Document:

Exhibit 10.74

 

Aralast
Promotion Agreement

 

Parties

 

This Aralast Promotion Agreement (the “Agreement”) is effective
March 26, 2004, (the “Effective Date”) by and between Baxter Healthcare
Corporation, with offices at One Baxter Way, Westlake Village, California 91362
(“Baxter”) and InterMune, Inc. with offices at 3280 Bayshore Blvd., Brisbane,
California 94005 (“InterMune”).

 

Recitals

 

WHEREAS, Baxter is
engaged in the manufacture, promotion and sale of a plasma-derived Alpha1
Proteinase Inhibitor, a biological pharmaceutical with the trade name Aralast,
(“Aralast”), which is used to treat certain pulmonology indications; and

 

WHEREAS, InterMune has a direct
sales force which specializes in the sale of biological pharmaceuticals,
including those used to treat pulmonology indications, and who directly call on
pulmonologists; and

 

WHEREAS, InterMune
has represented to Baxter that it has the capability, technical ability,
expertise and experienced sales force to promote Aralast and achieve Baxter’s
sales targets; and

 

WHEREAS, Baxter and
InterMune desire to enter into this Agreement for InterMune  to promote  Aralast  in the
United States.

 

Now Therefore It Is Hereby Agreed As Follows:

 

1.                                       Promotion
Services.

 

(a)                    During the term of this Agreement,
Baxter grants to InterMune the [*] right to promote Aralast within the
Territory (as defined below) in accordance with the terms, covenants and
conditions hereof.  The “Territory”
shall include the 50 states of the United States and the District of Columbia,
but excludes the territories, possessions and commonwealths of the United
States.

 

(b)                   InterMune accepts such appointment
and agrees to promote Aralast for Baxter on the terms and subject to the
conditions described in this Agreement. 
InterMune shall have no right to assign or sublicense the rights granted
hereunder (except as set forth in Section 26), or to appoint agents or
co-promoters to promote Aralast or to satisfy its obligations under this
Agreement.

 

(c)                    During the term of the Agreement,
Baxter grants InterMune the right to use trademarks, trade names, servicemarks
and logos belonging to Baxter that directly 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

 

relate to Aralast (the “Aralast Trademarks”) for the purpose of
promoting Aralast.  The Aralast
Trademarks are set forth in Attachment A. 
The right to use the Aralast Trademarks is subject to Baxter’s
guidelines (attached as Attachment B hereto), as may be amended from time to
time; provided that no such
amendment will be effective with respect to InterMune until [*]
following [*].  All use by InterMune shall inure to the
benefit of Baxter, and InterMune agrees not to contest Baxter’s rights in such
Aralast Trademarks.  InterMune further
agrees not to use any trademarks, trade names, servicemarks, logos or designs
that would be confusingly similar to the Aralast Trademarks.  InterMune does not, and shall not, acquire
any rights whatever in or to such trademarks or trade names.  Baxter, by this Agreement, does not make any
claim to nor does it purport to authorize any use of or grant any rights in
trademarks and trade names belonging to others.  The packaging and labeling for Aralast shall not bear InterMune’s
trademark. InterMune agrees to immediately cease the use of Aralast
Trademarks upon the expiration of the Agreement, and shall return all marketing
and other materials bearing such Aralast Trademarks to Baxter upon such
expiration.

 

(d)                   Baxter has the sole right and
responsibility for establishing and modifying the terms and conditions for
Aralast sales, including the selling price, and any other terms of sale and distribution.
Baxter shall continue to promote Aralast [*]. 
Baxter shall give InterMune prompt written notice upon engaging any [*].  Upon InterMune’s receipt of such notice, the
parties will promptly meet to negotiate in good faith a commercially reasonable
[*]
in the Aralast Detail requirements set forth in Sections 2(c) and 9(e) to
reflect the anticipated impact of [*].

 

(e)                    Baxter may permanently cease the
sale or manufacture of Aralast and terminate this Agreement at any time upon
60-days prior written notice to InterMune, as further set forth in
Section 7(b).

 

2.                                       Sales
Scope, Incentive, Breadth and Frequency.

 

(a)                    Sales Force.  At all times during the term of the
Agreement, InterMune will maintain a direct sales force with [*]
full-time sales representatives [*], who directly call on [*]
(the “Direct Sales Force”).  For
purposes of determining whether InterMune has satisfied its obligation to meet
the [*]
full-time individuals, it shall be entitled to count the percentage of a sales
representative’s time so long as it equals or exceeds [*] of their time.  The total time for all sales representatives
must equal the equivalent of [*] individuals spending [*]
of their time on [*], calling directly on [*]. 
For example, if InterMune has [*] it shall be deemed to meet this
requirement.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

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(b)                   Promotion. During the term of
the Agreement, InterMune shall have the Direct Sales Force promote and detail
Aralast on prescribing pulmonologist sales calls as the [*] presentation (“Aralast
Details”) in accordance with subsection (c) below.  The [*] presentation shall mean a presentation
that [*]
of the time spent on the detail.  During
Aralast Details, InterMune representatives shall deliver Baxter’s quarterly
Plans of Action (to be provided by Baxter pursuant to Section 11).  Attached
as Attachment C is the call sheet to be used for each Aralast Detail.

 

(c)                    Breadth of Coverage.  During the term of the Agreement,
InterMune’s Direct Sales Force must:

 

(i)                                make Aralast Details to
at least [*]
per [*]
(the “Frequency Requirement”); and

 

(ii)                             perform a minimum of [*]
Aralast Details each [*].

 

Up to [*] of such Aralast Details can be made to [*].  On [*], the parties will meet to re-evaluate
the Frequency Requirement to determine whether each pulmonologist should
receive a Aralast Detail [*].

 

(d)                   Sales Threshold. 
InterMune is being engaged by Baxter to provide reach into the community
of pulmonologist physicians with the expectation that InterMune’s regular
detailing of these physicians, as described herein, will result in the
achievement of certain sales targets for Aralast.  Baxter will track Aralast sales on a quarterly basis relative to
these sales targets so that the impact of applying InterMune’s sales force
reach can be measured against expectations. 
If one of the following occurs:

 

(i)                               total Aralast sales in the Territory fail to
achieve the lesser of: (A) [*] of the sales target in calendar [*],
or (B) [*]
for the first calendar [*] of [*]; or

 

(ii)                           total Aralast sales in the Territory fail to
achieve [*]
of the sales targets in either of calendar [*] or [*];

 

then
Baxter may request that the parties re-negotiate the Agreement or terminate the
Agreement upon thirty (30) days written notice, at Baxter’s sole discretion,
unless such failure arises from: (1) Baxter’s failure to supply sufficient
Aralast to meet market demand for any reason, or (2) any material safety or
regulatory issue relating to Aralast. 
The sales targets are total Aralast sales in the Territory for each full
calendar year, respectively:  [*]
in [*],
[*]
in [*]
and [*]
in [*].

 

Provided
that InterMune does not violate the terms of the non-competition requirements
set forth in Section 10, the foregoing is Baxter’s sole and exclusive
remedy for any failure to meet the sales targets.  Baxter will have no right to require renegotiation or termination
of this Agreement if, during the time such sales targets were in effect, Baxter
or any Baxter Affiliate sells, markets or otherwise promotes any Competing
Product (as defined in Section 10) in the Territory.  As used herein, “Affiliate” means

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

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(a)
any corporation or business entity fifty percent (50%) or more of the voting
stock of which is and continues to be owned directly or indirectly by Baxter;
(b) any corporation or business entity which directly or indirectly owns fifty
percent (50%) or more of the voting stock of Baxter; or (c) any corporation or
business entity under the direct or indirect control of such corporation or
business entity as described in (a) or (b).

 

(e)                    Incentive Program. During
the term of the Agreement, InterMune will provide its Direct Sales Force with a
commission structure where at least:

 

(i)                                approximately [*]
of each representative’s projected possible total compensation is incentive
pay; and

 

(ii)                             at least [*]
of each representative’s projected possible total incentive pay program is
based upon his or her promotional efforts for products [*]; and

 

(iii)                          at least [*] of each representative’s
projected possible total incentive pay program is based upon his or her
promotional efforts for [*].

 

The parties have agreed upon InterMune’s new commission structure that
meets these criteria, which shall become effective no later than [*]
after [*].  InterMune shall promptly notify Baxter of
any changes to this commission structure that do not meet the three criteria
listed above, and if Baxter does not approve the changes to the commission
structure, then Baxter shall have the right to terminate this Agreement upon 30
days prior written notice; provided that InterMune does not establish a new
commission structure meeting such criteria during such 30-day period.

 

3.                                       Training
[*];
Sales Force Communications.

 

(a)                    InterMune.  InterMune shall ensure its Direct Sales
Force is trained within [*] business days of the later of the
Effective Date or initial receipt of Baxter’s training materials.  Thereafter, InterMune will ensure its Direct
Sales Force attends Baxter training and receives any updated training materials
at its [*]
annual sales meetings.  InterMune will [*]
each Direct Sales Force representative using [*] after attending training
and will provide Baxter with the [*]. 
Representatives must [*] or higher on such [*].  InterMune will [*] each representative [*]
and representatives [*] below [*] will be required to [*].  InterMune will take sole responsibility for
the ongoing training of its sales force and new hires throughout the year.  InterMune shall provide training [*]
to any new hires to the Direct Sales Force within [*] after hire.

 

(b)                   Baxter.

 

(i)                                Baxter
will provide the training materials [*] to be used for training the Direct
Sales Force within the [*] business days of the Effective
Date.  Baxter shall provide additional
training at [*] (to be scheduled no later than the [*]).  Baxter will provided updated training
materials as needed.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

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(ii)                             Baxter
will [*]
for the documented costs of [*] of its [*], based on the assumption
that [*]
days out of the scheduled [*] day meeting will be devoted to
Aralast.  Such costs will include [*].

 

(iii)                          Baxter
will ensure that any Aralast promotional or training materials (or other
material written information pertinent to Aralast) that Baxter provides to its
own Aralast sales force will be provided to InterMune within a reasonable
period of time.

 

4.                                       Compliance
with Laws.

 

(a)                    During the term of this Agreement,
each party shall in all material respects conform its practices and procedures
relating to the manufacture, sale, distribution, marketing, detailing and
promotion of Aralast in the Territory to all applicable laws, rules,
regulations and guidelines, including, without limitation, all applicable
provisions of the Food, Drug and Cosmetic Act, current Good Manufacturing
Practices, the Prescription Drug Marketing Act, the Federal Health Care
Programs Anti-Kickback Law, 42 U.S.C. 1320a-7b(b), the Office of the Inspector
General (“OIG”) Final Compliance Program Guidance for Pharmaceutical
Manufacturers, the Pharmaceutical Research and Manufacturers of America Code on
Interactions with Healthcare Professionals and/or the Advanced Medical
Technology Association Code of Ethics on Interactions with Healthcare
Professionals, the Accreditation Council for Continuing Medical Education
Standards for Commercial Support and the American Medical Association (“AMA”)
Guidelines on Gifts to Physicians from Industry, as the same may be amended
from time to time.

 

(b)                   Each of Baxter and InterMune shall
promptly notify the other party of and provide such party with a copy of any
material adverse correspondence or other material adverse reports with respect
to the Aralast Details or the manufacture, use, sale, distribution or promotion
of Aralast, respectively, that is received from the U.S. Department of Health
and Human Services or its components (including the FDA and the OIG) or any
foreign counterparts, or the AMA relating to such laws, rules, regulations and
guidelines. Further, InterMune shall inform Baxter of any material
correspondence it receives from a healthcare provider, competitor or any other
party relating to promotional practices used to detail Aralast.

 

(c)                    During the term of the Agreement,
InterMune will advertise, promote and market Aralast and promote the goodwill
of Baxter in a manner consistent with all applicable FDA requirements.  InterMune shall conduct its activities
relative to the marketing of Aralast in a professional manner and in accordance
with the Baxter’s Sales & Marketing practices (a copy of which is attached
as Attachment D hereto), as it may be amended from time-to-time, and in
accordance with the terms of this Agreement. 
No such amendment will be effective with respect to InterMune until [*]
following [*].

 

(d)                   During the term of the Agreement, InterMune shall inform Baxter BioScience North
America Customer Service (800) 423-2090 of any adverse events or any other 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

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significant
allegation of deficiencies related to the identity, integrity, quality,
durability, reliability, safety, effectiveness or performance (Product
Complaints) regarding Aralast. 
InterMune shall comply in all respects with Baxter’s Product Complaints:
Receiving and Reporting Guide (a copy of which is attached as Attachment E
hereto), as it may be amended from time-to-time.  No such amendment will be effective with respect to InterMune
until [*] following [*].  Baxter shall
provide reasonable quantities of this guide to InterMune to assist InterMune staff in the reporting of product
complaints.

 

5.                                       Promotional
Materials.

 

(a)                    During the term of the Agreement,
Baxter shall provide in a timely manner reasonable quantities of all necessary
and available Aralast promotional materials that may be reasonably requested by
InterMune in connection with the training of InterMune’s Direct Sales Force and
its promotion of Aralast.  Baxter shall
own all right, title and interest in and to such promotional materials,
including all copyrights appurtenant thereto. Baxter hereby grants to InterMune
the right, during the term of this Agreement, to use, display, transmit and
reproduce the promotional materials in connection with InterMune’s promotion
and detailing of Aralast.

 

(b)                   Baxter [*] with respect to the form
and content of the promotional materials, [*], solicit input from InterMune.  Baxter acknowledges that all such materials
must be approved by InterMune’s Promotional Review Committee and Compliance
Committee prior to InterMune’s use of such promotional materials to ensure they
do not violate its regulatory guidelines. 
In no event shall InterMune have any right to [*] any promotional materials
for Aralast or otherwise participate in the [*] of the promotional
materials.

 

6.                                       Term.  Unless otherwise terminated as herein
provided, the term of this Agreement shall commence on the Effective Date and
shall expire on December 31, 2006. 
Thereafter, Baxter shall pay the Trailing Commission set forth in
Section 9(c) below.

 

7.                                       Termination.

 

(a)                    Either
party may terminate this Agreement upon 30-days prior written notice in the
event of a material breach of this Agreement by the other party that is not
cured by the breaching party to the non-breaching party’s reasonable
satisfaction within such 30-day period. In
the event that Baxter terminates this Agreement for InterMune’s uncured
material breach prior to December 31, 2006, Baxter shall have no
obligation to pay the Trailing Commission.

 

(b)                   Baxter may terminate this Agreement if
InterMune fails to meet the requirements for the Direct Sales Force set forth
in Section 2(a); or fails to provide the commission structure set forth in
Section 2(e) and, in each case, such failure is not cured within 30-days
prior written notice.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

6

 

(c)                    Baxter may terminate this Agreement pursuant
to Section 2(d) if InterMune fails to achieve the sales thresholds, or
pursuant to Section 9(e) if InterMune fails to achieve the required level
or frequency of Aralast Details.

 

(d)                   Baxter may terminate this Agreement upon
60-days prior written notice if it decides to Permanently Cease the
manufacture and sale of Aralast.  Such notice will state the effective date of
termination and Baxter shall incur no further obligation for the
Trailing Commission or otherwise after the effective date of termination.  As used herein, “Permanently Cease” means
that neither Baxter nor any Baxter Affiliate will thereafter manufacture or
sell Aralast in the Territory.

 

(e)                    InterMune may terminate this Agreement: (i)
upon 60-days prior written notice if it materially strategically alters the
nature of the business and no longer employs any Direct Sales Force that
details or calls on pulmonologists, or (ii) upon 30-days prior written notice
if Baxter is unable to supply Aralast and a material shortfall continues for
more than sixty consecutive days.  In
such case, Baxter will incur no further obligation for the Trailing Commission
or otherwise after the effective date of termination.

 

(f)                      The
following provisions shall survive termination of this Agreement:  Sections 8, 9(c), 9(d), 10, 12(b), 13(b) and
16 through 32, inclusive.  Termination
of this Agreement shall not relieve either party of any liability or obligation
which accrued hereunder prior to the effective date of such termination, nor
preclude either party from pursuing all rights and remedies it may have
hereunder or at law or in equity with respect to any breach of this Agreement,
nor prejudice either party’s right to obtain performance of any obligation.

 

8.                                       Transition
to Baxter Sales Force.  After the
expiration of this Agreement, InterMune shall cooperate reasonably with Baxter
in returning all Aralast related materials. 
Thereafter, InterMune shall continue to reasonably assist and advise
Baxter in the promotion of Aralast for so long as Baxter is paying the trailing
commission.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

7

 

9.                                       Commission to InterMune.

 

(a)                    Commission
Base. Baxter shall pay InterMune a tiered commission on total sales
achieved. The commission shall be calculated based on the Net Sales.  “Net Sales” means, as to each calendar
quarter, the gross invoiced sales prices charged for all Aralast sold by
Baxter, its Affiliates and their respective licensees in arm’s length
transactions to third parties during such quarter, after deduction of the
following items paid by Baxter, its Affiliates and their respective licensees during
such calendar quarter with respect to sales of Aralast, regardless of the
calendar quarter in which such sales were made:

 

(i)                                trade
and quantity discounts or rebates actually taken, allowed, or estimated,
including discounts or rebates to governmental or managed care organizations;

 

(ii)                             credits
or allowances given, made, or estimated for rejection or ordinary return of
previously sold Aralast (but excluding any returns due to a recall);

 

(iii)                          any tax,
duty or government charge (including any tax such as a value added or similar
tax or government charge other than an income tax) levied on the sale,
transportation or delivery of Aralast and borne by the seller thereof without
reimbursement from any third party; and

 

(iv)                         any
charges for freight from the seller, or for insurance, borne by the seller, to
the extent actually billed to the customer.

 

Notwithstanding the foregoing, no deduction shall be made for [*].

 

(b)                   Commission Rates.

 

(i)                                The
commission rate through [*] (based on sales booked for the full
calendar [*])
shall be:

 

[*]

 

In any event, total commissions for [*]
shall not exceed [*].

 

(ii)                             The
commission rate for sales booked in calendar [*] shall be:

 

[*]

 

In any event, total commissions for [*]
shall not exceed [*].

 

(iii)                          The
commission rate for calendar [*] shall be:

 

[*]

 

In any event, total commissions for [*] shall not exceed [*].

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

8

 

(c)                                  Trailing
Commissions.  At the expiration of
the Agreement, Baxter shall pay InterMune a trailing commission (“Trailing
Commission”) [*] of:

 

[*]

 

In any event, the Trailing Commission in [*] shall not exceed [*].  [*],  there
shall be no further [*] payment obligation thereafter amongst
and between the parties.

 

If this Agreement is terminated early as a result of Baxter’s material
breach under Section 7(a) or is otherwise terminated early by Baxter for
any reason other than Permanently Ceasing to sell and manufacture Aralast under
Section 7(d), then Baxter shall be obligated to pay such Trailing
Commission [*] for [*], at the [*] set forth above [*],
following the date of early termination. 
The foregoing shall be InterMune’s sole and exclusive remedy in the
event of such termination or breach.

 

(d)                                 Timing of
Commission Payments and Reports.

 

(i)                                     During the term of
the Agreement, InterMune shall provide Baxter with the reports and tracking
data as set forth in Section 12(a). 
Baxter shall pay the commissions described in subsection (b) above
for each [*]
within [*]
of the end of each quarter, or if later, within [*] after the receipt of
InterMune’s reports.  Baxter shall
provide to InterMune contemporaneously the reports described in
Section 12(b).  The first
commission payments and reports under this Agreement shall not be due until the
end of the second quarter, June 30, 2004, and shall reflect the
commissions due on the first two calendar quarters of 2004.

 

(ii)                                  Following the term of
the Agreement, Baxter shall pay the commissions described in
subsection (c) above for each [*] within [*] of the end of [*],
and shall provide to InterMune contemporaneously the reports described in
Section 12(b).

 

(iii)                               Baxter shall remit all
payments under this Section by wire transfer to a bank account to be
designated in writing by InterMune.

 

(e)                    Commission
Reduction.

 

(i)                                InterMune
must perform a minimum of [*] Aralast Details per quarter, to at
least [*]
per year, in accordance with the Frequency Requirement, in order to earn the
full commission.  In the event InterMune
fails to achieve these objectives, its commissions shall be reduced or
terminated as set forth below.  The
difference between the actual number of Aralast Details performed, [*]
visited and frequency of Aralast Details and the requirements set forth above
shall be considered the “shortfall” or “overage,” as applicable.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

9

 

(1)                                       In
the event InterMune fails to achieve these objectives and the shortfall is [*]
or less, then total commissions payable shall be reduced by the greater of [*]
or [*].

 

(2)                                       In
the event InterMune fails to achieve these objectives and the shortfall is more
than [*]
but less than [*], then total commissions payable shall be reduced by the
greater of [*] or [*].

 

(3)                                       In
the event InterMune fails to achieve these objectives and the shortfall is more
than [*],
then [*]
shall be paid for [*].

 

(4)                                       In
the event that InterMune fails to achieve these objectives and there is any
shortfall of more than [*] for more than for [*] calendar [*],
Baxter may terminate this Agreement by 30-days prior written notice.

 

Provided
that InterMune does not violate the terms of the non-competition requirements
set forth in Section 10, the foregoing are Baxter’s sole and exclusive
remedies with respect to any shortfall.

 

(ii)                             Notwithstanding
the foregoing, no shortfall will be deemed to have occurred if, during the
immediately preceding or succeeding [*] falling within the same calendar year,
the overage offsets the shortfall for the current [*].  InterMune shall not be permitted to take
into account any “overage “taking place in a quarter that does not take place
in the same calendar year as the shortfall.

 

(iii)                          Notwithstanding
the foregoing, no shortfall will be deemed to have occurred to the extent
attributable to Baxter’s failure to
supply sufficient Aralast to meet market demand for any reason or other
material breach of Baxter’s obligations hereunder.

 

10.                                 Non-compete.  InterMune shall not sell,
market or otherwise promote in the Territory a [*] other than Aralast, or
any other product that is approved by the FDA for the treatment of [*]
(a “Competing Product”), during the term of this Agreement and (i) during any
period for which Baxter is obligated to pay the Trailing Commission; or (ii) in
the event of any termination of this Agreement other than (A) Baxter’s
termination of this Agreement pursuant to Section 7(d), or (B) InterMune’s
termination of this Agreement pursuant to Section 7(a) for Baxter’s
failure to pay commissions as set forth in Section 9 or to provide
promotional materials as set forth in Section 5(a), for a period of [*]
after the date of such termination. InterMune will have no obligations under
this Section 10 if Baxter or any Baxter Affiliate [*] any Competing Product in
the Territory.

 

11.                                 Marketing.

 

(a)                    Generally.  Baxter will prepare and deliver the Aralast
Quarterly Plans of Action to be used during Aralast Details.  Both parties’ sales representatives will
meet periodically to discuss marketing territories and marketing coverage in
those territories.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

10

 

(b)                   JMT.  Baxter and InterMune shall form a joint
marketing team (“JMT”) for the marketing of Aralast.  The JMT shall be comprised of six representatives, three for each
party. The JMT shall meet at least [*] each [*] and at least [*]
meetings each [*] shall be attended in person, and shall alternate between
Baxter’s and InterMune’s facilities unless otherwise agreed in writing.  Each party shall pay their own costs for
attending each meeting.  [*]
shall chair the JMT and will have the [*] of all decisions made by the JMT.  However, [*] shall not be obligated to
use any [*]
or otherwise engage in activities approved by the JMT to the extent it
determines such decisions do not comply with applicable law. The JMT shall be
responsible for, among other things, coordinating the promotional efforts
of both the parties’ sales forces, the form and timing of reporting Aralast
Details and sales, developing training materials for the sales forces and
developing tactical plans for promotional materials.

 

12.                                 Reports.

 

(a)                    InterMune.

 

(i)                                InterMune shall provide Baxter with [*] reports summarizing the reported
promotional activities of its Direct Sales Force during such month, which
reports will include the data fields in Attachment C, within [*]. 
The form of these reports may be revised and modified subject to
InterMune’s written agreement.

 

(ii)                             InterMune shall provide Baxter with [*] reports summarizing its promotional
activities for [*] to include the
data fields in Attachment F, within [*].  The form of these reports may be revised and
modified subject to InterMune’s written agreement.

 

(iii)                          InterMune shall also provide Baxter with a
roster of the [*] of the
representatives on the Direct Sales Force and promptly report any changes to this roster.

 

(b)                   Baxter. Baxter shall provide, on a monthly basis, reports on total Aralast Net
Sales in the Territory broken down into [*]
and [*] from its [*] providers.  [*] will include a
breakdown of sales by [*] and
direct sales data will include a breakdown of sales by [*].

 

13.                                 Right
to Audit.

 

(a)                    Compliance Audits.  Each party will have the right to audit the
other party to ensure that such other party is materially compliant with the
terms and conditions of the Agreement, including, without limitation,
Section 4.  Such audit will be
conducted by an internal or external
specialist selected by the auditing party and reasonably acceptable to the
other party.  Such audits may be made no
more than [*] each calendar [*], at reasonable times mutually agreed by
InterMune and Baxter.  Such expert shall
hold all information discovered as part of the audit confidential, and only
report to the auditing party such information as is necessary for the auditing
party to ascertain the other party’s material compliance with this Agreement.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

11

 

(b)                   Financial Audits.  The parties shall maintain the records used
to calculate compliance with all obligations under this Agreement, including
all commissions payable under Section 9 and all records which support the
calculation of each component of the equation for Net Sales.  Such records shall be maintained for at
least [*] years following the end
of the calendar year to which they pertain. 
Such records will be open for audit during by an independent certified
public accountant selected by a party and reasonably acceptable to the other
party for the purpose of verifying the other party’s compliance with their
obligations hereunder, including InterMune’s commissions and Baxter’s Net Sales
calculations.  Such audits may be made
no more than [*] each calendar [*], at reasonable times mutually agreed by
InterMune and Baxter.  The party
requesting the audit shall bear the costs and expenses of audits conducted
under this subsection (b) unless a variation or error producing an
underpayment in commissions payable or underperformance of obligations
exceeding [*] for the time period
inspected is established in the course of any such audit, whereupon all costs
relating to the audit and any unpaid amounts that are discovered will be paid
promptly by the other party, together with interest on such unpaid amounts
equal to the lesser of prime rate [*]
per year, or the maximum rate permitted by law.

 

14.                                 Sales
and Distribution; Recalls and Other Field Corrective Actions.  Baxter shall have the sole right and
obligation to take such actions with respect to Aralast[*] as would normally be done in accordance
with accepted business practices and legal requirements to maintain the
authorization and/or ability to market Aralast in the Territory, including,
without limitation, the following:

 

(a)                    manufacturing
and distributing Aralast in the Territory;

 

(b)                   booking sales
and distribution of Aralast hereunder and performance of related services;

 

(c)                    handling all
aspects of order processing, invoicing and collection, inventory and receivables;

 

(d)                   providing
customer support, including handling medical queries, and performing other
functions consistent with customary practice for prescription pharmaceuticals;

 

(e)                    responding to
Aralast complaints;

 

(f)                      handling all
Aralast returns;

 

(g)                   handling all
voluntary recalls and market withdrawals of Aralast;

 

(h)                   communicating
with any governmental agencies and satisfying their requirements regarding
regulatory approvals of Aralast in the Territory including, but not limited to,
BLA approval, labeling approval, promotional materials approval, product and/or
establishment licenses, registrations or authorizations of any federal, state
or local regulatory agency, department bureau or other governmental entity;

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

12

 

(i)                       reporting
adverse reaction reports to regulatory authorities as required by applicable
law or regulation; and

 

(j)                       negotiating
any and all agreements with providers, managed care organizations, payers,
wholesalers, group purchasing organizations, and the like, regarding Aralast.

 

15.                                 Representations
and Warranties.

 

(a)                    The parties
represent and warrant to each other that they are not a party to any agreement
that would prevent it from fulfilling its obligations under this Agreement.

 

(b)                   Baxter represents
to InterMune that:

 

(i)                                Baxter
has the right to grant to InterMune the rights and licenses set forth herein,
including without limitation the right to [*] in each case in accordance with this
Agreement.

 

(ii)                             InterMune’s
[*]
in each case in accordance with this Agreement, will not infringe any
proprietary right of any third party.

 

(iii)                          Baxter
represents to InterMune that Baxter believes that it has an appropriate and
effective [*]
that meets [*] to address any [*] under Section [*] of this Agreement.

 

(iv)                         [*]

 

(c)                    InterMune
represents to Baxter that InterMune believes that it has an appropriate and
effective [*]
that meets [*] to address any [*] under Section [*] of this Agreement.

 

16.                                 Relationship
of the Parties.  In fulfilling its
obligations under this Agreement, each party is acting as an independent
contractor.  Except as contemplated
under this Agreement, it does not have the right to, and will not at any time
hereafter without the other party’s prior written consent, transact any
business in the name of such other party or obligate it in any manner,
character or description.  Absent its
prior written consent, a party shall not, under any circumstances, be liable
for any agreement, contract, representation or warranty which the other party
has made or may enter into or make. 
This Agreement does not establish or create a partnership or joint
venture among the parties.

 

17.                                 Confidentiality.

 

(a)                    In the course
of this Agreement, it is anticipated that each party (the “Recipient”) will
learn of information that the other party (the “Disclosing Party”) regards as
confidential or proprietary, including, but not limited to, information
relating to the Disclosing Party’s business, products, plans, technical
know-how, processes, sales representatives, customers, suppliers, pricing
programs and strategies (“Confidential Information”).  The Recipient will keep confidential the Disclosing Party’s
Confidential Information, unless and until the Disclosing Party consents in
writing to such disclosure.  The

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

13

 

Recipient will take all reasonable
precautions, including adequate procedures and discipline, to safeguard the
confidential nature of such information. 
The Recipient shall not disclose any Confidential Information to others,
except for the purposes of this Agreement under an obligation of
confidentiality at least equivalent to those set forth herein.

 

(b)                   The Recipient’s
obligation hereunder to protect the Disclosing Party’s Confidential Information
shall not apply if the information:

 

(i)                                is
already in the Recipient’s possession, provided that such information is not
subject to the confidentiality provisions of any other agreement between the
Recipient and the Disclosing Party, or

 

(ii)                             is
information developed, generated, compiled or stored by the Recipient without
reference to the Disclosing Party’s Confidential Information, or

 

(iii)                          was
independently developed, as evidenced by written records, by a party without
reference to the other party’s Confidential Information, or

 

(iv)                         becomes
generally available to the public other than as a result of a disclosure by the
Recipient or its representatives in violation of this Agreement, or

 

(v)                            becomes
available to the Recipient on a non-confidential basis from a source other than
the Disclosing Party or its representatives, provided that such source is not
known to the Recipient to be bound by obligations of confidentiality with the
Disclosing Party, or

 

(vi)                         is
required to be disclosed by law.

 

(c)                    The terms of
this Agreement will be deemed both parties’ Confidential Information.

 

(d)                   The Recipient’s
undertaking to protect the Disclosing Party’s Confidential Information will
survive any expiration or termination of this Agreement for [*]
years.

 

18.                                 Protection
of Employees.

 

(a)                    The parties
acknowledge that information provided hereunder regarding their respective
employees is confidential and proprietary information, and that the other
party’s unauthorized use thereof would cause irreparable harm.

 

(b)                   The parties
agree that during the [*] and for [*] thereafter, neither party
will directly or indirectly, (through any Affiliate, agent, representative or
partner or otherwise) solicit or hire any individual who, [*], had been an employee of
the other party that was [*] the Direct Sales Force, selling Aralast
or otherwise [*] this Agreement, nor encourage any such employee to leave
the other party, except with such party’s prior written consent.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

14

 

19.                                 Publicity.
Neither party shall make any public announcement concerning this Agreement
without the prior written consent of the other party (which will not be
unreasonably withheld or delayed), unless counsel to such party advises that
such announcement or statement may be required by law (including applicable
stock exchange rule).  In the case of an
announcement required by law, the other party shall be advised in advance and
both parties shall use good faith efforts to cause a mutually agreeable
announcement to be issued in a timely basis.

 

20.                                 Force
Majeure.  The parties shall not be
liable for failure or delay in fulfilling its obligations under this Agreement
where such failure or delay is due, in whole or in part, causes beyond its
reasonable control, including without limitation shortage of supply, manufacturing
problems, war, civil commotion, labor strike or lock-out, utility shortage or
curtailment, intervention of any governmental authority or acts of regulatory
agencies (except due to such party’s failure to comply with applicable law),
fires, floods, earthquakes, acts of God or terrorist acts.

 

21.                                 Notices.  Wherever notice is required or permitted
hereunder, it shall be by personal delivery, first class mail, overnight
delivery service, or sent by facsimile transmission, with electronic
confirmation, properly directed to the party at its address and contact
information listed below.  Said address
and contact information may be changed from time to time by similar written
notice.

 

	
  If to InterMune:

  	
   

  	
  If to Baxter:

  
	
   

  	
   

  	
   

  
	
  InterMune, Inc.

  	
   

  	
  Baxter Healthcare Corporation

  
	
  3280 Bayshore Blvd.

  	
   

  	
  One Baxter Parkway

  
	
  Brisbane, CA

  	
   

  	
  Deerfield, Illinois 60015-4633

  
	
  94005

  	
   

  	
  Attention:  General Counsel

  
	
  Attention: Executive Vice President

  	
   

  	
  Phone:  (847) 948-2600

  
	
  Commercial Operations

  	
   

  	
  Fax:   [*]

  
	
  Phone:  (415) 466-2200

  	
   

  	
   

  
	
  Fax : [*]

  	
   

  	
  With a copy to:

  
	
  Copy to:  General Counsel

  	
   

  	
   

  
	
  Phone:  (415) 466-2200

  	
   

  	
  Baxter Healthcare Corporation

  
	
  Fax : [*]

  	
   

  	
  BioScience Business Unit

  
	
   

  	
   

  	
  One Baxter Way

  
	
   

  	
   

  	
  Westlake Village, California 91362

  
	
   

  	
   

  	
  Attention: 
  Vice President of Global Marketing

  
	
   

  	
   

  	
  Phone:  (805) 372-3620

  
	
   

  	
   

  	
  Fax:  [*]

  

 

22.                                 Indemnification;
Limitation of Liability.

 

(a)                    Subject to
subsection (c) below, Baxter shall indemnify, defend and hold InterMune
and its Affiliates and their respective directors, officers, agents and
employees harmless from any and all claims, liabilities, damages and causes of
action arising

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

15

 

(collectively, “Liabilities”) to the extent
arising from or in any way connected with (i) a claim or lawsuit by a third
party which alleges injury, harm, damage, loss, expense or other liability [*];
(ii) [*]
by Baxter, its Affiliates or any [*] or (iii) any breach of this Agreement
by Baxter. This indemnity shall not apply to the extent such claims,
liabilities and causes of action are caused by the fault, breach of contract or
tort (including negligence and strict liability) of InterMune.

 

(b)                   Subject to
subsection (c) below, InterMune shall indemnify, defend and hold Baxter,
and its Affiliates and their respective directors, officers, agents and
employees, harmless from and against any Liabilities arising from or in any way
connected with any [*] by InterMune or breach of this
Agreement by InterMune.  This indemnity
shall not apply to the extent such claims, liabilities and causes of action are
caused by the fault, breach of contract or tort (including negligence and
strict liability) of Baxter, its Affiliates or any [*].

 

(c)                    A party (the
“Indemnitee”) which intends to claim indemnification under this
Section shall promptly notify the other party (the “Indemnitor”) in
writing of any action, claim or other matter in respect of which the Indemnitee
or any of its directors, officers, employees or agents, intend to claim such
indemnification; provided, however, the failure to provide such notice within a
reasonable period of time shall not relieve the Indemnitor of any of its
obligations hereunder except to the extent the Indemnitor is prejudiced by such
failure or delay.

 

The Indemnitee shall permit, and shall cause its directors, officers, employees
and agents to permit, the Indemnitor at its discretion to settle any such
action, claim or other matter, and the Indemnitee agrees to the complete
control of such defense or settlement by the Indemnitor.  Notwithstanding the foregoing, the Indemnitor
shall not enter into any settlement that would adversely affect the
Indemnitee’s rights hereunder, nor impose any obligations on the Indemnitee in
addition to those set forth herein in order for it to exercise such rights,
without Indemnitee’s prior written consent, which shall not be unreasonably
withheld or delayed.  No such action,
claim or other matter shall be settled without the prior written consent of the
Indemnitor, which shall not be unreasonably withheld or delayed.

 

The Indemnitor shall not be responsible for any attorneys’ fees or
other costs incurred other than as provided herein.  The Indemnitee and its directors, officers, employees and agents
shall cooperate fully with the Indemnitor and its legal representatives in the
investigation and defense of any action, claim or other matter covered by the
indemnification obligations of this Section. 
The Indemnitee shall have the right, but not the obligation, to be
represented in such defense by counsel of its own selection and at its own
expense.

 

23.                                 Severability.  The intention of the parties is to comply
fully with all laws and public policies, and this Agreement shall be construed
consistently with all laws and public policies to the extent possible.  If and to the extent that any court determines
that it is impossible to construe any provision of this Agreement consistently
with any law or public policy and consequently holds that 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

16

 

provision to be invalid, such provision will be amended so to preserve,
to the extent possible, the parties’ original intent, or if it cannot be so
amended, such provision shall be struck. 
Such holding shall in no way affect the validity of the other provisions
of this Agreement, which shall remain in full force and effect.

 

24.                                 Waiver.   No failure or omission by either party to
insist upon or enforce any of the terms of this Agreement shall be deemed a
waiver of such terms.  Any waiver must
be in writing, signed by an authorized representative of the party to be
charged, in order to be effective.  No
waiver will be effective against any further breach.

 

25.                                 Choice
of Law; Venue.  This Agreement shall
be governed by and construed in accordance with the domestic laws of the State
of [*],
without giving effect to any choice or conflict of law provisions thereof.  For any legal action arising from or related
to this Agreement, the parties hereby: (i) consent and submit solely to
jurisdiction and venue of the state and federal courts located in [*];
(ii) agree that such courts shall be the sole courts utilized; and (iii) hereby
waive any jurisdictional or venue objections to such courts, including without
limitation, forum non conveniens.

 

26.                                 Assignment.  Neither party may assign or transfer this
Agreement or any rights or obligations hereunder without the prior written
consent of the other, except that a party may make such an assignment without
the other party’s consent to a permitted successor-in-interest to substantially
all of the business assets of such party to which this Agreement relates,
whether in a merger, sale of stock, sale of assets or other transaction.  This Agreement is not assignable to [*]
that sells, markets or manufactures [*]. 
Any permitted successor or assignee of rights and/or obligations
hereunder shall, in a writing to the other party, expressly assume performance
of such rights and/or obligations.  Any
permitted assignment shall be binding on the successors of the assigning
party.  Any assignment or attempted
assignment by either party in violation of the terms of this Section shall
be null and void and of no legal effect. 
This Agreement shall be binding upon and shall inure to the benefit of
each party’s successors-in-interest and permitted assigns.

 

27.                                 Headings.  The article and section headings
appearing herein are included solely for convenience of reference and are not
intended to affect the interpretation of any provision of this Agreement.

 

28.                                 Days.                 All references
herein to “days” mean calendar days, unless specifically stated otherwise.

 

29.                                 Remedies
Cumulative.  Unless specifically and
expressly provided otherwise, the remedies provided under this Agreement are
cumulative, and are not exclusive of other remedies available to a party in law
or equity.

 

30.                                 Complete
Agreement.  This Agreement constitutes
the entire agreement between the parties hereto, and cancels and supersedes any
and all previous agreements between the parties with respect to the subject
matter hereof.  All modifications or
amendments hereto must be in writing and signed by all parties.  No renewal, termination or cancellation of
this Agreement, or modification or waiver of any of the provisions herein
contained, or any future representation, promise or condition in connection
with the subject matter hereof, shall be binding upon either party unless it is
made in 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

17

 

writing.

 

31.                                 Counterparts.  This Agreement may be executed in
counterparts with the same force and effect as if each of the signatories had
executed the same instrument.

 

32.                                 Ambiguities.  Ambiguities, if any, in this Agreement shall
not be construed against either party, regardless of which party is deemed to
have drafted the provision at issue.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives:

 

	
  Baxter Healthcare Corporation

  	
  InterMune, Inc.

  
	
   

  	
   

  
	
  By: 

  	
    /s/ Ron Lloyd 

  	
   

  	
  By: 

  	
     /s/ Roger Hawley

  	
   

  
	
   

  	
   

  
	
  Name:

  	
      Ron Lloyd 

  	
   

  	
  Name:

  	
  Roger Hawley

  
	
   

  	
   

  	
   

  
	
  Title: 

  	
    VP – Global Marketing

  	
   

  	
  Title:

  	
  Executive Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
  Commercial Operations

  
	
   

  	
   

  
	
  Date: 

  	
    April 5, 2004

  	
   

  	
  Date:

  	
    March 26, 2004

  	
   

  
										

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

18

 

ATTACHMENT
A – ARALAST TRADEMARKS

 

[*]

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

19

 

ATTACHMENT B – ARALAST TRADEMARK GUIDELINES

 

[*]

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

20

 

ATTACHMENT C – CALL REPORT
DETAILS

 

[*]

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

21

 

ATTACHMENT D – BAXTER SALES & MARKETING PRACTICES

 

[Attached]

 

[*]

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

22

 

ATTACHMENT E – PRODUCT COMPLAINTS: RECEIVING AND REPORTING GUIDE

 

[Attached]

 

[*]

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

23

 

ATTACHMENT F – [*] COMPLIANCE
REPORT

 

[*]

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

 

24Exhibit 10.64

 

 

September 18, 2003

By Federal Express

 

Monika Henninger, Ph.D.

Customer Relations & Projects

Boehringer Ingelheim Austria, GmbH

Dr. Boehringer-Gasse 5-11

A-1121 Vienna

Austria

 

Re:                             Amendment
No. 2 to Data Transfer, Clinical Trial And Market Supply Agreement January 27,
2000

 

Dear Dr. Henninger;

 

As you know, InterMune, Inc. (“InterMune”)
and Boehringer Ingelheim Austria GmbH (“BI Austria”) are parties to that
certain Data Transfer, Clinical Trial And Market Supply Agreement effective
January 27, 2000, as amended June 19, 2002 (the “Agreement”).   The parties hereby agree to amend the
Agreement as set forth below, effective as of the date of this letter.  Any capitalized term used in this letter and
not otherwise defined will have the same meaning as set forth in the Agreement.

 

1.               Section
3.1.1 of the Agreement is hereby replaced and superseded in its entirety by the
following:

 

“3.1.1      [*]
BBS or PRODUCT for the treatment or prevention of any human disease or
condition, except for the treatment or prevention of any type of cardiac or
cardiovascular disease or condition.[*]
BBS or PRODUCT for the treatment of any human disease or condition, except for
the treatment or prevention of any type of cardiac or cardiovascular condition [*] all of InterMune’s clinical
trial supply, and from the time BI Austria and BI Pharma KG are approved by the
HEALTH AUTHORITIES, also [*] for the term of
this Agreement, subject to Section 3.7.”

 

2.               Section
[*] of the Agreement (which was
added by the June 19, 2002 amendment to the Agreement) is hereby replaced and
superseded in its entirety by the following:

 

“InterMune
grants BI Austria a [*] for the
manufacture for clinical and commercial supply of any  [*]  as follows: 
If InterMune pursues the development of any [*] 
to the stage of development where it requires [*], then prior to [*] manufacture such [*] 
for InterMune, InterMune shall notify BI Austria in writing.  If BI Austria responds in writing within [*] after any such notice from
InterMune that BI Austria [*] the terms upon
which BI Austria would be willing to manufacture and supply exclusively to
InterMune, and InterMune would be willing to purchase from BI Austria,
quantities of such product as clinical and commercial supply, then the Parties
shall negotiate in good faith such terms for a period of [*].  If the Parties do not reach agreement and execute a written 

 

CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

agreement
setting forth such terms during such time period, then InterMune shall have no
further obligation to BI Austria with respect to the manufacture and supply of
such [*]”

 

Except as set forth above, all terms and
conditions of the Agreement will remain in full force and effect.

 

Please acknowledge your agreement to the
above by having both enclosed copies of this letter by authorized BI Austria
representatives where indicated below, and returning one original to the
attention of Gloria Lopez, Contracts Administrator, at InterMune.  We would be happy to proceed based on
receipt of a facsimile copy while awaiting the original.

 

Sincerely,

 

 

Peter Van Vlasselaer, Ph.D.

Senior Vice President of Technical Operations

 

Acknowledged and Agreed:

 

Boehringer
Ingelheim Austria, GmbH

 

	
  By:

  	
      /s/ R. Kurt Konopiizwy

  	
   

  
	
   

  	
   

  
	
  Name:

  	
      R. Kurt Konopiizwy

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   Head Operations

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   25.9.2003

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/ 
  M. Henninger

  	
   

  
	
   

  	
   

  
	
  Name:

  	
      Monika Henninger, Ph.D.

  	
   

  
	
   

  	
   

  
	
  Title:

  	
    Customer Relations & Projects

  	
   

  
	
   

  	
   

  
	
  Date:

  	
    23.Sept.03

  	
   

  
						

 

CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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