FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS AND LIABILITIES, FINANCIAL POSITIONAND PROFITS AND LOSSES 20 Commitments under operating lease agreements Commitments under service agreement – G&A operations 19.1 Agreement with Passage de l’Innovation In addition, the Group entered into a new services contract with On January 1, 2015, we entered into a lease agreement for Passage de l’Innovation in connection with human resources, legal our headquarters premises in Paris, France with Passage de and intellectual property services. Accordingtothecontractterms l’Innovation, which was amended on October 1, 2015, January 1, and conditions, the annual cost is fixed at €187 K and each party 2016 and May 1, 2017. Pursuant to this last amendment, we will can terminate the contract aftera six-month notice period. Thus, have to pay €533 K excluding taxes, on an annual basis, comprised the commitment related to the first part of 2018 amounts to €94 K. of €318 K for rent, €21 K for rental charges and up to €194 K for Commitments related to R&D operations other services provided by the lessor through the end of 2024. The Company has signed various licensing and col laboration The amendment signed on May 1, 2017 consisted especially in a agreements: decreased rent as the Group is using less office space. The associated • In October 2012, the Group entered into a license agreement services (e.g., reception, printers and information technology and with Inserm Transfert S.A. (“Inserm”), a French public scientific access to meeting rooms) have also been revised accordingly. and technological institute. The Group paid a license fee of In addition, car rental contracts have either been terminated €40 K in 2013 upon the execution of the agreement, which during the period so that as of the end of December 31, 2017, has been recognized as research and development expenses there is no remaining commitment. in the statement of income. Upon completion of development milestones, the Group has to pay non-refundable fees up to The table below shows the minimum contractual future payments €2,750 K in the aggregate. As of December 31, 2017, the residual relating to this operating lease agreement as of December 31, 2017: commitments amount to €1,800 K. Upon commercialization of In thousands of euros As of December 31, 2017 any product covered by the licensed patents, the Group will be obligated to pay a percentage of net sales as a royalty. The royalty 2018 533 rate varies depending on the amount of net sales. 2019 533 • In December 2013, the Group entered into a license agreement 2020 533 for use of scientific data with theAssociation Française contre 2021 533 les Myopathies, (“AFM”), a non-profit association, the French 2022 533 Muscular Dystrophy Association, Genethon and Inserm 2023 533 Transfert, acting as a delegate of Inserm, a French public Total 3,200 scientific and technological institute and the Université Pierre et Marie Curie, (“UPMC”), a French university. The Group paid a 19.2 U.S.- based subsidiary license fee of €10 K upon the execution of the agreement, which The Group entered into a binding office lease agreement in New has been recognized as research and development expenses in York for its U.S.-based subsidiary on September 6, 2017. The the Consolidated Statement of Income. Upon completion of commencement of the lease is based upon substantial completion development milestones, the Group has to pay non-refundable of the landlord’s work and delivery of possession of the premises fees up to €688 K. As of December 31, 2017, the residual to the Company which has not yet occurred in 2017. It is planned commitments amounted to €450 K. Upon commercialization of to occur in April 2018. any product covered by the license patents, the Group will be obligated to pay an annual royalty of 1% of net sales. The table below shows the minimum rent and tenant’s operating payment relating to this contract as of December 31, 2017: • In December 2013, the Group entered into a three-year research collaboration agreement with UPMC, a French university and the In thousands of euros As of December 31, 2017 Institut de la Vision. The Group has the exclusive right to use the 2018 183 developed shared patents. In October 2014, November 2014 2019 311 and June 2015, respectively, the Group entered into three 2020 379 specific agreements superseding the initial agreement. In relation to these specific agreements, the Group has to pay a total 2021 387 amount of €2,276 K, excluding tax, at its discretion, over a three- 2022 409 year period starting 2014 to 2018. As of December 31, 2017, 2023 421 the remaining payments under the agreement, representing an 2024 430 amount of €92 K are to be paid over 2018, at sole discretion of 2025 292 the Group if the Group decides to continue to use UPMC for Total 2,812 conducting research activities. 208– GENSIGHT BIOLOGICS – 2017 Registration Document