Document:

Exhibit 10.1 

Assembly Biosciences, Inc.  

 

 

November 28 2016

 

 

PERSONAL AND CONFIDENTIAL

 

 

Lee D. Arnold, Ph.D.

#### ## ######## ######

############ ## #####

 

		Re:	General Release of Claims Agreement

 

Dear Lee:

 

This letter provides notice to you that effective today, November
28, 2016 (the “Separation Date”) your employment with Assembly Biosciences, Inc. (the “Company”)
is terminating without Cause, as such term is defined in your July 11, 2014 Employment Agreement (the “Employment Agreement”).
The Company thanks you for your contributions and wishes you well in your future endeavors.

 

This letter also sets forth the terms of the general release
of claims agreement between you and the Company (this “Agreement”) referenced in Section 9(b) of the Employment
Agreement and you acknowledge that this Agreement becoming effective is a condition of your right to receive the Separation Benefits
defined in such Section 9(b). Finally, this Agreement offers you additional benefits beyond the Separation Benefits in return for
you providing transition and consulting services to the Company, as described in more detail below. You agree that such benefits
set forth in Sections 2 and 3 below, to the extent that the specified conditions have been satisfied, are due solely from the Company
and that the Company’s affiliated professional employer organization, Insperity PEO Services, L.P. (“Insperity”),
has no independent obligation to provide such benefits, even though payment of them may be processed through Insperity.

 

Regardless of whether you enter into this Agreement, you shall
be entitled to the Accrued Benefits as defined in Section 9(a) of the Employment Agreement. Also regardless of whether you enter
into this Agreement, you will remain bound by your continuing obligations to the Company under your February 22, 2016 Proprietary
Information and Inventions Agreement (the “PIIA”) and the Employment Agreement (the “Continuing Obligations”).
Such Continuing Obligations include, without limitation, your confidentiality obligations, return of property obligations, non-competition
obligations, and non-solicitation obligations.

 

The remainder of this letter sets forth the terms of the Agreement.
You acknowledge that you are entering into this Agreement knowingly and voluntarily. With those understandings, you and the Company
agree as follows:

 

     

     

    

 

1.       Separation
from Employment

 

This confirms that your employment with the Company and Insperity
shall terminate on the Separation Date. Accordingly, your right to participate in the employee benefit plans of the Company and
Insperity shall cease on the Separation Date, except as noted in Section 2(d) below, if applicable. You acknowledge that you will
not have earned an Annual Milestone Bonus (as defined in the Employment Agreement) for 2016.

 

2.       Separation
Benefits

 

Subject to this Agreement becoming effective
and your compliance with this Agreement and the Continuing Obligations, the Company shall provide you with the following “Separation
Benefits” in accordance with Section 9(b) of the Employment Agreement:

 

(a)       Separation
Pay. The Company shall provide you with continued payment of your final Base Salary (which is at the annual rate of $326,000)
for a period of six (6) months following the Separation Date, less applicable taxes and withholdings (such payment being the “Separation
Pay” and such six (6) month period being the “Separation Pay Period”). The first installment of the
Separation Pay will be paid on the Company’s first regular payday occurring after the Effective Date (as
defined in Section 7(j)) in an amount equal to the sum of payments of Base Salary, less applicable taxes and withholdings, that
would have been paid if you had remained employed with the Company for the period from the Separation Date through the payment
date. The remaining installments will be paid until the end of the Separation Pay Period at the same rate as the Base Salary, less
applicable taxes and withholdings, in accordance with the Company’s normal payroll practices for its employees.

 

(b)       Acceleration
of Equity Awards. All Equity Awards (as defined in the Employment Agreement) which would have vested during the six (6) months
following the Separation Date shall accelerate and vest on the Effective Date, as set forth below:

 

	Equity Award	Number of 

Shares 

Underlying 

Grant	Date of Grant	Vested Shares 

as of Separation 

Date	Shares to be 

Accelerated, 

Subject to the 

Conditions 

Stated in 

Section 2 of this 

Agreement
	2014 Award (as defined below)	155,412	May 16, 2014	
        133,827

         
	21,585

 

(c)       Extension
of Exercise Period. The exercise period for all vested shares underlying the stock options granted to you on May 16, 2014 (as
amended prior to the date hereof and corrected pursuant to Section 7(l) hereof, the “2014 Award”) shall be extended
until the end of its term (May 15, 2024) unless earlier terminated in accordance with the 2014 Award.

 

    2 

     

    

 

(d)       Health
Benefit. Provided that you properly and timely elect to continue your health insurance benefits (including health, dental and/or
vision) under COBRA after the date of termination, the Company shall reimburse you for your applicable COBRA premiums for the Separation
Pay Period or until you become eligible under another employer’s health insurance, whichever is earlier (the “Health
Benefit”).

 

3.       Additional
Benefits; Transition Services

 

Provided that this Agreement becomes effective, you comply with
its terms and the Continuing Obligations, and you promptly and satisfactorily perform the Transition Services (defined below) and
the consulting services described in Section 6, the Company shall, for purposes of your Separation Pay described in Section 2(a)
and your Health Benefit described in Section 2(d), extend the Separation Pay Period from six (6) months after the Separation Date
to ten (10) months after the Separation Date (the “Additional Benefits”).

 

For purposes of this Agreement, the “Transition Services”
shall be services requested by the Company’s Chief Executive Officer on an as-needed basis between the Separation Date and
December 31, 2016 (the “Transition Period”) for the purpose of transitioning your duties and responsibilities
to others at the Company. You shall perform the Transition Services on an independent contractor basis at a remote location of
your choice, unless requested to perform the Transition Services in the Company’s offices.

 

4.       Release
of Claims

 

In consideration for, among other terms, the Separation Benefits
and the Additional Benefits, to which you acknowledge you would otherwise not be entitled, you, on behalf of yourself and your
heirs, executors, representatives, agents, insurers, administrators, successors and assigns (collectively the “Releasors”)
voluntarily release and forever discharge the Company, its affiliated and related entities (including, without limitation, Insperity),
its and their respective predecessors, successors and assigns, its and their respective employee benefit plans and fiduciaries
of such plans, and the current and former officers, directors, shareholders, employees, attorneys, accountants and agents of each
of the foregoing in their official and personal capacities (collectively referred to as the “Releasees”) generally
from all claims, demands, debts, damages and liabilities of every name and nature, known or unknown (“Claims”)
that, as of the date when you sign this Agreement, you and the other Releasors have, ever had, now claim to have or ever claimed
to have had against any or all of the Releasees. This release includes, without limitation, all Claims: relating to your employment
by the Company, the Company’s decision to terminate your employment, and the termination of your employment; of wrongful
discharge or violation of public policy; of breach of contract; of defamation or other torts; of retaliation or discrimination
under federal, state or local law (including, without limitation, Claims of discrimination or retaliation under the Age Discrimination
in Employment Act, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, the New York State Human Rights
Law, the New York City Human Rights Law, and the Indiana Civil Rights Law); under any other federal or state statute (including,
without limitation, Claims under the Fair Labor Standards Act and the Family and Medical Leave Act); for wages, bonuses, incentive
compensation, commissions, stock, stock options, vacation pay or any other compensation or benefits, either under the New York
Labor Law, the Indiana Wage Payment and Wage Claims Acts, or otherwise; and for damages or other remedies of any sort, including,
without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees; provided, however,
that this release shall not affect your vested rights under the Company’s Section 401(k) plan or your rights under this
Agreement, and shall not waive any rights that cannot be waived as a matter of law.

 

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5.       Non-Disparagement

 

You agree not to make any disparaging statements concerning
the Company, or any of its affiliates (including, without limitation, Insperity), or its or their current or former officers, directors,
shareholders, employees or agents, or any of the Company’s or its respective affiliates’ products or services. These
non-disparagement obligations shall not in any way affect your obligation to testify truthfully in any legal proceeding.

 

6.       Consulting
Services

 

You agree to provide consulting services to the Company, on
an independent contractor basis, and as requested by the Chief Executive Officer, for up to four (4) hours per week during the
period between January 1, 2017 and the end of the Separation Pay Period; provided that the Company shall not require you
to provide any such services at any times that would unreasonably interfere with your search for employment or with any subsequent
employment. You agree and acknowledge that the terms of the PIIA shall be applicable to any services performed pursuant to the
Transition Services and the consulting services.

 

7.       Other
Provisions

 

(a)       Termination
of Payments. If you breach any of your obligations under this Agreement or your Continuing Obligations, in addition to any
other legal or equitable remedies it may have for such breach, the Company shall have the right to terminate its payments to you
or for your benefit under this Agreement. The termination of such payments in the event of your breach will not affect your obligations
under this Agreement or your Continuing Obligations.

 

(b)       Protected
Disclosures and Other Protected Actions. Nothing contained in this Agreement limits your ability to file a charge or complaint
with any federal, state or local governmental agency or commission (a “Government Agency”). In addition, nothing
contained in this Agreement limits your ability to communicate with any Government Agency or otherwise participate in any investigation
or proceeding that may be conducted by any Government Agency, including your ability to provide documents or other information,
without notice to the Company, nor does anything contained in this Agreement apply to truthful testimony in litigation. If you
file any charge or complaint with any Government Agency and if the Government Agency pursues any claim on your behalf, or if any
other third party pursues any claim on your behalf, you waive any right to monetary or other individualized relief (either individually,
or as part of any collective or class action); provided that nothing in this Agreement limits any right you may have to
receive a whistleblower award or bounty for information provided to the Securities and Exchange Commission.

 

    4 

     

    

 

(c)       Absence
of Reliance. In signing this Agreement, you are not relying upon any promises or representations made by anyone at or on behalf
of the Company or Insperity.

 

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

 

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

 

(f)       Jurisdiction.
You and the Company hereby agree that the state and federal courts situated in Indianapolis, Indiana shall have the exclusive jurisdiction
to consider any matters related to this Agreement, including without limitation any claim of a violation of this Agreement. With
respect to any such court action, you submit to the jurisdiction of such courts and you acknowledge that venue in such courts is
proper.

 

(g)       Relief.
You agree that it would be difficult to measure any harm caused to the Company that might result from any breach by you of your
promises set forth in Section 5 of this Agreement. You further agree that money damages would be an inadequate remedy for any breach
Section 5. Accordingly, you agree that if you breach, or propose to breach, Section 5, the Company shall be entitled, in addition
to all other remedies it may have, to an injunction or other appropriate equitable relief to restrain any such breach, without
showing or proving any actual damage to the Company and without the necessity of posting a bond.

 

(h)       Governing
Law; Interpretation. This Agreement shall be interpreted and enforced under the laws of the State of Indiana, without regard
to conflict of law principles. In the event of any dispute, this Agreement is intended by the parties to be construed as a whole,
to be interpreted in accordance with its fair meaning, and not to be construed strictly for or against either you or the Company
or the “drafter” of all or any portion of this Agreement.

 

(i)       Entire
Agreement. This Agreement constitutes the entire agreement between you and the Company. This Agreement supersedes any previous
agreements or understandings between you and the Company, except the Continuing Obligations, the Company’s applicable stock
option plan and your stock option agreements (as such documents may be amended by Sections 2(b), 2(c) and 3(b) above), and any
other obligations specifically preserved in this Agreement.

 

    5 

     

    

 

(j)       Time
for Consideration; Effective Date. You acknowledge that you have knowingly and voluntarily entered into this Agreement and
that the Company advises you to consult with an attorney before signing this Agreement. You understand and acknowledge that you
have been given the opportunity to consider this Agreement for twenty-one (21) days from your receipt of this Agreement before
signing it (the “Consideration Period”). To accept this Agreement, you must return a signed original or a signed
PDF copy of this Agreement so that it is received by Elizabeth Lacy (elizabeth@assemblybio.com) at or before the expiration of
the Consideration Period. If you sign this Agreement before the end of the Consideration Period, you acknowledge that such decision
was entirely voluntary and that you had the opportunity to consider this Agreement for the entire Consideration Period. For the
period of seven (7) days from the date when you sign this Agreement, you have the right to revoke this Agreement by written notice
to Ms. Lacy, provided that such notice is delivered so that it is received at or before the expiration of the seven (7) day revocation
period. This Agreement shall not become effective or enforceable during the revocation period. This Agreement shall become effective
on the first business day following the expiration of the revocation period (the “Effective Date”).

 

(k)       Counterparts.
This Agreement may be executed in separate counterparts. When both counterparts are signed, they shall be treated together as one
and the same document.

 

(l)       Amendment
to 2014 Award. You and Assembly Pharmaceuticals, Inc. entered into a Non-Qualified Stock Option Agreement grant dated May 16,
2014, which provided for the right to purchase 500,000 shares of Common Stock of Assembly Pharmaceuticals, Inc. (the “Original
2014 Award”), which Original 2014 Award was amended by that certain First Amendment to Non-Qualified Stock Option Agreement
dated July 2014 and Second Amendment to Non-Qualified Stock Option Agreement date December 23, 2014 (the Original Award, as amended,
the “Amended 2014 Award”) following the merger with Ventrus Biosciences, Inc. The Amended 2014 Award erroneously
provided that the Amended 2014 Award is exercisable for 155,420 shares of common stock of the Company on a post-merger, post-reverse
stock split basis when the actual number is 155,412. Accordingly, by execution below you and Company agree and acknowledge that
the Amended 2014 Award is exercisable for 155,412 shares of common stock of the Company (the Amended 2014 Award, as agreed, corrected
and acknowledged hereby, the “2014 Award”).

 

[signature page follows]

 

 

    6 

     

    

Please indicate your agreement to the terms of this Agreement
by signing and returning to Ms. Lacy the original or a PDF copy of this letter within the time period set forth above.

 

Sincerely,

 

ASSEMBLY BIOSCIENCES, INC.

 

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By: 	/s/ Derek Small	 	December 7, 2016	 
	 	Derek Small	 	Date	 
	 	President & Chief Executive Officer	 	 	 

 

 

You are advised to consult with an attorney before signing this
Agreement. This is a legal document. Your signature will commit you to its terms. By signing below, you acknowledge that you have
carefully read and fully understand all of the provisions of this Agreement and that you are knowingly and voluntarily entering
into this Agreement.

 

	 	 	 	 
	/s/ Lee D. Arnold	 	December 6, 2016	 
	Lee D. Arnold, Ph.D.	 	Date	 
	 	 	 	 

 

 

    7Exhibit 10.1

 

DIPLOMAT PHARMACY, INC.

Form of Stock Option Award Agreement

Under 2014 Omnibus Incentive Plan

 

Grantee:

Grant Date:

Number of Option Shares:

Exercise Price per Option Share:

 

1.             Grant of Option.  Pursuant to the Diplomat Pharmacy, Inc. 2014 Omnibus Incentive Plan (the “Plan”), effective as of the Grant Date set forth above, Diplomat Pharmacy, Inc. (the “Company”) grants to the Grantee identified above an option (the “Option”) to purchase up to (but not in excess of)      shares of the Company’s common stock, no par value (the “Option Shares”), at the Exercise Price per Option Share set forth above, on the terms and subject to the conditions set forth in this Stock Option Award Agreement (this “Agreement”) and in the Plan. The Option is intended to be a Non-qualified Stock Option. Capitalized terms not defined in this Agreement have the meanings ascribed to such terms in the Plan.

 

2.             Term of Option.  The Option shall expire on the ten year anniversary of the Grant Date (the “Expiration Date”), subject to earlier expiration following termination of the Grantee’s employment with the Company or a Subsidiary as provided in Paragraph 6 below.

 

3.             Normal Vesting.   Grantee may exercise the Option only if and to the extent that the Option has become vested. For this purpose and except as provided in Paragraphs 4  and 6  below, the Option shall become vested as to 25% of the Option Shares on each of the first, second, third and fourth anniversaries of the Grant Date, provided that the Option shall cease vesting upon termination of Grantee’s employment with the Company or a Subsidiary for any reason whatsoever and the portion of the Option scheduled to vest on any such vesting date shall vest only if Grantee has remained continuously employed by the Company or a Subsidiary from the Grant Date to such vesting date.

 

4.             Accelerated Vesting upon Termination after Change in Control.  Notwithstanding Paragraph 3 above, upon the termination without Cause by the Company or a Subsidiary (or a successor, as applicable) of Grantee’s service as an employee or if Grantee resigns for Good Reason (as defined below) in connection with or within one year following the consummation of a Change in Control, then the vesting of this Option shall accelerate such that 100% of the Option Shares then unvested shall vest, effective immediately prior to such termination of Grantee’s employment.  In the event of a Change in Control, if the Company’s successor (which, for the purposes of this provision, is the acquirer of the Company’s assets in a Change in Control resulting from the sale of all or substantially all of the Company’s assets) does not agree to assume this Option, or to substitute an equivalent award or right for this Option, and if Grantee has remained continuously employed from the Grant Date to the date of the Change in Control, and does not voluntarily resign without continuing with the Company’s successor, then the vesting of Option Shares shall accelerate such that this Option shall be vested to the same extent

 

 

as if Grantee had been terminated without Cause as described in this Paragraph 4, effective immediately prior to, and contingent upon, the consummation of such Change in Control.  In the event the Option accelerates pursuant to this Paragraph 4, any portion of the Option that is vested or accelerated on such date may be exercised only during the one year period following such termination, but in no event after the Expiration Date.

 

As used herein, “Good Reason” shall mean Grantee’s resignation due to the occurrence of any of the following conditions which occurs without Grantee’s written consent, provided that the requirements regarding advance notice and an opportunity to cure set forth below are satisfied:  (1) a reduction of Grantee’s then current base salary by 10% or more unless such reduction is part of a generalized salary reduction affecting similarly situated employees; (2) a change in Grantee’s position with the Company that materially reduces Grantee’s duties, level of authority or responsibility; (3) a material breach of any employment agreement between Grantee and the Company or a Subsidiary (if any); or (4) the Company conditions Grantee’s continued service with the Company on Grantee’s being transferred to a site of employment that would increase Grantee’s one-way commute by more than 50 miles from Grantee’s then principal residence.  In order for Grantee to resign for Good Reason, Grantee must provide written notice to the Company of the existence of the Good Reason condition within 30 days of the initial existence of such Good Reason condition.  Upon receipt of such notice, the Company will have 30 days during which it may remedy the Good Reason condition and not be required to provide for the vesting acceleration described herein as a result of such proposed resignation.  If the Good Reason condition is not remedied within such 30-day period, Grantee may resign based on the Good Reason condition specified in the notice effective no later than 30 days following the expiration of the 30-day cure period.

 

5.             Procedure for Exercise and Payment of Exercise Price.  Grantee may exercise all or any portion of the Option, to the extent it is vested and outstanding, at any time prior to its expiration, by (i) delivering a properly executed written notice of exercise to the Company, in such form as shall be approved by the Company, specifying the number of Option Shares to be purchased, and (ii) paying to the Company the aggregate Exercise Price of the Option Shares to be purchased. Grantee shall pay the aggregate Exercise Price of the Option Shares to be purchased on exercise of the Option (i) by payment of such aggregate Exercise Price in cash or by certified or bank cashier’s check payable to the order of the Company, (ii) by delivery of irrevocable instructions to a stockbroker to sell immediately some or all of the Option Shares acquired by exercise of the Option and to promptly deliver to the Company an amount of the sale proceeds sufficient to pay the aggregate Exercise Price, or (iii) in the discretion of the Committee, by such other cashless means authorized by Paragraph 6(g) of the Plan.

 

6.             Termination of Employment.  Upon termination of Grantee’s employment with the Company or a Subsidiary for any reason (other than as set forth in Paragraph 4 above), vesting of the Option shall terminate and any portion of the Option that is unvested at the time of termination of Grantee’s employment with the Company or a Subsidiary shall expire, terminate and be forfeited and of no further force or effect. If the Company or a Subsidiary terminates Grantee’s employment for Cause, any portion of the Option which is vested at the time of such termination shall also expire, terminate and be forfeited and of no further force or effect. If Grantee’s employment with the Company or a Subsidiary terminates due to the death or Disability of Grantee, any portion of the Option that is vested on the date of such termination

 

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may be exercised only during the one year period following such termination, but in no event after the Expiration Date. If Grantee’s employment with Company or a Subsidiary terminates for any reason other than death, Disability or Cause, or as set forth in Paragraph 4 above, any portion of the Option that is vested on the date of such termination may be exercised only during the 90 day period following such termination, but in no event after the Expiration Date.

 

7.             Non-Transferability of Option.  The Option is personal to Grantee. Unless permitted otherwise in the discretion of the Committee, the Option is not transferable by Grantee (other than by will or the laws of descent and distribution) and, during Grantee’s lifetime, only Grantee (or his guardian or legal representative) may exercise the Option. In the event of Grantee’s death, the Option may be exercised (i) by the executor or administrator of Grantee’s estate or the person or persons to whom Grantee’s rights under the Option shall pass by will or the laws of descent and distribution, and (ii) to the extent and during the period Grantee was allowed to exercise the Option at the date of Grantee’s death.

 

8.             Restrictive Covenants; Compensation Recovery.  By signing this Agreement, Grantee acknowledges and agrees that the Option and the Option Shares (and any stock or stock-based award previously granted by the Company or a Subsidiary to Grantee under the Plan or otherwise) shall (i) be subject to forfeiture as a result of Grantee’s violation of any agreement with the Company or a Subsidiary regarding non-competition, non-solicitation, confidentiality, non-disparagement, inventions and/or similar restrictive covenants (the “Restrictive Covenants Agreement”), and (ii) be subject to forfeiture and/or recovery under any compensation recovery policy that may be adopted from time to time by the Company or any of its Subsidiaries. For avoidance of doubt, compensation recovery rights to the Option Shares or other shares of Company stock (including shares of stock acquired under previously granted stock-based awards) shall extend to the proceeds realized by Grantee due to sale or other transfer of such stock. Grantee’s prior execution of the Restrictive Covenants Agreement was a material inducement for the Company’s grant of the Option under this Agreement.

 

9.             Conformity with Plan.  The Option is intended to conform in all respects with and is subject to all applicable provisions of the Plan, which is incorporated herein by reference. Any inconsistencies between the provisions of this Agreement and the Plan shall be resolved in accordance with the provisions of the Plan.

 

10.          Rights as a Participant.  Nothing contained in this Agreement shall (i) interfere with or limit in any way the right of the Company or a Subsidiary to terminate Grantee’s employment at any time and for any or no reason, (ii) confer upon Grantee any right to be selected again as a Plan Participant, or (iii) require or permit any adjustment to the number of Option Shares or to the Exercise Price upon or as a result of the occurrence of any subsequent event (except as provided in Paragraph 13 of the Plan).

 

11.          Withholding of Taxes.  Any income or employment tax required to be withheld upon exercise of the Option shall be paid by Grantee to the Company or a Subsidiary (whichever is the employer of Grantee), or the Company or a Subsidiary (whichever is the employer of Grantee) may withhold such tax from the cash compensation otherwise payable to Grantee. Alternatively, Grantee may pay any such withholding tax (i) by delivery of irrevocable instructions to a stockbroker to sell immediately some or all of the Option Shares acquired by

 

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exercise of the Option and to promptly deliver to the Company an amount of the sale proceeds sufficient to pay the withholding tax due on exercise of the Option, or (ii) such other cashless means as may be permitted under law and in the discretion of the Committee.

 

12.          Resale Restrictions.  The Company currently has an effective registration statement on file with the Securities and Exchange Commission with respect to the Option Shares. The Company currently intends to maintain this registration, but has no obligation to do so. If the registration ceases to be effective, Grantee will not be able to sell or transfer Option Shares issued to Grantee upon exercise of the Option unless an exemption from registration under applicable securities laws is available. Grantee agrees that any resale by Grantee of Option Shares acquired upon exercise of the Option shall comply in all respects with the requirements of all applicable securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act of 1933, as amended, the Exchange Act, and the respective rules and regulations promulgated thereunder) and any other law, rule or regulation applicable thereto, as such laws, rules and regulations may be amended from time to time. The Company shall not be obligated to issue the Option Shares or permit their resale if such issuance or resale would violate any such requirements.

 

13.          Consent to Transfer of Personal Data.  In administering this Agreement and the Plan, or to comply with applicable legal, regulatory, tax or accounting requirements, it may be necessary for the Company to transfer certain Grantee personal data to a Subsidiary, or to outside service providers, or to governmental agencies. By signing this Agreement and accepting the award of the Option, Grantee consents, to the fullest extent permitted by law, to the use and transfer, electronically or otherwise, of Grantee’s personal data to such entities for such purposes.

 

14.          Consent to Electronic Delivery.  In lieu of receiving documents in hard copy paper format, Grantee agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other agreements, documents, forms and communications) in connection with the Option and any other prior or future incentive award or program made or offered by the Company, a Subsidiary and their predecessors or successors. Electronic delivery of a document to Grantee may be via a Company or Subsidiary email system or by reference to a location on a Company or Subsidiary intranet site to which Grantee has access.

 

15.          No Ownership of Option Shares Until Exercise.  Prior to the Grantee’s exercise of the Option and purchase of the Option Shares, the Grantee shall not possess any incidents of ownership of the Option Shares, including voting or dividend rights.

 

16.          Notices.  Any and all notices, designations, consents, offers, acceptances and any other communications provided for herein shall be given in writing and shall be delivered either personally or by registered or certified mail, postage prepaid, which shall be addressed, in the case of the Company, to the Chief Financial Officer of the Company at the principal office of the Company and, in the case of the Grantee, to the Grantee’s address appearing on the books of the Company or to such other address as may be designated in writing by the Grantee.

 

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17.          Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and of the Grantee and the beneficiaries, executors, administrators, heirs and successors of the Grantee.

 

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

 

19.          Modifications.  Except as provided in the Plan, no change, modification or waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the parties hereto.

 

20.          Entire Agreement.  This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and therein and supersede all prior communications, representations and negotiations in respect thereto.

 

21.          Governing Law.  This Agreement and the rights of the Grantee hereunder shall be governed, construed, and administered in accordance with and governed by the laws of the State of Michigan (regardless of the laws that might otherwise govern under applicable principles of conflicts of laws of such jurisdiction or any other jurisdiction).

 

22.          Headings.  The headings of the Paragraphs hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

 

23.          Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

24.          Committee Determinations Final and Binding.  The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision shall be binding and conclusive upon the Grantee and his/her legal representative in respect of any questions arising under the Plan or this Agreement.

 

[signature page follows]

 

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Very Truly Yours,
    
	
 
    	
 
    
	
 
    	
Diplomat Pharmacy, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Its:
    	
 
    

 

 

The undersigned hereby acknowledges having read this Agreement and the Plan and agrees to be bound by all provisions set forth herein and in the Plan.

 

 

	
Dated as of:
    	
 
    	
 
    	
GRANTEE:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
						

 

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