Document:

Exhibit 10.59

 

InterMune, Inc.

 

	
  TO:

  	
   

  	
  Larry Blatt

  
	
  FROM:

  	
   

  	
  Stephen N. Rosenfield

  
	
  RE:

  	
   

  	
  Bonus Plan

  
	
  DATE:

  	
   

  	
  May 22, 2002

  

 

Set forth below is your bonus plan from InterMune, Inc. (the “Company”)
for the calendar years 2003-2007 (the “Bonus Plan”).

 

1.             Annual Bonus:

 

You are eligible to earn an annual bonus for calendar years
2003-2007.  Each annual bonus shall be a
minimum of 24.7159% of your starting salary of $232,500.  Any percentage above the minimum annual
bonus shall be determined in the Company’s sole and absolute discretion.  Each bonus will be paid before June 30
of the applicable year.  In addition to
the bonus payments, you will also receive an additional payment to cover one
half of the income taxes resulting from any bonus payment (the “Gross-Up Payment”),
which shall be paid within thirty (30) days of any bonus payment.  You must be employed by the Company at the
time the bonus is payable in order to earn and receive the annual bonus and
Gross-Up payments.

 

2.             At-Will Employment

 

You understand that this Bonus Plan does not constitute a guarantee of
continued employment with the Company, and that your employment relationship
with the Company is at-will.  As such,
either you or the Company may terminate your employment at any time and for any
reason, either with or without cause or advance notice.  In addition, the Company retains the right
to modify your compensation and benefits, other than this Bonus Plan, within
its sole discretion, upon notice to you.

 

Agreed and Accepted:

 

	
  /s/ 
  Larry Blatt

  	
   

  	
  Date:

  	
  May 23, 2002

  	
   

  
	
  Print Name: Larry Blatt

  	
   

  	
   

  

 

1Exhibit 10.60

 

PROMISSORY NOTE

 

	
  $250,000

  	
   

  	
  May 22,
  2002

  
	
   

  	
   

  	
  Brisbane,
  California

  

 

For Value Received, Lawrence M. Blatt
(“Borrower”)
an employee of Intermune,
Inc., a Delaware
corporation (“Lender”), hereby unconditionally promises to pay to the
order of Lender, in lawful money of the United States of America and in
immediately available funds, the principal amount of Two Hundred Fifty Thousand
Dollars ($250,000) together with interest accrued and unpaid, if any (“Loan”).

 

It is the intent of the parties that the
purpose of this Secured Promissory Note (“Note”)
is not for consumer, family or household purposes.

 

1.              PRINCIPAL REPAYMENT.  The outstanding principal balance of the
Loan shall be subject to scheduled amortized repayments on the dates and in the
amounts listed below; provided, however,
the outstanding principal balance of the Loan plus all accrued but unpaid
interest and other charges hereunder shall be due and payable in full upon the
earlier to occur of any of the following: 
(a) that date which is five (5) years from the date of this Note;
(b) fifteen (15) days after either the resignation by Borrower of his
employment with Lender or the termination of his employment for any or no
reason whatsoever, including the death of Borrower; or (c) any sale or
transfer of all or any portion of the Property (as defined in Section 5)
(any of the events described in clauses (a) through (c) shall be the “Maturity
Date”).  Notwithstanding anything to the contrary
contained herein, Borrower shall have the right to prepay all or any part of
the unpaid principal amount of this Note, together with accrued and unpaid
interest thereon, without penalty or premium at any time prior to the Maturity
Date.

 

	
  Repayment
  Date

  	
   

  	
  Repayment Amount

  	
   

  
	
  May 30, 2003

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  May 30, 2004

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  May 30, 2005

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  May 30, 2006

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  May 30, 2007

  	
   

  	
  $

  	
  50,000

  	
   

  

 

2.              INTEREST RATE.  Borrower further promises to pay
interest on the outstanding principal amount hereof from the date hereof until
payment in full, which interest shall be payable at a fixed rate of four and
sixty-five hundredths percent (4.65%) per annum (the “Interest Rate”) and
calculated on the basis of a 365-day year for the actual number of days
elapsed.  Accrued and unpaid interest
shall be due and payable on each of the Repayment Dates set forth in Section 1
above.

 

3.              DEFAULT INTEREST.  If any amount payable hereunder shall
not be paid when due, at the option of Lender and in lieu of the interest
payable under Section 2 above, the unpaid principal balance shall immediately
begin to accrue interest at a rate equal
to the Interest Rate plus one percent (1.0%) per annum.

 

4.              APPLICATION OF
PAYMENTS.  Payment on this Note shall be applied first
to accrued interest, and thereafter to the outstanding principal balance
hereof.  Any payment due hereunder shall
be paid to Lender at 3280

 

1

 

Bayshore Boulevard, Brisbane,
California  94005, Attn: Controller, or
at such other place as Lender may designate. 
Any amount payable hereunder will be due and payable without set-off,
deduction, or counter-claim.

 

5.              SECURITY.  [Intentionally omitted.]

 

6.              DEFAULT AND
REMEDIES.

 

(a)                                  Default.  Each of the following events shall be an “Event of
Default” hereunder: (i) Borrower fails to pay timely any of the
principal amount due under this Note on the date the same becomes due and
payable or any accrued interest or other amounts due under this Note on the
date the same becomes due and payable; (ii) the breach by Borrower of any other
covenant or agreement under this Note; (iii) the default by Borrower of his
obligations under the Deed of Trust or any other instrument evidencing or
securing this Note; (iv) the default by Borrower of his obligations under any
mortgage, deed of trust, encumbrance or lien respecting the Property, which
encumbrance is senior to the Deed of Trust; (v) the appointment of a receiver
for any part of the Property of, or an assignment for the benefit of creditors
by, or the commencement of any proceedings under any bankruptcy or insolvency
laws by or against Borrower; or (vi) the transfer, directly or indirectly, of
all or any part of the Property, whether by sale, lease, assignment, mortgage
or otherwise, voluntarily or involuntarily.

 

(b)                                  Remedies.  Upon the occurrence of an Event of Default
hereunder, all unpaid principal, accrued interest and other amounts owing
hereunder shall, at the option of Lender, and, in the case of an Event of
Default pursuant to Section 6(a)(v)
above, automatically, be immediately due, payable and collectible by Lender
pursuant to applicable law.  Lender
shall have all rights and may exercise any remedies available to it under the
Deed of Trust, at law, or in equity, successively or concurrently.

 

(c)                                  Right of Set-off.  Upon the occurrence of an Event of Default
under Section 6, Lender is hereby authorized to set off and apply any and all
payments by way of payroll deduction, if necessary (whether for compensation,
bonus arrangements, expense reimbursement, vacation, commission payment or
otherwise) at any time held and other obligations at any time owing by Lender
to or for the account of Borrower against any principal and/or interest due
hereunder.

 

7.              NOTICE.  All notices or other
communications required or given hereunder shall be in writing and shall be
deemed effectively given when presented personally or on the date of receipt
(or refusal of delivery) if sent by courier service or U.S. mail (certified or
registered, postage prepaid, return receipt requested) to the parties at the addresses
given below or such other addresses as the parties may hereafter designate in
writing.  The date shown on the
courier’s confirmation of delivery or return receipt shall be conclusive as to
the date of receipt.

 

	
  Borrower:

  	
   

  	
  Lawrence Blatt

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lender:

  	
   

  	
  InterMune, Inc.

  
	
   

  	
   

  	
  3280 Bayshore Boulevard

  
	
   

  	
   

  	
  Brisbane, California  94005

  
	
   

  	
   

  	
  Attn: 
  General Counsel

  

 

8.              MAXIMUM LEGAL RATE
OF INTEREST.  All
agreements between Borrower and Lender, whether now existing or hereafter
arising, are hereby limited so that in no event shall the interest charged
hereunder or agreed to be paid to Lender exceed the maximum amount permissible
under applicable law.  Lender shall be
entitled to amortize, prorate and spread throughout the full term of this Note
all interest paid or payable so that the interest paid does not exceed the
maximum amount permitted by law.  If
Lender ever receives interest or anything deemed interest in excess of the
maximum lawful amount, an amount equal to the excessive interest shall be
applied to the reduction of the principal, and if it exceeds the unpaid balance
of principal hereof, such excess shall be refunded to Borrower.  If interest otherwise payable to Lender
would exceed the maximum lawful amount, the interest payable shall be

 

2

 

reduced to the maximum amount
permitted under applicable law.  This
section shall control all agreements between Borrower and Lender in connection
with the indebtedness evidenced hereby.

 

9.              WAIVER.  Borrower waives diligence,
presentment, protest and demand and also notice of protest, demand, dishonor,
acceleration, intent to accelerate, and nonpayment of this Note, and shall pay
all costs of collection when incurred, including, without limitation,
reasonable attorneys’ fees, costs and other expenses.  The right to plead any and all statutes of limitations as a
defense to any demands hereunder is hereby waived to the full extent permitted
by law.

 

10.       MISCELLANEOUS.

 

(a)                                  Borrower
shall pay all costs, including, without limitation, reasonable attorneys’ fees
and expenses incurred by Lender in collecting the sums due hereunder or in
connection with the release of any security for this Note.

 

(b)                                  This
Note may be modified only by a written agreement executed by Borrower and
Lender.

 

(c)                                  The
terms of this Note shall inure to the benefit of and bind Borrower and Lender
and their respective heirs, legal representatives and successors and assigns.

 

(d)                                  Time
is of the essence with respect to all matters set forth in this Note.

 

(e)                                  If
this Note is destroyed, lost or stolen, Borrower will deliver a new note to
Lender on the same terms and conditions as this Note with a notation of the
unpaid principal in substitution of the prior Note.  Lender shall furnish to Borrower reasonable evidence that the
Note was destroyed, lost or stolen and any security or indemnity that may be
reasonably required by Borrower in connection with the replacement of this
Note.

 

(f)                                    If
any provision of this Note shall be held to be invalid or unenforceable, such
determination shall not affect the remaining provisions of this Note.

 

(g)                                 If
this Note is now, or hereinafter shall be, signed by more than one party or
person, it shall be the joint and several obligation of such parties or persons
and shall be binding upon such parties and upon their respective successors and
assigns.

 

11.       GOVERNING LAW.  This Note shall be governed by, and construed and enforced in
accordance with, the laws of the State of California, excluding conflict of
laws principles that would cause the application of laws of any other
jurisdiction.

 

12.       JURISDICTION AND VENUE.  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 San Francisco
County, California, (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.

 

IN WITNESS WHEREOF, Borrower has executed this Secured Promissory Note as
of the date and year first above written.

 

 

	
   

  	
   

  	
  Borrower:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Lawrence Blatt

  	
   

  
	
   

  	
   

  	
  LAWRENCE BLATT

  

 

3

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