Document:

Exhibit 10.7  

March 10,
2005 

Karl
Reinhard Beutner, MD, PhD 

Re:    Offer of Employment by Anacor Pharmaceuticals, Inc.

Dear
Karl: 

        I
am very pleased to confirm to you our offer of employment with Anacor Pharmaceuticals, Inc. (the "Company" or "Anacor") as our Chief Medical Officer, 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, we would like your start date to be
April 11, 2005, 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 planning, organizing, and managing the Company's drug development and regulatory programs. Specific responsibilities include but are not limited to providing the leadership and
ongoing clinical and regulatory perspective to the research and development strategy as well as pre-clinical, operating, manufacturing and business decisions for the Company, overseeing
and executing the clinical strategy design for Anacor's lead drug candidates, design and execute the Anacor's worldwide regulatory strategy, represent the Company externally and with strategic
partners and work with business development to identify and evaluate appropriate product candidates. 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 as a full-time employee will be $11,250 per semi-monthly pay period, which is equivalent to $270,000 annually, and will
be paid per the Company's standard payroll process and less all applicable taxes and withholdings. In addition, the Company will provide you with a one-time sing-on bonus in
the amount of $10,000 ("Sign-on Bonus"). The Sign-on Bonus will be paid to you in your first regular paycheck following your effective date of hire and will be subject to all
applicable payroll 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 prorated portion of the total Sign-on 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 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. 

        2.     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. 

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        3.     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. 

        4.     The
Company recognizes that you have established a successful, independent dermatology practice and agrees that you may continue such practice provided you
(1) limit your time spent on your practice to 10% and devote the remaining 90% of your time to the business of the Company, and (2) that this and any other outside activities do not
breach your obligations as set forth in the Company's Confidential Information and Invention Assignment Agreement. In order to accommodate continuation of your dermatology practice, the Company will
allow you to work from home 1 day per week. 

        5.     In
order to assure a smooth transition from your current employer, Dow Pharmaceutical Sciences ("Dow"), we would like to set forth the following transition schedule
(Transition Period): for the first 4 weeks from your date of hire, you agree to spend 60% of time (3 days per week), working for Anacor; and for the following 4 weeks you agree to spend 80% of
time (4 days per week), working for Anacor until you reach 90% time (4.5 days per week) working solely for Anacor on June 6, 2005. During the Transition Period, you will receive a
prorated portion of your salary commensurate with the amount of time you spend working for Anacor. For salary and benefits purposes, working 90% time for Anacor will be considered
full-time. 

        6.     In
an effort to facilitate you working on-site at Company headquarters for at least 4 days per week, upon commencing employment with the Company, the
Company will assist you in securing temporary housing arrangements. The specifics of these arrangements will be determined by the Company once the employment offer has been accepted. 

        7.     Notwithstanding
the transition schedule outlined in Paragraph 5 above, as a full-time employee of the Company, you agree that you will devote at least
90% 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, other than
those explicitly set forth in this offer of employment, 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. 

        8.     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. 

        9.     We
will recommend to the Board of Directors of the Company (the "Board") that you be granted the opportunity to purchase 225,000 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. 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 

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such
grant by the Company's Board. At the completion of Anacor's ongoing Series C financing, it is expected that all employees will receive additional stock option grants that will adjust their
holdings for the dilution that was created by the financing. You will be eligible for such an increase and will be treated in a manner similar to other employees. 

        10.   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. 

        11.   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 at any time, with or without cause of advance 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, and work
assignments from time to time as it deems necessary in its sole discretion. 

        12.   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. 

        13.   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 March 11, 2005. 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 

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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/  KARL R. BEUTNER      
 Karl Reinhard Beutner, MD, PhD	 	Date Signed:	3/11/05

	

 	
 	

Effective Start Date:	

4/11/05

4Exhibit 10.8  

August 1,
2002 

Mr. Kirk
Maples 

Dear
Kirk: 

        As
we discussed, I am delighted to make you an offer to join AnaMax, Inc., as Vice President of Pre-Clinical Development, reporting to the Chief Executive Officer. The
terms and conditions of our offer are as follows: 

        Your
monthly base salary will be $14,167, less applicable withholding. This salary will be paid in accordance with our normal payroll procedures. 

	•
	Your
employment will commence on August 16, 2002.

	•
	You
agree to dedicate 100% of your working time to AnaMax and, with the exception of services you are performing for other entities as of the date of this letter, (and which
you have disclosed in writing to AnaMax) and the work that you may be asked to do for DARPA, as defined below. You will not engage in any other work without notifying the Chief Executive Officer. You
agree that you are not a party to any contract or agreement that would preclude you from accepting this offer or performing services as an employee for AnaMax. With regard to DARPA, it is understood
that they may continue to require you services on a limited basis for some period of time after this agreement becomes effective. Due to mutual business interest, Anamax will allow you to continue to
perform contract work for DARPA up to three days per month.

	•
	You
will be entitled to participate in Anamax's benefit plans in accordance with their terms.

	•
	In
addition to your salary, you will be eligible to earn an additional 20% bonus paid quarterly upon the achievement of quarterly goals that will be agreed to at the
beginning of each quarter.

	•
	Subject
to approval of the AnaMax Board of Directors, you will be eligible to receive a stock option grant in the amount of one percent (1%) of the total outstanding shares
of the company, or approximately 125,100 shares. The terms and conditions of any stock option grant, including the exercise price will likewise be subject to the Board's approval. These shares will be
subject to four-year vesting with a one-year cliff.

	•
	If
you accept this offer, your employment with AnaMax will be at will.

	•
	As
an employee of AnaMax, you will be expected to abide by company rules and regulations. As a condition of employment, you will be required to sign and comply with a
Confidential Information and Invention Assignment Agreement which, among other things, prohibits unauthorized use or disclosure of AnaMax's proprietary information.

	•
	The
employment terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written, and comprise the final, complete and exclusive
agreement between you and AnaMax. As required by law, this offer is subject to satisfactory proof of your right to work in the United States. 

        We
are very enthusiastic that you have agreed to join the AnaMax team and we look forward to working with you. 

	Sincerely,	 	 	 	 
	

AnaMax, Inc.	
 	

 	
 	

 
	

/s/  DAVID PERRY      
 David Perry	
 	

 	
 	

 
	

Agreed and accepted:	
 	

 	
 	

 
	

/s/  KIRK R. MAPLES      
	
 	

8/13/02
	
 	

 
	Kirk R. Maples	 	Date

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