ANNEX 1 27 The table below shows the minimum contractual future payments • In 2013, the Company entered into a license agreement with relating to these contracts as of December 31, 2017: Novartis. Upon commercialization of any product covered by the licenses, the Company will be obligated to pay a royalty of In thousands of euros As of December 31, 2017 5% of net sales. 2018 533 • In 2014, the Company entered into a non-exclusive license, 2019 533 development and commercialization agreement with a 2020 533 biotechnology company. The annual license fee payable by the Company is U.S.$30 K. Upon completion of development 2021 533 milestones, the Company has to pay specified non-refundable 2022 533 fees of up to U.S.$5,900 K. As of December 31, 2017, the 2023 533 residual commitments amount to U.S $5,900 K. Upon commercialization of any product covered by the license TOTAL NET 3,200 patents, the Company will be obligated to pay a percentage of 19.2 – Commitments under service agreement – G&A operations net sales as a royalty. The royalty rate varies depending on the amount of net sales. In addition, the Company also entered into a new services contract in connection with human resources, legal and • In 2014, the Company entered into a research collaboration intellectual property services. According to the contract terms agreement with a biomedical research institute. Under the and conditions, the annual cost is fixed at €187 K and each party terms of this research collaboration agreement, the Company can terminate the contract after a six-month notice period. Thus, has to pay €46 K in 2018. This agreement will end on May 31, the commitment related for the first part of 2018 amounts to 2018. €94 K. • In 2016, the Company entered into a license agreement 19.3 — Commitments related to R&D operations with a US academic research institute. Under the terms of this license agreement, the Company agreed to pay a license The Company has signed various licensing and col laboration issue fee of $45 K, license maintenance fees up to $100 K per agreements: year and variable payments up to $7,300 K depending on the • In 2012, the Company entered into a license agreement with achievement of milestone events. The Company will also pay a French public scientific and technological institute. The running mid-single-digit royalties on future net sales. Company paid a license fee of €40 Kin 2013 upon the execution of the agreement. Upon completion of development milestones, 19.3 — Retirement commitments the Company has to pay non-refundable fees up to €2,750 K The employee retirement commitment is not recorded in the in the aggregate. As of December 31, 2017, the residual accounts in accordance with the option offered by the French commitments amount to €1,800 K. Upon commercialization of accounting regulations. This commitment amounted to €88 K as any product covered by the licensed patents, the Company will of December 31, 2017. be obligated to pay a percentage of net sales as a royalty. The royalty rate varies depending on the amount of net sales. As part of the estimate of the retirement commitments, the following assumptions were used for all categories of employees: • In 2013, the Company entered into a license agreement with a non-profit association. The Company paid a license • Social Security contribution: 45% in 2016 and 2017; fee of €10 K upon the execution of the agreement. Upon • Salary increase: 3% in 2016 and 2017; completion of development milestones, the Company has to • Discount rate: iBoxx Corporates AA 10+ index, 1.31% and pay non-refundable fees up to €688 K. As of December 31, 1.30% in 2016 and 2017, respectively; 2017, the residual commitments amount to €450 K. Upon commercialization of any product covered by the license • Retirement age: 67; patents, the Company will be obligated to pay an annual royalty • Terms of retirement: voluntary retirement; of 1% of net sales. • Life table: TGHF 2005; • In 2013, the Company entered into a research collaboration agreement with a French university. The Company has • Col lective agreement: Convention Collective Nationale des the exclusive right to use the developed shared patents and Ingénieurs et des Cadres de la Métallurgie (National Collective committed to pay a total amount of €2,276 K. As of December 31, Agreement for Engineers and Executives in the Metalworking 2017, the remaining payments under the agreement, Industry); and representing an amount of €92 K are to be paid over 2018. • Turn-over of personnel: 10% (20-49), 0% above 50. GENSIGHT BIOLOGICS – 2017 Registration Document – 255