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.

 

[*] CERTAIN INFORMATION IN THIS
EXHIBIT HAS BEEN OMITTED AND FILED SEPERATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS

 

1

 

(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 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; [*]  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 and
[*] prompt written notice upon [*] receipt of such notice, the parties will
promptly meet to negotiate in good faith a commercially reasonable [*] set
forth in Sections [*]

 

(e)                    [*]
at any time upon 60-days prior written notice to [*] as further set forth in
Section [*]

 

2.             Sales Scope, [*]

 

(a)                    Sales
Force.  At all times during the term
of the Agreement, InterMune will maintain a direct sales force [*] (the “Direct
Sales Force”).  For purposes of
determining whether InterMune has satisfied its obligation to meet the [*] it
shall be entitled to [*] so long as it equals or exceeds [*] must equal the
equivalent of [*]  For example, if
InterMune has [*] it shall be deemed to meet this requirement.

 

2

 

(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 [*]
(“Aralast Details”) in accordance with subsection (c) below.  The [*] 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)                    [*]  During the term of the Agreement,
InterMune’s Direct Sales Force must:

 

(i)                                [*];
and

 

(ii)                             [*]

 

Up to [*] the
parties will meet to re-evaluate the [*]

 

(d)                   [*] 
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 [*] so that the
[*]  If one of the following occurs:

 

(i)                               [*]; or

 

(ii)                           [*];

 

[*] upon thirty (30) days
written notice, at [*] for any reason, or (2) any [*] relating to Aralast.  [*]

 

Provided that [*]
requirements set forth in Section [*] will have no right to [*] if, during the
time such [*] (as defined
in Section [*] in the Territory.  As
used herein, “Affiliate” means (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)                    [*]
During the term of the Agreement, [*] where at least:

 

(i)                                approximately
[*] and

 

(ii)                             at
least [*]; and

 

(iii)                          at
least [*]

 

3

 

The parties
have agreed upon [*] no later than 30 days after the Effective Date.  InterMune shall promptly notify Baxter of
any [*] the three criteria listed above, and if [*] upon 30 days prior written
notice; provided that [*]

 

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 [*] InterMune will
[*] and will provide Baxter with the [*] 
InterMune will [*] 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 sixty [*] after hire.

 

(b)                   Baxter.

 

(i)                                Baxter
will provide the training materials and [*] to be used for training the Direct
Sales Force within the [*] business days of the Effective Date.  Baxter shall provide [*]  Baxter will provided updated training
materials as needed.

 

(ii)                             Baxter
will [*] based on the assumption that [*]

 

(iii)                          Baxter
will ensure that [*] 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

 

4

 

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. [*]

 

(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 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.  [*]  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)                   [*]
with respect to the [*] of the promotional materials, but [*] that all such
materials must be [*] use of such promotional materials to ensure [*]  In no event shall [*] 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.  [*]

 

7.             Termination.

 

(a)                    Either party
may terminate this Agreement upon [*]-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 [*]day period. In the event that
[*]

 

5

 

(b)                   [*] may terminate this Agreement if [*] fails
to meet the requirements for the [*]; or fails to provide the [*] and, in each
case, such failure is not cured within [*]days prior written notice.

 

(c)                    [*] may terminate this Agreement pursuant to
Section [*], or pursuant to Section [*]

 

(d)                   [*] may terminate this Agreement upon [*]days
prior written notice if [*]  Such
notice will state the [*] the
effective date of termination.  As used
herein, [*] in the Territory.

 

(e)                    [*] may terminate this Agreement: (i) upon
[*]days prior written notice if [*], or (ii) upon [*]days prior written notice
if [*]  In such case, [*] the effective
date of termination.

 

(f)                      The
following provisions shall survive termination of this Agreement:  Sections [*]  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 [*]

 

6

 

9.             [*] to InterMune.

 

(a)                    [*]
Baxter shall pay InterMune a [*] shall be calculated based on the [*] as to
each [*] of the following [*] regardless of the [*]

 

(i)                                [*];

 

(ii)                             [*];

 

(iii)                          [*];
and

 

(iv)                         [*]

 

Notwithstanding
the foregoing, [*]

 

(b)                   [*]

 

(i)                                [*]
shall be:

 

[*]

 

In any event, [*]

 

(ii)                             [*]
shall be:

 

[*]

 

In any event, [*]

 

(iii)                          [*]
shall be:

 

[*]

 

In any event, [*]

 

(c)                                  [*]
of the Agreement, [*]

 

In any event,
the [*]  there shall be [*] amongst
and between the parties.

 

[*] or is
otherwise [*] shall be obligated to [*] 
The foregoing shall be [*]

 

7

 

(d)                                 Timing
of [*] 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 [*] described in subsection (b) above for each [*]  Baxter shall provide to InterMune contemporaneously
the reports described in Section 12(b). 
The first [*] payments and reports under this Agreement shall [*]

 

(ii)                                  Following
the [*] described in subsection [*] and shall provide to [*] described in
Section [*]

 

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

 

(e)                    [*]

 

(i)                                [*]
in accordance with the [*]  In the event
[*] as set forth below.  The [*] the
requirements set forth above shall be considered [*] as applicable.

 

(1)                                       In
the event [*]

 

(2)                                       In
the event [*]

 

(3)                                       In
the event [*]

 

(4)                                       In
the event that [*]

 

Provided that [*]

 

(ii)                             Notwithstanding
the foregoing, [*] shall not be permitted to [*]

 

(iii)                          Notwithstanding
the foregoing, [*] for any reason or
other [*]

 

10.           [*] in the Territory  [*] during
the term of this Agreement and (i) [*] or (ii) in the event of any [*] pursuant
to Section [*] or (B) [*] pursuant to Section [*] as set forth in Section [*]
as set forth in Section [*] will have no obligations under this Section 10 if
[*] 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.

 

(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
year shall be [*] unless otherwise agreed in writing.  Each party shall pay their own costs for attending each
meeting.  [*]

 

8

 

shall
not be obligated to [*] 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 [*] 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 [*] 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 [*]

 

(b)                   Baxter. Baxter shall provide, on a monthly basis, reports on [*] broken down
into [*] will include a [*] will include a [*]

 

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
[*] 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.

 

(b)                   Financial Audits.  The
parties shall maintain the records used to calculate compliance with all
obligations under this Agreement, including all [*] payable under Section 9 and
all records which support the calculation of each component of the [*]  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 [*]  Such audits may be made [*] 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 [*] payable or underperformance of obligations exceeding [*]
for the time period inspected is established in the course of any such

 

9

 

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 plus [*] 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;

 

(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:

 

10

 

(i)                                [*]
including without limitation the [*] in each case in accordance with this
Agreement.

 

(ii)                             [*]
in each case in accordance with this Agreement, [*]

 

(iii)                          [*] of this Agreement.

 

(iv)                         [*]

 

(c)                    InterMune represents to Baxter that
[*] 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 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

 

11

 

(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 [*] neither party will directly or indirectly, (through any
Affiliate, agent, representative or partner or otherwise) solicit or hire any
individual who, [*] nor encourage any such employee to leave the other party,
except with such party’s prior written consent.

 

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.

 

12

 

	
  If to
  InterMune:

  	
   

  	
  If to Baxter:

  
	
   

  	
   

  	
   

  
	
  InterMune,
  Inc.

  3280 Bayshore Blvd.

  Brisbane, CA

  94005

  Attention: Executive Vice President

  Commercial Operations

  Phone: (415)
  466-2200

  Fax : (415) 466-2300

  Copy to: General Counsel

  Phone: (415) 466-2200

  Fax : (415) 508-0006

  	
   

  	
  Baxter
  Healthcare Corporation

  One Baxter Parkway

  Deerfield, Illinois 60015-4633

  Attention: General Counsel

  Phone:(847) 948-2600

  Fax:(847) 948-2450

  

  With a copy to:

  

  Baxter Healthcare Corporation

  BioScience Business Unit

  One Baxter Way

  Westlake Village, California 91362

  Attention: Vice President of Global

  Marketing

  Phone: (805)
  372-3620

  Fax: (805) 372-3622

  

 

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 (collectively, “Liabilities”) to the extent arising from or in any way
connected with [*] 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 [*]  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.

 

13

 

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
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.  [*] 
Any permitted successor or assignee of

 

14

 

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 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

  	
   

  
									

 

15

 

ATTACHMENT A – ARALAST
TRADEMARKS

 

[*]

 

16

 

ATTACHMENT B – ARALAST
TRADEMARK GUIDELINES

 

[*]

 

17

 

ATTACHMENT
C – CALL REPORT DETAILS

 

[*]

 

18

 

 

 

19

 

ATTACHMENT D – BAXTER SALES
& MARKETING PRACTICES

 

[*]

 

20

 

ATTACHMENT E – PRODUCT
COMPLAINTS: RECEIVING AND REPORTING GUIDE

 

[*]

 

21

 

 ATTACHMENT F – [*] COMPLIANCE REPORT

 

[*]

 

22Exhibit 10.75

 

April 2, 2004

 

VIA PERSONAL DELIVERY

 

Peter Van
Vlasselaer

108 Crescent

Portola Valley, CA
94028

 

Re:          Consulting
Agreement

 

Dear Peter:

 

This letter
agreement sets forth the substance of the consulting arrangement (the
“Agreement”) that INTERMUNE, INC.
(the “Company”) is offering to you in connection with your resignation.

 

1.             Separation.  Your last day of employment with the Company
will be May 31, 2004 (the “Separation Date”).

 

2.             Accrued
Salary and Paid Time Off. 
On the Separation Date, the Company will pay you all accrued salary, and
all accrued and unused vacation earned through the Separation Date, subject to
standard payroll deductions and withholdings. 
You are entitled to these payments regardless of whether or not you sign
this Agreement.

 

3.             Severance Benefits.  Under your offer letter with the
Company, dated October 22, 1999 (the “Offer Letter”), in the event of the
termination of your employment other than for cause, you are entitled to
receive continuation of salary for three (3) months following your termination
date.  In further consideration of the
terms of this Agreement, the Company has decided to extend this benefit by
continuing your 2003 base salary for a total of one (1) year (including the
three (3) months referenced in the previous sentence) after the Separation
Date.  Thus, the Company will pay you a
total severance amount equal to Two Hundred Fifteen Thousand Dollars ($215,000), less
standard withholdings (the ”Severance”).  This Severance will be paid in 24 equal semi-monthly
payments over the one-year period, starting on the Company’s first
regularly-scheduled pay date following the Separation Date.

 

4.             Health
Insurance.  In further
consideration of the terms of this Agreement, after the Separation Date, the
Company will pay the premiums necessary to continue your current health, dental
and vision insurance coverage through
the earlier of (a)  May
31, 2005, or (b) your employment start date with another employer that
provides group health insurance. 
You agree that within two days of the date that you become employed with
any third party that provides such health insurance coverage, you shall send a
written notice and make a telephonic communication to Company’s General Counsel
of such employment.  The benefits
continuation

 

 

set forth in this Section 4 includes the three (3) months of benefits
continuation provided in your Offer Letter. 
To the extent provided by the federal COBRA law or, if applicable, state
insurance laws, and by the Company’s current group health insurance policies,
to the extent that you are not employed by a third party at the termination of
the benefits continuation under this Section 4, you will be eligible to
continue your group health insurance benefits at your own expense.  Later, you may be able to convert to an
individual policy through the provider of the Company’s health insurance, if
you wish.

 

5.             Consulting.  In
partial consideration for the Severance described above, from June 1, 2004,
through and until November 30, 2004 (the ”Consulting Period”), you agree
to assist and provide technical operations services to the Company reporting
directly and only to the Chief Executive Officer of the Company (“CEO”), as
requested by the CEO, for eight (8) to ten (10) hours (not including travel time)
per month.  You will also be reimbursed
reasonable out-of-pocket expenses paid by you in performance of your services
for the Company, provided that
such expenses are incurred, documented and submitted in accordance with the
Company’s standard expense reimbursement policy (i.e., you will be entitled to reimbursement for
expenses if such expenses are permitted under and submitted pursuant to the
Company’s standard reimbursement policy for employees).  You
agree to perform the services in a timely and professional manner consistent
with industry standards, and at a location, place and time that you deem
appropriate.  The Company will make its
facilities and equipment available to you when necessary.  During the Consulting Period, you will be
retained by the Company as an independent contractor and not as an employee of
the Company or in any other capacity. 
You will be solely responsible for all tax returns and payments required
to be filed with or made to any federal, state or local tax authority with
respect to your performance of services under this Section 5, and you agree to
indemnify and defend the Company against any and all such taxes and
contributions, including without limitation penalties and interest.  The Company represents that its
comprehensive general liability insurance policy applies to your consulting
assistance and that you shall not be responsible to pay any deductible or
retention amount under such insurance policy. 
Throughout the Consulting Period and thereafter, you will remain free to
pursue and engage in any and all legally permissible activities, including,
without limitation, other consulting opportunities and employment; provided, however, you may not render any
services as an employee, consultant or otherwise to any individual or entity
that breach any of the other obligations (to the extent applicable to you)
otherwise set forth in the Proprietary Information and Inventions Agreement
described in Section 10 hereof.

 

6.             Stock Options.  You were granted options to purchase shares
of the Company’s common stock, pursuant to the governing Stock Option
Agreements, the Company’s 1999 Equity Incentive Plan and the Company’s 2000
Equity Incentive Plan (collectively, the “Plan Documents”). As of the
Separation Date, and under the terms of the Plan Documents, Fifty Four Thousand
Nine Hundred Ninety-Six (54,996) of your unexercised options will have vested
and the Company’s unvested share repurchase option will have lapsed with
respect to One Hundred Forty-Four Thousand (144,000) of your early-exercised
options granted on October 12, 1999.  In
further consideration of the terms of this Agreement, on the Separation Date,
the Company will allow (a) an additional Twenty Thousand Two (20,002) option
shares to immediately vest in full (i.e.,
acceleration of an additional 12 months of vesting), and (b) the unvested share
repurchase option with respect to the remaining 16,000 of the October 12, 1999
early-exercised options to immediately lapse in full.  Please see Exhibit B hereto
for a summary of these options.  The

 

2

 

option acceleration and lapse of repurchase option set forth in this
Section 6 are provided in lieu of the three (3) months of continued vesting
provided in your Offer Letter.  All
vesting of your options will cease on the Separation Date.  Any and all of your unexercised and vested
options must be exercised by 5:00 p.m. on May 31, 2005, and any options that
are not exercised by 5:00 p.m. on the May 31, 2005 shall expire and
terminate.  You acknowledge that any
options exercised after the Separation Date may lose “incentive stock option”
status under Internal Revenue Code and agree to consult your tax advisor
concerning the status of such options.

 

7.             Other Compensation or Benefits.  You acknowledge that, except as expressly
provided in this Agreement, you will not receive any additional compensation,
severance or benefits after the Separation Date.

 

8.             Expense
Reimbursements.  By
the Separation Date, you will have submitted your final documented expense
reimbursement statement reflecting all business expenses you incurred through
the Separation Date, if any, for which you seek reimbursement.  The Company will reimburse you for these
expenses pursuant to its regular business practice.

 

9.             Return
of Company Property. 
By the Separation Date, you agree to return to the Company all Company
documents (and all copies thereof) and other Company property that you have had
in your possession at any time, including, but not limited to, Company files, notes,
drawings, records, business plans and forecasts, financial information,
specifications, computer-recorded information, tangible property (including,
but not limited to, computers), credit cards, entry cards, identification
badges and keys; and, any materials of any kind that contain or embody any
proprietary or confidential information of the Company (and all reproductions
thereof).

 

10.          Proprietary
Information Obligations. 
During and after your employment and your consulting relationship with
the Company, you acknowledge and will abide by all of your continuing
obligations under your Proprietary Information and Inventions Agreement,
including your obligation not to use or disclose any confidential or
proprietary information of the Company without prior written authorization from
a duly authorized representative of the Company.  A copy of your Proprietary Information and Inventions Agreement
is attached hereto as Exhibit A.

 

11.          Confidentiality.  The provisions of this Agreement will be
held in strictest confidence by you and the Company and will not be publicized
or disclosed in any manner whatsoever; provided, however, that:  (a) you may disclose this Agreement in
confidence to your immediate family; (b) the parties may disclose this
Agreement in confidence to their respective attorneys, accountants, auditors,
tax preparers and financial advisors; (c) the Company may disclose this
Agreement as necessary to fulfill standard or legally required corporate
reporting or disclosure requirements; and (d) the parties may disclose this
Agreement insofar as such disclosure may be necessary to enforce its terms or
as otherwise required by law.  In
particular, and without limitation, you agree not to disclose the terms of this
Agreement to any current or former Company employee.

 

12.          Nondisparagement.  You agree not to disparage the Company or
its officers, directors, employees, stockholders and agents, in any manner
likely to be harmful to them or their business, business reputation, or
personal reputation.  The Company
(through its officers

 

3

 

and directors) agrees not to disparage you in any manner likely to be
harmful to your business reputation, or personal reputation.  Notwithstanding the foregoing, it shall not
violate the provisions of this Section 12 for you or the Company to respond
accurately and fully to any question, inquiry, or request for information when
required by legal process.

 

13.          Cooperation.  You agree to assist the Company in every
proper way with any pending or threatened litigation in which you may have
factual knowledge relevant to the matter. 
You agree to assist the Company by attending meetings, preparing and
signing affidavits, attending informal interviews, providing deposition or trial
testimony, and other similar acts as requested by the Company.  You acknowledge and agree that you are
expected only to provide truthful and accurate information and testimony in
connection with your obligations as set forth in this Section 13.  You further agree to assist the Company with
any transitional matters relating to the termination of your employment by
making yourself available by telephone as reasonably requested by the Company.

 

14.          Release.

 

(a)           Release
by You.  In exchange for the
benefits you are receiving under the terms of this Agreement to which you would
not otherwise be entitled, you hereby generally and completely release the
Company and its directors, officers, employees, shareholders, partners, agents,
attorneys, predecessors, successors, parent or subsidiary entities, insurers,
affiliates and assigns from any and all claims, liabilities and obligations,
both known and unknown, that arise out of or are in any way related to events,
acts, conduct, or omissions prior to or on the date you sign this
Agreement.  This general release
includes, but is not limited to: (1) all claims arising out of or in any way
related to your employment with the Company or the termination of that
employment, or your consulting arrangement with the Company; (2) all claims
related to your compensation or benefits from the Company, including salary,
bonuses, commissions, vacation pay, expense reimbursements, severance pay,
fringe benefits, stock, stock options or any other ownership interests in the
Company; (3) all claims for breach of contract, wrongful termination or breach
of the implied covenant of good faith and fair dealing; (4) all tort claims,
including claims for fraud, defamation, emotional distress and discharge in
violation of public policy; and (5) all federal, state, and local statutory
claims, including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal Civil Rights Act of
1964 (as amended), the federal Americans with Disabilities Act of 1990, the
federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), or
the California Fair Employment & Housing Act.

 

(b)           Release
by the Company.  In exchange
for the consideration under this Agreement, the Company hereby releases you of and
from any and all claims or potential claims, liabilities and obligations, both
known and unknown, arising out of or in any way related to events, acts,
conduct, or omissions that arose within the course and scope of your
employment, prior to or on the date you sign this Agreement.  Notwithstanding the release in the preceding
sentence, the Company is not waiving its rights to enforce the provisions of
this Agreement.

 

15.          Waiver
Of Unknown Claims.  In giving its release, which includes claims
that may be unknown to a party to this agreement at present, each party
acknowledges that he or it has read and understand Section 1542 of the
California Civil Code which reads as follows: 
“A

 

4

 

general
release does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if known by
him must have materially affected his settlement with the debtor.”  Each party expressly waives and relinquishes
all rights and benefits under that section and any law of any jurisdiction of
similar effect with respect to the party’s release of claims herein, including
but not limited to the party’s release of any unknown or unsuspected claims he
or it may have against the other party.

 

16.          ADEA
Waiver.  You hereby acknowledge that you are
knowingly and voluntarily waiving and releasing any rights you may have under
the ADEA, and that the consideration given for the foregoing waiver is in
addition to anything of value to which you were already entitled.  You have been advised by this writing, as
required by the ADEA that: (a) your waiver and release do not apply to any
claims that may arise after your signing of this Agreement; (b) you should
consult with an attorney prior to executing this release; (c) you have
twenty-one (21) days within which to consider this release (although you may
choose to voluntarily execute this release earlier); (d) you have seven (7)
days following the execution of this release to revoke the Agreement; and (e) this Agreement will not be effective
until the eighth day after this Agreement has been signed both by you and by
the Company (“Effective Date”).

 

17.          Arbitration.  To ensure rapid and economical resolution of
any disputes which may arise under this Agreement (with the sole exception of
disputes involving enforcement of the Proprietary Information and Inventions
Agreement), you and the Company agree that any and all disputes or
controversies of any nature whatsoever, arising from or regarding the
interpretation, performance, enforcement or breach of this Agreement shall be
resolved by confidential, final and binding arbitration (rather than trial by
jury or court or resolution in some other forum).  Any arbitration proceeding pursuant to this Agreement shall be
conducted by Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in San
Francisco, California, under the then-existing JAMS rules.  The prevailing party in such arbitration
proceedings shall be entitled to recover from the other party reasonable
attorneys’ fees, arbitration expenses and other recoverable costs incurred in
connection with such arbitration proceeding. 
Nothing in this Agreement shall prevent either party from seeking to obtain
injunctive relief in court to preserve the status quo or prevent irreparable
harm pending the conclusion of any such arbitration.

 

18.          Miscellaneous.  This Agreement, including Exhibit A, constitutes the complete, final
and exclusive embodiment of the entire agreement between you and the Company
with regard to this subject matter.  By
way of clarification, this Agreement supersedes your Offer Letter and all terms
and conditions thereof.  This Agreement
shall not, however, supercede your Indemnity Agreement with the Company, and
such Indemnity Agreement shall continue in full force and effect pursuant to
the terms and conditions thereof.  This
Agreement is entered into without reliance on any promise or representation,
written or oral, other than those expressly contained herein, and it supersedes
any other such promises, warranties or representations.  This Agreement may not be modified or
amended except in a writing signed by both you and a duly authorized officer of
the Company.  This Agreement will bind
the heirs, personal representatives, successors and assigns of both you and the
Company, and inure to the benefit of both you and the Company, their heirs,
successors and assigns.  If any
provision of this Agreement is determined to be invalid or unenforceable, in
whole or in part, this determination will not affect any other provision of
this Agreement and the provision in question will be modified by the court

 

5

 

so as to be rendered enforceable. 
This Agreement will be deemed to have been entered into and will be
construed and enforced in accordance with the laws of the State of California
as applied to contracts made and to be performed entirely within California.

 

6

 

If this Agreement
is acceptable to you, please sign below and return the originals of both to me.

 

I wish you good
luck in your future endeavors.

 

Sincerely,

 

	
  INTERMUNE, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:  

  	
  /s/ Daniel G.
  Welch

  	
   

  
	
   

  	
  Daniel G. Welch

  	
   

  
	
   

  	
  Chief Executive
  Officer and President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit
  A - Proprietary Information and Inventions Agreement

  
	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    /s/ Peter Van Vlasselaer

  	
   

  
	
   

  	
   

  	
   

  
	
  Peter Van
  Vlasselaer

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 

  	
  4/5/04

  	
   

  
					

 

 

EXHIBIT A

 

PROPRIETARY INFORMATION AND
INVENTIONS AGREEMENT

 

INTERMUNE PHARMACEUTICALS, INC.

 

EMPLOYEE PROPRIETARY INFORMATION

 

AND INVENTIONS AGREEMENT

 

In consideration of my employment or continued employment by INTERMUNE
PHARMACEUTICALS, INC. (the “Company”), and the compensation now and
hereafter paid to me, I hereby agree as follows:

 

1.             NONDISCLOSURE

 

1.1          Recognition of Company’s Rights;
Nondisclosure.  At all
times during my employment and thereafter, I will hold in strictest confidence
and will not disclose, use, lecture upon or publish any of the Company’s
Proprietary Information (defined below), except as such disclosure, use or
publication may be required in connection with my work for the Company, or
unless an officer of the Company expressly authorizes such in writing.  I will obtain Company’s written approval
before publishing or submitting for publication any material (written, verbal,
or otherwise) that relates to my work at Company and/or incorporates any
Proprietary Information.  I hereby
assign to the Company any rights I may have or acquire in such Proprietary Information
and recognize that all Proprietary Information shall be the sole property of
the Company and its assigns.

 

1.2          Proprietary Information.  The term “Proprietary
Information” shall mean any and all confidential and/or proprietary
knowledge, data or information of the Company. 
By way of illustration but not limitation, “Proprietary Information”
includes (a) trade secrets, inventions, mask works, ideas, processes,
formulas, source and object codes, data, programs, other works of authorship,
know-how, improvements, discoveries, developments, designs and techniques
(hereinafter collectively referred to as “Inventions”); and (b) information
regarding plans for research, development, new products, marketing and selling,
business plans, budgets and unpublished financial statements, licenses, prices
and costs, suppliers and customers; and (c) information regarding the skills
and compensation of other employees of the Company.  Notwithstanding the foregoing, it is understood that, at all such
times, I am free to use information which is generally known in the trade or
industry, which is not gained as result of a breach of this Agreement, and my
own, skill, knowledge, know-how and experience to whatever extent and in
whichever way I wish.

 

1.3          Third Party Information.  I understand, in addition, that the Company
has received and in the future will receive from third parties confidential or
proprietary information (“Third Party Information”) subject to a duty
on the Company’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. 
During the term of my employment and thereafter, I will hold Third Party
Information in the strictest confidence and will not disclose to anyone (other
than Company personnel who need to know such information in connection with
their work for the Company) or use, except in connection with my work for the
Company, Third Party Information unless expressly authorized by an officer of
the Company in writing.

 

1.4          No Improper Use of Information of
Prior Employers and Others. 
During my employment by the Company I will not improperly use or
disclose any confidential information or trade secrets, if any, of any former
employer or any other person to whom I have an obligation of confidentiality,
and I will not bring onto the premises of the Company any unpublished documents
or any property belonging to any former employer or any other person to whom I
have an obligation of confidentiality unless consented to in writing by that
former employer or person.  I will use
in the performance of my duties only information which is generally known and
used by persons with training and experience comparable to my own, which is
common knowledge in the industry or otherwise legally in the public domain, or
which is otherwise provided or developed by the Company.

 

2

 

2.             ASSIGNMENT OF INVENTIONS.

 

2.1          Proprietary Rights.  The term “Proprietary Rights” shall
mean all trade secret, patent, copyright, mask work and other intellectual
property rights throughout the world.

 

2.2          Prior Inventions.  Inventions, if any, patented or unpatented,
which I made prior to the commencement of my employment with the Company are
excluded from the scope of this Agreement. 
To preclude any possible uncertainty, I have set forth on Exhibit B
(Previous Inventions) attached hereto a complete list of all
Inventions that I have, alone or jointly with others, conceived, developed or
reduced to practice or caused to be conceived, developed or reduced to practice
prior to the commencement of my employment with the Company, that I consider to
be my property or the property of third parties and that I wish to have
excluded from the scope of this Agreement (collectively referred to as “Prior
Inventions”).  If disclosure
of any such Prior Invention would cause me to violate any prior confidentiality
agreement, I understand that I am not to list such Prior Inventions in Exhibit B
but am only to disclose a cursory name for each such invention, a listing of
the party(ies) to whom it belongs and the fact that full disclosure as to such
inventions has not been made for that reason. A space is provided on Exhibit B
for such purpose.  If no such disclosure
is attached, I represent that there are no Prior Inventions.  If, in the course of my employment with the
Company, I incorporate a Prior Invention into a Company product, process or
machine, the Company is hereby granted and shall have a nonexclusive,
royalty-free, irrevocable, perpetual, worldwide license (with rights to
sublicense through multiple tiers of sublicensees) to make, have made, modify,
use and sell such Prior Invention. 
Notwithstanding the foregoing, I agree that I will not incorporate, or
permit to be incorporated, Prior Inventions in any Company Inventions without
the Company’s prior written consent.

 

2.3          Assignment of Inventions.  Subject to Sections 2.4, and 2.6, I hereby
assign and agree to assign in the future (when any such Inventions or
Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all my right, title and interest in and
to any and all Inventions (and all Proprietary Rights with respect thereto)
whether or not patentable or registrable under copyright or similar statutes,
made or conceived or reduced to practice or learned by me, either alone or
jointly with others, during the period of my employment with the Company.  Inventions assigned to the Company, or to a
third party as directed by the Company pursuant to this Section 2, are
hereinafter referred to as “Company Inventions.”

 

2.4          Nonassignable Inventions.  This Agreement does not apply to an
Invention which qualifies fully as a nonassignable Invention under
Section 2870 of the California Labor Code (hereinafter “Section 2870”).  I have reviewed the notification on Exhibit A
(Limited Exclusion Notification) and agree that my signature acknowledges
receipt of the notification.

 

2.5          Obligation to Keep Company Informed.  During the period of my employment and for
six (6) months after termination of my employment with the Company, I will
promptly disclose to the Company fully and in writing all Inventions authored,
conceived or reduced to practice by me, either alone or jointly with
others.  In addition, I will promptly
disclose to the Company all patent applications filed by me or on my behalf
within a year after termination of employment. 
At the time of each such disclosure, I will advise the Company in
writing of any Inventions that I believe fully qualify for protection under
Section 2870; and I will at that time provide to the Company in writing
all evidence necessary to substantiate that belief.  The Company will keep in confidence and will not use for any
purpose or disclose to third parties without my consent any confidential
information disclosed in writing to the Company pursuant to this Agreement
relating to Inventions that qualify fully for protection under the provisions
of Section 2870.  I will preserve
the confidentiality of any Invention that does not fully qualify for protection
under Section 2870.

 

2.6          Government or Third Party.  I also agree to assign all my right, title
and interest in and to any particular Company Invention to a third party,
including without limitation the United States, as directed by the Company.

 

2.7          Works for Hire.  I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within the
scope of my employment and which are protectable by copyright are “works

 

3

 

made for hire,”
pursuant to United States Copyright Act (17 U.S.C., Section 101).

 

2.8          Enforcement of Proprietary Rights.  I will assist the Company in every proper
way to obtain, and from time to time enforce, United States and foreign
Proprietary Rights relating to Company Inventions in any and all
countries.  To that end I will execute,
verify and deliver such documents and perform such other acts (including
appearances as a witness) as the Company may reasonably request for use in applying
for, obtaining, perfecting, evidencing, sustaining and enforcing such
Proprietary Rights and the assignment thereof. 
In addition, I will execute, verify and deliver assignments of such
Proprietary Rights to the Company or its designee.  My obligation to assist the Company with respect to Proprietary
Rights relating to such Company Inventions in any and all countries shall
continue beyond the termination of my employment, but the Company shall
compensate me at a reasonable rate after my termination for the time actually
spent by me at the Company’s request on such assistance.

 

In the
event the Company is unable for any reason, after reasonable effort, to secure
my signature on any document needed in connection with the actions specified in
the preceding paragraph, I hereby irrevocably designate and appoint the Company
and its duly authorized officers and agents as my agent and attorney in fact,
which appointment is coupled with an interest, to act for and in my behalf to
execute, verify and file any such documents and to do all other lawfully
permitted acts to further the purposes of the preceding paragraph with the same
legal force and effect as if executed by me. 
I hereby waive and quitclaim to the Company any and all claims, of any
nature whatsoever, which I now or may hereafter have for infringement of any
Proprietary Rights assigned hereunder to the Company.

 

3.                      RECORDS.  I agree to keep and maintain adequate and current records (in
the form of notes, sketches, drawings and in any other form that may be
required by the Company) of all Proprietary Information developed by me and all
Inventions made by me during the period of my employment at the Company, which
records shall be available to and remain the sole property of the Company at
all times.

 

4.                      ADDITIONAL ACTIVITIES.  I agree that during the period of my
employment by the Company I will not, without the Company’s express written
consent, engage in any employment or business activity which is competitive
with, or would otherwise conflict with, my employment by the Company.  I agree further that for the period of my
employment by the Company and for one (l) year after the date of termination of
my employment by the Company I will not induce any employee of the Company to
leave the employ of the Company.

 

5.             NO
CONFLICTING OBLIGATION. 
I represent that my performance of all the terms of this Agreement and
as an employee of the Company does not and will not breach any agreement to
keep in confidence information acquired by me in confidence or in trust prior
to my employment by the Company.  I have
not entered into, and I agree I will not enter into, any agreement either
written or oral in conflict herewith.

 

6.             RETURN
OF COMPANY DOCUMENTS. 
When I leave the employ of the Company, I will deliver to the Company
any and all drawings, notes, memoranda, specifications, devices, formulas, and
documents, together with all copies thereof, and any other material containing
or disclosing any Company Inventions, Third Party Information or Proprietary
Information of the Company.  I further
agree that any property situated on the Company’s premises and owned by the
Company, including disks and other storage media, filing cabinets or other work
areas, is subject to inspection by Company personnel at any time with or
without notice.  Prior to leaving, I
will cooperate with the Company in completing and signing the Company’s
termination statement.

 

7.             LEGAL
AND EQUITABLE REMEDIES. 
Because my services are personal and unique and because I may have
access to and become acquainted with the Proprietary Information of the
Company, the Company shall have the right to enforce this Agreement and any of
its provisions by injunction, specific performance or other equitable relief,
without bond and without prejudice to any other rights and remedies that the
Company may have for a breach of this Agreement.

 

8.             NOTICES.  Any notices required or permitted hereunder
shall be given to the

 

4

 

appropriate party
at the address specified below or at such other address as the party shall
specify in writing.  Such notice shall
be deemed given upon personal delivery to the appropriate address or if sent by
certified or registered mail, three (3) days after the date of mailing.

 

9.             NOTIFICATION
OF NEW EMPLOYER.  In
the event that I leave the employ of the Company, I hereby consent to the
notification of my new employer of my rights and obligations under this
Agreement.

 

10.          GENERAL
PROVISIONS.

 

10.1        Governing Law; Consent to Personal
Jurisdiction.  This
Agreement will be governed by and construed according to the laws of the State
of California, as such laws are applied to agreements entered into and to be
performed entirely within California between California residents.  I hereby expressly consent to the personal
jurisdiction of the state and federal courts located in Santa Clara County,
California for any lawsuit filed there against me by Company arising from or
related to this Agreement.

 

10.2        Severability.  In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions of this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 
If moreover, any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration,
geographical scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be enforceable to the extent compatible with the
applicable law as it shall then appear.

 

10.3        Successors and Assigns.  This Agreement will be binding upon my
heirs, executors, administrators and other legal representatives and will be
for the benefit of the Company, its successors, and its assigns.

 

10.4        Survival.  The provisions of this Agreement shall
survive the termination of my employment and the assignment of this Agreement
by the Company to any successor in interest or other assignee.

 

10.5        Employment.  I agree and understand that nothing in this
Agreement shall confer any right with respect to continuation of employment by
the Company, nor shall it interfere in any way with my right or the Company’s
right to terminate my employment at any time, with or without cause.

 

10.6        Waiver.  No waiver by the Company of any breach of
this Agreement shall be a waiver of any preceding or succeeding breach.  No waiver by the Company of any right under
this Agreement shall be construed as a waiver of any other right.  The Company shall not be required to give
notice to enforce strict adherence to all terms of this Agreement.

 

10.7        Entire Agreement.  The obligations pursuant to Sections 1 and 2
of this Agreement shall apply to any time during which I was previously
employed, or am in the future employed, by the Company as a consultant if no
other agreement governs nondisclosure and assignment of inventions during such
period.  This Agreement is the final,
complete and exclusive agreement of the parties with respect to the subject
matter hereof and supersedes and merges all prior discussions between us.  No modification of or amendment to this Agreement,
nor any waiver of any rights under this Agreement, will be effective unless in
writing and signed by the party to be charged. 
Any subsequent change or changes in my duties, salary or compensation
will not affect the validity or scope of this Agreement.

 

5

 

This Agreement shall be effective as of the first day
of my employment with the Company, namely: 
November 15, 1999.

 

I
HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.  I HAVE COMPLETELY FILLED OUT EXHIBIT B
TO THIS AGREEMENT.

 

	
  /s/ Peter Van
  Vlasselaer

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Peter Van
  Vlasselaer

  	
   

  	
   

  
	
  (Printed Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  1065 Hickorynut Ct.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Sunnyvale, CA 94087

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  

  	
  November 15,
  1999

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED TO:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INTERMUNE PHARMACEUTICALS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Timothy
  Lynch

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: 

  	
  Chief Financial
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  3294 West
  Bayshore Road

  	
   

  
	
   

  	
  Palo Alto, CA
  94303

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 

  	
  1/17/00

  	
   

  	
   

  
																

 

 

EXHIBIT A

 

LIMITED EXCLUSION NOTIFICATION

 

THIS IS
TO NOTIFY you in accordance with Section 2872 of the
California Labor Code that the foregoing Agreement between you and the Company
does not require you to assign or offer to assign to the Company any invention
that you developed entirely on your own time without using the Company’s
equipment, supplies, facilities or trade secret information except for those
inventions that either:

 

1.             Relate at the
time of conception or reduction to practice of the invention to the Company’s
business, or actual or demonstrably anticipated research or development of the
Company;

 

2.             Result from any
work performed by you for the Company.

 

To the extent a provision in the foregoing Agreement purports to
require you to assign an invention otherwise excluded from the preceding
paragraph, the provision is against the public policy of this state and is
unenforceable.

 

This limited exclusion does not apply to any patent or invention
covered by a contract between the Company and the United States or any of its
agencies requiring full title to such patent or invention to be in the United
States.

 

I
ACKNOWLEDGE RECEIPT of a copy of this notification.

 

	
   

  	
   

  	
  By: 

  	
  Peter Van
  Vlasselaer

  
	
   

  	
   

  	
  (PRINTED NAME OF EMPLOYEE)

  
	
   

  	
   

  	
  Date: 

  	
  November 15,
  1999

  
	
   

  	
   

  	
   

  
	
  WITNESSED BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    Mireya M. Cretarolo

  	
   

  	
   

  
	
  (PRINTED NAME OF REPRESENTATIVE)

  	
   

  	
   

  
					

 

1

 

PETER VAN
VLASSELAER

1065 Hickorynut
Court

Sunnyvale, CA
94087

Tel:  (408) 774-1883 (Home)

Fax:  (408) 481-0798 (Home)

E-Mail:  pvvavc@pacbell.net (Home)

Tel:  (415) 964-6744 ext. 3084 (Work)

E-mail: pvanvlasselaer@dendreon.com

 

PATENTS

 

•                  Methods for Enriching Human
Hematopoietic Stem Cells.

U.S. Patent No. 5,474,687. Inventor

•                  Centrifugation Syringe System and
Method.

AU Patent No. 680383. Inventor.

•                  Methods for Enriching Breast Tumor
Cells.

U.S. Patent No. 5,648,223. Inventor.

•                  Methods for Enriching Fetal Cells
from Maternal Body Fluids.

U.S. Patent No. 5,646,004. Inventor.

•                  Separation Apparatus and Methods.

U.S. Patent No. 5,663,051. Inventor.

•                  Cell Separation Composition, Kit and
Method.

U.S. Patent No. 5,789,148. Inventor.

•                  Cell Separation Apparatus and Method.

N.Z. Patent No. 292756. Inventor.

•                  Methods for Enriching Specific Cell
Types by Density Gradient Centrifugation.

U.S. Patent No. 5,840,502. Inventor.

•                  Centrifuge Syringe Apparatus and Method.

Greek Patent No. 3028114. Inventor.

•                  Method
for High Yield Enrichment of Hematopoietic Progenitor Cells by Density Gradient
Centrifugation.  1993. Co-Inventor.

•                  Cell
Separation Apparatus and Method.  1995,
PCT/US95/11169, WO 96/07079. Inventor.

•                  Centrifuge
Syringe Apparatus and Method. 1995, PCT/US96/19713. Inventor.

•                  Cell
Washing Devise and Method. 1997. Inventor.

•                  Process
for making silanized colloidal silica. 1998. Inventor.

•                  Cell
Washing Devise and Method. 1997. PCT/US98/02661. Inventor.

•                  Process
for making organo silanized colloidal silica. 1998. Inventor.

•                  Method for preparing and in vivo
administration of antigen presenting cell composition. 1999. Inventor.

 

 

EXHIBIT B

 

	
  TO:

  	
   

  	
  INTERMUNE PHARMACEUTICALS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  Peter
  Van Vlasselaer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  Nov.
  15, 1999

  	
   

  
	
   

  	
   

  	
   

  	
   

  

SUBJECT:                 Previous
Inventions

 

1.             Except as listed in Section 2
below, the following is a complete list of all inventions or improvements
relevant to the subject matter of my employment by INTERMUNE PHARMACEUTICALS, INC.
(the “Company”)
that have been made or conceived or first reduced to practice by me alone or
jointly with others prior to my engagement by the Company:

 

	
   

  	
  •           No
  inventions or improvements.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  •           See
  below:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

 

ý                          Additional
sheets attached.

 

2.             Due to a prior confidentiality
agreement, I cannot complete the disclosure under Section 1 above with
respect to inventions or improvements generally listed below, the proprietary
rights and duty of confidentiality with respect to which I owe to the following
party(ies):

 

	
   

  	
  Invention or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

ý                          Additional
sheets attached.

 

 

OPTIONS

 

	
  Option Date

  	
   

  	
  ISO or NQ

  	
   

  	
  # Options

  Vested as of

  5/31/2004

  	
   

  	
  # Options

  Accelerated as

  of 5/31/2004

  	
   

  	
  Exercise
  Price

  ($)

  	
   

  
	
  10/12/1999

  	
   

  	
  ISO

  	
   

  	
  144,000

  	
  *

  	
  16,000

  	
  *

  	
  0.1250

  	
   

  
	
  3/6/2001

  	
   

  	
  ISO

  	
   

  	
  9,285

  	
   

  	
  2,873

  	
   

  	
  25.0000

  	
   

  
	
  3/6/2001

  	
   

  	
  NQ

  	
   

  	
  15,714

  	
   

  	
  2,128

  	
   

  	
  25.0000

  	
   

  
	
  2/12/2002

  	
   

  	
  ISO

  	
   

  	
  59

  	
   

  	
  797

  	
   

  	
  43.6600

  	
   

  
	
  2/12/2002

  	
   

  	
  NQ

  	
   

  	
  23,273

  	
   

  	
  9,203

  	
   

  	
  43.6600

  	
   

  
	
  3/5/2003

  	
   

  	
  ISO

  	
   

  	
  3

  	
   

  	
  86

  	
   

  	
  18.7000

  	
   

  
	
  3/5/2003

  	
   

  	
  NQ

  	
   

  	
  6,662

  	
   

  	
  4,915

  	
   

  	
  18.7000

  	
   

  
	
   

  	
   

  	
  TOTALS:

  	
   

  	
  198,996

  	
   

  	
  36,002

  	
   

  	
   

  	
   

  

 

* EARLY-EXERCISED

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]