Document:

Exhibit 10.21

 

AKARI THERAPEUTICS PLC

75/76 Wimpole Street

London W1G 9RT UK

 

19 October 2018

 

Clive Richardson

c/o Akari Therapeutics plc

75/76 Wimpole Street

London
W1G 9RT UK

 

Re: Option and Bonus Letter

 

Dear Clive:

 

We appreciate your
continued service as acting chief executive officer of Akari Therapeutics plc (the “Company”). This will
confirm the following agreement made today between you and the Company respecting an option grant and a potential bonus paid
to you by the Company, subject to your continued employment with the company and the other terms and conditions herein set
forth, to demonstrate such appreciation.

 

For valid consideration, the receipt of which is hereby
acknowledged, the parties hereby agree as follows:

 

		1.	The Company will deliver to you a Stock Option Grant Notice
respecting the grant of 20,000,000 additional ordinary shares under option in the capital of the Company (as American Depositary
Shares) (the “Additional Options”), subject to the terms and conditions of the grant notice and the Company’s
2014 Equity Incentive Plan (as amended from time to time). The Additional Options will vest over a period of four years and have
a strike price as set forth in the grant notice.

 

		2.	In the event a Sale Transaction (as defined below) is completed
while you are (i) employed by the Company (and you have not given notice to terminate your employment) and (ii) acting chief executive
officer of the Company or in the six month period after you are no longer acting in such capacity, the Company shall pay you a
bonus (the “Bonus”) equal to (x) (1) your then base salary plus the Company’s then annual contribution
to your pension multiplied by (y) three, as determined by the Company. The Bonus will be subject to deductions and withholdings
as required by law. An example of the Bonus calculation is set forth on Exhibit A hereto. For purposes of the foregoing,
“Sale Transaction” means the first occurrence of one of the following: a merger, consolidation or similar transaction
(directly or indirectly) involving the Company if, immediately after the consummation of such merger, consolidation or similar
transaction, the shareholders of the Company immediately prior thereto do not own, directly or indirectly, outstanding equity
securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity (or the
parent of the surviving entity) (but not including any bona fide financing of the Company), or the sale of all or substantially
all of the assets of the Company.

 

     

     

    

 

		3.	Receipt of the Bonus (and/or, to avoid doubt, any severance
payment under Clause 7.11 of your Service Agreement/Employment Contract) shall be conditioned upon your execution of a customary
settlement agreement, release and non-disparagement satisfactory to and in favor of the Company and its subsidiaries, affiliates
and shareholders and their respective officers, directors, employees, stockholders, attorneys, accountants, consultants and other
agents.

 

		4.	You agree to keep the terms and existence of this letter
agreement confidential, except for disclosure for purposes of obtaining legal or accounting advice. Notwithstanding the foregoing,
you shall not be restricted from: (i) disclosing information that is required to be disclosed by law, court order or other valid
and appropriate legal process; provided, however, that in the event such disclosure is required by law, you shall provide the
Company with prompt notice of such requirement so that the Company may seek an appropriate protective order prior to any such
required disclosure by you; or (ii) reporting possible violations of federal, state, or local law or regulation to any governmental
agency or entity, or from making other disclosures that are protected under the whistleblower provisions of federal, state, or
local law or regulation, and you shall not need the prior authorization of the Company to make any such reports or disclosures
and shall not be required to notify the Company that you has made such reports or disclosures.

 

		5.	You agree to cooperate with the Company and its shareholders
as they seek, negotiate and pursue any potential Sale Transaction or strategic transaction involving the Company. You also agree
to maintain an acceptable level of performance consistent with your past performance.

 

		6.	This letter agreement shall
not create any obligation on the part of the Company to establish or continue any other compensation programs, plans or policies
of any kind. This letter agreement shall not give you any right with respect to continuance of your employment by the Company
or of any specific aggregate amount of compensation, nor shall there be a limitation in any way on the right of the Company to
terminate your employment at any time for any reason or for no reason whatsoever, nor shall this letter agreement create a contract
respecting your employment by the Company. All amounts payable pursuant to the terms of this letter agreement shall be paid from
the general assets of the Company. Payments will be paid under this letter agreement only if the Company determines, in its complete
and sole discretion, that you are entitled to them. If, on termination of your employment, for whatever reason, whether lawfully
or in breach of contract, you lose any rights in relation to the Additional Options or Bonus (including, to avoid doubt, any rights
which you would not have lost had your employment not been terminated) you will not be entitled, by way of compensation for unlawful
termination of employment, loss of employment or office or otherwise, to any compensation for loss of any rights or loss
of profits in respect of either the Additional Options or Bonus.

 

    	-2-

     

    

 

		7.	This letter agreement constitutes the full understanding
and entire agreement between you and the Company and supersedes any other agreements of any kind, whether oral or written, formal
or informal, with respect to the subject matter herein set forth; provided however, that you shall remain bound by any continuing
obligations to preserve the Company’s trade secrets, intellectual property, and confidential information, and non-solicitation
and non-competition, if any, and of course, your Service Agreement/Employment Contract with the Company (which remain otherwise
unchanged). You represent and acknowledge that in signing this letter agreement, you have not relied upon any representation or
statement not set forth in this letter agreement. This letter agreement may only be amended by the written agreement of you and
the Company. This letter agreement may not be assigned or transferred in whole or in part by you. This letter agreement and any
dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes
or claims) shall be governed by and construed in accordance with the law of England and Wales.

 

Very truly yours,

 

AKARI THERAPEUTICS PLC

 

	By: 	/s/ Ray Prudo	 
	 	Name:	Ray Prudo	 
	 	Title:	Chairman	 

 

	ACCEPTED AND AGREED:	 
	 	 	 
	By: 	/s/ Clive Richardson	 
	Name: 	Clive Richardson	 

 

    	-3-

     

    

 

Exhibit A

 

Sale Transaction Bonus Calculation

 

This calculation illustrates the Bonus payable should
the Sale Transaction take place in fiscal year 2018 and be payable as hereunder provided.

 

	Current Base
 Salary	 	 	Annual
 Pension
 Contribution	 	 	Combined
 Annual Total	 	 	Multiplier	 	 	Bonus	 
	£	259,560	 	 	£	25,956	 	 	£	285,516	 	 	 	3X		 	£	856,548	*

 

In the event the Sale Transaction
takes place after fiscal year 2018, the Bonus calculation will be calculated by the Company on the basis of the fiscal year in
which the Sale Transaction takes place.

 

 

* Subject to deductions and withholdings as required
by law.

 

    	-4-Exhibit

Exhibit 10.1

EXECUTION VERSION

CONSENT AND WAIVER TO THE SETTLEMENT AGREEMENT
This CONSENT AND WAIVER TO THE SETTLEMENT AGREEMENT (this "Agreement") is made as of April 18, 2019 by and among (1) the Debtors and (2) the FE Non-Debtor Parties (each a “Party” and collectively, the “Parties”).
W I T N E S S E T H:
WHEREAS, the Debtors, the FE Non-Debtor Parties, the Ad Hoc Noteholders Group, the Bruce Mansfield Certificateholders Group and the Committee entered into that certain Settlement Agreement dated as of August 26, 2018 (the "Settlement Agreement"); 
WHEREAS, on April 4, 2019, the Bankruptcy Court issued an oral ruling finding that the Plan Releases set forth in Section 6.3(a) of the Settlement Agreement (the “Plan Releases”), as incorporated into the Plan, were legally impermissible (the “Release Ruling”);
WHEREAS, pursuant to Sections 10.3(a) and 12.8 of the Settlement Agreement, the FE Non-Debtor Parties may, in their sole discretion, waive the requirements of the Settlement Agreement with respect to the Plan Releases by written consent and without the need for the consent or waiver of any other party for such waiver to be effective;
WHEREAS, as a result of the Release Ruling an Adverse Ruling has occurred under the Settlement Agreement; and
WHEREAS, in connection with the Condition Failure Scenario and the Adverse Ruling, the Debtors and the FE Non-Debtor Parties have agreed to waive certain provisions of the Settlement Agreement and agreed to certain items in connection therewith, all as set forth in this Agreement.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:
Section 1.Defined Terms.  Capitalized terms used in this Agreement without separate definition shall have the respective meanings assigned to them in the Settlement Agreement. 
Section 2.    Waiver under Sections 10.3(a) and 12.8 of the Settlement Agreement.  Pursuant to Section 10.3(a) and Section 12.8 of the Settlement Agreement, the FE Non-Debtor Parties shall, upon Bankruptcy Court approval of this Agreement, irrevocably waive (i) any right to terminate the Settlement Agreement pursuant to Section 11.2 thereof as a direct result of an Adverse Ruling or a Condition Failure Scenario occurring as a result of the Release Ruling and failure to obtain approval of the Plan Releases, (ii) any conditions to the Plan Effective Date set forth in Section 10.2(c) and Section 10.2(e) that directly relate to the Plan Releases set forth in Section 6.3(a) of the Settlement Agreement, subject to the provisions of Section 3 below, (iii) any breach of the Settlement 

Agreement, including, without limitation, pursuant to any provision of Article VI of the Settlement Agreement, directly resulting from the Release Ruling and failure to obtain approval of the Plan Releases, and (iv) any arguments, assertions, claims or defenses that the agreements, covenants and obligations of the FE Non-Debtor Parties under the Settlement Agreement (including, without limitation, the agreements set forth in Articles II and III of the Settlement Agreement) are no longer effective or enforceable as a result of the Release Ruling and the exclusion of the Plan Releases from the Plan in accordance with of the terms of this Agreement.
Section 3.    Consent to Updated Release Provisions of the Plan.  The Debtors hereby agree that any FES Plan will provide consensual third-party releases in favor of the FE Non-Debtor Parties (the "FE Non-Debtor Parties' Consensual Releases") that are the same as any consensual third-party releases provided in favor of the Other Released Parties (as such term is defined in the Third Amended Joint Plan of Reorganization of FirstEnergy Solutions Corp, et al. [Docket No. 2432]).  The FE Non-Debtor Parties hereby acknowledge and consent to (i) the inclusion of the consensual third-party releases in favor of the FE Non-Debtor Parties in the FES Plan contemplated by this Section 3 and (ii) the Debtors' modifying the language in the FES Plan to provide that such consensual third-party releases shall be deemed to be granted by Holders of Claims against or Interests in the Debtors that (x) are deemed to accept such FES Plan or (y) are entitled to vote and vote to accept such FES Plan.  The Parties hereby agree that nothing in this Section 3 will be deemed to waive the rights of the FE Non-Debtor Parties under Section 10.2(c) of the Settlement Agreement; provided, that, the Plan Releases to be included in any FES Plan shall be deemed to be the FE Non-Debtor Parties’ Consensual Releases as described herein.
Section 4.    Filing of Plan and Related Documents. Within five (5) business days of the date of this Agreement, the Debtors shall file a revised plan of reorganization, disclosure statement, motion to approve such disclosure statement and a motion to approve this Agreement with the Bankruptcy Court that is consistent with the terms of this Agreement.  The Debtors hereby agree to use their commercially reasonable efforts to enter into an amendment to that certain Restructuring Support Agreement dated as of January 23, 2019 by and among the Debtors, the Consenting Creditors (as defined therein) and the Committee, incorporating the terms of this Agreement, as necessary, within ten (10) business days of the date of this Agreement.
Section 5.    Good Faith Negotiations with Environmental Parties.  As soon as practicable after the date of this Agreement, the Debtors will initiate negotiations in good faith with counsel for the Environmental Protection Agency, the Nuclear Regulatory Commission, the State of Ohio and State of Pennsylvania (collectively, the “Environmental Authorities”), with the objective of reaching an agreement between the Debtors and the Environmental Authorities with respect to a revised plan of reorganization to be filed with the Bankruptcy Court by the Debtors.  The FE Non-Debtor Parties will be entitled to participate fully in such negotiations at their discretion. 
Section 6.    Agreements Regarding Shared Services. 
(a)    Within one (1) business day of the entry of a Bankruptcy Court order approving this Agreement, the Debtors will pay to FE Corp. (or its applicable subsidiary) $60.4 million, satisfying amounts owed by the Debtors to FESC with respect to (i) charges for the Voluntary Early Retirement Program (“VERP”) for FESC under the Amended SSA in full settlement of all 

	
			
	 
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amounts due and owing by the Debtors to FESC with respect to the VERP and (ii) service costs associated with the Debtors' participation in the qualified pension plan (the “Pension Plan”) sponsored by FE Corp. for the period beginning April 1, 2018 through March 31, 2019.  Upon the completion of the $60.4 million payment, the FE Non-Debtor Parties shall be deemed to withdraw their notice of default under the Amended SSA, dated January 15, 2019.  The estimate for the first quarter of 2019 service costs associated with the Debtors' participation in the Pension Plan will be trued up, consistent with Section 6(b) below, on or before July 1, 2019, which is the payment due date for second quarter of 2019 service costs.  
(b)    Beginning April 1, 2019 and for so long as one or more Debtors continue to participate in the Pension Plan, each of the Debtors participating in a Pension Plan will continue to pay only the service costs to FE Corp. with respect to such Pension Plan, such service costs will be calculated based upon the individual employees of the Debtors participating in the Pension Plan as of March 31, 2019 and otherwise will utilize the same assumptions as used to determine the service cost allocation for the FE Non-Debtor Parties that participate in such Pension Plan.  After April 1, 2019, the service cost calculation will be adjusted quarterly based upon each participating Debtor’s actual individual employees at the end of the immediately prior quarter, with all other assumptions only adjusted annually in the ordinary course and using the same assumptions as used to determine the service cost allocation for the FE Non-Debtor Parties that participate in such Pension Plan.  The FE Non-Debtor Parties will provide the Debtors with calculations for such service costs at least thirty (30) days prior to the end of the quarter for which such service costs are being charged.  The Debtors will make such payments of service costs on the first business day of the quarter immediately following the quarter for which the service costs were calculated.  In the event that the Plan Effective Date occurs on any day other than the last day of the quarter, the FE Non-Debtor Parties will provide the Debtors with calculations for the final quarter's pro-rated service costs at least thirty (30) days prior to the end of the final quarter for which such service costs are being charged.  The Debtors will make such payments of pro-rated service costs on the first business day of the quarter immediately following the final quarter for which the pro-rated service costs were calculated.  
(c)    Beginning April 1, 2018 and for so long as one or more Debtors continue to participate in the Postretirement Health and Welfare Plans sponsored by FE Corp., each of the participating Debtors will only be obligated to pay to FE Corp. (or its applicable subsidiary) service costs for participating former employees receiving retiree medical and life insurance benefits under such plans; notwithstanding the foregoing, until the Plan Effective Date, the Debtors will continue to make payments in the ordinary course with respect to the ongoing claims and premiums costs of its participating former employees.  The Debtors will make service costs payments within 30 days of receipt of an invoice for such costs.  
(d)    Any dispute related to this Section 6 shall be resolved by utilizing the Dispute Resolution Procedures.
Section 7.    Effect of Agreement.  
(a)    The Parties agree that except as otherwise set forth herein, all terms, conditions and provisions of the Settlement Agreement shall remain in full force and effect.  In the 

	
			
	 
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event of any inconsistency or conflict between the Settlement Agreement and this Agreement, the terms, conditions and provisions of this Agreement shall govern and control. 
(b)    The waivers and consents set forth in Sections 2 and 3 above are limited precisely as written and shall not be deemed:  (i) to be a waiver of, or consent to, any other term or condition of the Settlement Agreement; (ii) to prejudice any contractual, legal or other right or rights which the undersigned may have or may have in the future under or in connection with the Settlement Agreement; or (iii) to otherwise establish any course of dealing among the Debtors and the FE Non-Debtor Parties.  Except as set forth herein, the undersigned parties hereby reserve all of their rights and remedies under applicable law and under the Settlement Agreement with respect to any matters other than those specifically addressed in this Agreement. 
Section 8.    Representations and Warranties.
(a)    Subject to Bankruptcy Court approval, the Debtors hereby represent that they possess all requisite power and authority necessary to enter into, and perform under, this Agreement and that the Execution, delivery, and performance by the Debtors of this Agreement, and the fulfillment of and compliance with the respective terms hereof by the Debtors, do not and shall not (i) conflict with or result in a breach of the terms, conditions, or provisions of, (ii) constitute a default under (whether with or without the passage of time, the giving of notice, or both), (iii) give any third party the right to modify, terminate, or accelerate any obligation under, (iv) result in a violation of, or (v) require any authorization, consent, approval, exemption, or other action by or notice or declaration to, or filing with, any Governmental Entity (other than such authorization, consent, approval, exemption, or other action the failure to obtain, satisfy, or comply with, as the case may be, which will not affect the validity or enforceability of the Agreement or have a material adverse effect on the Debtors' ability to perform their obligations under this Agreement) pursuant to (A) the organizational documents of the Debtors, (B) any law to which the Debtors are subject, or (C) any material agreement, instrument, order, judgment, or decree to which the Debtors are subject.
(b)    FE Corp. hereby represents that it possesses all requisite power and authority necessary to (i) bind each of the FE Non-Debtor Parties to the terms of this Agreement and (ii) enter into, and perform under, this Agreement on behalf of the FE Non-Debtor Parties and that the Execution, delivery, and performance by FE Corp. of this Agreement, and the fulfillment of and compliance with the respective terms hereof by the FE Non-Debtor Parties, do not and shall not (i) conflict with or result in a breach of the terms, conditions, or provisions of, (ii) constitute a default under (whether with or without the passage of time, the giving of notice, or both), (iii) give any third party the right to modify, terminate, or accelerate any obligation under, (iv) result in a violation of, or (v) require any authorization, consent, approval, exemption, or other action by or notice or declaration to, or filing with, any Governmental Entity (other than such authorization, consent, approval, exemption, or other action the failure to obtain, satisfy, or comply with, as the case may be, which will not affect the validity or enforceability of the Agreement or have a material adverse effect on the FE Non-Debtor Parties' ability to perform their obligations under this Agreement) pursuant to (A) the organizational documents of the FE Non-Debtor Parties, (B) any law to which 

	
			
	 
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the FE Non-Debtor Parties are subject, or (C) any material agreement, instrument, order, judgment, or decree to which the FE Non-Debtor Parties are subject.
Section 9.    Governing Law.  This Agreement will be governed by the laws of the State of Ohio (or federal law, where applicable), without regard to its conflicts of laws principles that would require the law of another jurisdiction to be applied.
Section 10.    Representation by Counsel.  Each signatory acknowledges that it has been represented by counsel in connection with this Agreement and the transactions contemplated herein.  Accordingly, any rule of law or any legal decision that would provide any signatory with a defense to the enforcement of the terms of this Agreement against such signatory based upon lack of legal counsel shall have no application and is expressly waived.
Section 11.    Interpretation.  This Agreement is the product of negotiations of the Parties, and in the enforcement or interpretation hereof, is to be interpreted in a neutral manner, and any presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be drafted this Agreement, or any portion hereof, shall not be effective in regard to the interpretation hereof.
Section 12.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same agreement.  Delivery of an executed signature page of this Agreement by facsimile or other electronic means shall be as effective as delivery of a manually Executed signature page of this Agreement.
Section 13.    Entire Agreement.  This Agreement, the Settlement Agreement and the order approving this Agreement, constitute the complete and entire agreement among the Parties with respect to the matters contained in this Agreement, and supersede all prior agreements, negotiations, and discussions among the Parties with respect thereto.
Section 14.    Non-Reliance.  Each of the Parties acknowledges that, in entering into this Agreement, it is not relying upon any representations or warranties made by anyone other than those representations, warranties, terms and provisions expressly set forth in this Agreement.
Section 15.    Reservation of Rights.  Notwithstanding anything contained in this Agreement, the Debtors reserve their rights with respect to whether court approval is required for any future amendments or waivers to the Settlement Agreement.  
[SIGNATURE PAGE FOLLOWS]

	
			
	 
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year first listed above.
	
			
	FirstEnergy Solutions Corp., on behalf of itself and its direct and indirect subsidiaries.

	By:
	/s/ Kevin T. Warvell

	 
	Its:
	CFO

	 
	Date:
	April 18, 2019

	
			
	FirstEnergy Nuclear Operating Company

	By:
	/s/ Kevin T. Warvell

	 
	Its:
	CFO

	 
	Date:
	April 18, 2019

	
			
	FirstEnergy Corp., on behalf of itself and its direct and indirect non-Debtor subsidiaries.

	By:
	/s/ Steven R. Staub

	 
	Its:
	Vice President and Treasurer

	 
	Date:
	April 18, 2019

 

	
			
	 
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