Document:

akba-ex1038_957.htm

CONFIDENTIAL

 

EXHIBIT 10.38

 

Confidential Materials omitted and filed separately with the Securities and Exchange Commission. Double asterisks denote omissions.

 

October 24, 2018

Mr. Michael Chiang

Chief Executive Officer

Panion & BF Biotech, Inc.

16F No.3, Yuanqu St.

Nangang District

Taipei 115, Taiwan, ROC

 

Mr. John Butler

Chief Executive Officer

Akebia Therapeutics, Inc.

245 First Street

Cambridge, MA 02142

 

Dear Michael and John:

This Letter Agreement (“Letter Agreement”) sets forth the agreement between Keryx Biopharmaceuticals, Inc. (“Keryx”), Panion & BF Biotech, Inc. (“Panion”) and Akebia Therapeutics, Inc. (“Akebia”) (each, individually, a “Party” and collectively, the “Parties”), pursuant to which the Parties agree to certain terms related to the Amended and Restated License Agreement between Panion and Keryx dated March 17, 2008, as amended on November 14, 2008 (the “License Agreement”).   The effective date of this Letter Agreement is October 24, 2018 (the “Effective Date”).  All terms not defined herein shall have the meaning set forth in the License Agreement.

 

The Parties hereby agree as follows: 

	
 
	
a)
	
As of the Effective Date, Panion hereby rescinds any and all termination threats or notices related to the License Agreement provided to Keryx prior to such date, including without limitation the notices dated [**] and [**].  Panion, as of the Effective Date, waives any and all rights it may have to terminate the License Agreement pursuant to Section 12.3.1(a) based on any alleged breach by Keryx of Section 7.2 of the License Agreement until the Amendment, as defined below, is executed.  If the Amendment is executed, the Parties shall have those termination rights set forth in the License Agreement as may be modified by the Amendment.  

If the merger between Akebia and Keryx is not consummated, then Keryx and Panion will fulfill the obligations set forth in this Letter Agreement and negotiate in good faith an amendment to the License Agreement which shall include the terms set forth in Attachment A to this Letter Agreement (the “Amendment”) within [**] following the date the merger is formally abandoned; provided, however, that if the merger is not consummated and the Amendment is not executed within such [**] period, then the waiver set forth above shall expire.  

 

ActiveUS 172316334

CONFIDENTIAL

 

	
 
	
b)
	
Keryx will pay Panion five hundred thousand United States dollars ($500,000) within [**] after the Effective Date.

	
 
	
c)
	
The terms and conditions set out in paragraph (d) of this Letter Agreement shall come into effect immediately following the closing of the merger contemplated in the Agreement and Plan of Merger dated June 28, 2018, as amended on October 1, 2018 and as may be amended further from time to time, by and among Akebia, Alpha Therapeutics Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Akebia, and Keryx (such closing date, the “Closing Date”).  All other terms of this Letter Agreement, except for the terms set forth in Attachment A, will come into effect as of the Effective Date.  

	
 
	
d)
	
Promptly following the Closing Date, Akebia and Panion shall negotiate in good faith the Amendment which shall include the terms set forth in Attachment A to this Letter Agreement and shall use commercially reasonable efforts to enter into the Amendment within [**] following the Closing Date. 

	
 
	
e)
	
Notwithstanding anything to the contrary in Section 9.1 of the License Agreement, as of the Effective Date, Keryx shall have the sole right, but not the obligation, to conduct any litigation against an ANDA filer or other infringer of the Patent Rights in the Territory, as follows:  In the event that Keryx or Panion becomes aware that a Compound or a Product being made, used or sold by a third party infringes the Patent Rights licensed hereunder, such Party shall promptly, but in any event within [**] of becoming aware of such infringement, advise the other Party of all known facts and circumstances relating thereto.  Keryx shall have the sole right, but not the obligation, to enforce, at Keryx’s sole expense (including all costs, expenditures and attorney’s fees), the Patent Rights licensed under the License Agreement against infringement by any ANDA filer or other infringer in the Territory, and shall have the sole right to control the prosecution of such legal action and make all decisions with respect to such litigation, including the selection of outside counsel.  Panion shall reasonably cooperate in any such enforcement and, if necessary, join as a party therein, at the expense of Keryx.  Keryx shall have the right to retain 100% of the proceeds of any such enforcement action. Subject to any protective orders and Keryx’s confidentiality obligations to third parties, Keryx will keep Panion timely and fully apprised of all pleadings, motions, briefs and discovery requests, as well as all claims and defenses being asserted, and all material strategic decisions in any infringement litigation for Auryxia® (ferric citrate) and Fexeric® (ferric citrate).  The Amendment shall include the language set forth in this paragraph (e) as well as additional details as are customary for similar provisions in similar license agreements.  

	
 
	
f)
	
The Parties will agree on a regulatory plan for Fexeric® in Europe within four (4) months after the Effective Date.  

	
 
	
g)
	
Except as expressly provided herein, no right, title, or interest is granted by a Party to the other Parties in, to, or under any intellectual property or tangible rights of such Party.  No license or other right is or shall be created or granted hereunder by implication, estoppel, or otherwise.  All rights of a Party not expressly granted by such Party to the other Parties under this Letter Agreement are reserved by such Party and may be used by such Party for any purpose.

2

 

ActiveUS 172316334

CONFIDENTIAL

 

	
 
	
h)
	
This Letter Agreement is binding upon and inures to the benefit of the Parties.  The Parties agree that their rights and obligations under this Letter Agreement may not be transferred or assigned to a third party without the prior written consent of the other Parties, except to an affiliate of such Party or to a successor to all or substantially all of its business or assets relating to this Letter Agreement, whether by operation of law, sale, merger, or otherwise.  Any attempted assignment that is inconsistent with this paragraph (h) shall be null and void ab initio.

	
 
	
i)
	
Each Party agrees to keep the terms of this Letter Agreement, as well as any confidential or proprietary information disclosed by one Party to another Party or the other Parties in connection with the transaction contemplated by this Letter Agreement and negotiations related thereto, or any Party’s business information, or other confidential or proprietary information relating to a Party’s products and product candidates (“Confidential Information”), confidential in accordance with the following:  Each Party will hold in confidence any Confidential Information of the other Parties, not disclose any such Confidential Information to third parties, and not copy or use such Confidential Information other than to effect the intent of this Letter Agreement (the “Purpose”).  Each Party will treat all Confidential Information of the other Parties with the same degree of care as it accords to its own Confidential Information, and no less than reasonable care.  Each Party will only disclose Confidential Information of the other Parties to those of its employees or consultants who have a need to know such Confidential Information in connection with the Purpose and have previously agreed to keep it confidential.  If a receiving Party is legally required to disclose any Confidential Information, it will use its reasonable efforts to limit disclosure and to obtain confidential treatment or a protective order and allow to the fullest extent possible the disclosing Party to participate in the proceeding.  If the receiving Party is nonetheless, under advice of legal counsel, legally compelled, under applicable law, rule, regulation or rule of a securities exchange, to disclose any Confidential Information, the receiving Party may disclose such Confidential Information solely to the extent necessary to comply with the legal requirement.  The foregoing obligations will not apply to any Confidential Information which (as evidenced by contemporaneous documentation):  (i) the receiving Party can demonstrate was in its rightful possession free of any obligation of confidence prior to its first receipt from the other Party, (ii) is publicly known through no fault of the receiving Party, (iii) is obtained from a third party who had a right to disclose it without any confidentiality obligations, or (iv) the receiving Party can show was independently developed without access to any Confidential Information of the other Party. 

Furthermore, no Party will make any public announcement or otherwise disclose to any third party the existence of this Letter Agreement or the fact that discussions concerning the Amendment are taking place without the express written consent of the other Parties, except to the extent such disclosure is required by applicable law, rule or regulation, or rule of a securities exchange.  

Notwithstanding anything to the contrary in this paragraph (i), each Party shall have the right to disclose Confidential Information of the other Parties on a “need to know basis” to their respective affiliates, potential and future collaborators (including without limitation sublicensees), potential or actual acquirers, merger partners, or assignees, potential or actual research and development collaborators, subcontractors, investment bankers, investors, lenders, or other potential financial partners, and their respective directors, employees, contractors and agents, each of whom prior to disclosure must be bound by obligations of nondisclosure and non-use no less restrictive than the obligations set forth in this paragraph (i). 

3

 

ActiveUS 172316334

CONFIDENTIAL

 

	
 
	
j)
	
No delay, waiver, omission or forbearance on the part of any Party to exercise any right, option, duty or power arising out of any breach or default by any other Party of any of the terms, provisions or covenants hereof will constitute a waiver by such Party of its rights to enforce any such right, option, duty or power as against the other Parties, or its rights as to any subsequent breach or default by the other Parties.

	
 
	
k)
	
This Letter Agreement shall be governed by and construed in accordance with the laws of the State of New York, exclusive of choice-of-law rules.  Any dispute between the Parties arising from or relating to this Letter Agreement will be determined exclusively by the United States District Court for the Southern District of New York (and the appellate courts thereof), to whose jurisdiction the Parties irrevocably consent; provided, however, if for any reason that Court should lack jurisdiction over any such suit, the same shall be brought exclusively in the New York State Supreme Court, New York County, to whose jurisdiction the Parties irrevocably consent.

	
 
	
l)
	
This Letter Agreement constitutes the full understanding and entire agreement among the Parties and supersedes any and all prior or contemporaneous oral or written understandings and agreements with respect to the subject matter hereof.  For the avoidance of doubt, the License Agreement shall remain in full force and effect.  No terms, conditions, understandings, or agreements purporting to modify, amend, waive or terminate this Letter Agreement, or any provision hereof, shall be binding except by the execution of a writing specified to be an explicit amendment to this Letter Agreement duly executed by the authorized signatories of the Parties.  No modification, waiver, termination, rescission, discharge or cancellation of any right or claim under this Letter Agreement shall affect the right of any Party to enforce any other claim or right hereunder.  This Letter Agreement may be executed in counterparts, each of which shall constitute an original and all of which shall together constitute a single agreement.  This Letter Agreement may be executed and delivered electronically, including via PDF format, and upon such delivery such electronic signature will be deemed to have the same effect as if the original signature had been delivered to the other Parties.  The negotiation, execution and performance of this Letter Agreement or the Amendment shall not constitute, or be construed as, an admission of liability or infirmity of any defense or claim whatsoever by any Party regarding the License Agreement, nor be admissible as evidence thereof in any dispute among the Parties.

[Signature Page Follows]

 

4

 

ActiveUS 172316334

CONFIDENTIAL

 

To agree that this Letter Agreement accurately reflects our mutual agreement, please execute and return to me a copy of this Letter Agreement.

 

			
	
 
	
KERYX BIOPHARMACEUTICALS, INC.

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
By:
	
/s/ Jodie Morrison

	
 
	
Name:
	
Jodie Morrison

	
 
	
Title:
	
Interim Chief Executive Officer

 

 

Agreed to this    24             day of    October                       , 2018

 

			
	
PANION & BF BIOTECH, INC.
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Michael Chiang
	
 

	
Name:
	
Michael Chiang
	
 

	
Title:
	
Executive President
	
 

 

 

Agreed to this _____ day of ________, 2018 

 

			
	
AKEBIA THERAPEUTICS, INC.
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ John P. Butler
	
 

	
Name:
	
John P. Butler
	
 

	
Title:
	
President and Chief Executive Officer

	
 
	
 
	
 

	
 
	
 
	
 

	
AKEBIA THERAPEUTICS, INC.
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Jason A. Amello
	
 

	
Name:
	
Jason A. Amello
	
 

	
Title:
	
Senior Vice President, Chief Financial Officer and Treasurer

 

 

 

5

 

ActiveUS 172316334

CONFIDENTIAL

 

Attachment A

The following terms shall be included in the Amendment:

	
EU Joint Steering Committee:
	
The Parties will establish an EU Joint Steering Committee (the “JSC”), comprised of Panion and Akebia representatives, which shall oversee the development and commercialization of Fexeric® (ferric citrate) in Europe consistent with the provisions in this Attachment A.  The JSC will have the following responsibilities: (1) review and discuss a [**], (2) discuss and approve a [**], and (3) review and discuss a plan [**].

	
Commercialization in Europe:
	
The Parties will use commercially reasonable efforts to agree on a commercialization plan for Fexeric® in Europe, which will include partnering with a third party, within [**] after the effective date of the Amendment, provided that if, within such [**] time period, there is no agreed-upon plan, Akebia, at its sole discretion, will either (1) launch Fexeric® in [**] in Europe within the [**] following the expiration of such [**] period, (2) agree to pay Panion a license maintenance fee, with no further obligation with respect to the development or commercialization of Fexeric® in Europe, such fee to equal $[**] for the first full calendar year after the effective date of the Amendment, $[**] for the second full calendar year after the effective date of the Amendment, and $[**] for each subsequent full calendar year after the effective date of the Amendment, or (3) [**] on commercially reasonable terms to be negotiated by the Parties.  If Akebia proceeds with option (3) above, Panion will not be required to pay any upfront payment in connection with [**]. 

	
License to Keryx-Owned IP:
	
Akebia will provide Panion an exclusive license, with the right to sublicense with Akebia’s prior consent (which shall not be unreasonably withheld or delayed), under the Akebia/Keryx-owned patents covering Fexeric® to make, use, sell, offer for sale and import Fexeric® in the following countries:  [**] in the Asia-Pacific region, [**] (the “Panion Territory”).  In return, Panion will pay Akebia a [**]% royalty on net sales of Fexeric® in the Panion Territory.  

	
Other:
	
The Amendment will contain such other terms and conditions as the Parties reasonably deem appropriate.

These terms in this Attachment A are not legally binding and are for discussion purposes only; they are expressly subject to the approval of each Party’s senior management and/or Board of Directors.  

6

 

SWDocIDLocationakba-ex1056_1208.htm

 

EXHIBIT 10.56

 

EMPLOYEE AGREEMENT

 

CONFIDENTIALITY, NON-SOLICITATION,

NON-COMPETITION AND DEVELOPMENTS AGREEMENT

 

In consideration of my [employment/continued employment] by Akebia Therapeutics, Inc. (“Akebia” or the “Company”), my access to Akebia confidential and proprietary business information and the discretionary grant to me of equity in the Company, I hereby covenant and agree with the Company as follows:  

 

1.Exclusivity of Services:  During the period of my employment by the Company, I shall devote my full time and best efforts to the business of the Company and I shall neither pursue, directly or indirectly, alone or as a partner, joint venturer, officer, director, employee, consultant, agent, independent contractor or significant stockholder of any company or business, any business opportunity outside the Company, nor take any position with any organization other than the Company, without the written approval of the Chief Executive Officer of the Company.

 

2.Confidentiality / Trade Secrets / Non-Disclosure 

 

(a)During the term of my employment by the Company and at any time following the termination of my employment by the Company for any or no reason, whether voluntary or involuntary, with or without cause, I will not, without the express prior written consent of the Senior Vice President, Chief Human Resources Officer of the Company, disclose to others, use or publish (other than as may be required by my duties while employed by the Company in the ordinary course of the Company’s business) any proprietary, secret or confidential information of the Company (“Confidential Information”), which for the purposes hereof shall include, without limitation, information designated by the Company as “proprietary,” “secret,” or “confidential” (or otherwise similarly designated) or information which is not generally known to those outside of the Company detailing, listing, describing or otherwise relating to:

 

(i)the business, conduct or operations of the Company or any of the Company’s customers, licensors, licensees, collaborators, suppliers, vendors or consultants, including (without limitation) customer lists and customer contact information; manufacturing, development and other technical methodologies, processes and applications; production schedules; financial plans, information and data; pricing information; business and/or product development plans; marketing plans; drug formulations; and clinical trial data (including, without limitation, the identity of and information about trial participants; trial results; and related regulatory actions or inactions); 

 

(ii)any materials, devices, processes, methods, know-how, ways of business, programs, formulae, compositions, compounds, technology, intellectual property, inventions, research, development and the like, used in organizing, researching, developing, promoting, managing or exploiting the Company’s products or product candidates; and/or

 

 

-1-

 

 

(iii)the existence or betterment of, or possible new uses or applications for, any of the Company’s products or product candidates.

 

(b)I further agree that during the term of my employment by the Company and at any time following the termination of my employment by the Company for any or no reason, whether voluntary or involuntary, with or without cause, I will not disclose to others, use or publish (other than as may be required by my duties while employed by the Company in the ordinary course of the Company’s business) any Company Trade Secrets.  The term “Trade Secrets” shall be given its broadest possible interpretation under the Defend Trade Secrets Act of 2016, and shall include (without limitation) all forms and types of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, or codes, whether tangible or intangible, and whether or how stored, that is compiled, or memorialized physically, electronically, graphically, photographically, or in writing by the Company.  

 

(c)I acknowledge and understand that: (i) I shall not be held criminally or civilly liable under any federal or state Trade Secret law for the disclosure of a Trade Secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; (ii) I shall not be held criminally or civilly liable under any federal or state Trade Secret law for the disclosure of a Trade Secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (iii) if I file a lawsuit for retaliation for reporting a suspected violation of law I may disclose the Trade Secret to my attorney and use the Trade Secret information in the court proceeding, provided I file any document containing the Trade Secret under seal and do not disclose the Trade Secret, except pursuant to court order.

 

(d)I acknowledge that the obligations of confidentiality and non-disclosure set forth in this Section 2 extend to any proprietary information of any third parties contracting with the Company, whether or not the Company has undertaken an express obligation of confidentiality with regard to such parties.  I also acknowledge that the Company is now and may hereafter be subject to non-disclosure or confidentiality agreements with third persons pursuant to which the Company must protect or refrain from use of proprietary information which is the property of such third persons.  I hereby agree upon the direction of the Company to be bound by the terms of such agreements in the event I have access to the proprietary information protected thereunder to the same extent as if I was an original individual signatory thereto.

 

(e)I understand that, notwithstanding the forgoing, this Agreement does not limit my ability to communicate with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, any agency Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”), including to report possible violations of federal law or regulation or making other disclosures that are protected under the whistleblower provisions of federal law or regulation, or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company, to any Government Agency.

 

-2-

 

 

 

3.Return of Property:  Upon the termination of my employment (and regardless of whether such termination is voluntary or involuntary), I will promptly return to the Senior Vice President, Chief Human Resources Officer of the Company all of Company property, including but not limited to all Confidential Information, documents, data and files (whether in electronic or hard copy form, and all copies and drafts thereof); keys, access card or badges; Company-issued credit cards; computers, cell phones or PDAs; and any other tangible equipment.  By signing below, I authorize the Company, to the extent permissible under applicable law, to deduct from my final paycheck the cost of replacing any property that I fail to return or any money owed to the Company.

 

4.Assignment of Rights to Intellectual Property

(a)I agree that during my employment I shall not make, use or permit to be used any notes, memoranda, reports, lists, records, drawings, sketches, specifications, software programs, intellectual property, data, documentation or other materials of any nature relating to any matter within the scope of the business of the Company or concerning any of its dealings or affairs other than for the benefit of the Company.  I further agree that I shall not, after the termination of my employment (regardless of whether such termination is voluntary or involuntary), use or permit to be used any such notes, memoranda, reports, lists, records, drawings, sketches, specifications, software and/or hardware programs, intellectual property, data, documentation or other materials, it being agreed that all of the foregoing shall be and remain the sole and exclusive property of the Company and that immediately upon the termination of my employment I shall deliver all of the foregoing, and all copies thereof, to the Senior Vice President, Chief Human Resources Officer of the Company, at its main office or at my assigned work location.

 

(b)If at any time or times during my employment I shall (either alone or with others) develop intellectual property (whether or not patentable or registrable under copyright or similar statutes or subject to analogous protection; hereinafter “Intellectual Property”), such Intellectual Property and the benefits thereof shall immediately become the sole and absolute property of the Company and its assigns, and I shall promptly disclose to the Senior Vice President, Chief Human Resources Officer of the Company (or any persons designated by it) such Intellectual Property and hereby assign any rights I may have or acquire in the Intellectual Property and benefits and/or rights resulting therefrom to the Company and its assigns without further compensation and shall communicate, without cost or delay, and without publishing the same, all available information relating thereof (with all necessary plans and models) to the Senior Vice President, Chief Human Resources Officer of the Company.

 

(c)Upon disclosure of such Intellectual Property to the Company, I will, during my employment and at any time thereafter, at the request of and cost to the Company, sign, execute, make and do all such deeds, documents, acts and things as the Company and its duly authorized agents may reasonably require to:

 

(i)apply for, obtain and vest in the name of the Company alone (unless the Company otherwise directs) letters patent, copyrights or other analogous protection in any country throughout the world and when so obtained or vested to renew and restore the same; and

 

-3-

 

 

 

(ii)defend any opposition proceedings in respect of such applications and any opposition proceedings or petitions or applications for revocation of such letters patent, copyright or other analogous protection.

 

In the event the Company is unable, after reasonable effort, to secure my signature on any letters patent, copyright or other analogous protection relating to Intellectual Property, whether because of my physical or mental incapacity or for any other reason whatsoever, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney-in-fact, to act for and in my behalf and stead to execute and file any such application or applications and to do all other lawfully permitted acts and to further the prosecution and insurance of letters patent, copyright or other analogous protection thereon with the same legal force and effect as if executed by me.

 

(d)I represent that the Intellectual Property identified in Exhibit A hereto comprises all the Intellectual Property which I have developed prior to my employment by the Company, which Intellectual Property is excluded from this Agreement (“Prior Development”).  I understand that it is only necessary to list the title and purpose of such Intellectual Property but not details thereof.

 

(e)If, in the course of my employment with the Company, I incorporate a Prior Development into any product, product candidate or service of the Company, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to sublicense through multiple tiers of sublicensees) to make, have made, import, modify, use, offer to sell, and sell such Prior Development.  Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be incorporated, Prior Developments in any product, product candidate or service of the Company without the Company’s prior written consent.

 

5.Non-Competition:  

 

(a)During my employment by the Company and for the six (6) month period following the date on which my employment terminates for any or no reason, whether voluntary or involuntary (the “Non-Compete Period”), and provided the Company first makes a one-time payment to me of $5,000, I will not, without the Company’s prior written consent, directly or indirectly: (i) become employed by or render any service to any person or entity that competes  or plans to compete with the Business of the Company; or (ii) alone or as a partner, joint venturer, officer, director, employee, consultant, agent, independent contractor or stockholder of any company or business, engage in any business activity that directly or indirectly competes or plans to compete with any of the products being developed, marketed, distributed, planned, sold or otherwise provided by the Company at such time.  

 

(b)For the purpose of this Agreement, the “Business of the Company” means the research, development, licensing and/or commercialization of one or more products or product candidates (i) related to the treatment of anemia and related conditions and/or (ii) based on hypoxia-inducible factor (HIF) biology or hypoxia-inducible factor prolyl hydroxylase (HIF-PH) 

 

-4-

 

 

biology and/or (iii) related to the treatment of hyperphosphatemia or the control of serum phosphorus levels.  The foregoing, however, shall not prevent my passive ownership of two percent (2%) or less of the equity securities of any publicly traded company. 

 

(c)I understand and agree that payment set forth in Section 5(a) above (i) has been mutually agreed upon by me and the Company, (ii) is fair and reasonable, and (iii) is sufficient in exchange for my obligations set forth in this Section 5.

 

(d)I understand that, at or around the time my employment with the Company ends, and in the Company’s sole discretion, the Company may waive my obligations in this Section 5, in which case the Company will not be required to provide me with the payment set forth in Section 5(a) above.  

 

(e)I understand that my obligations set forth in Section 5(a) may not be enforceable if, at the time my employment with the Company terminates, I am (i) classified by the Company as non-exempt under the Federal Fair Labor Standards Act or (ii) enrolled in a full-time or part-time undergraduate or graduate educational institution.  

 

(f)I further understand that my obligations set forth in Section 5(a) may not be enforceable if I am laid off by the Company or if my employment is terminated by the Company without Cause.  For purposes of this Agreement, “Cause” shall mean the following: (i) the Company determines in good faith that there exists a reasonable basis for its dissatisfaction with my employment or performance, such as lack of capacity or diligence, failure to conform to usual standards of conduct, or other culpable or inappropriate behavior; or (ii) in the Company’s honest judgment, the needs of the business require the termination of my employment.

 

(g)For the avoidance of doubt, I understand that if my obligations set forth in Section 5(a) are not enforceable for any of the reasons set forth in Sections 5(e) or 5(f), then the Company will not be required to provide me with the payment described in Section 5(a). 

 

6.Non-Solicitation of Employees:  During my employment by the Company and for a period of twelve (12) months thereafter (the “Restricted Period”), I will not, directly or indirectly, in any way encourage, induce or solicit (or attempt to encourage, induce or solicit) any employee, consultant or independent contractor to terminate his, her or its relationship with the Company.

 

7.Non-Solicitation of Certain Third Parties:  I understand and agree that the relationship between the Company and certain third parties constitutes a valuable asset of the Company and may not be converted to my own use.  Accordingly, during the Restricted Period, I will not, directly or indirectly (i) call-on, solicit, divert, take away or do business with (or in any manner attempt to call-on, solicit, divert, take away or do business with) any past, present or prospective customer, account, collaborator, licensee or other business relation of the Company with whom I interacted or learned of during my employment with the Company; (ii) in any way interfere with the relationship between any such customer, account, collaborator, licensee or business relation and the Company; or (iii) solicit or encourage any customer, account, collaborator, licensee or other business relation of the Company to terminate or diminish its relationship with the Company.  

 

 

-5-

 

 

8.No Conflicting Obligations:  I hereby represent that, except as I have disclosed in writing to the Company, I am not a party to, or bound by the terms of, any agreement with or obligation to any previous employer or other party to refrain from using or disclosing any Trade Secret or confidential or proprietary information in the course of my employment with the Company or to refrain from competing, directly or indirectly, with the business of such previous employer or any other party.  I further represent that my performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement or obligation to keep in confidence proprietary information, knowledge or data acquired by me in confidence or in trust prior to or during my employment with the Company, and I will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others.  By signing below, I acknowledge that the Company has instructed me not to bring to the Company’s premises, install on any Company computer, use, or disclose any confidential information belonging to a third party during my employment with the Company.

 

9.Remedies for Breach:  I agree that my breach of any covenant in this Agreement will cause irreparable damage to the Company and that, in the event of such breach, the Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance or other equitable relief to prevent the violation of my obligations hereunder.  I understand and agree that in the event I breach any of the covenants contained herein during the Non-Compete Period and/or Restricted Period, as applicable, the Non-Compete Period and/or the Restricted Period, as applicable, shall be extended automatically.  The duration of such extension shall equal the period of time between the date I began such violation and the date I permanently cease such violation.  I further understand and agree that in the event I breach or fail to honor any term of this Agreement, and the Company is successful in whole or in part in any legal or equitable action to defend its rights under or to enforce any terms of this Agreement, I shall be required to reimburse the Company for all costs, expenses and reasonable attorneys’ fees associated with such action.  

 

10.Employment at Will:  I acknowledge and agree that this Agreement does not constitute an express or implied employment contract and that my employment with the Company will be on an “at-will” basis.  Accordingly, I understand that this Agreement does not create an obligation on the Company or any other person or entity to continue my employment and that either the Company or I may terminate my employment at any time, for any or no reason, with or without cause.  

 

11.Modification and Waiver:  Any amendment to or modification of this Agreement, and any waiver of any provision hereof, shall be valid only if set forth in a writing signed by the Chief Executive Officer of the Company.  Any waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach hereof.  

 

12.Severability:  I hereby agree that each provision herein shall be treated as a separate and independent clause, and the unenforceability of any one clause shall in no way impair the enforceability of any of the other clauses herein.  Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to 

 

-6-

 

 

scope, activity or subject so as to be unenforceable at law, such provision or provisions shall be construed by the appropriate judicial body by limiting and reducing it or them, so as to be enforceable to the maximum extent compatible with applicable law.  

 

13.Applicable Law / Jurisdiction / Jury Waiver:  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to the conflicts of laws principles thereof.  In addition, I acknowledge that because I will have regular interaction with Company representatives based in Massachusetts, any dispute concerning this Agreement shall be heard only and exclusively by a court of competent jurisdiction within Massachusetts.  By signing below, I acknowledge that I am subject, and hereby consent, to the personal jurisdiction and venue of the Massachusetts courts in any county where the Company has operations or facilities.  Both parties further agree that any such dispute shall be tried by a judge alone, and both parties hereby waive and forever renounce the right to a trial before a civil jury in any such dispute.

 

14.Successors and Assigns:  The terms “Company” and “Akebia” shall include Akebia Therapeutics, Inc. and any of its subsidiaries, including without limitation Keryx Biopharmaceuticals, Inc., subdivisions or affiliates.  The Company shall have the right to assign this Agreement to its successors and assigns, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns.  

 

15.Survival / Changes in Role or Title:  I acknowledge that my covenants in this Agreement are given in exchange for, among other things, my [employment/continued employment], the terms and conditions of such employment, my access to Akebia confidential and proprietary business information and the discretionary grant to me of equity in the Company.  My covenants are not tied to my present role, title or responsibilities.  Therefore, the covenants in this Agreement shall survive any change in my role, title, responsibilities, compensation, benefits, or any other term or condition of my employment.

 

16.Notifications Regarding New Employers:  During the Restricted Period I hereby (a) agree to promptly inform the Senior Vice President, Chief Human Resources Officer of the Company of the name and address of any prospective employer or other prospective recipient of my services; (b) agree to provide a copy of this Agreement to any employer, prospective employer or other prospective recipient of my services; and (c) authorize the Company to provide copies of this Agreement to any person or entities that may or does employ or do business with, or consider employing or doing business with, me in the future.  

 

17.Entire Agreement:  This Agreement supersedes any and all prior oral and/or written agreements, and sets forth the entire agreement, between me and the Company with respect to the subject matter hereof, except that any Employee Agreement (Confidentiality, Non-Solicitation, Non-Competition and Developments Agreement), any Proprietary Information and Inventions Agreement, and/or any agreement containing confidentiality, non-solicitation, non-competition and/or development provisions, in each case, between me and the Company entered into on or about the time of the commencement of my employment with the Company or at any time during my employment with the Company (each, a “Prior Agreement”) shall remain in full force and effect in accordance with its terms.  In the event of any inconsistency between the provisions of this Agreement and the provisions of any Prior Agreement, the provisions of this Agreement shall control.  

 

-7-

 

 

 

18.Counterparts:  This Agreement may be executed in counterparts, each of which will be deemed an original but all of which will constitute one and the same instrument.

 

	
	
Very truly yours,

	
 

	
John P. Butler

	
Chief Executive Officer

 

Intending to be legally bound hereby, I have signed this Agreement under seal as of the day and year written below. I hereby acknowledge that I have been advised and am aware of my right to consult with an attorney prior to signing this Agreement.

 

						
	
AGREED TO AND ACCEPTED
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
 
	
Date:
	
 

	
 
	
 
	
 
	
 

	
Name:
	
 
	
 
	
 

 

 

-8-

 

 

Exhibit A

PREVIOUS INVENTIONS

 

			
	
TO:
	
 
	
Akebia Therapeutics, Inc.

	
 
	
 
	
 

	
FROM:
	
 
	
 

	
 
	
 
	
[Please Print Full Name Above]

	
 
	
 
	
 

	
DATE:
	
 
	
 

	
 
	
 
	
 

	
SUBJECT:
	
 
	
Previous Inventions

 

1.Except as listed in Section 2 below, the following is a complete list of all inventions, copyrighted works or improvements relevant to the subject matter of my employment by the Company (as defined in the Agreement to which this Exhibit A is attached) that have been made or conceived or first reduced to practice by me alone or jointly with others prior to my employment by the Company:

 

				
	
 
	
☐     No inventions or improvements.

	
 
	
 

	
 
	
☐     See below:

	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
☐     Additional sheets attached.

	
 
	
 
	
 
	
 

 

2.Due to a prior confidentiality agreement, I cannot complete the disclosure under Section 1 above with respect to inventions or improvements generally listed below, the proprietary rights and duty of confidentiality with respect to which I owe to the following party(ies):

 

	
 
	
Invention or Improvement
	
 
	
Party(ies)
	
 
	
Relationship
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
1.
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2.
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
3.
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
☐    Additional sheets attached.
	
 
	
 
	
 
	
 
	
 

 

 

-9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}]]