Document:

PURCHASE
AND SALE AGREEMENT

 

by
and between

 

HEMISPHERX
BIOPHARMA, INC.,

a
Delaware corporation

 

as
Seller

 

and

 

CAPITAL
REALTY & INVESTMENT CO., LLC,

a
New Jersey limited liability company

 

as
Purchaser

 

For
the sale and purchase of the following Property:

Block
597.06, Lot 1.01

783
Jersey Lane, New Brunswick, New Jersey

 

Date:
January 8, 2018

 

    	 	 	 

     

    

 

PURCHASE
AND SALE AGREEMENT

 

THIS
PURCHASE AND SALE AGREEMENT (“Agreement”) is made this 8 day of January, 2018, by and between HEMISPHERX
BIOPHARMA, INC., a Delaware corporation (the “Seller”), and CAPITAL REALTY & INVESTMENT CO., LLC,
a New Jersey limited liability company (the “Purchaser”).

 

WITNESSETH:

 

In
consideration of the mutual covenants and agreements set forth herein the parties hereto do hereby agree as follows:

 

ARTICLE
I.  SALE AND LEASEBACK OF PROPERTY

 

Seller
agrees to sell, transfer and assign and Purchaser agrees to purchase, accept and assume, subject to the terms and conditions stated
herein, all of Seller’s right, title and interest in and to the following (herein collectively called the “Property”):

 

	1.1	Real
    Property. Those certain parcels of real estate located in New Jersey and described in Exhibit A attached
    hereto and incorporated herein by this reference, together with all buildings, improvements and fixtures located thereon and
    all rights, privileges and appurtenances pertaining thereto, including all of Seller’s right, title and interest in
    and to all rights-of-way, open or proposed streets, alleys, easements, strips or gores of land adjacent thereto (herein collectively
    called the “Real Property”); and
	 	 
	1.2	Personal
    Property. All furniture, personal property, machinery, apparatus, and equipment currently used in the operation, repair
    and maintenance of the Land and Improvements and situated thereon, listed on the inventory attached hereto as Exhibit
    B-1 (herein collectively called the “Personal Property”). The Personal Property to be conveyed
    is subject to depletions, replacements and additions in the ordinary course of Seller’s business; and 
	 	 
	1.3	Other
    Property Rights. If and to the extent assignable by Seller, (i) all service, supply, maintenance and utility agreements
    described in Exhibit B-2 attached hereto and incorporated herein by this reference (all of the foregoing being
    herein collectively called the “Contracts”), and (ii) to the extent that the same have been obtained by
    Seller prior to the Closing (as defined in Section 5.1), any licenses, permits, guaranties, warranties, and other written
    authorizations necessary for the use, operation or ownership of the Real Property or Personal Property (the rights and interests
    of Seller described in clauses (a) through (b) hereinabove being herein collectively called the “Other Property Rights”).
	 	 
	1.4	Leaseback
    of Property. At the Closing (as defined herein), Purchaser shall lease back the Property to Seller, and Seller shall lease
    the Property from Purchaser, pursuant to the terms and conditions of the Seller Lease (as defined herein).

 

    	 	-1-	 

     

    

 

ARTICLE
II.  PURCHASE PRICE

 

	2.1	The
    total purchase price to be paid by Purchaser for the purchase of the Property is FOUR MILLION AND 00/100 DOLLARS ($4,000,000)
    (the “Purchase Price”). The Purchase Price, subject to the adjustments set forth in ARTICLE IV or as otherwise
    provided under this Agreement, plus any other amounts required to be paid by Purchaser at Closing, shall be paid to Seller
    by Purchaser on the Closing Date in immediately available funds by wire transfer as more particularly set forth in Section
    5.2.
	 	 
	2.2	Issuance
    of Warrants. On the Closing Date, Seller shall issue Purchaser Common Stock Purchase Warrants for the purchase of shares
    of Seller’s common stock (the “Warrants”), in accordance with the following terms and conditions:

 

	 	(a)	The
    Warrants shall be exercisable for an aggregate of 3,225,806 shares of the Seller’s common stock (representing $1,000,000
    worth of common stock based upon $0.31 (the “Warrant Price”), the per share closing price of Seller’s
    common stock on the NYSE American on November 22, 2017, the date that the letter of intent setting forth the terms of this
    Agreement was executed);
	 	 	 
	 	(b)	The
    per share exercise price for such Warrants shall be $0.3875, one hundred twenty-five percent (125%) of the Warrant Price (the
    “Warrant Exercise Price”);
	 	 	 
	 	(c)	The
    Warrants shall be exercisable at the Warrant Exercise Price for a period of five (5) years from the date of issuance of the
    Warrants (the “Warrant Exercise Period”); and
	 	 	 
	 	(d)	The
    Warrants shall not be exercisable at any given time during the Warrant Exercise Period, to the extent that, following such
    exercise, the Purchaser along with its affiliates would beneficially own in excess of four and ninety-nine one-hundredths
    percent (4.99%) of the issued and outstanding shares of Seller’s common stock.

 

	2.3	The
    date both parties have received a fully executed Agreement shall be the “Effective Date”.

 

ARTICLE
III. TITLE MATTERS

 

	3.1	Title
    to the Property. At Closing, Seller shall convey to Purchaser by bargain and sale deed, with covenants against grantor’s
    acts (the “Deed”), fee simple title to the Property, insurable at regular rates by a title insurance company
    licensed to do business in the State of New Jersey, subject to the following liens, easements, restrictions, conditions or
    other encumbrances (hereinafter referred to as the “Permitted Encumbrances”):

 

	 	(a)	Such
    liens, easements, restrictions, conditions or other encumbrances as are listed in Exhibit C attached hereto
    and incorporated herein by this reference;
	 	 	 
	 	(b)	General
    real estate taxes for the year of Closing which are not yet due and payable;

 

    	 	-2-	 

     

    

 

	 	(c)	Liens
    for municipal betterments which are assessed after the Effective Date and due after Closing;
	 	 	 
	 	(d)	Zoning
    regulations and municipal building restrictions, and all other laws, ordinances, regulations and restrictions of any duly
    constituted public authority enacted prior to the Closing Date provided the current use of the Property complies with same;
	 	 	 
	 	(e)	Such
    state of facts as an accurate survey or a physical inspection of the Property may disclose provided such facts do not render
    title unmarketable;
	 	 	 
	 	(f)	Other
    covenants, easements and restrictions which do not materially and adversely affect the use of the Property as permitted by
    zoning and related ordinances and laws on the date hereof, as well as grants to utility and/or power companies, the rights
    of the public in sidewalks and abutting public rights-of-way, and easements given to the public for water course maintenance,
    slope rights or sight rights;
	 	 	 
	 	(g)	Standard
    exceptions set forth in the form of title insurance policy of the title insurance company selected by Purchaser; and
	 	 	 
	 	(h)	Any
    other matter which would constitute a Title Objection (as defined in Section 3.2) that Purchaser waives, or is deemed to have
    waived, pursuant to the following subsections.

 

	3.2	Title
    Objections. Purchaser covenants and agrees to promptly obtain a commitment for title insurance (the “Commitment”)
    from a reputable title insurance company authorized to do business in the State of New Jersey, and shall deliver a copy of
    the Commitment to Seller within fifteen (15) days of the Purchaser’s receipt thereof. In the event the title company
    selected by Purchaser to insure its interest in the Property shall report to Purchaser any objection to title other than the
    Permitted Encumbrances which is unacceptable to Purchaser (a “Title Objection”), Purchaser shall notify
    Seller of any such Title Objection prior to the expiration of the Due Diligence Period. Furthermore, if any update to the
    Commitment discloses any new encumbrances which do not constitute Permitted Encumbrances, any objection thereto by Purchaser
    must be delivered to Seller within five (5) business days after the Purchaser’s receipt of the updated Commitment or
    the expiration of the Due Diligence Period, whichever is later. 
	 	 
	3.3	Curing
    Title Objections. If Purchaser notifies Seller, as herein provided, of a Title Objection, Seller shall elect, upon delivery
    of written notice to Purchaser within ten (10) days after receipt of notification from Purchaser of a Title Objection, whether
    to cure such Title Objection. Seller shall have the right, at its sole election, to adjourn the Closing Date one or more times,
    for a period or periods not in excess of sixty (60) days in the aggregate, to enable Seller to convey title to the Property
    without such Title Objection. If Seller does not so elect to cure such Title Objection, or if having elected to cure such
    Title Objection Seller is unable to convey title subject to and in accordance with the provisions of this Agreement, Purchaser
    may either (i) terminate this Agreement by written notice to the Seller on or after the latter of the Closing Date or any
    adjournment by Seller, in which event this Agreement shall become void and of no further effect, and thereupon neither party
    shall have any further obligations of any nature to the other hereunder or by reason hereof, or (ii) upon notice to Seller,
    accept such title as Seller can convey without reduction of the Purchase Price or any credit or allowance on account thereof.

 

    	 	-3-	 

     

    

 

	3.4	Satisfaction
    of Liens at Closing. If at the Closing Date there may be any liens or mortgages which Seller has agreed to discharge,
    Seller shall use all or any portion of the Purchase Price payable at the Closing to satisfy the same.

 

ARTICLE
IV. ADJUSTMENTS AND PRORATIONS

 

The
following adjustments and prorations shall be made at Closing:

 

	4.1	Taxes.
    In connection with the Closing, the parties shall not adjust or prorate property taxes, water and/or sewer charges, since
    all such expenses and charges will continue to be the obligations of Seller (or its designated affiliate) after the Closing
    pursuant to the Seller Lease.
	 	 
	4.2	Other
    Property Operating Expenses. In connection with the Closing, the parties shall not adjust or prorate all utility charges
    and other operating expenses attributable to the Property since all such expenses and charges will continue to be the obligations
    of Seller (or its designated affiliate) after the Closing pursuant to the Seller Lease.
	 	 
	4.3	[INTENTIONALLY
    OMITTED]
	 	 
	4.4	Closing
    Costs. Seller shall pay the New Jersey realty transfer fee or permit a credit therefor against the Purchase Price, as
    well as fifty percent (50%) of any applicable “mansion” tax, or other transfer tax specifically imposed on grantees
    under N.J.S.A. 46:15-7.2, et. seq., if any, applicable to the Property (with the remaining fifty percent (50%) being the responsibility
    of Purchaser), and any recording fees associated with any discharge documents relating to mortgages and/or liens that Seller
    is a satisfying pursuant to the terms hereof. Except as expressly provided to the contrary in this Agreement, Purchaser shall
    pay all costs and expenses associated with the costs and expenses incurred by Purchaser in connection with the transaction
    contemplated by this Agreement (the “Transaction”), including, without limitation, all costs and expenses
    for its survey and title policy. Notwithstanding the foregoing, Seller shall reimburse Purchaser for fifty percent (50%) of
    (i) Purchaser’s portion of title insurance service fees and premiums, and (ii) Purchaser’s legal expenses directly
    incurred in connection with the Transaction. The obligations of the parties under this Section 4.4 shall survive the Closing
    (and not be merged therein) or any earlier termination of this Agreement.
	 	 
	4.5	[INTENTIONALLY
    OMITTED]
	 	 
	4.6	[INTENTIONALLY
    OMITTED]

 

    	 	-4-	 

     

    

 

ARTICLE
V.  CLOSING

 

Purchaser
and Seller hereby agree that the Transaction shall be consummated as follows:

 

	5.1	Closing
    Date. Subject to Purchaser’s right to extend the Closing as provided in this Agreement, the Transaction shall close
    (the “Closing”) within thirty (30) days from the expiration of the Due Diligence Period (the “Closing
    Date”), or such earlier date as the parties may mutually agree. Purchaser and Seller shall conduct a “pre-closing”
    at 10:00 a.m. Eastern Time on the last business day prior to the Closing Date at the offices of Seller’s attorney in
    Newark, New Jersey, or in escrow “by mail,” with title transfer and payment of the Purchase Price to be completed
    on the Closing Date as set forth in Section 5.2. Time is of the essence with respect to the Closing Date.
	 	 
	5.2	Title
    Transfer and Payment of Purchase Price. Provided all conditions precedent to Seller’s obligations hereunder have
    been satisfied, Seller agrees to convey title to the Real Property to Purchaser upon confirmation of receipt of the Purchase
    Price as set forth below. Provided all conditions precedent to Purchaser’s obligations hereunder have been satisfied,
    Purchaser agrees to pay the amount specified in Section 2.1 by timely delivering, or causing to be delivered, the same to
    Seller no later than 1:00 p.m. Eastern Time on the Closing Date. 
	 	 
	5.3	Seller’s
    Closing Deliveries. At the Closing, Seller shall deliver or cause to be delivered the following:

 

	 	(a)	Deed.
    The Deed in the form of Exhibit D attached hereto and incorporated herein by this reference duly executed by
    Seller.
	 	 	 
	 	(b)	Bill
    of Sale. A bill of sale in the form of Exhibit E attached hereto and incorporated herein by this reference
    (the “Bill of Sale”) duly executed by Seller.
	 	 	 
	 	(c)	Seller
    Lease. A lease in the form of Exhibit F attached hereto and incorporated herein by this reference (the “Seller
    Lease”) duly executed by Seller;
	 	 	 
	 	(d)	Assignment
    of Contracts. An assignment and assumption of the Contracts and the Other Property Rights (to the extent the same are
    not transferred by the Deed or Bill of Sale) in the form of Exhibit G attached hereto and incorporated herein
    by this reference (the “Assignment of Contracts”) duly executed by Seller.
	 	 	 
	 	(e)	Non-Foreign
    Status Affidavit. A non-foreign status affidavit in the form of Exhibit H attached hereto and incorporated
    herein by this reference, as required by Section 1445 of the Internal Revenue Code duly executed by Seller.
	 	 	 
	 	(f)	Evidence
    of Authority. Documentation to establish to Purchaser’s reasonable satisfaction the due authorization of Seller’s
    sale of the Property and Seller’s delivery of the documents required to be delivered by Seller pursuant to this Agreement.

 

    	 	-5-	 

     

    

 

	 	(g)	Other
    Documents. A “Seller’s Affidavit of Title”, in standard form, and such other documents as may
    be reasonably required by the Purchaser’s title company or as may be agreed upon by Seller and Purchaser to consummate
    the Transaction duly executed by Seller.
	 	 	 
	 	(h)	Property
    Documents. (i) To the extent in the possession of Seller or the current manager of the Property and not required to be
    retained by Seller in accordance with their operations at the Property under the Seller Lease, (A) the original (or, if unavailable,
    a copy) of the existing certificate or certificates of occupancy for the Property, and (B) all original (or, if unavailable,
    copies of) certificates, licenses, permits, authorizations and approvals issued for or with respect to the Property by governmental
    and quasi-governmental authorities having jurisdiction; and (ii) all non-proprietary, non-confidential books and records located
    at the Property or at the office of Seller’s building manager relating to the Property and the ownership and operation
    thereof (the items described in clauses (i) and (ii) being herein collectively called the “Property Documents”).
	 	 	 
	 	(i)	Keys
    and Original Documents. Keys to all locks on the Real Property in Seller’s or Seller’s building manager’s
    possession and originals or, if originals are not available, copies, of the Contracts and the Leases.
	 	 	 
	 	(j)	ISRA.
    Evidence that Seller has submitted a Remediation Certification and, if required, a Remediation Funding Source, to the NJDEP
    or has achieved Compliance with ISRA as set forth in Section 9.4A hereof.
	 	 	 
	 	(k)	Cancellation
    of Contracts. Copies of any notices to services providers canceling any contracts which are not to be assumed pursuant
    to the terms of this Agreement.
	 	 	 
	 	(l)	Closing
    Statement. A counterpart of the closing statement.
	 	 	 
	 	(m)	Certification
    of Seller’s Representations. A certificate hereto updating the representations of Seller.
	 	 	 
	 	(n)	Warrant
    Documentation. Documentation reasonably evidencing the issuance of the Warrants to become effective on the Closing Date.

 

	 	The
    items to be delivered by Seller in accordance with the terms of Subsections (a) through (g) and (k) through (m) of this Section
    5.3 shall be delivered to the Escrow Holder no later than 5:00 p.m. Eastern Time on the last business day prior to the Closing
    Date and the items to be delivered by Seller in accordance with the terms of Subsections (h) through (i) of this Section 5.3
    shall be delivered outside of escrow and shall be deemed delivered if the same are located at the Property on the Closing
    Date.
	 	 
	5.4	Purchaser’s
    Closing Deliveries. At the Closing, Purchaser shall deliver or cause to be delivered to the following:

 

    	 	-6-	 

     

    

 

	 	(a)	Purchase
    Price. The Purchase Price, as adjusted for apportionments and other adjustments required under this Agreement, plus any
    other amounts required to be paid by Purchaser at Closing.
	 	 	 
	 	(b)	Bill
    of Sale. The Bill of Sale acknowledged by Purchaser.
	 	 	 
	 	(c)	Assignment
    of Contracts. The Assignment of Contracts executed and acknowledged by Purchaser.
	 	 	 
	 	(d)	Seller
    Lease. The Seller Lease duly executed by Purchaser.
	 	 	 
	 	(e)	Evidence
    of Authority. Documentation to establish to Seller’s reasonable satisfaction the due authorization of Purchaser’s
    acquisition of the Property and Purchaser’s delivery of the documents required to be delivered by Purchaser pursuant
    to this Agreement (including, but not limited to, the organizational documents of Purchaser, as they may have been amended
    from time to time, resolutions of Purchaser and incumbency certificates of Purchaser).
	 	 	 
	 	(f)	Other
    Documents. Such other documents as may be reasonably required by the Title Company or may be agreed upon by Seller and
    Purchaser to consummate the Transaction.
	 	 	 
	 	(g)	Closing
    Statement. A counterpart of the closing statement.
	 	 	 
	 	(h)	Certification
    of Purchaser’s Representations. A certificate hereto updating the representations of Purchaser.

 

The
Purchase Price shall be paid in accordance with the terms of Section 5.2 hereof and the items to be delivered by Purchaser in
accordance with the terms of Subsections (b) through (e) and (g) of this Section 5.4 shall be delivered to the Escrow Holder no
later than 5:00 p.m. Eastern Time on the last business day prior to the Closing Date.

 

ARTICLE
VI. CONDITIONS TO CLOSING

 

	6.1	Seller’s
    Obligations. Seller’s obligation to close the Transaction is conditioned on all of the following, any or all of
    which may be waived by Seller by an express written waiver, at its sole option:

 

	 	(a)	Representations
    True. All representations and warranties made by Purchaser in this Agreement shall be true and correct in all material
    respects on and as of the Closing Date, as if made on and as of such date except to the extent they expressly relate to an
    earlier date;

 

    	 	-7-	 

     

    

 

	 	(b)	Purchaser’s
    Financial Condition. No petition has been filed by or against Purchaser under the Federal Bankruptcy Code or any similar
    state or federal Law, whether now or hereafter existing; and
	 	 	 
	 	(c)	Purchaser’s
    Deliveries Complete. Purchaser shall have delivered the funds required hereunder and all of the documents to be executed
    by Purchaser set forth in Section 5.4 and shall have performed all other covenants, undertakings and obligations, and complied
    with all conditions required by this Agreement, to be performed or complied with by Purchaser at or prior to the Closing.

 

	6.2	Purchaser’s
    Obligations. Purchaser’s obligation to close the Transaction is conditioned on all of the following, any or all
    of which may be expressly waived by Purchaser in writing, at its sole option:

 

	 	(a)	Representations
    True. Subject to the provisions of Section 15.3, all representations and warranties made by Seller in this Agreement,
    as the same may be amended as provided in Section 15.3, shall be true and correct in all material respects on and as of the
    Closing Date, as if made on and as of such date except to the extent that they expressly relate to an earlier date;
	 	 	 
	 	(b)	Title
    Conditions Satisfied. At the time of the Closing, title to the Property shall be as provided in Section 3.1 of this Agreement;
    and
	 	 	 
	 	(c)	Seller’s
    Deliveries Complete. Seller shall have delivered all of the documents and other items required pursuant to Section 5.3
    and shall have performed all other covenants, undertakings and obligations, and complied with all conditions required by this
    Agreement, to be performed or complied with by Seller at or prior to the Closing.

 

	6.3	Waiver
    of Failure of Conditions Precedent. At any time or times on or before the date specified for the satisfaction of any condition,
    Seller or Purchaser may elect in writing to waive the benefit of any such condition set forth in Section 6.1 or Section 6.2,
    respectively. By Closing the Transaction, Seller and Purchaser shall be conclusively deemed to have waived the benefit of
    any remaining unfulfilled conditions set forth in Sections 6.1 or 6.2 respectively.

 

ARTICLE
VII.  RISK OF LOSS

 

	7.1	The
    risk of loss or damage to the Property by fire or otherwise until the delivery of the Deed is assumed by Seller. In case the
    Property shall suffer injury by fire or other casualty, this Agreement shall nevertheless remain in full force and effect,
    without any abatement whatsoever allowed to Purchaser with respect to the Purchase Price. If the cost of repairing or restoring
    such damage exceeds fifteen percent (15%) of the Purchase Price, either party shall have the right to terminate this Agreement
    by delivering written notice of such election to the other party within fifteen (15) days of the date such party receives
    notice of any of such injury or fire. In case the Property shall suffer injury by fire or other casualty and the cost of repairing
    or restoring such damage is equal to or less than fifteen percent (15%) of the Purchase Price, this Agreement shall nevertheless
    remain in full force and effect, without any abatement whatsoever allowed to Purchaser with respect to the Purchase Price.
    In the event of such injury costing equal to or less than fifteen percent (15%) of the Purchase Price to repair or restore
    or in the event that neither party elects to terminate this Agreement as provided above if the cost of repair or restoration
    exceeds fifteen percent (15%) of the Purchase Price, Seller shall have the option to either (i) restore or repair such damage
    by the Closing Date hereunder (such Closing Date to be extended if necessary to accommodate such restoration or repair, which
    extension shall not exceed ninety (90) days), in which event Seller shall be entitled to receive the proceeds payable under
    the insurance policies, or (ii) refrain from repairing any such damage, in which event Purchaser shall accept title in such
    damaged condition, and Seller shall assign and transfer to Purchaser, without recourse or warranty, all of the right, title
    and interest of Seller in and to the insurance proceeds covering such damage or casualty which Seller may be entitled to receive
    thereunder, and the Purchase Price will be reduced by the amount of Seller’s insurance deductibles. 

 

    	 	-8-	 

     

    

 

ARTICLE
VIII.  CONDEMNATION

 

	8.1	If
    between the Effective Date and the Closing Date, all or any portion of the Property whose value exceeds fifteen percent (15%)
    of the Purchase Price is taken by any governmental authority (or notice thereof is given of the intention to take the Property
    or any portion thereof), either party shall have the right to terminate this Agreement by delivering written notice of such
    election to the other party within fifteen (15) days of the date such party receives notice of any of such taking. In the
    event of a termination of this Agreement in accordance with this Section 8.1, this Agreement shall terminate and be null and
    void. If this Agreement is not terminated as aforesaid, at the Closing, Seller shall assign to Purchaser, without recourse,
    all of its right, title and interest in and to the entire award to which it may otherwise be entitled in the condemnation
    proceedings and shall pay to Purchaser at the Closing any portion of the award theretofore received by Seller.

 

ARTICLE
IX. CONDITION OF THE PROPERTY/ENVIRONMENTAL MATTERS

 

	9.1	AS
    IS, WHERE IS, WITH ALL FAULTS. Purchaser acknowledges and agrees that, except as expressly set forth herein, Seller has
    made no representations or warranties, either express or implied, regarding the Property, including, without limitation, its
    condition (including its environmental condition), its past use, or its suitability for Purchaser’s intended use thereof,
    and that Purchaser is acquiring the Property on an “AS IS, WHERE IS” basis. Purchaser acknowledges that it has
    conducted, or by the end of the Due Diligence Period (as defined in Section 10.1) will have conducted such independent inspections,
    investigations and analyses of the Property as it deems necessary or appropriate in acquiring the Property from Seller (including,
    without limitation, any and all matters concerning the condition (including the environmental condition), use, development
    or suitability for development of the Property). Neither Seller nor Seller’s agents has made any express statement,
    representation or warranty accepting past, present, or future liability arising out of or related to the environmental condition
    or value of the Property, nor shall Seller have any liability whatsoever to Purchaser with respect to environmental matters
    of any kind or nature whatsoever respecting the Property, including without limitation the presence of any Hazardous Materials
    at the Property or any Environmental Conditions on, at, under, emanating from or migrating to the Property, or any violation
    of or non-compliance with Environmental Laws (as such terms are defined below). Nothing contained in this section, or elsewhere
    in this Agreement, shall be deemed to modify or limit Seller’s obligations under the Seller Lease. 

 

    	 	-9-	 

     

    

 

	9.2	Certificate
    of Occupancy. In the event a certificate of occupancy, or other inspection certificate, or other governmental approvals
    are required by any federal, state, county, or local governmental authority or agency before the Property may be transferred
    by Seller to Purchaser, Seller, at Seller’s sole expense, shall have the obligation to secure such certificates or approvals,
    and Seller shall be responsible for all costs incidental thereto. Seller agrees to indemnify and hold the Purchaser harmless
    with respect to any such costs or expenses, which indemnification shall include any legal fees, court costs and any liabilities
    of any nature whatsoever arising in connection with the indemnity. Notwithstanding anything contained herein to the contrary,
    if the cost of obtaining any required governmental approvals hereunder exceeds $50,000.00, then Seller shall have the right
    to terminate this Agreement, at which time neither party shall have any further obligation hereunder.
	 	 
	9.3	Definitions.
    For the purposes of this Agreement, the following terms shall have the meanings set forth below:

 

(i)       “Compliance
with ISRA” shall mean receipt by the Seller of a Response Action Outcome (“RAO”) issued by a Licensed
Site Remediation Professional (“LSRP”) (as such terms are defined below), or any other written determination
by the NJDEP or an LSRP that the requirements of ISRA have been satisfied with respect to the Property.

 

(ii)       “Environment”
shall mean surface soils, subsurface soils, sediment, surface water, groundwater, wetlands, soil gas, ambient air or land, and
all flora and fauna existing therein or thereon.

 

(iii)       “Environmental
Conditions” means any contamination or pollution or threatened contamination or pollution of, or the Release or threatened
Release of Hazardous Materials into, the Environment, whether known or unknown and regardless of when such conditions first existed
or arose.

 

(iv)       “Environmental
Laws” means all federal, regional, state, county or local laws, statutes, ordinances, decisional law, rules, regulations,
codes, orders, decrees, directives and judgments relating to public health or safety, pollution, damage to or protection of the
Environment, Environmental Conditions, Releases or threatened Releases of Hazardous Materials into the Environment or the use,
manufacture, processing, distribution, treatment, storage, generation, disposal, transport or handling of Hazardous Materials,
as the same are in effect on the Closing Date, together with any amendments to the same and any new enactments adopted, promulgated
or enacted after the Closing Date, including, but not limited to, the Federal Water Pollution Control Act, 33 U.S.C. §§
1231-1387; the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901-6991; the Clean Air Act, 42 U.S.C. §§7401-7642;
the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §§ 9601-9675; the Toxic Substances
Control Act, 15 U.S.C. §§ 2601-2629; the Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et seq. (“ISRA”);
the Site Remediation Reform Act, N.J.S.A. 58:10C-1 et seq, (the “SRRA”); the New Jersey Spill Compensation
and Control Act, N.J.S.A. 58:10-23.11 et seq.; the New Jersey Water Pollution Control Act, N.J.S.A. 58:10A-1 et seq.;
the New Jersey Air Pollution Control Act, N.J.S.A. 26:2C-1 et seq.; and the New Jersey Environmental Rights Act, N.J.S.A.
2A:35A-1 et seq.; and any and all rules and regulations promulgated thereunder.

 

    	 	-10-	 

     

    

 

(v)       “Hazardous
Materials” shall mean any substances, materials or wastes, whether liquid, gaseous or solid, and any pollutant or contaminant,
that is infectious, toxic, hazardous, explosive, corrosive, flammable or radioactive, or that is regulated under, defined, listed
or included in any Environmental Laws, including without limitation, petroleum, polychlorinated biphenyls, asbestos and asbestos
containing materials and urea formaldehyde.

 

(vi)       “Licensed
Site Remediation Professional” or “LSRP” shall have the same meaning given to such terms under the
SRRA.

 

(vii)       “NJDEP”
shall mean the New Jersey Department of Environmental Protection, its divisions, bureaus and subdivisions.

 

(viii)       “Release”
shall mean any intentional or unintentional release, discharge, burial, spill, leaking, pumping, pouring, emitting, emptying,
injection, disposal or dumping into the Environment.

 

(ix)       “Remedial
Action Permit” shall have the same meaning given to such term at N.J.A.C. 7:26C-7 et seq.

 

(x)       “Remedial
Actions” means any and all: (1) investigations of Environmental Conditions, including site assessments, site investigations,
remedial investigations, soil, groundwater, surface water, sediment sampling or monitoring; or (2) actions taken to remove, abate
or remediate Environmental Conditions, including the use, implementation, application, installation, operation or maintenance
of removal actions, in-situ or ex-situ remediation technologies applied to the surface or subsurface soils, encapsulation or stabilization
of soils, excavation and off-site treatment or disposal of soils, systems for the recovery and/or treatment of groundwater or
free product, Engineering Controls, Institutional Controls, Classification Exception Areas and Well Restriction Areas (as such
terms are defined under Environmental Laws, including N.J.S.A. 58:10B-1 et seq.).

 

(xi)       “Remediation
Standards” means either numeric or narrative standards to which Hazardous Materials in the Environment must be remediated
as established pursuant to Environmental Laws by the NJDEP.

 

    	 	-11-	 

     

    

 

(xii)       “Response
Action Outcome” or “RAO” shall have the same meaning given to such terms under the SRRA.

 

	9.4	Industrial
    Site Recovery Act.
	 	 
	A.	Compliance
    With ISRA. Seller shall, prior to the Closing Date and at its cost and expense: (i) achieve Compliance with ISRA; or (ii)
    execute and submit to the NJDEP a Remediation Certification and, if required, a Remediation Funding Source (as such terms
    are defined under ISRA) in form and amount acceptable to the NJDEP or Seller’s LSRP permitting the consummation of the
    transaction contemplated by this Agreement and, from and after the Closing Date, take all actions required under applicable
    Environmental Laws in order to achieve Compliance with ISRA with respect to the Property in accordance with the terms and
    conditions of this Section 9.4.
	 	 
	B.	Performance
    of Remedial Actions. In the event Seller or any LSRP retained by Seller (“Seller’s LSRP”) performs
    any Remedial Actions at the Property following the Closing Date in order to satisfy any of the obligations set forth in Section
    9.4A above, Seller agrees to:

 

(i) perform, and cause all consultants and contractors, including Seller’s LSRP, to perform, such Remedial Actions in a workman-like manner and consistent with applicable Environmental Laws;

     

(ii) provide Purchaser with at least two (2) days prior notice (or such shorter notice as shall be necessary in order to comply with any order or directive of the NJDEP or requirement of Seller’s LSRP) of the initiation of any Remedial Actions at the Property; 

     

(iii) provide Purchaser with an opportunity to review and copy all documents submitted by Seller or Seller’s LSRP to, or received by Seller or Seller’s LSRP from, the NJDEP in connection with the performance of Remedial Actions at the Property and to have a representative present at the Property during the performance of any Remedial Action; and

     

(iv) upon the completion of the Remedial Action and consistent with the Remedial Action and the requirements of Environmental Laws, restore the Property to substantially the same condition it was in prior to the performance of the Remedial Action.

 

    	 	-12-	 

     

    

 

	C.	Purchaser’s
    Obligations With Respect to Remedial Actions. As to the Remedial Actions that Seller or Seller’s LSRP performs at
    the Property pursuant to Section 9.4A above, Purchaser and Seller agree as follows: (i) Seller and Seller’s LSRP
    shall have the right to exercise the authority to select and propose the Remedial Actions necessary to achieve Compliance
    with ISRA with respect to the Property, and to implement the same at the Property, consistent with the provisions of this
    Section 9.4(C); (ii) Seller and Seller’s LSRP shall have the right to use and employ Remediation Standards applicable
    to non-residential properties and any remediation methodology, including Engineering Controls, Institutional Controls and
    Classification Exception Areas and Well Restriction Areas, provided that the use of such Remediation Standards or remediation
    methodology does not unreasonably interfere with Seller’s day-to-day operations at the Property, subject to Purchaser’s
    prior consent, such consent not to be unreasonably withheld, conditioned or delayed; (iii) Seller shall exercise the
    authority to conduct any negotiations with the NJDEP and/or Seller’s LSRP concerning the method, scope and pace of the
    Remedial Action consistent with the provisions of this Section 9.4(C); (iv) as requested by Seller, Purchaser shall
    execute documents reasonably required to enable the implementation of the Remedial Actions selected by Seller or Seller’s
    LSRP, or to otherwise allow Seller to achieve Compliance with ISRA, including permit applications or Deed Notices, provided
    that Seller shall be solely responsible for all costs and expenses incurred to apply for and obtain such permits and to prepare
    and record such Deed Notices; (v) Purchaser, and Seller pursuant to the Seller Lease, shall use the Property in a manner
    that complies with any Engineering Control or Institutional Control installed or required in connection with the Remedial
    Action selected by Seller or Seller’s LSRP (including reasonable assistance to Seller in the preparation of the biennial
    certification required under N.J.S.A. 58:10B-13.1(a)(2)); and (vi) Purchaser shall be listed as a co-permittee
    under any Remedial Action Permit(s) issued to Seller by the NJDEP in connection with the Remedial Actions implemented by Seller
    or Seller’s LSRP at the Property, with Seller, in accordance with the Seller Lease, being listed as, and being responsible
    for satisfying the compliance obligations of, the “person with primary responsibility for permit compliance” under
    such Remedial Action Permit(s).
	 	 
	9.5	Survival.
    The provisions of this Article IX shall survive the Closing of title and delivery of the Deed.

 

ARTICLE
X.  DUE DILIGENCE BY PURCHASER

 

	10.1	Due
    Diligence Period. Purchaser shall have thirty (30) calendar days from the Effective Date (the “Due Diligence
    Period”) to conduct, at its own cost and expense, a due diligence inspection of the Property, including engineering
    tests, a review of the financial, legal and physical condition of the Property and the like, and a review of all applicable
    laws, regulations and ordinances, which may include a non-invasive environmental assessment of the Property (“Inspections”).
    Purchaser shall not conduct or allow any physically intrusive testing of, on or under the Property, or use, consult or engage
    a LSRP in connection with the performance of any Inspections (or the review of the results thereof) to be performed by Purchaser
    under this Section 10.1. Purchaser, or Purchaser’s agent, shall maintain at all times during the Due Diligence Period,
    general liability insurance in an amount not less than $2,000,000 with Seller being named as an “Additional Insured”
    with respect to the Property, and, upon request of Seller, will provide Seller with written evidence of same. Purchaser shall
    be responsible for any damage caused as a result of its Inspections. This obligation shall survive termination of this Agreement
    and the Closing.
	 	 
	10.2	Confidentiality;
    Inspections. Purchaser agrees (which agreement shall survive Closing or earlier termination of this Agreement) that, in
    making any Inspections, or conducting any testing of, on or under the Property, Purchaser or Purchaser’s agent will
    hold such information confidential in accordance with Section 16.1. Purchaser shall give Seller reasonable prior written notice
    of its intention to conduct any Inspections and such Inspections shall not occur without a representative of Seller present.
    Purchaser agrees to provide Seller with a copy of any Inspection report only upon Seller’s written request. Any Inspections
    shall be at Purchaser’s sole cost and expense.

 

    	 	-13-	 

     

    

 

	10.3	Termination
    Notice. If Purchaser is dissatisfied with the results of such Inspections, in Purchaser’s sole discretion, for any
    reason or no reason, then in such event Purchaser may elect to terminate this Agreement by giving notice of such election
    (the “Termination Notice”) on or before the expiration of the Due Diligence Period, which date shall be
    deemed time of the essence. The results of all Inspections including, but not limited to environmental Inspections, shall
    be deemed confidential in nature, and shall not be disclosed to any third parties by Purchaser, except strictly in accordance
    with Section 16.1. In the event of such termination, this Agreement shall be without any further force, effect or obligation
    of either party to the other, except for those provisions which expressly survive the termination of this Agreement. If Purchaser
    has not delivered a Termination Notice within the required time period in accordance with this Section, then Purchaser shall
    have no further right to terminate this Agreement pursuant to this Article, and this Agreement shall continue in full force
    and effect.

 

ARTICLE
XI. BROKER

 

	11.1	Broker.
    The parties hereto represent that neither party has engaged a broker in connection with this subject sale other than Ripco
    Real Estate Corp. (collectively, “Brokers”).
	 	 
	11.2	Purchaser
    Indemnification. Purchaser warrants and represents to the Seller that there are no other brokerage commissions due to
    any broker by reason of Purchaser’s acts with respect to the sale of the Property (other than Brokers) and Purchaser
    agrees to indemnify and hold the Seller harmless with respect to any judgment, damages, legal fees, court costs and any liabilities
    of any nature whatsoever arising from breach of its representations. This paragraph shall survive the closing of title and
    delivery of the Deed.
	 	 
	11.3	Seller
    Indemnification. Seller warrants and represents to the Purchaser that there are no other brokerage commissions due to
    any broker by reason of Seller’s acts with respect to the sale of the Property (other than Brokers) and Seller agrees
    to indemnify and hold the Purchaser harmless with respect to any judgment, damages, legal fees, court costs and any liabilities
    of any nature whatsoever arising from breach of its representations. Seller shall be responsible for any commission due and
    payable to Brokers, pursuant to a separate written agreement. This paragraph shall survive the Closing of title and delivery
    of the Deed.

 

    	 	-14-	 

     

    

 

ARTICLE
XII. [INTENTIONALLY OMITTED]

 

ARTICLE
XIII. RECORDING

 

	13.1	Neither
    this Agreement, nor a memorandum thereof, shall be recorded in any place of public record by the Purchaser, and any such recording
    shall be deemed a default by Purchaser hereunder.

 

ARTICLE
XIV. DEFAULT

 

	14.1	Purchaser’s
    Default. In the event Purchaser should default in its obligations under this Agreement, Seller may, as its sole remedy,
    thereafter elect to terminate this Agreement, and upon notice from Seller of its election, this Agreement shall be terminated.
    
	 	 
	14.2	Seller’s
    Default. In the event Seller should default in its obligations under this Agreement (unless for any reason wholly outside
    Seller’s control), Purchaser’s exclusive remedies shall be to either (i) seek specific performance of Seller’s
    obligations hereunder, or (ii) terminate this Agreement. If, for any reason other than Seller’s willful default, Seller
    shall be unable to deliver title to the Property in accordance with the provisions hereof, Purchaser’s sole remedy shall
    be to terminate this Agreement.

 

ARTICLE
XV. REPRESENTATIONS AND WARRANTIES

 

	15.1	Purchaser’s
    Representations. Purchaser represents and warrants to, and covenants with, Seller as follows:

 

	 	(a)	Purchaser’s
    Authorization. Purchaser (i) is duly organized (or formed), validly existing and in good standing under the laws of its
    State of organization/formation and, if applicable, in the State in which the Property is located, (ii) is authorized to consummate
    the Transaction and fulfill all of its respective obligations hereunder and under all documents contemplated hereunder to
    be executed by Purchaser, and (c) has all necessary power to execute and deliver this Agreement and all documents contemplated
    hereunder to be executed by Purchaser, and to perform all of its respective obligations hereunder and thereunder. This Agreement
    and all documents contemplated hereunder to be executed by Purchaser, have been duly authorized by all requisite partnership,
    membership or corporate action on the part of Purchaser and are the valid and legally binding obligation of Purchaser, as
    the case may be, enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement
    and all documents contemplated hereunder to be executed by Purchaser, nor the performance of the obligations of Purchaser
    hereunder or thereunder will result in the violation of any law or any provision of the agreement of partnership or membership
    or articles of incorporation and by-laws of Purchaser or will conflict with any order or decree of any court or governmental
    instrumentality of any nature by which Purchaser is bound.
	 	 	 
	 	(b)	Purchaser’s
    Financial Condition. No attachment, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy,
    reorganization, or other proceedings are pending against Purchaser.

 

    	 	-15-	 

     

    

 

	15.2	Seller’s
    Representations. Seller represents and warrants to Purchaser as follows:

 

	 	(a)	Seller’s
    Authorization. Seller (a) is duly organized, validly existing and in good standing under the laws of its State of organization
    and the State in which the Property is located, (b) is authorized to consummate the Transaction and fulfill all of its obligations
    hereunder and under all documents contemplated hereunder to be executed by Seller, and (c) has all necessary power to execute
    and deliver this Agreement and all documents contemplated hereunder to be executed by Seller and to perform its obligations
    hereunder and thereunder. This Agreement and all documents contemplated hereunder to be executed by Seller have been duly
    authorized by all requisite corporate action on the part of Seller and are the valid and legally binding obligation of Seller
    enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement and all documents
    contemplated hereunder to be executed by Seller nor the performance of the obligations of Seller hereunder or thereunder will
    result in the violation of any law or any provision of the articles of organization or by-laws of Seller or will conflict
    with any order or decree of any court or governmental instrumentality of any nature by which Seller is bound.
	 	 	 
	 	(b)	Other
    Seller’s Representations. To Seller’s knowledge (as defined in Subsection 15.3(a)):

 

(i)       Except
as listed in Exhibit I attached hereto and incorporated herein by this reference, Seller has not received any written
notice of any current or pending or, to Seller’s knowledge, threatened litigation against Seller which would, in the reasonable
judgment of Seller, if determined adversely to Seller, adversely affect the Property.

 

(ii)       Seller
has not entered into any lease, service, supply, maintenance, utility or other contracts affecting the Property or to which Seller
is a party and which will be binding upon Purchaser after the Closing other than the Contracts listed in Exhibit B-2
attached hereto.

 

(iii)       Except
for defaults cured on or before the date hereof, Seller has not received any written notice of default under the terms of any
of the Contracts except as listed in Exhibit I attached hereto.

 

(iv)       Except
for violations cured or remedied on or before the date hereof and except as listed in Exhibit I attached hereto,
as of the date of this Agreement, Seller has not received any written notice from any governmental authority of any violation
of any zoning, building, fire, or health code, statute, ordinance, rule or regulation applicable to Seller or the use or occupancy
of the Property.

 

(v)       Seller
has not received any written notice from any governmental agency that any special assessments are pending, noted or levied against
the Property.

 

    	 	-16-	 

     

    

 

(vi)       Seller
is not a “foreign person” as defined by the Internal Revenue Code, Section 1445.

 

(vii)       No
attachment, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, or other
proceedings are pending against Seller.

 

(viii)       Seller
is not currently contesting any real estate taxes or personal property taxes for the Property.

 

	15.3	General
    Provisions.

 

	 	(a)	Definition
    of “Seller’s Knowledge”. All references in this Agreement to “Seller’s knowledge”
    or words of similar import shall refer only to the actual knowledge of Wayne Springate (the “Designated Officer”)
    and shall not be construed to refer to the knowledge of any other officer, agent or employee of Seller or any affiliate thereof
    or to impose or have imposed upon the Designated Officer any duty to investigate the matters to which such knowledge, or the
    absence thereof, pertains, including, but not limited to, the contents of the files, documents and materials made available
    to or disclosed to Purchaser or the contents of files maintained by the Designated Officer. The Designated Officer, as Vice
    President of Operations of Seller, is the individual employed by Seller with paramount knowledge of the Property. There shall
    be no personal liability on the part of the Designated Officer arising out of any representations or warranties made herein.
	 	 	 
	 	(b)	Seller’s
    Representations Deemed Modified. To the extent that Purchaser knows or is deemed to know prior to the date hereof that
    Seller’s representations and warranties are inaccurate, untrue or incorrect in any way, such representations and warranties
    shall be deemed modified to reflect Purchaser’s knowledge or deemed knowledge, as the case may be. For purposes of this
    Agreement, (i) Purchaser shall be “deemed to know” that a representation or warranty was untrue, inaccurate or
    incorrect, (A) to the extent that any documents (the “Documents”) which the Seller has provided to Purchaser
    contain information from which a prudent person should have reasonably determined that such representation or warranty was
    untrue, inaccurate or incorrect; and (B) to the extent that this Agreement or any written studies, tests, reports, or analyses
    prepared by or for Purchaser or any of its employees, agents, representatives or attorneys (all of the foregoing being herein
    collectively called the “Purchaser’s Representatives”) or otherwise obtained by Purchaser or Purchaser’s
    Representatives contains information which is inconsistent with such representation or warranty; and (ii) Purchaser shall
    be “deemed to know” of a fact or circumstance to the extent that such fact or circumstance is disclosed by this
    Agreement, the Documents, or any written studies, tests, reports, or analyses prepared by or for Purchaser or any of Purchaser’s
    Representatives.

 

    	 	-17-	 

     

    

 

ARTICLE
XVI. COVENANTS

 

	16.1	Purchaser’s
    Covenants. Purchaser hereby covenants as follows:

 

	 	(a)	Confidentiality.
    Purchaser acknowledges that any non-public information (“Confidential Information”) heretofore furnished
    to Purchaser with respect to the Property has been so furnished on the condition that Purchaser shall maintain the confidentiality
    thereof. Accordingly, Purchaser shall take reasonable efforts (which shall be consistent with the procedures used by Purchaser
    to protect its own confidential information) to hold and to cause its directors, officers and other personnel and representatives
    to hold, in strict confidence, and not disclose to any other person (including, without limitation, the employees of Seller
    or any employees located at the Property) without the prior written consent of Seller until the Closing shall have been consummated,
    any of the Confidential Information in respect of the Property delivered to or for the benefit of Purchaser whether by agents,
    consultants, employees or representatives of Purchaser or by Seller or any of its agents, representatives or employees, including,
    but not limited to, any Confidential Information heretofore obtained by Purchaser or any of Purchaser’s Representatives
    in connection with any studies, inspections, testings or analyses conducted by Purchaser as part of its due diligence. In
    the event the Closing does not occur or this Agreement is terminated, Purchaser shall promptly return to Seller or destroy
    all copies of documents containing any of such Confidential Information without retaining any copy thereof or extract therefrom.
    Notwithstanding anything to the contrary hereinabove set forth, Purchaser may disclose such Confidential Information (i) on
    a need-to-know basis to its employees, members of professional firms serving it or potential lenders or investors, and (ii)
    as any governmental agency may require in order to comply with applicable municipal, county, state or federal statutes, codes,
    ordinances, laws, rules or regulations (herein collectively called “Laws”). Purchaser shall not communicate
    with any employees of Seller or employees working at the Property in connection with Purchaser’s due diligence inspection
    of the Property. Confidential Information does not include any information which (1) is already known to Purchaser prior to
    Effective Date, as demonstrated and evidenced by Purchaser’s written records existing thereto; (2) is or becomes publicly
    available or known through no act, fault, or breach of this Agreement by Purchaser or any Purchaser Representative (and information
    shall be considered in the public domain only if Purchaser can establish that the full particulars of the claimed Confidential
    Information are, in the combination disclosed to Purchaser, well known or generally used); (3) has been disclosed to Purchaser
    by a third party who is not under any obligation of confidence or secrecy to Company at the time of such disclosure; or (4)
    is required to be disclosed pursuant to any applicable laws or court order. The provisions of this Subsection 16.1(a) shall
    survive any termination of this Agreement.

 

    	 	-18-	 

     

    

 

	 	(b)	Purchaser’s
    Indemnity. Purchaser hereby agrees to indemnify, defend, and hold Seller, each of the other Seller Parties free and harmless
    from and against any and all costs, loss, damages and expenses, of any kind or nature whatsoever (including attorney’s
    fees and costs) arising out of or resulting from the breach of the terms of Subsection 16.1(a) or the entry and/or the conduct
    of activities upon the Property by Purchaser or any of Purchaser’s Representatives in connection with the inspections,
    examinations, testings and investigations of the Property conducted at any time prior to the Closing, which indemnity shall
    survive the Closing (and not be merged therein) or any earlier termination of this Agreement.

 

	16.2	Mutual
    Covenants.

 

	 	(a)	Publicity.
    Seller and Purchaser each hereby covenant that neither Seller nor Purchaser shall issue any press release or public statement
    (a “Press Release”) with respect to the Transaction without the prior reasonable consent of the other,
    except to the extent required by applicable Law. If either Seller or Purchaser is required by applicable Law to issue a Press
    Release, such party shall, at least two (2) business days prior to the issuance of the same, deliver a copy of the proposed
    Press Release to the other party for its review.
	 	 	 
	 	(b)	Survival.
    The provisions of this Section 16.2 shall survive the Closing (and not be merged therein) or earlier termination of this Agreement.

 

	16.3	Seller’s
    Covenants. Seller hereby covenants as follows:

 

	 	(a)	Seller
    shall, at all times from the date hereof until the transfer of title to the Property, maintain the Property in its current
    condition, reasonable wear and tear and casualty excepted.
	 	 	 
	 	(b)	Subsequent
    to the date hereof, Seller shall not enter into any lease agreement whether oral or written, with any party or allow any party
    to occupy or use the Property without the Purchaser’s written consent.
	 	 	 
	 	(c)	Seller
    shall maintain property casualty insurance for the full replacement value of the Property until the Closing Date.

 

ARTICLE
XVII. [INTENTIONALLY OMITTED]

 

ARTICLE
XVIII. [INTENTIONALLY OMITTED]

 

ARTICLE
XIX. MISCELLANEOUS

 

	19.1	Purchaser’s
    Assignment. Purchaser shall not assign this Agreement or its rights hereunder to any individual or entity without the
    prior written consent of Seller, which consent Seller may grant or withhold in its sole discretion, and any such unpermitted
    assignment not consented to by Seller shall be null and void. Notwithstanding the foregoing, Purchaser may assign its rights
    under this Agreement to an affiliate or subsidiary of Purchaser without the consent of Seller; provided, however, that no
    such assignment will relieve Purchaser of its obligations hereunder.

 

    	 	-19-	 

     

    

 

	19.2	Survival/Merger.
    Except for the provisions of this Agreement which are explicitly stated to survive the Closing, (a) none of the terms of this
    Agreement shall survive the Closing, and (b) the delivery of the Deed and any other documents and instruments by Seller and
    the acceptance thereof by Purchaser shall effect a merger, and be deemed the full performance and discharge of every obligation
    on the part of Purchaser and Seller to be performed hereunder.
	 	 
	19.3	Integration;
    Waiver. This Agreement, together with the Exhibits hereto, embodies and constitutes the entire understanding between the
    parties with respect to the Transaction and all prior agreements, understandings, representations and statements, oral or
    written, are merged into this Agreement. Neither this Agreement nor any provision hereof may be waived, modified, amended,
    discharged or terminated except by an instrument signed by Buyer and Seller, and then only to the extent set forth in such
    instrument. No waiver by either party hereto of any failure or refusal by the other party to comply with its obligations hereunder
    shall be deemed a waiver of any other or subsequent failure or refusal to so comply.
	 	 
	19.4	Governing
    Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of New Jersey.
	 	 
	19.5	Captions
    Not Binding; Exhibits. The captions in this Agreement are inserted for reference only and in no way define, describe or
    limit the scope or intent of this Agreement or of any of the provisions hereof. All Exhibits attached hereto shall be incorporated
    by reference as if set out herein in full.
	 	 
	19.6	Binding
    Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
    successors and permitted assigns.
	 	 
	19.7	Severability.
    If any term or provision of this Agreement or the application thereof to any persons or circumstances shall, to any extent,
    be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances
    other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision
    of this Agreement shall be valid and enforced to the fullest extent permitted by Law.
	 	 
	19.8	Notices.
    Any notice, request, demand, consent, approval and other communications under this Agreement shall be in writing, and shall
    be deemed duly given or made at the time and on the date when received by facsimile (provided that the sender of such communication
    shall orally confirm receipt thereof by the appropriate parties and send a copy of such communication to the appropriate parties
    within one (1) business day of such facsimile), by electronic mail, or when personally delivered as shown on a receipt therefor
    (which shall include delivery by a nationally recognized overnight delivery service), or three (3) business days after being
    mailed by prepaid registered or certified mail, return receipt requested, to the address for each party set forth below. Any
    party, by written notice to the other in the manner herein provided, may designate an address different from that set forth
    below.

 

    	 	-20-	 

     

    

 

	 	If
    to Purchaser:	 
	 	 	Capital
    Realty & Investment Co., LLC
	 	 	321
    West Main Street
	 	 	Freehold,
    New Jersey 07728
	 	 	Attention:
    Daniel Metz, Principal
	 	 	Tel:
    732-462-1991
	 	 	Fax
    No.: 732-462-1243
	 	 	Email:
    dmetz@capitalrealtynj.com
	 	 	 
	 	With
    a Copy To:	 
	 	 	Nachmias
    Morris & Alt, P.C.
	 	 	20
    Ash Street, Suite 200
	 	 	Conshohocken,
    PA 19428
	 	 	Attention:
    Austin S. Faberman, Esq.
	 	 	Tel:
    610-629-6643
	 	 	Fax
    No.: 610-629-6649
	 	 	Email:
    afaberman@nmapc.net
	 	 	 
	 	If
    to Seller:	 
	 	 	Hemispherx
    Biopharma, Inc.
	 	 	860
    North Orange Avenue
	 	 	Suite
    B
	 	 	Orlando,
    FL 32801-5205
	 	 	Attention:
    Wayne Springate
	 	 	Tel:
    _____________
	 	 	Fax
    No.: _______________
	 	 	Email:
    wayne.springate@hemispherx.net
	 	 	 
	 	With
    a Copy To:	 
	 	 	McCarter
    & English, LLP
	 	 	Four
    Gateway Center
	 	 	100
    Mulberry Street
	 	 	Newark,
    New Jersey 07102
	 	 	Attention:
    John V. Galluccio, Esq.
	 	 	Tel:
    973-639-6980
	 	 	Fax
    No.: 973-297-3875
	 	 	Email:
    jgalluccio@mccarter.com

 

    	 	-21-	 

     

    

 

	19.9	Counterparts.
    This Agreement may be executed in counterparts, each of which shall be an original and all of which counterparts taken together
    shall constitute one and the same agreement. Any executed counterpart delivered by electronic mail or telephone facsimile
    shall have the same force and effect as an original counterpart.
	 	 
	19.10	Additional
    Agreements; Further Assurances. Subject to the terms and conditions herein provided, each of the parties hereto shall
    execute and deliver such documents as the other party shall reasonably request in order to consummate and make effective the
    Transaction; provided, however, that the execution and delivery of such documents by such party shall not result in any additional
    liability or cost to such party.
	 	 
	19.11	Construction.
    The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rule
    of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in
    the interpretation of this Agreement or any amendment hereof or Exhibit hereto.
	 	 
	19.12	Business
    Day. As used herein, the term “business day” shall mean any day other than a Saturday, Sunday, or any
    federal or state of New Jersey holiday. If any period expires on a day which is not a business day or any event or condition
    is required by the terms of this Agreement to occur or be fulfilled on a day which is not a business day, such period shall
    expire or such event or condition shall occur or be fulfilled, as the case may be, on the next succeeding business day.
	 	 
	19.13	WAIVER
    OF JURY TRIAL. EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY PROCEEDINGS BROUGHT BY THE OTHER PARTY IN CONNECTION WITH
    ANY MATTER ARISING OUT OF IN ANY WAY CONNECTED WITH THE TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF PURCHASER
    AND SELLER HEREUNDER.
	 	 
	19.14	Bulk
    Sales Act. 

 

(a)       The
parties acknowledge that the provisions of the New Jersey Sales and Use Tax Act, N.J.S.A. 54:32B-1 et seq. and N.J.S.A.
54:50-38 (collectively, “Bulk Sales Act”), are applicable to the sale of the Property by Seller. Purchaser
shall submit the required Notification of Sale, Transfer or Assignment in Bulk (Form C-9600) (“Bulk Sale Notice”)
and all required attachments to the New Jersey Department of the Treasury, Division of Taxation, Bulk Sales Section (“Section”)
not later than fifteen (15) Business Days prior to Closing. Seller shall promptly provide all required information necessary to
complete all forms submitted with the Bulk Sale Notice. Such filing shall be made by overnight delivery to the address specified
by the Section for such filing by overnight delivery. Seller shall cooperate with the Purchaser in connection with such submission
by supplying any other information necessary for Purchaser to file the Bulk Sales Notice.

 

(b)       In
the event that the New Jersey Division of Taxation requires that a portion of the Purchase Price be held in escrow for potential
tax liabilities of Seller, Seller authorizes Purchaser to comply with such requirement and the Escrow Holder shall hold such amount,
in escrow, and is authorized to disburse same upon receipt of authorizations, and in accordance with directions, from the Division
of Taxation, and the balance of the escrow, if any, shall be paid to Seller. This paragraph shall survive the Closing.

 

    	 	-22-	 

     

    

 

	19.15	1031
    Exchange. Purchaser and Seller acknowledge that the other party may wish to sell, or buy, respectively, the Property as
    part of a like-kind exchange pursuant to §1031 of the Internal Revenue Code, as amended, and the regulations promulgated
    thereunder. Each party shall cooperate with the other party in effectuating such exchange, provided, however,
    that the non-exchanging party shall not be liable to the exchanging party in the event the like kind exchange is not properly
    or timely consummated and the non-exchanging party shall not be obligated to take title to any real property other than the
    Property. The exchanging party may sell or buy, as applicable, the Property through the use of a “qualified intermediary”
    within the meaning of Treasury Regulations §1.1031(k)-1(g)(4) (a “Qualified Intermediary”), as shall
    be selected by the exchanging party. The non-exchanging party shall take such actions and execute such documents as may be
    reasonably necessary to assist the exchanging party in this regard, except that in no event shall the non-exchanging party
    be required to (i) make any warranties or representations in addition to those contained herein, or (ii) assume any costs,
    liabilities or obligations in addition to those set forth herein. The non-exchanging party further agrees to (x) permit the
    exchanging party to assign its interest (but not its obligations, to the extent the same survive Closing in accordance with
    the terms of this Contract) to a Qualified Intermediary, as provided in Treasury Regulations §1.1031(k)-1(g)(4) on or
    before the Closing, and (y) remit payment of the Purchase Price to such Qualified Intermediary.

 

[REMAINDER
OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

    	 	-23-	 

     

    

 

IN
WITNESS WHEREOF, each party hereto has caused this Agreement to be duly executed on its behalf on the day and year first
above written.

 

	 	SELLER:
	 	 
	 	HEMISPHERX
    BIOPHARMA, INC.,
	 	a
    Delaware corporation
	 	 	                        
	 	By:	/s/ Wayne
    Springate
	 	Name:
    	Wayne
    Springate
	 	Title:
    	Senior
    VP of Operation

 

	Date:	January
    8, 2018	

 

	 	PURCHASER:
	 	 
	 	CAPITAL
    REALTY & INVESTMENT CO., LLC, 
	 	a
    New Jersey limited liability
	 	 	                           
	 	By:	/s/ Daniel
    Metz 
	 	Name:
    	Daniel
    Metz
	 	Title:
    	Principal

 

	Date:	January
    8, 2018	 

 

    	 	-24-	 

     

    

 

EXHIBIT
A

 

LEGAL
DESCRIPTION

 

ALL
that certain land and premises situate in the City of New Brunswick City, County of Middlesex and the State of New Jersey, bounded
and described as follows:

 

BEGINNING
at a point on the Northerly sideline of Jules Lane, distant 315.09 feet Northerly from the intersection of said Northerly sideline
of Jules Lane and the Westerly sideline of Jersey Avenue, if each are extended and running; thence

 

(1)       North
48 degrees 23 minutes 58 seconds East, 280 feet to a point; thence

 

(2)       South
41 degrees 36 minutes 2 seconds East, 271.85 feet to a point in the Westerly sideline of Jersey Avenue; thence

 

(3)       Along
said Westerly sideline of Jersey Avenue, South 39 degrees 37 minutes 20 seconds West, 254.16 feet to a point; thence

 

(4)       Along
a curve to the right having a radius of 25 feet, an arc distance of 43.10 feet to a point in the Northerly sideline of Jules Lane;
thence

 

(5)       Along
the Northerly sideline of Jules Lane, North 41 degrees 36 minutes 2 seconds West, 285.93 feet to the point and place of BEGINNING.

 

BEING
Lots 50 and 49 in Block 597 as shown on “Map of Industries, Inc., Section 1”, said Map having been filed in the Middlesex
County Clerk’s Office on July 3, 1969 as Map No. 3279, File No. 956.

 

BEING
Lot 1.01 Block 597.06 on a Tax Map of the City of New Brunswick City County of Middlesex.

 

BEING
PART OF the same premises which Interferon Sciences, Inc., a Delaware corporation, by Deed dated 03/17/2004 and recorded 06/12/2004
in the Middlesex County Clerk’s Office in Deed Book 5334, Page 465, granted and conveyed unto Hemispherx Biopharma, Inc.,
a Delaware corporation.

 

    	 	 	 

     

    

 

EXHIBIT
B-1

 

INVENTORY
OF PERSONAL PROPERTY

 

[To
be finalized by Seller and Purchaser during the Due Diligence Period,

and
then attached to this Agreement]

 

    	 	 	 

     

    

 

EXHIBIT
B-2

 

LIST
OF CONTRACTS

 

[NONE
– ALL CONTRACTS WILL REMAIN WITH SELLER]

 

    	 	 	 

     

    

 

EXHIBIT
B-3

 

FORM
OF SELLER LEASE

 

    	 	 	 

     

    

 

EXHIBIT
C

 

TITLE
EXCEPTIONS

 

1.       Subject
to added or omitted assessments pursuant to N.J.S.A 54:4-63.1 et seq.

 

2.       current
year’s taxes levied or to be levied and not yet certified to by the County Board of Taxation in accordance with Chapter
397 Laws of 1941, as amended and supplemented.

 

3.       Subsurface
conditions and/or encroachments not disclosed by an instrument of record.

 

4.       Subject
to all matters shown on the Plan as recorded in the Clerk’s Office of Middlesex County, New Jersey in Map No. 3279, File
No. 956.

 

5.       Deed
of Easement for Right-of-Way as set forth in Deed Book 3337, Page 237.

 

6.       Rights
granted to Public Service Electric and Gas Company and New Jersey Bell Telephone Company as set forth in Deed Book 2596, Page
15; Deed Book 2692, Page 568; Deed Book 2633, Page 667.

 

    	 	 	 

     

    

 

EXHIBIT
D

 

FORM
OF DEED

 

D
E E D

 

This
Deed is made as of the ______ day of ______________, 2018

 

BETWEEN

 

_________________________,
a ________________ __________________

 

whose
address is ________________ , referred to as the Grantor.

 

AND

 

_________________________,
a ________________ __________________,

 

whose
address is ________________ , referred to as the Grantee.

 

The
words “Grantor” and “Grantee” shall mean all Grantors and all Grantees listed above.

 

“Transfer
of Ownership”. The Grantor grants and conveys (transfers ownership of) the property described below to the Grantee.
This transfer is made for the sum of Four Million and 00/100 ($4,000,000.00) Dollars. The Grantor acknowledges receipt of this
money.

 

Tax
Map Reference. (N.J.S.A. 46:15-2.1) Borough of East Newark

Block
No. 597.06                          Lot No. 1.01
                        
Qualifier No.
                        Account
No.

 

[  ]       No
Property tax identification number is available on the date of this deed. (Check box if applicable).

 

	 	(a)	Property.
    The property consists of the land and all the buildings and structures on the land in the City of New Brunswick, County
    of Middlesex and State of New Jersey. The legal description is more particularly described as follows:

 

Prepared
By:

 

___________________

John
V. Galluccio

McCarter
& English, LLP

Four
Gateway Center

100
Mulberry Street

Newark,
NJ 07102

 

See
SCHEDULE “A” attached hereto and made a part hereof.

 

    	 	 	 

     

    

 

Being
commonly known and designated as 783 Jersey Avenue, New Brunswick, New Jersey.

 

Being
the same premises conveyed to Grantor by Deed from _______________________________, dated ____________ ___, ______, recorded _____________
____, _____, in the Clerk’s Office of the County of Hudson, New Jersey, as __________________________________.

 

This
conveyance is made subject to any and all mortgages, covenants, easements and restrictions of record affecting said premises,
subsurface conditions, all governmental laws, ordinances and regulations regarding the use of said premises, and any state of
facts which an accurate survey might show.

 

Promises
by Grantor. The Grantor promises that the Grantor has done no act to encumber the property. This promise is called a “covenant
as to grantor’s acts” (N.J.S.A. 46:4-6). This promise means that the Grantor has not allowed anyone else to
obtain any legal rights which affect the property (such as by making a mortgage or allowing a judgment to be entered against the
Grantor).

 

Signatures.
The Grantor signs this Deed as of the date at the top of the first page.

 

	Witnessed
    by:	 	 	 
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 	 	 

     

    

 

STATE
OF NEW JERSEY, COUNTY OF _________________

 

 

BE
IT REMEMBERED, that on this ____ day of _______________, 2018, before me, the subscriber, personally appeared _______________________
who, I am satisfied, is the person who signed the within instrument as _______________________ of __________________________,
the limited liability company named therein and this person thereupon acknowledged that he/she is authorized to sign the within
instrument on behalf of the limited partnership and that the said instrument made by the limited liability company was signed,
sealed and delivered by this person as such _______________ and is the voluntary act and deed of the limited liability company,
made by virtue of authority from its members.

 

	 	 
	 	 
	 	Notary
    Public/Attorney at Law
	 	State
    of New Jersey

 

    	 	 	 

     

    

 

	 

        (i)       D
        E E D

         
	 

                                                                                 

                                                                                 
	 

        DATED:
        _______________ ___, 2018

         

	 

        _________________________,
        a

        ________________ __________________,

         

        Grantor

         

        -
        TO -

         

        _________________________,
        a

        ________________ __________________,

         

        Grantee

         
	 

                                                

                                                

                                                

                                                

                                                

                                                

                                                

                                                

                                                

                                                

                                                

                                                
	 

        RECORD
        & RETURN TO:

         

        Austin
        S. Faberman, Esq.

        Nachmias
        Morris & Alt, P.C.

        20
        Ash Street, Suite 200

        Conshohocken,
        Pennsylvania 19428

         

         

         

         

         

         

 

    	 	 	 

     

    

 

SCHEDULE
“A”

 

LEGAL
DESCRIPTION OF PROPERTY

 

    	 	 	 

     

    

 

EXHIBIT
E

 

FORM
OF BILL OF SALE

 

THIS
BILL OF SALE (“Bill of Sale”), is made as of the ____ day of ____, ______ 201_ by and between _________________________,
a ________________ __________________ (the “Seller”) and _________________________, a ________________
__________________ (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS,
by that certain Purchase and Sale Agreement (the “Sale Agreement”) dated as of ________ _____, ______,
by and between Seller and Purchaser, Seller agreed to sell to Purchaser certain real property, and the improvements located thereon
as more particularly described in Exhibit A attached hereto and incorporated herein by this reference, together with all
improvements located thereon (the “Real Property”); and

 

WHEREAS,
by deed of even date herewith, Seller conveyed the Real Property to Purchaser; and

 

WHEREAS,
in connection with the above described conveyance Seller desires to sell, transfer and convey to Purchaser certain items of
tangible personal property as hereinafter described.

 

NOW,
THEREFORE, in consideration of the receipt of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration paid
in hand by Purchaser to Seller, the receipt and sufficiency of which are hereby acknowledged, Seller has GRANTED, CONVEYED, SOLD,
TRANSFERRED, SET OVER and DELIVERED and by these presents does hereby GRANT, SELL, TRANSFER, SET OVER and DELIVER to Purchaser,
its legal representatives, successors and assigns, all of its right, title and interest in and to all tangible personal property
owned by Seller (excluding any computer software which either (a) is licensed to Seller, or (b) Seller deems proprietary), located
on the Real Property and used in the ownership, operation and maintenance of the Real Property as expressly set forth Exhibit
A attached hereto, and all non-confidential books, records and files (excluding any appraisals, budgets, strategic plans for
the Real Property, internal analyses, marketing information, submissions relating to Seller’s obtaining of corporate authorization,
attorney and accountant work product, attorney-client privileged documents, or other information in the possession or control
of Seller or Seller’s property manager which Seller deems proprietary) relating to the Real Property (herein collectively
called the “Personal Property”), to have and to hold, all and singular, the Personal Property unto Purchaser
forever. The Personal Property is being conveyed hereunder free from all liens.

 

    	 	 	 

     

    

 

This
Bill of Sale is made without any covenant, warranty or representation by, or recourse against, Seller, as more expressly set forth
in the Sale Agreement and the documents executed in connection therewith. By acceptance of this Bill of Sale, Purchaser specifically
acknowledges that, except for Seller’s representations and warranties set forth in Section 15.2 of the Sale Agreement, Purchaser
is not relying on (and Seller, for itself and for its counsel, its sales agents, each partner, member, officer, director,
employee, agent and attorney of Seller, its counsel, and its sales agents, and any other party related in any way to any of the
foregoing (all of which parties are herein collectively called the “Seller Parties”), does hereby disclaim
and renounce) any representations or warranties of any kind or nature whatsoever, whether oral or written, express, implied, statutory
or otherwise, from Seller or any other Seller Parties, including, without limitation, any covenant, representation or warranty
regarding or relating to (a) the operation of the Personal Property or uses or merchantability or fitness of any portion of the
Personal Property for a particular purpose; or (b) the physical condition of the Personal Property or the condition or safety
of the Personal Property or suitability of the Personal Property for a particular purpose. Seller hereby disclaims and, by its
acceptance of this Bill of Sale Purchaser hereby waives and releases, any implied or statutory warranties or guaranties of fitness,
merchantability or any other statutory or implied warranty or guaranty of any kind or nature regarding or relating to the Personal
Property. Purchaser acknowledges and agrees that the provisions of this paragraph were a material factor in Seller’s agreement
to convey the Personal Property to Purchaser and Seller would not have conveyed the Personal Property to Purchaser unless Seller
and the other Seller Parties are expressly released and Purchaser waives the rights as set forth in this paragraph.

 

This
Bill of Sale may be executed in counterparts, each of which shall be an original and all of which counterparts taken together
shall constitute one and the same agreement.

 

[BALANCE
OF THIS PAGE INTENTIONALLY LEFT BLANK – SIGNATURE PAGE TO FOLLOW]

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Bill of Sale as of the date first set forth hereinabove.

 

	 	_________________________,
	 	a
    ________________ __________________
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
	 	ACCEPTED:
	 	 	                                                                 
	 	_________________________________,
	 	a
    ________________ __________________
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

    	 	 	 

     

    

 

EXHIBIT
A

 

INVENTORY
OF PERSONAL PROPERTY

 

[TO
BE ATTACHED]

 

    	 	 	 

     

    

 

EXHIBIT
F

 

[INTENTIONALLY
OMITTED]

 

    	 	 	 

     

    

 

EXHIBIT
G

 

FORM
OF ASSIGNMENT OF CONTRACTS

 

THIS
ASSIGNMENT OF CONTRACTS (“Assignment”) is made as of the ____ day of ______, 2018 by and between _________________________,
a ________________ __________________ (the “Assignor”) and _________________________, a ________________
__________________ (the “Assignee”).

 

WITNESSETH:

 

WHEREAS,
by Purchase and Sale Agreement (the “Sale Agreement”) dated as of ____ ______, _______, by and between Assignor
and Assignee, Assignor agreed to sell to Assignee certain real property, and the improvements located thereon (the “Property”)
as more particularly described in the Sale Agreement; and

 

WHEREAS,
the Sale Agreement provides, inter alia, that Assignor shall assign to Assignee rights to certain intangible property
and that Assignee shall assume all of the obligations of Assignor under such intangible property from and after the date of such
assignment, and that Assignor and Assignee shall enter into this Assignment.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree as
follows:

 

	1.	Assignment
    of Contracts, Licenses and Permits. Assignor hereby assigns, sets over and transfers to Assignee all of its right, title
    and interest in, to and under if and to the extent assignable by Assignor without expense to Assignor, (a) all service, supply,
    maintenance, utility and commission agreements, all equipment leases, and all contracts, subcontracts and agreements relating
    to the construction of any unfinished tenant improvements described in Exhibit A attached hereto and incorporated herein
    by this reference (herein collectively called the “Contracts”), and (b) to the extent that the same have
    been obtained by Assignor prior to the date hereof, any licenses, permits and other written authorizations necessary for the
    use, operation or ownership of the Property (herein collectively called the “Licenses and Permits”). Assignee
    hereby assumes and takes responsibility for all losses, costs, claims, liabilities, expenses, demands and obligations of any
    kind or nature whatsoever attributable to the Contracts and the Licenses and Permits arising or accruing after the date hereof
    attributable to events or circumstances which may occur on or after the date hereof. Assignor shall remain liable for all
    losses, costs, claims, liabilities, expenses, demands and obligations of any kind or nature whatsoever attributable to the
    Contracts and the Licenses and Permits arising or accruing prior to the date hereof.
	 	 
	2.	Assignment
    of Warranties and Guarantees. Assignor hereby assigns, sets over and transfers to Assignee all of its right, title and
    interest in, to, and under those certain warranties and guarantees set forth in Exhibit B attached hereto and incorporated
    herein by this reference, to the extent assignable.

 

    	 	 	 

     

    

 

	3.	Miscellaneous.
    This Assignment and the obligations of the parties hereunder shall survive the closing of the transaction referred to in the
    Sale Agreement and shall not be merged therein, shall be binding upon and inure to the benefit of the parties hereto, their
    respective legal representatives, successors and assigns, shall be governed by and construed in accordance with the laws of
    the State of New Jersey applicable to agreements made and to be wholly performed within said State and may not be modified
    or amended in any manner other than by a written agreement signed by the party to be charged therewith.
	 	 
	4.	Counterparts.
    This Assignment may be executed in counterparts, each of which shall be an original and all of which counterparts taken together
    shall constitute one and the same agreement.

 

IN
WITNESS WHEREOF, the undersigned have executed this Assignment as of the date first set forth hereinabove.

 

	 	ASSIGNOR:
	 	 
	 	_________________________,
    
	 	a
    ________________ __________________
	 	 	                                                 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
	 	ASSIGNEE:
	 	 
	 	_________________________,
    
	 	a
    ________________ __________________
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

    	 	 	 

     

    

 

EXHIBIT
H

 

FORM
OF FIRPTA AFFIDAVIT

 

Section
1445 of the Internal Revenue Code provides that a transferee of a United States real property interest must withhold tax if the
transferor is a foreign person. To inform the transferee that withholding of tax is not required upon the disposition of a United
States real property interest by _________________________, a ________________ __________________ (the “Seller”),
the undersigned hereby certify the following on behalf of Seller:

 

	1.	Seller
    is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal
    Revenue Code and Income Tax Regulations); and
	 	 
	2.	Seller’s
    U.S. employer tax identification number is ________________; and
	 	 
	3.	Seller’s
    office address is _________________________________________________.

 

Seller
understands that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement
contained herein could be punished by fine, imprisonment, or both.

 

The
undersigned officers of the Seller declare that they have examined this certification and to the best of their knowledge and belief
it is true, correct and complete, and they further declare that they have authority to sign this document on behalf of Seller.

 

Dated:
_______ _____, 2018

 

	 	_________________________,
    
	 	a
    ________________ __________________ 
	 	 	                                        
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

    	 	 	 

     

    

 

EXHIBIT
I

 

LITIGATION
NOTICES, CONTRACT DEFAULTS

AND
GOVERNMENTAL VIOLATIONS

 

NONE

 

    	 	 	 

     

    

 

EXHIBIT
J

 

[INTENTIONALLY
OMITTED]prqr_Ex4_15

		

			Exhibit 4.15

		

		

			 

		

			

					

						CONFIDENTIAL

					

					

						 

				

		

			 

		

		
			LICENSE AGREEMENT
		

		
			 
		

		
			N° 09533C10
		

		
			 
		

		
			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 UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934.
		

		
			 
		

		
			This License Agreement (the “Agreement”) is made as of its last date of signature by all signatories (the “Effective Date”) by and between:
		

		
			 
		

		
			Inserm Transfert SA, a limited company (société anonyme à directoire et conseil de surveillance) organized under the laws of France, with share capital of €9,573,470, whose registered headquarters are located at 7 rue Watt, 75013 Paris, France, SIRET No. 434 033 619 00025 business (APE) code 7219Z, Paris Trade and Companies Registry No. B 434 033 619, represented by its Chairman of the Management Board, Mrs. Pascale Augé,
		

		
			 
		

		
			Acting as delegate of the French National Institute of Health and Medical Research (Institut National de la Santé et de la Recherche Médicale – hereinafter “Inserm”), a public scientific and technological institute, having its registered headquarters at 101 rue de Tolbiac, 75013 Paris, France.
		

		
			 
		

		
			Acting on behalf of Université Paris Descartes, Centre National de la Recherche Scientifique (CNRS), Genethon and École Nationale supérieure de physique et de chimie industrielles de la ville de Paris (ENSCP) according to a mandate allowing Inserm Transfert to execute the Agreement on their behalf.
		

		
			 
		

		
			Hereinafter referred to as “Inserm Transfert”
		

		
			 
		

		
			And
		

		
			 
		

		
			Assistance-Publique-Hôpitaux de Paris, located 3 avenue Victoria, 75184 Paris Cedex 04, France, represented by its Managing Director, Mr Martin Hirsch, Represented by: Mrs Florence Favrel-Feuillade, Director of the Department of Clinical Research and Innovation, Carré Historique de l’Hôpital Saint-Louis, 1 avenue Claude Vellefaux, 75010 Paris in accordance with delegation, authorising her to sign the present contract,
		

		
			 
		

		
			Hereinafter referred to as “AP-HP”
		

		
			 
		

		
			on the one hand
		

		
			 
		

		
			And
		

		
			 
		

		
			 
		

		
			

		 

		

			-  1  -

		

 

		

			 

		

			

					

						CONFIDENTIAL

					

					

						 

				

		

			 

		

		

		
			ProQR Therapeutics IV B.V., a private company with limited liability organized under the laws of Netherlands, whose registered headquarters are located at Zernikedreef 9, 2333CK Leiden, the Netherlands, represented by its CEO, Daniel de Boer,
		

		
			 
		

		
			Hereinafter referred to as “Licensee”,
		

		
			 
		

		
			on the other hand.
		

		
			 
		

		
			Inserm Transfert, Inserm, Université Paris Descartes, Centre National de la Recherche Scientifique (CNRS), École Nationale supérieure de physique et de chimie industrielles de la ville de Paris, Généthon and AP-HP and Licensee are hereinafter referred to collectively as the “Parties” and individually as a “Party”.
		

		
			 
		

		
			BACKGROUND
		

		
			 
		

		
			A.         The team of Jean-Michel Rozet (“Laboratory”) in Inserm’s research laboratory U781 (today U1163), which was under the joint supervision of Inserm and Université Paris Descartes and a team in Inserm’s research laboratory U1022 which is under the joint supervision of Inserm, Université Paris Descartes, Centre National de la Recherche Scientifique (CNRS), École Nationale supérieure de physique et de chimie industrielles de la ville de Paris have made an invention relating to Exon skipping therapy for Leber’s congenital amaurosis (“LCA”). This invention is the subject of a priority patent application No EP 11305735 (IT reference BIO09533), filed on June 10, 2011, which was continued as an international patent application PCT/EP2012/060906, filed on June 8, 2012 (WO/2012/168435), and which was subsequently prosecuted in Europe (EP 12729421.3) and the United States of America (US 9,012,425; US 9,487,782 ; US 9,777,272 and US15/692,669) and co-owned by Inserm, Université Paris Descartes, Centre National de la Recherche Scientifique (CNRS), École Nationale supérieure de physique et de chimie industrielles de la ville de Paris, Généthon and AP-HP. Université d’Evry Val d’Essone was also designated as co-applicant of all or part of the aforementioned patent applications/patents and Inserm Transfert is, at the Effective Date, in the process of obtaining the assignment to Inserm, Université Paris Descartes, Centre National de la Recherche Scientifique (CNRS), École Nationale supérieure de physique et de chimie industrielles de la ville de Paris, Généthon and AP-HP of Université d’Evry Val-d’Essone’s share in the above mentioned patent applications/patents.
		

		
			 
		

		
			B.         Inserm Transfert is Inserm’s private law wholly-owned technology transfer subsidiary, created by a French decree dated June 6, 2000. Effective January 1, 2006, Inserm delegated to Inserm Transfert the management of its technology transfer activities resulting from the French decree No 83-975 relating to Inserm’s organization and functioning. As of January 1, 2006, Inserm Transfert is notably in charge of the management of patents, know-how, materials and other technologies owned or co-owned by Inserm including the negotiation, signature and management of license related thereto.
		

		
			 
		

		
			It is however specified that this delegation does not entail the transfer to Inserm Transfert of the property rights held or jointly held by Inserm.
		

		
			 
		

		
			
		

		
			

		 

		

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			For the performance of this agreement, Inserm is not considered as a third party.
		

		
			 
		

		
			C. Licensee wishes to obtain a license on the above mentioned patent application(s) for the development and commercialization of therapeutic oligonucleotides for the prevention and treatment of Leber congenital amaurosis.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the mutual covenants, conditions and undertakings herein contained, the Parties agree as follows:
		

		
			 
		

		
			PRELIMINARY ARTICLE
		

		
			DEFINITIONS
		

		
			 
		

		
			As used in the present agreement, the following terms shall have the meanings indicated:
		

		
			 
		

		
			“Agreement” shall mean the full present license agreement including its potential amendments and appendices.
		

		
			 
		

		
			“Affiliate” shall mean any commercial capital or partnership company, which via a share to the capital or any other means controls Licensee, is controlled by Licensee, or is under common control with Licensee. For the purpose of this definition, control means the ownership of more than fifty percent (50%) of the voting rights or of the rights to direct the management and policies of an entity.
		

		
			 
		

		
			The following relationships between legal entities shall not in themselves be deemed to constitute controlling relationships:
		

		
			 
		

		
			(a)   the same public investment corporation, institutional investor or venture-capital company has a direct or indirect holding of more than 50% of the nominal value of the issued share capital or a majority of voting rights of the shareholders or associates; or
		

		
			 
		

		
			(b)   the legal entities concerned are owned or supervised by the same public body.
		

		
			 
		

		
			The rights granted to the Affiliates under the terms of this Agreement only apply to entities qualifying as Affiliate at the time the rights are exercised. If, during the term of the Agreement, an entity were to lose the qualification of Affiliate, the rights acquired by this entity as Affiliate of Licensee will automatically terminate, unless written consent of Inserm Transfert is given.
		

		
			 
		

		
			This entity will however remain subject to any obligation under the Agreement that shall by nature remain in force, in particular obligations relating to Confidential Information. Notwithstanding the above, Licensee shall remain liable for the ongoing performance of the obligations under this Agreement by its Affiliates.
		

		
			 
		

		
			“Co-Owners” shall mean Inserm, Université Paris Descartes, Centre National de la Recherche Scientifique (CNRS), École Nationale supérieure de physique et de chimie industrielles de la ville de Paris, Généthon and AP-HP.
		

		
			 
		

		
			
		

		
			

		 

		

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			“Development Activities” shall mean all activities and studies to be conducted directly by Licensee, or by a third party or Affiliate on behalf of Licensee or by Sublicensee, in accordance with the development plan handed to Inserm Transfert as provided under 3.1, including activities and studies required for the development and commercialization of Products, either directly by Licensee or indirectly through its Affiliates and/or Sublicensees.
		

		
			 
		

		
			“Effective Date” shall mean the last date of signature by the last signatory.
		

		
			 
		

		
			“Field” shall mean the prevention and treatment of Leber congenital amaurosis.
		

		
			 
		

		
			“Improvements” shall mean any improvement, whether patentable or not, which may not be practiced without reproducing at least one claim of the Patent Rights or which use is legally dependent upon the Patent Rights, in the meaning of intellectual property laws.
		

		
			 
		

		
			“Net Sales” shall mean the total amount invoiced (excluding taxes) to, third parties, including distributors, on sales or other mode of transfer of the Products in all its forms by Licensee and/or its Affiliates and/or its (their) Sublicensee(s) less any:
		

		
			 
		

		
			(a) reimbursement in respect of returned Products within the limit of the sale’s price of said Products,
		

		
			(b) taxes or other customs duties relating to the Products and borne by Licensee,
		

		
			(c) costs of transportation, shipping, handling and insurance and
		

		
			(d) normal trade discounts, if not already deducted of the sale’s price.
		

		
			 
		

		
			It is understood that the deductions under (c) and (d) shall not altogether exceed the maximum level of **** of the total amount invoiced for all countries in the Territory during the applicable year.
		

		
			 
		

		
			Net Sales of Licensee shall not include intermediate sales between Licensee and its Affiliates and/or its (their) Sublicensee(s) and/or their Affiliates or sales between their Affiliates; for resale of Products, as the case may be, Net Sales shall include the amounts invoiced to third parties on the resale.
		

		
			 
		

		
			Net Sales shall only include the sales between the Licensee and/or its Affiliates and/or its (their) Sublicensee(s), on the one hand, and third parties, on the other hand.
		

		
			 
		

		
			Net Sales shall also include the fair market value of any non-cash consideration received by Licensee and/or its Affiliates and/or its (their) Sublicensee(s) for the sales or other modes of transfer of Products.
		

		
			 
		

		
			If a Product is sold in a kit in combination or in association with other products that are not Products (it being specified, for clarity, that the definition of Products also includes Non Dissociable Products as defined below) and that are sold separately by Licensee for other applications not related to the use of Products, Net Sales shall be calculated by multiplying net sales of the kit or association by the fraction A/(A+B), where A is the total catalogue price of the Products during the applicable year in the country in which the sale was offered if sold
		

		
			 
		

		
			
		

		
			

		 

		

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			separately and B is the total of the catalogue prices of all other products in the kit or association during the applicable year in said country if sold separately. In case no separate list or catalogue prices are available for said products, Licensee shall reasonably determine the values of B on the basis of catalogue or list prices for comparable products.
		

		
			 
		

		
			In the case of non dissociable technologies, Net Sales shall cover the sales of the Non Dissociable Products according to the definition of Products below.
		

		
			 
		

		
			“Patent Rights” shall mean EP 11305735 (IT reference BIO 09533), filed on June 10, 2011, co-owned by Inserm, Université Paris Descartes, Centre National de la Recherche Scientifique (CNRS), École Nationale supérieure de physique et de chimie industrielles de la ville de Paris, Généthon and AP-HP,  titled “METHODS FOR THE TREATMENT OF LEBER CONGENITAL AMAUROSIS”  and quoting notably Jean-Michel Rozet, J. Kaplan, X. Gérard, A. Kichler, D. Scherman, I. Perrault and A. Munnich as inventors and any subsequent patent application(s) corresponding thereto, including any international applications, divisional applications, continuations, continuations in part, re-examination applications or national stage applications, and each patent that issues or reissues from any of these patent applications. For the avoidance of doubt, Patent Rights include supplementary protection certificates (“SPCs”) and other extension(s) of similar nature but do not include any improvements made by INSERM or the Co-Owners.
		

		
			 
		

		
			“Product(s)” shall mean:
		

		
			 
		

		
			(i)        any product, composition, method or process the manufacture, use or sale of which would constitute, but for the license granted herein, an infringement of the Patent Rights and/or which include and/or are developed and/or manufactured using the invention subject of the Patent Rights. Products shall be deemed to include the performance of services in the Field and/or any product, composition, method, process or service which would constitute, but for the license granted herein, an infringement of the Patent Rights and/or using the invention subject of the Patent Rights,
		

		
			 
		

		
			(ii)       As well as:
		

		
			 
		

		
			(any product, composition, method, process or service that cannot be dissociated from product, composition, method, process or service defined in (i), from a commercial point of view or from a regulatory point of view (the “Non Dissociable Products”). For the purpose of the present definition, two elements are non dissociable from a commercial point of view when said non dissociable products are not offered for sale separately under a distinct price reflecting their own added value. For the purpose of the present definition, two elements are non dissociable from a regulatory point of view when they are statutorily required to be registered and sold as a one and only item (such as therapeutic combinations, drug delivery device).
		

		
			 
		

		
			
		

		
			

		 

		

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			“Sublicensee” shall mean any non-Affiliate third party to whom Licensee, Sublicensee or multiple tiers sublicensees grants a sublicense (or an option) for the development, manufacture, use and commercialization of Products in all or part of the Field and Territory.
		

		
			 
		

		
			“Territory” shall mean the world.
		

		
			 
		

		
			Words indicating the singular may be interpreted to be the plural and vice-versa.
		

		
			 
		

		
			1.
		

		
			NATURE, OBJECT AND SCOPE OF THE LICENSE
		

		
			 
		

		
			1.1.  Inserm Transfert and the Co-Owners hereby grant to Licensee an exclusive, royalty-bearing license under the Patent Rights to develop, have developed, make, have made, use, have used and sell, have sold or otherwise distribute Products within the Field and in the Territory.
		

		
			 
		

		
			1.2.  Under the license granted under Article 1.1, Licensee may grant sublicenses (including the right to grant multiple tiers sublicenses subject to the following provisions), which sublicenses shall not contain any provision which would cause it to extend beyond the scope of this Agreement.
		

		
			 
		

		
			Licensee shall provide Inserm Transfert notification of the identity and address of the proposed Sublicensee and a summary of terms of the sublicense (whatever its tier) within thirty (30) days for prior written approval by Inserm Transfert; it being specified that Inserm Transfert may only disagree to the granting of the sublicense for one of the following reasons:
		

		
			 
		

		
			(i)    Sublicensee’s activities conflict with the public order/ethical obligations of the Co-Owners and/or Inserm Transfert (e.g. affiliations with Tobacco, Guns (legal firms), firms who are recognized by the public harm the human health, entity funded through or by organized crime) or,
		

		
			 
		

		
			(ii)   If the sublicense tarnishes the Co-Owners and/or Inserm Transfert’s image (e.g. affiliations with Tobacco, Guns (legal firms), firms who are recognized by the public harm the human health, entity funded through or by organized crime) or
		

		
			 
		

		
			(iii)  If the Co-Owners and/or Inserm Transfert are currently involved or have been involved in a litigation with Sublicensee within the three (3) years prior to the sublicense notification from Licensee and can provide written evidence of such litigation, or
		

		
			 
		

		
			(iv)  If the sublicense implies financial conditions which are more favourable to Sublicensee than that granted to Licensee.
		

		
			 
		

		
			Should Inserm Transfert fail to respond within thirty (30) days of receipt of the notification of the proposed sublicense, Inserm Transfert shall be deemed to have approved the sublicense
		

		
			 
		

		
			
		

		
			

		 

		

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			agreement. A copy of each sublicense agreement shall be provided to Inserm Transfert as soon as it is executed.
		

		
			 
		

		
			Licensee shall remain entirely responsible for the proper performance of the sublicenses and shall be solely responsible towards Inserm Transfert and the Co-Owners for the performance by Sublicensees of all obligations binding upon Licensee under the Agreement. In particular, Licensee undertakes to include in the sublicense agreement confidentiality clauses similar to the one contained herein and not to conclude any sublicense which term would extend beyond the term of the Agreement, without prejudice to termination clauses.
		

		
			 
		

		
			1.3. The Co-Owners reserve the right to practice the Patent Rights in the Field for teaching and/or academic and/or research purposes (including clinical research) , whether by themselves or in collaboration with other academic institutions, including the right to transfer to any academic institution any material and product covered by the Patent Rights, without compromising the exclusive rights granted to Licensee, Affiliates and/or Sublicensees under this and Agreement, and excluding any research carried out in collaboration with or on behalf of a third industrial party. Inserm Transfert and the Co-owners shall not grant any rights of commercial exploitation on the Patents Rights in the Field to any third party.
		

		
			 
		

		
			Outside the Field, the Co-Owners are free to use the Patent Rights for any purpose whatsoever.
		

		
			 
		

		
			2.
		

		
			TERM
		

		
			 
		

		
			This Agreement is effective as of the Effective Date. Unless terminated earlier pursuant to Article 8, it shall last, on a country-by-country basis, until the last to occur of the following events (i) as of the Effective Date and until the invalidation or expiration of the last to expire or to be invalidated Patent Rights which covers the manufacture, use or sale of the Product in said country or until the expiration of the exclusive commercialization right granted by a regulatory agency to a Product as orphan drug or (ii) as of the Effective Date and for five 5 years after the first commercial sale of a Product in the country in which this product is sold. The Parties have agreed that the effect of the Agreement will continue beyond the lifetime of the Patents in order to take into account the length of the development needed before the marketing of the Products as well as the associated costs for the Licensee and/or its Sublicensees. To that end, the Parties have decided to spread out the global financial compensation due for the rights granted, until and including the marketing of the Products, which generates revenues for the Licensee and/or its Sublicensees; rather than concentrating this financial compensation during the lifetime of the Patents and therefore mostly during the development.
		

		
			 
		

		
			3.
		

		
			DEVELOPMENT – COMMERCIALIZATION
		

		
			 
		

		
			
		

		
			

		 

		

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			3.1 The Parties acknowledge that, as at the Effective Date, Licensee has provided Inserm Transfert with a development plan (the “Development Plan”) which describes the terms under which Licensee intends to conduct the Development Activities, the estimated schedule for performance of said Development Activities as well as the estimated date of first commercial sale of the Products. The Development Plan is attached as Appendix 1, shall form an integral part of the Agreement and shall be updated as the Development Activities progress, as defined below.
		

		
			 
		

		
			3.2 Licensee undertakes to inform Inserm Transfert of any unforeseen event relating to said development work that could in itself delay the development activities by more than nine (9) months. In such cases, Licensee shall provide Inserm Transfert with an updated Development Plan that Inserm-Transfert shall agree on if said delay does not result from financial or strategic decisions (such as internal prioritization of projects) from Licensee and results from an external event beyond Licensee’s control and if Licensee provides information as to how it intends to remedy, as much as reasonably possible, the delay and pursue the development and commercialization of a Product and accessibility of a Product to the benefit of the patients.
		

		
			 
		

		
			3.3 Licensee agrees to undertake commercially reasonable efforts to develop a Product as soon as possible, consistent with reasonable business practices and in compliance with the Development Plan, or as updated according to article 3.2 if the case occurs.
		

		
			 
		

		
			3.4 Licensee agrees to undertake commercially reasonable efforts to commercialize a Product as soon as possible, consistent with reasonable business practices and with the regulatory approvals necessary in the Territory.
		

		
			 
		

		
			3.5 Inserm Transfert may terminate the Agreement ipso jure in whole or in part in the event Licensee fails to meet its obligations under Articles 3.2 to 3.4 and if Licensee has not remedied its failure in connection therewith within one hundred and twenty (120) days as from a written notice to do so sent by Inserm Transfert.
		

		
			 
		

		
			3.6 More specifically, Inserm Transfert may terminate the Agreement ipso jure in whole or in part in any country after a sixty (60) days advance notice (to the exclusion of any other formality), in the following cases:
		

		
			 
		

		
			(i)         Licensee and/or its Sublicensees (including multiple tiers Sublicensees) interrupts Development Activities in respect of Products for one (1) year or more; or
		

		
			 
		

		
			(ii)        Licensee and/or its Sublicensees (including multiple tiers Sublicensees) interrupts commercialization of Products for more than twelve (12) months after a first commercialization in a country of the Territory, or
		

		
			 
		

		
			(iii)      in the absence of commercialization of a Product within two years following the obtaining of its marketing approval in a country of the Territory, or any other equivalent authorization, or
		

		
			 
		

		
			
		

		
			

		 

		

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			(iv)       if Licensee and/or its Sublicensees (including multiple tiers Sublicensees) has not put a Product into commercial use and is not keeping Products reasonably available to the public within twelve (12) years from the Effective Date.
		

		
			 
		

		
			For clarification only a case of Force Majeure (as defined under Article 9.8) should be considered as an involuntary interruptions of Development Activities.
		

		
			 
		

		
			3.7 Licensee shall comply with all applicable laws and regulations in connection with its activities pursuant to this Agreement.
		

		
			 
		

		
			3.8 More specifically, Licensee undertakes to use commercially reasonable efforts to obtain the regulatory approvals required prior to the introduction of Products into the commercial market in the countries in which Licensee contemplates to sell the Products.
		

		
			 
		

		
			Licensee shall be responsible (i) for obtaining and maintaining in its own name and at its sole expense, or in the name and at the expense of any person it shall designate, the registrations and marketing authorizations of the Products in the Territory, and (ii) for the compliance with local laws.
		

		
			 
		

		
			3.9 In the context of clinical trials carried out by or on behalf of Licensee, Licensee undertakes to comply with all applicable laws and regulations and, for clinical trials conducted in France, to comply with the provisions of the French Public Health Code as to the protection of persons involved in biomedical research. Licensee shall guarantee and hold harmless each of Inserm Transfert and the Co-Owners of any action initiated by a third party in the context of such trials.
		

		
			 
		

		
			3.10 Licensee shall be free to conduct its promotion, manufacturing and distribution policy, provided it has obtained the prior approval of the Co-Owners and Inserm Transfert for any use of their names, pursuant to Article 7.6.
		

		
			 
		

		
			3.11 Licensee shall keep Inserm Transfert regularly informed of the Development Activities’ progress. To that end, Licensee shall provide Inserm Transfert, within sixty (60) days from December 31 of each calendar year, with a written annual report with a summary of the progress of its Products development as well as the commercialization efforts, in compliance with the Development Plan. Such progress reports shall include, among other things, the following topics: summary of work completed, summary of work in progress, updated schedule of anticipated milestones achievements and regulatory approvals, manufacturing and sublicensing efforts and commercialization plan for the launch of the Products. In case of termination of this Agreement, Licensee shall provide Inserm Transfert with a last progress report, within sixty (60) days following termination.
		

		
			 
		

		
			4.
		

		
			FINANCIAL CONDITIONS AND REPORTS
		

		
			 
		

		
			
		

		
			

		 

		

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			4.1 In consideration for the license rights granted under the Agreement, Licensee undertakes:
		

		
			 
		

		
			- to exercise commercially reasonable efforts to engage the necessary funds for the proper performance of the Development Activities, it being specified that it is for Licensee to define the means to be allocated to the Development Activities, and
		

		
			 
		

		
			- to be in charge for the payment of all patent expenses related to the Patent Rights incurred prior to and after the Effective Date, as detailed under the Agreement, and
		

		
			 
		

		
			- to pay Inserm Transfert royalties on direct and indirect exploitation of the licensed technology, as well as milestone payments.
		

		
			 
		

		
			4.2 Patent Expenses.
		

		
			 
		

		
			For purposes of this Article 4.2 “filing, prosecution, extension, maintenance and defense of patents” shall be deemed to include, without limitation, the preparation and filing of applications, granting, examination, conduct of interferences and/or oppositions and/or requests for re-examinations, validations, reissues, addition certificates, continuations, continuations in part of patents.
		

		
			 
		

		
			The out-of-pocket expenses relating to the filing, prosecution, extension, maintenance and defense of the Patent Rights are hereafter referred to as “IP Costs”.
		

		
			 
		

		
			Licensee reimburses all IP Costs incurred by the Co-Owners and/or Inserm Transfert prior to the Effective Date (the “Past IP Costs”), which reimbursement is demandable and due as at the Effective Date.
		

		
			 
		

		
			Inserm Transfert shall provide a summary statement of the Past IP Costs within two (2) months from the Effective Date, together with justifying documentation related thereto. Licensee shall reimburse such Past IP Costs within thirty (30) days of receipt of an invoice by Inserm Transfert for a maximum of ****
		

		
			 
		

		
			As of the Effective Date, Licensee shall be in charge of all IP Costs, in France and abroad, and Inserm Transfert shall instruct the patent agent(s) in charge of the Patent Rights or the company in charge of managing annual maintenance fees for the Patent Rights, to directly invoice Licensee for said IP Costs.
		

		
			 
		

		
			IP Costs due from the Licensee pursuant to the Agreement are neither reimbursable nor creditable against any other payment due under the Agreement.
		

		
			 
		

		
			4.3 Lump sum payments.
		

		
			 
		

		
			4.3.1.   Milestone Payments. In partial consideration of the rights and license granted by Inserm Transfert to Licensee herunder, Licensee agrees to make the following payments to Inserm Transfert upon the completion of the milestone event specified below by Licensee and/or its Sublicensee(s) and/or its (their) Affiliates and/or by a subcontractor on behalf of Licensee and/or its Sublicensee(s) and/or its (their) Affiliates:
		

		
			 
		

		
			
		

		

		 

		

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						MILESTONE

					
					
						AMOUNT (excl. taxes)

					
						 

				
	
					
						Completion of a clinical trial more advanced than the First in Man for a first Product

					
					
						 ****€ (**** euros)

					
						 

					
						 

				
	
					
						First marketing authorization or any foreign equivalent for a first Product

					
						 

					
						 

					
					
						 ****€ (**** euros)

					
						 

					
						 

				

		
			 
		

		
			 
		

		
			Notwithstanding Article 3.11, Licensee shall notify Inserm Transfert in writing of the occurrence of the above milestone within thirty (30) days of its occurrence. It is understood and agreed that the amounts specified under this Article 4.3 shall be payable within thirty (30) days after sending of a corresponding invoice by Inserm Transfert.
		

		
			 
		

		
			4.4 Exploitation Royalties.
		

		
			 
		

		
			4.4.1    Royalties on Net Sales
		

		
			 
		

		
			In further consideration of the rights and license granted under this Agreement, Licensee shall pay to Inserm Transfert a running royalty on Net Sales of Products, by Licensee and/or its Sublicensee(s) and/or its (their) Affiliates in the Territory according to the following royalty rates:
		

		
			 
		

		
			-     **** (****%) of Net Sales for the part of aggregate annual Net Sales in the European Union (i.e. including all indications) during applicable year which are below **** Euros (**** €), and.
		

		
			 
		

		
			-     **** (****%) of Net Sales for the part of aggregate annual Net Sales in the European Union (i.e. including all indications) during applicable year which are above **** euros (**** €) and below **** Euros (**** €), and
		

		
			 
		

		
			-     **** (****%) of Net Sales for the part of aggregate annual Net Sales in the European Union (i.e. including all indications) during applicable year which are above **** euros (**** €)
		

		
			 
		

		
			-     **** (****%) of Net Sales for the part of aggregate Net Sales outside the European Union (i.e. including all indications) during applicable year
		

		
			 
		

		
			
		

		
			

		 

		

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			If (i) a Product is not covered by at least one claim of a pending or issued Patent Rights (which has not been definitively held invalid) in the country of the Territory where it is sold, and (ii) there is no exclusive commercialization right granted by a regulatory agency to such Product as orphan drug, then the royalty rate mentioned under 4.4.1 above will be reduced by **** for the part of Net Sales of such Product made in said country.
		

		
			 
		

		
			Notwithstanding all deductions provided for under the Agreement, the royalty rate on Net Sales of Products by Licensee or its Sublicensee(s) or its (their) Affiliates during the applicable calendar year shall not be less than **** (**** %) of Net Sales of Products.
		

		
			 
		

		
			If a Product is not covered by at least one claim of a pending or issued Patent Rights (which has not been definitively held invalid (with no appeal possible) in the country of the Territory where it is sold and (i) if Licensee’s, Licensee’s Affiliates, Sublicensee’s, Sublicensee’s Affiliates aggregate total Net Sales of said Product in said country of the Territory have been reduced by more than **** percent (****%) compare to the preceding applicable year and (ii) such reduction is only attributable to the presence of a generic product of said Product marketed by a third industrial company on said country of the Territory, then no royalty on Net Sales of said Product in said country of the Territory shall be due by Licensee for the applicable year. The burden of proof of establishing that such reduction is only attributable to the marketing of a generic product lies on Licensee.
		

		
			 
		

		
			4.5 Payments
		

		
			 
		

		
			4.5.1    Licensee shall provide Inserm Transfert with annual written revenue reports (“Revenue Reports”) by 31 March of each calendar year, which Revenue Reports shall be certified as true and accurate by an independent auditor. Such reports shall include, for the preceding calendar year:
		

		
			 
		

		
			-     a reference to the present Agreement,
		

		
			 
		

		
			-     the number, description, and aggregate Net Sales for each Product,
		

		
			 
		

		
			-     the total amount and description of applicable deductions pursuant to the Net Sales definition,
		

		
			 
		

		
			-     the number, description, and aggregate sales of Products by Sublicensee (including multiple tiers Sublicensees) and of Sublicense Revenues for each Product,
		

		
			 
		

		
			-     revenues arising from assignment/transfer of the Agreement,
		

		
			 
		

		
			-     royalty rates applied,
		

		
			 
		

		
			-     detailed total amount due to Inserm Transfert.
		

		
			 
		

		
			The payments due for the applicable calendar year shall be made within thirty (30) days following issuance of a corresponding invoice by Inserm Transfert after acceptance of the Revenue Report. Payments shall be made with reference to the invoice number and
		

		
			
		

		
			

		 

		

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			shall be paid by bank wire transfer to:
		

		
			 
		

		
			Inserm Transfert SA, Recette Générale Finances Paris, 94 rue de Réaumur, 75104 Paris Cedex 02, France
		

		
			 
		

		
			Bank Code: ****
		

		
			 
		

		
			4.5.2 In case of termination or expiration of the Agreement, Licensee shall provide Inserm Transfert with a final Revenue Report within thirty (30) days following termination or expiration of the Agreement.
		

		
			 
		

		
			4.5.3 The above-mentioned amounts will be increased by VAT at the rate in force on the date of the triggering event.
		

		
			 
		

		
			4.5.4 Any payments due which are not paid on the date such payments are due under this Agreement shall bear interest at the rate of three times the legal interest rate in force at the issuance date of the invoice, without prejudice to Inserm Transfert’s right to terminate the Agreement. Late payment penalties will be invoiced separately.
		

		
			 
		

		
			4.5.5 All payments under the Agreement shall be due by Licensee and (i) are non-refundable and non-creditable against any payment hereunder (even in case of early termination) and shall be irrevocably retained by Inserm Transfert, (ii) are due whether the development of the Product is performed by Licensee and/or its Affiliates and/or by a subcontractor on behalf of Licensee and/or its Affiliates and (iii) are due whether the Patent Rights are issued or not. All payments still outstanding at the expiration or termination of this Agreement shall be made by Licensee to Inserm Transfert within thirty (30) days thereof.
		

		
			 
		

		
			4.6 Records; Inspection.
		

		
			 
		

		
			4.6.1    Licensee shall keep and shall cause its Affiliates and Sublicensees to keep specific books of account and records for the purpose of precisely evaluating commercial transactions and of controlling the sums payable to Inserm Transfert under this Agreement. Such books and records shall be kept accessible to Inserm Transfert for at least three (3) years following the provision of the Revenue Report related thereto.
		

		
			 
		

		
			4.6.2    Such books and records will be available for inspection during such three (3) year period by a representative of Inserm Transfert or an independent auditor appointed by Inserm Transfert. Inserm Transfert shall bear the costs and expenses of such inspections, unless a variation or error producing an underpayment in sums payable exceeding **** of the amount paid for the period covered by the inspection is established in the course of any such inspection, in which case, the costs and expenses of such inspection shall be borne by Licensee. Any unpaid amounts that are discovered will be paid by Licensee, together with interest on such unpaid amounts at the rate specified in Article 4.5.4 above.
		

		
			 
		

		
			
		

		
			

		 

		

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			5.
		

		
			PATENTS - INFRINGEMENT
		

		
			 
		

		
			5.1 As of the Effective Date and for as long as this Agreement is effective, Licensee shall manage the filing, prosecution, extension, maintenance and defense of the Patent Rights in the Territory, at its own cost; provided however that Licensee shall notify Inserm Transfert before taking any substantive actions with respect to (i) the choice of proceedings and the scope and content of all patent applications within the Patent Rights; and (ii) content or proposed responses to official actions of national patent offices regarding the prosecution of the Patent Rights, and shall give Inserm Transfert a reasonable opportunity to comment in respect to items (i) and (ii) and shall reasonably consider any comments received from Inserm Transfert. For purposes of this Article 5, “filing, prosecution, extension, maintenance and defense of patents” shall be deemed to include, without limitation, the preparation and filing of applications, granting, examination, conduct of interferences and/or oppositions and/or requests for re-examinations, validations, reissues, addition certificates, continuations, continuations in part of patents.
		

		
			 
		

		
			If Licensee elects not to maintain Patent Rights or not to pursue the filing, prosecution, extension, maintenance and defense of the Patent Rights in a country, Licensee shall promptly notify Inserm Transfert of such election, but in no case later than sixty (60) days prior to any required action relating to the filing, prosecution, extension, maintenance and defense of the Patent Rights. In such event, Inserm Transfert may at its sole discretion, decide to continue the filing, prosecution, extension, maintenance and defense of such patent application or patent in the name of the Co-Owners and at their expense, in such country, whether in France or abroad.
		

		
			 
		

		
			In such a case, Licensee may, at Inserm Transfert’s discretion, have no further right or license thereunder in the concerned countries and/or Patent Rights and Licensee will not be under the obligation to pay any IP Costs for the patent applications or patents concerned. The definition of Patent Rights and/or Territory may be revised accordingly by Inserm Transfert, at its discretion.
		

		
			 
		

		
			In any case, only the Co-Owners may file for a Supplementary Protection Certificate (SPC), at Licensee’s cost, and the Co-Owners agree to do so at the request of the Licensee only if this request does not harm with obtaining the SPC. To that end, Licensee undertakes to inform Inserm Transfert of the grant of a marketing authorization (MA) within one (1) month of such grant and to provide Inserm Transfert with a copy of such MA. The Co-Owners shall then file the SPC application within two (2) months of receipt of the copy of the MA.
		

		
			 
		

		
			5.2 Licensee shall act to the best of the Co-Owners, Inserm Transfert and inventors’ interest in the frame of any action necessary to enforce the Patent Rights, and in particular in the case of an infringement action against a third party infringer or initiated against Licensee.
		

		
			
		

		
			

		 

		

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			5.3 If Inserm Transfert or Licensee comes to believe in good faith that Patent Rights are being infringed by a third party, the Party first having knowledge of such infringement shall promptly notify the other. In any such case, the Parties shall discuss how best to proceed.
		

		
			 
		

		
			If an action is necessary and efficient, the Co-Owners shall have the right, but no obligation, to bring any legal action in their name and at their own expense. The Co-Owners shall retain all damages and costs recovered in connection therewith. In such a case, Licensee will nevertheless retain the right, if applicable, to join any such action initiated by the Co-Owners at its own expense to obtain indemnification for damages which Licensee alone have incurred.
		

		
			 
		

		
			Should Inserm Transfert and the Co-Owners decide not to bring an infringement action and if Licensee is the sole licensee on the Patent Rights, Licensee shall have the right, but no obligation, to prosecute at its own expense any action against third party infringement of the Patent Rights, absent any response or action formulated by Inserm Transfert and/or the Co-Owners within thirty (30) days of its absent any response or action formulated by Inserm Transfert and/or the Co-Owners within thirty (30) days of its after written notice to Inserm Transfert of its intention to do so.
		

		
			 
		

		
			The license granted pursuant to this Agreement expressly includes the rights for Licensee to defend any actions against the Patent Rights, such as action to declare the Patent Rights invalid or non-infringed, the right to sue for infringement of the Patent Rights and/or the right to recover any applicable damages resulting from infringement of the Patent Rights and to pursue any other remedies available, including injunctions, in accordance with article 5.3.
		

		
			 
		

		
			The Parties shall provide each other with the documents and elements necessary to the conduct of the above mentioned actions.
		

		
			 
		

		
			Licensee shall keep Inserm Transfert reasonably appraised of all developments in any action, and will seek the prior approval of Inserm Transfert on any substantive submissions or positions taken in the litigation that might affect the scope, validity or enforceability of the Patent Rights.
		

		
			 
		

		
			If an action initiated by Licensee obliges the Co-Owners to take part in an invalidity action or counterclaim for invalidity of the Patent Rights, Licensee shall pay all the legal costs and expenses, including attorney’s fees, incurred by Inserm Transfert and/or the Co-Owners.
		

		
			 
		

		
			Licensee will not sign with the defendant any settlement or agreement which would limit the scope of the Patent Rights without the prior written approval of Inserm Transfert, which may not be unreasonably delayed or withheld.
		

		
			 
		

		
			Damages and sums received by Licensee in the frame of infringement actions shall be, after deduction of the proceedings costs, considered as Net Sales and subject to the applicable royalty payments.
		

		
			 
		

		
			The Co-Owners shall in any event have the right, but no obligation, to join in the action initiated by Licensee.
		

		
			 
		

		
			
		

		
			

		 

		

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			5.4 Should an infringement action be brought against Licensee as a result of the exploitation of the Patent Rights, Licensee may not claim any compensation to Inserm Transfert and/or the Co-Owners, nor any reimbursement of the sums paid, nor any reductions of the sums due under Article 4 at the time of the final court decision.
		

		
			 
		

		
			6.
		

		
			WARRANTIES – INDEMNIFICATION - INSURANCE
		

		
			 
		

		
			6.1   a) Inserm Transfert and the Co-Owners declare and warrant (i) the material existence of the Patent Rights as at the Effective Date, (ii) that they have the rights to grant licenses in respect of the Patent Rights. Inserm Transfert and the Co-Owners do not offer any other warranties of any kind, express or implied.
		

		
			 
		

		
			b) Inserm Transfert guarantees Licensee against any and all claims from Université d’Evry Val d’Essone whereby the latter would challenge the enforceability or validity of the present Agreement.
		

		
			 
		

		
			6.2 Nothing in the Agreement shall be construed as:
		

		
			 
		

		
			-     Creating a warranty as to the grant, validity or scope of any of any of the Patent Rights in a country of the Territory;
		

		
			 
		

		
			-     Creating a warranty as to the non-violation, past, present or future of any third party patent or right,
		

		
			 
		

		
			-     Creating a warranty as to the safety, the fitness for a particular purpose or the performance of the Patent Rights under the Agreement,
		

		
			 
		

		
			-     Creating a warranty as to the non violation or absence of abusive use by a third party of the Patent Rights.
		

		
			 
		

		
			6.3 Hazards, risks and perils related to the performance of the Agreement and potential legal defects contained in one or more Patent Rights rest upon the sole Licensee who accepts them. Therefore, in case of non-grant, or cancellation of one or more of the Patent Rights, of dependence of the said Patent Rights upon a prior patent right, in the event that the Products, because of the use of the Patent Rights were declared as infringing or breaching third parties rights according to a definitive court ruling; the Co-Owners and/or Inserm Transfert will not be required to reimburse any sum already owed nor to decrease of the sums owed until the definitive court ruling, nor to pay potential damages to Licensee for the compensation of the damage caused by the said non-grant, cancellation, dependence, infringement or breach of third parties rights.
		

		
			 
		

		
			6.4 Licensee shall guarantee Inserm Transfert, the Co-Owners and their staff members, against any and all claims alleging personal injury or property damages arising from possession or use of the Patent Rights and the manufacture or marketing of Products by Licensee, its Affiliates or
		

		
			 
		

		
			
		

		
			

		 

		

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			its Sublicensees. Licensee renounces to bring any action against Inserm Transfert and/or the Co-owners in the case these complaints, requests, claims or actions are brought against Licensee or its Affiliates or its Sublicensee by third parties. Licensee shall not enter into any settlement agreement stating any fault on behalf of Inserm Transfert and/or the Co-Owners or which may otherwise adversely affect Inserm Transfert and/or the Co-Owners without obtaining their prior consent, which shall not be unreasonably withheld.
		

		
			 
		

		
			Licensee undertakes to request from its Affiliates and its Sublicensees the same commitment as that taken by Licensee in this present article; this obligation shall clearly appear in all sub-license agreements.
		

		
			 
		

		
			6.5 Licensee shall ensure that itself, its Affiliates and Sublicensees have an adequate liability insurance policy with a level of coverage consistent in order to cover their liability under the exercise of the present license (and especially under any clinical trial) and shall be able to prove it upon request of Inserm Transfert.
		

		
			 
		

		
			6.6 Licensee, its Affiliates and Sublicensees will be solely responsible for ensuring that the Products are in compliance with all applicable laws and regulations. Licensee, its Affiliates and Sublicensees will not call for the warranty from Inserm Transfert and/or the Co-Owners and will be solely responsible towards their customers and/or any third party for the quality and performance of the Products.
		

		
			 
		

		
			7.
		

		
			CONFIDENTIALITY
		

		
			 
		

		
			7.1 Each Party undertakes to maintain confidential and not to pass on or disclose to anyone without a written authorization of the other Party, any information of any kind or of any form that the other Party may become aware of (in particular but not limited to all documents, and/or software data, and/or materials, samples, models, methods, descriptions, processes, applications, and or patentable or non-patentable knowledge) upon the performance the Agreement and notably any confidential information related to the Development Activities, the Patent Rights and the Products that it could receive in the framework of the performance of the Agreement, including without limitation any information exchanged in the negotiation of this Agreement (hereinafter “Information”).
		

		
			 
		

		
			7.2  However, the following is not considered as confidential, Information as to which the receiving Party can prove:
		

		
			- that it is disclosed or made available to the public further to a common agreement between the Parties, or it is disclosed by the Party to which it belongs ;
		

		
			- that it was in the public domain at the time of the disclosure or it became publicly known other than through an act or mistake of the receiving Party ;
		

		
			- that it was lawfully provided from a third party having the right to dispose of such information;
		

		
			-that it was already in the possession of the receiving Party at the time of the disclosure
		

		
			 
		

		
			
		

		
			

		 

		

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			by the disclosing Party or was independently developed by its agents or employees without reliance on the Information received,
		

		
			- that it was disclosed by virtue of mandatory law or regulation, or according to a definitive court ruling or arbitration award, so as to be in compliance with the regulations in force.
		

		
			Nevertheless, in those last cases, the liability of the Party being compelled to disclose Information could be triggered if one of the following conditions has not been respected:
		

		
			it shall previously inform in writing the disclosing Party of the obligation to disclose, in such a way that said Party has enough time to oppose it or minimize its scope, as necessary;
		

		
			it shall limit the disclosure to what is strictly necessary in order to fulfill its obligations.
		

		
			 
		

		
			7.3  It is expressly agreed between the Parties that the disclosure by the Parties between them of Information under the Agreement, cannot be, in any case, interpreted as giving in an express or implied way to the receiving Party any right (according to a license or by any other mean) on such Information, other than the right expressly granted under the Agreement.
		

		
			 
		

		
			In any case, the burden of proof that Information is not confidential rests upon the Party which has received it.
		

		
			 
		

		
			7.4  Licensee shall have the right to provide Information to third parties, including its Affiliates and its Sublicensees, to the extent that the disclosure of such Information is useful or necessary to the Licensee for the exploitation of the license rights granted hereunder provided that the third Parties to which Information is disclosed are bound by an obligation of confidentiality similar to the one contained hereinabove.
		

		
			 
		

		
			7.5  The Parties undertake to take all reasonably required measures in order to comply with their obligations under the present Article 7 by their personnel and any person in the service of the Parties for any purpose whatsoever. Licensee shall include similar confidential obligations in the potential sublicense agreements that it may grant to Sublicensees.
		

		
			 
		

		
			7.6  Licensee undertakes, if requested by one or more Co-Owners, to affix on promotional material and/or on the packaging of the Products the mention “license [name of relevant Co-Owners]” or any other equivalent mention previously agreed to the Co-Owners. Any use by Licensee of the name of Inserm Transfert, Co-Owners or one of their employees, written or spoken, notably promotional, whatever the support used (video, poster, press release, press pack...) shall obtain the prior approval from the concerned person. This provision will remain in force notwithstanding the expiration or the termination of the present Agreement.
		

		
			 
		

		
			7.7  Inserm Transfert and the Co-Owners acknowledge that Licensee, its Affiliates or Sublicensees may have to disclose this Agreement and/or the existence thereof in accordance with SEC rules, or any other legislation governing publicly traded companies; where required, as advised by external legal counsel of the party concerned, such party shall have the right to file a redacted – or if the requirements specify that the Agreement shall not be redacted, a non-
		

		
			
		

		
			

		 

		

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			redacted copy – of the Agreement to a public source indicated by such legislation.
		

		
			 
		

		
			7.8  The present obligation of confidentiality will remain in force for the duration of the Agreement and shall survive the expiration or termination of the Agreement, whatever the reason, for ten (10) years after the expiration or termination of the Agreement.
		

		
			 
		

		
			8
		

		
			TERMINATION OF THE AGREEMENT
		

		
			 
		

		
			8.1  The present Agreement may be terminated ipso jure by one of the Parties (or in case of breach by Licensee, be converted into a non-exclusive license with respect to the Patents Rights at the discretion of Inserm Transfert) in case the other Party is in breach of any provision of this Agreement, and especially under Article 4, and the breach has not been remedied within sixty (60) days after receipt of written notice specifying the breach.
		

		
			 
		

		
			8.2  Licensee shall quickly inform Inserm Transfert in the event that Licensee is in situation of cessation of payments. In case Licensee becomes the subject of voluntary or involuntary winding-up proceedings or judicial recovery, Licensee shall quickly inform in writing Inserm Transfert. Inserm Transfert may terminate the Agreement ipso jure by written notification to Licensee, subject to the application of Articles L.622-13 and L.641-10 of the French Commercial Code. The termination of the Agreement will enter into force on the day Licensee receives the written notification.
		

		
			 
		

		
			8.3  The present Agreement may be terminated by Inserm Tranfert or may be converted into a non-exclusive license as regards to the Patent Rights and at the discretion of Inserm Transfert, in the cases provided for in Articles 3.5 and/or 3.6 of the Agreement.
		

		
			 
		

		
			8.4  In case of termination of the Agreement, Licensee undertakes not to exploit the Patent Rights or let them be exploited whether directly or indirectly until their expiration.
		

		
			 
		

		
			8.5  In the event of termination, Licensee, its Affiliates and Sublicensees shall have the right to sell any existing inventory of Products in the Territory for a maximum of six (6) months following any such termination; provided, however, that Licensee (i) shall provide Inserm Transfert with a Products inventory statement at the termination date and (ii) shall have fully complied and will fully comply, for the further disposal of Products, with the financial provisions of Article 4 hereof.
		

		
			 
		

		
			8.6  Moreover, in case of termination or expiration of the Agreement and under Inserm Transfert instructions, Licensee undertakes to return or destroy all Information, materials and documents received from Inserm Transfert, it being understood that Licensee may nevertheless keep a copy of the Information in secured files for archiving purposes only.
		

		
			 
		

		
			8.7  In the event that this Agreement is terminated and a Sublicense Agreement has been granted under this Agreement, Inserm Transfert and Co-Owners shall respect the rights obtained by any such Sublicensee, and this Agreement may become an agreement between Inserm
		

		
			
		

		
			

		 

		

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			Transfert and Co-Owners and any such Sublicensees subject to the Sublicensee(s) agreeing to be bound under this entire Agreement, and provided that that the sublicensee agreement has been signed in accordance with the provision of Articles 1.2 of the Agreement.
		

		
			 
		

		
			8.8  More generally, the provisions of Articles 6, 7, 8.5, 9 and 10 shall survive the expiration or the termination of the Agreement.
		

		
			 
		

		
			9
		

		
			MISCELLANEOUS
		

		
			 
		

		
			9.1 Inalienability
		

		
			 
		

		
			The Agreement is concluded intuitu personae and shall not be assigned or transferred or continue for any reason without Inserm Transfert’s prior written and express approval, including any transfer or continuation according to a legal provision or an imperative regulation, a recovery or a winding-up by Court, or under any other decision or injunction, purchase, merger, transfer, division, lease or any other disposition of all or practically all assets or activities of Licensee to which the Agreement relates.
		

		
			 
		

		
			The Agreement shall continue in case of direct or indirect change of Control by Licensee - “Control” shall mean the ownership of more than fifty percent (50%) of the voting rights or of the rights to direct the management and policies of an entity.- or of total transmission of the assets and liabilities of Licensee, except if (i) such continuance conflicts with the public order/ethical obligations of Inserm Transfert and/or the Co-Owners and/or (ii) this action tarnishes the image of Inserm Transfert and/or the Co-Owners and/or (iii) the Co-Owners and/or Inserm Transfert are currently involved or have been involved in a litigation with beneficiary within the three (3) years prior to the notification from Licensee and can provide written evidence of such litigation. Inserm Transfert may terminate the license for one of the reasons described above within twenty-one (21) days following the notification by Licensee announcing the planned change of Control or the total transmission of assets and liabilities. In the absence of reply or objection of Inserm Transfert in the said period, the Agreement shall continue.
		

		
			 
		

		
			Notwithstanding the above, the Agreement may be freely assigned or transferred to Affiliates, or the rights and obligations of Licensee may be freely delegated to Affiliates, upon prior information of Inserm Transfert and provided that such assignment / transfer / delegation (i) does not conflict the public order / ethical obligations of Inserm Transfert and/or the Co-Owners and/or (ii) does not tarnish the image of Inserm Transfert and/or the Co-Owners and/or that (iii) the Co-Owners and/or Inserm Transfert are not currently involved or have not been involved in a litigation with the Affiliate within the three (3) years prior to the notification from Licensee. In case of delegation to its Affiliates, Licensee shall remain responsible towards the other Parties for the performance by its Affiliates of all the obligations binding upon Licensee under the present Agreement.
		

		
			 
		

		
			It is hereby agreed that any company to which the rights and obligations of Licensee have been assigned, transferred or delegated shall be subject to the same obligations as that binding upon Licensee under the present Agreement, unless that the new parties agree otherwise.
		

		
			 
		

		
			
		

		
			

		 

		

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			Any change of the terms and conditions of the present Agreement which would be agreed and would occur consequently to the said transfer/assignment, for instance the name and the address of the assignee, shall be stipulated in writing and be inserted as an amendment to the present Agreement at the time of the said assignment or transfer.
		

		
			 
		

		
			9.2. Independent Contractors
		

		
			 
		

		
			The present Agreement shall not in any case be interpreted as creating an association or a de facto partnership between the Parties, each of them to be considered as an independent co-contracting party.
		

		
			 
		

		
			9.3 Entirety of the Agreement
		

		
			 
		

		
			The Agreement puts to an end and replaces any previous agreement, written or spoken, between the Parties on the same subject matter and constitutes the entire agreement between the Parties relating to its subject matter.
		

		
			 
		

		
			Any addition or modification of the terms of the Agreement shall be acknowledged by an amendment to the Agreement.
		

		
			 
		

		
			9.4 Communications
		

		
			 
		

		
			Any communication or notification to the attention of the Parties shall be done by registered letter with acknowledgment of receipt to the address indicated below, for as long as the Parties have not been notified by a change of address in writing.
		

		
			 
		

		
			To Inserm Transfert:
		

		
			Inserm Transfert SA
		

		
			7 rue Watt
		

		
			75013 PARIS
		

		
			 
		

		
			To Licensee :
		

		
			ProQR Therapeutics IV B.V.
		

		
			Attn. Sarah Hafith, VP Innovation BD
		

		
			Zernikedreef 9
		

		
			2333 CK Leiden
		

		
			The Netherlands
		

		
			 
		

		
			With copy to the Legal Department
		

		
			Zernikedreef 9
		

		
			2333 CK Leiden
		

		
			The Netherlands
		

		
			****
		

		
			 
		

		
			Day to day communications may be done by any written means.
		

		
			 
		

		
			
		

		
			

		 

		

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			9.5 Declaration or public communication
		

		
			 
		

		
			Any declaration or public communication regarding the signature of the present Agreement or its content shall only be done only with the consent of all Parties.
		

		
			 
		

		
			9.6 Waiver of rights
		

		
			 
		

		
			In case of a breach by one or the other Party of any of its obligations under the Agreement, if a Party fails to enforce its rights, the non exercise of its rights shall not be interpreted as a waiver to exercise its rights in the future or in case of a new similar breach of any obligation by the breaching Party resulting from the present Agreement.
		

		
			 
		

		
			9.7 Registration
		

		
			 
		

		
			Licensee shall assume, at its own costs and receive all powers to carry out any registration formalities of the present Agreement, in particular any tax registration and registration on the relevant national patent registries in the countries of the Territory subject of the present license.
		

		
			 
		

		
			9.8 Force Majeure
		

		
			 
		

		
			Each Party shall be excused not to fulfill its obligation and shall neither be responsible nor accountable for damages towards the other Party(ies), if the non performance is due to a force majeure event, such as the disruption of services in particular resulting from strikes, resignation or any event outside of its control. The Party which cannot perform its contractual obligations as a result of a force majeure event shall immediately notify the other Party(ies) in writing. Should such breach or the late in the performance resulting from a force majeure event last for more than three (3) months after notification, the other Party(ies) may terminate the Agreement at any time upon notification to the other Party.
		

		
			 
		

		
			9.9 Severability
		

		
			 
		

		
			If one or several provisions of the Agreement shall be found invalid or declared as such under a treaty, a law, or a regulation or by a final decision of a court having jurisdiction, the other provisions shall keep all their force and scope. The Parties shall immediately make the necessary changes by respecting, as far as possible, the agreement existing at the time of signature of the Agreement.
		

		
			 
		

		
			10.
		

		
			GOVERNING LAW AND DISPUTE RESOLUTION
		

		
			 
		

		
			The agreement shall be governed by French Law.
		

		
			 
		

		
			Any dispute or controversy relating to the Agreement that cannot otherwise be settled by them within three (3) months following the notification by the more diligent Party will be settled by a French court of competent jurisdiction located in Paris.
		

		
			 
		

		
			Drawn up in Paris and Leiden,
		

		
			
		

		
			

		 

		

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			In three (3) originals
		

		
			 
		

			
					
						Inserm Transfert

					
					
						Licensee

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Chairman of the Management Board

					
					
						 

				
	
					
						Pascale AUGE

					
					
						 

				

		
			 
		

		
			 
		

			
					
						AP-HP

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Florence FAVREL-FEUILLADE

					
					
						 

				
	
					
						Director of the Clinical Research and Innovation Department

					
					
						 

				

		
			
		

		
			

		 

		

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			Appendix 1
		

		
			 
		

		
			DEVELOPMENT PLAN
		

		
			 
		

		
			- Initiation of a clinical trial more advanced than the First in Man for a first Product, such as a phase IIb or pivotal phase : ****
		

		
			 
		

		
			- Initiation of Phase phase III for a first Product: ****– if required for NDA submission
		

		
			 
		

		
			- NDA or equivalent submission for a first Product: ****if phase III required (****if phase III not required)
		

		
			 
		

		
			- NDA or equivalent obtaining for a first Product: ****if phase III required (****if phase III not required)
		

		
			 
		

		
			- First commercialization of a first Product: ****if phase III required (****if phase III not required)
		

		 

		

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