Document:

CONVERSION AGREEMENT

EXHIBIT 10.20

CONVERSION AGREEMENT

THIS CONVERSION AGREEMENT (the “Agreement”) is entered into as of the 11th day of November, 2016 (the "Effective Date") by and between Puradyn Filter Technologies Incorporated, a Delaware corporation (the "Corporation"), and Joseph V. Vittoria, an individual (the “Lender”). 

R E C I T A L S

WHEREAS, on March 28, 2002 the Corporation entered into that certain letter agreement (the "Commitment Agreement") pursuant to which the Lender, an executive officer and member of the Board of Directors, agreed to provide working capital to the Corporation in an amount up to $2,500,000 (the "Funding Commitment").

WHEREAS, pursuant to the Commitment Agreement the Corporation was to issue one or more promissory notes to the Lender evidencing such loan(s), with a maturity date of December 31, 2003.

WHEREAS, although the Corporation did not issue any promissory notes to the Lender as contemplated by the Commitment Agreement, from time to time since the date of the Commitment Agreement, the Lender has provided working capital to the Corporation, increased the amount of the Funding Commitment and extended the maturity date of the obligations as set forth in the various writings attached hereto as Exhibit A and incorporated herein by such reference and otherwise in the Corporation's filings with the U.S. Securities and Exchange Commission.

WHEREAS, as of the date hereof the Corporation owes the Lender an aggregate of $6,100,000, including accrued but unpaid interest, which is presently due on December 31, 2017 (the "Vittoria Obligation").

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the Corporation and the Lender hereby agree as follows: 

1.

Conversion of the Vittoria Obligations.  The Lender hereby converts the Vittoria Obligations into 20,333,333 shares of the Corporation's common stock at a conversion price of $0.30 per share (the "Conversion Shares") in full satisfaction of the Vittoria Obligation.  The parties intend that the issuance of the Conversion Shares pursuant to the terms of this Agreement is an exempt issuance under the Securities Act of 1933, as amended (the “Securities Act”) in reliance on an exemptions provided by Sections 3(a)(9) and 4(a)(2) of such act.  The certificate representing the Conversion Shares shall bear the following legend and a notation shall be made on the records of the Corporation's transfer agent that such shares also constitute "control securities."

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("1933 ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO COUNSEL TO PURADYN FILTER TECHNOLOGIES INCORPORATED THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS IS AVAILABLE."

2.

Representations and Warranties of the Corporation. The Corporation hereby represents and warrants to the Lender that as of the date of this Agreement:  

2.1

All corporate action on the part of the Company necessary for the authorization, execution and delivery of this Agreement, the performance of the obligations of the Corporation hereunder and the authorization, issuance and delivery of the Conversion Shares has been taken.  This Agreement has been duly executed and delivered by the Corporation and constitutes a valid and legally binding obligations of the Corporation, enforceable in accordance with its terms subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles. 

2.2

The Conversion Shares that will be issued to the Lender pursuant to this Agreement are duly and validly authorized and, when issued and delivered in accordance with the terms hereof for the consideration duly expressed herein, will be duly and validly issued, fully paid and nonassessable. 

3.

Representations and Warranties of Lender. The Lender hereby represents and warrants to the Corporation that: 

3.1

All corporate action on the part of the Lender for the authorization, execution and delivery of this Agreement and the performance of its obligations hereunder has been taken.  The Lender owns the Vittoria Obligations free of any lien or encumbrance and has not sold, assigned, transferred or otherwise hypothecated the Vittoria Obligations to any third party.  This Agreement has been duly executed and delivered by the Lender and constitutes a valid and legally binding obligation of the Lender, enforceable in accordance with its terms subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles. 

3.2

The Lender represents that the Conversion Shares are being acquired for the Lender’s own account, for investment purposes only and not with a view for distribution or resale to others. The Lender understands the acquisition of the Conversion Shares a represents a high risk capital investment and the Lender is able to afford an investment in a speculative venture having the risks and objectives of the Corporation.  The Lender is an "affiliate" of the Corporation as that term is defined in the federal securities laws and his ability to sell, transfer or otherwise dispose of the Conversion Shares is subject to his compliance with applicable federal securities laws including, but not limited to, Rule 144 of the Securities Act.  The Lender is not being granted any registration rights with respect to the Conversion Shares.  The Lender must bear the substantial economic risks of the investment in the Conversion Shares indefinitely.

3.3

The Lender is an "accredited investor" as that term is defined in Regulation D promulgated under the Securities Act.  The Lender, either alone or together with its advisors, if any, has such knowledge and experience in financial, tax, and business matters, and, in particular, investments in securities, so as to enable it to evaluate the merits and risks of an investment in the Conversion Shares and the Corporation and to make an informed investment decision with respect thereto.

3.4

This Agreement was prepared by Pearlman Law Group LLP, counsel for the Corporation.  The Lender acknowledges that, in executing this Agreement, it has had the opportunity to seek the advice of independent legal and/or tax counsel, and has read and understood all of the terms and provisions of this Agreement.

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4.

Miscellaneous. 

4.1

All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made if and when delivered personally or by overnight courier to the parties at the following addresses or sent by electronic transmission, with confirmation received, to the telecopy numbers specified below (or at such other address or telecopy number for a party as shall be specified by like notice): 

If to the Lender:

2017 High Ridge Road

Boynton Beach, FL 33426

Telecopier: ___________________ 

If to the Corporation:  

2017 High Ridge Road

Boynton Beach, FL  33426

Telecopier: ________________

4.2

This Agreement shall be binding upon, and inure to the benefit of, the respective successors, assigns, heirs, executors and administrators of the parties hereto and their respective successors and assigns, and no other person shall have any right, benefit or obligation under this Agreement as a third party beneficiary or otherwise. 

4.3

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any term of this Agreement may be amended or waived, only with the written consent of the Corporation and the Lender.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 

4.4

This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties hereto are expressly canceled.

4.5

This Agreement shall be governed by and construed solely and exclusively under and pursuant to the laws of the State of Florida as applied to agreements among Florida residents entered into and to be performed entirely within Florida.  Each of the parties hereto expressly and irrevocably (1) agree that any legal suit, action or proceeding arising out of or relating to this Agreement will be instituted exclusively in either the Florida State Supreme Court, County of Palm Beach, or in the United States District Court for the Southern District of Florida, (2) waive any objection they may have now or hereafter to the venue of any such suit, action or proceeding, and (3) consent to the in personam jurisdiction of either the Florida State Supreme Court, County of Palm Beach, or in the United States District Court for the Southern District of Florida in any such suit, action or proceeding.  Each of the parties hereto further agrees to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding in either the Florida State Supreme Court, County of Palm Beach, or in the United States District Court for the Southern District of Florida agree that service of process upon it mailed by certified mail to its address will be deemed in every respect effective service of process upon it, in any such suit, action or proceeding.  THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.  THE PARTY PREVAILING THEREIN SHALL BE ENTITLED TO PAYMENT FROM THE OTHER PARTY HERETO OF ALL OF ITS REASONABLE COUNSEL FEES AND DISBURSEMENTS.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

			
	 
	PURADYN FILTER TECHNOLOGIES INCORPORATED.

	 
	 
	 

	 
	By:  

	/s/ Alan Sandler

	 
	 
	Alan Sandler, Vice President

	 
	 
	 

	 
	 
	/s/ Joseph V. Vittoria

	 
	 
	Joseph V. Vittoria

4bpmc_Ex10_1 (Marion -- Employment Agreement)

		

			 

		

		
			Exhibit 10.1
		

		
			 
		

		
			EXECUTION COPY
		

		
			 
		

		
			EMPLOYMENT AGREEMENT
		

		
			 
		

		
			This Employment Agreement (“Agreement”) is dated as of November 9, 2016, between Blueprint Medicines Corporation, a Delaware corporation (the “Company”), and Marion Dorsch (the “Executive”). 
		

		
			 
		

		
			WHEREAS, the Company desires to employ the Executive and the Executive desires to be employed by the Company on the terms and conditions contained herein.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
		

		
			 
		

		
			1.        Employment.
		

		
			 
		

		
			(a)        Term.  The term of this Agreement shall commence on the Executive’s first day of employment, which shall be November 21, 2016 (the “Start Date”), and continue until terminated in accordance with the provisions of Section 3 (the “Term”).
		

		
			 
		

		
			(b)        Position and Duties. During the Term, the Executive shall serve as the Chief Scientific Officer of the Company, and shall have such duties as are consistent with such position.  The Executive shall report to the Chief Executive Officer of the Company (the  “CEO”). The Executive shall devote her full working time and efforts to the business and affairs of the Company.  Notwithstanding the foregoing, the Executive may serve on other boards of directors, with the approval of the Board of Directors of the Company (the “Board”), or engage in religious, charitable or other activities as long as such services and activities are approved by the Board and do not materially interfere with the Executive’s performance of her duties to the Company as provided in this Agreement.
		

		
			 
		

		
			2.        Compensation  and Related  Matters.
		

		
			 
		

		
			(a)        Base Salary.  During the Term, the Executive’s annual base salary shall be $355,000.  The Executive’s base salary shall be re-determined annually by the Board or the Compensation Committee of the Board and shall be subject to increase but not decrease while Executive is serving in the Chief Scientific Officer role.  The annual base salary in effect at any given time is referred to herein as “Base Salary.” The Base Salary shall be payable in a manner that is consistent with the Company’s usual payroll practices for senior executives.
		

		
			 
		

		
			(b)        Sign On Bonus.  Executive shall receive a one-time sign on bonus of $150,000 (the “Sign On Bonus”).  This payment shall be subject to legally required tax withholdings.  Executive agrees that if she terminates her employment within 12 months of the Start Date, for any reason, and regardless of whether Executive has Good Reason (as defined in this Agreement) to terminate her employment, Executive shall repay the entire Sign On Bonus in accordance with the Company’s policies then in effect concerning such bonuses.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			(c)        Equity.  In connection with the commencement of the Executive’s employment, Executive shall be granted an option to purchase 110,000 shares of the Company’s common stock (the “Option”).  The date of the grant and the exercise price shall be determined by using the closing price on the Start Date (the “Vesting Commencement Date”).  The Option award shall be subject to the terms and conditions of the Company’s then-current stock option plan and form of stock option agreement.  The Options shall vest as follows: 25 percent of the shares shall vest and become exercisable on the first anniversary of the Vesting Commencement Date; thereafter, the remaining 75 percent of the shares shall vest and become exercisable in 36 equal monthly installments at the end of each month following the anniversary of the Vesting Commencement Date.  Vesting shall be contingent upon Executive’s continued full-time employment with the Company.
		

		
			 
		

		
			(d)        Incentive Compensation.  During the Term, the Executive shall be eligible to receive cash incentive compensation as determined by the Board or the Compensation Committee of the Board from time to time. Executive’s target annual incentive compensation shall be 35 percent of her Base Salary (the “Target Incentive Compensation”).   The Board shall weigh its bonus determination as follows: 75 percent on Company performance and 25 percent on Executive’s individual performance.  To earn incentive compensation, the Executive must be employed by the Company on the day such incentive compensation is paid.  Due to the timing of the Start Date within the calendar year, for the year 2016 the Executive shall not be eligible to receive pro-rated incentive compensation.
		

		
			 
		

		
			(e)        Expenses.  The Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by her during the Term in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company for its senior executive officers.
		

		
			 
		

		
			(f)        Other Benefits.  During the Term, the Executive shall be eligible to participate in or receive benefits under the Company’s employee benefit plans in effect from time to time, subject to the terms of such plans.
		

		
			 
		

		
			(g)        Vacations.  During the Term, the Executive shall be entitled to accrue paid vacation in accordance with the Company’s applicable policy.
		

		
			 
		

		
			3.        Termination.  During the Term, the Executive’s employment hereunder may be terminated without any breach of this Agreement under the following circumstances:
		

		
			 
		

		
			(a)        Death.  The Executive’s employment hereunder shall terminate upon her death.
		

		
			 
		

		
			(b)        Disability.  The Company may terminate the Executive’s employment if she is disabled and unable to perform the essential functions of the Executive’s then existing position or positions under this Agreement with or without reasonable accommodation for a period of 180 days (which need not be consecutive) in any 12-month period.  If any question shall arise as to whether during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive’s then-existing position or positions with or without reasonable accommodation, the Executive may, and at the request of the Company 
		

		
			
		

		
			

		 

		

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			shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue.  The Executive shall cooperate with any reasonable request of the physician in connection with such certification.  If such question shall arise and the Executive shall fail to submit such certification, the Company’s determination of such issue shall be binding on the Executive.  Nothing in this Section 3(b) shall be construed to waive the Executive’s rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §260 l et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.
		

		
			 
		

		
			(c)        Termination by Company for Cause.  The Company may terminate the Executive’s employment hereunder for Cause.  For purposes of this Agreement, “Cause” shall mean:  (i) conduct by the Executive constituting a material act of misconduct in connection with the performance of her duties, including, without limitation, misappropriation of funds or property of the Company or any of its subsidiaries or affiliates other than the occasional, customary and de minimis use of Company property for personal purposes; (ii) the commission by the Executive of any felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud, or any conduct by the Executive that would reasonably be expected to result in material injury or reputational harm to the Company or any of its subsidiaries and affiliates if she were retained in her position; (iii) continued non-performance by the Executive of her duties hereunder (other than by reason of the Executive’s physical or mental illness, incapacity or disability) which has continued for more than 30 days following written notice of such non-performance from the CEO; (iv) a material breach by the Executive of any of the provisions contained in Section 7 of this Agreement; (v) a material violation by the Executive of the Company’s written employment policies; or (vi) failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant to such investigation or the inducement of others to fail to cooperate or to produce documents or other materials in connection with such investigation.
		

		
			 
		

		
			(d)        Termination  by the Company Without  Cause.  The Company may terminate the Executive’s employment at any time without Cause.  Any termination by the Company of the Executive’s employment under this Agreement which does not constitute a termination for Cause under Section 3(c) and does not result from the death or disability of the Executive under Section 3(a) or (b) shall be deemed a termination by the Company without Cause.
		

		
			 
		

		
			(e)        Termination by the Executive. The Executive may terminate her employment hereunder at any time for any reason, including but not limited to Good Reason. For purposes of this Agreement, “Good Reason” shall mean that the Executive has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events without the Executive’s express written consent:  (i) a material diminution in the Executive’s responsibilities, authority or duties; (ii) a material diminution in the Executive’s Base Salary and/or Target Incentive Compensation (unless such diminution is in 
		

		
			
		

		
			

		 

		

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			connection with a proportional reduction in compensation to all or substantially all of the Company’s employees); (iii) a material change of more than 50 miles in the geographic location at which the Executive provides services to the Company; or (iv) the material breach of this Agreement by the Company. “Good Reason Process” shall mean that (i) the Executive reasonably determines in good faith that a “Good Reason” condition has occurred; (ii) the Executive notifies the Company in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; (iii) the Executive cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the “Cure Period”) to remedy  the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) the Executive terminates her employment within 60 days after the end of the Cure Period.  If the Company cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.
		

		
			 
		

		
			(f)        Notice of Termination.  Except for termination as specified in Section 3(a), any termination of the Executive’s employment by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.
		

		
			 
		

		
			(g)        Date of Termination.  “Date of Termination” shall mean:  (i) if the Executive’s employment is terminated by her death, the date of her death; (ii) if the Executive’s employment is terminated on account of disability under Section 3(b) or by the Company for Cause under Section 3(c), the date on which Notice of Termination is given; (iii) if the Executive’s employment is terminated by the Company under Section 3(d), the date on which a Notice of Termination is given; (iv) if the Executive’s employment is terminated by the Executive under Section 3(e) without Good Reason, 30 days after the date on which a Notice of Termination is given; and (v) if the Executive’s employment is terminated by the Executive under Section 3(e) with Good Reason, the date on which a Notice of Termination is given after the end of the Cure Period.  Notwithstanding the foregoing, in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement.
		

		
			 
		

		
			4.        Compensation Upon  Termination.
		

		
			 
		

		
			(a)        Termination Generally.  If the Executive’s employment with the Company is terminated for any reason, the Company shall pay or provide to the Executive (or to her authorized representative or estate) (i) any Base Salary earned through the Date of Termination, unpaid expense reimbursements (subject to, and in accordance with, Section 2(e) of this Agreement) and unused vacation that accrued through the Date of Termination on or before the time required by law but in no event more than 30 days after the Executive’s Date of Termination; and (ii) any vested benefits the Executive may have under any employee benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans (collectively, the “Accrued Benefit”).
		

		
			 
		

		
			
		

		
			

		 

		

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			(b)        Termination by the Company Without Cause or by the Executive with Good Reason.  During the Term, if the Executive’s employment is terminated by the Company without Cause as provided in Section 3(d), or the Executive terminates her employment for Good Reason as provided in Section 3(e), then the Company shall pay the Executive her Accrued Benefit.  In addition, subject to the Executive signing a separation agreement containing, among other provisions, a general release of claims in favor of the Company and related persons and entities, confidentiality, return of property and non-disparagement, in a form and manner satisfactory to the Company (the “Separation Agreement and Release”) and the Separation Agreement and Release becoming irrevocable, all within 60 days after the Date of Termination:
		

		
			 
		

		
			(i)        the Company shall pay the Executive an amount equal to one (1) times the Executive’s Base Salary (the “Severance Amount “); and
		

		
			 
		

		
			(ii)        if the Executive was participating in the Company’s group health plan immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay to the Executive a monthly cash payment for twelve (12) months or the Executive’s COBRA health continuation period, whichever ends earlier, in an amount equal to the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company.
		

		
			 
		

		
			The amounts payable under this Section 4(b) shall be paid out in substantially equal installments in accordance with the Company’s payroll practice over twelve (12) months commencing within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section l.409A-2(b)(2).
		

		
			 
		

		
			The receipt of any severance payments or benefits pursuant to Section 4 will be subject to the Executive not violating the Restrictive Covenant Agreement (as defined below), the terms of which are hereby incorporated by reference.  In the event the Executive breaches the Restrictive Covenant Agreement, in addition to all other legal and equitable remedies, the Company shall have the right to terminate or suspend all continuing payments and benefits to which the Executive may otherwise be entitled pursuant to Section 4 without affecting the Executive’s release or the Executive’s obligations under the Separation Agreement and Release
		

		
			 
		

		
			5.        Sale Event Payment.  These provisions are intended to assure and encourage in advance the Executive’s continued attention and dedication  to her assigned duties and her objectivity during the pendency and after the occurrence of any Sale Event (as defined below).  These provisions shall apply in lieu of, and expressly supersede, the provisions of Section 4(b) regarding severance pay and benefits upon a termination of employment, if the Date of Termination occurs within twelve (12) months after the occurrence of the first event 
		

		
			
		

		
			

		 

		

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			constituting a Sale Event.  These provisions shall terminate and be of no further force or effect beginning twelve (12) months after the occurrence of a Sale Event.
		

		
			 
		

		
			(a)        Sale Event.  During the Term, if within twelve (12) months after a Sale Event, the Executive’s employment is terminated by the Company without Cause as provided in Section 3(d) or the Executive terminates her employment for Good Reason as provided in Section 3(e), then, subject to the signing of the Separation Agreement and Release by the Executive and the Separation Agreement and Release becoming irrevocable, all within 60 days after the Date of Termination,
		

		
			 
		

		
			(i)        the Company shall pay the Executive a lump sum in cash in an amount equal to the sum of (A) one (1) times the Executive’s current Base Salary (or the Executive’s Base Salary in effect immediately prior to the Sale Event, if higher) plus (B) one (1) times the Executive’s Target Incentive Compensation; and
		

		
			 
		

		
			(ii)        if the Executive was participating in the Company’s group health plan immediately prior to the Date of Termination and elects COBRA health continuation, then the Company shall pay to the Executive a monthly cash payment for twelve (12) months or the Executive’s COBRA health continuation period, whichever ends earlier, in an amount equal to the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company; and
		

		
			 
		

		
			(iii)        all time-based stock options and other time-based stock-based awards held by the Executive shall accelerate and become fully exercisable or nonforfeitable as of the Date of Termination; provided that, if any stock options or other stock-based awards held by the Executive prior to the Start Date have accelerated vesting terms that are more favorable to the Executive than those set forth in this Section 5(a)(iii), the vesting terms of those stock options or other stock-based awards shall apply as opposed to the accelerated vesting terms set forth in this Section 5(a)(iii) solely with respect to such awards.
		

		
			 
		

		
			The amounts payable under Section 5(a)(i) and (ii) shall be paid or commence to be paid within 60 days after the Date of Termination; provided however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such payment shall be paid or commence to be paid in the second calendar year by the last day of such 60-day period.
		

		
			 
		

		
			(b)        Additional Limitation.
		

		
			 
		

		
			(i)        Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with  Section 2800 of the Internal Revenue Code of 1986, as amended (the “Code”) and the applicable regulations thereunder (the “Aggregate Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, then the 
		

		
			
		

		
			

		 

		

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			Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the Aggregate Payments shall be $1.00 less than the amount at which the Executive becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in the Executive receiving a higher After Tax Amount (as defined below) than the Executive would receive if the Aggregate Payments were not subject to such reduction.  In such event, the Aggregate Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 2800 of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity­based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.2800-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.2800-1, Q&A- 24(b) or (c).
		

		
			 
		

		
			(ii)        For purposes of this Section S(b), the “After Tax Amount” means the amount of the Aggregate Payments less all federal, state, and local income, excise and employment taxes imposed on the Executive as a result of the Executive’s receipt of the Aggregate Payments.  For purposes of determining the After Tax Amount, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.
		

		
			 
		

		
			(iii)        The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to Section 5(b)(i) shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Company or the Executive.  Any determination by the Accounting Firm shall be binding upon the Company and the Executive.
		

		
			 
		

		
			(c)        Sale Event Definition.  For purposes of this Section 5, “Sale Event” shall mean (i) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (ii) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting power and outstanding stock immediately prior to such transaction do not own a majority of the outstanding voting power and outstanding stock or other equity interests of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion of such transaction, (iii) the sale of all of the stock of the Company to an unrelated person, entity or group thereof acting in concert, or (iv) any other transaction in which the owners of the Company’s outstanding voting power immediately prior to such transaction do not own at least a majority of the outstanding 
		

		
			
		

		
			

		 

		

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			voting power of the Company or any successor entity immediately upon completion of the transaction other than as a result of the acquisition of securities directly from the Company.
		

		
			 
		

		
			Notwithstanding the foregoing, a “Sale Event” shall not be deemed to have occurred for purposes of the foregoing clauses (ii) and (iv) solely as the result of an acquisition of securities by the Company which, by reducing the number of shares of voting securities outstanding, increases the proportionate number of voting securities beneficially owned by any person to 50 percent or more of the combined voting power of all of the then outstanding voting securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of voting securities (other than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns 50 percent or more of the combined voting power of all of the then outstanding voting securities, then a “Sale Event” shall be deemed to have occurred for purposes of the foregoing clauses (ii) and (iv).
		

		
			 
		

		
			6.        Section 409A.
		

		
			 
		

		
			(a)        Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A of the Code, the Company determines that the Executive  is a “specified  employee” within  the meaning  of Section 409A(a)(2)(B)(i) of the Code, then  to the extent any payment or benefit that the Executive becomes entitled to under this Agreement  on account of the Executive’s separation from service would  be considered  deferred  compensation  otherwise subject to the 20 percent  additional  tax imposed  pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided  until the date that  is the earlier of (A) six months and one day after the Executive’s separation from  service, or (B) the Executive’s death.   If any such delayed  cash payment  is otherwise payable  on an installment  basis, the first payment  shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period  but for the application of this provision,  and the balance of the installments  shall be payable in accordance with  their original  schedule.
		

		
			 
		

		
			(b)        All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by the Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses).  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
		

		
			 
		

		
			(c)        To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of 
		

		
			
		

		
			

		 

		

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			employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section
		

		
			1.409A- l(h).
		

		
			 
		

		
			(d)        The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section J.409A-2(b)(2).  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.
		

		
			 
		

		
			(e)        The Company makes no representation or warranty and shall have no
		

		
			liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred  compensation  subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such  Section.
		

		
			 
		

		
			7.        Restrictive Covenants.  The Executive agrees to the terms of the Non-Solicitation, Confidentiality and Assignment Agreement, dated as of the Start Date, by and between the Company and the Executive (the “Restrictive Covenant Agreement”), the terms of which are hereby incorporated by reference as material terms of this Agreement.
		

		
			 
		

		
			8.        Arbitration  of  Disputes.  Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise arising out of the Executive’s employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices of the American Arbitration Association (“AAA”) in Boston, Massachusetts in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators.  In the event that any person or entity other than the Executive or the Company may be a party with regard to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  This Section 8 shall be specifically enforceable. Notwithstanding the foregoing, this Section 8 shall not preclude either party from pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 8.
		

		
			 
		

		
			9.        Consent to Jurisdiction.  To the extent that any court action is permitted consistent with or to enforce Section 8 of this Agreement, the parties hereby consent to the jurisdiction of 
		

		
			
		

		
			

		 

		

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			the Superior Court of the Commonwealth of Massachusetts and the United States District Court for the District of Massachusetts. Accordingly, with respect to any such court action, the Executive (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.
		

		
			 
		

		
			10.        Integration. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all other prior agreements between the parties concerning such subject matter; provided that the Restrictive Covenant Agreement is expressly preserved and incorporated by reference herein.
		

		
			 
		

		
			11.        Withholding.  All payments made by the Company to the Executive under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law.
		

		
			 
		

		
			12.        Successor to the Executive.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators, heirs, distributees, devisees and legatees.  In the event of the Executive’s death after her termination of employment but prior to the completion by the Company of all payments due to her under this Agreement, the Company shall continue such payments to the Executive’s beneficiary  designated in writing to the Company prior to her death (or to her estate, if the Executive fails to make such designation).
		

		
			 
		

		
			13.        Enforceability.   If any portion or provision  of this Agreement  (including, without limitation, any portion or provision  of any section of this Agreement)  shall to any extent be declared  illegal  or unenforceable  by a court of competent jurisdiction,  then the remainder of this Agreement, or the application of such portion  or provision  in circumstances  other than those as to which it is so declared  illegal or unenforceable,  shall not be affected thereby, and each portion and provision  of this Agreement  shall be valid and enforceable to the fullest extent permitted  by law.
		

		
			 
		

		
			14.        Survival.  The provisions of this Agreement shall survive the termination of this Agreement and/or the termination of the Executive’s employment to the extent necessary to effectuate the terms contained herein.
		

		
			 
		

		
			15.        Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.
		

		
			 
		

		
			16.        Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in 
		

		
			
		

		
			

		 

		

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			writing with the Company or, in the case of the Company, at its main offices, attention of the Board.
		

		
			 
		

		
			17.        Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company.
		

		
			 
		

		
			18.        Governing Law.  This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles of such Commonwealth.  With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the First Circuit.
		

		
			 
		

		
			19.        Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.
		

		
			 
		

		
			20.        Successor to the Company.  The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no succession had taken place.  Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a material breach of this Agreement.
		

		
			 
		

		
			[Signature page follows]
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year first above written.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						BLUEPRINT MEDICINES CORPORATION

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jeffrey Albers

				
	
					
						 

					
					
						Name:

					
					
						Jeffrey Albers

				
	
					
						 

					
					
						Title:

					
					
						President and Chief Executive Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Marion Dorsch

				
	
					
						 

					
					
						Marion Dorsch

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