Document:

Exhibit 10.23

 

[           ], 2015

 

[Investor fund]

[Street address]

[City, state, zip]

 

Dear Sirs:

 

This letter will confirm our agreement that, in connection with the receipt by [Investor], a Delaware [entity form] (“Investor”), of shares of common stock, $0.01 par value per share, of Bellerophon Therapeutics, Inc., a Delaware corporation (the “Company”), in connection with the Company’s conversion from a Delaware limited liability company to a Delaware corporation pursuant to the Plan of Conversion dated on or about the date hereof, Investor will be entitled to the following contractual management rights relating to the Company and its direct and indirect subsidiaries (collectively, the “Management Rights”).

 

1.             Investor shall be entitled to routinely consult with and advise management of the Company with respect to operations of the Company and its direct and indirect subsidiaries, including all the Company’s business and financial matters and management’s proposed annual operating plans, and management will meet regularly during each year with representatives of Investor (the “Representatives”) at the Company’s facilities at mutually agreeable times for such consultation and advice, including to review progress in achieving said plans.  The Company shall give Investor reasonable advance written notice of any significant new initiatives or material changes to existing operating plans of the Company and its direct and indirect subsidiaries and shall afford Investor adequate time to meet with management to consult on such initiatives or changes prior to implementation.  The Company agrees to give due consideration to the advice given and any proposals made by Investor.

 

2.             Investor may inspect all documents, contracts, books, records, personnel, offices and other facilities and properties of the Company and its direct and indirect subsidiaries and, to the extent available to the Company after the Company uses reasonable efforts to obtain them, the records of its legal advisors and accountants, including the accountants’ work papers, and Investor may make such copies and inspections thereof as Investor may reasonably request.  The Company shall furnish Investor with such financial and operating data and other information with respect to the business and properties of the Company and its direct and indirect subsidiaries as Investor may request.  Notwithstanding the foregoing, the Company shall be permitted to exclude Investor from access to any materials to the extent that such exclusion is reasonably necessary to preserve the attorney-client privilege.  The Company shall permit the Representatives to discuss the affairs, finances and accounts of the Company and its direct and indirect subsidiaries with the principal officers of the Company and to make proposals and furnish advice with respect thereto to such persons.

 

3.             [At any time during which Investor does not have the direct contractual right to designate a representative to serve on the Board of Directors (or similar managing entity) of the Company (the “Board”), Investor shall have the right to designate one (1) observer who shall be entitled to attend all meetings of the Board (and all material committees thereof) and receive copies of all materials provided to the Board, including, without limitation, notices, minutes,

 

 

consents and any and all other materials provided to Board members, provided that such observer shall have no voting rights with respect to actions taken or elected not to be taken by the Board; provided, that information or materials that the Board reasonably determines in good faith to be highly confidential, in the nature of trade secrets or, based on the written advice of counsel, to be necessary to preserve the attorney-client privilege, need not be provided.  Such observer may participate in discussions of matters brought to the Board and may address the Board with respect to Investor’s concerns regarding business issues facing the Company and its subsidiaries.](1)

 

4.             The Company shall deliver to Investor:

 

(a)           as soon as available and in any event within 45 days after the end of each of the first three quarters of each fiscal year of the Company, consolidated balance sheets of the Company and its direct and indirect subsidiaries as of the end of such period then ended, and consolidated statements of income and cash flows of the Company and its direct and indirect subsidiaries for the period then ended, in each case prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein and subject to the absence of footnotes and to year-end adjustments;

 

(b)           as soon as available and in any event within 120 days after the end of each fiscal year of the Company, a consolidated balance sheet of the Company and its direct and indirect subsidiaries as of the end of such year, and consolidated statements of income and cash flows of the Company and its direct and indirect subsidiaries for the year then ended, in each case prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, together with an auditor’s report thereon of a firm of established national reputation; and

 

(c)           to the extent the Company or any direct or indirect subsidiary is required by law or pursuant to the terms of any outstanding indebtedness of the Company or any direct or indirect subsidiary to prepare such reports, any annual reports, quarterly reports and other periodic reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, prepared by the Company or any direct or indirect subsidiary as soon as available.

 

5.             Investor agrees, and shall cause the Representatives to agree, to hold in confidence and trust and not use or disclose any confidential information provided to or learned by it in connection with the exercise of Investor’s Management Rights under this letter agreement, unless otherwise required by law or unless such confidential information otherwise becomes publicly available or available to it other than through this letter agreement.

 

6.             The rights set forth in this letter agreement shall terminate and be of no further force or effect upon the date Investor no longer holds any securities of the Company.  The confidentiality provisions hereof will survive any such termination.

 

7.             The rights set forth in this letter agreement are intended to satisfy the requirement of contractual management rights for purposes of qualifying Investor’s interests in the Company as venture capital investments for purposes of the Department of Labor’s “plan assets”

 

(1)  This paragraph is only applicable to investment funds affiliated with New Mountain Capital.

 

2

 

regulations, and in the event that, after the date hereof, as a result of any change in applicable law or regulation or a judicial or administrative interpretation of applicable law or regulation, it is determined that such rights are not satisfactory for such purpose, Investor and the Company shall reasonably cooperate in good faith to agree upon mutually satisfactory management rights which satisfy such regulations.

 

8.             The Company agrees that, at any time after the date hereof, upon the request of Investor and in connection with any sale or other transfer by Investor of its interests in the Company, the Company shall:  (i) provide each transferee with management rights substantially similar to those provided to Investor under this letter agreement, if such rights would facilitate the transferee’s ability to meet or comply with any regulatory or legal requirement or standard, including such rights as are necessary to cause the investment by the transferee to constitute a “venture capital investment” for purposes of the Department of Labor’s “plan assets regulation”, (ii) provide such transferee with such other rights as may be reasonably necessary for such transferee to comply with any other regulatory scheme to which such transferee may be subject and (iii) subject to any applicable restrictions on transfer, take any actions reasonably necessary to effectuate or facilitate such sale or transfer to such transferee.

 

9.             This letter agreement may not be amended, modified or canceled except by written agreement of all parties hereto.  This letter agreement is intended to be a legal and binding obligation of Investor and the Company.  This letter agreement cancels and supersedes the management rights letter dated February 12, 2014 by and between the parties hereto.

 

10.          This letter agreement shall be construed and enforced in accordance with, and the rights and obligations of the parties hereto shall be governed by, the laws of the State of New York, without giving effect to the conflicts of law principles thereof.

 

11.          By execution and delivery of this letter agreement, each of the parties hereto hereby irrevocably and unconditionally (i) consents to submit to the exclusive jurisdiction of the federal and state courts located in the State of New York in New York County (collectively, the “Selected Courts”) for any action or proceeding arising out of or relating to this letter agreement, and agrees not to commence any action or proceeding relating thereto except in the Selected Courts (provided, that a party may commence any action or proceeding in a court other than a Selected Court solely for the purpose of enforcing an order or judgment issued by one of the Selected Courts); (ii) consents to service of any process, summons, notice or document in any action or proceeding by registered first-class mail, postage prepaid, return receipt requested or by nationally recognized courier guaranteeing overnight delivery and agrees that such service of process shall be effective service of process for any action or proceeding brought against it in any such Selected Court (provided, that nothing herein shall affect the right of any party hereto to serve process in any other manner permitted by law); (iii) waives any objection to the laying of venue of any action or proceeding arising out of this letter agreement in the Selected Courts; and (iv) waives and agrees not to plead or claim in any Selected Court that any such action or proceeding brought in any such Selected Court has been brought in an inconvenient forum.

 

12.          This letter agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute one and the same instrument.

 

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[Signature Page Follows]

 

4

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
BELLEROPHON THERAPEUTICS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
AGREED   AND ACCEPTED THIS         day of               ,   2015
    
	
 
    
	
[INVESTOR]
    
	
 
    
	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Name:
    
	
Title:
    
					

 

[Signature Page to Management Rights Letter]EX-10.1

 Exhibit 10.1 

Retirement Agreement and Release for Gregory D. Wasson 

This Retirement Agreement and Release (“Agreement”) is entered into between Gregory D. Wasson (“I” or
“Employee”), Walgreens Boots Alliance, Inc. (“WBA”) and Walgreen Co. (“Walgreens”) (WBA, Walgreens and their respective parents, subsidiaries, affiliated companies, predecessors, successors and
assigns, collectively, the “Company”), describing the application of certain compensation, benefits, and other terms and conditions in connection with Employee’s retirement from the Company. The parties agree as follows: 

1. Retirement Date. The parties agree that Employee shall retire from employment with the Company effective as of January 9, 2015
(the “Retirement Date”). 
 2. Parties. In consideration of and subject to the performance by the Company of its
obligations under paragraph 3(b) of this Agreement, Employee hereby releases and forever discharges as of the date hereof the Company and all present, former and future shareholders, directors, officers, agents, representatives, employees,
successors and assigns of the Company (collectively, the “Released Parties”) to the extent provided below in paragraph 4 (the “General Release”). The Released Parties are intended to be third-party beneficiaries of
the General Release, and the General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. 

3. Post-Termination Compensation and Benefits. 

(a) The Company agrees that Employee’s termination of employment is a “retirement” for purposes of any plan or award agreement
of the Company to which Employee is a party or in which Employee participates which includes the concept of retirement and, in accordance with the terms of such plans and award agreements, Employee will be entitled to receive the payments and
benefits set forth in Exhibit A. 
 (b) Further, in recognition of Employee’s service and dedication to the Company, Employee
will be entitled to the following additional vesting benefits: (i) Employee’s restricted stock units granted on August 15, 2011 and November 1, 2012 will vest in full as of the Retirement Date, as described in Exhibit A
and (ii) Employee’s performance shares granted in November 2012 will vest based on actual performance over the applicable performance period, without pro-ration, as if Employee had continued in the employ of the Company (such vesting
described in clauses (i) and (ii), the “Retirement Vesting Benefit”). 
 (c) The Company will continue Employee’s
executive personal security benefit for twelve months following the Retirement Date on the same basis as provided during his tenure as Chief Executive Officer. 

4. General Release. Except as provided in paragraphs 6 and 19 below, in consideration of the Retirement Vesting Benefit, I knowingly and
voluntarily (for myself, my heirs, executors, administrators and assigns) hereby irrevocably and unconditionally release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes
of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity,

 
both past and present (through the date that this Agreement becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released
Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company, including, but not limited to, any
allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act);
the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990, as amended; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any
applicable Executive Order Programs; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy,
contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or
other expenses, including attorneys’ fees incurred in these matters (all of the foregoing collectively referred to herein as the “Claims”). 

5. No Assignment of Claims. I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or
other matter covered by paragraph 4 above. 
 6. Waiver of Rights. I agree that I hereby waive all rights to sue or obtain equitable,
remedial or punitive relief from any or all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further
acknowledge that I am not waiving and am not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding (including but not
limited to the Equal Employment Opportunity Commission); provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding.
Additionally, I am not waiving (i) any right to the payments and benefits set forth on Exhibit A, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification under the
Company’s organizational documents or otherwise including, without limitation, indemnification and insurance coverage provided pursuant to Employee’s statement of undertaking dated November 11, 2014, (iii) my rights as an equity
or security holder in the Company or its affiliates, (iv) my rights under any equity awards that survive termination of employment; or (v) my rights under any retirement plan that is “qualified” under Section 401(a) of the
Internal Revenue Code of 1986. 
 7. Class and Collective Action Waiver. In signing this Agreement, I hereby agree not to bring or
participate in any class or collective action against the Company and/or the other Released Parties that asserts, in whole or in part, any claims that arose before I signed this Agreement, whether or not such claims (if brought by me individually)
are released by this Agreement. 

  
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 8. Release Given Full Force and Effect. In signing this Agreement, I acknowledge and
intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this Agreement shall be given full force and effect according to each and all of its express terms and
provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as
those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this Agreement and that without such waiver I would not have become entitled to receive the Retirement
Vesting Benefit. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this Agreement
shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described herein as of the execution of this Agreement. 

9. Non-Admissions. I agree that neither this Agreement, nor the furnishing of the consideration for the General Release contained in
this Agreement, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct. 

10. Confidentiality. I agree not to use or disclose any Confidential Information, as defined below, to any person or entity other than
the Company, either before or after the Retirement Date, without the Company’s prior written consent. Confidential Information means information not generally known by the public about processes, systems, products or services, including
proposed products or services, business information, pricing, sales, promotions, financial performance, know-how, or trade secrets of the Company. 

11. Regulatory Disclosures. Any non-disclosure or non-disparagement provision in this Agreement does not prohibit or restrict me (or my
attorney) from truthfully responding to any inquiry about this Agreement or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other regulatory
organization or any governmental entity. 
 12. Knowledge of Potential Claims. I represent that I am not aware of any claim by me
other than the claims that are released by this Agreement. I acknowledge that I enter into this Agreement despite understanding that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist
with respect to the subject matter set forth in paragraph 4 above and which, if known or suspected at the time of entering into this Agreement, may have materially affected this Agreement and my decision to enter into it. 

13. Non-Disparagement. I agree that I will not make derogatory statements, either written or oral, or otherwise disparage any Released
Party or the Company’s products or services, except as may be required by law. Nor shall I direct, arrange or encourage others to make any such derogatory or disparaging statements on my behalf. The Company agrees that it shall direct its
executive management team, human resources department and investor relations department not to make derogatory statements, either written or oral, or otherwise disparage me, except as may be required by law. The Company further agrees that none of
the members of the 

  
 3 

 
Board of Directors of WBA (the “Board”) will, in his or her capacity as a member of the Board, make derogatory statements, either written or oral, or otherwise disparage me,
except as may be required by law; provided that, for clarification, no individual member of the Board may be held personally liable for a breach of this sentence, and any action by me in respect of a purported breach of this sentence may be directed
only to the Company, and not to any individual member of the Board. 
 14. Non-Solicitation. I agree that for two years after my
Retirement Date: 
 (a) I will not directly or indirectly, induce, attempt to induce, or otherwise encourage, any customer, potential
customer, vendor, supplier, partner, PBM or referral source of the Company with which I had direct contact or which I learned confidential information regarding products or services at any time during the last two years of my employment with the
Company from ceasing or reducing the amount of business it conducts with the Company; and 
 (b) I will not, nor will I assist any third
party to, directly or indirectly (i) raid, hire, solicit, or attempt to persuade any employee of the Company or any person who was an employee of the Company during the 6 months preceding the termination of my employment with the Company, who
possesses or had access to confidential information of the Company, to leave the employ of the Company; (ii) interfere with the performance by any such persons of their duties for the Company; or (iii) communicate with any such persons for
the purposes described in items (i) and (ii) in this paragraph. 
 15. Return of Property. I agree that, no later than the
Retirement Date, I will have returned all Company property, and no Company property will be retained by me, regardless of the form in which it was acquired or held by me. 

16. Cooperation. Subject to paragraphs 6 and 11 above, I agree to cooperate with the Company and its agents and representatives during
and in connection with all litigation, potential litigation, internal or external investigations, and business matters in which the Company is involved or may become involved, subject to reimbursement of reasonable expenses incurred at the
reasonable request of the Company. 
 17. Recoupment. All incentive compensation paid to Employee pursuant to this Agreement or
otherwise in connection with Employee’s employment with the Company shall be subject to forfeiture recovery by the Company or other action pursuant to any clawback or recoupment policy which the Company has in place as of the date of the this
Agreement, or which the Company may adopt from time to time thereafter to the extent the Board determines in good faith that the adoption and maintenance of such policy is necessary to comply with the Dodd-Frank Wall Street Reform and Consumer
Protection Act and implementing rules and regulations thereunder, or is otherwise required by the laws of the United States. 
 18.
Consequences of Breach. I agree that the Retirement Vesting Benefit is conditioned on my compliance with all of my commitments set forth in this Agreement. In addition, I acknowledge that the covenants set forth in paragraphs 10, 13 and 14 of
this Agreement and the Non-Competition Agreements, as defined in paragraph 21 below, are necessary to enable the Company to maintain its competitive position and any actual or 

  
 4 

 
threatened breach of these covenants will result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law. In the event of any actual or threatened
breach of these covenants, the Company shall be entitled to injunctive relief, including the right to a temporary restraining order, and other relief, including damages, as may be proper. The foregoing stipulated damages and remedies of the Company
are in addition to, and not to the exclusion of, any other damages the Company may be able to prove. 
 19. No Future Waiver.
Notwithstanding anything in this Agreement to the contrary, this Agreement shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of this Agreement that occurs
after the date hereof. I further agree that this Agreement does not waive or release any rights or claims that I may have, including under the Age Discrimination in Employment Act, which arise after the date I execute this Agreement. 

20. Governing Law and Severability. Federal or state law within the State of Illinois shall govern the validity, enforcement and
interpretation of this Agreement notwithstanding any state’s choice of law provisions to the contrary. In the event any portion of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein. 
 21. Complete Agreement. This Agreement constitutes the parties’
entire agreement and cancels, supersedes, and replaces any and all prior proposals, understandings, and agreements (written, oral or implied) regarding all matters addressed herein, except Employee shall continue to be bound by all obligations set
forth in any prior agreements, undertakings, waivers and assignments involving confidential information, inventions, non-competition, non-solicitation, non-inducement, patents, copyrights, trademarks and other intellectual property, and compliance
with laws and policies, specifically including but not limited to the Non-Competition, Non-Solicitation and Confidentiality Agreement(s) executed by Employee in connection with one or more Walgreens Restricted Stock Unit grants, as modified
immediately below, (the “Non-Competition Agreements”); provided, with respect to the Non-Competition Agreements previously executed by Employee, (i) the non-competition covenant under the restricted stock unit award dated
August 15, 2011 shall be deemed to read as provided in Employee’s restricted stock unit award dated November 1, 2012 and (ii) the Company and Employee acknowledge and agree that the businesses that shall be considered
“Competing Business Lines,” as defined therein, shall be limited to the entities set forth on a list provided by the Company to Employee concurrently with this Agreement. The terms of this Agreement may not be altered or modified except by
written agreement of Employee and the Company. In connection with this Agreement’s acceptance and execution, neither Employee nor the Company is relying on any representation or promise that is not expressly stated in this Agreement. 

22. Effective Date of this Agreement. Employee acknowledges that payment of the Retirement Vesting Benefit will be delayed until this
Agreement has become effective, enforceable and irrevocable. Employee agrees and acknowledges that Employee must execute this Agreement within 21 days following the Retirement Date. This Agreement will become

  
 5 

 
effective, enforceable and irrevocable on the eighth day after the date on which it is executed by Employee. During the seven-day period following the date on which Employee executes this
Agreement, Employee may revoke his agreement to accept this Agreement by indicating his revocation in writing to the General Counsel of WBA. If Employee exercises his right to revoke this Agreement, Employee shall not be eligible to receive and
shall forfeit his right to receive the Retirement Vesting Benefit, and to the extent such payments or benefits have already been made, Employee agrees that he will immediately reimburse the Company for the amounts of such promises and benefits. 

23. BY SIGNING THIS AGREEMENT, I REPRESENT AND AGREE THAT: 

(a) I HAVE READ IT CAREFULLY; AND I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO,
RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED; 
 (b) I VOLUNTARILY CONSENT TO EVERYTHING IN THIS AGREEMENT; 

(c) THE COMPANY HAS ADVISED ME TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS AGREEMENT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND
CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION; 
 (d) I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS
AGREEMENT TO CONSIDER THIS AGREEMENT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS AGREEMENT ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 21-DAY PERIOD; 

(e) I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS AGREEMENT TO REVOKE IT AND THAT THIS AGREEMENT SHALL NOT BECOME
EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED; 
 (f) I HAVE SIGNED THIS AGREEMENT KNOWINGLY AND VOLUNTARILY AND WITH THE
ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 
 (g) I AGREE THAT THE PROVISIONS OF THIS AGREEMENT MAY NOT BE AMENDED,
WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME. 
 24.
Counterparts and Facsimile Signatures. This Agreement may be executed in counterparts which, taken together, constitute a single, enforceable instrument. 

  
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 25. Full Knowledge and Authority to Sign. Employee, WBA and Walgreens attest that each of
them has the authority to enter into this Agreement (including the provisions set forth on Exhibit A hereto), that no promise or inducement other than as stated herein has been offered for this Agreement, that they are legally competent to
execute this Agreement, and that they accept the full responsibility therefor. WBA and Walgreens each further acknowledges that the individuals set forth below have full corporate power and authority to execute this Agreement on behalf of WBA and
Walgreens, respectively, and to bind WBA and Walgreens, respectively, in all respects. 
 Entered and Agreed to: 

 

					
	Dated: January 9, 2015	 	 /s/ Gregory D. Wasson

		 	Gregory D. Wasson
		
	Dated: January 9, 2015	 	Walgreen Co.
			
		 	By:	  	 /s/ Alexander Gourlay

		 		  	Name: Alexander Gourlay
		 		  	Title: President
		
	Dated: January 9, 2015	 	Walgreens Boots Alliance, Inc.
			
		 	By:	  	 /s/ Thomas J. Sabatino, Jr.

		 		  	Name: Thomas J. Sabatino, Jr.
		 		  	Title: Executive Vice President, Global Chief Legal and Administrative Officer and Corporate Secretary

 EXHIBIT A 

Summary of Estimated Benefits for Gregory D. Wasson 

This is a summary of the separation benefits that Employee is eligible to receive upon his retirement as contemplated by this Agreement. It is only for
planning purposes and may change as more current records become available. Employee’s termination of employment due to retirement will occur on the Retirement Date, but certain separation benefits are calculated on the basis of the
“Paid-Through Date”, which is the date on which Employee’s employment would terminate if Employee remained employed, following the Retirement Date, for the number of business days equal to the number of Employee’s accrued
but unpaid vacation days. All references to Paid-Through Date in this summary refer to June 4, 2015, which is the estimated Paid-Through Date as of the date of this Agreement. 

 

			
	Accrued Obligations	  	Accrued but unpaid base salary, accrued but unpaid annual incentive and any unused paid time off and banked vacation hours will be paid in a lump sum within four (4) weeks of the Retirement Date.
		
	Fiscal Year 2015 Bonus	  	Employee will receive a fiscal year 2015 annual bonus, calculated based on the actual performance of the Company, for such fiscal year (without any individual performance adjustment) and Employee’s bonus-eligible earnings
during such fiscal year, to be paid at the same time that annual bonuses for such fiscal year are paid to senior executives of WBA generally, but in no event later than two and one-half months following the end of the calendar year in which such
fiscal year ends.
		
	Outstanding Equity Awards	  	In connection with Employee’s retirement, certain of Employee’s outstanding stock options, restricted stock units (“RSUs”) and performance share awards (“PSAs”) will become vested, and
certain of such awards will be forfeited. See Schedule 1 below for a summary of the expected vesting or forfeiture, as applicable, of each outstanding award. Detailed terms and conditions for each outstanding award can be found in the
applicable Grant Agreements under the “grant details” link in Employee’s Fidelity account (www.Fidelity.com).
		
	Profit-Sharing Plan and Executive Deferred Profit-Sharing Plan	  	 Employee’s options for Employee’s account balance under the Profit Sharing Plan (the “Plan”) are:

 
 •   choose to have account
distributed to Employee in monthly or annual installments or a single lump sum, or
  

•   leave Employee’s money in the Plan and defer payment (and taxes) to some later date, but
Employee must begin receiving payments when Employee reaches age 70  1⁄2, or
  

•   defer income tax, by rolling Employee’s Plan account balance into a new employer’s
plan (if allowed) or an IRA.

  
 A-1 

			
		  	Employee will receive information regarding the timing and form of payment of Employee’s current balance in the Executive Deferred Profit-Sharing Plan.
		
	Deferred Compensation/ Capital Accumulation	  	Payments from Walgreen Co. Executive Deferred Compensation/Capital Accumulation Plans will start based on the normal retirement distribution schedule.
		
	Other Benefits	  	If Employee is currently enrolled in Walgreens 2014 medical (including prescription drug), dental and/or vision insurance, Employee’s coverage will continue through the last day of the month in which Employee’s employment
ceases. Disability insurance coverage ends on Employee’s last day worked. Employee will be eligible for COBRA coverage with respect to medical (including prescription drug), dental and/or vision insurance for the statutory COBRA
period.
		
	Retiree Medical & Prescription Drug Plan	  	Employee will be eligible to enroll in continued medical and prescription drug coverage for retirees, in accordance with the terms of that plan as in effect from time to time.
		
	Company Paid Life Insurance	  	$5,000 of Company-paid life insurance continued until 65th birthday, if Employee enrolls in the Retiree Medical & Prescription Drug Plan
		
	Retiree Walgreens Discount	  	Eligible
		
	Other Benefits	  	 •   Company-paid annual physical examination up to age 70

 
 •   Continuation of preferred
flight status within the United Airlines Mileage Plus Program

  
 A-2 

 SCHEDULE 1 

Stock Options 
  

																			
	 Grant Date
	  	Number of
Shares
Underlying
Stock Options
Granted &
Outstanding as
of Date of this
Agreement	 	  	Number of
Shares
Underlying
Vested Stock
Options	 	  	Exercise
Price	 	  	 Exercise Period
	  	Number of
Shares
Underlying
Forfeited
Stock Options	 
	 November 1, 2012
	  	 	400,072	  	  	 	400,072	  	  	$	35.50	  	  	January 9, 2015 through 60 months after the Paid-Through Date (but not later than the end of the original term)	  	 	0	  
	 November 1, 2013
	  	 	312,738	  	  	 	0	  	  	$	60.52	  	  	N/A	  	 	312,738	  
	 November 1, 2014
	  	 	295,340	  	  	 	0	  	  	$	64.22	  	  	N/A	  	 	295,340	  

 RSUs 
  

															
	 Grant Date
	  	Number of Shares
Underlying RSUs
Granted &
Outstanding as of
Date of this
Agreement	 	  	Number of Shares
Underlying Vested
RSUs	 	  	 Payment Schedule
	  	Number of Shares
Underlying
Forfeited RSUs	 
	 August 15, 2011
	  	 	35,191.132	  	  	 	35,191.132	  	  	6 months after Retirement Date	  	 	0	  
	 November 1, 2012
	  	 	77,981.148	  	  	 	77,981.148	  	  	6 months after Retirement Date	  	 	0	  
	 November 1, 2013
	  	 	53,408.600	  	  	 	0	  	  	N/A	  	 	53,408.600	  
	 November 1, 2014
	  	 	43,334.667	  	  	 	0	  	  	N/A	  	 	43,334.667	  

 PSAs 
  

															
	 Grant Date
	  	Number of Shares
Underlying Target
PSAs Granted &
Outstanding as of
Date of this
Agreement	 	  	Number of Shares
Underlying Vested
Target PSAs(1)	 	 	 Payment Schedule
	  	Number of Shares
Underlying
Forfeited PSAs(1)	 
	 November 1, 2012
	  	 	118,613	  	  	 	118,613	(2) 	 	As soon as administratively practicable following the end of the performance period.	  	 	0	(2) 
	 November 1, 2013
	  	 	89,045	  	  	 	51,940.92	(3) 	 	As soon as administratively practicable following the end of the performance period.	  	 	37,104.08	(3) 
	 November 1, 2014
	  	 	70,425	  	  	 	0	  	 	N/A	  	 	70,425	  

  
 A-3 

	(1)	Vested and forfeited performance shares will be determined based on actual performance through the end of the applicable performance period, which is currently unknown. Numbers shown in this table assume performance at
target levels. 

	(2)	No shares will be forfeited as a result of Employee’s retirement. However, the actual number of vested performance shares will be determined based on actual performance, which could result in vesting of an
additional number of shares, or forfeiture of all or a portion of these shares, depending on the level of achievement of the applicable performance goals. 

	(3)	Reflects a pro-rated number of target shares that are eligible to vest or be forfeited as a result of Employee’s retirement in accordance with the terms of the award, based on the number of full months of the
performance period completed prior to the Paid-Through Date (21 months). However, the actual number of performance shares that vest will be determined based on applying actual performance to the pro-rated target number of shares, which could result
in vesting of an additional number of shares, or forfeiture of all or an additional number of shares, depending on the level of achievement of the applicable performance goals. 

  
 A-4

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