Document:

Exhibit 10.2

 

CERTAIN
INFORMATION IDENTIFIED WITH THE MARK “(***)” AND “(***%***)” HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE
SUCH INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. 

 

Execution
Version 

 

ROYALTY
AGREEMENT

 

This Royalty Agreement dated as of July
19, 2019 (as amended, supplemented or otherwise modified from time to time, this “Royalty Agreement”) is made
by Michael F. Cola, Joseph J. Grano, Jr., Kathleen Jane Grano, Joseph C. Grano, The Grano Children’s Trust, Joseph C. Grano,
trustee and LeoGroup Private Investment Access, LLC on behalf of Garry A. Neil (each individually, an “Investor”
and collectively, the “Investors”) and Aevi Genomic Medicine, Inc. (“Aevi”). Investors and
Aevi are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

WITNESSETH:

 

Whereas, pursuant to the Exclusive License Agreement between
OSI Pharmaceuticals, LLC (“Astellas”) and Aevi dated the Effective Date (the “Astellas License”),
Aevi has an exclusively licensed the OSI Product IP in the Field in the Territory; and

 

Whereas, in consideration of a one-time aggregate payment of
$2,000,000.00 made by Investors to Aevi on the Effective Date, Investors are acquiring the right to receive certain payments as
set forth herein.

 

Now, therefore, in consideration of the covenants and obligations
expressed herein, and intending to be legally bound, Investors and Aevi agree as follows:

 

Article
I.

DEFINITIONS

 

Section
1.1Certain Terms. The following terms (whether or not underscored) when used in this Royalty Agreement, including
its preamble and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and plural
forms thereof):

 

(a)       “Accountant”
has the meaning set forth in Section 2.2(h).

 

(b)       “Aevi”
has the meaning set forth in the preamble hereto.

 

(c)       “Astellas
License” has the meaning as set forth in the preamble hereto.

 

(d)       “Buyout
Option” has the meaning set forth in Section 2.3.

 

(e)       “Buyout
Payment” means (***%***) of the net present value of the royalty payments otherwise likely to be due under this Agreement
from the Buyout Payment Date through the later of the end of data regulatory exclusivity and the date upon which the last of the
patents relating to Licensed Product expires.  The determination of such royalty payments shall be made by a nationally recognized
independent valuation firm mutually agreeable to Investor Representative and Aevi, and shall be based upon the net present value
of such amounts utilizing a reasonable discount rate determined by such firm.

 

     

     

    

 

(f)       “Buyout
Payment Date” means the date of public launch of the Licensed Product.

 

(g)       “Contract”
means any contract, license, indenture, instrument or agreement.

 

(h)       “Effective
Date” means the date of this Royalty Agreement.

 

(i)       “Investor”
and “Investors” has the meaning set forth in the preamble hereto.

 

(j)       “Investor
Representative” means Mr. Grano, or if replaced pursuant to Section 2.4, the individual who is then serving as
the Investor Representative pursuant to Section 2.4.

 

(k)       
“Law” means any law, statute, rule, regulation or ordinance of any Governmental Authority that may be in effect
from time to time.

 

(l)       “Licensed
Product” has the meaning set forth in the Astellas License.

 

(m)       
“Net Sales” has the meaning set forth in the Astellas License.

 

(n)       “Party”
and “Parties” have the meanings set forth in the preamble hereto.

 

(o)       “Payments”
means the Royalty Payments and any other payments to be made by Aevi to Investors hereunder.

 

(p)       “Pro
Rata Percentage” has the meaning set forth in Section 2.1.

 

(q)       “Royalty
Agreement” has the meaning set forth in the preamble hereto.

 

(r)       “Royalty
Event of Default” has the meaning set forth in Section 5.1.

 

(s)       “Royalty
Payment” has the meaning set forth in Section 2.2(a).

 

(t)       “Royalty
Report” has the meaning set forth in Section 2.2(b).

 

(u)       “Royalty
Term” has the meaning set forth in the Astellas License.

 

(v)       
“Term” has the meaning set forth in Section 6.1.

 

(w)       “Third
Party” means any Person other than Aevi or any of its Affiliates.

 

    	 	2	 

     

    

  

(x)       “Withholding
Taxes” has the meaning set forth in Section 2.2(d).

 

Section
1.2         Astellas License Agreement Definitions. Unless otherwise defined herein or the context otherwise requires,
capitalized terms used but not defined in this Royalty Agreement, including its preamble and recitals, have the meanings provided
in the Astellas License. In the event that the Astellas License terminates (in accordance with its terms or otherwise) prior to
the expiration of the Term, capitalized terms used herein and defined in the Astellas License (as in effect immediately prior to
such termination) shall continue to be used herein without regard to such earlier termination of the Astellas License (as if the
Astellas License remained in full force and effect).

 

Article
II.

PURCHASE PRICE AND ROYALTY PROVISIONS

 

Section
2.1         Purchase Price. As consideration for Aevi’s payments of Royalty Payments, Investors shall pay to Aevi
a one-time purchase price of $2,000,000 (the “Purchase Price”) by wire transfer of immediately available funds
to an account specified by Aevi. Each Investor shall pay a pro rata portion of the Purchase Price based upon a percentage allocation
as set forth opposite such Investor’s name on Exhibit A attached hereto, and each such percentage of the aggregate
Purchase Price shall be referred to herein as such Investor’s “Pro Rata Percentage.”

 

Section
2.2          Royalty Payments; Reporting; Audit.

 

(a)       General
Payment Obligation. Commencing with the Calendar Quarter in which the First Commercial Sale of a Licensed Product is made anywhere
in the Territory, and continuing until the completion of the Royalty Term, Aevi shall pay to each Investor in accordance with Section
2.2(c), in respect of each Calendar Quarter during the Royalty Term (or portion of a Calendar Quarter, in the case of the first
Calendar Quarter and the last Calendar Quarter of the Royalty Term), a royalty amount equal to such Investor’s Pro Rata Percentage
of (***) percent (***%***) of the aggregate Net Sales for such Calendar Quarter (or portion of such Calendar Quarter, as the case
may be) (each such payment, a “Royalty Payment”).

 

(b)       Report.
Commencing with the Calendar Quarter in which the First Commercial Sale of a Licensed Product is made anywhere in the Territory,
within thirty (30) days following the end of each Calendar Quarter, Aevi will deliver to the Investor Representative a report setting
forth, for such Calendar Quarter, the following information: (a) the amount of gross sales and Net Sales of each Licensed Product
sold by Aevi and its Affiliates and Sublicensees in each country and a schedule describing, in reasonable detail, the gross-to-net
deductions used to determine such Net Sales of each such Licensed Products for such Calendar Quarter; (b) a calculation of the
Royalty Payment due on such Net Sales of each Licensed Product in each country; (c) the exchange rate used for converting any Net
Sales recorded in a currency other than Dollars; (d) any withholding taxes required to be made from such Royalty Payments; and
(e) the quantity and description of each Licensed Product sold by Aevi or its Affiliate or Sublicensees in each country during
such Calendar Quarter comprising such Net Sales (each, a “Royalty Report”).

 

    	 	3	 

     

    

 

(c)       General
Provisions as to Payments. Aevi shall pay all amounts payable to Investors under this Royalty Agreement to the Investor Representative
by wire transfer of immediately funds to an account designated in writing the by Investor Representative no later than three (3)
business days prior to a due date, and the Investor Representative shall distribute promptly the applicable amounts to the applicable
Investor as shall be directed by such Investor by written notice to the Investor Representative from time to time. All amounts
payable under this Royalty Agreement (including the Royalty Payments) shall be made in U.S. Dollars.

 

(d)       Taxes
and Withholding. If Aevi is required to deduct or withhold from any payment due hereunder any taxes, duties, levies, imposts,
assessments, deductions, fees, and other similar charges by Applicable Law or any Governmental Authority (“Withholding
Taxes”), then Aevi shall pay such Withholding Taxes to the applicable Governmental Authority and make the payment to
the Investor of the net amount due after deduction or withholding of such taxes. Such Withholding Taxes shall be treated for all
purposes of this Agreement as having been paid to the Investor hereunder. Aevi shall submit reasonable proof of payment of the
Withholding Taxes within a reasonable period of time after such Withholding Taxes are remitted to the Governmental Authority. The
Parties shall reasonably cooperate to eliminate or minimize any such Withholding Taxes. Each Investor and Aevi will reasonably
cooperate to provide sufficient documentation to enable such Investor to receive any credits available under Law.

 

(e)       Currency
Conversion. Conversion of recorded in local currencies will be converted to United States Dollars at the average of the applicable
exchange rate The Wall Street Journal or any successor thereto (or if the Wall Street Journal or its successor no
longer publishes such rate, as reported in another source mutually agreed by the Parties) over the applicable Calendar Quarter.

 

(f)       Records.
Aevi will maintain, and will cause its Affiliates and Sublicensees to maintain, complete and accurate records in sufficient detail
to permit the Investor Representative to confirm the accuracy of the amount of Royalty Payments and other amounts payable under
this Agreement. Aevi will maintain, and will cause its Affiliates and its Sublicensees to maintain, such records for three (3)
years after the end of the Calendar Year in which they were generated or otherwise relevant.

 

(g)       Audit.
If requested by the Investor Representative, Aevi will permit an independent certified public accounting firm of nationally recognized
standing (such firm to be mutually agreed upon by Aevi and the Investor Representative in good faith) (the “Accountant”),
to examine, at the Investor Representative’s sole expense and upon reasonable prior notice, the relevant books and records
of Aevi, its Affiliates and its Sublicensees as may be reasonably necessary to verify the amounts reported by Aevi in accordance
with Section 2.2(b) and all other amounts payable under this Agreement. An examination by the Investor Representative under
this Section 2.2(h) will be subject to standard confidentiality obligations, will occur not more than once in any Calendar
Year, not more than once as to any Calendar Year or Calendar Quarter, and will be limited to the pertinent books and records for
any Calendar Year ending not more than three (3) years before the date of the request,. The Accountant will be provided access
to such books and records at Aevi’s, its Affiliates’ or its Sublicensees’ facility(ies) where such books and
records are normally kept and such examination will be conducted during Aevi’s normal business hours. Upon completion of
the audit, the Accountant will provide both Aevi and the Investor Representative a written report disclosing any discrepancies
in (i) the reports submitted by Aevi or (ii) any amounts paid by Aevi under this Agreement, and, in each case, the specific details
concerning any discrepancies. If the Accountant concludes that additional amounts were due under this Agreement, then Aevi will
pay to the Investor Representative such additional amounts within thirty (30) days of the date Aevi receives the Accountant’s
written report. Further, if the amount of such underpayments exceeds more than five percent (5%) of the amounts that were properly
payable to the Investor Representative for all audited periods, then Aevi will reimburse the Investor Representative for the Investor
Representative’s out-of-pocket costs in connection with the audit. If such accounting firm concludes that Aevi made payments
to the Investor Representative under this Agreement in excess of the amounts due under this Agreement, then the Aevi may credit
the overpayment against subsequent Royalty Payments until exhausted.

 

    	 	4	 

     

    

  

Section
2.3         Buyout. At any time after three years after the Buyout Payment Date, Aevi may exercise an option in its sole
discretion (“Buyout Option”) that terminates Aevi’s further obligations under this Royalty Agreement.
Such Buyout Option may be exercised upon payment of the Buyout Payment by Aevi to Investor Representative and such Buyout Payment
shall be distributed by Investor Representative to each Investor on a pro rata basis based upon each Investor’s Pro Rata
Percentage.

 

Section
2.4          The Investor Representative.

 

(a)       Each
Investor hereby appoints, authorizes and empowers the Investor Representative to be the exclusive proxy, representative, agent
and attorney-in-fact of such Investor, with full power of substitution, to make all decisions and determinations and to act and
execute, deliver and receive all documents, instruments and consents on behalf of and as agent for such Investor at any time in
connection with, and that may be necessary or appropriate to accomplish the intent and implement the provisions of, this Agreement,
and in connection with the activities to be performed by or on behalf of such Investor under this Agreement. By executing this
Agreement or by agreeing to be a successor Investor Representative (as applicable), the Investor Representative accepts such appointment,
authority and power. Without limiting the generality of the foregoing, the Investor Representative shall have the power to take
any of the following actions on behalf of the Investor: (i) to receive and distribute Royalty Reports and Royalty Payments and
all other reports and payments pursuant to this Agreement; (ii) to give and receive notices, communications and consents hereunder;
to waive any provision of this Agreement; and (iii) to negotiate, enter into settlements and compromises of, resolve and comply
with orders of courts and awards of arbitrators or other third-party intermediaries with respect to any disputes arising under
this Agreement, in general, to do any and all things and to take any and all action that the Investor Representative, in his sole
and absolute discretion, may consider necessary or proper or convenient in connection with or to carry out the activities described
in Section 2.2, Section 2.3 and this Section 2.4.

 

(b)       Authority.
The appointment of the Investor Representative by each Investor is coupled with an interest and may not be revoked in whole or
in part (including, without limitation, upon the death or incapacity of such Investor). Such appointment shall be binding upon
the heirs, executors, administrators, estates, personal representatives, officers, directors, security holders, successors and
assigns of each Investor. All decisions of the Investor Representative shall be final and binding on all of the Investors, and
no Investor shall have the right to object, dissent, protest or otherwise contest the same. Aevi shall be entitled to rely upon,
without independent investigation, any act, notice, instruction or communication from the Investor Representative and any document
executed by the Investor Representative on behalf of any Investor and shall be fully protected in connection with any action or
inaction taken or omitted to be taken in reliance thereon absent willful misconduct. The Investors agree that the Investor Representative
shall not be responsible for any loss suffered by, or liability of any kind to, the Investors arising out of any act done or omitted
by the Investor Representative in connection with the acceptance or administration of the Representative’s duties hereunder,
unless such act or omission involves gross negligence or willful misconduct.

 

    	 	5	 

     

    

  

(c)       Resignation;
Replacement. The Investor Representative may resign by providing thirty (30) days prior written notice to each of the Investors
and Aevi. Upon the resignation of the Investor Representative, the Investors representing more than fifty percent of the total
Pro Rata Percentage shall (within 10 business days of such resignation) notify Aevi in writing of the successor Investor Representative
including the contact information for such Investor Representative. The Investors representing more than fifty percent of the total
Pro Rata Percentage may replace the current Investor Representative by giving Aevi written notice of the replacement Investor Representative
including the contact information for such Investor Representative.

 

Article
III.

REPRESENTATIONS AND WARRANTIES OF AEVI

 

Aevi hereby represents and warrants to Investors
as of the Effective Date as follows:

 

Section
3.1          Organization. Aevi is a corporation duly organized, validly existing and in good standing under the laws of
the State of Delaware.

 

Section
3.2          Authority and Enforceability. Aevi has the power and authority and the legal right to enter into this
Royalty Agreement and perform its obligations hereunder and has taken all necessary action on its part required to authorize the
execution and delivery of this Royalty Agreement and the performance of its obligations hereunder. This Royalty Agreement has been
duly executed and delivered on behalf of Aevi, constitutes a legal, valid and binding obligation of Aevi and is enforceable against
Aevi in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization
or similar Laws affecting creditors’ rights generally and by principles of equity).

 

Section
3.3          Financial Condition. No insolvency proceeding of any character, including, without limitation bankruptcy,
receivership, reorganization, composition or arrangement with creditors, voluntary or involuntary, has been commence by or against
Aevi or any of its assets or properties, nor has any such proceeding been threatened.

 

Section
3.4          No Conflict. The execution, delivery and performance of this Royalty Agreement by Aevi and Aevi’s compliance
with the terms and conditions hereof, is not prohibited or limited by, and do not and will not conflict with or result in the breach
of or a default under, any provision of the certificate of incorporation, bylaws or other formation documents of Aevi or any contract,
agreement or instrument binding on or affecting Aevi, including any of the Astellas License.

 

    	 	6	 

     

    

  

Article
IV.

REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

 

Each of the Investors hereby severally represents
and warrants to Aevi and each other Investor:

 

Section
4.1          Authority and Enforceability. The Investor has the power and authority and the legal right to enter
into this Royalty Agreement and perform the Investor’s obligations hereunder. This Royalty Agreement has been duly executed
and delivered by the Investor, constitutes a legal, valid and binding obligation of the Investor and is enforceable against the
Investor in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization
or similar Laws affecting creditors’ rights generally and by principles of equity).

 

Section
4.2          No Conflict. The execution, delivery and performance of this Royalty Agreement by the Investor and the Investor’s
compliance with the terms and conditions hereof, is not prohibited or limited by, and do not and will not conflict with or result
in the breach of or a default under, any Contract binding on the Investor.

 

Section
4.3          Risks of Royalty Payments. The Investor acknowledges that: (a) the Investor is a director, executive officer
or both or Aevi; (b) the Investor has full knowledge of all the risks associated with development and commercialization of the
Licensed Product for use in humans; (c) the Risk Factors set forth in Aevi’s securities filings with the United States Securities
Commission for Aevi’s other products are applicable to the Licensed Product; and (d) Aevi’s obligations under this
Agreement are not secured by any assets of Aevi or any of its Affiliates.

 

Article
V.

COVENANTS

 

Aevi covenants and agrees with Investors
that throughout the Term, Aevi will cause to be performed the obligations set forth below.

 

Section
5.1          No Impairments. Aevi shall not enter into any Contract or arrangement, or take any other action (including
amendments, modifications, supplements, waivers, assignments or terminations of Contracts (or provisions thereof)), that is primarily
designed to, directly or indirectly, adversely affect the value of the Royalty Payments in any material respect.

 

Section
5.2          Successors. If Aevi or any of its Affiliates sells, assigns, transfers, contributes or otherwise distributes
or disposes to any Person (each, a “Transferee”) (i) the Astellas License Agreement or any rights therein or
(ii) any right to market and/or sell any Licensed Product, Aevi shall cause such Transferee to assume, in a written agreement acceptable
to the Investor Representative entered into with the Investors no later than consummation of such sale, assignment, transfer, contribution,
distribution or disposition, all of the obligations of the Aevi under this Agreement with respect to the Royalty Payments and be
subject to the rights of the Investors and the Investor Representative under Section 2.2. For the avoidance of doubt, if
Aevi or any of its Affiliates fails to abide by this Section 5.3, then the Transferee shall be treated for all purposes
of this Agreement as an Affiliate of Aevi.

 

    	 	7	 

     

    

 

Article
VI.

EVENTS OF DEFAULT

 

Section
6.1          Events of Default. If Aevi defaults in the payment (i) of any Royalty Payment when due hereunder or (ii) any
other payment when due hereunder, and any such default referenced in subclause (i) or (ii) shall continue for a period of five
days after such amount was due, such event shall constitute a “Royalty Event of Default” under this Royalty
Agreement. Upon the occurrence of a Royalty Event of Default, the Investors’ sole recourse shall be to bring an action against
Aevi for failure to pay such amounts, and Investor shall not be entitled to acceleration of any future Royalty Payments potentially
due hereunder or any claims for punitive, consequential or other similar damages.

 

Article
VII.

TERM and TERMINATION

 

Section
7.1          Term. The term of this Royalty Agreement (the “Term”) shall commence on the Effective Date
and shall expire upon the earlier of (i) the completion of the Royalty Term and (ii) the exercise of the Buyout Option.

 

Section
7.2          Survival. The expiration of this Royalty Agreement shall be without prejudice to any rights or obligations
of the Parties that may have accrued prior to such expiration or termination, and the provisions of Section 2.2, Section
2.4, Section 7.3 and Article I and Article VIII shall survive the termination or expiration of this Royalty
Agreement in accordance with their respective terms.

 

Article
VIII.

MISCELLANEOUS PROVISIONS

 

Section
8.1          Binding on Successors, Transferees and Assigns; Assignment. This Royalty Agreement shall remain in full force
and effect until the Term has concluded and shall be binding upon the Parties hereto and their respective successors, transferees
and assigns; provided that Aevi may not assign or transfer any of its rights or obligations hereunder except to a Transferee
in accordance with Section 5.2.

 

Section
8.2          Amendments, etc. No amendment to or waiver of any provision of this Royalty Agreement, nor consent to any
departure by a Party from its obligations under this Royalty Agreement, shall in any event be effective unless the same shall be
in writing and signed by Aevi and the Investor Representative, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided that any Investor may waive such Investor’s rights under
this Agreement in such Investor’s sole discretion.

 

    	 	8	 

     

    

  

Section
8.3          Notices. All notices and other communications provided for hereunder shall be given or made in writing and
be delivered by mail or electronic mail as follows:

 

If to the Investors, to

 

Aevi Genomic Medicine, Inc.

435 Devon Park Drive, Suite 715

Wayne, PA 19087

Attn: Joseph J. Grano, Jr.

 

If to Aevi, to

 

Aevi Genomic Medicine, Inc.

435 Devon Park Drive, Suite 715

Wayne, PA 19087

Attn: Audit Committee Chair

 

Section
8.4          No Waiver; Remedies. No failure on the part of a Party to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other
or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by Law.

 

Section
8.5          Section Captions. Section captions used in this Royalty Agreement are for convenience of reference only and
shall not affect the construction of this Royalty Agreement.

 

Section
8.6          Severability. Any provision of this Royalty Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Royalty Agreement or affecting the validity or enforceability of such provision in
any other jurisdiction.

 

Section
8.7          Indemnification. Aevi agrees to indemnify and hold harmless each Investor from and against any and all claims,
losses, damages, liabilities and expenses (the “Claims”), to the extent permitted by law, reasonably incurred
by any Investor resulting from a third party claim against an Investor in connection with this Royalty Agreement. Promptly after
acquiring knowledge of a Claim for which an Investor is entitled to indemnification, such Investor shall give written notice thereof
to Aevi; provided, however, that failure to provide a notice of a Claim will not relieve Aevi of any liability it may have to such
Investor unless Aevi is materially prejudiced as a result of such failure and in such event Aevi will be relieved of liability
only to the extent of such material prejudice. To the extent the Claim consists of a claim, suit or action of a third party, Aevi
shall be entitled to participate in the defense of such action and, to the extent that it so elects by written notice to such Investor
to participate in the defense of such action and, to assume control of such defense with counsel reasonably satisfactory to such
Investor; provided, however, that (i) such Investor shall at its own expense be entitled to participate in such third party action
and to employ separate legal counsel with respect thereto, (ii) Aevi shall not consent to the entry of judgement or enter into
any settlement (x) that does not include as an unconditional term thereof the giving by the claimant or plaintiff to the Investor
a release from all liability in respect of such third party action and (y) that provide for any remedy other than payment of monetary
damages. After written notice by Aevi to such Investor of its election to assume control and defense of any third party action,
Aevi shall not be liable to such Investor for any legal expenses subsequently incurred by such Investor in connection with the
defense thereof, so long as Aevi assumes and diligently conducts such defense in a timely manner.

 

    	 	9	 

     

    

  

Section
8.8          Governing Law, Entire Agreement, etc. THIS ROYALTY AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE
OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS ROYALTY AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF PENNSYLVANIA NOTWITHSTANDING ITS CONFLICT OF LAWS PROVISIONS.
This Royalty Agreement constitutes the entire understanding among the Parties hereto with respect to the subject matter hereof
and supersedes any prior agreements, written or oral, with respect hereto.

 

Section
8.9          Counterparts. This Royalty Agreement may be executed by the Parties hereto in several counterparts, each of
which shall be an original and all of which shall constitute together but one and the same agreement. This Royalty Agreement shall
become effective when counterparts hereof executed on behalf of Aevi and Investors shall have been received by Investors. Delivery
of an executed counterpart of a signature page to this Royalty Agreement by email (e.g. “pdf” or “tiff”)
or telecopy shall be effective as delivery of a manually executed counterpart of this Royalty Agreement.

 

Section
8.10          Waiver of Jury Trial. AEVI AND INVESTORS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST
EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, THIS ROYALTY AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF AEVI OR INVESTORS IN CONNECTION HEREWITH. AEVI ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR INVESTORS TO ENTER INTO THIS ROYALTY AGREEMENT.

 

Section
8.11          Relationship of the Parties. The status of a Party under this Royalty Agreement shall be that of an independent
contractor. Nothing contained in this Royalty Agreement shall be construed as creating a partnership, joint venture or agency relationship
between Aevi or any of its Affiliates, on the one hand, and Investors or any of its Affiliates, on the other hand. Except to the
limited extent expressly provided in this Royalty Agreement, no Party hereto shall have the authority to bind, obligate or represent
any other Party hereto.

 

[Signature Page Follows]

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF, the Parties have executed this Royalty Agreement
on the day and year first above written.

 

	 	Aevi GENOMIC MEDICINE, Inc.
	 	 
	 	By:	/s/ Michael McInaw
	 	 
	 	Name: Michael McInaw
	 	 
	 	Title: Chief Financial Officer
	 	 
	 	MICHAEL F. COLA
	 	 
	 	By:  	/s/ Michael F. Cola
	 	 
	 	JOSEPH J. GRANO, JR.
	 	 
	 	For Himself and as the Investor Representative
	 	 
	 	By:	/s/ Joseph J. Grano, Jr.
	 	 
	 	Kathleen Jane Grano
	 	 
	 	 
	 	By:	/s/ Kathleen J. Grano
	 	 
	 	Joseph C. Grano
	 	 
	 	By:	/s/ Joseph C. Grano

 

Signature Page to Royalty Agreement

 

    	 	11	 

     

    

 

	 	The Grano Children’s Trust, Joseph C. Grano, trustee
	 	 
	 	By:	/s/ Joseph C. Grano
	 	 
	 	LEOGROUP PRIVATE INVESTMENT ACCESS, LLC on behalf of Garry A. Neil 
	 	 
	 	By:  	/s/ Matthew J. Allain
	 	Matthew J. Allain, Manager

 

    	 	12	 

     

    

 

EXHIBIT
A

 

PRO RATA PERCENTAGES
OF PURCHASE PRICE

 

	Michael F. Cola	(***%***) 
	 	 
	Joseph J. Grano, Jr.	(***%***)
	 	 
	Kathleen Jane Grano	(***%***)
	 	 
	Joseph C. Grano	(***%***)
	 	 
	The Grano Children’s Trust,	 
	Joseph C. Grano, trustee	(***%***)
	 	 
	LeoGroup Private Investment 	 
	Access, LLC 	 
	on behalf of 	 
	Garry A. Neil	(***%***)

 

    	 	13Exhibit 10.3

 

Execution Copy

 

AMENDMENT NO. 3 TO LICENSE
AGREEMENT

 

This
Amendment No. 3 to License Agreement
(this “Amendment”) is entered into as of August 12, 2019 and is effective as of June 28, 2019
(the “Amendment Date”), by and between Medgenics Medical
Israel Ltd. (“Licensee”), 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 Licensee are sometimes referred to in
this Amendment individually as a “Party” and collectively as the “Parties.”

 

Whereas,
CHOP and Licensee are parties to that certain License Agreement dated November 12, 2014, as amended by Amendment No. 1 to License
Agreement effective on February 14, 2017 and Amendment No. 2 to the License Agreement effective as of March 29, 2019 (the “License
Agreement”);

 

Whereas,
Aevi issued CHOP a Secured Convertible Promissory Note on March 29, 2019 (the “Note”) wherein the
principal amount of $3,166,666.64 is due and payable by Aevi to CHOP on September 30, 2019; and

 

Whereas,
Licensee and CHOP now desire to amend the terms of the Extension Option (as defined in the License Agreement).

 

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.	Amendment to Section 1 of Amendment No. 1 to License Agreement effective on February
14, 2017 (Options to Extend Exclusivity Period)

 

Effective as of the
Amendment Date, paragraph 1 of Amendment No. 1 to License Agreement effective on February 14, 2017 is hereby amended and restated
to read in its entirety as follows:

 

“1.Options
to Extend Exclusivity Period. CHOP hereby grants to Licensee the right to extend the period of time during which (a) Licensee
has the right to match proposals by commercial entities for sponsored research using the Rare and Orphan Protocol Materials in
the Licensed Field undder Section 5.2 of the Agreement and (b) Licensee has exclusive rights to use the Rare and Orphan Protocol
Materials in the Licensed Field pursuant to clause (i) of Section 3.1 of the Agreement and Section 10.3.1 of the Agreement
until the expiration of the term of the Sponsored Research Agreement (each, an “Extension Option”). Each
Extension Option is exercisable by Licensee (1) notifying CHOP in writing of its exercise of such Extension Option at the same
time as Licensee exercises its option to extend the term of the Sponsored Research Agreement pursuant to Section 3.1 of the Sponsored
Research Agreement and (2) paying CHOP One Hundred Twenty-Five Thousand Dollars ($125,000) no later than the day that Licensee
exercises its option to extend the term of the Sponsored Research Agreement pursuant to Section 3.1 of the Sponsored Research Agreement;
provided, however, that the fee for exercise of the Extension Option by June 30, 2017 is One Hundred Ninety-Seven
Thousand Six Hundred Three Dollars ($197,603). Licensee may only exercise its Extension Option in 2019 if
(i) Licensee provides the applicable notice to CHOP and (ii) Aevi pays to CHOP the principal amount of the Note in full, in
each case on or prior to September 30, 2019. The Parties expressly agree that the payments due in connection with exercise
of the Extension Options are in respect of the rights referred to in clauses (a) and (b) above and not in respect of any of the
Licensed Patent Rights.

 

    	 	1	 

     
 

    

 

		2.	Single Instrument.

 

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

 

		3.	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

 

 

 

 

 

    	 	2	 

     
 

    

 

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

 

	
        THE CHILDREN’S HOSPITAL OF PHILADELPHIA

         

         

        By: /s/ Thomas Todorow                                   

         

        Name: Thomas Todorow                                   

         

        Title: EVP and Chief Financial Officer             

         

        

        
	
        MEDGENICS MEDICAL ISRAEL, LTD.

         

         

        By: /s/ Michael F. Cola                                       

         

        Name: Michael F. Cola                                        

         

        Title: Chief Executive Officer and President__

         

 

 

 

 

 

 

    	 	3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00299-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00299-of-00352.parquet"}]]