Document:

Exhibit 10.3

 

AVEXIS, INC.

2014 STOCK PLAN

 

STOCK INCENTIVE AWARD AGREEMENT

 

This Stock Incentive Award Agreement (the “Agreement”) is effective as of                , between AveXis, Inc., a Delaware corporation formerly known as BioLife Cell Bank, Inc. (the “Company”), and                     (the “Participant”).

 

WHEREAS, the Company has established the 2014 Stock Plan (the “Plan”), pursuant to which the Company may, from time to time, make grants of Restricted Stock and Options to eligible employees and other individuals providing services to the Company or any affiliate of the Company (an “Affiliate”); and

 

WHEREAS, in consideration for the Participant’s service to the Company and/or an Affiliate, the Company hereby grants to the Participant certain stock incentive awards consisting of [shares of Restricted Stock and Options] (the “Awards”) pursuant to the terms and conditions of the Plan and this Agreement;

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements hereinafter set forth, the parties hereby agree as follows:

 

1.                                      Restricted Stock Award. Subject to the terms and conditions set forth in this Agreement and the Plan, effective as of                 (the “Grant Date”), the Company grants to the Participant                 (    ) shares of Restricted Stock, provided that such Award of Restricted Stock shall be subject to the terms below.

 

(a)                                 Vesting. Subject to the Participant’s continued service with the Company or an Affiliate through the applicable vesting date, the Restricted Stock shall vest in accordance with the following schedule: [(i) one-fourth of the Restricted Stock shall vest on the first anniversary of the Grant Date, (ii) an additional one-fourth of the Restricted Stock shall vest on the second anniversary of the Grant Date, (iii) an additional one-fourth of the Restricted Stock shall vest on the third anniversary of the Grant Date, and (iv) the remaining one-fourth of the Restricted Stock shall vest on the fourth anniversary of the Grant Date.](1) If the application of this vesting schedule would result in the Participant vesting in a fraction of a share, such fractional share shall be rounded down to the next whole share, with such fraction carried forward to the next applicable period of this vesting schedule, if any.

 

(1)  You may change the timeframe for vesting and/or substitute time vesting for performance vesting or a combination of both time and performance vesting.

 

1

 

(b)                                 Restrictions on Transferability. The Participant may not sell, assign, convey, pledge, exchange, hypothecate, alienate or otherwise dispose of or transfer the Restricted Stock in any manner to the extent it remains unvested. No assignment, pledge or transfer of the Restricted Stock, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall be effective; but immediately upon any such attempt to assign, pledge or otherwise transfer the Restricted Stock, the Restricted Stock shall be forfeited.

 

(c)                                  Rights as Shareholder. Notwithstanding the foregoing vesting and transfer restrictions that apply to the Restricted Stock, but subject to the terms of this Agreement and the Plan, the Participant generally shall otherwise have the beneficial ownership of the Restricted Stock and shall be entitled to exercise the rights and privileges of a shareholder with respect to the Restricted Stock, including the right to vote such shares and the right to receive dividends (if any) paid with respect to such shares; provided, however, that (a) any dividend payments will be made no later than the end of the calendar year in which the dividends are paid to shareholders of the Shares or, if later, the fifteenth day of the third month following the date the dividends are paid to shareholders of the Shares; and (b) with respect to any Shares that arise from any dividends with respect to the Restricted Stock or from adjustments under Section 6, the Participant shall have the same rights and privileges, and shall be subject to the same restrictions, that apply to the Restricted Stock under this Agreement and the Plan.

 

(d)                                 Book-Entry Form. The shares of Restricted Stock generally shall be evidenced in book-entry or similar form and maintained by or on behalf of the Company in such form. In such case, no stock certificates shall be issued and the applicable restrictions will be noted in the records of the Company and its transfer agent, if any. Notwithstanding the foregoing, in the discretion of the Company, a certificate or certificates representing the Restricted Stock may be registered in the name of the Participant and held in escrow or other custody by or on behalf of the Company. In either case, each certificate or book-entry record may bear such legends as the Company deems appropriate to reflect the applicable terms and conditions upon the Restricted Stock.

 

2.    Option Award. Subject to the terms and conditions set forth in this Agreement and the Plan, effective as of the Grant Date, the Company grants to the Participant an Option to purchase                 (    ) Shares, provided that such Option shall be subject to the terms below. The Option shall be [an Incentive Option][a Nonqualified Stock Option].

 

(a)                                 Exercise Price. The Exercise Price shall be $       per Share, which is at least the Fair Market Value of a Share on the Grant Date.(2)

 

(b)                                 Vesting. Subject to the Participant’s continued service with the Company or an Affiliate through the applicable vesting date, the Option shall vest in accordance with the following schedule: [(i)

 

(2)  For “Ten Percent Holders” as defined in the Section 2.1(a) of the Plan, the exercise price for incentive options must be 110% of fair market value.

 

2

 

one-fourth of the Option shall vest on the first anniversary of the Grant Date, (ii) an additional one-fourth of the Option shall vest on the second anniversary of the Grant Date, (iii) an additional one-fourth of the Option shall vest on the third anniversary of the Grant Date, and (iv) the remaining one-fourth of the Option shall vest on the fourth anniversary of the Grant Date.] If the application of this vesting schedule would result in the Participant vesting in a fraction of a share, such fractional share shall be rounded down to the next whole share, with such fraction carried forward to the next applicable period of this vesting schedule, if any.

 

(c)                                  Option Period. Except as otherwise provided in the Plan and this Agreement, the Option will expire on the tenth anniversary(3) of the Grant Date. Any Option or portion thereof not exercised before the expiration of the Option Period shall terminate.

 

(d)                                 Exercise of Option. To the extent exercisable, the Option, or any portion thereof, may be exercised by giving written notice to the Company at such place as the Committee or its designee shall direct. Such notice shall specify the number of shares to be purchased pursuant to the Option and the aggregate Exercise Price to be paid therefor. To the extent that the Option is exercisable but is not exercised, the vested portions of the Option shall accumulate and be exercisable by the Participant in whole or in part at any time prior to expiration of the Option Period, subject to the terms of the Plan and this Agreement. Upon the exercise of an Option in whole or in part, payment of the Option Price in accordance with the provisions of the Plan and this Agreement, and satisfaction of such other conditions as may be established by the Committee, the Company shall as soon thereafter as practicable deliver to the Participant a certificate or certificates for the shares purchased. Notwithstanding the foregoing, the Company may choose to evidence and maintain the shares in book-entry or similar form. In such case, no certificates shall be issued and the applicable restrictions will be noted in the records of the Company.

 

(e)                                  Payment of Option Price. Payment of the Option Price may be made: (i) by the delivery of cash in the amount of the aggregate Option Price payable by reason of such exercise, (ii)  by delivery (either actual delivery or by attestation procedures established by the Company) of previously acquired shares of Common Stock that have an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate Option Price payable by reason of such exercise, (iii) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate Option Price payable by reason of such exercise, (iv) by the delivery of cash in the amount of the aggregate Option Price payable by reason of such exercise by a broker-dealer acceptable to the Company to whom the Participant has submitted an irrevocable notice of exercise, or (v) a combination of (i), (ii), (iii) and (iv), in each case to the extent set forth in the Agreement relating to the Option.

 

(f)                                   Restrictions on Transferability. The Option shall not be transferable other than by will or the laws of intestate succession. The Option shall be exercisable during the Participant’s lifetime only by

 

(3)  For Ten Percent Holders, incentive options must expire no later than the fifth anniversary of the date of grant.

 

3

 

the Participant. No assignment, pledge or transfer of the Option, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall be effective; but immediately upon any such attempt to assign, pledge or otherwise transfer the Option, the Option shall be forfeited.

 

(g)                                  No Shareholder Rights Prior to Exercise. Neither the Participant nor the Participant’s legal representative, legatee or distributee shall be deemed to be the holder of any Shares subject to the Option and such persons shall not have any rights of a shareholder unless and until such Shares have been issued and delivered to such person.

 

3.    Termination of Employment. Except as provided below, if the Participant incurs a termination of service, all shares of Restricted Stock and all unexercised Options (vested and unvested) at the time of such termination shall be immediately and automatically forfeited by the Participant upon such termination of service.

 

(a)                                 Voluntary Termination of Service. Notwithstanding anything herein to the contrary, in the event of a voluntary termination of service by the Participant, all unvested Awards shall be forfeited and all vested but unexercised Options as of the Participant’s date of termination shall be exercisable by the Participant until the earlier of ninety days following termination of service and the expiration of the Option Period. If the Participant incurs a voluntary termination of service in anticipation of a termination of service for Cause, the rights under this Section shall not apply and the Participant’s Award (including any rights to exercise the Participant’s Option) shall immediately terminate upon the Participant’s termination of service.

 

(b)                                 Termination of Service by the Company without Cause; Termination of Service by the Participant for Good Reason. Notwithstanding anything herein to the contrary, in the event of a termination of the Participant’s service by the Company without Cause (as defined below) or a termination of service by the Participant for Good Reason (as defined below), all unvested Awards shall be forfeited and all vested but unexercised Options as of the Participant’s date of termination shall be exercisable by the Participant until the 90th day immediately following the date of termination.

 

(c)                                  Termination of Service due to Retirement, Death, or Disability. Notwithstanding anything herein to the contrary, in the event of a termination of service due to the Participant’s Retirement, death, or Disability (as such terms are defined below), all unvested Awards shall be forfeited and all vested but unexercised Options as of the Participant’s date of termination shall be exercisable by the Participant until the 90th day immediately following the date of termination. To the extent a Participant’s Option is exercisable as a result of the Participant’s death, the Option may be exercised to such extent by the person or persons to whom the Participant’s rights to exercise the Option passed by will or the laws of descent and distribution (or by the executor or administrator of the Participant’s estate).

 

(d)                                 Definitions. For purposes of this Agreement, the following definitions shall apply:

 

4

 

(i)                                     Cause. Cause shall mean the occurrence of any of the following: (i) Participant’s conviction of any felony or any crime involving fraud or dishonesty; (ii) Participant’s participation in a fraud, act of dishonesty or other act of gross misconduct that adversely affect the Company; (iii) conduct by Participant that demonstrates Participant’s gross unfitness to serve; (iv) Participant’s violation of any statutory or fiduciary duty, or duty of loyalty, owed to the Company; (v) Participant’s breach of any material term of any contract between such Participant and the Company, including but not limited to Participant’s Employment Agreement and Confidentiality Agreement therin; and/or (vi) Participant’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 Participant, (A) the Company shall give the Participant 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 Participant within fifteen (15) days after the delivery of such notice.

 

(ii)    Disability. Disability shall have the meaning set forth in the Plan.

 

(iii)    Good Reason. Good Reason for Participant to terminate his employment hereunder shall mean the occurrence of any of the following events without Participant’s consent: (i) a material reduction by the Company of Participant’s Base Salary as initially set forth in Participant’s Employment Agreement 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 Participant team compensation, such reduction shall not constitute Good Reason; (ii) a material breach Participant’s Employment Agreement by the Company; (iii) the relocation of Participant’s principal place of employment, without Participant’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 Participant’s duties, authority, or responsibilities relative to Participant’s duties, authority, or responsibilities in effect immediately prior to such reduction unless Participant is performing duties and responsibilities for the Company or its successor that are similar to those Participant 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 Participant is performing duties for such division or unit that are similar to those Participant was performing prior to such transaction but under a different title as Participant had prior to such transaction, there will be no “Good Reason”).  Provided, however, that, any such termination by Participant shall only be deemed for Good Reason pursuant to this definition if: (1) Participant 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) Participant voluntarily terminates his employment within thirty (30) days following the end of the Cure Period.

 

5

 

(iv)    Retirement. Retirement shall mean termination of employment or after the Participant attains age 65.

 

4.    Tax Matters. The Participant shall pay or make provision for payment to the Company or its Affiliate, as applicable, through payroll or other withholding (which withholding the Participant hereby authorizes), the amount necessary to satisfy any federal, state or local withholding requirements applicable to any taxable event arising in connection with the Awards of Restricted Stock or Options by one or any combination of the following means: (i) tendering a cash payment, (ii) authorizing the Company to withhold Shares otherwise issuable to the Participant, or (iii) delivering to the Company already-owned and unencumbered Shares. The determination of the withholding amounts due in such event shall be made by the Company and shall be binding upon the Participant. The Company shall not be required to deliver such Shares unless the Participant has made acceptable arrangements to satisfy any such withholding requirements. Nothing in this Section shall be construed to impose on the Company a duty to withhold where applicable law does not require such withholding.

 

THE PARTICIPANT ACKNOWLEDGES THAT THE PARTICIPANT IS RESPONSIBLE FOR, AND IS ADVISED TO CONSULT WITH THE PARTICIPANT’S OWN TAX ADVISORS REGARDING, THE TAX CONSEQUENCES TO THE PARTICIPANT THAT MAY ARISE IN CONNECTION WITH THE AWARDS, INCLUDING THE DECISION TO MAKE AND TIMELY FILE, AND THE CONSEQUENCES OF, ANY ELECTION UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THE PARTICIPANT ALSO SHALL TIMELY DELIVER A COPY OF ANY SUCH SECTION 83(b) FILING TO THE COMPANY.

 

5.    Forfeiture Procedures. In the event of any forfeiture of the Restricted Stock or Option, such forfeiture shall be automatic and without further act or deed by the Participant. Notwithstanding the foregoing, if requested by the Company (or its agent), the Participant shall execute such documents (including, without limitation, a power of attorney in favor of the Company) and take such other action deemed necessary or desirable by the Company to evidence such forfeiture.

 

6.    Adjustments. The Awards granted pursuant to this Agreement shall be adjusted as provided in and subject to the Plan in the event of recapitalization, stock split, stock dividend, combination of shares, merger, consolidation or other change in corporate capitalization affecting the Shares. The existence of the Awards shall not affect in any way the authority of the Company and its shareholders to exercise their corporate rights and powers, including, but not by way of limitation, the right of the Company to authorize any adjustment, reclassification, reorganization, or other change in its capital or business structure, any merger or consolidation of the Company, the dissolution or liquidation of the Company, the issuance of securities with preference ahead of or affecting the Shares, or any sale or transfer of all or any part of its business or assets.

 

7.    Securities Laws. Notwithstanding any provision herein to the contrary or in the Plan, the Company shall be under no obligation to issue any Shares to the Participant pursuant to this Agreement

 

6

 

unless and until the Company has determined that such issuance is either exempt from registration, or is registered, under the Securities Act of 1933, as amended, and is either exempt from registration and qualification, or is registered or qualified, as applicable, under all applicable state securities or “blue sky” laws. Nothing in this Agreement shall be construed to obligate the Company at any time to file or maintain a registration statement under the Securities Act of 1933, as amended, or to effect similar compliance under any applicable state laws with respect to the Shares that may be issued pursuant to this Agreement. The Company may require that the Participant make such representations and agreements and furnish such information as the Company deems appropriate to assure compliance with applicable legal and regulatory requirements.

 

8.    Resolution of Disputes; Interpretation. Any question of interpretation, dispute or disagreement that arises under, or as a result of, this Agreement shall be determined by the Committee in its absolute discretion, and any such determination or other interpretation by the Committee pursuant to this Agreement shall be final, binding and conclusive on all parties affected thereby.

 

9.    Miscellaneous.

 

(a)    Binding on Successors and Representatives. Subject to the transfer restrictions applicable to the Participant hereunder and other conditions hereof, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and the Participant’s heirs, executors, administrators, personal representatives, and assigns; and the parties agree, for themselves and their successors, representatives and assigns, to execute any instrument which may be necessary legally to effect the terms and conditions of this Agreement.

 

(b)    No Employment Rights. Nothing contained in this Agreement shall confer upon the Participant any right to continue in the employ or service of the Company or any Affiliate nor interfere with or limit in any way the right of the Company or an Affiliate to terminate the Participant’s employment by, or performance of services for, the Company or Affiliate at any time.

 

(c)    Entire Agreement. This Agreement together with the Plan constitute the entire agreement of the parties with respect to the Awards and supersede any previous or contemporaneous agreement, whether written or oral, with respect thereto. This Agreement has been entered into in compliance with the terms of the Plan; wherever a conflict may arise between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.

 

(d)    Amendment. Except as otherwise provided below or in the Plan, neither this Agreement nor any of the terms and conditions herein set forth may be altered or amended orally, and any such alteration or amendment shall be effective only when reduced to writing and signed by each of the parties hereto. The Company or the Committee may, without obtaining the Participant’s written consent, amend this Agreement in any respect either deems necessary or advisable to comply with Section 409A of the Code and applicable regulations and guidance thereunder and/or to prevent this Agreement from being subject to Section 409A of the Code.

 

7

 

(e)    Construction and Definitions. Any reference herein to the singular or plural shall be construed as plural or singular whenever the context requires. Capitalized terms not otherwise defined in this Agreement shall have the meanings ascribed to them in the Plan.

 

(f)    Notices. All notices, requests and amendments under this Agreement shall be in writing, and notices shall be deemed to have been given (i) if delivered by hand, when so delivered, (ii) if sent by overnight express service, one (1) business day after delivery to such service, or (iii) if mailed by certified or registered mail, return receipt requested, three (3) days after delivery to the post office:

 

(A)    if to the Company, at the following address:

 

AveXis, Inc.

2275 Half Day Road, Suite 160

Bannockburn, Illinois 60015

Attn: President & CEO

 

or at such other address as the Company shall designate by notice.

 

(B)    if to the Participant, to the Participant’s address appearing in the Company’s records, or at such other address as the Participant shall designate by notice.

 

(g)    Governing Law. Except to the extent preempted by Federal law, this Agreement shall be construed and determined in accordance with the laws of the State of Texas, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Texas or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Texas. The parties hereby submit to the jurisdiction of the state and Federal courts encompassing the then current location of the Company’s principal headquarters for the resolution of any disputes, claims, or proceedings arising under this Agreement.

 

(h)    Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and the Committee may elect in its discretion to construe such invalid or unenforceable provision in a manner which conforms to applicable law or as if such provision was omitted.

 

(i)    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

8

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year last written below.

 

	
COMPANY:
    	
PARTICIPANT:
    
	
 
    	
 
    
	
 
    	
 
    
	
AVEXIS, INC.
    	
[NAME]
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
						

 

9Exhibit 10.4

 

2014 STOCK PLAN

EXERCISE NOTICE AND AGREEMENT

 

AveXis, Inc.

[Address]

ATTN:  President & CEO

 

1.                                      Exercise of Option.  Effective as of today,          , 20  , the undersigned (“Optionee”) hereby elects to exercise Optionee’s Option to purchase           shares of Common Stock (the “Option Shares”) of AveXis, Inc., a Delaware corporation formerly known as BioLife Cell Bank, Inc. (the “Company”) under and pursuant to the 2014 Stock Plan (the “Plan”) and that certain Stock Incentive Award Agreement dated as of              , 20   between the Company and the Optionee (the “Award Agreement”).  All capitalized terms in this Exercise Notice and Agreement (this “Exercise Notice”) shall have the meaning assigned to them in the Award Agreement.

 

2.                                      Delivery of Payment.  Optionee herewith delivers to the Company the full purchase price of the Option Shares, as set forth in the Award Agreement.

 

3.                                      Representations of Optionee.  Optionee acknowledges that Optionee has received, read and understood the Plan and the Award Agreement and agrees to abide by and be bound by their terms and conditions.

 

4.                                      Rights as a Stockholder.  Until the issuance of the Option Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company, if any), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Option Shares, notwithstanding the exercise of the Option.  The Option Shares shall be issued to the Optionee as soon as practicable after the Option is exercised.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in the Plan.

 

5.                                      Tax Consultation.  Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition of the Option Shares.  Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Option Shares and that Optionee is not relying on the Company for any tax advice.

 

6.                                      Investment Representations.  In connection with the purchase of the Option Shares, the undersigned Optionee represents to the Company the following:

 

(a)                                 Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Option Shares.  Optionee is acquiring the Option Shares for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

 

 

(b)                                 Optionee acknowledges and understands that the Option Shares constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee’s investment intent as expressed herein.  In this connection, Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee’s representation was predicated solely upon a present intention to hold the Option Shares for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Option Shares, or for a period of one year or any other fixed period in the future.  Optionee further understands that the Option Shares must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available.  Optionee further acknowledges and understands that the Company is under no obligation to register the Option Shares.  Optionee understands that any certificate evidencing the Option Shares will be imprinted with a legend which prohibits the transfer of the Option Shares unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company and any other legend required under applicable state securities laws.

 

(c)                                  Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of restricted securities acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.  Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act.  In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Option Shares exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934); and in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Option Shares being sold during any three month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable.

 

In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Option Shares may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than six months after the later of the date the Option Shares were sold by the Company or the date the Option Shares were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Option Shares by an affiliate, or by a non-affiliate who subsequently holds the Option Shares less than two years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above.

 

(d)                                 Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act,

 

 

compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.  Optionee understands that no assurances can be given that any such other registration exemption will be available in such event.

 

7.                                      Restrictive Legends and Stop-Transfer Orders.

 

(a)                                 Legends.  Optionee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Option Shares together with any other legends that may be required by the Company or by state or federal securities laws:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND REGISTERED UNDER THE ACT OR, IN THE OPINION OF LEGAL COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THERWITH.

 

(b)                                 Stop-Transfer Notices.  Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate stop transfer instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

(c)                                  Refusal to Transfer.  The Company shall not be required (i) to transfer on its books any Option Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice or (ii) to treat as owner of such Option Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Option Shares shall have been so transferred.

 

8.                                      Successors and Assigns.  The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Exercise Notice shall be binding upon Optionee and his or her heirs, executors, administrators, successors and assigns.

 

 

9.                                      Interpretation.  Any dispute regarding the interpretation of this Exercise Notice shall be submitted by Optionee or by the Company forthwith to the Committee.  The resolution of such a dispute by the Committee shall be final and binding on all parties.

 

 

	
Submitted by:
    	
Accepted by:
    
	
 
    	
 
    
	
 
    	
 
    	
AVEXIS, INC.
    
	
Printed Name
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Signature
    	
Name:
    	
 
    
	
 
    	
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]