Document:

Exhibit 10.67

 

ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (the
“Escrow Agreement”) made and entered into as of the 25th day of
September, 2003 by and among InterMune, Inc. (the “Company”), Scott Harkonen
(“Harkonen”) and U.S. Bank, National Association (the “Escrow Agent”), with the
latter’s office at One California Street, Suite 2550, San Francisco, CA  94111.

 

WITNESSETH

WHEREAS, the Company and
Harkonen have heretofore entered into a Consulting Agreement and Mutual
Releases (the “Agreement”) for the purpose of finalizing certain agreements
between them, and WHEREAS, pursuant to the Agreement, the Company hereby
deposits today $282,500 (the “Escrow Fund”) with the Escrow Agent;

 

NOW
THEREFORE, IT IS AGREED:

 

1.               The
Company hereby delivers to the Escrow Agent, and the Escrow Agent hereby
acknowledges receipt of the Escrow Funds to be held in accordance with the
terms and conditions of this Escrow Agreement.

 

2.               The
Escrow Agent shall hold the Escrow Fund until such time as it shall receive
written direction from the Company to release all of the Escrow Fund and to
whom and when.

 

3.               U.S.
Bank National Association’s General Provisions are incorporated herein and
attached as Exhibit A.

 

4.               The
Escrow Agent fees shall be paid in advance by the Company in accordance with
the Fee Schedule attached as Exhibit B.

 

5.               The
Escrow Agent is to invest the Escrow Fund in a Money Market fund.  Interest shall become part of the Escrow
Fund for the benefit of the Escrow’s Fund subsequent recipient.

 

6.               NOTICES  All notices, demands, and requests required
or permitted to be given under the provisions of this agreement must be in
writing and shall be deemed to have been sufficiently given when received if
personally delivered or by facsimile or, if mailed by registered or certified
mail, with return receipt requested, or overnight mail addressed as follows:

 

	
  If to the
  Company:

  	
  InterMune,
  Inc.

  
	
   

  	
  Attn:
  General Counsel

  
	
   

  	
  3280
  Bayshore Blvd.

  
	
   

  	
  Brisbane,
  CA  94005

  
	
   

  	
   

  
	
  If to
  Harkonen:

  	
  Dr. Scott
  Harkonen

  
	
   

  	
  125 Montalvo

  
	
   

  	
  San
  Francisco, CA  94116

  

 

1

 

	
  If to the
  Escrow Agent:

  	
  U.S. Bank
  National Association

  
	
   

  	
  One
  California Street, Suite 2550

  
	
   

  	
  San
  Francisco, CA  94111

  
	
   

  	
  Ann Gadsby

  
	
   

  	
  Telephone
  (415) 273-4532

  
	
   

  	
  Fax: (415)
  273-4591

  

 

IN
WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement on the
date and year first above written.

 

 

	
  InterMune, Inc.

  
	
   

  
	
  By

  	
  /s/ Sharon
  Surrey-Barbari

  	
   

  
	
  Title

  	
  SVP and CFO

  	
   

  
	
   

  
	
   

  
	
  Dr. Scott Harkonen

  
	
   

  
	
  /s/ W. Scott
  Harkonen

  	
   

  
	
   

  
	
  U.S. BANK, National Association, as Escrow Agent

  
	
   

  
	
  By

  	
  /s/ Michael
  P. Susnow

  	
   

  
	
  Title

  	
  Vice
  President

  	
   

  
										

 

2

 

General
Provisions for

 

Corporate
Escrow Agreements

 

LIABILITY
OF ESCROW AGENT

 

In performing any duties under the Escrow Agreement (“Agreement”),
Escrow Agent (“Agent”) shall not be liable to any Party for consequential
damages, (including, without limitation lost profits) losses, or expenses,
except for gross negligence or willful misconduct on the part of the Agent.  Agent shall not incur any such liability for
(I) any act or failure to act made or omitted in good faith, or (II) any action
taken or omitted in reliance upon any instrument, including any written
statement or affidavit provided for in this Agreement that Agent shall in good
faith believe to be genuine, nor will Agent be liable or responsible for
forgeries, fraud, impersonations, or determining the scope of any
representative authority.  In addition,
Agent may consult with legal counsel in connection with Agent’s duties under
this Agreement and shall be fully protected in any act taken, suffered, or
permitted by him/her in good faith in accordance with the advice of
counsel.  Agent is not responsible for
determining and verifying the authority of any person acting or purporting to
act on behalf of any party to this Agreement.

 

FEES
AND EXPENSES

 

It is understood that the fees and usual charges agreed upon for
services of Agent shall be considered compensation for ordinary services as
contemplated by this Agreement.  In the
event that the conditions of this Agreement are not promptly fulfilled, or if
Agent renders any service not provided for in this Agreement, or if the Parties
request a substantial modification of its terms, or if any controversy arises,
or if Agent is made a Party to, or intervenes in, any litigation pertaining to
this escrow or its subject matter, Agent shall be reasonably compensated for
such extraordinary services and reimbursed for all costs, attorney’s fees,
including allocated costs of in-house counsel, and expenses occasioned by such
default, delay, controversy or litigation and Agent shall have the right to
retain all documents and/or other things of value at any time held by Agent in
this escrow until such compensation, fees, costs, and expenses are paid.  The Parties jointly and severally promise to
pay these sums upon demand.  Unless
otherwise provided, the Parties each will pay one-half of all Agent’s usual
charges and Agent may deduct such sums from the funds deposited.

 

CONTROVERSIES

 

If any controversy arises between the Parties to this Agreement, or
with any other Party, concerning the subject matter of this Agreement, its
terms or conditions, Agent will not be required to determine the controversy or
to take any action regarding it.  Agent
may hold all documents and funds and may wait for settlement of any such
controversy by final appropriate legal proceedings or other means as, in
Agent’s discretion, Agent may require, despite what may be set forth elsewhere
in this Agreement.  In such event, Agent
will not be liable for interest or damage.  
Furthermore, Agent may at its option, file an action of interpleader
requiring the Parties to answer and litigate any claims and rights among
themselves.  Agent is authorized to
deposit with the clerk of the court all documents and funds held in escrow,
except all costs, expenses, charges and reasonable attorney fees incurred by
Agent due to the interpleader action and which the Parties jointly and
severally agree to pay.  Upon initiating
such action, Agent shall be fully released and discharged of and from all
obligations and liability imposed by the terms of this Agreement.

 

INDEMNIFICATION
OF ESCROW AGENT

 

The Parties and their respective successors and assigns agree jointly
and severally to indemnify and hold Agent harmless against any and all losses,
claims, damages, liabilities, and expenses, including reasonable costs of
investigation, counsel fees, including allocated costs of in-house counsel and
disbursements that may be imposed on Agent or incurred by Agent in connection
with the performance of his/her duties under this Agreement, including but not
limited to any litigation arising from this Agreement or involving its subject
matter. Agent shall have a first lien on the property and papers held under
this Agreement for such compensation and expenses.

 

3

 

INVESTMENT
INSTRUCTIONS

 

For the purpose of investing funds held in escrow, Agent may accept
written instructions (including instructions sent to the agent  by facsimile transmission, with original
sent promptly to the agent) from an authorized party. The parties shall
indemnify and hold Agent harmless from any and all liability for acting on such  investment instruction purported to be given
by an Authorized Party.  Agent shall not
be responsible for the authenticity of any instructions, or be in any way
liable for any unauthorized instruction or for acting on such an instruction,
whether or not the person giving the instructions was, in fact, an Authorized
Party.  In no event shall Agent be
liable to the Parties for any consequential, special, or exemplary damages,
including but not limited to lost profits, from any cause whatsoever arising
out of, or in any way connected with acting upon  instructions believed by Agent to be genuine.  In the absence of such  instructions, the agent shall invest, to the
extent reasonably practicable, in a U.S.Bank Money Market Account, which is
insured by the FDIC.

 

The Agent may make any investments through its own investment
department or that of its affiliates. 
The Agent shall not be liable for any loss from such investments,
including upon the sale or disposition of any investments.

 

Agent will act upon investment instructions the day that such
instructions are received, provided the requests are communicated within a
sufficient amount of time to allow Agent to make the specified investment.  Instructions received after an applicable
investment cutoff deadline will be treated as being received by Agent on the next
business day, and Agent shall not be liable for any loss arising directly or
indirectly, in whole or in part, from the inability to invest funds on the day
the instructions are received.  Agent
shall not be liable for any loss incurred by the actions of third parties or by
any loss arising by error, failure, or delay in making  an investment which is caused by
circumstances beyond Agent’s reasonable control.

 

FUNDS
INVESTED DURING ESCROW

 

The Parties acknowledge that payment of any interest earned on the
funds invested in this escrow will be subject to backup withholding penalties
unless a properly completed Internal Revenue Service form W8 or W9
certification is submitted to Escrow Agent.

 

RESIGNATION
OF ESCROW AGENT

 

Agent may resign at any time upon giving at least thirty (30) days’
written notice to the Parties; provided, however, that no such resignation
shall become effective until the appointment of a successor escrow agent which
shall be accomplished as follows:  The
Parties shall use their best efforts to mutually agree on a successor escrow
agent within thirty (30) days after receiving such notice.  If the Parties fail to agree upon a
successor escrow agent within such time, Agent shall have the right to appoint
a successor escrow agent authorized to do business in the state of
California.  The successor escrow agent
shall execute and deliver an instrument accepting such appointment and it
shall, without further acts, be vested with all the estates, properties,
rights, powers, and duties of the predecessor escrow agent as if originally
named as escrow agent.   Agent shall be
discharged from any further duties and liability under this Agreement.

 

AUTOMATIC
SUCCESSION

 

Any company into which the Agent may be merged or with which it may be
consolidated, or any company to whom Agent may transfer a substantial amount of
its Global Escrow business, shall be the Successor to the Agent without the
execution or filing of any paper or any further act on the part of any of the
Parties, anything herein to the contrary notwithstanding.

 

GOVERNING
LAW

 

This Agreement is to be construed and interpreted according to
California law.

Prepared by U.S. Bank, N.A.,

 

SIGNATURE PAGES

 

This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be one and the same instrument.  The exchange of copies of this Agreement and
of signature pages by facsimile transmission shall constitute effective
execution and delivery of this Agreement as to the parties and may be used in
lieu of the original Agreement for all purposes.  Signatures of the parties transmitted by facsimile shall be
deemed to be their original signatures for all purposes.

 

4

 

Fee Schedule for Escrow

Schedule of Fees for Services as

Escrow Agent

 

For

InterMune/W. Scott Harkonen Escrow

Customer Name /
Series 

 

	
  Initial Fees

  	
   

  	
   

  	
   

  
	
  01010

  	
   

  	
  Acceptance Fee
  (excluding charge for legal counsel and/or legal opinion) The acceptance fee
  includes the administrative review of documents, initial set-up of the
  account, and other reasonably required services up to and including the
  closing.  This is a one-time fee,
  payable at closing.

  	
   

  	
  $

  	
  500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. Bank Corporate Trust Services reserves the right to refer any or
  all escrow documents for legal review before execution.  Legal fees (billed on an hourly basis) and
  expenses for this service will be billed to, and paid by, the customer.  If appropriate and upon request by the
  customer, U.S. Bank Corporate Trust Services will provide advance estimates
  of these legal fees.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administration
  Fees Billed Annually

  	
   

  	
   

  	
   

  
	
  04460

  	
   

  	
  Escrow Agent

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
   

  	
   

  	
  Annual administration fee for performance
  of the routine duties of the escrow agent associated with the management of
  the account.  Administration fees are
  payable in advance.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Incidental
  Expenses

  	
   

  	
   

  	
   

  
	
  SUCE0000

  	
   

  	
  Indirect OOP Expenses in Advance Charge for
  miscellaneous expenses such as; fax, messenger service, overnight mail,
  telephone, stationery and postage. 
  This charge is a percent of total Administration Fees, charged in
  advance.

  	
   

  	
  3.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transaction Fees

  	
   

  	
   

  	
   

  
	
  10880

  	
   

  	
  Disbursements/Draws

  	
   

  	
  $

  	
  20.00

  	
   

  
	
   

  	
   

  	
  Charge per item
  disbursed.  Includes the wire or check
  fee.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10100

  	
   

  	
  Trades

  	
   

  	
  $

  	
  100.00

  	
   

  
	
   

  	
   

  	
  Charge per trade to buy or sell investments,
  excluding automated sweep transactions.*

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  
  

  

  

  
	
   

  	
   

  	
  *Automatic sweeping of cash into money
  market funds is not considered a “trade” for the purposes of this fee.  However, applicable fees are disclosed in
  the “Automatic Money Market Investments” authorization letter or the fund
  prospectus provided

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10101

  	
   

  	
  Receipts

  	
   

  	
  $

  	
  20.00

  	
   

  
	
   

  	
   

  	
  Charge per
  receipt of funds via wire or check.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Direct Out of Pocket
  Expenses

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Reimbursement of expenses associated with
  the performance of our duties, including but not limited to publications,
  legal counsel after the initial close, travel expenses and filing fees.

  	
   

  	
  At Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extraordinary Services

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Extraordinary services are duties or
  responsibilities of an unusual nature, including termination, but not
  provided for in the governing documents or otherwise set forth in this
  schedule.  A reasonable charge will be
  assessed based on the nature of the service and the responsibility involved.  At our option, these charges will be billed
  at a flat fee or at our hourly rate then in effect.

  	
   

  	
   

  	
   

  

 

5

 

Account approval is subject to review and qualification.  Fees are subject to change at our discretion
and upon written notice.  Fees paid in advance
will not be prorated.  The fees set
forth above and any subsequent modifications thereof are part of your
agreement.  Finalization of the
transaction constitutes agreement to the above fee schedule, including
agreement to any subsequent changes upon proper written notice.  In the event your transaction is not
finalized, any related out-of-pocket expenses will be billed to you
directly.  Absent your written
instructions to sweep or otherwise invest, all sums in your account will remain
uninvested and no accrued interest or other compensation will be credited to
the account.  Payment of fees
constitutes acceptance of the terms and conditions set forth.

 

Dated:  September 24, 2003

 

6Exhibit 10.1

 

SEVERANCE AGREEMENT IN THE EVENT OF A CHANGE
OF CONTROL

BETWEEN BUSINESS BANK OF CALIFORNIA AND TRAVIS KAWELMACHER

 

Dear Travis:

 

The Board of Directors of Business Bank of California (the “Bank”) has
authorized the President or Chief Executive Officer of the Bank to offer
severance agreements in the event of a change of control to selected key
executives.  Selections shall be made at
the sole discretion of the President or Chief Executive Officer, and an
executive is not eligible unless selected and notified of his or her
selection.  You have been selected to
receive such an agreement and are hereby so notified.  The terms are as follows:

 

In the event of (i) a merger where the Bank is not the surviving
corporation, (ii) a transfer of all or substantially all of the assets of the
Bank or (iii) any acquisition, consolidation or other corporate reorganization
where there is a change in ownership of at least fifty-one percent (51%) except
as may result from a transfer of shares to another corporation in exchange for
at least eighty percent (80%) control of that corporation, and, in the event
that your employment is terminated for any reason during the twelve (12) month
period immediately following the effective date of consummation of such merger
or other corporate reorganization by the surviving entity, in the event of
merger; by the transferee of assets in the event of a purchase or sale; or by
the acquirer, in the event of an acquisition of stock in the Bank, then you
shall be entitled to the following severance benefits commencing upon the
effective date of termination of your employment: (a) You shall receive within
ten (10) days of such termination or within such time period as prescribed by
law a Base Benefit equal to Twelve (12) months of base salary at the
rate in effect at the date of the termination of your employment, and (b) an
Added Benefit of two (2) weeks of base salary for each full Year of Service,
provided, however, that the total Base Benefit and Added Benefit payable to you
shall not exceed Eighteen (18) months of Pay. 
Base salary shall be your salary exclusive of bonuses, commissions and
any other form of compensation.

 

Severance pay shall be payable in a lump sum and shall be subject to
all legally required withholding.

 

In order to be eligible to receive such benefit, you must perform your
duties in a satisfactory manner through the “severance period” as specified by
the Bank, your employment must be terminated involuntarily by action of the
Bank as a result of or within 12 months of a change of control and you must
sign a general release of all claims in a form and manner as prescribed by the
Bank.

 

You will not be eligible for severance if you resign before the
termination date designated by the Bank, even if you received advance notice of
your involuntary termination, if you resign or are involuntarily terminated
because you violated any policy, procedure or rule of the Bank, because of
performance-related reasons, because you engaged in dishonest or wrongful
conduct or because you committed any crime. 
You are also not eligible for severance if you receive an offer

 

 

of a comparable position with
the Bank or any of its parents, subsidiaries, related or affiliated persons or
entities with no significant reduction in your current base salary, a
significant reduction being a reduction of 10% or more of the base salary in
effect during the pay period ending on or coincident with the date of
termination by the Bank.  You will be
entitled to severance pay if you are offered such a position at a work location
more than thirty (30) miles from your place of employment at the Bank.

 

You are not eligible for severance in the event you are party to an
individual written employment contract with the Bank, except to the extent that
contract specifically provides for these terms and conditions.

 

If you are laid off or discharged because of a plant shut-down or mass
layoff to which the Worker Adjustment and Retraining Notice Act of 1988
(“WARN”) applies, severance payments shall not be available except as provided
in this paragraph.  In accordance with
WARN, an Employee shall be given either 60 days’ notice of termination of
employment, 60 days’ pay in lieu of notice, or a combination of notice and pay
in lieu of notice the total of which equals not less than 60 days.  The amount of severance pay to which you are
entitled under this agreement shall be determined by subtracting the number of
days’ pay in lieu of notice you receive pursuant to WARN from the amount of
severance pay to which you would be otherwise entitled under this Agreement.

 

This Agreement embodies the entire understanding of the parties on the
subjects set forth herein, and there are no promises, terms, conditions, or
obligations, oral or written, express or implied, other than those contained
herein.  This Agreement may not be
amended or modified except in writing signed by both parties.

 

Nothing in this document is intended to create, or shall be considered
or construed as creating an employment contract between you and Business Bank
of California, or shall modify or affect in any way your at will employment
relationship with Business Bank of California. You understand that no employee
or representative of the Bank, other than its President or Chief Executive
Officer, has the authority to enter into any agreement for employment for any
specified period of time, or to make any agreement contrary to the foregoing.

 

Further, neither the President nor the Chief Executive Officer of the
Bank may alter the at-will nature of the employment relationship unless the
President or Chief Executive Officer and you both sign a written agreement that
clearly and expressly specifies the intent to do so.

 

	
  Sincerely,

  
	
   

  
	
  /s/ Alan J. Lane

  	
   

  
	
  Alan J. Lane

  
	
  President

  
	
   

  
	
   

  
	
  Dated: July 14, 2003

  	
   

  
			

 

 

	
  /s/ Travis
  Kawelmacher

  	
   

  
	
  Travis Kawelmacher

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