Document:

EX-10.6

 Exhibit 10.6 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH 

“[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE 

SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN 

APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 406 

PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

LICENSE AGREEMENT 
 This License Agreement
(the “Agreement”) is made and entered into effective as of August 31, 2017 (the “Effective Date”), by and between 

BioMarin Pharmaceutical Inc., a Delaware corporation located at 770 Lindaro Street, San Rafael, CA 94901 (“BioMarin”), 

and 
 AVROBIO, Inc., a Delaware corporation having a
place of business at 700 Technology Square, Suite 101, Cambridge, MA 02139 (“AVROBIO”). 
 BioMarin and AVROBIO each may be referred to
herein individually as a “Party,” or collectively as the “Parties.” 
 RECITALS 

A. BioMarin owns and/or controls certain patents and know-how pertaining to a fusion of
a portion of the insulin-like growth factor 2 protein (the “GILT Tag”) with acid alpha-glucosidase and its use in the treatment of Pompe disease. 

B. AVROBIO desires to obtain an exclusive license under such patents and know-how for the
purpose of developing, manufacturing, and commercializing Licensed Products in the Field (each as defined below), and BioMarin desires to grant AVROBIO such a license on the terms and conditions set forth in this Agreement. 

In consideration of the foregoing premises, the mutual promises and covenants set forth in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, BioMarin and AVROBIO hereby agree as follows: 

AGREEMENT 
  

	1.	DEFINITIONS 

 When used in this Agreement, the following capitalized terms
will have the meanings as defined below. Unless the context indicates otherwise, the singular will include the plural and the plural will include the singular. 

1.1 “Affiliate” means, with respect to a Party, any corporation, firm, partnership or other entity that directly or
indirectly controls or is controlled by or is under common control with such Party, but only for so long as such control exists. As used in this definition, “control” means (with correlative meanings for the terms “controlled by”
and “under common control with”) that the applicable entity has the actual ability to direct and manage the business affairs of the Party, whether through ownership, directly or indirectly, of fifty percent (50%) or more of the shares of
stock entitled to vote for the election of directors of the Party, in the case of a corporation, or fifty percent (50%) or more of the equity interests in the case of any other type of legal entity, status as a general partner in any partnership, or
by contract or any other arrangement whereby such entity controls or has the right to control the business affairs of the Party. 

 1.2 “[***]” means [***]. 

1.3 “[***]” means [***]. 

1.4 “Change of Control” means with respect to AVROBIO: (a) a merger, reorganization or consolidation involving AVROBIO in
which the voting securities of AVROBIO outstanding immediately prior thereto cease to represent at least fifty percent (50%) of the combined voting power of the surviving entity immediately after such merger, reorganization or consolidation;
(b) a Third Party, or group of Third Parties acting in concert, acquire, directly or indirectly, other than in connection with a bona fide financing of AVROBIO, more than fifty percent (50%) of the voting equity securities or management control
of AVROBIO; or (c) AVROBIO conveys, transfers, licenses (on an exclusive and worldwide basis) and/or leases all or substantially all of its assets to a Third Party. 

1.5 “Commercialization” means all activities relating to the manufacture, marketing, obtaining pricing and reimbursement
approvals, promotion, advertising, importing, selling, distribution and customer support of a Licensed Product in a country. The term “Commercialize” has a correlative meaning. 

1.6 “Commercially Reasonable Efforts” means, with respect to AVROBIO’s obligations under this Agreement to Develop and
Commercialize a Licensed Product, the carrying out of such obligations using good faith efforts equivalent to those efforts and resources [***]. 

1.7 “Controlled” means, with respect to any Know-How, Patent Right, or other
intellectual property right, that the applicable Party owns or has a license under such Know-How, Patent Right, or other intellectual property right and has the ability to assign to the other Party, or grant
to the other Party a license, sublicense or other right to or under, such Know-How, Patent Right or right as provided for herein without violating the terms of any agreement or other arrangements with any
Third Party. 
 1.8 “Development” means non-clinical and clinical drug discovery, research and/or development activities
that relate to (a) obtaining, maintaining or expanding Regulatory Approval(s) of Licensed Product or (b) developing the ability to manufacture clinical and commercial quantities of Licensed Product, including chemical synthesis,
sequencing, toxicology, pharmacology and other discovery and pre-clinical efforts, test method development and stability testing, manufacturing process development, formulation development, delivery system development, quality assurance and quality
control development, manufacturing, statistical analysis, and clinical studies. When used as a verb, “Develop” means to engage in Development. 

1.9 “Dollars” or “$” means the legal tender of the U.S. 

1.10 “ERT” means enzyme replacement therapy. 

  
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 1.11 “FDA” means the United States Food and Drug Administration, or any
successor agency thereto. 
 1.12 “Field” means Retroviridae-based gene therapy for the treatment, modification or
prevention of Pompe disease (glycogen storage disease type II). 
 1.13 “First Commercial Sale” means, with respect
to a given Licensed Product in a particular country, the first sale to a Third Party of such Licensed Product in such country, after obtaining all required Regulatory Approvals in such country. “First Commercial Sale” shall not include the
supply of any unreimbursed Licensed Product for use in clinical trials or for compassionate use. 
 1.14 “IND” means an
Investigational New Drug application filed with the FDA and sufficient to satisfy the requirements of 21 CFR 312.20, or any comparable filing with any relevant Regulatory Authority in any other jurisdiction. 

1.15 “Know-How” means any non-public,
documented or otherwise recorded or memorialized knowledge, experience, know-how, technology, technical information, results, trade secrets, data and all other information, including formulas and formulations,
processes, techniques, unpatented inventions, discoveries, ideas, and developments, test procedures, and results, together with all documents and files embodying the foregoing, and including relevant proprietary materials. For clarity, Know-How excludes Patent Rights claiming or otherwise covering any of the foregoing. 
 1.16
“Licensed Know-How” means Know-How Controlled by BioMarin or its Affiliates as of the Effective Date or during the Term that is necessary to Develop and/or
Commercialize Licensed Products in the Field, solely to the extent set forth on Schedule B attached hereto. 
 1.17
“Licensed Patent Rights” means: (a) any of the Patent Rights listed in Schedule A, and (b) any divisional, continuation, or
continuation-in-part (but only to the extent directed to subject matter specifically described in a patent or patent application set forth on Schedule A) claiming
priority to such listed patents and patent applications; any reissue, reexamination, substitution, renewal and/or extension of any of the foregoing patents and patent applications; and any foreign counterpart patent or patent application of any of
the foregoing. 
 1.18 “Licensed Product” means any product the composition, formulation, delivery, manufacture, use,
sale, or importation of which: (a) is claimed or otherwise covered by a Valid Claim of the Licensed Patent Rights in any country in which it is made, used or sold; or (b) uses Licensed Know-How. 

1.19 “Licensed Technology” means the Licensed Patent Rights and the Licensed Know-How.

 1.20 “Major European Country” means any of the following countries: [***]. 

1.21 “Net Sales” shall mean the amount invoiced or otherwise accrued by AVROBIO, its Affiliates or sublicensees for commercial
sales of a Licensed Product to Third Party purchasers (but excluding sales to AVROBIO’s sublicensees for resale) less the following deductions, to the extent applicable to such sales of the Licensed Product for: 

  
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 (i) [***]; 

(ii) [***]; 
 (iii) [***]; 

(iv) [***]; and 
 (v) [***]. 

Net Sales shall be determined in accordance with United States Generally Accepted Accounting Principles. Transfers of free Licensed Products solely for
research or clinical testing purposes shall be excluded from the computation of Net Sales. 
 1.22 “Patent Rights” means (a)
all patents and patent applications in any country or supranational jurisdiction; (b) any divisional, continuation, or continuation-in-part, reissue, reexamination, substitution, renewal and/or extension
of any such patents and patent applications; and (c) any foreign counterpart patent or patent application of any of the foregoing. 

1.23 “Phase I Clinical Trial” shall mean a human clinical trial of a Licensed Product that is designed to satisfy the
requirements of 21 CFR 312.21(a), regardless of whether such human clinical trial also satisfies the requirements of 21 CFR. 312.21(b) or any other requirements, or a similar clinical study prescribed by the Regulatory Authorities in a country other
than the United States. 
 1.24 “Pivotal Trial” means a clinical study in humans of the efficacy and safety of a Licensed
Product that is prospectively designed to demonstrate with statistical significance that such product is effective and safe for use in a particular indication in a manner sufficient to file for Marketing Approval of such product and would satisfy
the requirements of 21 CFR 312.21(c), or a similar clinical study prescribed by the Regulatory Authorities in a country other than the United States. 

1.25 “Preferred Stock” means shares of the series of preferred stock issued in the Preferred Stock Financing. 

1.26 “Preferred Stock Financing” means AVROBIO’s first issuance and sale of shares of a newly-authorized series of
preferred stock (e.g., Series B preferred stock) after the date of this Agreement to venture capital funds or other institutional investors in an equity financing with gross proceeds to the Company from sales occurring after the date of this
Agreement of not less than [***]. 
 1.27 “Preferred Stock Financing Deadline” means [***]. 

1.28 “Preferred Stock Issuance Price” means the lowest price per share paid by purchasers of the Preferred Stock as of the
date of issuance of Preferred Stock to BioMarin (as adjusted for stock splits, combinations and the like occurring after such purchase but before the issuance of Preferred Stock to BioMarin). 

  
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 1.29 “Regulatory Approvals” means, with respect to a Licensed Product, the
approvals, registrations, licenses and permits of any Regulatory Authority in a country, including pricing and/or reimbursement approvals, that are necessary to be obtained in order to market and sell commercially such Licensed Product in that
country. 
 1.30 “Regulatory Authority” means any federal, state or local regulatory agency, department, bureau or other
government entity, including the FDA, which has responsibility for granting any licenses or approvals or granting pricing and/or reimbursement approvals necessary for the marketing and sale of a Licensed Product in any country. 

1.31 “Regulatory Exclusivity” means market exclusivity granted by a Regulatory Authority designed to prevent the entry of
generic product(s) onto the market, including without limitation new use or indication exclusivity, new formulation exclusivity, orphan drug exclusivity, pediatric exclusivity and any exclusivity applicable to biologic products, or any equivalent of
the foregoing. 
 1.32 “[***]” means [***]. 

1.33 “Royalty Term” has the meaning assigned to it in Section 4.3.3. 

1.34 “Term” has the meaning assigned to it in Section 8.1. 

1.35 “Territory” means all countries of the world. 

1.36 “Third Party” means any party other than BioMarin, AVROBIO, or their respective Affiliates. 

1.37 “Valid Claim” means either (a) a claim of an issued and unexpired patent or a supplementary protection
certificate, which has not been held permanently revoked, unenforceable or invalid by a decision of a court, patent office or other forum of competent jurisdiction, unappealable or unappealed within the time allowed for appeal and that is not
admitted to be invalid or unenforceable through reissue, disclaimer or otherwise (i.e., only to the extent the subject matter is disclaimed or is sought to be deleted or amended through reissue), or (b) a claim of a pending patent application that
has not been abandoned, finally rejected or expired without the possibility of appeal or refiling. 
  

	2.	LICENSES 

 2.1 License Grant. Subject to the terms and conditions
of this Agreement, BioMarin hereby grants to AVROBIO an exclusive, royalty-bearing license under the Licensed Patent Rights and Licensed Know-How to research, have researched, develop, have developed, make,
have made, use, have used, sell, have sold, offer for sale, have offered for sale, import, have imported, export and have exported Licensed Products in the Field in the Territory, including the right to grant sublicenses through multiple tiers,
subject to any limitations on sublicensing expressly set forth in this Agreement (the “License”). For clarity, AVROBIO shall have no license rights either outside the Field or with respect to products other than Licensed Products.

  
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 2.2 Reservation of Rights; Restrictive Covenants. 

2.2.1 AVROBIO hereby covenants that it shall not, nor shall it cause or permit any Affiliate or sublicensee to, use or practice, directly or
indirectly, any Licensed Technology for any purposes other than those expressly permitted by this Agreement. BioMarin retains the sole right to practice the Licensed Technology with respect to any and all purposes and areas of use outside the Field
and with respect to the Development and/or Commercialization of any product or service other than Licensed Products. 
 2.2.2 No implied
licenses are granted under this Agreement, and each Party reserves all rights to all of its technology except for the rights expressly granted herein. 

2.2.3 [***]. 
 2.3 Right to
Sublicense. AVROBIO may grant sublicenses under the license set forth in Section 2.1 to its Affiliates and Third Parties, subject to the terms and conditions set forth in this Section 2.3. An existing sublicensee in good standing may
grant further sublicenses, also subject to such terms and conditions. 
 2.3.1 Each sublicense agreement shall be consistent with and subject
to the terms and conditions of this Agreement. AVROBIO shall remain responsible for the performance of all sublicensees under any such sublicenses as if such performance were carried out by AVROBIO itself, including, without limitation, the payment
of any royalties or other payments provided for hereunder. 
 2.3.2 Each sublicense agreement shall include (a) diligence obligations
consistent with efforts that will allow AVROBIO to meet relevant obligations set forth in Section 3 below; (b) a direct indemnity by the sublicensee in favor of BioMarin similar in scope to that set forth in Section 9; and (c) a
provision making BioMarin an express third party beneficiary of such sublicense agreement with respect to such indemnification provisions. 

2.3.3 AVROBIO will provide BioMarin with a copy of each sublicense agreement within [***] of execution of such agreement, [***]. 

2.4 Technology Transfer. BioMarin will provide to AVROBIO, [***], copies of the Licensed
Know-How set forth in Schedule B, which information shall be provided to AVROBIO within [***] of the Effective Date to the extent practicable, and in any event within [***] after the Effective Date. In
addition, [***]. For purposes hereof, MAA means (a) a Biologics License Application as defined in the United States Federal Food, Drug and Cosmetics Act, as amended, and the regulations promulgated thereunder, or (b) a Marketing
Authorization Application in the European Union. 
 2.5 Other Technology. AVROBIO shall be solely responsible for obtaining, at its
sole expense, any agreements with Third Parties required in order for AVROBIO to conduct the Development and Commercialization of Licensed Products in the Field in the Territory. AVROBIO’s right to credit any costs and expenses that it incurs
under or as a result of such Third Party agreements against amounts due under this Agreement shall be solely as set forth in Section 4.3.2. 

  
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	3.	DEVELOPMENT AND COMMERCIALIZATION OF LICENSED PRODUCTS 

3.1 Responsibilities. Subject to the terms and conditions of this Agreement (including without limitation this Section 3),
AVROBIO (and/or its Affiliates and sublicensees) will be solely responsible, at AVROBIO’s expense, for the Development and Commercialization of Licensed Products in the Field in the Territory, using Commercially Reasonable Efforts. AVROBIO will
conduct, and will cause its Affiliates and sublicensees to conduct, such activities in a good scientific manner and in compliance in all material respects with all applicable laws. 

3.2 Communication. Each Party will appoint one of its employees to serve as a liaison and alliance manager hereunder (“Alliance
Manager”) with responsibility for overseeing communications between the Parties relevant to this Agreement, including without limitation communications regarding: (a) the transfer of the Licensed Know-How to AVROBIO as
contemplated in Section 2.4 above, (b) patent matters, and (c) AVROBIO’s diligence obligations. The initial Alliance Manager for AVROBIO shall be [***] and for BioMarin shall be [***]. Each Party may replace its Alliance Manager at any
time by notice in writing to the other Party. 
 3.3 Diligence. AVROBIO will use Commercially Reasonable Efforts to Develop and
Commercialize one or more Licensed Products in the United States and in the Major European Countries. In addition, and without limiting the generality of the foregoing, AVROBIO shall initiate an IND-enabling
pharmacology/toxicology study of a Licensed Product within [***] of the Effective Date. In the event that BioMarin believes AVROBIO is in material breach of its obligation to use Commercially Reasonable Efforts under this Section 3.3, then
BioMarin may so notify AVROBIO in writing, which notice shall provide available details regarding the basis for its belief and specifying that such notice (a “Diligence Breach Notice”) is being provided by BioMarin pursuant to this
Section 3.3. If a Diligence Breach Notice is provided to AVROBIO, AVROBIO may, within a further period of [***] after receipt of such notice, provide a written report to BioMarin to justify why AVROBIO believes it is not in such material breach
of such diligence obligation. If no such report is provided by AVROBIO by the end of such time period, BioMarin shall be permitted to terminate this Agreement pursuant to Section 8.2. If AVROBIO provides a response, the Parties shall then
conduct an initial meeting within [***] after delivery of such a written report from AVROBIO to discuss in good faith the concerns raised by BioMarin and shall conduct such additional meetings as are reasonably necessary to reach agreement as to
whether or not AVROBIO is in material breach of its obligations under this Section 3.3 for an additional [***] after such initial meeting. If after such [***] period following the initial meeting, the Parties cannot reach agreement then, upon
request of either Party, the matter shall be referred to the dispute resolution procedure outlined under Section 11.3, which procedure shall be required to: (a) determine whether there was, in fact, a material breach by AVROBIO of its diligence
obligation, and (b) if it is determined that there was an uncured material breach, specify what additional efforts AVROBIO must undertake to cure such breach, and the time period during which such efforts must be commenced and completed (which
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breach of the diligence obligation hereunder, and AVROBIO does not commence or complete the cure efforts specified by the arbitration result (in response to the clause (b) requirement above)
by the required relevant dates, then BioMarin may terminate the Agreement pursuant to Section 8.2. All efforts of AVROBIO’s Affiliates, Third Party contractors and sublicensees will be considered efforts of AVROBIO for the purpose of
determining AVROBIO’s compliance with its obligations under this Section 3.3. 
 3.4 Reports. AVROBIO will keep BioMarin
reasonably informed regarding the progress and results of AVROBIO’s Development and Commercialization activities and those of its Affiliates, sublicensees, and Third Party contractors as set forth below. [***] each year, no later than [***],
AVROBIO shall provide BioMarin with a written report that summarizes, in reasonable detail, the Development and Commercialization activities performed by AVROBIO and its Affiliates, sublicensees, and Third Party contractors with respect to Licensed
Products during the preceding [***] period, as well as AVROBIO’s expected future Development and Commercialization timeline for Licensed Products. 
  

	4.	FINANCIAL TERMS 

 4.1 Initial License Fee. As
initial consideration for the grant of rights set forth herein, AVROBIO will (a) pay to BioMarin a non-creditable, non-refundable initial license fee of five hundred thousand Dollars ($500,000), payable within
[***] of the Effective Date, and (b) on or before the Preferred Stock Financing Deadline, issue to BioMarin that number of shares of Preferred Stock equal to five hundred thousand Dollars ($500,000) divided by the Preferred Stock Issuance
Price, rounded to the nearest whole share, for no additional cash but otherwise on the same terms and conditions at which such shares of Preferred Stock were sold by AVROBIO to the other investor(s) in the Preferred Stock Financing. As a condition
to its receipt of any Preferred Stock, BioMarin will enter into AVROBIO’s investor rights agreement, voting agreement, and right of first refusal and co-sale agreement, or other similar agreements, all on the same terms and conditions as the
other investor(s) in the Preferred Stock Financing. [***]. Notwithstanding clause (b) above, in the event AVROBIO completes a Change of Control prior to the closing of the Preferred Stock Financing, then AVROBIO will pay to BioMarin a non-creditable, non-refundable payment of [***], in cash, payable within [***] of the date on which such Change of Control becomes effective and will not have the right to issue shares of Preferred Stock to BioMarin
as set forth in clause (b) above. Unless a Change of Control has occurred prior to such time. AVROBIO shall notify BioMarin of the completion of the Preferred Stock Financing within [***] after such completion and shall notify BioMarin of any
failure to complete the Preferred Stock Financing no later than [***] following the Preferred Stock Financing Deadline. In the event AVROBIO does not complete the Preferred Stock Financing by the Preferred Stock Financing Deadline and has not
completed a Change of Control, then AVROBIO shall pay to BioMarin a non-creditable, non-refundable license fee of [***] within [***] of the Preferred Stock Financing Deadline in lieu of the obligation to issue Preferred Stock set forth in clause
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 4.2 Milestone Payments. 

4.2.1 Development Milestones. AVROBIO will pay to BioMarin the following non-creditable, non-refundable milestone payments within [***] following the first achievement of the corresponding events described in the table below by the first Licensed Product being Developed by or on behalf of AVROBIO, its
Affiliates or sublicensees to achieve such event. For clarity, each Development Milestone payment below shall be made only once, upon the first attainment of the applicable milestone event by any Licensed Product being Developed by or on behalf of
AVROBIO, its Affiliates or sublicensees. 
  

			
	MILESTONE EVENT	  	MILESTONE PAYMENT
	 1. [***]
	  	$[***]
	 2. [***]
	  	$[***]
	 3. [***]
	  	$[***]
	 4. [***]
	  	$[***]

 [***]. 
 4.3
Royalties. 
 4.3.1 Royalty Rates. During the applicable Royalty Term, AVROBIO will pay to BioMarin a royalty of [***] on Net
Sales by AVROBIO, its Affiliates and sublicensees of those Licensed Products the composition, formulation, delivery, manufacture, use, sale, or importation of which is claimed or otherwise covered by a Valid Claim of the Licensed Patent Rights in at
least one country in which it is made, used or sold. 
 4.3.2 [***] 

4.3.3 Royalty Term. AVROBIO’s royalty payment obligations under this Section 4.3 will expire, with respect to a particular
Licensed Product sold in a given country (on a Licensed Product-by-Licensed Product and country-by-country basis), upon the
expiration of the period (the “Royalty Term” for such Licensed Product in such country) commencing upon First Commercial Sale of the applicable Licensed Product in such country and ending upon the latest of: (a) expiration of the
last-to-expire Valid Claim of a Licensed Patent Right in such country; (b) the date ten (10) years after the First Commercial Sale of such Licensed Product by AVROBIO, its Affiliates or sublicensees in such country; and (c) expiration of any
applicable Regulatory Exclusivity in such country granted by a Regulatory Authority with respect to the Licensed Product. 
 4.4 Royalty
Reports; Payment. Following the First Commercial Sale of any Licensed Product for which royalties are due pursuant to Section 4.3, and continuing for so long as royalties are due hereunder, within [***] after the end of each [***],
AVROBIO shall provide a royalty-report showing, on a Licensed Product-by-Licensed Product and
country-by-country basis: 
 (a) gross sales
of Licensed Products sold by AVROBIO, its Affiliates and sublicensees during such [***] reporting period (on a Licensed Product by Licensed Product and country by country basis); 

(b) an itemized calculation of the Net Sales (showing all deductions taken pursuant to Section 1.20) of each Licensed
Product sold by AVROBIO, its Affiliates and sublicensees during such [***] reporting period, along with cumulative Net Sales for the then-current calendar year; 

  
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 (c) the royalties payable in United States Dollars which shall have accrued
hereunder with respect to such Net Sales; 
 (d) Withholding Taxes (as defined in Section 4.9), if any, required
by applicable law to be deducted with respect to such royalties; and 
 (e) the rate of exchange with supporting
calculations, determined in accordance with Section 4.5, used by AVROBIO in determining the amount of United States Dollars payable hereunder. 

AVROBIO shall pay to BioMarin the royalties for each [***] at the time of submission of AVROBIO’s royalty report. If no royalty is due for any royalty
period hereunder following commencement of the reporting obligation, AVROBIO shall so report. 
 4.5 Currency Exchange. In the case of
Net Sales outside the United States, the rate of exchange to be used in computing the amount of currency equivalent in United States Dollars shall be the closing exchange rate reported in The Wall Street Journal (U.S., Eastern
Edition) on the last business day of the applicable [***] for which the payment is made. 
 4.6 Records; Audit, Records and Audits.
AVROBIO shall keep, and shall require its Affiliates and (sub)licensees to keep (all in accordance with U.S. generally accepted accounting principles, consistently applied), complete and accurate records in sufficient detail to properly reflect Net
Sales and to enable any milestones payable hereunder to be determined. Upon the written request of BioMarin and not more than once in each calendar year, AVROBIO and its Affiliates shall permit an independent certified public accounting firm of
nationally recognized standing selected by BioMarin and reasonably acceptable to AVROBIO, at BioMarin’s expense, to have access during normal business hours to such records of AVROBIO and/or its Affiliates as may be reasonably necessary to
verify the accuracy of the payments hereunder for any calendar year ending not more than [***] prior to the date of such request. These rights with respect to any calendar year shall terminate [***] after the end of any such calendar year. BioMarin
shall provide AVROBIO with a copy of the accounting firm’s written report within [***] of completion of such report. If such accounting firm correctly concludes that an underpayment was made, then AVROBIO shall pay the amount due within [***]
of the date BioMarin delivers to AVROBIO such accounting firm’s written report so correctly concluding. BioMarin shall bear the full cost of such audit, unless such audit correctly discloses that the additional payment payable by AVROBIO for
the audited period is more than [***] percent ([***]%) of the amount otherwise paid for that audited period, in which case AVROBIO shall pay the fees and expenses charged by the accounting firm. AVROBIO shall include in each relevant license granted
by it a provision requiring any (sub)licensee to maintain records of sales of Licensed Products made pursuant to such license, and to grant access to such records by AVROBIO’s independent accountant to the same extent and under the same
obligations as required of AVROBIO under this Agreement. AVROBIO shall advise BioMarin in advance of each audit of any such (sub)licensee with respect to Licensed Product sales. AVROBIO will provide BioMarin with a summary of the results received
from the audit and, if BioMarin so requests, a copy of the audit report, with respect to relevant Licensed Product sales. 

  
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 4.7 Confidentiality. Each Party will treat all information subject to review under
Section 4.6 in accordance with the provisions of Section 7 and will cause its accounting firm and the independent expert to enter into a reasonably acceptable confidentiality agreement with the audited Party obligating such entity to
maintain all such financial information in confidence pursuant to such confidentiality agreement. 
 4.8 Payment Terms; Interest. 

4.8.1 Payments under this Agreement shall be made in U.S. Dollars by wire transfer of immediately available funds to an account at a commercial
bank designated by BioMarin, such designation in writing to be provided to AVROBIO at least [***] before payment is due. Any payments due under this Agreement shall be due on such date as specified in the Agreement or, in the event that such date is
not a business day, the next succeeding business day. Any payments for reimbursement of patent expenses that are based on invoices shall be made within [***] from AVROBIO’s receipt of such invoice. 

4.8.2 If AVROBIO does not make a payment that is owed under the terms of this Agreement by the date when due, then AVROBIO shall be obligated
to pay computed simple interest, the interest period commencing from such date and ending on the date that payment of the amount owed is actually made, at an interest rate per annum equal to [***] percent ([***]%), or the highest rate allowed by
law, whichever is lower. The interest calculation shall be based on the Actual/360 computation method. Such interest shall be due and payable on the tender of the underlying principal payment. 

4.9 Taxes. BioMarin will be responsible for any income or other taxes owed by BioMarin and required by applicable law to be withheld or
deducted from any of the royalty and other payments made by or on behalf of AVROBIO to BioMarin hereunder (“Withholding Taxes”), and AVROBIO may deduct from any amounts that AVROBIO is required to pay hereunder to BioMarin an amount
equal to any such Withholding Taxes required by AVROBIO to be withheld and paid to the proper tax authority. BioMarin will provide AVROBIO any information available to BioMarin that is necessary to determine the Withholding Taxes. Such Withholding
Taxes will be paid to the proper taxing authority for BioMarin’s account and evidence of such payment will be secured and sent to BioMarin within [***] of such payment. The Parties will use reasonable efforts to do such lawful acts and sign
such lawful deeds and documents as either Party may reasonably request from the other Party to enable BioMarin and AVROBIO or its Affiliates or sublicensees to take advantage of any applicable legal provision or any double taxation treaties with the
object of paying the sums due to BioMarin hereunder without, or to minimize the amount of, such withholding or deduction of any Withholding Taxes. 

  
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	5.	INTELLECTUAL PROPERTY RIGHTS 

 5.1
Prosecution of Licensed Patent Rights. 
 5.1.1 In accordance with this Section 5.1.1, unless the Parties otherwise agree in writing
for a given Licensed Patent Right, BioMarin will have lead responsibility for the preparation, filing, prosecution, defense and maintenance (“Prosecution”) in the Territory of the Licensed Patent Rights. BioMarin shall be
responsible for all costs and expenses with respect to such activities, except to the extent that any such activities are undertaken after the Effective Date at the express request of AVROBIO and in cooperation with AVROBIO as further provided in
Section 5.1.2 below. BioMarin will perform such activities either itself or through patent counsel of its choice. BioMarin will provide AVROBIO with copies of all official correspondence received from patent offices with respect to any claims of
Licensed Patent Rights submitted pursuant to Section 5.1.2, and with any proposed substantive responses thereto sufficiently in advance for AVROBIO to provide comments and suggestions on such proposed responses, which comments and suggestions
shall be considered by BioMarin in good faith. At AVROBIO’s request, BioMarin will provide AVROBIO with an update of the filing, prosecution and maintenance status for each Licensed Patent Right; provided that BioMarin shall not be obligated to
provide such updates more than [***] times per year. In the event that BioMarin elects not to pursue or continue the Prosecution of any Licensed Patent Right in any country, BioMarin shall provide AVROBIO with notice of this decision at least [***]
prior to any pending lapse or abandonment thereof and provide AVROBIO with an opportunity to assume responsibility for such Prosecution, at AVROBIO’s sole expense. In the event that AVROBIO elects in writing to assume responsibility for such
Prosecution, AVROBIO shall have the right, at AVROBIO’s sole expense, to transfer the responsibility for such Prosecution of such patent applications and patents to patent counsel selected by it, and BioMarin shall cooperate with AVROBIO as
reasonably requested to facilitate transfer of the control of such Prosecution to AVROBIO. For clarity, all filings with respect to Licensed Patent Rights shall at all times continue to be pursued in the name of BioMarin or its designee. 

5.1.2 Promptly following the Effective Date, [***]. 

5.2 Enforcement. 
 5.2.1
Initiation. If either Party learns of any infringement or threatened infringement by a Third Party of any Licensed Patent Right in the Field, such Party shall promptly notify the other Party and shall provide such other Party with available
evidence of such infringement. AVROBIO shall have the first right, but not the obligation, at its sole expense, to bring suit or other appropriate legal action against any actual or suspected infringement, in the Field, of any Licensed Patent Rights
impacting the Development or Commercialization of Licensed Products in the Field, in the Territory. BioMarin shall have the right to participate and be represented in any such suit by its own counsel at its own expense. No settlement of any such
action or defense which restricts the scope, or adversely affects the enforceability, of any such Licensed Patent Right may be entered into by AVROBIO without the prior written consent of BioMarin. If AVROBIO does not take such action within [***]
after written notice from BioMarin of such infringement, then on written request by BioMarin, and with AVROBIO’s prior written consent (not to be unreasonably withheld) BioMarin shall have the right but not the obligation, at its own expense,
to bring suit or other appropriate legal action against such infringement. BioMarin shall have the sole right but not the obligation, at its own expense, to bring suit or other appropriate legal action against infringement of the Licensed Patents
outside the Field. Notwithstanding the foregoing, with respect to the Licensed Patent Rights listed in Part 2 of Schedule A, Section 5.2.2 shall apply. 

  
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 5.2.2 Part 2 Patents. BioMarin shall have the first right, but not the obligation, at its
sole expense, to bring suit or other appropriate legal action against any actual or suspected infringement, in the Field, of any Licensed Patent Rights included in Part 2 of Schedule A impacting the Development or Commercialization of Licensed
Products in the Field, in the Territory. AVROBIO shall have the right to participate and be represented in any such suit by its own counsel at its own expense. No settlement of any such action or defense which could reasonably be expected to have a
material adverse effect on AVROBIO’s exclusive rights under this Agreement regarding the Development or Commercialization of Licensed Products in the Field in the Territory may be entered into by BioMarin without the prior written consent of
AVROBIO, which consent shall not be unreasonably withheld, conditioned or delayed. If BioMarin does not take such action within [***] after written notice from AVROBIO of such infringement, then on written request by AVROBIO, and with
BioMarin’s prior written consent (not to be unreasonably withheld) AVROBIO shall have the right but not the obligation, at its own expense, to bring suit or other appropriate legal action against such infringement; provided that BioMarin will
have the right to participate in and control any such litigation with respect to invalidity defenses and counterclaims at AVROBIO’s expense, and to otherwise participate and be represented in any such suit, using its own counsel at
BioMarin’s expense, provided that BioMarin shall use all reasonable efforts to control the expenses to be borne by AVROBIO. 
 5.2.3
Cooperation. Each Party shall, at the other Party’s expense, execute all papers and perform such other acts as may be reasonably required to bring and/or maintain any infringement suit brought by the other Party in accordance with
Section 5.2.1 or Section 5.2.2 above (including joining as a party to such actions or proceedings if required by applicable law). In the event BioMarin is joined as a party to an action initiated by AVROBIO pursuant to Section 5.2, AVROBIO
shall indemnify and secure BioMarin as to any costs (including internal costs), damages and expenses to the extent incurred as a direct result of BioMarin’s joinder. In addition, the Parties shall cooperate with each other in obtaining patent
term restoration or supplemental protection certificates or their equivalents in any country where applicable to Licensed Products. In the event that elections with respect to obtaining such patent term restoration, supplemental protection
certificates or their equivalents are to be made, the Parties shall agree upon such elections. 
 5.2.4 Recovery. Any amount
recovered, whether by judgment or settlement, shall first be applied to reimburse the costs and expenses (including attorneys’ fees) of the Party bringing suit, then to the costs and expenses (including attorneys’ fees), if any, of the
other Party. Any net amounts of recovery(remaining after payment of costs and expenses as above shall be allocated [***]. 
 5.3 Defense
of Infringement Claims. If the manufacture, sale or use of a Licensed Product pursuant to this Agreement results in, or may result in, any claim, suit, or proceeding by a Third Party alleging patent infringement by AVROBIO (or its Affiliates or
sublicensees) in the Field in the Territory, AVROBIO will promptly notify BioMarin thereof in writing, and AVROBIO shall indemnify BioMarin with respect to any such claims as required in Section 9. AVROBIO or its Affiliate or sublicensee will
have the exclusive right to defend and control the defense of any such claim, suit, action or proceeding at its own expense, using counsel of its own choice, and may settle any such claim, suit, action or proceeding at its sole discretion;
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Patent Rights are invalid or unenforceable, or would shorten the life of any of the Licensed Patent Rights or narrow their scope, or require BioMarin to pay any amounts, the aspects of such
settlement directly involving such admission or concession or payment shall require the prior written consent of BioMarin. AVROBIO will keep BioMarin reasonably informed of all material developments in connection with any such claim, suit, or
proceeding. 
 5.4 Patent Marking. AVROBIO shall, and shall require its Affiliates and sublicensees to, mark Licensed Products sold by
it hereunder with appropriate patent numbers or indicia to the extent permitted by applicable law and regulations, in those countries in which such markings or such notices impact recoveries of damages or equitable remedies available with respect to
infringements of Patent Rights. 
  

	6.	REPRESENTATION AND WARRANTIES; COVENANTS 

6.1 BioMarin Warranties. BioMarin hereby warrants and represents to AVROBIO, as of the Effective Date, that: (i) BioMarin owns or
otherwise Controls the Licensed Technology and has the right to grant the licenses under the Licensed Technology as set forth in this Agreement; (ii) BioMarin has not entered into any agreement, arrangement or understanding regarding the use of
the Licensed Technology in the Field in the Territory that would prevent BioMarin from granting the license to AVROBIO as set forth in Section 2.1 of this Agreement; (iii) during the Term of this Agreement, BioMarin shall not grant a
license under the Licensed Technology to any Third Party in the Field in the Territory; (iv) none of the Licensed Technology has been misappropriated from any Third Party; and [***]. 

6.2 Reciprocal Representations and Warranties. Each Party represents and warrants to the other Party that: (i) this
Agreement is a legal and valid obligation binding upon its execution and enforceable against it in accordance with its terms and conditions; and (ii) the execution, delivery and performance of this Agreement by such Party has been duly
authorized by all necessary corporate action, and (iii) the person executing this Agreement on behalf of such Party has been duly authorized to do so by all requisite corporate actions. 

6.3 DISCLAIMER OF WARRANTY. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS NOR GRANTS ANY
OTHER WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND BIOMARIN AND AVROBIO EACH SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY
OF QUALITY OR MERCHANTABILITY, OR ANY WARRANTY AS TO THE VALIDITY OR ENFORCEABILITY OF ANY PATENTS OR THE NONINFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. 

 

	7.	CONFIDENTIALITY 

 7.1 Definition. During the Term, a Party (the
“Disclosing Party”, with respect to information disclosed by such Party) may disclose or otherwise communicate to the other Party (the “Receiving Party”, with respect to information disclosed to such Party by the
other Party) 

  
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its information in connection with this Agreement or the performance of its obligations hereunder (the “Confidential Information” of the disclosing Party), which may include
scientific and manufacturing information and plans, marketing and business plans, and financial and personnel matters relating to a Party or its present or future products, sales, suppliers, customers, employees, investors or business. Without
limiting the foregoing, “Confidential Information” of a Party is hereby deemed to include any information disclosed by such Party to the other Party pursuant to that certain confidentiality agreement between the Parties dated as of
March 1, 2017 (the “Prior CDA”). For clarity, the Licensed Technology is the Confidential Information of BioMarin, subject to the exceptions set forth in Section 7.2. 

7.2 Exclusions. Notwithstanding the foregoing, information disclosed by a Disclosing Party will not be deemed Confidential
Information with respect to the Receiving Party for purposes of this Agreement if such information: 
 (a) was already known
to the Receiving Party or its Affiliates, as evidenced by their written records, other than under an obligation of confidentiality or non-use, at the time of disclosure to the Receiving Party; 

(b) was generally available or was otherwise part of the public domain at the time of its disclosure to the Receiving Party;

 (c) became generally available or otherwise became part of the public domain after its disclosure to the Receiving Party,
through no fault of or breach of its obligations under this Section 9 or the Prior CDA (as defined above) by the Receiving Party; 

(d) was disclosed to the Receiving Party, other than under an obligation of confidentiality or non-use, by a Third Party who
had no obligation to the Party that controls such information not to disclose such information to others and has the lawful right to disclose it; or 

(e) was independently discovered or developed by the Receiving Party or its Affiliate, as evidenced by written records, without
the use of Confidential Information belonging to the Disclosing Party. 
 7.3 Disclosure and Use Restriction. Except as expressly
otherwise provided herein, each Party agrees that, during the Term and for [***] thereafter, such Party (as the Receiving Party with respect to Confidential Information of the other Party) and its Affiliates and sublicensees will keep completely
confidential, and will not publish or otherwise disclose and will not use for any purpose except for the purposes expressly contemplated by this Agreement, any Confidential Information of the Disclosing Party. 

  
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 7.4 Authorized Disclosure. A Receiving Party may disclose specific Confidential
Information of the Disclosing Party to the extent that such disclosure is: 
 7.4.1 required by a valid order of a court of competent
jurisdiction or other governmental or regulatory body of competent jurisdiction; provided, that such Receiving Party will first have given reasonable prior notice of such disclosure requirement to the Disclosing Party and given the Disclosing
Party a reasonable opportunity to quash such order and/or to obtain a protective or order limiting such disclosure and/or requiring that the Confidential Information and documents that are the subject of such order be held in confidence by such
court or governmental or regulatory body and/or, if disclosed, be used only for the purposes for which the order was issued; and provided, further, that if the disclosure requirement is not quashed, the Confidential Information
disclosed in response to such court or governmental order will be limited to that information that is legally required to be disclosed in response to such court or governmental order, taking into account any protective or other similar order
limiting such disclosure obligation; 
 7.4.2 required by law; provided, that the Disclosing Party will
provide the Receiving Party with notice of such disclosure in advance thereof to the extent practicable and the disclosure will be limited to that information that is legally required to be disclosed in response to such court or governmental order;

 7.4.3 made by the Receiving Party to Regulatory Authorities as required in connection with any regulatory filing or application made in
accordance with the terms of this Agreement: provided, that reasonable measures will be taken to assure confidential treatment of such information; 

7.4.4 made by the Receiving Party as reasonably required in connection with the performance of this Agreement, to Affiliates, employees,
consultants, representatives or agents, each of whom prior to disclosure must be bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Section 7; 

7.4.5 made by the Receiving Party to existing or potential acquirers or merger candidates; potential sublicensees or collaborators (to the
extent contemplated hereunder); investment bankers; existing or potential investors, venture capital firms or other financial institutions or investors for purposes of obtaining financing; or Affiliates, each of whom prior to disclosure must be
bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Section 7.4; 
 7.4.6 made
by the Receiving Party with the prior written consent of the Disclosing Party. 
 7.5 Use of Name. Neither Party may make public use
of the other Party’s name except (a) in connection with the activities contemplated hereby as permitted in this Section 7, (b) as required by applicable law, subject to this Section 7, and
(c) otherwise as agreed in writing by such other Party. 
 7.6 Terms of Agreement to be Maintained in Confidence. The
Parties agree that the terms of this Agreement are confidential and will not be disclosed by either Party to any Third Party (except to a Party’s professional advisor, in accordance with Section 7.4.4) without prior written
permission of the other Party; provided, that either Party may make any filings of this Agreement required by law or regulation in any country so long as such Party uses its reasonable efforts to obtain confidential treatment for portions of
this Agreement as available, consults with the other Party, and permits the other Party to participate, to the extent practicable, in seeking a protective order or other confidential treatment; and provided further, that a Party
may publicly disclose, without regard to the preceding requirements of this Section 7.6, information that was previously disclosed in compliance with such requirements; and provided further, that a Party may disclose such terms in
confidence as provided in Section 7.4.5. 

  
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 7.7 Press Release. Neither Party shall issue any press release or other public
announcement relating to the existence of this Agreement or the terms hereof without obtaining the other Party’s written approval. For clarity, subject to AVROBIO’s compliance with its obligations regarding Confidential Information of
BioMarin hereunder and with Sections 7.5 and 7.6, and as long as specific reference to [***] is not made unless and until use of [***] by AVROBIO has been disclosed in scientific publications or presentations made by AVROBIO in the normal course of
business, nothing in this Agreement shall be deemed to prohibit AVROBIO from making customary public disclosures regarding the Licensed Product development program in the Field to be conducted by AVROBIO hereunder. For further clarity, AVROBIO may
make disclosures regarding this Agreement to its current and prospective investors as permitted under Section 7.4.5 and as permitted in Section 7.5. 

8. TERM AND TERMINATION 

8.1 Term. The term of this Agreement will commence as of the Effective Date and, will expire upon the expiration of the last Royalty
Term for all Licensed Products in all countries in the Territory, or will terminate if the Agreement is earlier terminated in accordance with this Section 8 (such period, the “Term”). 

8.2 Termination for Material Breach. 

8.2.1 Any material failure by a Party (the “Breaching Party”) to comply with its material obligations contained in this
Agreement (such failure a “Material Breach”) will entitle the other Party (“Non-Breaching Party”) to give to the Breaching Party written notice of the Material Breach, which notice shall specify in detail the nature
of the breach and shall, require the Breaching Party to make good or otherwise cure such Material Breach. 
 8.2.2 If such Material Breach is
not cured within [***] ([***] for Material Breach of any payment obligation or obligation to issue Preferred Stock) after the receipt of notice pursuant to Section 8.2.1 above, the Non-Breaching Party will be entitled to terminate this
Agreement on written notice to the Breaching Party and without prejudice to any of its other rights conferred on it by this Agreement and other remedies available under applicable law. 

8.3 Termination at Will. 

8.3.1 AVROBIO may terminate this Agreement at will upon [***] prior written notice to BioMarin. 

8.3.2 BioMarin may terminate this Agreement in its entirety upon written notice to AVROBIO in the event of (i) any challenge or
opposition to the validity, patentability, enforceability, scope and/or non-infringement of any of the Licensed Patent Rights, or any actions otherwise opposing any of such Licensed Patent Rights, if brought by AVROBIO, its Affiliates or
sublicensees anywhere in the Territory, or (ii) any assistance with respect to any of the foregoing actions which any of AVROBIO, its Affiliates or sublicensees knowingly provides to a Third Party anywhere in the Territory (except as
required under a court order or subpoena). 

  
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 8.3.3 BioMarin may terminate this Agreement at will immediately, by providing written notice to
AVROBIO upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings, or upon an assignment of a substantial portion of the assets for the benefit of creditors, by or against AVROBIO; provided,
however, that in the case of any involuntary bankruptcy proceeding such right to terminate shall only become effective if AVROBIO consents to the involuntary bankruptcy or such proceeding is not dismissed within [***] after the filing
thereof. 
 8.4 Consequences of Expiration and Termination. 

8.4.1 Expiration. Upon expiration of the Royalty Term in a particular country for a given Licensed Product, AVROBIO’s license under
Section 2.1 with respect to such Licensed Product in the Field in such country will become irrevocable, perpetual and fully-paid. 

8.4.2 Early Termination. Upon termination of this Agreement by a Party for Material Breach pursuant to Section 8.2, or by a
Party pursuant to Section 8.3, the following provisions will apply: 
 (a) All rights and licenses granted by
BioMarin to AVROBIO under this Agreement will terminate immediately. 
 (b) AVROBIO and its Affiliates shall discontinue
making any representations regarding its or their status as a licensee(s) of BioMarin and with respect to Licensed Products, and shall cause any sublicensees (except as set forth in clause (c) below) to do the same. AVROBIO and its Affiliates
shall cease conducting any activities with respect to the Development and Commercialization of the Licensed Products, and shall cause any sublicensees to do the same. 

(c) Subject to BioMarin’s written consent, such consent to not be unreasonably withheld, a sublicense granted by AVROBIO
or any of its Affiliates to a sublicensee shall survive termination of this Agreement, provided that such subicensee agrees in writing within [***] of termination of this Agreement to fully perform what would otherwise be AVROBIO’s obligations
to BioMarin under this Agreement, including without limitation an agreement to cure any then-existing breaches of this Agreement by AVROBIO. 

8.4.3 Upon termination or expiration of the Agreement in whole or in part, upon the request of the Disclosing Party, the Receiving Party shall
promptly return to the Disclosing Party or destroy the Disclosing Party’s Confidential Information, including all copies thereof, except to the extent that retention of such Confidential Information is reasonably necessary for the Receiving
Party to exploit any continuing rights it may have (including, without limitation, the right to exploit any fully paid-up license pursuant to Section 8.4.1 in the event of an expiration of the
Agreement in whole or in part) and/or to fulfill its obligations contemplated herein, including its obligations of non-disclosure and non-use hereunder. The return
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Party of its obligations under the Agreement. The provisions of this section shall not apply to copies of electronically exchanged Confidential Information made as a matter of routine information
technology backup and maintained in a secure manner, or to Confidential Information or copies thereof which must be stored by the Receiving Party according to provisions of applicable law; provided that such Confidential Information shall remain
subject to the terms of Section 7. 
 8.4.4 Survival. Expiration or termination of this Agreement will not relieve the
Parties of any obligation accruing prior to such expiration or termination. The provisions of Sections [***] will survive any termination or expiration of this Agreement. 

 

	9.	INDEMNIFICATION AND INSURANCE 

 9.1
Indemnification by BioMarin. BioMarin will indemnify AVROBIO, its Affiliates, and their respective directors, officers, employees and agents (“AVROBIO Indemnitees”), and defend and hold each of them harmless, from and against any
and all liabilities, expenses and/or losses (including without limitation attorneys’ fees, court costs, witness fees, damages, judgments, fines and amounts paid in settlement) (“Losses”) based on or suffered in connection with
any Third Party suits, claims, actions, and demands (“Claims”) against any such AVROBIO Indemnitee to the extent arising from or occurring as a result of or in connection with (i) any material breach by BioMarin of its
representations and warranties in Section [***] of this Agreement, or (ii) the gross negligence or willful misconduct of BioMarin or its Affiliates; except, to the extent that such Losses arise out of or result from the gross negligence or
willful misconduct of any AVROBIO lndemnitee, or a breach by AVROBIO of any provision of this Agreement. 
 9.2 Indemnification by
AVROBIO. AVROBIO will indemnify BioMarin, its Affiliates, and their respective directors, officers, employees, and agents (“BioMarin Indemnitees”), and defend and hold each of them harmless, from and against any and all Losses
based on or suffered in connection with any Claims against any such BioMarin Indemnitee to the extent arising from or occurring as a result of or in connection with: (i) [***] (ii) any breach by AVROBIO, its Affiliates or sublicensees
(including each of their respective directors, officers, employees, independent contractors, and agents) of this Agreement or of applicable law, (iii) the negligence or willful misconduct of AVROBIO, its Affiliates or sublicensees (including each of
their respective directors, officers, employees, independent contractors, and agents); (iv) [***] or (v) criminal investigations of, defense of criminal charges against, and criminal penalties levied on, AVROBIO or its Affiliates or
sublicensees, or their respective directors, employees and agents; except, in each case, to the extent that such Losses arise out of or result from the gross negligence or willful misconduct of any BioMarin Indemnitee, or a breach by BioMarin of any
provision of this Agreement. 
 9.3 Indemnification Procedure. 

9.3.1 Notice of Claim. Each of AVROBIO and BioMarin, as applicable (the “Indemnitee”) will give the other Party (the
“Indemnifying Party”) prompt written notice (an “Indemnification Claim Notice”) of any Claims or discovery of fact upon which an Indemnitee intends to base a request for indemnification under
Section 9.1 or 9.2, as applicable; provided, however, that the failure to give such prompt written notice will not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent
that the Indemnifying Party is actually prejudiced as a result of such failure. In no event will the Indemnifying Party be liable for any Losses that result from any delay in providing such notice. Each Indemnification Claim Notice must contain a
description of the Claim and the nature and amount of such Loss (but only to the extent that the nature and amount of such Loss are known at such time). The Indemnitee will furnish promptly to the Indemnifying Party copies of all papers and official
documents received by it or any of its fellow Indemnitees, as applicable, in respect of any Losses. 
 9.3.2 Control of Defense.
Within [***] after the Indemnifying Party’s receipt of an Indemnification Claim Notice pursuant to Section 9.3.1, the Indemnifying Party shall assume the defense of the Claim(s) referenced in such notice and provide written confirmation to

  
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the other Party and any other of its fellow Indemnitees. Upon assuming the defense of a Claim, the Indemnifying Party shall appoint lead counsel in the defense of the Claim; provided that such
lead counsel shall be reasonably acceptable to the other Party. Upon the Indemnifying Party’s assumption of the defense of a Claim, the Indemnitees will immediately deliver to the Indemnifying Party all original notices and documents (including
court papers) received by such Indemnitees in connection with the Claim. The Indemnifying Party will keep the other Party regularly informed with respect to the status of its defense of any such Claim, and will respond promptly to the other
Party’s questions with respect to such (including, where requested by the Indemnitee, providing copies of related court filings). 

9.3.3 Right to Participate in Defense. Without limiting Section 9.3.2 above, any Indemnitee will be entitled to participate
in, but not control, the defense of such Claim and to employ counsel of its choice for such purpose; provided, that such employment will be at the Indemnitee’s own expense unless the employment thereof has been specifically authorized by the
Indemnifying Party in writing. 
 9.3.4 Settlement. With respect to any Losses (a) relating solely to the payment of money
damages in connection with a Claim and (b) that will not (i) result in the Indemnitee’s becoming subject to injunctive or other relief, (ii) require an admission of fault by a Indemnitee, or
(iii) otherwise adversely affect the business of the Indemnitee in any manner, and (c) that includes a complete release of the Indemnitee, the Indemnifying Party will have the sole right to enter into a settlement on such terms as
AVROBIO, in its sole discretion, will deem appropriate. The Indemnifying Party will pay all Losses resulting from such settlement pursuant to the terms of such settlement, including any conditions set by the court adjudicating such Claim. With
respect to all other Losses in connection with Claims, the Indemnifying Party will have authority to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss provided it obtains the prior written consent of
the other Party and all relevant Indemnitees (which consent will be at the other Party’s and such other Indemnitees’ sole and absolute discretion). 

9.3.5 Cooperation. Each Indemnitee will cooperate in the defense of any Claim by the Indemnifying Party under this Section 9 and
will furnish such records, information and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested by the Indemnifying Party in connection with such defense.
Such cooperation will include access during normal business hours afforded to counsel selected by the Indemnifying Party under Section 9.3.2 to, and reasonable retention by the Indemnitee, as required under applicable law, of records and
information that are reasonably relevant to such Claim, and making a reasonably limited number of employees and agents available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The
Indemnifying Party will reimburse the Indemnitee for all its reasonable out-of-pocket expenses in connection therewith. 

9.4 Expenses. Except as provided above, any costs and expenses, including fees and disbursements of counsel, incurred by an Indemnitee
in connection with any Claim will be reimbursed on a [***] by the Indemnifying Party without prejudice to the Indemnifying Party’s right to contest the Indemnitee’s right to indemnification and subject to refund in the event the
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 9.5 Insurance. AVROBIO shall have and maintain at its sole cost and expense, adequate
liability insurance (including product liability insurance) to protect against potential liabilities and risk arising out of its activities under this Agreement and any agreement related hereto and upon such terms (including coverages, deductible
limits and self-insured retentions) as are customary in the pharmaceutical industry generally for drug development activities; provided that, upon commencement of clinical trials of Licensed Product(s), such coverage will include a minimum per
occurrence limit of [***] and upon commercialization of Licensed Products such coverage will include a minimum per occurrence limit of [***]. Such liability insurance shall insure against all types of liability, including personal injury, physical
injury or property damage arising out of such AVROBIO’s activities hereunder. Such policy shall include BioMarin as an additional insured and shall include a waiver of subrogation. At least [***] prior to initiation of any clinical trial of a
Licensed Product, Provider shall provide to BioMarin certificates of insurance evidencing the above required insurance. This Section 9.5 shall not create any limitation on AVROBIO’s liability under this Agreement, including with
respect to its indemnification obligations under this Section 9. 
  

	10.	LIMITATION OF LIABILITY 

 IN NO EVENT SHALL
EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, WHETHER BASED UPON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT, OR OTHERWISE, ARISING OUT OF THE
AGREEMENT; AND IN NO EVENT SHALL BIOMARIN’S LIABILITY FOR DIRECT DAMAGES UNDER THIS AGREEMENT EXCEED [***]. THE FOREGOING LIMITATIONS WILL NOT LIMIT EITHER PARTY’S OBLIGATIONS TO THE OTHER PARTY UNDER [***]. 

 

	11.	MISCELLANEOUS 

 11.1 Assignment. Without the prior written consent
of the other Party hereto (which consent shall not be unreasonably withheld), a Party will not sell, transfer, assign, delegate, pledge or otherwise dispose of, whether voluntarily, involuntarily, by operation of law or otherwise, this Agreement or
any of its rights or duties hereunder; provided, that a Party hereto may assign or transfer this Agreement and its rights or obligations hereunder without the consent of the other Party: (a) to any Affiliate of such Party; or
(b) to any Third Party with which it merges or consolidates, or to which it transfers all or substantially all of its assets to which this Agreement relates, and provided that the foregoing consent obligation shall not limit the ability
to grant sublicenses as permitted in this Agreement or to engage subcontractors to perform certain obligations hereunder. The assigning Party (except if it is not the surviving entity) will remain jointly and severally liable with the relevant
Affiliate or Third Party assignee under this Agreement, and the relevant Affiliate assignee, Third Party assignee or surviving entity will assume in writing all of the assigning Party’s obligations under this Agreement. Any purported assignment
or transfer in violation of this Section 11.1 will be void ab initio and of no force or effect. 
 11.2 Severability. If
any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future law, and if the rights or obligations of either Party under this Agreement will not be materially and adversely affected thereby,
(a) such provision will be fully severable, (b) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining

  
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provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom, and (d) in lieu of
such illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and
reasonably acceptable to the Parties herein. 
 11.3 Governing Law; Dispute Resolution. 

11.3.1 This Agreement, and any disputes between the Parties related to or arising out of this Agreement (including the Parties’
relationship created hereby, the negotiations for and entry into this Agreement, its conclusion, binding effect, amendment, coverage, termination, or the performance or alleged non-performance of a Party of its obligations under this Agreement)
(each a “Dispute”), will be governed by the laws of the State of Delaware without reference to any choice of law principles thereof that would cause the application of the laws of a different jurisdiction. 

11.3.2 In the event of any Dispute, a Party may notify the other Party in writing of such Dispute, and such Dispute will be promptly referred
to [***] (“Senior Officers”) of each of the Parties (or their respective designees) who will use their good faith efforts to resolve the Dispute within [***] after it was referred to such Senior Officers. If such Senior
Officers are unable to resolve such dispute within thirty (30) days of their first meeting for such negotiations, either Party may seek to have such dispute resolved in accordance with Section 11.3.3. 

11.3.3 Any dispute arising under this Agreement, or other legal proceeding relating to this Agreement or the enforcement of any provision of
this Agreement, if not resolved by the Senior Officers pursuant to Section 11.3.2, must be brought or otherwise commenced solely and exclusively in courts of competent jurisdiction located in the city of Wilmington, Delaware. Consistent with
the preceding sentence, each of the Parties: (a) expressly and irrevocably consents and submits to the jurisdiction of the courts of competent jurisdiction in the city of Wilmington, Delaware in connection with any such legal proceeding;
(b) expressly agrees that the courts of competent jurisdiction in the city of Wilmington, Delaware shall be deemed to be a convenient forum; and (c) expressly agrees not to assert (by way of motion, as a defense or
otherwise), in any such legal proceeding commenced in the courts of competent jurisdiction in the city of Wilmington, Delaware, any claim that such Party is not subject personally to the jurisdiction of such court, that such legal proceeding has
been brought in an inconvenient forum, that the venue of such proceeding is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by such court. 

11.4 Notices. All notices or other communications that are required or permitted hereunder will be in writing and delivered personally,
or sent by internationally-recognized overnight courier addressed as follows: 
 If to BioMarin. to: 

BioMarin Pharmaceutical Inc. 

105 Digital Drive 
 Novato, CA
94949 
 Attention: General Counsel 

  
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 If to AVROBIO, to: 

AVROBIO, Inc. 
 700 Technology
Square, Suite 101 
 Cambridge, MA 02139 

Attention: Chief Executive Officer 
 or to such
other address as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance herewith. Any such communication will be deemed to have been given (i) when delivered, if personally delivered, and
(ii) on the second business day after dispatch, if sent by internationally-recognized overnight courier. It is understood and agreed that this Section 11.4 is not intended to govern the day-to-day business communications necessary between the Parties in performing their duties, in due course, under the terms of this Agreement. 

11.5 Entire Agreement; Modifications. This Agreement including the Exhibits attached hereto, each of which is hereby incorporated and
made part of in this Agreement by reference, sets forth and constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and all prior agreements, understanding, promises and representations,
whether written or oral, with respect thereto. Each Party confirms that it is not relying on any representations or warranties of the other Party except as specifically set forth herein. No amendment or modification of this Agreement will be binding
upon the Parties unless in writing and duly executed by authorized representatives of both Parties. 
 11.6 Relationship of the
Parties. It is expressly agreed that the Parties’ relationship under this Agreement is strictly one of a pure contract relationship between BioMarin and AVROBIO, and that this Agreement does not create or constitute a partnership, joint
venture, or agency. Neither Party will have the authority to make any statements, representations or commitments of any kind, or to take any action, which will be binding (or purport to be binding) on the other. 

11.7 Waiver. Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof,
but no such waiver will be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. The waiver by either Party hereto of any right hereunder or of claims based on the failure to
perform or a breach by the other Party will not be deemed a waiver of any other right hereunder or of any other breach or failure by said other Party whether of a similar nature or otherwise. 

11.8 Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument. 
 11.9 No Benefit to Third Parties. The representations, warranties,
covenants and agreements set forth in this Agreement are for the sole benefit of the Parties hereto and their successors and permitted assigns, and they will not be construed as conferring any rights on any other parties. 

  
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Requested *** 

 11.10 Further Assurance. Each Party will duly execute and deliver, or cause to be duly
executed and delivered, such further instruments and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents and instruments, as may be necessary or as the other Party may reasonably
request in connection with this Agreement or to carry out more effectively the provisions and purposes, or to better assure and confirm unto such other Party its rights and remedies under this Agreement. 

11.11 English Language. This Agreement has been written and executed in the English language as used in the United States of America
and will be interpreted in accordance with the English language as used in the United States of America. Any translation by a Party into any other language will not be an official version thereof, and in the event of any conflict in interpretation
between the English version and such translation, the English version will control. 
 11.12 No Drafting Party. This Agreement has
been submitted to the scrutiny of, and has been negotiated by, both Parties and their counsel, and will be given a fair and reasonable interpretation in accordance with its terms, without consideration or weight being given to any such terms having
been drafted by any Party or its counsel. No rule of strict construction will be applied against either Party . 
 11.13
Construction. Except where the context otherwise requires, wherever used, the use of any gender will be applicable to all genders and the word “or” is used in the inclusive sense (and/or). The captions of this Agreement are for
convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this Agreement. The term “including” as used herein means including, without
limiting the generality of any description preceding such term. The word “any” will mean “any” unless otherwise clearly indicated by context. Unless the context requires otherwise, (a) any definition of or reference
to any agreement, instrument or other document refer to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set
forth herein or therein), (b) any reference to any laws refer to such laws as from time to time enacted, repealed or amended, (c) the words “herein”, “hereof and “hereunder”, and words of similar import, refer to
this Agreement in its entirety and not to any particular provision hereof, and (d) all references herein to Sections and Exhibits, unless otherwise specifically provided, refer to the Sections and Exhibits of this Agreement. 

[Remainder of page intentionally left blank. Signature page follows.] 

  
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 IN WITNESS WHEREOF, the Parties have executed this Agreement by their respective authorized
representatives as of the date first written above. 
  

			
	BIOMARIN PHARMACEUTICAL INC.
		
	By:	 	 /s/ G. Eric Davis

		
	Name:	 	G. Eric Davis
		
	Title:	 	Executive Vice President, General Counsel
	
	AVROBIO, INC.
		
	By:	 	 /s/ Geoff MacKay

		
	Name:	 	Geoff MacKay
		
	Title:	 	President & CEO

  
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 SCHEDULE A 

LICENSED PATENT RIGHTS 

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 SCHEDULE B 

LICENSED KNOW-HOW 

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 SCHEDULE C 

ADDITIONAL CLAIMS FOR LICENSED PATENT RIGHTS

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PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
2018 EQUITY INCENTIVE PLAN 

i

TABLE OF CONTENTS

	
					
	 
	 
	 
	Page

	1.
	 
	Purpose
	1

	2.
	 
	Definitions
	1

	3.
	 
	Administration
	5

	4.
	 
	Effective Date and Term of Plan
	5

	5.
	 
	Shares Subject to the Plan
	6

	6.
	 
	Eligibility
	6

	7.
	 
	Types of Awards.
	6

	 
	7.1
	

	Options
	6

	 
	7.2
	

	Share Appreciation Rights
	8

	 
	7.3
	

	Restricted Shares
	8

	 
	7.4
	

	Performance Shares; Performance Goals
	9

	 
	7.5
	

	Contract Shares
	10

	 
	7.6
	

	Bonus Shares
	10

	 
	7.7
	

	Dividend Equivalent Rights
	10

	 
	7.8
	

	Holding Period
	10

	8.
	 
	Events Affecting Outstanding Awards
	10

	 
	8.1
	

	Termination of Service (Other Than by Death or Disability)
	10

	 
	8.2
	

	Death or Disability
	11

	 
	8.3
	

	Capital Adjustments
	11

	 
	8.4
	

	Certain Corporate Transactions
	11

	9.
	 
	Suspension, Amendment or Termination of the Plan
	12

	10.
	 
	Miscellaneous
	12

	 
	10.1
	

	Documentation of Awards
	12

	 
	10.2
	

	Rights as a Shareholder
	13

	 
	10.3
	

	Conditions on Delivery of Shares
	13

	 
	10.4
	

	Registration and Listing of Shares
	13

	 
	10.5
	

	Compliance with Rule 16b-3
	13

	 
	10.6
	

	Tax Withholding
	13

	 
	10.7
	

	Transferability of Awards
	13

	 
	10.8
	

	Registration
	13

	 
	10.9
	

	Acquisitions
	14

	 
	10.1
	

	Clawback
	14

	 
	10.11
	

	Employment Rights
	14

	 
	10.12
	

	Indemnification of Board and Committee
	14

	 
	10.13
	

	Application of Funds
	14

	 
	10.14
	

	Governing Law
	14

i

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
2018 EQUITY INCENTIVE PLAN 
Preamble 
WHEREAS, Pennsylvania Real Estate Investment Trust (the “Trust”) desires to continue to have the ability to award certain equity-based benefits to certain of the non-employee trustees and officers and other key employees of the Trust and its “Related Corporations” and “Subsidiary Entities” (both as defined below); 
WHEREAS, the Trust desires to adopt the Plan (as defined below) in accordance with the terms hereof; 
NOW, THEREFORE, the Plan is hereby adopted (subject to the approval of the shareholders of the Trust) under the following terms and conditions: 
1.Purpose. The Plan is intended to provide a means whereby the Trust may grant ISOs, NQSOs, Restricted Shares, SARs, Performance Shares, RSUs, Contract Shares, Bonus Shares and/or DERs to Key Employees and Non-Employee Trustees. Thereby, the Trust expects to attract and retain such Key Employees and Non-Employee Trustees and to motivate them to exercise their best efforts on behalf of the Trust and its Subsidiary Entities. 

2.Definitions. 
(a)“Annual Grant” shall have the meaning set forth in Section 7.3(c). 
(b)“Award” shall mean ISOs, NQSOs, Restricted Shares, SARs, Performance Shares, RSUs, Contract Shares, Bonus Shares and/or DERs awarded by the Committee to a Participant. 
(c)“Award Agreement” shall mean a written document evidencing the grant of an Award, as described in Section 10.1. 
(d)“Board” shall mean the Board of Trustees of the Trust. 
(e)“Bonus Shares” shall mean an Award that entitles the recipient to receive Shares without payment, as a bonus. 
(f)“Change in Control” shall mean:
(1)The acquisition by an individual, entity, or group (within the meaning of section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30 percent or more of the combined voting power of the then outstanding voting securities of the Trust entitled to vote generally in the election of trustees (the “Outstanding Shares”); provided, however, that the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the Trust unless, in connection therewith, a majority of the individuals who constitute the Board as of the date immediately preceding such transaction cease to constitute at least a majority of the Board; (ii) any acquisition by the Trust; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Trust or any entity controlled by the Trust; (iv) any acquisition by any individual, entity, or group in connection with a “Business Combination” (as defined in paragraph (3) below) that fails to qualify as a Change in Control pursuant to paragraphs (3) or (4) below; or (v) any acquisition by any Person entitled to file Schedule 13G under the Exchange Act with respect to such acquisition; or 
(2)Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a trustee subsequent to the date hereof whose appointment, election, or nomination for election by the Trust’s shareholders was approved by a vote of at least a majority 

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of the trustees then comprising the Incumbent Board (other than an appointment, election, or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the trustees of the Trust) shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; or 
(3)The consummation of a reorganization, merger, or consolidation, or sale or other disposition of all or substantially all of the assets of the Trust (a “Business Combination”), in each case, if, following such Business Combination all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately prior to such Business Combination beneficially own, directly or indirectly, less than 40 percent of, respectively, the then outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of trustees or directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Trust or all or substantially all of the Trust’s assets either directly or through one or more subsidiaries) in substantially the same proportions as such beneficial owners held their ownership, immediately prior to such Business Combination of the Outstanding Shares; or 
(4)The consummation of a Business Combination, if, following such Business Combination all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately prior to such Business Combination beneficially own, directly or indirectly, 40 percent or more but less than 60 percent of, respectively, the then outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of trustees or directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which, as a result of such transaction, owns the Trust or all or substantially all of the Trust’s assets either directly or through one or more subsidiaries) in substantially the same proportions as such beneficial owners held their ownership, immediately prior to such Business Combination, of the Outstanding Shares, and (i) any Person (excluding any employee benefit plan (or related trust) of the Trust or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30 percent or more of, respectively, the then outstanding shares of equity securities of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership existed prior to the Business Combination, or (ii) at least a majority of the members of the board of trustees or directors of the entity resulting from such Business Combination were not members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination, or (iii) the Chief Executive Officer of the Trust at the time of the execution of the initial agreement providing for such Business Combination is not appointed or elected to a comparable or higher position with the entity resulting from such Business Combination, or (iv) the executive officers of the Trust holding the title of Executive Vice President or higher at the time of the execution of the initial agreement for such Business Combination constitute less than a majority of the executive officers holding comparable or higher titles of the entity resulting from such Business Combination; or 
(5)The consummation of a Business Combination, following which all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately prior to such Business Combination beneficially own, directly or indirectly, 60 percent or more of, respectively, the then outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of trustees or directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which, as a result of such transaction, owns the Trust or all or substantially all of the Trust’s assets either directly or through one or more subsidiaries) shall not constitute a “Change in Control” unless following such transaction the provisions of paragraphs (1) or (2) are independently satisfied; or 
(6)A complete liquidation or dissolution of the Trust.
(g)“Code” shall mean the Internal Revenue Code of 1986, as amended. 

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(h)“Committee” shall mean the Trust’s Executive Compensation and Human Resources Committee, which shall consist solely of not fewer than two trustees of the Trust who shall be appointed by, and serve at the pleasure of, the Board (taking into consideration the rules under section 16(b) of the Exchange Act). 
(i)“Contract Date” shall mean the date specified in the Award Agreement on which a Participant is entitled to receive Contract Shares, provided he or she is still providing services to the Trust or one of its Subsidiary Entities on each date. 
(j)“Contract Shares” shall mean an Award that entitles the recipient to receive unrestricted Shares, without payment, if the recipient is still providing services to the Trust or one of its Subsidiary Entities as of the future date specified in the Award Agreement. 
(k)“Disability” shall mean a Participant’s “permanent and total disability,” as defined in section 22(e)(3) of the Code. 
(l)“DER” shall mean a dividend equivalent right - i.e., an Award that entitles the recipient to receive a benefit in lieu of cash dividends that would be payable on any or all Shares subject to another Award granted to the Participant, or that would be payable on a number of notional Shares unrelated to any other Award, in either case had such Shares been outstanding. 
(m)“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
(n)“Fair Market Value” shall mean the following, arrived at by a good faith determination of the Committee: 
(1)if there are sales of Shares on a national securities exchange or in an over-the-counter market on the date of grant (or on such other date as value must be determined), then the mean between the highest and lowest quoted selling price on such date; or 
(2)if there are no such sales of Shares on the date of grant (or on such other date as value must be determined) but there are such sales on dates within a reasonable period both before and after such date, the weighted average of the means between the highest and lowest selling price on the nearest date before and the nearest date after such date on which there were such sales; or 
(3)if paragraphs (1) and (2) above are not applicable, or the Committee desires to use another method in connection with an Award, then such other method of determining fair market value as shall be adopted by the Committee. 
Where the Fair Market Value of Shares is determined under (2) above, the average shall be weighed inversely by the respective numbers of trading days between the dates of reported sales and the specified valuation date, in accordance with Treas. Reg. §20.2031-2(b)(1) or any successor thereto. 
(o)“ISO” shall mean an incentive stock option - i.e., an Option which, at the time such Option is granted under the Plan, qualifies as an incentive stock option within the meaning of section 422 of the Code, unless the Award Agreement states that the Option will not be treated as an ISO. 
(p)“Key Employee” shall mean an officer or other key employee of the Trust or one of its Subsidiary Entities, as determined by the Committee in its sole discretion. 
(q)“More-Than-10-Percent Shareholder” shall mean any person who at the time of grant owns, directly or indirectly, or is deemed to own by reason of the attribution rules of section 424(d) of the Code, Shares possessing more than 10 percent of the total combined voting power of all classes of Shares of the Trust or of a Related Corporation. 
(r)“Non-Employee Trustee” shall mean a trustee of the Trust who is not an employee of the Trust or of a Related Corporation or Subsidiary Entity. 

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(s)“NQSO” shall mean a nonqualified stock option-i.e., an Option that, at the time such Option is granted to a Participant, does not meet the definition of an ISO, whether or not it is designated as a nonqualified stock option in the Award Agreement. 
(t)“Option” is an Award entitling the Participant on exercise thereof to purchase Shares at a specified exercise price. 
(u)“Participant” shall mean an individual who has been granted an Award under the Plan. 
(v)“Performance Shares” shall mean an Award that entitles the recipient to receive Shares, without payment, following the attainment of designated Performance Goals. 
(w)“Performance Goals” shall mean goals deemed by the Committee to be important to the success of the Trust or any of its Subsidiary Entities. The Committee shall establish the specific measures for each such goal at the time an Award is granted, if the Committee desires to condition the Award on the achievement of Performance Goals. In creating these measures, the Committee shall use one or more of the following business criteria or such other criteria as the Committee deems appropriate: funds from operations, funds from operations per share, funds available for distribution, funds available for distribution per share, net operating income, return on assets, return on net assets, asset turnover, return on equity, return on capital, market price appreciation of Shares, economic value added, total shareholder return, net income, pre-tax income, earnings per Share, operating profit margin, net income margin, sales margin, cash flow, market share, sales growth, capacity utilization, increase in customer base, environmental health and safety, diversity, and/or quality. The business criteria may be expressed in absolute terms or relative to the performance of other individuals or companies or an index. 
(x)“Plan” shall mean this Pennsylvania Real Estate Investment Trust 2018 Equity Incentive Plan, as set forth herein and as it may be amended from time to time. 
(y)“Related Corporation” shall mean either a “subsidiary corporation” of the Trust (if any), as defined in section 424(f) of the Code, or the “parent corporation” of the Trust (if any), as defined in section 424(e) of the Code. 
(z)“Restricted Shares” shall mean an Award that grants the recipient Shares at no cost, subject to whatever restrictions are determined by the Committee. 
(aa)“RSU” shall mean a restricted share unit granted pursuant to Section 7.4.
(ab)“SAR” shall mean a share appreciation right-i.e., an Award entitling the recipient on exercise to receive an amount, in cash or Shares or a combination thereof (such form to be determined by the Committee), determined in whole or in part by reference to appreciation in Share value. 
(ac)“Securities Act” shall mean the Securities Act of 1933, as amended. 
(ad)“Shares” shall mean shares of beneficial interest in the Trust, par value $1.00 per share. 
(ae)“Short-Term Deferral Period” shall mean, with respect to an amount (including Shares) payable pursuant to an Award, the 2 1/2-month period beginning on the day immediately following the last day of the Participant’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture. In no event shall interest be payable to reflect a payment date after the first day of the Short-Term Deferral Period. 
(af)“Subsidiary Entity” shall mean an affiliate of the Trust that is controlled by the Trust, directly or indirectly, through one or more intermediaries. 
(ag)“Trust” shall mean Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust. 

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3.Administration. 

(a)The Plan shall be administered by the Committee; provided, however, that the Board reserves the right to exercise from time to time the authority and discretion otherwise reserved herein to the Committee, and, in that case, the authority and discretion of the Board will be coextensive with that of the Committee. Each member of the Committee, while serving as such, shall be deemed to be acting in his or her capacity as a trustee of the Trust. Acts approved by a majority of the members of the Committee at which a quorum is present, or acts without a meeting reduced to or approved in writing by a majority of the members of the Committee, shall be the valid acts of the Committee. Any authority of the Committee (except for the authority described in subsection (b)(1)-(4) below) may be delegated to a plan administrator. 

(b)The Committee shall have the authority: 
(1)to select the Key Employees and Non-Employee Trustees to be granted Awards under the Plan, and to grant such Awards at such time or times as it may choose; 
(2)to determine the type and size of each Award, including the number of Shares subject to the Award; 
(3)to determine the terms and conditions of each Award; 
(4)to amend an existing Award in whole or in part (including the extension of the exercise period for any NQSO), subject to Sections 7.1(g) and 7.2(e), except that the Committee may not (i) lower the exercise price of any Option, (ii) lower the grant date Fair Market Value of any SAR or (iii) without the consent of the Participant holding the Award, take any action under this clause if such action would adversely affect the rights of such Participant with respect to such Award; 
(5)to adopt, amend, and rescind rules and regulations for the administration of the Plan; and 
(6)to interpret the Plan and decide any questions and settle any controversies that may arise in connection with it. 
Such determinations and actions of the Committee (or its delegate), and all other determinations and actions of the Committee (or its delegate) made or taken under authority granted by any provision of the Plan, shall be conclusive and shall bind all parties. Nothing in this subsection (b) shall be construed as limiting the power of the Board or the Committee to make the adjustments described in Sections 8.3 and 8.4. 
4.Effective Date and Term of Plan. 
(a)Effective Date. The Plan was adopted by the Board and became effective on April 19, 2018, and, was approved by the shareholders of the Trust pursuant to Section 9(b) on May 31, 2018.
 
(b)Term of Plan for ISOs. No Awards may be granted under the Plan after the tenth anniversary of the most recent date the Plan is approved by the shareholders of the Trust, but Awards previously granted may extend beyond that date. 

5.Shares Subject to the Plan. The aggregate number of Shares that may be delivered under the Plan (pursuant to Options, Restricted Shares, SARs, Performance Shares, RSUs or otherwise) is 1,757,499 Shares (which number includes the Shares that were available under the Pennsylvania Real Estate Investment Trust Second Amended and Restated 2003 Equity Incentive Plan). Further, no Key Employee shall receive Options, Restricted Shares, SARs, Performance Shares and/or RSUs for more than 250,000 Shares during any calendar year under the Plan. However, the limits in the preceding two sentences shall be subject to the adjustment described in Section 8.3. Shares delivered under the Plan may be authorized but unissued Shares or reacquired Shares, and the Trust may purchase Shares required for this purpose, from time to time, if it deems such purchase to be advisable. 

Any Shares subject to an Option which expires or otherwise terminates for any reason whatever (including, without limitation, the surrender thereof without having been exercised), any Shares that are subject to an 

5

Award that are forfeited, any Shares not delivered to the Participant because they are withheld for, or remitted by the Participant for, the payment of taxes with respect to an Award or in satisfaction of the exercise price of an Option, and any Shares subject to an Award which is payable in Shares or cash and that is satisfied in cash rather than in Shares, shall continue to be available for Awards under the Plan. However, if an Option is cancelled, the Shares covered by the cancelled Option shall be counted against the maximum number of Shares specified above for which Options may be granted to a single Key Employee. 
6.Eligibility. The class of employees who shall be eligible to receive Awards (including ISOs) under the Plan shall be the Key Employees (including any trustees of the Trust who are also Key Employees). The class of individuals who shall be eligible to receive Awards (other than ISOs) under the Plan shall be the Non-Employee Trustees. More than one Award may be granted to a Participant under the Plan. 
7.Types of Awards.

7.1Options. 
(a)Kinds of Options. Both ISOs and NQSOs may be granted by the Committee under the Plan; however, ISOs may only be granted to Key Employees of the Trust or of a Related Corporation. Once an ISO has been granted, no action by the Committee that would cause the Option to lose its status as an ISO under the Code will be effective without the consent of the Participant holding the Option.
 
(b)$100,000 Limit. The aggregate Fair Market Value of the Shares with respect to which ISOs are exercisable for the first time by a Key Employee during any calendar year (counting ISOs under this Plan and under any other stock option plan of the Trust or a Related Corporation) shall not exceed $100,000. If an Option intended as an ISO is granted to a Key Employee and the Option may not be treated in whole or in part as an ISO pursuant to such $100,000 limit, the Option shall be treated as an ISO to the extent it may be so treated under the limit and as an NQSO as to the remainder. For purposes of determining whether an ISO would cause the limit to be exceeded, ISOs shall be taken into account in the order granted. The annual limits set forth above for ISOs shall not apply to NQSOs.
 
(c)Exercise Price. Except as provided in Section 10.10, the exercise price of an Option shall be determined by the Committee, subject to the following: 
(1)The exercise price of an ISO shall not be less than the greater of (i) 100 percent (110 percent in the case of an ISO granted to a More-Than-10-Percent Shareholder) of the Fair Market Value of the Shares subject to the Option, determined as of the time the Option is granted, or (ii) the par value per Share. 
(2)The exercise price of an NQSO shall not be less than the greater of (i) 100% percent of the Fair Market Value of the Shares subject to the Option, determined as of the time the Option is granted, or (ii) the par value per Share.
 
(d)Term of Options. The term of each Option may not be more than 10 years (five years, in the case of an ISO granted to a More-Than-10-Percent Shareholder) from the date the Option was granted, or such earlier date as may be specified in the Award Agreement.
 
(e)Exercise of Options. An Option shall become exercisable at such time or times, and on such conditions, as the Committee may specify. The Committee may at any time and from time to time accelerate the time at which all or any part of the Option may be exercised. Any exercise of an Option must be in writing, signed by the proper person, and delivered or mailed to the Trust, accompanied by (i) any other documents required by the Committee and (ii) payment in full in accordance with subsection (f) below for the number of Shares for which the Option is exercised (except that, in the case of an exercise arrangement approved by the Committee and described in subsection (f)(3) below, payment may be made as soon as practicable after the exercise). Only full Shares shall be issued under the Plan, and any fractional Share that might otherwise be issuable upon exercise of an Option granted hereunder shall be forfeited.
 
(f)Payment for Shares. The Award Agreement shall set forth, from among the following alternatives, how the exercise price is to be paid:

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(1)in cash or by check (acceptable to the Committee), bank draft, or money order payable to the order of the Trust; 
(2)in Shares previously acquired by the Participant; provided, however, that such Shares have been held by the Participant for such period of time as required to be considered “mature” Shares for purposes of accounting treatment; 
(3)by delivering a properly executed notice of exercise of the Option to the Trust and a broker, with irrevocable instructions to the broker promptly to deliver to the Trust the amount of sale or loan proceeds necessary to pay the exercise price of the Option; or 
(4)by any combination of the above-listed forms of payment or such other means as the Committee may approve.
 
In the event the Option price is paid, in whole or in part, with Shares, the portion of the Option price so paid shall be equal to the Fair Market Value on the date of exercise of the Option of the Shares surrendered in payment of such Option price. 
(g)No Repricing; No Dividend Equivalents. Repricing of Options shall not be permitted without the approval of the shareholders of the Trust. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an Option to lower its exercise price (other than on account of capital adjustments resulting from share splits, etc., as described in Section 8.3); (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing for cash or canceling an Option in exchange for another Award at a time when its exercise price is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange occurs in connection with an event set forth in Section 8.4 (involving certain corporate transactions). Such cancellation and exchange will be considered a “repricing” regardless of whether it would be treated as a “repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of the Participant. Options shall not earn dividend equivalents. 

7.2Share Appreciation Rights.
 
(a)Grant of Share Appreciation Rights. SARs may be granted to a Key Employee or a Non-Employee Trustee by the Committee. SARs may be granted in tandem with, or independently of, Options granted under the Plan. An SAR granted in tandem with an Option that is not an ISO may be granted either at or after the time the Option is granted. An SAR granted in tandem with an ISO may be granted only at the time the ISO is granted. 
 
(b)Nature of Share Appreciation Rights. An SAR entitles the Participant to receive, with respect to each Share as to which the SAR is exercised, the excess of the Share’s Fair Market Value on the date of exercise over its Fair Market Value on the date the SAR was granted. Such excess shall be paid in cash, Shares, or a combination thereof, as determined by the Committee. With respect to an SAR paid in Shares, the total number of Shares actually issued to a Participant with respect to such SAR, rather than the number of Shares subject to such SAR, shall reduce the number of Shares available for issuance under the Plan. 
(c)Rules Applicable to Tandem Awards. When SARs are granted in tandem with Options, the number of SARs granted to a Participant that shall be exercisable during a specified period shall not exceed the number of Shares that the Participant may purchase upon the exercise of the related Option during such period. Upon the exercise of an Option, the SAR relating to the Shares covered by such Option will terminate. Upon the exercise of an SAR, the related Option will terminate to the extent of an equal number of Shares. The SAR will be exercisable only at such time or times, and to the extent, that the related Option is exercisable and will be exercisable in accordance with the procedure required for exercise of the related Option. The SAR will be transferable only when the related Option is transferable, and under the same conditions. An SAR granted in tandem with an ISO may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the exercise price of such ISO. 

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(d)Exercise of Independent Share Appreciation Rights. A SAR not granted in tandem with an Option shall become exercisable at such time or times, and on such conditions, as the Committee may specify in the Award Agreement. The Committee may at any time accelerate the time at which all or any part of the SAR may be exercised. Any exercise of an independent SAR must be in writing, signed by the proper person, and delivered or mailed to the Trust, accompanied by any other documents required by the Committee.
 
(e)No Repricing; No Dividend Equivalents. Repricing of SARs shall not be permitted without the approval of the shareholders of the Trust. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an SAR to lower its exercise price (i.e., its starting value) (other than on account of capital adjustments resulting from share splits, etc., as described in Section 8.3); (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing for cash or canceling an SAR in exchange for another Award at a time when its exercise price (i.e., its starting value) is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange occurs in connection with an event set forth in Section 8.4 (involving certain corporate transactions). Such cancellation and exchange will be considered a “repricing” regardless of whether it would be treated as a “repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of the Participant. SARs shall not earn dividend equivalents.
 
(f)Term of SARs. The term of each SAR may not be more than 10 years from the date the SAR was granted, or such earlier date as may be specified in the Award Agreement. 

7.3Restricted Shares. 

(a)General Requirements. Restricted Shares may be issued or transferred to a Key Employee or a Non-Employee Trustee for no consideration.
 
(b)Restrictions. Except as otherwise specifically provided by the Plan, Restricted Shares may not be sold, assigned, transferred, pledged, or otherwise encumbered or disposed of, and if the Participant ceases to be an employee or a Non-Employee Trustee of any of the Trust or its Subsidiary Entities or any reason, shall be forfeited to the Trust. These restrictions will lapse at such time or times, and on such conditions, as the Committee may specify in the Award Agreement. Upon the lapse of all restrictions, the Shares will cease to be Restricted Shares for purposes of the Plan. The Committee may at any time accelerate the time at which the restrictions on all or any part of the Shares will lapse.

(c)Annual Grant to Non-Employee Trustees. As of the first business day following each Annual Meeting of Shareholders of the Trust (or, if the Shares do not trade on such business day, then as of the first trading day thereafter), such number of Restricted Shares as determined by the Board in its sole discretion shall be issued automatically for no consideration to each Non-Employee Trustee then in service with the Trust. The automatic grant of Restricted Shares to each Non-Employee Trustee pursuant to the preceding sentence shall be referred to herein as the “Annual Grant.” Restrictions with respect to Restricted Shares underlying Annual Grants will generally lapse on May 15th of each year following the applicable grant date (or, if such May 15th is not a trading day, the trading day next preceding such May 15th); provided, that such restrictions will immediately lapse in full upon the Participant’s death or Disability or upon the occurrence of a Change in Control. If, as of the grant date of any Annual Grant, the number of Shares available for issuance under the Plan is insufficient to make all the Annual Grants then due to be issued pursuant to this Section 7.3(c), no Annual Grants will then be made and the operation of this Section 7.3(c) will then be automatically suspended.
 
(d)Rights as a Shareholder. Unless the Committee determines otherwise, a Participant who receives Restricted Shares shall have certain rights of a shareholder with respect to the Restricted Shares, including voting and dividend rights, subject to the restrictions described in subsection (b) above and any other conditions imposed by the Committee at the time of grant. Unless the Committee determines otherwise, certificates evidencing Restricted Shares will remain in the possession of the Trust until such Shares are free of all restrictions under the Plan.

(e)Notice of Tax Election. Any Participant making an election under section 83(b) of the Code for the immediate recognition of income attributable to an Award of Restricted Shares must 

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(f)provide a copy thereof to the Trust within 10 days of the filing of such election with the Internal Revenue Service. 

7.4Performance Shares; Performance Goals.
 
(a)Grant. The Committee may grant Performance Shares to any Key Employee or Non-Employee Trustee, conditioned upon the meeting of designated Performance Goals. The Committee shall determine the number of Performance Shares to be granted.  Performance Shares may be granted in the form of RSUs.

(b)Performance Period and Performance Goals. When Performance Shares or RSUs are granted, the Committee shall establish the performance period during which performance shall be measured, the Performance Goals, and such other conditions of the Award as the Committee deems appropriate. 

(c)Delivery of Performance Shares and RSUs. At the end of each performance period, the Committee shall determine to what extent the Performance Goals and other conditions of the Award have been met and the number of Shares, if any, to be delivered with respect to the Award. Any Shares awarded pursuant to RSUs shall be delivered no later than the end of the Short-Term Deferral Period, except to the extent such delivery is deferred pursuant to a deferral arrangement that complies with the requirements of Section 409A of the Code and the final regulations issued thereunder or any amendment thereof or successor thereto. 

(d)Dividend Equivalents. Any grant of Performance Shares or RSUs may provide for the payment to the Participant of DERs thereon in cash or additional Shares, provided, however, that the Award Agreement shall provide that the Participant shall not receive any DERs unless and until such time as the Performance Shares or RSUs are earned and paid, and provided further that if the payment or crediting of DERs is in respect of an Award that is subject to Code Section 409A, then the payment or crediting of such DERs shall conform to the requirement of Code Section 409A and such requirements shall be specified in writing.

7.5Contract Shares.
 
(a)Grant. The Committee may grant Contract Shares to any Key Employee or Non-Employee Trustee, conditioned upon the Participant’s continued provision of services to the Trust or one of its Subsidiary Entities through the date(s) specified in the Award Agreement. The Committee shall determine the number of Contract Shares to be granted.
 
(b)Contract Dates. When Contract Shares are granted, the Committee shall establish the Contract Date(s) on which the Contract Shares shall be delivered to the Participant, provided the Participant is still providing services to the Trust or one of its Subsidiary Entities on such date(s).
 
(c) Delivery of Contract Shares. If the Participant is still providing services to the Trust or to one or more of its Subsidiary Entities as of the Contract Date(s), the Committee shall cause the Contract Shares to be delivered to the Participant in accordance with the terms of the Award Agreement.
 
7.6Bonus Shares. The Committee may grant Bonus Shares to any Key Employee or Non-Employee Trustee as a bonus to the Key Employee or Non-Employee Trustee for services to the Trust or to one or more of its Subsidiary Entries. The Committee shall determine the number of Bonus Shares to be granted.
 
7.7Dividend Equivalent Rights. The Committee may provide for payment to a Key Employee or Non-Employee Trustee of DERs, either currently or in the future, or for the investment of such DERs on behalf of the Participant; however, any DERs relating to awards that vest based on the achievement of one or more Performance Goals will only be earned to the extent such Performance Goals are met.
7.8Holding Period. As a condition to the Grant of an Award to the Trust’s Chief Executive Officer or to any other executive officer holding the title of Executive Vice President or Senior Vice President, such individual shall hold such Award for a minimum period of one year following (i) in the case of an Award of Options 

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or SARs, the date of exercise of such Awards, and (ii) in the case of an Award of Restricted Shares, Performance Shares or RSUs, the date on which such Award vests.
8.Events Affecting Outstanding Awards. 

8.1Termination of Service (Other Than by Death or Disability). If a Participant ceases to be an employee or trustee of any of the Trust and its Subsidiary Entities for any reason other than death or Disability, the following shall apply: 

(a)Except as otherwise stated in the Award Agreement, all Options and SARs held by the Participant that were not exercisable immediately prior to the Participant’s termination of service shall terminate at that time. Any Options or SARs that were exercisable immediately prior to the termination of service will continue to be exercisable for three months (or for such longer period as the Award Agreement states), and shall thereupon terminate, unless the Award Agreement provides by its terms for immediate termination or for termination in less than three months in the event of termination of service in specific circumstances. In no event, however, shall an Option or SAR remain exercisable beyond the latest date on which it could have been exercised without regard to this Section. For purposes of this subsection (a), a termination of service shall not be deemed to have resulted by reason of a sick leave or other bona fide leave of absence approved for purposes of the Plan by the Committee.
 
(b)Except as otherwise stated in the Award Agreement, all Restricted Shares held by the Participant at the time of termination of service must be transferred to the Trust (and, in the event the certificates representing such Restricted Shares are held by the Trust, such Restricted Shares shall be so transferred without any further action by the Participant), in accordance with Section 7.3. 

(c)Except as otherwise stated in the Award Agreement, all Performance Shares, RSUs, Contract Shares and DERs to which the Participant was not irrevocably entitled prior to the termination of service shall be forfeited and the Award canceled as of the date of such termination of service.
 
8.2Death or Disability. If a Participant dies or terminates his or her services on account of a Disability, the following shall apply:
 
(a)Except as otherwise stated in the Award Agreement, all Options and SARs held by a Participant that were not exercisable immediately prior to the Participant’s death or termination of service on account of Disability shall terminate at the date of death or termination of service on account of Disability. Any Options or SARs that were exercisable immediately prior to death or termination of service on account of Disability, as the case may be, will continue to be exercisable by the Participant or by the Participant’s legal representative (in the case of Disability), or by the Participant’s executor or administrator or by the person or persons to whom the Option or SAR is transferred by will or the laws of descent and distribution (in the case of death), for the one-year period ending with the first anniversary of the Participant’s death or termination of service on account of Disability (or for such shorter or longer period as may be provided in the Award Agreement), and shall thereupon terminate. In no event, however, shall an Option or SAR remain exercisable beyond the latest date on which it could have been exercised without regard to this Section.
 
(b)Except as otherwise stated in the Award Agreement, all Restricted Shares held by the Participant at the date of death or termination of service on account of Disability, as the case may be, must be transferred to the Trust (and, in the event the certificates representing such Restricted Shares are held by the Trust, such Restricted Shares shall be so transferred without any further action by the Participant), in accordance with Section 7.3.
 
(c)Except as otherwise stated in the Award Agreement, all Performance Shares, RSUs, Contract Shares and DERs to which the Participant was not irrevocably entitled prior to death or termination of service on account of Disability, as the case may be, shall be forfeited and the Award canceled as of the date of death or termination of service on account of Disability. 

8.3Capital Adjustments. The maximum number of Shares that may be delivered under the Plan, the maximum number of SARs not in tandem with Options, the maximum number of DERs payable in 

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notional Shares that may be granted, and the maximum number of Shares with respect to which Options or SARs may be granted to any Key Employee under the Plan, all as stated in Section 5, and the number of Shares issuable upon the exercise or vesting of outstanding Awards under the Plan (as well as the exercise price per Share under outstanding Options) shall be proportionately adjusted, as may be deemed appropriate by the Committee, to reflect any increase or decrease in the number of issued Shares resulting from a subdivision (share-split), consolidation (reverse split), share dividend, or similar change in the capitalization of the Trust. No adjustment under this Section shall be made (i) to an outstanding ISO if such adjustment would constitute a modification under section 424(h) of the Code, unless the Participant consents to such adjustment, and (ii) to an outstanding NQSO or SAR if such adjustment would constitute a modification under Treas. Reg. §1.409A-1(b)(5)(v) or any amendment thereof or successor thereto unless the Participant consents to such adjustment. 
8.4Certain Corporate Transactions.
 
(a)In the event of a Change of Control, each outstanding Award shall be assumed by the surviving or successor entity; provided, however, that in the event of a proposed Change of Control, the Committee may terminate all or a portion of any outstanding Award, effective upon the consummation of the Change of Control, if it determines that such termination is in the best interests of the Trust. If the Committee decides to terminate outstanding Options or SARs, the Committee shall give each Participant holding an Option or SAR to be terminated not less than seven days’ notice prior to any such termination, and any Option or SAR that is to be so terminated may be exercised (if and only to the extent that it is then exercisable) up to, and including the date immediately preceding such termination. Further, the Committee, in its discretion, may (i) accelerate, in whole or in part, the date on which any or all Options and SARs become exercisable, (ii) remove the restrictions from the outstanding Restricted Shares, (iii) cause the delivery of any Performance Shares, even if the associated Performance Goals have not been met, (iv) cause the delivery of any Contract Shares, even if the Contract Date(s) have not been reached, and/or (v) cause the payment of any DERs. The Committee also may, in its discretion, change the terms of any outstanding Award to reflect any such Change of Control; provided that, (i) in the case of ISOs, such change would not constitute a “modification” under section 424(h) of the Code unless the Participant consents to the change, and (ii) in the case of NQSOs and SARs, such change would not constitute a modification under Treas. Reg. §1.409A-1(b)(5)(v) or any amendment thereof or successor thereto unless the Participant consents to the change.
 
(b)In lieu of the action described in subsection (a) above, the Committee may, in its discretion, arrange to have the surviving or acquiring entity or affiliate grant to each Participant a replacement or substitute award which, in the judgment of the Committee, is substantially equivalent to the Award.

9.Suspension, Amendment or Termination of the Plan.
 
(a)In General. The Board, pursuant to a written resolution, may from time to time suspend or terminate the Plan or amend the Plan and any outstanding Award Agreement evidencing Annual Grants, and, except as provided in Sections 3(b)(4), 7.1(a), 7.1(e), 7.1(g), 7.2(e) and 8.4(a), the Committee may amend any outstanding Awards (other than Awards of Annual Grants) in any respect whatsoever; except that, without the approval of the shareholders (given in the manner set forth in subsection (b) below)- 

(1)no amendment may be made that would- 

(A)change the class of employees eligible to participate in the Plan with respect to ISOs;

(B)except as permitted under Section 8.3, increase the maximum number of Shares with respect to which ISOs may be granted under the Plan; or 
(C)extend the duration of the Plan under Section 4(b) with respect to any ISOs granted hereunder; and

(2)no amendment may be made that would require shareholder approval under the applicable rules of the New York Stock Exchange or as required under any other applicable law, rule or regulation. 

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Notwithstanding the foregoing, no such suspension, termination, or amendment shall materially impair the rights of any Participant holding an outstanding Award without the consent of such Participant. 
(b)Manner of Shareholder Approval. The approval of shareholders must be effected by a majority of the votes cast (including abstentions, to the extent abstentions are counted as voting under applicable state law), in a separate vote at a duly held shareholders’ meeting at which a quorum representing a majority of all outstanding voting Shares is, either in person or by proxy, present and voting on the Plan. 

10.Miscellaneous. 

10.1Documentation of Awards. Awards shall be evidenced by such written Award Agreements as may be prescribed by the Committee from time to time. Such instruments may be in the form of agreements to be executed by both the Participant and the Trust, or certificates, letters, or similar instruments, which need not be executed by the Participant but acceptance of which by the Participant will evidence agreement by the Participant to the terms thereof.
 
10.2Rights as a Shareholder. Except as specifically provided by the Plan or an Award Agreement, the receipt of an Award shall not give a Participant rights as a shareholder; instead, the Participant shall obtain such rights, subject to any limitations imposed by the Plan or the Award Agreement, upon the actual receipt of Shares.
 
10.3Conditions on Delivery of Shares. The Trust shall not deliver any Shares pursuant to the Plan or remove restrictions from Shares previously delivered under the Plan (i) until all conditions of the Award have been satisfied or removed, (ii) until all applicable Federal and state laws and regulations have been complied with, and (iii) if the outstanding Shares are at the time of such delivery listed on any stock exchange, until the Shares to be delivered have been listed or authorized to be listed on such exchange. If an Award is exercised by the Participant’s legal representative, the Trust will be under no obligation to deliver Shares pursuant to such exercise until the Trust is satisfied as to the authority of such representative. 

10.4Registration and Listing of Shares. If the Trust shall deem it necessary to register under the Securities Act or any other applicable statute any Shares purchased or otherwise delivered under this Plan, or to qualify any such Shares for an exemption from any such statutes, the Trust shall take such action at its own expense. Purchases and grants of Shares hereunder shall be postponed as necessary pending any such action.
 
10.5Compliance with Rule 16b-3. All elections and transactions under this Plan by persons subject to Rule 16b-3, promulgated under section 16(b) of the Exchange Act, or any successor to such Rule, are intended to comply with at least one of the exemptive conditions under such Rule. The Committee shall establish such administrative guidelines to facilitate compliance with at least one such exemptive condition under Rule 16b-3 as the Committee may deem necessary or appropriate.
 
10.6Tax Withholding.
 
(a)Obligation to Withhold. The Trust shall withhold from any cash payment made pursuant to an Award an amount sufficient to satisfy all Federal, state, and local withholding tax requirements (the “withholding requirements”). In the case of an Award pursuant to which Shares may be delivered, the Committee may require that the Participant or other appropriate person remit to the Trust an amount sufficient to satisfy the withholding requirements, or make other arrangements satisfactory to the Committee with regard to such requirements, prior to the delivery of any Shares. 

(b)Election to Withhold Shares. The Committee, in its discretion, may permit or require the Participant to satisfy the withholding requirements, in whole or in part, by electing to have the Trust withhold Shares (or by returning previously acquired Shares to the Trust); provided, however, that the Trust may limit the number of Shares withheld to satisfy the tax withholding requirements to the extent necessary to avoid adverse accounting consequences. Shares shall be valued, for purposes of this subsection (b), at their Fair Market Value (determined as of the date an amount is includible in income by 

12

the Participant (the “Determination Date”), rather than the date of grant). The Committee shall adopt such withholding rules as it deems necessary to carry out the provisions of this Section. 

10.7Transferability of Awards. No ISO may be transferred other than by will or by the laws of descent and distribution. No other Award may be transferred, except to the extent permitted in the applicable Award Agreement, which may be only for no consideration, or by will or the laws of descent and distribution. During a Participant’s lifetime, an Award requiring exercise may be exercised only by the Participant (or in the event of the Participant’s incapacity, by the person or persons legally appointed to act on the Participant’s behalf). 

10.8Registration. If the Participant is married at the time Shares are delivered and if the Participant so requests at such time, the certificate or certificates for such Shares shall be registered in the name of the Participant and the Participant’s spouse, jointly, with right of survivorship. 

10.9Acquisitions. Notwithstanding any other provision of this Plan, Awards may be granted hereunder in substitution for awards held by directors, trustees and key employees of another entity that engages in a merger, consolidation, acquisition of assets, or similar transaction with the Trust or a Related Corporation, provided the terms of the substitute Awards so granted conform to the terms set forth in this Plan (except that the exercise price of any substituted Option-whether an ISO or an NQSO-may be adjusted according to the provisions of section 424(a) of the Code, if the grant of such substituted Option is pursuant to a transaction described in such section of the Code). 

10.10Clawback. Notwithstanding any other provisions in the Plan, any Award which is subject to recoupment or clawback under any law, government regulations or stock exchange listing requirement, will be subject to such recoupment and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).

10.11Employment Rights. Neither the adoption of the Plan nor the grant of Awards will confer on any person any right to continued employment by the Trust or any of its Subsidiary Entities or affect in any way the right of any of the foregoing to terminate an employment relationship at any time. 

10.12Indemnification of Board and Committee. Without limiting any other rights of indemnification that they may have from the Trust or any of its Subsidiary Entities, the members of the Board and the members of the Committee shall be indemnified by the Trust against all costs and expenses reasonably incurred by them in connection with any claim, action, suit, or proceeding to which they or any of them may be a party by reason of any action taken or failure to act under, or in connection with, the Plan or any Award granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by legal counsel selected by the Trust) or paid by them in satisfaction of a judgment in any such  action, suit, or proceeding, except a judgment based upon a finding of willful misconduct or recklessness on their part. Upon the making or institution of any such claim, action, suit, or proceeding, the Board or Committee member shall notify the Trust in writing, giving the Trust an opportunity, at its own expense, to handle and defend the same before such Board or Committee member undertakes to handle it on his or her own behalf. The provisions of this Section shall not give members of the Board or the Committee greater rights than they would have under the Trust’s by-laws or Pennsylvania law. 

10.13Application of Funds. Any cash proceeds received by the Trust from the sale of Shares pursuant to Awards granted under the Plan shall be added to the general funds of the Trust. Any Shares received in payment for additional Shares upon exercise of an Option shall become treasury shares. 

10.14Governing Law. The Plan shall be governed by the applicable Code provisions to the maximum extent possible. Otherwise, the laws of the Commonwealth of Pennsylvania (without reference to the principles of conflict of laws) shall govern the operation of, and the rights of Key Employees or Non-Employee Trustees under, the Plan and Awards granted hereunder. 

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