Document:

psnl-ex101_102.htm

 

Exhibit 10.1

AMENDMENT NO. 2 TO LEASE

 

This AMENDMENT NO. 2 TO LEASE (“Amendment”) is dated as of June 9, 2022 (the “Amendment Date”) by and between ARDENWOOD VENTURES I, LLC, a Delaware limited liability company (“Landlord”), and PERSONALIS, INC., a Delaware corporation (“Tenant”).

 

Recitals

 

A.Landlord and Tenant entered into that certain Lease Agreement dated as of August 24, 2021, as amended by that certain Amendment No. 1 to Lease dated as of December 8, 2021 (collectively, the “Lease”) for premises located at 6600 Dumbarton Circle in Fremont, California, comprised of approximately 100,808 rentable square feet of floor area as more particularly described in the Lease.

 

B.The Initial TI Budget is defined in the Lease as “the September 27, 2021 budget delivered to Landlord by Tenant, which includes reasonable detail on the estimated construction cost of all Tenant Improvement work and materials for the entire Leased Premises, and the estimated cost of all professional services, fees and permits in connection therewith” and totaled $33,409,720.

 

C.Tenant has concluded that the Initial TI Budget understated the actual anticipated cost of the Tenant Improvements, which is $37,709,000 (the “Revised TI Budget”).

 

D.Landlord and Tenant now desire to amend the Lease on the terms and conditions set forth herein in order to bring their respective funding obligations into balance.

 

Agreement

 

Now Therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.Recitals. The foregoing Recitals are hereby incorporated into this Amendment and agreed to by Landlord and Tenant.

 

2.Definitions. All capitalized terms used in this Amendment but not otherwise defined shall have the meanings assigned to them in the Lease.

 

3.Funding Percentages. The parties hereby agree that the Revised TI Budget shall retroactively replace the Initial TI Budget for purposes of determining each party’s proportionate funding obligations pursuant to Paragraph 3(b)(iii) of the Work Letter, and further agree as follows:

 

(a)Based on the Revised TI Budget, the proportionate funding percentages are 40.10% (Landlord) and 59.90% (Tenant).

 

(b)Because the Initial TI Budget totaled $33,409,720, prior to the Amendment Date the proportionate funding percentages of each draw pursuant to Paragraph 3(b)(iii) of the Work Letter were 45.26% (Landlord) and 54.74% (Tenant), which has resulted in a cumulative overfunding by Landlord of

$475,790 for the first seven (7) draws.

 

(c)With regard to the next payment to be made by Landlord from the Tenant Improvement Allowance pursuant to Paragraph 3(b)(iii) of the Work Letter, such payment shall equal (a)(i) the total payment request properly set forth in the application for payment, multiplied by (ii) 40.10%, minus (b)

$475,790.

 

1.

 
 

 

 

(d)With regard to all future payments to be made by Landlord from the Tenant Improvement Allowance, such payments shall be made pursuant to and in accordance with Paragraph 3(b)(iii) of the Work Letter, which is hereby amended in its entirety to read as follows from and after the Amendment Date:

 

“Prior to the TI Allowance Deadline, on or before the 30th day following submission of the application for payment, so long as Tenant is not in monetary default, or material non- monetary default beyond the expiration of any notice and cure periods expressly set forth in the Lease or this Work Letter, under the terms of this Work Letter or the Lease, Landlord shall pay a share of such payment pari passu with Tenant, determined by multiplying the amount of such payment by 40.10%, and Tenant shall pay the balance of such payment, provided that (i) to the extent the anticipated cost of the Tenant Improvements at any time is anticipated to exceed $37,709,000, whether due to change orders or otherwise, such excess amount shall be paid entirely by Tenant and Tenant shall exclude such excess amount from its application(s) for payment, and (ii) at such time as Landlord has paid the entire Tenant Improvement Allowance on account of such Tenant Improvement work, all billings shall be paid entirely by Tenant. If upon completion of the Tenant Improvement work and payment in full to the Tenant Improvement Contractor, the architect and engineer, and payment in full of all fees and permits, the portion of the cost of the Tenant Improvement work, architects’ and engineers’ fees, permits and fees theretofore paid by Landlord is less than the Tenant Improvement Allowance, Landlord shall reimburse Tenant for costs expended by Tenant for Tenant Improvement work up to the amount by which the Tenant Improvement Allowance exceeds the portion of such cost theretofore paid by Landlord, it being the intent of the parties that Tenant shall in such case be entitled to the benefit of the entire Tenant Improvement Allowance. Landlord shall have no obligation to advance the Tenant Improvement Allowance to the extent it exceeds the total cost of the Tenant Improvement work. In no event shall Landlord have any responsibility for the cost of the Tenant Improvement work in excess of the Tenant Improvement Allowance. Landlord shall have no obligation to make any payments to Tenant Improvement Contractor’s material suppliers or subcontractors or to determine whether amounts due them from Tenant Improvement Contractor in connection with the Tenant Improvement work have, in fact, been paid.”

 

4.Ratification. The Lease, as amended by this Amendment, is hereby ratified by Landlord and Tenant and Landlord and Tenant hereby agree that the Lease, as so amended, shall continue in full force and effect.

 

	
 
	
5.
	
Miscellaneous.

 

5.1Voluntary Agreement. The parties have read this Amendment and the mutual releases contained in it, and on the advice of counsel they have freely and voluntarily entered into this Amendment.

 

5.2Attorney’s Fees. If either party commences an action against the other party arising out of or in connection with this Amendment, the prevailing party shall be entitled to recover from the non- prevailing party, reasonable attorney’s fees and costs of suit.

 

5.3Successors. This Amendment shall be binding on and inure to the benefit of the parties and their successors.

 

5.4Counterparts. This Amendment may be signed in two or more counterparts. When at least one such counterpart has been signed by each party, this Amendment shall be deemed to have been

 

2.

 
 

 

 

fully executed, each counterpart shall be deemed to be an original, and all counterparts shall be deemed to be one and the same agreement.

 

5.5Capitalized Terms. Capitalized terms used in this Amendment and not otherwise defined herein shall have the same meaning ascribed to such terms in the Lease.

 

In Witness Whereof, Landlord and Tenant have executed this Amendment as of the date first written above.

 

	
LANDLORD:
	
 
	
 
	
TENANT:
	
 

	
 
	
 
	
 

	
ARDENWOOD VENTURES I, LLC,
	
 
	
PERSONALIS, INC.,

	
a Delaware limited liability company
	
 
	
a Delaware corporation

	
By:
	
/s/ Mark Pearson
	
 
	
By:
	
/s/ Carol Tillis

	
Printed Name:
	
Mark Pearson
	
 
	
Printed Name:
	
Carol Tillis

	
Title:
	
Authorized Signatory
	
 
	
Title:
	
VP, Finance and Administration

	
 
	
 
	
 
	
 
	
 

 

 

3.EX-10.2

  CERTAIN CONFIDENTIAL INFORMATION, MARKED BY [***], HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  Amendment 01

  to

  COLLABORATION AND OPTION AGREEMENT

   

  This Amendment 01 to Collaboration and Option Agreement (the "First Amendment") is made and entered into as of June 28th, 2022 (the "Amendment 01 Effective Date"), by and between FATE Therapeutics, Inc., a Delaware corporation located at 3535 General Atomics Court, Suite 200, San Diego, California 92121, United States of America ("FATE"), and Ono Pharmaceutical Co., Ltd., 8-2, Kyutaromachi 1-chome, Chuo-ku, Osaka, Osaka 541-8564, Japan ("ONO").  FATE and ONO are sometimes referred to herein individually as a "Party" and collectively as the "Parties".

  RECITALS

  Whereas, the Parties have entered into a Collaboration and Option Agreement dated September 14, 2018 (the “Agreement”), pursuant to which the Parties are conducting a research collaboration;

  Whereas, as agreed in the Letter Agreement effective on December 4, 2020, the Agreement with respect to Collaboration Candidate 1 was terminated;

  Whereas, as part of the Letter Agreement, ONO has designated certain Antigen Binding Domains using [***] as ONO Antigen Binding Domains;

  Whereas, the Parties wish to start another drug discovery program using [***] to identify Antigen Binding Domains, with which Collaboration Candidates and Collaboration Products will be Researched and Developed under the Agreement; 

  Whereas, the Parties also wish to add CAR-targeted natural killer (NK) cells derived from engineered master induced pluripotent stem cells (iPSC) as potential effector cells under the Agreement;

  Now, Therefore, in consideration of the foregoing and the mutual agreements set forth below, the Parties agree as follows:

  1Defined Terms.  Capitalized terms used but not defined herein shall have the same respective meanings ascribed to such terms in the Agreement.

   

  - 1 -

  

   

   

  2[***].

  2.1Prior to Amendment 01 Effective Date, the Agreement contemplates that ONO will designate ONO Antigen Binding Domain(s) directed to [***] (referred to as “[***]” under the Agreement), for which Collaboration Candidate 2 will be Researched and Developed under the Agreement and for which ONO has the right to exercise the ONO Option.  As of the Amendment 01 Effective Date, ONO has designated [***] as [***] and certain ONO Antigen Binding Domain(s) directed to [***] as ONO Antigen Binding Domain [***] pursuant to the Letter Agreement.

  2.2The Parties agree that, pursuant to this First Amendment, ONO shall have the right to designate ONO Antigen Binding Domain(s) directed to [***] (“[***]”) under the Agreement.  As of the Amendment 01 Effective Date, ONO hereby does designate [***] as [***] and Antigen Binding Domain(s) directed to [***] as “ONO Antigen Binding Domain [***]” (individually) or “ONO Antigen Binding Domains [***]” (collectively).  Collaboration Candidates and Collaboration Products (“Collaboration Candidate 3” and “Collaboration Product 3”) directed to [***] will be Researched and Developed in accordance with the Agreement, for which ONO has the right to exercise the ONO Option.

  2.3ONO agrees to provide [***] of the Amendment 01 Effective Date.  The Parties acknowledge and agree that there shall be [***] (as set forth in Section [***] of the Agreement) owed by ONO to Fate upon such delivery.  If ONO does not provide [***] within [***] of the Amendment 01 Effective Date, then ONO shall be deemed to have terminated the Agreement with respect to [***] in its entirety (the “[***] Termination”).]

  2.4All references in the Agreement to ONO Antigen Binding Domain shall read ONO Antigen Binding Domain [***] (and, as such, applicable solely to [***]).  The terms and conditions of the Agreement applicable to [***], ONO Antigen Binding Domain [***], Collaboration Candidate 2, Collaboration Product 2, Competitive Product 2 and Terminated Collaboration Candidate 2 (collectively, the “Collaboration Program 2”) shall also apply, mutatis mutandis, to [***] (i.e., [***]), ONO Antigen Binding Domain [***], Collaboration Candidate 3, Collaboration Product 3, Competitive Product 3 and Terminated Collaboration Candidate 3 (defined mutatis mutandis) (collectively, the “Collaboration Program 3”).

  2.5Collaboration Program 2 and Collaboration Program 3 shall be two (2) separate programs under the Agreement, in that: (a) the ONO Option will be exercised, if at all, separately for one (1) [***] and one (1) [***], and a separate Option Exercise Payment 

   

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  under Section 6.3.3(b) will be due for each of [***] and [***]; (b) in addition to ONO’s payment obligations under the Agreement with respect to [***] and [***], ONO has a separate set of payment obligations for [***]; (c) the same mechanism for any [***] or [***] to become a Fate Cell Therapy under [***] shall also serve as the mechanism for any [***] or [***] to become a Fate Cell Therapy under [***], applied mutatis mutandis; and (d) the FATE CDCC Option will be exercised, if at all, separately for [***] and [***].  

  2.6Section 2.3.5 of the Agreement, which governs the identification of an Alternative Antigen Binding Domain, shall be of no further effect and shall be deleted in its entirety from the Agreement.

  3Amendments to the Agreement.  The Parties hereby agree on the following amendments to the Agreement effective as of the Amendment 01 Effective Date:

   

  3.1Section 1.102 of the Agreement shall be replaced in its entirety to read as follows:

  “Target 2” means: [***].

  3.2Section 1.102(a) is hereby added to the Agreement to read as follows:

  “Target 3” means: [***].

  3.3Research and Development Costs.  The table of Annual R&D Fees in Section 6.2.2 shall be replaced in its entirety to read as follows:

  			
	Research Term Year
	Estimated Annual Collaboration Budget
	 
Annual R&D Fees

	1
	$[***]
	$5,000,000

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

  * [***]

  3.4Development Milestones.

   

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  (a)The tables of milestone payments in Section 6.3.4 (b), (c) and (d) are deleted in their entirety and replaced by the following tables, and each such milestone payment shall be payable once for [***] and once for [***]:

  (b)In the United States.

  			
	Development Milestone Event *
	Milestone Payment

	 
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

  * [***]

  (c)In Europe.

  			
	Development Milestone Event *
	Milestone Payment

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

  * [***]

   

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  (d)In Asia.

  			
	Development Milestone Event 
	Milestone Payment

	 
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

	[***]
	[***]
	[***]

   

  The provisions regarding milestone payments set forth in Section 6.3.4 shall be applicable to each [***] and to [***] individually.  For clarity, a separate set of milestone payments will be payable for each of [***] and [***].

  3.5Sales Milestones and Royalties.  The provisions regarding milestone and royalty payments set forth in Sections 6.3.5 and 6.4 shall be applicable to [***] and to [***] individually.  For clarity, a separate set of sales milestone payments will be payable for each of [***] and [***].

   

  3.6Termination.  The termination rights and consequence in Article 11 of the Agreement shall apply separately to [***] and [***], on the one hand, and [***] and [***], on the other hand.

   

  4CAR-targeted NK Cell Therapeutics.

  4.1No CAR-Targeted NK Therapy Prior to Amendment 01 Effective Date.  The Parties acknowledge and agree that, prior to the Amendment 01 Effective Date, the collaboration between the Parties under the Agreement only encompassed CAR-targeted T-lymphocyte therapeutics and did not encompass CAR-targeted NK cell therapeutics.

  4.2Exploration of CAR-Targeted NK Therapy.  The Parties hereby agree that, as of the Amendment 01 Effective Date:

  4.2.1FATE shall have the right to and will use Commercially Reasonable Efforts to Research and Develop CAR-targeted NK cell therapeutics incorporating ONO 

   

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  Antigen Binding Domain(s) directed to [***] and [***] (after the delivery thereof by ONO); provided, however, that [***]

  4.2.2Upon FATE and ONO’s effectuating a mutually-agreeable Joint Development Plan to include Research activities for CAR-targeted NK cell therapeutics incorporating ONO Antigen Binding Domain(s) directed to [***] and [***], then with respect to each such target, (i) [***]

  4.2.3In the event ONO exercises the ONO Option with respect to [***] or [***], ONO shall have the right to elect whether such Collaboration Candidate shall be [***]

  4.2.4[***]

  4.2.5Section 7.10.2 of the Agreement shall apply to any and all [***]

  4.2.6[***]

  4.3ONO Option Exercise for CAR-targeted NK Cell Therapeutics.  The following definitions and provisions shall be added or modified upon ONO’s exercise of the ONO Option following effectuation of an amendment to the Joint Development Plan to encompass CAR-targeted NK cell therapeutics for [***] or [***] that incorporate a particular ONO Antigen Binding Domain; provided, however, that any such additions and/or modifications shall only apply to the [***] or [***], as applicable, for which the Joint Development Plan is expanded to encompass CAR-targeted NK cell therapeutics that incorporate such ONO Antigen Binding Domain:

  4.3.1“Biosimilar Products”.  The words “a CAR-targeted T-lymphocyte therapeutic” in Section 1.7, 4th line of the Agreement shall be deleted and replaced by “a CAR-targeted T-lymphocyte therapeutic or a CAR-targeted NK cell therapeutic”.

  4.3.2“Collaboration Candidate 2”.  Section 1.22 of the Agreement shall be deleted in its entirety and replaced by the following:

  1.22 “Collaboration Candidate 2” means a CAR-targeted T-lymphocyte therapeutic or a CAR-targeted NK cell therapeutic derived from a master iPSC line and generated under the Joint Development Plan, where such master iPSC line is engineered to [***] for which FATE is conducting Research and Development under the Joint Development Plan and for which: (a) ONO has not exercised the ONO Option pursuant to Section 2.4.3 (Option Exercise); and (b) the applicable ONO Option Period has not expired.

   

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  4.3.3“FATE Platform Technology”.   The words [***] in the 5th line of Section [***] of the Agreement shall be deleted and replaced by [***].

  4.3.4“T cell Biology”.  Section 1.103 of the Agreement shall be deleted in its entirety and replaced by the following:

  1.103 “T and NK cell Biology” means [***].

  4.3.5“T Cell Biology Activities”.  Section 1.104 of the Agreement shall be deleted in its entirety and replaced by the following: 

  1.104 “T and NK Cell Biology Activities” means those Research and Development activities that are specifically related to T and NK Cell Biology and which are set forth under the Joint Development Plan and identified as T and NK Cell Biology Activities in the Joint Development Plan.

  4.3.6Non-exclusive License for Parties' Internal Use.  All the terms “T Cell Biology” in Sections [***] and [***] of the Agreement shall be replaced by “T and NK Cell Biology” and the Joint Development Plan set forth on Exhibit 1.69 shall also include activities directed to NK Cell Biology, as applicable.

  4.3.7 Existing NK Cell License Agreements. Prior to the Effective Date, FATE entered into certain agreements under which FATE has been granted licenses in relation to iPSC-derived NK cell technology subject to Third Party payment obligations that are set forth on Exhibit A (“FATE NK Cell Agreements”).  As of the Amendment 01 Effective Date, the Parties acknowledge that, with respect to CAR-targeted NK cell therapeutics, no sublicense has been granted from FATE to ONO under the FATE NK Cell Agreements and no agreements between FATE and any Third Party shall be deemed an Existing Agreement under the Agreement.  In the event ONO desires to exercise the ONO Option with respect to a CAR-targeted NK cell therapeutic, FATE may wish to amend any of the FATE NK Cell Agreements prior to granting ONO a sublicense under the FATE NK Cell Agreements, and if so, FATE will use Commercially Reasonable Efforts to enter into such amendments, subject to ONO’s prior consent on any such amended terms, which consent by ONO shall not be unreasonably withheld, delayed or conditioned.  Thereafter, upon ONO’s exercise of the ONO Option with respect to a CAR-targeted NK therapeutic, such FATE NK Cell Agreements shall be deemed Existing Agreements under the Agreement and such Patents shall be added to the Agreement as FATE Patents and sublicensed to ONO with respect to 

   

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  such CAR-targeted NK therapeutic, effective upon such ONO Option exercise relating thereto. 

  4.3.8FATE NK Cell Patents.  FATE hereby represents and warrants to ONO, as of the Amendment 01 Effective Date, that the Patents set forth on Exhibit B of this Amendment 01 (FATE NK Cell Patents) are Controlled by FATE or its Affiliates in connection with the Research, Development and Commercialization of any CAR-targeted NK cell therapeutics.  Upon ONO’s exercise of the ONO Option with respect to a CAR-targeted NK cell therapeutic, the Parties agree that such Patents shall be added to Exhibit 1.48 (FATE Patents) of the Agreement and sublicensed to ONO with respect to such CAR-targeted NK therapeutic, effective upon such ONO Option exercise relating thereto.

  5ONO Option Period for [***].

  5.1Collaboration Candidate 3 Research Term.  Upon the expiration of the ONO Option Period for [***] (the “[***] Option Expiration”), ONO shall, by written notice to FATE, to elect to [***]

  5.2ONO Option for Collaboration Candidate 3.  ONO may exercise the ONO Option with respect to Collaboration Candidate 3 in accordance with Section 2.4.3 of the Agreement; provided, however, that in the event ONO has exercised the ONO Option with respect to [***] in accordance with Section 2.4.3 of the Agreement, then ONO may choose to defer its decision to exercise the ONO Option with respect to [***] and to extend the [***] as set forth below.  In the event ONO elects to defer its decision and extend the [***], ONO shall make a [***] payment to FATE in the amount of [***] ($[***]) prior to the ONO Option Period expiration date for [***].  In such case, the [***] shall be extended to end on the earliest of (i) [***] from the Amendment 01 Effective Date, (ii) [***], and (iii) [***] after the date on which FATE has completed all IND-enabling studies for [***].  Promptly after ONO provides to FATE such notice of deferral and extension, the Parties shall mutually agree to a Joint Development Plan in an effort to promptly submit an IND to the FDA for [***] and to the Annual R&D Fees related thereto during the extended [***].  Except as otherwise expressly provided in this First Amendment or in the Joint Development Plan, the Parties shall [***]  ONO shall have the right, but not the obligation, to exercise the ONO Option with respect to [***] in accordance with Section 2.4.3 of the Agreement at the end of the ONO Option Period (as may be extended as set forth above).

  6Removal of [***].  Sections 1.54 and 5.10 of the Agreement shall be deleted in its entirety.

   

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  7Ratification of the Agreement.  Except as amended as described above, all other terms and conditions stated in the Agreement shall remain in full force and effect.  The execution, delivery and effectiveness of this First Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the parties to the Agreement, nor constitute a waiver of any provision of the Agreement.

  8Counterparts; Electronic Delivery.  This First Amendment may be executed in counter-parts with the same effect as if both Parties had signed the same document.  All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument.  Signatures to this Agreement transmitted by facsimile, by email in "portable document format" (".pdf"), or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Agreement shall have the same effect as physical delivery of the paper document bearing original signature.

  [Signature page follows]

   

   

  - 9 -

  

   

   

  IN WITNESS WHEREOF, the Parties have caused this First Amendment to be executed by their respective duly authorized officers as of the Effective Date.

   

  		
	FATE Therapeutics, Inc.
 
By: 	/s/ Scott Wolchko
Name: Scott Wolchko
Title: 	President & Chief Executive Officer
	ONO Pharmaceutical Co., Ltd.
 
By: 	/s/ Toichi Takino, Ph.D
Name: Toichi Takino, Ph.D
Title: Member of the Board of Directors
Executive Officer
Executive Director,
Discovery & Research

   

   

   

   

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  Exhibit A

  [FATE NK Cell Agreements]

   

  [***]

   

   

  - 11 -

  

   

   

  Exhibit B

  [FATE NK Cell Patents]

   

  [***]

   

  - 12 -

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