Document:

Prepared by MerrillDirect

Exhibit
10.27

INTRABIOTICS
PHARMACEUTICALS, INC.

EXECUTIVE
SEVERANCE BENEFIT PLAN

Section 1.         INTRODUCTION.

                           This
IntraBiotics Pharmaceuticals, Inc. Executive Severance Benefit Plan (the
“Plan”) was established effective July 1, 2001.  The purpose of the Plan is to provide for the payment of
severance benefits to certain eligible employees of IntraBiotics
Pharmaceuticals, Inc. (the “Company”) whose employment with the Company is
terminated pursuant to a Covered Termination (as defined below).  This Plan shall supersede any severance
benefit plan (other than the Senior Executive Severance Benefit Plan, the
Director Severance Benefit Plan and the Employee Severance Benefit Plan),
policy or practice previously maintained by the Company.  This Plan document also is the Summary Plan
Description for the Plan.

Section 2.         DEFINITIONS.

                           For
purposes of the Plan, the following terms are defined as follows:

                           (a)         “Base Salary” means the Eligible Employee’s annual base salary as in effect during the
last regularly scheduled payroll period immediately preceding the effective
date of the Covered Termination.

                           (b)         “Board” means the Board of Directors of the Company.

                           (c)         “Company” means IntraBiotics Pharmaceuticals, Inc.

                           (d)         “Constructive Termination” means that the Eligible Employee voluntarily terminates employment with
the Company after:

                                        (i)         the
assignment to the Eligible Employee of any duties or responsibilities that
results in a significant diminution in the Eligible Employee’s function as in
effect on the Effective Date; provided,
however, that a mere change in the Eligible Employee’s title or
reporting relationships shall not constitute a Constructive Termination;

                                        (ii)        a
reduction by the Company in the Eligible Employee’s Base Salary by five percent
(5%) or more; provided, however,
that a reduction by the Company of the Eligible Employee’s Base Salary by up to
ten percent (10%) shall not constitute a Constructive Termination for purposes
of this Plan if it is made in connection with an across-the-board reduction by
the Company of all Eligible Employees’ annual base salaries by a percentage at
least equal to the percentage by which the Eligible Employee’s Base Salary is
reduced;

                                        (iii)       a
relocation of the Eligible Employee’s business office to a location that
requires the Eligible Employee to commute more than thirty-five (35) miles each
way, except for required travel by the Eligible Employee on the Company’s
business to an extent substantially consistent with the Eligible Employee’s
business travel obligations prior to the Effective Date; provided, however, that no relocation of
the Eligible Employee’s business office shall constitute a Constructive
Termination for purposes of this Plan if the Eligible Employee provides
services to the Company from a remote location (e.g., through telecommuting) at
the time of the relocation;

                                        (iv)        a
material breach by the Company of any provision of this Plan; or

                                        (v)         any
failure by the Company to obtain the assumption of this Plan by any successor
or assign of the Company.

                           (e)         “Continuation Period” means the period for which an Eligible Employee is
entitled to receive the salary continuation benefits described in Section
4(a).  The maximum Continuation Period
for Eligible Employees shall be twelve (12) months.

                           (f)         “Covered
Termination” means an Involuntary Termination Without Cause or a Constructive
Termination, notice of either of which is given on or after the Effective Date.

                           (g)        “Effective
Date” means July 1, 2001, the effective date of the Plan.

                           (h)        “Eligible
Employee” means any full-time, regular hire employee of the Company who holds the
title of Vice President or Senior Vice President, who is not an Officer of the
Company and whose employment with the Company terminates due to a Covered
Termination.

                           (i)         “Involuntary
Termination Without Cause” means the Eligible Employee’s dismissal or discharge for reasons other
than Cause.  For this purpose, “Cause”
means that, in the reasonable determination of the Company, the Eligible
Employee has

                                        (i)         been
indicted for or convicted of or pleaded guilty or no contest to any felony or
any crime involving dishonesty that is likely to inflict or has inflicted
demonstrable and material injury on the business of the Company;

                                        (ii)        participated
in any fraud against the Company;

                                        (iii)       willfully
and materially breached a Company policy;

                                        (iv)        intentionally
damaged any property of the Company thereby causing demonstrable and material
injury to the business of the Company;

                                        (v)         willfully
and materially breached the Eligible Employee’s Proprietary Information and
Inventions Agreement with the Company;

                                        (vi)        engaged
in conduct that, in the reasonable determination of the Company, demonstrates
gross unfitness to serve; or

                                        (vii)      demonstrated
a continued pattern of substantial nonperformance of his or her duties.

             Notwithstanding the foregoing,
Cause shall not exist based on conduct described in clause (iii), (vi) or (vii)
above unless the conduct described in such clause has not been cured within
fifteen (15) days following the Eligible Employee’s receipt of written notice
from the Company specifying the particulars of the conduct constituting Cause.

                           (j)         “Officer” means a person who is an officer of the Company
within the meaning of Section 16 of the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

                           (k)        “Year
of Service” means any twelve (12) consecutive months of service with the Company.

Section 3.         ELIGIBILITY FOR BENEFITS.

                           (a)         General
Rules.  Subject to the requirements set
forth in this Section, the Company shall provide the severance benefits
described in Section 4 of the Plan to Eligible Employees.

                                        (i)         In
order to be eligible to receive benefits under the Plan, an Eligible Employee
whose employment is terminated pursuant to a Covered Termination that is an
Involuntary Termination Without Cause must continue to provide services to the
Company, at the Company’s request, through such date as determined by the
Company; provided, however, that
such date shall not be more than ninety (90) days from the date the Eligible
Employee is notified by the Company, in writing, of his or her Involuntary
Termination Without Cause.

                                        (ii)        In
order to be eligible to receive benefits under the Plan, an Eligible Employee
also must execute a general waiver and release in substantially the form
attached hereto as Exhibit A, Exhibit B or Exhibit C, as appropriate, and such
release must become effective in accordance with its terms. The Company, in its
sole discretion, may modify the form of the required release to comply with
applicable state law and shall determine the form of the required release.

                           (b)         Exceptions
to Benefit Entitlement.  An employee who otherwise is an
Eligible Employee shall not receive benefits under the Plan in any of the
following circumstances, as determined by the Company in its sole discretion:

                                        (i)         The
employee has executed an individually negotiated employment contract or
agreement with the Company relating to severance benefits that is in effect on
his or her termination date, in which case such employee’s severance benefit,
if any, shall be governed by the terms of such individually negotiated
employment contract or agreement and shall be governed by this Plan only to the
extent that the reduction pursuant to Section 5(a) below does not entirely
eliminate benefits under this Plan.

                                        (ii)        The
Company involuntarily terminates the employee’s employment with the Company,
and such termination does not constitute a Covered Termination.  Involuntary terminations include, but are
not limited to, a termination for Cause, as such term is defined in Section
2(i).

                                        (iii)       The
employee voluntarily terminates employment with the Company, and such
termination does not constitute a Constructive Termination.  Voluntary terminations include, but are not
limited to, resignation, retirement or failure to return from a leave of
absence on the scheduled date.

                                        (iv)        The
employee voluntarily terminates employment with the Company in order to accept
employment with another entity that is wholly or partly owned (directly or
indirectly) by the Company or an affiliate of the Company.

                                        (v)         The
employee is offered employment, with the same title and reporting
responsibilities and no diminution in duties and responsibilities, with the Company,
an affiliate of the Company, or a successor to the Company.

                                        (vi)        The
employee is rehired by the Company or an affiliate of the Company prior to the
date benefits under the Plan are scheduled to commence.

Section 4.         AMOUNT OF BENEFIT.

                           (a)         Salary Continuation.  Each Eligible Employee shall
continue to receive Base Salary for a Continuation Period of six (6) months
plus one (1) month of additional salary continuation for each complete Year of
Service performed by the Eligible Employee in excess of two (2) Years of
Service up to a maximum of twelve (12) months. 
Such amounts shall be paid in regular installments on the normal payroll
dates of the Company and shall be subject to all required tax withholding.

                           (b)         Continued Insurance Benefits.  Provided that the Eligible
Employee elects continued coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), the Company shall pay the portion of
premiums of each Eligible Employee’s group medical, dental and vision coverage,
including coverage for the Eligible Employee’s eligible dependents, that the
Company paid prior to the Covered Termination for the Continuation Period
described in Section 4(a) or, if shorter, for the duration of the COBRA
continuation period.  Such premium payments
shall continue for the duration of the Continuation Period; provided, however, that no such premium
payments shall be made following the effective date of the Eligible Employee’s
coverage by a medical, dental or vision insurance plan of a subsequent employer.  Each Eligible Employee shall be required to
notify the Company immediately if the Eligible Employee becomes covered by a
medical, dental or vision insurance plan of a subsequent employer.

                           No provision of this
Plan will affect the continuation coverage rules under COBRA, except that the
Company’s payment of any applicable insurance premiums during the Continuation
Period will be credited as payment by the Eligible Employee for purposes of the
Eligible Employee’s payments required under COBRA.  Therefore, the period during which an Eligible Employee may elect
to continue the Company’s group medical coverage at his or her own expense
under COBRA, the length of time during which COBRA coverage will be made
available to the Eligible Employee, and all other rights and obligations of the
Eligible Employee under COBRA (except the obligation to pay insurance premiums
that the Company pays during the Continuation Period) will be applied in the
same manner that such rules would apply in the absence of this Plan.  At the conclusion of the Continuation
Period, the Eligible Employee shall be responsible for the entire payment of
premiums required under COBRA for the duration of the COBRA continuation
period.  For purposes of this Section
4(b), applicable premiums that will be paid by the Company during the
Continuation Period shall not include any amounts payable by the Eligible
Employee under a Section 125 health care reimbursement plan, which amounts, if
any, are the sole responsibility of the Eligible Employee.

Section 5.         LIMITATIONS ON
BENEFITS.

                           (a)         Certain
Reductions and Offsets.  Notwithstanding any other
provision of the Plan to the contrary, any benefits payable to an Eligible
Employee under this Plan shall be reduced by any severance benefits payable by
the Company to such individual under any other policy, plan, program or
arrangement, including, without limitation, a contract between the Eligible
Employee and any entity, covering such individual.  Furthermore, to the extent that any federal, state or local laws,
including, without limitation, so-called “plant closing” laws, require the
Company to give advance notice or make a payment of any kind to an Eligible
Employee because of that Eligible Employee’s involuntary termination due to a
layoff, reduction in force, plant or facility closing, sale of business, change
of control, or any other similar event or reason, the benefits payable under
this Plan shall either be reduced or eliminated.  The benefits provided under this Plan are intended to satisfy any
and all statutory obligations that may arise out of an Eligible Employee’s
involuntary termination of employment for the foregoing reasons, and the Plan
Administrator shall so construe and implement the terms of the Plan.

                           (b)         Mitigation.  Except as otherwise specifically
provided herein, Eligible Employees shall not be required to mitigate damages
or the amount of any payment provided under this Plan by seeking other
employment or otherwise, nor shall the amount of any payment provided for under
this Plan be reduced by any compensation earned by any Eligible Employee as a
result of employment by another employer or any retirement benefits received by
such Eligible Employee after the date of the Covered Termination.

                           (c)         Termination
of Benefits.  Benefits under this Plan shall
terminate immediately if the Eligible Employee, at any time, violates any
proprietary information or confidentiality obligation to the Company.

                           (d)         Non-Duplication
of Benefits.  No Eligible Employee is eligible
to receive benefits under this Plan more than one time.

                           (e)         Indebtedness
of Eligible Employees.  If a terminating employee is
indebted to the Company or an affiliate of the Company at his or her
termination date, the Company reserves the right to offset any severance payments
under the Plan by the amount of such indebtedness.

                           (f)         Parachute
Payments.  If any payment or benefit the
Eligible Employee would receive in connection with a change in ownership or
effective control of the Company from the Company or otherwise (“Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G
of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for
this sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be equal to the Reduced
Amount.  The “Reduced Amount” shall be
either (x) the largest portion of the Payment that would result in no portion
of the Payment being subject to the Excise Tax or (y) the largest portion, up
to and including the total, of the Payment, whichever amount, after taking into
account all applicable federal, state and local employment taxes, income taxes,
and the Excise Tax (all computed at the highest applicable marginal rate),
results in the Eligible Employee’s receipt, on an after-tax basis, of the
greater amount of the Payment notwithstanding that all or some portion of the
Payment may be subject to the Excise Tax. If a reduction in payments or
benefits constituting “parachute payments” is necessary so that the Payment
equals the Reduced Amount, reduction shall occur in the following order unless
the Eligible Employee elects in writing a different order (provided, however, that such election
shall be subject to Company approval if made on or after the date on which the
event that triggers the Payment occurs): 
reduction of cash payments; cancellation of accelerated vesting of stock
awards; reduction of employee benefits. 
In the event that acceleration of vesting of stock award compensation is
to be reduced, such acceleration of vesting shall be cancelled in the reverse
order of the date of grant of the Eligible Employee’s stock awards unless the
Eligible Employee elects in writing a different order for cancellation.

                           The
accounting firm engaged by the Company for general audit purposes as of the day
prior to the effective date of the change in ownership or effective control of
the Company shall perform the foregoing calculations.  If the accounting firm so engaged by the Company is serving as
accountant or auditor for the individual, entity or group effecting the change
in ownership or effective control of the Company, the Company shall appoint a
nationally recognized accounting firm to make the determinations required
hereunder.  The Company shall bear all
expenses with respect to the determinations by such accounting firm required to
be made hereunder.

                            The accounting firm engaged to make the
determinations hereunder shall provide its calculations, together with detailed
supporting documentation, to the Company and the Eligible Employee within
fifteen (15) calendar days after the date on which the Eligible Employee’s
right to a Payment is triggered (if requested at that time by the Company or
the Eligible Employee) or such other time as requested by the Company or the
Eligible Employee.  If the accounting
firm determines that no Excise Tax is payable with respect to a Payment, either
before or after the application of the Reduced Amount, it shall furnish the Company
and the Eligible Employee with an opinion reasonably acceptable to Executive
that no Excise Tax will be imposed with respect to such Payment.  Any good faith determinations of the
accounting firm made hereunder shall be final, binding and conclusive upon the
Company and the Eligible Employee.

Section 6.         RIGHT TO INTERPRET PLAN; AMENDMENT AND
TERMINATION.

                           (a)         Exclusive
Discretion.  The Plan Administrator shall
have the exclusive discretion and authority to establish rules, forms, and
procedures for the administration of the Plan and to construe and interpret the
Plan and to decide any and all questions of fact, interpretation, definition,
computation or administration arising in connection with the operation of the
Plan, including, but not limited to, the eligibility to participate in the Plan
and amount of benefits paid under the Plan. 
The rules, interpretations, computations and other actions of the Plan
Administrator shall be binding and conclusive on all persons.

                           (b)         Amendment
or Termination.  The Company reserves the right
to amend or terminate this Plan or the benefits provided hereunder at any time;
provided, however, that no such
amendment or termination shall affect the right to any unpaid benefit of any
Eligible Employee whose termination date has occurred prior to amendment or termination
of the Plan. Any action amending or terminating the Plan shall be in writing
and executed by the chairman of the Compensation Committee of the Board of
Directors of the Company.

Section 7.         TERMINATION OF CERTAIN EMPLOYEE
BENEFITS.

                           All non-health
benefits (such as life insurance, disability and 401(k) plan coverage) shall
terminate as of the employee’s termination date (except to the extent that a
conversion privilege may be available thereunder).

Section 8.         NO IMPLIED EMPLOYMENT CONTRACT.

                           The
Plan shall not be deemed (i) to give any employee or other person any right to
be retained in the employ of the Company or (ii) to interfere with the right of
the Company to discharge any employee or other person at any time and for any
reason, which right is hereby reserved.

Section 9.         LEGAL CONSTRUCTION.

                           This
Plan is intended to be governed by and shall be construed in accordance with
the Employee Retirement Income Security Act of 1974 (“ERISA”) and, to the
extent not preempted by ERISA, the laws of the State of California.

Section 10.      CLAIMS, INQUIRIES AND APPEALS.

                           (a)         Applications
for Benefits and Inquiries.  Any application for benefits,
inquiries about the Plan or inquiries about present or future rights under the
Plan must be submitted to the Plan Administrator in writing.  The Plan Administrator is:

IntraBiotics
Pharmaceuticals, Inc.

2021 Stierlin Court

Mountain View, CA  94043

                           (b)         Denial
of Claims.  In the event that any
application for benefits is denied in whole or in part, the Plan Administrator
must notify the applicant, in writing, of the denial of the application, and of
the applicant’s right to review the denial. 
The written notice of denial will be set forth in a manner designed to
be understood by the employee and will include specific reasons for the denial,
specific references to the Plan provision upon which the denial is based, a
description of any information or material that the Plan Administrator needs to
complete the review and an explanation of the Plan’s review procedure.

                           This
written notice will be given to the employee within ninety (90) days after the
Plan Administrator receives the application, unless special circumstances
require an extension of time, in which case, the Plan Administrator has up to
an additional ninety (90) days for processing the application.  If an extension of time for processing is
required, written notice of the extension will be furnished to the applicant
before the end of the initial ninety (90) day period.

                          This notice of extension will
describe the special circumstances necessitating the additional time and the
date by which the Plan Administrator is to render its decision on the
application.  If written notice of
denial of the application for benefits is not furnished within the specified
time, the application shall be deemed to be denied.  The applicant will then be permitted to appeal the denial in
accordance with the Review Procedure described below.

                           (c)         Request for a Review.  Any
person (or that person’s authorized representative) for whom an application for
benefits is denied (or deemed denied), in whole or in part, may appeal the
denial by submitting a request for a review to the Plan Administrator within
sixty (60) days after the application is denied (or deemed denied).  The Plan Administrator will give the
applicant (or his or her representative) an opportunity to review pertinent
documents in preparing a request for a review. 
A request for a review shall be in writing and shall be addressed to:

IntraBiotics
Pharmaceuticals, Inc.

2021 Stierlin Court

Mountain View, CA  94043

A request for review must set forth
all of the grounds on which it is based, all facts in support of the request
and any other matters that the applicant feels are pertinent.  The Plan Administrator may require the applicant
to submit additional facts, documents or other material as it may find
necessary or appropriate in making its review.

                           (d)         Decision
on Review.  The Plan Administrator will act
on each request for review within sixty (60) days after receipt of the request,
unless special circumstances require an extension of time (not to exceed an
additional sixty (60) days), for processing the request for a review.  If an extension for review is required,
written notice of the extension will be furnished to the applicant within the
initial sixty (60) day period.  The Plan
Administrator will give prompt, written notice of its decision to the
applicant.  In the event that the Plan
Administrator confirms the denial of the application for benefits in whole or
in part, the notice will outline, in a manner calculated to be understood by
the applicant, the specific Plan provisions upon which the decision is
based.  If written notice of the Plan
Administrator’s decision is not given to the applicant within the time prescribed
in this Subsection (d), the application will be deemed denied on review.

                           (e)         Rules
and Procedures.  The Plan Administrator will
establish rules and procedures, consistent with the Plan and with ERISA, as
necessary and appropriate in carrying out its responsibilities in reviewing
benefit claims.  The Plan Administrator
may require an applicant who wishes to submit additional information in
connection with an appeal from the denial (or deemed denial) of benefits to do
so at the applicant’s own expense.

                          (f)         Exhaustion of Remedies.  No legal
action for benefits under the Plan may be brought until the claimant (i) has
submitted a written application for benefits in accordance with the procedures
described by Section 10(a) above, (ii) has been notified by the Plan
Administrator that the application is denied (or the application is deemed
denied due to the Plan Administrator’s failure to act on it within the
established time period), (iii) has filed a written request for a review of the
application in accordance with the appeal procedure described in Section 10(c)
above and (iv) has been notified in writing that the Plan Administrator has
denied the appeal (or the appeal is deemed to be denied due to the Plan
Administrator’s failure to take any action on the claim within the time
prescribed by Section 10(d) above).

Section 11.      BASIS OF PAYMENTS TO AND
FROM PLAN.

                           All
benefits under the Plan shall be paid by the Company.  The Plan shall be unfunded, and benefits hereunder shall be paid
only from the general assets of the Company.

Section 12.      OTHER PLAN INFORMATION.

                           (a)         Employer
and Plan Identification Numbers.  The
Employer Identification Number assigned to the Company (which is the “Plan
Sponsor” as that term is used in ERISA) by the Internal Revenue Service is
94-3200380.  The Plan Number assigned to
the Plan by the Plan Sponsor pursuant to the instructions of the Internal
Revenue Service is 512.

                           (b)         Ending
Date for Plan’s Fiscal Year.  The date of
the end of the fiscal year for the purpose of maintaining the Plan’s records is
December 31.

                           (c)         Agent
for the Service of Legal Process.  The agent
for the service of legal process with respect to the Plan is IntraBiotics
Pharmaceuticals, Inc., 2021
Stierlin Court, Mountain View, CA  94043.

                           (d)         Plan
Sponsor and Administrator.  The “Plan Sponsor” and the “Plan
Administrator” of the Plan is IntraBiotics Pharmaceuticals, Inc., 2021 Stierlin Court, Mountain View,
California 94043.  The
Plan Sponsor’s and Plan Administrator’s telephone number is (650) 526–6800.  The Plan Administrator is the named
fiduciary charged with the responsibility for administering the Plan.

Section 13.      STATEMENT OF ERISA
RIGHTS.

                           Participants in this
Plan (which is a welfare benefit plan sponsored by IntraBiotics
Pharmaceuticals, Inc.) are entitled to certain rights and protections under
ERISA.  If you are an Eligible Employee,
you are considered a participant in the Plan and, under ERISA, you are entitled
to:

                           (a)         Examine,
without charge, at the Plan Administrator’s office and at other specified
locations, such as work sites, all Plan documents and copies of all documents
filed by the Plan with the U.S. Department of Labor, such as detailed annual
reports;

                           (b)         Obtain
copies of all Plan documents and Plan information upon written request to the
Plan Administrator.  The Administrator
may make a reasonable charge for the copies; and

                           (c)         Receive
a summary of the Plan’s annual financial report, in the case of a plan that is
required to file an annual financial report with the Department of Labor.  (Generally, all pension plans and welfare
plans with one hundred (100) or more participants must file these annual
reports.)

                           In addition to
creating rights for Plan participants, ERISA imposes duties upon the people
responsible for the operation of the employee benefit plan.  The people who operate the Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest
of you and other Plan participants and beneficiaries.

                           No one, including
your employer or any other person, may fire you or otherwise discriminate
against you in any way to prevent you from obtaining a Plan benefit or
exercising your rights under ERISA.  If
your claim for a Plan benefit is denied in whole or in part, you must receive a
written explanation of the reason for the denial.  You have the right to have the Plan review and reconsider your
claim.

                           Under ERISA, there
are steps you can take to enforce the above rights.  For instance, if you request materials from the Plan and do not
receive them within thirty (30) days, you may file suit in a federal
court.  In such a case, the court may
require the Plan Administrator to provide the materials and pay you up to $110
a day until you receive the materials, unless the materials were not sent
because of reasons beyond the control of the Plan Administrator.  If you have a claim for benefits that is
denied or ignored, in whole or in part, you may file suit in a state or federal
court.  If it should happen that the
Plan fiduciaries misuse the Plan’s money, or if you are discriminated against
for asserting your rights, you may seek assistance from the
U.S. Department of Labor, or you may file suit in a federal court.  The court will decide who should pay court
costs and legal fees.  If you are
successful, the court may order the person you have sued to pay these costs and
fees.  If you lose, the court may order
you to pay these costs and fees, for example, if it finds your claim is
frivolous.

                           If you have any
questions about the Plan, you should contact the Plan Administrator.  If you have any questions about this
statement or about your rights under ERISA, you should contact the nearest
office of the Pension and Welfare Benefits Administration, U.S. Department of
Labor, listed in your telephone directory or the Division of Technical
Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S.
Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.

Section 14.      EXECUTION.

                           To record the
adoption of the Plan as set forth herein, effective as of July 1, 2001,
IntraBiotics Pharmaceuticals, Inc. has caused its duly authorized officer to
execute the same this 31 day of May 2001.

	 	INTRABIOTICS
  PHARMACEUTICALS, INC.
	 	 
	 	By:   
  /s/ KENNETH J. KELLEY
	 	 	

	 	Title: Chief Executive OfficerPrepared by MerrillDirect

Exhibit 10.28

2001
Officer Incentive Bonus Plan

Summary

 

	ELIGIBILITY:	Section 16
  Officers and Natalie McClure (The “Eligible Officers”)	 
	 	 	 
	EFFECTIVE DATE:	July 1, 2001	 
	 	 	 
	Bonus Plan Awards:	The Eligible Officers shall be entitled
  to the cash and stock awards set forth below:	 
	 	 	 
	Cash Award:	If an Eligible Officer remains employed
  by the Company on January 31, 2002, the Company shall pay to such Eligible
  Officer on January 31, 2002, a cash bonus equal to:  (a) 20% of the Eligible Officer’s base salary in effect on
  January 31, 2002 for Section 16 officers and (b) 15% of the Eligible
  Officer’s base salary in effect on January 31, 2002 for Natalie McClure.	 
	 	 	 
	 	If prior to January 31, 2002, an
  Eligible Officer’s employment is terminated and such termination constitutes
  an involuntary termination without cause or a constructive termination, the
  Company shall pay to such Eligible Employee within one business day after
  such termination, an amount equal to: 
  (a) 20% of such Eligible Employee’s base salary in effect on the date
  of such termination for Section 16 officers; and (b) 15% of such Eligible
  Employee’s base salary in effect on the date of such termination for Natalie
  McClure.	 
	 	 	 
	Stock Award:	Restricted common stock award under the
  Company’s 2000 Equity Incentive Plan shall be granted on the Effective Date
  to each Eligible Officer for the number of shares of common stock of
  IntraBiotics as follows:	 
	 	 	 
	 	OFFICER	Number
  of Shares Pursuant to Stock Award
	 	Ken
  Kelley	75,000
	 	Hank
  Fuchs	50,000
	 	Sandy
  Wrobel	50,000
	 	Natalie
  McClure	25,000
	 	 	 
	Vesting of Stock Awards:	In addition to the provisions of the
  Company’s 2000 Equity Incentive Plan, the restricted common stock awards
  identified above shall vest as to each Eligible Officer as follows:	 
	 	 	 	 
	 	(a)	100% of such restricted common stock
  award shall vest in connection with certain change in control provisions;	 
	 	 	 	 
	 	(b)	50% of such restricted common stock
  award shall vest on achievement of certain liquidity targets.	 
	 	 	 	 
	 	(c)	in any event, 100% of such restricted
  common stock award shall vest on June 30, 2006.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]