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Exhibit 10.9  

October 21,
2003 

Jacob
(Jake) J. Plattner, Ph.D. 

	Re:
	Offer of Employment by Anacor Pharmaceuticals, Inc.  

Dear Jake: 

        I
am very pleased to confirm to you our offer of employment with Anacor Pharmaceuticals, Inc. (the "Company") as our Senior Vice President, Research and Development, a
full-time, exempt level position reporting directly to me and working in our Bay Area location. Subject to fulfillment of all conditions imposed by this offer letter, including the
completion of services to the Company as outlined in Anacor Pharmaceuticals, Inc. Consulting Agreement between you and the Company (copy enclosed), we would like your start date to be as soon
after January 1, 2004 as possible, but no later than February 17, 2004, as mutually agreed to by you and the Company. In this key position and as part of the senior management team, you
will provide strategic scientific leadership with primary responsibility for selecting, prioritizing, and accelerating the development of novel anti-invective drug candidates. You will
plan, organize, and manage the discovery and pre-clinical programs for the Company, ensuring that appropriate drug candidates are selected for development and sufficient resources are
committed for success. You will also participate in related tasks as assigned by the Company. The terms of our offer and the benefits currently provided by the Company are as follows: 

        1.     Your
starting base salary will be $12,083.33 per semi-monthly pay period, which is equivalent to $290,000 annually, and will be paid per the Company's
standard payroll process and less all applicable taxes and withholdings. In addition, you will be eligible for a performance bonus of up to twenty percent (20%) of your base salary ("Performance
Bonus"). Fifty percent (50%) of the Performance Bonus is contingent on your achievement of individual performance objectives as mutually established by you and the Company ("Individual Component").
The remaining fifty percent (50%) of the Performance Bonus is contingent on the Company's achievement of its corporate objectives ("Company Component"). The Individual Component of the Performance
Bonus will be assessed on, and if earned, paid on a quarterly basis and prorated for your length of service. The Company Component of the Performance Bonus will be assessed on, and if earned, paid on
an annual basis, and prorated for your length of service. The Company will determine in its sole discretion, the level of achievement of each Performance Bonus component. The Performance Bonus, if
earned, will be paid less all applicable taxes and withholdings. 

        2.     As
a full-time employee you will be eligible to participate in health insurance, and other employee benefit plans established by the Company, subject to any
eligibility requirements imposed by such plans. You will also be eligible for paid time off ("PTO") equal to four (4) weeks or twenty (20) working days accrued per year of service, which
will accrue on a prorated basis each pay period during which you are an active employee. 

        3.     In
an effort to facilitate your relocation closer to the Company headquarters, upon commencing employment with the Company, the Company will provide you with a
one-time moving bonus of $30,000 ("Moving Bonus"). The Moving Bonus will be paid to you in your first regular paycheck, less all applicable taxes and withholdings. If your employment with
the Company terminates by reason of voluntary resignation or for cause (as defined below), within one year of your effective start date, you agree to repay the Company, the pro-rated
portion of the total Moving Bonus corresponding to the remaining period in the one year. Such repayment will be due to the Company upon termination of employment. For purposes of this agreement
"cause" is defined as failure or refusal to comply in any material respect with the reasonable policies, standards or regulations of the Company; causing material loss or damage to the Company; a good
faith determination by the 

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Company's
Chief Executive Officer of substandard performance or failure to perform duties determined by the Company; unethical or fraudulent conduct; material breach of a term of this offer agreement
or of the Confidential Information and Invention Assignment Agreement, including, without limitation, theft of the Company's proprietary information; or an unlawful or criminal act which would reflect
badly on the Company in the Company's reasonable judgment. 

        4.     As
a full-time employee of the Company, you agree that you will devote all of your business time and attention to the business of the Company, and that the
Company will be entitled to all of the benefits and profits arising from or incident to all such work services and advice. You further agree that during the course of your employment with the Company,
you will not render commercial or professional services of any nature to any person or organization, whether or not for compensation, without the prior written consent of the Company's Chief Executive
Officer, and you will not directly or indirectly engage or participate in any business that is competitive in any manner with the business of the Company, as determined by the Company. 

        5.     As
an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain
information or inventions, which will be the property of the Company. To protect the interests of the Company, you will be required to sign the Company's standard "Confidential Information and
Invention Assignment Agreement" as a condition of your employment. We wish to impress upon you that we do not want you to bring with you any confidential or proprietary material of any former employer
or to violate any other obligations you may have to any former employer. 

        6.     We
will recommend to the Board of Directors of the Company (the "Board") that you be granted the opportunity to purchase 175,000 options of Common Stock of the Company
("Options"), under its 2001 Equity Incentive Plan (the "Plan") at the fair market value of the Company's Common Stock, as determined by the Board upon their approval of such grant.
Twenty-five percent (25%) of the Options will vest on the one year anniversary date of your employment, and the remaining Options will vest monthly in equal portions over the following
three years for a total vesting term of four years. However, should you engage in and complete a consulting assignment with the Company immediately prior to your employment with the Company, per the
terms of the Anacor Pharmaceuticals, Inc. Consulting Agreement signed by you and the Company, upon your employment, we will recommend to the Board that your Options commence vesting as if your
effective date of hire had been January 1, 2004, such that the commensurate portion of the Options will be vested on your February 2004 employment date. The Options will be governed by
the terms and conditions of the Plan and corresponding option agreement. Further details on the Plan and any specific option granted to you will be provided upon approval of such grant by the
Company's Board. 

        7.     Contingent
upon the Board's further approval, you will be eligible for certain acceleration benefits for the vesting of restricted stock and/or stock options held by you
in the event of a "Change of Control" of the Company, per the enclosed Change of Control Provisions (Exhibit A), which is a summary of the key provisions of this acceleration benefit. 

        8.     While
we look forward to a mutually satisfying relationship, should you decide to accept our offer, your employment is for no specific period of time and you will be an
at-will employee of the Company, which means the employment relationship can be terminated by either you or the Company for any or no reason, at any time, with or without notice. Any
statements or representations to the contrary (and, indeed, any statements contradicting any provision in this letter) should be regarded by you as ineffective. This at-will provision may
only be amended in a writing signed by both you and the Company's Chief Executive Officer. Further, your participation in any stock option or benefit programs is not to be regarded as assuring you of
continuing employment for any particular period of time. As always, the Company reserves the right to modify, delete, or otherwise amend its benefits, compensation and incentive programs from time to
time as it deems necessary in its sole discretion. 

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        9.     For
purposes of federal immigration law, and as a requirement of employment with the Company, within three (3) business days of starting your new position you will
need to present documentation demonstrating your identity and eligibility to work in the United States. If you have questions about this requirement, which applies to U.S. citizens and
non-U.S. citizens alike, you may contact Human Resources. 

        10.   This
offer supersedes and replaces any prior representations or agreements, written, verbal or otherwise, between you and the Company regarding the terms described in
this letter. This offer, if not accepted, will expire on October 24, 2003. Please sign this letter below and return one original, along with executed originals of the referenced and enclosed
documents as applicable, to Anacor Pharmaceuticals, Inc., Attention: Human Resources. Your signature will acknowledge that you have read and understood and agreed to the terms and conditions of
this offer letter as well as the referenced and enclosed documents. A duplicate letter is enclosed for your files. Should you have anything else that you wish to discuss, please do not hesitate to
call us. 

We
look forward to the opportunity to welcome you to the Company. 

Very
truly yours, 

/s/
DAVID PERRY 

David
Perry

Chief Executive Officer 

I
have read and understood this offer letter and hereby acknowledge, accept and agree to the terms set forth above. No further commitments were made to me as a condition of employment. 

	/s/  JACOB PLATTNER      	 	Date Signed:	 	10/24/03
	
	 	 	 	

	Jacob (Jake) J. Plattner, Ph.D.	 	 	 	 
	

 	
 	

Effective Start Date:	
 	

2/25/04
	 	 	 	 	

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Exhibit A    
    

 
  Anacor Pharmaceuticals, Inc.    
    
    Change of Control Provisions    
    

        The effectiveness of the Change of Control Provisions is contingent upon approval by the Board of Directors of Anacor Pharmaceuticals, Inc. (the
"Company"). 

Terms: 

        In
the event your employment with the Company is terminated without Cause or you are subject to an Effective Termination in connection with or at any time within twelve
(12) months following a Change of Control, and contingent on you executing a Release Agreement at that time, all restricted stock and stock options granted to you and held by you (the "Shares")
shall immediately vest if the Change of Control is a Liquidity Event, or (ii) 50% of the remaining unvested Shares shall become vested if the Change of Control is not a Liquidity Event. In
addition, the Company's Board of Directors (the "Board") may, in its sole discretion, accelerate the vesting of some or all of the Shares in connection with a Change of Control. 

Definitions: 

        Change of Control. "Change of Control" shall mean a sale of all or substantially all of the Company's assets, or any merger or
consolidation of the Company with or into another corporation other than a merger or consolidation in which the holders of more than 50% of the shares of capital stock of the Company outstanding
immediately prior to such transaction continue to hold (either by voting securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of
the total voting power represented by the voting securities of the Company, or such surviving entity, outstanding immediately after such transaction. For purposes of clarification, an equity financing
will not be a Change of Control, even if equity securities representing greater than 50% of the total voting power of the Company are sold. 

        Cause. "Cause", for the purposes of the Change of Control Provisions, means (A) gross negligence or willful misconduct in the
performance of duties to the Company where such gross negligence or willful misconduct has resulted or is likely to result in substantial and material damage to the Company or its subsidiaries;
(B) deliberate violation of a Company policy; (C) repeated unexplained or unjustified absence from the Company; (D) a material and willful violation of any federal or state law;
(E) commission of any act of fraud with respect to the Company; (F) conviction of a felony or a crime involving moral turpitude causing material harm to the standing and reputation of
the Company; (G) unauthorized use or disclosure of any proprietary information or trade secrets of the Company or any other party to whom you owe an obligation of non-disclosure as
a result of your relationship with the Company; or (H) your death or Permanent Disability, in each case as determined in good faith by the Board. 

        Effective Termination. "Effective Termination" means your voluntary termination of your employment with the Company within thirty
(30) days following the occurrence of any of the following without your consent: (A) a material reduction or change in job duties, responsibilities and requirements inconsistent with
your position with the Company and your prior duties, responsibilities and requirements prior to the Change of Control, provided that neither a mere change in title along nor reassignment following a
Change of Control to a position that is substantially similar to the position held prior to the Change of Control in terms of job duties, responsibilities or requirements shall constitute a material
reduction in job responsibilities; (B) any material reduction of your then current base salary (other than in connection with a general decrease in base salaries for most employees or other
senior executives of the successor corporation); or (C) your refusal to relocate to 

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the
principal place for performance of Company duties to a location more than fifty (50) miles from the Company's then current location at the time of the Change of Control. 

        Liquidity Event. "Liquidity Event" means a Change of Control which results in the holders of the Company's Series B Preferred Stock
receiving at least three (3) times the original purchase price for such shares if after the Series B financing. For purposes of this section, the consideration received by the holders of
Series B Preferred Stock shall be valued in the manner set forth in the Company's Certificate of Incorporation, as it may be amended from time to time. 

        Permanent Disability. "Permanent Disability" shall mean your inability to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than six
(6) months. 

        Release Agreement. If any events occur which entitle you to any benefits under the Change of Control Provisions, as a condition to your
receiving such benefits, you shall execute the Company's standard form of "Release Agreement" releasing the Company from any claims relating to your employment or termination of your employment. 

Other Terms:  

        You shall be entitled to receive the acceleration benefit to the extent of the maximum after-tax benefit to you, after taking into account any excise
tax that may be imposed upon the benefit that is characterized as an "excess parachute payment" under applicable law. You are advised to consult with your own tax or financial advisor to understand
the possible financial and tax implications as a result of receiving any such benefits. 

        The
terms of this agreement amend and supercede any prior change of control agreements. 

	AGREED AND ACCEPTED:	 	 
	

/s/ Jacob J. Plattner
 Jacob (Jake) J. Plattner, Ph.D.	
 	

10/27/06
 Date

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Exhibit A

Anacor Pharmaceuticals, Inc. Change of Control ProvisionsQuickLinks
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Exhibit 10.10  

 
  ANACOR PHARMACEUTICALS, INC.    
    
    CONSULTING AGREEMENT    
    

        This Consulting Agreement (the "Agreement") is entered into by and between Anacor Pharmaceuticals, Inc., a
Delaware corporation (the "Company"), and Stephen J. Benkovic, Ph.D. ("Consultant"). 

        1.    Consulting Relationship.    During the term of this Agreement, Consultant will provide
consulting services (the "Services") to the Company as described on Exhibit A attached to this
Agreement. Consultant represents that Consultant is duly licensed (as applicable) and has the qualifications, the experience and the ability to properly perform the Services. Consultant shall use
Consultant's best efforts to perform the Services such that the results are satisfactory to the Company. Consultant shall devote at least 20% of Consultant's
time to performance of the Services. 

        2.    Fees.    As consideration for the Services to be provided by Consultant and other
obligations, the Company shall pay to Consultant the amounts specified in Exhibit B attached to this Agreement at the times specified therein. 

        3.    Expenses.    Consultant shall not be authorized to incur on behalf of the Company any
expenses, except as expressly specified in Exhibit B, without the prior consent of the Company's Chief Executive Officer, which consent shall be
evidenced in writing for any expenses in excess of $1,000.00. As a condition to receipt of reimbursement, Consultant shall be required to submit to the Company reasonable evidence that the amount
involved was expended and related to Services provided under this Agreement. 

        4.    Term and Termination.    Consultant shall serve as a consultant to the Company for a
period commencing on April 1, 2007 and terminating on March 31, 2008; provided, however,
that the Consulting Relationship shall terminate prior to such date if (a) Consultant completes the provision of the Services to the Company under this Agreement, or (b) Consultant shall
have been paid the maximum amount of consulting fees as provided in Exhibit B. Notwithstanding the foregoing, either party may terminate this
Agreement at any time upon ten (10) days' written notice. In the event of such early termination, Consultant shall be paid for any portion of the Services that have been performed prior to the
termination. 

        5.    Independent Contractor.    Consultant's relationship with the Company will be that of an
independent contractor and not that of an employee. 

        (a)    Method of Provision of Services.    Consultant shall be solely responsible for
determining the method, details and means of performing the Services. Consultant may, at Consultant's own expense, employ or engage the service of such employees or subcontractors as Consultant deems
necessary to perform the Services required by this Agreement (the "Assistants"). Such Assistants are not the employees of the Company and Consultant
shall be wholly responsible for the professional performance of the Services by his Assistants such that the results are satisfactory to the Company. Consultant shall expressly advise the Assistants
of the terms of this Agreement, and shall require each Assistant to execute a Confidential Information and Invention Assignment Agreement substantially in the form attached to this Agreement as  Exhibit C (the "Confidentiality Agreement"). 

        (b)    No Authority to Bind Company.    Neither Consultant, nor any partner, agent or employee
of Consultant, has authority to enter into contracts that bind the Company or create obligations on the part of the Company without the prior written authorization of the Company. 

        (c)    No Benefits.    Consultant acknowledges and agrees that Consultant (or Consultant's
employees, if Consultant is an entity) will not be eligible for any Company employee benefits and, to the extent Consultant (or Consultant's employees, if Consultant is an entity) otherwise would be
eligible for any Company employee benefits but for the express terms of this Agreement, 

 

Consultant
(on behalf of itself and its employees) hereby expressly declines to participate in such Company employee benefits. 

        (d)    Withholding; Indemnification.    Consultant shall have full responsibility for
applicable withholding taxes for all compensation paid to Consultant, its partners, agents or its employees under this Agreement, and for compliance with all applicable labor and employment
requirements with respect to Consultant's self-employment, sole proprietorship or other form of business organization, and Consultant's partners, agents and employees, including state
worker's compensation insurance coverage requirements and any US immigration visa requirements. Consultant agrees to indemnify, defend and
hold the Company harmless from any liability for, or assessment of, any claims or penalties with respect to such withholding taxes, labor or employment requirements, including any liability for, or
assessment of, withholding taxes imposed on the Company by the relevant taxing authorities with respect to any compensation paid to Consultant or Consultant's partners, agents or its employees. 

        6.    Supervision of Consultant's Services.    All of the Services to be performed by
Consultant, including but not limited to the Services, will be as agreed between Consultant and the Company's CEO. Consultant will be required to report to the CEO concerning the Services performed
under this Agreement. The nature and frequency of these reports will be left to the discretion of the CEO. 

        7.    Consulting or Other Services for Competitors.    Consultant represents and warrants that
Consultant does not presently perform or intend to perform, during the term of the Agreement, consulting or other services for, or engage in or intend to engage in an employment relationship with,
companies who businesses or proposed businesses in any way involve products or services which would be competitive with the Company's products or services, or those products or services proposed or in
development by the Company during the term of the Agreement (except for those companies, if any, listed on Exhibit D attached hereto). If,
however, Consultant decides to do so, Consultant agrees that, in advance of accepting such work, Consultant will promptly notify the Company in writing, specifying the organization with which
Consultant proposes to consult, provide services, or become employed by and to provide information sufficient to allow the Company to determine if such work would conflict with the terms of this
Agreement, including the terms of the Confidentiality Agreement, the interests of the Company or further services which the Company might request of Consultant. If the Company determines that such
work conflicts with the terms of this Agreement, the Company reserves the right to terminate this Agreement immediately. 

        8.    Confidentiality Agreement.    Consultant shall sign, or has signed, a Confidential
Information and Invention Assignment Agreement substantially in the form attached to this Agreement as Exhibit C (the
"Confidentiality Agreement"), on or before the date hereof. In the event that Consultant is an entity or otherwise will be causing individuals in its
employ or under its supervision to participate in the rendering of the Services, Consultant warrants that it shall cause each of such individuals to execute a Confidentiality Agreement in the form
attached as Exhibit C. 

        9.    Conflicts with this Agreement.    Consultant represents and warrants that neither
Consultant nor any of Consultant's partners, employees or agents is under any pre-existing obligation in conflict or in any way inconsistent with the provisions of this Agreement.
Consultant represents and warrants that Consultant's performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by Consultant
in confidence or in trust prior to commencement of this Agreement. Consultant warrants that Consultant has the right to disclose and/or or use all ideas, processes, techniques and other information,
if any, which Consultant has gained from third parties, and which Consultant discloses to the Company or uses in the course of performance of this Agreement, without liability to such third parties.
Notwithstanding the foregoing, Consultant agrees that Consultant shall not bundle with or incorporate into any deliveries provided to the Company herewith any third party products, ideas, processes,
or other techniques, without the express, written 

2

 

prior
approval of the Company. Consultant represents and warrants that Consultant has not granted and will not grant any rights or licenses to any intellectual property or technology that would
conflict with Consultant's obligations under this Agreement. Consultant will not knowingly infringe upon any copyright, patent, trade secret or other property right of any former client, employer or
third party in the performance of the Services required by this Agreement. 

        10.    Miscellaneous.    

        (a)    Amendments and Waivers.    Any term of this Agreement may be amended or waived only
with the written consent of the parties. 

        (b)    Sole Agreement.    This Agreement, including the Exhibits hereto, constitutes the sole
agreement of the parties and supersedes all oral negotiations and prior writings with respect to the subject matter hereof. 

        (c)    Notices.    Any notice required or permitted by this Agreement shall be in writing and
shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, 48 hours after being deposited in the regular mail as
certified or registered mail (airmail if sent internationally) with postage prepaid, if such notice is addressed to the party to be notified at such party's address or facsimile number as set forth
below, or as subsequently modified by written notice. 

        (d)    Choice of Law.    The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California, without giving effect to the principles of conflict of laws. 

        (e)    Severability.    If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such
provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and
(iii) the balance of the Agreement shall be enforceable in accordance with its terms. 

        (f)    Counterparts.    This Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which together will constitute one and the same instrument. 

        (g)    Arbitration.    Any dispute or claim arising out of or in connection with any provision
of this Agreement will be finally settled by binding arbitration in California, in accordance with the rules of the American Arbitration Association by one arbitrator appointed in accordance with said
rules. The arbitrator shall apply California law, without reference to rules of conflicts of law or rules of statutory arbitration, to the resolution of any dispute. Judgment on the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable
relief, or to compel arbitration in accordance with this paragraph, without breach of this arbitration provision. This Section 10(g) shall not apply to the Confidentiality Agreement. 

        (h)    Advice of Counsel.    EACH PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS AGREEMENT, SUCH
PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND HAS READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED
AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF. 

[Signature
Page Follows] 

3

        The parties have executed this Consulting Agreement on the respective dates set forth below. 

	

 	
 	
ANACOR PHARMACEUTICALS, INC.
	

 	
 	

By:	
 	

/s/  DAVID PERRY      

	 	 	Title:	 	Chief Executive Officer

	 	 	Address:	 	1060 E. Meadow Circle
	 	 	 	 	Palo Alto, CA 94303
	 	 	Date:	 	5/24/07

	

 	
 	
STEPHEN J. BENKOVIC, PH.D.
	

 	
 	

 	
 	

/s/  STEPHEN J. BENKOVIC      
 Signature
	 	 	Address:	 	 

	 	 	Date:	 	May 17th '07

 
 

EXHIBIT A    
    

 
  DESCRIPTION OF CONSULTING SERVICES    
    

        Dr. Benkovic will work closely with the Anacor research staff to strategize in the areas of medicinal chemistry and biochemistry/enzymology. For chemistry
he will participate in weekly chemistry planning meetings, either in person or via conference calls. He will contribute input on scaffold design, plans for diseases and targets for screening of Anacor
compounds and analysis of assay results. He will also contribute to the design of new boron-containing compounds that have the potential to inhibit therapeutically important proteins. In the area of
biochemistry, he will advise/contribute ideas on mechanism of action studies and enzymology experiments for Anacor inhibitors. The areas of interest in enzymology include studying competitiveness,
off-rates, inhibition constants and additional characterization of novel Anacor boron-containing compounds. In addition, Dr. Benkovic will participate in the supervision of a
biochemistry post-doc who is located at the Anacor facility, but who will periodically use specialized equipment at Penn State. 

 
 

EXHIBIT B    
    

 
  COMPENSATION    
    

        For Services rendered by Consultant under this Agreement, the Company shall pay Consultant at the rate of $100,000 for the term of the agreement, April 1,
2007 to March 31, 2008, payable in the amount of $25,000 per quarter, with the first payment due upon execution of the Agreement. Unless otherwise agreed upon in writing by Company, Company's
maximum liability for all Services performed during the term of this Agreement shall not exceed $100,000.00. 

        The
Company will recommend that the Board grant a non-qualified option to purchase 60,000 shares of the Company's Common Stock, at an exercise price equal to the fair market
value (as determined by the Company's Board of Directors) on the date of grant, and which will vest over a 12 month period beginning April 1, 2007. 

 
 

EXHIBIT C    
    

 
  ANACOR PHARMACEUTICALS, INC.    
    
    CONFIDENTIAL INFORMATION AND
  INVENTION ASSIGNMENT AGREEMENT    
    
    (for Employees and Consultants)    
    

        As a condition of my becoming employed (or my employment being continued) by or retained as a consultant (or my consulting relationship being continued) by Anacor
Pharmaceuticals, Inc., a Delaware corporation ("Anacor"), or any of its current or future subsidiaries, affiliates, successors or assigns
(collectively, the "Company"), and in consideration of my employment or consulting relationship with the Company and my receipt of the compensation now
and hereafter paid to me by the Company, I agree to the following: 

        1.    Employment or Consulting Relationship.    I understand and
acknowledge that this Agreement does not alter, amend or expand upon any rights I may have to continue in the employ of, or in a consulting relationship with, or the duration of my employment or
consulting relationship with, the Company under any existing agreements between the Company and me or under applicable law. Any employment or consulting relationship between the Company and me,
whether commenced prior to or upon the date of this Agreement, shall be referred to herein as the "Relationship." 

        2.    Duties.    I will perform for the Company such duties as may be designated by the
Company from time to time. During the Relationship, I will devote my best efforts to the interests of the Company and will not engage in other employment or in any activities detrimental to the best
interests of the Company without the prior written consent of the Company. 

        3.    At-Will Relationship.    I understand and
acknowledge that my Relationship with the Company is and shall continue to be at-will, as defined under applicable law, meaning that either I or the Company may terminate the Relationship
at any time for any reason or no reason, without further obligation or liability. 

        4.    Confidential Information.    

        (a)    Company Information.    I agree at all times during the term of
my Relationship with the Company and thereafter, to hold in strictest confidence, and not to use, except for the benefit of the Company to the extent necessary to perform my obligations to the Company
under the Relationship, or to disclose to any person, firm, corporation or other entity without written authorization of the Board of Directors of the Company, any Confidential Information of the
Company which I obtain or create. I further agree not to make copies of such Confidential Information except as authorized by the Company. I understand that "Confidential
Information" means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products,
services, suppliers, customer lists and customers (including, but not limited to, customers of the Company on whom I called or with whom I became acquainted during the Relationship), prices and costs,
markets, software, developments, inventions, laboratory notebooks, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, licenses, finances,
budgets or other business information disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or observation of parts or equipment or created by me during the
period of the Relationship, whether or not during working hours. I understand that Confidential Information includes, but is not limited to, information pertaining to any aspect of the Company's
business which is either information not known by actual or potential competitors of the Company or other third parties not under confidentiality obligations to the Company, or is otherwise
proprietary information of the Company or its customers or suppliers, whether of a technical nature or otherwise. I further understand that Confidential Information does not include any of the
foregoing items which has become publicly and widely known and made generally available 

 

through
no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved. 

        (b)    Prior Obligations.    I represent that my performance of all
terms of this Agreement as an employee or consultant of the Company has not breached and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me
prior or subsequent to the commencement of my Relationship with the Company, and I will not disclose to the Company or use any inventions, confidential or non-public proprietary
information or material belonging to any previous client, employer or any other party. I will not induce the Company to use any inventions, confidential or non-public proprietary
information, or material belonging to any previous client, employer or any other party. 

        (c)    Third Party Information.    I recognize that the Company has
received and in the future will receive confidential or proprietary information from third parties subject to a duty on the Company's part to maintain the confidentiality of such information and to
use it only for certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to
use it except as necessary in carrying out my work for the Company consistent with the Company's agreement with such third party. 

        5.    Inventions.    

        (a)    Inventions Retained and Licensed.    I have attached hereto, as  Exhibit A, a list
describing with particularity all inventions, original works of authorship, developments, improvements, and trade secrets which
were made by me prior to the commencement of the Relationship (collectively referred to as "Prior Inventions"), which belong solely to me or belong to
me jointly with another, which relate in any way to any of the Company's proposed businesses, products or research and development, and which are not assigned to the Company hereunder; or, if no such
list is attached, I represent that there are no such Prior Inventions. If, in the course of my Relationship with the Company, I incorporate into a Company product, process or machine a Prior Invention
owned by me or in which I have an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the
right to sublicense) to make, have made, copy, modify, make derivative works of, use, sell and otherwise distribute such Prior Invention as part of or in connection with such product, process or
machine. 

        (b)    Assignment of Inventions.    I agree that I will promptly make
full written disclosure to Anacor, will hold in trust for the sole right and benefit of Anacor, and hereby assign to Anacor, or its designee, all my right, title and interest throughout the world in
and to any and all inventions, original works of authorship, developments, concepts, know-how, improvements or trade secrets, whether or not patentable or registrable under copyright or
similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of my Relationship with the
Company (collectively referred to as "Inventions"), except as provided in Section 5(e) below. I further acknowledge that all Inventions which are
made by me (solely or jointly with others) within the scope of and during the period of my Relationship with the Company are "works made for hire" (to
the greatest extent permitted by applicable law) and are compensated by my salary (if I am an employee) or by such amounts paid to me under any applicable consulting agreement or consulting
arrangements (if I am a consultant), unless regulated otherwise by the mandatory law of the state of California. 

        (c)    Maintenance of Records.    I agree to keep and maintain
adequate and current written records of all Inventions made by me (solely or jointly with others) during the term of my Relationship with the Company. The records may be in the form of notes,
sketches, drawings, flow charts, electronic data or recordings, laboratory notebooks, and any other format. The records will be available to and remain the sole property of the Company at all times. I
agree not to remove 

2

 

such
records from the Company's place of business except as expressly permitted by Company policy which may, from time to time, be revised at the sole election of the Company for the purpose of
furthering the Company's business. I agree to return all such records (including any copies thereof) to Anacor at the time of termination of my Relationship with the Company as provided for in
Section 6. 

        (d)    Patent and Copyright Rights.    I agree to assist Anacor, or
its designee, at its expense, in every proper way to secure Anacor's, or its designee's, rights in the Inventions and any copyrights, patents, trademarks, mask work rights, moral rights, or other
intellectual property rights relating thereto in any and all countries, including the disclosure to Anacor or its designee of all pertinent information and data with respect thereto, the execution of
all applications, specifications, oaths, assignments, recordations, and all other instruments which Anacor or its designee shall deem necessary in order to apply for, obtain, maintain and transfer
such rights, or if not transferable, waive such rights, and in order to assign and convey to Anacor or its designee, and any successors, assigns and nominees the sole and exclusive rights, title and
interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be
executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement until the expiration of the last such intellectual property right to
expire in any country of the world. If Anacor or its designee is unable because of my mental or physical incapacity or unavailability or for any other reason to secure my signature to apply for or to
pursue any application for any United States or foreign patents, copyright, mask works or other registrations covering Inventions or original works of authorship assigned to Anacor or its designee as
above, then I hereby irrevocably designate and appoint Anacor 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 applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters patent, copyright or other registrations
thereon with the same legal force and effect as if originally executed by me. I hereby waive and irrevocably quitclaim to Anacor or its designee any and all claims, of any nature whatsoever, which I
now or hereafter have for infringement of any and all proprietary rights assigned to Anacor or such designee. 

        (e)    Exception to Assignments.    I understand that the provisions
of this Agreement requiring assignment of Inventions to Anacor do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870 (attached hereto as  Exhibit B). I will advise the Company promptly in writing of any inventions that I believe meet such provisions and are not otherwise disclosed
on Exhibit A. 

        6.    Company Property; Returning Company Documents.    I acknowledge
and agree that I have no expectation of privacy with respect to the Company's telecommunications, networking or information processing systems (including, without limitation, stored company files,
e-mail messages and voice messages) and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice. I further agree that any
property situated on the Company's premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any
time with or without notice. I agree that, at the time of termination of my Relationship with the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to
anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts,
equipment, other documents or property, or reproductions of any of the aforementioned items developed by me pursuant to the Relationship or otherwise belonging to the Company, its successors or
assigns. In the event of the termination of the Relationship, I agree to sign and deliver the "Termination Certification" attached hereto as  Exhibit C; 

3

 

however,
my failure to sign and deliver the Termination Certificate shall in no way diminish my continuing obligations under this Agreement. 

        7.    Notification to Other Parties.    

        (a)    Employees.    In the event that I leave the employ of the
Company, I hereby consent to notification by the Company to my new employer about my rights and obligations under this Agreement. 

        (b)    Consultants.    I hereby grant consent to notification by the
Company to any other parties besides the Company with whom I maintain a consulting relationship, including parties with whom such relationship commences after the effective date of this Agreement,
about my rights and obligations under this Agreement. 

        8.    Solicitation of Employees, Consultants and Other Parties.    I
agree that during the term of my Relationship with the Company, and for a period of twelve (12) months immediately following the termination of my Relationship with the Company for any reason,
whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company's employees or consultants to terminate their relationship with the
Company, or attempt to solicit, induce, recruit, encourage or take away employees or consultants of the Company, either for myself or for any other person or entity. Further, during my Relationship
with the Company and at any time following termination of my Relationship with the Company for any reason, with or without cause, I shall not use any Confidential Information of the Company to attempt
to negatively influence any of the Company's clients or customers from purchasing Company products or services or to solicit or influence or attempt to influence any client, customer or other person
either directly or indirectly, to direct his or its purchase of products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company. 

        9.    Representations and Covenants.    

        (a)    Facilitation of Agreement.    I agree to execute promptly any
proper oath or verify any proper document required to carry out the terms of this Agreement upon the Company's written request to do so. 

        (b)    Conflicts.    I represent that my performance of all the terms
of this Agreement does not and will not breach any agreement I have entered into, or will enter into with any third party, including without limitation any agreement to keep in confidence proprietary
information acquired by me in confidence or in trust prior to commencement of my Relationship with the Company. I agree not to enter into any written or oral agreement that conflicts with the
provisions of this Agreement. 

        (c)    Voluntary Execution.    I certify and acknowledge that I have
carefully read all of the provisions of this Agreement and that I understand and will fully and faithfully comply with such provisions. 

        10.    General Provisions.    

        (a)    Governing Law.    The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of the State of California, without giving effect to the principles of conflict of laws. 

        (b)    Entire Agreement.    This Agreement sets forth the entire
agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us. No modification or amendment to this Agreement, nor any waiver
of any rights under this Agreement, will be effective unless in writing signed by both parties. Any 

4

 

subsequent
change or changes in my duties, obligations, rights or compensation will not affect the validity or scope of this Agreement. 

        (c)    Severability.    If one or more of the provisions in this
Agreement are deemed void by law, then the remaining provisions will continue in full force and effect. 

        (d)    Successors and Assigns.    This Agreement will be binding upon
my heirs, executors, administrators and other legal representatives, and my successors and assigns, and will be for the benefit of the Company, its successors, and its assigns. 

        (e)    Survival.    The provisions of this Agreement shall survive the
termination of the Relationship and the assignment of this Agreement by the Company to any successor in interest or other assignee. 

        (f)    Remedies.    I acknowledge and agree that violation of this Agreement by me may cause
the Company irreparable harm, and therefore agree that the Company will be entitled to seek extraordinary relief in court, including but not limited to temporary restraining orders, preliminary
injunctions and permanent injunctions without the necessity of posting a bond or other security and in addition to and without prejudice to any other rights or remedies that the Company may have for a
breach of this Agreement. 

        (g)    ADVICE OF COUNSEL.    I ACKNOWLEDGE THAT, IN EXECUTING THIS
AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE
CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF. 

[Signature
Page Follows] 

5

 

        The
parties have executed this Agreement on the respective dates set forth below: 

	COMPANY:	 	EMPLOYEE/CONSULTANT:
	
ANACOR, PHARMACEUTICALS, INC.	
 	
STEPHEN J. BENKOVIC, PH.D., an Individual:
	

By:	
 	

    
	
 	

 	
 	

 
	

Name:	
 	

Lucy O. Day	
 	

    
 Signature
	Title:	 	CFO	 	 	 	 
	

Date:	
 	

    
	
 	

Date:	
 	

    

	

Address:	
 	

1060 E. Meadow Circle

Palo Alto, CA 94303	
 	

Address:	
 	

 

6

QuickLinks

ANACOR PHARMACEUTICALS, INC. CONSULTING AGREEMENT

EXHIBIT A

DESCRIPTION OF CONSULTING SERVICES

EXHIBIT B

COMPENSATION

EXHIBIT C

ANACOR PHARMACEUTICALS, INC. CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT (for Employees and Consultants)

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