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EXHIBIT 10.2
Execution Version

Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the Company, if publicly disclosed.  Double asterisks denote omissions.

Royalty Purchase Agreement

By and Among

PTC Therapeutics, Inc.,

RPI 2019 Intermediate Finance Trust

and

Solely for the Purposes of Section 5.15 Hereof,

Royalty Pharma plc

Dated as of July 17, 2020

TABLE OF CONTENTS
						
	ARTICLE 1  DEFINED TERMS AND RULES OF CONSTRUCTION
	1

	Section 1.1 Definitions
	1

	Section 1.2 Certain Interpretations
	9

	Section 1.3 Headings
	10

	ARTICLE 2  PURCHASE, SALE AND ASSIGNMENT OF THE ROYALTY
	10

	Section 2.1 Purchase and Sale
	10

	Section 2.2 Purchase Price
	10

	Section 2.3 No Assumed Obligations, Etc
	10

	Section 2.4 True Sale
	10

	ARTICLE 3  CLOSING
	11

	Section 3.1 Closing; Payment of Purchase Price
	11

	Section 3.2 Closing Certificates
	11

	Section 3.3 Bill of Sale
	12

	Section 3.4 Form W-9
	12

	Section 3.5 Form W-8BEN-E
	12

	Section 3.6 Data Room
	12

	ARTICLE 4  REPRESENTATIONS AND WARRANTIES
	12

	Section 4.1 Seller’s Representations and Warranties
	12

	Section 4.2 The Buyer’s Representations and Warranties
	19

	Section 4.3 No Implied Representations and Warranties
	20

	ARTICLE 5  COVENANTS
	20

	Section 5.1 Disclosures
	20

	Section 5.2 Payments
	21

	Section 5.3 Royalty Reductions
	22

	Section 5.4 Royalty Reports; Other Product Information
	23

	Section 5.5 Actions under the License Agreement Prior to a Control Shift
	24

	Section 5.6 Actions under the License Agreement Following a Control Shift
	25

	Section 5.7 Inspections and Audits of Licensee
	27

	Section 5.8 Termination of License Agreement
	28

	Section 5.9 No Liens
	30

	Section 5.10 Enforcement; Defense; Prosecution and Maintenance
	30

	Section 5.11 Additional Monetizations
	32

	Section 5.12 Efforts to Consummate Transactions
	32

	Section 5.13 Further Assurances
	33

	Section 5.14 Tax Matters
	33

	Section 5.15 Standstill
	33

	ARTICLE 6  CONFIDENTIALITY
	33

	Section 6.1 Confidentiality
	34

	Section 6.2 Authorized Disclosure
	34

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	ARTICLE 7  TERMINATION
	35

	Section 7.1 Automatic Termination
	35

	Section 7.2 Survival
	35

	ARTICLE 8  MISCELLANEOUS
	36

	Section 8.1 Notices
	36

	Section 8.2 Expenses
	37

	Section 8.3 Assignment
	37

	Section 8.4 Amendment and Waiver
	37

	Section 8.5 Independent Nature of Relationship
	37

	Section 8.6 Entire Agreement
	38

	Section 8.7 No Third Party Beneficiaries
	38

	Section 8.8 Governing Law
	38

	Section 8.9 JURISDICTION; VENUE
	38

	Section 8.10 Severability
	39

	Section 8.11 Specific Performance
	39

	Section 8.12 Limitations on Liability; Prevailing Party
	39

	Section 8.13 Trustee Capacity of Wilmington Trust, National Association
	40

	Section 8.14 Counterparts
	40

Index of Exhibits
Exhibit A: Revaluation Procedures
Exhibit B: Escrow Agreement
Exhibit C: Seller’s Wire Transfer Instructions
Exhibit D: Form of Bill of Sale
Exhibit E: License Agreement
Exhibit F: Sponsored Research Agreement
Exhibit G: Form of Licensee Instruction Letter
Exhibit H: Form of Royalty Report Certification
Exhibit I:  Product Information Plan
Index of Schedules
Schedule 1.1: Risdiplam Structure

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ROYALTY PURCHASE AGREEMENT
This ROYALTY PURCHASE AGREEMENT, dated as of July 17, 2020 (this “Agreement”), is made and entered into by and among PTC Therapeutics, Inc., a Delaware corporation (the “Seller”), RPI 2019 Intermediate Finance Trust, a Delaware statutory trust (the “Buyer”), and, solely for the purposes of Section 5.15 hereof, Royalty Pharma plc, a limited company organized under the laws of England and Wales.
W I T N E S S E T H:
WHEREAS, pursuant to the License Agreement, the Seller and Licensee granted to each other certain licenses and other development and collaboration rights, and the Seller granted Licensee the exclusive right to (among other activities) develop and commercialize the Products, and Licensee, in partial consideration thereof, agreed to pay the Royalty to the Seller; 
WHEREAS, the Seller and the Spinal Muscular Atrophy Foundation (the “Foundation”) are party to that certain Sponsored Research Agreement, dated June 1, 2016, as amended on October 12, 2007, May 1, 2009, January 1, 2011 and November 22, 2011 (the “Sponsored Research Agreement”), pursuant to which the Seller is obligated to pay the Foundation single-digit royalties on worldwide net product sales of the Products; and
WHEREAS, the Buyer desires to purchase the Assigned Royalty Payments from the Seller, and the Seller desires to sell the Assigned Royalty Payments to the Buyer.
NOW THEREFORE, in consideration of the representations, warranties, covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Seller and the Buyer hereby agree as follows:
ARTICLE 1.
DEFINED TERMS AND RULES OF CONSTRUCTION
Section 1.1 Definitions.  As used in this Agreement, the following terms shall have the following meanings:
“Affiliate” (a) means, with respect to the Buyer, any individual, corporation, association or other business entity that directly or indirectly controls, is controlled by, or is under common control with the party in question.  As used in this definition of “Affiliate,” the term “control” shall mean the direct or indirect ownership of more than fifty percent (>50%) of the stock having the right to vote for directors thereof or the ability to otherwise control the management of the corporation or other business entity whether through the ownership of voting securities, by contract, resolution, regulation or otherwise and (b) with respect to the Seller or the Licensee, shall have the meaning ascribed thereto in Section 1.1. of the License Agreement.
“Agreement” is defined in the preamble.
“Alliance Director” shall refer to those Alliance Directors described in Section 7.10 of the License Agreement.
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“Applicable Listed Patents” is defined in Section 5.10(c).
“Assigned Royalty Cap” is defined within the definition of “Assigned Royalty Payments.” 
“Assigned Royalty Payments” means 42.933% (the “Buyer Royalty Percentage”) of the amounts due, payable, owed or owing, accrued or otherwise to be paid in respect of the Royalty for all Calendar Year Net Sales arising on or after the Closing Date for any Calendar Year until such Buyer Royalty Percentage of such amounts equals $1.3 billion (the “Assigned Royalty Cap”).
“Bankruptcy Laws” means, collectively, bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, fraudulent transfer or other similar laws affecting the enforcement of creditors’ rights generally.
“Bill of Sale” is defined in Section 3.3.
“Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions located in New York are permitted or required by applicable law or regulation to remain closed.
“Buyer” is defined in the preamble.
“Buyer Negotiated Arrangement” is defined in Section 5.8(b)(iii).
“Buyer Royalty Percentage” is defined within the definition of “Assigned Royalty Payments.”
“Calendar Quarter” shall have the meaning ascribed thereto in Section 1.7 of the License Agreement.
“Calendar Year” shall have the meaning ascribed thereto in Section 1.8 of the License Agreement.
“Change of Control” shall have the meaning ascribed thereto in Section 1.9 of the License Agreement.
“Closing” is defined in Section 3.1.
“Closing Date” means the date on which the Closing occurs.
“Commercialization Reports” means those reports deliverable by Licensee pursuant to Section 10 of the License Agreement.
“Compound” shall have the meaning ascribed thereto in Section 1.13 of the License Agreement.
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“Confidential Information” is defined in Section 6.1.
“Confidentiality Breach” is defined in Section 5.4(d).
“Consensus Value” means the net present value (applying a [**]% discount rate) of the projected Net Sales of the Products using projections of Wall Street sell-side analysts then covering the Licensee and the Seller, as determined in accordance with  Exhibit A. 
“Contracts” is defined in Section 4.1(h)(i).
“Control Party” means (a) the Seller, (i) from the Closing until a Control Shift occurs, (ii) after a Control Shift occurs, from the occurrence of a Revaluation Event in favor of the Seller until another Control Shift or a Revaluation Event in favor of the Buyer occurs; and (b) the Buyer (i) after a Control Shift occurs and until a Revaluation Event in favor of the Seller occurs, and (ii) after a Revaluation Event in favor of the Seller occurs, from the occurrence of another Control Shift or a Revaluation Event in favor of the Buyer until another Revaluation Event in favor of the Seller occurs. 
“Control Shift” means any assignment, conveyance, monetization, or imposition of a Lien by the Seller on, following the Closing, any percentage of the Royalty, with the result that the Seller and its Affiliates no longer own, free and clear of all Liens (other than Permitted Liens) the right to receive a majority of the then remaining Royalty based on the Consensus Value.  
“Credit Event” means any insolvency, bankruptcy, receivership, assignment for the benefit of creditors, or similar proceeding, following or as a result of which the Licensee fails to pay amounts owing under the License Agreement in respect of the Royalty as a result of the Licensee’s financial distress, creditworthiness, or insolvency.
“Data Room” is defined in Section 3.6.
“Deciding Valuation Firm” has the meaning set forth in Exhibit A.
“Disclosing Party” is defined in Section 6.1.
“Disclosure Schedule” means the Disclosure Schedule, dated as of the date hereof, delivered to the Buyer by the Seller concurrently with the execution of this Agreement. 
“Escrow Account” means the account controlled by the Escrow Agent pursuant to which Licensee has been instructed to direct all amounts payable by it under the License Agreement.
“Escrow Agent” means U.S. Bank National Association, or the escrow agent under the Escrow Agreement or any permitted successor thereof under the Escrow Agreement.
“Escrow Agreement” means the Escrow Agreement that may be entered into among the Seller, the Buyer, and the Escrow Agent in accordance with Section 5.2(a)(i), substantially in the form attached hereto as Exhibit B.  
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“[**]” means the product that is the subject of New Drug Application number 213535 that contains risdiplam as the active ingredient.
“Field” shall have the meaning ascribed thereto in Section 1.25 of the License Agreement. 
“Final Counter Proposed Consensus Value” has the meaning set forth in Exhibit A.
“Final Proposed Consensus Value” has the meaning set forth in Exhibit A.
“First Commercial Sale” shall have the meaning ascribed thereto in Section 1.28 of the License Agreement.
“Foundation” is defined in the recitals.
“Governmental Entity” means any:  (i) nation, principality, republic, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (ii) federal, state, local, municipal, foreign or other government; (iii) governmental or quasi-governmental authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization, unit, body or other entity and any court, arbitrator or other tribunal); (iv) multi-national organization or body; or (v) individual, body or other entity exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military or taxing authority or power of any nature.
“Handle” or “Handling” has the meaning ascribed thereto in Section 1.35 of the License Agreement.
“JIPT” shall have the meaning ascribed thereto in Section 7.4 of the License Agreement.
“Joint Invention” shall have the meaning ascribed thereto in Section 1.42 of the License Agreement.
“Joint Patent Rights” shall have the meaning ascribed thereto in Section 1.44 of the License Agreement.
“JOT” shall have the meaning ascribed thereto in Section 7.4 of the License Agreement.
“JSC” shall have the meaning ascribed thereto in Section 7.1 of the License Agreement.
“Judgment” means any judgment, order, writ, injunction, citation, award or decree of any nature.
“Knowledge of the Seller” means the actual knowledge of [**] after due inquiry.
“License Agreement” means that certain License and Collaboration Agreement, dated November 23, 2011, by and among F. Hoffman-La Roche Ltd., Hoffman-La Roche Inc., the 
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Seller and, solely with respect to the Foundation Provisions (as defined therein), the Foundation, as amended by such parties by means of that First Amendment to License and Collaboration Agreement on April 18, 2013.
“Licensed IP” means, collectively, the Licensed PTC IP and the Licensed Roche IP.
“Licensed Patents” is defined in Section 4.1(j)(i).
“Licensed PTC IP” means the PTC Patent Rights, PTC Know-How and the Seller’s interest in the Joint Inventions.
“Licensed Roche IP” means the Roche Patent Rights, the Roche Know-How and Licensee’s interest in the Joint Inventions.
“Licensee” means F. Hoffman-La Roche Ltd and Hoffman-La Roche Inc., collectively.
“Licensee Instruction Letter” is defined in Section 5.2(a)(i).
“Lien” means any mortgage, lien, pledge, charge, adverse claim, security interest, encumbrance or restriction of any kind, including any restriction on use, transfer or exercise of any other attribute of ownership of any kind; provided, that, for the avoidance of doubt, Lien shall not include the license of any rights.
“Loss” means any and all Judgments, damages, losses, claims, costs, liabilities and expenses, including reasonable fees and out-of-pocket expenses of counsel. 
“Net Sales” shall have the meaning ascribed thereto in Section 1.50 of the License Agreement.
“New Product” shall have the meaning ascribed thereto in Section 1.53 of the License Agreement.
“New Product Development Plan” shall have the meaning ascribed thereto in Section 1.54 of the License Agreement.
“Marketed Product” is defined in Section 5.8(b)(iii). 
“Ordinary Course Licenses or Sublicenses” means licenses or sublicenses entered into in the ordinary course of business with respect to the (i) development or manufacture of Products, (ii) distribution, third party logistics, warehousing, packaging, labeling or other commercialization activities that are ancillary to marketing, promotion or selling of Products or (iii) commercial sale of Products outside of [**].
“Original Counter Proposed Consensus Value” has the meaning set forth in Exhibit A.
“Original Proposed Consensus Value” has the meaning set forth in Exhibit A.
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“Patent Office” means the applicable patent office, including the United States Patent and Trademark Office and any comparable foreign patent office, for the registration of any patents and patent applications.
“Patent Rights” shall have the meaning ascribed thereto in Section 1.56 of the License Agreement.
“Permitted Liens” means any (i) mechanic’s, materialmen’s, and similar liens for amounts not yet due and payable, (ii) statutory liens for taxes not yet due and payable or for taxes that the taxpayer is contesting in good faith, (iii)  Liens in favor of the Buyer, and (iv) other liens and encumbrances not incurred in connection with the borrowing of money that do not materially and adversely affect the use or value of the affected assets provided that, in each case, such liens are automatically released upon the sale or other transfer of the affected assets (it being understood that any obligations secured by such “Permitted Liens” shall remain the obligations of the Seller).
“Permitted Royalty Reduction” means a reduction to the Royalty pursuant to Sections 11.5.3, 11.5.4, 11.5.5 or 14.2 of the License Agreement or a Permitted Withholding Tax Royalty Reduction, except, in each case, to the extent that such reduction was the direct result of a material breach or default by the Seller of the License Agreement or this Agreement.  For the avoidance of doubt, no amounts paid or owed to Foundation, including under the Sponsored Research Agreement, shall be considered a Permitted Royalty Reduction.
“Permitted Withholding Tax Royalty Reduction” means a reduction to a Royalty payment pursuant to Section 13 of the License Agreement, provided that reductions to a Royalty payment under Section 13 of the License Agreement shall not constitute Permitted Withholding Tax Royalty Reductions if such reductions result from changes to the Seller (or its Affiliate’s) jurisdiction or corporate structure, or the taking of any action by the Seller which has the effect of subjecting such Person (or payments made by or on their behalf) to additional Taxes or Tax laws. 
“Person” means any individual, firm, corporation, company, partnership, limited liability company, trust, joint venture, association, estate, trust, Governmental Entity or other entity, enterprise, association or organization.
“Prime Rate” means the prime rate published by the Wall Street Journal, from time to time, as the prime rate.
“Pro Rata Portion” means (a) with respect to the Buyer, 42.933%, and (b) with respect to the Seller, 57.067%.
“Proceeds” means any amounts actually recovered by the Seller (or its designee) as a result of any settlement or resolution of any actions, suits, proceedings, claims or disputes related to the License Agreement, the Sponsored Research Agreement or otherwise related to or involving the Royalty or any Product.
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“Product” shall have the meaning ascribed thereto in Section 1.61 of the License Agreement.
“Product Information” means (a) all notices between, to or from the Seller and Licensee under the License Agreement and (b) all other information the Seller receives or furnishes under the License Agreement with respect to matters that would reasonably be expected to result in a Product MAE.
“Product MAE” means (i) a material adverse effect on the legality, validity or enforceability of any provision of this Agreement, (ii) a material adverse effect on the ability of the Seller to perform any of its obligations hereunder, (iii) a material adverse effect on the rights or remedies of the Buyer hereunder, (iv) an adverse effect on the rights of the Seller under the License Agreement or the Sponsored Research Agreement, other than as a result of Credit Event, that has a material adverse effect on the Royalty, (v) an adverse effect on the performance of the parties under the License Agreement or the Sponsored Research Agreement, including related to the approval or commercialization of the Products, other than as a result of a Credit Event, that has a material adverse effect on the Royalty, or (vi) any other adverse effect in any material respect on the timing, amount or duration of the payments to be made to the Buyer in respect of any portion of the Royalty or the right of the Buyer to receive such payments, in each case other than as a result of a Credit Event or Permitted Royalty Reduction; provided, however, that a delay in obtaining or failure to obtain regulatory approval for any Product shall not in and of itself constitute a Product MAE, it being understood that the underlying facts and circumstances giving rise to such delay or failure may constitute, and may be taken into account in determining whether there has been, a Product MAE as described in the foregoing clauses (i)-(vi).
“PTC Know-How” shall have the meaning ascribed thereto in Section 1.64 of the License Agreement.
“PTC Patent Rights” shall have the meaning ascribed thereto in Section 1.65 of the License Agreement, only to the extent that such PTC Patent Rights relate to risdiplam or a Marketed Product.
“Purchase Price” means $650,000,000.
“Receiving Party” is defined in Section 6.1.
“Representative” means, with respect to any Person, any manager, director, officer, employee, agent, advisor or other representative (including attorneys, accountants, consultants, bankers, financial advisors and actual and potential lenders and investors) of such Person. 
“Research Plan” shall have the meaning ascribed thereto in Section 1.69 of the License Agreement.
“Revaluation Event” has the meaning set forth in Exhibit A.
“Revaluation Notice” has the meaning set forth in Exhibit A.
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“Reversionary Rights” is defined in Section 5.8(b)(ii).
“Risdiplam” means the compound with the chemical structure set forth in Schedule 1.1 hereto, regardless of whether such term is capitalized herein. 
“Roche Know-How” shall have the meaning set forth in Section 1.74 of the License Agreement.
“Roche Patent Rights” shall have the meaning set forth in Section 1.75 of the License Agreement.
“Royalty” means (i) all payments payable to the Seller under Section 11.5 of the License Agreement, (ii) any payments to the Seller under the License Agreement in lieu of such payments of the foregoing clause (i), (iii) amounts payable to the Seller under Section 14.2 of the License Agreement in respect of payments described in the foregoing clauses (i) and (ii) (other than reimbursed audit costs under such section), (iv) subject to Section 5.10(f), amounts payable to the Seller under Section 15.8 of the License Agreement (other than reimbursed expenses as provided in Section 5.10(f)) and (v) any interest payments to the Seller under Section 12.2 of the License Agreement assessed on any payments described in the foregoing clauses (i), (ii), (iii) or (iv).  For the avoidance of doubt, the Royalty shall not include any payments or amounts payable to the Seller under Sections 11.1, 11.2, 11.3, or 11.4 of the License Agreement, including any amounts payable to the Seller under Sections 12.2 or 14.2 of the License Agreement in respect of such payments.
“Royalty Reduction” is defined in Section 4.1(h)(xii).
“Royalty Report Certification” is defined in Section 5.4(b).
“Royalty Reports” means the quarterly reports deliverable by Licensee pursuant to Section 12.5 of the License Agreement.
“Royalty Term” shall have the meaning ascribed thereto in Section 1.77 of the License Agreement.
“Seller” is defined in the preamble.
“Seller Business Combination” is defined in Section 5.15.
“Seller Closing Certificate” is defined in Section 3.2(a).
“Seller Direct Undertaking” is defined in Section 5.8(b)(i).
“Seller New Arrangement” is defined in Section 5.8(b)(i).
“Seller New Licensee” is defined in Section 5.8(b)(i).
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“SMAF Clinical Trials Advisory Committee” shall have the meaning ascribed thereto in Section 5.1.1 of the License Agreement 
“Sponsored Research Agreement” is defined in the recitals.
“SRA Compound” shall have the meaning ascribed thereto in Section 1.82 of the License Agreement.
“SRA Development Plan” shall have the meaning ascribed thereto in Section 1.81 of the License Agreement.
“SRA Product” shall have the meaning ascribed thereto in Section 1.81 of the License Agreement.
“Standstill Termination” is defined in Section 5.15.
“Tax” or “Taxes” means any federal, state, local or non-U.S. income, gross receipts, license, payroll, employment, excise, severance, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, abandoned property, value added, alternative or add-on minimum, estimated or other tax of any kind whatsoever, including any interest, penalty or addition thereto, whether disputed or not.
“Territory” shall have the meaning ascribed thereto in Section 1.85 of the License Agreement. 
“Third Party” means any Person other than the Buyer, the Seller or any of their respective Affiliates. 
“Transaction Documents” means this Agreement, the Bill of Sale, the Disclosure Schedule and the Licensee Instruction Letter.
“Triggering Termination” is defined in Section 5.8(b)(ii).
“UCC” means Article 9 of the New York Uniform Commercial Code, as in effect from time to time.
Section 1.2 Certain Interpretations.  Except where expressly stated otherwise in this Agreement, the following rules of interpretation apply to this Agreement:
(i)“either” and “or” are not exclusive and “include,” “includes” and “including” are not limiting and shall be deemed to be followed by the words “without limitation;”
(ii)“extent” in the phrase “to the extent” means the degree to which a subject or other thing extends, and such phrase does not mean simply “if;”
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(iii)“hereof,” “hereto,” “herein” and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement;
(iv)references to a Person are also to its permitted successors and assigns;
(v)definitions are applicable to the singular as well as the plural forms of such terms;
(vi)unless otherwise indicated, references to an “Article”, “Section” or “Exhibit” refer to an Article or Section of, or an Exhibit to, this Agreement, and references to a “Schedule” refer to the corresponding part of the Disclosure Schedule;
(vii)references to “$” or otherwise to dollar amounts refer to the lawful currency of the United States; and 
(viii)references to a law include any amendment or modification to such law and any rules and regulations issued thereunder, whether such amendment or modification is made, or issuance of such rules and regulations occurs, before or after the date of this Agreement.
Section 1.3 Headings.  The table of contents and the descriptive headings of the several Articles and Sections of this Agreement and the Exhibits and Schedules are for convenience only, do not constitute a part of this Agreement and shall not control or affect, in any way, the meaning or interpretation of this Agreement.
ARTICLE 2.
PURCHASE, SALE AND ASSIGNMENT OF THE ROYALTY

Section 2.1 Purchase and Sale.  Upon the terms and subject to the conditions of this Agreement, at the Closing, the Seller shall sell, transfer, assign and convey to the Buyer, and the Buyer shall purchase, acquire and accept from the Seller, free and clear of all Liens, all of the Seller’s right, title and interest in and to the Assigned Royalty Payments.  
Section 2.2 Purchase Price.  In full consideration for the sale, assignment, transfer and conveyance of the Assigned Royalty Payments, and subject to the terms and conditions set forth herein, at the Closing, the Buyer shall pay (or cause to be paid) to the Seller, or the Seller’s designee, the Purchase Price, to be paid in immediately available funds by wire transfer to one or more accounts specified by the Seller on Exhibit C. 
Section 2.3 No Assumed Obligations, Etc.  Notwithstanding any provision in this Agreement to the contrary, the Buyer is purchasing, acquiring and accepting only the Assigned Royalty Payments, and is not assuming any liability or obligation of the Seller of whatever nature, whether presently in existence or arising or asserted hereafter, under the License Agreement, the Sponsored Research Agreement or otherwise, including any payments due to the Foundation under the Sponsored Research Agreement.  Except as specifically set forth herein in respect of the Assigned Royalty Payments purchased, acquired and accepted hereunder, the 
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Buyer does not, by such purchase, acquisition and acceptance, acquire any other contract rights of the Seller under the License Agreement, the Sponsored Research Agreement or any other assets of the Seller.
Section 2.4 True Sale.  It is the intention of the parties hereto that, as between the parties hereto, the sale, transfer, assignment and conveyance contemplated by this Agreement constitute a sale of the Assigned Royalty Payments from the Seller to the Buyer and not a financing transaction, borrowing or loan.  Following the Closing, the Buyer will be the owner of the Assigned Royalty Payments, the Buyer will have no right to return the Assigned Royalty Payments to the Seller, and the Seller will have no right to repurchase the Assigned Royalty Payments from the Buyer.  The sole recourse of the Buyer against the Seller in respect of the Assigned Royalty Payments will be (a) for Royalty Reductions, only to the extent permitted under Section 5.3 hereof, and (b) claims by the Buyer for breach of the representations, warranties, and covenants of the Seller set forth herein.  Accordingly, the Seller shall treat the sale, transfer, assignment and conveyance of the Assigned Royalty Payments as a sale of an “account” or a “payment intangible” (as appropriate) in accordance with the UCC for legal purposes, and the Seller hereby authorizes the Buyer to file financing statements (and continuation statements with respect to such financing statements when applicable) naming the Seller as the debtor and the Buyer as the secured party in respect of the Assigned Royalty Payments.  Not in derogation of the foregoing statement of the intent of the parties hereto in this regard, and for the purposes of providing additional assurance to the Buyer in the event that, despite the intent of the parties hereto, the sale, transfer, assignment and conveyance contemplated hereby is hereafter held not to be a sale, the Seller does hereby grant to the Buyer, as security for the obligations of the Seller hereunder, a first priority security interest in and to all right, title and interest of the Seller, in, to and under the Assigned Royalty Payments and any “proceeds” (as such term is defined in the UCC) thereof, and the Seller does hereby authorize the Buyer, from and after the Closing, to file such financing statements (and continuation statements with respect to such financing statements when applicable) as are necessary to perfect such security interest.  Nothing herein shall mandate or limit the tax or accounting treatment of the transactions contemplated hereby by either party hereto.
ARTICLE 3.
CLOSING

Section 3.1 Closing; Payment of Purchase Price.  The purchase and sale of the Assigned Royalty Payments shall take place on the date hereof, or at such other place, time and date as the parties hereto may mutually agree (the “Closing”).  
Section 3.2 Closing Certificates.
(a) Seller’s Closing Certificate.  At the Closing, the Seller shall deliver to the Buyer a certificate of the Secretary of the Seller, dated as of the Closing Date, certifying (i) as to the incumbency of the officer of the Seller executing this Agreement and (ii) as to the attached copies of Seller’s certificate of incorporation, bylaws and resolutions adopted by the Seller’s board of directors authorizing the execution and delivery by the Seller of this Agreement 
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and the consummation by the Seller of the transactions contemplated hereby (the “Seller Closing Certificate”).
(b) Buyer’s Incumbency Certificate.  At the Closing, the Buyer shall deliver to the Seller a certificate of an authorized person of the owner trustee of the Buyer certifying as to the incumbency of the officers executing this Agreement on behalf of the Buyer (the “Buyer Incumbency Certificate”).
Section 3.3 Bill of Sale.  At the Closing, upon confirmation of the receipt of the Purchase Price, the Seller shall deliver to the Buyer a duly executed bill of sale evidencing the sale, transfer, assignment and conveyance of the Assigned Royalty Payments, substantially in the form attached hereto as Exhibit D (the “Bill of Sale”).
Section 3.4 Form W-9.  At the Closing, the Seller shall deliver to the Buyer a valid, properly executed IRS Form W-9 certifying that the Seller is exempt from U.S. federal withholding tax and “backup” withholding tax.
Section 3.5 Form W-8BEN-E.  At the Closing, the Buyer shall deliver to the Seller a valid, properly executed IRS Form W-8BEN-E certifying that the Buyer is exempt from U.S. federal withholding tax with respect to any and all payments of in respect of the Assigned Royalty Payments. 
Section 3.6 Data Room.  At the Closing, the Seller shall deliver to the Buyer an electronic copy of all of the information and documents posted as of the date hereof to the virtual data room established by the Seller and made available to the Buyer [**] (the “Data Room”) for archival purposes only.
ARTICLE 4.
REPRESENTATIONS AND WARRANTIES

Section 4.1 Seller’s Representations and Warranties.  Except as set forth in the Disclosure Schedule, the Seller represents and warrants to the Buyer that as of the date hereof:
(a) Existence; Good Standing.  The Seller is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware.  The Seller is duly licensed or qualified to do business and is in corporate good standing in each jurisdiction in which the nature of the business conducted by it or the character or location of the properties and assets owned, leased or operated by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified and in corporate good standing has not and would not reasonably be expected to result in, either individually or in the aggregate, a Product MAE.
(b) Authorization.  The Seller has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement.  The execution, delivery and performance of this Agreement, and the consummation of the transactions 
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contemplated hereby, have been duly authorized by all necessary corporate action on the part of the Seller.
(c) Enforceability.  This Agreement has been duly executed and delivered and constitutes a valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by applicable Bankruptcy Laws or by other equitable principles of general application.
(d) No Conflicts.  The execution, delivery and performance by the Seller of this Agreement and the consummation of the transactions contemplated hereby do not (i) contravene or conflict with the organizational documents of the Seller, (ii) contravene or conflict with or constitute a material default under any law or Judgment binding upon or applicable to the Seller, (iii) contravene or conflict with or constitute a default under the License Agreement or the Sponsored Research Agreement or (iv) except as would not reasonably be expected to result in a Product MAE, contravene or conflict with or constitute a default under any other contract or agreement binding upon or applicable to the Seller.
(e) Consents.  Except for filings required by the federal securities laws or stock exchange rules, no consent, approval, license, order, authorization, registration, declaration or filing with or of any Governmental Entity or other Person is required to be done or obtained by the Seller in connection with (i) the execution and delivery by the Seller of this Agreement, (ii) the performance by the Seller of its obligations under this Agreement or (iii) the consummation by the Seller of any of the transactions contemplated by this Agreement.
(f) No Litigation.  There is no action, suit, investigation or proceeding pending before any Governmental Entity or, to the Knowledge of the Seller, threatened to which the Seller is a party that, individually or in the aggregate would, if determined adversely, reasonably be expected to result in a Product MAE.
(g) Compliance with Laws.  The Seller is not in violation of and, to the Knowledge of the Seller, the Seller is not under investigation with respect to, nor has the Seller been threatened to be charged with or given notice of any violation of, any law or Judgment applicable to the Seller, which violation would reasonably be expected to result in a Product MAE.
(h) License Agreement; Sponsored Research Agreement.  Attached hereto as Exhibits E and F are true, correct and complete copies of, respectively, the License Agreement and the Sponsored Research Agreement, including any amendments, modifications, consents, assignments, ancillary agreements, licenses, sublicenses, transfers or waivers thereto or thereof as of the date hereof.  To the Knowledge of the Seller, the Seller has delivered to the Buyer, or has provided the Buyer access to, true, correct and complete copies of [**]. 
(i) No Other Agreements.  Exhibits E and F include all material agreements, instruments, arrangements, waivers or understandings (collectively, “Contracts”) between, by or among the Seller (or any predecessor or Affiliate thereof), Licensee (or any predecessor or Affiliate 
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thereof) and/or the Foundation (or any predecessor or Affiliate thereof), relating to the subject matter thereof, and there are no other Contracts between the Seller (or any predecessor or any Affiliate thereof), on the one hand, and Licensee (or any predecessor or Affiliate thereof) and/or the Foundation (or any predecessor or Affiliate thereof), on the other hand, that relate to the Royalty or that are primarily related to any Product (including the development or commercialization thereof), or that (with or without the giving of notice or passage of time, or both) would reasonably be expected to result in a Product MAE.  The Seller has not proposed, or received any proposal, to amend or waive any provision of the License Agreement or the Sponsored Research Agreement in any manner that would reasonably be expected (with or without the giving of notice or the passage of time, or both) to result in a Product MAE.  None of the executed Contracts included in Exhibits E and F, contain any provision, term or condition that would reasonably be expected to result in a Product MAE. 
(ii) Licenses/Sublicenses.  To the Knowledge of the Seller, other than Ordinary Course Licenses or Sublicenses or licenses or sublicenses among Licensee and its Affiliates (and its and their predecessors), (A) there are no licenses or sublicenses entered into by Licensee or any other Person (or any predecessor or Affiliate thereof) in respect of Licensee’s rights and obligations under the License Agreement (including any Licensed IP) and (B) there are no licenses or sublicenses entered into by the Foundation or any other Person (or any predecessor or Affiliate thereof) in respect of the Foundation’s rights and obligations under the Sponsored Research Agreement (including any Licensed IP).  The Seller has not received any notice from Licensee pursuant to Section 3.3 or Section 11.5.4 of the License Agreement, nor has the Seller been requested by or given consent to, nor is the Seller in negotiation with, Licensee, pursuant to such provisions.
(iii) Validity and Enforceability of License Agreement and the Sponsored Research Agreement.  Each of the License Agreement and the Sponsored Research Agreement is legal, valid, binding, enforceable, and in full force and effect except as may be limited by applicable Bankruptcy Laws or by general principles of equity (whether considered in a proceeding in equity or at law) or by any Credit Event.  Each of the License Agreement and the Sponsored Research Agreement will not cease to be legal, valid, binding, enforceable, and in full force and effect on identical terms, immediately following the consummation of the transactions contemplated by this Agreement, as a result of the consummation of the transactions contemplated by this Agreement.  The Seller is not, and, to the Knowledge of the Seller, neither the Licensee nor the Foundation is, in breach of the License Agreement or the Sponsored Research Agreement, as applicable, or in default thereunder, and no event has occurred that with notice or lapse of time would (i) permit termination of the License Agreement or the Sponsored Research 
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Agreement or (ii) constitute a breach, default, modification or trigger acceleration under or to the License Agreement or the Sponsored Research Agreement that would reasonably be expected (with or without the giving of notice or the passage of time, or both) to result in a Product MAE.  No party to the License Agreement or the Sponsored Research Agreement has repudiated any provision of the License Agreement or the Sponsored Research Agreement, as applicable, and the Seller has not received any notice in connection with the License Agreement or the Sponsored Research Agreement challenging the validity, enforceability or interpretation of any provision of such agreement or any obligation to pay any portion of the Royalty without set-off, rescission, counterclaim, reduction, credit or other deduction of any kind.
(iv) No Event Triggering Reversionary Rights.  The Seller has not received any notice of and is not aware of any acts or omissions, including those of Licensee or its Affiliates, that would reasonably be expected to result in a Reversionary Right.  
(v) Products.  Risdiplam and any products containing risdiplam as the active pharmaceutical ingredient that are owned or controlled by Seller or Licensee, including [**], constitute SRA Products under the License Agreement.  As of the date hereof, [**] (risdiplam) is the only Product that is currently being developed or commercialized under the License Agreement.
(vi) No Liens or Assignments by the Seller.  Except for Permitted Liens and as contemplated hereby, the Seller has not conveyed, assigned or in any other way transferred all or any portion of its right, title and interest in and to the Royalty or any Product.  There are no Liens, other than Permitted Liens, on all or any portion of the Seller’s right, title and interest in and to the Royalty or any Product.
(vii) No Waivers or Releases.  Except as provided in Exhibits E and F, the Seller has not granted any waiver under the License Agreement or the Sponsored Research Agreement, nor has the Seller released, in whole or in part, any counterparty from any of such counterparty’s obligations under the License Agreement or the Sponsored Research Agreement, in each case in any manner that is primarily related to any Product or that (with or without the giving of notice or passage of time, or both) would reasonably be expected to result in a Product MAE.  
(viii) No Termination.  The Seller has not (A) given Licensee any notice of termination of the License Agreement (whether in whole or in part) or any notice expressing any intention to terminate the License Agreement or (B) received any notice of termination of the License Agreement (whether in whole or in part) or any notice expressing any intention to terminate either the License Agreement.  To the Knowledge of the 
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Seller, no event has occurred that would give rise to the expiration or termination of the License Agreement.  The Seller has not (A) given the Foundation any notice of termination of the Sponsored Research Agreement (whether in whole or in part) or any notice expressing any intention to terminate the Sponsored Research Agreement or (B) received any notice of termination of the Sponsored Research Agreement (whether in whole or in part) or any notice expressing any intention to terminate either the Sponsored Research Agreement.  To the Knowledge of the Seller, no event has occurred that would give rise to the expiration or termination of the Sponsored Research Agreement.
(ix) Payments Made.  The Seller has timely received from Licensee the full amount of the payments due and payable under the License Agreement in accordance with the terms thereof.  The Seller has timely paid all amounts due under the Sponsored Research Agreement in accordance with the terms thereof.
(x) No Assignments by Licensee.  The Seller has not consented to any assignment, delegation or other transfer by Licensee or the Foundation or any of their respective predecessors of any of their respective rights or obligations related, directly or indirectly, to the Royalty or that primarily relate to any Product or that (with or without the giving of notice or passage of time, or both) would reasonably be expected to result in a Product MAE, under the License Agreement or the Sponsored Research Agreement, as applicable.  To the Knowledge of the Seller, neither Licensee nor the Foundation has assigned or otherwise transferred or granted any Liens with respect to any of its respective rights or obligations related, directly or indirectly, to the Royalty or that primarily relate to any Product or that (with or without the giving of notice or passage of time, or both) would reasonably be expected to result in a Product MAE.
(xi) No Indemnification Claims.  The Seller has not notified Licensee or the Foundation or any other Person of, or otherwise made, any claims for indemnification under the License Agreement or the Sponsored Research Agreement, nor has the Seller received any claims for indemnification under the License Agreement or the Sponsored Research Agreement, whether pursuant to Section 5.1.4 or Article 17 of the License Agreement or Article 8 of the Sponsored Research Agreement, or otherwise.
(xii) No Royalty Reductions.  The amount of the Royalty due and payable under Section 11.5 of the License Agreement is not, as of the date hereof, subject to any claim against the Seller pursuant to any right of set-off, rescission, counterclaim, reduction, credit, deduction or defense by contract or otherwise (any reduction on account of any such claim, a “Royalty Reduction”), including under Sections 11.5.3, 11.5.4, 11.5.5, 13 or 14.2 of the 
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License Agreement.  To the Knowledge of the Seller, other than with respect to any Royalty Reductions under Section 11.5.3 of the License Agreement, no event or condition exists that, upon notice or passage of time or both, would reasonably be expected to permit Licensee to claim, or have the right to claim, a Royalty Reduction.
(xiii) No Notice of Infringement.  The Seller has not received any notice from, or given any notice to, Licensee or the Foundation (or any of their respective predecessors or Affiliates) alleging any actual, potential, suspected or threatened infringement, misappropriation or other violation by a Third Party of any intellectual property rights related to any Product.
(xiv) Audits.  None of the Seller, the Licensee nor the Foundation has initiated, pursuant to Section 14 of the License Agreement or otherwise, any inspection or audit of books of accounts or other records pertaining to any Product, Net Sales, the calculation of royalties or other amounts payable to the Seller under the License Agreement.
(xiv) Adverse Events.  None of the Seller, Licensee or the Foundation has informed the other about serious adverse events occurring or having occurred in connection with the use of any Product under Section 9.2.1 of the License Agreement that has had, or would reasonably be expected to result in, a Product MAE, and no pharmacovigilance agreement under Section 9.2.3 of the License Agreement is or has been required. 
(xvi) Committee Membership.  As of the date hereof, the parties to the License Agreement have established the JSC, the SMAF Clinical Trials Advisory Committee, the JIPT, and the JOTs identified on Schedule 4.1(i)(xvi) of the Disclosure Schedule.  Schedule 4.1(i)(xvi) includes a list of the Alliance Directors and members of JSC, the SMAF Clinical Trials Advisory Committee, the JIPT, and the JOTs as of the date hereof.  All such committees have the authority under, and have been operating under the objectives, responsibilities and in the manner provided in, the License Agreement, and no material disputes have arisen in connection with any matters subject to the oversight of such committees.  The Seller has not exercised its rights pursuant to Section 7.14 of the License Agreement to determine not to appoint to, or withdraw members of, the JSC and any JOC and not to appoint or remove an Alliance Director, or withdraw from participation in the JSC and any JOT or other committee under the License Agreement.
(i) Title to Royalty.  The Seller has good and marketable title to the Royalty free and clear of all Liens (other than Permitted Liens).  Upon payment of the Purchase Price by the Buyer, the Buyer will acquire, subject to the terms and conditions set forth in this Agreement and the License Agreement, good and marketable title to the Assigned Royalty Payments, free and clear of all Liens (other than any Permitted Lien).
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(j) Intellectual Property. 
(i) Schedule 4.1(j)(i) of the Disclosure Schedule lists all Joint Patent Rights, PTC Patent Rights and, to the Knowledge of the Seller, Roche Patent Rights (collectively, the “Licensed Patents”).  The Seller is the sole owner of, and has the sole interest in, all of the PTC Patent Rights.  To the Knowledge of the Seller, Licensee is the sole owner of, and has the sole interest in, all of the Roche Patent Rights.  The Seller and Licensee collectively are the sole owners of, and collectively have the sole interest in, the Joint Patent Rights, and the Seller is the sole owner of, and has the sole interest in, its undivided half interest in each of the Joint Patent Rights.  Schedule 4.1(j)(i) of the Disclosure Schedule specifies as to each of the (x) PTC Patent Rights and Joint Patent Rights Handled by the Seller and (y) to the extent the following information has been provided by Licensee to the Seller with respect to the Roche Patent Rights, as applicable, the jurisdictions by or in which each such patent has issued as a patent or such patent application has been filed, including the respective patent numbers and application numbers and issue and filing dates.
(ii) There are no pending or, to the Knowledge of the Seller, threatened, litigations, interferences, reexamination, re-issue, inter partes reviews, post-grant-reviews, oppositions or like procedures involving any PTC Patent Rights or Joint Patent Rights.  To the Knowledge of the Seller, there are no pending or threatened litigations, interferences, reexamination, re-issue, inter partes reviews, post-grant-reviews, oppositions or the like procedures involving any Roche Patent Right. 
(iii) All of the issued PTC Patent Rights and the Joint Patent Rights Handled by the Seller are in full force and effect and have not lapsed, expired or otherwise terminated, and, to the Knowledge of the Seller, are valid and enforceable.  The Seller has not received any written notice relating to the lapse, expiration or other termination of any of the PTC Patent Rights or the Joint Patent Rights Handled by the Seller, or any written legal opinion that alleges that any of the issued PTC Patent Rights or the Joint Patent Rights Handled by the Seller is invalid or unenforceable.  To the Knowledge of the Seller, all of the issued Roche Patent Rights are in full force and effect and have not lapsed, expired or otherwise terminated, and are valid and enforceable.
(iv) Each individual associated with the prosecution of the PTC Patent Rights, the Joint Patent Rights Handled by the Seller and, to the Knowledge of the Seller, all other Joint Patent Rights, including the named inventors, has complied in all material respects with all applicable duties of candor and good faith in dealing with any Patent Office, including any duty to disclose to any Patent Office all information known by such inventors to be 
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material to the patentability of each of the PTC Patent Rights and Joint Patent Rights (including any relevant prior art), in each case, in those jurisdictions where such duties exist.  There is no Person who is or claims to be an inventor under any of the PTC Patent Rights or the Joint Patent Rights Handled by the Seller or, to the Knowledge of the Seller, any other Joint Patent Rights, who is not a named inventor thereof.
(v) The Seller has not, and, to the Knowledge of the Seller, Licensee has not, received any written notice of any claim by any Person challenging the inventorship or ownership of, the rights of the Seller or Licensee, as applicable, in and to, or the patentability, validity or enforceability of, any Licensed Patent, or asserting that the development, manufacture, importation, sale, offer for sale or use of the Product infringes any Patent Rights or other intellectual property rights of such Person.
(vi) To the Knowledge of the Seller, the development, manufacture, use, marketing, sale, offer for sale, importation or distribution of the Product has not infringed, misappropriated or otherwise violated any Patent Rights or other intellectual property rights owned by any other Person.  Neither the Seller nor, to the Knowledge of the Seller, Licensee, has in-licensed any Patent Rights or other intellectual property rights covering the manufacture, use, marketing, sale, offer for sale, importation or distribution of the Product.
(vii) To the Knowledge of the Seller, no Third Party has infringed, misappropriated or otherwise violated, or is infringing, misappropriating or otherwise violating, any of the Licensed Patents or any other Patent Rights claiming the composition of matter of, or the method of making or using, the Product, except as would not reasonably be expected to result in a Product MAE.
(viii) All required maintenance fees, annuities and like payments with respect to the PTC Patent Rights and Joint Patent Rights Handled by the Seller in accordance with Section 15.3 or 15.5 of the License Agreement, and to the Knowledge of the Seller, with respect to all other Licensed Patents, have been paid timely.
(k) UCC Representation and Warranties.  The Seller’s exact legal name is, and for the immediately preceding ten (10) years has been, “PTC Therapeutics, Inc.”.  The Seller is, and for the prior ten (10) years has been, incorporated in Delaware.
(l) Brokers’ Fees.  There is no investment banker, broker, finder, financial advisor or other intermediary who has been retained by or is authorized to act on behalf of the Seller who might be entitled to any fee or commission in connection with the transactions contemplated by this Agreement.
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Section 4.2 The Buyer’s Representations and Warranties.  The Buyer represents and warrants to the Seller that as of the date hereof:
(a) Existence; Good Standing.  The Buyer is a statutory trust duly organized, validly existing and in good standing under the laws of the State of Delaware.
(b) Authorization.  The Buyer has the requisite trust right, power and authority to execute, deliver and perform its obligations under this Agreement.  The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated hereby, have been duly authorized by all necessary action on the part of the Buyer.
(c) Enforceability.  This Agreement has been duly executed and delivered by an authorized person of the owner trustee of the Buyer and constitutes the valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms, except as may be limited by applicable Bankruptcy Laws or by general principles of equity (whether considered in a proceeding in equity or at law).
(d) No Conflicts.  The execution, delivery and performance by the Buyer of this Agreement do not and shall not (i) contravene or conflict with the organizational documents of the Buyer, (ii) contravene or conflict with or constitute a default under any material provision of any law binding upon or applicable to the Buyer or (iii) contravene or conflict with or constitute a default under any material contract or other material agreement or Judgment binding upon or applicable to the Buyer.
(e) Consents.  No consent, approval, license, order, authorization, registration, declaration or filing with or of any Governmental Entity or other Person is required to be done or obtained by the Buyer in connection with (i) the execution and delivery by the Buyer of this Agreement, (ii) the performance by the Buyer of its obligations under this Agreement, other than the filing of financing statement(s) in accordance with Section 2.4, or (iii) the consummation by the Buyer of any of the transactions contemplated by this Agreement.
(f) No Litigation.  There is no action, suit, investigation or proceeding pending or, to the knowledge of the Buyer, threatened before any Governmental Entity to which the Buyer is a party that would, if determined adversely, reasonably be expected to prevent or materially and adversely affect the ability of the Buyer to perform its obligations under this Agreement.
(g) Financing.  The Buyer has sufficient cash on hand to pay the entire Purchase Price.  The Buyer acknowledges that its obligations under this Agreement are not contingent on obtaining financing.
(h) Brokers’ Fees.  There is no investment banker, broker, finder, financial advisor or other intermediary who has been retained by or is authorized to act on behalf of the Buyer who might be entitled to any fee or commission in connection with the transactions contemplated by this Agreement.
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Section 4.3 No Implied Representations and Warranties.  EXCEPT AS EXPRESSLY SET FORTH IN SECTION 4.1, THE SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, INCLUDING WITH RESPECT TO MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE OR NONINFRINGEMENT, AND ANY SUCH REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED.  THE BUYER ACKNOWLEDGES THAT, EXCEPT AS SPECIFICALLY PROVIDED IN THIS ARTICLE 4, THE SELLER HAS ASSUMED NO RESPONSIBILITIES OF ANY KIND WITH RESPECT TO ANY ACT OR OMISSION OF LICENSEE WITH RESPECT TO THE DESIGN, DEVELOPMENT, MANUFACTURE, USE, SALE, DISTRIBUTION, MARKETING OR OTHER ACTIVITIES OF LICENSEE WITH RESPECT TO THE PRODUCT.
ARTICLE 5.
COVENANTS

Section 5.1 Disclosures.  Except for a press release previously approved in form and substance by the Seller and the Buyer, or any other public announcement using substantially the same text as such press release, neither the Buyer nor the Seller shall, and each party hereto shall cause its respective Representatives, Affiliates and Affiliates’ Representatives not to, issue a press release or other public announcement or otherwise make any public disclosure with respect to this Agreement or the subject matter hereof without the prior written consent of the other party hereto (which consent shall not be unreasonably withheld, conditioned or delayed), except as may be required by applicable law or stock exchange rule (in which case the party hereto required to make the press release or other public announcement or disclosure shall use commercially reasonably efforts to allow the other party hereto reasonable time to comment on such press release or other public announcement or disclosure in advance of such issuance).
Section 5.2 Payments.
(a) Payments.  
(i) Promptly, and in any event, within [**] following the Closing, the Seller shall deliver to the Licensee (x) an instruction letter, in substantially the form attached hereto as Exhibit G (the “Licensee Instruction Letter”), duly executed by the Buyer and the Seller, requesting that the Licensee pay the Assigned Royalty Payments to an account designated by the Buyer and deliver Royalty Reports directly to the Buyer simultaneously with delivery of Royalty Reports to the Seller, and (y) an IRS Form W-8BEN-E provided by Buyer pursuant to Section 3.5 hereof.  If, prior to the first Commercial Sale of Product, the Licensee does not agree to make payment of the Assigned Royalty Payments to an account designated by the Buyer, then (x) the parties shall execute and deliver to the Escrow Agent within [**] after the First Commercial Sale of a Product the Escrow Agreement and (y) the Seller shall instruct the Licensee to make all payments of the Royalty to the 
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Escrow Account until such time as the Assigned Royalty Cap is met.  In the event that the Seller sells, transfers, assigns or otherwise conveys any portion of its retained rights in the Royalty to an Affiliate or Third Party, the Buyer agrees not to object to amending, and to reasonably cooperate to amend, the Escrow Agreement to add any such Affiliate or Third Party for the purposes of directing to such Third Party any portion of the Royalty to which such Third Party may be entitled as a result of such transaction.  In no event shall the Escrow Agreement permit the Escrow Agent to distribute payments of the Royalty to the parties other than in accordance with each party’s applicable Pro Rata Portion, or to withhold any distribution to the parties (whether as a result of any claims between the parties or otherwise), in each case without the prior written consent of both parties.
(ii) If, notwithstanding the terms of this Agreement, the Licensee Instruction Letter and the Escrow Agreement, as applicable, the Licensee, or any other Person, makes any payment in respect of the Assigned Royalty Payments to the Seller (or to any of the Seller’s Affiliates or designees) instead of to the Buyer or the Escrow Account, as applicable, then:  (A) the Seller shall hold (or shall cause such Affiliate or designee to hold) such payment in trust for the sole benefit of the Buyer, (B) the Seller (or such Affiliate or designee) shall have no right, title or interest whatsoever in such payment and shall not create or suffer to exist any Lien thereon, and (C) the Seller (or such Affiliate or designee) promptly, and in any event no later than [**] following the receipt by the Seller (or such Affiliate or designee) of such payment, shall remit, or cause to be remitted, an amount equal to such payment to an account designated in writing by the Buyer or to the Escrow Account to be distributed pursuant to the Escrow Agreement, as applicable.
(iii) If, notwithstanding the terms of this Agreement, the Licensee Instruction Letter and the Escrow Agreement, as applicable, the Licensee, or any other Person, makes any payment due under the License Agreement that does not constitute an Assigned Royalty Payment, to the Buyer (or to any of the Buyer’s Affiliates or designees) instead of to the Seller or the Escrow Account, as applicable, or as otherwise instructed by the Seller, then:  (A) the Buyer shall hold (or shall cause such Affiliate or designee to hold) such payment in trust for the sole benefit of the Seller, (B) the Buyer (or such Affiliate or designee) shall have no right, title or interest whatsoever in such payment and shall not create or suffer to exist any Lien thereon, and (C) the Buyer (or such Affiliate or designee) promptly, and in any event no later than [**] following the receipt by the Buyer (or such Affiliate or designee) of such payment, shall remit, or cause to be remitted, an amount equal to such payment to an account designated in writing by the Seller or to the Escrow Account to be distributed pursuant to the Escrow Agreement, as applicable.
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(b) If either the Seller or the Buyer fails to timely comply with their respective obligations under Section 5.2(a), then all amounts not timely paid by the due date provided therein shall accrue interest from and including the date such amount was due through but excluding the date such payment in full (together with all interest thereon) is made to the applicable party, at a rate, calculated on a 365-day or 366-day basis, as applicable, equal to the then-current Prime Rate plus [**] percent ([**]%), compounded annually, not to exceed the maximum interest that may be charged under applicable law.
(c) Except as set forth in Section 5.2(a)(i), the Seller shall not revoke, amend, modify, supplement, restate, waive, cancel or terminate the Licensee Instruction Letter or any instruction to the Licensee to make payments in respect of the Royalty to the Escrow Agent without the prior written consent of Buyer.
Section 5.3 Royalty Reductions.  If Licensee exercises any Royalty Reduction against any payment of the Royalty that is not (a) a Permitted Royalty Reduction, (b) the result of any Credit Event or (c) a breach by Licensee of its payment obligations under the License Agreement, such Royalty Reduction shall not reduce the amount of any Assigned Royalty Payments to which the Buyer is entitled, and if such Royalty Reduction reduces any payment of the Assigned Royalty Payments to less than the full amount of the Assigned Royalty Payments, then the Seller shall promptly (and in any event within [**] following the payment of the Assigned Royalty Payments affected by such Royalty Reduction) make a true-up payment to the Buyer such that the Buyer receives the full amount of such Assigned Royalty Payments that would have been payable to the Buyer had such Royalty Reduction not occurred.  The Seller agrees to notify the Buyer in writing as promptly as possible (and in any event within [**]) of becoming aware of any actual or potential Royalty Reductions, including Permitted Royalty Reductions.  For the avoidance of doubt, any nonpayment by Licensee as a result of a Credit Event or a breach by Licensee of its payment obligations under the License Agreement shall not constitute a Royalty Reduction for purposes of this Section 5.3 and shall not obligate the Seller to make any payment under this Section 5.3 (unless and until such nonpayment is cured).  For all purposes hereunder, any true-up payment made pursuant to this Section 5.3 will be treated as paid with respect to the Royalty for U.S. federal income tax purposes to the fullest extent permitted by applicable law.
Section 5.4 Royalty Reports; Other Product Information. 
(a) Until such time as the Licensee has agreed to provide copies of Royalty Reports directly to the Buyer pursuant to the Instruction Letter, as promptly as possible (and in any event within [**]) following the receipt by the Seller of any Royalty Report, the Seller shall deliver to the Buyer a report in the form attached hereto as Exhibit H prepared by the Seller and certified by a duly authorized official of the Seller as to the authenticity of such Royalty Report (a “Royalty Report Certification”).  From and after such time as the Licensee has agreed to provide copies of Royalty Reports directly to the Buyer pursuant to the Instruction Letter, the Seller shall as promptly as possible (and in any event within [**]) deliver to the Buyer copies of any Royalty Reports not provided to the Buyer directly, and any supporting 
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documentation, information, or other reports (if any) received by the Seller from Licensee relating to the Royalty for such Calendar Quarter to the extent not provided to the Buyer directly.  
(b) The Seller agrees to request that Roche deliver Product Information (other than a Royalty Report as provided in Section 5.4(a) above) to the Buyer directly as more fully described in, and in accordance with the terms of, Exhibit I.  Until such time as the Licensee has agreed to deliver Product Information (other than Royalty Reports) directly to the Buyer, the Seller agrees to deliver to the Buyer, at least on a [**] basis, new or updated Product Information that the Seller receives from the Licensee.  On an at least [**] basis, the Seller shall deliver to the Buyer a reasonably detailed summary of new or updated information of which it has Knowledge about any decision, order, dispute or challenge, of or related to the validity, patentability, scope, priority, construction, non-infringement, inventorship, ownership or enforceability of any of the PTC Patent Rights, the Joint Patent Rights Patent or Roche Patent Rights or any claim thereof, or opposition of the grant of any patent that falls within the PTC Patent Rights, Joint Patent Rights or Roche Patent Rights, in any legal or administrative proceedings, including in a court of law, before the United States Patent and Trademark Office or other agency or tribunal in any jurisdiction, or in arbitration, including by reexamination, inter partes review, opposition, interference, post-grant review, nullity proceeding, preissuance submission, third party submission, derivation proceeding or declaratory judgment action.
(c) The Seller agrees to notify the Buyer within [**] after the Seller’s receipt or Knowledge of a Third Party Paragraph IV certification with respect to the PTC Patent Rights, the Joint Patent Rights or the Roche Patent Rights.  The Seller shall provide the Buyer [**] with a list, substantially in the form of Schedule 4.1(j)(i) of the Disclosure Schedule, of PTC Patent Rights and Joint Patent Rights Handled by the Seller or of which the Seller then has Knowledge covering the Product. 
(d) Notwithstanding the foregoing, until such time as the Licensee has agreed to deliver Product Information directly to the Buyer, if the Seller is advised by its counsel that providing the Buyer with a true, correct and complete copy of Product Information or other documents or information pursuant to this Agreement (whether pursuant to this Section 5.4 or otherwise) would be reasonably expected to constitute a material breach by the Seller of its confidentiality obligations under the License Agreement (a “Confidentiality Breach”), then the Seller shall, in lieu of delivery of such Product Information, provide a written summary thereof to the Buyer describing in as much detail as would not result in a Confidentiality Breach, the substance of such Product Information or other documents or information.  
Section 5.5 Actions under the License Agreement while the Seller is the Control Party.  The following provisions shall only apply while the Seller is the Control Party:
(a) Compliance; No Modifications to Reduce Assigned Royalty Payments.  The Seller shall comply in all material respects with its obligations under the License Agreement and the Sponsored Research Agreement.  The Seller shall not, without the prior written consent of the Buyer, make, propose, effect, deliver, execute or grant any amendment, modification, consent, notice or waiver, or take (or fail to take) any other action, under the License Agreement or the Sponsored Research Agreement that (with or without the giving of notice or passage of 
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time, or both) would reasonably be expected to result in a Product MAE.  Promptly (and in any event within [**]) after the Seller’s receipt of any written notice from Licensee of an alleged breach or default under the License Agreement or the Sponsored Research Agreement by the Seller, the Seller shall give written notice thereof to the Buyer, including delivering to the Buyer a copy of any such written notice.  The Seller shall use commercially reasonable efforts to cure any material breach or default by the Seller under the License Agreement or the Sponsored Research Agreement, as applicable, and shall give written notice to the Buyer upon curing any such breach or default.  The Seller shall pay all of its costs and expenses (including of counsel) in connection with any such breach or default.  Promptly (and in any event within [**]) after the Seller becomes aware of, or comes to believe in good faith that there has been, a breach of the License Agreement or the Sponsored Research Agreement by Licensee or the Foundation, the Seller shall provide notice of such breach to the Buyer.  If such breach (with or without the giving of notice or passage of time, or both) would reasonably be expected to result in a Product MAE, the Seller shall consult with the Buyer regarding the timing, manner and conduct of any enforcement of Licensee’s obligations under the License Agreement and shall consider in good faith all of Buyer’s timely comments and suggestions regarding such enforcement, provided that (i) nothing in this Section 5.5(a) shall obligate the Seller to take or refrain from taking any action in respect of any such enforcement and (ii) the Buyer shall pay its Pro Rata Portion of the reasonable and documented costs and expenses of any such enforcement (excluding any costs and expenses of or reimbursable by Licensee).  
(b) Notices, Correspondence and Other Information Delivered by the Seller.  The Seller shall send a copy of any Product Information that the Seller delivers to Licensee, the Foundation, any Governmental Entity or other governing authority, as the case may be, concurrently to the Buyer; provided, however, that the Seller shall (a) deliver to the Buyer any notices it intends to provide to Licensee pursuant to Section 7.15 of the License Agreement to the Buyer at least [**] prior to providing such notice to Licensee and shall consult with the Buyer regarding such notice.
Section 5.6 Actions under the License Agreement while the Buyer is the Control Party.  The following provisions shall only apply while the Buyer is the Control Party:
(a) Notices and Other Information to the Licensee.  The Seller shall not send, without the prior written consent of the Buyer (or refrain from sending if instructed to do so by the Buyer), any written notice or correspondence to Licensee, the Foundation, any Governmental Entity or any other Person if such notice or correspondence relates solely to the Assigned Royalty Payment or if such notice or correspondence would reasonably be expected (with or without the giving of notice or passage of time, or both) to result in a Product MAE.  Notwithstanding the foregoing, no prior consent of the Buyer shall be required for the Seller to deliver notice pursuant to Sections 7.15 or 20.2 of the License Agreement, provided, that the Seller shall deliver to the Buyer any notices it delivers to Licensee pursuant to Section 7.15 of the License Agreement substantially concurrently with delivery of such notice to Licensee.  The Seller shall deliver to the Buyer true, correct and complete copies of any notices it actually provides pursuant to the License Agreement concurrently with the Seller’s delivery thereof to the Licensee, Foundation or any other Person, as applicable.
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(b) Amendment of License Agreement.  The Seller shall not, except with the prior written consent of the Buyer (such consent not to be unreasonably withheld, conditioned or delayed if such amendment would not reasonably be expected, with or without the giving of notice or the passage of time, or both, to result in a Product MAE), amend, modify, waive, consent to or supplement or restate (or consent to any amendment, modification, waiver, consent, supplement or restatement of or to) any provision of the License Agreement or the Sponsored Research Agreement, including any plans or budgets thereunder.  Subject to the foregoing, promptly, and in any event within [**], following receipt by the Seller of any final amendment, modification, waiver, consent, supplement or restatement of the License Agreement, or the Sponsored Research Agreement, the Seller shall furnish a copy of the same to the Buyer.
(c) Maintenance of License Agreement.  
(i) The Seller shall comply in all material respects with its obligations under the License Agreement and the Sponsored Research Agreement and shall not take any action or forego any action that would reasonably be expected to constitute a material breach or default thereof.  Promptly, and in any event within [**], after receipt of any (written or oral) notice from Licensee of an alleged breach or default under the License Agreement or the Sponsored Research Agreement by the Seller under the License Agreement or the Sponsored Research Agreement, the Seller shall give written notice thereof to the Buyer, including delivering the Buyer a copy of any such written notice.  The Seller shall use its reasonable efforts to cure any breach or default by the Seller under the License Agreement or the Sponsored Research Agreement, as applicable, as reasonably instructed by the Buyer, and shall give written notice to the Buyer upon curing any such breach or default.  The Seller shall pay all of its costs and expenses (including of counsel) in connection with any such breach or default.
(ii) In connection with any dispute regarding any such alleged breach or default by Licensee that is related to the Royalty or primarily related to any Product or that would reasonably be expected (with or without the giving of notice or passage of time, or both) to result in a Product MAE, the Seller shall employ such counsel reasonably acceptable to the Seller as the Buyer shall select for such purpose, provided that the Buyer shall pay its Pro Rata Portion of the reasonable and documented costs and expenses incurred by the Seller in connection with any such dispute (net of any amounts recovered by the Seller).
(iii) The Seller shall consult with the Buyer prior to appointing to or withdrawing members of the JSC and any JOC and prior to appointing or removing an Alliance Director, or withdrawing from participation in the JSC and any JOT or other committee under the License Agreement.
(iv) The Seller shall not, except as mutually agreed by the parties, (a) forgive, release, settle or compromise any amount owed to or becoming owed to the Seller under the License Agreement in respect of the Royalty or (b) waive any obligation of, or grant any consent to, the Licensee under, in respect of or 
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related to the Royalty; provided, that neither the occurrence of a Credit Event nor any automatic effect of a Credit Event under the License Agreement without an affirmative action of the Seller shall itself be deemed any forgiving, release, settlement, compromise, waiver or consent by the Seller.
(v) If the Seller is provided with an opportunity to assist with the establishment of any budgets in connection with New Product development as provided in Section 5.2 of the License Agreement, or to agree to matters related to a diagnostic Product as provided in Section 11.7 of the License Agreement, the Seller shall undertake such activities in consultation with the Buyer.  The Seller further agrees to consult with and give due consideration to the Buyer’s input in connection with the matters provided in Sections 7.8 and 10 of the License Agreement.
(vi) The Seller shall not exercise its rights under the License Agreement or the Sponsored Research Agreement in any manner that would result in a breach of this Agreement or would reasonably be expected (with or without the giving of notice or the passage of time, or both) to result in a Product MAE.
(d) Enforcement of License Agreement.
(i) Notice of Breaches by Licensee.  Promptly (and in any event within [**]) after the Seller becomes aware of, or comes to believe in good faith that there has been, a breach of the License Agreement or the Sponsored Research Agreement by Licensee or the Foundation, the Seller shall provide notice of such breach to the Buyer.  In addition, the Seller shall provide to the Buyer a copy of any written notice of such breach or alleged breach of the License Agreement or the Sponsored Research Agreement delivered by the Seller to Licensee as soon as practicable and in any event not less than [**] following such delivery.
(ii) Enforcement of License Agreement.  In the case of any breach by Licensee or the Foundation referred to in Section 5.6(d)(i), the Seller shall consult with the Buyer regarding the timing, manner and conduct of any enforcement of Licensee’s obligations under the License Agreement or the Foundation’s obligations under the Sponsored Research Agreement.  Following such consultation, the Seller shall, (i) as reasonably instructed by the Buyer, exercise such rights and remedies relating to any such breach as shall be available to the Seller, whether under the License Agreement, the Sponsored Research Agreement or by operation of law and, (ii) if such breach is related to the Royalty or would reasonably be expected (with or without the giving of notice or passage of time, or both) to result in a Product MAE, employ such counsel reasonably acceptable to the Seller as the Buyer shall select for such purpose.
(iii) Allocation of Proceeds and Costs of Enforcement.  Each of the Buyer and the Seller shall bear its own fees and expenses incurred in enforcing Licensee’s obligations under the License Agreement pursuant to this Section 
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5.6(d), provided that the Buyer shall pay its Pro Rata Portion of the reasonable and documented costs and expenses incurred by the Seller in connection with the Seller’s enforcement of the License Agreement in accordance with Section 5.6(d)(ii) (net of any amounts reimbursable by Licensee).  The Proceeds resulting from any enforcement of Licensee’s obligations under the License Agreement shall be applied first to reimburse the Seller and the Buyer for any expenses incurred by them in connection with such enforcement, and the remainder of the Proceeds shall be allocated between the Seller and the Buyer as though such Proceeds constituted Royalty payments.  The Seller hereby assigns and, if not presently assignable, agrees to assign to the Buyer the amount of Proceeds due to the Buyer in accordance with this Section 5.6(d).
Section 5.7 Inspections and Audits of Licensee.  If either party desires to cause an inspection as provided under Section 14 of the License Agreement, then the Seller and the Buyer agree to consult in good faith with each other in connection therewith.  Following such consultation, the Seller may, or if requested by the Buyer, shall, promptly provide written notice to Licensee to cause such an inspection.  The Seller shall, for purposes of Section 14 of the License Agreement, select such independent certified public accounting firm as is reasonably acceptable to both the Seller and the Buyer (as long as such independent certified public accountant is reasonably acceptable to Licensee as required by Section 14 of the License Agreement).  Each of the Buyer and the Seller shall be responsible for its Pro Rata Portion of the expense of any inspection or audit undertaken by either the Buyer or the Seller (including the fees and expenses of such independent certified public accounting firm designated for such purpose) that would otherwise be borne by the Seller pursuant to the License Agreement (if and as such expenses are actually incurred by the Seller).  The Seller shall deliver to the Buyer a copy of the results of any audit conducted pursuant to Section 14 of the License Agreement within [**] following the Seller’s receipt thereof (and the results of any such audit shall be considered Product Information).  If an audit reveals an underpayment by the Licensee, then the Royalty shall include the amount paid by the Licensee to the Seller to compensate for such underpayment in accordance with Section 14.2 of the License Agreement, with interest thereon as set forth in Section 12.2 of the License Agreement.  If an audit reveals an overpayment by the Licensee, then the Seller shall comply with its obligations set forth in Section 14.2 of the License Agreement and, in furtherance thereof, may, in its sole discretion, require that the Buyer pay the Seller an amount equal to the Buyer’s Pro Rata Portion of such overpayment or credit an amount equal to the Buyer’s Pro Rata Portion of such overpayment against future Assigned Royalty Payments.
Section 5.8 Termination of License Agreement.  
(a) The Seller shall not, without the prior written consent of the Buyer, (i) exercise any right to terminate the License Agreement, in whole or in part, (ii) agree with Licensee to terminate the License Agreement, in whole or in part, or (iii) take, or permit any Affiliate or sublicensee to take, any action that would reasonably be expected to give Licensee the right to terminate the License Agreement, in whole or in part.  The Seller shall not take any action, fail to take an action or permit an action to be taken, that would give Licensee the right to terminate the License Agreement under Section 20.3.1 thereof, provided that in no event shall the 
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Seller be obligated to prevent any termination of the License Agreement as a result of a Credit Event so long as such termination is not also a result of any affirmative action of the Seller.
(b) Effect of Termination.
(i) In the event that the License Agreement is terminated while the Seller is the Control Party and prior to a Change of Control of the Seller, and the Seller has rights under Section 20.4 of the License Agreement, the Seller shall have the right in its sole discretion to determine whether and how to continue the development and commercialization of Compounds and Products as provided in Section 20.4 of the License Agreement (including via direct sales by the Seller or its Affiliates and licenses to one or more distributors and other Third Parties on a regional basis); provided, that, the Seller shall consult with the Buyer as to its plans (a “Seller Direct Undertaking”).  If the Seller, in its sole discretion, determines to completely out-license to one or more Third Parties (each, a “Seller New Licensee”) the global development and commercialization of Compounds and Products (a “Seller New Arrangement”), the Seller shall notify the Buyer in writing and shall promptly provide copies of any license agreement with a Seller New Licensee for the continued commercialization of the Compounds and Products, and commercialization plans therefor.
(ii) If the License Agreement is terminated in whole or in part by Licensee pursuant to Section 20.3.3 (Termination Without a Cause) or by the Seller pursuant to Section 20.3.1 (Termination for Breach), Section 20.3.4 (Termination for Patent Challenge) or Section 20.3.5 (Termination for Post-Change of Control Material Change) in each case of the License Agreement while the Buyer is the Control Party or following a Change of Control of the Seller (any such termination while the Buyer is the Control Party or following a Change of Control of the Seller, a “Triggering Termination”), then the Seller shall have the first right to continue development and commercialization of Compounds and Products as provided in Section 20.4.1 of the License Agreement and pursue its rights under Sections 20.4.1.1, 20.4.1.2, 20.4.1.3, 20.4.1.4(i), 20.4.1.4(ii), 20.4.1.4(iii), 20.4.1.4(iv), 20.4.1.4(v), 20.4.1.5, 20.4.1.6, 20.4.1.7, 20.4.1.8 and 20.4.3 of the License Agreement (collectively, the “Reversionary Rights”).  The Seller shall inform the Buyer in writing within [**] of a Triggering Termination whether or not it has elected to pursue the Reversionary Rights and shall thereafter keep Buyer reasonably informed as to the status of, and shall use commercially reasonable efforts in connection with, the pursuit of such development and commercialization under the Reversionary Rights, including delivering to the Buyer concurrently with deliver of the same to Licensee, notice pursuant to Section 20.4.1.9 of the License Agreement.  In the event that the Seller does not notify the Buyer in writing that the Seller has elected to pursue the Reversionary Rights within [**] of a Triggering Termination, the Buyer shall have the right to cause the Seller to pursue the Reversionary Rights by delivering written notice to the Seller and the Seller shall act as reasonably instructed by the 
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Buyer to pursue the Reversionary Rights.  The Buyer shall indemnify, defend and hold harmless the Seller and its Affiliates against and in respect of all Losses suffered or incurred by the Seller or its Affiliates to the extent arising out of or resulting from the Seller’s or its Affiliates’ exercise of the Reversionary Rights solely at the Buyer’s direction following a Triggering Termination, other than (A) the Seller’s Pro Rata Portion of any out of pocket fees, including attorneys’, consultants’ or other professional advisor costs and expenses incurred in connection with exercising its Reversionary Rights pursuant to this Section 5.8(b)(ii) or as contemplated by Section 5.8(b)(iii) and (B) costs, expenses or other amounts attributable to the development, manufacture and commercialization of Compounds and Products under the License Agreement or the Sponsored Research Agreement that would otherwise have been borne by the Seller and its Affiliates.  The Seller shall promptly, and in any event within [**], provide the Buyer with access to all materials, reports, information and property delivered, provided or otherwise made available to the Seller in connection with such Triggering Termination, the Licensee’s ongoing obligations and the Reversionary Rights.
(iii) If there is a Triggering Termination and the Buyer is pursuing the Reversionary Rights pursuant to Section 5.8(b)(ii), the Buyer shall have the exclusive right to negotiate one or more licenses or sublicenses to continue to commercialize any Product that has obtained Regulatory Approval (each, a “Marketed Product”) with one or more Third Parties under the Reversionary Rights (each such license or sublicense, a “Buyer Negotiated Arrangement”).  The Seller shall reasonably cooperate with the Buyer, at the Buyer’s direction, in connection with the negotiation, execution and delivery of any Buyer Negotiated Arrangement.  Except with respect to the license or sublicense of any intellectual property rights included in the Reversionary Rights (which licenses or sublicenses shall be limited to the commercialization of the Marketed Product and any related development activities specifically with respect to such Marketed Product), no Buyer Negotiated Arrangement shall include terms, conditions and limitations that are, in the aggregate, more burdensome to the Seller than the licensing or sublicensing terms contained in the License Agreement.  The Buyer shall reimburse the Seller for the Buyer’s Pro Rata Portion of any out of pocket fees, including attorneys’, consultants’ or other profession advisor costs and expenses incurred in connection with the pursuit, negotiation or execution of any Buyer Negotiated Arrangement. 
(iv) In connection with any Seller Direct Undertaking, Seller New Arrangement or Buyer Negotiated Arrangement, (a) the Buyer shall be provided with economic rights equivalent to those remaining under this Agreement and with substantially the same other rights as provided in this Agreement, and (b) the Seller’s rights and obligations under this Agreement in respect of the License Agreement shall otherwise apply to any Seller Direct Undertaking, any Seller New Arrangement or any Buyer Negotiated Arrangement, in each case mutatis 
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mutandis.  In connection with any Buyer Negotiated Arrangement, the Seller shall be provided with economic rights equivalent to those remaining under this Agreement and with substantially the same other rights as provided in this Agreement.  As soon as practicable following the Seller delivering written notice to the Buyer of any Seller Direct Undertaking or the execution of any Seller New Arrangement or Buyer Negotiated Arrangement by each party thereto, the Buyer and the Seller shall cooperate with one another to enter into new agreements (or to make amendments or modifications to this Agreement, the Bill of Sale and such other documents and the Buyer may reasonably request) to effect this clause (iv). 
Section 5.9 No Liens.  The Seller shall not hereafter mortgage, pledge, hypothecate or grant a security interest or other Lien of any kind in (i) the Assigned Royalty Payments (other than a Permitted Lien) or (ii) any of its interest in any portion of the PTC Patent Rights, Joint Patent Rights, any Product or the License Agreement (other than a Permitted Lien).
Section 5.10 Enforcement; Defense; Prosecution and Maintenance. 
(a) The Seller shall promptly inform the Buyer of any suspected infringement by a Third Party of any of the Licensed IP or if any Third Party alleges that manufacture, use, sale, offer for sale or import of a Product infringes the intellectual property rights of a Third Party.  The Seller shall (i) provide to the Buyer a copy of any written notice of any such suspected infringement and all pleadings filed in such action and (ii) notify the Buyer of any material developments in any claim, suit or proceeding resulting from such infringement that are delivered by or to Licensee or the Seller under Sections 15.8 and 15.9 of the License Agreement or otherwise as soon as practicable and in any event not less than [**] following such delivery.  
(b) In the event the Buyer is the Control Party, and if the Seller has the right to join or assume the defense or pursuit of an enforcement action pursuant to Section 15.8 or 15.9 of the License Agreement, the Seller shall, if requested in writing by the Buyer, promptly, and in any event within [**] after receipt of such request, exercise such right as reasonably instructed by the Buyer and, if requested by the Buyer, the Seller shall employ such counsel reasonably acceptable to the Seller as the Buyer shall select for such purpose, provided that the Buyer shall pay its Pro Rata Portion of the costs and expenses of any such counsel.  In the event the Buyer is the Control Party, the Seller shall not, except as reasonably instructed by the Buyer,  exercise any consent or consultation rights under Section 15.8 or 15.9 of the License Agreement.  In the event the Buyer is the Control Party, the Seller shall not, except as reasonably instructed by the Buyer, join any infringement action under Section 15.8 or 15.9 of the License Agreement.  To the extent the Seller exercises its right to join or assume the defense or pursue an action while the Buyer is the Control Party pursuant to this Section 5.10(b), the Seller shall act as reasonably instructed by the Buyer satisfy its obligations under Section 15.8 or 15.9 of the License Agreement, including to (1) diligently defend or enforce any Licensed Patents (including by bringing and defending any counterclaim of invalidity or unenforceability, defending against any action of a Third Party for declaratory judgment of non-infringement or non-interference or bringing any legal action for infringement) and (2) not disclaim or abandon, or fail to take any 
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action necessary or desirable to prevent the disclaimer, abandonment or dismissal (including through lack of enforcement against Third Party infringers) of any defense of invalidity or unenforceability or any legal action for infringement of any Licensed Patents in the Territory for which it has elected to join or assume the defense or pursue an enforcement action pursuant to this Section 5.10(b).  
(c) Promptly (and in any event within [**]) following the Seller’s receipt of written notice from the Licensee pursuant to Section 15.4 or 15.5 of the License Agreement of the Licensee’s intention to allow any of the Roche Patent Rights or the Joint Patent Rights in the Territory to lapse or become abandoned or to not file patent applications for any of the Roche Patent Rights or Joint Patent Rights in the Territory (such Patent Rights, the “Applicable Listed Patents”), the Seller shall inform the Buyer of such notice and, if the Buyer is the Control Party, the Seller shall, as mutually agreed with the Buyer, exercise its rights under Section 15.4 or 15.5 of the License Agreement to assume the prosecution and maintenance of any such Applicable Listed Patents and each of the Buyer and the Seller shall pay its Pro Rata Portion of the expenses in connection therewith.  If the Seller, in its reasonable discretion and after consultation with the Buyer, determines to abandon or not file any patent applications, the Buyer shall have the right, at its sole expense, to direct the Seller to assume the prosecution and maintenance of any such Applicable Listed Patents and the Buyer shall be solely responsible for the expenses in connection therewith.
(d) The Seller shall satisfy, at its own expense, its prosecution obligations under Sections 15.3, 15.4 and 15.5 of the License Agreement, which actions while the Buyer is the Control Party shall be reasonably determined by the Buyer after consultation with the Seller, including to (i) take any and all actions, and prepare, execute, deliver and file any and all agreements, documents and instruments, that are reasonably necessary or desirable to diligently prosecute, preserve and maintain any Licensed Patents in the Territory for which it controls the prosecution and maintenance, including payment of maintenance fees or annuities on any such Licensed Patents, (ii) prosecute any corrections, substitutions, reissues, reviews, interferences and reexaminations of any Licensed Patents in the Territory, for which it controls the prosecution and maintenance, and file any other forms of patent term restoration in any applicable jurisdiction in the Territory, (iii) diligently defend any Licensed Patents for which it controls the prosecution and maintenance against any opposition, inter partes review, post-grant review or other proceeding before any Patent Office, and (iv) not disclaim or abandon, or fail to take any action necessary or desirable to prevent the disclaimer or abandonment, of any Licensed Patents in the Territory for which it controls the prosecution and maintenance.  To the extent the Seller does not control the prosecution and maintenance obligations under Sections 15.3, 15.4 and 15.5 of the License Agreement, the Seller shall use commercially reasonable efforts to cause Licensee (or the Foundation, as applicable) to satisfy its prosecution and maintenance obligations thereunder and the Seller shall at its own expense exercise its consulting, request, consent, approval or similar rights, with such exercise to be reasonably determined by the Buyer after consultation with the Seller in the event the Buyer is the Control Party.   
(e) Nothing in this Section 5.10 shall be construed to limit the Seller’s obligations pursuant to Section 5.5(a) while the Seller is the Control Party.
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(f) The Proceeds resulting from any enforcement actions under Section 15.8 of the License Agreement shall be applied first to reimburse for any expenses incurred by the Seller and the Buyer in connection with such enforcement, and the remainder of the Proceeds shall be allocated between the Seller and the Buyer as though such Proceeds constituted Royalty payments; provided, however, that in the event that the Seller initiates an action pursuant to Section 15.8 of the License Agreement, the Seller shall promptly notify the Buyer of such action and the Proceeds of any such action shall be allocated between the Seller and the Buyer as though such Proceeds constituted Royalty payments only if the Buyer funds its Pro Rata Portion of the costs of such action.
Section 5.11 Additional Monetizations.  The Seller agrees to notify the Buyer in writing at least [**] prior to entering into a definitive agreement with a Third Party to assign, convey, monetize, impose a Lien upon or otherwise transfer or encumber any or all of its retained interest in the Royalty (a “Definitive Monetization Agreement”).  For the avoidance of doubt, nothing herein shall prevent or limit the ability of the Seller to enter into or consummate any such Definitive Monetization Agreement; provided, that, if the Seller is the Control Party, the Seller agrees that if any Definitive Monetization Agreement provides a Third Party with information rights that are more favorable than the information rights provided to the Buyer in this Agreement, the Seller shall provide the Buyer with information rights that are as favorable to the Buyer as those provided to such Third Party, and the Seller shall effect such amendments or modifications to this Agreement or execute such other documents as the Buyer may reasonable request to effect the foregoing and provided further, that, for the avoidance of doubt, nothing in this Section 5.11 shall in any way limit the Buyer’s rights pursuant to Section 5.5(a).
Section 5.12 Efforts to Consummate Transactions.  Subject to the terms and conditions of this Agreement, each of the Seller and the Buyer shall use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary under applicable law to consummate the transactions contemplated by this Agreement.  Each of the Buyer and the Seller agrees to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary in order to consummate or implement expeditiously the transactions contemplated by this Agreement.
Section 5.13 Further Assurances.  After the Closing, the Seller and the Buyer agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary in order to give effect to the transactions contemplated by this Agreement.  
Section 5.14 Tax Matters.  
(a) The Seller and Buyer shall treat the transactions contemplated by the Transaction Documents as a sale of the Assigned Royalty Payments for all United States federal state, local and non-U.S. Tax purposes.  Accordingly, any and all Assigned Royalty Payments made after the Closing Date shall be treated as made to the Buyer for United States federal, state, local and non-U.S. Tax purposes.
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(b) If there is a Permitted Withholding Tax Royalty Reduction, the Seller shall reasonably cooperate with, and assist, Buyer in delivering the prescribed forms necessary to reduce the applicable rate of, or to eliminate, withholding to the extent Buyer is entitled under any applicable tax treaty, in accordance with Section 13 of the License Agreement.
Section 5.15 Standstill.  The Buyer agrees that during the term of this Agreement, or upon an earlier Standstill Termination, without the consent of the Seller, the Buyer shall not, and shall cause its Affiliates not to, (a) propose any merger, consolidation, business combination, tender or exchange offer or other business combination or change of control transaction involving all or substantially all of the Seller’s equity, businesses or assets, on a consolidated basis (a “Seller Business Combination”); (b) provide financing to any Third Party in connection with a Seller Business Combination; (c) propose or seek, whether alone or in concert with others, any “solicitation” (as such term is used in the rules of the Securities and Exchange Commission) of proxies or consents to vote any securities of the Seller; (d) nominate any person as a director of the Seller; (e) propose any matter to be voted upon by the stockholders of the Seller; (f) directly or indirectly, form, join or in any way participate in a Third Party “group” (as such term is used in the rules of the Securities and Exchange Commission) (or discuss with any Third Party the potential formation of a group) with respect to any securities of the Seller or a Seller Business Combination; provided that, for the avoidance of doubt, nothing in this Section 5.15 shall prohibit the Buyer from agreeing to purchase any pharmaceutical royalties from the Seller or any Third Party.  The term “Standstill Termination” shall mean the earliest of (1) the public announcement that the Seller has entered into a definitive agreement with a Third Party for a Change of Control or a transaction involving a Seller Business Combination; (2) if any person(s) or “group” publicly announces or commences a tender or exchange offer to acquire voting securities of the Seller, that, if successful, would result in such person or group beneficially owning more than 50% of the then outstanding voting securities of the Seller; (3) if any person(s) or “group” commences a proxy contest with respect to the Seller and (4) if any person(s) or “group” files a Schedule 13D with respect to the beneficial ownership of at least [**]% of the then outstanding voting securities of the Seller by such person(s) or “group”.
ARTICLE 6.
CONFIDENTIALITY
Section 6.1 Confidentiality.  Except as provided in this Article 6 or otherwise agreed in writing by the parties, the parties hereto agree that each party (the “Receiving Party”) shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Agreement (which includes the exercise of any rights or the performance of any obligations hereunder) any information furnished to it by or on behalf of the other party (the “Disclosing Party”) pursuant to this Agreement (such information, “Confidential Information” of the Disclosing Party), except for that portion of such information that:
(a) was already known to the Receiving Party, other than under an obligation of confidentiality, at the time of disclosure by the Disclosing Party;
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(b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party;
(c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the Receiving Party in breach of this Agreement; 
(d) is independently developed by the Receiving Party or any of its Affiliates, as evidenced by written records, without the use of or reference of the Confidential Information; or
(e) is subsequently disclosed to the Receiving Party on a non-confidential basis by a Third Party without obligations of confidentiality with respect thereto.
Section 6.2 Authorized Disclosure.
(a) Either party may disclose Confidential Information with the prior written consent of the Disclosing Party or to the extent such disclosure is reasonably necessary in the following situations:
(i) prosecuting or defending litigation;
(ii) complying with applicable laws and regulations, including regulations promulgated by securities exchanges; 
(iii) complying with a valid order of a court of competent jurisdiction or other Governmental Entity; 
(iv) for regulatory, tax or customs purposes;
(v) for audit purposes, provided that each recipient of Confidential Information must be bound by customary obligations of confidentiality and non-use prior to any such disclosure (which obligations must be consistent with the obligations of confidentiality set forth in the License Agreement and no less protective than those in this Agreement);
(vi) disclosure to its Affiliates and Representatives on a need-to-know basis, provided that each recipient of Confidential Information must be bound by customary obligations of confidentiality and non-use prior to any such disclosure (which obligations must be consistent with the obligations of confidentiality set forth in the License Agreement and no less protective than those in this Agreement); or
(vii) disclosure to its actual or potential investors and co-investors, and other sources of funding, including debt financing, or potential partners, collaborators or acquirers, and their respective accountants, financial advisors and other professional representatives, provided, that such disclosure shall be made 
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only to the extent customarily required to consummate such investment, financing transaction partnership, collaboration or acquisition and that each recipient of Confidential Information must be bound by customary obligations of confidentiality and non-use prior to any such disclosure (which obligations must be consistent with the obligations of confidentiality set forth in the License Agreement and no less protective than those in this Agreement).
(b) Notwithstanding the foregoing, in the event the Receiving Party is required to make a disclosure of the Disclosing Party’s Confidential Information pursuant to Sections 6.2(a)(i), (ii), (iii) or (iv), it will, except where impracticable, give reasonable advance notice to the Disclosing Party of such disclosure and use reasonable efforts to secure confidential treatment of such information.  In any event, the Buyer shall not file any patent application based upon or using the Confidential Information of the Seller provided hereunder.  
ARTICLE 7.
TERMINATION

Section 7.1 Automatic Termination.  This Agreement shall continue in full force and effect until the earlier of sixty (60) days after such time as (A) the Buyer has received payments hereunder in an amount equal to the Assigned Royalty Cap and (B) Licensee (or any other applicable Third Party, including a New Licensee or a Buyer Selected Licensee) is no longer obligated to make any payments of the Royalty, at which point this Agreement, the Escrow Agreement and the Licensee Instruction Letter shall automatically terminate, except with respect to any rights that shall have accrued prior to such termination.
Section 7.2 Survival.  Notwithstanding anything to the contrary in this Article 7, the following provisions shall survive termination of this Agreement:  Section 5.1 (Disclosures), Section 5.2(a) (Payments; Adjustments for Pre-Closing Royalty Reductions), Article 6 (Confidentiality), Section 7.2 (Survival) and Article 8 (Miscellaneous).  Termination of the Agreement shall not relieve any party of liability in respect of breaches under this Agreement by any party on or prior to termination. 
ARTICLE 8.
MISCELLANEOUS

Section 8.1 Notices.  All notices and other communications under this Agreement shall be in writing and shall be by email with PDF attachment, courier service or personal delivery to the following addresses, or to such other addresses as shall be designated from time to time by a party hereto in accordance with this Section 8.1:
If to the Seller, to it at:
PTC Therapeutics, Inc.
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100 Corporate Court
South Plainfield, New Jersey 07080
Attention:  Legal Department
Email: [**]
With a copy to:
Wilmer Cutler Pickering Hale and Dorr LLP
60 State Street
Boston, Massachusetts 02109
Attention:  Steven D. Barrett and George W. Shuster, Jr.
Email:  steven.barrett@wilmerhale.com; george.shuster@wilmerhale.com
If to the Buyer, to it at:
RP Management, LLC
110 E. 59th Street, Suite 3300
New York, New York 0022
Attention:  George Lloyd
Email:  [**]
With a copy to:
Goodwin Procter LLP
100 Northern Avenue
Boston, Massachusetts 02210
Attention:  Arthur R. McGivern & Robert M. Crawford
Email:  amcgivern@goodwinlaw.com; rcrawford@goodwinlaw.com

All notices and communications under this Agreement shall be deemed to have been duly given (i) when delivered by hand, if personally delivered, (ii) when received by a recipient, if sent by e mail with delivery confirmation thereof, (iii) when sent, if sent by facsimile, with an acknowledgement of sending being produced by the sending facsimile machine or (iv) one (1) Business Day following sending within the United States by overnight delivery via commercial one- (1-)day overnight courier service.  
Section 8.2 Expenses.  Except as otherwise provided herein, all fees, costs and expenses (including any legal, accounting and banking fees) incurred in connection with the preparation, negotiation, execution and delivery of this Agreement and to consummate the transactions contemplated hereby shall be paid by the party hereto incurring such fees, costs and expenses.
Section 8.3 Assignment.  
(a) The Seller shall not sell, assign or otherwise transfer all or any portion of its interest in the Licensed PTC IP, any Product, the License Agreement, the Sponsored 
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Research Agreement or this Agreement to any Third Party, the Licensee or the Foundation by operation of law, merger, change of control, or otherwise, unless in connection therewith (a) such Person acquires all of the Seller’s interest in all of the Licensed PTC IP, all Products, the License Agreement, the Sponsored Research Agreement and this Agreement and (b) prior to closing any such transaction, the Seller causes such Person to deliver to the Buyer a writing in which (i) if such Person is not the Licensee, such Person assumes all of the obligations of the Seller to the Buyer under this Agreement, or (ii) if such Person is the Licensee, the Licensee assumes all of the obligations of the Seller to the Buyer hereunder and agrees to pay the Assigned Royalty Payments directly to the Buyer notwithstanding any subsequent termination of the License Agreement by the Licensee.  
(b) The Buyer may assign this Agreement in whole or in part; provided that in connection with any such assignment of this Agreement in whole or substantially in whole to a Third Party, or if a Third Party acquires all of the assets or securities of Royalty Pharma plc, on a consolidated basis, in a merger, tender offer, asset acquisition or similar transaction, the Buyer shall destroy or return to the Seller the Data Room and shall not transfer any rights to the Data Room in connection with such assignment or transaction.  
(c) This Agreement shall be binding upon, inure to the benefit of and be enforceable by, the parties hereto and their respective permitted successors and assigns.  Any purported assignment in violation of this Section 8.3 shall be null and void.
Section 8.4 Amendment and Waiver.
(a) This Agreement may be amended, modified or supplemented only in a writing signed by each of the parties hereto.  Any provision of this Agreement may be waived only in a writing signed by the parties hereto granting such waiver.
(b) No failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  No course of dealing between the parties hereto shall be effective to amend, modify, supplement or waive any provision of this Agreement.
Section 8.5 Independent Nature of Relationship.  The relationship between the Seller and the Buyer is solely that of seller and buyer, and neither the Seller nor the Buyer has any fiduciary or other special relationship with the other party hereto or any of its Affiliates.  Nothing in this Agreement shall be deemed in any way or for any purpose as constituting or creating any partnership or joint venture between the Seller and the Buyer or any other party for U.S. federal income tax or any other purpose.  Each of the Seller and the Buyer agree that they shall not take any inconsistent position with respect to such treatment in any filing with any Governmental Entity. 
Section 8.6 Entire Agreement.  This Agreement, the Exhibits annexed hereto and the Disclosure Schedule constitute the entire understanding between the parties hereto with 
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respect to the subject matter hereof and supersede all other understandings and negotiations with respect thereto.
Section 8.7 No Third Party Beneficiaries.  This Agreement is for the sole benefit of the Seller and the Buyer and their permitted successors and assigns and nothing herein expressed or implied shall give or be construed to give to any Person, other than the parties hereto and such successors and assigns, any legal or equitable rights hereunder.
Section 8.8 Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.
Section 8.9 JURISDICTION; VENUE.  
(a) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS RESPECTIVE PROPERTY AND ASSETS, TO THE EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK COUNTY, NEW YORK, AND ANY APPELLATE COURT THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, AND THE BUYER AND THE SELLER HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREE THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  THE BUYER AND THE SELLER HEREBY AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY APPLICABLE LAW.  EACH OF THE BUYER AND THE SELLER HEREBY SUBMITS TO THE EXCLUSIVE PERSONAL JURISDICTION AND VENUE OF SUCH NEW YORK STATE AND FEDERAL COURTS.  THE BUYER AND THE SELLER AGREE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THAT PROCESS MAY BE SERVED ON THE BUYER OR THE SELLER IN THE SAME MANNER THAT NOTICES MAY BE GIVEN PURSUANT TO SECTION 8.1 HEREOF.
(b) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY NEW YORK STATE OR FEDERAL COURT.  EACH OF THE BUYER AND THE SELLER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
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Section 8.10 Severability.  If any term or provision of this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any situation in any jurisdiction, then, to the extent that the economic and legal substance of the transactions contemplated hereby is not affected in a manner that is materially adverse to either party hereto, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect and the enforceability and validity of the offending term or provision shall not be affected in any other situation or jurisdiction. 
Section 8.11 Specific Performance.  Each of the parties acknowledges and agrees that the other parties would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached or violated.  Accordingly, each of the parties agrees that, without posting bond or other undertaking, the other parties shall be entitled to an injunction or injunctions to prevent breaches or violations of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action, suit or other proceeding instituted in any court of the United States or any state thereof having jurisdiction over the parties and the matter in addition to any other remedy to which it may be entitled, at law or in equity.  
Section 8.12 Limitations on Liability; Prevailing Party.  
(a) Each party shall be liable to the other for damages arising out of or relating to such party’s performance or failure to perform under this Agreement; provided, however, that the liability of a party to the other party, whether based on an action or claim in contract, equity, negligence, tort or otherwise, for all events, acts or omissions shall not exceed in the aggregate an amount equal to the Assigned Royalty Cap less the amount of Assigned Royalty Payments received by the Buyer.  No party hereto shall be liable for any consequential, punitive, special, indirect or incidental damages as a result of any breach or violation of any covenant or agreement of such party in or pursuant to this Agreement.  For the avoidance of doubt, and notwithstanding anything to the contrary in this Agreement, the Buyer shall have no recourse against the Company as a result of any Credit Event, any Permitted Royalty Reduction or any breach of the License Agreement by Licensee.  
(b) In connection with the foregoing, the parties hereto acknowledge and agree that (i) the Buyer’s damages, if any, for any such action or claim will typically include Losses for Assigned Royalty Payments that the Buyer was entitled to receive in respect of its ownership of the Assigned Royalty Payments but did not receive timely or at all due to the Seller’s breach, default or failure to perform under this Agreement and (ii) the Buyer shall be entitled to make claims for all such missing or delayed Assigned Royalty Payments as damages hereunder, and such missing or delayed Assigned Royalty Payments shall not be deemed consequential, punitive, special, indirect or incidental damages.
(c) If any dispute, litigation or other court action, arbitration or similar adjudicatory proceeding is commenced by any party to enforce its rights or to seek damages under this Agreement against the other party, all fees, costs and expenses, including, reasonable attorneys’ fees and court and collection costs, incurred by the prevailing party in such dispute, litigation, action, arbitration or proceeding shall be reimbursed by the non-prevailing party; 
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provided, that if a party to such dispute litigation, action, arbitration or proceeding prevails in part, and loses in part, the court, arbitrator or other adjudicator presiding over such litigation, action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses incurred by such Party on an equitable basis.
Section 8.13 Trustee Capacity of Wilmington Trust, National Association.  Notwithstanding anything contained herein to the contrary, it is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by Wilmington Trust, National Association, not individually or personally but solely in its trustee capacity, in the exercise of the powers and authority conferred and vested in it under the trust deed of the Buyer, (ii) each of the representations, undertakings and agreements herein made on the part of the Buyer is made and intended not as a personal representation, undertaking and agreement by Wilmington Trust, National Association but is made and intended for the purpose of binding only the Buyer and (iii) under no circumstances shall Wilmington Trust, National Association be personally liable for the payment of any indebtedness or expenses of the Buyer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Buyer under this Agreement or any related documents.
Section 8.14 Counterparts.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Copies of executed counterparts transmitted by telecopy, facsimile or other similar means of electronic transmission, including “PDF,” shall be considered original executed counterparts, provided receipt of such counterparts is confirmed.
[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have caused this Royalty Purchase Agreement to be executed and delivered by their respective representatives thereunto duly authorized as of the date first above written.
						
		PTC THERAPEUTICS, INC.
	By:	/s/ Stuart Peltz
		Name: Stuart Peltz
		Title: CEO
		
		RPI 2019 INTERMEDIATE FINANCE TRUST
	By:	Wilmington Trust, National Association, not in its individual capacity but solely in its capacity as owner trustee
	By:	/s/ Cynthia L. Major
		Name: Cynthia L. Major
		Title: Banking Officer
		
		ROYALTY PHARMA PLC
		(solely for the purposes of Section 5.15 hereof)
	By:	/s/ George W. Lloyd
		Name: George W. Lloyd
		Title: EVP, Investments & General Counsel

[SIGNATURE PAGE TO THE ROYALTY PURCHASE AGREEMENT]

Exhibit E

License Agreement

Incorporated by reference to Exhibit 10.14 of the Company’s Form S-1 Registration Statement filed with the Securities and Exchange Commission on May 16, 2013

Exhibit E

Exhibit F

Sponsored Research Agreement

Incorporated by reference to Exhibit 10.15 of the Company’s Form S-1 Registration Statement filed with the Securities and Exchange Commission on May 16, 2013

Exhibit FDocument

EXHIBIT 10.3

EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (the “Agreement”) is made as of October 28, 2019 (the “Effective Date”), by and between PTC Therapeutics, Inc., a Delaware corporation (the “Company”) and Matthew Klein (“Executive”).  In consideration of the mutual covenants contained in this Agreement, the Company and Executive agree as follows:
1.Employment.  The Company agrees to employ Executive and Executive agrees to be employed by the Company on the terms and conditions set forth in this Agreement.
(a) Capacity.  Executive shall serve the Company as Global Head of Gene and Mitochondrial Therapies, reporting to Marcio Souza, Chief Operating Officer, or such senior executive as the Company shall specify.  Executive shall have the responsibilities, duties and authority commensurate with the position of Global Head of Gene and Mitochondrial Therapies.  In addition to Executive’s primary duties, Executive shall perform such other services for the Company that are consistent with his/her position as Global Head of Gene and Mitochondrial Therapies as may be reasonably assigned to Executive from time to time by the individual to whom s/he reports or the Board of Directors of the Company (the “Board”) or their respective designees.  The principal location at which Executive shall perform such services shall be the Company’s corporate headquarters currently located at 100 Corporate Court, Middlesex Business Center, South Plainfield, New Jersey , subject to Section 2(c)(i) of this Agreement.
(b) Devotion of Duties; Representations.  During the Term (as defined below) of Executive’s employment with the Company, Executive shall devote his/her best efforts and full business time and energies to the business and affairs of the Company, and shall endeavor to perform the duties and services contemplated hereunder to the reasonable satisfaction of the  individual to whom s/he reports and the Board.  During the Term, Executive shall adhere to, and perform all of Executive’s duties in accordance with, all applicable laws, rules and regulations and all policies and procedures of the Company, as may be in effect from time to time. During the Term of Executive’s employment with the Company, Executive shall not, without the prior written approval of the Company (by action of the Board), undertake any other employment from any person or entity or serve as a director of any other company; provided, however, that (i) the Company will entertain requests as to such other employment or directorships in good faith and (ii) Executive will be eligible to participate in any policy relating to outside activities that is applicable to the senior executives of the Company and approved by the Board after the date hereof.
2. Term of Employment.
(a) Executive’s employment hereunder shall commence on the Effective Date.  Executive’s employment hereunder shall be terminated upon the first to occur of the following:
a.Immediately upon Executive’s death;
(ii) By the Company:

(A) By written notice to Executive effective the date of such notice, following the Disability of Executive.  “Disability” means that Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company.  Such incapacity shall be determined by a physician chosen by the Company and reasonably satisfactory to Executive (or Executive’s legal representative) upon examination requested by the Company (to which Executive hereby agrees to submit). Notwithstanding the foregoing, such Disability must result in Executive becoming “Disabled” within the meaning of Section 409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”) and the guidance issued thereunder.  (In this Agreement we refer to Section 409A of the Code and any guidance issued thereunder as “Section 409A”).
(B) By written notice to Executive, effective the date of such notice, for Cause (as defined below); or
(C) By written notice to Executive, effective ninety (90) days after the date of such notice and subject to Section 4 hereof, without Cause; or
(iii) By Executive:
(A) At any time by written notice to the Company, effective forty-five (45) days after the date of such notice; or
(B) By written notice to the Company for Good Reason (as defined below), effective on the date specified in such notice.
The term of Executive’s employment by the Company under this Agreement is referred to herein as the “Term.”
(b) Definition of “Cause”.  For purposes of this Agreement, “Cause” shall, pursuant to the reasonable good faith determination by a majority of the Board (excluding Executive) as documented in writing, include: (i) the willful and continued failure by Executive to substantially perform Executive’s material duties or responsibilities under this Agreement (other than such a failure as a result of Disability); (ii) any action or omission by Executive involving willful misconduct or gross negligence with regard to the Company, which has a detrimental effect on the Company; (iii) Executive’s conviction of a felony, either in connection with the performance of Executive’s obligations to the Company or which otherwise shall adversely affect Executive’s ability to perform such obligations or shall materially adversely affect the business activities, reputation, goodwill or image of the Company; (iv) the material breach of a fiduciary duty to the Company; or (v) the material breach by Executive of any of the provisions of this Agreement, 

provided that any breach of Executive’s obligations with respect to Sections 5 or 6 of this Agreement, subject to the cure provision in the next sentence, shall be deemed “material.”  In respect of the events described in clauses (i) and (v) above, the Company shall give Executive notice of the failure of performance or breach, reasonable as to time, place and manner in the circumstances, and a 30-day opportunity to cure, provided that such failure of performance or breach is reasonably amenable to cure as determined by the Board in its sole discretion.
(c) Definition of “Good Reason”.  For purposes of this Agreement, a “Good Reason” shall mean any of the following, unless (i) the basis for such Good Reason is cured within a reasonable period of time (determined in the light of the cure appropriate to the basis of such Good Reason, but in no event less than thirty (30) nor more than ninety (90) days) after the Company receives written notice (which must be received from Executive within ninety (90) days of the initial existence of the condition giving rise to such Good Reason) specifying the basis for such Good Reason or (ii) Executive has consented to the condition that would otherwise be a basis for Good Reason:
(i) A change in the principal location at which Executive provides services to the Company to a location more than fifty (50) miles from such principal location and/or to a location in New York City (either of which change, the Company has reasonably determined as of the date hereof, would constitute a material change in the geographic location at which Executive provides services to the Company), provided that such a relocation shall not be deemed to occur under circumstances where Executive’s responsibilities require him/her to work at a location other than the corporate headquarters for a reasonable period of time;
(ii) A material adverse change by the Company in Executive’s duties, authority or responsibilities as Global Head of Gene and Mitochondrial Therapies which causes Executive’s position with the Company to become of materially less responsibility or authority than Executive’s position immediately following the Effective Date.  For purposes of this definition of “Good Reason,” a “material adverse change” following a Corporate Change shall not include any diminution in authority, duties or responsibilities that is solely attributable to the change in the Company’s ownership structure but does not otherwise change Executive’s authority, duties or responsibilities (except in a positive manner) otherwise with respect to the Company’s business.
(iii) A material reduction in Executive’s base compensation (including Base Salary) except if the reduction is in connection with a general reduction of not more than 20% in compensation of senior executives of the Company generally that occurs prior to the effective date of any Corporate Change;
(iv) A material breach of this Agreement by the Company which has not been cured within thirty (30) days after written notice thereof by Executive; or
(v) Failure to obtain the assumption (assignment) of this Agreement by any successor to the Company.

(d)   Definition of “Corporate Change”.  For purposes of this Agreement, “Corporate Change” shall mean any circumstance in which (i) the Company is not the surviving entity in any merger, consolidation or other reorganization (or survives only as a subsidiary or affiliate of an entity other than a previously wholly-owned subsidiary of the Company); (ii) the Company sells, leases or exchanges or agrees to sell, lease or exchange all or substantially all of its assets to any other person or entity (other than a wholly-owned subsidiary of the Company); (iii) any person or entity, including a “group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934 (excluding, for this purpose, the Company or any Subsidiary, or any employee benefit plan of the Company or any Subsidiary, or any “group” in which all or substantially all of its members or its members’ affiliates are individuals or entities who are or were beneficial owners of the Company’s outstanding shares prior to the initial public offering, if any, of the Company’s stock), acquires or gains ownership or control (including, without limitations, powers to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power); or (iv) as a result of or in connection with a contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board of Directors of the Company.  Notwithstanding the foregoing, a “Corporate Change” shall not occur as a result of an initial public offering of the Company’s common stock, or as a result of a merger, consolidation, reorganization or restructuring after which either (1) a majority of the Board of Directors of the controlling entity consists of persons who were directors of the Company prior to the merger, consolidation, reorganization or restructuring or (2) Executive forms part of an executive management team that consists of substantially the same group of individuals and Executive is performing in a similar role, with similar authority and responsibility (other than changes solely attributable to the change in ownership structure), to that which existed prior to the reorganization or restructuring.  Notwithstanding the foregoing, for any payments or benefits hereunder that are subject to Section 409A, the Corporate Change must constitute a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(i).
3. Compensation.
(a) Base Salary.  Executive’s minimum base salary during the Term shall be at the rate of $400,000 per year (the “Base Salary”).  Base Salary shall be payable in substantially equal installments in accordance with the Company’s payroll practices as in effect from time to time, less any amounts required to be withheld under applicable law.  The Base Salary will be subject to adjustment from time to time in the sole discretion of the Board; provided that, the Company covenants that it shall not reduce the Base Salary below $400,000 or the Base Salary then in effect immediately prior to the reduction unless (i) Executive consents to such reduction, or (ii) the reduction is in connection with a general reduction of not more than 20% in compensation of senior executives of the Company generally that occurs prior to the effective date of any Corporate Change.
(b) Bonus.  In addition to the Base Salary, the Company may pay Executive an annual bonus (the “Bonus”) as determined by the Board, solely in its discretion (it being understood that Executive’s target annual bonus shall be at 40% of the Base Salary, but may be higher or lower in any year in the Board’s discretion).  The Board’s decision to issue a Bonus to Executive in any 

particular year shall have no effect on the absolute discretion of the Board to grant or not to grant a Bonus in subsequent years.  Any Bonus for a particular year shall be paid or provided to Executive in a lump sum no later than March 15th of the calendar year following the calendar year in which the Bonus was earned. Executive will not be eligible for a 2019 Bonus.
        (c) Equity Compensation.  Executive will receive an inducement grant of 100,000 options to purchase shares of common stock of PTC, subject to formal approval by the Compensation Committee of the Board (or a majority of the Company’s independent directors) (the “Inducement Grant”). Such award is granted pursuant to the inducement grant exception under NASDAQ rules and is intended to serve as a material inducement to Executive entering into employment with PTC. Executive shall be eligible to participate in PTC’s annual equity and long term incentive plan(s) and may be eligible to receive discretionary awards under such plan(s), subject to the terms and conditions of such plan(s). Executive shall not be eligible to participate in PTC’s annual equity program for the current calendar year. For the avoidance of doubt, Executive shall not be eligible to receive a discretionary award in 2020. Except as explicitly set forth below, Executive’s rights with respect to equity (including stock options) shall be covered in PTC’s equity and long term incentive plan(s) and separate stock option certificates or agreements for each grant. 
(i) Accelerated Vesting.
(A) For the avoidance of doubt, in the event that Executive’s employment hereunder is terminated by the Company without Cause or by Executive for Good Reason, neither the unvested portion of the Inducement Grant nor any unvested equity awards granted under the Company’s equity and long- term incentive plan(s) shall be subject to any accelerated vesting except as otherwise provided for in the applicable award agreement or in Section 3(c)(i)(B) below.
(B) Except as otherwise provided in the applicable award, in the event that Executive’s employment hereunder is terminated by the Company without Cause or by Executive for Good Reason within the period of three (3) months prior to (but only if negotiations relating to the particular Corporate Change that occurs are ongoing at the date of the notice of termination) or twelve (12) months after a Corporate Change that occurs during the Term (such fifteen-month period, the “Protected Period”), one hundred percent (100%) of the unvested portion of the Inducement Grant and all of Executive’s outstanding unvested equity awards granted under the Company’s equity and long-term incentive plan(s) shall vest immediately.

        

(d) Vacation.  Executive is eligible for time off programs outlined in the Company’s Time Off Policies.  Executive shall accrue over the calendar year 160 hours of paid vacation.   Executive may accrue up to 200 hours of vacation.  Once Executive has reached the maximum accrual, no further vacation time will be accrued unless and until the Executive uses vacation time. Upon termination of employment, the value of Executive’s current balance of accrued but unused vacation shall be paid out based on his/her Base Salary that was in effect immediately prior to his/her termination of employment.
(e) Fringe Benefits.  Executive shall be entitled to participate in any employee benefit plans that the Company makes available to its senior executives (including, without limitation, group life, disability, medical, dental and other insurance, retirement, pension, profit-sharing and similar plans) (collectively, the “Fringe Benefits”), provided that the Fringe Benefits shall not include any stock option or similar plans relating to the grant of equity securities of the Company.  These benefits may be modified or changed from time to time at the sole discretion of the Company.  Where a particular benefit is subject to a formal plan (for example, medical or life insurance), eligibility to participate in and receive any particular benefit is governed solely by the applicable plan document, and eligibility to participate in such plan(s) may be dependent upon, among other things, a physical examination.
(f) Reimbursement of Expenses.  Executive shall be entitled to reimbursement for all ordinary and reasonable out-of-pocket business expenses that are reasonably incurred by him/her in furtherance of the Company’s business in accordance with reasonable policies adopted from time to time by the Company for senior executives. The Company agrees to reimburse Executive for reasonable out-of-pocket fees related to maintaining Executive’s medical license.
(g) Relocation. Executive is eligible to be reimbursed for moving-related expenses incurred by Executive in relocating his residence from Menlo Park, California to such domicile that is within a reasonable commuting distance of PTC’s offices in South Plainfield, New Jersey in an amount not to exceed $250,000, subject to PTC’s applicable policies and procedures with respect to relocation and reimbursements; provided, however, that, Executive will be required to refund 100% such relocation expenses and reimbursements to the Company in the event that, prior to the first anniversary of Effective Date, Executive resigns his employment for any reason or PTC terminates Executive’s employment for Cause. Executive will be required to refund 50% of such relocation expenses and reimbursements to the Company in the event that, after the first anniversary of the Start Date but prior to the second anniversary of the Start Date Executive resigns his employment for any reason or PTC terminates Executive’s employment for Cause. Unless otherwise extended in writing by the Company, Executive’s relocation must be completed by June 30, 2020 and Executive will not be reimbursed for any relocation expenses that are incurred after such date. Relocation-related expenses may be considered taxable income as specified by IRS tax regulations. Executive agrees relocation to New Jersey is a condition of employment and that a failure to complete his relocation to New Jersey by June 30, 2020 (unless otherwise extended by the Company in 

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writing) will constitute a breach of this Agreement and could cause the Executive’s employment to be terminated for Cause as defined in section 2(b).

(h)  Cost of Living Adjustment. Executive will be eligible to receive a cost of living adjustment of $8,200, per month, commencing on the Effective Date and ending on the earlier of the completion of Executive’s relocation to New Jersey or March 31, 2020. The cost of living allowance will be paid in accordance with the company’s regular payroll practices.

(i) Sign-On Bonus. Executive will be eligible to receive a one-time, lump sum bonus of $61,823, payable on March 15, 2020; provided, however, that Executive must be employed by PTC and must not be in breach of this Agreement (as determined by the Board, in its discretion) at the time such bonus is to be paid in order to receive such bonus.

(j) Taxes and Withholdings. The Company shall deduct and withhold from all compensation and benefits under this Agreement all social security and other federal, state and local taxes and charges which currently are or which hereafter may be required by law to be so deducted and withheld.

4. Severance Compensation.
(a) In the event of any termination of Executive’s employment for any reason the Company shall pay Executive (or Executive’s estate) such portions of Executive’s Base Salary as have accrued prior to such termination and have not yet been paid, together with (i) amounts for accrued unused vacation days (as provided above), (ii) any amounts for expense reimbursement which have been properly incurred or the Company has become obligated to pay prior to termination and have not been paid as of the date of such termination and (iii) the amount of any Bonus previously granted to Executive by the Board but not yet paid, which amount shall not include any pro rata portion of any Bonus which would have been earned if such termination had not occurred (the “Accrued Obligations”).  
(b) In the event that Executive’s employment hereunder is terminated (i) by Executive for a Good Reason or (ii) by the Company without Cause, the Company shall pay to Executive the Accrued Obligations. In addition, the Company shall pay to Executive the severance benefits set forth in Section (b)(i) below for twelve (12) months following Executive’s termination of employment (the “Severance Period”), and pay to Executive the severance benefits set forth in Section (b)(ii). The receipt of any severance benefits provided in this Section shall be dependent upon Executive’s execution (and, as applicable, nonrevocation) of a standard separation agreement and general release of claims, substantially in the form attached hereto as Exhibit A (the “Release”). The Company will also consider in good faith (but without any 

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binding commitment) requests from Executive that the Company include in the Release a release of Executive by the Company from matters specifically disclosed to the Company by Executive in writing in advance of execution of the Release and not involving any illegality, fraud, concealment, criminal acts or acts outside the scope of Executive's employment. The distribution of severance benefits in this Section 4 is subject to section (iii) of this Section 4(b).
(i) If Executive’s employment is terminated (A) by Executive for a Good Reason or (B) by the Company without Cause, in either case before or after the Protected Period, the Company shall pay Executive his/her Base Salary, less any amounts required to be withheld under applicable law, for the Severance Period in substantially equal installments in accordance with the Company’s payroll practices as in effect from time to time, commencing no later than sixty (60) days following the effective date of such termination.  If Executive’s employment is terminated (A) by Executive for a Good Reason or (B) by the Company without Cause, in either case during the Protected Period, the Company shall pay Executive his/her Base Salary for the Severance Period, which total amount shall be payable in a lump sum no later than sixty (60) days following Executive’s termination of employment.  In each case, payments shall commence or be paid provided that the Release has been executed and any applicable revocation period has expired as of the 60th day following Executive’s termination.
(ii) The Company shall provide Executive with a lump sum payment representing the net value of the contributions to Executive’s current group health premiums that PTC would have paid on Executive’s behalf (had Executive continued to be an employee of PTC) for the Severance Period, less any amounts required to be withheld under applicable law. Such payment shall be made no later than sixty (60) days following the effective date of Executive’s termination; provided that the Release has been executed and any applicable revocation period has expired as of the 60th day following Executive’s termination. The foregoing shall not be construed to extend any period of continuation coverage (e.g., COBRA) required by Federal law.
(iii) Compliance with Section 409A.  Subject to the provisions in this Section 4(b)(iii), any severance payments or benefits under this Agreement shall begin only upon the date of Executive’s “separation from service” (determined as set forth below) which occurs on or after the date of termination of Executive’s employment.  The following rules shall apply with respect to the distribution of the severance payments and benefits, if any, to be provided to Executive under this Agreement:
(1) It is intended that each installment of the severance payments and benefits provided under this Agreement shall be treated as a separate “payment” for purposes of Section 409A.  Neither the Company nor Executive 

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shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A.
(2) If, as of the date of Executive’s “separation from service” from the Company, Executive is not a “specified employee” (within the meaning of Section 409A), then each installment of the severance payments and benefits shall be made on the dates and terms set forth in this Agreement.
(3) If, as of the date of Executive’s “separation from service” from the Company, Executive is a “specified employee” (within the meaning of Section 409A), then:
(A) Each installment of the severance payments and benefits due under this Agreement that, in accordance with the dates and terms set forth herein, will in all circumstances, regardless of when the separation from service occurs, be paid within the short-term deferral period (as defined under Section 409A) shall be treated as a short-term deferral within the meaning of Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A and such payments and benefits shall be paid or provided on the dates and terms set forth in this Agreement; and
(B) Each installment of the severance payments and benefits due this Agreement that is not described in Section 4(b)(iii)(3)(A) above and that would, absent this subsection, be paid within the six-month period following Executive’s “separation from service” from the Company shall not be paid until the date that is six months and one day after such separation from service (or, if earlier, Executive’s death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one day following Executive’s separation from service and any subsequent installments, if any, being paid in accordance with the dates and terms set forth herein; provided, however, that the preceding provisions of this sentence shall not apply to any installment of severance payments and benefits if and to the maximum extent that such installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation from service).  Any installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of Executive’s second taxable year following the taxable year in which the separation from service occurs.

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(4) The determination of whether and when Executive’s separation from service from the Company has occurred shall be made in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation Section 1.409A-1(h).  Solely for purposes of this Section 4(b)(iii), “Company” shall include all persons with whom the Company would be considered a single employer under Section 414(b) and 414(c) of the Code.
(5) All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Sections 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that (i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.
(6) Notwithstanding anything herein to the contrary, the Company shall have no liability to Executive or to any other person if the payments and benefits provided hereunder that are intended to be exempt from or compliant with Section 409A are not so exempt or compliant.
(c) In the event that Executive’s employment hereunder is terminated (i) by Executive for other than a Good Reason, or (ii) by the Company for Cause, or (iii) as a result of Executive’s death or Disability, then the Company will pay to Executive the Accrued Obligations.  The Company shall have no obligation to pay Executive (or Executive’s estate) any other compensation following such termination except as provided in Section 4(a).
(d) Modified Section 280G Cutback.
(i) Notwithstanding any other provision of this Agreement, except as set forth in Section 4(d)(ii), in the event that the Company undergoes a “Change in Ownership or Control” (as defined below), the Company shall not be obligated to provide to Executive a portion of any “Contingent Compensation Payments” (as defined below) that Executive would otherwise be entitled to receive to the extent necessary to eliminate any “excess parachute payments” (as defined in Section 280G(b)(1) of the Code) for Executive.  For purposes of this Section 4(d), the Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated Payments” and the aggregate amount (determined in accordance with Treasury Regulation Section 1.280G-1, Q/A-30 or any 

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successor provision) of the Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated Amount.”
(ii)  Notwithstanding the provisions of Section 4(d)(i), no such reduction in Contingent Compensation Payments shall be made if (1) the Eliminated Amount (computed without regard to this sentence) exceeds (2) 100% of the aggregate present value (determined in accordance with Treasury Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of the amount of any additional taxes that would be incurred by Executive if the Eliminated Payments (determined without regard to this sentence) were paid to him/her (including, state and federal income taxes on the Eliminated Payments, the excise tax imposed by Section 4999 of the Code payable with respect to all of the Contingent Compensation Payments in excess of Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code), and any withholding taxes).  The override of such reduction in Contingent Compensation Payments pursuant to this Section 4(d)(ii) shall be referred to as a “Section 4(d)(ii) Override.”  For purpose of this paragraph, if any federal or state income taxes would be attributable to the receipt of any Eliminated Payment, the amount of such taxes shall be computed by multiplying the amount of the Eliminated Payment by the maximum combined federal and state income tax rate provided by law.
(iii) For purposes of this Section 4(d) the following terms shall have the following respective meanings:
(1) “Change in Ownership or Control” shall mean a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company determined in accordance with Section 280G(b)(2) of the Code.
(2) “Contingent Compensation Payment” shall mean any payment (or benefit) in the nature of compensation that is made or made available (under this Agreement or otherwise) to a “disqualified individual” (as defined in Section 280G(c) of the Code) and that is contingent (within the meaning of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company.
(iv) Any payments or other benefits otherwise due to Executive following a Change in Ownership or Control that could reasonably be characterized (as determined by the Company) as Contingent Compensation Payments (the “Potential Payments”) shall not be made until the dates provided for in this Section 4(d)(iv).  Within 30 days after each date on which Executive first becomes entitled to receive (whether or not then due) a Contingent Compensation Payment relating to such Change in Ownership or Control, the Company shall determine and notify Executive (with reasonable detail 

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regarding the basis for its determinations) (1) which Potential Payments constitute Contingent Compensation Payments, (2) the Eliminated Amount and (3) whether the Section 4(d)(ii) Override is applicable.  Within 30 days after delivery of such notice to Executive, Executive shall deliver a response to the Company (the “Executive Response”) stating either (A) that s/he agrees with the Company’s determination pursuant to the preceding sentence or (B) that s/he disagrees with such determination, in which case s/he shall set forth (x) which Potential Payments should be characterized as Contingent Compensation Payments, (y) the Eliminated Amount, and (z) whether the Section 4(d)(ii) Override is applicable.  In the event that Executive fails to deliver an Executive Response on or before the required date, the Company’s initial determination shall be final.  If Executive states in the Executive Response that s/he agrees with the Company’s determination, the Company shall make the Potential Payments to Executive within three business days following delivery to the Company of the Executive Response (except for any Potential Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due).  If Executive states in the Executive Response that s/he disagrees with the Company’s determination, then, for a period of 60 days following delivery of the Executive Response, Executive and the Company shall use good faith efforts to resolve such dispute.  If such dispute is not resolved within such 60-day period, such dispute shall be settled exclusively by arbitration in South Plainfield, New Jersey, in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.  The Company shall, within three business days following delivery to the Company of the Executive Response, make to Executive those Potential Payments as to which there is no dispute between the Company and Executive regarding whether they should be made (except for any such Potential Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due).  The balance of the Potential Payments shall be made within three business days following the resolution of such dispute.
 (v) The Contingent Compensation Payments to be treated as Eliminated Payments shall be determined by the Company by determining the “Contingent Compensation Payment Ratio” (as defined below) for each Contingent Compensation Payment and then reducing the Contingent Compensation Payments in order beginning with the Contingent Compensation Payment with the highest Contingent Compensation Payment Ratio.  For Contingent Compensation Payments with the same Contingent Compensation Payment Ratio, such Contingent Compensation Payment shall be reduced based on the time of payment of such Contingent Compensation Payments with amounts having later payment dates being reduced first.  For Contingent Compensation Payments with the same Contingent Compensation Payment Ratio and the same time of payment, such Contingent Compensation Payments shall be reduced on a 

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pro rata basis (but not below zero) prior to reducing Contingent Compensation Payment with a lower Contingent Compensation Payment Ratio.  The term “Contingent Compensation Payment Ratio” shall mean a fraction the numerator of which is the value of the applicable Contingent Compensation Payment that must be taken into account by Executive for purposes of Section 4999(a) of the Code, and the denominator of which is the actual amount to be received by Executive in respect of the applicable Contingent Compensation Payment.  For example, in the case of an equity grant that is treated as contingent on the Change in Ownership or Control because the time at which the payment is made or the payment vests is accelerated, the denominator shall be determined by reference to the fair market value of the equity at the acceleration date, and not in accordance with the methodology for determining the value of accelerated payments set forth in Treasury Regulation Section 1.280G-1Q/A-24(b) or (c)).
(vi) The provisions of this Section 4(d) are intended to apply to any and all payments or benefits available to Executive under this Agreement or any other agreement or plan of the Company under which Executive receives Contingent Compensation Payments.
(vii) Notwithstanding Sections 4(d)(i)-(vi) hereof, until the closing of the first underwritten public offering of common stock of the Company, in the event that it shall be determined that any payment or benefit (including any accelerated vesting of options or other equity awards) made or provided, or to be made or provided, by the Company (or any successor thereto or affiliate thereof) to or for the benefit of Executive, whether pursuant to the terms of this Agreement, any other agreement, plan, program or arrangement of or with the Company (or any successor thereto or affiliate thereof) or otherwise, may be subject to the excise tax imposed by Section 4999 of the Code or any comparable tax imposed by any replacement or successor provision of United States tax law, then upon the request of Executive, the Company shall use reasonable efforts to procure a shareholder vote in satisfaction of the shareholder approval requirements described in Treas. Reg. Section 1.280G-1, Q&A-7.
5. Executive Covenants.
(a) Confidential Information.  Executive recognizes and acknowledges the competitive and proprietary aspects of the business of the Company, and that as a result of Executive’s employment, Executive recognizes and acknowledges that s/he will have access to, and will be involved in the development of, Confidential Information (as defined below) of the Company.  As used herein, “Confidential Information” shall mean and include trade secrets, knowledge and other confidential information of the Company, which Executive has acquired, no matter from whom or on what matter such knowledge or information may have been acquired, heretofore or hereafter, concerning the content and details of the business of the 

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Company, and which is not known to the general public, including but not limited to: (a) new products, product betterments and other inventions, formulas, processes, methods, materials, material combinations, manner of preparations, technical production procedures and information, alarm and security codes and procedures, sources of technology, and sources of supply of raw and finished materials and other products; (b) financial and accounting records; (c) the identity of employees, consultants, independent contractors, customers, business development partners, licensees, suppliers, creditors or other parties with which the Company has business dealings, the nature of the relationship with such persons, or any other information relating to such persons or the Company’s dealings with such persons; and (d) computer software used by the Company or provided to the customers of the Company unless publicly available.
(i) For as long as Executive is employed and at all times thereafter, Executive shall not, directly or indirectly, communicate, disclose or divulge to any person or entity, or use for Executive’s own benefit or the benefit of any person (other than the Company), any Confidential Information, except as permitted in subparagraph (iii) below.  Upon termination of Executive’s employment, or at any other time at the request of the Company, Executive agrees to deliver promptly to the Company all Confidential Information, including, but not limited to, customer and supplier lists, files and records, in Executive’s possession or under Executive’s control.  Executive further agrees that s/he will not make or retain any copies of any of the foregoing and will so represent to the Company upon termination of Executive’s employment.
(ii) Executive shall disclose immediately to the Company any trade secrets or other Confidential Information conceived or developed by Executive at any time during Executive’s employment.  Executive hereby assigns and agrees to assign to the Company Executive’s entire right, title and interest in and to all Confidential Information.  Such assignment shall include, without limitation, the rights to obtain patent or copyright protection, thereon in the United States and foreign countries.  Executive agrees to provide all reasonable assistance to enable the Company to prepare and prosecute any application before any governmental agency for patent or copyright protection or any similar application with respect to any Confidential Information.  Executive further agrees to execute all documents and assignments and to make all oaths necessary to vest ownership of such intellectual property rights in the Company, as the Company may request.  These obligations shall apply whether or not the subject thereof was conceived or developed at the suggestion of the Company, and whether or not developed during regular hours of work or while on the premises of the Company. Executive shall at all times, both during and after termination of this Agreement by either Executive or the Company, maintain in confidence and shall not, without prior written consent of the Company, use, except in the course of performance of Executive’s duties for the Company or as required by legal process (provided that Executive will promptly notify the Company of such legal process except with respect to any confidential government 

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investigation), disclose or give to others any Confidential Information.  In the event Executive is questioned by anyone not employed by the Company or by an employee of or a consultant to the Company not authorized to receive such information, in regard to any such information or any other secret or confidential work of the Company, or concerning any fact or circumstance relating thereto, Executive will promptly notify the Company.
(iii)Nothing in this Agreement, including but not limited to Section 5 (Executive Covenants), including sub-sections 5(a) (Confidential Information) and 5(b) (Non-Competition and Non-Solicitation) and Section 6 (Ownership of Ideas, Copyrights and Patents (Inventions), shall prohibit or restrict Executive, or be construed to prohibit or restrict Executive, from filing a charge or complaint with, reporting possible violations of any law or regulation, making disclosures to (including providing documents or other information), and/or participating in any investigation or proceeding conducted by any self-regulatory organization or governmental agency, authority or legislative body, including, but not limited to, the Securities and Exchange Commission and/or Equal Employment Opportunity Commission or as otherwise required by law.

(iv)Executive is hereby notified that under the Defend Trade Secrets Act: (a) no individual will be held criminally or civilly liable under Federal or State trade secret law for disclosure of a trade secret (as defined in the Economic Espionage Act) that is: (1) made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; or, (2) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and (b) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.

(b) Non-Competition and Non-Solicitation.  Executive recognizes that the Company is engaged in a competitive business and that the Company has a legitimate interest in protecting its trade secrets, confidential business information, and customer, business development partner, licensee, supplier, and credit and/or financial relationships.  Accordingly, in exchange for valuable consideration, including without limitation Executive’s access to confidential business information and continued at-will employment, Executive agrees that, during the Term hereof and for a period of eighteen (18) months thereafter, Executive shall not:
(i) directly or indirectly, whether for himself or for any other person or entity, and whether as a proprietor, principal, shareholder, partner, agent, employee, consultant, independent contractor, or in any other capacity whatsoever, undertake or have any interest in (other than the passive ownership of publicly registered securities 

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representing an ownership interest of less than 1%), engage in or assume any role directly competitive with the Company’s Field of Interest (or any portion thereof) or any other business in which the Company is engaged and for which the employee has rendered services while employed by the Company, or enter into any agreement to do any of the foregoing; or
(ii) initiate contact with (including without limitation phone calls, press releases and the sending or delivering of announcements), or in any manner solicit, directly or indirectly, any customers, business development partners, licensors, licensees, or creditors (including institutional lenders, bonding companies and trade creditors) of the Company in an attempt to induce or motivate them either to discontinue or modify their then prevailing or future relationship with the Company or to transfer any of their business with the Company to any person or entity other than the Company; or
(iii) initiate contact with, or in any manner solicit, directly or indirectly, any supplier of goods, services or materials to the Company in an attempt to induce or motivate them either to discontinue or modify their then prevailing or future relationship with the Company or to supply the same or similar inventory, goods, services or materials (except generally available inventory, goods, services or materials) to any person or entity other than the Company; or
(iv) directly or indirectly recruit, solicit or otherwise induce or influence any employee or independent contractor of the Company to discontinue or modify his or her employment or engagement with the Company, or employ or contract with any such employee or contractor for the provision of services.
(c) Definition of “Field of Interest”.  The term Company’s “Field of Interest” shall mean the research, development and commercialization of products and strategies relating to: (i) therapies for genetic disorders or specific diseases within each of AADC deficiency, Friedreich Ataxia, Angelman, Mitochondrial diseases, Duchenne muscular dystrophy, and (ii) any other diseases or products, in each case, that Executive directly managed or supported during his/her employment with the Company.
(d) Definition of “Customer”.  The term “customer” or “customers” shall include any person or entity (a) that is a current customer of the Company, (b) that was a customer of the Company at any time during the preceding twenty-four (24) months or (c) to which the Company made a written presentation for the solicitation of business at any time during the preceding twenty-four (24) months.
(e) Reasonableness of Restrictions.  Executive further recognizes and acknowledges that (i) the types of employment which are prohibited by this Section 5 are narrow and reasonable in relation to the skills which represent Executive’s principal salable asset both to 

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the Company and to Executive’s other prospective employers, and (ii) the broad geographical scope of the provisions of this Section 5 is reasonable, legitimate and fair to Executive in light of the global nature of the Company’s business, particularly pharmaceutical research and development, and in light of the limited restrictions on the type of employment prohibited herein compared to the types of employment for which Executive is qualified to earn Executive’s livelihood.
(f) Remedies.  Executive acknowledges that a breach of this Section 5 will cause great and irreparable injury and damage, which cannot be reasonably or adequately compensated by money damages.  Accordingly, Executive acknowledges that the remedies of injunction and specific performance shall be available in the event of such a breach, in addition to money damages, costs and attorneys’ fees, and other legal or equitable remedies, and that the Company shall be entitled as a matter of course to an injunction pending trial, without the posting of bond or other security.  Any period of restriction set forth in this Section 5 shall be extended for a period of time equal to the duration of any breach or violation hereof.
(g) Notification.  Any person employing Executive or evidencing any intention to employ Executive may be notified as to the existence and provisions of this Agreement.
(h) Modification of Covenants; Enforceability.  In the event that any provision of this Section 5 is held to be in any respect an unreasonable restriction, then the court so holding may modify the terms thereof, including the period of time during which it operates or the geographic area to which it applies, or effect any other change to the extent necessary to render this section enforceable, it being acknowledged by the parties that the representations and covenants set forth herein are of the essence of this Agreement.
(i) Subsidiaries.  For purposes of Sections 5 and 6 of this Agreement, “Company” shall include all direct and indirect subsidiaries of the Company.  An entity shall be deemed to be a subsidiary of the Company if the Company directly or indirectly owns or controls 50% or more of the equity interest in such entity.
6. Ownership of Ideas, Copyrights and Patents.
(a) Property of the Company.  Executive agrees that all ideas, discoveries, creations, manuscripts and properties, innovations, improvements, knowhow, inventions, designs, developments, apparatus, techniques, methods, biological processes, cell lines, laboratory notebooks and formulae, whether patentable, copyrightable or not, which Executive may conceive, reduce to practice or develop, alone or in conjunction with another, or others, whether during or out of regular business hours, and whether at the request or upon the suggestion of the Company, or otherwise, in the course of performing services for the Company in any capacity, whether heretofore or hereafter, (collectively, “the Inventions”) are and shall be the sole and exclusive property of the Company, and that Executive shall not publish any of the 

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Inventions without the prior written consent of the Company.  Executive hereby assigns to the Company all of Executive’s right, title and interest in and to all of the foregoing.  Executive further represents and agrees that to the best of Executive’s knowledge and belief none of the Inventions will violate or infringe upon any right, patent, copyright, trademark or right of privacy, or constitute libel or slander against or violate any other rights of any person, firm or corporation and that Executive will use his/her best efforts to prevent any such violation.
(b) Cooperation.  At any time during or after the Term, Executive agrees that s/he will fully cooperate with the Company, its attorneys and agents in the preparation and filing of all papers and other documents as may be required to perfect the Company’s rights in and to any of such Inventions, including, but not limited to, executing any lawful document (including, but not limited to, applications, assignments, oaths, declarations and affidavits) and joining in any proceeding to obtain letters patent, copyrights, trademarks or other legal rights of the United States and of any and all other countries on such Inventions, provided that any patent or other legal right so issued to Executive, personally, shall be assigned by Executive to the Company without charge by Executive.  Executive further designates the Company as his/her agent for, and grants to the Company a power of attorney with full power of substitution, which power of attorney shall be deemed coupled with an interest, for the purpose of effecting the foregoing assignments from Executive to the Company.  Company will bear the reasonable expenses which it causes to be incurred in Executive’s assisting and cooperating hereunder.  Executive waives all claims to moral rights in any Inventions.
7. Disclosure to Future Employers.  The Company may provide in its discretion, a copy of this Agreement (in whole or in part, including the covenants contained in Sections 5 and 6 of this Agreement) to: (a) any business or enterprise which Executive may directly, or indirectly, own, manage, operate, finance, join, control or in which Executive participates in the ownership, management, operation, financing, or control, or with which Executive may be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise, or (b) any third party who may be affected by the restrictive covenants in this Agreement.
8. Records.  Upon termination of Executive’s relationship with the Company, and at any time requested by the Company, Executive shall deliver to the Company any property of the Company which may be in Executive’s possession including products, materials, memoranda, notes, records, reports, or other documents or photocopies of the same.
9. Insurance.  The Company, in its sole discretion, may apply for and procure in its own name (whether or not for its own benefit) policies of insurance insuring Executive’s life.  Executive agrees to submit to reasonable medical or other examinations and to execute and deliver any applications or other instruments in writing that are reasonably necessary to effectuate such insurance.  No adverse employment actions may be based upon the results of any such exam or the failure by the Company to obtain such insurance.

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10. No Conflicting Agreements.  Executive hereby represents and warrants that Executive has no commitments or obligations inconsistent with this Agreement.
11. “Market Stand-Off” Agreement.  Executive agrees, if requested by the Company and an underwriter of common stock (or other securities) of the Company, not to sell or otherwise transfer or dispose of any common stock (or other securities) of the Company held by Executive during a period not to exceed one hundred and eighty (180) days following the effective date of the first underwritten public offering of common stock of the Company, offered on a firm commitment basis pursuant to a registration statement filed with the Securities and Exchange Commission (or any successor agency of the Federal government administrating the Securities Act of 1933, as amend, and the Securities Exchange Act of 1934, as amended) under the Securities Act of 1933, as amended, on Form S-1 or its then equivalent, and to enter into an agreement to such effect.  The Company may impose stop-transfer instructions with respect to the shares (or securities) subject to the foregoing restriction until the end of said period.
12. General.
(a) Notices.  All notices, requests, consents and other communications hereunder shall be in writing, shall be addressed to the receiving party’s address as follows:
          If to the Company: PTC Therapeutics Inc.  
             100 Corporate Court  
             South Plainfield, NJ 07080  
             USA  
             Attention: Legal Department  
             Telephone: (908) 222-7000  
             
             With an email copy to: legal@ptcbio.com

          If to Executive:  Matthew Klein
             184 Sand Hill Circle
             Menlo Park, CA 94025

or to such other address as a party may designate by notice hereunder, and shall be either (i) delivered by hand, (ii) sent by overnight courier, or (iii) sent by registered or certified mail, return receipt requested, postage prepaid.  All notices, requests, consents and other communications hereunder shall be deemed to have been given either (i) if by hand, at the time of the delivery thereof to the receiving party at the address of such party set forth above, (ii) if sent by overnight courier, on the next business day following the day such notice is delivered to the courier service, or (iii) if sent by registered or certified mail, on the fifth (5th) business day following the day such mailing is made.

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(b) Entire Agreement.  This Agreement embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof, except with respect to the equity and fringe benefit arrangements referred to in Subsections 3(c) and (e) above.  No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.
(c) Modifications and Amendments.  The terms and provisions of this Agreement may be modified or amended only by written agreement executed by the parties hereto.
(d) Waivers and Consents.  The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions.  No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent.
(e) Assignment.  The Company shall assign its rights and obligations hereunder to any person or entity that succeeds to all or substantially all of the Company’s business or that aspect of the Company’s business in which Executive is principally involved.  Executive may not assign Executive’s rights and obligations under this Agreement without the prior written consent of the Company.
(f) Benefit.  All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto and shall inure to the benefit of the respective successors and permitted assigns of each party hereto.  Nothing in this Agreement shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall be regarded as a thirdparty beneficiary of this Agreement.
(g) Governing Law.  This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of The State of New Jersey, without giving effect to the conflict of law principles thereof.
(h) Arbitration.  Executive and the Company hereby agree that the sole remedy for any and all disputes arising out of or based on this Agreement or Executive’s employment with the Company ("Arbitrable Claims"), shall be binding  arbitration, which shall be conducted in New Jersey, before a single arbitrator, in accordance with the then applicable rules of the Judicial Arbitration and  Mediation  Service ("JAMS") or by  a non- JAMS process to which the parties may otherwise agree.  By  agreeing to arbitrate, the parties are waiving their respective rights to a jury trial with regard to any of the above referenced claims. Executive understands and agrees 

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that notwithstanding the foregoing, the Company may pursue legal or equitable relief against Executive in the event of a breach of a restrictive covenant as per Section 5(f) above.
(i) Severability.  The parties intend this Agreement to be enforced as written.  However, (i) if any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law; and (ii) if any provision, or part thereof, is held to be unenforceable because of the duration of such provision or the geographic area covered thereby or otherwise, the Company and Executive agrees that the court or arbitrator making such determination shall have the power to reduce the duration and/or geographic area of such provision, and/or to delete specific words and phrases (“blue-penciling”), and in its reduced or blue-penciled form such provision shall then be enforceable and shall be enforced.
(j) Headings and Captions; Interpretation.  The headings and captions of the various subdivisions of this Agreement are for convenience of reference only and shall in no way modify, or affect the meaning or construction of any of the terms or provisions hereof.  The provisions of the following Sections of this Agreement are in addition to, and do not limit, each other: Sections 6 and 5(a); Sections 7 and 5(g); Sections 12(k) and 12(f); and Sections 12(l) and 12(d).
(k) Injunctive Relief.  Executive hereby expressly acknowledges that any breach or threatened breach of any of the terms and/or conditions set forth in Section 5 or 6 of this Agreement will result in substantial, continuing and irreparable injury to the Company.  Therefore, Executive hereby agrees that, in addition to any other remedy that may be available to the Company, the Company shall be entitled to injunctive or other equitable relief by a court of appropriate jurisdiction.
(l) No Waiver of Rights, Powers and Remedies.  No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of the party.  No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder.  The election of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies.  No notice to or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other 

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circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand.
(m) Counterparts.  This Agreement may be executed in one or more counterparts, and by different parties hereto on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
(n) Survival.  The provisions of Sections 4, 5, 6, 7, 8, 11 and 12 shall survive the termination of this Agreement and Executive’s employment hereunder in accordance with their terms.
(o) Knowing and Voluntary Nature of Agreement.  Executive acknowledges and agrees that Executive is executing this Agreement knowingly and voluntarily and without any duress or undue influence by PTC or anyone else.  Executive further acknowledges and agrees that Executive has carefully read this Agreement and fully understands it, including that Executive is waiving the right to a jury trial.  Executive further agrees that Executive has been provided an opportunity to seek the advice of an attorney of Executive’s choice before signing this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
PTC Therapeutics, Inc.
/s/ Mark E. Boulding 
Name:  Mark E. Boulding
Title:  EVP, Chief Legal Officer

Agreed and Accepted

/s/ Matthew Klein 
Name: Matthew Klein

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EXHIBIT A
Sample Separation and Release Agreement

[Insert Date]
[Insert Employee Name]
[Insert Employee Address]

Dear [Insert Employee Name]:
In connection with the termination of your employment with PTC Therapeutics, Inc. (the “Company”) on [Termination Date], you are eligible to receive the Severance Compensation as described in Section 4 of the Employment Agreement executed between you and the Company on [Insert Date] (the “Employment Agreement”) if you sign and return this letter agreement to me by [Return Date – e.g., 21 days from date of receipt of this letter agreement] and it becomes binding between you and the Company.  By signing and returning this letter agreement and not revoking your acceptance, you will be agreeing to the terms and conditions set forth in the numbered paragraphs below, including the release of claims set forth in paragraph 3.  Therefore, you are advised to consult with an attorney before signing this letter agreement and you may take up to twenty-one (21) days to do so.  If you sign this letter agreement, you may change your mind and revoke your agreement during the seven (7) day period after you have signed it by notifying me  in writing.  If you do not so revoke, this letter agreement will become a binding agreement between you and the Company upon the expiration of the seven (7) day period.
If you choose not to sign and return this letter agreement by [Return Date-Same as Above], or if you timely revoke your acceptance in writing, you shall not receive any Severance Compensation from the Company.  You will, however, receive payment for your final wages and any unused vacation time accrued through the Termination Date, as defined below.  Also, regardless of signing this letter agreement, you may elect to continue receiving group medical insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq.  If you so elect, you shall pay all premium costs on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA  continuation.  You should consult the COBRA materials to be provided by the Company for details regarding these benefits.  All other benefits will cease upon your Termination Date in accordance with the plan documents.
The following numbered paragraphs set forth the terms and conditions that will apply if you timely sign and return this letter agreement and do not revoke it in writing within the seven (7) day period.
1.Termination Date – Your effective date of termination from the Company is [Insert Date] (the “Termination Date”).
2.Release – In consideration of the payment of the Severance Compensation, which you acknowledge you would not otherwise be entitled to receive, you hereby fully, forever, irrevocably and unconditionally release, remise and discharge the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of their respective past 

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and present officers, directors, stockholders, partners, members, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that you ever had or now have against any or all of the Released Parties, including, but not limited to, any and all claims arising out of or relating to your employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the New Jersey Law Against Discrimination, N.J. Stat. Ann. § 10:5-1 et seq., the New Jersey Family Leave Act, N.J. Stat. Ann. § 34:11B-1 et seq., the New Jersey Conscientious Employee Protection Act, N.J. Stat. Ann.  § 34:19-1 et seq., and the N.J. Stat. Ann. § 34:11-56.1 et seq. (New Jersey equal pay law), all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract, including without limitation, all claims arising from the Employment Agreement; all state and federal whistleblower claims to the maximum extent permitted by law; all claims to any non-vested ownership interest in the Company, contractual or otherwise; and any claim or damage arising out of your employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this letter agreement shall (i) prevent you from filing a charge with, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission or a state fair employment practices agency (except that you acknowledge that you may not recover any monetary benefits in connection with any such claim, charge or proceeding) or (ii) deprive you of any rights you may have to be indemnified by the Company as provided in any agreement between the Company and you or pursuant to the Company’s Certificate of Incorporation or by-laws.
3.Non-Disclosure, Non-Competition, Confidential Information and Non-Solicitation and Inventions – You acknowledge and reaffirm your obligations to keep confidential and not disclose all non-public information concerning the Company with respect to Confidential Information, non-solicitation, and Inventions and its clients that you acquired during the course of your employment with the Company, as stated more fully in Sections 5 and 6 of the Employment Agreement, which remains in full force and effect.

- 25 -

4.Return of Company Property – You acknowledge and reaffirm your obligations to the Company with respect to Company property, as stated more fully in Section 6 and 8 of the Employment Agreement. You confirm that you have returned to the Company all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones, smartphones, tablets, etc.), Company identification, and any other Company-owned property in your possession or control and have left intact all electronic Company documents, including but not limited to those which you developed or helped to develop during your employment.  You further confirm that you have cancelled all accounts for your benefit, if any, in the Company's name, including but not limited to, credit cards, telephone charge cards, cellular phone and/or wireless data accounts and computer accounts.
5.Business Expenses and Final Compensation – You acknowledge that you have been reimbursed by the Company for all business expenses incurred in conjunction with the performance of your employment and that no other reimbursements are owed to you.  You further acknowledge that you have received payment in full for all services rendered in conjunction with your employment by the Company, including payment for all wages, bonuses and accrued, unused vacation time, and that no other compensation is owed to you except as provided herein.
6.Non-Disparagement – To the extent permitted by law, you understand and agree that as a condition for payment to you of the Severance Compensation herein described, you shall not make any false, disparaging or derogatory statements to any person or entity, including any media outlet, regarding the Company or any of its directors, officers, employees, agents or representatives or about the Company’s business affairs and financial condition. 
7.Continued Assistance – You acknowledge and reaffirm your obligations to the Company with respect to cooperation, as stated more fully in Section 6 of the Employment Agreement. You agree that after the Termination Date you will provide all reasonable cooperation to the Company, including but not limited to, assisting the Company transition your job duties, assisting the Company in defending against and/or prosecuting any litigation or threatened litigation, and performing any other tasks as reasonably requested by the Company.
8.Cooperation – To the extent permitted by law, you agree to cooperate fully with the Company in the defense or prosecution of any claims or actions which already have been brought, are currently pending, or which may be brought in the future against or on behalf of the Company, whether before a state or federal court, any state or federal government agency, or a mediator or arbitrator.  Your full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare its claims or defenses, to prepare for trial or discovery or an administrative hearing or a mediation or arbitration and to act as a witness when requested by the Company at reasonable times designated by the Company.  You agree that you will notify the Company promptly in the event that you are served with a subpoena or in the event that you are asked to provide a third party with information concerning any actual or potential complaint or claim against the Company.

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9.Amendment and Waiver – This letter agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the parties hereto.  This letter agreement is binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors and administrators.  No delay or omission by the Company in exercising any right under this letter agreement shall operate as a waiver of that or any other right.  A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion.
10.Validity – Should any provision of this letter agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this letter agreement.
11.Confidentiality – To the extent permitted by law, you understand and agree that as a condition for payment to you of the Severance Compensation herein described, the terms and contents of this letter agreement, and the contents of the negotiations and discussions resulting in this letter agreement, shall be maintained as confidential by you and your agents and representatives and shall not be disclosed except to the extent required by federal or state law or as otherwise agreed to in writing by the Company.
12.Nature of Agreement – You understand and agree that this letter agreement is a severance agreement and does not constitute an admission of liability or wrongdoing on the part of the Company.
13.Acknowledgments – You acknowledge that you have been given at least [twenty-one (21) days] to consider this letter agreement, and that the Company advised you to consult with an attorney of your own choosing prior to signing this letter agreement.  [You understand that you may revoke this letter agreement for a period of seven (7) days after you sign this letter agreement by notifying me in writing, and the letter agreement shall not be effective or enforceable until the expiration of this seven (7) day revocation period.] You understand and agree that by entering into this agreement, you are waiving any and all rights or claims you might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefits Protection Act, and that you have received consideration beyond that to which you were previously entitled.
14.Voluntary Assent – You affirm that no other promises or agreements of any kind have been made to or with you by any person or entity whatsoever to cause you to sign this letter agreement, and that you fully understand the meaning and intent of this letter agreement.  You state and represent that you have had an opportunity to fully discuss and review the terms of this letter agreement with an attorney.  You further state and represent that you have carefully read this letter agreement, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof and sign your name of your own free act.

15. Protected Conduct – Nothing in this Agreement shall prohibit or restrict you, or be cnstrued to prohibit or restrict you, from filing a charge or complaint with, reporting possible violations of any law or regulation, making disclosures to (including providing documents or other information), and/or participating in any investigation or proceeding conducted by any self-regulatory organization or governmental agency, authority or legislative body, including, but not limited to, the Securities and Exchange Commission and/or Equal Employment Opportunity Commission or as otherwise required by law.
16. Applicable Law – This letter agreement shall be interpreted and construed by the laws of the State of New Jersey, without regard to conflict of laws provisions.  You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the State of New Jersey, or if appropriate, a federal court located in the State of New Jersey (which courts, for purposes of this letter agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this letter agreement or the subject matter hereof.
17. Entire Agreement – This letter agreement contains and constitutes the entire understanding and agreement between the parties hereto with respect to your Severance Compensation and the settlement of claims against the Company and cancels all previous oral and written negotiations, agreements and commitments in connection therewith, except as otherwise set forth herein. For example, nothing in this paragraph shall modify, cancel or supersede your obligations set forth in paragraph 3 herein.
18. Tax Acknowledgement – In connection with the payments and consideration provided to you pursuant to this letter agreement, the Company shall withhold and remit to the tax authorities the amounts required under applicable law, and you shall be responsible for all applicable taxes with respect to such payments and consideration under applicable law.  You acknowledge that you are not relying upon the advice or representation of the Company with respect to the tax treatment of any of the Severance Compensation set forth in Section 4 of the Employment Agreement.
If you have any questions about the matters covered in this letter agreement, please call me at [Insert Phone Number].
Very truly yours,
By:  __________________________________
        [Name]
[Title]
I hereby agree to the terms and conditions set forth above.  I have been given at least [twenty-one (21) days] to consider this letter agreement and I have chosen to execute this on the date below.  

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I intend that this letter agreement will become a binding agreement between me and the Company [if I do not revoke my acceptance in seven (7) days].
						
	_____________________________  
[Insert Employee Name]
	_________________________
Date

To be returned to me by [Return Date – e.g., 21 days from date of receipt of this letter].

April 10, 2020

Matthew Klein 
304 Franklin Avenue 
Princeton, NJ 08540

Dear Matthew,

Congratulations on your proposed appointment to Chief Development Officer of PTC Therapeutics, Inc. Your success with PTC has been impressive and we look forward to your continued contributions to PTC’s business and mission.  The effective date of your appointment is the date that your appointment is approved by the Board of Directors of PTC following receipt of a signed copy of this letter from you indicating your acceptance of your appointment.  In this new role you will report to our CEO and Founder, Stu Peltz.  

Outlined below are details of your appointment:  

•Your annual base salary will be increased to $450,000 annually, subject to deductions for taxes and other withholdings as required by law. Please allow 1 to 2 pay periods for your new base salary to be reflected in your paycheck. 

•Your bonus target will increase to 45.00% of your annual salaried earnings paid in accordance with the terms of conditions of PTC’s annual incentive compensation plan. 

•You will receive a one-time grant of 50,000 stock options to purchase shares of common stock of PTC, and 10,000 restricted stock units, subject to formal approval by the Compensation Committee of the Board of Directors (or a majority of the PTC’s independent directors) and to the terms of the applicable grant agreements. The options will vest over four years, with 25% vesting on the one-year anniversary of your grant date and 6.25% vesting every three-month period thereafter over the following three years. The restricted stock units will vest over four years, with 25% vesting annually on the anniversary of the grant date. 

•This letter supersedes any other recent discussions or communications from PTC with respect to changes in your pay, title, role in the organization, or equity grants. All other terms of your employment with PTC will remain consistent with existing signed employment and equity agreements and applicable policies.

On behalf of PTC, let me again congratulate you on your proposed appointment.  Please return a signed copy of this letter to me by close of business on Monday, April 13th, 2020. Feel free to contact me if you have any questions concerning this letter.

						
	Sincerely,	Accepted by:
	/s/ Martin Rexroad	/s/ Matthew Klein
		
	Martin Rexroad	Matthew Klein
	SVP, Human Resources 	April 11, 2020
		Date
	Cc: Stuart Peltz

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