Document:

Exhibit 10.4.2

 

NON-COMPETITION AND NON-SOLICITATION
AGREEMENT

 

This Agreement is made between INTERCEPT
PHARMACEUTICALS, INC., a Delaware corporation (hereinafter referred to collectively with its subsidiaries as the “Company”),
and Mark E. Pruzanski (the “Employee”).

 

For good consideration and in consideration
of the employment or continued employment of the Employee by the Company, the Employee and the Company agree as follows:

 

1.           Non-Competition
and Non-Solicitation. While the Employee is employed by the Company and for a period of one year after the termination or cessation
of such employment for any reason, the Employee will not directly or indirectly:

 

(a)          Engage
or assist others in engaging in any business or enterprise (whether as owner, partner, officer, director, employee, consultant,
investor, lender or otherwise, except as the holder of not more than 1% of the outstanding stock of a publicly-held company) that
is competitive with the Company’s business, including but not limited to any business or enterprise that develops, manufactures,
markets, licenses, sells or provides any product or service that competes with any product or service developed, manufactured,
marketed, licensed, sold or provided, or planned to be developed, manufactured, marketed, licensed, sold or provided, by the Company
while the Employee was employed by the Company; or

 

(b)          Either
alone or in association with others, solicit, divert or take away, or attempt to divert or take away, the business or patronage
of any of the clients, customers, or business partners of the Company which were contacted, solicited, or served by the Company
during the 12-month period prior to the termination or cessation of the Employee’s employment with the Company; or

 

(c)          Either
alone or in association with others (i) solicit, induce or attempt to induce, any employee or independent contractor of the Company
to terminate his or her employment or other engagement with the Company, or (ii) hire, or recruit or attempt to hire, or engage
or attempt to engage as an independent contractor, any person who was employed or otherwise engaged by the Company at any time
during the term of the Employee’s employment with the Company; provided, that this clause (ii) shall not apply to
the recruitment or hiring or other engagement of any individual whose employment or other engagement with the Company has been
terminated for a period of six months or longer.

 

(d)          Extension.
If the Employee violates the provisions of any of the preceding paragraphs of this Section 1, the Employee shall continue to be
bound by the restrictions set forth in such paragraph until a period of one year has expired without any violation of such provisions.

 

2.           Miscellaneous.

 

(a)          Equitable
Remedies. The restrictions contained in this Agreement are necessary for the protection of the business and goodwill of the
Company and are considered by the Employee to be reasonable for such purpose. The Employee agrees that any breach of this Agreement
is likely to cause the Company substantial and irrevocable damage which is difficult to measure. Therefore, in the event of any
such breach or threatened breach, the Employee agrees that the Company, in addition to such other remedies which may be available,
shall have the right to obtain an injunction from a court restraining such a breach or threatened breach and the right to specific
performance of the provisions of this Agreement and the Employee hereby waives the adequacy of a remedy at law as a defense to
such relief.

 

    	 

    	 

    

 

(b)          Obligations
to Third Parties. The Employee acknowledges and represents that this agreement and the Employee’s employment with the
Company will not violate any continuing obligation the Employee has to any former employer or other third party.

 

(c)          Disclosure
of this Agreement. The Employee hereby authorizes the Company to notify others, including but not limited to customers of the
Company and any of the Employee’s future employers or prospective business associates, of the terms and existence of this
Agreement and the Employee’s continuing obligations to the Company hereunder.

 

(d)          Not
Employment Contract. The Employee acknowledges that this Agreement does not constitute a contract of employment, does not imply
that the Company will continue his/her employment for any period of time and does not change the at-will nature of his/her employment.

 

(e)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors
and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s
assets or business, provided, however, that the obligations of the Employee are personal and shall not be assigned by him or her.
The Employee expressly consents to be bound by the provisions of this Agreement for the benefit of the Company or any subsidiary
or affiliate thereof to whose employ the Employee may be transferred without the necessity that this Agreement be re-signed at
the time of such transfer. Notwithstanding the foregoing, if the Company is merged with or into a third party which is engaged
in multiple lines of business, or if a third party engaged in multiple lines of business succeeds to the Company’s assets
or business, then for purposes of Section 1(a), the term “Company” shall mean and refer to the business of the Company
as it existed immediately prior to such event and as it subsequently develops and not to the third party’s other businesses.

 

(f)          Interpretation.
If any restriction set forth in Section 1 is found by any court of competent jurisdiction to be unenforceable because it extends
for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted
to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

 

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

 

(h)          Waivers.
No delay or omission by the Company in exercising any right under this Agreement will operate as a waiver of that or any other
right. A waiver or consent given by the Company on any one occasion is effective only in that instance and will not be construed
as a bar to or waiver of any right on any other occasion.

 

    	- 2 -

    	 

    

 

(i)          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York (without reference
to the conflicts of laws provisions thereof). Any action, suit, or other legal proceeding which is commenced to resolve any matter
arising under or relating to any provision of this Agreement shall be commenced only in a court of the State of New York (or, if
appropriate, a federal court located within New York), and the Company and the Employee each consents to the jurisdiction of such
a court. The Company and the Employee each hereby irrevocably waive any right to a trial by jury in any action, suit or other legal
proceeding arising under or relating to any provision of this Agreement.

 

(j)          Entire
Agreement; Amendment. This Agreement supersedes all prior agreements, written or oral, between the Employee and the Company
relating to the subject matter of this Agreement. This Agreement may not be modified, changed or discharged in whole or in part,
except by an agreement in writing signed by the Employee and the Company. The Employee agrees that any change or changes in his/her
duties, salary or compensation after the signing of this Agreement shall not affect the validity or scope of this Agreement.

 

(k)          Captions.
The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the
scope or substance of any section of this Agreement.

 

THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS
CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

 

	 	 	INTERCEPT PHARMACEUTICALS, INC.
	 	 	 
	Date:	20 June 2006	 	By:	/s/  Jim Mervis, Chairman of the Board
	 	 	 
	Date:	20 June 2006	 	/s/ Mark Pruzanski, President and CEO 
	 	 	(Signature)

 

    	- 3 -INVENTION, NON-DISCLOSURE, AND NON-SOLICITATION
AGREEMENT

 

This Invention, Non-Disclosure, and Non-Solicitation Agreement
is made by and between Intercept Pharmaceuticals, Inc. (the "Company") and Mark Pruzanski (the "Employee").
The agreement is retro-active with the effective date being the employee's date of hire, September 4, 2002.

 

IN CONSIDERATION of the Employee's employment by the Company,
and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Employee agrees as follows:

 

1. Condition of Employment.

 

The Employee acknowledges that her employment with the Company
is contingent upon her agreement to sign and adhere to the provisions of this Invention, Non-Disclosure, and Non-Solicitation Agreement
(the "Agreement").

 

2. Proprietary and Confidential Information.

 

(a) The Employee agrees that all information, whether or
not in writing, of a private, secret or confidential nature concerning the Company's business, business relationships or financial
affairs (collectively, "Proprietary Information") is and shall be the exclusive property of the Company. By way of illustration,
but not limitation, Proprietary Information may include inventions, products, processes, methods, techniques, formulas, compositions,
compounds, projects, developments, plans (including business and marketing plans), research data, clinical data, financial data
(including sales costs, profits, pricing methods), personnel data, computer programs (including software used pursuant to a license
agreement), customer and supplier lists, and contacts at or knowledge of customers or prospective customers of the Company. The
Employee will not disclose any Proprietary Information to any person or entity other than employees of the Company or use the same
for any purposes (other than in the performance of his/her duties as an employee of the Company) without written approval by an
officer of the Company, either during or after her employment with the Company, unless and until such Proprietary Information has
become public knowledge without fault by the Employee.

 

(b) The Employee agrees that all files, documents, letters,
memoranda, reports, records, data, sketches, drawings, models, laboratory notebooks, program listings, computer equipment or devices,
computer programs or other written, photographic, or other tangible material containing Proprietary Information, whether created
by the Employee or others, which shall come into his/her custody or possession, shall be and are the exclusive property of the
Company to be used by the Employee only in the performance of his/her duties for the Company and shall not be copied or removed
from the Company premises except in the pursuit of the business of the Company. All such materials or copies thereof and all tangible
property of the Company in the custody or possession of the Employee shall be delivered to the Company, upon the earlier of (i)
a request by the Company or (ii) termination of his/her employment. After such delivery, the Employee shall not retain any such
materials or copies thereof or any such tangible property.

 

    	 

    	 

    
 

(c) The Employee agrees that her obligation not to disclose
or to use information and materials of the types set forth in paragraphs (a) and (b) above, and her obligation to return materials
and tangible property set forth in paragraph (b) above also extends to such types of information, materials and tangible property
of customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to
the Company or to the Employee.

 

3. Inventions.

 

(a) The Employee will make full and prompt disclosure to
the Company of all inventions, creations, improvements, discoveries, trade secrets, secret processes, technology, know-how, methods,
developments, software, and works of authorship or other creative works, whether patentable or not, which are created, made, conceived
or reduced to practice by the Employee or under the Employee's direction or jointly with others during her employment by the Company,
whether or not during normal working hours or on the premises of the Company (all of which are collectively referred to in this
Agreement as "Inventions").

 

(b) The Employee agrees to assign and does hereby assign
to the Company (or any person or entity designated by the Company) all her right, title and interest in and to all Inventions and
all related patents, patent applications, copyrights and copyright applications to the maximum extent permitted by the laws of
the State of New York or any like statute of any other state. The Employee hereby also waives all claims to moral rights in any
Inventions. The Employee understands that the provisions of this Agreement requiring assignment of Inventions to the Company do
not apply to any invention which qualifies fully under the provisions of the laws of the State of New York. The Employee agrees
to advise the Company promptly in writing of any inventions that she believes meets the criteria in the laws of the State of New
York.

 

(c) The Employee agrees to cooperate fully with the Company
and to take such further actions as may be necessary or desirable, both during and after her employment with the Company, with
respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in
the United States and foreign countries) relating to Inventions. The Employee shall sign all papers, including, without limitation,
copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers
of attorney, which the Company may deem necessary or desirable in order to protect its rights and interests in any Invention. The
Employee further agrees that if the Company is unable, after reasonable effort, to secure the signature of the Employee on any
such papers, any executive officer of the Company shall be entitled to execute any such papers as the agent and the attorney-in-fact
of the Employee, and the Employee hereby irrevocably designates and appoints each executive officer of the Company as her agent
and attorney-infact to execute any such papers on her behalf, and to take any and all actions as the Company may deem necessary
or desirable in order to protect its rights and interests in any Invention, under the conditions described in this sentence.

 

    	 

    	 

    
 

4. Non-Solicitation.

 

(a) While employed by the Company and for a period of one (1) year after the termination or cessation
of Employee’s employment for any reason, the Employee will not, directly or indirectly, either alone or in association with
others, recruit or solicit any person who was employed by the Company or engaged as an independent contractor at any time during
the period of the Employee's employment with the Company, except for an individual whose employment with or service for the Company
has been terminated for a period of six months or longer.

 

(b) If any restriction set forth in this Section 4 is found by any court of competent jurisdiction to
be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic
area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which
it may be enforceable.

 

(c) The geographic scope of this Section shall extend to anywhere the Company or any of its subsidiaries
is doing business, has done business or has plans to do business.

 

(d) If the Employee violates the provisions of this Section, the Employee shall continue to be held by
the restrictions set forth in this Section, until a period equal to the period of restriction has expired without any violation.

 

5. Other Agreements.

 

The Employee hereby represents that, except as the Employee has disclosed in writing to the Company, the
Employee is not bound by the terms of any agreement with any previous employer or other party to refrain from using or disclosing
any trade secret or confidential or proprietary information in the course of his/her employment with the Company, to refrain from
competing, directly or indirectly, with the business of such previous employer or any other party, or to refrain from soliciting
employees, customers or suppliers of such previous employer or other party. The Employee further represents that his/her performance
of all the terms of this Agreement and the performance of her duties as an employee of the Company do not and will not breach any
agreement with any prior employer or other party to which the Employee is a party (including without limitation any non-disclosure
or non-competition agreement), and that the Employee 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.

 

6. United States Government Obligations.

 

The Employee acknowledges that the Company from time to time may have agreements with other persons or
with the United States Government, or agencies thereof, which impose obligations or restrictions on the Company regarding inventions
made during the course of work under such agreements or regarding the confidential nature of such work. The Employee agrees to
be bound by all such obligations and restrictions that are made known to the Employee and to take all action necessary to discharge
the obligations of the Company under such agreements.

 

    	 

    	 	

    
 

7. Not An Employment Contract.

 

The Employee acknowledges that this Agreement does not constitute a contract of employment, either express
or implied, and does not imply that the Company will continue the Employee’s employment for any period of time.

 

8. General Provisions.

 

(a) No Conflict. The Employee represents that the execution and performance by him/her of this
Agreement does not and will not conflict with or breach the terms of any other agreement by which the Employee is bound.

 

(b) Entire Agreement. This Agreement supersedes all prior agreements, written or oral, between
the Employee and the Company relating to the subject matter of this Agreement. This Agreement may not be modified, changed or discharged
in whole or in part, except by an agreement in writing signed by the Employee and the Company. The Employee agrees that any change
or changes in his/her duties, salary or compensation after the signing of this Agreement shall not affect the validity or scope
of this Agreement.

 

(c) Severability. The invalidity or unenforceability of any provision of this Agreement shall not
affect or impair the validity or enforceability of any other provision of this Agreement.

 

(d) Waiver. No delay or omission by the Company in exercising any right under this Agreement will
operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion is effective only
in that instance and will not be construed as a bar to or waiver of any right on any other occasion.

 

(e) Employee Acknowledgment and Equitable Remedies. The Employee acknowledges that the restrictions
contained in this Agreement are necessary for the protection of the business and goodwill of the Company and are considered by
the Employee to be reasonable for such purpose. The Employee agrees that any breach of this Agreement is likely to cause the Company
substantial and irrevocable damage and therefore, in the event of any breach or threatened breach of this Agreement, the Employee
agrees that the Company, in addition to such other remedies that may be available, shall be entitled to specific performance and
other injunctive relief without posting a bond, and the Employee hereby waives the adequacy of a remedy at law as a defense to
such relief.

 

(f) Successors and Assigns. This Agreement shall
be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any
corporation or entity with which or into which the Company may be merged or which may succeed to all or substantially all of
its assets or business, provided however that the obligations of the Employee are personal and shall not be assigned by the
Employee.

 

(g) Subsidiaries and Affiliates. The Employee expressly
consents to be bound by the provisions of this Agreement for the benefit of the Company or any subsidiary or affiliate thereof
to whose employ the Employee may be transferred without the necessity that this Agreement be re-signed at the time of such transfer.

 

(h) Governing Law, Forum and Jurisdiction. This
Agreement shall be governed by and construed as a sealed instrument under and in accordance with the laws of the State of New York
without regard to conflict of laws provisions. Any action, suit, or other legal proceeding which is commenced to resolve any matter
arising under or relating to any provision of this Agreement shall be commenced only in a court of the State of New York (or, if
appropriate, a federal court located within New York), and the Company and the Employee each consents to the jurisdiction of such
a court.

 

(i) Captions. The captions of the sections of this
Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of
this Agreement.

 

    	 

    	 

    

 

THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS
AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

 

WITNESS our hands and seals:

 

	INTERCEPT PHARMACEUTICALS, INC.	 	 	 
	 	 	 	 
	/s/ Barbara Duncan	 	 	12/31/09
	By: Barbara Duncan, CFO	 	Date	 
	 	 	 	 
	/s/ Mark Pruzanski 	 	 	Dec. 31, 2009
	By: Mark Pruzanski	 	Date

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