Document:

EXHIBIT 10.77

 

[InterMune Letterhead]

 

October 15, 2004

 

Norman Halleen

337 S. Fremont Street #407

San Mateo, CA 
94401

(650) 685-6281

 

Re: 
Employment with InterMune, Inc.

 

Dear Norman:

 

On behalf of InterMune,
Inc., I am pleased to extend to you this official offer of employment with
InterMune as Senior Vice President, Finance and Chief Financial Officer,
reporting to Dan Welch, President and Chief Executive Officer, beginning on
October 25, 2004.

 

Your employment is
subject 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 $22,916.66 per
month (equivalent to $275,000.00 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.

 

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 the Company’s senior management and Board of Directors.

 

You also will be eligible
to participate in the Company’s Equity Incentive Plan.  Following commencement of employment, the
grant of an option to purchase up to 90,000 shares of Common Stock under
InterMune’s Equity Incentive Plan will be recommended to the Company’s Board of
Directors on your behalf.  All option
grants are subject to approval by the Compensation Committee of the InterMune
Board of Directors.  The options will
vest over a four-year period beginning the first date of your employment.  The option exercise price will be the NASDAQ
closing price of InterMune common stock on the last business day before you
begin your InterMune employment.  The
exercise of any options will be subject to the terms of your stock option
agreement and the equity incentive plan.

 

 

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 long-term disability plan; a
Flexible Spending Account plan; a group Life Insurance and AD&D plan; a
401(k) savings 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.

 

Other Terms and Conditions of
Employment

 

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.  Any such agreement must be in writing and
signed by both you and the Chief Executive Officer of InterMune to be
effective.

 

We believe that your employment with InterMune
requires a significant commitment. 
Employment with any other entity, or for yourself in competition with
InterMune, is not permitted.

 

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. 
Similarly, you agree to act in accordance with any valid non-disclosure
agreements to which you may be subject. 
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.

 

2

 

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 to leave his or her employment with
InterMune in order to begin employment or a consulting or independent
contractor relationship with any company or business in actual or potential competition
with InterMune.

 

Severance Pay in the Event of
Termination (Not for Cause). 
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 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), and six (6) months immediate acceleration of
vesting of each of your outstanding equity grants, whether stock options or
restricted shares;

 

•        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), 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), 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.

 

3

 

Compensation upon Change in Control.  In the event of a Change in Control of the
Company that results in: (i) your terminations 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 fifty (50) miles from the
Company’s Home Office 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).  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,
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.

 

(c)           Transition Management Services:
you will receive executive transition management services for a one-year period
with Lee Hecht Harrison, Right Management, or a similar transition management
firm, up to a cap of Forty Thousand Dollars ($40,000).

 

 

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.

 

4

 

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.

 

The terms described in this letter replace all prior
agreements, understandings, and promises between InterMune and you 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.  This
offer remains open through end of the day on October 22, 2004.

 

Norman, 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/ Howard Simon

  	
   

  
	
   

  	
  By: 

  	
  Howard Simon

  	
   

  
	
   

  	
   

  	
  Sr. Vice President, Human Resources &

  
	
   

  	
   

  	
  Assoc. General Counsel

  
				

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Norman Halleen

  	
   

  	
   

  
	
  Norman Halleen

  	
   

  
	
   

  	
   

  
	
  10/19/04  /
  October 25, 2004

  	
   

  
	
   

  	
   

  
	
  Date

  	
  Start Date

  	
   

  
				

 

5bp -- x1-53768 -- Trimfast Group, Inc. -- Exhibit 10.1

Exhibit 10.1

LETTER OF INTENT

TrimFast Group, Inc. This letter is intended to summarize the principal terms of a proposed transaction between TrimFast Group., Inc. ("TrimFast") and Saenz Group LLC. 13553 Poway Road. # 185 Poway CA. 92064. Subject to its terms and when fully executed, on or before November 5,2004 it shall become a NON-binding for parties. 

Concurrently with the closing of this transaction, TrimFast will acquire unspecified percentage of all or part of assets and designated liabilities of Saenz Group LLC. and in exchange for cash and TrimFast common stock (the "Shares") which will be issued to Saenz Group LLC.) The shares to be received by Saenz Group LLC. will be subject to Rule 144 of the Securities Act of 1933, as amended.

1. ACCESS

During the period from the date this letter is signed by Saenz Group LLC. (the "Signing Date") until the date on which either Party provides the other Party with written notice that negotiations toward a Definitive Agreement are terminated (the "Termination Date"), Saenz Group LLC. will afford TrimFast full and free access to properties, contracts, books and records, and all other documents and data. Deemed necessary. 

2. CONFIDENTIALITY

Except as and to the extent required by law, each party will not disclose or use, and will direct its representatives not to disclose or use to the detriment of Saenz Group LLC. TrimFast any Confidential information (as defined below) furnished by either party, or their authorized respective representatives at any time or in any manner other than in Connection with their evaluation of the transaction proposed in this letter. For purposes of this Paragraph, "Confidential information" includes, but is not limited to confidential information regarding either party and the work papers, concepts, formulas, techniques, strategies, components, programs, reports, studies, memoranda, correspondence, materials, manuals, records, data, technology, products, plans, research, service, design information, procedures, methods, documentation, policies, pricing, billing, customer lists and leads, and any other technical data, information and know-how which relate to Saenz Group LLC. or TrimFast or are otherwise useful in Saenz Group LLC. business, and which either party considers proprietary and desires to maintain confidential. The parties hereto Acknowledge that each considers the confidential information to be proprietary, confidential and valuable, and the Confidential Information consists of trade secrets entitled to the fullest protection available by law, and the confidential information has taken each party's respective employees and agents a substantial amount of time to research, assemble and formulate. "Confidential Materials" shall mean all tangible materials containing Confidential Information, including without limitation written or printed documents and computer disks or tapes, whether machine readable or user readable. Each party recognizes the proprietary rights of the other in and to the confidential information and the confidential nature of the confidential information and agrees to safeguard and treat the Confidential Information as confidential the same as it would treat any other trade secret.

3. DISCLOSURES

Except as and to the extent required by law, without the prior written consent of the other Party, neither TrimFast nor Saenz Group LLC. will, and each will direct its representatives not to make, directly or indirectly, any public comment, statement, or communication with respect to, or otherwise to disclose or to permit the disclosure of the existence of discussions regarding, a possible transaction between the Parties or any of the terms, conditions, or other aspects of the transaction proposed in this letter. If a Party is required by law to make any such disclosure, it must first provide to the other Party the content of the proposed disclosure, the reasons that such disclosure is required by law, and the time and place that the disclosure will be made.

4. COSTS

Each party will be responsible for and bear all of its own costs and expenses (including any broker's or finder's fees and the expenses of its representatives) incurred at any time in connection with pursuing or consummating the Possible Acquisition.

5. CONSENTS

During the period from the Signing Date until the earlier of the Termination Date or the execution of a Definitive Agreement, TrimFast and Saenz Group LLC. will cooperate with each other and proceed, as promptly as is reasonably practical, to prepare and to file the notifications and to obtain all consents of third parties necessary in order to consummate the Possible Acquisition, if necessary.

6. ENTIRE AGREEMENT

The NON-Binding Provisions constitute the entire agreement between the parties, and supersede all prior oral or written agreements, understandings, representations and warranties, and courses of conduct and dealing between the parties on the subject matter hereof Except as otherwise provided herein, the NON-Binding Provisions may be amended or modified only by a writing executed by all of the parties.

This Agreement may be terminated by TrimFast or Saenz Group LLC. if either party are unable to provide requested information or their ongoing due diligence proves unsatisfactory. 

7. GOVERNING LAW

The Non-Binding Provisions will be governed by and construed under the laws of the State of Florida without regard to conflicts by laws principles.

8. COUNTERPARTS

This Letter may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Letter and all of which, when taken together, will be deemed to constitute one and the same agreement.

If you are in agreement with the foregoing, please sign and return one copy of this letter agreement, which thereupon will constitute our agreement with respect to its subject matter.

Very truly yours,

Agreed and Accepted: 

By: 

TrimFast Group, Inc. 

/s/ KENNETH HILOWITZ            

President

Saenz Group LLC.

/s/ ALEX AJSAEN                   

November 5, 2004

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