Document:

Exhibit

Exhibit 10.4

 
	
	
	 

	COLLATERAL ACCESS AGREEMENT

	 

April 27, 2018

THIS COLLATERAL ACCESS AGREEMENT (this "Agreement") is made by and among, 2400 XENIUM, LLC, a Minnesota limited liability company (the “Landlord”), CHRISTOPHER & BANKS CORPORATION, a Delaware corporation (the “Tenant”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as lender (in such capacity, the “Lender”) for the benefit of itself and a syndicate of revolving lenders and certain other credit parties (together with the Administrative Agent, collectively, the “Credit Parties”) (each of the Landlord, the Tenant and the Lender a "Party" and collectively, the "Parties")..
WITNESSETH:

WHEREAS, the Lender is party to a loan arrangement (the “Loan Arrangement”) with, among others, the Tenant.  To secure the obligations of the Tenant under the Loan Arrangement, the Tenant has granted to the Lender a security interest in and to, among other things, "Tenant's Equipment" (as defined in the "Lease" (defined below)), Tenant's inventory, Tenant's books and records and all other personal property of Tenant (collectively, the "Collateral") located, and to be located, upon the real property located at 2400 Xenium Lane North, Plymouth, Minnesota (the “Leased Premises”) as described on Exhibit A attached hereto; provided, however, that "Tenant’s Equipment" and "Collateral" shall not include building systems related to the Leased Premises, such as HVAC systems and facilities, electrical and mechanical systems and facilities, generators, life-safety systems, fire suppression and alarm systems, security systems, building communication systems and facilities, and lighting systems and facilities (the "Building Systems").    The Leased Premises is owned by the Landlord and leased to the Tenant pursuant to that certain Lease Agreement dated as of April 27, 2018 (as amended and in effect as of the date hereof, the “Lease”).   
WHEREAS, the Tenant will not enter into the Lease unless Landlord enters into this Agreement.
WHEREAS, it is a condition to the Landlord purchasing the Leased Premises that the Tenant and the Lender enter into this Agreement.
WHEREAS, the Lender will not permit the Tenant to enter into the Lease unless the Landlord and the Tenant enter into this Agreement. 
For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

		
	1.
	To the actual knowledge of the Landlord, the Tenant is not in default under the terms of the Lease.

		
	2.
	The Landlord hereby waives and releases in favor of the Lender and the other Credit Parties (as defined in the documents and agreements executed in connection with the Loan Arrangement): (a) any and all rights of distraint, levy, and execution which the Landlord may now or hereafter have against the Collateral; (b) any and all statutory liens, security interests, or other liens which the Landlord may now or hereafter have in the Collateral; and (c) any and all other interests or claims of every nature whatsoever which the Landlord may now or hereafter have in or against the Collateral for any rent, storage charges, or other sums due, or to become due, to the Landlord by the Tenant.  The Landlord agrees not to exercise any of the Landlord’s rights, remedies, powers, privileges, or discretions with respect to the Collateral, or the Landlord’s liens or security interests in the Collateral, unless and until the Landlord receives written notice from an officer of the Lender that the Tenant’s obligations to the Lender and the other Credit Parties have been paid in full, and that the commitment of the Lender and the other Credit Parties to make loans or furnish other financial accommodations to the Borrowers (as defined in the documents and agreements executed in connection with the Loan Arrangement) has been terminated.  The foregoing waiver is for the benefit of the Lender and the other Credit Parties only and does not affect the obligations of the Tenant to the Landlord.

		
	3.
	In the event of the exercise by the Lender of its rights upon default with respect to the Collateral, the Lender shall have a reasonable time, but in no event less than ninety (90) days or more than one hundred twenty (120) days, in which the Landlord will not hinder the Lender from repossessing and/or disposing of the Collateral from the Leased Premises; provided, however, that such period will be tolled during any period in which the Lender has been stayed from taking action to remove the Collateral in any bankruptcy, insolvency or similar proceeding, and the Lender shall have an additional period of time (but in no event less than ninety (90) days) or more than one hundred twenty (120) days thereafter in which to repossess and/or dispose of the Collateral from the Leased Premises.  In those circumstances, the Landlord will, upon reasonable prior written notice from the Lender, (a) not hinder the Lender in gaining access to the Leased Premises for the purpose of repossessing said Collateral and (b) if requested by the Lender, permit the Lender, or its agents or nominees, to dispose of the Collateral on the Leased Premises in a manner reasonably designed to minimize any interference with any of the Landlord’s other tenants at the Leased Premises.  The Lender shall promptly repair, at the Lender’s cost and expense, any physical damage to the Leased Premises actually caused by the Lender, but shall not be liable for any diminution in value of the Leased Premises caused by the removal or absence of the Collateral. The Tenant hereby releases the Landlord with respect to any cost, claim, or damage resulting from the Landlord's actions in accordance with this paragraph 3, except to the extent such cost, claim or damages arises from the negligence or willful misconduct of the Landlord.

		
	4.
	To the extent not paid or prepaid by the Tenant, the Lender shall pay the Landlord a sum for its use and occupancy of the Leased Premises on a per diem basis in an amount equal 

to the monthly base rent and additional rent for operating costs, such as insurance, taxes and utilities (but excluding any percentage rent), required to be paid by the Tenant under the Lease from the date on which the Lender shall have taken possession of the Collateral on the Leased Premises until the date on which the Lender vacates the Leased Premises, it being understood, however, that the Lender shall not, thereby, have assumed any of the obligations of the Tenant to the Landlord, including, without limitation, any obligation to pay any past due rent owing by the Tenant.
		
	5.
	Without limiting the Lender’s rights pursuant to paragraph 3 hereof, prior to the Landlord’s terminating the Lease or evicting the Tenant from the Leased Premises for breach of or default under the Lease ("Lease Default"), the Landlord shall give the Lender not less than thirty (30) days’ written notice of such action at the address set forth below, and a reasonable opportunity to preserve, protect, liquidate, or remove any Collateral on the Leased Premises and, if the Lender so elects, to cure such breach of or default under the Lease within (x) thirty (30) days following receipt of notice of any monetary Lease Default and (y) thirty (30) days following receipt of notice of any non-monetary Lease Default that is reasonably susceptible to cure by Lender, provided that if Lender is diligently pursuing a cure of a non-monetary Lease Default and such non-monetary Lease Default can reasonably be cured within an additional thirty (30) days, Lender will be given an additional thirty (30) days to cure such Lease Default.  If Lender desires to cure a Lease Default, Lender will give Landlord notice of such intent ("Notice of Intent to Cure") within fifteen (15) Business Days following Lender's receipt of the notice of Lease Default.  Notwithstanding the provisions of this paragraph, the Lender shall not have any obligation to cure any such breach or default.  The cure of any such breach or default by the Lender on any one occasion shall not obligate the Lender to cure any other breach or default or to cure such breach or default on any other occasion. Notwithstanding anything to the contrary herein, but without limiting the Lender’s rights pursuant to paragraph 3 hereof, in no event will Lender have the right to cure a Lease Default due to the failure of Tenant to maintain the "Letter of Credit" (as defined in the Lease) or Lease Default arising under Section 7.01(e) or Section 7.01(f) of the Lease.

		
	6.
	No payment by the Lender to the Landlord hereunder shall affect any obligation of the Tenant and its affiliates to reimburse the Lender for any such payment by the Lender pursuant to the terms of the Loan Arrangement.

		
	7.
	Lender hereby releases the Building Systems from any security interest held by Lender.

		
	8.
	All notices under this Agreement shall be made to the following addresses by recognized overnight courier, by hand delivery or by facsimile transmission:

If to the Lender: 

Wells Fargo Bank, National Association, as Lender
One Boston Place, 19th Floor
Boston, MA 02108 
MAC J9214-180
Attention: Michael S. Watson

Facsimile: 866-210-8898
Re: Christopher & Banks Company

If to the Landlord:

2400 Xenium, LLC
c/o The Excelsior Group, LLC
1660 Highway 100 South, Suite 400
St. Louis Park, MN 55416
Attention: Andy Finn
Facsimile: (952) 525-3298

If to the Tenant: 

Christopher & Bank Corporation
2400 Xenium Lane North
Plymouth, MN  55441
Attention: General Counsel
Facsimile:  (763) 551-5199

The Landlord or the Lender shall provide the Tenant a copy of all notices sent by the Landlord or the Lender pursuant to this Agreement.

		
	9.
	This Agreement shall inure to the benefit of the Lender and the other Credit Parties, and their respective successors and assigns, and shall be binding upon the Landlord, its heirs, assigns, representatives, and successors.

		
	10.
	This Agreement may not be amended or waived except by an instrument in writing signed by the Lender, the Landlord, and the Tenant.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to the conflicts of law principles thereof, but including Section 5-1401 of the New York General Obligations Law.  Delivery of an executed signature page of this Agreement to the Lender by facsimile or .pdf transmission shall be binding on the Landlord as if the original of such facsimile or .pdf had been delivered to the Lender.

[signature page follows]

Dated as of the date above first written.

	
			
	 
	LANDLORD:

	 
	2400 XENIUM, LLC

	 
	By:
	/s/ Stephanie A. Shields

	 
	Name:
	Stephanie A. Shields

	 
	Title:
	Manager

	
			
	 
	TENANT:

	 
	CHRISTOPHER & BANKS CORPORATION

	 
	By:
	/s/ Keri Jones

	 
	Name:
	Keri Jones

	 
	Title:
	President and Chief Executive Officer

	
			
	 
	LENDER:

	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION

	 
	By:
	/s/ Michael Watson

	 
	Name:
	Michael Watson

	 
	Title:
	Duly Authorized Signatory

Signature Page to Collateral Access AgreementExhibit 10.1

 Exhibit 10.1 
  

 
 SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

This Second Amended and Restated Employment Agreement (the “Agreement”) is entered into by and between Achillion Pharmaceuticals,
Inc., a Delaware corporation with its principal place of business at 300 George Street, New Haven, CT 06511-6624 (the “Company”), and Joseph Truitt (the “Executive”). The Agreement shall take effect as of the later of the dates
set forth in the signature page below (the “Effective Date”). Until the Effective Date, the Executive’s August 4, 2017 Amended and Restated Employment Agreement with the Company (the “Earlier Agreement”) will remain in
force and effect and continue to govern the Executive’s employment with the Company. 
 WHEREAS, the Company and the Executive desire
to amend and restate the Earlier Agreement by entering into this Agreement; and 
 WHEREAS, the Company desires to continue to employ the
Executive and the Executive desires to continue to be employed by the Company pursuant to the terms and conditions set forth in this Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree to be bound, as of the Effective
Date, as follows: 
 1.    Term of Employment. Subject to the terms and conditions of this Agreement, and
provided that the Executive remains employed by the Company as of the Effective Date, the Company agrees to continue to employ the Executive, and the Executive hereby accepts continued employment with the Company, for the period commencing on the
Effective Date and ending on December 31, 2018, unless earlier terminated pursuant to the provisions of Section 5 or extended pursuant to the provisions herein (such period, the “Employment Period”). On January 1, 2019, and
on each yearly anniversary of such date thereafter, this Agreement and the Employment Period shall automatically renew for successive one-year periods unless, at least six (6) months prior to the
applicable expiration date, either party has notified the other party that the Agreement shall not so renew. 

2.    Title; Capacity. During the Employment Period, the Executive shall serve as the Company’s Chief
Executive Officer. The Executive shall be based at the Company’s headquarters in New Haven, Connecticut, or such place or places in the continental United States as the Board of Directors of the Company (the “Board”) shall determine.
The Executive shall be subject to the supervision of, and shall have such authority as is delegated to the Executive by, the Board. 
 The
Executive hereby accepts such continued employment and agrees to undertake the duties and responsibilities inherent in such position and such other duties and responsibilities as the Board shall from time to time reasonably assign to the Executive
commensurate with his position. The Executive agrees to devote his entire business time, attention and energies to the business and interests of the Company during the Employment Period. The Executive agrees to

 
abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein which may be adopted from time to time by the Company. The Executive will be
eligible to participate in the Company’s performance review process. 
 3.    Compensation and Benefits.

 3.1    Salary. The Company shall pay the Executive, in periodic installments in accordance with the
Company’s customary payroll practices, a base salary at the biweekly rate of $21,538.46 (which if annualized equals $560,000) (the “Base Salary”). Such Base Salary may be increased in the sole discretion of the Board. 

3.2    Performance Bonus. Following the end of each fiscal year and subject to the approval of the Board, the
Executive shall be eligible to receive a discretionary retention and performance bonus (the “Performance Bonus”). The target amount of such Performance Bonus will be 55% of the Executive’s Base Salary for the applicable fiscal year
(the “Target Bonus”), based on the Company’s achievement of its performance goals for the applicable fiscal year and the Executive’s achievement of his performance goals for the applicable fiscal year, both as determined
by the Board in its sole discretion. The Executive’s individual performance goals for each fiscal year will be established by the Board on an annual basis in consultation with the Executive. The Executive must be an active employee of the
Company on the date any Performance Bonus is distributed in order to be eligible for and to earn any bonus award, as it also serves as an incentive to remain employed by the Company.  

3.3    Equity Award. Subject to approval by the Company’s Compensation Committee, on or about the Effective
Date, the Executive shall be granted an option to purchase 632,000 shares of Common Stock, $0.001 par value (“Common Stock”) of the Company, such option to (a) have an exercise price per share equal to the closing price per share of
the Company’s Common Stock on the NASDAQ Global Select Market on the date of grant, (b) vest and become exercisable, subject to the Executive’s continued service on each applicable vesting date, at a rate of 25% of the total shares
underlying the option on the first anniversary of the date of grant and as to an additional 6.25% of the total shares underlying the grant at the end of each full calendar quarter thereafter, and (c) be subject to the terms and conditions of a
stock option agreement to be provided by the Company. The Executive may be eligible to receive additional stock options or stock based awards from time to time, provided that any such stock options or stock based awards will be made, if at all,
solely at the discretion of the Board and upon such terms and conditions as the Board shall determine. 

3.4    Commuting Expenses. The Company agrees to reimburse the Executive for the expenses he incurs commuting
between Pennsylvania and Connecticut (the “Commuting Compensation”) and to pay to the Executive an amount such that the after-tax amount actually received by the Executive is equal to the gross
amount of the Commuting Compensation. 
 3.5    Fringe Benefits. The Executive shall continue to be entitled to
participate in all benefit programs that the Company establishes and makes available to its Executives, to the extent that the Executive is eligible under the plan documents governing those programs. Such benefit programs are subject to change at
any time in the Company’s sole discretion. The Executive shall be entitled to 25 days of paid time off (“PTO”) per calendar year. PTO shall be subject to the accrual, use, and carryover provisions set forth in the Company’s
vacation policy. 

 3.6    Reimbursement of Expenses. The Company shall reimburse the
Executive for all reasonable travel, entertainment and other expenses incurred or paid by the Executive in connection with, or related to, the performance of his duties and responsibilities under this Agreement, in accordance with the
policies and procedures, and subject to the limitations, adopted by the Company from time to time. 

3.7    Withholding. All compensation payable to the Executive shall be subject to applicable taxes and withholding.

 4.    Equity Acceleration in Connection with Change in Control. If a Change in Control Date occurs during the
Employment Period, then, effective upon the Change in Control Date, (a) the vesting schedule of each outstanding option to purchase shares of Common Stock of the Company held by the Executive shall be accelerated in part so that the option
shall become exercisable, as of immediately prior to the Change in Control, for an additional number of shares equal to 50% of the original number of shares of Common Stock subject to the option with the remaining unvested shares subject to such
option continuing to vest, subject to satisfaction of the vesting conditions, with respect to the same number of shares as would have become vested on each vesting date under the original remaining vesting schedule set forth in the applicable option
agreement, but with the remaining length of the vesting schedule shortened accordingly; and (b) unvested shares or units, if any, with respect to each outstanding restricted stock or stock unit award held by the Executive shall become
accelerated in part so that the number of unvested shares or units shall, as of immediately prior to the Change in Control, be reduced by the number of shares or units equal to 50% of the original number of shares or units subject to such restricted
stock or stock unit award with the remaining unvested shares or units continuing to vest, subject to satisfaction of the vesting conditions, with respect to the same number of shares or units as would have become vested on each vesting date under
the original remaining schedule set forth in the applicable restricted stock or stock unit award agreement, but with the remaining length of the vesting schedule shortened accordingly; provided that the vesting will not accelerate the distribution
of shares underlying equity awards if such acceleration of distribution would trigger taxation under Section 409A(a)(1)(B) of the Internal Revenue Code of 1986 and the guidance issued thereunder (“Section 409A” of the
“Code”). For the avoidance of doubt, the equity acceleration upon a Change in Control provided for in this Section 4 shall be in lieu of, and not in addition to, any equity acceleration provided for in any applicable equity award
agreement in connection with a Change in Control (a “CIC Duplicative Provision”). The Executive agrees that any CIC Duplicative Provision is hereby deleted and of no further force or effect. 

5.    Termination of Employment Period. This Agreement and the employment of the Executive shall terminate upon the
occurrence of any of the following: 
 5.1    Expiration of the Employment Period by notice of non-renewal in accordance with Section 1; 
 5.2    At the election of the
Company for Cause, immediately upon written notice by the Company to the Executive (subject, if applicable, to the Executive’s right to cure as provided in Section 12.1(c)), which notice shall identify the Cause upon which the termination
is based; 

 5.3    At the election of the Executive for Good Reason (as defined below),
pursuant to the provisions set forth below; 
 5.4    Upon the death or Disability (as defined below) of the Executive;

 5.5    At the election of the Company without Cause, upon not less than thirty (30) days’ prior written
notice of termination (the “Notice Period”), provided, however, that the Company may, in its sole discretion, in lieu of all or part of the Notice Period, pay the Executive an amount equal to the Base Salary that would otherwise have been
payable to the Executive had the Executive remained employed for the duration of the Notice Period (in which case the Executive’s termination will become effective on the date set forth in the Company’s written notice of termination (the
“Early Termination Date”), and the Executive will be paid an amount equal to the Base Salary the Executive would have received had the Executive remained employed by the Company between the Early Termination Date and the end of the Notice
Period (the “Early Termination Payment”), with the Early Termination Payment to be made no later than the 30th day following the end of the Notice Period); or 

5.6    At the election of the Executive without Good Reason, upon not less than fifteen (15) days’ prior written
notice of termination. 
 6.    Effect of Termination. 

6.1    Termination by the Company Without Cause or by the Executive for Good Reason Within 12 Months Following a Change
in Control. If, within 12 months following a Change in Control Date, either the Executive’s employment is terminated by the Company without Cause (other than due to his Disability or death) or the Executive resigns for Good Reason (a
“Change in Control Termination”), then, following the Executive’s date of termination (the “Date of Termination”) and subject to the conditions of Section 7 and in accordance with the timing and payment terms set forth
in Section 7: 
 (a)    the Company shall, for a period of 18 months beginning on the Payment Commencement Date,
continue to pay to the Executive, in accordance with the Company’s customary payroll practices, his then current Base Salary as severance; 

(b)    if the Executive is eligible for and timely elects to continue receiving group medical and/or dental insurance
under the continuation coverage rules known as COBRA, the Company will continue to pay the share of the premium for such coverage that it pays for active and similarly-situated employees who receive the same type of coverage (single, family, or
other) until the earlier of (x) the end of the 18th month after the Date of Termination, and (y) the date the covered individual’s COBRA continuation coverage expires, unless, as a
result of a change in legal requirements, the Company’s provision of payments for COBRA will violate the nondiscrimination requirements of applicable law, in which case this benefit will not apply; 

 (c)    the Executive will receive, in a lump sum on the Payment Commencement
Date, an amount equal to 150% of the Target Bonus for the fiscal year in which his Date of Termination occurs; 

(d)    each outstanding option to purchase shares of Common Stock of the Company held by the Executive shall become
immediately exercisable in full; and 
 (e)    each restricted stock or stock unit award held by the Executive shall be
deemed to be fully vested and free from repurchase and forfeiture provisions, and, to the extent applicable, will no longer be subject to a right of repurchase by or forfeiture to the Company; provided that the vesting will not accelerate the
distribution of shares underlying equity awards if such acceleration of distribution would trigger taxation under Section 409A of the Code. 

6.2    Termination by the Company Without Cause or by the Executive for Good Reason Prior to, or More than 12 Months
Following, a Change in Control. If, prior to a Change in Control Date or more than 12 months following a Change in Control Date, either the Executive’s employment is terminated by the Company without Cause (other than for Disability or
death) or the Executive resigns for Good Reason (a “Non-Change in Control Termination”), then, following the Date of Termination and subject to the conditions of Section 7 and in accordance with
the payment terms set forth in Section 7: 
 (a)    the Company shall, for a period of 18 months beginning on the
Payment Commencement Date, continue to pay to the Executive, in accordance with the Company’s customary payroll practices, his then current Base Salary as severance; 

(b)    if the Executive is eligible for and timely elects to continue receiving group medical and/or dental insurance
under the continuation coverage rules known as COBRA, the Company will continue to pay the share of the premium for such coverage that it pays for active and similarly-situated employees who receive the same type of coverage (single, family, or
other) until the earlier of (x) the end of the 18th month after the Date of Termination, and (y) the date the covered individual’s COBRA continuation coverage expires, unless, as a
result of a change in legal requirements, the Company’s provision of payments for COBRA will violate the nondiscrimination requirements of applicable law, in which case this benefit will not apply; 

(c)    the Executive will receive a pro-rated Target Bonus for the fiscal year in
which his Date of Termination occurs, calculated by multiplying the Target Bonus for such year by a fraction, the numerator of which is the number of days the Executive was employed by the Company in such year and the denominator of which is
365, paid in a lump sum on the Payment Commencement Date; 
 (d)    the vesting schedule of each outstanding option to
purchase shares of Common Stock of the Company held by the Executive shall be accelerated in part so that the option shall become exercisable for an additional number of shares equal to 25% of the original number of shares of Common Stock subject to
the option; and 
 (e)    unvested shares, or units, if any, with respect to each restricted stock or stock unit award
held by the Executive shall become vested such that the number of unvested shares or units shall be reduced by 25% of the original number of shares or units subject to such 

 
restricted stock or stock unit award; provided that the vesting will not accelerate the distribution of shares underlying equity awards if such acceleration of distribution would trigger taxation
under Section 409A of the Code. 
 For the avoidance of doubt, the equity acceleration upon a termination of the Executive by the Company without Cause
or by the Executive for Good Reason prior to, or more than twelve months following, a Change in Control provided for in Sections 6.2(d) and (e) shall be in lieu of, and not in addition to, any equity acceleration provided for in any applicable
equity award agreement in connection with such a termination (a “Non-CIC Duplicative Acceleration Provision”). The Executive agrees that any Non-CIC
Duplicative Acceleration Provision is hereby deleted and of no further force or effect.     

6.3    Termination by the Company for Cause, by the Executive Without Good Reason, or Due to Disability. If the
Company terminates the Executive’s employment for Cause or the Executive resigns without Good Reason, or if the Executive’s employment terminates due to his Disability, then the Company’s obligations under this Agreement shall
immediately cease and the Executive shall be entitled to only the Base Salary that has accrued and to which the Executive is entitled as of the Date of Termination. The Executive shall not be entitled to any other compensation or consideration,
including any Performance Bonus not yet paid, that the Executive may have received had the Employment Period not ended. For the avoidance of doubt, termination of this Agreement by notice of non-renewal by the
Executive will be treated as a termination by the Executive without Good Reason. 
 6.4    Termination Due to
Death. If the Executive’s employment with the Company terminates due to his death, then the Executive’s estate will be entitled to receive, in a lump sum amount within 60 days following the date of the Executive’s death, an amount
equal to (x) 12 months of the Executive’s Base Salary as of his date of death, plus (y) the unpaid Base Salary (if any) for the calendar month in which the Executive’s death occurs. 

6.5    Termination Prior to or More Than 12 Months Following a Change in Control Due to Expiration of the Employment
Period by Notice of Non-Renewal. If (a) this Agreement and the employment of the Executive terminate due to expiration of the Employment Period by notice of
non-renewal by the Company, and (b) the Date of Termination occurs prior to a Change in Control Date or more than 12 months following a Change in Control Date, and provided that the Executive would
otherwise have been willing and able to continue his employment under the terms of this Agreement but for the Company’s decision not to renew, then such termination will be treated as a Non-Change
in Control Termination and the provisions of Section 6.2 shall apply. 
 6.6    Termination Within 12 Months
Following a Change in Control Due to Expiration of the Employment Period by Notice of Non-Renewal. If (a) this Agreement and the employment of the Executive terminate due to expiration of the
Employment Period by notice of non-renewal by the Company, and (b) the Date of Termination occurs within 12 months following a Change in Control Date, and provided that the Executive would otherwise have
been willing and able to continue his employment under the terms of this Agreement but for the Company’s decision not to renew, then such termination will be treated as a Change in Control Termination and the provisions of
Section 6.1 shall apply. 

 7.    Release. The obligation of the Company to make the payments and
provide the benefits to the Executive under Section 6.1, 6.2, 6.5, or 6.6 is conditioned upon the Executive signing and delivering to the Company a severance and release of claims agreement in a form to be provided by the Company (which
will include, at a minimum, a release of all releasable claims and non-disparagement and cooperation obligations) (the “Executive Release”), which Executive Release must become irrevocable within
sixty (60) days following the Date of Termination (or such shorter period as the Company may provide, which shall not be less than 30 days following the Date of Termination). The Company shall commence or make, as applicable, the payments under
Section 6.1, 6.2, 6.5, or 6.6 on the first payroll period following the date the Executive Release becomes irrevocable (such date, the “Payment Commencement Date”); provided, however, that if the 60th day following the Date of
Termination falls in the calendar year following the year of the Executive’s termination of employment, the Payment Commencement Date shall be the first payroll period of such later calendar year; and provided further that the payment of any
amounts pursuant to Section 6.1, 6.2, 6.5 or 6.6 shall be subject to the terms and conditions set forth in Exhibit A. 

8.    Termination Obligations. 

8.1    Return of Company’s Property. The Executive hereby acknowledges and agrees that all
personal property, including, without limitation, all books, manuals, records, reports, notes, contracts, lists, blueprints and other documents or materials, or copies thereof, and equipment furnished to or prepared by the Executive in the course of
or incident to the Executive’s employment, belong to the Company and shall be promptly returned to the Company upon termination of the Executive’s employment or earlier request by the Company. Following termination, the Executive will not
retain any written or other tangible material containing any proprietary information or confidential information of the Company. 

8.2    Cooperation. Following any separation from employment or notice thereof, the Executive shall fully cooperate
with the Company in all matters relating to the winding up of pending work on behalf of the Company and the orderly transfer of work to other executives of the Company. The Executive shall also cooperate in the defense of any action brought by any
third party against the Company that relates in any way to the Executive’s acts or omissions while employed by the Company. 

8.3    Resignation from the Board. In the event the Executive receives notification of non-renewal or notice of termination for any reason (including with or without Cause or due to Disability), or in the event the Executive provides notification of non-renewal
or notice of his resignation (with or without Good Reason), the Executive shall immediately resign from his position on the Board. 

 9.    Section 280G. 

9.1    Notwithstanding any other provision of this Agreement, except as set forth in Section 9.2, in the event that
the Company undergoes a “Change in Ownership or Control” (as defined below), the Company shall not be obligated to provide to the Executive a portion of any “Contingent Compensation Payments” (as defined below) that the Executive
would otherwise be entitled to receive to the extent necessary to eliminate any “excess parachute payments” (as defined in Code Section 280G(b)(1)) for the Executive. For purposes of this Section 9, the Contingent Compensation
Payments so eliminated shall be referred to as the “Eliminated Payments” and the aggregate amount (determined in accordance with Treasury Regulation Section 1.280G-1, Q/A-30 or any successor provision) of the Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated Amount.” 

9.2    Notwithstanding the provisions of 9.1, no such reduction in Contingent Compensation Payments shall be made if
(i) the Eliminated Amount (computed without regard to this sentence) exceeds (ii) 110% of the aggregate present value (determined in accordance with Treasury Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of the amount of any additional taxes that would be incurred by the Executive if the Eliminated Payments (determined without
regard to this sentence) were paid to him or her (including, state and federal income taxes on the Eliminated Payments, the excise tax imposed by Section 4999 of the Code payable with respect to all of the Contingent Compensation Payments in
excess of the Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code), and any withholding taxes). The override of such reduction in Contingent Compensation Payments pursuant to this Section 9.2 shall be
referred to as a “Section 9.2 Override.” For purpose of this paragraph, if any federal or state income taxes would be attributable to the receipt of any Eliminated Payment, the amount of such taxes shall be computed by multiplying the
amount of the Eliminated Payment by the maximum combined federal and state income tax rate provided by law. 
 9.3 For purposes of this
Section 9 the following terms shall have the following respective meanings: 
 (i)    “Change in Ownership or
Control” shall mean a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company determined in accordance with Section 280G(b)(2) of the Code. 

(ii)    “Contingent Compensation Payment” shall mean any payment (or benefit) in the nature of compensation
that is made or made available (under this Agreement or otherwise) to a “disqualified individual” (as defined in Section 280G(c) of the Code) and that is contingent (within the meaning of Section 280G(b)(2)(A)(i) of the Code) on
a Change in Ownership or Control of the Company. 
 9.4    Any payments or other benefits otherwise due to the Executive
following a Change in Ownership or Control that could reasonably be characterized (as determined by the Company) as Contingent Compensation Payments (the “Potential Payments”) shall not be made until the dates provided for in this
Section 9.4. Within 30 days after each date on which the Executive first becomes entitled to receive (whether or not then due) a Contingent Compensation Payment relating to such Change in Ownership or Control, the Company shall determine and

 
notify the Executive (with reasonable detail regarding the basis for its determinations) (i) which Potential Payments constitute Contingent Compensation Payments, (ii) the Eliminated
Amount and (iii) whether the Section 9.2 Override is applicable. Within 30 days after delivery of such notice to the Executive, the Executive shall deliver a response to the Company (the “Executive Response”) stating either
(A) that he or she agrees with the Company’s determination pursuant to the preceding sentence, or (B) that he or she disagrees with such determination, in which case he or she shall set forth (i) which Potential Payments should
be characterized as Contingent Compensation Payments, (ii) the Eliminated Amount, and (iii) whether the Section 9.2 Override is applicable. In the event that the Executive fails to deliver an Executive Response on or before the
required date, the Company’s initial determination shall be final. If and to the extent that any Contingent Compensation Payments are required to be treated as Eliminated Payments pursuant to this Section 9, then the payments shall be
reduced or eliminated, as determined by the Company, in the following order: (i) any cash payments, (ii) any taxable benefits, (iii) any nontaxable benefits, and (iv) any vesting of equity awards in each case in reverse order
beginning with payments or benefits that are to be paid the farthest in time from the date that triggers the applicability of the excise tax, to the extent necessary to maximize the Eliminated Payments. If the Executive states in the Executive
Response that he or she agrees with the Company’s determination, the Company shall make the Potential Payments to the Executive within three business days following delivery to the Company of the Executive Response (except for any Potential
Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due). If the Executive states in the Executive Response that he disagrees with the Company’s determination, then,
for a period of 60 days following delivery of the Executive Response, the Executive and the Company shall use good faith efforts to resolve such dispute. If such dispute is not resolved within such 60-day
period, such dispute shall be settled exclusively by arbitration in the State of Connecticut, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court
having jurisdiction. The Company shall, within three business days following delivery to the Company of the Executive Response, make to the Executive those Potential Payments as to which there is no dispute between the Company and the Executive
regarding whether they should be made (except for any such Potential Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due). The balance of the Potential Payments shall
be made within three business days following the resolution of such dispute. Subject to the limitations contained in Sections 9.1 and 9.2 hereof, the amount of any payments to be made to the Executive following the resolution of such dispute shall
be increased by amount of the accrued interest thereon computed at the prime rate announced from time to time by The Wall Street Journal, compounded monthly from the date that such payments originally were due. 

9.5    The provisions of this Section 9 are intended to apply to any and all payments or benefits available to the
Executive under this Agreement or any other agreement or plan of the Company under which the Executive receives Contingent Compensation Payments. 

10.    Non-Competition,
Non-Solicitation, Inventions, and Non-Disclosure Obligations. The Executive hereby reaffirms all of his obligations under the Noncompetition Agreement
previously executed by him dated December 8, 2008 (the “Non-Compete Agreement”), which remains in full force and effect. The Executive further reaffirms all of his obligations under the
Nondisclosure and Assignment of Inventions Agreement previously executed by him dated 

 
December 8, 2008 (the “NDA”), which also remains in full force and effect; provided, however, that the Executive hereby agrees that the NDA shall be deemed amended to
include the following as Section 12 thereof: 
 “12.    Scope of Disclosure Restrictions. I understand
and acknowledge that nothing in this Agreement or any other Company policy or agreement prohibits me from communicating with government agencies about possible violations of federal, state, or local laws or otherwise providing information to
government agencies or participating in government agency investigations or proceedings, and that I am not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure of information I
obtained through a communication that was subject to the attorney-client privilege. Further, notwithstanding my confidentiality and nondisclosure obligations, I understand that, and the Company is hereby advising me as follows, pursuant to the
Defend Trade Secrets Act: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local
government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other
proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret
information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.” 

11.    Absence of Restrictions. The Executive represents and warrants that he is not bound by any employment
contracts, restrictive covenants or other restrictions that prevent him from continuing his employment with, or carrying out his responsibilities for, the Company, or which are in any way inconsistent with any of the terms of
this Agreement. 
 12.    Definitions. For purposes of this Agreement, the following terms shall have the
following meanings: 
 12.1    “Cause” shall mean (a) a good faith finding by the Company that
(i) the Executive has failed to substantially perform his reasonably assigned duties for the Company, or (ii) the Executive has engaged in dishonesty, gross negligence or misconduct, which dishonesty, gross negligence or misconduct
has had a material adverse effect on the Company, (b) the conviction of the Executive of, or the entry of a plea of guilty or nolo contendere by the Executive to, any felony, (c) breach by the Executive of any material provision of this
Agreement or other agreement with the Company (which breach is not cured within 30 days following written notice by the Company thereof), or (d) breach by the Executive of the Non-Compete Agreement or
NDA. 

 12.2    “Change in Control” shall mean the sale of all or
substantially all of the capital stock (other than the sale of capital stock to one or more venture capitalists or other institutional investors pursuant to an equity financing (including a debt financing that is convertible into equity) of the
Company approved by a majority of the Board), assets or business of the Company, by merger, consolidation, sale of assets or otherwise (other than a merger or consolidation in which all or substantially all of the individuals and entities who were
beneficial owners of the Common Stock immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the outstanding securities entitled to vote generally in the election of directors of the resulting, surviving or
acquiring corporation in such transaction), provided that, where applied to compensation subject to Section 409A, any acceleration of or change in payment shall only apply (if required by Section 409A) if the corporate transaction is also
a change in control event described in Treasury Regulation 1.409A-3(i)(5). 

12.3    “Change in Control Date” means the first date during the Employment Period on which a Change in Control
occurs. Anything in this Agreement to the contrary notwithstanding, if (a) a Change in Control occurs, (b) the Executive’s employment with the Company is terminated (i) without Cause (other than due to the Executive’s death
or Disability), or (ii) due to expiration of the Employment Period by notice of non-renewal by the Company, within 60 days prior to the date on which the Change in Control occurs, and (c) it is
reasonably demonstrated by the Executive that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or in
anticipation of a Change in Control, then the “Change in Control Date” shall mean the date immediately prior to the date of such termination of employment. Where applicable, the Company shall take such steps as are reasonably practicable
as of the termination date to preserve the availability of equity compensation that may expire (other than by reaching the full term of an option) during the 60 day period (by vesting and freezing the equity) pending the occurrence of the Change in
Control. 
 12.4    “Disability” shall mean the inability of the Executive, due to a physical or mental
disability, for a period of 90 days, whether or not consecutive, during any 360-day period to perform the services contemplated under this Agreement, with or without reasonable accommodation, as that term is
defined under state or federal law. A determination of disability shall be made by a physician satisfactory to both the Executive and the Company, provided that if the Executive and the Company do not agree on a physician, the Executive and the
Company shall each select a physician and these two together shall select a third physician, whose determination as to disability shall be binding on all parties. 

12.5    “Good Reason” shall mean the occurrence, without the Executive’s prior written consent, of any of
the following events: (i) a material diminution of the Executive’s base compensation; (ii) a requirement that the Executive’s principal place of providing services to the Company change by more than 50 miles, other than in a
direction that reduces the Executive’s daily commuting distance; (iii) any material breach by the Company or any successor thereto of a material provision of this Agreement; or (iv) a material diminution in the Executive’s
authority, duties, or responsibilities, provided, however, and for the avoidance of doubt, that Good Reason shall not exist if the Executive no longer holds the same title or functional role within an entity resulting from a Change in Control, so
long as the Executive’s responsibilities are not substantially diminished. Notwithstanding the occurrence of any of the foregoing events or circumstances, a resignation shall not be deemed to constitute resignation for Good Reason unless
(x) the Executive gives the Company a written notice of the purported Good Reason (no 

 
more than 90 days after the initial existence of such event or circumstance), (y) such event or circumstance has not been fully corrected (and the Executive has not been reasonably compensated
for any losses or damages resulting therefrom) within 30 days following the Company’s receipt of such notice, and (z) if the Company does not correct, the Executive ends his employment not more than 30 days following the period to
correct in (y). 
 13.    Miscellaneous. 

13.1    Entire Agreement; Modification. This Agreement constitutes the entire understanding and agreement between
the parties hereto with regard to the subject matter hereof and, as of the Effective Date, supersedes all prior understandings and agreements, whether written or oral, including, without limitation, the Earlier Agreement. For the avoidance of doubt,
nothing herein supersedes the Non-Compete Agreement or NDA. The Executive is not relying on any representations other than those set forth in this Agreement. 

13.2    Notices. Any notice delivered under this Agreement shall be deemed duly delivered 3 business days after it
is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, to the Company at its principal
headquarters and to the Executive at the address most recently shown on the personnel records of the Company. Either party may change the address to which notices are to be delivered by giving notice of such change to the other party in the manner
set forth in this Section 13.2. 
 13.3    Pronouns. Whenever the context may require, any pronouns used in
this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa. 

13.4    Amendment. This Agreement may be amended or modified only by a written instrument executed by both the
Company and the Executive and approved by the Board. 
 13.5    Governing Law. This Agreement shall be governed
by and construed in accordance with the laws of the State of Connecticut (without reference to the conflicts of laws provisions thereof). Any action, suit or other legal proceeding arising under or relating to any provision of this Agreement shall
be commenced only in a court of the State of Connecticut (or, if appropriate, a federal court located within Connecticut), and the Company and the Executive each consents to the jurisdiction of such a court. The Company and the Executive each hereby
irrevocably waives any right to a trial by jury in any action, suit or other legal proceeding arising under or relating to any provision of this Agreement. 

13.6    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and
their respective successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets or business, provided, however, that the obligations of the Executive are
personal and shall not be assigned by him. 
 13.7    Waivers. No delay or omission by either party in exercising
any right under this Agreement shall operate as a waiver of that or any other right; provided, however, and for the avoidance of doubt, that nothing in this Section 13.7 shall be interpreted or construed to

 
extend, negate, or supersede any time period set forth in this Agreement. A waiver or consent given by either party on any one occasion shall be effective only in that instance and shall not be
construed as a bar to or waiver of any right on any other occasion. 
 13.8    Captions. The captions of the
sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement. 

13.9    Severability. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable,
the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 

13.10    Executive’s Acknowledgments. The Executive acknowledges that he: (i) has read this Agreement;
(ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Executive’s own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and consequences
of this Agreement; (iv) is fully aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the Company in connection with the
transactions contemplated by the Agreement, and is not acting as counsel for the Executive. 
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blank] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth
below. 
  

							
	ACHILLION PHARMACEUTICALS, INC.	  		  	
				
	By:	 	/s/ David Scheer	  	Date: May 1, 2018	  	
	Name:	 	David Scheer	  		  	
	Title:	 	Chairman of the Board of Directors	  		  	
			
	EXECUTIVE:	  		  	
			
	/s/ Joseph Truitt	  	Date: May 1, 2018	  	
	Joseph Truitt	  		  	

 Exhibit A 

Section 409A 
 The intent of the
parties is that payments and benefits under this Agreement comply with, or be exempt from, Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and this
Agreement shall be interpreted consistently therewith. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code
Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year,
provided that this clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(a) of the Code solely because such expenses are subject to a limit related to the period the arrangement
is in effect, and (iii) such payments shall be made on or before the last day of your taxable year following the taxable year in which the expense occurred, provided that any tax gross-ups may be
reimbursed by the end of the calendar year following the calendar year in which such taxes are remitted to the taxing authorities. For purposes of Code Section 409A, each payment hereunder shall be treated as a separate payment and
Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. In no event may Executive, directly or indirectly, designate the calendar year
of any payment to be made under this Agreement that is considered nonqualified deferred compensation. Termination of employment as used herein shall mean separation from service within the meaning of Code Section 409A. Notwithstanding anything
in this Agreement to the contrary, to the extent required by Section 409A of the Code, if Executive is considered a “specified employee” for purposes of Section 409A of the Code and if payment of any amounts under this Agreement
is required to be delayed for a period of six months after separation from service pursuant to Section 409A of the Code, payments of such amounts shall be delayed as required by Section 409A of the Code, and the accumulated amounts shall
be paid in a lump sum payment within ten days after the end of the six-month period. If Executive dies during the postponement period prior to the payment of benefits, the amounts withheld on account of
Section 409A of the Code shall be paid to the personal representative of the Executive’s estate within 60 days after the date of Executive’s death. The Company is not making any representation or warranty to Executive with respect to
the treatment of this Agreement under Code Section 409A and shall have no liability to Executive or any other person with respect to payments or benefits under this Agreement should any payments or benefits under this Agreement be determined to
constitute nonqualified deferred compensation subject to Code Section 409A but not satisfying the conditions of such section.

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