Document:

Exhibit 10.25

 

PURCHASE
AND SALE AGREEMENT

 

This
Purchase and Sale Agreement (“Agreement”)
is entered into effective as of September 17, 2010
(“Execution Date”) by and between SEMILEDS OPTOELECTRONICS CO., LTD., a
ROC company (“Buyer”), and PRIME OPTICAL FIBER CORPORATION, a ROC
company (“Seller”), with respect to the purchase
of Property (as defined below), on the terms and subject to the conditions set
forth herein.  Buyer and Seller may be
referred to as “Party,”
individually and “Parties”
collectively.

 

RECITALS

 

WHEREAS, Seller owns the first and second floors of the building located at No. 11
Ke Jung Rd., Chu-Nan Site, Hsinchu
Science Park, Chu-Nan 350, Taiwan () with
the construction number () 00006-000 (the entire building hereinafter “Building”)
(the ownership certificate and the license for usage are attached hereto as Exhibit A) and has been operating in the above floors of the Building. ;

 

WHEREAS,
Seller has certain leasehold in and to the Land as defined where the Building
is located; and

 

WHEREAS,
Seller desires to transfer to Buyer and Buyer desires to acquire from Seller the
Building, leasehold to the Land and any other property as further defined as “Property”
in Section 1 pursuant to this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual promises contained herein, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, the Parties agree as follows:

 

AGREEMENT

 

1.                                      Purchase and Sale.

 

Subject
to and upon the terms and conditions herein, Seller hereby agrees to sell to
Buyer and Buyer hereby agrees to purchase from Seller the property (the “Property”), consisting the following:

 

1.1                               The entire first and second floors of the
Building together
with the co-ownership of the common area of Seller
and all other improvements thereon erected, fixtures attached thereto, and all
appurtenances and easements or other rights relating thereto  (“Selling Building”);

 

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1.2                               All apparatus, equipment and appliances used
in connection with the operation or occupancy thereof, such as heating and air
conditioning systems and water tank and chillers
and facilities
(“Occupancy  Facility”) (as Exhibit B);

 

1.3                               The spaces in the basement of the Building
(“Basement”);

 

1.4          The remaining  one-half undivided right to the leasehold (“Lease Right”)
of the land under and surrounding the Building with land lot number  () (“Land”) pursuant to the Lease Agreement by and between Seller
and the Science Park Administration dated January 1,
2002, July 13,
2006, and January 6, 2009 (“Lease Agreement”),
as may be adjusted or amended by the Science Park Administration from time to
time

 

1.5                               The remaining one-half undivided right to use the facilities and external ground
space adjacent to the Building (“Facilities and Adjacent
Ground Space”);

 

1.6                               The remaining one-half undivided right to the area for common usage;  and

 

1.7                               Any and all contracts, rights, warranties, guaranties, insurance
policies for all periods of ownership of the Selling Building, Land, and
Facilities and Adjacent Ground Space by Seller (including, without limitation,
property damage and liability, insurance policies and, if carried by Seller
environmental insurance policies) (collectively, the “Insurance
Policies”), other rights relating to the construction, ownership,
use and operation of any part of the Selling Building, and any agreements,
covenants or indemnifications received by Seller from a prior owner or any
other third party relating to the Selling Building, to the extent assignable
and to the extent approved by Buyer, all of which shall be assigned to Buyer.

 

1.8                               It is understood that upon the closing of the transaction under this
Agreement, Buyer shall be the sole record and beneficial owner of the whole
Building and be entitled to each and every right and interest as the owner.

 

2.                                      No Assumption of Liabilities.

 

Notwithstanding
any provision to the contrary, Buyer shall not assume and does not agree to pay
or discharge any Unassumed
Liabilities (as defined below).  Seller
shall remain responsible for paying any and all Unassumed Liabilities.  “Unassumed Liabilities,” as defined herein,
shall mean:

 

2.1                               Any taxes or charges prior to the Closing Date;

 

2.2                               Any and all debts, obligations, and liabilities, whether accrued, absolute,
contingent or otherwise, oral or written, disclosed or undisclosed, incurred or
arising out of actions or events relating to the Property occurring prior to
the Closing Date;

 

2.3                               Any existing or future environmental liability due to the Seller’s
design, use, ignorance, manufacture or disposal prior to the Closing Date,
including but not limited to compliance obligations related to laws and
regulations, existing and future remediation obligations related to
contamination, obligations to pay fines and penalties; and

 

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2.4                               Any mortgage or encumbrance (including but not limited to the
right-defect, statutory right, pledges, liens, charges, conditional sales,
covenants, conditions and other restrictions, either contractual or statutory), oral or written, disclosed or undisclosed, incurred or arising out of
actions or events prior to the Closing Date
relating to the Property (Collectively, “Title Encumbrance”).

 

3.                                      Purchase Price.

 

3.1                               The total purchase price for the Property shall be One Hundred and Twenty Five Million
New Taiwan Dollars (NT$125,000,000) (the “Purchase Price”) (exclusive of value-added business tax of NT$6,250,000).  While
receiving the invoice of NT$131,250,000 (i.e. NT$125,000,000 plus NT$6,250,000)
issued by Seller, Buyer is obligated to remit only NT$4,000,000 out of the
total NT$6,250,000 value-added business tax to Seller and Seller is obligated
to advance NT$2,250,000 for the value-added business tax.  Seller is obligated to pay the NT$6,250,000
value-added business tax to the tax authority. 
Upon Buyer’s receipt of the full tax refund of value-added business tax
in the amount of NT$6,250,000, Buyer shall remit NT$2,250,000 to Seller without
any interest.

 

3.2                               Buyer shall pay the Purchase Price in accordance with the follows:

 

(a)                                 Within five (5) business days after the full execution of
this Agreement, Buyer shall pay Seller
the amount of Twenty Million New Taiwan Dollars (NT$20,000,000) (exclusive of
value-added business tax, which shall be borne by the Seller) (“Initial Payment”) to Seller; provided that, if the
transactions contemplated under this Agreement fail to consummate or this Agreement is terminated or rescinded by either Party, such amount shall be immediately returned to Buyer plus interest accrued.

 

(b)                                 The amount of Fifty Million New Taiwan Dollars
(NT$50,000,000) (exclusive of value-added business tax, which shall be borne by
the Seller) as the second installment of the Purchase Price (“Second  Payment”) shall be paid on the date of completion of title transfer of the
Property to Buyer in accordance with Section 6.1(a), as evidenced by
appropriate records issued by the governmental authority.

 

(c)                                  The amount of Fifty Million New Taiwan Dollars
(NT$50,000,000) (exclusive of value-added business tax, which shall be borne by
the Seller) as the third installment of the Purchase Price (“Third  Payment”)
shall be paid upon the execution of the new lease agreement of the Land by and
between Buyer and the Science Park Administration.

 

(d)                                 The amount of Five Million New Taiwan
Dollars(NT$ 5,000,000) (exclusive of value-added business tax, which shall be
borne by the Seller) as the rest remaining portion of the
Purchase Price (“Final  Payment”)
shall be paid by Buyer to Seller at the time that as
the Seller has delivered the Property to Buyer
which shall be within three (3) months from the date of execution of this
Agreement.

 

(e)                                  All payments hereunder shall be made by wire transfer to Seller’s
following

 

Bank
account:

 

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Account Name:

 

Account Number: 725-120-001455

 

Bank:

 

3.3                               If there is any cause solely attributable to Buyer resulting in failing to buy or pay without
according to the payment terms under this Agreement, Seller may retain the Initial Payment as liquidated damages and
shall return to Buyer the balance of the amount of purchase price paid plus
interest accrued; meanwhile this Agreement may be terminated by
either Party; if terminated by Seller, Seller shall issue a written notice to
Buyer informing Buyer of the failure to pay sixty (60) days prior to its
termination; provided that Seller shall not terminate this Agreement if Buyer
effect the payment within such sixty (60) days after Seller issues warning/request letters indicating the attempt of termination according to the relevant law;

 

3.4                               Unless otherwise provided under Section 3.3, if there is any cause resulting in failing to close the transaction contemplated herein,  Buyer may
terminate this Agreement immediately and all of the paid amount plus
interest accrued shall be returned  to  Buyer
immediately.  In case such failure is attributable to Seller,
Seller shall pay the amount equals to the Initial Payment as liquidated damages
and also be liable for any loss, damage and attorney’s fee arising from or in
connection with the foregoing failure.

 

4.                                      Contingencies.

 

In the event that any contingency set forth in this Section 4 has not been either satisfied or waived, this Agreement shall be
terminated at the discretion of Buyer (by giving notice to Seller), and the amount set forth in Section 3.2(a)(b)(c)(d) plus interest
accrued shall be returned to Buyer, and neither Party shall have
any further obligation to the other.

 

4.1                               Seller has obtained all necessary the Governmental Approval (as defined below) for the
transfer to Buyer of the Property;
and

 

4.2                               Buyer has received from Seller minutes of the meeting of Seller’s Board
of Directors and shareholders showing the adoption of the resolutions on the sale of the Property to
Buyer.

 

5.                                      Delivery of the Documents for Property Transfer.

 

Within ten
(10) business days after the
Initial Payment, Buyer and Seller shall both make
available all the documents and certificates required for applying for the
registration of the transfer of the Property to the land agent designated by Buyer (“Land Agent”) for the completion of the building deed tax
declarations and the subsequent procedures for the transfer of the Property to
Buyer, including
registration of transfer, the
approval by the Science Park Administration and other government authority to be further
specified according to the result of inspection and investigation as prescribed
herein (“Governmental Approval”) (the procedure herein collectively referred to as
“Ownership Transfer Procedures”).  In the event that either 

 

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Party is hereafter required to provide any additional
document or affix any additional stamp or seal as required for processing any
steps of Ownership Transfer Procedures, said Party shall provide or affix
accordingly without any delay.  The
Land Agent engaged by
Buyer shall act under the sole
instructions of Buyer in processing the Ownership Transfer Procedures.

 

6.                                      Conditions to Close; Contingencies to Balance
Payment

 

6.1                               The  Final Payment shall become payable to Seller on the date to be mutually agreed by the Parties (“Closing Date”)
which shall be within three (3) months from date of signature of this Agreement, subject to Buyer’s  satisfaction
or waiver in writing of the contingencies
below:

 

(a)                                 The Property has
been transferred to Buyer, registered in
the name of Buyer, and is free from Title Encumbrance except for the lease agreement to be entered into by and between Buyer
and Seller;

 

(b)                                 The lease agreement dated as of 22, April by
and between Seller (as Lessor) and Buyer (as Lessee) has been effectively
terminated as evidenced by a termination agreement;

 

(c)                                  Seller has
issued the uniform invoice for the full amount of the Purchase Price and the applicable value added taxes;

 

(d)                                 The minutes of the meetings of the Board of Directors of
Seller for the sale of the Property have delivered by Seller to
Buyer;

 

(e)                                  Seller has delivered to Buyer either the meeting minutes of approval by
Seller’s shareholders, or an official document issued by a Certified Public
Accountant in writing stating that the Property does not constitute a major
asset or business of Seller;

 

(f)                                   Seller and Buyer have obtained all
necessary government approval (including without limitation the Science Park
Administration) for the transactions contemplated herein;

 

(g)                                  Buyer has obtained approval from the
Science Park Administration for the change of the investment plan, if required;

 

(h)                                 Seller does not commit any defaults under  this
Agreement or if any, such default has been cured; and

 

(i)                                     All of the representations and warranties of Seller and Buyer
under this Agreement, including without limitation the representations and
warranties under Section 7 hereof, are
true and accurate.

 

6.2                               The Parties agree that in the event that Seller is in default of any of
the terms and conditions of this Agreement, Seller agrees that Buyer shall be entitled to withhold and not pay any or all of the balance payments unless such default waived by Buyer in
writing or until
Seller has cured such default.

 

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7.                                      Representations, Warranties and Undertakings

 

7.1                               Seller represents and warrants the followings:

 

(a)                                 Seller is a company duly
organized and validly existing under the laws of the ROC and with the
resolution of the Board of Directors and
shareholders stated in  above, it has
full corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby.  Seller further represents and warrants that no
other authorizations, licenses, consents, approvals or permits are required for
the sale of the Property and the performance of its obligations hereunder in
the ROC and there is no insolvency, bankruptcy, reorganization, dissolution or
liquidation involving Seller;

 

(b)                                 The
execution of this Agreement by Seller  constitutes
legal, valid and binding obligations against Seller  and is enforceable
against Seller;

 

(c)                                  The execution of this
Agreement by Seller and the performance of its obligations hereunder does not
violate or result in breach of or constitute a default under any applicable
laws and regulations, its articles of incorporation, any effective rulings,
judgments or arbitral awards applicable against Seller, any orders issued by
the competent authorities or courts, or any contracts binding on Seller;

 

(d)                                 There are no judicial or
administrative actions, proceedings or investigation pending or in process in
any court, government agency, arbitral tribunal and other competent dispute
settlement agency that will have a material adverse effect on the execution and
performance by Seller of its obligations under this Agreement;

 

(e)                                  Seller is the owner of the
Property and has full power and authority to sell and transfer the ownership of
the Property to Buyer without subject to any contractual or legal restriction;
e.g., third parties’ right of first refusal;

 

(f)                                   As of Closing Date, Seller’s
ownership of the Property is free from any Title Encumbrance  except the lease agreement to be entered between Buyer and Seller;

 

(g)                                  There is no controversy or
dispute relating to the Property or the Land, whether or not arising from or in
connection with the boundary lines between the Land and any of its adjacent
land;

 

(h)                                 Until the “Title
Transfer Date” (the date that the
ownership of the Property is duly transferred to and registered in the name of
Buyer free from Title Encumbrance)
or the Closing Date, whichever is later, the Property (including
the soil and ground water) has not been contaminated by any pollution, nor
contains any toxic or harmful substance; therefore, nothing in the Property
will cause any pollution or contain any harmful substance in any place above or
under the ground (including the soil and ground water) and in any other
adjacent land; if any pollution is discovered, Buyer shall be entitled to claim
any and all other remedies in accordance with this Agreement, and Seller shall
be liable for the removal and cleaning of such pollution sources at its own
cost and expense;

 

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(i)                                     The Property, especially
referring to the Selling Building, the
associated materials used therein and the equipment installed thereto, is
absolutely free from any sea sand and/or radioactive and other poisonous
pollutant, and the Property thereof, does not have any defect which will cause
any loss or reduction of its value, or its expected or normal function, and
will operate and function well upon transfer of its risks;

 

(j)                                    There are no judicial or
administrative actions, proceedings or investigation pending or in process in
any court, government agency, arbitral tribunal and other competent dispute
settlement agency involving the Property;

 

(k)                                 The zoning,
usage, operation, management and maintenance of the Property are not in
violation of any ROC laws including but not limited to those governing the
building construction, building safety, fire control, emergency escape,
environment, public safety that will have material adverse effect on this Agreement
and all relevant licenses, permits and approvals required for the use of the
Property have been obtained and such licenses, permits and approvals are valid
as of the Delivery Date;

 

(l)                                     Seller has not received any
notice from court or relevant government authority asserting that the use,
operation, management or maintenance of the Property violates relevant laws,
decrees, orders or notices that will have a material adverse effect on this
Agreement, and the Property;

 

(m)                             As of the
signing of this Agreement and the Closing
Date, there is no other agreement in writing or oral for the lease, purchase,
occupancy or use of any part of the Property,
except for the Lease Agreement and the existing lease agreement between Buyer
and Seller;

 

(n)                                 Seller has not breached and
will not breach any terms and conditions in any contracts with respect to the
operation and maintenance of the Property;

 

(o)                                 Seller has purchased and
maintained proper and adequate insurance on the Property, including without
limitation an all-risk property insurance policy (including public liabilities
insurance) covering the full replacement cost of the Selling Building, and its personal properties on the
Property;

 

(p)                                 There are no
other illegal or non-compliant works on the Property;

 

(q)                                 Except as otherwise
expressed in this Agreement, all representations and warranties of Seller under
this Section 7.1 and elsewhere in this
Agreement are true, accurate and complete from the date of execution of this
Agreement till the Closing Date; and

 

(r)                                    Seller has disclosed the
complete conditions of and/or related to the Property to Buyer.

 

7.2                               Seller undertakes the followings:

 

(a)                                 Seller hereby
agrees not to cause any delay to the transfer of the Property to Buyer and the
registration of the Property, as applicable, in the name of Buyer;

 

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(b)                                 As of the Execution Date  until the Closing Date, Seller agrees not to add any new illegal
construction works on the Property. Seller shall be responsible for all loss,
damage, costs and expenses arising from any of the Works and shall indemnify
Buyer for any loss, damages, cost and expense incurred therefrom;

 

(c)                                  Prior to the Closing Date, Seller shall manage, operate and maintain the
Property with the same degrees of care as a “Good Administrator” as defined in
the Civil Code of ROC should do;

 

(d)                                 Damage between the Execution Date and the Closing Date to the building Seller
should take the responsibility to fix it;

 

(e)                                  From the Execution Date  until the Closing Date, no agreements for the lease, occupancy or use
of the Property shall be entered into without the prior written consent of Buyer;

 

(f)                                   Seller hereby
agrees to assume warranty responsibility in respect of the building structure
of the Building and warranty responsibility
in respect of the mechanical and electrical systems and devices installed in
the Property effective from the date of
Execution Date of this Agreement ;  and

 

(g)                                  Seller hereby agrees that upon the contemplated completion of the title
transfer herein, Buyer is entitled to install or dismantle any logo or the like
adhered or fixed, prior to the Closing Date, to the surface of the Building
without being liable for any loss or damage so incurred to Seller or any other
party.

 

7.3                               Buyer represents, warrants and undertakes the followings:

 

(a)                                 Buyer is a
company duly organized and validly existing under the laws of the ROC and has
full corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby.  Buyer further represents and warrants that no
other authorizations, licenses, consents, approvals or permits are required for
the sale of the Property and the performance of its obligations hereunder in
the ROC and there is no insolvency, bankruptcy, reorganization, dissolution or
liquidation involving Buyer;

 

(b)                                 The execution
of this Agreement by Buyer constitutes legal, valid and binding obligations
against Buyer and is enforceable against Buyer;

 

(c)                                  The execution
of this Agreement by Buyer and the performance of its obligations hereunder do
not violate relevant laws and regulations, its articles of incorporation, any
contracts binding on Buyer, any effective rulings, judgments or arbitral awards
applicable against Buyer or any orders issued by the competent authorities or
courts;

 

(d)                                 To Buyer’s
knowledge, there are no judicial or administrative actions, proceedings or
investigations pending or in process in any court, government agency, arbitral
tribunal and other competent dispute settlement agency that will have a
material adverse effect on the execution and performance by Buyer of its
obligations under this Agreement; and

 

8

 

(e)                                  Except as
otherwise expressed in this Agreement, all representations and warranties of
Buyer under this Section 7.3 and elsewhere
in this Agreement are true and accurate from the date of execution of this
Agreement.

 

8.                                      Taxes, Fees and Management Fee

 

8.1                               The house tax, whether levied or due or not, to be incurred before the
ownership of the Property is registered in the name of Buyer shall be borne by
Seller, whereas after the ownership of the Property is registered in the name
of Buyer shall be borne by Buyer

 

8.2                               The building deed tax payable for the registration of the transfer of
ownership of the Property shall be borne by Buyer.  For payment of the building deed tax, Buyer shall,
within five (5) business days after the date of issuance of the building
deed tax notice issue a check and deliver the same to the Land Agent for the
payment of such tax on behalf of Buyer.

 

8.3                               The ownership transfer registration fee, the stamp tax leviable on the
real estate transfer agreement, and the land agent fee payable in respect of
the transfer of the ownership of the Property shall be borne by Buyer. The applying
fee for mortgage registration and cancellation before the ownership of the
Property is registered in the name of Buyer shall be borne by Seller.

 

8.4                               In the event that stamp tax is leviable on this Agreement, Buyer shall
bear such tax.

 

8.5                               In the event that Seller is in the arrear for payment of any tax
overdue, it shall make up such outstanding tax immediately after its receipt of
a notice from the Land Agent.  The
payment of such over-due tax may be advanced by Buyer for Seller and deducted
by Buyer from any outstanding amount payable by Buyer to Seller under this
Agreement, and in case of any deficit, Seller shall forthwith reimburse such
deficit.

 

8.6                               The water bill, electricity bill, gas bill, and the bills for other
public utilities for the Property incurred prior to the Closing Date shall be borne
by Seller.

 

8.7                               Each party will be responsible for its costs and expenses in connection
with the negotiations and all aspects relating to this Purchase and Sale
Agreement and the transactions contemplated herein.

 

9.                                      The first right to purchase the Property.

 

So long as no default shall
have occurred, the Parties
agrees that Seller shall have the first right to purchase from Buyer the “Property”  in accordance with the same terms and
conditions Buyer offers to the potential buyer  if Buyer will sell the Property in the
future.

 

10.                               Assumption of Risks

 

10.1                        The risks of destruction, damage and loss of the Property shall be transferred
to Buyer from the Closing Date.

 

9

 

10.2                        In the event that the Property cannot be transferred and delivered to
Buyer due to any restriction imposed by laws or regulations or other event not attributable
to either Party, or within a reasonable
time, this Agreement shall be forthwith deemed
terminated.  Under such circumstances, Seller
shall immediately refund to Buyer the Purchase Price already paid by Buyer plus accrued interest and all the payments advanced by Buyer
for Seller.  In addition, if the
aforesaid event occurs, the stamp tax for the real estate transfer agreement,
the building deed tax and the title transfer registration fee paid by Buyer and
the Land Agent fee payable to the Land Agent shall be jointly borne by Buyer
and Seller in half each.

 

11                                  Default Clause

 

11.1                        Without prejudicing the claim of the
other (non-defaulting) Party against the defaulting Party for actual damages,
in the event that either Party was in breach of the terms and conditions of
this Agreement, including without limitation the breach of or non-compliance
with the respective Party’s representations, warranties, undertakings and obligations
hereunder, and has further failed to rectify such breach or non-compliance
after having received a thirty (30)-day (or a period longer than thirty (30)
days that is reasonably as determined by the non-defaulting Party if it will be
conspicuously impractical for the defaulting Party to rectify within thirty
(30) days) prior notice urging it to rectify the breach or non-compliance, the
other (non-defaulting) Party shall be entitled to terminate this Agreement and
demand to restore to the original condition before the execution of this
Agreement, whereas the defaulting Party shall be liable for compensating the other Party an amount equivalent to the
non-defaulting Party’s actual damage amount (rather than special, indirect,
consequential or punitive damages) for the non-performance of the obligation of
the defaulting Party; and in addition thereto, any and all taxes, costs and
expenses to be incurred for restoring to the original condition before the
execution of this Agreement, including without limitation the amount of any
damage, claim, attorneys’, financial experts’ and counsel’s fee, charge and
cost directly incurred from the non-performance of the obligation of the
defaulting Party, shall be borne solely by the defaulting Party.         .

 

12                                  Miscellaneous

 

12.1                        Notices.  All notices, requests, consents
and other communications required or permitted hereunder
shall be in writing and shall be deemed given upon (a) transmitter’s confirmation of a receipt of a
facsimile transmission, (b) confirmed delivery by a standard overnight or
recognized international carrier or when delivered by hand, or
(c) delivery in person, addressed at the following addresses (or at such
other address for a Party as shall be specified by like notice):

 

(a)                                 If to Buyer:

 

Semileds Optoelectronics Co., Ltd.

3F, No.11, Ke Jung Road

Chu-Nan Site, Hsinchu
Science Park

Chu-Nan 350, Miao-Li County,
Taiwan

Fax: 037-582688

Attn:  Legal Counsel

 

10

 

(b)                                 If to Seller:

 

Prime Optical Fiber Corporation

No.11, Ke Jung Road

Chu-Nan Site, Hsinchu
Science Park

Chu-Nan 350, Miao-Li County,
Taiwan

Fax: 037-586899

Attn: Legal
Counsel

 

12.2                        Governing Law.  The execution and interpretation of this
Agreement shall be governed by the law of the ROC.

 

12.3                        Venue.  The Parties agree that in the event of any
dispute arising from or in connection with this Agreement, Taiwan Miaoli
District Court shall be the court of non-exclusive jurisdiction in the first
instance.

 

12.4                        Publicity.  From the execution date of this Agreement
through the Closing, neither Seller nor Buyer shall issue or cause the
publication of any press release or other public announcement with respect to
the transactions contemplated by this Agreement without the consent of the
other Party unless the obligation pursuant to the request by government or ROC
laws, which consent shall not be unreasonably withheld.

 

12.5                        Amendment.  This Agreement may be amended, modified or
supplemented by a written agreement signed by Buyer and Seller.

 

12.6                        No Relationship.  Nothing contained in this Agreement shall be
construed to constitute either Party as a partner or agent of the other Party or
to create any other form of legal association that would impose liability upon
a Party for any act or omission of the other Party or provide a Party with the
right, power, or authority to create or impose any duty or obligation on the
other Party, it being intended that each Party shall remain an independent
contractor acting in its own name and for its own account.

 

12.7                        Entire Agreement.  This Agreement (including its Exhibits)
represents and contains the full and complete understanding and agreement of
the Parties with respect to the subject matter hereof and supersedes all prior
and contemporaneous agreements, understandings, statements, clauses, and
conditions with respect to the transactions contemplated by this Agreement or
which may be contained in any other form or document.

 

12.8                        Force Majeure.   Each party is not liable for failure to
perform the party’s obligations if such failure is as a result of war,
invasion, act of foreign enemies, hostilities (regardless of whether war is
declared), civil war, rebellion, revolution, insurrection, military or usurped
power or confiscation, terrorist activities, nationalization, government
sanction, blockage, embargo, lockout or interruption or failure of electricity
or telephone service which may materially and adversely jeopardize the closing
of the transaction contemplated herein.

 

12.9                        Notarization.    All of the original copies of this
Agreement shall be legally notarized.

 

11

 

Exhibits:

 

This
Agreement is annexed with the following Exhibits:

 

[Signatures on following page.]

 

IN WITNESS WHEREOF, each of the signatories hereto has caused this Agreement to be signed
by their respective duly authorized representatives as of the date written
below.

 

 

	
  By

  	
  /s/
  Trung T. Doan

  	
   

  
	
  Name:  Trung T. Doan

  	
   

  
	
  Title:
  Chairman and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Seller:

  	
   

  
	
  PRIME OPTICAL FIBER
  CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ 

  	
   

  
	
  Name:  

  	
   

  
	
  Title
  : Chairman

  	
   

  

 

12Exhibit 10.1  

 INDEMNIFICATION AGREEMENT  

        This Agreement is made as of                        , between
Anacor Pharmaceuticals, Inc., a Delaware corporation (the "Company"), and
                        (the "Indemnitee"). 

RECITALS  

        Both the Company and Indemnitee recognize that highly competent persons have become more reluctant to serve publicly-held
corporations as directors or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against
them arising out of their service to and activities on behalf of the corporation. 

        In
recognition of Indemnitee's need for substantial protection against personal liability in order to enhance Indemnitee's continued service to the Company in an effective manner and
Indemnitee's reliance on the provisions of the Company's Amended and Restated Certificate of Incorporation ("Certificate of Incorporation") and the Company's Bylaws (the "Bylaws") requiring
indemnification of the Indemnitee to the fullest extent permitted by law, and in part to provide Indemnitee with specific contractual assurance that the protection promised by such Certificate of
Incorporation and Bylaws will be available to Indemnitee (regardless of, among other things, any amendment to or revocation of such Certificate of Incorporation or Bylaws or any change in the
composition of the Company's Board of Directors or acquisition transaction relating to the Company), the Company wishes to provide in this
Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete) permitted by law and as set forth in this Agreement. 

        The
Certificate of Incorporation, the Bylaws and the General Corporation Law of the State of Delaware ("DGCL") expressly provide that the indemnification provisions set
forth therein are not exclusive and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to
indemnification. 

        It
is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted
by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified. 

        This
Agreement is a supplement to and in furtherance of the Certificate of Incorporation and Bylaws and any resolutions adopted pursuant thereto and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder. 

AGREEMENT  

        In consideration of the promises and of Indemnitee agreeing to serve or continuing to serve the Company directly or, at its request,
with another enterprise, and intending to be legally bound hereby, the parties hereto agree as follows: 

        1.    Basic Indemnification Agreement.    

        (a)   In
the event Indemnitee was, is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a
Claim (as defined in Section 9(b)) by reason of (or arising in part out of) an Indemnifiable Event (as defined in Section 9(d)), the Company shall indemnify Indemnitee to the fullest
extent permitted by law as soon as practicable but in any event no later than 30 days after written demand is presented to the Company, against any and all Expenses (as defined in
Section 9(c)), judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection therewith) of such Claim actually
and reasonably incurred by or on behalf of Indemnitee in connection with such Claim and any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of
any payments under this Agreement (to 

 

the
extent permitted by law). If requested by Indemnitee in writing, the Company shall advance (within 30 business days of such written request) any and all Expenses to Indemnitee (an "Expense
Advance"). Notwithstanding anything in this Agreement to the contrary, prior to a Change of Control (as defined in Section 9(a)) and except as set forth in Sections 1(b), 3 and 7,
Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with any Claim (i) initiated by Indemnitee against the Company or any director or officer of the
Company unless the Company has joined in or consented to the initiation of such Claim; (ii) made on account of Indemnitee's conduct which constitutes a breach of Indemnitee's duty of loyalty to
the Company or its stockholders or is an act or omission not in good faith or which involves intentional misconduct or a knowing violation of the law; or (iii) arising from the purchase and
sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). 

        (b)   Notwithstanding
the foregoing, (i) the indemnification obligations of the Company under Section 1(a) (other than the obligation of the Company to make
Expense Advances) shall not be applicable if the Reviewing Party (as defined in Section 9(f)) has determined (in a written opinion, in any case in which the special independent counsel referred
to in Section 2 is involved) that Indemnitee would not be permitted to be indemnified under applicable law, and (ii) the obligation of the Company to make an Expense Advance pursuant to
Section 1(a) shall be subject to the condition that the Company receives an undertaking in the form attached hereto as Exhibit A. Indemnitee's obligation to reimburse the Company for
Expense Advances shall be unsecured and no interest shall be charged thereon. If there has not been a Change in Control, the Reviewing Party shall be selected by the Board of Directors, and if there
has been such a Change in Control, the Reviewing Party shall be the special independent counsel referred to in Section 2. If there has been no determination by the Reviewing Party or if the
Reviewing Party determines that Indemnitee substantively would not be permitted to be indemnified in whole or in part under applicable law, Indemnitee shall have the right to commence litigation in
the Delaware Court seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof and the Company hereby consents to service of
process and to appear in any such proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee. Advances shall include any and all
reasonable Expenses incurred pursuing an action to enforce this right of advancement, so long as the claim for indemnification is not frivolous. The Company shall indemnify Indemnitee for Expenses
incurred by Indemnitee in connection with the successful establishment or enforcement, in whole or in part, by Indemnitee of Indemnitee's right to indemnification or advances. 

        2.    Change in Control.    The Company agrees that if there is a Change in Control of the
Company (other than a Change in Control which has been approved by two-thirds or more of the Company's Board of Directors who were directors immediately prior to such Change in Control)
then with respect to all matters thereafter arising concerning the rights of Indemnitee to indemnity payments and Expense Advances under this Agreement or any other agreement, the Bylaws or
Certificate of Incorporation now or hereafter in effect relating to Claims for Indemnifiable Events, the Company shall seek legal advice only from special independent counsel selected by Indemnitee
and approved by the Company (which approval shall not be unreasonably withheld or delayed) and who has not otherwise performed services for the Company within the last five years (other than in
connection with such matters) or for Indemnitee. In the event that Indemnitee and the Company are unable to agree on the selection of the special independent counsel, such special independent counsel
shall be selected by lot from among at least three law firms with offices in the State of Delaware having more than fifty attorneys resident in such offices, having a rating of "av" or better in the
then current Martindale Hubbell Law Directory and having attorneys which specialize in corporate law. Such selection shall be made in the presence of Indemnitee (and his legal counsel or either of
them, as Indemnitee may elect). Such counsel, among other things, shall, within 90 days of its retention, render its written opinion to 

2

 

the
Company and Indemnitee as to whether and to what extent Indemnitee would be permitted to be indemnified under applicable law. The Company agrees to pay the reasonable fees of the special
independent counsel referred to above and to fully indemnify such counsel against any and all expenses (including attorneys' fees), claims, liabilities, and damages arising out of or relating to this
Agreement or its engagement pursuant hereto. 

        3.    Indemnification for Additional Expenses.    The Company shall indemnify Indemnitee
against any and all expenses (including attorneys' fees) and, if requested by Indemnitee in writing, shall (within ten business days of such written request) advance such expenses to Indemnitee, which
are incurred by Indemnitee in connection with any Claim asserted against or action brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Company under this
Agreement or any other agreement, the Bylaws or Certificate of Incorporation now or hereafter in effect relating to Claims for Indemnifiable Events and/or (ii) recovery under any directors' and
officers' liability insurance policies maintained by the Company, regardless of whether the Company believes that Indemnitee is entitled to such indemnification, advance expense payment or insurance
recovery, as the case may be. The Indemnitee shall qualify for advances solely upon the execution and delivery to the Company of an undertaking providing that the Indemnitee undertakes to repay the
advance to the extent that it is ultimately determined that the Indemnitee is not entitled to be indemnified by the Company. 

        4.    Partial Indemnity.    If Indemnitee is entitled under any provisions of this Agreement
to indemnification by the Company of some but not all of the Expenses, liabilities, judgments, fines, penalties and amounts paid in settlement of a Claim, the Company shall nevertheless indemnify
Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or
otherwise in defense of any or all Claims relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee shall
be indemnified against all Expenses incurred in connection therewith. In connection with any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified
hereunder the burden of proof shall be on the Company to establish that Indemnitee is not so entitled. 

        5.    No Presumption.    For purposes of this Agreement, the termination of any action, suit
or proceeding by adverse judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that
Indemnitee did not meet any particular standard of conduct or have any particular belief. 

        6.    Notification and Defense of Claim.    Within 30 days after receipt by Indemnitee
of notice of the commencement of a Claim which may involve an Indemnifiable Event, Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, submit to the
Company a written notice identifying the proceeding, but the omission so to notify the Company will not relieve it from any liability which it may have to Indemnitee under this Agreement unless the
Company is materially prejudiced by such lack of notice. With respect to any such Claim as to which Indemnitee notifies the Company of the commencement thereof: 

        (a)   the
Company will be entitled to participate therein at its own expense; 

        (b)   except
as otherwise provided below, to the extent that it may wish, the Company jointly with any other indemnifying party similarly notified will be entitled to assume
the defense thereof, with counsel selected by the Board of Directors and satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense thereof, the
Company will not be liable to Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection with the defense thereof other than reasonable costs of
investigation or as otherwise provided below. Indemnitee shall have the right to employ its own counsel in such 

3

 

action,
suit or proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless
(i) the employment of counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the
Company and the Indemnitee in the conduct of the defense of such action, or (iii) the Company shall not in fact have employed counsel to assume the defense of such action, in each of which
cases the fees and expenses of counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any claim brought by or on behalf of the Company or as to
which Indemnitee shall have made the conclusion provided for in clause (ii) above; and 

        (c)   the
Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim effected without its written
consent. The Company shall not settle any action or claim in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee's written consent. Neither the Company nor
Indemnitee will unreasonably withhold or delay their consent to any proposed settlement. 

        7.    Non-exclusivity.    The rights of Indemnitee hereunder shall be in addition
to any other rights Indemnitee may have under the Certificate of Incorporation, the Bylaws, the DGCL, any agreement, a vote of the stockholders, a resolution of directors or otherwise. No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee
acting on behalf of the Company and at the request of the Company prior to such amendment, alteration or repeal. To the extent that a change in the DGCL (whether by statute or judicial decision), the
Certificate of Incorporation or the Bylaws permits greater indemnification by agreement than would be afforded currently under the Certificate of Incorporation, the Bylaws and this Agreement, it is
the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any
other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

        8.    Liability Insurance.    To the extent the Company maintains an insurance policy or
policies providing directors' and officers' liability insurance, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any Company director or officer. If, at the time the Company receives notice from any source of a Claim as to which Indemnitee is a party or a participant (as a witness or otherwise),
the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the
respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Claim in
accordance with the terms of such policies. In the event of a Potential Change in Control (as defined in Section 9), the Company shall maintain in force any and all insurance policies then
maintained by the Company providing directors' and officers' liability insurance, in respect of Indemnitee, for a period of six years thereafter and provided further, that in connection with a Change
in Control the Company shall ensure that said directors' and officers' tail liability insurance policy is at least comparable to the Company's existing insurance. The Company shall indemnify
Indemnitee for Expenses incurred by Indemnitee in connection with any successful action brought by Indemnitee for recovery under any insurance policy referred to in this Section 8 and shall
advance to Indemnitee the Expenses of such action in the manner provided in Section 3 above. 

4

 

        9.    Certain Definitions.    

        (a)   A
"Change in Control" shall be deemed to have occurred if: 

        (1)   any
person, as that term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act, becomes, is discovered to be, or files a report on
Schedule 13D or 14D-1 (or any successor schedule, form or report) disclosing that such person is a beneficial owner (as defined in Rule 13d-3 under the Exchange
Act or any successor rule or regulation), directly or indirectly, of securities of the Company representing 20% or more of the total voting power of the Company's then outstanding Voting Securities
(unless such person becomes such a beneficial owner in connection with the initial public offering of the Company); 

        (2)   during
any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and any new director whose
election by the Board of Directors or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either
were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; 

        (3)   the
Company, or any material subsidiary of the Company, is merged, consolidated or reorganized into or with another corporation or other legal person (an "Acquiring
Person") or securities of the Company are exchanged for securities of an Acquiring Person, and immediately after such merger, consolidation, reorganization or exchange less than a majority of the
combined voting power of the then outstanding securities of the Acquiring Person immediately after such transaction are held, directly or indirectly, in the aggregate by the holders of Voting
Securities immediately prior to such transaction; 

        (4)   the
Company, or any material subsidiary of the Company, in any transaction or series of related transactions, sells or otherwise transfers all or substantially all of
its assets to an Acquiring Person, and less than a majority of the combined voting power of the then outstanding securities of the Acquiring Person immediately after such sale or transfer is held,
directly or indirectly, in the aggregate by the holders of Voting Securities immediately prior to such sale or transfer; 

        (5)   the
Company and its subsidiaries, in any transaction or series of related transactions, sells or otherwise transfers business operations that generated two thirds or
more of the consolidated revenues (determined on the basis of the Company's four most recently completed fiscal quarters) of the Company and its subsidiaries immediately prior thereto; 

        (6)   the
Company files a report or proxy statement with the Securities and Exchange Commission pursuant to the Exchange Act disclosing that a change in control of the
Company has or may have occurred or will or may occur in the future pursuant to any then existing contract or transaction; or 

        (7)   any
other transaction or series of related transactions occur that have substantially the effect of the transactions specified in any of the preceding clauses in this
paragraph (ii). 

Notwithstanding
the provisions of Section 9(a)(1) or 9(a)(4), unless otherwise determined in a specific case by majority vote of the Board of Directors of the Company, a Change of Control shall
not be deemed to have occurred for purposes of this Agreement solely because (i) the Company, (ii) an entity in which the Company directly or indirectly beneficially owns 50% or more of
the voting securities or (iii) any Company sponsored employee stock ownership plan, or any other employee benefit plan of the Company, either files or becomes obligated to file a report
or a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or
item therein) under the Exchange Act, disclosing beneficial ownership by it of shares of stock of the Company, or because the Company reports that a Change in Control of the Company has or may have
occurred or will or may occur in the future by reason of such beneficial ownership. 

5

 

 

        (b)   A
"Claim" is any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, or any inquiry, hearing or investigation whether
conducted by the Company or any other party, whether civil, criminal, administrative, investigative, formal or informal or other. 

        (c)   "Expenses"
include attorneys' fees and all other costs, fees, expenses and obligations of any nature whatsoever paid or incurred in connection with investigating,
defending, being a witness in or participating in (including appeal), or preparing to defend, be a witness in or participate in any Claim relating to any Indemnifiable Event. 

        (d)   An
"Indemnifiable Event" is any event or occurrence (whether before or after the date hereof) related to the fact that Indemnitee is or was a director, officer,
employee, consultant, agent or fiduciary of or to the Company, or any subsidiary of the Company, or is or was serving at the request of the Company as a director, officer, employee, trustee, agent or
fiduciary of another corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, or by reason of anything done or not done by Indemnitee in any such capacity. 

        (e)   A
"Potential Change in Control" shall be deemed to have occurred if (i) the Company enters into an agreement, the consummation of which would result in the
occurrence of a Change in Control; (ii) any person (including the Company) publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change
in Control; (iii) any person, other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, who is or becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 9.5% or more of the combined voting power of the Company's then outstanding Voting Securities, increases such person's beneficial ownership of such securities by five percentage
points or more over the initial percentage of such securities; or (iv) the Board of Directors of the Company adopts a resolution to the effect that, for purposes of this Agreement, a Potential
Change in Control has occurred. 

        (f)    A
"Reviewing Party" is (i) the Company's Board of Directors (provided that a majority of directors are not parties to the particular Claim for which Indemnitee is
seeking indemnification) or (ii) any other person or body appointed by the Company's Board of Directors, who is not a party to the particular Claim for which Indemnitee is seeking
indemnification, or (iii) if there has been a Change in Control, the special independent counsel referred to in Section 2 hereof. 

        (g)   "Voting
Securities" means any securities of the Company which vote generally in the election of directors. 

        10.    Amendments, Termination and Waiver.    No supplement,
modification, amendment or termination of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 

        11.    Contribution.    If the indemnification provided in
Sections 1 and 3 is unavailable, then, in respect of any Claim in which the Company is jointly liable with Indemnitee (or would be if joined in the Claim), the Company shall contribute to the
amount of Expenses, judgments, fines, penalties and amounts paid in settlement as appropriate to reflect: (i) the relative benefits received by the Company, on the one hand, and Indemnitee, on
the other hand, from the transaction from which the Claim arose, and (ii) the relative fault of the Company, on the one hand, and of Indemnitee, on the other, in connection with the events
which resulted in such Expenses, judgments, fines, penalties and amounts paid in settlement, as well as any other relevant equitable considerations. The relative fault of the 

6

 

Company,
on the one hand, and of Indemnitee, on the other, shall be determined by reference to, among other things, the parties' relative intent, knowledge, access to information and opportunity to
correct or prevent the circumstances resulting in such Expenses and Liabilities. The Company agrees that it would not be just and equitable if contribution pursuant to this Section 11 were
determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations described in this Section 11. 

        12.    Subrogation.    In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to
secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 

        13.    No Duplication of Payments.    The Company shall not be liable
under this Agreement to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under insurance policy, Certificate of
Incorporation or otherwise) of the amounts otherwise indemnifiable hereunder. 

        14.    Binding Effect.    This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to
all or substantially all of the business and/or assets of the Company, spouse, heirs, and personal and legal representatives. This Agreement shall continue in effect regardless of whether Indemnitee
continues to serve as a director or officer (or in one of the capacities enumerated in Section 9(d) hereof) of the Company or of any other enterprise at the Board of Director's request. 

        15.    Severability.    The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or
otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law. 

        16.    Applicable Law and Consent to Jurisdiction.    This Agreement
and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. The
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware
Court and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court
for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, irrevocably, to the extent such party is not a resident of the State of Delaware, as
its agent in the State of Delaware as such party's agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as
if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive,
and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 

        17.    Identical Counterparts.    This Agreement may be executed in
one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by
the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement. 

[Signature
Pages Follow] 

7

 

        The
parties hereto have executed this Agreement as of the date set forth on the first page of this Agreement. 

 

 

					
	 
	 	 
	 	 

	 
	 	 ANACOR PHARMACEUTICALS, INC.
	 
	 	 By:
	 	   

 
	 
	 	Name:	 	 

 
	 
	 	Title:	 	  

 
	 
	 	Address:	 	1020 East Meadow Circle

Palo Alto, CA 94303
	 
	 	    

 
	 
	 	 Name	 	 

 

 SIGNATURE PAGE TO INDEMNIFICATION AGREEMENT

ANACOR PHARMACEUTICALS, INC.

8

 
 FORM OF UNDERTAKING  

        The undersigned is the Indemnitee as defined in that certain Indemnification Agreement
dated                         between the
undersigned and Anacor Pharmaceuticals, Inc. (the "Indemnification Agreement"). Capitalized terms not otherwise defined herein shall have the meanings given in such agreement. 

        As
a condition to receiving Expense Advances, Indemnitee agrees that, if, when and to the extent that a final judicial determination is made that Indemnitee would not be permitted to be
so indemnified under applicable law, the Indemnitee shall reimburse the Company for all amounts theretofore paid by the Company to Indemnitee pursuant to the Indemnification Agreement; provided,
however, that if Indemnitee has commenced legal proceedings in the Court of Chancery of the State of Delaware (the "Delaware Court") to secure a determination that Indemnitee should be indemnified
under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be
required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). 

 

 

					
	 
	 	 
	 	 

	 
	 	  

 
	 
	 	Name	 	 

 

 9

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