incentive compensation programs that are provided
for employees of the Company other than benefits available to him as a retired
employee of the Company. Mr. Cash understands that he is a retired employee for
purposes of exercising stock options granted by the Company. The sole benefits
for which Mr. Cash shall be eligible are benefits available to retirees of
Questar or available to non-employee directors of the Company.

                                       -2-
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     As long as Mr. Cash provides services pursuant to the terms of this
Agreement, he is considered to be an "insider" under federal securities laws and
shall comply with the requirements of such laws.

SECTION IX - ACKNOWLEDGMENTS

     (a)  Mr. Cash shall render consulting services on behalf of the Company
          that are special, unique, and extraordinary; and

     (b)  Mr. Cash shall treat all Proprietary Information of the Company on a
          confidential basis.

     (c)  During this Agreement's term, Mr. Cash may have access to and become
          familiar with various items of the Company's Proprietary Information.
          Mr. Cash acknowledges that such Proprietary Information shall be owned
          solely by the Company.

SECTION X - LIMITATIONS ON USE OF PROPRIETARY INFORMATION

     During the term of this Agreement and for two years after it terminates,
Mr. Cash shall not use the Proprietary Information for any purpose except to
further the Company's business, nor divulge this information to any person other
than the Company or persons to whom the Company has given its consent, except to
the extent such information:

     (a)  was independently obtained by Mr. Cash in a manner unrelated to his
          employment with the Company;

     (b)  was in the public domain or enters into the public domain through no
          fault of Mr. Cash; or

     (c)  is compelled to be disclosed by government or legal process.

SECTION XI - INTELLECTUAL AND OTHER PROPERTY

     (a)  All inventions and other developments or improvements conceived by
          Mr. Cash, alone or in conjunction with other persons (including notes,
          drawings, memoranda or other documents), during the term of his
          engagement that are within the scope of the Company's business
          operations or that relate to any of the Company's work or projects are
          the exclusive property of the Company, and Mr. Cash agrees to execute
          such conveyances or documents required to transfer patents or
          copyrights as may be reasonably requested by the Company.

                                       -3-
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     (b)  Upon termination of this Agreement for any reason, Mr. Cash shall
          immediately return to the Company all of Company's property, if any,
          including cellular telephone, computer hardware, computer software,
          software documentation and any replications used by him in rendering
          services to the Company or otherwise that are in his possession of
          control.

SECTION XII - NON-COMPETE

     (a)  The Company is entering into this Agreement with Mr. Cash to obtain
          financial and competitive advantage. During the term of this Agreement
          and for a period of two years following termination of Mr. Cash's
          services, Mr. Cash shall not directly or indirectly:

          (i)    engage in, become employed by, or render services, advice or
                 assistance to any person or business entity engaged in projects
                 that do or may directly compete with any projects he has
                 rendered advice concerning or has become aware of the Company's
                 interest in by virtue of the services rendered pursuant to this
                 Agreement.

          (ii)   retain or use in any way any Proprietary Information or
                 transmit or reveal any of such information to persons in
                 competition with the Company;

          (iii)  solicit any customers of the Company for or on behalf of any
                 persons in competition with the Company; or

          (iv)   influence or attempt to influence the Company employees to
                 terminate their employment to work for any competitor of the
                 Company.

     (b)  Subject to subsection (a)(ii) above, Mr. Cash is not prohibited from
          soliciting or providing consulting services to any customer of the
          Company.

     (c)  The parties have attempted to limit Mr. Cash's right to compete only
          to the extent necessary to protect the Company from unfair
          competition. Mr. Cash may request and the Company may grant, at its
          sole discretion, waivers to the foregoing restrictions on a
          case-by-case basis where the applicability of this Section XII may be
          in question. Recognizing that reasonable people may differ in making
          this determination, the parties agree that, if the scope of
          enforceability of this provision is disputed at any time, a court or
          other trier of fact may modify and enforce this provision to the
          extent that it believes to be reasonable under the circumstances
          existing at that time.

SECTION XII - ASSIGNMENT

     This Agreement is personal in nature and is non-assignable.

                                       -4-
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     IN WITNESS WHEREOF, the parties have executed this Agreement on the 1st day
of May, 2002.

                                      QUESTAR CORPORATION

                                      By:  /s/K. O. Rattie
                                         ---------------------------------------
                                           Keith O. Rattie
                                           President and Chief Executive Officer

                                      By:  /s/R.D. Cash
                                         ---------------------------------------
                                           R. D. Cash
                                           Consultant

                                       -5-Exhibit
10.44

VIA PERSONAL DELIVERY

May 8, 2002

Timothy
P. Lynch

3280
Bayshore Boulevard

Brisbane,
CA  94005

 

 

Dear
Tim:

 

Your resignation has respectfully been acknowledged and accepted by
me.  This letter sets forth the
substance of the separation agreement (the “Agreement”) that InterMune, Inc.
(the “Company”) is offering to you to aid in your employment transition.

 

1.             Separation.  Your last day of work with the Company will
be June 30, 2002, and your employment termination date will be June 30, 2002 (the
“Separation Date”).

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

3.             Health
Insurance.  To the
extent provided by the federal COBRA law or, if applicable, state insurance
laws, and by the Company’s current group health insurance policies, you will be
eligible to continue your group health insurance benefits at the Company’s
expense.  Later, you may be able to
convert to an individual policy through the provider of the Company’s health
insurance, if you wish.  If you timely
elect continued coverage under COBRA, the Company, as part of this Agreement,
will pay your COBRA premiums through  June
30, 2003.

4.             Stock
Options.  You were
granted options to purchase up to 70,000 shares of the Company’s common stock,
pursuant to the Company’s 2000 Equity
Incentive Plan (the “Plan”).  You
hereby terminate all of your right, title and interest in and to these 70,000
shares.

5.             Other
Compensation or Benefits.  For
the year following the Separation Date, the Company shall continue to pay to
you on a semi-monthly basis $8,125 with the last payment to occur on June 30,
2003.  With respect to those 79,750
shares of stock of the Company that you own that will have not vested as of the
Separation Date, which shares you purchased pursuant to that certain Early
Exercise Stock Purchase Agreement, dated as of December 16, 1999 (the “Early
Exercise Agreement”), the Company as of July 1, 2002, terminates its Repurchase
Option (as defined in Section 3(a) of the Agreement) set forth in Section 3(a)
of the Agreement with respect to the 79,750 Unvested Shares (as defined in
Section 3(a) of the Agreement); provided however, you hereby agree 

 

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not to sell or otherwise dispose of such
79,750 shares until October 1, 2002. 
You acknowledge that, except as expressly provided in this Agreement,
you will not receive any additional compensation, severance or benefits after
the Separation Date.

6.             Expense
Reimbursements.  You agree
that by 30 days after the Separation Date, you will submit your final
documented expense reimbursement statement reflecting all business expenses you
incurred through the Separation Date, if any, for which you seek
reimbursement.  The Company will
reimburse you for these expenses pursuant to its regular business practice.

7.             Return
of Company Property.  On the
Separation Date, you agree to return to the Company all Company documents (and
all copies thereof) and other Company property that you have had in your
possession at any time, including, but not limited to, Company files, notes,
drawings, records, business plans and forecasts, financial information,
specifications, computer-recorded information, tangible property (including,
but not limited to, computers), credit cards, entry cards, identification
badges and keys; and, any materials of any kind that contain or embody any
proprietary or confidential information of the Company (and all reproductions
thereof).

8.             Proprietary
Information Obligations. 
After your Separation Date, you will abide by your continuing
obligations under your Proprietary Information and Inventions Agreement not to
use or disclose any confidential or proprietary information of the Company
without prior written authorization from a duly authorized representative of
the Company.  A copy of your Proprietary
Information and Inventions Agreement is attached hereto as Exhibit A.

9.             Confidentiality.  (a) The Company may disclose this Agreement
as necessary to fulfill standard or legally required corporate reporting or
disclosure requirements; and (b) the parties may disclose this Agreement
insofar as such disclosure may be necessary to enforce its terms or as
otherwise required by law.  Further,
both parties shall agree to the text of any press release concerning your
resignation prior to publication.

10.          References.  Recognizing the importance to both you and
the Company of communications with third parties about your departure from the
Company, both parties agree that they will respond to any inquiries
(e.g., employment interviews or reference inquiries) regarding the
circumstances of your resignation from the Company by conveying, with respect
to the Company, that you were an outstanding CFO who excelled at fundraising,
investor relations, and financial reporting and management, and with respect to
you, that the Company is a very good company to work for and that it has strong
prospects.  You agree to refer all job
reference inquiries only to Dr. Harkonen, Dr. Pennington, Stephen Rosenfield, Peter
Van Vlasselaer, and John Wulf.

11.          Release.  In exchange for the payments and other
consideration under this Agreement to which you would not otherwise be
entitled, you agree to execute the Employee Agreement and Release attached
hereto as Exhibit B.  You and the Company hereby represent, warrant
and agree that neither is aware of and that your resignation does not arise
from circumstances relating to any violation of law by the Company, any
irregularity in the Company’s operations (e.g., marketing, financial reporting,
accounting, regulatory affairs, etc.) or your knowledge of the results of any
of the Company’s clinical trials.

 

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12.          Miscellaneous.  This Agreement, including Exhibit A and Exhibit B, constitutes the complete, final and exclusive
embodiment of the entire agreement between you and the Company with regard to
this subject matter.  It is entered into
without reliance on any promise or representation, written or oral, other than
those expressly contained herein, and it supersedes any other such promises,
warranties or representations.  This
Agreement may not be modified or amended except in a writing signed by both you
and a duly authorized officer of the Company. 
This Agreement will bind the heirs, personal representatives, successors
and assigns of both you and the Company, and inure to the benefit of both you
and the Company, their heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or
unenforceable, in whole or in part, this determination will not affect any
other provision of this Agreement and the provision in question will be
modified by the court so as to be rendered enforceable.  This Agreement will be deemed to have been
entered into and will be construed and enforced in accordance with the laws of
the State of California as applied to contracts made and to be performed
entirely within California.

If this Agreement is acceptable to you, please sign below and on the
attached Employee Agreement and Release, which is part of this Agreement, and
return the originals of both to me.

I wish you good luck in your future endeavors.

Sincerely,

InterMune, Inc.

By: /s/ W. Scott Harkonen

W. Scott
Harkonen

CEO and
President

 

Exhibit A — Proprietary Information
and Inventions Agreement

Exhibit B — Employee Agreement and
Release

Agreed:

/s/ Timothy P. Lynch

Timothy P. Lynch

 

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Exhibit A

INTERMUNE PHARMACEUTICALS, INC.

 

EMPLOYEE PROPRIETARY INFORMATION

AND INVENTIONS AGREEMENT

                In consideration of my
employment or continued employment by INTERMUNE PHARMACEUTICALS, INC. (the “Company”), and the compensation now and
hereafter paid to me, I hereby agree as follows:

1.             NONDISCLOSURE

1.1    Recognition of Company’s Rights;
Nondisclosure.  At all
times during my employment and thereafter, I will hold in strictest confidence
and will not disclose, use, lecture upon or publish any of the Company’s
Proprietary Information (defined below), except as such disclosure, use or
publication may be required in connection with my work for the Company, or
unless an officer of the Company expressly authorizes such in writing.  I will obtain Company’s written approval
before publishing or submitting for publication any material (written, verbal,
or otherwise) that relates to my work at Company and/or incorporates any
Proprietary Information.  I hereby
assign to the Company any rights I may have or acquire in such Proprietary
Information and recognize that all Proprietary Information shall be the sole
property of the Company and its assigns.

1.2    Proprietary Information.  The term “Proprietary
Information” shall mean any and all confidential and/or proprietary
knowledge, data or information of the Company. 
By way of illustration but not limitation, “Proprietary Information” includes
(a) trade secrets, inventions, mask works, ideas, processes, formulas,
source and object codes, data, programs, other works of authorship, know-how,
improvements, discoveries, developments, designs and techniques (hereinafter
collectively referred to as “Inventions”); and (b) information
regarding plans for research, development, new products, marketing and selling,
business plans, budgets and unpublished financial statements, licenses, prices
and costs, suppliers and customers; and (c) information regarding the skills
and compensation of other employees of the Company.  Notwithstanding the foregoing, it is understood that, at all such
times, I am free to use information which is generally known in the trade or
industry, which is not gained as result of a breach of this Agreement, and my
own, skill, knowledge, know-how and experience to whatever extent and in
whichever way I wish.

1.3    Third Party Information.  I understand, in addition, that the Company
has received and in the future will receive from third parties confidential or
proprietary information (“Third Party 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. 
During the term of my employment and thereafter, I will hold Third Party
Information in the strictest confidence and will not disclose to anyone (other
than Company personnel who need to know such information in connection with
their work for the Company) or use, except in connection with my work for the
Company, Third Party Information unless expressly authorized by an officer of
the Company in writing.

1.4    No Improper Use of Information of Prior
Employers and Others. 
During my employment by the Company I will not improperly use or disclose
any confidential information or trade secrets, if any, of any former employer
or any other person to whom I have an obligation of confidentiality, and I will
not bring onto the premises of the Company any unpublished documents or any
property belonging to any former employer or any other person to whom I have an
obligation of confidentiality unless consented to in writing by that former
employer or person.  I will use in the
performance of my duties only information which is generally known and used by
persons with training and experience comparable to my own, which is common
knowledge in the industry or otherwise legally in the public domain, or which
is otherwise provided or developed by the Company.

 

4

 

2.             ASSIGNMENT
OF INVENTIONS.

2.1          Proprietary Rights.  The term “Proprietary Rights” shall
mean all trade secret, patent, copyright, mask work and other intellectual
property rights throughout the world.

2.2          Prior Inventions.  Inventions, if any, patented or unpatented,
which I made prior to the commencement of my employment with the Company are
excluded from the scope of this Agreement. 
To preclude any possible uncertainty, I have set forth on Exhibit B
(Previous Inventions) attached hereto a complete list of all
Inventions that I have, alone or jointly with others, conceived, developed or
reduced to practice or caused to be conceived, developed or reduced to practice
prior to the commencement of my employment with the Company, that I consider to
be my property or the property of third parties and that I wish to have
excluded from the scope of this Agreement (collectively referred to as “Prior
Inventions”).  If disclosure
of any such Prior Invention would cause me to violate any prior confidentiality
agreement, I understand that I am not to list such Prior Inventions in Exhibit B
but am only to disclose a cursory name for each such invention, a listing of
the party(ies) to whom it belongs and the fact that full disclosure as to such
inventions has not been made for that reason. A space is provided on Exhibit B
for such purpose.  If no such disclosure
is attached, I represent that there are no Prior Inventions.  If, in the course of my employment with the
Company, I incorporate a Prior Invention into a Company product, process or
machine, the Company is hereby granted and shall have a nonexclusive,
royalty-free, irrevocable, perpetual, worldwide license (with rights to
sublicense through multiple tiers of sublicensees) to make, have made, modify,
use and sell such Prior Invention. 
Notwithstanding the foregoing, I agree that I will not incorporate, or
permit to be incorporated, Prior Inventions in any Company Inventions without
the Company’s prior written consent.

2.3          Assignment of Inventions.  Subject to Sections 2.4, and 2.6, I hereby
assign and agree to assign in the future (when any such Inventions or
Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all my right, title and interest in and
to any and all Inventions (and all Proprietary Rights with respect thereto)
whether or not patentable or registrable under copyright or similar statutes,
made or conceived or reduced to practice or learned by me, either alone or
jointly with others, during the period of my employment with the Company.  Inventions assigned to the Company, or to a
third party as directed by the Company pursuant to this Section 2, are
hereinafter referred to as “Company Inventions.”

2.4          Nonassignable Inventions.  This Agreement does not apply to an
Invention which qualifies fully as a nonassignable Invention under
Section 2870 of the California Labor Code (hereinafter “Section 2870”).  I have reviewed the notification on Exhibit A
(Limited Exclusion Notification) and agree that my signature acknowledges
receipt of the notification.

2.5          Obligation to Keep Company Informed.  During the period of my employment and for
six (6) months after termination of my employment with the Company, I will
promptly disclose to the Company fully and in writing all Inventions authored,
conceived or reduced to practice by me, either alone or jointly with
others.  In addition, I will promptly
disclose to the Company all patent applications filed by me or on my behalf
within a year after termination of employment. 
At the time of each such disclosure, I will advise the Company in
writing of any Inventions that I believe fully qualify for protection under
Section 2870; and I will at that time provide to the Company in writing
all evidence necessary to substantiate that belief.  The Company will keep in confidence and will not use for any
purpose or disclose to third parties without my consent any confidential
information disclosed in writing to the Company pursuant to this Agreement
relating to Inventions that qualify fully for protection under the provisions
of Section 2870.  I will preserve
the confidentiality of any Invention that does not fully qualify for protection
under Section 2870.

 

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2.6          Government or Third Party.  I also agree to assign all my right, title
and interest in and to any particular Company Invention to a third party,
including without limitation the United States, as directed by the Company.

2.7          Works for Hire.  I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within the
scope of my employment and which are protectable by copyright are “works made
for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101).

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

In the event the Company is unable for any reason,
after reasonable effort, to secure my signature on any document needed in
connection with the actions specified in the preceding paragraph, I hereby
irrevocably designate and appoint the Company and its duly authorized officers
and agents as my agent and attorney in fact, which appointment is coupled with
an interest, to act for and in my behalf to execute, verify and file any such
documents and to do all other lawfully permitted acts to further the purposes
of the preceding paragraph with the same legal force and effect as if executed
by me.  I hereby waive and quitclaim to
the Company any and all claims, of any nature whatsoever, which I now or may
hereafter have for infringement of any Proprietary Rights assigned hereunder to
the Company.

3.             RECORDS. 
I agree to keep and maintain adequate and current records (in the form
of notes, sketches, drawings and in any other form that may be required by the
Company) of all Proprietary Information developed by me and all Inventions made
by me during the period of my employment at the Company, which records shall be
available to and remain the sole property of the Company at all times.

4.             ADDITIONAL ACTIVITIES.  I agree that during the period of my employment by the Company I
will not, without the Company’s express written consent, engage in any
employment or business activity which is competitive with, or would otherwise
conflict with, my employment by the Company. 
I agree further that for the period of my employment by the Company and
for one (l) year after the date of termination of my employment by the Company
I will not induce or attempt to induce any employee of the Company to leave the
employ of the Company.

5.             NO CONFLICTING OBLIGATION.  I represent that my performance of all the terms of this
Agreement and as an employee of the Company does not and will not breach any
agreement to keep in confidence information acquired by me in confidence or in
trust prior to my employment by the Company. 
I have not entered into, and I agree I will not enter into, any
agreement either written or oral in conflict herewith.

6.             RETURN OF COMPANY DOCUMENTS.  When I leave the employ of the Company, I will deliver to the
Company any and all drawings, notes, memoranda, specifications, devices,
formulas, and documents, together with all copies thereof, and any other
material containing or disclosing any Company Inventions, Third Party
Information or Proprietary Information of the Company.  I further agree that any property situated
on the Company’s premises and owned by the Company, including disks and other
storage media, filing cabinets or other work areas, is subject to inspection by
Company personnel at any time with or without notice.  Prior to leaving, I will cooperate with the Company in completing
and signing the Company’s termination statement.

7.             LEGAL AND EQUITABLE REMEDIES.  Because my services are personal and unique and because I may
have access to and become acquainted with the Proprietary Information of the
Company, the Company shall have the right to enforce this Agreement and any of
its provisions by injunction, specific performance or other equitable relief,
without bond and without prejudice to any other rights and remedies that the
Company may have for a breach of this Agreement.

8.             NOTICES.  Any notices
required or permitted hereunder shall be given to the appropriate party at the
address specified below or at such other address as the party shall specify in
writing.  Such notice shall be deemed
given upon personal delivery to the appropriate address or if sent by certified
or registered mail, three (3) days after the date of mailing.

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9.         NOTIFICATION OF NEW EMPLOYER.  In the event that I leave the employ of the Company, I hereby
consent to the notification of my new employer of my rights and obligations
under this Agreement.

10.       GENERAL PROVISIONS.

10.1        Governing Law; Consent to Personal
Jurisdiction.  This
Agreement will be governed by and construed according to the laws of the State
of California, as such laws are applied to agreements entered into and to be
performed entirely within California between California residents.  I hereby expressly consent to the personal
jurisdiction of the state and federal courts located in San Francisco County,
California for any lawsuit filed there against me by Company arising from or
related to this Agreement.

10.2        Severability.  In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions of this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 
If moreover, any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration,
geographical scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be enforceable to the extent compatible with the
applicable law as it shall then appear.

10.3        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.

10.4        Survival.  The provisions of this Agreement shall survive the termination of
my employment and the assignment of this Agreement by the Company to any
successor in interest or other assignee.

10.5        Employment.  I agree and understand that nothing in this
Agreement shall confer any right with respect to continuation of employment by
the Company, nor shall it interfere in any way with my right or the Company’s
right to terminate my employment at any time, with or without cause.

10.6        Waiver.  No waiver by the Company of any breach of this Agreement shall be
a waiver of any preceding or succeeding breach.  No waiver by the Company of any right under this Agreement shall
be construed as a waiver of any other right. 
The Company shall not be required to give notice to enforce strict
adherence to all terms of this Agreement.

10.7        Entire Agreement.  The obligations pursuant to Sections 1 and 2
of this Agreement shall apply to any time during which I was previously
employed, or am in the future employed, by the Company as a consultant if no
other agreement governs nondisclosure and assignment of inventions during such
period.  This Agreement is the final,
complete and exclusive agreement of the parties with respect to the subject matter
hereof and supersedes and merges all prior discussions between us.  No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, will be effective
unless in writing and signed by the party to be charged.  Any subsequent change or changes in my
duties, salary or compensation will not affect the validity or scope of this
Agreement.

                This Agreement
shall be effective as of the first day of my employment with the Company,
namely:  November 1, 1999.

 

7

 

             I HAVE READ THIS AGREEMENT
CAREFULLY AND UNDERSTAND ITS TERMS.  I
HAVE COMPLETELY FILLED OUT EXHIBIT B TO THIS AGREEMENT.

 

/s/ Timothy P. Lynch

(Signature)

TIMOTHY P. LYNCH

(Printed
Name)

Address:    1340
Lombard Street, Apt 1

                
  San Francisco, CA 94109

Dated:  1/20/00

 

Accepted and Agreed To:

InterMune, Pharmeceuticals Inc.

By:   /s/
W. Scott Harkonen

Title: /s/ Pres/CEO

Address:    3294
West Bayshore Road

                   
Palo Alto, CA  94303

Dated: 1/27/00

 

 

8

 

Exhibit A

LIMITED EXCLUSION NOTIFICATION

THIS IS TO
NOTIFY  you in
accordance with Section 2872 of the California Labor Code that the foregoing
Agreement between you and the Company does not require you to assign or offer
to assign to the Company any invention that you developed entirely on your own
time without using the Company’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 Company’s business,
or actual or demonstrably anticipated research or development of the Company;

2.             Result from any work
performed by you for the Company.

To the extent a provision in the foregoing Agreement
purports to require you to assign an invention otherwise excluded from the
preceding paragraph, the provision is against the public policy of this state
and is unenforceable.

This limited exclusion does not apply to any patent or
invention covered by a contract between the Company and the United States or
any of its agencies requiring full title to such patent or invention to be in
the United States.

I
ACKNOWLEDGE RECEIPT  of a copy of
this notification.

By: Timothy P. Lynch

       (Printed Name of Employee)

Date:1/20/00

WITNESSED BY:

Mireya M. Cretarola

(Printed Name of
Representative)

 

 

9

 

Exhibit B

TO:                   INTERMUNE,
INC.

FROM:
____________________________

DATE:
_____________________________

SUBJECT:                                    Previous Inventions

1.             Except as listed in Section 2
below, the following is a complete list of all inventions or improvements
relevant to the subject matter of my employment by INTERMUNE, INC. (the “Company”) that have been made or conceived
or first reduced to practice by me alone or jointly with others prior to my
engagement by the Company:

____       No inventions or
improvements.

____       See below:

____Additional
sheets attached.

 

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

	
   

  	
   

  	
  Invention
  or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

____Additional
sheets attached.

 

10

 

 

Exhibit B

 

EMPLOYEE AGREEMENT AND RELEASE

                I agree to the terms in the
foregoing letter Agreement.

 

Except as otherwise set forth in this Agreement, I
hereby release, acquit and forever discharge the Company, its parents and
subsidiaries, and their officers, directors, agents, servants, employees,
attorneys, shareholders, successors, assigns and affiliates, of and from any
and all claims, liabilities, demands, causes of action, costs, expenses,
attorneys fees, damages, indemnities and obligations of every kind and nature,
in law, equity, or otherwise, known and unknown, suspected and unsuspected,
disclosed and undisclosed, arising out of or in any way related to agreements,
events, acts or conduct at any time prior to and including the execution date
of this Agreement, including but not limited to:  all such claims and demands directly or indirectly arising out of
or in any way connected with my employment with the Company or the termination
of that employment; claims or demands related to salary, bonuses, commissions,
stock, stock options, or any other ownership interests in the Company, vacation
pay, fringe benefits, expense reimbursements, severance pay, or any other form
of compensation; claims pursuant to any federal, state or local law, statute,
or cause of action including, but not limited to, the federal Civil Rights Act
of 1964, as amended; the federal Americans with Disabilities Act of 1990; the
federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the
California Fair Employment and Housing Act, as amended; tort law; contract law;
wrongful discharge; discrimination; harassment; fraud; defamation; emotional
distress; and breach of the implied covenant of good faith and fair dealing.

I
UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN
CLAIMS.  In giving this release, which
includes claims which may be unknown to me at present, I acknowledge that I
have read and understand Section 1542 of the California Civil Code which reads
as follows:  “A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have materially
affected his settlement with the debtor.” I hereby expressly waive
and relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any unknown or
unsuspected claims I may have against the Company.

 

 

	
   

  	
  By:

  	
  /s/
  TIMOTHY P. LYNCH

  
	
   

  	
   

  	
  Timothy P. Lynch

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  May 8, 2002

  

 

 

11

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