Document:

Exhibit 10.6

 

June 29, 2021

Gilead
Sciences, Inc.

333 Lakeside Drive

Foster City, CA 94404

 

FS
Development Corp. II

900
Larkspur Landing Circle, Suite 150

Larkspur,
CA 94939

 

		Re:	Letter
Agreement re: PIPE Investment

 

Ladies
and Gentlemen:

 

FS Development Corp. II, a
Delaware corporation (“FSII”) desires for Gilead Sciences, Inc. (“Gilead”) to purchase
from FSII, and Gilead desires to purchase from FSII, shares of FSII Class A Common Stock (the “Shares”) pursuant
to that certain Subscription Agreement, dated as of June 29, 2021 (the “Subscription Agreement”). In connection
therewith, and as an inducement to Gilead, FSII hereby agrees to grant Gilead the rights set forth in this letter agreement.

 

Gilead shall, beginning upon
the Effective Time of the Agreement and Plan of Merger, dated as of June 29, 2021, by and between Pardes Biosciences, Inc., a Delaware
corporation, FSII and the other parties thereto (the “Merger Agreement”), have the right to designate one representative
(the “Observer Representative”), which individual shall be reasonably acceptable to the Board (as defined below)
who shall be entitled to attend in a non-voting capacity, in person, electronically or telephonically, all meetings of the board of directors
of PubCo (the “Board”) and the science & technology committee (the “S&T Committee”)
(excluding, for the avoidance of doubt, all other committee meetings and executive sessions of the Board or any committee, unless asked
or otherwise permitted by PubCo) following the Effective Time (such post-merger company hereinafter referred to as “PubCo”),
and in connection therewith the Observer Representative shall receive advance notice of each such meeting and copies of all materials
provided to the Board members in connection with each such Board meeting, in each case, to the same extent as provided to the Board members.
In no event shall the Observer Representative (i) be deemed to be a member of the Board; or (ii) except for (and without limitation of)
the obligations expressly set forth in this letter agreement, have or be deemed to have, or otherwise be subject to, any fiduciary duties
to PubCo or its stockholders.

 

Notwithstanding
the foregoing, the Observer Representative shall not be entitled to attend Board or S&T Committee meetings, or portions thereof,
and shall not receive Board or S&T Committee materials (or portions thereof), if the PubCo Chief Executive Officer and Board Chair
(or Board Chair’s designee) conclude, acting in good faith, that such exclusion is required (i) after consultation with counsel,
to preserve the attorney-client or other privilege, (ii) due to PubCo’s obligations with respect to confidential or proprietary
information of third parties or to comply with applicable law, (iii) due to potential conflicts between the interests of PubCo and interests
of Gilead, (iv) because the excluded subject matter relates to PubCo’s patents, patent strategy or trade secrets, (v) because the
excluded subject matter relates to PubCo’s corporate or business development activities, including, but not limited to, licensing,
partnerships, or collaborations, and the exclusion is either due to such subject matter including competitively sensitive information
with respect to Gilead or is necessary to avoid an actual or potential conflict of interest or disclosure that is restricted by law or
an agreement to which PubCo is bound or (vi) because the excluded subject matter relates to PubCo’s research or development in
areas which Gilead has or intends to have a program which would be or would be reasonably expected to be competitive with PubCo; provided,
that Gilead and PubCo (or Pardes Biosciences, Inc. (“Pardes”), if prior to the Effective Time) will work in
good faith to put in place reasonable and expeditious procedures for determining when a program is reasonably expected to be competitive.

 

     

     

    

 

Gilead’s
rights hereunder shall be conditioned upon Gilead and each Observer Representative agreeing, by written agreement in form and substance
reasonably satisfactory to PubCo and Gilead, to treat as confidential all information provided to the Observer Representative pursuant
to this letter agreement and to restrict the use of the information provided to the Observer Representative to be solely to manage and
evaluate Gilead’s investment in PubCo or to enable PubCo and Gilead to evaluate, discuss, negotiate and possibly enter into and
execute a business transaction involving each other.

 

The
rights set forth in this letter will terminate on the earliest to occur of (1) immediately prior to the closing of an acquisition of
PubCo (by way of merger, stock purchase or otherwise) (other than the Merger, or other than for the purposes reincorporation of PubCo
in a different state or the formation of a holding company that will be owned exclusively by the PubCo’s stockholders and will
hold all of the outstanding shares of capital stock of PubCo’s successor), (2) three (3) years following the date hereof, (3) the
transfer, sale, or other disposition of over 5% of the Shares originally held by Gilead, except to a controlled Affiliate (as defined
in the Merger Agreement) of Gilead, or (4) Gilead, a controlled Affiliate of Gilead or any of their respective representatives directly
or indirectly take any of the actions set forth on Schedule 1 as determined by the PubCo Board in its sole discretion.

 

Furthermore,
FSII, PubCo and/or Pardes (as applicable) shall, until the earlier of three (3) years following the date hereof or the date this letter
agreement terminates, provide Gilead with written notice within five (5) business days (the “PubCo Notice”)
of (a) a decision by the Board of Directors or Executive Officers (as defined below) of FSII, PubCo and/or Pardes (as applicable) to
commence a process to effectuate a potential Corporate Transaction (as defined below) or to solicit offers with respect to a potential
Corporate Transaction or (b) a decision of the Board of Directors or Executive Officers of FSII, PubCo and/or Pardes (as applicable)
to pursue or negotiate an offer with a third party to effect a potential Corporate Transaction following its receipt of an offer from,
or providing an offer to, such third party. A “Corporate Transaction” means any exclusive outlicense, collaboration, program-related
option grant, joint venture, acquisition of PubCo, or similar business development-related transaction relating to the lead program of
PBI-0451 or the backup program Gen 2 (collectively, a “Corporate Transaction”). ”Executive
Officers” means Chief Executive Officer, Chief Operating Officer or Chief Business Development Officer (or individual acting
in a similar capacity, if there is no such officer). For the avoidance of doubt, the foregoing provisions shall not require the Board
of Directors of FSII, PubCo and/or Pardes (as applicable) to accept any proposal for a Corporate Transaction, or to consummate a Corporate
Transaction after providing the PubCo Notice.  The information provided by FSII, PubCo and/or Pardes (as applicable) to Gilead under
this paragraph will be deemed Confidential Information of Pardes under the Mutual Confidential Disclosure Agreement between Pardes and
Gilead, dated December 15, 2020 (the “CDA”). Pardes and Gilead agree that in connection with this letter agreement,
the CDA is amended as follows: the defined term “Company” is hereby amended to include Pardes Biosciences, Inc. and its Affiliates
(as defined in the CDA). Pardes and Gilead also agree to enter into a separate amendment of the CDA promptly following the date hereof
to amend the term set forth in Section 8 of the CDA to be extended to three years following the date of this letter agreement, with the
survival period to remain unchanged.

 

    2

     

    

 

Any
notice pursuant to the preceding paragraph shall be in writing. Such notice shall be deemed duly given (i) when delivered personally
to the recipient, (ii) when sent by electronic mail, on the date of transmission to such recipient, (iii) one (1) business day after
being sent to the recipient by reputable overnight courier service (charges prepaid), or (iv) five (5) business days after being mailed
to the recipient by certified or registered mail, return receipt requested and postage prepaid, and, in each case, addressed as follows:

 

If
to FSII:

 

FS
Development Corp. II

900
Larkspur Landing Circle, Suite 150

Larkspur,
CA 94939 

Attn:
Dennis Ryan

Email:
dennis@foresitecapital.com

 

with
a copy (which shall not constitute notice) to:

 

White
& Case LLP

1221
Avenue of the Americas

New
York, New York 10020

Attn:
Joel L. Rubinstein, Esq.

Email:
joel.rubinstein@whitecase.com

 

If
to Pardes or PubCo:

 

Pardes
Biosciences, Inc.

2173
Salk Ave., Suite 250

PMB#052,
Carlsbad, CA 92008

Attn.:
Uri A. Lopatin, M.D., Chief Executive Officer

Email:
Uri@pardesbio.com

 

with
a copy (which shall not constitute notice) to:

 

Goodwin
Procter LLP

601
Marshall Street

Redwood
City, CA 94063

Attn.:
Deepa Rich

Email:
DRich@goodwinlaw.com

 

If
to Gilead:

 

Gilead
Sciences, Inc.

333
Lakeside Dr.

Foster
City, California 94404

Attn:
Corporate Development

 

with
a copy (which shall not constitute notice) to:

 

Gilead
Sciences, Inc.

333
Lakeside Dr.

Foster
City, California 94404

Attn:
Corporate Legal

Email:
generalcounsel@gilead.com

 

Hogan
Lovells US LLP

390
Madison Avenue

New
York, New York 10017

Attn:
Richard Aftanas, Esq.

Email:
raftanas@hoganlovells.com

 

Capitalized
terms not defined in this letter agreement shall have the meanings set forth in the Merger Agreement. This letter agreement may be executed
in any number of counterparts (including electronically or by facsimile), each of which shall be deemed to be an original, and all of
which, taken together, shall constitute one and the same instrument. This letter agreement shall be subject to the law of Delaware and
any disputes shall be governed by the exclusive jurisdiction of the state and federal courts in Delaware.

 

[Signature
Page Follows.]

 

    3

     

    

 

If
the above correctly reflects the understanding and agreement of the parties with respect to the matters set forth herein, please so confirm
by signing this letter below.

 

ACKNOWLEDGED
AND AGREED AS OF THE DATE FIRST WRITTEN ABOVE:

 

	Gilead Sciences, Inc.	 
	 	 	 
	By:	/s/ Andrew Dickinson	 
	Name: 	Andrew Dickinson	 
	Title:	Executive Vice President and Chief Financial Officer	 
	 	 	 
	FS DEVELOPMENT CORP. II	 
	 	 	 
	By:	/s/ Dennis Ryan	 
	Name:	Dennis Ryan	 
	Title:	Chief Financial Officer	 
	 	 	 
	Agreed and Acknowledged:	 
	 	 	 
	PARDES BIOsciences, INC.	 
	 	 	 
	By:	/s/ Uri A. Lopatin	 
	Name:	Uri A. Lopatin, M.D.	 
	Title:	Chief Executive Officer	 

 

[Signature
Page to the Letter Agreement re: PIPE Investment dated June 29, 2021]

 

     

     

    

 

Schedule
1

 

Prohibited
Actions

 

1.
Make any statement or proposal to the Board, any of PubCo’s representatives or any of PubCo’s stockholders regarding, or
make any public announcement, proposal, or offer (including any “solicitation” of “proxies” as such terms are
defined or used in Regulation 14A of the Securities Exchange Act of 1934, as amended) with respect to, or otherwise solicit, seek, or
offer to effect (including, for the avoidance of doubt, indirectly by means of communication with the press or media): (a) any business
combination, merger, tender offer, exchange offer, sale of all or substantially of its assets or similar transaction involving PubCo
or any of its subsidiaries (which, for clarity, does not include licensing, partnership, or collaboration transactions), (b) any restructuring,
recapitalization, liquidation, or other extraordinary transaction involving PubCo or any of its subsidiaries, (c) any acquisition of
(or proposal or agreement to acquire) any of FSII’s loans, debt securities, or equity securities of PubCo or any of its subsidiaries,
or rights or options to acquire interests in any of PubCo’s loans, debt securities, or equity securities, except Gilead may beneficially
own up to 5% of each class of PubCo’s outstanding loans, debt securities, and equity securities (inclusive of the Shares) and may
own an amount in excess of such percentage solely to the extent resulting exclusively from actions taken by PubCo, (d) any proposal to
seek representation on PubCo’s Board or (d) proxies or consents to vote any voting securities of PubCo or any of its subsidiaries
with respect to any of the foregoing.

 

2.
Instigate, encourage, or assist any third party (including forming a “group” with any such third party) to do, or enter into
any discussions or agreements with any third party with respect to, any of the actions set forth in Paragraph 1 above.

 

3. Request
or take any action that would reasonably be expected to require PubCo or any of its affiliates to make a public announcement regarding
any of the actions set forth of this Schedule 1.Exhibit 4.1

 

NUMBER UNITS

U-___________

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

CUSIP ___________

 

ALPHA STAR ACQUISITION CORPORATION

 

UNITS CONSISTING OF ONE SHARE OF ORDINARY SHARE,
ONE-HALF OF ONE

REDEEMABLE WARRANT AND ONE RIGHT

 

THIS CERTIFIES THAT                         is
the owner of              Units.

 

Each Unit of Alpha Star Acquisition Corporation,
Cayman Islands exempt company (the “Company”) (“Unit”) consists of one (1) ordinary share,
par value $0.001 per share (“Ordinary Share”), one redeemable warrant (each whole warrant, a “Warrant”)
and one (1) right (“Right”). Each whole Warrant entitles the holder to purchase one-half of one (1) Ordinary
Share (subject to adjustment) for $11.50 per share (subject to adjustment). Only whole warrants are exercisable. Each Right entitles the
holder to receive one-tenth (1/10) of one Ordinary Share. Each Warrant will become exercisable on the later of (i) the Company’s
completion of a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination
with one or more businesses (each a “Business Combination”), and (ii) twelve (12) months from the effective
date of the registration statement on Form S-1, File No. 333-_______, and will expire unless exercised before 5:00 p.m., New
York City Time, on the date that is five (5) years after the date on which the Company completes its initial Business Combination,
or earlier upon redemption or liquidation. The Ordinary Shares, Warrants and Rights comprising the Units represented by this certificate
are not transferable separately prior to [ ], 2021, unless Ladenburg Thalmann & Co., Inc. elects to allow earlier separate
trading, subject to the Company’s filing of a Current Report on Form 8-K with the Securities and Exchange Commission containing
an audited balance sheet reflecting the Company’s receipt of the gross proceeds of the offering and issuing of a press release announcing
when separate trading will begin. The terms of the Warrants and Rights are governed by a Warrant Agreement dated as of            ,
2021, and a Rights Agreement dated as of            , 2021, between the Company
and VStock Transfer LLC, as Warrant Agent and Right Agent, respectively, and are subject to the terms and provisions contained therein,
all of which terms and provisions the holder of this certificate consents to by acceptance hereof. Copies of the Warrant Agreement and
the Rights Agreement are on file at the office of the Warrant Agent and Right Agent at _______________________________________, and are
available to any Warrant holder and Right holder on written request and without cost.

 

This certificate is not valid unless countersigned
by the Transfer Agent and Registrar of the Company.

 

This certificate shall be governed by and construed
in accordance with the internal laws of the Cayman Islands.

 

Witness the facsimile signature of its duly authorized
officers.

 

	Secretary	 	Chief Executive Officer
	 	 	 
	 	 	 

 

     

     

    

 

ALPHA STAR ACQUISITION CORPORATION

 

The Company will furnish without charge to each
unitholder who so requests, a statement of the powers, designations, preferences and relative, participating, optional or other special
rights of each class of shares or series thereof of the Company and the qualifications, limitations, or restrictions of such preferences
and/or rights.

 

The following abbreviations, when used in the inscription
on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	TEN COM— as tenants in common	UNIF GIFT MIN ACT	 
	 	 	 	Custodian	 
	 	 	(Cust)	 	(Minor)
	TEN ENT —as tenants by the entireties	 	 	 
	 	 	Under Uniform Gifts to Minors
	 	 
	JT TEN —as joint tenants with right of survivorship and not as tenants in common	 	Act	 
	 	 	 	(State)

 

Additional abbreviations may also be used though
not in the above list.

 

Additional abbreviations may also be used though
not in the above list.

 

For value received,               hereby
sell, assign and transfer unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

	 	 
	 	 
	(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE):
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

________ Units represented by the within Certificate, and do hereby
irrevocably constitute and appoint

 

____________________________ Attorney to transfer the said Units on
the books of the within named Company with full power of substitution in the premises.

 

Dated: ___________________________

 

Notice: The signature to this assignment must correspond with
the name as written upon the face of the certificate in every particular, without alteration or enlargement or any change whatever.

 

Signature(s) Guaranteed:

 

	 	 

 

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE

 

     

     

    

 

GUARANTOR INSTITUTION (BANKS,

STOCKBROKERS,

SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS

WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM,
PURSUANT

 

TO S.E.C. RULE 17Ad-15 (OR ANY SUCCESSOR RULE UNDER THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED).

 

In each case, as more fully described in the Company’s final
prospectus dated            , 2021, the holder(s) of this certificate
shall be entitled to receive a pro-rata portion of certain funds held in the trust account established in connection with the Company’s
initial public offering only in the event that (i) the Company redeems the Ordinary Shares sold in its initial public offering and
liquidates because it does not consummate an initial business combination by            ,
202_, (ii) the Company redeems Ordinary Shares sold in its initial public offering in connection with a shareholder vote to amend
the Company’s amended and restated memorandum and articles of association to modify the substance or timing of the Company’s
obligation to redeem 100% of the Ordinary Share if it does not consummate an initial business combination by ______________, 202_, or
(iii) if the holder(s) seek(s) to redeem for cash his, her or its respective Ordinary Shares in connection with a tender
offer (or proxy solicitation, solely in the event the Company seeks shareholder approval of the proposed initial business combination)
setting forth the details of a proposed initial business combination. In no other circumstances shall the holder(s) have any right
or interest of any kind in or to the trust account.

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