Document:

Exhibit 10.3

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (the “Agreement”), is entered into on October 10, 2018 (the “Effective Date“),
by and between Assembly Biosciences, Inc., a Delaware corporation with principal executive offices at 11711 N. Meridian Street,
Suite 310, Carmel, IN 46032 (the “Company”), and Uri A. Lopatin, MD (the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Company
and the Executive entered into an Employment Agreement dated July 11, 2014 (the “Prior Agreement”).

 

WHEREAS, the Company
desires to continue to employ the Executive in the role of Chief Medical Officer
as of the Effective Date, and the Executive desires to continue employment with
the Company as of the Effective Date; and

 

WHEREAS, the parties
desire to enter into this Agreement, setting forth the terms and conditions of the
Executive’s continued employment with the Company.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the parties hereto hereby agree as follows:

 

1.          Employment.

 

(a)          Services.
As of the Effective Date, the Executive will be employed by the Company initially as its Chief Medical Officer, reporting initially
to the Company’s Chief Scientific Officer – Virology Operations, and shall perform such duties as are consistent with
a position of Chief Medical Officer, and other duties assigned by the Chief Executive Officer from time to time, including overseeing
the clinical research and clinical trial programs, clinical research and development and support for the Company’s business
development and investor relations activities (the “Services”). The Executive agrees to perform such Services
faithfully, to devote substantially all of his working time, attention and energies to the business of the Company (except as
otherwise permitted herein) and use his best efforts to advance the best interests of the Company. While Executive remains employed
and subject to the terms of this Agreement, he will not engage in any other business activity that is in conflict with his duties
and obligations to the Company; provided, however, that, with the written consent of the Chief Executive Officer, which consent
shall not be unreasonably withheld, the Executive may engage in consulting and board activities (whether or not for any compensation
or other pecuniary gain or advantage) for businesses that are not competitive with the Company so long as such activities do not
prevent him from carrying out his duties and obligations to the Company and otherwise comply with the Company’s Code of
Conduct and Employee Handbook.

 

(b)          Acceptance.
Executive hereby accepts such employment and agrees to render the Services. 

 

2.           Term.
The Executive's employment under this Agreement shall commence as of the Effective Date and shall continue on an “at-will”
basis until terminated pursuant to Section 7 of this Agreement (the “Term”). 

 

     

     

    

 

3.           Best
Efforts. The Executive shall devote substantially all of his business time, attention and energies (recognizing the exception
described in 1(a) above for consulting and board work that is approved by the Chief Executive Officer) to the business and affairs
of the Company and shall use his best efforts to advance the best interests of the Company and during the Term shall
not be actively engaged in any other business activity, whether or not such business activity is pursued for gain, profit
or other pecuniary advantage, that will interfere with the performance by the Executive of his duties hereunder or the Executive’s
availability to perform such duties or that will adversely affect, or negatively reflect upon, the Company.

 

4.           Compensation.
During the Term, as full compensation for the performance by the Executive of his duties under this Agreement, the Company shall
pay the Executive as follows:

 

(a)          Base
Salary. The Company shall pay Executive an annualized base salary (the “Base Salary”) initially equal to
three hundred ninety thousand dollars ($390,000). Payment shall be made in accordance with the Company’s normal payroll
practices, as they may be changed from time to time. The Base Salary will be reviewed by the Chief Executive Officer and the Board
of Directors (the “Board”), or a committee thereof, no less frequently than annually. 

 

(b)          Annual
Performance Bonus. At the sole discretion of the Board (or a committee thereof), the Executive shall be eligible to receive
an annual performance-based bonus during the Term (the “Annual Performance Bonus”) targeted at thirty-five
percent (35%) of his then current Base Salary based on the attainment by the Company and the Executive of certain financial, clinical
development and business objectives as established annually by the Chief Executive Officer (or a committee of the Board) with
input from the Executive. The Annual Performance Bonus shall be payable as a lump-sum payment as determined by the Board (or a
committee thereof) in its sole discretion. Except as otherwise provided in this Agreement, to earn any particular Annual Performance
Bonus, the Executive must, in addition to satisfying the performance objectives, remain employed on the date the Annual Performance
Bonus is paid; provided, further, that the Annual Performance Bonus will be paid no later than two and one half (2.5) months
after the end of the calendar year to which the Annual Performance Bonus pertains.

 

(c)          Withholding.
The Company shall withhold all applicable federal, state and local taxes, social
security and such other amounts as may be required by law from all amounts payable to the Executive under this Agreement, including
Section 4 and Section 9.

 

(d)          Equity.
All equity awards the Company granted to the Executive prior to the Effective Date shall remain in full force and effect, according
to the existing terms thereof and no modification is intended by execution of this Agreement. From time to time, subject to and
upon the approval by the Board (or a committee thereof), the Company may grant to the Executive additional equity awards to purchase
or receive shares of common stock of the Company (the “Equity Awards”). The Equity Awards will contain such
terms and conditions as may be approved by the Board (or a committee thereof).

 

(e)          Expenses.
The Company shall provide the Executive with a corporate credit card for business
use, and shall reimburse the Executive for all normal, usual and necessary expenses incurred by the Executive in furtherance of
the business and affairs of the Company, including reasonable travel and entertainment, upon timely receipt by the Company of
appropriate vouchers or other proof of the Executive’s expenditures and otherwise in accordance with any travel or expense
reimbursement policy as may from time to time be adopted by the Company.

 

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(f)           Other
Benefits. The Executive shall be entitled to all rights and benefits for which he shall be eligible under any benefit or other
plans (including, without limitation, dental, medical, medical reimbursement and hospital plans, pension plans, employee stock
purchase plans, profit sharing plans, bonus plans and other so-called “Fringe
Benefits”) as the Company shall make available to its senior executives from time to time, subject to the terms of such
plans. In addition, if applicable, the Company shall reimburse the Executive for his reasonable licensing fees, continuing professional
education, and other professional dues upon timely receipt by the Company of appropriate vouchers or other proof of the Executive’s
expenditures and otherwise in accordance with any expense reimbursement policy as may from time to time be adopted by the Company.
The Company shall also name the Executive as a covered person under its Directors
 & Officers insurance policies and shall maintain, at its sole expense,
such coverage for Executive both for the period of his service as an officer and/or director of the Company or any of its affiliates
and for so long thereafter as he may reasonably be subject to any claim, covering any acts or omissions in his capacity as an
officer and/or director of the Company or any of its affiliates. 

 

(g)          Vacation.
The Executive will be entitled to paid vacation in accordance with the Company’s vacation policy, as in effect from time
to time.

 

(h)          Indemnification.
The Executive is entitled to indemnification under Article VI of the Company’s Amended and Restated Bylaws.

 

5.           Confidential
Information and Inventions.

 

(a)          The
Executive recognizes and acknowledges that in the course of his duties he is likely to receive confidential or proprietary information
owned by the Company or third parties with whom the Company has an obligation of confidentiality, relating to and used in the
Company’s business (collectively, “Confidential and Proprietary Information”). Confidential and Proprietary
Information shall include, but shall not be limited to, confidential or proprietary scientific or technical information, data,
study results, study design, formulas and related concepts, business plans (both current and under development), client lists,
promotion and marketing programs, trade secrets, or any other confidential or proprietary business information relating to development
programs, costs, revenues, marketing, investments, sales activities, promotions, credit and financial data, manufacturing processes,
financing methods, plans or the business and affairs of the Company or of any affiliate, client or service provider of the Company,
and any and all information relating to the operation of the Company’s business which the Company may from time to time
designate as confidential or proprietary or that the Executive reasonably knows
should be, or has been, treated by the Company as confidential or proprietary. The Executive expressly acknowledges that the Confidential
and Proprietary Information constitutes a protectable business interest of the Company. The Executive further agrees that if any
information that the Company deems to be a trade secret is found by a court of competent jurisdiction not to be a trade secret,
such information will, nevertheless, be considered Confidential and Proprietary Information for purposes of this Agreement. Confidential
and Proprietary Information does not include any information that: (i) at the time of disclosure is generally known to, or readily
ascertainable by, the public; (ii) becomes known to the public through no fault of the
Executive or other violation of this Agreement; (iii) is independently developed or lawfully disclosed to Executive by
a third party that is unrelated to the Company and is not bound by obligations of confidentiality to the Company with respect
thereto; or (iv) is disclosed to the Executive by a third party under no obligation
to maintain the confidentiality of the information. The Executive agrees, during and after the Term, except as reasonably necessary
for the fulfillment of his duties under this Agreement: (i) not to use any such Confidential and Proprietary Information for himself
or others; and (ii) to keep confidential and not disclose or make accessible to any other person or entity any Confidential and
Proprietary Information. The Executive agrees to return immediately all Confidential and Proprietary Information and Company material
and reproductions (including but not limited, to writings, correspondence, notes, drafts, records, invoices, technical and business
policies, computer programs or disks) thereof in his possession to the Company upon termination of employment, or at any time
upon the Company’s request.

 

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(b)          Except
with prior written authorization by the Company or as reasonably necessary for the fulfillment of his duties under this Agreement,
the Executive agrees not to disclose or publish any of the Confidential and Proprietary Information, or any confidential, scientific,
technical or business information of any other party to whom the Company owes an obligation of confidence, at any time during
or after his employment with the Company. The restrictions in this Section 5(b)
and in Section 5(a) above will not apply to any information that the
Executive is required to disclose by law, legal process or court order, provided that the
Executive (i) notifies the Company of the existence and terms of such obligation, (ii) gives the Company a reasonable opportunity
to seek a protective or similar order to prevent or limit such disclosure, and (iii) only discloses that information actually
required to be disclosed. 

 

(c)          The
Executive agrees that any and all inventions (whether or not patentable), discoveries, improvements, know-how, ideas, information
and patentable or copyrightable works (“Inventions”) initiated, conceived or made by him, either alone or in
conjunction with others, during the course of his employment by the Company or that result from work performed by the
Executive for the Company, shall be the sole property of the Company to the maximum extent permitted by applicable law
and, to the extent permitted by law, shall be “works made for hire” as that term is defined in the United States Copyright
Act (17 U.S.C.A., Section 101). The Company shall be the sole owner of all patents, copyrights, trade secret rights, and other
intellectual property or other rights in connection therewith. The Executive hereby assigns to the Company all right, title and
interest he may have or acquire in all such Inventions. The Executive further agrees to assist the Company in every proper way
(but at the Company’s expense) to obtain and from time to time enforce patents, copyrights or other rights on such Inventions
in any and all countries, and to that end the Executive will execute all documents necessary:

 

(i)          to
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

 

(ii)         to
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.

 

To
the extent this Agreement is required to be construed in accordance with the laws of any state which precludes a requirement
to assign certain classes of inventions made by an employee, this Section 5
will be interpreted not to apply to any invention which a court rules and/or the Company agrees falls within such classes. As
required pursuant to Section 2872 of the California Labor Code, the Executive acknowledges that the Company has notified the Executive
that the provisions of this Section 5 do not apply to an invention that qualified fully under the provisions of Section 2870 of
the California Labor Code (attached hereto as Exhibit A).

 

(d)          The
Executive acknowledges that, while performing the services under this Agreement the Executive may locate, identify and/or evaluate
patented or patentable inventions having commercial potential in the fields of pharmacy, pharmaceutical, biotechnology, healthcare,
technology and other fields that are related to the Company’s business (the “Third-Party
Inventions”). The Executive understands, acknowledges and agrees that all rights to, interests in or opportunities regarding,
all Third-Party Inventions identified by the Company or its affiliates or either of the foregoing Persons’
officers, directors, employees (including the Executive), agents or consultants during the Term shall be and remain the sole and
exclusive property of the Company or such affiliate and the Executive shall have no rights whatsoever to such Third-Party Inventions
and will not pursue for himself or for others any transaction relating to the Third-Party Inventions which is not on behalf of
the Company.

 

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(e)          Except
to the extent modified in any respect in this Agreement, Executive’s covenants set forth in the Section 5 are in addition
and supplement Executive’s additional covenants set forth in his Proprietary Information and Inventions Agreement dated
June 12, 2015 (the “PIIA”). Notwithstanding any other
provision herein, the PIIA or any other agreement between the parties, following termination of his employment, Executive may
retain, in hardcopy and/or electronic format, and use the Microsoft Outlook Contacts and similar contact information maintained
by him as of his last day of employment with the Company, and may also continue to maintain and use any personal or professional
profile, accounts or contacts contained on any LinkedIn, Facebook or other social media site or system existing as of Executive’s
last day of employment with the Company.

 

(f)          The
provisions of this Section 5 shall survive any termination or expiration of
this Agreement. 

 

6.          Non-Solicitation.
The Executive understands and recognizes that his services to the Company are special and unique and that in the course of performing
such services the Executive will have access to and knowledge of Confidential and Proprietary Information (as defined in Section
5) and will become knowledgeable of and familiar with the Company’s clinical
sites and service providers as well as the Company’s business. The Executive acknowledges that, due to the unique nature
of the Company’s business, the loss of any of its clinical sites, service providers or business flow or the improper use
of its Confidential and Proprietary Information could create significant instability and cause substantial damage to the Company
and therefore the Company has a strong legitimate business interest in protecting the continuity of its business interests and
the restrictions herein agreed to by the Executive narrowly and fairly serve such an important and critical business interest
of the Company. Therefore, the Executive covenants and agrees as follows:

 

(a)          Definitions.
As used in this Agreement, the following terms have the meanings given to such terms below:

 

(i)          “Company
Employee” means (A) any person who is an employee of the Company at the time of the date of the Executive’s termination
of employment, and (B) any person who was an employee of the Company at any point during the six (6) month period prior to, the
termination of the Executive’s employment.

 

(ii)         “Person”
means any person, firm, partnership, joint venture, corporation or other business entity.

 

(iii)        “Restricted
Period” means the period commencing on the date of the Executive’s
termination of employment and ending twelve (12) months thereafter; provided, however, that this period will be tolled
and will not run during any time Executive is in violation of this Section 6,
it being the intent of the parties that the Restricted Period will be extended for any period of time in which the
Executive is in violation of this Section 6.

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(b)          Non-Solicitation.
During his employment with the Company and during the Restricted Period (other than for the benefit of the Company), the
Executive will not, directly or indirectly, on the Executive’s
own behalf or on behalf of any other Person, solicit, induce, or attempt to solicit or induce any Company Employee or any independent
contractor (who is then engaged by the Company or was engaged by the Company in the prior six (6) months) to terminate his or
her employment or engagement with the Company or to accept employment or engagement with any Person. Nothing herein, the PIIA
or any other agreement between the parties prohibits use of general recruiting advertisements that are not targeted at any specific
employee, consultant or independent contractor of the Company. 

 

(c)          
Enforcement. In the event that the Executive breaches or threatens to breach any provisions of Section 5
or this Section 6, then the Company will suffer irreparable harm and
monetary damages would be inadequate to compensate the Company. Accordingly, in addition to any other rights which the Company
may have, the Company shall (i) be entitled, without the posting of bond or other security, to seek injunctive relief to enforce
the restrictions contained in such Sections and (ii) have the right to require the Executive to account for and seek payment to
the Company of all compensation, profits, monies, accruals, increments and other benefits derived or received by the Executive
as a result of any transaction constituting a breach of any of the provisions of Sections 5
or 6, to the maximum extent permitted by law.

 

(d)          Reasonableness
and Severability. Each of the rights and remedies enumerated in Section 6(c)
shall be independent of the others and shall be in addition to and not in lieu of any other rights and remedies available to the
Company at law or in equity. The Executive hereby acknowledges and agrees that the covenants provided for pursuant to Section
6 are essential elements of Executive’s employment by the Company and
are reasonable with respect to their duration, geographic area and scope and in all other respects. If, at the time of enforcement
of this Section 6, a court of competent
jurisdiction holds that the restrictions stated herein are unreasonable under the circumstances then existing, the parties
hereto agree that the maximum duration, scope or geographic area legally permissible under such circumstances will be substituted
for the duration, scope or area stated herein. If any of the covenants contained in this Section 6,
or any part of any of them, is hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect
the remainder of the covenant or covenants or rights or remedies which shall be given full effect without regard to the invalid
portions. No such holding of invalidity or unenforceability in one jurisdiction shall bar or in any way affect the Company’s
right to the relief provided in this Section 6 or otherwise in the courts of
any other state or jurisdiction within the geographical scope of such covenants as to breaches of such covenants in such other
respective states or jurisdictions, such covenants being, for this purpose, severable into diverse and independent covenants.

 

(e)          Defend
Trade Secrets Act of 2016. The Executive understands that pursuant to the federal Defend Trade Secrets Act of 2016, the Executive
shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret
that (i) is made (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an
attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint
or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

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(f)          Protected
Disclosures. The Executive understands that nothing contained in this Agreement or Executive’s PIIA limits the Executive’s
ability to communicate with any federal, state or local governmental agency or commission, including to provide documents or other
information, without notice to the Company or, subject to the qualifications set forth in clauses (i) through (iii) of the proviso
in Section 5(b), make any statements or disclose any Confidential Information as reasonably necessary in any legal dispute between
the Executive and the Company. The Executive also understands that nothing in this Agreement limits the Executive’s ability
to share compensation information concerning the Executive or others or information regarding other terms and conditions of Executive’s
employment, except that this does not permit the Executive to disclose compensation information concerning others that the Executive
obtains because the Executive’s job responsibilities require or allow access to such information.

 

(g)          Remedies.
In the event that an actual proceeding is brought in equity to enforce the provisions of Section 5
or this Section 6, the Executive shall not urge as a defense that there
is an adequate remedy at law nor shall the Company be prevented from seeking any other remedies which may be available. The Executive
agrees that he shall not raise in any proceeding brought to enforce the provisions of Section 5
or this Section 6 that the covenants contained in such Sections limit
his ability to earn a living.

 

(h)          Survival.
The provisions of Section 6 shall survive any termination of this Agreement.

 

7.           Representations
and Warranties. 

 

(a)          The
Executive hereby represents and warrants to the Company as follows:

 

(i)          Neither
the execution or delivery of this Agreement nor the performance by the Executive of his duties and other obligations hereunder
violate or will violate any statute, law, determination or award, or conflict with or constitute a default or breach of any covenant
or obligation under (whether immediately, upon the giving of notice or lapse of time or both) any prior employment agreement,
contract, or other instrument to which the Executive is a party or by which he is bound.

 

(ii)         The
Executive has the full right, power and legal capacity to enter and deliver this Agreement and to perform his duties and other
obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of the Executive enforceable against
him in accordance with its terms. No approvals or consents of any persons or entities are required for the Executive to execute
and deliver this Agreement or perform his duties and other obligations hereunder.

 

(b)          The
Company hereby represents and warrants to the Executive that this Agreement and the employment of the Executive hereunder have
been duly authorized by and on behalf of the Company, including, without limitation, by all required action by the Board (or committee
thereof).

 

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8.           Termination.
The Executive’s employment hereunder shall be terminated immediately upon the Executive’s death and may be otherwise
terminated as follows:

 

(a)          The
Executive’s employment hereunder may be terminated by the Company for Cause as determined by the Board. Any of the following
actions by the Executive shall constitute “Cause”:

 

(i)          The
willful failure or continuing refusal by the Executive to perform his duties hereunder;

 

(ii)         Any
act of willful or intentional misconduct, or a grossly negligent act by the Executive having the effect of injuring, in a material
way (as determined in good-faith by the Company), the business or reputation of the Company, including but not limited to, any
officer, director, or executive of the Company;

 

(iii)        Willful
misconduct by the Executive in carrying out his duties or obligations under this Agreement, including, without limitation, insubordination
with respect to lawful directions received by the Executive from the Chief Executive Officer or from the Board;

 

(iv)        The
Executive’s indictment of any felony or a misdemeanor involving moral turpitude (including entry of a nolo contendere plea);

 

(v)         The
determination by the Company, based upon clear and convincing evidence, after a reasonable and good-faith investigation by the
Company following a written allegation by another employee of the Company, that the Executive engaged in some form of harassment
prohibited by law (including, without limitation, age, sex or race discrimination);

 

(vi)        Any
intentional misappropriation of the property of the Company, or embezzlement of its funds or assets (whether or not a misdemeanor
or felony);

 

(vii)       Breach
by the Executive of any of the provisions of Sections 5, 6, or 7 of this Agreement or any of the provisions of the PIIA; and

 

(viii)      Breach
by the Executive of any provision of this Agreement other than those contained in Sections 5, 6, or 7 which is not cured by the
Executive within thirty (30) business days after notice thereof is given to the Executive by the Company.

 

Except for a failure,
misconduct, breach, or refusal which, by its nature, cannot reasonably be expected to be cured, the Executive shall have fifteen
business days from the delivery of written notice by the Company within which to cure any acts constituting Cause, unless a longer
cure period is provided in the act constituting Cause described above or by the nature of the breach a longer cure period is necessary
and all reasonable measures to cure such breach have been commenced within such fifteen business days; provided however, that,
if the Company reasonably expects irreparable injury from a delay of fifteen business days, the Company may give the Executive
notice of such shorter period within which to cure as is reasonable under the circumstances, which may include the termination
of the Executive's employment for Cause without notice and with immediate effect.

 

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(b)          
The Executive’s employment hereunder may be terminated by the Chief Executive Officer due to the Executive’s Disability.
For purposes of this Agreement, a termination for “Disability” shall occur (i) when the Chief Executive Officer
has provided a written termination notice to the Executive supported by a written statement from a reputable independent physician
mutually selected by the Company and the Executive, or the Executive’s legal representatives in the event he is unable to
make such selection due to mental incapacity, to the effect that the Executive shall have become so physically or mentally incapacitated
as to be unable to resume, even with reasonable accommodation as may be required under the Americans With Disabilities Act, within
the ensuing twelve (12) months, his employment hereunder by reason of physical or mental illness or injury, or (ii) upon rendering
of a written termination notice by the Company after the Executive has been unable to substantially perform his duties hereunder,
even with reasonable accommodation as may be required under the Americans With Disabilities Act, for one
hundred twenty (120) or more consecutive days, or more than one
hundred eighty (180) days in any consecutive twelve (12) month period,
by reason of any physical or mental illness or injury. For purposes of this Section 8(b),
the Executive agrees to make himself available and to cooperate in any reasonable examination by a reputable independent physician
mutually selected by the Company and the Executive, and paid for by the Company. Notwithstanding the foregoing, nothing herein
shall give the Company the right to terminate the Executive prior to discharging
its obligations to the Executive, if any, under the Family and Medical Leave
Act, the Americans With Disabilities Act, or any other applicable law. The Company shall reimburse the Executive for his actual
cost of maintaining a supplementary long-term disability insurance policy during the Term up to a maximum reimbursement of $10,000
per year. 

 

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(c)          The
Executive’s employment hereunder may be terminated by the Company (or its successor) by written notice to the Executive
upon the occurrence of a Change of Control. For purposes of this Agreement, “Change of Control” means (i) the
acquisition, directly or indirectly, following the Effective Date by any person (as such term is defined in Section 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended), in one transaction or a series of related transactions, of securities
of the Company representing in excess of fifty percent (50%) of the combined voting power of the Company’s then outstanding
securities if such person or his or its affiliate(s) do not own in excess of fifty percent (50%) of such voting power on the Effective
Date of this Agreement, (ii) the future disposition by the Company (whether direct or indirect, by sale of assets or stock, merger,
consolidation or otherwise) of all or substantially all of its business and/or assets in one transaction or series of related
transactions other than a merger effected exclusively for the purpose of changing the domicile of the Company, or (iii) a “corporate
transaction” as defined in the Company equity incentive plans under which the Executive has been granted Equity Awards.
Notwithstanding the foregoing, if the Change of Control does not constitute a change in the ownership or effective control of
the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”), the amount of cash severance payable pursuant to
Section 9(b), if any, shall be paid in equal installments in accordance with the Company’s then payroll practice over a
12-month period. Solely for purposes of Section 409A of the Code, each installment payment is considered a separate payment.

 

(d)          The
Executive’s employment hereunder may be voluntarily terminated by the Executive for Good Reason. For purposes of this Agreement,
 “Good Reason” shall mean any of the following which occurs without Executive’s prior written consent:
(i) any material reduction by the Company of the Executive’s duties, or
responsibilities or authority that, taken as a whole, results in a material diminution of position; provided, however that, except
as specified in subsection 8(d)(iii), herein, a change in the Executive’s title or reporting relationship shall not by itself
constitute a termination by Executive for Good Reason under this clause (i); (ii) any material reduction (meaning 10% or
more) by the Company of the Executive’s Base Salary and/or target Annual
Performance Bonus payable hereunder (it being understood that an across-the-board reduction, applicable to all senior management
personnel of the Company, including the Executive, shall not be deemed a reduction for purposes of this definition); (iii) the
Executive no longer reports directly to the Chief Scientific Officer - Virology, Chief Executive Officer or President of the Company
or its successor; (iv) any requirement by the Company, without the Executive’s
prior written consent, that the Executive locate the Executive’s
residence or primary place of employment to a location outside a 50-mile radius of such
location applicable as of the Effective Date, or from such other location that the Company and the Executive may mutually agree
upon and designate from time to time during the Term; or (v) a material breach by the Company of Section 7(b) of this Agreement
which is not cured by the Company within thirty (30) days after written notice thereof is given to the Company by the Executive.
However, notwithstanding the above, Good Reason shall not exist unless: (x) the Executive notifies the Board or the Chief Executive
Officer in writing within thirty (30) days of the initial existence of one of the adverse events described above, and (y) the
Company fails to correct the adverse event within thirty (30) days of such notice, and (z) the Executive’s voluntary termination
because of the existence of one or more of the adverse events described above occurs within ninety (90) days of the initial existence
of the event.

 

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(e)          The
Executive’s employment may be terminated by the Company without Cause by delivery of written notice to the Executive effective
the date of delivery of such notice. For the avoidance of doubt, termination of the Executive’s employment due to his death
or Disability does not constitute a termination for Cause.

 

(f)          The
Executive’s employment may be terminated by the Executive in the absence of Good Reason by delivery of written notice to
the Company effective fifteen (15) days after the date of delivery of such notice.

 

9.           Compensation
upon Termination.

 

(a)          Accrued
Benefits. Upon termination of the Executive’s employment by either
party regardless of the cause or reason, the Executive shall be entitled to
the following, referred to herein as the “Accrued Benefits”: (i) payment for any accrued, unpaid Base Salary
through the termination date; (ii) if provided for under the Company’s vacation
plan or policy or required by applicable law, payment for any accrued, unused vacation days through the termination date; and
(iii) reimbursement for any approved business expenses that the Executive
has timely submitted for reimbursement in accordance with the Company’s business expense reimbursement policy or practice.
Except as otherwise expressly provided by this Agreement, the Company shall have no further payment obligations to the
Executive and all Equity Awards that have not vested as of the termination date shall be forfeited to the Company as of
such date. Subject to this Section 9, the vested portion of any stock options held by the Executive as of the Executive’s
termination date shall remain exercisable for ninety (90) days following such termination. 

 

(b)          Change
of Control Separation Benefits. If the Executive’s employment is terminated by the Company due to Disability pursuant
to Section 8(b), by the Company without Cause pursuant to Section 8(e), or by
the Executive for Good Reason pursuant to Section 8(d) and such termination occurs during the period beginning on the Change of
Control and ending twelve (12) months immediately following such Change of Control (the “COC Period”), provided
that the Executive signs and does not revoke a general release of claims
against the Company within the time period specified therein (which time period shall not exceed sixty (60) days), in form and
substance satisfactory to the Company (the “Release”), then the Company shall provide the following benefits
to the Executive, referred to herein as the “Change of Control Separation
Benefits”: (i) a lump sum payment equal to twelve (12) months of the
Executive’s then-current Base Salary; (ii) the full target Annual Performance Bonus for the year in which such termination
occurs, less any installments paid in advance (items (i) and (ii) being the “Change of Control Separation Pay”);
(iii) immediate vesting in full of all Equity Awards subject to time based vesting; (iv) extension of the exercise period for
all vested stock options held by the Executive as of the termination date until the end of their term; and (v) if the Executive
properly and timely elects to continue his health insurance benefits under COBRA or applicable state continuation coverage after
the termination date, reimbursement for Executive’s health continuation coverage premiums that the Company would have paid
had the Executive remained employed by the Company until the earlier of (A) the twelve (12) month period following the month in
which the Executive’s termination date occurs, or (B) the maximum period permitted by applicable law, provided that the
Company’s obligation to pay the Executive’s health continuation coverage premiums will terminate if he becomes eligible
for health insurance benefits from another employer during the reimbursement period. Subject to the Release being effective, the
Change of Control Separation Pay will be paid within sixty (60) days after the termination date; provided, however, that if the
60-day period begins in one calendar year and ends in a second calendar year, such payments, to the extent they qualify as “non-qualified
deferred compensation” within the meaning of Section 409A of the Code, shall be paid no earlier than the first Company payroll
date in the second calendar year and, in any case, by the last day of such 60-day period.

 

    	 	11	 

     

    

 

(c)          Base
Separation Benefits. If the Executive’s employment is terminated during the Term and outside of the COC Period as a
result of the Executive’s Disability pursuant to Section 8(b),
by the Company without Cause pursuant to Section 8(e), or by the
Executive for Good Reason pursuant to Section 8(d)(ii) –(v), provided that the
Executive signs and does not revoke the Release within the time period specified therein (which time period shall not exceed
sixty (60) days), then the Company shall provide the following benefits to the
Executive, referred to herein as the “Base Separation Benefits”: (i) the continued payment in installments
of the Executive’s then-current Base Salary for a period of twelve (12)
months following the termination date (the “Base Separation Pay”); (ii) all Equity Awards which would have
time vested during the six (6) months following the termination date shall accelerate and vest; (iii) with respect to those vested
stock options granted prior to 2018, the extension of the exercise period for all vested stock options until term and with respect
to those vested stock options granted after January 2018, the extension of the exercise period for all vested stock options until
the first anniversary of the termination date; and (iv) if the Executive properly and timely elects to continue his health insurance
benefits under COBRA or applicable state continuation coverage after the termination date, reimbursement for Executive’s
health continuation coverage premiums that the Company would have paid had the Executive remained employed by the Company until
the earlier of (A) the twelve (12) month period following the month in which the Executive’s termination date occurs, or
(B) the maximum period permitted by applicable law, provided that the Company’s obligation to pay Executive’s health
continuation coverage premiums will terminate if he becomes eligible for health insurance benefits from another employer during
the reimbursement period. The first installment of the Base Separation Pay will be paid on the Company’s first regular payday
occurring following the effective date of the Release in an amount equal to the sum of payments of Base Salary that would have
been paid if he had remained in employment for the period from the termination date through the payment date. The remaining installments
will be paid until the end of the 12-month period at the same rate as the Base Salary in accordance with the Company’s normal
payroll practices for its employees. Notwithstanding the foregoing, if the 60-day period for the execution and non-revocation
of the Release begins in one calendar year and ends in a second calendar year, the Base Separation Pay, to the extent it qualifies
as “non-qualified deferred compensation” within the meaning of Section 409A of the Code, shall begin to be paid no
earlier than the first Company payroll date in the second calendar year and, in any case, by the last day of such 60-day period;
provided, however, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately
following the termination date. The Executive understands that if he is eligible
to receive the Base Separation Benefits, such Base Separation Benefits shall be in lieu of and not in addition to the Change of
Control Separation Benefits described in Section 9(b) of this Agreement. Notwithstanding
the foregoing, if the Executive is entitled to receive the Base Separation Benefits
but violates any provisions of this Agreement or any other agreement entered into by the
Executive and the Company after termination of employment, the Company will be entitled to immediately stop paying any
further installments of the Base Separation Benefits. If the Executive’s employment is terminated during the Term as a result
of the Executive’s death, then the Company shall provide to the
Executive’s estate the continued payment of Executive’s then-current Base Salary for a period of twelve (12)
months following the termination date, beginning on the Company’s first regular payday following the such termination date.

 

    	 	12	 

     

    

 

(d)          This
Section 9 sets forth the only obligations of the Company with respect to the
termination of the Executive’s employment with the Company, except as otherwise required by law, and the Executive acknowledges
that, upon the termination of his employment, he shall not be entitled to any payments or benefits which are not explicitly provided
in Section 9.

 

(e)          Upon
termination of the Executive’s employment hereunder for any reason, the Executive shall be deemed to have resigned as director
and/or officer of the Company and each subsidiary, to the extent applicable, effective as of the date of such termination, unless
otherwise requested by the Board.

 

(f)          The
Release will not waive any of Executive's rights, or obligations of the Company, regarding: (1) any right to indemnification
and/or contribution, advancement or payment of related expenses that Executive may have pursuant to the Company’s Bylaws,
Articles of Incorporation or other organizing documents, under any written indemnification or other agreement between the parties,
and/or under applicable law; (2) any rights that Executive may have to insurance coverage under any directors and officers liability
insurance, other insurance policies of the Company, COBRA or any similar state law; (3) any claims for worker’s compensation,
state disability or unemployment insurance benefits, or any other claims that cannot be released as a matter of applicable law;
(4) rights to any vested benefits under any equity, compensation or other employee benefit plan or agreement with the Company;
(5) rights to any applicable severance benefits; (6) Executive's rights as a shareholder of the Company, if applicable, and (7)
any claims arising after the date Executive signs the Release.

 

(g)          The
provisions of this Section 9 shall survive any termination of this Agreement.

 

10.         Section
409A. The intent of the parties to this Agreement is that the payments, compensation and benefits under this Agreement be
exempt from or comply with Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Section
409A”) and, in this connection, the following shall be applicable:

 

(a)          To
the greatest extent possible, this Agreement shall be interpreted to be exempt from or in compliance with Section 409A. 

 

(b)          If
any severance, compensation, or benefit required by this Agreement is to be paid in a series of installment payments, each individual
payment in the series shall be considered a separate payment for purposes of Section 409A.

 

(c)          If
any severance, compensation, or benefit required by this Agreement that constitutes “nonqualified deferred compensation”
within the meaning of Section 409A is considered to be paid on account of “separation from service” within the meaning
of Section 409A, and the Executive is a “specified employee” within
the meaning of Section 409A, no payments of any of such severance, compensation, or benefit shall be
made until the earlier of six (6) months plus one (1) day after such separation from service or the Executive’s death
(the “New Payment Date”). The aggregate amount of any such payments that would have otherwise been paid during
the period between the date of separation from service and the New Payment Date shall be paid to the Executive or his estate in
a lump sum payment on the New Payment Date. Thereafter, any severance, compensation,
or benefit required by this Agreement that remains outstanding as of the day
immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance
with the terms of this Agreement.

 

    	 	13	 

     

    

 

(d)          -
If either the Company or Executive reasonably determines that any payment or benefit provided to Executive will violate Section
409A, the Company and Executive will use best efforts to restructure the payment in a manner that is either exempt from or compliant
with Section 409A.  The Company and Executive will execute any and all amendments to this Agreement as may be necessary to
ensure compliance with the distribution provisions of Section 409A in an effort to avoid or minimize, to the extent allowable
by law, the tax (and any interest or penalties thereon) associated with Section 409A.  If it is determined that a payment
under this Agreement was (or may be) made in violation of Section 409A, the Company will cooperate reasonably with any effort
by Executive to mitigate the tax consequences of such violation, including cooperation with Executive’s participation in
any IRS voluntary compliance program or other correction procedure under Section 409A that may be available to Executive.

 

(e)          The
provisions of this Section 10 shall survive any termination of this Agreement.

 

11.          Section
280G.

 

(a)          Notwithstanding
any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits
provided or to be provided by the Company or its affiliates to the Executive or for the Executive’s benefit pursuant to
the terms of this Agreement or otherwise (“Covered Payments”) constitute parachute payments (“Parachute
Payments”) within the meaning of Section 280G of the Code and would, but for this Section 11 be subject to the excise
tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law
or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then prior to making
the Covered Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Executive of the Covered
Payments after payment of the Excise Tax to (ii) the Net Benefit to the Executive if the Covered Payments are limited to the extent
necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under
(ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments
is subject to the Excise Tax (that amount, the “Reduced Amount”). “Net Benefit” shall mean
the present value of the Covered Payments net of all federal, state, local, foreign income, employment and excise taxes.

 

(b)          Any
such reduction shall be made in accordance with Section 409A of the Code and the following: (i) the Covered Payments which do
not constitute nonqualified deferred compensation subject to Section 409A of the Code shall be reduced first; and (ii) all other
Covered Payments shall then be reduced as follows: (A) cash payments shall be reduced before non-cash payments; and (B) payments
to be made on a later payment date shall be reduced before payments to be made on an earlier payment date.

 

    	 	14	 

     

    

 

(c)          Any
determination required under this Section 11 shall be made in writing in good faith by the accounting firm that was the Company’s
independent auditor immediately before the Change of Control (the “Accounting Firm”). The Accounting Firm shall
provide detailed supporting calculations to the Company and the Executive as requested by the Company or the Executive. The Company
and the Executive shall provide the Accounting Firm with such information and documents as the Accounting Firm may reasonably
request in order to make a determination under this Section 11. For purposes of making the calculations and determinations required
by this Section 11, the Accounting Firm may rely on reasonable, good faith assumptions and approximations concerning the application
of Section 280G and Section 4999 of the Code. The Accounting Firm’s determinations shall be final and binding on the Company
and the Executive. The Company shall be responsible for all fees and expenses incurred by the Accounting Firm in connection with
the calculations required by this Section 11.

 

(d)          It
is possible that after the determinations and selections made pursuant to this Section 11 the Executive will receive Covered Payments
that are in the aggregate more than the amount provided under this Section 11 (“Overpayment”) or less than
the amount provided under this Section 11 (“Underpayment”).

 

(i)          In
the event that: (A) the Accounting Firm determines, based upon the assertion of a deficiency by the Internal Revenue Service against
either the Company or the Executive which the Accounting Firm believes has a high probability of success, that an Overpayment
has been made or (B) it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding
that has been finally and conclusively resolved that an Overpayment has been made, then the Executive shall pay any such Overpayment
to the Company.

 

(ii)         In
the event that: (A) the Accounting Firm, based upon controlling precedent or substantial authority, determine that an Underpayment
has occurred or (B) a court of competent jurisdiction determines that an Underpayment has occurred, any such Underpayment will
be paid promptly by the Company to or for the benefit of the Executive.

 

12.          Miscellaneous.

 

(a)          This
Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, without
giving effect to its principles of conflicts of laws.

 

(b)          In
the event of any dispute arising out of, or relating to, this Agreement or the breach thereof (other than Sections 5 or 6 hereof),
or regarding the interpretation thereof, the parties agree to submit any differences to nonbinding mediation prior to pursuing
resolution through the courts. The parties hereby submit to the exclusive jurisdiction of the state and federal courts situated
in San Francisco County, California, and agree that service of process in such court proceedings shall be satisfactorily made
upon each other if sent by registered mail addressed to the recipient at the address referred to in Section 12(g) below. 

 

    	 	15	 

     

    

 

(c)          This
Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto, and their respective heirs,
legal representatives, successors and permitted assigns.

 

(d)          This
Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive. The rights and obligations
of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the
Company, including any successors or assigns in connection with any sale, transfer or other disposition of all or substantially
all of its business or assets.

 

(e)          This
Agreement cannot be amended orally, or by any course of conduct or dealing, but only by a written agreement signed by the parties
hereto.

 

(f)          The
failure of either party to insist upon the strict performance of any of the terms, conditions and provisions of this Agreement
shall not be construed as a waiver or relinquishment of future compliance therewith, and such terms, conditions and provisions
shall remain in full force and effect. No waiver of any term or condition of this Agreement on the part of either party shall
be effective for any purpose whatsoever unless such waiver is in writing and signed by such party.

 

(g)          All
notices, requests, consents and other communications, required or permitted to be given hereunder, shall be in writing and shall,
in addition to being provided by electronic mail, be delivered personally or by an overnight courier service or sent by registered
or certified mail, postage prepaid, return receipt requested, to the parties at the addresses set forth on the first page of this
Agreement and the electronic mail addresses set forth on the signature page, and shall be deemed given when so delivered personally
or by overnight courier, or, if mailed, five days after the date of deposit in the United States mail. Either party may designate
another address, for receipt of notices hereunder by giving notice to the other party in accordance with this Section 11(g).

 

(h)          This
Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof, and supersedes
all prior agreements, arrangements and understandings, written or oral, relating to the subject matter hereof, including, without
limitation that the Prior Agreement. For avoidance of doubt, the execution and delivery of this Agreement shall not constitute
 “Good Reason” under the Prior Agreement. No representation, promise or inducement has been made by either party that
is not embodied in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement
not so set forth.

 

(i)          As
used in this Agreement, “affiliate” of a specified person or entity shall mean and include any person or entity controlling,
controlled by or under common control with the specified person or entity.

 

(j)          The
section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation
of this Agreement.

 

    	 	16	 

     

    

 

(k)          This
Agreement may be executed in any number of counterparts, and by facsimile, .pdf or other electronic means, each of which shall
constitute an original, but all of which together shall constitute one and the same instrument.

 

[Remainder of Page Intentionally Left
Blank – Signature Page Follows]

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement and intend it to be effective as of the Effective Date by proper person thereunto
duly authorized.

 

	 	ASSEMBLY BIOSCIENCES, INC.
	 	 	 
	 	By:	/s/ Derek Small
		Name	Derek Small
	 	Title:	Chief Executive Officer and President
	 	 	 
	 	EXECUTIVE	 
	 	 	 
	 	/s/ Uri A. Lopatin, MD
	 	Name:	Uri A. Lopatin, MD

 

[Signature Page to Uri A. Lopatin, MD Amended
and Restated Employment Agreement]

     

     

    

 

EXHIBIT A

 

California Labor Code Section 2870. Application of provision
providing that employee shall assign or offer to assign rights in invention to employer.

 

(a)          Any
provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights
in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own
time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either:

 

(1)         Relate
at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer; or

 

(2)         Result
from any work performed by the employee for his employer.

 

(b)          To
the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.Exhibit
10.4

 

STOCK APPRECIATION
RIGHT award AGREEMENT

for non-u.s.
Grantees

UNDER THE Assembly Biosciences, INc.

2018 STOCK INCENTIVE PLAN

 

	Name of Grantee:	 	 
	 	 	 
	No. of SARs:	 	 
	 	 	 
	Exercise Price per Share:	 	 
	 	 	 
	Grant Date:	 	 
	 	 	 
	Expiration Date:	 	 
	 	 	 
	Post-Termination Exercise Period	Except as provided in Section 2, Vested SARs may be exercised for up to 90 days after termination of Continuous Service.

 

Pursuant to the Assembly Biosciences, Inc.
2018 Stock Incentive Plan as amended through the date hereof (the "Plan"), Assembly Biosciences, Inc. (the "Company")
hereby grants to the Grantee named above the number of SARs (as defined in the Plan) specified above. This Stock Appreciation Right
Award Agreement for Non-U.S. Grantees (the "SAR Agreement"), including any special terms and conditions for the
Grantee's country as set forth in the appendix attached hereto (the "Appendix," and together with the SAR Agreement,
the "Agreement"), shall give the Grantee the right to exercise on or prior to the Expiration Date specified above
all or part of the number of SARs specified above at the Exercise Price per Share specified above, and to receive a cash payment
in accordance with Paragraph 2 of this SAR Agreement, subject to the terms and conditions set forth in the Agreement and in the
Plan. Each of the SARs granted herein relates to the value of one share of Common Stock (as defined in the Plan).

 

Capitalized terms not defined herein but
defined in the Plan have the same definitions as in the Plan.

 

1.             Exercisability
Schedule. No portion of these SARs may be exercised until such portion shall have become exercisable. Except as set forth below,
and subject to the discretion of the Administrator to accelerate the exercisability schedule hereunder, these SARs shall be exercisable
on the dates indicated below.

 

     

     

    

 

	
        Incremental (Aggregate Number) 

        of SARs Exercisable
	 	Exercisability Date
	 	 	 
	[25% (25%)	 	First Anniversary of Grant Date
	25% (50%)	 	Second Anniversary of Grant Date
	25% (75%)	 	Third Anniversary of Grant Date
	25% (100%)	 	Fourth Anniversary of Grant Date]

 

Once exercisable, these SARs shall continue
to be exercisable at any time or times prior to the close of business (being 5 p.m. U.S. ET) on the Expiration Date, subject to
the provisions hereof and of the Plan. The number of SARs that become exercisable on any exercisability date shall be rounded down
to nearest whole number. Each installments shall take into effect prior rounding so that each annual installment including the
last installment is approximately the same. Upon the termination of the Grantee's Continuous Service for any reason other than
for Cause within 6 months following the occurrence of a Corporate Transaction, all unvested SARs shall immediately vest.

 

2.             Forfeiture
of Stock Appreciation Rights. In the event the Grantee's Continuous Service terminates for any reason, the Grantee's right
to vest in the SARs will cease as of the date of termination of the Grantee's Continuous Service, and any SARs that were not already
exercisable on the date of such termination shall be forfeited on that date. Furthermore, the Grantee's Post-Termination Exercise
Period will be measured by reference to the date of such termination in accordance with the Plan, provided, however, that in case
the Grantee's Continuous Service terminates for Cause, the Grantee's right to exercise the SARs shall terminate immediately upon
the date of the Grantee's termination of Continuous Service.

 

3.             Certain
Tax Matters. Regardless of any action taken by the Company or, if different, the Related Entity employing the Grantee or to
which the Grantee is otherwise providing services (the "Service Recipient"), the ultimate liability for all income
tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Grantee's
participation in the Plan and legally applicable to the Grantee or deemed by the Company or the Service Recipient, in their discretion,
to be an appropriate charge to the Grantee even if legally applicable to the Company or the Service Recipient ("Tax-Related
Items") is and remains the Grantee's responsibility and may exceed the amount actually withheld, if any, by the Company
or the Service Recipient. The Grantee further acknowledges that the Company and/or the Service Recipient (i) make no representations
or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the SARs, including, but not
limited to, the grant, vesting or exercise of the SARs and the receipt of any cash payment in settlement of the SARs; and (ii)
do not commit to and are under no obligation to structure the terms of the grant or any aspect of the SARs to reduce or eliminate
the Grantee's liability for Tax-Related Items or achieve any particular tax result. Further, if the Grantee is subject to Tax-Related
Items in more than one jurisdiction, the Company and/or the Service Recipient (or former service recipient, as applicable) may
be required to withhold or account for Tax-Related Items in more than one jurisdiction.

 

The Grantee agrees to make adequate arrangements
satisfactory to the Company and/or the Service Recipient, as applicable, prior to any relevant tax withholding event, to satisfy
all Tax-Related Items. In this regard, the Grantee authorizes the Company and/or the Service Recipient, or their respective agents,
at their discretion, to satisfy any applicable withholding obligations with regard to all Tax-Related Items by one or a combination
of the following:

 

    	 	2	 

     

    

 

(a)          withholding
from the Grantee's wages or other cash compensation paid to the Grantee by the Company and/or the Service Recipient; or

 

(b)          withholding
from the cash payment due to the Grantee upon exercise of the SARs.

 

The Company or Service Recipient may withhold
or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding
rates, including maximum applicable rates in the Grantee's jurisdiction(s), in which case the Grantee may receive a refund of any
over-withheld amount in cash.

 

Finally, the Grantee agrees to pay to the
Company or the Service Recipient any amount of Tax-Related Items that the Company or the Service Recipient may be required to withhold
as a result of the Grantee's participation in the Plan that cannot be satisfied by the means previously described. The Company
may refuse to deliver the cash payment at exercise if the Grantee fails to comply with his or her obligations in connection with
the Tax-Related Items as described in this Section 3.

 

4.             Rights
Prior to Exercisability. The SARs represent a right to payment in cash from the Company upon exercise if the conditions of
this Agreement are met and do not give the Grantee ownership of any Common Stock. The Grantee shall not have any rights of a stockholder
with respect to the shares of Common Stock underlying the SARs (including, without limitation, any voting rights or any right to
dividends paid with respect to the shares of Common Stock underlying the SARs). No assets have been set aside by the Company or
otherwise to pay the amounts promised by this Agreement, the right to payment is unsecured, and the Grantee is a general creditor
of the Company for payment under this Agreement.

 

5.             Nature
of Grant: In accepting the SARs, the Grantee understands, acknowledges and agrees that:

 

(a)          the
Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated
by the Company at any time, to the extent permitted in the Plan;

 

(b)          the
grant of the SARs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future
grants of SARs, benefits in lieu of SARs or other Awards, even if SARs have been awarded in the past;

 

(c)          all
decisions with respect to future awards of SARs or other Awards, if any, will be at the sole discretion of the Company;

 

(d)          the
Grantee is voluntarily participating in the Plan;

 

    	 	3	 

     

    

 

(e)          the
grant of the SARs, and the income from and value of same, are not intended to replace any pension rights or compensation;

 

(f)          unless
otherwise agreed with the Company, the SARs, and the income from and value of same, are not granted as consideration for, or in
connection with, the service the Grantee may provide as a director of a Related Entity;

 

(g)          the
SARs, and the income from and value of same, are not part of normal or expected compensation or salary for any purpose, including
for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, holiday
pay, long-service awards, pension or retirement or welfare benefits or similar mandatory payments;

 

(h)          no
claim or entitlement to compensation or damages shall arise from forfeiture of the SARs resulting from the termination of the Grantee's
Continuous Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the
jurisdiction where the Grantee is employed or otherwise providing services or the terms of the Grantee's employment or service
agreement, if any);

 

(i)          the
future value of the shares of Common Stock underlying the SARs is unknown and cannot be predicted with certainty;

 

(j)          if
the underlying shares of Common Stock do not increase in value, the SARs will have no value; and

 

(k)          neither
the Company, the Service Recipient nor any other Related Entity will be liable for any foreign exchange rate fluctuation between
the Grantee's local currency and the United States Dollar that may affect the value of the SARs or of any amounts due to the Grantee
pursuant to the exercise of the SARs

 

6.             Data
Privacy.

 

The Grantee hereby explicitly and unambiguously
consents to the collection, use and transfer, in electronic or other form, of his or her personal data as described in this Agreement
and any other SARs grant materials by and among, as applicable, the Service Recipient, the Company, and any other subsidiaries
and affiliates of the Company for the exclusive purpose of implementing, administering and managing the Plan.

 

The Grantee understands that the Company
and the Service Recipient may hold certain personal information about the Grantee, including, but not limited to, the Grantee's
name, home address and telephone number, e-mail address, date of birth, social insurance number (to the extent permitted under
applicable local law), passport or other identification number (e.g., resident registration number), salary, nationality, job title,
any shares of Company common stock or directorships held in the Company, details of all SARs or equivalent benefits awarded, cancelled,
purchased, exercised, vested, unvested or outstanding in the Grantee's favor ("Data"), for the exclusive purpose of implementing,
administering and managing the Plan. 

 

    	 	4	 

     

    

 

The Grantee understands that Data will
be transferred to such service provider(s) as may be selected by the Company to assist with the implementation, administration
and management of the Plan. The recipients of Data may be located in the United States or elsewhere, and each recipient's country
may have different data privacy laws and protections than the Grantee's country. The Grantee may request a list with the names
and addresses of any potential recipients of Data by contacting the Grantee's local human resources representative. 

 

The Grantee authorizes the Company and
any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing
the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing,
administering and managing the Grantee's SARs, including any requisite transfer of such Data as may be required to a broker, escrow
agent or other third party with whom Grantee may elect to deposit any payment received upon exercise of the SARs. The Grantee understands
that Data will be held only as long as is necessary to implement, administer and manage the Grantee's participation in the Plan.
The Grantee may, at any time, view Data, request information about the storage and processing of Data, require any necessary amendments
to Data or refuse or withdraw the consents herein, without cost, by contacting the Grantee's local human resources representative.
Further, the Grantee is providing the consents herein on a purely voluntary basis. If the Grantee does not consent, or if the Grantee
later seeks to revoke consent, the Grantee's employment or service with the Service Recipient will not be affected; the only consequence
of refusing or withdrawing consent is that the Company would not be able to grant SARs or other awards under the Plan to the Grantee
or administer or maintain such awards. Therefore, the Grantee understand that refusing or withdrawing consent may affect the Grantee's
ability to participate in the Plan. For more information on the consequences of refusal to consent or withdrawal of consent, the
Grantee may contact his or her local human resources representative.

 

7.             Investment
Representation. The Grantee represents and warrants to the Company that the Grantee has read this Agreement carefully, and
to the extent the Grantee believes it necessary, has discussed this Agreement and its impact and limitations upon the Grantee with
counsel.

 

8.             No
Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations
regarding the Grantee's participation in the Plan or the Grantee's exercise of the SARs. The Grantee understands and acknowledges
that he or she should consult with his or her own personal tax, legal and financial advisors regarding the Grantee's participation
in the Plan before taking any action related to the Plan.

 

9.             Transferability.
The right to the SARs granted under this Agreement may not be sold, exchanged, transferred, pledged, hypothecated, encumbered or
otherwise disposed of except as provided in the Plan. The Company shall have the right to assign to any of its affiliates any of
its rights, or to delegate to any of its affiliates any of its obligations under this Agreement.

 

10.           Binding
Effect. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

 

    	 	5	 

     

    

 

11.           Gender
and Number. All terms used in this Agreement shall be deemed to refer to the masculine, feminine, neuter, singular or plural
as the context may require.

 

12.           Terms
and Conditions of Plan. The terms and conditions included in the Plan are incorporated by reference herein, and to the extent
that any conflict may exist between any term or provision of this Agreement and any term or provision of the Plan as in effect
from time to time, such term or provision of the Plan shall control.

 

13.           Appendix.
Notwithstanding any terms or conditions in this SAR Agreement, the SARs shall be subject to any special terms and conditions set
forth in any Appendix for the Grantee's country. Moreover, if the Grantee relocates to one of the countries included in the Appendix,
the special terms and conditions for such country will apply to the Grantee, to the extent the Company determines that the application
of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this
SAR Agreement.

 

14.           Imposition
of Other Requirements. The Company reserves the right to impose other requirements on the Grantee's participation in the Plan
and the SARs to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require
the Grantee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

 

15.           Certain
Remedies. Without intending to limit the remedies available to the Company, the Grantee agrees that damages at law will be
an insufficient remedy in the event the Grantee violates the terms of this Agreement. The Grantee agrees that the Company may apply
for and have injunctive or other equitable relief in any court of competent jurisdiction to restrain the breach or threatened breach
of, or otherwise specifically to enforce, any of the provisions hereof.

 

16.           Waiver.
The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed
as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

 

17.           No
Restriction on Right of Company to Effect Corporate Changes. Neither the Plan nor this Agreement shall affect in any way the
right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations
or other changes in the capital structure or business of the Company, or any merger or consolidation of the Company, or any issue
of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose
rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common
Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the assets or business of
the Company, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

    	 	6	 

     

    

 

18.           Entire
Agreement. This Agreement (including the Plan, which is incorporated herein by reference and all additional riders incorporated
herein) sets forth all of the promises, agreements, conditions and understandings between the parties hereto with respect to the
Award, and there are no promises, agreements, conditions, understandings, warranties or representations, oral or written, express
or implied, between them with respect to the SARs other than as set forth therein or herein. This Agreement supersedes and replaces
any and all prior agreements between the parties hereto with respect to SARs. This Agreement is, and is intended by the parties
to be, an integration of any and all prior agreements or understandings, oral or written, with respect to the SARs. Subject to
Section 14, no modification, amendment or waiver of any of the provisions of this Agreement shall be effective unless approved
in writing by both parties.

 

19.           Invalid
or Unenforceable Provision. The invalidity or unenforceability of any particular provision of this Agreement shall not affect
the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision
was omitted.

 

20.           Governing
Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of Delaware, without giving effect
to principles of conflicts of laws. Any and all disputes relating to, concerning or arising from this Agreement, or relating to,
concerning or arising from the relationship between the parties evidenced by the SARs or this Agreement, shall be brought and heard
exclusively in the United States District Court for the District of Delaware or the Delaware Superior Court, New Castle County.
Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby
irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising
from such dispute, and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have
that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is
brought in such courts is improper or that such proceedings have been brought in an inconvenient forum.

 

21.           No
Right to Continued Service. Neither the Plan, nor this Agreement nor the granting or exercisability of the SARs shall confer
upon the Grantee any right to be retained in Continuous Service, nor be interpreted as forming any employment or service contract
with the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Service Recipient
to terminate the Grantee's Continuous Service at any time.

 

22.           Language.
The Grantee acknowledges and represents that he or she is proficient in the English language and understands the terms of this
Agreement and any other document related to the Plan. If the Grantee has received this Agreement and/or any other document related
to the Plan translated into a language other than English and if the meaning of the translated version is different than the English
version in any way, the English version will control.

 

23.           Foreign
Asset/Account Reporting Requirements and Exchange Controls. Certain foreign asset and/or foreign account reporting requirements
and exchange controls may affect the Grantee's ability to acquire or hold cash received upon exercise of the SARs in a brokerage
or bank account outside the Grantee's country. The Grantee may be required to report such accounts, assets or transactions to the
tax or other authorities in the Grantee's country and/or to repatriate funds received as a result of participation in the Plan
to the Grantee's country through a designated bank or broker within a certain time after receipt. It is the Grantee's responsibility
to comply with such regulations, and the Grantee is advised to consult a personal legal advisor for any details.

 

    	 	7	 

     

    

 

24.           Miscellaneous.

 

(a)          All
decisions of the Board (or the Committee) with respect to the interpretation, construction and application of the Plan and/or this
Agreement shall be conclusive and binding upon the Grantee and all other persons.

 

(b)          This
Agreement has been drafted with the intent that payments (and the right to payments) under it are exempt from or comply with the
requirements of Section 409A of the U.S. Internal Revenue Code of 1986, as amended, and the regulations thereunder applicable to
nonqualified deferred compensation. This Agreement shall be interpreted in a manner consistent with such intent.

 

(c)          The
Company may, in its sole discretion, decide to deliver any documents related to the SARs awarded under, and participation in, the
Plan or future SARs that may be awarded under the Plan by electronic means or to request the Grantee's consent to participate in
the Plan by electronic means. The Grantee hereby consents to receive such documents by electronic delivery and, if requested, to
agree to participate in the Plan through an online or electronic system established and maintained by the Company or a third party
designated by the Company.

 

(d)          This
Agreement may be executed (including by electronic acceptance) in counterparts, each of which shall be deemed an original but all
of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile
transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the
original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing
an original signature.

 

(e)          By
accepting this Agreement, the Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read
and understands the terms and provisions thereof, and accepts the SARs subject to all of the terms and conditions of the Plan and
this Agreement.

    	 	8	 

     

    

 

Appendix

to

STOCK APPRECIATION
RIGHT award AGREEMENT

for non-u.s.
Grantees

UNDER THE Assembly Biosciences, INc.

2018 STOCK INCENTIVE PLAN

 

Capitalized terms used but not defined herein shall have the
meanings ascribed to them in the Plan and/or the SAR Agreement to which this Appendix is attached.

 

Terms and Conditions 

 

This Appendix includes additional terms and conditions that
govern the SARs granted to the Grantee under the Plan if the Grantee resides and/or works in one of the countries listed below.

 

If the Grantee is a citizen or resident of a country other than
the one in which he or she is currently working and/or residing, transfers to another country after the Grant Date or is considered
a resident of another country for local law purposes, the Company shall, in its discretion, determine the extent to which the special
terms and conditions contained herein shall be applicable to the Grantee.

 

Notifications 

 

This Appendix also includes information regarding exchange controls
and certain other issues of which the Grantee should be aware with respect to the Grantee's participation in the Plan. The information
is based on the securities, exchange control and other laws in effect in the respective countries as of July 2018. Such laws are
often complex and change frequently. As a result, the Company strongly recommends that the Grantee not rely on the information
noted herein as the only source of information relating to the consequences of the Grantee's participation in the Plan because
the information may be out of date by the time the Grantee exercises the SARs.

 

In addition, the information contained in this Appendix is general
in nature and may not apply to the Grantee's particular situation, and the Company is not in a position to assure the Grantee of
any particular result. Accordingly, the Grantee is advised to seek appropriate professional advice as to how the applicable laws
in his or her country may apply to his or her situation.

 

Finally,
the Grantee understands that if he or she is a citizen or resident of a country other than the one in which he or she is currently
residing and/or working, transfers to another country after the Grant Date, or is considered a resident of another country for
local law purposes, the notifications contained herein may not be applicable to the Grantee in the same manner.

 

    	 	A-1	 

     

    

 

CHINA

 

Terms
and Conditions

 

The
following provision shall apply to the Grantee if the Grantee is subject to exchange control restrictions in the People's Republic
of China (the "PRC"), as determined by the Company in its sole discretion.

 

Payment
of Cash Proceeds. Notwithstanding any terms and conditions of the SAR Agreement or the Plan, any cash payment made upon exercise
of the SARs will be delivered to the Grantee by the Service Recipient through local payroll in the PRC, subject to any withholding
obligation related to Tax-Related Items. In no event will payments be made to the Grantee into an account outside of the PRC.

 

    	 	A-2

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