Document:

avxs_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			AVEXIS, INC.
		

		
			 
		

		
			EMPLOYMENT AGREEMENT
		

		
			 
		

		
			This Employment Agreement (the “Agreement”) is entered into as of October 19, 2017, by and between Phillip B. Donenberg (the “Executive”) and AveXis, Inc. (the “Company”).
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			A. The Company desires the association and services of Executive and his skills, abilities, background and knowledge, and is willing to engage Executive’s services on the terms and conditions set forth in this Agreement.
		

		
			 
		

		
			B. Executive desires to be under employ of the Company, and is willing to accept such employment on the terms and conditions set forth in this Agreement.
		

		
			 
		

		
			C. This Agreement supersedes any and all prior and contemporaneous oral or written employment agreements or arrangements between Executive and the Company or any predecessor thereof.
		

		
			 
		

		
			AGREEMENT
		

		
			 
		

		
			In consideration of the foregoing, the parties agree as follows:
		

		
			 
		

		
			1.   EMPLOYMENT BY THE COMPANY.
		

		
			 
		

		
			1.1  Position; Duties; Location. Subject to the terms and conditions of this Agreement, Executive shall hold the position of Senior Vice President, Chief Financial Officer.  Executive’s activities shall be as directed by the Company’s President and Chief Executive Officer and shall have such duties, authorities and responsibilities commensurate with the duties, authorities and responsibilities of persons in similar capacities in similarly-sized companies. Executive shall devote Executive’s full business energies, interest, abilities and productive time to the proper and efficient performance of Executive’s duties under this Agreement.  Executive shall report to the President and Chief Executive Officer and shall work from our Bannockburn office and the Company reserves the right to require frequent business travel.
		

		
			 
		

		
			1.2  Policies and Procedures. The employment relationship between the parties shall be governed by this Agreement and by the policies and practices established by the Company and/or the Company’s Board of Directors (“Board”). In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices, this Agreement shall control.
		

		
			 
		

		
			1.3  Exclusive Employment; Agreement not to Participate in Company’s Competitors. Except with the prior written consent of the Board, Executive will not during employment with the Company undertake or engage in any other employment, occupation or business enterprise. During Executive’s employment, Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company, its business, or prospects, financial or otherwise, or in any company, person, or entity that is, directly or indirectly, in competition with the business of the Company. Ownership by Executive in professionally managed funds over which the Executive does not have control or discretion in investment decisions, or, as a passive investment, of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock listed on a national securities exchange or publicly traded on a national securities exchange or in the over-the-counter market shall not constitute a breach of this Section. 
		

		
			 
		

		
			1.4  Start Date. Executive’s employment with the Company commenced on September 6, 2016, (“Start Date”) and his employment as the Company’s Senior Vice President, Chief Financial Officer commenced on October 19, 2017 (the “CFO Start Date”).
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			2.   AT-WILL EMPLOYMENT.
		

		
			 
		

		
			Executive’s employment relationship with the Company is, and shall at all times remain, at-will. This means that either Executive or the Company may terminate the employment relationship at any time, for any reason or for no reason, with or without Cause or advance notice.
		

		
			 
		

		
			3.   COMPENSATION AND BENEFITS.
		

		
			 
		

		
			3.1  Salary.  The Company shall pay Executive a base salary at the annualized rate of $350,000.00 (the “Base Salary”), less payroll deductions and all required withholdings, payable in regular periodic payments in accordance with the Company’s normal payroll practices. The Base Salary may be adjusted from time to time in the Company’s discretion.
		

		
			 
		

		
			3.2  Performance Bonus.  Each calendar year, Executive will be eligible to earn an additional cash bonus with a target bonus of forty percent (40%) of the Base Salary, based upon the Company’s assessment of Executive’s individual performance and the Company’s attainment of 100% of the targeted goals as set by the Board in its sole discretion.  Except as otherwise provided below in Section 5.3, in order to earn and receive the bonus, Executive must remain employed by the Company through and including the bonus payout date, which will be on or before March 15 of the year following the applicable calendar year for which the performance bonus is being measured.  The determination of whether Executive has earned a bonus and the amount thereof shall be determined by the Company (and/or a committee thereof) in its sole and absolute discretion.  The Company reserves the right to modify the bonus criteria and targets from year to year.
		

		
			 
		

		
			3.3 Equity.
		

		
			 
		

		
			(a)  Initial Option Grant.  On Executive’s Start Date, Executive was granted an option (the “Option Shares”) to purchase 20,000 shares of Common Stock of the Company, par value $0.0001 per share (“Common Stock”), pursuant to the Company’s 2016 Incentive Plan (the “Plan”).  The option agreement relating to the Option Shares included the following terms:  twenty-five percent (25%) of the Option Shares vested on the first anniversary of the Start Date and the remaining 75% shall vest in equal amounts at the end of each calendar month for the 36-month period following the first anniversary of the Start Date subject to the potential vesting acceleration benefit upon termination without Cause or resignation for Good Reason in connection with a Change in Control as described in Section 5.3 herein.
		

		
			 
		

		
			For purposes hereof, “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events with all capitalized terms in this Section 3.3(a) having the meanings set forth in Exhibit 2 hereto:
		

		
			 
		

		
			(i)   any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.  Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account of the acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities, (C) on account of the acquisition of securities of the Company by any individual who is, on the IPO Date, either an executive officer or a Director (either, an “IPO Investor”) and/or any entity in which an IPO Investor has a direct or indirect interest (whether in the form of voting rights or participation in profits or capital contributions) of more than 50% (collectively, the “IPO Entities”) or on account of the IPO Entities continuing to hold shares that come to represent more than 50% of the combined voting power of the Company’s then outstanding securities as a result of the conversion of any class of the Company’s securities into another class of the Company’s securities having a different number of votes per share pursuant to the conversion provisions set forth in the Company’s Amended and Restated Certificate of Incorporation; or (D) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting 
		

		
			
		

		
			

		 

 

		

		
			securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control will be deemed to occur;
		

		
			 
		

		
			(ii)  there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction; provided, however, that a merger, consolidation or similar transaction will not constitute a Change in Control under this prong of the definition if the outstanding voting securities representing more than 50% of the combined voting power of the surviving Entity or its parent are owned by the IPO Entities;
		

		
			 
		

		
			(iii) there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than 50% of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition; provided, however, that a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries will not constitute a Change in Control under this prong of the definition if the outstanding voting securities representing more than 50% of the combined voting power of the acquiring Entity or its parent are owned by the IPO Entities;
		

		
			 
		

		
			(iv) the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company will otherwise occur, except for a liquidation into a parent corporation; or
		

		
			 
		

		
			(v)  individuals who, on the date the Plan is adopted by the Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board;  provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member will, for purposes of this Plan, be considered as a member of the Incumbent Board.
		

		
			 
		

		
			Notwithstanding the foregoing definition, the term Change in Control will not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. 
		

		
			 
		

		
			(b)  Additional Option Grants.  On the date of this Agreement, Executive is granted an additional option to purchase 10,000 shares of Common Stock pursuant to the Plan.  Executive may be eligible to receive additional option or equity grants (“Additional Option Grants”) from time to time as shall be determined by the Compensation Committee of the Board (the “Compensation Committee”) in its sole discretion, and subject to such vesting, exercisability, and other provisions as the Compensation Committee may determine in its discretion.  All such Additional Option Grants shall be governed in all respects by the terms of the applicable stock option or equity award agreement, grant notice and plan document (“Additional Option Documents”), and the potential vesting acceleration benefit described in Section 5.3.
		

		
			 
		

		
			3.4  Standard Company Benefits. Executive shall, in accordance with Company policy and the terms of the applicable plan documents, be eligible to participate in benefits under any benefit plan or arrangement that may be in effect from time to time and made available to similarly situated Company employees. The Company reserves the right to modify, add or eliminate benefits from time to time.
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			3.5  Vacation. Executive shall be eligible to accrue vacation time at the rate of fifteen (15) days per year in accordance with the Company’s vacation policy. Vacation is to be taken at such intervals as shall be appropriate and consistent with the proper performance of Executive’s duties hereunder and as and to the extent permitted under the Company’s vacation policy.
		

		
			 
		

		
			3.6  Expense Reimbursements. The Company will reimburse Executive for all reasonable business expenses Executive incurs in conducting his duties hereunder, pursuant to the Company’s usual expense reimbursement policies.
		

		
			 
		

		
			4.   CONFIDENTIAL INFORMATION AND POST-EMPLOYMENT OBLIGATIONS.
		

		
			 
		

		
			As a condition of employment Executive agrees to execute and abide by the Company’s Proprietary Information, Inventions Assignment, Non-Competition and Non-Solicitation Agreement (“PIIA”), attached hereto as Exhibit 1, which may be amended by the parties from time to time without regard to this Agreement. The PIIA contains provisions that are intended by the parties to survive and do survive termination of this Agreement.  The Company acknowledges that Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (A) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition, in the event that Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information in the court proceeding, if Executive: (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order. 
		

		
			 
		

		
			5.   TERMINATION OF EMPLOYMENT.
		

		
			 
		

		
			5.1  Termination For Cause or Resignation Without Good Reason. If at any time Executive’s employment is terminated by the Company for Cause (defined below), or Executive resigns for any reason other than Good Reason (defined below), the Company shall pay Executive any base salary earned and unused vacation benefits accrued through the date of termination, at the rates then in effect, less standard deductions and withholdings. The Company shall thereafter have no further obligations to Executive, except as may otherwise be required by law.
		

		
			 
		

		
			5.2  Termination Without Cause or Resignation For Good Reason. If at any time Executive’s employment is terminated without Cause or Executive resigns for Good Reason (as both are defined below), then the Company shall pay Executive any earned but unpaid Base Salary and unused vacation benefits accrued through the date of termination (the “Separation Date”), at the rates then in effect, less standard deductions and withholdings. In addition, if Executive furnishes to the Company an executed waiver and release of claims in a form to be provided by the Company, which may include an obligation for Executive to provide reasonable transition assistance (the “Release”) within the time period specified therein, but in no event later than forty-five (45) days following Executive’s Separation Date, and if Executive allows such Release to become effective in accordance with its terms, which must occur no later than sixty (60) days following Executive’s Separation Date, then Executive shall receive the following benefits:
		

		
			 
		

		
			(a)  Salary Continuation. The Company shall continue payment of Executive’s Base Salary as in effect immediately preceding the Separation Date (ignoring any decrease in Base Salary that forms the basis for Good Reason), for a period of twelve (12) months following the Separation Date (the “Severance Period”), provided, however, that any payments otherwise scheduled to be made prior to the effective date of the Release (namely, the date it can no longer be revoked) shall accrue and be paid in the first payroll date that follows such effective date with subsequent payments occurring on each subsequent Company payroll date.  
		

		
			 
		

		
			(b)  COBRA Benefits.  If Executive timely elects continued coverage under COBRA for himself under the Company’s group health plans following the Separation Date, then the Company shall pay the COBRA premiums necessary to continue health insurance coverage for Executive (and Executive’s eligible dependents, if applicable) in effect on the Separation Date (the “COBRA Payments”) until the earliest of: (i) the end of the Severance Period; (ii) the date Executive becomes eligible for substantially equivalent group health insurance coverage in connection with a new employer or self-employment; or (iii) the date Executive ceases to be eligible for COBRA 
		

		
			
		

		
			

		 

 

		

		
			continuation coverage for any reason, including plan termination (such period from the termination date through the earlier of (i)-(iii), the “COBRA Payment Period”).  In the event Executive becomes covered under another employer’s group health plan or otherwise ceases to be eligible for COBRA during the COBRA Payment Period, Executive must immediately notify the Company of such event.  Notwithstanding the foregoing, if at any time the Company determines that its payment of COBRA premiums on Executive’s behalf would result in a violation of applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then in lieu of paying COBRA premiums pursuant to this Paragraph 5.2(b), the Company shall pay Executive on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premium for such month, subject to applicable tax withholding (such amount, the “Special Severance Payment”), such Special Severance Payment to be made without regard to Executive’s payment of COBRA premiums and without regard to the expiration of the COBRA period prior to the end of the COBRA Payment Period
		

		
			 
		

		
			5.3  Termination Without Cause or Resignation For Good Reason Following a Change In Control. If Executive’s employment is terminated by the Company without Cause or Executive resigns for Good Reason (as both are defined below) within three (3) months prior to or twelve (12) months following a Change in Control (as defined above), then the Company shall pay Executive any Base Salary and accrued and unused vacation benefits earned through the date of termination, at the rates then in effect, less standard deductions and withholdings (the “Change in Control Termination Date”).  If Executive furnishes to the Company an executed Release (as defined above) within the time period specified therein, but in no event later than forty-five (45) days following the Change in Control Termination Date and if Executive allows such Release to become effective in accordance with its terms, which must occur no later than sixty (60) days following Executive’s Change in Control Termination Date, then in lieu of the benefits provided to Executive in Section 5.2, Executive shall receive the following benefits: 
		

		
			 
		

		
			(a)  Salary Continuation.  The Company shall continue payment of Executive’s Base Salary as in effect on the Change in Control Termination Date  (ignoring any decrease in Base Salary that forms the basis for Good Reason), for a period of twelve  (12) months following the Change in Control Termination Date on the Company’s regular payroll dates (the “Change in Control Severance Period”); provided, however, that any payments otherwise scheduled to be made prior to the effective date of the Release (namely, the date it can no longer be revoked) shall accrue and be paid in the first payroll date that follows such effective date with subsequent payments occurring on each subsequent Company payroll date.  
		

		
			 
		

		
			(b)  COBRA Benefits.  Executive shall be eligible for the COBRA benefits described in Section 5.2 for a period of twelve (12) months following the Change in Control Termination Date.
		

		
			 
		

		
			(c)  Bonus.  The Company shall pay to Executive a lump sum cash amount equivalent to Executive’s target annual performance bonus for the year in which the Change in Control Termination Date occurs, prorated based on the number of days that Executive was employed during such performance year, divided by the total number of days in such performance year (the “Bonus Severance Payment”).  Executive’s Base Salary as in effect on the Change in Control Termination Date, ignoring any decrease that forms the basis of Executive’s resignation for Good Reason, if applicable, shall be used for calculating Executive’s target annual performance bonus for purposes of the Bonus Severance Payment.  The Bonus Severance Payment will be paid within sixty (60) days of the effective date of the Release (namely, the date it can no longer be revoked) but in no event later than March 15 of the year following the year in which the Change in Control Termination Date occurs. 
		

		
			 
		

		
			(d)  Double Trigger Accelerated Vesting.  Effective as of the later of Executive’s Change in Control Termination Date or the effective date of the Change in Control, the vesting and exercisability of all outstanding stock options and other stock awards covering the Company’s Common Stock that are held by Executive as of immediately prior to the Change in Control Termination Date, to the extent such awards are subject to time-based vesting requirements, shall be accelerated (and lapse, in the case of reacquisition or repurchase rights) in full.  Executive’s stock options and stock awards shall remain outstanding following Executive’s Change in Control Termination Date if and to the extent necessary to give effect to this Section 5.3(d), subject to earlier termination under the terms of the equity plan under which such awards were granted and the original maximum term of the award (without regard to Executive’s termination). 
		

		
			 
		

		
			5.4  Definitions. For purposes of this Agreement, the following terms shall have the following meanings:
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			(a)  “Cause” shall mean the occurrence of any of the following: (i) Executive’s conviction of any felony or any crime involving fraud or dishonesty; (ii) Executive’s participation in a fraud, act of dishonesty or other act of gross misconduct that adversely affect the Company; (iii) conduct by Executive that demonstrates Executive’s gross unfitness to serve; (iv) Executive’s violation of any statutory or fiduciary duty, or duty of loyalty, owed to the Company; (v) Executive’s breach of any material term of any contract between such Executive and the Company, including but not limited to this Agreement and the PIIA; and/or (vi) Executive’s material violation of material Company policy. Whether a termination is for Cause shall be decided by the Board in its sole and exclusive judgment and discretion. Prior to any termination for Cause pursuant to each event listed in (v) and (vi) above, to the extent such event(s) is capable of being cured by Executive, (A) the Company shall give the Executive notice of such event(s), which notice shall specify in reasonable detail the circumstances constituting Cause, and (B) there shall be no Cause with respect to any such event(s) if the Board determines in good faith that such events have been cured by Executive within fifteen (15) days after the delivery of such notice.
		

		
			 
		

		
			(b)  “Good Reason” for Executive to terminate his employment hereunder shall mean the occurrence of any of the following events without Executive’s consent: (i) a material reduction by the Company of Executive’s Base Salary as initially set forth herein or as the same may be increased from time to time, provided, however, that if such reduction occurs in connection with a Company-wide decrease in executive team compensation, such reduction shall not constitute Good Reason; (ii) a material breach of this Agreement by the Company; (iii) the relocation of Executive’s principal place of employment, without Executive’s consent, in a manner that lengthens his one-way commute distance by fifty (50) or more miles from his then-current principal place of employment immediately prior to such relocation; or (iv) a material reduction in Executive’s duties, authority, or responsibilities relative to Executive’s duties, authority, or responsibilities in effect immediately prior to such reduction unless Executive is performing duties and responsibilities for the Company or its successor that are similar to those Executive was performing for the Company immediately prior to such transaction (for example, if the Company becomes a division or unit of a larger entity and Executive is performing duties for such division or unit that are similar to those Executive was performing prior to such transaction but under a different title as Executive had prior to such transaction, there will be no “Good Reason”). Provided, however, that, any such termination by Executive shall only be deemed for Good Reason pursuant to this definition if: (1) Executive gives the Company written notice of his intent to terminate for Good Reason within thirty (30) days following the occurrence of the condition(s) that he believes constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); and (3) Executive voluntarily terminates his employment within thirty (30) days following the end of the Cure Period.
		

		
			 
		

		
			5.5  Effect of Termination. Executive agrees that should his employment be terminated for any reason, he shall be deemed to have resigned from any and all positions with the Company, including, but not limited, to all positions with any and all subsidiaries of the Company.
		

		
			 
		

		
			5.6  Section 409A Compliance. It is intended that any benefits under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A. Severance payments under this Agreement shall not commence unless and until Executive has also incurred a “separation from service,” as such term is defined in Treasury Regulations Section 1.409A-1(h) (“Separation from Service”), unless the Company reasonably determines that such amounts may be provided to Executive without causing Executive to incur adverse personal tax consequences under Section 409A.  Notwithstanding anything to the contrary in this Agreement, if any severance pay or benefits are deferred compensation under Section 409A, and the period during which Executive may sign the Release begins in one calendar year and the first payroll date following the period during which Executive may sign the Release occurs in the following calendar year, then the severance pay or benefit shall not be paid or the first payment shall not occur until the later calendar year. For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)), Executive’s right to receive any installment payments under this Agreement (whether severance payments, if any, or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed by the Company at the time of termination to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i), and if any of the payments set forth herein are deemed to be “deferred compensation,” then 
		

		
			
		

		
			

		 

 

		

		
			to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided prior to the earliest of (i) the expiration of the six-month period measured from the date of termination, (ii) the date of Executive’s death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day following the expiration of such period, all payments deferred pursuant to this paragraph shall be paid in a lump sum, and any remaining payments due shall be paid as otherwise provided herein. No interest shall be due on any amounts so deferred.
		

		
			 
		

		
			5.7  Better After Tax Provision. If any payment or benefit that Executive will or may receive from the Company or otherwise (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment will be equal to the Reduced Amount.  The “Reduced Amount” will be either (x) the largest portion of the 280G Payment that would result in no portion of the 280G Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the 280G Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the 280G Payment may be subject to the Excise Tax.  If a reduction in a 280G Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction will occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for Executive.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”). 
		

		
			 
		

		
			Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the 280G Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, will be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification will preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, 280G Payments that are contingent on future events (e.g., being terminated without Cause), will be reduced (or eliminated) before 280G Payments that are not contingent on future events; and (C) as a third priority, 280G Payments that are “deferred compensation” within the meaning of Section 409A of the Code will be reduced (or eliminated) before 280G Payments that are not “deferred compensation” within the meaning of Section 409A of the Code.
		

		
			 
		

		
			The independent professional firm engaged by the Company for general tax audit purposes as of the day prior to the effective date of the Change in Control will make all determinations required to be made under this Section.  If the firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company will appoint a nationally-recognized independent professional firm to make the determinations required hereunder.  The Company will bear all expenses with respect to the determinations by such firm required to be made hereunder.  The Company will use commercially reasonable efforts to cause the firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to a 280G Payment becomes reasonably likely to occur (if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive.
		

		
			 
		

		
			If Executive receives a 280G Payment for which the Reduced Amount was determined pursuant to clause (x) of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the 280G Payment is subject to the Excise Tax, Executive will promptly return to the Company a sufficient amount of the 280G Payment (after reduction pursuant to clause (x) of the first paragraph of this Section) so that no portion of the remaining 280G Payment is subject to the Excise Tax.  For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of the first paragraph of this Section, Executive will have no obligation to return any portion of the 280G Payment pursuant to the preceding sentence.
		

		
			 
		

		
			6.   GENERAL PROVISIONS.
		

		
			 
		

		
			6.1  Representations and Warranties. Executive represents and warrants that Executive is not 
		

		
			
		

		
			

		 

 

		

		
			restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that Executive’s execution and performance of this Agreement will not violate or breach any other agreements between the Executive and any other person or entity.  Executive acknowledges that nothing in this Agreement shall limit Executive’s right to voluntarily communicate with the Securities Exchange Commission, the Equal Employment Opportunity Commission, United States Department of Labor, the National Labor Relations Board, other federal government agency or similar state or local agency.
		

		
			 
		

		
			6.2  Advertising Waiver. Executive agrees to permit the Company, and persons or other organizations authorized by the Company, to use, publish and distribute advertising or sales promotional literature concerning the products and/or services of the Company in which Executive’s name and/or pictures of Executive appear. Executive hereby waives and releases any claim or right Executive may otherwise have arising out of such use, publication or distribution.
		

		
			 
		

		
			6.3  Miscellaneous. This Agreement, along with the PIIA, constitutes the complete, final and exclusive embodiment of the entire agreement between Executive and the Company with regard to its subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement may not be modified or amended except in a writing signed by both Executive and a duly authorized member of the Board. This Agreement will bind the heirs, personal representatives, successors and assigns of both Executive and the Company, and inure to the benefit of both Executive and the Company, and to his and its heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified so as to be rendered enforceable. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of Illinois as applied to contracts made and to be performed entirely within Illinois. Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach. This Agreement may be executed in counterparts and facsimile signatures will suffice as original signatures.
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						AVEXIS, INC. 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						/s/ Sean P. Nolan

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name:

					
					
						Sean P. Nolan 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						President and Chief Executive Officer 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Accepted and agreed:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Phillip B. Donenberg

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PHILLIP B. DONENBERG

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

 

		

		
			Exhibit 1
		

		
			 
		

		
			PROPRIETARY INFORMATION, INVENTIONS ASSIGNMENT, NON-COMPETITION AND NON-SOLICITATION AGREEMENT
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			Exhibit 2
		

		
			 
		

		
			SCHEDULE OF CAPITALIZED TERMS USED IN SECTION 3.3(A)(I) – (V)
		

		
			 
		

		
			“Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the Securities Act of 1933, as amended.  The Board will have the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition.
		

		
			 
		

		
			“Award” means a stock award or a performance cash award granted pursuant to the Plan.
		

		
			 
		

		
			“Director” means a member of the Board.
		

		
			 
		

		
			“Entity” means a corporation, partnership, limited liability company or other entity.
		

		
			 
		

		
			“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
		

		
			 
		

		
			“Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” will not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the IPO Date, is the Owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities.
		

		
			 
		

		
			“IPO Date” means February 17, 2016, the date of the underwriting agreement between the Company and the underwriter(s) managing the initial public offering of the Common Stock, pursuant to which the Common Stock is priced for the initial public offering.
		

		
			 
		

		
			“Own,” “Owned,” “Owner,” “Ownership” means a person or Entity will be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.
		

		
			 
		

		
			“Participant” means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding stock award pursuant to the Plan.
		

		
			 
		

		
			“Subsidiary” means, with respect to the Company, (i) any corporation of which more than 50% of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation will have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than 50%.Exhibit 10.1

 

PROMISSORY
NOTE SECURED BY DEEDS TO SECURE DEBT

 

		$1,793,633.00	Dekalb, Clayton, Fulton, Newton, and

                                                                                Gwinnett Counties, Georgia

July 28, 2017

 

FOR
VALUE RECEIVED, the undersigned ("Borrower") promises to pay to SILVERGATE
BANK, a California corporation ("Lender"), or order, during regular
business hours at Silvergate Bank, 4250 Executive Square, Suite 300, La Jolla, California 92037-1492, Attention: Commercial RE
Group, or at such other place as Lender may from time to time designate by written notice to Borrower, with sufficient information
to identify the source and application of such payment, the sum of up to One Million Seven Hundred Ninety-Three Thousand Six Hundred
Thirty-Three and No/100 Dollars ($1,793,633.00), together with interest on the balance of outstanding principal from the disbursement
dates thereof at the per annum rate set forth below. All calculations of interest hereunder shall be computed on the basis of a
360 day year for the actual number of days elapsed.

 

1.          
Interest Rate. The outstanding principal balance under this Note
shall bear interest at a per annum rate of [four and one-half percent (4.50%)] (the "Contract Rate").

 

2.          
Monthly Payments of Principal and Interest First Month. Commencing
with the date of the initial disbursement of funds through and including August 4, 2017, in which such disbursement occurs, interest
only shall be payable in advance on the date of this Note at the Contract Rate. Interest for such partial month shall be computed
on the basis of a 360-day year and shall be equal to the sum of a per diem interest charge (for each day the principal balance
hereof is outstanding during such partial month) equal to the product of (a) 1/360 and (b) the Contract Rate and (c) the outstanding
principal balance hereunder for the day in question.

 

2.2    
Monthly Payments. Commencing
on September 5, 2017 and continuing on the fifth day of each of the next calendar months thereafter through and including June
5, 2020, Borrower shall pay to Lender monthly payments of principal and interest in an amount equal to the amount which would be
sufficient to amortize the outstanding principal balance under this Note (as of the date of such payment) at the then effective
Contract Rate over the then remaining portion of an amortization period commencing on August 5, 2017 and ending on August 4, 2042.

 

3.          
Maturity Date. The
entire balance of principal and accrued interest and other amounts then outstanding on this Note are due and payable on July 5,
2020 (the "Maturity Date"). Borrower acknowledges
that such balance will not equal the regular monthly payment specified in Section 2.

 

    	 	1	 

Promissory Note

     

    

 

4.          
Application of Payments. Each
payment hereunder shall be applied when received first to the payment of accrued interest on the principal balance hereof from
time to time remaining unpaid and then to reduce principal and then to amounts payable, if any, into escrow accounts payable under
the Loan Documents for taxes or insurance and then to any unpaid "Past Due Charge" (as defined below); provided, however,
upon the occurrence of an "Event of Default" (as defined below), payments may be applied to any amounts secured by any
of the "Security Instruments" (as defined below) in such order and amounts as is designated by Lender in its sole and
absolute discretion. No such application by Lender shall constitute a cure or waiver of any default by Borrower under the applicable
Security Instrument or under this Note. If notwithstanding the parties' election and agreement that Georgia law governs this Note,
California law is applied to this Note, Borrower hereby waives any rights and benefits, if any, that may arise under or by virtue
of California Civil Code Section 2822(a). Without limitation of the foregoing, in the event of any partial payment hereunder, Lender
shall have the sole right and authority to determine which portion of the indebtedness evidenced hereby any partial payment may
be applied against, if any; provided that, nothing in the foregoing shall impose upon Lender any duty or obligation to accept or
apply any partial payment received by Lender hereunder or under the applicable Security Instrument.

 

5.          
Default: Acceleration. This Note is secured by those certain Deeds to
Secure Debt, Absolute Assignments of Rents and Leases, Security Agreements and Fixture Filings of even date herewith by Borrower
for the benefit of Lender (individually, a "Security Instrument", and collectively,
the "Security Instruments"). Upon the occurrence and during the continuance
of an "Event of Default" (as defined in any of the Security Instruments),
then, or at any time thereafter, the whole of the unpaid principal hereof, together with accrued and outstanding interest and all
other sums required to be paid under this Note or the Security Instruments (including the prepayment premium hereinafter described)
shall, at the election of Lender and with prior notice of such election, become due and payable. Lender's election may be exercised
at any time after any such event, and the acceptance of one or more payments hereon from any person thereafter shall not constitute
a waiver of Lender's election, or of its option to make such election.

 

6.           Past
Due Charge and Past Due Interest Rate. Borrower recognizes and acknowledges that any
default on any payment, or portion thereof, due hereunder or to be made under any of the Security Instruments, will result in
losses and additional expenses to Lender in servicing the indebtedness evidenced hereby, and in losses due to Lender's loss
of the use of funds not timely received. Borrower further acknowledges and agrees that in the event of any such default,
Lender would be entitled to damages for the detriment proximately caused thereby, but that it would be extremely difficult
and impracticable to ascertain the extent of or compute such damages. Therefore,
if for any reason Borrower fails to pay any interest or principal required to be paid under this Note, including any payment
due at maturity or upon acceleration, or fails to pay any amounts due under any of the Security Instruments, within ten (10)
days of when due, Borrower shall pay to Lender, in addition to any such delinquent payment, an amount equal to five percent
(5%) of such delinquent payment ("Past Due Charge"). In
addition, upon the Maturity Date or upon the occurrence and during the continuance of an Event of Default (or upon any
acceleration), interest shall accrue hereunder at the "Past Due Rate" (as defined below). Borrower acknowledges
that the Past Due Charge and interest at the Past Due Rate agreed to hereunder represent the reasonable estimate of those
damages which would be incurred by Lender, and a fair return to Lender for the loss of the use of the funds not timely
received from Borrower on account of a default by Borrower as herein specified, established by Borrower and Lender through
good faith consideration of the facts and circumstances surrounding the transaction contemplated under this Note as of the
date hereof, but that such Past Due Charge and interest at the Past Due Rate are in addition to, and not in lieu of, any
other right or remedy available to Lender. If any applicable law proscribes the imposition of a past due charge in the amount
of the Past Due Charge herein specified, or limits the rate of the additional interest that may be charged to a rate
less than the Past Due Rate herein specified, then the maximum charge or rate permitted by such law shall be charged by
Lender for purposes of this Section. As used herein, the "Past Due Rate" shall be equal to the lesser of (i)
six (6) percentage points over the Contract Rate, or (ii) the maximum rate of interest permitted to be charged
by applicable laws or regulation governing this Note until paid, such additional interest to be compounded annually.

 

    	 	2	 

Promissory Note

     

    

  

7.          
Prepayment. Except
as provided in Section 12 herein, Borrower shall have no right to prepay any principal of this Note except that, so long as no
default or Event of Default exists under this Note or any of the Security Instruments as of the date of such prepayment by Borrower,
Borrower will have the privilege, to prepay the principal of this Note (in whole only and not in part) upon at least thirty (30)
but not more than sixty (60) days advance written notice and subject to the following terms and conditions:

 

7.1.          
Premium. Concurrently with such prepayment, Borrower shall pay all accrued
and unpaid interest under this Note (whether or not then due), all amounts then due under this Note and each of the Security Instruments
and a prepayment premium equal to the following:

 

(1)    
A prepayment premium equal to two percent (2%) of the amount prepaid for a prepayment on or before August 5, 2018; and

 

(2)    
A prepayment premium equal to one percent (1%) of the amount prepaid for prepayments
from and including August 6, 2018 through and including August 5, 2019; with no prepayment premium thereafter.

 

B.
EXCLUSIVE RIGHTS. BORROWER ACKNOWLEDGES AND AGREES THAT BORROWER HAS NO RIGHTS
OF PREPAYMENT OF THIS NOTE, EXCEPT AS PROVIDED ABOVE; AND BORROWER FURTHER AGREES THAT, IF THE MATURITY OF THIS NOTE IS ACCELERATED
BY LENDER BY REASON OF THE EXISTENCE AND CONTINUANCE OF AN EVENT OF DEFAULT AND BORROWER OR ANY THIRD PERSON THEREAFTER SEEKS TO
PAY SUCH ACCELERATED INDEBTEDNESS OR PURCHASE ANY OR ALL THE PROPERTIES (INDIVIDUALLY,
A "PROPERTY", AND COLLECTIVELY, THE "PROPERTIES")
ENCUMBERED BY THE SECURITY INSTRUMENTS SECURING THIS NOTE AT FORECLOSURE SALE, SUCH PAYOFF OR PURCHASE SHALL CONSTITUTE
A PREPAYMENT OF PRINCIPAL HEREUNDER AND A PREMIUM SHALL BE PAYABLE IN AN AMOUNT WHICH
SHALL BE COMPUTED PURSUANT TO THIS SECTION 7 (INCLUDING THE PREPAYMENT PREMIUM).

 

    	 	3	 

Promissory Note

     

    

  

8.          
Costs. Borrower
promises to pay to Lender, within five (5) business days after written notice from Lender, all out-of-pocket costs, expenses, disbursements,
property taxes, escrow fees, title charges and legal fees and expenses actually incurred by Lender or its counsel (which must be
reasonable provided no Event of Default has occurred and is existing) in the negotiation, funding, enforcement or attempted enforcement,
by foreclosure or otherwise, of this Note or any of the Security Instruments. Without limitation on the foregoing, Borrower agrees
to pay all out-of pocket costs of collection, including attorneys' fees and costs (whether or not for salaried attorneys regularly
employed by Lender) and all costs of any action or proceeding (including any bankruptcy proceeding or any non-judicial foreclosure
or private sale) actually incurred by Lender, in the event any payment is not paid when due, or in case it becomes necessary to
enforce any other obligation of Borrower hereunder or to protect the security for the indebtedness evidenced hereby, or for the
foreclosure by Lender of any of the Security Instruments, or in the event Lender is made a party to any litigation because of the
existence of the indebtedness evidenced by this Note, or because of the existence of any of the Security Instruments.
All such costs are secured by the Security Instruments. The obligation of
Borrower to repay all such out of-pocket costs and any other advances by Lender are secured by the Security Instruments and shall
be deemed to be evidenced by this Note and shall accrue interest at the Contract Rate or the Past Due Rate, whichever is then applicable.

 

9.          
Waivers. Borrower hereby waives diligence,
presentment, protest and demand, notice of protest, of demand, of nonpayment, of dishonor and of maturity and agrees that time
is of the essence of every provision hereof; and further agrees that any such renewal, extension or modification, or the release
or substitution of any person or security for the indebtedness evidenced hereby, shall not affect the liability of any of such
parties for the indebtedness evidenced by this Note or the obligations under any of the Security Instruments .
Any such renewals, extensions, modifications, releases or substitutions may
be made without notice to any of such parties.

 

10.       
Remedies Cumulative. The rights and remedies
of Lender as provided in this Note and in each of the Security Instruments shall be cumulative and concurrent and may be pursued
singly, successively or together against Borrower, any of the Properties, or any other persons or entities who are, or may become
liable for all or any part of this indebtedness, and any other funds, property or security held by Lender for the payment hereof,
or otherwise, at the sole discretion of Lender. Failure to exercise any such right or remedy shall in no event be construed as
a waiver or release of such rights or remedies, or the right to exercise them at any later time. The right,
if any, of
Borrower, and all other persons or entities, who are, or may become, liable for this indebtedness, to plead any and all statutes
of limitation as a defense is expressly waived by ach and all of such parties to the full extent permissible by law.

 

    	 	4	 

Promissory Note

     

    

 

11.          Security Instrument Provisions Regarding Transfers: Successors. Each
of the Security Instruments securing this Note contains provisions for the acceleration of the indebtedness evidenced hereby upon
a "Transfer" (as therein defined).Subject
to the limitations on Transfer specified in each of the Security Instruments, the provisions hereof shall be binding on the heirs,
legal representative,s
successors and assigns of Borrower and shall inure to the benefit of Lender and the successors and assigns of Lender.

 

12.        
Partial Release. Notwithstanding anything
herein to the contrary contained in this Note, Lender
shall consent to a partial prepayment of the principal of this Note and thereafter causing a release from the lien of the applicable
Security Instrument any applicable Property, such Property to be released, the "Released
Property", but only upon the satisfaction of all of the following conditions:

 

a.                 
Lender shall have received from Borrower at least thirty (30) days' prior written notice of the date proposed for such release
(the "Release Date") and the identification of the Released Property;

 

b.                 
No Event of Default in any of the Security Instruments shall have occurred and be continuing as of the date of such notice
and the Release Date and no event or condition shall exist that, with the passage of time or giving of notice, would constitute
an Event of Default in any of the Security Instruments;

 

c.                 
The release shall occur contemporaneously with the sale of the Released Property pursuant to an arm's-length, bona fide
contract to a person who is not an affiliate of Borrower or any person or entity with any interest in Borrower, whether direct
or indirect;

 

d.                 
Borrower shall pay to Lender on the Release Date an amount equal to the "Release Price" amount as indicated for
such Released Property on Exhibit "A" attached to this Note (the "Release
Price"). The Release Price shall be applied to the Loan to outstanding principal balance
of the Loan (unless an Event of Default exists, in which event, amounts may be applied in such order as determined by Lender, including
the applicable prepayment premium);

 

e.                  
Borrower shall have provided Lender with evidence reasonably acceptable to Lender that the Released Property has been formally
designated as a distinct tax lot separate from the remaining Properties;

 

f.                  
Borrower shall have provided Lender with evidence reasonably acceptable to Lender that the Released Property and the remaining
portion of the Properties shall be legal lots or parcels in material compliance with the all Georgia subdivision acts and local
ordinances thereunder and that the remaining portion of the Property has adequate ingress and egress;

 

    	 	5	 

Promissory Note

     

    

 

g.                
If requested by Lender, Borrower, at its sole cost and expense, shall have delivered to Lender a title endorsement to the
mortgagee policy of title insurance delivered to Lender on the date hereof in connection with the Security Instruments insuring
that, after giving effect to such release, such title policy coverage has not been terminated or reduced by such releases; and

 

h.                
Borrower shall have paid all of Lender's reasonable out-of-pocket costs and expenses actually incurred by Lender, including,
without limitation, attorneys' fees and expenses, in connection with the release of the Released Property.

 

Upon
payment of the Release Price and the satisfaction of the other conditions set forth in this Section 12 for the release of the Released
Property, the security interests and liens of Lender under the applicable Security Instrument shall be released from the Released
Property, and Lender will execute and deliver, at Borrower's sole cost and expense, any agreements reasonably requested by Borrower
to release and terminate the lien of the applicable Security Instrument as to the Released Property; provided,
however, that such release and termination shall be without recourse to Lender and made
without any representation or warranty, but, in any event, in standard form that should be reasonably sufficient to remove the
lien of the Security Instruments as an exception on the purchaser's owner's title insurance policy for the Released Property. Upon
the release and termination of Lender's security interests and liens under the applicable Security Instrument and the other Loan
Documents relating to the Released Property, all references in the applicable Security Instrument and the other Loan Documents
relating to the Released Property shall be deemed deleted, except as otherwise provided herein with respect to indemnities.

 

13.
           Miscellaneous.

 

13.1        
Manner of Payment; No Offsets. All
payments due hereunder shall be made in lawful money of the United States of America. Such payments shall be made by check or,
upon maturity and otherwise at the option of Lender, by transferring the payment in federal or immediately available funds by bank
wire or interbank transfer for the account of Lender without presentment or surrender of this Note, provided; however, that any
payment of principal or interest received after 5:00 p.m. Pacific time shall be deemed to have been received by Lender on the next
business day and shall bear interest accordingly. All sums due hereunder shall be payable without offset, demand, abatement or
counter-claim of any kind or nature whatsoever, all of which are hereby waived by Borrower.

 

13.2        
Fee for Statement. For any statement regarding the obligations evidenced hereby to be furnished by Lender,
Borrower shall pay the fee then charged by Lender therefor, not to exceed, however, the maximum fee, if any, allowed by law to
be charged by Lender at the time such statement is requested.

 

13.3        
No Amendment or Waiver Except in Writing.
This Note may be amended or modified only by a writing duly executed by Borrower and Lender,
which expressly refers to this Note and the intent of the parties so to amend this Note. No provision
of this Note will be deemed waived by Lender, unless waived in a writing executed by Lender, which expressly refers to this Note,
and no such waiver shall be implied from any act or conduct of Lender, or any omission by Lender to take action with respect to
any provision of this Note or any of the Security Instruments. No such express written waiver shall affect any other provision
of this Note, or cover any default or time period or event, other than the matter as to which an express written waiver has been
given. Without limitation, acceptance of any partial payment shall not constitute a waiver of any of Lender's rights, including
the right to insist on immediate payment of all amounts due and payable.

 

    	 	6	 

Promissory Note

     

    

  

13.4         
No Intent of
Usury. None of the terms and provisions
contained in this Note, or in any of the Security Instruments, or in other documents or instruments related hereto, shall ever
be construed to create a contract for the use, forbearance or detention of money requiring payment of interest or any other consideration
that constitutes interest under applicable law, as the case may be, at a rate in excess of the maximum interest permitted to be
charged by applicable laws or regulation governing this Note ("Usury Laws"). Borrower
shall never be required to pay interest or any other consideration that constitutes interest under applicable law, as the case
may be, on this Note in excess of the maximum interest that may be lawfully charged under such Usury Laws, as made applicable by
the final judgment of a court of competent jurisdiction, and the provisions of this Section shall control over all other provisions
hereof and of any other instrument executed in connection herewith or executed to secure the indebtedness evidenced hereby, which
may be in apparent conflict with this Section. If Lender collects monies which are deemed to constitute interest which would otherwise
increase the effective interest rate on this Note to a rate in excess of that permitted to be charged by such Usury Laws, all such
sums deemed to constitute interest in excess of the maximum rate shall, at the option of Lender, either be credited to the payment
of principal or returned to Borrower.

 

13.5         
Governing Law. This
Note shall be governed by and construed and enforced in accordance with the laws of the State of Georgia (without regard to conflicts
of laws), except where federal law is applicable (including, without limitation, any applicable federal usury ceiling or other
federal law preempting state usury laws).

 

13.6         
Certain Rules of Construction. The headings of each Section of this Note
are for convenience only and do not define or limit any provision of this Note. The provisions of this Note shall be construed
as a whole according to their common meaning, not strictly for or against any party, or any person or entity, who is or may become
liable for the payment of this Note, and to achieve the objectives of the parties unconditionally to impose on Borrower the indebtedness
evidenced by this Note. Whenever the words "including", "includes" or "include" are used in this
Note (including any Exhibit hereto), they shall be read non-exclusively as though the phrase", without limitation," immediately
followed the same.

 

13.7         
Severability. If
any term of this Note, or the application thereof to any person or circumstances, shall be invalid or unenforceable, the remainder
of this Note, or
the application of such term to persons or circumstances other than those as to which it is invalid or unenforceable, shall not
be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law.

 

    	 	7	 

Promissory Note

     

    

  

13.8          Notices. Any
notice which a party is required or may desire to give the other shall be in writing and may be sent by personal delivery or
by mail (either [i] by United States registered or certified mail, return receipt requested, postage prepaid, or [ii] by
Federal Express or similar generally recognized overnight carrier regularly providing proof of delivery}, addressed as
follows (subject to the right of a party to designate a different address for itself by notice similarly given at least
15 days in advance):

 

To Lender:

 

Silvergate Bank

4250 Executive Square

Suite 300

La
Jolla, California 92037-1492

Attention: Commercial RE Group

 

To Borrower:

 

Reven
Housing Georgia, LLC

875 Prospect Street

Suite 304

La Jolla,
California 92037

Attention: Thad Meyer

 

Any
notice so given by mail shall be deemed to have been given as of the date of delivery (whether accepted or refused) established
by U.S. Post Office return receipt or the overnight carrier's proof of delivery, as the case may be. Any such notice not so given
shall be deemed given upon receipt of the same by the party to whom the same is to be given.

 

14.       
Lender Assignment.
Lender may assign, sell or transfer at any time this Note (and any documents relating thereto
and any interest therein).

 

TO
THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN, OR ANY OTHER
LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF BORROWER OR LENDER
OR ANY EXERCISE BY ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS OR IN ANY WAY RELATING TO THE LOAN OR ANY OF THE
PROPERTIES OR THIS NOTE. THIS WAIVER IS
A MATERIAL INDUCEMENT FOR LENDER TO MAKE THE LOAN TO BORROWER.

 

    	 	8	 

Promissory Note

     

    

  

IN WITNESS
WHEREOF, the undersigned have executed this Agreement as of the date and year first written above.

 

	 	BORROWER:	 
	 	 	 	 	 
	 	REVEN HOUSING GEORGIA, LLC,	 
	 	a Delaware limited liability company	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	Reven Housing REIT OP, LLC,	 
	 	 	a Delaware limited partnership,	 
	 	 	its Sole Member	 
	 	 	 	 	 
	 	 	By:	/s/ Thad Meyer	 
	 	 	 	Thad Meyer	 
	 	 	 	Chief Financial Officer	 

 

[Signatures continue on following
page]

 

 

 

 

 

 

SIGNATURE PAGE TO
SUBORDINATION OF MANAGEMENT AGREEMENT

    	 	S-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00276-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00276-of-00352.parquet"}]]