Document:

Exhibit

Exhibit 10.1
SEPARATION AGREEMENT AND RELEASE
This Separation Agreement and Release (“Agreement”) is made by and between Mark Litton (“Employee”) and Alpine Immune Sciences, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).
WHEREAS, Employee was employed at-will by the Company pursuant to that certain Executive Employment Agreement between the Company and Employee dated August 6, 2018 (the “Employment Agreement”);
WHEREAS, Employee signed an At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement with the Company on August 6, 2018 (the “Confidentiality Agreement”);
WHEREAS, on August 6, 2018, Employee and the Company entered into a Participation Agreement (the “Participation Agreement”) under the Company’s Change of Control and Severance Policy (the “Severance Policy”);
WHEREAS, the Company and Employee have entered into (i) two Stock Option Agreements, dated as of August 6, 2018 and February 6, 2019, granting Employee the option to purchase shares of the Company’s common stock subject to the terms and conditions of the Stock Option Agreements and the Company’s 2018 Equity Incentive Plan and (ii) the Stand-Alone Inducement Stock Option Grant, dated as of August 6, 2018, granting Employee the option to purchase shares of the Company’s common stock subject to the terms and conditions of  the Stand-Alone Inducement Stock Option Grant (collectively the “Stock Agreements”);
WHEREAS, Employee separated from employment with the Company effective April 16, 2019 (the “Separation Date”); 

WHEREAS, Employee’s separation from employment with the Company constitutes a “Non-COC Qualified Termination” under the Severance Policy; 

WHEREAS, this Agreement is the “Release” described in the Severance Policy; and

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Company;
NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows:
COVENANTS

1.Consideration.  In consideration of Employee’s execution of this Agreement and Employee’s fulfillment of all of its terms and conditions, and provided that Employee does not revoke the Agreement under Section 6 below, the Company agrees as follows:

a.Separation Payment.  The Company agrees to pay Employee a total of Three Hundred Eleven Thousand Two Hundred and Fifty Dollars and Zero Cents ($311,250.00), at the rate of Thirty-Four Thousand Five Hundred Eighty-Three Dollars and Thirty-Three Cents ($34,583.33) per month, less applicable withholdings, for nine (9) months following the Separation Date in accordance with the Company’s regular payroll procedures; provided, however, that all payments shall be further subject to the timing and other provisions of the paragraphs in the Severance Policy bearing the headings “Release,” “Section 409A,” “Reduction of Severance Benefits,” and “Determination of Excise Tax Liability” (together, the “Surviving Sections”).

b.COBRA Reimbursement.  Provided Employee timely elects and pays for continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) within the time period prescribed pursuant to COBRA, the Company shall reimburse Employee for the payments Employee makes for COBRA coverage for Employee and Employee’s eligible dependents that were covered under the Company’s health care plans immediately prior to the Separation Date, for a period of up to the first nine (9) months of such coverage, or, if earlier, until the sooner of (i) Employee’s securing of health insurance coverage through another employer or (ii) Employee ceasing to be eligible for coverage under COBRA.  COBRA reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee submits documentation to the Company substantiating Employee’s payments for COBRA coverage. Notwithstanding the preceding, if the Company determines in its sole discretion that it cannot provide COBRA reimbursement benefits without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will instead provide the Employee nine (9) taxable monthly payments each in an amount equal to the monthly COBRA premium that the Employee would be required to pay to continue the Employee’s group health coverage in effect on the date of termination of employment (which amount will be based on the premium for the first month of COBRA coverage), regardless of whether the Employee elects COBRA continuation coverage, beginning on the Company’s first regular payroll date that occurs on or after the 60th day following the Separation Date and continuing monthly thereafter.  Notwithstanding any of the foregoing, all reimbursements or payments under this paragraph shall be subject to the timing and other provisions of the Surviving Sections.

c.General.  Employee acknowledges that (i) without this Agreement, Employee is otherwise not entitled to the consideration listed in this Section 1, (ii) the consideration provided in this Section 1 fully satisfies all of the Company’s obligations to Employee under the Participation Agreement and the Severance Policy, and (iii) the considered provided in this Section 1 fully satisfies any other obligation that the Company would have had to pay Employee severance under the Employment Agreement or any other plan or agreement.

2.Stock.  The Parties agree that for purposes of determining the number of shares of the Company’s common stock that Employee is entitled to purchase from the Company, pursuant to the exercise of outstanding options, Employee will be considered to have vested only up to the Separation Date.  Employee acknowledges that as of the Separation Date, Employee will have vested in 25,000 options and no more pursuant to the Stock Option Agreement dated as of August 6, 2018.  The exercise of Employee’s vested options and shares shall continue to be governed by the terms and conditions of the Company’s Stock Agreements.
3.Benefits.  Employee’s health insurance benefits shall cease on April 30, 2019, subject to Employee’s right to continue Employee’s health insurance under COBRA.  Employee’s participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options, and the accrual of bonuses, vacation, and paid time off, ceased as of the Separation Date.
4.Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Company and its agents have paid or provided all salary, wages, bonuses, accrued vacation/paid time off, notice periods, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee.
5.Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on Employee’s own behalf and on behalf of Employee’s respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the date Employee signs this Agreement, including, without limitation:
a.    any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship; 
b.    any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;
c.    any and all claims under the law of any jurisdiction, including, but not limited to, wrongful discharge of employment; constructive discharge from employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;
d.    any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act, except as prohibited by law; the Uniformed Services Employment and Reemployment Rights Act; the Washington State Law Against Discrimination, as amended (RCW 49.60.010 et seq.); the Washington equal pay law, as amended (RCW 49.12.175); the Washington sex discrimination law (RCW 49.12.200); the Washington age discrimination law (RCW 49.44.090); Washington whistleblower protection laws (RCW 49.60.210, 49.12.005, and 49.12.130); the Washington genetic testing protection law (RCW 49.44.180); the Washington Family Care Act (RCW 49.12.265 to 49.12.295); the Washington Minimum Wage Act (RCW 49.46.005 to 49.46.920); Washington wage, hour, and working conditions laws (RCW 49.12.005 to 49.12.020, 49.12.041 to 49.12.050, 49.12.091, 49.12.101, 49.12.105, 49.12.110, 49.12.121, 49.12.130 to 49.12.150, 49.12.170, 49.12.175, 49.12.185, 49.12.187, 49.12.450); and Washington wage payment laws (RCW 49.48.010 to 49.48.190);
e.    any and all claims for violation of the federal or any state constitution;
f.    any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;
g.    any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and
h.    any and all claims for attorneys’ fees and costs.
Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law, including any Protected Activity (as defined below). Any and all disputed wage claims that are released herein shall be subject to binding arbitration in accordance with Section 17, except as required by applicable law. This release does not extend to any right Employee may have to unemployment compensation benefits or workers’ compensation benefits. 

6.Acknowledgment of Waiver of Claims under ADEA.  Employee understands and acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Employee understands and agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the date Employee signs this Agreement.  Employee understands and acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled.  Employee further understands and acknowledges that Employee has been advised by this writing that: (a) Employee should consult with an attorney prior to executing this Agreement; (b) Employee has twenty-one (21) days within which to consider this Agreement; (c) Employee has seven (7) days following Employee’s execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that Employee has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  Employee acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Agreement on the Company’s behalf that is received prior to the Effective Date.  The Parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period.
7.Unknown Claims.  Employee acknowledges that Employee has been advised to consult with legal counsel and that Employee is familiar with the principle that a general release does not extend to claims that the releaser does not know or suspect to exist in Employee’s favor at the time of executing the release, which, if known by Employee, must have materially affected Employee’s settlement with the Releasees.  Employee, being aware of said principle, agrees to expressly waive any rights Employee may have to that effect, as well as under any other statute or common law principles of similar effect.
8.No Pending or Future Lawsuits.  Employee represents that Employee has no lawsuits, claims, or actions pending in Employee’s name, or on behalf of any other person or entity, against the Company or any of the other Releasees.  Employee also represents that Employee does not intend to bring any claims on Employee’s own behalf or on behalf of any other person or entity against the Company or any of the other Releasees.
9.Application for Employment.  Employee understands and agrees that, as a condition of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Company.  Employee further agrees not to apply for employment with the Company and not otherwise pursue an independent contractor or vendor relationship with the Company.
10.Confidentiality.  Subject to Section 20 below governing Protected Activity, Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”).  Except as required by law, Employee may disclose Separation Information only to Employee’s immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee’s counsel, and Employee’s accountant and any professional tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties.  Employee agrees that Employee will not publicize, directly or indirectly, any Separation Information.
11.Trade Secrets and Confidential Information/Company Property.  Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information, and all restrictive covenants.  Employee acknowledges that the non-disclosure obligations in the Confidentiality Agreement do not restrict Employee from disclosing work-related sexual harassment or sexual assault to the extent such disclosures are protected under chapter 117, Washington Laws 2018. Employee also agrees that the above reaffirmation and agreement with the Confidentiality Agreement shall constitute a new and separately enforceable agreement to abide by the terms of the Confidentiality Agreement, entered and effective as of the Effective Date.  Employee specifically acknowledges and agrees that any violation of the restrictive covenants in the Confidentiality Agreement shall constitute a material breach of this Agreement.  Employee’s signature below constitutes Employee’s certification under penalty of perjury that Employee has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with Employee’s employment with the Company, or otherwise belonging to the Company, including, but not limited to, all passwords to any software or other programs or data that Employee used in performing services for the Company.
12.No Cooperation.  Subject to Section 20 below governing Protected Activity, Employee agrees that Employee will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement.  Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order.  If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that Employee cannot provide counsel or assistance.
13.Nondisparagement.  Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.  Employee shall direct any inquiries by potential future employers to the Company’s human resources department, which shall use its best efforts to provide only the Employee’s last position and dates of employment.
14.Breach.  In addition to the rights provided in the “Attorneys’ Fees” section below, Employee acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and to obtain damages, except as provided by law, provided, however, that the Company shall not recover One Hundred Dollars ($100.00) of the consideration already paid pursuant to this Agreement, and such amount shall serve as full and complete consideration for the promises and obligations assumed by Employee under this Agreement and the Confidentiality Agreement.
15.No Admission of Liability.  Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee.  No action taken by the Company hereto, either previously or in connection with this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party.
16.Costs.  The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation of this Agreement.
17.ARBITRATION.  THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, EMPLOYEE’S EMPLOYMENT WITH THE COMPANY OR THE TERMS THEREOF, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO BINDING ARBITRATION UNDER THE FEDERAL ARBITRATION ACT (THE “FAA”).  THE FAA’S SUBSTANTIVE AND PROCEDURAL RULES SHALL GOVERN AND APPLY TO THIS ARBITRATION AGREEMENT WITH FULL FORCE AND EFFECT, AND ANY STATE COURT OF COMPETENT JURISDICTION MAY STAY PROCEEDINGS PENDING ARBITRATION OR COMPEL ARBITRATION IN THE SAME MANNER AS A FEDERAL COURT UNDER THE FAA.  EMPLOYEE AGREES THAT, TO THE FULLEST EXTENT PERMITTED BY LAW, EMPLOYEE MAY BRING ANY SUCH ARBITRATION PROCEEDING ONLY IN EMPLOYEE’S INDIVIDUAL CAPACITY.  ANY ARBITRATION WILL OCCUR IN KING COUNTY, WASHINGTON, BEFORE JAMS, PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS RULES”), EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 17.  THE PARTIES AGREE THAT THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR ADJUDICATION, AND MOTIONS TO DISMISS AND DEMURRERS, APPLYING THE STANDARDS SET FORTH UNDER THE WASHINGTON CIVIL RULES. THE PARTIES AGREE THAT THE ARBITRATOR SHALL ISSUE A WRITTEN DECISION ON THE MERITS. THE PARTIES ALSO AGREE THAT THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER APPLICABLE LAW, AND THAT THE ARBITRATOR MAY AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, WHERE PERMITTED BY APPLICABLE LAW.  THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES.  THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL WASHINGTON LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION.  THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION.  THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD.  THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW.  THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY.  NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE.  SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS PARAGRAPH CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN.
18.Tax Consequences.  The Company makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on Employee’s behalf under the terms of this Agreement.  Employee agrees and understands that Employee is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon.  Employee further agrees to indemnify and hold the Releasees harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of (a) Employee’s failure to pay or delayed payment of, federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs.
19.Authority.  The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.  Employee represents and warrants that Employee has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to bind them to the terms and conditions of this Agreement.  Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.
20.Protected Activity Not Prohibited.  Employee understands that nothing in this Agreement shall in any way limit or prohibit Employee from engaging in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Employee understands that in connection with such Protected Activity, Employee is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information under the Confidentiality Agreement to any parties other than the Government Agencies. Employee further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications or attorney work product. Any language in the Confidentiality Agreement regarding Employee’s right to engage in Protected Activity that conflicts with, or is contrary to, this paragraph is superseded by this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Employee is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.  Finally, nothing in this Agreement constitutes a waiver of any rights Employee may have under the Sarbanes-Oxley Act or Section 7 of the National Labor Relations Act.
21.No Representations.  Employee represents that Employee has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement.  Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement.
22.Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.
23.Attorneys’ Fees.  Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.
24.Entire Agreement.  This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings between Employee and the Company concerning the subject matter of this Agreement and Employee’s relationship with the Company, including the Employment Agreement, the Participation Agreement, and the Severance Policy, except for the Surviving Sections.  Notwithstanding the foregoing, the respective rights and obligations of Employee and Company prescribed in the following agreements shall remain in full force and effect and survive Employee’s termination from employment with the Company: (a) the Confidentiality Agreement, (b) the Stock Agreements, and (c) that certain Indemnification Agreement by and between Employee and the Company dated August 6, 2018. 
25.No Oral Modification.  This Agreement may only be amended in a writing signed by Employee and the Company’s Chief Executive Officer.
26.Governing Law.  This Agreement shall be governed by the laws of the State of Washington, without regard for choice-of-law provisions.  Employee consents to personal and exclusive jurisdiction and venue in the State of Washington.
27.Effective Date.  Employee understands that this Agreement shall be null and void if not executed by Employee within the twenty-one (21) day period set forth under Section 6 above.  Each Party has seven (7) days after that Party signs this Agreement to revoke it.  This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”).
28.Counterparts.  This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.
29.Voluntary Execution of Agreement.  Employee understands and agrees that Employee executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee’s claims against the Company and any of the other Releasees.  Employee acknowledges that:
(a)    Employee has read this Agreement;
		
	(b)
	Employee has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Employee’s own choice or has elected not to retain legal counsel;

		
	(c)
	Employee understands the terms and consequences of this Agreement and of the releases it contains; and

		
	(d)
	Employee is fully aware of the legal and binding effect of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.
MARK LITTON, an individual
Dated:  4/24/2019    /s/ Mark Litton    
Mark Litton
ALPINE IMMUNE SCIENCES, INC.
Dated:  4/24/2019    By: /s/ Mitchell H. Gold    
Mitchell H. Gold
Chief Executive Officer

1 of 9Exhibit

Exhibit 10.3

PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (this “Agreement”) is made as of the 28th day of June, 2019 (the “Effective Date”) by and among MANNING & NAPIER GROUP, LLC, a Delaware limited liability company (“Seller”), MANNING PARTNERS, LLC, a New York limited liability company (“Buyer”), and PERSPECTIVE PARTNERS, LLC, a New York limited liability company (“PPI”).
WHEREAS, Seller is the registered and beneficial owner of one hundred percent (100%) of the issued and outstanding equity interests of PPI (the “Securities”); and 
WHEREAS, Buyer desires to acquire from Seller, and Seller desires to sell to Buyer, all of the Securities upon the terms and conditions set forth in this Agreement;
NOW, THEREFORE, for good and valuable consideration, the parties agree as follows:
Article I. 
PURCHASE AND SALE
Section 1.1    Purchase and Sale.  At Closing (defined in Section 5.1), Buyer will purchase from Seller, and Seller will sell, transfer, assign, convey and deliver to Buyer, all of the Securities, free and clear of all liens, charges, encumbrances or third party rights, except for restrictions on transfer under the Securities Act of 1933, as amended, and state securities laws.
Section 1.2    Determination and Payment of Purchase Price.
(a)    Within thirty (30) days after the Closing, Seller will provide to Buyer a written statement that is computed by Seller in accordance with its past practices as set forth on Schedule 1.2(a) (the “Expense Statement”) detailing (i) the aggregate expenses or other amounts that PPI incurred or was allocated between September 1, 2018 and the Closing; (ii) the aggregate expenses or other amounts related to the DIAL software solution (“DIAL”), formerly owned by Manning & Napier Information Services, LLC (“MNIS”) that were incurred or allocated  by Seller or any of its affiliates, including Manning & Napier Advisors, LLC (“MNA”) between September 1, 2018 and the transfer contemplated by Section 5.2(a)(viii); and (iii) the amount of unamortized prepaid expenses of PPI as well as those related to DIAL as of the Closing (together with Sections 1.2(a)(i) and (ii), the “Expense Amount”).
(b)    Buyer will (i) within five (5) business days after Seller delivers the Expense Statement to Buyer, pay Seller in immediately available funds the amount equal to the Expense Amount, and (ii) thereafter, from time to time, pay (or cause PPI to pay) Seller in immediately available funds the Revenue Payments (defined in Section 1.3(a)) in accordance with Section 1.3 (Sections 1.2(b)(i) and (ii), collectively, the “Purchase Price”).
(c)    Any reference in this Agreement to the business, assets or liabilities, contracts, rights or obligations, or employees of PPI (including in the representations and warranties set forth in Article II), whether or not specifically stated therein, shall be deemed to 

include the business of MNIS, and the assets and liabilities, contracts, rights and obligations, and employees thereof, as previously conducted by MNIS.
Section 1.3    Additional Payments.
(a)    Amount.  Following the Closing Date, Buyer will pay to Seller three percent (3%) of the total revenue of PPI less any fees owed to third parties unaffiliated with PPI or William Manning (the “Net Revenue”) of PPI (“Revenue Payments”), which Net Revenue will be recognized in accordance with generally accepted accounting principles and consistent with the manner that PPI, Seller or its affiliates recognized such revenue prior to Closing, attributable to the proprietary technology of PPI, including but not limited to DIAL, as of September 1, 2018 (the “Subject Technology”). Notwithstanding the foregoing, Buyer will receive a credit of $100,000 against the Revenue Payments otherwise due hereunder for each of calendar years 2019, 2020, 2021 and 2022 (the “Credit”), representing an estimate of the prospective opportunity cost to PPI of certain exclusivity rights previously granted by MNIS to, and the prospective loss on certain commitments previously entered into by MNIS with, a third party.  If an annual Credit is not fully used in any applicable year, the unused portion of the Credit will carry over to the following years, but in no event shall any Credit be applied after December 31, 2022.  If, after the Closing, all or substantially all of the assets of PPI are transferred, sold, leased or exclusively licensed, or if a majority of the voting power of PPI is directly, indirectly or beneficially (including through a sale of the equity of Buyer) sold or transferred to a third party (each a “Sale”), Buyer will require the entity surviving the Sale or which acquired the rights in such assets to continue to pay the Revenue Payments in accordance with this Agreement and assume the obligations of PPI and Buyer hereunder.  For the avoidance of doubt, for purposes of calculating any Revenue Payments due hereunder, there shall be excluded from the total net revenue of PPI the revenues attributable to any new proprietary technology developed by PPI independently of the Subject Technology after September 1, 2018.  Any disagreement between Seller and Buyer regarding such allocation shall be resolved by binding arbitration pursuant to Section 1.3(e).
(b)    Determination of Amount.  As soon as practicable (but not later than sixty (60) calendar days after the end of each calendar year, Buyer will (or will cause PPI to) prepare and deliver to Seller a statement (each a “Revenue Statement”) setting forth in reasonable detail Buyer’s gross revenue, itemized by product, and Buyer’s calculation of the total Net Revenue of PPI for the prior twelve (12) month period, the Revenue Payment for such twelve (12) month period and an aggregate reconciliation of the Revenue Payments against the Credit.
(c)    Review and Audit Rights.  During reasonable business hours and no more than once per year, Seller will be permitted to review Buyer’s working papers related to the preparation of the Revenue Statements and will be provided with reasonable access to Buyer’s and PPI’s facilities and personnel to verify the completeness and accuracy of the same; provided, however, that Seller will pay for the cost of such review unless it is determined by binding arbitration in accordance with Section 1.3(e) that Buyer underreported the Revenue Payments by more than five percent (5%), in which case Buyer will pay such costs.
(d)    Protest Notice.  Whether or not as a result of an audit under Section 1.3(c), Seller may deliver written notice (a “Protest Notice”) to Buyer of any disagreement with the Revenue 

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Statement.  Such Protest Notice will (i) specify in reasonable detail the nature of any disagreement so asserted, and include, if applicable, supporting schedules, analyses, working papers and other documentation and (ii) include Seller’s calculation of the Revenue Payment.  Buyer will have thirty (30) calendar days after Buyer’s receipt of a Protest Notice to dispute the same and, if it fails to dispute the Protest Notice in writing within such time period, then the Protest Notice will be deemed accepted and final and Buyer will make any payment required in connection therewith.
(e)    Resolution.  If Buyer and Seller are unable to resolve any disagreement over a Revenue Statement within thirty (30) calendar days after Buyer timely disputes a Protest Notice in writing, then the dispute will be referred to a panel of three (3) independent arbitrators (the “Independent Arbitrator(s)”) expert in the licensing and other commercial exploitation of technology similar to that of PPI, one of whom shall be selected by Buyer, one of whom shall be selected by Seller, and the third of whom shall be selected by the other two, and at least one of whom shall be an independent accountant, for final arbitration within sixty (60) calendar days after submitting the matter to the Independent Arbitrator(s), which arbitration will be final and binding on Buyer and Seller.  The Independent Arbitrator(s) will act as arbitrator to determine, based solely on the standards set forth in this Agreement and on written presentations by Buyer and Seller, and not by independent review, only those amounts still in dispute.  With respect to each disputed item, the Independent Arbitrator(s)’ determination, if not in accordance with the position of either Buyer or Seller, will not be in excess of the higher, nor less than the lower, of the amounts advocated by Buyer in the Revenue Statement or by Seller in the Protest Notice with respect to each disputed item.  The costs of the Independent Arbitrator(s) will be allocated to and borne by Buyer and Seller based on the inverse of the percentage that the Independent Arbitrator(s)’ determination (before such allocation) bears to the total amount of the total items in dispute (as originally submitted to the Independent Arbitrator(s)).  For example, should the items in dispute total One Thousand Dollars ($1,000), and the Independent Arbitrator(s) award Six Hundred Dollars ($600) in favor of Buyer’s position, sixty percent (60%) of the Independent Arbitrator(s)’ costs would be borne by Seller, and forty percent (40%) of their costs would be borne by Buyer.  Any determination of the Independent Arbitrator(s) pursuant to this Section 1.3(e) may be entered into and enforced in any court of competent jurisdiction.
(f)    Payment.  Within thirty (30) calendar days following the final determination of the amount of any Revenue Payment in accordance with this Section 1.3, Buyer will pay such amount to Seller by wire transfer of immediately available funds to an account designated in writing by Seller.
(g)    Covenants.  In addition to the implied covenants of good faith and fair dealing, Buyer will not, and will cause PPI (or any successor in interest to its business) after Closing to not, take any action or fail to take any action that causes or could reasonably be expected to cause revenue to be diverted away from PPI (or any successor in interest to its business) or that materially delays, or could reasonably be expected to materially delay, PPI from being able to recognize revenue.
ARTICLE II.     
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller represents and warrants to Buyer as follows:

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Section 2.1    Power and Authority.  Each of Seller and PPI has full power and authority to execute, deliver and perform this Agreement and each other agreement, certification or instrument required to be executed and delivered by Seller or PPI at Closing (the “Seller Closing Documents”).  The execution, delivery and performance by Seller and PPI of this Agreement and each other Seller Closing Document has been duly and validly authorized by all necessary action.  
Section 2.2    Approvals.  Except as set forth on Schedule 2.2 (the “Required Approvals”), no consent, approval, waiver, authorization or novation is required to be obtained by Seller or PPI from, and no notice or filing is required to be given by Seller or PPI to, any individual, corporation, partnership, limited liability company, association, trust or any other entity or organization (“Person”) or governmental entity in connection with the execution, delivery and performance by Seller and PPI of this Agreement and any other Seller Closing Document, and the consummation of the transactions contemplated by this Agreement, including the assignment to PPI of the assets and liabilities of MNIS pursuant to Section 5.1(a)(viii) (the “Transaction”).
Section 2.3    Non-Contravention.
(a)    The execution, delivery and performance by Seller and PPI of this Agreement and each Seller Closing Document, and the consummation of the Transaction, do not and will not violate any provision of the limited liability company operating agreement (“LLC Agreement”) or other organizational documents of Seller or PPI.
(b)    The execution, delivery and performance by Seller and PPI of this Agreement and each other Seller Closing Document, and the consummation of the Transaction, do not and will not: (i) conflict with, or result in the breach of, or constitute a default under, or result in the actual termination, cancellation or acceleration (whether after the giving of notice or the lapse of time or both) of any right or obligation of Seller or PPI under any agreement, contract, lease, arrangement, commitment or license to which Seller or PPI is a party; or (ii) violate or result in a breach of or constitute a default under any law or other restriction of any governmental entity to which Seller or PPI is subject or by which any of their respective assets are bound.
Section 2.4    Binding Effect.  This Agreement and each other Seller Closing Document when executed and delivered by Seller does and will constitute valid and legally binding obligations of Seller enforceable against Seller in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and to equitable principles limiting the availability of equitable remedies.
Section 2.5    Organization and Capitalization of Seller and PPI.  
Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware.  PPI is a limited liability company duly organized, validly existing and in good standing under the laws of the State of New York.  Seller is the owner of one hundred percent (100%) of the Securities, and the Securities represent one hundred percent (100%) of the issued and outstanding equity interests of PPI and there are no rights or options pursuant to which a third-

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party could acquire any equity interests in PPI.  PPI has no subsidiaries and does not, directly or indirectly, hold any shares or other equity interest in, nor any right or obligation to make any contribution of capital to or acquire any such interest in, any Person.
Section 2.6    Compliance with Laws.  The business of PPI has been and is being conducted in compliance in all material respects with all laws, and PPI has all material licenses, permits, orders, certificates and other authorizations and approvals of any governmental entity required under any applicable law to carry on its business as currently conducted.  PPI is not in default under any of such licenses, permits, orders, certificates or other authorizations or approvals.
Section 2.7    Litigation and Claims.  There is neither pending nor, to Seller’s knowledge, threatened civil, criminal or administrative claim, action, suit, proceeding, arbitration or investigation by any Person or governmental entity on behalf of or against PPI, or on behalf of or against Seller or MNIS with respect to or relating to PPI or its business.  PPI is not subject to any order, writ, judgment, award, injunction or decree of any governmental entity of competent jurisdiction or any arbitrator.
Section 2.8    Contracts.  
(a)    Seller has provided to Buyer true and complete copies of each material contract of PPI (“Contract”) that is in written form together with all amendments and modifications thereof and material correspondence with respect thereto.  Each of the Contracts constitutes the valid and legally binding obligation of PPI and, to Seller’s knowledge, of the other parties thereto, and is enforceable in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and equitable principles limiting the availability of equitable remedies.  Each of the Contracts constitutes the entire agreement of the respective parties thereto relating to the subject matter thereof.  No act or omission has occurred or failed to occur that has not been either cured or waived, which, with the giving of notice, the lapse of time or both, would (i) constitute a default under any of the Contracts by PPI or, to Seller’s knowledge, the other party thereto, or (ii) permit termination, modification or acceleration thereunder by PPI or, to Seller’s knowledge, the other party thereto, and each of the Contracts is in full force and effect.   
(b)    None of the Contracts requires consent or waiver in connection with the consummation of the Transaction.  
Section 2.9    Financial Statements.  Seller has delivered to Buyer the unaudited balance sheet of PPI as of December 31, 2018 and the unaudited income statements of PPI and of the DIAL cost center for the 12-month period ended December 31, 2018 (collectively, the “Financial Statements”).  The Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods indicated.  The Financial Statements fairly present in all material respects the financial condition and operating results of PPI and the DIAL cost center as of the dates, and for the periods, indicated, subject to normal year-end audit adjustments.  Except as set forth in the 

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Financial Statements, PPI has no material liabilities or obligations, contingent or otherwise, whether or not of a type required to be reflected or reserved against on a balance sheet prepared in accordance with GAAP, other than liabilities incurred in the ordinary course of business subsequent to December 31, 2018.
Section 2.10    Tax Returns and Payments.  There are no federal, state, county, local or foreign Taxes (as defined in Section 7.5) due and payable by or with respect to PPI which have not been timely paid.  There have been no examinations or audits of any Tax returns or reports of or with respect to PPI by any applicable federal, state, county, local or foreign governmental agency.  PPI, and Seller with respect to PPI, have duly and timely filed all federal, state, county, local and foreign Tax returns required to have been filed by them and there are in effect no waivers of applicable statutes of limitations with respect to Taxes for any year.  There are no liens for Taxes upon any assets of PPI.  PPI has no liability for the Taxes of any other person.  PPI, and Seller with respect to PPI, have timely and properly withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, member, independent contractor, creditor or other third party.
Section 2.11    Finders’ Fees.  There is no investment banker, broker, finder or other intermediary who (a) has been retained by or is authorized to act on behalf of Seller or PPI and (b) is entitled to any fee or commission from Seller or PPI in connection with the Transaction.
ARTICLE III.     
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer represents and warrants to Seller as follows:
Section 3.1    Power and Authority of Buyer.  Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of New York.  Buyer has full power and authority to execute, deliver and perform this Agreement and each other agreement, certification or instrument required to be executed and delivered by Buyer at Closing (the “Buyer Closing Documents”).  The execution, delivery and performance by Buyer of this Agreement and each other Buyer Closing Document have been duly and validly authorized by all necessary action on the part of Buyer.
Section 3.2    Approvals.  No consent, approval, waiver, authorization or novation is required to be obtained by Buyer from, and no notice or filing is required to be given by Buyer to, any Person or governmental entity in connection with the execution, delivery and performance by Buyer of this Agreement and any other Buyer Closing Document, and the consummation of the Transaction.
Section 3.3    Non-Contravention.  The execution, delivery and performance by Buyer of this Agreement and each other Buyer Closing Document, and the consummation of the Transaction, does not and will not: (a) violate any provision of the organizational documents of Buyer; (b) conflict with, or result in the breach of, or constitute a default under, or result in the actual or potential termination, cancellation or acceleration (whether after the filing of notice or the lapse of time or both) of any right or obligation of Buyer under, any agreement, contract, lease, arrangement, 

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commitment or license to which Buyer is a party; or (c) violate or result in a breach of or constitute a default under any law, judgment, injunction, order, decree or other restriction of any governmental entity to which Buyer is subject.
Section 3.4    Binding Effect.  This Agreement and each other Buyer Closing Document, when executed and delivered by Buyer, will constitute valid and legally binding obligations of Buyer, enforceable against Buyer in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting the enforcement of creditors’ rights generally and to equitable principles limiting the availability of equitable remedies. 
Section 3.5    Finders’ Fees.  There is no investment banker, broker, finder or other intermediary who: (a) has been retained by or is authorized to act on behalf of Buyer, and (b) is entitled to any fee or commission from Buyer in connection with the Transaction.
ARTICLE IV.     
POST-CLOSING COVENANTS
Section 4.1    Confidentiality.
(a)    At Closing, Seller shall deliver to Buyer or PPI copies of all material in Seller’s possession or control to the extent relating to any confidential or proprietary information or trade secrets of PPI, including DIAL, and all other books and records of or relating to PPI, including DIAL.  At all times after the Closing, Seller will treat as confidential and will safeguard any and all confidential and proprietary information and trade secrets of PPI, by using the same degree of care, but no less than a reasonable standard of care, to prevent the unauthorized use, dissemination or disclosure of such confidential and proprietary information and trade secrets as Seller used with respect thereto prior to Closing and uses thereafter with respect to its own confidential and proprietary information and trade secrets.
(b)    Nothing contained in this Section 4.1 will in any way restrict or impair the right of Seller to use, disclose or otherwise deal with information which (i) is or becomes a matter of public knowledge through no fault of Seller, (ii) was already in Seller’s possession at the time of disclosure of the information to Seller, and was not acquired, directly or indirectly, from PPI or from any Person under any obligation of confidentiality to the Seller, to PPI or to any other Person; provided, however, that with respect to the confidential and proprietary information and trade secrets of PPI existing prior to Closing, Seller will not be deemed to have been in possession of such confidential or proprietary information or trade secrets based on its prior knowledge of the same, (iii) is rightfully received by Seller from a Person having no duty of confidentiality to PPI, (iv) is independently developed by Seller, (v) is disclosed as required by any law after reasonable prior notice to the Buyer and a reasonable opportunity for Buyer or PPI to limit such disclosure or (vi) is disclosed by Seller with PPI’s prior written consent. 
Section 4.2    Public Disclosure.  Except as may be required to comply with the requirements of any law or securities exchange, no party will issue or permit the issuance of any 

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press release or similar public announcement or communication concerning the execution or performance of this Agreement unless specifically approved by the other parties in advance.
Section 4.3    Further Assurances; Actions.  If at any time after Closing any further action is necessary or desirable to carry out the purposes of this Agreement, each of the parties will take such further action (including the execution and delivery of such further instruments and documents) as any other party may reasonably request.
Section 4.4    Future Commercial Agreement.  Buyer and Seller may discuss (but are not obligated to enter into) a potential business relationship for Buyer and Seller to market PPI and/or DIAL-related products and services or for Seller and its affiliates and representatives to use such products and services internally.  Although any such arrangement is subject to the negotiation and execution of definitive agreements before any party will be bound, the parties expect that the following terms would be included in any such future business relationship in the event of a merger or acquisition of Seller (directly or indirectly) with or by another entity, royalty-free licenses for the direct representatives of Seller and its affiliates would be limited to the number of such licenses granted prior to the date of such merger or acquisition.
Section 4.5    Employees.
(a)    Prior to Closing, Buyer will establish retirement, medical, dental and health plans to be effective as of the Closing that, taken as a whole, are substantially similar to those provided to the Employees immediately prior to Closing.  Such medical, dental and health plans will waive any eligibility period and preexisting condition limitations.  Buyer will give all Employees continuing in the employment of PPI credit for all service with Seller, PPI or any of its affiliates and for any service credited by Seller or any of its affiliates under the employee benefit plans, programs and policies, and fringe benefit arrangements of the Buyer or PPI for purposes of eligibility, vesting, and, with respect to welfare plans, benefit accrual.
(b)    For a period of one year following the Closing, Buyer will maintain (or cause PPI to maintain) employee compensation and benefits for Employees comparable in the aggregate to those in effect immediately prior to Closing.
(c)    Nothing contained herein, express or implied, is intended to confer upon any Employee any rights to have continuing employment with Buyer or PPI for any period.  No Person not a party hereto shall have any rights to enforce any term of this Agreement as a third-party beneficiary or otherwise.
(d)    On and after the Closing Date, Buyer will comply in all respects with the group health plan continuation coverage requirements of COBRA with respect to any Employees continuing in the employment of PPI.
(e)    Notwithstanding the foregoing, nothing contained herein will (i) be treated as an amendment to any particular employee benefit plan, (ii) other than as required by applicable Law, obligate Buyer or any of its affiliates to (A) maintain any particular benefit plan or (B) retain 

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the employment of any particular employee, or (iii) give any third party the right to enforce any of the provisions of this Agreement.
Section 4.6    Tax Matters.  Buyer shall be entitled to deduct and withhold any amounts it is required to deduct and withhold pursuant to any provision of the Internal Revenue Code of 1986, as amended (the “Code”) or other law in connection with any payment made pursuant to the terms of this Agreement.  Buyer, PPI and Seller agree to cooperate and use commercially reasonable efforts to seek to minimize any anticipated withholding Tax imposed in connection with this Agreement.  Any amounts so withheld shall be treated for all purposes of this Agreement as having been paid to the Person otherwise entitled to receive such payments pursuant to this Agreement.
ARTICLE V.     
CLOSING
Section 5.1    Closing Date.  The closing of the transactions contemplated hereby (the “Closing”) will take place at the offices of Harter Secrest & Emery LLP, 1600 Bausch & Lomb Place, Rochester, New York 14604 (including by means of facsimile, electronic mail or other electronic transmission), within five (5) business days following the satisfaction or, to the extent permitted hereunder, waiver of all conditions set forth in this Article V (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permitted hereunder, waiver of all such conditions), unless this Agreement has been terminated pursuant to its terms or unless another time or date is agreed to in writing by the parties hereto, and the actual date of the Closing is hereinafter referred to as the “Closing Date”.  Closing will be deemed effective as of 11:59 p.m. (local time) on the Closing Date.
Section 5.2    Closing Conditions.
(a)    Conditions to the Buyer’s Obligations.  The obligation of Buyer to consummate the Closing under this Agreement is subject to the satisfaction (or waiver by Buyer), on or before the Closing, of each of the following conditions:
(i)    The representations and warranties of Seller contained in this Agreement will be true and correct in all respects (in the case of any representation or warranty containing any materiality qualification) or in all material respects (in the case of any representation or warranty without any materiality qualification) at and as of the date hereof and on and as of the Closing Date, except for those representations and warranties that address matters as of any other particular date (in which case such representations and warranties will speak as of such particular date).  Seller will have delivered to Buyer a certificate, dated as of the Closing Date, stating that the conditions specified in this Section 5.2(a)(i) have been satisfied.
(i)    Seller will have performed and complied with in all material respects all of the covenants and agreements required to be performed by Seller under this Agreement at or prior to the Closing.  Seller will have delivered to Buyer a certificate, dated as of the Closing Date, stating that the conditions specified in this Section 5.2(a)(ii) have been satisfied.

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(ii)    No judgment, decree or order will have been entered, and no litigation or arbitration will be pending or threatened seeking, to (1) prevent the performance of or declare unlawful this Agreement or the consummation of any of the transactions contemplated hereby, (2) cause such transactions to be rescinded or (3) obtain damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby.
(iii)    Seller will have delivered Buyer duly executed documents sufficient to transfer the Securities to Buyer.
(iv)    Seller will have delivered to Buyer written resignations, effective as of the Closing and otherwise in form and substance reasonably satisfactory to Buyer, from each member of the board of managers of PPI.
(v)    Seller will have delivered, or will cause MNA to deliver, to Buyer a duly executed standard solicitation agreement (the “Solicitation Agreement”) by and between Buyer and MNA, in such form as agreed to by Buyer and Seller, in which MNA will agree to pay to Buyer ten percent (10%) of MNA’s revenue derived from asset management business referred to MNA by Buyer.
(vi)    Such employees of Seller or MNA, who have been dedicated to PPI and DIAL and who Seller and Buyer agree should be employees of PPI (or an affiliate of PPI) after Closing (the “Employees”), will have become employees of PPI (or an affiliate of PPI) (for which purpose Seller confirms that there are currently no employees whose responsibilities are divided between PPI and any other operations of Seller or its affiliates).
(vii)    Seller will have assigned to PPI all or substantially all of the assets and liabilities of MNIS, including those related to DIAL, and Seller will have provided Buyer proof of the same, in such form as reasonably acceptable to the Buyer.
(viii)    MNA and Buyer (or PPI) will have entered into a mutually agreeable month-to-month sublease agreement for space at 295 Woodcliff Drive, Fairport, NY 14450 for the PPI business (the “Lease”) on substantially the terms set forth on Schedule 5.1(a)(ix).
(ix)    Seller will have agreed to provide PPI reasonable post-Closing transition IT services to separate PPI from Seller’s IT infrastructure and to support the IT requirements of PPI and its business (at a reasonable level of services), which services will last for no more than thirty (30) days after Closing, subject to an extension at the option of PPI for up to thirty (30) additional days, for which IT services Buyer will pay Seller its fully-burdened costs.  For clarity, neither Seller nor any of its affiliates will have any obligation to provide any other services or assistance to Buyer or PPI, including, but not limited to, services or assistance related to finance, accounting, tax, insurance, legal and human resources.
(x)    Seller will have delivered to Buyer such other agreements, certificates and documents as may be reasonably requested by Buyer to effectuate or evidence the transactions contemplated hereby.

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(b)    Conditions to Seller’s Obligations.  The obligation of Seller to consummate the Closing under this Agreement is subject to the satisfaction (or waiver by the Seller), on or before the Closing, of each of the following conditions:
(i)    The representations and warranties of Buyer contained in this Agreement will be true and correct in all respects (in the case of any representation or warranty containing any materiality qualification) or in all material respects (in the case of any representation or warranty without any materiality qualification) at and as of the date hereof and on and as of the Closing Date, except for those representations and warranties that address matters as of any other particular date (in which case such representations and warranties will speak as of such particular date).  Buyer will have delivered to Seller a certificate, dated as of the Closing Date, stating that the conditions specified in this Section 5.3(b)(i) have been satisfied.
(ii)    Buyer will have performed and complied with in all material respects all of the covenants and agreements required to be performed by Buyer under this Agreement at or prior to the Closing.  Buyer will have delivered to Seller a certificate, dated as of the Closing Date, stating that the conditions specified in this Section 5.3(b)(ii) have been satisfied.
(iii)    No judgment, decree or order will have been entered, and no litigation or arbitration will be pending or threatened seeking, to (1) prevent the performance of or declare unlawful this Agreement or the consummation of any of the transactions contemplated hereby, (2) cause such transactions to be rescinded or (3) obtain damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby.
(iv)    Buyer will have delivered to Seller duly executed waivers, agreements or releases, in form and substance reasonably acceptable to Seller, pursuant to which William Manning disclaims any interest in or right to receive any portion of the Expense Amount or Revenue Payments.  
(v)    Buyer will have delivered to Seller or MNA the duly executed Solicitation Agreement.
(vi)    Buyer will have delivered to Seller or MNA the duly executed Lease.
(vii)    Buyer will have delivered to Seller such other agreements, certificates and documents as may be reasonably requested by Seller to effectuate or evidence the transactions contemplated hereby.
ARTICLE VI.     
INDEMNIFICATION
Section 6.1    Buyer’s Right to Indemnification.  From and after Closing, and subject to the further provisions of this Article VI, Seller will indemnify, defend and hold harmless Buyer from, against and in respect of all damages, claims, losses, charges, actions, suits, proceedings, 

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deficiencies, interest, penalties and reasonable costs and expenses associated therewith (including reasonable attorneys’ fees, litigation costs, fines, penalties and expenses of investigation) (collectively, “Losses”) imposed on, sustained, incurred or suffered by or asserted against Buyer, directly relating to or arising out of any of the following: (a) any fact or circumstance that constitutes a breach of any representation or warranty of Seller made in this Agreement, or (b) any act or omission that constitutes a breach of any covenant or agreement of Seller made in this Agreement.
Section 6.2    Seller’s Right to Indemnification.  From and after Closing and subject to the further provisions of this Article VI, Buyer will indemnify, defend and hold harmless Seller from, against and in respect of all Losses imposed on, sustained, incurred or suffered by or asserted against Seller, relating to or arising out of any of the following: (a) any fact or circumstance that constitutes a breach of any representation or warranty of Buyer made in this Agreement; (b) any act or omission that constitutes a breach of any covenant or agreement of Buyer made in this Agreement; and (c) the operation of the business of PPI at any time after Closing.
Section 6.3    Survival.  All of the representations and warranties contained in Article II and in Article III will survive Closing and continue in full force and effect until eighteen (18) months following the Closing Date.  All covenants of the parties shall survive indefinitely in accordance with their respective terms.
Section 6.4    Limitations.  In no event will Seller be obligated to make payment in respect of Losses under Section 6.1(a) in excess of the Purchase Price actually paid to it, and in no event will Buyer be obligated to make payment in respect of Losses under Section 6.1(b) in excess of the Purchase Price. “Losses” will not include, either (a) special, exemplary, punitive, incidental or consequential damages or (b) lost or anticipated revenues or profits relating to the same.  The limitations provided in this Section 6.4 shall not apply to any breach by either Seller or Buyer of its obligations to be performed following Closing under this Agreement or any other Seller Closing Document or Buyer Closing Document.
ARTICLE VII.     
TAX MATTERS
Section 7.1    Taxes and Tax Indemnification.
(a)    The parties agree that the transactions contemplated hereby will be treated an asset sale for federal and state tax purposes and they will make any elections necessary for such tax treatment.
(b)    Seller will indemnify Buyer and hold Buyer harmless from and against any loss, claim, liability, expense or other damage attributable to (a) all Taxes (or the non-payment thereof) of Seller (including, for the avoidance of doubt, Taxes with respect to PPI) for all taxable periods ending before the Closing Date and the portion up to but not including the Closing Date for any taxable period that includes (but does not end on) the day before the Closing Date (the “Pre-Closing Tax Period”), and (b) any and all Taxes of any Person imposed on Seller or PPI as a transferee or successor, by contract or pursuant to any law, which Taxes relate to an event or transaction occurring before the Closing Date.  Seller will reimburse Buyer for any Taxes that are 

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the responsibility of Seller pursuant to this Section 7.1(a) within fifteen (15) days after payment of such Taxes by Buyer.
Section 7.2    Responsibility for Filing Tax Returns.  Buyer will prepare or cause to be prepared and file or cause to be filed all Tax Returns for any period after the Closing Date.  
Section 7.3    Cooperation on Tax Matters.  Buyer and Seller will cooperate fully, as and to the extent reasonably requested by any other party, in connection with the filing of Tax Returns pursuant to Section 7.3, and any audit, litigation or other proceeding with respect to Taxes. Buyer and Seller will, upon the other party’s request, use its best efforts to obtain any certificate or other document from any Person or governmental entity as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including with respect to the Transaction).
Section 7.4    Certain Taxes and Fees.  All transfer, documentary, sales, use, stamp, registration and other such taxes, and all conveyance fees, recording charges and other fees and charges (including any penalties and interest) incurred in connection with the consummation of the Transaction will be paid by Buyer when due, and Buyer will, at its own expense, file all necessary Tax Returns and other documentation with respect to all such Taxes, fees and charges, and, if required by applicable law, Seller will join in the execution of any such Tax Returns and other documentation.
Section 7.5    Definitions.  For purposes of this Agreement, (a) “Tax” or “Taxes” means any federal, state, county, local or foreign income, gross, receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated or other tax of any kind whatsoever, including any interest, penalty or addition thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person, and (b) “Tax Return” means any return, declaration, report, claim for refund or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
ARTICLE VIII.     
TERMINATION
Section 8.1    Termination.  This Agreement may be terminated at any time prior to the Closing:
(a)    By the mutual written consent of Buyer and Seller;
(b)    By Buyer without cause upon written notice to Seller prior to Closing;
(c)    By Seller or Buyer upon written notice given to the other, if the Closing has not occurred on or before 5:00 p.m. local time on December 31, 2018; provided, however, that the right to terminate this Agreement pursuant to this Section 8.1(c) will not be available to any party whose knowing or willful failure to perform any of its obligations under this Agreement required 

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to be performed by it at or prior to the Closing has been the cause of, or resulted in, the failure of the Closing to occur;
(d)    By Seller or Buyer upon written notice given to the other, if there has been a breach by (i) Buyer, in the case of notice from the Seller, or (ii) Seller, in the case of notice from the Buyer, of any representation, warranty, covenant or agreement made by such parties in this Agreement such that the conditions to the Closing set forth in Sections 5.2(a)-(b), as applicable, would not be satisfied; provided that such breach (if curable) has not been cured within fifteen (15) calendar days after notice of the same; or
(e)    By Seller or Buyer if any governmental authority of competent jurisdiction has issued a nonappealable final judgment, order, ruling, settlements, writ, injunction, assessment, citation or arbitration award or decree or taken any other nonappealable final action, in each case having the effect of restraining, enjoining or otherwise prohibiting the transactions contemplated hereby.
Section 8.2    Effect on Obligations.  Termination of this Agreement pursuant to Section 8.1 will terminate all obligations of the parties hereunder, except for their obligations under this Article VIII and Articles VI and IX; provided, however, that unless this Agreement has been terminated pursuant to Section 8.1(c), termination of this Agreement will not relieve a breaching party (whether or not it is the terminating party) from any liability to the other party hereto arising from or related to its prior breach of any representations, warranties, covenants or agreements contained herein.
Section 8.3    Closing of Businesses.  Buyer acknowledges that Seller intends to shut down and liquidate promptly the businesses of PPI and MNIS if the transactions contemplated hereby do not close for any reason.
ARTICLE IX.     
MISCELLANEOUS
Section 9.1    Notices.  All notices or other communications given hereunder will be in writing and will be deemed duly given: (a) when delivered personally to the recipient, (b) one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid), (c) one (1) business day after being sent to the recipient by facsimile transmission or e-mail, or (d) four (4) business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid, and addressed to the intended recipient as set forth below, or at such other address as may be provided by such party by notice given as herein provided:

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	If to Buyer or, after Closing, to PPI:
	Manning Partners, LLC
290 Woodcliff Drive
Fairport, New York 14450 
Attention: Michelle Thomas 
Facsimile: (585) 325-5617
E-mail: mthomas@manning-napier.com

	If to Seller or, before Closing, to PPI:
	Manning & Napier Group, LLC
290 Woodcliff Drive 
Fairport, New York 14450 
Attention: Corporate Secretary Facsimile: (585) 232-9079
E-mail: sturner@manning-napier.com

Section 9.2    Amendment; Waiver.  Any provision of this Agreement may be amended only if such amendment is in writing and signed by Buyer and Seller.  A party may waive any right held by that party without the consent of the other parties.  No failure or delay by any party in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
Section 9.3    No Assignment or Benefit to Third Parties.  No party may assign any of its rights or delegate any of its obligations under this Agreement, by operation of law or otherwise, without the prior written consent of the other parties, and any attempt to assign this Agreement without such consent will be null and void and of no force or effect.  Nothing in this Agreement, express or implied, is intended to confer upon any Person other than Buyer, the Seller and PPI, and their respective permitted successors or permitted assigns, any rights or remedies under or by reason of this Agreement.  Without limiting the generality of the foregoing, nothing in this Agreement creates any rights in any employees or groups of employees.
Section 9.4    Expenses.  All costs and expenses incurred in connection with this Agreement and the Transaction, and the negotiations preceding them, will be borne by the party for whose benefit such costs and expenses were incurred.
Section 9.5    Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.
Section 9.6    Submission to Jurisdiction.  Each of the parties submits to the personal jurisdiction of any state or federal court sitting in Monroe County in the State of New York in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court.  No party will bring any action or proceeding arising out of or relating to this Agreement in any other court.
Section 9.7    Severability.  The provisions of this Agreement will be deemed severable, and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof.
Section 9.8    No Further Representations.  Except for the specific and express representations and warranties made by a party in this Agreement, no party makes and has not made 

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any representation or warranty, express or implied, at law or in equity, in respect of any matter. Each party hereby disclaims any representation or warranty made by any Person that is not contained in this Agreement, including any implied warranties of merchantability, fitness for a particular purpose, title and against infringement.
Section 9.9    Headings.  The heading references herein are for convenience purposes only, do not constitute a part of this Agreement and will not be deemed to limit or affect any of the provisions hereof.
Section 9.10    Interpretation.  In this Agreement, unless the express context otherwise requires: (a) the words “herein,” “hereof” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (b) references to “Article” or “Section” are to the respective Articles and Sections of this Agreement, and references to “Schedule” are to the respective Schedules annexed hereto; (c) references to a “party” means a party to this Agreement and include references to such party’s permitted successors and permitted assigns; (d) references to a “third party” means a Person not party to this Agreement; (e) the terms “Dollars” and “$” means United States dollars; (f) terms defined in the singular have a comparable meaning when used in the plural, and vice versa; (g) the masculine pronoun includes the feminine and the neuter, and vice versa, as appropriate in the context; (h) wherever the word “include,” “includes” or “including” is used in this Agreement, it will be deemed to be followed by the words “without limitation.”
Section 9.11    Counterparts.  This Agreement may be executed in one or more counterparts (including by means of facsimile or e-mail in .pdf or similar format), each of which will be deemed an original, and all of which together will constitute one and the same Agreement, notwithstanding that each party has not executed the same counterpart.
Section 9.12    Entire Agreement.  This Agreement, including the Schedules hereto, contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters.
Section 9.13    Guaranty.  PPI absolutely, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, the obligations of Buyer hereunder arising after Closing, including the punctual payment when due of all present and future obligations, liabilities, covenants and agreements required to be observed, performed, or paid by Buyer pursuant to this Agreement, including the payment of the Revenue Payment and indemnification under Article VI, and any costs, expenses and fees incurred by Seller in any way related to the enforcement or protection of Seller’s rights hereunder.

[signature page follows]

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IN WITNESS WHEREOF, the parties to this Agreement, intending to be legally bound hereby, have executed or caused this Agreement to be executed by their legally authorized representatives on the Effective Date.
	
	
	MANNING & NAPIER GROUP, LLC

	By: /s/  Sarah. C. Turner
Name: Sarah C. Turner 
Title: Corporate Secretary

	 

	MANNING PARTNERS, LLC

	By:/s/ William Manning
Name:  William Manning 
Title: 

	 

	PERSPECTIVE PARTNERS, LLC

	By:/s/ Michelle Thomas 
Name: Michelle Thomas
Title: Authorized Representative

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