SPONSORED RESEARCH AGREEMENT	Page 1



    




 





SPONSORED RESEARCH AGREEMENT 


 


THIS
SPONSORED RESEARCH AGREEMENT (the “Agreement”) is effective as of the date of the last signature herein (the
"Effective Date"), by and between:


 


	 

        The Washington
        University

        One Brookings
        Drive

         

        St. Louis, MO
        63130

         
	 

         

        and
	 

        Amarantus
        Bioscience Holdings, Inc.

        953 Indiana Street,

        San Francisco,
        CA 94107

         

	an academic institution

        (“Institution”)

         
	a Nevada corporation,

        ("Amarantus"),

         



 


WHEREAS,
Fumihiko Urano, MD, PhD (“Investigator”), a full-time employee of Institution, desires to perform certain research
using Amarantus’ proprietary compound;


 


WHEREAS,
Amarantus desires to support the costs of such research and to transfer to Investigator certain materials for the purpose
of conducting the research.


 


NOW
THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth below, Amarantus and Institution
hereby agree as follows:


 


 


		1.	Research.Institution,
during the Term, agrees to undertake and perform a research project (the "Research") as described in the research plan
attached as Exhibit A hereto (the “Research Plan”) with the consent of and financial support from Amarantus.
Investigator agrees to use reasonable efforts to perform the Research and will furnish the research staff, technical know-how,
equipment, instruments, supplies and facilities necessary to carry out the Research. Investigator agrees that all work done on
the Research will be duly recorded and evidenced in laboratory notebooks maintained by the Investigator and the persons working
on the Research at Investigator’s direction.



 


		2.	Funding.



 


a.Amarantus
will provide funding to Institution to support the performance of the Research in accordance with the budget set forth on Exhibit
B (the “Budget”). Such funding will be provided in two (2) equal payments according to the following schedule:


 


(i)The
first payment will be due thirty (30) days following Amarantus’ receipt of a fully-executed copy of this Agreement.


 


(ii)The
second and final payment will be made within thirty (30) days of Amarantus’ receipt of Investigator’s final written
report following completion of the Research.


 





 



    	 



    	SPONSORED RESEARCH AGREEMENT	Page 2



    

 


b.The
total sum set forth in the Budget represents the maximum amount payable to Institution hereunder, unless agreed otherwise in writing
by the parties. Such amount shall be paid on a fixed-price basis and all funds provided
by Amarantus under this Agreement shall be solely used for the performance of the Research, except that Amarantus agrees
that Institution will retain residual funds, if any, upon completion of the Research. Payments will be made by check, sent to:


 





Washington
University


Sponsored
Projects Accounting


Campus
Box 1034


700
Rosedale Avenue


St.
Louis, MO 63112-1408


FAX
314-935-4309


 


c.Amarantus
acknowledges that Institution maintains the status of a nonprofit/tax exempt
institution. While the parties do not anticipate that Amarantus will be required to withhold taxes from payments made under this
Agreement, to the extent that any reporting/withholding may be required pursuant to applicable federal, state and local laws or
regulations, Amarantus will report any payments to Institution and be allowed to withhold from Institution’s payments any
applicable taxes.


 


		3.	Materials.



a.The
materials described in Exhibit C attached hereto (the “Materials”) are provided by Amarantus to Institution
to be used only in the Research. The Research shall be limited to investigational tests in vitro or in laboratory research
animals.


 


b.If
animal studies have been proposed, Investigator has considered in vitro approaches to the research and has followed the NIH guidelines
regarding such work. No animals receiving the Materials in the Research (nor animal products derived therefrom) will be used for
food purposes.


 


c.Upon
receipt of the Materials, Investigator shall conduct the Research in strict accordance with all applicable laws, regulations and
guidelines, including without limitation, those regulations and guidelines promulgated by the U.S. Food and Drug Administration
and the U.S. Department of Agriculture and any other regulations and guidelines relating to ethical treatment of animals.


 


d.Institution
agrees that it will not perform any experiments with the Materials, other than those required to complete the Research Plan, unless
specifically agreed to in advance in writing by an authorized Amarantus representative. Institution understands that the Materials
may have biological and/or chemical properties that are unpredictable and unknown at the time of transfer, that they are to be
used with caution and prudence. The Institution agrees that while it is in possession of the Materials they shall not be
used in humans under any circumstances.


 


e.None
of the Materials shall be used by persons who are not under Investigator’s direct supervision or used outside of Investigator’s
laboratory.


 


f.Institution
shall use the Materials solely for the purpose of conducting the Research and shall not attempt to reverse engineer, deconstruct,
synthesize, chemically modify, analyze or in any way determine the structure or composition of the Materials.


 


g.The
Materials are proprietary to Amarantus and Amarantus is and shall remain at all times
the sole owner of the Materials. Institution shall not sell, transfer, disclose or otherwise provide access to the Materials,
including any analogs, derivatives and/or reproducible portions thereto obtained as a consequence of conducting the Research,
to any person or entity without the prior express written consent of Amarantus, except that Institution may allow access to the
Materials to their employees or agents for the purpose of conducting the Research.
Institution shall take all reasonable steps to ensure that such employees and agents will use the Materials in a manner
that is consistent with the terms of this Agreement.


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 3



    

 


h.Upon
completion or earlier termination of the Research, Institution shall, at Amarantus’ written directions and expense, return
or dispose of any unused portions of the Materials. Any such disposal will conform to prescribed federal, state and local guidelines
and will be certified to Amarantus in writing by an authorized Institution representative.


 


		4.	Reports.Investigator
shall provide Amarantus with a detailed description of all tests and a copy of all results from any experiment carried out with
the Materials within sixty (60) days after completion of each experiment. Subject to
the provisions of Section 6 below, Amarantus shall have the right to use such reports
or descriptions for any purpose whatsoever. Investigator will provide an additional
report upon termination of this agreement which discloses all Technical Material and all Inventions conceived or reduced to practice
in relation to this agreement. All such reports shall set forth the technical progress made, identifying such problems as may
have been encountered and establishing goals and objectives requiring further effort.



 


		5.	Confidential Information.



 


a.The
parties acknowledge that, prior to and during the Term of this Agreement, the parties may disclose to one another scientific,
technical, trade secret, business, or other information which is treated by the disclosing party as confidential (“Confidential
Information”). Confidential Information shall specifically exclude Technical Materials.
Each
party shall maintain all Confidential Information provided by the other party in trust and confidence and shall not use
such Confidential Information for any purpose other than to exercise its rights and perform its obligations under this Agreement.
In addition, neither party shall publish, disseminate or otherwise disclose any Confidential Information
of the other party to any third party without the written consent of the
other party, except as provided below. Both parties agree that in order to ensure that each party understands which information
is deemed to be confidential, all Confidential Information will be in written form and clearly marked as “Confidential,”
or if the Confidential Information is initially disclosed in oral or some other
non-written form, it will be confirmed and summarized in writing and clearly marked as “Confidential” within thirty
(30) days of disclosure, provided however that failure to so mark or summarize shall
not alter the confidential status of such information if a reasonable person under similar circumstances would recognize, by the
content and/or context of such disclosure, that the disclosure was intended as confidential. Each party may disclose and
disseminate the other party’s Confidential Information for the purposes
of conducting the Research only to those employees or agents with a need to know, and only after those employees and agents have
been advised of the confidential nature of such information, and who are bound by an obligation of confidentiality under terms
substantially similar to and at least as protective of such Confidential Information
as the terms of this Agreement.


 


b.The
term “Confidential Information” shall not be deemed to include information which the receiving party can demonstrate
by its contemporaneous written records:


 


(i)was
known to the receiving party without confidentiality obligations from a source
other than the disclosing party before the date of disclosure hereunder, or


 


(ii)is
now, or becomes in the future, publicly available other than by breach of this Agreement by the receiving party, or


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 4



    

 


(iii)is
lawfully disclosed to the receiving party on a non-confidential basis by a third party who is not obligated to the disclosing
party or any other party to retain such Confidential
Information in confidence, or


 


(iv)is
independently developed by the receiving party without use or benefit of or reference
to the disclosing party’s Confidential Information, or


 


(v)
is approved for release by written authorization of the disclosing party.


 


Any
combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features
are published or available to the general public or in the rightful possession of the receiving party unless the combination itself
and principle of operation are published or available to the general public or are in the rightful possession of the
receiving party without obligations of confidentiality.


 


c.Nothing
in Section 5.a above shall prevent the receiving party from disclosing Confidential Information that is required by legal process
to be disclosed by order of a court, government agency or the like having competent jurisdiction, provided that the receiving
party (i) notifies the disclosing party as promptly as possible upon becoming aware of such requirement, (ii) discloses only such
portion of such Confidential Information as is required to be so disclosed, (iii) cooperates reasonably with the disclosing party
in seeking protective order(s) or injunctive relief to protect the confidentiality of such Confidential Information, at the disclosing
party’s expense, and (iv) the obligations in this Article 5 shall continue to
apply to any Confidential Information that is disclosed to comply with such legal requirements.


 


d.Obligations
of confidentiality under Section 5 shall survive and remain in effect for a period of  three (3)
years from the termination of this Agreement.


 


e.Upon
completion or earlier termination of the Research, the receiving party shall return to the disclosing party
all copies of Confidential Information in its possession, except that each party may retain one (1) copy of such information
in its legal files, solely for the purpose of ascertaining the extent of its continuing obligations hereunder.


 


		6.	Publication.
Amarantus recognizes that consistent with Institution’s status as an educational institution and the principles of academic
freedom, Institution requires that its researchers be free to publish the results of their research activities. Amarantus agrees
that Investigator and other researchers engaged in the Research shall have the right to publish in journals, theses, dissertations,
or other formats of their own choosing, and to present at symposia and national or regional professional meetings,
the Technical Material (defined below) generated as a result of the Research. Amarantus further agrees that Investigator and other
Institution researchers engaged in the Research will at all times have the first
opportunity to publish such Technical Material, subject to the provisions of Sections
6.a and 6.b, below.



 


a.At
least forty five (45) days in advance of the submission of such proposed publication or presentation to a journal, editor, or
other third party, Institution or Investigator shall furnish Amarantus with copies of the proposed publication or presentation.
The purposes for such prior submission are: (i) to provide Amarantus with the opportunity to review and comment on the contents
of the proposed publication or presentation; (ii) to identify any Confidential
Information to be deleted from the proposed publication or presentation; and (iii) to allow time for any patentable subject matter
to be identified. Amarantus shall provide any comments to Institution or Investigator within forty five (45) days of receipt of
the proposed publication or presentation. Institution and Investigator hereby agree to delete from the proposed publication any
Confidential Information which Amarantus requests Institution or Investigator
to delete. Amarantus personnel shall be acknowledged in accordance with customary scientific practice.


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 5



    

 


b.Amarantus
shall have forty five (45) days after receipt of the proposed publication or presentation to object by written request sent to
Institution to the proposed publication or presentation on the grounds that there is patentable subject matter that needs protection.
In the event Amarantus makes such objection, the Institution, Investigators and other researcher(s) shall refrain from making
such publication or presentation for such time as requested by Amarantus, but in any event no longer than forty five (45) days
from the date of receipt of such objection by Institution, in order for patent application(s) directed to the patentable subject
matter contained in the proposed publication or presentation to be filed with the United States Patent and Trademark Office and/or
foreign patent office(s).


 





c.Notwithstanding
any provision to the contrary, the publication of a patent application will not be prevented or delayed in order to preserve the
opportunity for the Investigator to publish the Technical Material.


 





		7.	Data and Intellectual
Property Rights.



 


a.
“Technical Material” shall be defined as those data, results and reports generated in
the course of performing the Research, but does not include any Inventions. All Technical Material conceived and reduced
to practice arising out of the performance of the Research shall be jointly owned by the Parties.


 


b.In
performing the Research,  or otherwise using the Materials in accordance with the terms
of this Agreement, either party may conceive or otherwise create ideas, improvements, inventions, techniques and other
technology and associated intellectual property, whether or not patentable (collectively, “Inventions”). Ownership
of Inventions, if any, shall be determined according to inventorship, which shall be determined according to U.S. law. Inventions
conceived solely by Institution shall be solely owned by Institution (“Institution Inventions”). Institution
shall promptly notify Amarantus of all such Institution Inventions. Inventions conceived solely by Amarantus shall be solely owned
by Amarantus (“Amarantus Inventions”).


 


c.Each
party shall retain its rights to practice, enforce, license, assign, or otherwise exploit
its undivided, one-half interest in any Joint Invention (defined below) or jointly owned Technical Materials without the
consent of and without accounting to the other and
each party hereby waives any right it may have under the laws of any country to require such approval, sharing or accounting.
Neither party grants any rights to intellectual property existing as of the Effective Date or conceived or otherwise created after
the Effective Date but not in the performance of the Research.


 


d.Amarantus
and Institution hereby agree that all Inventions jointly conceived shall be
jointly owned by Amarantus and Institution (“Joint Inventions”). Subject to any rights the U.S. Government may have
as a result of funding aspects of the Research, Institution grants to Amarantus: (a) a non-exclusive, worldwide, royalty-free
license to make, use, have made, sell, have sold, import Institution Inventions
for any purpose, and (b) an exclusive option (the “Option”) to obtain an exclusive, worldwide license, with the right
to grant sublicenses, to make, use, sell, have made, have sold, offer to sell, and import under Institution’s rights in
Institution Inventions and Joint Inventions on terms to be negotiated in good faith between the parties. Institution
shall disclose to Amarantus in writing and in detail all Institution Inventions and Joint Inventions promptly following the generation
thereof.  Amarantus may exercise the Option by sending written notice to Institution at any time within ninety (90) days
following the receipt of a written disclosure from Institution describing in detail such Institution Invention (the “Option
Period”). If Amarantus exercises the Option within the Option Period, then Institution
and Amarantus will have a six (6) month period after exercise of the option within which the parties agree to negotiate diligently
in good faith to determine the terms of a license agreement on commercially reasonable terms (“Negotiation Period”).
The Negotiation Period may be extended by mutual agreement of Amarantus and Institution. During the Option Period and, if Amarantus
exercises such option, the Negotiation Period, Institution shall not grant a license under such Institution Invention or Joint
Invention to any third party nor negotiate the licensing of such Institution Invention or Joint Invention with any third party.
If, at the end of the Option Period, Amarantus has not exercised the Option, or in the event the Parties fail to reach
a mutually acceptable licensing arrangement within the Negotiation Period, Institution
shall be entitled to negotiate with a third party for a license to Institution’s rights in Institution Inventions and/or
Joint Inventions. Institution may grant to any other person requesting a license to such inventions a fully paid up, non-exclusive,
worldwide license to make, use, sell, offer to sell and import under such Institution’s rights, provided
that for a period of one (1) year from the expiration of the Negotiation Period, Institution shall not grant any third party any
license to Institution’s rights in Institution Inventions and/or Joint Inventions on terms that are more favorable to the
third party than the terms last offered to Amarantus.


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 6



    

 


Any
patent applications necessary to protect the proprietary positions of the parties in any of the Institution Inventions will be
timely prepared and filed by Institution. Amarantus may file patent applications claiming
Amarantus Inventions at its own discretion and expense. The parties will mutually agree on the allocation of rights and responsibilities
for the filing and prosecution of patent applications claiming Joint Inventions, provided that such patent applications will be
filed jointly in Amarantus’s and Institution’s names. If Amarantus elects to exercise the Option, Amarantus will pay
for the costs of patent filing, prosecution and maintenance in the United States and any foreign country. If Institution
elects not to file or maintain an application or patent arising from any Institution Invention, Institution shall
promptly notify Amarantus, and Amarantus shall have the right to file or maintain the applications or patents, at Amarantus’
discretion and expense.


 


e.Amarantus
hereby grants to Institution and Institution hereby acknowledges and accepts a fully paid-up, irrevocable, non-exclusive license
to use Amarantus Inventions for Institution’s research, education and collaboration purposes only during the term of this
agreement.


 


f.Institution
represents that Institution will own all right, title and interest in each invention or item of intellectual property included
in the Institution Inventions and Joint Inventions and reported to Institution by Investigator or other Institution personnel
involved with the Research and that Institution has the right to grant to Amarantus the option and license with respect to Institution’s
interest in the Inventions contemplated in this Article 7.


 





		8.	DISCLAIMER OF WARRANTIES.
NOTWITHSTANDING ANYTHING
HEREIN TO THE CONTRARY, EVERYTHING PROVIDED BY THE PARTIES UNDER THIS AGREEMENT IS UNDERSTOOD TO BE EXPERIMENTAL IN NATURE, MAY
HAVE HAZARDOUS PROPERTIES, AND IS PROVIDED WITHOUT ANY WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION,
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, OR NON-INFRINGEMENT OF ANY THIRD-PARTY PATENT, TRADEMARK,
COPYRIGHT OR ANY OTHER THIRD-PARTY RIGHT. THE PARTIES MAKE NO WARRANTIES REGARDING THE QUALITY, ACCURACY, COMMERCIAL VIABILITY
OR ANY OTHER ASPECT OF ITS PERFORMANCE PURSUANT TO THIS AGREEMENT OR REGARDING THE PERFORMANCE, VALIDITY, SAFETY, EFFICACY OR
COMMERCIAL VIABILITY OF ANYTHING PROVIDED UNDER THIS AGREEMENT. IN NO EVENT SHALL INSTITUTION OR AMARANTUS BE LIABLE FOR ANY INDIRECT,
SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, WHETHER IN BREACH OF CONTRACT, TORT
OR OTHERWISE, EVEN IF THE PARTY IS ADVISED OF THE POSSIBLITY OF SUCH DAMAGES. EXCEPT FOR THEIR RESPECTIVE INDEMNITY OBLIGATIONS
OR BREACH OF CONFIDENTIALITY, EACH OF AMARANTUS’ AND INSTITUTION’S
AGGREGATE LIABILITY TO THE OTHER UNDER THIS AGREEMENT SHALL NOT EXCEED THE PAYMENTS MADE OR PAYMENTS DUE UNDER THIS AGREEMENT,
RESPECTIVELY.



 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 7



    

 


		9.	Representations and Warranties.



 


a.Institution
hereby represents that it is not and Investigator is not under any
obligation to any third party that would conflict with their obligations hereunder.


 


b.Institution
hereby represents and warrants that neither it nor Investigator is a party, nor will become a party during the Term, to any agreement
or arrangement that would prevent it or the Investigator from performing their duties and fulfilling their obligations to Amarantus
under this Agreement.


 


c.Institution
hereby represents that no federal grants or funds will be used in conducting the Research under this Agreement.


 


d.Institution
hereby represents that it has not and Investigator has not been convicted of
an offense related to any federal or state healthcare programs and has not been debarred by the United States Food and Drug Administration
(“FDA”), nor to the best of its knowledge have debarment proceedings been commenced against it
or Investigator. If,
during the term of this Agreement, Institution ,
Investigator, or any other Institution personnel participating in the conduct
of the Research becomes debarred, or receives notice of action or threat of action with respect to its debarment by the
FDA or any state healthcare program, Institution shall promptly notify Amarantus,
such notice to occur no later than 30 days after the Institution was notified. In such case, Amarantus shall have the right to
terminate this Agreement immediately.


 


		10.	Indemnity.



 


a.
 Notwithstanding anything else in this Agreement, Amarantus agrees to indemnify, defend and hold harmless Institution, Institution
personnel, the Investigator, Institution’s affiliates, and each of their
respective present trustees, faculty, staff, employees, students, directors, officers, agents, successors and assigns (altogether
the “Institution Indemnitees”) from, for and against any and all judgments, settlements, losses, expenses, damages
and/or liabilities (“Losses”) and any and all court costs, attorneys’ fees, and expert witness fees and expenses
( “Fees”) that an Institution Indemnitee may incur from any and
all allegations, claims, suits, actions or proceedings in each case brought by a third
party  (the “Claims”) arising out of, or relating
to Amarantus’  breach of this Agreement or its use, commercialization,
or other exploitation of Institution deliverables, whether by or through Amarantus, and including all Claims for infringement,
injury to business, personal injury and product liability, but excluding Losses and
Fees, to the extent a Claim is adjudicated by a Court
of competent jurisdiction to be caused by the gross negligence or willful misconduct of an
Institution Indemnitee.


 


b.
Institution agrees to defend, indemnify and hold harmless Amarantus, its directors,
officers, employees, agents, successors and assigns (“Amarantus Indemnitees”) from and against any all Losses and/or
Fees they may suffer in connection with any Claim arising from any breach of this Agreement by any Institution Indemnitee, except
to the extent a Claim is adjudicated by a court of competent jurisdiction to be caused by the negligence or willful misconduct
of an Amarantus Indemnitee.


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 8



    

 


c.Obligations
set forth in this section shall survive termination of this Agreement, shall continue even after assignment of rights and responsibilities,
and shall not be limited by any provision of this Agreement outside this section. If either
party seeks indemnification under this agreement, the party seeking indemnification
shall: (a) give the other party prompt written notice of any Claim; (b)
cooperate with the other party in connection with the defense and settlement
of the Claim; and (c) not settle or compromise the Claim without the written consent of the
other party, which shall not be unreasonably withheld. The indemnifying party
shall have the right to control the defense, without a reservation of rights, and settlement of the Claim for which the other
party claims indemnification, provided that the indemnifying party shall not enter into any settlement that admits fault, wrongdoing
or non-monetary damages without the other party’s written consent, such consent not to be unreasonably withheld. For any
claims which the indemnifying party does not defend the indemnified party, the indemnified party shall be entitled to conduct
and direct its own defense with attorneys of its own selection with Fees subject to the indemnifying party’s ongoing obligation
to indemnify for Fees.


 


		11.	Insurance. Throughout
the Term of this Agreement and for a period of five (5) years thereafter, Amarantus shall obtain and maintain workers-compensation
and comprehensive general liability self-insurance or insurance, with carrier(s) having at least A.M. Best ratings/class sizes
of A/VII and in the following minimum annual limits: From the Effective Date until the date at least one day prior to the first
commercial sale of a product utilizing inventions licensed to Amarantus under
this Agreement (“First Commercial Sale”) or at least one day prior to the first clinical study in humans of a product
utilizing inventions licensed to Amarantus under this Agreement (“Clinical Study”): $2,000,000 per occurrence and
$5,000,000 in the aggregate; and from the date at least one day prior to the First Commercial Sale or Clinical Study: $5,000,000
per occurrence and $10,000,000 in the aggregate.



 


Amarantus
will provide Institution with a certificate of insurance within thirty days of execution of this Agreement and annually thereafter
until Agreement expiry or termination. The certificates must provide that Amarantus’s
insurer will notify Institution in writing at least thirty (30) days prior to cancellation or material change in coverage. The
specified minimum insurance coverage and limits do not constitute a limitation on Amarantus’s liability or obligation to
indemnify or defend under this Agreement.


 


		12.	Unauthorized
Use of Materials.The furnishing of Materials under this Agreement will not constitute or
be construed to constitute any
grant, option or license to Institution under any patent or other intellectual
property rights now or hereafter held by Amarantus, whether by implication, estoppel
or otherwise, except to the extent necessary for Institution’s
conduct of the Research in accordance with the terms of this Agreement. Amarantus provides the Materials and related information
to Institution in reliance upon their agreement that the Materials and related Confidential
Information are and shall remain the sole and exclusive property of Amarantus
and will be used solely as described in Sections 3 and 5, respectively
and in accordance with the terms of this Agreement. Any unauthorized use of the Materials or such Confidential
Information will constitute a material breach of this Agreement.



 


		13.	Notices.All notices
provided for herein shall be given or made in writing and shall be deemed to have been duly given upon date of dispatch if (a)
delivered by hand, (b) mailed by certified mail, return receipt requested, or (c) delivered by a recognized courier service, or
(d) transmitted by facsimile and confirmed by overnight delivery of a hard copy, with appropriate documentation of delivery, to
the intended recipient and, in the case of mail or courier service, at the following address:



 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 9



    

 


	If
    to Institution:	If
    to Amarantus:
	 

        Office of Sponsored
        Research Services

        Washington University

        Attn: Director

        One Brookings
        Drive, CB1054

        St. Louis, MO
        63130

        Email address:
        whitemegan@wusm.wustl.edu
	 

        Amarantus,
        Inc.

        995 East Arques
        Avenue

        Sunnyvale, CA
        94085-4521

        Attn: Gerald
        Commissiong, CEO

        Copy: Marc Faerber,
        CFO

         

        Copy:

        Wilson,
        Sonsini, Goodrich & Rosati

        650
        Page Mill Road, Palo Alto, 

California 94304-1050

        Attn:
        Vern Norviel

         



Each
party may change its address and/or contact person for such notices and communications by written notice to the other party in
accordance with this Section 13.


 


		14.	Use of Names.The
parties agree not to use or refer to this Agreement in any promotional activity, or use the names or marks of the other without
express written permission, except to the extent such disclosure is reasonably necessary
for (i) regulatory filings, including filings with the U.S. Securities Exchange Commission or FDA, (ii) prosecuting or defending
litigation, or (iii) complying with (1) applicable governmental regulations and legal requirements or (2) the requirements of
any stock exchange or stock listing entity. In addition, Amarantus may issue a press release announcing the relationship contemplated
by this Agreement, as well as other press releases, only with the express written consent of Institution. This Section
14 shall not preclude Institution from acknowledging Amarantus’ support or Amarantus’ attribution of authorship in,
and distribution of published academic literature reporting the results of research conducted with the Materials.



 


		15.	Term.This Agreement,
and the Research hereunder, shall commence on the Effective Date and, unless terminated earlier pursuant to Sections 16.a,16.b,
or 16.c the Agreement shall continue in full force and effect until completion of the Research, but in no event longer than twenty-four
(24) months (“Term”).



 


		16.	Termination.



 


a.Amarantus
may terminate this Agreement for any reason upon thirty (30) days written notice to Institution.


 


b.Either
party may terminate this Agreement if the Investigator becomes unavailable for or withdraws from the Research and Institution
and Amarantus are unable to jointly agree upon a successor within fourteen (14) days after Amarantus is notified of such unavailability
or withdrawal.


 


c.Either
party may terminate this Agreement for material breach of the other party upon fourteen (14) days written notice to the breaching
party, provided that the breaching party does not cure such material breach to the non-breaching party’s reasonable satisfaction
within fourteen (14) days of receiving written notice of such breach from the non-breaching party.


 


d.The
rights and obligations under Sections 2, 3, 4, 5, 6, 7, 8, 10, 11, 12, 14, 16(c),
(d), and (e), 17 and18-24 shall survive any termination or expiration
of this Agreement.


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 10



    

 


e.Expiration
or termination of this Agreement shall not relieve any party of any liability which accrued hereunder prior to the effective date
of such expiration or termination, or preclude any party from pursuing all rights and remedies it may have hereunder or at law
or in equity with respect to any breach of this Agreement, nor prejudice any party’s right to obtain performance of any
obligation.


 


f.In
the event this Agreement is terminated by Amarantus under Section 16.b or 16.c, Institution shall refund, within ninety (90) days
of termination, all unexpended funds, as of the termination date.


 


g.Upon
termination, Amarantus’s sole obligations to Instituion shall be to pay
any monies due and owing up to the time of termination for work actually performed and all costs reasonably and properly incurred
by Instituion as of the date that termination is effective, including all non-cancelable obligations reasonably and properly entered
into for the purposes of the Project, which may include any non-cancelable project participant salaries, fellowships or post-doctoral
stipends, and other non-cancelable executory obligations reasonably and properly incurred by Instituion in furtherance of Project,
subject to Instituion taking reasonable steps to mitigate and minimize such costs and subject to Amarantus's
maximum liability not exceeding any unpaid balance of the Budget.


 


		17.	Governing Law; Venue.This
Agreement shall be governed by the laws of the State of Delaware and the United States of America, without reference to conflicts
of laws principles. Any claim or controversy arising out of or related to this Agreement or any breach hereof shall be submitted
to a court of applicable jurisdiction in the state of Delaware, and each party
hereby consents to the jurisdiction and venue of such court.



 


		18.	Assignment.
This Agreement shall not be assigned by either party without the prior written consent of the other party, except that Amarantus
may assign this Agreement, without the consent of Institution, to (i) an Affiliate (defined below) of Amarantus; or (ii) an entity
that acquires all or substantially all of that portion of Amarantus’ business or assets to which this Agreement pertains,
whether by merger, sale of assets, operation of law, or otherwise; provided, however, that the acquiring entity agrees in writing
to be bound by the terms and conditions of this Agreement. “Affiliate” means any
entity which (a) controls at least a fifty percent (50%) interest of one of the Parties; (b) is at least fifty percent (50%) owned
by one of the Parties; or (c) is under common control of a third entity which owns at least a fifty percent (50%) interest in
one of the Parties.



 


		19.	Waivers.Any waiver
under this Agreement must be in writing, and will not operate as to a waiver of any future breach of this Agreement.



 


		20.	Severability.
If any provision of this Agreement shall be deemed by a court of competent jurisdiction to be illegal, invalid or unenforceable,
the validity, legality or enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired,
and such provision shall be modified to the minimum extent necessary to make such provision consistent with applicable law, and
in its modified form such provision shall be enforceable and enforced.



 


		21.	Entire Agreement.This
Agreement, together with Exhibit A, Exhibit B, and Exhibit C attached hereto and incorporated herein, contains the final, complete
and exclusive agreement of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous
understandings and agreements relating to its subject matter.



 


		22.	Modifications.
This Agreement may not be changed, modified, amended or supplemented except by a written instrument signed by both parties.



 



    	 



    	SPONSORED RESEARCH AGREEMENT	Page 11



    

 





		23.	Counterparts.
This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which together
will constitute one and the same instrument.



 


		24.	Language. This Agreement
has been prepared in the English language and the English language shall control its interpretation.



 


The parties
hereto have entered into this Agreement by their duly authorized representatives as of the Effective Date.


 


	AMARANTUS,
    INC.	 	INSTITUTION
	Signature:	 	 	Signature:	 
	Print
    Name:	 	 	Print
    Name:	 
	Title:	 	 	Title:	 
	Date:	 	 	Telephone:	 
	 	 	 	Fax:	 
	 	 	 	E-mail:	 
	 	 	 	Date:	 
	 	 	 	 

        The
        individual signing on behalf of Institution hereby represents and warrants that he or she has the requisite authority
        to bind Institution to this Agreement

	 	 	 	 
	 	 	 	 
	 	 	 	By
    his signature below, Dr. Fumihiko Urano, MD, PhD acknowledges and understands his obligations under this Agreement.
	 	 		 
	 	 	 	Dr.
    Fumihiko Urano, MD, PhD


 


 


 



    	 



    	SPONSORED RESEARCH AGREEMENT	Page 12



    




 


Exhibit
A


Research
Plan


 


Title: MANF-based
treatment for optic nerve degeneration in Wolfram syndrome


 


Specific
Aims


 


Wolfram syndrome
is an autosomal recessive genetic disorder characterized by juvenile diabetes, blindness, and neurodegeneration. As there is currently
no treatment, few patients with Wolfram syndrome exceed 40 years of age. One of the major manifestations that affect their quality
of life is blindness. It has been shown that degeneration of a variety of retinal cells, including retinal ganglion cells and
retinal pigment epithelial cells, is seen in patients with Wolfram syndrome. Wolfram syndrome is caused by mutations in the WFS1
gene encoding a transmembrane protein localized the endoplasmic reticulum (ER) and considered as a prototype of human ER disease.


 


The ER is a
cellular compartment that has multiple biological functions, including the folding of secretory proteins, storage of calcium,
and regulation of redox state. Increasing evidence indicates that ER dysfunction can lead to genetic disorders, such as Wolfram
syndrome and early-onset Parkinson’s disease, as well as common disorders, including diabetes. Despite the underlying importance
of ER dysfunction in such diseases, there is currently no treatment that targets the ER.


 


Recent findings
indicate that mesencephalic astrocyte-derived neurotrophic factor (MANF) and the signaling pathways regulated by MANF are promising
drug targets for ER disease, including Wolfram syndrome. MANF is a 18.1 kDa protein secreted from cells undergoing ER dysfunction.
It has been shown that MANF can confer protection against ER dysfunction-mediated cell death. We propose to advance therapeutic
development for blindness in Wolfram syndrome using MANF.


 


Aim 1. To create retinal pigment
epithelial cells and retinal ganglion cells using induced pluripotent stem cells (iPS cells) of Wolfram syndrome patients and
appropriate control subjects. 


 


Aim 2. To test if MANF can confer
protection against ER dysfunction-mediated cell death using retinal pigment epithelial cells and retinal ganglion cells derived
from Wolfram syndrome iPS cells.


 


Approach


 


Aim 1. To create retinal pigment
epithelial cells and retinal ganglion cells using induced pluripotent stem cells (iPS cells) of Wolfram syndrome patients and
appropriate control subjects. 


 


We obtained
fibroblasts from 14 patients with Wolfram syndrome and established multiple Wolfram syndrome-iPS cell lines using Sendai virus
expressing OCT4, SOX1, KLF4, and c-MYC. Further iPSC clones were derived from their parents and non-affected control subjects
using the same procedure. All Wolfram sydnrome- and control-iPS cells showed silencing of the four transgenes, exhibited characteristic
human embryonic stem cell morphology, expressed pluripotency markers including ALP, Nanog, SOX2, SSEA4, TRA-1-81, and had a normal
karyotype. Pluripotent properties of Wolfram syndrome-iPSCs were also assessed by teratoma formation on intramuscular injection
of undifferentiated Wolfram syndrome-iPSCs into SCID mice.


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 13



    

 


Creation
of retinal pigment epithelial cells


 


To create retinal
pigment epithelial cells, iPS cells will be seeded as suspension cultures in the presence of Y-27632 (10 μM, days 0-14),
CKI-7 (5 μM, days 0-20), and SB-431542 (5 μM, days 0-20). On day 21, these cells will be trypsinized, treated
with collagenase, and cultured as floating aggregates. After 1-2 weeks, black spheres will be plated onto poly-D-lysine-lamininfibronectin-coated
slides. These are retinal pigment epithelial cells and will be used for further experiments.


 


Creation
of retinal ganglion-like cells


 


To create retinal
pigment epithelial cells, we will first create neural progenitor cells from iPS cells. We will use STEMdiffTM Neural Induction
Medium (Catalog #05831/05835). Neural rosette clusters will be selected and isolated for further experiments using STEMdiffTM
Neural Rosette Selection Reagent (Catalog #05832) from STEMCELL TECHNOLOGIES. These isolated neural rosette clusters are neural
progenitor cells. These iPS cell-derived neural progenitor cells will be treated with FGF2 for 8-10 days, and then treated with
Shh for another 12 h. These are retinal ganglion-like cells and will be used for further experiments.


 


Aim 2. To test if MANF can confer
protection against ER dysfunction-mediated cell death using retinal pigment epithelial cells and retinal ganglion cells derived
from Wolfram syndrome iPS cells.


 


We have recently
reported that the loss of function of WFS1 causes the leakage of calcium from the ER to the cytosol and subsequent calpain 2 activation,
leading to cell death. We will test if MANF can prevent calpain 2-mediated cell death.


 


Retinal
pigment epithelial cells and retinal ganglion cells derived from control and Wolfram syndrome iPS cells will be pretreated with
different concentrations of MANF for 24 h, and then challenged with or without an ER stress-inducer thapsigargin (0.5 mM)
for another 24 h. Calpain 2 activation and cell death will be monitored by spectrin cleavage and caspase 3 cleavage respectively.
We will also isolate RNA from these cells and study the gene expression profiles to identify survival genes activated by MANF
in retinal pigment cells and retinal ganglion cells. 


 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 14



    

 


EXHIBIT B


 


Budget


 


Personnel Costs (Salary &
Fringe)


 


Fumihiko Urano, MD, PhD (1 calendar
month per year) is a Principal Investigator. He is responsible for the administration and direction of all aspects of the Research
Project. He will supervise all other personnel working on the Research Project. He will play a major role in the design of the
experiments and interpretation of the data.


 


Cri Brown, B.S, Research Assistant
(2 calendar months per year) is an experienced research assistant in Dr. Urano’s lab. She is responsible for the experiments
described in Aim 1 and Aim 2.


 


Total Personnel Costs (Salary and
Fringe)


$29,025 (05/01/2014-04/30/2015)


 


Supplies Costs


$49,975 (05/01/2014-04/30/2015)


 


Travel Costs 


 


Dr. Urano and his colleagues will
travel to collect information for developing diagnostics and therapeutics for diabetes using MANF. National and international
travel will be necessary for this Research Project. The estimated costs for this travel will be $ 1,000.


 


Research Project Costs 


 


	Direct
    Costs	$  80,000
	Indirect
    Cost (50 %)	$  40,000
	 	 
	Total
    Research Project Costs	$
    120,000



 






    	 



    	SPONSORED RESEARCH AGREEMENT	Page 15



    

 


Exhibit
C


Materials


 


Recombinant human mesencephalic
astrocyte-derived neurotrophic factor (rhMANF) (Batch 030513) will be provided by Amarantus. rhMANF was expressed by Icosagen
AS (Tartu, Estonia) in a Chinese hamster ovary (CHO)-based cell line using QMCF technology and purified by ion-exchange and gel-filtration
chromatography from serum-free CHO growth medium. The rhMANF was homogenous as determined by mass-spectroscopy and displayed a
molecular weight of 18142.3 Da. Coomassie-stained SDS-PAGE and Western blotting resulted in a single band of the expected molecular
weight. The endotoxin level was less than 1 EU/mg of protein as determined by the LAL method.


 


rhMANF displayed cellular activity
on dopaminergic neurons in the expected concentration range and was active in vivo in a mouse model of retinal degeneration.


 


rhMANF will be provided as a 1mg/ml
solution in PBS, pH 7.4.


 


rhMANF will be shipped on dry-ice
and should be stored at -70 degrees Celsius upon receipt. Repeated freeze-thaw cycles should be avoided and therefore it is recommended
to aliquot the rhMANF solution into smaller quantities.