Document:

Pacific Capital Bancorp 2012 Annual Incentive Plan

 10.1 
  

 
 2012 ANNUAL INCENTIVE PLAN 

Effective Date: February 7, 2012 

 

 
 2012 ANNUAL INCENTIVE PLAN 

 

	1.	PURPOSE 

 The purpose of
the 2012 Annual Incentive Plan (the “Plan”) is to promote the success of Pacific Capital Bancorp and its subsidiaries (collectively, the “Company”) by rewarding certain key employees for providing outstanding services to the
Company and by linking the overall compensation of such key employees to performance established goals that are designed to enhance the Company’s long-term financial success. 

 

	2.	ADMINISTRATION 

 The Plan
shall be administered by the Compensation Oversight Committee of the Board of Directors of Pacific Capital Bancorp (the “Committee”). The Committee shall have the authority to construe and interpret the Plan (except as otherwise provided
herein) and any agreement or other document relating to any annual incentive award under the Plan (an “Incentive Award”), may adopt rules and regulations governing the administration of the Plan, and shall exercise all other duties and
powers conferred on it by the Plan, or which are incidental or ancillary thereto. The Committee shall determine the maximum dollar amount that may be payable by the Company pursuant to the Plan during each fiscal year (a “Plan Year”).

  

	3.	PARTICIPATION 

 The Chief
Executive Officer of the Company (the “CEO”) shall submit to the Committee a list of eligible employees for participation in the Plan for the current or upcoming Plan Year (each such eligible employee, a “Participant”). The
Committee shall approve the inclusion of any Officer (as such term is defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) as a Participant in the Plan and the CEO shall approve the inclusion of all other employees as
Participants in the Plan. 
  

	4.	INCENTIVE AWARDS 

 A.
Performance Objectives. Incentive Awards under the Plan shall be linked to the achievement of performance objectives (“Performance Objectives”) associated with the Company (“Company Objectives”) and with the business
unit/department of the Participant or the Participant himself or herself (“Department or Individual Objectives”). The Performance Objectives for each Participant will be established within the first ninety (90) days of each Plan Year
in a manner that will qualify the Incentive Awards as “performance-based compensation” for purposes of Internal Revenue Code Section 409A (“Code Section 409A”) based on criteria such as, but not limited to, total
revenue, revenue growth, net income, earnings, earnings growth, earnings per share, stock price, cash flow, efficiency ratio, total deposits, deposit growth, fee income, non-interest income, investment services earnings, investment services revenue,
wealth management earnings, wealth management revenue, total loans, loan growth, loan charge offs, new trust assets, new trust fees, nonperforming assets to assets ratio, return on assets, return on equity, assets under management, trust earnings,
trust growth, trust revenue and customer satisfaction. The Committee shall approve the Performance Objectives for each Officer Participant and the CEO shall approve the Performance Objectives for all other Participants. 

  
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 B. Determination of Incentive Awards. The table below provides guidelines for the
range of potential Incentive Awards, expressed as a percentage of base salary in effect at the end of the Plan Year, and the allocation of Performance Objectives between Company Objectives and Department or Individual Objectives, based on the tier
designation of a Participant. The Incentive Award opportunities and the allocation of Performance Objectives for any Participant may be different from that contemplated in the table below. In addition, these guidelines may be modified from time to
time by the Committee in its sole and absolute discretion. 
  

																					
	 Participant

Designation
	  	Incentive Award Opportunities
(Percent
of Salary)	 	 	Performance
Objectives
(Weighting)	 
	  	Threshold
Performance	 	 	Target
Performance	 	 	Maximum
Performance	 	 	Company	 	 	Department/
Individual	 
	 Tier I
	  	 	25 - 30	% 	 	 	50 - 60	% 	 	 	75 - 90	% 	 	 	80	% 	 	 	20	% 
	 Tier II
	  	 	17.5 - 20	% 	 	 	35 - 40	% 	 	 	52.5 - 60	% 	 	 	75	% 	 	 	25	% 
	 Tier III
	  	 	12.5 - 15	% 	 	 	25 - 30	% 	 	 	37.5 - 45	% 	 	 	70	% 	 	 	30	% 
	 Tier IV
	  	 	7.5 - 10	% 	 	 	15 - 20	% 	 	 	22.5 - 30	% 	 	 	0	% 	 	 	100	% 

 Threshold performance is the minimum level of performance necessary for a Participant to be eligible to
receive an Incentive Award. Target performance is the anticipated level of performance based on both historical data and management’s judgment of anticipated performance during the performance period. Maximum performance is the level of
performance which based on historical data and management’s judgment would be exceptional or significantly beyond the expected. Any payment of an Incentive Award will be calculated using a ratable approach, where payouts are calculated as a
proportion of threshold, target and maximum performance levels. 
 Each Plan Year, the CEO shall submit to the Committee the
proposed tier level, Incentive Award opportunities and allocation of Performance Objectives for each Participant. The Committee shall approve the tier level, Incentive Award opportunities and allocation of Performance Objectives for each Officer
Participant and the CEO shall approve the tier level, Incentive Award opportunities and allocation of Performance Objectives for all other Participants. For the avoidance of doubt, the tier level, Incentive Award opportunities and allocation of
Performance Objectives for any Participant may be different from that contemplated in the table above. In addition, and notwithstanding the fact that Performance Objectives have been achieved, the Company may pay an Incentive Award of less than the
amount contemplated by the Plan or otherwise determined with respect to a Participant, or may pay no Incentive Award at all. In addition, the Committee, in its sole and absolute discretion, may adjust or modify the calculation of Performance
Objectives for a Plan Year, among other reasons, to prevent the dilution or enlargement of the rights of Participants (i) in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event, or development,
or (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or in response to, or in anticipation of, changes in applicable laws, regulations,
accounting principles, or business conditions. 

  
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 C. Committee Discretion to Determine Incentive Awards. The Committee has the sole and
absolute discretion to determine whether all or any portion of the Incentive Award contemplated by the Plan or otherwise determined with respect to a Participant for such Plan Year will be paid, and the specific amount (if any) of any such Incentive
Award to be paid to each Participant for such Plan Year. The Committee has the sole and absolute discretion to reduce or eliminate a Participant’s Incentive Award. To this same extent, the Committee may at any time establish (and, once
established, rescind, waive, or amend) additional conditions and limitations on the payment of Incentive Awards (including but not limited to the achievement of other financial, strategic or individual goals, which may be objective or subjective) as
it may deem desirable in carrying out the purposes of the Plan and may take into account such other factors as it deems appropriate in administering any aspect of the Plan. Without limiting the generality of the foregoing, a Participant must receive
a minimum performance rating of “meets expectations” or better and adhere to the Company’s compliance standards to be eligible for any payment of an Incentive Award. 

D. Time of Payment. Subject to Section 4(F) below and the provisions of any written deferred compensation plan or agreement
that may be applicable to a Participant, any Incentive Award payable under the Plan shall be paid in cash in the year following the Plan Year in which the performance period ends as soon as practicable following the Committee’s determinations
under this Section 4 (the “Determination Date”) but in no event later than March 31 of the year following the Plan Year in which the performance period ends. Subject to Section 4(F) below, any such payment shall be in cash
on such payment date as the Committee may approve or require, subject to applicable withholdings. 
 E. Tax Withholding.
The Company shall withhold from any amounts payable under this Plan, or from any other compensation payable to a Participant, any and all federal, state and local income taxes, the Participant’s share of FICA and other employment taxes, and any
other taxes that are required to be withheld from such payment under applicable law. 
 F. Election to Receive Deferred Stock
In Lieu of Cash. No later than the earlier of (a) six months prior to the end of a Plan Year and (b) the date on which the Incentive Award has become “reasonably ascertainable” as defined for purposes of Code
Section 409A, and provided that the Participant has continuously performed services for the Company from the beginning of the Plan Year (or, if later, the date on which Performance Objectives are established for such Plan Year) through the date
of election, a Participant may make an irrevocable election in writing to receive any whole percentage up to one hundred percent (100%) of the Incentive Award in deferred stock, with such deferred stock being settled on the second anniversary
of the Determination Date or, in the case of a Participant who has not continuously performed services for the Company from the date of election through the second anniversary of the Determination Date, the third anniversary of the Determination
Date (the date of settlement is referred to as the “Settlement Date”). The deferred stock will be issued in the form of Restricted Stock Units (“RSUs”) under the Company’s 2010 Equity Incentive Plan. On the Settlement Date,
the RSUs will be converted into shares of common stock of the Company (i.e., one share of common stock for each RSU) and will be delivered to the Participant as soon as reasonably practicable following the Settlement Date. The number of RSUs that
will be issued to a Participant who makes a timely election under this Section 4(F) will be determined by multiplying (x) the percentage of the Incentive Award elected by the Participant to be paid in deferred stock, by (y) the cash
amount of the Incentive Award, and dividing the result by (z) eighty percent (80%) of the closing price of the Company’s common stock on the Determination Date (or the first trading day thereafter if such day is not a trading day).

  
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	5.	RECOVERY OF AWARDS 

 All
payments made under the Plan are subject to the “clawback” obligations of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) and any other “clawback” obligations pursuant to
applicable law. As a result, and by way of example, if the Company’s financial statements must be restated for any reason, to the extent required by Dodd-Frank, the Company must recover from each Participant, and each Participant agrees to
promptly repay, any incentive-based compensation which would not have been earned under the restated financial statements. 
  

	6.	TERMINATION OF EMPLOYMENT 

If a Participant’s employment with the Company is terminated for any reason prior to the payment of an Incentive Award, no Incentive
Award will be paid except as set forth below or as otherwise determined by the Committee in its sole and absolute discretion. Notwithstanding the foregoing, if a Participant is disabled and placed on disability leave, his/her Incentive Award may be
prorated so that no Incentive Award will be earned during the period of disability leave. In the event of death, the Company may pay to the Participant’s estate the pro-rata portion of the Incentive Award that had been earned by the
Participant. Employees who qualify for official retirement may receive payment for a pro-rata portion of the Incentive Award that they would be eligible for prior to retirement based on the actual attainment of the Performance Objectives.

  

	7.	AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN 

 The Board of Directors of Pacific Capital Bancorp (the “Board”) or the Committee may from time to time amend, suspend, or terminate in whole or in part, and if suspended or terminated, may
reinstate, any or all of the provisions of the Plan. 
  

	8.	MISCELLANEOUS 

 A. No
Right to Incentive Award or Continued Employment. Neither the establishment of the Plan nor the provision for or payment of any amounts hereunder nor any action of the Company, the Board, the Committee or the CEO in respect of the Plan shall be
held or construed to confer upon any person any legal right to receive, or any interest in, an Incentive Award or any other benefit under the Plan, or any legal right to be continued in the employ of the Company. The Company expressly reserves any
and all rights to discharge a Participant in its sole and absolute discretion, without liability of any person, entity, or governing body under the Plan or otherwise. Nothing in this Section 8(A), however, is intended to adversely affect any
express independent right of any person under a separate employment agreement. Notwithstanding any other provision hereof and notwithstanding the fact that the Performance Objectives have been attained, the Company shall have no obligation to pay
any Incentive Award hereunder nor to pay the maximum amount of any Incentive Award or any prorated amount based on service during a Plan Year or otherwise. 
 B. Discretion. Any decision made or action taken by the Company or by the Board, Committee or CEO arising out of or in connection with the creation, amendment, construction, administration,
interpretation, and effect of the Plan shall be within the absolute discretion of such entity or person and shall be conclusive and binding upon all persons. No member of the Board or Committee, nor the CEO, shall have any liability for actions
taken or omitted under the Plan by such person or any other person. 
 C. Arbitration. All claims, disputes and other
matters in question arising out of or relating to this Plan shall be resolved by binding arbitration before an arbitrator, selected by the mutual agreement of the parties, from the Judicial Arbitration and Mediation Services, Inc.

  
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(“JAMS”), in Santa Barbara, California. In the event JAMS is unable or unwilling to conduct the arbitration provided for under the terms of this paragraph, or has discontinued its
business, the parties agree that an arbitrator, selected by the mutual agreement of the parties, from the American Arbitration Association (“AAA”), in Santa Barbara, California, shall conduct the binding arbitration referred to in this
paragraph. Notice of the demand for arbitration shall be filed in writing with the other party to the dispute and with JAMS (or AAA, if necessary). In no event shall the demand for arbitration be made after the date when institution of legal or
equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. The arbitration shall be subject to commercial rules and procedures used or established by JAMS, or if there are
none, the commercial rules and procedures used or established by AAA. Notwithstanding anything to the contrary in the JAMS (or AAA) rules and procedures, the arbitration shall provide for (i) written discovery and depositions adequate to give
the parties access to documents and witnesses that are essential to the dispute and (ii) a written decision by the arbitrator that includes the essential findings and conclusions upon which the decision is based. Subject to Section 8(D)
below, the parties shall bear their own costs and attorneys’ fees incurred in conducting the arbitration, and shall split equally the fees and administrative costs charged by the arbitrator and JAMS (or AAA) unless required otherwise by
applicable law. Any award rendered by JAMS (or AAA) shall be final and binding upon the parties, and as applicable, their respective heirs, beneficiaries, legal representatives, agents, successors and assigns, and may be entered in any court having
jurisdiction thereof. Any arbitration hereunder shall be conducted in Santa Barbara, California, unless otherwise agreed to by the parties. 
 D. Attorneys Fees. In the event of any arbitration or litigation concerning any controversy, claim, or dispute arising out of or relating to this Plan, the prevailing party shall be entitled to
recover from the non-prevailing party reasonable expenses, attorneys’ fees, and costs incurred in connection therewith or in the enforcement or collection of any judgment or award rendered therein. The “prevailing party” means the
party determined by the arbitrator(s) or court, as the case may be, to have most nearly prevailed, even if such party did not prevail in all matters, not necessarily the one in whose favor a judgment is rendered. 

E. No Funding of Plan. The Company shall not be required to fund or otherwise segregate any cash or any other assets, which may at
any time be paid to Participants under the Plan. The Plan shall constitute an “unfunded” plan of the Company. The Company shall not, by any provisions of the Plan, be deemed to be a trustee of any property, and any rights of any
Participant or former Participant shall be no greater than those of a general unsecured creditor or shareholder of the Company, as the case may be. 
 F. Non-Transferability of Benefits and Interests. No benefit payable under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, and any such attempted action shall be void and no such benefit shall be in any manner liable for or subject to debts, contracts, liabilities, engagements or torts of any Participant or former Participant. This Section 8(F) shall not
apply to an assignment of a contingency or payment due (i) after the death of a Participant to the deceased Participant’s legal representative or beneficiary or (ii) after the disability of a Participant to the disabled
Participant’s personal representative. 
 G. Law to Govern. All questions pertaining to the construction,
regulation, validity, and effect of the provisions of the Plan shall be determined in accordance with the laws of the State of California. 

  
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 H. Non-Exclusivity. The Plan does not limit the authority of the Company, the Board,
the Committee or the CEO to grant awards or authorize any other compensation to any person under any other plan or authority. 

  
 Page 6Employment Offer Letter

 Exhibit 10.1 

 
 

 
 January 27, 2012 
 Jonathan A. Leff, M.D. 
 178 Seminary Drive 

Menlo Park, CA 94025 
 650.421.6618 

 

	 	Re:	Employment with InterMune, Inc. 

 Dear Jonathan:

 On behalf of InterMune, Inc., I am pleased to extend to you this official offer of employment with InterMune as Executive
Vice President, Research and Development, reporting to Dan Welch, Chairman, CEO & President in our Brisbane, California office beginning on a mutually agreed-upon date. InterMune may change your position, duties, supervisor and work
location from time to time as it deems appropriate. This position is a full time, exempt position. 
 Your employment is subject
to approval by InterMune’s Board of Directors, to proof of your legal right to work in the United States, and to your completing the INS Employment Eligibility Verification Form I-9. Your employment also is subject to successful verification of
your professional references, and to our standard pre-employment process, which includes completion of an employment application and successful completion of a standard background check. 
 Compensation 
 If you accept this offer and begin employment, you will receive an
initial base salary of $35,416.67 per month (equivalent to $425,000 per year), paid on a semi-monthly basis on our regular paydays. Deductions required by law or authorized by you will be taken from each paycheck. In addition, the Company will
provide you with a one-time sign-on bonus of $25,000 to be paid upon your first day of employment. 
 Additionally, you will be
eligible to participate in our discretionary incentive bonus program designed to provide a financial reward for achieving performance goals. The incentive plan will be based on two criteria: your individual performance against your goals as
determined by your manager and InterMune’s performance as determined by InterMune’s senior management. For 2012, your target bonus will be 40% of your base pay; the maximum bonus generally available is 150% of target. 

 Jonathan A. Leff, M.D. 

January 27, 2012 
 
Page
 2
 
  

 You also will be eligible to participate in InterMune’s Equity Incentive Plan. Following
commencement of your employment, a grant of an option to purchase 376,000 equity units under InterMune’s Equity Incentive Plan will be recommended to the Compensation Committee of the InterMune Board of Directors on your behalf. The grant will
be comprised of (a) 188,000 shares of Common Stock, and (b) 75,200 shares of Restricted Stock. The shares will vest over a period of four years beginning on the date of your employment and the option exercise price will be the NASDAQ
closing price of InterMune’s common stock on the fifth business day of the month following the month in which you begin employment. The exercise of any options will be subject in all respects to the terms of your stock option agreement and the
Equity Incentive Plan. All option grants are subject to final approval by the Compensation Committee of the InterMune Board of Directors. 

Employee Benefits 
 As a
full-time employee, you will be eligible for paid time-off benefits, such as sick leave and holidays, in accordance with our policies for similarly situated employees. You also will be eligible to participate in InterMune’s employee benefit
plans, in accordance with the terms and eligibility requirements of those plans. Currently, InterMune maintains group health insurance, vision and dental plans, a short and long-term disability plan, a Flexible Spending Account plan, a group Life
Insurance and AD&D plan, a 401(k) savings plan, a Long Term Care plan and an Employee Stock Purchase Plan. 
 InterMune
reserves the right to modify, amend or discontinue any benefit plan at any time, in its sole discretion. You may receive such other benefits as we may determine from time to time, in our sole discretion. 

Benefits upon Separation 
 Severance Pay in the Event of Termination (Not For Cause) Absent a Change in Control of InterMune. As a member of the Company’s Executive Committee, you will be entitled to the following
benefits in the event your employment is terminated other than for “Cause” or in the event of a “Change in Control” of InterMune (as those terms are defined below). Although you at all times will remain an at-will employee of
InterMune, InterMune agrees that in the event you are terminated by the Company other than for “Cause” in the absence of a “Change in Control” of InterMune, you will receive the following benefits within fourteen (14) days
after receipt by the Company of a general release duly signed by the you that releases the Company from all of your actual or potential claims against InterMune: 
  

	 	•	 	 If you have completed less than one (1) full year of service, you will receive six (6) months’ base salary at your final rate of pay,
six (6) months benefits continuation (i.e., Company-provided COBRA payments or equivalent), and six (6) months immediate acceleration of vesting of each of your outstanding equity grants, whether stock options or restricted shares

  
 3280
Bayshore Boulevard, Brisbane, CA 94005  Tel: 415.466.2200 Fax: 415.466.2300 

 Jonathan A. Leff, M.D. 

January 27, 2012 
 
Page
 3
 
  

	 	•	 	 If you have completed at least one (1) year but less than two (2) years of service, you will receive nine (9) months’ base salary
at your final rate of pay, nine (9) months benefits continuation (i.e., Company-provided COBRA payments or equivalent), and nine (9) months immediate acceleration of vesting of each of your outstanding equity grants, whether stock
options or restricted shares 

  

	 	•	 	 If you have completed two (2) years of service or more, you will receive twelve (12) months’ base salary at your final rate of pay,
twelve (12) months benefits continuation (i.e., Company-provided COBRA payments or equivalent), and twelve (12) months immediate acceleration of vesting of each of your outstanding equity grants, whether stock options or restricted
shares 

  

	 	•	 	 If such termination not for Cause occurs in the second half of the calendar year, you also will receive a pro rata share of your target bonus
for that year. 

 The acceleration of vesting provided for in this section of this agreement is intended to be in lieu of any
acceleration rights provided in any operative Stock Option Agreement you may sign, and in addition to any acceleration rights provided in the operative Stock Plan documents. All other terms and conditions applicable to your equity grants,
e.g., with regard to exercise after termination, forfeiture, etc., will continue to be governed by the operative Stock Option Agreement and Stock Plan document. Cash compensation required to be paid pursuant to this section of this Agreement
will be paid either in a single lump-sum payment or ratably on a monthly basis over the severance period, in the Company’s sole discretion. 
 Compensation upon Change in Control of InterMune. In the event of a Change in Control of the Company that results in: (i) your termination without Cause, or (ii) your resignation for
“Good Reason,” which for purposes of this Agreement shall mean either (a) a material diminution in your duties, title or compensation, or (b) a requirement that you relocate more than 80 km (50 miles) from your then-current
employment location, any of which event occurs within one (1) year of the change in control (a “Triggering Event”), you will receive the following benefits within fourteen (14) days after receipt by the Company of a general
release duly signed by the you that releases the Company from all of your actual or potential claims against InterMune: 
 (a) Cash Compensation: Two (2) years base salary at your final rate of pay and two (2) years benefits continuation (i.e., Company-provided COBRA payments or equivalent). If a
Triggering Event occurs in the second half of the calendar year, you also will receive a pro rata share of your target bonus for that year. 
 (b) Options or Restricted Share Grants: Vesting of all outstanding equity grants (including InterMune stock option grants, InterMune restricted stock grants,

  
 3280
Bayshore Boulevard, Brisbane, CA 94005  Tel: 415.466.2200 Fax: 415.466.2300 

 Jonathan A. Leff, M.D. 

January 27, 2012 
 
Page
 4
 
  

 
and any grants made by the acquiring entity) will immediately accelerate. The acceleration of vesting provided for in this section of this Agreement is intended to be in lieu of any acceleration
rights provided in the operative Stock Option Agreement, and in addition to any acceleration rights provided in the operative Stock Plan document. All other terms and conditions applicable to your equity grants, e.g., with regard to exercise
after termination, forfeiture, etc., will continue to be governed by the operative Stock Option Agreement and Stock Plan documents. 
 Definitions 
 For purposes of this agreement, “Cause” shall mean
any of the following: 
  

	 	•	 	 Willful refusal to follow lawful and reasonable corporate policy or Chief Executive Officer directives; or 

 

	 	•	 	 Willful failure, gross neglect or refusal to perform duties; or 

 

	 	•	 	 Willful act that intentionally or materially injures the reputation or business of the Company; or 

 

	 	•	 	 Willful breach of confidentiality that has a material adverse affect on the Company; or 

 

	 	•	 	 Fraud or embezzlement; or 

  

	 	•	 	 Indictment for criminal activity. 

 For purposes of this Agreement, “Change in Control” shall mean any of the following: 
  

	 	•	 	 A sale, lease or other disposition of all or substantially all of the securities or assets of the Company; or 

 

	 	•	 	 A merger or consolidation in which the Company is not the surviving corporation; or 

 

	 	•	 	 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. 

Employment with InterMune is at will. “Employment at will” means that you are free to resign from your employment at any time,
for any reason or no reason, with or without cause and with or without notice. Similarly, InterMune may terminate your employment at any time for any legal reason, with or without cause and with or without notice. By accepting this offer of
employment, you agree that your employment is at will, and acknowledge that no one, other than the Chief Executive Officer of InterMune, has the authority to promise you anything to the contrary and that any such agreement must be in writing and
signed by both you and the Chief Executive Officer of InterMune to be effective. 

  
 3280
Bayshore Boulevard, Brisbane, CA 94005  Tel: 415.466.2200 Fax: 415.466.2300 

 Jonathan A. Leff, M.D. 

January 27, 2012 
 
Page
 5
 
  

 We believe that your employment with InterMune requires a full-time commitment.
Employment with any other entity, or for yourself in competition with InterMune, is not permitted unless expressly authorized by InterMune in writing. 
 As an InterMune employee, you will be expected to abide by company rules and regulations and acknowledge in writing that you have read and agree to abide by the provisions of InterMune’s Employee
Handbook. 
 During the course of your employment, you may create, develop or have access to confidential information belonging
to InterMune, including trade secrets and proprietary information, such as clinical and other scientific data, customer information, business plans, marketing plans, unpublished financial information, software, source codes, and personnel
information. You agree that as a condition of your employment with InterMune, you will sign and comply with the enclosed InterMune Proprietary Information and Inventions Agreement, which contains certain commitments regarding confidentiality. By
accepting employment with InterMune, you also agree to keep all InterMune information strictly confidential, and not to use it or disclose it to any person or entity, except as is necessary in the ordinary course of performing your work. You further
acknowledge that your obligation to protect our confidential information from disclosure exists both during your employment and after it ends. You also agree that at the termination of your employment, for any reason, you will return to us all
copies (including electronic copies) of any documents or other materials you have that refer to or contain InterMune’s confidential information, including notebooks, manuals, letters and customer lists. 

In your work for InterMune, you will be expected not to use or disclose any confidential information, including trade secrets, of any
former employer or other person to whom you have an obligation of confidentiality. You agree to act in accordance with any valid non-disclosure agreements to which you may be subject. You will be expected to use only that information which is
generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by InterMune. By accepting this
offer of employment, you acknowledge that you will be able to perform your duties within these guidelines. You further agree that you will not bring onto InterMune’s premises any unpublished documents or property belonging to any former
employer or other person to whom you have an obligation of confidentiality. 
 You also agree, if you accept this offer of
employment, that for a period of two years after your employment ends, you will not solicit any InterMune employee or consultant to leave his or her employment or consulting relationship with InterMune in order to begin employment or a consulting
relationship with any company or business in actual or potential competition with InterMune. 
 The terms described in this
letter, together with your Proprietary Information and Inventions Agreement, replace all prior agreements, understandings, and promises between 

  
 3280
Bayshore Boulevard, Brisbane, CA 94005  Tel: 415.466.2200 Fax: 415.466.2300 

 Jonathan A. Leff, M.D. 

January 27, 2012 
 
Page
 6
 
  

 
InterMune and you, whether oral or written, concerning the terms and conditions of your employment with InterMune. Any modification of this agreement will be effective only if it is in writing
and is signed by both you and the Chief Executive Officer of InterMune. 
 Jonathan, I am pleased to extend this offer of
employment to you, and hope that your association with InterMune will be successful and rewarding. Please indicate your acceptance of this offer by signing this letter below and returning the letter as soon as possible. A copy of this letter is
enclosed for your records. 
  

	
	Sincerely,
	
	InterMune, Inc.
	
	/s/ Daniel G. Welch
	Daniel G. Welch
	Chairman, CEO & President

 I understand and agree to the foregoing terms and conditions of employment with InterMune, Inc. 

 

	
	 /s/ Jonathan Leff

	Jonathan A. Leff, M.D.

 Date    6.Feb.2012 

  
 3280
Bayshore Boulevard, Brisbane, CA 94005  Tel: 415.466.2200 Fax: 415.466.2300

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