Document:

Exhibit 10.5

 

Execution Copy

 

AMENDMENT NO. 3 TO SPONSORED RESEARCH
AGREEMENT

 

This Amendment
No. 3 to Sponsored Research Agreement (this “Amendment”) is made and entered into as of March
29, 2019 (the “Amendment Date”), by and between Medgenics
Medical Israel Ltd.
(“Sponsor”) , a company organized under the laws of the State of Israel and wholly
owned subsidiary of Aevi Genomic Medicine, Inc., a Delaware corporation (“Aevi”), and The
Children’s Hospital
of Philadelphia, a non-profit entity organized and existing under the
laws of Pennsylvania (“CHOP”). CHOP and Sponsor are sometimes referred to in this Amendment individually
as a “Party” or, collectively, as the “Parties.”

 

Whereas,
CHOP and Sponsor are parties to that certain Sponsored Research Agreement dated November 12, 2014, as amended by Amendment No.
1 to Sponsored Research Agreement effective on December 18, 2015 and Amendment No. 2 to Sponsored Research Agreement effective
on February 16, 2017 and as extended by letters dated June 28, 2017 and June 26, 2018 (the “SRA”);

 

Whereas,
CHOP and Aevi have entered into that certain Agreement dated March 25, 2019 (the “CHOP-Aevi
Agreement”), pursuant to which CHOP and Aevi agreed to amend the SRA to adjust Sponsor’s option and
assignment rights under the SRA.

 

Now,
Therefore, in consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties mutually agree as follows:

 

		1.	Cancellation
                                         of Payments in Respect
                                         of Note

 

The Parties hereby
acknowledge and agree that, for the period from February 1, 2019 through and including September 30, 2019 (the “Special
Period”), Sponsor shall not be responsible for amounts that would otherwise be due to CHOP under Section 4.1, as
amended, during the Special Period, in consideration for which Sponsor’s controlling Affiliate, Aevi, shall issue the Note
to CHOP and cause Aevi, neuroFix (as defined herein), Sponsor and Aevi Genomic Medicine Europe BVBA (the “Subsidiary Guarantors”)
to enter into that certain Subsidiary Guarantee Agreement of even date herewith, and shall enter into and cause the Subsidiary
Guarantors to enter into that certain Security Agreement with CHOP of even date herewith.

 

		2.	Amendment
                                         of Article 1 (Definitions)

 

Effective as of the
Amendment Date, the following definitions are included at the end of Article 1 of the SRA. Capitalized terms used but not otherwise
defined in this Amendment have the meanings provided in the SRA.

 

“1.11       “Change
of Control ” means, with respect to SPONSOR or Aevi, the occurrence of any of the following:

 

i.       any
 “person” or “group” (as such terms are defined below): (a) is or becomes the “beneficial
owner” (as defined below), directly or indirectly, of shares of capital stock or other interests (including partnership
interests) of SPONSOR or Aevi then outstanding and normally entitled (without regard to the occurrence of any contingency) to
vote in the election of the directors, managers or similar supervisory positions (“Voting Stock”) of
SPONSOR or Aevi representing fifty percent (50%) or more of the total voting power of all outstanding classes of Voting Stock
of SPONSOR or Aevi; or (b) has the power, directly or indirectly, to elect at least one-half of the members of
SPONSOR’s or Aevi’s board of directors, or similar governing body (“Board of Directors”);
or

 

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ii.       SPONSOR
or Aevi enters into a merger, consolidation or similar transaction with another person (whether or not SPONSOR or Aevi is the
surviving entity) and as a result of such merger, consolidation or similar transaction (a) the members of the Board of
Directors of SPONSOR immediately prior to such transaction constitute less than a majority of the members of the Board of
Directors of SPONSOR, Aevi, or such surviving person immediately following such transaction; or (b) the persons that
beneficially owned, directly or indirectly, the shares of Voting Stock of SPONSOR or Aevi immediately prior to such
transaction cease to beneficially own, directly or indirectly, shares of Voting Stock of SPONSOR or Aevi representing at
least a majority of the total voting power of all outstanding classes of Voting Stock of the surviving person; or

 

iii.        SPONSOR
or Aevi sells, licenses, assigns or otherwise transfers to any third party, in one or more related transactions, properties or
assets representing all or substantially all of SPONSOR’s or Aevi’s consolidated total assets or all of SPONSOR’s
assets licensed under this Agreement; or

 

iv.        the
holders of capital stock of SPONSOR or Aevi approve a plan or proposal for the liquidation or dissolution of SPONSOR or
Aevi.

 

For the purpose of
this definition of “Change of Control,” (a) “person” and “group” have the meanings given
such terms under Section 13(d) and 14(d) of the Securities Exchange Act of 1934 and the term “group” includes
any group acting for the purpose of acquiring, holding or disposing of securities within the meaning of Rule 13d-5(b)(1)
under the said Act; (b) a “beneficial owner” will be determined in accordance with Rule 13d -3 under the
aforesaid Act; and (c) the terms “beneficially owned” and “beneficially own” will have meanings
correlative to that of “beneficial owner.”

 

Notwithstanding the foregoing,
in no event shall a Change of Control result from CHOP and/or any of its Affiliates (including the CHOP Foundation) acquiring or
having the right to acquire additional equity of or voting power over SPONSOR or Aevi or otherwise increasing its beneficial ownership
of SPONSOR, whether alone or as part of a group, or acquiring control through contract, representation on a governing body or otherwise.

 

1.12       “CHOP
Agreements” means: (i) the SRA; (ii) that certain License Agreement, dated November 12, 2014, by and between Medgenics
Medical Israel, Ltd. and CHOP, as amended to date; (iii) that certain License Agreement, dated September 9, 2015, by and between
neuroFix, LLC (“neuroFix”) and CHOP, as amended to date; (iv) that certain License Agreement, dated December
18, 2017, by and between Aevi and CHOP; (v) that certain License Agreement, dated October 3, 2016, by and between Aevi (as successor
in interest to Medgenics, Inc.) and CHOP; (vi) that certain License Agreement, dated October 20, 2016, by and between Aevi (as
successor in interest to Medgenics, Inc.) and CHOP; and (vii) that certain Sponsored Research Agreement, dated October 1, 2015,
by and between Aevi (as successor in interest to Medgenics, Inc.) and CHOP, as amended to date.

 

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1.13       “CHOP
Foundation” means The Children’s Hospital of Philadelphia Foundation, a non-profit entity organized and existing
under the laws of Pennsylvania, located at 3401 Civic Center Blvd., Philadelphia, PA 19104.

 

1.14       “Core
Services Agreement” means that certain Core Services Agreement by and among CHOP and neuroFix, dated March 19, 2015,
as amended to date.

 

1.15       “Note”
means that certain convertible secured note issued by Aevi to CHOP in the amount of three million one hundred sixty-six thousand
six hundred sixty-six and sixty-four cents ($3,166,666.64) on March 29, 2019.

 

1.16       “Suspension Period” means
from March 29, 2019 until the date of repayment in full of the Note.”

 

		3.	Amendment
                                         of Article 6 (Option)

 

(a)       Amendment
of Section 6.1, Option over Intellectual Property. Effective as of the Amendment Date, Section 6.1 of the SRA is hereby amended
and restated to read in its entirety as follows:

 

“Option Over
Intellectual Property. In consideration for sponsoring the RESEARCH PROGRAM, CHOP hereby grants to SPONSOR an option
to negotiate for a revenue-bearing license under the CHOP INTELLECTUAL PROPERTY and CHOP’s interest in the JOINT
INTELLECTUAL PROPERTY, except to the extent such intellectual property constitutes RARE AND ORPHAN DISEASE PROTOCOL
MATERIALS, (i) on an exclusive basis, to practice any patentable inventions (and patent rights therein or thereto) that are
directed to RARE AND ORPHAN DISEASES and are based upon, enabled by, derived from or use the biospecimen and phenotypic data
collected under Protocol 06-004886 “A Study of the Genetic Causes of Complex Pediatric Disorders” from patients
with RARE AND ORPHAN DISEASES and their family members and (ii) on a non-exclusive basis to practice any non-patentable
inventions, discoveries, materials, works of authorship (including computer software) and copyrighted materials that are
directed to RARE and ORPHAN DISEASES, in each case (i) and (ii) that were funded by SPONSOR pursuant to the BUDGET and, in
each case (i) and (ii) such license shall be in order to develop and commercialize products in the LICENSED FIELD. SPONSOR
may elect to exercise its option over such intellectual property by giving written notice to CHOP no later than two (2)
months after the date CHOP’s Office of Technology Transfer provides a copy of the invention disclosure for such
intellectual property to SPONSOR. Upon exercise of the option by SPONSOR with respect such intellectual property, for a
period ending on the date that is two (2) months after the date that the SPONSOR exercises its option over such
intellectual property, the Parties shall negotiate in good faith for a license agreement for such intellectual property.
After such time, if the Parties do not enter into a license agreement, all rights of SPONSOR relating to such Intellectual
Property under this Agreement shall automatically terminate.

 

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Notwithstanding the
foregoing, during the Suspension Period: (i) SPONSOR’s right to exercise the option granted to SPONSOR in this Section
6.1 (and the associated exercise period for such option) will be suspended; and (ii) CHOP shall not grant an option or
license to any third party for any intellectual property that is subject to SPONSOR’s suspended right to exercise the
option granted in this Section 6.1. For any intellectual property CHOP discloses to SPONSOR during the Suspension Period,
SPONSOR may elect to exercise its option granted in this Section 6.1 over such intellectual property no more than thirty (30)
days following the expiration of the Suspension Period. Upon exercise of such option by SPONSOR within thirty (30) days
following the expiration of the Suspension Period, for a period ending on the date that is two (2) months after the date that
SPONSOR exercises its option, the Parties shall negotiate in good faith for a license agreement for such intellectual
property. After such time, if the Parties do not enter into a license agreement, all rights of SPONSOR relating to such
intellectual property under this Agreement shall automatically terminate.

 

Any such license agreement shall
include the objective diligence obligations contained in this Section 6.1. Within one (1) year after the date that SPONSOR exercises
its option granted under this Section 6.1, SPONSOR shall negotiate in good faith and execute a bona fide term sheet with a Third
Party for a viable molecule to address the target that is the subject of such optioned intellectual property. SPONSOR shall provide
CHOP with a copy of such term sheet within five (5) days after execution of such term sheet. Within two (2) years after the date
that SPONSOR executes such term sheet with a Third Party, SPONSOR shall initiate clinical trials (i.e., first dosing of first patient)
for such molecule. If SPONSOR fails to meet either of the foregoing milestones (i.e., execution of term sheet or initiation of
clinical trials within the required time period), then the definitive license agreement executed by the Parties with respect to
such intellectual property for which Licensee exercised its option will automatically terminate.”

 

(b)       Amendment
of Section 6.2, Right of First Refusal. Effective as of the Amendment Date, Section 6.2 of the SRA is hereby amended and restated
to read in its entirety as follows:

 

“Right of First Refusal.
If SPONSOR exercises option rights under Section 6.1 and CHOP and SPONSOR do not enter into a license agreement for the applicable
intellectual property described in Section 6.1, then for a period of six (6) months following the date that CHOP’s Office
of Technology Transfer provided a copy of the applicable invention disclosure to SPONSOR pursuant to Section 6.1, if CHOP desires
to license such intellectual property in the LICENSED FIELD to third party commercial entity, prior to entering into such license,
CHOP shall provide SPONSOR with a summary of the final and material terms of such proposed license (which summary, for the avoidance
of doubt, shall not include the name of, or any other identifying information about, such third party). SPONSOR shall have thirty
(30) days following receipt of such summary from CHOP to elect and enter into such license on the same terms (including the same
timing of payments) set forth in the summary; provided that such thirty (30) day period shall be extended for up to thirty (30)
additional days so long as SPONSOR is negotiating in good faith with CHOP. If SPONSOR does not enter into the license within such
period on such terms, CHOP shall be free to enter into the license with the third party on such terms.”

 

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(c)       Deletion
of Section 6.3, Option to Assign Assets. Effective as of the Amendment Date, Section 6.3 is hereby deleted in its entirety
and replaced as follows:

 

“Intentionally omitted.”

 

		4.	Amendment
                                         of Article 9 (Termination)

 

Effective as of the
Amendment Date, the following text is hereby added as Section 9.4 of the SRA.

 

“Termination by CHOP
for Default. If the SPONSOR or an Affiliate of SPONSOR, including Aevi, fails to make any payment due under any of the CHOP
Agreements or under the Core Services Agreement, then this Agreement will automatically terminate; provided that this Section
9.4 will not apply to any payment deferral or cancellation under this Agreement to which the Parties mutually agree in writing.
For clarity, Section 9.2 will apply to any termination of this Agreement pursuant to this Section 9.4.”

 

		5.	Amendment
                                         of Article 11 (Additional
                                         Provisions)

 

(a)       Amendment
of Section 11.7, Assignment. Effective as of the Amendment Date, Section 11.7 of the SRA is hereby amended and restated to
read in its entirety as follows:

 

“Assignment.
This Agreement shall not be assigned or otherwise transferred by SPONSOR except with the prior written consent of CHOP. CHOP shall
respond to each assignment or transfer request made by SPONSOR pursuant to this Section1 1.7 within two (2) weeks of receipt of
such request. Any purported assignment or transfer in contravention of this Section 11.7 shall be null and void and of no effect
and, upon such purported assignment, this Agreement will automatically terminate. Assignment shall not relieve SPONSOR of its obligations
under this Agreement.”

 

(b)       Addition
of Section 11.17, Change of Control. Effective as of the Amendment Date, the following text is hereby added as Section 11.17
of the SRA.

 

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“Change of Control.
SPONSOR shall obtain CHOP’s written consent at least five (5) business days prior to the anticipated date of consummation
of any Change of Control. Upon the consummation of any Change of Control by SPONSOR without CHOP’s prior written consent
this Agreement will automatically terminate.”

 

		6.	Single
                                         Instrument.

 

This Amendment
and the SRA, as amended and modified by this Amendment, shall constitute and shall be construed as a single instrument. The
provisions of the SRA, as amended and modified by the provisions of this Amendment, are incorporated herein by this reference
and are hereby ratified and reaffirmed.

 

		7.	Counterparts.

 

This Amendment
may be executed in counterparts, each of which shall be deemed an original document, and all of which, together with this
writing, shall be deemed one instrument. This Amendment may be executed by electronic, facsimile or PDF signatures, which
signatures shall have the same force and effect as original signatures.

 

Signature Page to Follow

 

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In Witness Whereof,
the Parties have executed and delivered this Amendment as of the Amendment Date.

 

	THE CHILDREN’S HOSPITAL OF PHILADELPHIA	 	MEDGENICS MEDICAL ISRAEL, LLC
	 	 	 
	By:	/s/ Thomas Todorow	 	By:	/s/ Michael Cola
	 	 	 	 	 
	Name:	Thomas Todorow	 	Name:	Michael Cola
	 	 	 	 	 
	Title:	EVP + Chief Financial Officer	 	Title:	CEO

 

[Signature page to November 12, 2014 Medgenics Medical Israel,
Ltd. License Agreement]Exhibit 10.6

 

Aevi Genomic Medicine, Inc.

435 Devon Park Drive, Suite 715

Wayne, Pennsylvania 19087

 

March 29, 2019

 

The Children's Hospital of Philadelphia

3401 Civic Center Blvd.

Philadelphia, PA 19104

Attention: Tom Todorow, CFO

 

Re:        Agreement, dated March 25, 2019 

 

Ladies and Gentlemen:

 

This letter
agreement (this “Agreement”) serves to formalize certain covenants made in the Agreement by and between
Aevi Genomic Medicine, Inc. (“Aevi”) and The Children’s Hospital of Philadelphia (“CHOP”)
on March 25, 2019. Reference is also made to: (i) that certain Sponsored Research Agreement, dated November 12, 2014, by and between
Medgenics Medical Israel Ltd. ("Medgenics") and CHOP, as amended to date (the “SRA”),
(ii) that certain License Agreement, dated November 12, 2014, by and between Medgenics and CHOP, as amended to date, (iii) that
certain License Agreement, dated September 9, 2015, by and between neuroFix, LLC and CHOP, as amended to date, (iv) that certain
License Agreement, dated December 18, 2017, by and between Aevi and CHOP, as amended to date, (v) that certain License Agreement,
dated October 3, 2016, by and between Medgenics, Inc. and CHOP, as amended to date and (vi) that certain License Agreement, dated
October 20, 2016, by and between Medgenics, Inc. and CHOP, as amended to date ((ii) – (vi), collectively, the “CHOP
Agreements”). Simultaneously with this Agreement, Aevi and CHOP are amending each of the CHOP Agreements (the “Amendments”)
and Aevi is issuing a convertible secured note to CHOP in the amount of $3,166,666.64 (the “Note”). In
consideration for CHOP’s entry into the Amendments and in addition to Aevi’s issuance of the Note, Aevi covenants for
the benefit of CHOP:

 

1.       Through
and including June 23, 2019, Aevi will not undertake any equity financing (including the issuance of convertible notes) that would
have a dilutive effect on the then-existing holders of Aevi common stock, par value $0.0001 per share (the “Common
Stock”). For the avoidance of doubt, any issuance of Common Stock at less than closing market price per share of
Common Stock on the Nasdaq Stock Market LLC would be deemed dilutive, but any issuance of Common Stock at or above such price would
not be deemed dilutive unless paired with warrants regardless of the strike price thereof, and any issuance of convertible notes
at a conversion price at less than such closing market price of Common Stock would be deemed dilutive but any issuance of convertible
notes at a conversion price at or above such closing market price of Common Stock would not be deemed dilutive unless paired with
warrants regardless of the strike price thereof. Thereafter and until the later of Aevi's repayment in full of the Note or June
30, 2020, Aevi will only undertake an equity financing (including the issuance of convertible notes) if the net proceeds after
expenses thereof are reasonably sufficient to provide Aevi with at least six months of cash to sustain operations based on its
then-current business plan; provided, however, that CHOP shall have a right of first refusal to purchase any or all
equity proposed to be issued in such financing on the same terms upon which any third party investors would have subscribed.

 

2.       Aevi
agrees to pay CHOP the $124,027.20 currently owed under that certain Core Services Agreement, dated as of March 19, 2015, by and
among CHOP and neuroFix Therapeutics LLC (“neuroFix”), as amended to date, and agrees to remain current
on the payments due under all other intercompany agreements between Aevi or any of its subsidiaries, on the one hand, and CHOP,
on the other hand, other than the SRA. If Aevi defaults on any such payments (in accordance with the terms of such agreements),
then Aevi’s rights under all of the CHOP Agreements and the Sponsored Research Agreement, dated October 1, 2015, by and between
CHOP and Aevi, as amended to date, will immediately terminate. 

 

This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania.

 

[Remainder of Page Intentionally Left Blank]

 

     

    

    

 

	Very truly yours,	 	Agreed and Accepted:
	 	 	 
	AEVI GENOMIC MEDICINE, INC.	 	THE CHILDREN’S HOSPITAL OF PHILADELPHIA
	 	 	 
	By:	/s/ Michael Cola	 	By:	/s/ Thomas Todorow
	 	 	 	 	 
	Name:	Michael Cola	 	Name:	Thomas Todorow
	 	 	 	 	 
	Title:	CEO	 	Title:	EVP + Chief Financial Officer

 

Signature Page to Covenant Letter

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