Document:

fgen-ex101_12.htm

 

Exhibit 10.1

 

May 7, 2020

Thane Wettig

[PRIVATE ADDRESS]

Dear Thane,

FibroGen, Inc. is pleased to offer you the position of Chief Commercial Officer reporting to Enrique Conterno, Chief Executive Officer. The effective date ("Effective Date") of your employment will be set, as mutually agreed upon in advance with FibroGen, Inc. (“FibroGen”) and confirmed with Human Resources.

This offer of employment is made contingent upon successful completion of FibroGen’s background check or upon completion of all required documentation that will be made available to you on the Effective Date or by your intended start date. This includes verification of the information provided online and your employment application. If necessary, you will be contacted to resolve any discrepancies in the verification of information. Your employment hire date will be determined after the completion of the background check process and your signed acceptance of this offer.

The terms of this offer of employment are as follows:

	
1.
	
Compensation. FibroGen will pay you a starting annual salary of $500,000, payable in semi-monthly installments on our regular paydays in accordance with FibroGen's standard payroll policies. Your salary will begin as of the Effective Date. The position is classified as exempt and therefore not eligible for overtime pay. The first and last payment by FibroGen to you will be adjusted, if necessary, to reflect a commencement or termination date other than the first or last working day of a pay period.

	
2.
	
Signing Bonus. FibroGen will pay you a sign-on bonus in the amount of $150,000 (subject to applicable payroll taxes and withholdings) paid out after you have completed 60 days of employment.

	
3.
	
Stock Options and Restricted Stock Units. Pending approval by the FibroGen Compensation Committee, you will be granted the following equity incentive grant(s) pursuant to the terms and conditions of the Equity Plan effective on the date of acceptance of this letter (the “Equity Plan”), as may be amended or modified from time to time:

	
 
	
•
	
a stock option to purchase 90,000 shares of FibroGen's Common Stock with an exercise price set at the fair market value on the date of grant (“Stock Options”); and

	
 
	
•
	
a grant of 30,000 restricted stock units relating to shares of FibroGen’s Common Stock (“RSUs”).

The actual number of shares subject to the grant hereunder may be adjusted, if required, for events such as stock splits, stock dividends, etc. pursuant to the Equity Plan. The Stock Options and RSUs will vest according to the schedule set forth in the Equity Plan.

	
4.
	
Bonus Plan. You will be eligible to participate in FibroGen’s Incentive Compensation Plan (the “Bonus Plan”) adopted by FibroGen for its employees on such terms as FibroGen's Board of Directors (the "Board") may determine in its discretion.

The target bonus for your level is 50%. Under the terms of the Plan, both corporate and individual performance is assessed annually and subject to final approval by the Company’s Board of Directors. Employees hired during the course of a year will have a pro-rated bonus provided they commence their employment on or before September 30th of a calendar year. To remain eligible, employees must maintain satisfactory performance and be in an active status on the day of payment.  Payments are expected to occur no later than the 15th of March in the year following the performance cycle.

	
5.
	
Relocation. FibroGen will offer you Relocation assistance in the amount of $75,000 (subject to applicable payroll taxes and withholdings) once you acknowledge the services being provided to you via our third-party vendor NuCompass.

	
6.
	
Benefits. During the term of your employment, you will be eligible to participate in FibroGen’s benefits program, which may include FibroGen's standard vacation benefits and other employee benefits such as medical, vision and dental health insurance, covering employees and officers. These benefits may be modified or subject to change from time to time. A copy of FibroGen's current benefits summary has been provided to you.

 

 

 

 

 

	
7.
	
Employment Eligibility. You will also be required to sign the Employment Eligibility Verification (Form I- 9). (You will need to complete and return Section One of Form I-9 along with your signed offer letter). On your first day of employment, please bring the necessary original documents that establish your identity and employment eligibility to work in the United States. Acceptable documents are listed on the reverse side of Form I-9. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated.

	
8.
	
Proprietary Information. You will abide by FibroGen’s strict company policy that prohibits any new employee from using or bringing with them from any prior employer any proprietary information, trade secrets, proprietary materials or processes of such former employers. Moreover, because FibroGen’s proprietary information is extremely important, this offer of employment is expressly subject to your execution of the enclosed Confidential Information, Secrecy and Invention Agreement for Employees.

	
9.
	
At Will Employment. You should be aware that your employment with FibroGen is for no specified period and constitutes "at-will" employment. As a result, both FibroGen and you are free to terminate the employment relationship at any time, for any reason or for no reason, and with or without advance notice. The changing needs of FibroGen could also result in changes to certain aspects of your employment, such as compensation, responsibilities, location, etc. These provisions expressly supersede any previous representations, oral or written. Your at-will employment cannot be modified or amended except by written agreement signed by both you and the Chief Executive Officer of FibroGen.

	
10.
	
Arbitration. Any dispute or claim, including all contract, tort, discrimination, and statutory claims, arising under or relating to your employment or termination of your employment with FibroGen (“Arbitrable Claim(s)”) shall be resolved by arbitration. “Arbitrable Claims” shall not include: (1) claims under applicable workers’ compensation law, (2) unemployment insurance claims, and (3) any disputes or claims relating to or arising out of the misuse or misappropriation of trade secrets. You and FibroGen hereby waive any rights each may have to a jury trial in regard to Arbitrable Claims. Arbitration for Arbitrable Claims will be conducted by the American Arbitration Association (“AAA”) in San Francisco (or other mutually agreed upon city) under the Employment Arbitration Rules and Mediation Procedures (“AAARules”).TheAAARulesareavailableat https://www.adr.org/sites/default/files/EmploymentRules_Web_0.pdf, or can be obtained by contacting the FibroGen Human Resources department or by calling AAA at 800-778-7879. FibroGen will pay the fees and costs of the arbitrator. The arbitrator shall have the same authority as a court to award equitable relief, damages, costs, and fees (excluding the costs and fees for the arbitrator) as provided by law for the particular claims asserted. The arbitrator shall also have exclusive authority to rule on his or her own jurisdiction, including any objections with respect to the existence, scope, enforceability or validity of the arbitration agreement. Such arbitration shall be final and binding on the parties and shall be the exclusive remedy for Arbitrable Claims.

Unless otherwise notified by FibroGen, this offer of employment is effective for five business days from the date of this letter. However, if you have any questions regarding the above provisions including the arbitration provision, please do not hesitate to contact us.

In the event of conflict between the terms contained in this offer letter and any other document, the terms of this offer letter (including any amendment to this letter) shall control. FibroGen reserves the right to amend the terms contained in this offer letter from time to time.

We look forward to your joining our team at FibroGen. Sincerely,

 

	
	
/s/ Richard Farley

	
Richard Farley

	
Vice President, Human Resources

	
 

	
 

	
/s/ Thane Wettig

	
Thane Wettig

	
 

	
June 22, 2020

	
Intended Start Date

 

	
Enclosures:
	
Benefits Overviewfgen-ex102_89.htm

 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would likely cause competitive harm to the company if publicly disclosed.

Exhibit 10.2

Confidential

 

Amendment No. 1 To Master Supply Agreement

 

This Amendment No. 1 (the “First Amendment”) is effective as of May 11, 2020 (the “First Amendment Effective Date”) by and among: FibroGen, Inc. and its Affiliates (collectively, “FibroGen”); and Shanghai SynTheAll Pharmaceutical Co., Ltd (d/b/a “上海合全药业有限公司”) (“Shanghai STA”); and STA Pharmaceutical Hong Kong Limited (d/b/a “合全药业香港有限公司”) (“STA Hong Kong”) (STA Hong Kong, Shanghai STA, and each of their Affiliates are collectively referred to as “STA”).  This First Amendment amends the Master Supply Agreement entered into by and between STA and FibroGen on March 2, 2020 (the “Master Supply Agreement”). STA and FibroGen shall be referred to individually herein as a “Party”, and collectively as, the “Parties”. The Master Supply Agreement and this First Amendment are collectively, “the Agreement”.  

 

Whereas, the Parties desire to amend the Master Supply Agreement to allow for the Parties’ agreement on Work Orders for Other Services (both terms defined hereunder), including development related work hereunder; and

 

Whereas, as further set forth in Sect. 5.1.4, the Parties agree that if any Product resulting from such Work Orders for Other Services can be used commercially or converted into another Product at a later date, FibroGen will be given an applicable rebate or credit based on that Product that is the result of the conversion to be used later; and 

 

Whereas, the Parties desire to continue the relationship as set forth under the Master Supply Agreement as amended by this First Amendment.  

 

Now, Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

	
 
	
(1)
	
Unless otherwise defined herein, all capitalized terms and phrases used in this First Amendment shall have the meaning ascribed to them in the Master Supply Agreement.

 

	
 
	
(2)
	
Sect. 2.1.1 of the Master Supply Agreement is hereby deleted in its entirety and replaced with the following:

 

“This Agreement establishes the general terms and conditions applicable to STA’s manufacturing and supply of Products to FibroGen. This Agreement is intended to allow the Parties to contract for the (i) performance of manufacturing and supply of one or more Products through the execution of separate written orders or Forecasts, and (ii) performance of Other Services (defined in Sect. 2.1.2), in accordance with and consistent with this Agreement. Each Binding Forecast, Work Order or Stockpile Order shall become part of and incorporated by reference into this Agreement as a separate written order and each Binding Forecast, Work Order or Stockpile Order shall be subject to all of the terms and conditions of this Agreement. Any changes to a Binding Forecast, Work Order or Stockpile Order shall be agreed to in a signed writing by the Parties prior to any such changes being effective.”

 

1

A01/STA Master Supply Agreement

C: 00031947.1

 

	
 
	
(3)
	
All other references to “Binding Forecast or Stockpile Order”, “Forecast or Stockpile Order”, “Forecasts and Stockpile Orders” in the Master Supply Agreement shall be deemed to include “Work Order(s)” as the particular context requires. 

 

	
 
	
(4)
	
Sect. 2.1 of the Master Supply Agreement is hereby amended to include the following new provision, Section 2.1.2 (Other Services):

 

“2.1.2Other Services.  On an as needed basis, through the mutual execution of Work Orders (defined in Sect 2.1.3 of this Agreement) by the Parties, STA shall provide other manufacturing services related to validation or qualification to ensure compliance with the Manufacturing Process of Product under this Agreement and supply of Products manufactured in such validation and qualification(‘Other Services’).  Each Work Order for Other Services shall be governed by the terms and conditions of this Agreement (including the Draw-Down Prices set forth on Exhibit C), as also described on Sect. 5.1.4 hereof.”

 

	
 
	
(5)
	
Sect. 2.1 of the Master Supply Agreement is hereby further amended to include the following new provision, Section 2.1.3 (Work Orders):

 

“2.1.3Work Orders. Each Work Order for Other Services shall set forth the following as applicable: (a) Description of Other Services to be provided or description and quantity of Product ordered in metric tons (MT) or kilogram (kg) to be manufactured and supplied by STA; (b) Description of output, deliverables, or documentation to be delivered by STA as a result of such Other Services; (c) Date for completion of the Other Services by STA, and other relevant timeframes; (d) FibroGen Materials being provided by or on behalf of FibroGen, (e) Storage/handling; (f) Shipping terms; (g) STA Facility where Other Services will be performed; (h) STA and FibroGen contacts for Work Order, (i) Compensation, payment/payment schedule, and invoicing; and (j) any other details relevant to the Work Order.”  

 

	
 
	
(6)
	
In order to expand the definition of “Manufacturing Services” to include “Other Services”, the first sentence of Section 2.3.2 of the Master Supply Agreement is hereby deleted in its entirety and replaced with the following:

 

“Such manufacture and supply of Product and such provision of other deliverables, such as the Batch Document Package, and Other Services  (collectively, the “Manufacturing Services”) shall be performed in a professional manner consistent with industry standards and in compliance with the terms and conditions of this Agreement, the Quality Agreement, the Specifications, and all Applicable Laws.”

 

	
 
	
(7)
	
Section 5.1 is hereby amended to include a new Section 5.1.4 (Draw-Down Prices and Credit for Work Orders) as follows: 

 

“5.1.4Draw-Down Prices and Credit for Work Orders. The Parties agree that if any Product resulting from the Work Orders for Other Services executed under this Master Supply Agreement can be used commercially or converted into another Product at a later date, FibroGen will be given an applicable rebate or credit based on that Product that is the result of the conversion to be used later. For example, once STA produces Xkg of FG-[*] under a Work Order, and FibroGen pays for FG-[*] to be converted into FG-[*], FibroGen would not expect that FG-[*] be replenished and would therefore receive a reduction in price for the FG-[*].  

2

A01/STA Master Supply Agreement

C: 00031947.1

 

 

For FG-6343 that are qualified on commercial scale that may be transferred into the normal ongoing manufacturing, the portion of the costs shall be deducted from normal delivery costs for FG-[*] or FG-[*], subject to the pricing and conversion costs set forth on Exhibit C, and as further described on Exhibit C. To further elaborate, once FibroGen pays for a separate Work Order for making FG-[*] (to qualify a new source of FG-[*]), FibroGen shall be deemed to have paid for FG-[*].  When the Parties move forward to [*], FibroGen shall only be responsible for paying [*].”

 

	
 
	
(8)
	
Exhibit C is hereby amended to state the following: “If FibroGen provides FG-[*] and STA manufactures FG-[*], the cost to convert Product (once it is qualified) to FG-[*] or FG-[*] shall be the prices set forth on this Exhibit C.”

 

	
 
	
(9)
	
This First Amendment, together with the Master Supply Agreement, contains the entire understanding of the Parties with respect to the subject matter hereof.  Except as otherwise provided herein, the Master Supply Agreement has not been modified or amended and remains in full force and effect.  All express or implied agreements and understandings, either oral or written, heretofore made with respect to subject matter herein are expressly superseded in this First Amendment.

 

	
 
	
(10)
	
This First Amendment may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Counterparts may be signed and delivered by facsimile and/or via portable document format (pdf), each of which shall be binding when sent.

 

IN WITNESS WHEREOF, the Parties have executed this First Amendment to the Master Supply Agreement as of the First Amendment Effective Date.

 

					
	
STA Pharmaceutical Hong Kong Limited
	
 
	
FIBROGEN, INC.

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Fu Xiaoyong
	
 
	
By:
	
/s/ Michael Martinelli

	
Name:
	
Fu Xiaoyong
	
 
	
Name:
	
Michael Martinelli

	
Title:
	
SVP
	
 
	
Title:
	
SVP Tech Dev

	
Date:
	
6/3/2020 6:04:49 PM PDT
	
 
	
Date:
	
6/3/2020 7:17:51 PM PDT

	
 
	
 
	
 
	
 

	
SHANGHAI SYNTHEALL PHARMACEUTICAL CO., LTD. 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
By: 
	
/s/ Fu Xiaoyong
	
 
	
 
	
 

	
Name:
	
Fu Xiaoyong
	
 
	
 
	
 

	
Title: 
	
SVP
	
 
	
 
	
 

	
Date:
	
6/3/2020 6:04:49 PM PDT
	
 
	
 
	
 

3

A01/STA Master Supply Agreement

C: 00031947.1

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