Document:

avxs_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			CONFIDENTIAL TREATMENT REQUESTED
		

		
			 
		

		
			EXECUTION VERSION
		

		
			 
		

		
			 
		

		
			LICENSE AGREEMENT
		

		
			 
		

		
			 
		

		
			 
		

		
			By and between
		

		
			 
		

		
			Généthon
		

		
			 
		

		
			and 
		

		
			 
		

		
			AveXis, Inc.
		

		
			 
		

		
			 
		

		
			

		 

		

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			TABLE OF CONTENTS
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						 

					
					
						    

					
					
						Page

				
	
					
						BACKGROUND

					
					
						 

					
3
				
	
					
						ARTICLE 1.

					
					
						 

					
					
						DEFINITIONS AND INTERPRETATION

					
					
						 

					
4
				
	
					
						ARTICLE 2.

					
					
						 

					
					
						GRANT OF RIGHTS

					
					
						 

					
8
				
	
					
						ARTICLE 3.

					
					
						 

					
					
						SUBLICENSING

					
					
						 

					
9
				
	
					
						ARTICLE 4.

					
					
						 

					
					
						LICENSEE UNDERTAKINGS AND PERFORMANCE

					
					
						 

					
9
				
	
					
						ARTICLE 5.

					
					
						 

					
					
						FINANCIAL CONSIDERATION

					
					
						 

					
10
				
	
					
						ARTICLE 6.

					
					
						 

					
					
						INTELLECTUAL PROPERTY

					
					
						 

					
13
				
	
					
						ARTICLE 7.

					
					
						 

					
					
						CONFIDENTIALITY

					
					
						 

					
14
				
	
					
						ARTICLE 8.

					
					
						 

					
					
						RECORD KEEPING – AUDIT

					
					
						 

					
15
				
	
					
						ARTICLE 9.

					
					
						 

					
					
						REPORTS ON PROGRESS, SALES AND PAYMENTS

					
					
						 

					
16
				
	
					
						ARTICLE 10.

					
					
						 

					
					
						PROSECUTION AND MAINTENANCE

					
					
						 

					
16
				
	
					
						ARTICLE 11.

					
					
						 

					
					
						INFRINGEMENT AND ENFORCEMENT

					
					
						 

					
17
				
	
					
						ARTICLE 12.

					
					
						 

					
					
						TERM, TERMINATION AND MODIFICATION OF RIGHTS

					
					
						 

					
18
				
	
					
						ARTICLE 13.

					
					
						 

					
					
						REPRESENTATION AND WARRANTIES

					
					
						 

					
20
				
	
					
						ARTICLE 14.

					
					
						 

					
					
						INDEMNIFICATION, INSURANCE AND LIABILITY

					
					
						 

					
21
				
	
					
						ARTICLE 15.

					
					
						 

					
					
						PUBLICATION AND PUBLICITY

					
					
						 

					
22
				
	
					
						ARTICLE 16.

					
					
						 

					
					
						DISPUTE RESOLUTION

					
					
						 

					
23
				
	
					
						ARTICLE 17.

					
					
						 

					
					
						MISCELLANEOUS

					
					
						 

					
23
				
	
					
						Exhibit A

					
					
						 

					
					
						 

					
					
						 

					
28
				
	
					
						Exhibit B

					
					
						 

					
					
						 

					
					
						 

					
29
				

		
			 
		

		
			
		

		
			

		 

		

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			This license agreement (“Agreement”) is effective as of March 9, 2018 (“Effective Date”) made by and between AveXis, Inc., a corporation organized under the laws of the State of Delaware, having its principal place of business at 2275 Half Day Road, Suite 200, Bannockburn, IL 60015 (“AveXis” or “Licensee”) and Genethon, a French non-profit organization organized under the French law of July 1, 1901, having its principal place of business at 1 bis rue de l’Internationale, 91002 Evry Cedex, France (“Genethon”), acting in its own name and for its own behalf as well as in the name and on behalf of Centre National de la Recherche Scientifique (Scientific and Technological Public Institute), having its principal place of business at 3 rue Michel-Ange, 75794 Paris Cedex 16 France, and for business identification (SIRET) number: 180089013 04033 (“CNRS”).
		

		
			 
		

		
			Each of Genethon and CNRS may be referred to in this Agreement as “Licensor”. All rights and obligations set forth in this Agreement shall be performed by Genethon, acting in its own name and for its own behalf as well as in the name and on behalf of CNRS.
		

		
			 
		

		
			Each of Licensor and Licensee may be referred to in this Agreement individually as a “Party” or together as the “Parties.”
		

		
			 
		

		
			BACKGROUND
		

		
			 
		

		
			WHEREAS, Genethon is a leading center for the development of gene therapies for rare diseases.
		

		
			 
		

		
			WHEREAS, AveXis is a clinical-stage gene therapy company focused on bringing gene therapy out of the lab and into the clinical setting for patients and families suffering from rare and orphan neurological genetic diseases.
		

		
			 
		

		
			WHEREAS, AveXis is currently developing a treatment for spinal muscular atrophy (SMA).
		

		
			 
		

		
			WHEREAS, Genethon is co-owner of the Licensed Patents as attached in Exhibit A that are necessary for the administration of such treatment.
		

		
			 
		

		
			WHEREAS, Licensor desires to grant rights under the Licensed Patents to Licensee through a license to enable the commercial Development of gene therapies in the Field.
		

		
			 
		

		
			WHEREAS, Licensee desires to obtain a license under the Licensed Patents, in order to Develop gene therapies in the Field and, if such efforts are successful, to Develop and Commercialize resulting gene therapy products.
		

		
			 
		

		
			 
		

		
			NOW, THEREFORE, the Parties hereby agree as follows:
		

		
			
		

		
			

		 

		

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			ARTICLE 1.     DEFINITIONS AND INTERPRETATION
		

		
			 
		

		
			1.1.     Definitions
		

		
			 
		

		
			Unless the context otherwise requires, the terms in this Agreement, when used with initial capital letters, shall have the meanings set forth below or at their first use in this Agreement:
		

		
			 
		

		
			“AAV Vector” means the recombinant adeno-associated virus vector as defined in the Licensed Patents.
		

		
			 
		

		
			“AAV9” means (a) the recombinant adeno-associated virus serotype 9 vector with the specified sequence set forth in GenBank (protein id AAS99264.1) and (b) any recombinant adeno-associated virus derivatives of such serotype 9 vector covered by a Licensed Patent.
		

		
			 
		

		
			“Abandon” (or “Abandonment”) means, with respect to a Licensed Product and a country in the Territory:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			a failure from Licensee and/or its Affiliates and/or sublicensees to initiate or conduct material Development activities or Commercial activities with respect to particular Licensed Product in any country of the  Territory during any consecutive twelve (12) month period;  provided, that such twelve (12) month period shall automatically be extended if any failure to start or conduct material Development activities is a result of any Force Majeure event or any clinical or regulatory hold imposed by the applicable Regulatory Authority or is otherwise outside the reasonable control of Licensee and/or its Affiliates and/or sublicensees; or

		
			 
		

			
	
			
				 (b)
			

			
	
			
			an affirmative decision by Licensee and/or its Affiliates and/or sublicensees (which shall be provided in writing to Licensor) to permanently discontinue all Commercialization activities with respect to a particular Licensed Product in such country; provided, that such decision shall not constitute notice of Abandonment if any decision to discontinue Commercialization activities is a result of any Force Majeure event or any clinical or regulatory hold imposed by the applicable Regulatory Authority or is otherwise outside the reasonable control of Licensee and/or its Affiliates and/or sublicensees.

		
			 
		

		
			“Abandonment Cure Period” means the hundred twenty (120) days period after the date of the written notice of Abandon, as provided under paragraph (a) above, from Licensor to Licensee.
		

		
			 
		

		
			“Affiliate” means, with respect to a Party, any person, corporation, firm, joint venture or other entity which directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Party. As used in this definition, “control” means the possession of the majority of the ownership, or the power to direct or cause the direction of the management of policies, of an entity, whether through the ownership of the outstanding voting securities thereof, by contract or otherwise.
		

		
			 
		

		
			“AFM-Téléthon” means the French Association against Myopathies (Association Française contre les Myopathies) which is Licensor’s founder and principal funder.
		

		
			“Background IP” means, with respect to one Party, all Patents, Know-How and other intellectual property rights (a) owned or possessed though a license agreement by such Party as of Effective Date or (b) owned or possessed through a license agreement by such Party on or after Effective Date. Background IP does not include Licensed Patents.
		

		
			 
		

		
			“BLA” means a Biologics License Application, as defined in the U.S Public Health Service Act and the regulations promulgated thereunder.
		

		
			 
		

		
			
		

		
			

		 

		

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			“Clinical Trial” means any study of a product in human subjects.
		

		
			 
		

		
			“Commercialization” means activities directed to marketing, promoting, distributing or selling a Licensed Product, including all activities directed to obtaining pricing approval in the Territory; and excluding Development, Manufacturing and supply of such product. “Commercialize” and “Commercialized” shall have correlative meanings.
		

		
			 
		

		
			“Confidential Information” means any confidential or proprietary information disclosed or made available in any form whatsoever by one Party (the “Disclosing Party”) to the other Party (the “Receiving Party”), including this Agreement, the content of the transactions contemplated herein, all technology belonging to the Disclosing Party and any improvements thereto, any information relating to a Party’s interests, business, finances, products, operations, sales, marketing, customers, suppliers and suppliers’ bills of materials, trade secrets, know-how, data, processes, methods, protocols, techniques, specifications, formulas, test data, calibration information, presentations, analyses, studies, regulatory communications, patent applications (as long as unpublished and/or undisclosed), financial data, product development, assays, strategic and market research information, other relevant marketing information, clinical data and any other information, whether developed in connection with this Agreement or not and whether marked as confidential or not.
		

		
			 
		

		
			“Development” means, with respect to a product, research and any and all processes and activities conducted to obtain and maintain Marketing Authorization for a product, including pre- and post-marketing approval clinical studies and activities relating to development or preparation of such product for Commercialization. Development includes performance of Clinical Trials. “Develop” shall have the correlative meaning.
		

		
			 
		

		
			“Effective Date” shall have the meaning in the third page.
		

		
			 
		

		
			“Expert” has the definition set forth in Section 5.3.3.
		

		
			 
		

		
			“Field” means the treatment based on in vivo gene replacement therapy using an AAV9 Vector to deliver the SMN gene addressing and restricted to Spinal Muscular Atrophy (“SMA”) in humans.
		

		
			 
		

		
			“First Commercial Sale” means, with respect to a Licensed Product and a country, the first sale for monetary value for use or consumption by the end user, within a country of the Territory, of such Licensed Product while covered by at least one Valid Claim of a Licensed Patent in such country after regulatory approval for commercialization (including pricing and reimbursement if applicable) has been obtained for such Licensed Product in such country. Treatment IND sales and compassionate use sales shall not be construed as First Commercial Sale. First Commercial Sale may occur directly from Licensee or through any of its Affiliates or sublicensees.
		

		
			 
		

		
			“Force Majeure” has the definition set forth in Section 17.5.
		

		
			 
		

		
			“Invention” means any new and useful process, article of manufacture, compound, composition of matter, formulation, or apparatus, or any improvement thereof, discovery or finding, whether or not patentable created, generated or Developed by or on behalf of one Party using the Licensed Patents, during the Term. Invention does not include Background IP and Licensed Patents.
		

		
			 
		

		
			“Know-How” means any tangible and intangible information, data, results (including pharmacological, research and development data and reports), and trade secrets, rights in data, materials, discoveries,
		

		
			 
		

		
			
		

		
			

		 

		

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			improvements, compositions of matter, cell lines, assays, sequences, processes, methods, knowledge, protocols, formulas, utility, formulations, Inventions, and all other scientific, pre-clinical information or data.
		

		
			 
		

		
			“Licensed Patents” mean the Patents that are listed in Exhibit A. For the avoidance of doubt, the Licensed Patents’ status as stated in Exhibit A will include any rights listed in the definition of Patents derived from the Licensed Patents.
		

		
			 
		

		
			“Licensed Product(s)” means any human therapeutic product in the Field using or having used at least one Valid Claim of the Licensed Patents whether this product is Developed, Manufactured or Commercialized by AveXis, AveXis’ Affiliates and/or AveXis’ sublicensees.
		

		
			 
		

		
			“Licensee Publication” means any public announcement, public presentation, medical communication related to the Licensed Product, where Licensee believes it is appropriate and reasonable to do so and in all cases where Licensee includes the names of its other licensing partners.
		

		
			 
		

		
			“Losses” means any liability or expense (including reasonable legal expenses, costs of litigation and attorneys’ fees), damages, or judgments, whether for money or equitable relief.
		

		
			 
		

		
			“Manufacture” means activities directed to the manufacture, receipt, incoming inspections, storage and handling of raw materials and the manufacture, processing, formulation, packaging, labeling, warehousing, quality control testing (including in-process release and stability testing), supplying, shipping and release of a product, as the case may be and to the extent applicable, including manufacturing process development, scale-up and validation. “Manufacturing” and “Manufactured” shall have the correlative meaning.
		

		
			 
		

		
			“Marketing Authorization” means the technical, medical and scientific licenses, registrations, authorizations and approvals (including supplements and amendments, pre and post-approvals, pricing approvals and labeling approvals) of any Regulatory Authority necessary for the Commercialization of a product in the Field in such Regulatory Authority’s jurisdiction in the Territory.
		

		
			 
		

		
			“Marketing Authorization Application” or “MAA” means an application for regulatory approval in order to market and/or sell a Licensed Product in any country other than the U.S.
		

		
			 
		

		
			“Net Sales”: means the total gross receipts from sales or other dispositions of Licensed Products by or on behalf of Licensee or its Affiliates or any sublicensee to unaffiliated Third Parties for end use, less the following deductions that are documented as attributable to the Licensed Products: (a) costs actually incurred for transportation, including packing costs, freight out and insurance costs; (b) rebates, trade, quantity and wholesaler and cash discounts in amounts customary in the trade to the extent actually granted; (c) returns, chargebacks, credits and allowances actually granted; and (d) sales, taxes or excise duties actually paid. No deductions shall be made for commissions paid to individuals, whether they are with independent sales agencies or regularly employed by Licensee, or sublicensees and on its payroll, or for the cost of collections. Sales between or among Licensee and its Affiliates or any sublicensees shall be excluded from the computation of Net Sales, except where such Affiliates or sublicenses are end users, but Net Sales shall include the subsequent final sales to unaffiliated Third Parties by such Affiliates or sublicensees. In the event consideration other than cash is paid to Licensee, its Affiliates or any sublicensees, for purposes of determining Net Sales, the Parties shall use the cash consideration that Licensee, its Affiliates or any sublicensees would realize from an unrelated buyer in an arm’s length sale of an identical item sold in the same quantity and at the time and place of transaction, as determined jointly by the Parties based on transactions of a similar type and standard industry practice, if any. Notwithstanding anything to the contrary herein, the computation of Net Sales shall not include sales of
		

		
			 
		

		
			
		

		
			

		 

		

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			Licensed Products for early access programs, named patient programs, compassionate use programs or similar uses.
		

		
			 
		

		
			“Patent” means (a) any patent, re-examination, reissue, renewal, extension, supplementary protection certificate and term restoration, any confirmation patent or registration patent or patent of addition based on any such patent, (b) any pending application for patents, including provisional, converted provisional, continuations, continuations-in-part, divisional and substitute applications, and inventors’ certificates, (c) all foreign counterparts of any of the foregoing, and (d) all applications claiming priority to any of the foregoing.
		

		
			 
		

		
			“Pivotal Clinical Trial” means: (a) a Clinical Trial that would satisfy the requirements for a Phase 3 study as defined in 21 CFR § 312.21(c) (or successor regulation); or (b) any other Clinical Trial that the applicable Regulatory Authority has agreed is sufficient to form the primary basis of an efficacy claim in an MAA submission, including any such study that is determined to have become pivotal after its commencement.
		

		
			 
		

		
			“Reasonable Efforts” means the efforts and resources normally used by a company in the biopharmaceutical industry of similar size and resources as Licensee for a product that is of similar market potential at a similar stage in its development (before Market Authorization) or product life (after Market Authorization), taking into account all relevant factors, including the potential profitability of the Licensed Products, the costs and risks of Developing, Manufacturing and Commercializing the Licensed Product, scientific, safety and regulatory concerns, product profile, the competitiveness of the marketplace and the proprietary position of the Licensed Products.
		

		
			 
		

		
			“Regulatory Authority” means, in a particular country or jurisdiction in the Territory, any applicable governmental authority involved in granting (a) approval to initiate or conduct clinical testing in humans,
		

		
			(b) the authorizations, approvals, licenses, permits, consents, registrations and filings necessary for the Commercialization of a product in a country in the Territory including Marketing Authorizations and manufacturing licenses, or (c) to the extent applicable in such country or jurisdiction, pricing approval for a product in such country or jurisdiction.
		

		
			 
		

		
			“Term” has the definition set forth in the Section 12.1.
		

		
			 
		

		
			“Territory” means worldwide.
		

		
			 
		

		
			“Third Party” means any party other than a Party.
		

		
			 
		

		
			“Treatment IND” means an Investigational New Drug treatment used for Clinical Trial before the drug has been approved.
		

		
			 
		

		
			“Valid Claim” means, with respect to any country, a claim of (a) an issued/granted and unexpired patent (as may be extended through supplementary protection certificate or patent term extension or the like); and/or (b) a pending patent application that has not been pending for more than five (5) years from the Effective Date, in each case of (a) and (b) to the extent such claim has not been revoked, held invalid or unenforceable by a patent office, court or other governmental agency of competent jurisdiction in a final and non-appealable judgment (or judgment from which no appeal was taken within the allowable time period) and which claim has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer or otherwise.
		

		
			 
		

		
			
		

		
			

		 

		

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			1.2.     Interpretation
		

		
			 
		

		
			The captions and headings to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement. Unless specified to the contrary, references to Sections or Exhibits shall refer to the particular Sections or Exhibits of or to this Agreement and references to this Agreement include all Exhibits hereto. Unless context otherwise clearly requires, whenever used in this Agreement:
		

		
			 
		

			
	
			
				 a.
			

			
	
			
			the words “include” or “including” shall be construed as incorporating, also, “but not limited to” or “without limitation;”

		
			 
		

			
	
			
				 b.
			

			
	
			
			the word “day,” “quarter” or “year” (and derivatives thereof, e.g., “quarterly”) shall mean a calendar day, calendar quarter or calendar year unless otherwise specified (and “annual” or “annually” refer to a calendar year);

		
			 
		

			
	
			
				 c.
			

			
	
			
			the word “notice” shall mean notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement;

		
			 
		

			
	
			
				 d.
			

			
	
			
			the word “hereof,” “herein,” “hereby” and derivative or similar word refers to this Agreement (including any Exhibits);

		
			 
		

			
	
			
				 e.
			

			
	
			
			the word “or” shall have its inclusive meaning identified with the phrase “and/or;”

		
			 
		

			
	
			
				 f.
			

			
	
			
			the words “will” and “shall” shall have the same obligatory meaning;

		
			 
		

			
	
			
				 g.
			

			
	
			
			provisions that require that a party or the parties hereunder “agree,” “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise;

		
			 
		

			
	
			
				 h.
			

			
	
			
			words using the singular or plural number also include the plural or singular number, respectively.

		
			 
		

		
			ARTICLE 2.       GRANT OF RIGHTS
		

		
			 
		

		
			2.1.     Licensor hereby grants to Licensee, subject to the terms and conditions of this Agreement, an exclusive, sub-licensable, non-transferable (except in accordance with Section 17.3), royalty and milestone bearing license under the Licensed Patents to Develop, to Manufacture, to Commercialize or to import any Licensed Products for such purpose in the Territory, solely in the Field.
		

		
			 
		

		
			2.2.     Nothing in this Agreement shall be interpreted as a transfer of Licensor ownership rights in the Licensed Patents to Licensee or any of Licensee’s Affiliates or Licensee’s sublicensees. Licensor shall remain the sole owner of the Licensed Patents.
		

		
			 
		

		
			2.3.     Notwithstanding anything to the contrary in this License Agreement, Licensor may use and permit any Third Party to use the Licensed Patents for (a) noncommercial-research or teaching purposes in the Field limited to a collaboration with another academic or not-for-profit research organization or on its own; and (b) any purposes outside of the Field, particularly but not restricted to other therapeutic indications and commercial purposes.
		

		
			 
		

		
			
		

		
			

		 

		

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			ARTICLE 3.       SUBLICENSING
		

		
			 
		

		
			3.1.     Licensee may enter into non-sublicensable sublicensing agreements under the Licensed Patents with a Third Party, subject to prior information of Licensor of the identity of said Third Party and of the business terms of such sublicensing agreement.
		

		
			 
		

		
			3.2.     Licensee agrees that any sublicenses granted by it under the Licensed Patents shall contain terms and conditions in compliance with the terms of this Agreement, and any obligations of this Agreement applicable to sublicensees. In particular, each sublicense agreement shall have a provision providing that, in the event of termination of this Agreement for any reason, Licensor and sublicensee shall enter into good faith negotiations to conclude a direct license under the terms of this Agreement so long as such termination did not arise directly or indirectly as a result of such sublicensee.
		

		
			 
		

		
			Licensee guarantees performance and acceptance of the obligations and commitments set forth in this Agreement and in the sublicense agreement of each and any of its sub-licensees.
		

		
			 
		

		
			3.3.     Licensee agrees to forward to Licensor (and to obtain agreement of sub-licensee to do so) a complete copy of each fully executed sublicense agreement postmarked within thirty (30) days of the execution of the sublicense agreement. To the extent permitted by law, Licensor agrees to maintain such sublicense agreement in confidence.
		

		
			 
		

		
			ARTICLE 4.       LICENSEE UNDERTAKINGS AND PERFORMANCE
		

		
			 
		

		
			4.1.     Diligence. Licensee shall use its Reasonable Efforts to Develop and Commercialize, in the European Union (including the UK), in particular in France, and the USA, a Licensed Product in the Field.
		

		
			 
		

		
			4.2.     Manufacture and Commercialization of Licensed Products. Licensee shall be responsible for the Manufacture and Commercialization of the Licensed Products.
		

		
			 
		

		
			4.3.     Clinical Trials. Licensee agrees to make in France Clinical Trials on patients suffering from Spinal Muscle Atrophy and to retain “Association Institut De Myologie” (whose founders are the AFM-Téléthon and Genethon) as an investigative site to the extent it is regulatory possible. The clinical trial agreement shall be negotiated on commercially reasonable terms, directly by and between the “Association Institut De Myologie” and Licensee, and the parties shall execute such agreement before December 31th, 2019.
		

		
			 
		

		
			4.4.     Approval from Regulatory Authorities. Licensee shall have the responsibility to prepare and file all requested documentation to obtain and maintain approval from the Regulatory Authorities (including Marketing Authorizations) necessary for the Development and Commercialization of the Licensed Products in the Field and the Territory, and otherwise interact with the relevant authorities as appropriate with respect to the Licensed Products. This includes in particular (i) the drafting of a protocol, application for clinical trial approval, interviewing and identifying clinical centers, appointing a CRO or recruiting patients ; (ii) the analysis of data generated from any trial or manufacturing; (iii) the preparation of regulatory filings for the Licensed Product or preparing briefings for such regulatory filings; and (iv) meetings with regulatory authorities.
		

		
			 
		

		
			4.5.     French  Patient  Access.  Following  the  appropriate  regulatory  approvals,  Licensee  will  use
		

		
			Reasonable Efforts to make available within France all the Licensed Products indicated for SMA at prices that would allow appropriate reimbursement scheme and that would not constitute an obstacle for patients
		

		
			 
		

		
			
		

		
			

		 

		

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			to have access to the therapy. Licensee shall be solely responsible for designing and conducting all Commercialization activities necessary to fulfill its obligations under this Section 4.5.
		

		
			 
		

		
			4.6.     Process Development. Upon Licensor’s request, Licensee agrees to discuss in good faith with Licensor regarding a collaboration concerning the Development of cells in suspension process, in or outside the Field.
		

		
			 
		

		
			4.7.     License with ReGenX Biosciences. Upon Licensor’s request, Licensee will provide either to Licensor or to its Affiliates a worldwide, royalty-bearing, non-exclusive license under the AAV9 Patents controlled by Licensee for the SMArd indication under its current license with ReGenX Biosciences, LLC (“ReGenX”; such agreement, the “ReGenX Agreement”). This license agreement shall be subject to the terms of the existing license with ReGenX, including but not limited to the royalty obligations and milestone obligations to ReGenX and the prohibition on further sublicensing.
		

		
			 
		

		
			4.8.     Licensee  agree  to provide Licensor with with five hundred thousand US dollars ($500,000) on an annual basis, for three (3) years, to support the conduct of novel gene therapy research by Licensor in the field of SMA. Such payment shall be made on the signing date of this Agreement and thereafter upon each anniversary date of the Agreement. Licensor will provide annual report on the R&D work performed. In consideration of such compensation, should the conduct of such novel gene therapy research by Licensor in the field of SMA results in a Patent, Licensor shall first propose to Licensee a license on such patent, provided that Licensee is in compliance with the terms of this Agreement. Licensee shall have a time limit of thirty (30) calendar days from receiving the request from Licensor, giving details of the proposed license, to notify its acceptance or refusal of the license. If Licensee declines such license or does not respond to Licensor in due time, Licensor shall be free to propose and conclude such license with any third party of its choice, without any further notification to be given to Licensee.
		

		
			 
		

		
			ARTICLE 5.       FINANCIAL CONSIDERATION
		

		
			 
		

		
			In consideration for the exclusive license granted to Licensee and Licensor’s commitments pursuant to this Agreement, Licensee shall pay Licensor the following:
		

		
			 
		

		
			5.1.     License Fees
		

		
			 
		

		
			In consideration for the license rights granted to Licensee under this Agreement, Licensee shall pay Licensor:
		

		
			 
		

			
	
			
				 (i)
			

			
	
			
			a one-time, non-refundable, non-creditable amount of four million US dollars ($4,000,000 USD), which shall be paid to Licensor at signing of this Agreement.

		
			 
		

			
	
			
				 (ii)
			

			
	
			
			a  nonrefundable, ongoing annual fee of twenty-five thousand US dollars ($25,000 USD) upon each anniversary date of the Agreement to cover Licensor’s management fees of this Agreement.

		
			 
		

		
			5.2.     Milestone Payments
		

		
			 
		

		
			Licensee agrees to pay to Licensor during the Term, the one-time, non-refundable, non-creditable Milestone Payments set forth in the table below, upon first achievement, by Licensee alone or together with its Affiliates and/or a sublicensees of the applicable milestones with respect to the Licensed Product which first achieves such applicable milestone:
		

		
			 
		

		
			
		

		
			

		 

		

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						* 1st Milestone: 1st treatment in EU Pivotal Clinical Trial

					
					
						Two million US dollars ($2,000,000 USD)

				
	
					
						* 2nd Milestone: 1st US BLA or EU MAA submission

					
					
						Two million US dollars ($2,000,000 USD)

				
	
					
						* 3rd Milestone: 1st USA BLA or EU MAA approval

					
					
						Two million US dollars ($2,000,000 USD)

				
	
					
						* 4th Milestone: annual world-wide net sales equal

					
					
						five hundred million US dollars ($500,000,000 USD)

					
					
						Two million US dollars ($2,000,000 USD)

				
	
					
						* 5th Milestone: annual world-wide net sales equal

					
					
						one billion US dollars ($1 000 000 000 USD)

					
					
						Three million US dollars ($3,000,000 USD)

				
	
					
						Total

					
					
						Eleven million US dollars ($11,000,000 USD)

				

		
			 
		

		
			For purpose of the above the terms “net sales” shall have similar meaning as the definition of “Net Sales” but shall include the sales of Licensed Products and the sales of identical products not covered by a Valid Claim in a given country of the Territory (hereinafter referred to as “Identical Products”).
		

		
			 
		

		
			5.3.     Royalties on Net Sales
		

		
			 
		

		
			5.3.1.  As of the  First Commercial Sale, a five percent (5%) Royalty shall be paid on Net Sales on a country-by-country and Licensed Product-by-Licensed Product basis. For each country and each Licensed Product, such Royalties shall start as of the First Commercial Sale of the Licensed Product in the country and shall end at the later of: (a) expiration of the last Valid Claim of an issued Licensed Patent covering such Licensed Product inside the Field in in such country or (b) ten years from First Commercial Sale of such Licensed Product in the Country (the “Royalty Term”).
		

		
			 
		

		
			Notwithstanding the foregoing:
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Royalties shall be reduced by 50%, on a Licensed Product-by-Licensed Product and country- by-country basis, should a Licensed Product not be covered anymore by a Valid Claim in the concerned country of the Territory during the Royalty Term provided above. Such reduction shall only apply to the sales of such Licensed Product concluded after the expiration of the last Valid Claim of an issued Licensed Patent covering such Licensed Product inside the Field in such country.

		
			 
		

			
	
			
				 ·
			

			
	
			
			In addition, Royalties shall not be payable in the event that a Licensed Product is not covered by a Valid Claim in the country of its sale at the time of First Commercial Sale of such Licensed Product in such country of the Territory, and for so long as a Valid Claim continues not to exist.

		
			 
		

			
	
			
				 ·
			

			
	
			
			In addition and notwithstanding the foregoing, should the Licensed Patent No15/713,347 filed on September 22, 2017 (the US continuation) referred in the Exhibit A as being still “pending” at the Effective Date, be refused by the US patent office before the first commercial sale of a product using Licensor intellectual property rights that were intended to be protected by Licensed Patent application No15/713,347, Licensee shall pay to Licensor a fee amounting to two and a half percent (2.5%)  of the net sales of such products in the USA for a duration of ten years from such first commercial sale of such product in the USA. For the purpose of the above, the terms “first commercial sale” and “net sales” shall have similar meaning as the definition of these terms when applied to Licensed Products.

		
			 
		

		
			
		

		
			

		 

		

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			5.3.2.  Royalty Monetization ROFR. In the event Licensor seeks to monetize a portion or the entirety of its royalty obligation under this Agreement, Licensor shall inform Licensee to allow the Licensee to make an offer. Licensor shall give Licensee a thirty (30) days period to submit an offer prior to make a decision with respect to such royalty monetization.
		

		
			 
		

		
			5.3.3.  The Parties will seek to negotiate any dispute between them about Net Sales in good faith. Any dispute between the Parties about Net Sales in any instance, which has not been resolved by the Parties with twenty (20) Business Days, may, at the request of either Party, be referred to an expert. The expert will be a single, independent chartered accountant to be agreed between the Parties, or in default of agreement between the Parties within five (5) Business Days, to be selected at the request of either of them by the Brussels (Belgium) Court (“Expert”). Any dispute to be referred to the Expert will be decided upon in a final and binding manner by the Expert acting as a technical expert and not as an arbitrator. Any actions, decisions, awards or payments to be made or taken pursuant to the determination of the Expert will be made or taken within thirty (30) Business Days of notification of the same to the relevant Parties. The costs of the Expert will be borne by the Parties as determined by the Expert.
		

		
			 
		

		
			5.4.     Sublicense Fees
		

		
			 
		

		
			5.4.1.  In addition to milestones that Licensee shall pay to Licensor as per Section 5.2 in case of achievement of such milestones by Licensee (together with its Affiliates and its sublicensees) and in addition to the royalties that Licensee shall pay to the Licensor as per Section 5.3, Licensee shall pay to Licensor a percentage of any non-royalty sublicense fee (including upfront payments, milestone payments and profit share payments) received by Licensee from any sublicensee following execution of a sublicense agreement for a Licensed Patents, after deducting any non-royalty fee mentioned above from milestone payments that Licensee owes Licensor pursuant to Section 5.2 for the same milestone event.
		

		
			 
		

		
			5.4.2.  The applicable percentage due to Licensor for each sublicense shall be fifteen percent (15%).
		

		
			 
		

		
			5.5.     Royalty Stacking
		

		
			 
		

		
			5.5.1.  If, in connection with the Manufacture, use, or Commercialization of a Licensed Product, Licensee is obligated to pay royalties to Licensor and any Third Parties that, in the aggregate, exceed fifteen percent (15%) of Net Sales for any Licensed Product, then the royalty owed to Licensor for that Licensed Product will be reduced by an amount calculated as follows:
		

		
			 
		

		
			R = (C*(A/(A+B)))
		

		
			 
		

		
			Where:
		

		
			R = Reduction of Licensor royalty, A = Unreduced Licensor royalty,
		

		
			B = sum (in percentage) of all Third Party royalties, and C = increment of projected total royalty above 15%.
		

		
			 
		

		
			5.5.2.     Notwithstanding the foregoing, Licensee will pay to Licensor no less than 75% of the royalties that Licensee would otherwise pay to Licensor if there were no royalties due to Third Parties.
		

		
			 
		

		
			5.6.  Payment Method
		

		
			 
		

		
			Payments under this Agreement shall be paid in US Dollar by wire transfer, or electronic funds transfer (EFT) of immediately available funds to:
		

		
			 
		

		
			
		

		
			

		 

		

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						Account owner:

					
					
						Généthon

				
	
					
						Bank name & address: 

					
					
						BNP Paribas, 37-39 rue d’Anjou, 75008 Paris, France

				
	
					
						Bank Code:

					
					
						30004

				
	
					
						Agency Code: 

					
					
						02837

				
	
					
						Account No.: 

					
					
						00000006928

				
	
					
						Key:

					
					
						56

				
	
					
						IBAN: 

					
					
						FR76 3000 4028 3700 0000 0692 856

				
	
					
						BIC:

					
					
						BNPAFRPPXXX

				

		
			 
		

		
			Any value, taxes, or other expenses incurred in the transfer shall be paid entirely by Licensee.
		

		
			 
		

		
			All sums due under this Agreement are exclusive of any value added tax which will be payable in addition by Licensee on the issuing by Licensor of an appropriate value added tax invoice.
		

		
			 
		

		
			5.7.     Late payment
		

		
			 
		

		
			Should Licensee fail to make any royalties and other payments, including patent expense reimbursements, required to be paid by Licensee pursuant to this Agreement, on the due date, Licensor reserves the right, without any further notification being given by Licensor:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			to suspend and/or cancel any of its obligations; and/or

		
			 
		

			
	
			
				 (b)
			

			
	
			
			to charge interest calculated on a day by day basis, as from the due date of payment, and equal to higher of (i) three (3) times the French legal interest and (ii) the last European Central Bank rate plus ten (10) points; and/or

		
			 
		

			
	
			
				 (c)
			

			
	
			
			to terminate the Agreement by right in accordance with Section 12.2.1.

		
			 
		

		
			The interest payment shall be due from the day the original payment (or portion thereof) was due until the day that such payment was received by Licensor. The payment of such interest shall not restrict Licensor from exercising any other rights it may have because any payment is overdue.
		

		
			 
		

		
			ARTICLE 6.     INTELLECTUAL PROPERTY
		

		
			 
		

		
			6.1.     Background IP
		

		
			 
		

		
			As between the Parties, Licensor and Licensee shall remain sole owners of their respective Background IP. For the avoidance of doubt, this Agreement does not confer any rights, titles or interests of a Party’s Background IP to the other Party.
		

		
			 
		

		
			6.2.     Inventions
		

		
			 
		

		
			As between the Parties, Licensor and Licensee shall remain sole owners of their respective Inventions. For the avoidance of doubt, this Agreement does not confer any rights, titles or interests of a Party’s Invention to the other Party.
		

		
			 
		

		
			
		

		
			

		 

		

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			ARTICLE 7.     CONFIDENTIALITY
		

		
			 
		

		
			7.1.     Confidentiality; Exceptions
		

		
			 
		

		
			Except to the extent expressly authorized by this Agreement or otherwise agreed by the Parties in writing, during the term of this Agreement and for ten (10) years thereafter (except that with respect to Confidential Information that constitutes a trade secret, the Recipient’s obligations under this Agreement will continue with respect to such trade secret for as long as such information remains a trade secret), the Parties agree that the Receiving Party shall keep confidential and shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement any Confidential Information furnished to it by the other Party pursuant to this Agreement, regardless of whether such information is specifically designated as confidential and regardless of whether such information is in oral, written, electronic or other form.
		

		
			 
		

		
			Notwithstanding the foregoing, Confidential Information shall not be deemed to include information or materials to the extent that it can be established by written documentation by the Receiving Party that such information or material:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			was already known to or possessed by the Receiving Party or any of its Affiliates, other than under an obligation of confidentiality (except to the extent such obligation has expired or an exception is applicable under the relevant agreement pursuant to which such obligation is established), at the time of disclosure;

		
			 
		

			
	
			
				 (b)
			

			
	
			
			was generally available to the public or otherwise part of the public domain at the time of its first disclosure to the Receiving Party or any of its Affiliates, except by breach of this Agreement;

		
			 
		

			
	
			
				 (c)
			

			
	
			
			became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the Receiving Party or any of its Affiliates in breach of this Agreement;

		
			 
		

			
	
			
				 (d)
			

			
	
			
			was independently developed by the Receiving Party or any of its Affiliates as demonstrated by documented evidence prepared contemporaneously with such independent development; or

		
			 
		

			
	
			
				 (e)
			

			
	
			
			was disclosed to the Receiving Party or any of its Affiliates, other than under an obligation of confidentiality, by a Third Party who had no obligation to the Disclosing Party not to disclose such information to others.

		
			 
		

		
			7.2.     Authorized Use and Disclosure
		

		
			 
		

		
			The Receiving Party shall receive, maintain, and hold the Confidential Information in strict confidence; and exercise the same degree of care as it shall exercises to safeguard its own information but in no event less than reasonable care. Each Party may use and disclose Confidential Information of the other Party as follows:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			under appropriate confidentiality provisions substantially equivalent to those in this Agreement, in connection with the performance of its obligations or exercise of rights granted to such Party in this Agreement; however, the Receiving Party will be responsible for any disclosure or use of Confidential Information of the Disclosing Party made by any person to

		
			 
		

		
			
		

		
			

		 

		

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			whom the Receiving Party disclosed such Confidential Information as though such disclosure or use was conducted by the Receiving Party; and
		

		
			 
		

			
	
			
				 (b)
			

			
	
			
			to the extent such disclosure is reasonably necessary in prosecuting and maintaining Patents (including applications therefor) in accordance with this Agreement, prosecuting or defending litigation, complying with applicable governmental regulations, conducting Development or Commercialization hereunder, obtaining and maintaining Marketing Authorizations, or otherwise required by law applicable to such Party or a Party’s disclosure under regulations promulgated by applicable security exchanges; provided however, that if a Party is required by applicable law or under security exchange rules it will, except where prohibited by applicable law or impracticable, give reasonable advance notice to other Party of such disclosure requirement and, where practicable, will use its reasonable efforts to secure confidential treatment of such Confidential Information required to be disclosed.

		
			 
		

		
			Either Party may disclose to bona fide potential investors, lenders and acquirors/acquirees, and to such Party’s consultants and advisors, the existence and terms of this Agreement to the extent necessary in connection with a proposed equity or debt financing of such Party, or a proposed acquisition or business combination, or to bona fide potential sublicensees, so long as such recipients are bound in writing to maintain the confidentiality of such information in accordance with the terms of this Agreement.
		

		
			 
		

		
			Notwithstanding the forgoing, Licensor may disclose any Licensee Confidential Information to the CNRS as co-owner of the Licensed Patents, subject to obligations of confidentiality and non-use at least as restrictive as those set forth in this Section 7.
		

		
			 
		

		
			ARTICLE 8.     RECORD KEEPING – AUDIT
		

		
			 
		

		
			8.1.     Licensee agrees to keep, and will ensure that each of its Affiliates and sub-licensees keeps, accurate and correct records of Licensed Products Developed, Manufactured and Commercialized under this Agreement appropriate to determine the amount of royalties due to Licensor. These records shall be retained for at least five (5) years following a given reporting period.
		

		
			 
		

		
			8.2.     Records shall be made available by Licensee, its Affiliates and sub-licensees during normal business hours for inspection, by an accountant or other designated auditor selected by Licensor for the sole purpose of verifying reports, milestones achievements and royalty payments hereunder. The accountant or auditor shall only disclose to Licensor information relating to the accuracy of reports, milestones achievements and royalty payments made under this Agreement or under the agreement concluded between Licensee and its Affiliates or sub-licensees for the purpose of the Development, Manufacture or Commercialization of the Licensed Product.
		

		
			 
		

		
			8.3.     Subject to Section 8.1 and 8.2, Licensor can demand at any time to access the elements of the special accounting allowing the evaluation of the commercial transactions made under the present Agreement.
		

		
			 
		

		
			8.4.     Audit shall be made at the expense of Licensor, except when an inspection shows an underreporting or underpayment in  excess of  three percent (3%) for any twelve (12) month period. In such case, Licensee shall reimburse Licensor for the cost of the audit at the time Licensee pays the unreported milestones or the unreported royalties, including any additional payment and interest as required by Section 5.7.
		

		
			 
		

		
			
		

		
			

		 

		

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			8.5.     All payments required under this ARTICLE 8 shall be due within forty five (45) days of the date Licensor provides Licensee notice of the payment due.
		

		
			 
		

		
			ARTICLE 9.     REPORTS ON PROGRESS, SALES AND PAYMENTS
		

		
			 
		

		
			9.1.     Licensee shall provide written annual reports on its Licensed Products Development progress or efforts to Manufacture or Commercialize for the Field within sixty (60) days after December 31 of each calendar year. These progress reports shall include, but not be limited to: progress on research and Development, status of applications for regulatory approvals, Manufacture and status of sublicensing, marketing, importing, and sales during the preceding calendar year, as well as, plans for the present calendar year.
		

		
			 
		

		
			9.2.     If reported progress differs from that projected between the Parties and in Milestones, Licensee shall explain the reasons for such differences. Licensee agrees to provide any additional information reasonably required by Licensor to evaluate Licensee’s performance under this Agreement.
		

		
			 
		

		
			9.3.     Licensee shall report to Licensor the dates for achieving milestones, the First Commercial Sale of each Licensed Product and the first commercial sale of each Identical Product in each country of the Territory within thirty (30) days of such occurrences.
		

		
			 
		

		
			9.4.     Licensee shall submit to Licensor, within forty (40) days after each calendar half year ending June 30 and December 31, a royalty report setting forth for the preceding half year period the amount of the Licensed Products and Identical Products sold by or on behalf of Licensee in each country within the Territory, the Net Sales and net sales of Identical Products, and the amount of royalty accordingly due.
		

		
			 
		

		
			9.5.     With each royalty report, Licensee shall submit payment of earned royalties due, in conformity with Section 5.3 and Section 5.5. If no earned royalties are due to Licensor for any reporting period, the written report shall so state. The royalty report shall be certified as correct by an authorized officer of Licensee and shall include a detailed listing of all deductions made to determine Net Sales made under ARTICLE 5 to determine royalties due.
		

		
			 
		

		
			9.6.     Licensee agrees to forward semi-annually to Licensor a copy of these reports received by Licensee from its sublicensees during the preceding half year period as shall be relevant to a royalty accounting to Licensor by Licensee for activities under the sublicense.
		

		
			 
		

		
			ARTICLE 10.     PROSECUTION AND MAINTENANCE
		

		
			 
		

		
			10.1.     Each Party shall have the right, but not the obligation, at its sole expense, to prosecute and maintain Patents solely owned by such Party, including its own Background IP and its own Invention. Licensor shall notify Licensee in writing of material aspects of the prosecution of Licensed Patents related to the Field, and shall reasonably consider Licensee’s comments with respect thereto in good faith.
		

		
			 
		

		
			10.2.     Subject to Section 10.3, Licensee shall reimburse Licensor for all Third Party patent costs incurred for each Patent of the Licensed Patents as from the Effective Date and until termination of the Agreement or expiry of the last Valid Claim of the Licensed Patents. The sum reimbursed shall be creditable on an annual basis against the annual fee provided in Section 5.1(ii).
		

		
			 
		

		
			
		

		
			

		 

		

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			10.3.     If the Licensed Patents are licensed by Licensor to Third Parties, outside of the Field, the Third Party Patent costs incurred for the Licensed Patents as from the effective date of such additional licenses will be divided by the number of licensees, including Licensee.
		

		
			 
		

		
			10.4.     Patent costs shall include all Third Party costs relating to the Licensed Patents drafting, filing, prosecution, and maintenance in all countries, including ex parte re-examination, grant, re-issuance and validation in all countries.
		

		
			 
		

		
			ARTICLE 11.     INFRINGEMENT AND ENFORCEMENT
		

		
			 
		

		
			11.1.     Validity challenge against Licensed Patent
		

		
			 
		

		
			11.1.1.  In the event a Third Party initiate an action challenging the validity of any of the Licensed Patents (“Third Party Challenge”), Licensor agrees to notify Licensee of such an action. Third Party Challenge shall include but not be limited to declaratory judgment action, opposition, post-grant proceedings, interferences, inter-partes review, inter-partes re-examination and patent validity challenges against national or regional courts.
		

		
			 
		

		
			11.1.2.  Unless the Parties otherwise agree in writing, Licensor shall have the right, but not the obligation, to defend any Third Party challenge related to the Licensed Patents, and Licensee shall reasonably assist Licensor and cooperate in any such litigation at Licensor’s request and at Licensee’s expenses. Licensor shall keep Licensee reasonably informed with respect to the progress of any such litigation.
		

		
			 
		

		
			11.1.3.  If Licensor does not exercise its right to defend any Third Party challenge related to the Licensed Patents within the Field within a commercially reasonable period of time, then Licensee shall have such right to defend such Third Party challenge that would limit Licensee’s rights in the Field, and Licensee agrees to keep Licensor reasonably informed of all material developments in connection with such Third Party challenge. Licensee shall not settle or otherwise make any admissions in connection with such Third Party challenge that would materially adversely affect Licensor’s rights or interests, without Licensor’s prior written consent.
		

		
			 
		

		
			11.1.4.  Licensee shall reimburse Licensor for all Third Party costs incurred due to Third Party Challenges related to the Field.
		

		
			 
		

		
			11.2.     Infringement of Licensed Patents by Third Parties
		

		
			 
		

		
			11.2.1.  Licensor and Licensee agree to notify each other promptly of each infringement or possible infringement of the Licensed Patents, as well as of any facts which may affect the validity, scope, or enforceability of the Licensed Patents of which either Party becomes aware.
		

		
			 
		

		
			11.2.2.  Licensor may enforce any Licensed Patents with respect to Third Party infringements, at its sole discretion and at its sole expense. Licensor shall inform Licensee of its decision regarding such enforcement.
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			In case of such enforcement action brought by Licensor, Licensee shall be entitled to join such action at its own costs and expenses. Licensor shall remain free to withdraw its action at any time during the procedure.

		
			 
		

		
			
		

		
			

		 

		

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				 ·
			

			
	
			
			In case Licensor does not bring such enforcement action, Licensee may enforce any Licensed Patents with respect to Third Party infringements at its own costs and expenses only after having obtained Licensor’s written approval which shall not be unreasonably withheld with regards to Licensor own interests. Licensor shall be entitled to join such action at its own costs and expenses.

		
			 
		

		
			11.2.3.  Licensee shall reimburse Licensor for all costs incurred due to such action if the infringement related to the Licensed Patents by Third Parties relates to the Field.
		

		
			 
		

		
			11.2.4.  Any damages or other compensation, monetary or not, shall be collected by Licensor. In case Licensee joins any action to enforce Licensed Patents initiated by Licensor, it may request and collect damages or other compensation for its own prejudice.
		

		
			 
		

		
			ARTICLE 12.     TERM, TERMINATION AND MODIFICATION OF RIGHTS
		

		
			 
		

		
			12.1.     Term
		

		
			 
		

		
			This Agreement commences on the Effective Date and shall continue on a Licensed Product-by-Licensed Product and country-by-country basis until the expiration of the Royalty Term with respect to such Licensed Product in such country (the “Term”).
		

		
			 
		

		
			12.2.     Termination
		

		
			 
		

		
			12.2.1.  Termination for cause
		

		
			 
		

		
			12.2.1.1     Either Party may terminate this Agreement entirely, effective upon written notice to the other Party, if the other Party materially breaches this Agreement and fails to cure such breach within ninety
		

		
			(90) days after receiving written notice thereof.
		

		
			 
		

		
			12.2.1.2  While the following list cannot be construed to limit Licensor’s right to terminate the Agreement entirely in case of a material breach by Licensee of the Agreement under Sections 12.2, Licensor shall in particular have the right to terminate this Agreement on a country-by-country basis and Licensed Product- by-Licensed Product basis or in its entirety, effective upon written notice to Licensee, if Licensee fails to cure such breach within ninety (90) days after receiving written notice thereof:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			if Licensor determines that Licensee has willfully made a false statement of, or omitted, a material fact in any report required by this Agreement, including under Article 9;

		
			 
		

			
	
			
				 (b)
			

			
	
			
			if Licensor determines that Licensee is not keeping Licensed Products reasonably available to the public after commercial use commences in application of Section 4.5;

		
			 
		

			
	
			
				 (c)
			

			
	
			
			if Licensor determines that Licensee cannot reasonably justify a failure to comply with undertakings provided for in Section 4.5;

		
			 
		

			
	
			
				 (d)
			

			
	
			
			if Licensee does not enter into the clinical trial agreement mentioned in Section 4.3;

		
			 
		

			
	
			
				 (e)
			

			
	
			
			if the Clinical Trial contemplated in such clinical trial agreement mentioned in Section 4.3 is not entirely performed for reason attributable to Licensee;

		
			 
		

		
			
		

		
			

		 

		

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				 (f)
			

			
	
			
			if Licensee fails to make any royalties and other payments, including patent expense reimbursements, required to be paid by Licensee on the due date pursuant to ARTICLE 5.

		
			 
		

		
			12.2.1.3  Notwithstanding the foregoing, in the event that a breach by Licensee pursuant to Section 12.2.1.1 or 12.2.1.2 would reasonably require more than ninety (90) days to cure, and Licensee provides Licensor with a reasonable plan for diligently curing such breach, such ninety (90)-day cure period shall be extended for the amount of time set forth in the plan not to exceed an additional ninety (90) days.
		

		
			 
		

		
			12.2.2.     Abandonment
		

		
			 
		

		
			12.2.2.1   On a Licensed Product-by-Licensed Product and country-by-country basis, Licensor may terminate the license under Section 2.1 with respect to a Licensed Product in a given country in the event of Abandonment by Licensee with respect to such Licensed Product in such country by giving written notice to Licensee. If such Abandonment has been cured by Licensee within the Abandonment Cure Period, such termination shall not occur. If such Abandonment has not been cured by Licensee within the Abandonment Cure Period then Licensor shall be entitled at its own discretion to (i) terminate the license under Section 2.1 entirely with respect to such Licensed Product in such country, with immediate effect upon delivery to Licensee of a written notice, or to (ii) modify the license grant in removing the exclusivity granted by Licensor to Licensee under the Licensed Patents in the Field with respect to such Licensed Product in such country, with immediate effect upon delivery to Licensee of a written notice.
		

		
			 
		

		
			12.2.2.2   Notwithstanding anything in this Section 12.2, in the event Licensee fails to achieve a First Commercial Sale in EU or in the USA before December 31th, 2020, Licensor may (i) terminate this Agreement in its entirety with immediate effect upon delivery to Licensee of a written notice, or (ii) modify the license under Section 2.1, in removing the exclusivity granted by Licensor to Licensee under the Licensed Patents in the Field with respect to any or all Licensed Products in any or all countries, with immediate effect upon delivery to Licensee of a written notice.
		

		
			 
		

		
			12.2.3.     Action against the Licensed Patents
		

		
			 
		

		
			By giving notification to Licensee, Licensor may terminate immediately the Agreement without any further financial or other obligations to Licensee, in the event that Licensee, its Affiliates or its sublicensees brings an action against Licensor or against the Licensed Patents, in any country of the Territory, in each case, challenging the validity, enforceability or scope of any Licensed Patent, in particular if Licensee, its Affiliates or its sublicensees, directly or indirectly, files an opposition to the Licensed Patents before any patent office in the Territory.
		

		
			 
		

		
			12.2.4.     Commercialization of a Licensed Product outside the Field
		

		
			 
		

		
			By giving written notification to Licensee, Licensor may terminate immediately the Agreement without any further financial or other obligations to Licensee, in the event that Licensee, on its own or on its behalf, Commercializes a Licensed Product outside the Field.
		

		
			 
		

		
			12.2.5.     Insolvency / Bankruptcy
		

		
			 
		

		
			Either Party may terminate the Agreement in the event that the other Party becomes insolvent, files a petition in bankruptcy, has such a petition filed against it, determines to file a petition in bankruptcy, or receives notice of a Third Party’s intention to file an involuntary petition in bankruptcy, and such proceeding or action remains un-dismissed or un-stayed for a period of sixty (60) days, to the extent permitted by applicable law.
		

		
			 
		

		
			
		

		
			

		 

		

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			Each Party shall inform the other Party within thirty (30) days of occurrence of any such event.
		

		
			 
		

		
			12.3.     Consequences of Termination
		

		
			 
		

		
			12.3.1.  Accrued Obligations
		

		
			 
		

		
			Expiration or termination of this Agreement for any reason shall not release any Party of any obligation or liability which, at the time of such expiration or termination, has already accrued or which is attributable to a period prior to such expiration or termination.
		

		
			 
		

		
			12.3.2.  Consequence in Case of Termination of the Agreement in its Entirety
		

		
			 
		

		
			In the event of termination of this Agreement in its entirety by Licensor under Section 12.2, all license rights granted to Licensee pursuant to Article 2 shall terminate and any Development and Commercialization of the Licensed Product by Licensee should cease in all the Territory.
		

		
			 
		

		
			12.3.3.  Within ninety (90) days of expiration or termination of this Agreement under this Article 12, a final report shall be submitted by Licensee to Licensor. Any royalty payments, including those incurred but not yet paid, and those related to patent expense, due to Licensor shall become immediately due and payable upon termination or expiration. Unless otherwise specifically provided for under this Agreement, upon termination of this Agreement, Licensee shall provide Licensor with written certification of the destruction of the Licensed Products (i.e. destruction of the products integrating patented vectors as detailed in Licensed Patents).
		

		
			 
		

		
			12.4.     Non-Exclusive Remedy
		

		
			 
		

		
			Termination of this Agreement by a Party shall be without prejudice to other remedies such Party may have at law or equity.
		

		
			 
		

		
			12.5.     Survival
		

		
			 
		

		
			Notwithstanding the expiry of the term or prior termination of this Agreement the provisions of Articles 1 (as applicable), 6 (Intellectual Property), 7 (Confidentiality), 8 (Record Keeping - Audit), 14 (Indemnification, Insurance and Liability), 15 (Publication and Publicity), 16 (Dispute Resolution) and 17 (Miscellaneous) and Sections 5.3.3, 5.6 (Payment Method), 5.7 (Late Payment), 12.3 (Consequences of Termination), 12.4 (Non-Exclusive Remedy) and 12.5 (Survival), and any other provisions that by their nature or intent are intended to survive post expiration or termination, shall remain in full force and effect.
		

		
			 
		

		
			ARTICLE 13.     REPRESENTATION AND WARRANTIES
		

		
			 
		

		
			13.1.     Licensor represents and warrants to Licensee, as of the Effective Date, that: (a) the information on the Licensed Patents listed in Exhibit A is accurate; (b) the Licensed Patents constitute all of the Patents owned or controlled by Licensor that are related to the construction of a self-complementary AAV9-SMN and AAV9-SMN systemic administration; (c) Licensor has the right to grant to Licensee the rights and licenses in and to the Licensed Patents set forth in this Agreement; (d) Licensor has not received any notice of infringement of any Licensed Patents other those described in Exhibit A at the Effective Date, and to Licensor’s knowledge, no third party is infringing, or challenging the inventorship, ownership or enforceability of, any Licensed Patents in the Field; and (e) Licensor has not entered, and
		

		
			 
		

		
			
		

		
			

		 

		

			Page 20 / 31

		

		

			 

		

		

			Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions

		

 

		

			 

		

		

		
			 
		

		
			shall not enter, into any agreement with any Third Party (including any related party agreements) that is in conflict with the rights granted to Licensee under this Agreement.
		

		
			 
		

		
			13.2.     Except as expressly set forth in Section 13.1 of this Agreement, Licensor does not warrant the validity of the Licensed Patents and makes no representations whatsoever with regard to the scope of the Licensed Patents, or that the Licensed Patents may be exploited without infringing other patents or other intellectual property rights of Third Parties. Licensee acknowledges that the status of the Licensed Patents are available to the public and that Licensee has been provided with all reasonable information regarding the Licensed Patents available at the Effective Date and that Licensee is full aware of the filing procedures and the status of the Licensed Patents.
		

		
			 
		

		
			13.3.     Except as expressly set forth in Section 13.1 of this Agreement, Licensor makes no warranties, expressed or implied, of merchantability or fitness for a particular purpose of any subject matter defined by the claims of the Licensed Patents or tangible materials related thereto.
		

		
			 
		

		
			13.4.     Subject to Section 14.1.1, Licensee shall indemnify and hold Licensor, its directors, employees, students, agents, and consultants harmless from and against all liability, demands, damages, expenses, and losses, including but not limited to death, personal injury, illness, or property damage in connection with or arising out of the Development, Manufacture, Commercialization, or use of any Licensed Patents or Licensed Products by Licensee, its Affiliates or sublicensees.
		

		
			 
		

		
			13.5.     If data passed on for the purpose of use of one Party (the “receiving Party”) contain personal data, the other Party guarantees to the receiving Party that he complied with all the obligations imposed under the term of the January 6th, 1978 law "Computing and Liberties" and of the Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 “on the protection of individuals with regard to the processing of personal data and on the free movement of such data” that will be repealed, as from the May 25, 2018, by the regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 “on the protection of natural persons with regard to the processing of personal data and on the free movement of such data”, and that he informed the concerned physical persons of use which is made of the aforementioned personal data. As such, each Party guarantees the other Party against any appeal, complaint or demand from a person whose personal data would be reproduced and host via Licensee.
		

		
			 
		

		
			ARTICLE 14.     INDEMNIFICATION, INSURANCE AND LIABILITY
		

		
			 
		

		
			14.1.     Indemnification
		

		
			 
		

		
			14.1.1.  Indemnity.
		

		
			 
		

			
	
			
				 a.
			

			
	
			
			Subject to the Section 14.1.1.b) below, the defaulting Party (the “Indemnifying Party”) will indemnify, defend, and hold harmless the other Party (the “Indemnified Party”) and its Affiliates, its sublicensees and its directors, officers, employees, agents (collectively the “Indemnitees”), against any Losses incurred by or imposed upon any of the Indemnitees in connection with any Third Party claims, suits, investigations, actions, judgments or demands arising out of or related to :

		
			 
		

			
	
			
				i.
			

			
	
			
			any  breach  of  this  Agreement  by  the  Indemnifying  Party,  its Indemnitees, Affiliates or sublicensees; or

			
	
			
				ii.
			

			
	
			
			the wrongful intentional acts or omissions of the Indemnifying Party, its Indemnitees, Affiliates or sub-licensees, in connection with the performance of its obligations or exercise of its rights under this Agreement;

		
			 
		

		
			
		

		
			

		 

		

			Page 21 / 31

		

		

			 

		

		

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				 b.
			

			
	
			
			Except, in each case, to the extent that the respective Losses are caused by the negligence or willful misconduct of, or breach of this Agreement or violation of law by, the Indemnified Party, Indemnitees, its Affiliates, sublicensees.

		
			 
		

		
			14.1.2.  Settlement. Notwithstanding anything to the contrary in this Agreement, neither Party will enter into any settlement, consent judgment, or other voluntary final disposition of any claim that has an adverse effect on the rights of the other Party, or admits any wrongdoing or fault by the other Party, or imposes on the other Party any payment or other liability, without the prior written consent of such other Party, except when Licensor defends the Licensed Patents in application of Article 11.
		

		
			 
		

		
			14.2.     Insurance. The Licensee agrees to maintain a liability insurance program consistent with sound business practice.
		

		
			 
		

		
			14.3.     Liability. Notwithstanding anything in this Agreement or otherwise, neither Party, their directors, employees, students, agents, and consultants as applicable, will be liable to the other with respect to any subject matter of this Agreement for any indirect, punitive, special or consequential damages, including incidental, or lost profits, even if such Party has been informed, should have known or in fact knew of the possibility of such damages.
		

		
			 
		

		
			ARTICLE 15.     PUBLICATION AND PUBLICITY
		

		
			 
		

		
			15.1.     Scientific Publication
		

		
			 
		

		
			Licensee and its Affiliates shall have the right to publish or publicly disclose, as part of scientific publications or scientific presentations, the results generated in the course of performing by Licensee any research related to the Licensed Products. Licensor may publish or publicly disclose any information or results generated in the course of performing any research related to the Licensed Patents without the prior written consent of Licensee.
		

		
			 
		

		
			15.2.     Press Release and Public Communication
		

		
			 
		

		
			15.2.1   The Parties shall issue the initial press release set forth on Exhibit B hereto following the Effective Date.
		

		
			 
		

		
			15.2.2     Except as required by law, neither Licensor nor Licensee (or its Affiliates or sublicensees) shall issue or cause the publication of any other press release or public announcement (orally or in writing) regarding the existence or terms of this Agreement without the express prior written approval of the other Party, which approval shall not be unreasonably withheld, conditioned or delayed. The Licensor or the Licensee (or its Affiliates or sublicensees) shall reasonably consider, timely comments from the other Party on such publication or press release.
		

		
			 
		

		
			15.2.3   Unless prohibited by law and unless otherwise requested by Licensor, Licensee shall include the words “Developed in partnership with Genethon” in any press release, public presentation, or medical communication related to the Licensed Product where Licensee believes it is appropriate and reasonable to do so and in all cases where Licensee includes the names of its other licensing partners. In addition, Licensee would include the words “Developed in partnership with Genethon” in significant global press releases announcing initiation of a Clinical Trial, results of a Clinical Trial, submission for regulatory approval and the receipt of regulatory approvals. In France, Licensee would help promote Licensor’s
		

		
			 
		

		
			
		

		
			

		 

		

			Page 22 / 31

		

		

			 

		

		

			Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions

		

 

		

			 

		

		

		
			 
		

		
			branding by including the wording when announcing any joint advocacy communication, local advisory board and local conference/presentation.
		

		
			 
		

		
			15.2.4   The Parties acknowledge that the French Association against Myopathies (AFM-Téléthon, Association Française contre les Myopathies), which is Genethon’s founder and principal funder, in view of accomplishing its recognized role of working in the public interest, that is, by curing rare diseases and reducing the disabilities to which they give rise, has an obligation to provide the general public with information on the research programs and work to which it provides a financial contribution, in order to facilitate, directly or indirectly, an understanding of these diseases, the development of treatments, and the prevention of disabilities.
		

		
			 
		

		
			Subject to Licensee’s prior approval which should not be unreasonably withheld, each Party agrees that AFM-Telethon may use its name and report thereon, orally and/or in writing, to the general public, notably during fundraising campaigns and during the Telethon and annual general meeting, without releasing details which may be detrimental to such Party’s intellectual property rights or Confidential Information.
		

		
			 
		

		
			ARTICLE 16.     DISPUTE RESOLUTION
		

		
			 
		

		
			16.1.     In the event of any dispute arising out of or relating to this Agreement, the Parties will use all reasonable efforts to arrive at a mutually acceptable resolution.
		

		
			 
		

		
			16.2.     If a dispute is not resolved within sixty (60) days from the date that the other Party receives notice of the dispute, the matter will be referred to the CEOs of both Parties (or their designees) for resolution within thirty (30) days after such escalation to such officers.
		

		
			 
		

		
			16.3.     If an agreement is not reached within such thirty (30) day period, then the dispute will be resolved consistent with Section 17.2.
		

		
			 
		

		
			16.4.     The provisions of this Article 16 shall survive for five (5) years from the date of termination or expiration of this Agreement.
		

		
			 
		

		
			16.5.     Subject to the non-terminating Party’s right to seek an injunction or protective order, the provisions of this Article 16 shall not affect the right of either Party to terminate this Agreement pursuant to Section 12.2 of this Agreement.
		

		
			 
		

		
			ARTICLE 17.     MISCELLANEOUS
		

		
			 
		

		
			17.1.     Governing Law
		

		
			 
		

		
			This Agreement and all disputes arising out of or related to this Agreement, or the performance, enforcement, breach or termination hereof, and any remedies relating thereto, will be construed, governed, interpreted and applied in accordance with the laws of Belgium, without regard to conflict of laws principles, except that questions affecting the construction and effect of any patent will be determined by the law of the country in which the patent will have been granted.
		

		
			 
		

		
			
		

		
			

		 

		

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			17.2.     Attribution of Jurisdiction
		

		
			 
		

		
			Any dispute arising out of or relating to this Agreement, any terms of this Agreement or any breach of this Agreement (in particular with regard to the negotiation, performance or termination of the Agreement) that is not resolved pursuant to Article 16 will be resolved by the courts of Brussels (Belgium) which will have exclusive jurisdiction, without regard to conflict of jurisdiction principles thereof. The Parties hereby expressly exclude the application of the United National Convention on Contracts for the International Sales of Goods.
		

		
			 
		

		
			17.3.     Assignment of Rights and Obligations
		

		
			 
		

		
			This Agreement and its rights or obligations may not be assigned or otherwise transferred by Licensee without the prior written consent of Licensor; provided that, Licensee may make such an assignment or transfer without Licensor’s consent, but with notice promptly following such assignment or transfer, to its Affiliates or to a Third Party successor to all or substantially all of the business of Licensee to which this Agreement relates, whether in a merger, sale of stock, sale of assets or other transaction.
		

		
			 
		

		
			17.4.     Further Actions
		

		
			 
		

		
			Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of the Agreement.
		

		
			 
		

		
			17.5.     Force Majeure
		

		
			 
		

		
			Except with respect to payment of money, no Party shall be liable to the other Party for failure or delay in the performance of any of its obligations under this Agreement for the time and to the extent such failure or delay is caused by earthquake, riot, civil commotion, war, terrorist acts, strike, flood, or governmental acts or restriction, or other cause that is beyond the reasonable control of the respective Party (“Force Majeure”). The Party affected by such Force Majeure will provide the other Party with full particulars thereof as soon as it becomes aware of the same (including its best estimate of the likely extent and duration of the interference with its activities), and will use reasonable efforts to overcome the difficulties created thereby and to resume performance of its obligations as soon as practicable. If the performance of any such obligation under this Agreement is delayed owing to an event of Force Majeure for any continuous period of more than ninety (90) days, the Parties will consult with respect to an equitable solution, including the possibility of the termination of this Agreement in accordance with Section 12.2.
		

		
			 
		

		
			17.6.     Representation by Legal Counsel
		

		
			 
		

		
			Each Party hereto represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting hereof. In interpreting and applying the terms and provisions of this Agreement, the Parties agree that no presumption shall exist or be implied against the Party which drafted such terms and provisions.
		

		
			 
		

		
			17.7.     Notices
		

		
			 
		

		
			Any notice, request, delivery, approval or consent required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been sufficiently given if delivered in person, transmitted by facsimile (receipt verified) or by express courier service (signature required) or five (5) days after it was sent by registered letter, return receipt requested (or its equivalent), provided that no postal strike or
		

		
			 
		

		
			
		

		
			

		 

		

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			Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions

		

 

		

			 

		

		

		
			 
		

		
			other disruption is then in effect or comes into effect within two (2) days after such mailing, to the Party to which it is directed at its address or facsimile number shown below or such other address or facsimile number as such Party will have last given by notice to the other Party.
		

		
			 
		

		
			If to Licensor:
		

		
			1bis, Rue de l’Internationale - 91000 EVRY, FRANCE 
		

		
			Attention: Alexandre LEMOALLE
		

			
					
						Tel:

					
					
						+33 1 69 47 25 87

				
	
					
						Mail:

					
					
						alemoalle@genethon.fr

				

		
			 
		

		
			If to Licensee:
		

		
			2275 Half Day Road, Suite 200
		

		
			Bannockburn, IL 60015 
		

		
			Attention: General Counsel
		

			
					
						Fax:

					
					
						847-510-0775

				
	
					
						Mail:

					
					
						mjohannesen521@avexis.com

				

		
			 
		

		
			17.8.     Entire Agreement
		

		
			 
		

		
			This Agreement, together with the exhibits A to B attached hereto, set forth the entire agreement and understanding of the Parties hereto as to the subject matter hereof, and supersedes all prior and contemporaneous discussions, agreements and writings in respect.
		

		
			 
		

		
			17.9.     Amendment
		

		
			 
		

		
			No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party.
		

		
			 
		

		
			17.10.     Waiver
		

		
			 
		

		
			No provision of the Agreement shall be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by a duly authorized officer of the waiving Party. The waiver by any of the Parties of any breach of any provision hereof by another Party shall not be construed to be a waiver of any succeeding breach of such provision or a waiver of the provision itself.
		

		
			 
		

		
			17.11.     Severability
		

		
			 
		

		
			If any clause or portion thereof in this Agreement is for any reason held to be invalid, illegal or unenforceable, the same shall not affect any other portion of this Agreement, as it is the intent of the Parties that this Agreement shall be construed in such fashion as to maintain its existence, validity and enforceability to the greatest extent possible. In any such event, this Agreement shall be construed as if such clause of portion thereof had never been contained in this Agreement, and there shall be deemed substituted therefor such provision as will most nearly carry out the intent of the Parties as expressed in this Agreement to the fullest extent permitted by Law.
		

		
			 
		

		
			
		

		
			

		 

		

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			17.12.     Relationship of the Parties
		

		
			 
		

		
			Nothing herein will be deemed to establish a relationship of principal and agent between Licensor and Licensee, nor any of their agents or employees, nor will this Agreement be construed as creating any form of legal association or arrangement which would impose liability upon one Party for the act or failure to act of the other Party. Nothing in this Agreement, express or implied, is intended to confer on any person other than the Parties or their permitted assigns any benefits, rights or remedies.
		

		
			 
		

		
			17.13.     Third Party Beneficiaries
		

		
			 
		

		
			All rights, benefits and remedies under this Agreement are solely intended for the benefit of the Parties (including any successor in interest or permitted assigns), and no Third Party shall have any rights whatsoever to (a) enforce any obligation contained in this Agreement, (b) seek a benefit or remedy for any breach of this Agreement, or (c) take any other action relating to this Agreement under any legal theory, including actions in contract, tort (including negligence, gross negligence and strict liability), or as a defense, setoff or counterclaim to any action or claim brought or made by the Parties.
		

		
			 
		

		
			17.14.     Counterparts
		

		
			 
		

		
			This Agreement may be executed in any number of counterparts, each of which need not contain the signature of more than one Party but all such counterparts taken together shall constitute one and the same agreement.
		

		
			 
		

		
			
		

		
			

		 

		

			Page 26 / 31

		

		

			 

		

		

			Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions

		

 

		

			 

		

		

		
			 
		

		
			Executed in two originals, one for each Party
		

		
			 
		

		
			 
		

		
			For AVEXISFor GENETHON
		

		
			at Bannockburn, ILat Evry
		

		
			the 9th of March, 2018the 9th of March, 2018
		

		
			 
		

		
			 
		

		
			/s/ RA Session II/s/ Frederic REVAH
		

		
			 
		

		
			Name: RA Session II       Name : Frederic REVAH
		

		
			Title: Senior Vice President Corporate Title : Chief Executive Officer
Strategy and Business Development 

		

		
			

		 

		

			Page 27 / 31

		

		

			 

		

		

			Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions

		

 

		

			 

		

		

		
			Exhibit A
		

		
			Licensed Patents at the Effective Date
		

		
			 
		

			
					
						Country

					
					
						Filing date

					
					
						Administration

					
					
						Product*

					
					
						Filing number

					
					
						Publication number

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						“CNS gene delivery using peripheral administration of AAV vectors”  GENETHON [B00701 MB],  CNRS [DI 02300-01]

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Europe

					
					
						23/07/2007

					
					
						N/A (withdrawn)

					
					
						N/A (withdrawn)

					
					
						EP 07301263.5

					
					
						EP 2019143

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PCT

					
					
						22/07/2008

					
					
						N/A (expired)

					
					
						N/A (expired)

					
					
						PCT/EP2008/059595

					
					
						WO 2009/013290

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Europe

					
					
						22/07/2008

					
					
						All

					
					
						scAAV9-SMN

					
					
						EP 08786331.2

					
					
						EP2185712

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Europe

					
					
						22/07/2008

					
					
						N/A (other serotype)**

					
					
						N/A            (other serotype**

					
					
						EP 12 172 848.9

					
					
						EP2514827

					
					
						 

					
					
						 

					
					
						 

				
	
					
						USA

					
					
						22/07/2008

					
					
						Intravascular or

					
						Intraperitoneal

					
					
						scAAV9-SMN

					
					
						12/452,789

					
					
						US 2010/0130594

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Canada

					
					
						22/07/2008

					
					
						Intravascular, intraperitoneal, intramuscular

					
					
						scAAV9-SMN

					
					
						CA20082694241

					
					
						CA 2694241

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						“Widespread Gene Delivery to Motor Neurons Using Peripheral Injection of AAV Vectors”  GENETHON [B00703 MB],  CNRS [DI 02300- 02]

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Europe

					
					
						05/10/2007

					
					
						N/A (withdrawn)

					
					
						N/A (withdrawn)

					
					
						EP 07301435.9

					
					
						EP2058401

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PCT

					
					
						03/10/2008

					
					
						N/A (expired)

					
					
						N/A (expired)

					
					
						PCT/EP2008/063297

					
					
						W02009/043936

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Canada

					
					
						03/10/2008

					
					
						Intravascular, intraperitoneal, intramuscular

					
					
						scAAV9-SMN

					
					
						CA20082701561

					
					
						CA 2701561

					
					
						 

					
					
						 

					
					
						 

				
	
					
						China

					
					
						03/10/2008

					
					
						N/A (rejected)

					
					
						N/A (rejected)

					
					
						CN20088117413

					
					
						CN 101883859

					
					
						 

					
					
						 

					
					
						 

				
	
					
						China

					
					
						03/10/2008

					
					
						Peripheral

					
					
						scAAV9-SMN

					
					
						CN201510438197.1

					
					
						CN 105087650

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Europe

					
					
						03/10/2008

					
					
						Intravenous, Intraperitoneal  or

					
						intramuscular

					
					
						scAAV9-SMN

					
					
						EP 08836776.8

					
					
						EP 2212424

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Europe

					
					
						03/10/2008

					
					
						Peripheral

					
					
						ssAAV9-SMN

					
					
						EP 12 180 951.1

					
					
						EP 2527457

					
					
						 

					
					
						 

					
					
						 

				
	
					
						USA

					
					
						03/10/2008

					
					
						Intravenous        or intra-arterial

					
					
						scAAV9-SMN

					
					
						12/734,016

					
					
						US 2010/0240739

					
					
						 

					
					
						 

					
					
						 

				
	
					
						USA

					
					
						22/09/2017

					
					
						All

					
					
						scAAV9-SMN

					
					
						15/713,347

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Japan

					
					
						03/10/2008

					
					
						Peripheral

					
					
						scAAV9-SMN

					
					
						JP20100527467T

					
					
						JP 2010540598

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Japan

					
					
						01/07/2014

					
					
						Peripheral

					
					
						ssAAV9-SMN

					
					
						2014-136031

					
					
						JP2014221789

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			*: By product we mean the Licensed Product constructions covered by the Licensed Patents in the Field of the license granted under section 2.1, i.e. restricted to AAV9.
		

		
			 
		

		
			**: The European divisional with the publication number  EP2514827 covers a serotype that is not included in the Field of the License.
		

		
			 
		

		
			 
		

		
			

		 

		

			Page 28 / 31

		

		

			 

		

		

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			Exhibit B
Press Release
		

		
			 
		

			
					
						

					
					
						

				

		
			 
		

		
			Media Inquiries:
		

		
			 
		

		
			Lauren Barbiero W2O Group 646-564-2156
		

		
			lbarbiero@w2ogroup.com
		

		
			 
		

		
			Investor Inquiries:
		

		
			Jim Goff AveXis, Inc. 650-862-4134
		

		
			jgoff@avexis.com
		

		
			 
		

		
			AFM-Telethon Press Contact:
		

		
			Stéphanie Bardon
		

		
			+330169471278
		

		
			presse@afm.genethon.fr
		

		
			 
		

		
			AveXis Enters into Licensing Agreement with Genethon
		

		
			Includes exclusive worldwide rights to AAV9-SMN product and route of administration
		

		
			 
		

		
			Chicago, Ill. and Evry, France (March XX, 2018) – AveXis, Inc. (NASDAQ:AVXS) and Genethon today announced they have entered into an exclusive, worldwide license agreement for in vivo gene therapy delivery of AAV9 vector into the central nervous system (CNS) for the treatment of spinal muscular atrophy (SMA).
		

		
			 
		

		
			“Adding to our robust intellectual property estate, this agreement further strengthens our position by providing freedom to operate when using intravenous or intrathecal routes of administration to deliver the AAV9 vector into the CNS for the treatment of SMA,” said Sean Nolan, President and Chief Executive Officer of AveXis. “With our proprietary gene therapy, AVXS-101, currently being evaluated in patients with SMA in ongoing clinical trials in the U.S., and soon in Europe, we are pleased to have this exclusive worldwide agreement in place.”
		

		
			 
		

		
			Under the terms of the agreement, Genethon granted AveXis a license to patents in the U.S., Europe and Japan, for the AAV9 SMN product and in vivo gene therapy delivery of AAV9 vector into the CNS using intrathecal or intravenous routes of administration for the treatment of SMA.
		

		
			 
		

		
			“Genethon is pleased to enter into this agreement with AveXis and to contribute to the efforts for the development of treatments for SMA patients who have urgent medical needs,” said Frédéric Revah, Chief Executive Officer of Genethon. “It demonstrates Genethon’s capability
		

		
			 
		

		
			
		

		
			

		 

		

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			to develop effective first-in-class technologies and the excellence of our translational research driven by the commitment to treat patients living with rare diseases.”
		

		
			 
		

		
			About SMA
		

		
			SMA is a severe neuromuscular disease characterized by the loss of motor neurons leading to progressive muscle weakness and paralysis. SMA is caused by a genetic defect in the SMN1 gene that codes SMN, a protein necessary for survival of motor neurons. The incidence of SMA is approximately one in 10,000 live births and is the leading genetic cause of infant mortality.
		

		
			 
		

		
			The most severe form of SMA is Type 1, a lethal genetic disorder characterized by motor neuron loss and associated muscle deterioration, which results in mortality or the need for permanent ventilation support before the age of two for greater than 90 percent of patients. SMA Type 2 typically presents between six and 18 months of age, and those affected will never walk without support and most will never stand without support. SMA Type 2 results in mortality in more than 30 percent of patients by the age of 25.
		

		
			 
		

		
			About AVXS-101
		

		
			AveXis’ initial product candidate, AVXS-101, is its proprietary gene therapy currently in development for the one-time treatment of SMA Types 1 and 2, designed to address the monogenic root cause of SMA and prevent further muscle degeneration by addressing the defective and/or loss of the primary SMN gene. AVXS-101 also targets motor neurons, providing rapid onset of effect and crossing the blood brain barrier to allow effective targeting of both central and systemic features.
		

		
			 
		

		
			About AveXis, Inc.
		

		
			AveXis, Inc. is a clinical-stage gene therapy company, dedicated to developing and commercializing novel treatments for patients suffering from rare and life-threatening neurological genetic diseases. Our initial product candidate, AVXS-101, is our proprietary gene therapy currently in development for the treatment of spinal muscular atrophy, or SMA, Type 1, the leading genetic cause of infant mortality, and SMA Type 2. The U.S. Food and Drug Administration, or FDA, has granted AVXS-101 Orphan Drug Designation for the treatment of all types of SMA and Breakthrough Therapy Designation, as well as Fast Track Designation for the treatment of SMA Type 1. In addition to developing AVXS-101 to treat SMA Type 1 and Type 2, we also plan to develop other novel treatments for rare neurological diseases, including Rett syndrome and a genetic form of amyotrophic lateral sclerosis caused by mutations in the superoxide dismutase 1 (SOD1) gene.
		

		
			 
		

		
			About Genethon
		

		
			Created by the AFM-Telethon, the French Muscular Dystrophy Association (AFM), Genethon, located in Evry, France, is a non-profit R&D organization dedicated to the development of biotherapies for orphan genetic diseases, from the research to clinical validation. Genethon is specialized in the discovery and development of gene therapy drugs and has multiple ongoing programs at clinical, preclinical and research stage for neuromuscular, blood, immune system, and liver diseases.
		

		
			 
		

		
			AveXis Forward-Looking Statements
		

		
			This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, regarding, among other things, AveXis’ freedom to operate afforded by the license agreement with Genethon and AveXis’ research, development and regulatory plans for AVXS-101. Such forward-looking statements are based on current
		

		
			 
		

		
			
		

		
			

		 

		

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			Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions

		

 

		

			 

		

		

		
			 
		

		
			expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual results to differ materially from those projected in its forward-looking statements. Meaningful factors which could cause actual results to differ include, but are not limited to, the scope, progress, expansion, and costs of developing and commercializing AveXis’ product candidates; regulatory developments in the U.S. and EU, as well as other factors discussed in the "Risk Factors" and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of AveXis’ Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018. In addition to the risks described above and in the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the SEC, other unknown or unpredictable factors also could affect AveXis’ results. There can be no assurance that the actual results or developments anticipated by AveXis will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, AveXis. Therefore, no assurance can be given that the outcomes stated in such forward- looking statements and estimates will be achieved.
		

		
			 
		

		
			# # #
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			Page 31 / 31

		

		

			 

		

		

			Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portionsEXHIBIT 10.1 

 

EMPLOYMENT
AGREEMENT

BETWEEN

OFG BANCORP

AND

JOSÉ RAFAEL FERNÁNDEZ

 

 

This Employment
Agreement (the “Agreement”) is made and entered into on the 28th day of
February 2018, by and between OFG BANCORP, a financial holding company
that has its principal office in San Juan, Puerto Rico (the “Company”), and JOSÉ
RAFAEL FERNÁNDEZ (the “President and CEO” or “Mr. Fernández”).

 

WITNESSETH:

 

WHEREAS,
Mr. Fernández has been an executive officer of the Company since June 1991, is
presently the Company’s President, Chief Executive Officer, and Vice Chairman
of the Board of Directors, and the retention of his services for and on behalf
of the Company is of material importance to the preservation and enhancement of
the value of the Company's business;

 

WHEREAS,
the Company and the President and CEO wish to enter into this Agreement and
intend that this Agreement shall become effective on March 1, 2018 (the
“Effective Date”), and replace the Employment Agreement, dated September 27,
2016 between the Company and the President and CEO, which is now in effect;

 

NOW THEREFORE,
in consideration of the mutual covenants herein set forth, the Company and the
President and CEO do hereby agree as follows:

 

1.               
TERM OF EMPLOYMENT

 

1.1      
The Company hereby employs Mr. Fernández as its President and Chief Executive
Officer, and Mr. Fernández hereby accepts said employment and agrees to render
such services to the Company on the terms and conditions set forth in this
Agreement for a term commencing on the Effective Date and ending on June 30,
2021, unless further extended or sooner terminated in accordance with the terms
and conditions herein set forth.

 

Unless written notice
of non-renewal is given by either party not less than one hundred twenty (120)
days in advance of the expiration of the term, this Agreement will be
automatically extended for one (1) additional year.  Unless otherwise agreed to
in writing by Mr. Fernández and the Company, and except in the event of a
termination for just cause pursuant to Section 6.1 hereof or a removal or bar
from office pursuant to Section 6.5 hereof, Mr. Fernández shall remain as an
employee of the Company after the expiration of the term of this Agreement and
shall be entitled to all the rights and benefits of an employee under the laws
of the Commonwealth of Puerto Rico.

 

 

 

1.2         During
the term of this Agreement, the President and CEO shall devote his best efforts
to performing such services for the Company as may be consistent with his title
of President and Chief Executive Officer and those which from time to time may
be assigned to him by the Company’s Board of Directors (the “Board of
Directors”).

 

1.3         The
services of the President and CEO to the Company shall be rendered principally
in the Commonwealth of Puerto Rico, but he shall do such traveling on behalf of
the Company as may be reasonably required by his duties.

 

1.4         The
President and CEO shall report directly to the Board of Directors and shall
have overall responsibility for all of the business and affairs of the Company,
including making all determinations concerning hiring, dismissal and
compensation for all classes of employees of the Company (exception in the case
of the Head of the Company’s Internal Audit Department), which determinations
shall be in accordance with the policies for such hiring, dismissal and
compensation established by the Compensation Committee of the Board of
Directors (the “Compensation Committee”) from time to time and in accordance with
applicable laws, rules and regulations, including the applicable regulations of
the Federal Deposit Insurance Corporation (the “FDIC”), the Board of Governors
of the Federal Reserve System (the “FRB”), the Securities and Exchange
Commission (“SEC”), and the Office of the Commissioner of Financial
Institutions of Puerto Rico (the “OCFI”).

 

1.5         The
President and CEO shall continue to occupy his position as Vice Chairperson of
the Board of Directors. Furthermore, during the term of this Agreement and any
extension thereof, and in any election of directors in which his term as a
member of the Board of Directors will expire, the Board of Directors shall
nominate and recommend to the Company’s stockholders the election of Mr.
Fernández to the Board of Directors and, if elected, the Board of Directors
shall appoint him as its Vice Chairperson.

 

 

2.               
COMPETITIVE ACTIVITIES

 

2.1         The
President and CEO agrees that during the term of this Agreement, except with
the express written consent of the Board of Directors, he will not, directly or
indirectly, engage or participate in, become a director of, or render advisory
or other services for, or in connection with, or become interested in, or make
financial investment in any firm, corporation, business entity or business
enterprise; provided, however, that the President and CEO shall not thereby be
precluded or prohibited from owning passive investments including investments
in the securities of other financial institutions, so long as such ownership
does not require him to devote substantial time to management or control of the
business or activities in which he has invested.

 

2.2         The
President and CEO agrees and acknowledges that during the time that he is
employed by the Company, he will maintain an intimate knowledge of the
activities and affairs of the Company including trade secrets and other
confidential matters.  As a result, and also because of the special, unique,
and extraordinary services that the President and CEO is capable of performing for
the Company or one of its competitors, the President and CEO recognizes that
the services to be rendered by him hereunder are of a character giving them a
peculiar value, the loss of which cannot be adequately or reasonably
compensated for by damages.  Therefore, if during the time he is employed by
the Company, the President and CEO renders services to a competitor of the
Company other than 

 

 

as authorized pursuant to Section
2.1 hereof, the Company shall be entitled to immediate injunctive or other
equitable relief to restrain the President and CEO from rendering his services
to the competitor of the Company, in addition to any other remedies to which
the Company may be entitled under law; provided, however, that the right to
such injunctive or other equitable relief shall not survive the termination of
the President and CEO’s employment with the Company.

 

 

3.           COMPENSATION AND REIMBURSEMENT OF
EXPENSES

 

3.1         Compensation. 

 

(a) The Company
will compensate and pay the President and CEO an annual base salary of eight
hundred sixty-five thousand dollars ($865,000) equivalent to seventy two
thousand eighty three dollars and thirty three cents ($72,083.33) per month for
his services to the Company during the term of this Agreement.

 

(b) Not later than
March 31 of each contract year, the Compensation Committee shall evaluate and
determine the amount of any increase to the President and CEO’s annual base
salary.  Any increases to the President and CEO’s annual base salary determined
by the Compensation Committee shall be effective on January 1 of the then
running contract year and the increased annual base salary shall become the
President and CEO’s new contractual annual base salary.

 

3.2         Bonus.  
The Company shall set for the President and CEO an annual target bonus of one
hundred percent ( 100%) of his annual base salary as may be earned by him under
the Company’s non-equity incentive bonus plan (the “Incentive Bonus”).  The
bonus shall be due and payable on or before March 31 of each contract year of
this Agreement commencing with the bonus corresponding to calendar year 2016
due and payable on or before March 31, 2017.

 

3.3         Expense
Allowance.  During the term of this Agreement and
any extension thereof, the Company shall provide the President and CEO an
annual expense allowance (the “Expense Allowance”)in the amount of eighty five
thousand dollars ($85,000) from which the President and CEO shall pay his (i)
car-related expenses; (ii) membership expenses for social, business or professional
organizations (all such membership(s) shall be maintained in the name of the
President and CEO); and (iii) any other expenses which, in his judgment, are
reasonably appropriate for the performance of his duties under this Agreement.

 

3.4         Reimbursement
of Expenses.  Not less frequently than monthly, the
Company shall pay for or reimburse the President and CEO for all reasonable
travel and other expenses incurred by the President and CEO in the performance
of his duties under this Agreement, including, without limiting the generality
of the foregoing, the Expense Allowance provided for in Section 3.3 above.

 

3.5         Life
Insurance.  The Company shall renew for an
additional ten (10) year term the existing ten (10) year term life insurance
policy in the sum of three million dollars ($3,000,000) covering the life of
the President and CEO and having as its beneficiary the spouse and heirs of Mr.
Fernández; provided, that the President and CEO may designate in writing from
to time any other person or entity as its beneficiary.  The President and CEO
hereby authorize the Company to use reasonable efforts to obtain at a 

 

 

reasonable cost a ten million dollar ($10,000,000) key-man
term life insurance policy covering his life and having the Company as its
beneficiary.  For as long as the President and CEO is employed by the Company,
all premiums and costs associated with such term life insurance policy  shall
be for the account of the Company.

 

3.6         Vacation. 
The President and CEO shall be entitled to twenty-five (25) days of paid
vacation each year during the term of this Agreement.

 

 

4.           DISABILITY

 

4.1         If
the President and CEO shall become physically or mentally disabled or incapacitated
to the extent that he is unable to perform his duties under this Agreement, and
so long as such disability continues, the President and CEO shall, subject to
the provisions of Section 6.2 and 6.3 hereof, and for a period not to exceed
the remaining term of this Agreement, continue to receive his full
compensation, as set forth in Section 3 hereof, including an annual cash bonus
equal to the annual cash bonus paid to him in the last fiscal year prior to his
disability or incapacitation.

 

4.2         There
shall be deducted from the amounts paid to the President and CEO hereunder
during any period of disability or incapacitation, as described in Section 4.1
hereof, any amounts actually paid to the President and CEO pursuant to any
disability insurance or other similar program(s) which the Company has
instituted or may institute on behalf of its employees for the purpose of
providing compensation in the event of disability.

 

 

5.         ADDITIONAL COMPENSATION AND
BENEFITS

 

5.1         During
the term of this Agreement, the President and CEO will be entitled to
participate in, and receive the benefits of, any equity-based compensation
plan, profit sharing plan, or other plans, benefits and privileges given to
employees and executives of the Company or its subsidiaries and affiliates
which may now exist or come into existence hereinafter, to the extent
commensurate with his then duties and responsibilities, as fixed by the
Compensation Committee, and, to the extent that the President and CEO is
otherwise eligible and qualifies, to so participate in, and receive such
benefits or privileges.  The Company shall not make any changes in such plans,
benefits or privileges which would adversely affect the President and CEO’s
rights or benefits there under, unless such change or changes are made pursuant
to a program applicable to all executives of the Company and does not result in
a proportionately greater adverse change in the rights of or benefits to the
President and CEO as compared to any executive officer of the Company.  Nothing
paid to the President and CEO under any plan or arrangement presently in effect
or made available in the future shall be deemed in lieu of the annual base
salary, Incentive Bonus, Special Bonus, Expense Allowance and term life insurance
payable or provided to the President and CEO pursuant to Sections 3.1, 3.2, 3.3
and 3.5 hereof.

 

5.2         (a)
The Company shall pay the remaining balance, $425,000, of the $850,000 special
bonus granted to Mr. Fernandez pursuant to the September 27, 2016 employment
agreement (the “Special Bonus”).  The remaining balance of $425,000 shall be
paid to Mr. Fernández in three equal semi-annual installments with the first
such installment to be paid on July 1, 2018, the second installment to be paid
on January 1, 2019, and the final such installment to be paid on July 1, 2019.
If Mr. Fernández 

 

 

employment is terminated for any
reason before the expiration of the term of this Agreement (other than
termination caused by the death or disability of Mr. Fernández), then he shall
not be entitled to receive any further installments of the Special Bonus. 

 

(b) The Compensation
Committee shall consider in each contract year of this Agreement granting the
President and CEO additional incentive compensation under the Company’s
equity-based compensation plan based on his performance scorecard, as approved
by the Compensation Committee, up to an annual amount equal to eighty five
percent (85%) of his annual base salary. The incentive compensation grants to
the President and CEO shall be made on or before March 31 of each contract year
of this Agreement commencing with the year 2017. As long as he is in compliance
with the requirements of the Company’s Stock Ownership Policy, with respect to
any incentive compensation award granted to him by the Compensation Committee,
the President and CEO shall have the option of electing to receive the award in
deferred cash equivalents.

 

(c) Restrictions on the
restricted stock units granted to the President and CEO hereunder will expire on
the third anniversary of the award or earlier in the event of a Change of
Control of the Company, as defined in the Change in Control Compensation
Agreement between the Company and the President and CEO, dated December 5,
2004, as amended (the “Change in Control Compensation Agreement”), or if the
President and CEO dies or becomes disabled.

 

 

6.         TERMINATION

 

6.1         The
Board of Directors shall have the right, at any time upon prior written Notice
of Termination (as defined in Section 6.8(b) hereof), to terminate the
President and CEO’s employment hereunder for just cause or in connection with a
removal or bar from office pursuant to Section 6.5 hereof.  For purposes of
this Agreement, the term “termination for just cause” shall mean termination
because of the willful and continued failure of the President and CEO to
perform his duties under this Agreement, or the willful engaging by the
President and CEO in illegal conduct or gross misconduct materially injurious
to the Company as determined by a court of competent jurisdiction or a federal
or state regulatory agency having jurisdiction over the Company.  For purposes
of this paragraph, no act, or failure to act, on the part of the President and
CEO shall be considered “willful” unless done, or omitted to be done, by him
not in good faith and without reasonable belief that his action or omission was
in the best interest of the Company; provided, however, that any act or
omission to act by the President and CEO in reliance upon an opinion of counsel
to the Company or counsel to the President and CEO shall not be deemed to be
willful.

 

6.2         In
the event the President and CEO’s employment is terminated for just cause
pursuant to Section 6.1 hereof or he is removed or barred from office pursuant
to Section 6.5 hereof, the President and CEO shall have no right to
compensation or other benefits for any period after such date of termination. 
If the President and CEO is terminated by the Company other than for just cause
pursuant to Section 6.1 hereof, other than in connection with a removal or bar
from office pursuant to Section 6.5 hereof, and other than in connection with a
Change of Control of the Company, as defined in the Change in Control
Compensation Agreement, the President and CEO’s right to compensation and other
benefits under this Agreement shall be as set forth in Sections 6.8(c) and (d)
hereof.

 

 

 

6.3        
The
President and CEO shall have the right, upon prior written Notice of
Termination of not less than thirty (30) days, to terminate his employment
hereunder.  In such event, the President and CEO shall have the right, as of
the date of termination, to receive all accrued compensation and other benefits
provided for in this Agreement; provided, however, that if the President and CEO
terminates his employment hereunder for “good reason” pursuant to Section
6.8(a) hereof he shall be entitled to receive the severance payment provided
for in Section 6.8(c) hereof.  If the President and CEO provides a Notice of
Termination for good reason, the date of termination shall be the date on which
the Notice of Termination is given to the Company.

 

6.4         If
the President and CEO is suspended from office and/or temporarily prohibited
from participating in the conduct of the Company’s affairs pursuant to a notice
served under the Federal Deposit Insurance Act (“FDIA”), the Federal Reserve
Act (“FRA”), the Bank Holding Company Act of 1956 (the “BHCA”), the Securities
Exchange Act of 1934 (the “SEA”), or the Puerto Rico Banking Act (the “PRBA”), each
as amended from time to time, the Company’s obligations under this Agreement
shall be suspended as of the date of service unless stayed by appropriate
proceedings.  If the charges in the notice are dismissed, the Company shall: 
(i) pay the President and CEO all the compensation withheld while contractual
obligations were suspended, and (ii) reinstate in whole or in part, as
applicable, any of the Company’s obligations which were suspended.

 

6.5         If
the President and CEO is removed from office and/or permanently prohibited from
participating in the conduct of the Company’s affairs by an order issued under
the FDIA, the FRA, the BHCA, the SEA, or the PRBA all obligations of the
Company under this Agreement shall terminate, as of the effective date of the
order, but the rights of the President and CEO to compensation earned as of the
date of termination shall not be affected.

 

6.6         If
the Company is in default, as defined to mean an adjudication or other official
determination of a court of competent jurisdiction or other public authority
pursuant to which a conservator, receiver or other legal custodian is appointed
for the Company for the purpose of liquidation, all obligations under this
Agreement shall terminate as of the date of default, but the rights of the
President and CEO to compensation and benefits accrued as of the date of
termination shall not be affected.

 

6.7         In
the event that the President and CEO is terminated in a manner which violates
the provisions of Section 6.1 hereof, as determined by a court of competent
jurisdiction, the President and CEO shall be entitled to reimbursement for all
reasonable costs, including attorneys’ fees, in challenging such termination. 
Such reimbursement shall be in addition to all rights to which the President
and CEO is otherwise entitled under this Agreement.

 

6.8         (a)
The President and CEO may terminate his employment hereunder for good reason. 
For purposes of this Agreement, the term “good reason” shall mean (i) a failure
by the Company to comply with any material provision of this Agreement, which
failure has not been cured within ten (10) days after a notice of such noncompliance
has been given by the President and CEO to the Company; (ii) any purported
termination of the President and CEO’s employment hereunder which is not
effected pursuant to a Notice of Termination (and for purposes of this
Agreement no such purported termination shall be effective); (iii) any
reduction in the President and CEO’s compensation and fringe benefits,
including a reduction in his Incentive Bonus  opportunity, or Special Bonus,
without his written consent; (iv) failure to nominate the President and CEO for
reelection as a member of the Board of Directors and, if elected, failure to
appoint him as Vice Chairman of the Board of Directors as herein provided; (v)
a material diminution in his 

 

 

positions, duties and
authorities as President and Chief Executive Officer of the Company; (vi) if
President and CEO is not the President and Chief Executive Officer of the
ultimate parent entity resulting from a Change of Control of the Company, as
defined in the Change in Control Compensation Agreement; (vii) a change in
reporting structure so that the President and CEO reports to someone other than
the Board of Directors, or (viii) the failure of any successor to all or
substantially all of the Company’s assets to assume this Agreement whether in
writing or by operation of law.

 

(b) Any termination of
the President and CEO’s employment by the Company or by the President and CEO
shall be communicated by a written Notice of Termination to the other party
hereto.  For purposes of this Agreement, the term “Notice of Termination” shall
mean a dated notice which shall (i) indicate the specific termination provision
in the Agreement relied upon; (ii) set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the President and
CEO’s employment under the provision so indicated; (iii) specify a date of
termination, which shall be not less than thirty (30) nor more than ninety (90)
days after such Notice of Termination is given, except in the case of the
Company’s termination of the President and CEO’s employment for just cause
pursuant to Section 6.1 hereof or in connection with a removal or bar from
office pursuant to Section 6.5 hereof, in which case the Notice of Termination
may specify a date of termination as of the date such Notice of Termination is
given; and (iv) be given in the manner specified in Section 9.1 hereof.

 

(c) In the event that: 
(i) the President and CEO shall terminate his employment for good reason as
defined in Section 6.8(a) hereof, or (ii) if the President and CEO is
terminated by the Company other than for just cause pursuant to Section 6.1
hereof, other than in connection with a removal or bar from office pursuant to
Section 6.5 hereof, and other than in connection with a Change of Control of the
Company, as defined in the Change in Control Compensation Agreement, then in
lieu of any further compensation to the President and CEO for periods
subsequent to the date of termination, the Company shall pay as severance to
the President and CEO an amount equal to the product of (A) the aggregate
annual compensation paid to or payable by the Company and any of its
subsidiaries to the President and CEO during the year in which the termination
of the President and CEO’s employment occurs, which amount shall include the
President and CEO’s (i) annual base salary, and (ii) Incentive Bonus  (equal to
the average aggregate cash bonuses paid to the President and CEO in the last
two fiscal years prior to the date of termination of employment), multiplied by
(B) 3.00, such payment to be made in a lump sum on or before the fifth day
following the date of termination.

 

(d) Unless the
President and CEO’s employment is terminated for just cause pursuant to Section
6.1 hereof, or in connection with a removal or bar from office pursuant to
Section 6.5 hereof, or in connection with a Change of Control of the Company,
as defined in the Change in Control Compensation Agreement, the Company shall
maintain in full force and effect, for the continued benefit of the President
and CEO for the balance of the term of this Agreement (as such term may have
been extended as provided herein), all employee benefit plans and programs in
which the President and CEO was entitled to participate immediately prior to
the date of termination, provided that the President and CEO’s continued
participation is possible under the general terms and provisions of such plans
and programs, and, further provided, that the Company shall not be obligated to
continue the payment of health benefits if the President and CEO receives equal
or greater health benefits under the medical plan of a subsequent employer.

 

 

 

(e)
The President and CEO shall not be required to mitigate the amount of any
payment provided for in paragraphs (c) and (d) of this Section 6.8 by seeking
other employment or otherwise.

 

 

7.         INDEMNIFICATION

 

7.l         The
Company shall indemnify the President and CEO to the fullest extent authorized
by applicable federal and Commonwealth of Puerto Rico laws and regulations
(including 12 C.F.R. part 359), with respect to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the Company) that
the President and CEO is a party or is threatened to made a party by reason of
the fact that he is or was the President and Chief Executive Officer of the
Company or that he is or was a member of the Board of Directors, or is or was
serving at the written request of the Company as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise, against costs and expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted in good faith and
in a matter he reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful,
provided that the Company shall not be liable for any amounts which may be due
to the President and CEO in connection with a settlement of any action, suit or
proceeding effected without its prior written consent or any action, suit or
proceeding initiated by the President and CEO seeking indemnification hereunder
without its prior written consent.  The provisions of this Section 7.1 shall
also extend the conjugal partnership of the President and CEO and his spouse
and to the President and CEO’s spouse, when applicable, and shall survive the
termination of this Agreement.

 

 

8.         SUCCESSORS OF THE PARTIES

 

8.1         This
Agreement shall inure to the benefit of and be binding upon the President and
CEO, and, to the extent applicable, his assigns, executors, and personal
representatives and the Company, its successors, and assigns, including,
without limitation, any person, partnership, or corporation which may acquire
all or substantially all of the Company’s assets and business, or with or into
which the Company may be consolidated or merged, and this provision shall apply
in the event of any subsequent merger, consolidation, or transfer.

 

8.2         This
Agreement is personal to each of the parties hereto and neither party may
assign or delegate any of his or its rights or obligations hereunder without
first obtaining the written consent of the other party.

 

 

9.         NOTICES

 

9.1         All
notices required by this Agreement to be given by one party to the other shall
be in writing and shall be deemed to have been delivered either:

 

 

(a)        
When personally delivered to the office of the Secretary of the Company at
his regular corporate office, or the President and CEO in person; or

 

(b)         Five
days after depositing such notice in the United States mails, certified mail
with return receipt requested and postage prepaid to:

 

(i)         José Rafael Fernández

                                                       
(at the address of record in his employment

                                                       
file with the Company)

 

(ii)         OFG Bancorp 

                                                        
P.O. Box 195115

                                                        
San Juan, Puerto Rico 00919-5115

                                                        
Attention: 
Chairman–Compensation Committee

 

or such other address as either party
may designate to the other by notice in writing in accordance with the terms
hereof.

 

 

10.         AMENDMENTS OR ADDITIONS

 

10.1         No
amendments or additions to this Agreement shall be binding unless in writing
and signed by both parties.  The prior approval by a two-thirds affirmative
vote of the full Board of Directors shall be required in order for the Company
to authorize any amendments or additions to this Agreement, to give any consent
or waivers of provisions of this Agreement, or to take any other action under
this Agreement including any termination of the employment of the President and
CEO with or without just cause under Section 6.1 hereof.

 

 

11.         MISCELLANEOUS

 

11.1         No
course of conduct between the Company and President and CEO to exercise any
right or power given under this Agreement shall: (i) impair the subsequent
exercise of any right or power, or (ii) be construed to be a waiver of any
default or any acquiescence in or consent to the curing of any default while
any other default shall continue to exist, or be construed to be a waiver of
such continuing default or of any other right or power that shall theretofore
have arisen; and, every power and remedy granted by law and by this Agreement
to any party hereto may be exercised from time to time, and as often as may be
deemed expedient. All such rights and powers shall be cumulative to the fullest
extent permitted by law.

 

11.2         The
provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

 

11.3         This
Agreement shall be governed in all respects and be interpreted by and under the
laws of the Commonwealth of Puerto Rico, except to the extent that such law may
be preempted by applicable federal law, including applicable regulations,
opinions 

 

 

or orders duly issued by the FDIC, the FRB or
the SEC (“Federal Law”), in which event this Agreement shall be governed and be
interpreted by and under Federal Law.  Venue for the litigation of any and all
matters arising under or in connection with this Agreement shall be laid in the
United States District Court for the District of Puerto Rico, in the case of
federal jurisdiction, and in the Court of First Instance, Superior Part of San
Juan, of the Commonwealth of Puerto Rico, in the case of state court
jurisdiction.

 

11.4         Notwithstanding
anything to the contrary herein contained, the payment or obligation to pay any
monies or granting of any rights or privileges to the President and CEO as
provided in this Agreement shall not be in lieu or derogation of the rights and
privileges that the President and CEO now has under any plan or benefit
presently outstanding.

 

11.5         As
used herein, the term “Company” shall include all of the Company’s
subsidiaries.

 

11.6         This Agreement constitutes the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof and, as of the Effective Date, supersedes
all prior agreements and understandings, whether written or oral, relating to
such subject matter.  For the avoidance of doubt, nothing in this Agreement
limits, expands or otherwise amends the terms of the Change in Control
Compensation Agreement.

 

11.7         This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which taken together shall constitute one and the
same agreement.

 

11.8         The
heading of each section or paragraph of this Agreement is for reference
purposes only and shall not in any way affect the meaning or interpretation of
any provision of this Agreement.

IN WITNESS WHEREOF,
the parties have duly executed and delivered this Agreement in San Juan, Puerto
Rico, as of the date first above written.

 

PRESIDENT
AND CEO

 

 

              /s/ José Rafael
Fernández

José Rafael Fernández

 

 

OFG
BANCORP

 

By:       
Compensation Committee of the 

             
Board of Directors

 

 

 

By:
       /s/ Jorge
Colón Gerena

             
Jorge Colón Gerena 

             
Chairman – Compensation Committee

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