Document:

EX-10.17

 Exhibit 10.17 

***Text Omitted and Filed Separately 

with the Securities and Exchange Commission. 

Confidential Treatment Requested 

Under 17 C.F.R. Section 200.80(b)(4) and Rule 406 of the 

Securities Act of 1933, as amended. 

LICENSE AGREEMENT 
 THIS LICENSE
AGREEMENT (this “Agreement”) dated as of December 12, 2013 (the “Effective Date”), is entered into between Cabaret Biotech Ltd. (“Cabaret”), a company incorporated in Israel with an address at 14 Marva St.,
Rehovot 7630950, Israel, Dr. Zelig Eshhar (“Dr. Eshhar”), an individual, and KITE PHARMA, INC. (“Kite”), a Delaware corporation, with an address at 10924 Le Conte Avenue, Los Angeles, California 90024, USA. 

WHEREAS, Dr. Eshhar has assigned to Cabaret all of his rights, title and interest in and to the Licensed IP Rights and In Licenses and
Cabaret solely owns or exclusively controls the Licensed IP Rights (all as defined below). 
 WHEREAS, Kite desires to obtain an exclusive
license under Cabaret’s rights in the Licensed IP Rights in the Field on the terms and conditions set forth below. 
 NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants herein contained, the parties hereby agree as follows: 
  

	 	1.	DEFINITIONS 

 For purposes of this Agreement, the terms defined in this Section 1
shall have the respective meanings set forth below: 
 1.1 “Affiliate” shall mean, with respect to any Person, any other
Person which directly or indirectly controls, is controlled by, or is under common control with, such Person. A Person shall be regarded as in control of another Person if it owns, or directly or indirectly controls; at least fifty percent
(50%) of the voting stock or other ownership interest of the other Person, or if it directly or indirectly possesses the power to direct or cause the direction of the management and policies of the other Person by any means whatsoever. 

1.2 “Commencement” shall mean with respect to a clinical trial of a Licensed Product, the first administration to a patient
of such Licensed Product in such clinical trial. 
 1.3 “Commercially Reasonable Efforts” shall mean the efforts, expertise
and resources normally used by a Party to develop, use, Manufacture and commercialize a product owned by it or to which it has rights, which is of similar market potential at a similar stage in its development or product life, taking into account
issues of safety and efficacy, product profile, difficulty in developing the product, competitiveness of the marketplace for the product, the proprietary position of the product, the regulatory structure involved, the availability and level of
reimbursement for such treatment by Third Party payors or health insurance plans, the potential total profitability of the applicable product(s) marketed or to be marketed and other relevant factors affecting the

 
cost, risk and timing of Development and the total potential reward to be obtained if a product is commercialized. 

1.4 “Competent Authority(ies)” shall mean, collectively, (a) the governmental entities in each country or supranational
organization that is responsible for the regulation of any Licensed Product intended for use in the Field or the establishment (including the FDA and the EMEA), or (b) any other applicable regulatory or administrative agency in any country or
supranational organization that is comparable to, or a counterpart of, the foregoing. 
 1.5 “EMEA” shall mean the European
Agency for the Evaluation of Medicinal Products of the European Union, or the successor thereto. 
 1.6 “FDA” shall mean
the Food and Drug Administration of the United States, or the successor thereto. 
 1.7 “Field” shall mean,
collectively, (a) all oncology applications and (b) all other applications, as mutually agreed in writing by the parties and attached as an amendment to this Agreement. 

1.8 “First Commercial Sale” shall mean, with respect to any Licensed Product in a country, the first commercial sale of such
Licensed Product in such country after all applicable marketing and pricing approvals (if any) have been granted by the applicable governing health authority of such country. Sales for clinical trial purposes or compassionate or similar use shall
not be considered to constitute a First Commercial Sale. 
 1.9 “Generic Product” shall mean, with respect to a Licensed
Product, any competing product for the same Indication within the Field based on [...***...] as such Licensed Product and is approved for sale to the general public by a Competent Authority in the applicable territory as (a) a generic
product (i.e., a product that contains the same active pharmaceutical ingredient as and is bioequivalent to the originator (comparator) Licensed Product), (b) a biosimilar (i.e., a biotherapeutic product that is similar in terms of quality,
safety and efficacy to an already licensed reference biotherapeutic Licensed Product), or (c) the counterpart thereof, if not defined specifically as either a generic product or a biosimilar in the applicable territory as determined by the
Competent Authority; and with respect to each of (a), (b) or (c) which could not have been sold absent a license obtained directly or indirectly from Kite if patent or other exclusivity rights covering the Licensed Product would have been
in full force and effect. A product shall not be considered as a Generic Product if Kite or any of its Affiliates or sublicensees, directly or indirectly, offers for sale, sells or otherwise commercializes such product. 

1.10 “Indication” shall mean a generally acknowledged disease or condition, a significant manifestation of a disease or
condition, or symptoms associated with a disease or condition or a risk for a disease or condition. For the avoidance of 

  
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doubt, all clinical variants of a single disease or condition, whether classified by sub-indication, sub-type, stage, severity or patient population, shall be the same Indication for purposes of
this Agreement. 
 1.11 “In-Licenses” shall mean all agreements (as modified, amended or restated as of the Effective
Date), pursuant to which Cabaret derives any right, title or interest in or to the Licensed IP Rights. 
 1.12 “IND” shall
mean an Investigational New Drug application, or similar application to commence human clinical testing of a Licensed Product for use in the Field submitted to the FDA, or its foreign equivalent. 

1.13 “IMPD” shall mean an Investigational Medicinal Product Dossier, or similar application to commence human clinical
testing of a Licensed Product for use in the Field submitted to the EMEA, or its equivalent. 
 1.14 “Licensed IP Rights”
shall mean, collectively, the Licensed Patent Rights and the Licensed Know-How Rights. 
 1.15 “Licensed Know-How Rights”
shall mean all trade secret and other non-public know-how rights in and to all confidential and proprietary data, information, compositions and other technology (including, but not limited to, formulae, procedures, protocols, techniques and results
of experimentation and testing) in which Cabaret heretofore has an ownership or (sub)licensable interest and which may be reasonably required to exploit the subject matter claimed or described in the Licensed Patent Rights in the Field. 

1.16 “Licensed Patent Rights” shall mean (a) the patents and patent applications listed on Exhibit A, (b) all
divisions, continuations, and continuations-in-part (but only to the extent of claims in such continuations-in-part that are supported in the specification of the parent application), that claim priority to, or common priority with, the patent
applications described in clause (a) above or the patent applications that resulted in the patents described in clause (a) above, and (c) all patents that have issued or in the future issue from any of the foregoing patent
applications, including utility models, design patents and certificates of invention, together with any reissues, renewals, extensions or additions thereto. 

1.17 “Licensed Product” shall mean any product or service, procedure, or process, for use in the Field that if Manufactured,
made, used, performed, commercialized, offered for sale or sold absent the license granted hereunder would infringe a Valid Claim, or that otherwise uses or incorporates the Licensed Know-How Rights. 

1.18 “Manufacturing” or “Manufacture” shall mean any activities associated with the production, manufacture,
supply, processing, filling, packaging or labeling of a product or any components thereof, including process and formulation development, process validation, stability testing, manufacturing scale-up, development

 
and commercial manufacture and analytical development, product characterization, quality assurance and quality control development, testing, and release. 

1.19 “Major European Country” shall mean France, Germany, Italy, Spain, the Netherlands, Belgium, Sweden, Switzerland or the
United Kingdom. 
 1.20 “NDA” shall mean a New Drug Application, Biologics License Application or similar application for
marketing approval of a Licensed Product for use in the Field submitted to the FDA, or its European equivalent. 
 1.21 “Net
Sales” shall mean, with respect to any Licensed Product, the gross sales price of such Licensed Product invoiced by Kite, its Affiliates, sublicensees or their respective Affiliates to customers who are not Affiliates (or are Affiliates but
are the end users of such Licensed Product) in bona fide arms -length transactions, less, [...***...] such Licensed Product. If any sales of Licensed Products are made in transactions that are not at arm’s length, the gross amount for
such Licensed Products to be included in the calculation of Net Sales [...***...]. Net Sales shall be determined from the books and records of Kite or its Affiliates or Sublicensees, maintained in accordance with U.S. generally accepted
accounting principles, consistently applied, or in the case of Sublicensees, such similar accounting principles, consistently applied. 

1.22 “Person” shall mean an individual, corporation, partnership, limited liability company, trust, business trust,
association, joint stock company, joint venture, pool, syndicate, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 

1.23 “Phase II Clinical Trial” shall mean the second phase of a human clinical trial that is intended to initially evaluate
the effectiveness of a Licensed Product for a particular Indication or Indications in patients with the disease or Indication under study and satisfy the requirements of 21 CFR 312.21(b) in the United States, or its European equivalent. 

1.24 “Phase III Clinical Trial” shall mean the third phase of a human clinical trial in any country, the results of which
could be used to establish safety and efficacy of a Licensed Product as a basis for an NDA or would otherwise satisfy requirements of 21 CFR 312.21(c) in the United States, or its European equivalent. 

  
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 1.25 “Royalty Term” shall mean, with respect to each Licensed Product in each
country, the longer of (a) the term for which the last to expire Valid Claimremains in effect and would be infringed but for the license granted by this Agreement, by the development, Manufacture, use, offer for sale, sale or import of such
Licensed Product in such country, and (b) [...***...], after the First Commercial Sale of such Licensed Product in such country. 

1.26 “Sublicense” shall mean any right granted, sublicense conferred or agreement entered into, between Kite and a Third
Party permitting any use of the Licensed IP Rights, directly or indirectly, to make, or have made, develop, offer for sale, sell or otherwise commercialize any Licensed Product; provided, however, that a Sublicense shall exclude a bona fide
agreement for the evaluation, testing, research, development on behalf of Kite or its Affiliates, or manufacturing on behalf of Kite or its Affiliates, or a distributor or reseller agreement, all pursuant to which no Sublicense Revenues are paid to
Kite. 
 1.27 “Sublicense Revenues” shall mean, with respect to a Sublicense, the aggregate cash (or cash equivalent) or
stock or securities (or their equivalent) consideration received by Kite or its Affiliates to the extent in consideration for such Sublicense, including consideration for an option to obtain such Sublicense. Such consideration shall include without
limitation any upfront, license initiation or signing fees, license maintenance fees, milestone payments, unearned portion of any minimum annual royalty payment or equity. Sublicense Revenues shall exclude [...***...]. 

1.28 “Successful Completion” means, with respect to a specified human clinical trial, the achievement (as determined by the
sponsor of such trial) of the primary clinical endpoint identified in the protocol for such trial, the outcome of which is not to recommend any additional study, or impose any other requirement or activity that would materially and/or negatively
impact the proposed development plan. 
 1.29 “Third Party” shall mean any Person other than Dr. Eshhar, Cabaret, Kite
and their respective Affiliates. 
 1.30 “Valid Claim” shall mean a claim of an issued and unexpired patent included within
the Licensed Patent Rights, which has not been held permanently revoked, unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and
which has not been admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. 

  
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	 	2.	REPRESENTATIONS AND WARRANTIES 

 2.1 Kite Representations and Warranties. Kite (on
behalf of itself and its Affiliates) hereby represents and warrants to Cabaret as follows: 
 2.1.1 Kite (a) has the power and
authority and the legal right to enter into this Agreement and to perform its obligations hereunder, and (b) has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its
obligations hereunder. This Agreement has been duly executed and delivered on behalf of Kite, and constitutes a legal, valid, binding obligation, enforceable against Kite in accordance with its terms. 

2.1.2 All necessary consents, approvals and authorizations of all governmental authorities and other Persons required to be obtained by Kite
in connection with this Agreement have been obtained. 
 2.1.3 The execution and delivery of this Agreement and the performance of
Kite’s obligations hereunder (a) do not conflict with or violate any requirement of applicable laws or regulations, and (b) do not conflict with, or constitute a default under, any contractual obligation thereof. 

2.1.4 During the term of this Agreement, it shall carry out the Manufacturing, testing, development, promotion and marketing of the Licensed
Products and its other obligations and activities hereunder in accordance with (i) the terms of this Agreement, (ii) accepted industry practices and (iii) applicable legal requirements. 

2.2 Cabaret’s Representations and Warranties. Cabaret hereby represents and warrants to Kite as follows: 

2.2.1 Cabaret (a) has the power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder,
and (b) has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly executed and delivered by Cabaret, and constitutes a
legal, valid, binding obligation, enforceable against Cabaret in accordance with its terms. 
 2.2.2 All necessary consents, approvals and
authorizations of all persons or entities (including without limitation inventors) required to be obtained by Cabaret in connection with this Agreement have been obtained. 

2.2.3 The execution and delivery of this Agreement and the performance of Cabaret’s obligations hereunder (a) to Cabaret’s
knowledge do not conflict with or violate any requirement of applicable laws or regulations, and (b) do not conflict with, or constitute a default under, any contractual obligation thereof. 

2.2.4 Cabaret (a) solely owns or exclusively controls the Licensed IP Rights (other than as set forth herein, noting particularly
Section 3.2 and 3.4 below), and except as Cabaret has expressly informed Kite in writing prior to the date of 

 
this Agreement, has not granted to any Third Party any license or other interest in the Licensed IP Rights in the Field, and (b) has obtained from all persons or entities (including without
limitation the National Institutes of Health (“NIH”), The Regents of the University of California (“The Regents”), Yeda Research and Development Company Ltd., the Weizmann Institute of Science, BioSante Pharmaceuticals, Inc.
(“BioSante”), Cell Genesys, Inc. and their respective Affiliates and employees – all referred to herein as “Licensors”) all right, title and interest in and to (or the exclusive control of) the Licensed IP Rights. For the
avoidance of doubt, nothing in this Agreement shall confer any warranties on part of the Regents. For the further avoidance of doubt, Kite acknowledges that US 8,211,422 is currently unenforceable and may remain unenforceable during the life of that
patent and that any patent issuing on [...***...] may be expired before it issues. 
 2.2.5 Cabaret has provided Kite with complete
and correct copies of all In-Licenses, and as of the date of this Agreement there have been no modifications, amendments or restatements other than as provided to Kite prior to the Effective Date. The In-Licenses are in full force and effect in
accordance with their terms. After giving effect to this Agreement, there exist no breaches or defaults by Cabaret, and Cabaret has no knowledge of any breaches or defaults by any other party to any In-License, or other events, which would (with the
giving of notice, the passage of time or both) give rise to a breach, default or other right to terminate or modify any In-License. Cabaret has not transferred or granted, and Cabaret shall not transfer or grant, to any Third Party any license or
other interest in the In-Licenses. 
 2.3 Dr. Eshhar’s Representations and Warranties. Dr. Eshhar hereby represents
and warrants to Kite as follows: 
 2.3.1 Dr. Eshhar has the capacity and the legal right to enter into this Agreement and to perform
its obligations hereunder. This Agreement has been duly executed and delivered by Dr. Eshhar, and constitutes a legal, valid, binding obligation, enforceable against Dr. Eshhar in accordance with its terms. 

2.3.2 All necessary consents, approvals and authorizations of all persons or entities (including without limitation inventors) required to be
obtained by Dr. Eshhar in connection with this Agreement have been obtained. 
 2.3.3 The execution and delivery of this Agreement and
the performance of Dr. Eshhar’s obligations hereunder (a) to Dr. Eshhar’s knowledge do not conflict with or violate any requirement of applicable laws or regulations, and (b) do not conflict with, or constitute a
default under, any contractual obligation thereof 
 2.3.4 Dr. Eshhar has duly and validly assigned and transferred to Cabaret all of
his rights, title and interest in and to the Licensed IP Rights and In Licenses and Cabaret solely owns or exclusively controls the Licensed IP Rights (other than as set forth herein, noting particularly Section 3.2 and 3.4 below). 

  
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	 	3.	LICENSE GRANT 

 3.1 Licensed IP Rights. Subject to Section 3.2 below, Cabaret
hereby grants to Kite an exclusive (other than as set forth in Section 3.2 and 3.4 below) worldwide royalty bearing license (with the right to grant sublicenses through multiple tiers as set forth hereunder) under the Licensed IP Rights to
research, have researched, develop , have developed, make, have made, use, offer for sale, sell, import, export, commercialize and otherwise exploit Licensed Products for use in the Field. Subject to the conditions set forth in Section 3.9 the
foregoing license includes the right to grant sublicenses under the Licensed IP Rights, provided that, with respect to sublicenses granted under, Kite shall (a) grant such sublicenses only for consideration and at arm’s-length
transactions, and (b) grant such sublicenses only pursuant to written agreements that contain such terms and conditions as may be required for Kite to comply with this Agreement. 

3.2 License Restrictions. The license granted in Section 3.1 above is and shall remain at all times subject to the following restrictions
(and Kite shall ensure that any of its Sublicensee’s shall be subject such restrictions): (i) Dr. Eshhar, the Regents and the Government of the United States (the “Government”) reserve the right to use the Patents Rights and
associated technology licensed under the Inter-Institutional Agreement last executed on June 22, 2012 (“UCSF IIA”), between Dr. Eshhar, BioSante and The Regents, and disclosed to Kite under Section 2.2.5 above, and the
Inter-institutional Agreement dated 19.11.2013 (“NIH Agreement”), for educational and research purposes; (ii) nothing in this Agreement shall confer by estoppel, implication or otherwise, any license or rights under any patents of the
Regents other than those patents rights detailed in the USCF IIA, regardless of whether such patents are dominant or subordinate to the Patents Rights defined in the UCSF IIA; (iii) Kite shall not use the name or trademark or logo of the
University of California or any campus thereof; in each case to the extent required by the UCSF HA; (iv) the license is subject to the provisions of 37 C.F.R. Part 401 and the rights retained by the Government under the NIH Agreement; and
(v) until the last to expire of U.S. Patent 8,211,422 issued July 3, 2012 from Patent Application 08/547,263 filed October 24, 1995 entitled “Chimeric Receptor Genes and Cells Transformed Therewith” and US Patent Application
13/281,560 filed October 26, 2011 entitled “Chimeric Receptor Genes and Cells Transformed Therewith” (hereinafter referred to as the “NIH Patent Estate”) any products embodying the Licensed Patent Rights, or produced through
use of the Licensed Patent Rights, shall be manufactured substantially in the United States unless a waiver is granted by the NIH; provided that NIH may waive this requirement upon Kite’s written request which shall not be unreasonably denied;
(vi) until the last to expire of the NIH Patent Estate, the Government shall have the irrevocable, royalty-free, paid-up right to practice and have practiced the NIH Patent Estate and Eshhar patents 5,906,936 and 7,741,465, throughout the world
by or on behalf of the Government and on behalf of any foreign government or international organization pursuant to any existing or future treaty or agreement to which the Government is a signatory; (vii) until the last to expire of the NIH
Patent Estate, the NIH reserves the right to require Cabaret, or its licensees, to grant sublicenses to the patent rights to responsible applicants, on terms that are reasonable under the circumstances when necessary to fulfill health or safety
needs or when necessary to meet 

 
requirements for public use specified by Federal regulations; and (viii) until the last to expire of the NTH Patent Estate, in addition to the reserved right of Section 3.2(vi), the NIH
reserves the right to require Cabaret to grant research licenses to the patent rights on reasonable terms and conditions, for the purpose of encouraging basic research, whether conducted at an academic or corporate facility. 

3.3 Notice to NIH. Until the last to expire of any patent of the NIH Patent Estate, Kite shall supply to the following mailing address
with inert samples of the licensed products or licensed process as covered by the NTH Patent Estate (as defined above), or their packaging for educational and display purposes only. 

Chief, Monitoring & Enforcement Branch 

Office of Technology Transfer 

National Institutes of Health 

6011 Executive Boulevard, Suite 325 

Rockville, Maryland 20852-3804 U.S.A 

E-mail:LicenseNotices_Reportsmail.nih.gov 

3.4 No implied licenses are set forth herein. Except for those licenses expressly granted hereunder in the Field, Cabaret does not
grant to Kite any other licenses, either within or without the Field. Kite specifically understands and agrees that except as explicitly set forth herein, Cabaret reserves all rights under the Licensed IP Rights to make, have made, use, sell, offer
for sale, import, export, distribute and otherwise exploit products incorporating the Licensed IP Rights outside the Field. Without derogating from the generality in Section 3.2 above, Dr. Eshhar and Cabaret reserve the right to use all
Licensed IP Rights licensed hereunder for educational and noncommercial research purposes in any and all fields. 
 3.5 In-Licenses.
Cabaret shall timely pay in full all amounts required to be paid by Cabaret, and timely perform in full all obligations required to be performed by Cabaret, under all In-Licenses. Cabaret promptly shall provide Kite with copies of all notices and
other deliveries received under the In-Licenses. Without the prior express written consent of Kite, Cabaret shall not (and shall take no action or make no omission to) modify or waive any provision of any In-License that could impair the value of
the licenses to Kite herein, or to terminate or have terminated any In-License. If any In-License is terminated for any reason, Cabaret shall make all reasonable efforts to ensure that the Licensor thereunder shall grant a direct license under the
Licensed IP Rights thereunder to Kite containing terms and conditions no less favorable to Kite than the terms (including the payment terms) of such In-License, and Kite shall have the right to offset all payments thereunder against any amounts
owing to Cabaret hereunder. 
 3.6 Availability of the Licensed IP Rights. Cabaret shall provide Kite with a copy of all information
available to Cabaret relating to the Licensed IP Rights or Licensed Products. 

 3.7 Technical Assistance. Cabaret and Dr. Eshhar shall provide such technical
assistance to Kite as Kite reasonably requests regarding the Licensed IP Rights. Kite shall pay to Cabaret and Dr. Eshhar their documented reasonable out-of-pocket costs of providing such technical assistance. 

3.8 Right of First Offer. In the event that Cabaret proposes to enter into an agreement with any Third Party for the grant to any Third
Party of any license, immunity, right or interest of any type whatsoever in or under the Licensed Patent Rights outside the Field, Cabaret shall as soon as practicable notify Kite of such intention (the “Company Notice”), and Kite shall
have the right, to be exercised by notice to Cabaret to express its interest to negotiate with Cabaret regarding receipt of such license within a period of [...***...] after the date of the Company Notice (such period, the “Negotiation
Period”). During the Negotiation Period, Kite will notify Cabaret within [...***...] of its interest to negotiate with Cabaret, and in such event Cabaret shall negotiate in good faith with Kite regarding receipt of such license. To the
extent that Kite notified Cabaret of its interest to negotiate with Cabaret, as set forth above, prior to the expiration of the Negotiation Period, Cabaret shall not enter into any definitive binding agreement of any kind with a Third Party in
relation to such license (other than relating to access to information). 
 3.9 Sublicenses. Kite shall be entitled to grant
Sublicenses, provided, however, that all Sublicenses shall be subject to the following conditions: 
 3.9.1 Kite shall execute a written
sublicense with each Sublicensee, which mirrors the restrictive terms hereof and shall provide Cabaret with a copy of each such written sublicense within [...***...] of execution (and all amendments and modifications thereto within
[...***...] of execution). Kite shall report pursuant to the terms of this Agreement Net Sales of the Licensed Product by all Sublicensees and 

3.9.2 Kite shall use reasonable efforts to add to the Sublicense agreement a clause stating that, in case of a default of payment due by Kite
of royalties owing on Net Sales by a Sublicensee, which is not cured within [...***...] after notice in accordance with this Agreement, then upon the written request of Cabaret, such Sublicensee will make future royalty payments and furnish
the reports and documents that are required to be paid or furnished by Kite pursuant to this Agreement with respect to Net Sales by such Sublicensee directly to Cabaret. 

3.9.3 Kite shall, and by this Agreement herewith does, agree to cause its Sublicensees to assume and agree to perform all of the relevant
covenants and obligations of Kite to Cabaret contained in this Agreement as fully and to the same extent as if its Sublicensees were Kite hereunder and guarantees Cabaret that its Sublicensees shall abide by each and every applicable provision of
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	 	4.	FINANCIAL CONSIDERATIONS 

 4.1 License Fees. On or before the Effective Date, Kite
shall pay to Cabaret a one-time upfront license fee of twenty-five thousand United States dollars (US$25,000). On or before each anniversary of the Effective Date until First Commercial Sale of the first Licensed Product, Kite shall pay to Cabaret
an annual license fee of thirty thousand dollars (US$30,000). 
 4.2 Sponsored Research Agreement. Kite, The Medical Research,
Infrastructure, and Health Services Fund of the Tel Aviv Medical Center shall execute a mutually acceptable sponsored research agreement, pursuant to which such institution shall conduct research, according to a mutually agreed research workplan, to
be funded by Kite according to a mutually agreed budget of at least US$60,000 per year, according to a mutually agreed funding schedule for a period of not less than three (3) years on the terms and conditions thereof. 

4.3 Royalties. 
 4.3.1
Royalty Rate. During the applicable Royalty Term for a Licensed Product, subject to the terms and conditions of this Agreement, Kite shall pay to Cabaret royalties, with respect to each Licensed Product, equal to [...***...] percent
([...***...]%) of Net Sales of such Licensed Product by Kite, its sublicensees and their respective Affiliates; provided, however, if the Licensed Product is made, used, or sold in such country where such Licensed Product would not infringe a
Valid Claim, then the applicable royalty rate for such Licensed Product in such country shall be reduced to [...***...] percent ([...***...]%) of Net Sales of such Licensed Product. Only one royalty shall be owing for a Licensed Product
regardless of how many Valid Claims cover such Licensed Product. 
 4.3.2 Third Party Royalties. If Kite, its Affiliate or
Sublicensee is required to pay royalties in consideration for a license to such Third Party IP to any Third Party in order to exercise its rights hereunder to make, have made, use, sell, offer to sale or import any Licensed Product, then Kite shall
have the right to credit [...***...] percent ([...***...]%) of such Third Party IP royalty payments against the royalties owing to Cabaret under Section 4.3.1 with respect to sales of such Licensed Product in such country; provided,
however, that Kite shall not reduce the amount of the royalties paid to Cabaret under Section 4.3.1 by reason of this Section 4.3.2, with respect to sales of such Licensed Product in such country, to less than [...***...] percent
([...***...]%) of Net Sales of such Licensed Product in such country. 
 4.3.3 Generic Product. On a country-by-country and
Licensed Product-by-Licensed Product basis, if at any time during the applicable Royalty Term, one or more Generic Products are commercially launched by a Third Party (other than a Third Party sublicensee) in a country, then the applicable royalty
rate for such Licensed Product in such country shall be reduced to [...***...] percent ([...***...]%) of Net Sales of such Licensed Product beginning from the launch of such Generic Product and continuing so long as such Generic Product
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the contrary set forth in this Agreement, to the extent that Kite has entered into a Sublicense Agreement pursuant to which Kite is not entitled to receive royalties in a country in which a
Generic Product has been commercially launched, Kite shall have no obligation to pay, and Cabaret shall have no right to receive, royalties with respect to sales of Licensed Product in such country. 

4.3.4 Combination Products. If a Licensed Product either (a) is sold together with another active ingredient product or device
product which is not covered by a Valid Claim for a single price, or (b) consists of components that are covered by a Valid Claim and an active ingredient or device component that is not covered by a Valid Claim, then (except in the case where
(i) the other active ingredient or device product or component which is not covered by Valid Claim also is not covered by any other valid patent claim, and (ii) a sublicensee pays to Kite a royalty which is not subject to an adjustment for
such other active ingredient or device product or component) for purposes of the royalty payments under Section 4.3 for Net Sales of such Licensed Products, such Net Sales, prior to the royalty calculation set forth in Section 4.3, first
shall be multiplied by the fraction A/(A+B), where A is [...***...], and B is [...***...]. If the parties cannot reach an agreement as to the Value of each of the products or components then a Third Party arbitrator who is an industry
expert shall be appointed to provide such determination which shall be binding on the parties. The parties shall equally share all costs associated which such determination. Until such determination is made Kite shall make payment under
Section 4.3 to Cabaret in accordance with its own determination and if following the Third Party arbitrator’s decision an increase in payments is required Kite shall make such adjustment payments retroactively. 

4.4 Milestones. Within [...***...] following the first achievement of each of the following milestones with respect to each
Licensed Product, Kite shall provide Cabaret with written notice thereof, and shall pay to Cabaret the corresponding one-time non-refundable milestone payment (all such amounts non-creditable against royalties payable under Section 4.3): 

 

			
	Fee	  	 Event

		
	US$100,000	  	Acceptance of the first IND for such Licensed Product
		
	[...***...]	  	[...***...]
		
	[...***...]	  	[...***...]
		
	[...***...]	  	[...***...]
		
	[...***...]	  	[...***...]

  
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	[...***...]	  	Receipt of the required marketing approval from the applicable governing health authority to market such Licensed Product in the first Major European Country

 For purposes of this Section 4.4, a Licensed Product shall be a different Licensed Product (and thus bearing an
additional set of milestone payments) than another Licensed Product if such Licensed Product (a) either is for a different Indication or contains a different CAR, and (b) requires a separate regulatory approval by a Competent Authority.
For purpose of clarity, a different Licensed Product could be a different product for the same Indication or a similar product (same CAR) for a different Indication. 

Notwithstanding the foregoing, the foregoing milestone payments shall apply with respect to the first [...***...] Licensed Products. Following the first
[...***...] Licensed Products for each additional Licensed Products to achieve each milestone event, Kite shall pay Cabaret reduced milestone payments equal to [...***...] percent ([...***...]%) of the milestone payments set forth
above. 
 4.5 Sublicense Fees. Subject to the terms and conditions of this Agreement, with respect to each Sublicense with respect to
a Licensed Product, Kite shall pay to Cabaret sublicense fees equal to the applicable percentage set forth below of the Sublicense Revenue therefrom (based on the effective date of such Sublicense) (“Sublicense Fees”): 

 

			
	Percentage	  	 Effective Date of Such Sublicense

		
	[...***...]	  	[...***...]
		
	[...***...]	  	[...***...]
		
	[...***...]	  	[...***...]
		
	[...***...]	  	[...***...]

 Notwithstanding the foregoing, with respect to any Sublicense Fees paid to Cabaret on account of Sublicense Revenues received
by Kite from a Sublicensee in connection with the achievement of any technical, development, regulatory through commercial launch milestone event for a Licensed Product, Kite shall deduct from such Sublicense Fees the milestone payments made by Kite
to Cabaret pursuant to Section 4.5 above with respect to the same Licensed Product. 

  
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 4.6 Reimbursement of Past Patent Costs. Upon execution of this Agreement Kite shall
reimburse Dr. Eshhar an amount equal to US$350,000 representing the documented out-of-pocket costs incurred by Dr. Eshhar, or for which Dr. Eshhar otherwise is legally obligated, to prepare, file, prosecute and maintain the Licensed
Patent Rights prior to the Effective Date. 
  

	 	5.	ROYALTY REPORTS AND ACCOUNTING 

 5.1 Royalty Reports. Within [...***...]
after the end of each calendar quarter during the term of this Agreement following first to occur of the First Commercial Sale of a Licensed Product or the receipt by Kite or its Affiliates of Sublicense Revenues, Kite shall furnish to Cabaret a
quarterly written report showing in reasonably specific detail (a) the calculation of all royalties owing under Sections 4.3 and 4.5; (b) the withholding taxes, if any, required by law to be deducted with respect to such sales; and
(c) the exchange rates, if any, used in determining the amount of United States dollars. With respect to sales of Licensed Products invoiced in United States dollars, the gross sales, Net Sales and royalties payable shall be expressed in United
States dollars. With respect to (i) Net Sales invoiced in a currency other than United States dollars and (ii) cash consideration paid in a currency other than United States dollars by Kite’s sublicensees hereunder, all such amounts
shall be expressed both in the currency in which the distribution is invoiced and in the United States dollar equivalent. The United States dollar equivalent shall be calculated using the average of the exchange rate (local currency per US$1)
published in The Wall Street Journal, Western Edition, under the heading “Currency Trading” on the last business day of each month during the applicable calendar quarter. 

5.2 Audits. 
 5.2.1
During the Term of this Agreement and for [...***...] thereafter, upon the written request of Cabaret and not more than once in each calendar year, Kite shall permit an independent certified public accounting firm of nationally recognized
standing selected by Cabaret and reasonably acceptable to Kite, at Cabaret’s expense, to have access during normal business hours to such of the financial records of Kite and its Affiliates as may be reasonably necessary to verify the accuracy
of the payment reports hereunder for the [...***...] immediately prior to the date of such request (other than records for which Cabaret has already conducted an audit under this Section 5.2. 

5.2.2 If such accounting firm concludes that additional amounts were owed during the audited period, Kite shall pay such additional amounts
within [...***...] after the date Cabaret delivers to Kite such accounting firm’s written report so concluding. The fees charged by such accounting firm shall be paid by Cabaret; provided, however, if the audit discloses that the
royalties payable by Kite for such period are more than [...***...] percent ([...***...]%) of the royalties actually paid for such period, then Kite shall pay the reasonable fees and expenses charged by such accounting firm. 

  
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 5.2.3 Cabaret shall cause its accounting firm to retain all financial information subject to
review under this Section 5.2 in strict confidence. The accounting firm shall disclose to Cabaret only whether the reports are correct or not and the amount of any discrepancy. No other information shall be shared. Cabaret shall treat all such
financial information as Kite’s Confidential Information. 
 5.3 Records. Kite shall, and shall cause its Affiliates to, keep
and maintain for [...***...] after payment of payment pursuant to Sections 4.3 and 4.5 complete and accurate books and records in sufficient detail so that all payments payable hereunder can be properly verified. 

 

	 	6.	PAYMENTS 

 6.1 Payment Terms. Royalties shown to have accrued by each royalty
report provided for under Section 5.1 shall be due on the date such royalty report is due. Payment of royalties in whole or in part may be made in advance of such due date. All payments made by pursuant to this Agreement shall be made in
immediately available funds by wire transfer to such bank and account of Cabaret or Dr. Eshhar (as applicable) as may be designated in writing from time to time by Cabaret. Interest shall be due on all payments not paid when due. Interest shall
be payable at a rate per annum equal to the prime rate of interest, as published in The Wall Street Journal, plus [...***...] percent ([...***...]%) or, if lower, the maximum amount required by law. 

6.2 Withholding Taxes. Kite shall be entitled to deduct the amount of any withholding taxes with respect to such amounts, other than
United States taxes, payable by Kite, its Affiliates or their respective sublicensees, or any taxes required to be withheld by Kite, its Affiliates or their respective sublicensees, to the extent Kite, its Affiliates or their respective sublicensees
pay to the appropriate governmental authority on behalf of Cabaret such taxes, levies or charges. Kite shall use reasonable efforts to minimize any such taxes, levies or charges required to be withheld on behalf of Cabaret by Kite, its Affiliates or
their respective sublicensees. Kite promptly shall deliver to Cabaret proof of payment of all such taxes, levies and other charges, together with copies of all communications from or with such governmental authority with respect thereto. To the
extent that the Parties determine that the tax laws of any jurisdiction other than the United States may impose an obligation on Kite to withhold from any payment made by Kite hereunder an amount for taxes attributable to the sale or use by Kite of
the Licensed Products in such jurisdiction, then the Parties shall reasonably cooperate in good faith and shall take such reasonable and lawful actions, as may be necessary or desirable to minimize the amount of any such withholding taxes in such
jurisdiction. 
  

	 	7.	RESEARCH, DEVELOPMENT AND MARKETING OBLIGATIONS 

 7.1 Research and Development
Efforts. Kite shall use its Commercially Reasonable Efforts to conduct such research, development and preclinical and human clinical trials as are necessary to obtain regulatory approval to manufacture and market Licensed Products, and shall use
good faith efforts to obtain regulatory approval to market, and following approval to commence marketing and market each 

  
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such Licensed Product in such countries as Kite determines are commercially feasible. Kite, shall be responsible, at its sole cost and expense, for the development of Licensed Products in the
Field. Kite, shall be responsible for: clinical trials with respect to the Licensed Products and filing required regulatory submissions and dealings with Regulatory Authorities with respect to Licensed Products. Kite shall also be responsible for
reporting to the appropriate regulatory authorities adverse events related to Licensed Products as required by applicable law. Kite, shall also be responsible for communications with the FDA regarding such filings and Licensed Products; provided
that Cabaret shall be consulted regarding any discussions or meetings with the FDA regarding Licensed Products, and following each meeting between the FDA and Kite regarding a Licensed Product, Kite shall provide Cabaret with a written summary of
such meeting. Kite undertakes to use its Commercially Reasonable Efforts to ensure that the Licensed Products marketed by it will, and it shall, in carrying out its obligations hereunder, comply with all legal requirements. Kite shall notify Cabaret
within [...***...] after Kite becomes aware of the First Commercial Sale of a Licensed Product in each country. Kite shall have the right to perform all such obligations on its own behalf, or through an Affiliate, Sublicensee or contractor
(which shall constitute performance by Kite hereunder). 
 7.2 Records. Kite shall maintain records, in sufficient detail and in good
scientific manner, which shall reflect all work done and results achieved in the performance of its research and development regarding the Licensed Products. 

7.3 Reports. Within [...***...] following the end of each June and December during the term of this Agreement, Kite shall prepare
and deliver to Cabaret a written summary report which shall describe (a) the research performed to date employing the Licensed IP Rights, (b) the progress of the development, and testing of Licensed Products in clinical trials, and
(c) the status of obtaining regulatory approvals to market and its commercialization activities for Licensed Products. Kite promptly shall notify Cabaret upon the initiation of any formal investigation, review or inquiry of Kite by regulatory
authorities or governmental authorities concerning (i) non-clinical or clinical research relating to a Licensed Product; or (ii) the distribution, promotion or sale of a Licensed Product. 

 

	 	8.	CONFIDENTIALITY 

 8.1 Confidential Information. During the term of this Agreement,
and for a period of [...***...] following the expiration or earlier termination hereof, each party shall maintain in confidence all information of the other party that is disclosed by the other party and identified as, or acknowledged to be,
confidential at the time of disclosure (the “Confidential Information”), and shall not use, disclose or grant the use of the Confidential Information except on a need-to-know basis to those directors, officers, affiliates,
employees, permitted licensees, permitted assignees and agents, consultants, clinical investigators or contractors, to the extent such disclosure is reasonably necessary in connection with performing its obligations or exercising its rights under
this Agreement. To the extent that disclosure is authorized by this Agreement, prior to disclosure, each party hereto shall obtain agreement of any such Person to hold in 

  
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confidence and not make use of the Confidential Information for any purpose other than those permitted by this Agreement. Each party shall notify the other promptly upon discovery of any
unauthorized use or disclosure of the other party’s Confidential Information. 
 8.2 Terms of this Agreement. Cabaret and
Dr. Eshhar and Kite shall not disclose any terms or conditions of this Agreement, including without limitation, the existence and details of this Agreement and any other agreements disclosed related to this Agreement, the persons and entities
involved in the deal contemplated under this agreement and the person and entities signing this Agreement, to any Third Party without the prior consent of the other party; provided, however, that without such consent, (a) Cabaret may disclose
this Agreement to its Licensors (subject to the same confidentiality obligations as set forth in this Section 8.2), and (b) Kite shall have the right to make press releases and other public disclosures relating to this Agreement provided
that Kite shall obtain Dr. Eshhar’s pre-approval for use of Dr. Eshhar’s name, and shall not disclose the financial terms of this Agreement. 

8.3 Permitted Disclosures. The confidentiality obligations contained in this Section 8 shall not apply to the extent that
(a) any receiving party (the “Recipient”) is required (i) to disclose information by law, regulation or order of a governmental agency or a court of competent jurisdiction, or (ii) to disclose information to any
governmental agency for purposes of obtaining approval to test or market a product, provided in either case that the Recipient shall provide written notice thereof to the other party and sufficient opportunity to object to any such disclosure or to
request confidential treatment thereof; or (b) the Recipient can demonstrate that (i) the disclosed information was public knowledge at the time of such disclosure to the Recipient, or thereafter became public knowledge, other than as a
result of actions of the Recipient in violation hereof; (ii) the disclosed information was rightfully known by the Recipient (as shown by its written records) prior to the date of disclosure to the Recipient by the other party hereunder;
(iii) the disclosed information was disclosed to the Recipient on an unrestricted basis from a source unrelated to any party to this Agreement and not under a duty of confidentiality to the other party; or (iv) the disclosed information
was independently developed by the Recipient without use of the Confidential Information disclosed by the other party. Notwithstanding any other provision of this Agreement, Kite may disclose information to any Person with whom Kite has, or is
proposing to enter into, a business relationship (including without limitation an investment in Kite, license, collaboration or other commercial agreement), as long as such Person has entered into a confidentiality agreement with Kite. 

8.4 Publications. Notwithstanding anything herein to the contrary, Dr. Eshhar shall have the right to publish articles relating to
the Licensed IP in scientific publications or posters or to give lectures or seminars to third parties relating to the Licensed IP, provided that, to the extent that the information to be disclosed is not in the public domain, publication thereof as
aforesaid shall not take place unless the text thereof has been submitted to Kite at least [...***...] prior to intended date of submission of the article for publication, so as to give Kite a reasonable opportunity (a) to check for
Confidential Information of Kite, which upon request by Kite, Dr. Eshhar shall remove 

  
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prior to submission for publication or presentation, and (b) to check patentability of the information and to request the filing of a patent application relating to the subject matter of the
publication or presentation. 
  

	 	9.	PATENTS 

 9.1 Patent Prosecution and Maintenance. 

9.1.1 Kite shall, at its sole cost, be responsible for all the preparation, filing, prosecution and maintenance after the Effective Date of
the Licensed Patent Rights listed under the heading Eshhar patents listed on Exhibit A or related thereto (the “Eshhar Patent Rights”). Kite shall give Cabaret an opportunity to review and comment on the text of each patent application
subject to this Section 9.1.1 before filing, and shall supply Cabaret with a copy of such patent application as filed, together with notice of its filing date and serial number. Cabaret shall, at Kite’s expense, cooperate with Kite,
execute all lawful papers and instruments and make all rightful oaths and declarations as may be necessary in the preparation, prosecution and maintenance of all patents and other filings referred to in this Section 9.1.1. If Kite, in its sole
discretion, decides to abandon the preparation, filing, prosecution or maintenance of any patent or patent application subject to this Section 9.1.1, then Kite shall notify Cabaret in writing thereof and following the date of such notice
(a) Cabaret shall be responsible for and shall control, at its sole cost, the preparation, filing, prosecution and maintenance of such patents and patent applications, and (b) Kite thereafter shall have no license under this Agreement to
such patent or patent application. 
 9.1.2 To the extent Cabaret is permitted to grant such rights to Kite, Kite shall have all rights of
Cabaret regarding the preparation, filing, prosecution and maintenance after the Effective Date of all patents and patent applications within the Licensed Patent Rights other than the Eshhar Patent Rights. 

9.2 Notification of Infringement. Each party shall notify the other party of any substantial infringement known to such party of any
Licensed Patent Rights and shall provide the other party with the available evidence, if any, of such infringement. 
 9.3 Enforcement of
Patent Rights. Kite, at its sole expense, shall have the right to determine the appropriate course of action to enforce Licensed Patent Rights or otherwise abate the infringement thereof, to take (or refrain from taking) appropriate action to
enforce Licensed Patent Rights, to defend any declaratory judgments seeking to invalidate or hold the Licensed Patent Rights unenforceable, to control any litigation or other enforcement action and to enter into, or permit, the settlement of any
such litigation, declaratory judgments or other enforcement action with respect to Licensed Patent Rights, and shall consider, in good faith, the interests of Cabaret in so doing. Kite shall bring any such enforcement action in Kite’s own name;
provided, however, if necessary for standing purposes only, (a) Kite shall have, subject to Cabaret prior consent which shall not be unreasonably withheld, delayed for more than [...***...] after written request by Kite, or conditioned,
the right to bring such action in the name of 

  
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Cabaret (all costs to be borne by Kite) if Cabaret is the party with legal standing, and (b) Cabaret shall make all reasonable efforts to enable Kite to bring such enforcement action in the
name of any Licensor that is the party with legal standing. If Kite does not, within [...***...] of receipt of notice from Cabaret, abate the infringement or file suit to enforce the Licensed Patent Rights against at least one infringing
party, Cabaret shall have the right to take whatever action it deems appropriate to enforce the Licensed Patent Rights; provided, however, that, within [...***...] after receipt of notice of Cabaret’s intent to file such suit, Kite shall
have the right to jointly prosecute such suit and to fund up to [...***...] the costs of such suit. The party controlling any such enforcement action shall not settle the action or otherwise consent to an adverse judgment in such action that
diminishes the rights or interests of the non-controlling party without the prior written consent of the other party. All monies recovered upon the final judgment or settlement of any such suit to enforce the Licensed Patent Rights shall be used
(a) first, to reimburse the costs and expenses (including reasonable attorneys’ fees and costs) of Kite and Cabaret; and (b) second, (i) if Cabaret is the controlling party in such action, any remaining recovery shall be divided
equally between Kite and Cabaret, or (ii) if the controlling party is Kite, any remaining recovery shall be divided between Kite and Cabaret in shares that reflect the damages incurred by each party to reflect the applicable royalty to Cabaret
hereunder for lost sales, and the lost profits (net of such royalties) to Kite for lost sales , provided that in any case the amount paid to Cabaret shall not be less than the applicable royalty rate if such recovery was received as Net Sales. 

9.4 Cooperation. In any suit to enforce and/or defend the License Patent Rights pursuant to this Section 9, the party not in
control of such suit shall, at the request and expense of the controlling party, reasonably cooperate and, to the extent possible, have its employees testify when requested and make available relevant records, papers, information, samples,
specimens, and the like. 
  

	 	10.	TERMINATION 

 10.1 Expiration. Subject to this Section 10 below, this
Agreement shall expire, on a Licensed Product-by-Licensed Product and country-by-country basis, on the date on which Kite, its Affiliates and sublicensees permanently cease to research, develop, sell and commercialize the Licensed Product in such
country (the “Term”). 
 10.2 Termination for Convenience. Kite may terminate this Agreement, in its sole
discretion, upon thirty (30) days prior written notice to Cabaret and Dr. Eshhar. 
 10.3 Termination for Cause. Except as
otherwise provided in Section 12, each party may terminate this Agreement upon or after the breach of any material provision of this Agreement by the other party if the other party has not cured such breach within sixty (60) days (or such
longer period as such party may reasonably agree if said breach is incapable of cure within such sixty (60) days) after receipt of express written notice thereof by such party. 

  
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 10.4 Insolvency. This Agreement may be terminated by Cabaret in the event of an Insolvency
Event occurring in relation to Kite, by giving a notice of termination to Kite. The termination shall take effect upon delivery of the notice of termination by Cabaret. “Insolvency Event” shall mean that, with respect to Kite, any of the
following occurs: (i) Kite makes any arrangement or composition with or any assignment for the benefit of its creditors generally; (ii) a petition is presented that is not dismissed within 120 days or a court order is made or a resolution
is passed for the winding up of Kite or for the making of an administration order or for the appointment of a provisional liquidator or a judicial factor or similar officer in relation to Kite; (iii) an encumbrancer takes possession of or a
trustee, receiver, liquidator, provisional liquidator, administrator, manager ad interim, administrative receiver, judicial factor or similar officer is appointed, in each case for all or substantially all of Kite’s intellectual property rights
and such appointment materially prejudices Cabaret’s rights under this Agreement; or (iv) Kite does, or suffers to be done in relation to it, any analogous action or proceeding in any jurisdiction anywhere in the world (including without
limitation any actions or proceedings relating to bankruptcy law of any nature in the United States of America). 
 10.5 Effect of
Expiration or Termination. Expiration or termination of this Agreement shall not relieve the parties of any obligation accruing prior to such expiration or termination, and the provisions of Sections 5.2, 8, 10.5, 10.6, 11 and 13 shall survive
the expiration or termination of this Agreement. Upon any termination of this Agreement, all licenses granted herein shall terminate, nevertheless, Cabaret shall grant a direct license to any Sublicensee of Kite hereunder having the same scope as
such sublicense and on terms and conditions no less favorable to such Sublicensee than the terms and conditions of this Agreement, provided that such Sublicensee is not in default of any applicable obligations under this Agreement and agrees in
writing to be bound by the terms and conditions of such direct license. 
 10.6 Termination Fee. In the event that Kite terminates
this Agreement termination for convenience under Section 10.2 prior to the third (3rd) anniversary of the Effective Date, Kite shall pay to Cabaret a termination fee in an amount equal
to US$500,000 within thirty (30) days of such termination. 
  

	 	11.	INDEMNIFICATION 

 11.1 Indemnification. Kite shall defend, indemnify and hold
Dr. Eshhar, Cabaret, its Affiliates, and each of their respective directors, officers, employees, and agents, and if applicable Yeda, NIH, BioSante and the Regents and sponsors of the research conducted under the UCSF IIA, harmless from all
losses, liabilities, damages and expenses (including attorneys’ fees and costs) incurred as a result of any claim, demand, action or proceeding to the extent resulting from (a) any breach of this Agreement by Kite or its Sublicensees,
(b) the gross negligence or willful misconduct of Kite or its Sublicensees in the performance of its obligations under this Agreement, or (c) the Manufacture, development, use or sale of Licensed Products by Kite or its Sublicensees under
this Agreement, except in each case to the extent arising from the 

 
gross negligence or willful misconduct of Cabaret or Dr. Eshhar or the breach of this Agreement by Dr. Eshhar or Cabaret. 

11.2 Procedure. Dr. Eshhar or Cabaret as applicable, promptly shall notify Kite of any liability or action in respect of which
Dr. Eshhar or Cabaret intends to claim such indemnification, and Kite shall assume the defense thereof with counsel selected by Kite. The indemnity agreement in this Section 11 shall not apply to amounts paid in settlement of any loss,
claim, damage, liability or action if such settlement is effected without the consent of Kite, which consent shall not be withheld unreasonably. The failure to deliver notice to Kite within a reasonable time after the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve Kite of any liability to Dr. Eshhar and Cabaret under this Section 11, but the omission so to deliver notice to Kite will not relieve it of any liability that it
may have to Dr. Eshhar or Cabaret otherwise than under this Section 11. Dr. Eshhar and Cabaret under this Section 11, its employees and agents, shall cooperate fully with Kite, at Kite’s expense, and its legal
representatives in the investigation and defense of any action, claim or liability covered by this indemnification. 
 11.3
Insurance. Kite shall maintain product liability insurance with respect to the research, development, manufacture and sales of Licensed Products by Kite in such amount as Kite customarily maintains with respect to the research, development,
manufacture and sales of its similar products. Kite shall maintain such insurance for so long as it continues to research, develop, manufacture or sell any Licensed Products, and thereafter for so long as Kite customarily maintains insurance
covering the research, development, manufacture or sale of its similar products. 
  

	 	12.	FORCE MAJEURE 

 Neither party shall be held liable or responsible to the other party nor
be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for so long as, such failure or delay is caused by or results from causes beyond the
reasonable control of the affected party including but not limited to fire, floods, embargoes, war, acts of war (whether war be declared or not), acts of terrorism, insurrections, riots, civil commotions, strikes, lockouts or other labor
disturbances, acts of God or acts, omissions or delays in acting by any governmental authority. 
  

	 	13.	MISCELLANEOUS 

 13.1 Notices. Any consent, notice or report required or permitted
to be given or made under this Agreement by one of the parties hereto to the other party shall be in writing, delivered by any lawful means to such other party at its address indicated below, or to such other address as the addressee shall have last
furnished in writing to the addressor and (except as otherwise provided in this Agreement) shall be effective upon receipt by the addressee. 

			
	If to Dr. Eshhar:	  	Dr. Zelig Eshhar
		  	Department of Immunology
		  	Weizmann Institute
		  	Rehovot POB. 26
		  	Israel 76100
		
	If to Cabaret:	  	Cabaret Biotech Ltd,
		  	14 Marva St., Rehovot 7630950, Israel
		
	with a copy to:	  	Browdy and Neimark, PLLC
		  	1625 K Street, NW
		  	Suite 1100
		  	Washington, DC 20006
		  	Attention: Roger L. Browdy
		
	If to Kite:	  	Kite Pharma, Inc.
		  	10924 Le Conte Avenue
		  	Los Angeles, California 90024, USA
		  	Attention: President
		
	with a copy to:	  	Morrison & Foerster LLP
		  	12531 High Bluff Drive, Suite 100
		  	San Diego, California 92130, USA
		  	Attention: Mark R. Wicker

 13.2 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of
the State of New York, without regard to the conflicts of law principles thereof. 
 13.3 Arbitration. Any dispute, controversy or
claim initiated by either party arising out of or relating to this Agreement, its negotiations, execution or interpretation, or the performance by either party of its obligations under this Agreement (other than (a) any dispute, controversy or
claim regarding the validity, enforceability, claim construction or infringement of any patent rights, or defenses to any of the foregoing, or (b) any bona fide Third Party action or proceeding filed or instituted against a party to this
Agreement), whether before or after termination of this Agreement, shall be finally resolved by binding arbitration. Whenever a party shall decide to institute arbitration proceedings, it shall give prompt written notice to that effect to the other
party. Any such arbitration shall be conducted in the English language under the International Dispute Resolution Procedures and Arbitration Rules of the American Arbitration Association (the “Rules”) by a panel of three
(3) arbitrators appointed in accordance with such Rules. Any such arbitration shall be held in Los Angeles, California. The method and manner of discovery in any such arbitration proceedings shall be governed by the Rules. The arbitrators shall
have the authority to grant specific performance and to allocate between the parties the costs of arbitration (including attorneys’ fees and expenses of the parties) in such equitable manner as they determine. Judgment upon the

 
award so rendered may be entered in any court having jurisdiction or application may be made to such court for judicial acceptance of any award and an order of enforcement, as the case may be. In
no event shall a demand for arbitration be made after the date when institution of a legal or equitable proceeding based upon such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Notwithstanding
the foregoing, either party shall have the right, without waiving any right or remedy available to such party under this Agreement or otherwise, to seek and obtain from any court of competent jurisdiction any interim or provisional relief that is
necessary or desirable to protect the rights or property of such party, pending the selection of the arbitrators hereunder or pending the arbitrators’ determination of any dispute, controversy or claim hereunder. Notwithstanding the above,
either Party may bring an action for an injunction or other equitable relief with respect to any actual or threatened breach of this Agreement. 

13.4 Assignment. Kite shall not assign its rights or obligations under this Agreement without the prior written consent of Cabaret;
provided, however, that Kite may, without such consent, assign this Agreement and its rights and obligations hereunder (a) to any Affiliate, or (b) in connection with the transfer or sale of all or substantially all of its business or in
the event of its merger, consolidation, change in control or similar transaction. Each party shall give the other party prompt written notice of any permitted assignment of this Agreement, and any permitted assignee shall assume all obligations of
its assignor under this Agreement. Any assignment or attempted assignment by either Party in violation of the terms of this Section 13.4 shall be null, void and of no legal effect. 

13.5 Waivers and Amendments. No change, modification, extension, termination or waiver of this Agreement, or any of the provisions
herein contained, shall be valid unless made in writing and signed by duly authorized representatives of the parties hereto. 
 13.6
Entire Agreement. This Agreement embodies the entire agreement between the parties and supersedes any prior representations, understandings and agreements between the parties regarding the subject matter hereof. There are no representations,
understandings or agreements, oral or written, between the parties regarding the subject matter hereof that are not fully expressed herein. 

13.7 Severability. Any of the provisions of this Agreement which are determined to be invalid or unenforceable in any jurisdiction
shall be ineffective to the extent of such invalidity or unenforceability in such jurisdiction, without rendering invalid or unenforceable the remaining provisions hereof and without affecting the validity or enforceability of any of the teens of
this Agreement in any other jurisdiction. 
 13.8 Waiver. The waiver by either party hereto of any right hereunder or the failure to
perform or of a breach by the other party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by said other party whether of a similar nature or otherwise. 

 13.9 Further Assurance. Each party shall reasonably cooperate, execute such further
documents and instruments and take such further actions, as necessary or appropriate to effectuate transactions contemplated by this Agreement. 

13.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of
the Effective Date. 
  

			
	CABARET BIOTECH LTD.
		
	By:	 	 ZELIG ESHHAR

		
	Title:	 	  

	
	 /s/ Zelig Eshhar

	Dr. ZELIG ESHHAR
	
	KITE PHARMA, INC.
		
	By:	 	 /s/ Arie Belldegrun, M.D.

		
	Title:	 	 Chairman

 EXHIBIT A 

LICENSED PATENT RIGHTS 
 Eshhar patents:

 US 5,906,936, issued May 25, 1999 
 US 7,741,465, Eshhar
et al, isUSsued June 22, 2010. 
 Eshhar-NIH patent: 
 US
8,211,422, Eshhar et al, issued July 3, 2012 
 Eshhar-NIH pending application: 

[...***...] 
 Patents included with the Eshhar/Regents of
University of California/Biosante agreement: 
 US 6,319,494, Capon et al, issued November 20, 2001 

US 5,712,149, Roberts, issued January 27, 1998 
 US
5,741,899, Capon et al, issued April 21, 1998 
 US 6,077,947, Capon et al, issued June 20, 2000 

US 5,843,728, Seed et al, issued December 1, 1998 
 US
5,851,828, Seed et al, issued December 22, 1998 
 US 5,912,170, Seed et al, issued June 15, 1999 

US 6,004,811, Seed et al, issued December 21, 1999 

  
 ***Confidential
Treatment RequestedEX-10.19

 Exhibit 10.19 

***Text Omitted and Filed Separately 

with the Securities and Exchange Commission. 

Confidential Treatment Requested 

Under 17 C.F.R. Section 200.80(b)(4) and Rule 406 of the 

Securities Act of 1933, as amended. 

THE NATIONAL INSTITUTES OF HEALTH 

PATENT LICENSE AGREEMENT – EXCLUSIVE 

COVER PAGE 
 For NIH internal use only:

 License Number:                     

 License Application Number: A-265-2013 

Serial Number(s) of Licensed Patent(s) or Patent Application(s): 
  

	 	1.	[...***...] 

  

	 	2.	PCT Application No. PCT/US13/042162 filed May 22, 2013 entitled ‘‘Murine anti-NY–ESO–1 T cell receptors’’ [HHS Ref No. E–105–2012/0–PCT–02] 

Licensee: Kite Pharma, Inc. 

Cooperative Research and Development Agreement (CRADA) Number (if a subject invention): 

Additional Remarks: 
 Public
Benefit(s): Clinical data from NCI Surgery Branch and other academic centers have demonstrated that patient’s engineered T cells engineered with T cell receptors (TCRs) or chimeric antigen receptors (CARs), when administered back to the
patient, can traffic to the tumor, become activated upon engagement with the tumor antigen and selectively eradicate the tumors. This Autologous Cell Therapy (ACT) approach has shown the potential to result in a significant and durable clinical
benefit to patients with advanced, metastatic tumors. New York Esophageal Antigen-1 (“NY-ESO-1”) is an attractive target for application of the engineered ACT technology due to their expression in different tumor types and lack of
expression in vital normal tissues. Therefore, development of the ACT TCR product directed to NY-ESO-1 by the Licensee, in partnership with the NIH, has the potential to generate new efficacious and safe therapies for patients that
have not responded to all other therapies. 
 This Patent License Agreement, hereinafter referred to as the “Agreement”, consists of this
Cover Page, an attached Agreement, a Signature Page, Appendix A (List of Patent(s) or Patent Application(s)), Appendix B (Fields of Use and Territory), Appendix C (Royalties), Appendix D (Benchmarks and Performance), Appendix E (Commercial
Development Plan), Appendix F (Example Royalty Report), and Appendix G (Royalty Payment Options). The Parties to this Agreement are: 
  

	 	1)	The National Institutes of Health (“NIH”) an agency within the Department of Health and Human Services (“HHS”); and 

 

	 	2)	The person, corporation, or institution identified above or on the Signature Page, having offices at the address indicated on the Signature Page, hereinafter referred to as the “Licensee”.

  
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 The NIH and the Licensee agree as follows: 

 

	1.	BACKGROUND 

  

	 	1.1	In the course of conducting biomedical and behavioral research, the NIH or the FDA investigators made inventions that may have commercial applicability. 

 

	 	1.2	By assignment of rights from NIH or FDA employees and other inventors, HHS, on behalf of the Government, owns intellectual property rights claimed in any United States or foreign patent
applications or patents corresponding to the assigned inventions. HHS also owns any tangible embodiments of these inventions actually reduced to practice by the NIH or the FDA. 

 

	 	1.3	The Secretary of HHS has delegated to the NIH the authority to enter into this Agreement for the licensing of rights to these inventions. 

 

	 	1.4	The NIH desires to transfer these inventions to the private sector through commercialization licenses to facilitate the commercial development of products and processes for public use and benefit.

  

	 	1.5	The Licensee desires to acquire commercialization rights to certain of these inventions in order to develop processes, methods, or marketable products for public use and benefit. 

 

	2.	DEFINITIONS 

  

	 	2.1	“Affiliate(s)” means a corporation or other business entity, which directly or indirectly is controlled by or controls, or is under common control with the Licensee. For this purpose, the term
“control” shall mean ownership of more than fifty percent (50%) of the voting stock or other ownership interest of the corporation or other business entity, or the power to elect or appoint more than fifty percent (50%) of the
members of the governing body of the corporation or other business entity. 

  

	 	2.2	“Benchmarks” mean the performance milestones that are set forth in Appendix D. 

  

	 	2.3	“Combination Product” means a product that contains a Licensed Product(s) and at least one other active therapeutic component or device other than a Licensed Product(s) that is not claimed
or covered by the Licensed Patent Rights. 

  

	 	2.4	“Commercial Development Plan” means the written commercialization plan attached as Appendix E. 

  

	 	2.5	“FDA” means the United States Food and Drug Administration or its successor. 

  

	 	2.6	“First Commercial Sale” means the initial transfer by or on behalf of the Licensee, its Affiliates, or sublicensees of Licensed Products or the initial practice of a Licensed
Process by or on behalf of the Licensee, its Affiliates, or sublicensees in a country, in each case, after all applicable marketing and pricing approvals (if any) have been granted by the applicable governing regulatory authority
in such country, in exchange for cash or some equivalent consideration to which value can be assigned for the purpose of determining Net Sales. 

  

	 	2.7	“Government” means the Government of the United States of America. 

  
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	 	2.8	“Licensed Field of Use” means the fields of use identified in Appendix B. 

  

	 	2.9	“Licensed Patent Rights” shall mean: 

  

	 	(a)	Patent applications (including provisional patent applications and PCT patent applications) or patents listed in Appendix A, all divisions and continuations of these applications, all patents issuing from these
applications, divisions, and continuations, and any reissues, reexaminations, and extensions of these patents; 

  

	 	(b)	to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.9(a): 

  

	 	(i)	continuations-in-part of 2.9(a); 

  

	 	(ii)	all divisions and continuations of these continuations-in-part; 

 

	 	(iii)	all patents issuing from these continuations-in-part, divisions, and continuations; 

 

	 	(iv)	priority patent application(s) of 2.9(a); and 

  

	 	(v)	any reissues, reexaminations, and extensions of these patents; 

  

	 	(c)	to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.9(a): all counterpart foreign and U.S. patent applications and patents to 2.9(a) and 2.9(b), including
those listed in Appendix A; and 

  

	 	(d)	Licensed Patent Rights shall not include 2.9(b) or 2.9(c) to the extent that they contain one or more claims directed to new matter which is not the subject matter disclosed in 2.9(a). 

 

	 	2.10	“Licensed Processes” means processes which, in the course of being practiced, would be within the scope of one or more claims of the Licensed Patent Rights that have not been held unpatentable,
invalid or unenforceable by an unappealed or unappealable judgment of a court of competent jurisdiction. 

  

	 	2.11	“Licensed Products” means tangible materials which, in the course of manufacture, use, sale, or importation, would be within the scope of one or more claims of the Licensed Patent Rights that
have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment of a court of competent jurisdiction. 

  

	 	2.12	“Licensed Territory” means the geographical area identified in Appendix B. 

“Net Sales” means the total gross receipts for sales of Licensed Products or practice of Licensed Processes by
or on behalf of the Licensee, its Affiliates, or sublicensees and from leasing, renting, or otherwise making Licensed Products available to others without sale or other dispositions, whether invoiced or not, less [...***...] 

  
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 [...***...]. No deductions shall be
made for [...***...]. If the Licensee, its Affiliates or sublicensees sell a Combination Product, the Net Sales [...***...]. If the Licensed Product is not sold separately, then Net Sales for
such Combination Product [...***...]. 
  

	 	2.13	“Practical Application” means to manufacture in the case of a composition or product, to practice in the case of a process or method, or to operate in the case of a machine or system; and in each case,
under these conditions as to establish that the invention is being utilized and that its benefits are to the extent permitted by law or Government regulations available to the public on reasonable terms. 

 

	 	2.14	“Research License” means a nontransferable, nonexclusive license to make and to use Licensed Products or Licensed Processes as defined by the Licensed Patent Rights solely for
purposes of internal research and not for any commercial purposes or distribution in lieu of purchase. 

  

	3.	GRANT OF RIGHTS 

  

	 	3.1	The NIH hereby grants and the Licensee accepts, subject to the terms and conditions of this Agreement, an exclusive license under the Licensed Patent Rights in the Licensed Territory
to make and have made, to use and have used, to sell and have sold, to offer to sell, and to import any Licensed Products in the Licensed Field of Use and to practice and have practiced any Licensed Processes in the Licensed
Field of Use. 

  

	 	3.2	This Agreement confers no license or rights by implication, estoppel, or otherwise under any patent applications or patents of the NIH other than the Licensed Patent Rights regardless of whether
these patents are dominant or subordinate to the Licensed Patent Rights. 

  

	4.	SUBLICENSING 

  

	 	4.1	Upon written approval, which shall include prior review of a copy of any sublicense agreement by the NIH and which shall not be unreasonably withheld, the Licensee may enter into sublicensing agreements
under the Licensed Patent Rights. With respect to any proposed sublicense agreement, if the NIH does not provide the Licensee with written rejection thereof within [...***...] after the date the NIH receives
a copy thereof from the Licensee, the NIH shall be deemed to have given its approval of such sublicense agreement and the Licensee shall have the right to enter into such sublicense agreement. 

 

	 	4.2	The Licensee agrees that any sublicenses granted by it shall provide that the obligations to the NIH of Paragraphs 5.1-5.4, 8.1, 10.1, 10.2, 12.5, and
13.8-13.10 of this Agreement shall be binding upon the sublicensee as if it were a party to this Agreement. The Licensee further agrees to attach copies of these Paragraphs to all sublicense agreements. 

 

	 	4.3	 Any sublicenses granted by the Licensee shall provide for the termination of the sublicense, or the conversion to a license directly between
the sublicensees and the NIH, at the option of the sublicensee, upon termination of this Agreement under Article 13. This conversion is subject to 

  
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NIH approval and contingent upon acceptance by the sublicensee of the remaining provisions of this Agreement. 

 

	 	4.4	The Licensee agrees to forward to the NIH a copy of each fully executed sublicense agreement postmarked within [...***...] of the execution of the
agreement. To the extent permitted by law, the NIH agrees to maintain each sublicense agreement in confidence. 

  

	 	4.5	The Licensee’s right to grant sublicenses hereunder is further subject to the limitation that there shall not exist, at any time in any country, more than [...***...] sublicense then in effect
for the Licensed Field of Use. 

  

	5.	STATUTORY AND NIH REQUIREMENTS AND RESERVED GOVERNMENT RIGHTS 

  

					
	5.1	  	    (a)     	  	The NIH reserves on behalf of the Government an irrevocable, nonexclusive, nontransferable, royalty-free license for the practice of all inventions licensed under the Licensed
Patent Rights throughout the world by or on behalf of the Government and on behalf of any foreign government or international organization pursuant to any existing or future treaty or agreement to which the Government is a
signatory. Prior to the First Commercial Sale, the Licensee agrees to provide the NIH with reasonable quantities of Licensed Products or materials or procedures associated with the Licensed Products or materials
made through the Licensed Processes for the NIH research use. Given the nature of the envisioned Licensed Products as personalized autologous cell therapy products, if any Licensed Products and/or materials made
through the Licensed Processes are not available in reasonable quantities for NIH research use, they shall not be subject to the foregoing obligation; and

 

	 	(b)	In the event that the Licensed Patent Rights are Subject Inventions made under a Cooperative Research and Development Agreement (“CRADA”), the Licensee grants to the Government,
pursuant to 15 U.S.C. §3710a(b)(1)(A), a nonexclusive, nontransferable, irrevocable, paid-up license to practice Licensed Patent Rights or have Licensed Patent Rights practiced
throughout the world by or on behalf of the Government In the exercise of this license, the Government shall not publicly disclose trade secrets or commercial or financial information that is privileged or confidential within the
meaning of 5 U.S.C. §552(b)(4) or which would be considered as such if it had been obtained from a non-Federal party. Prior to the First Commercial Sale, the Licensee agrees to
provide the NIH reasonable quantities of Licensed Products or materials made through the Licensed Processes for the NIH research use. Given the nature of the envisioned Licensed Products as personalized autologous
cell therapy products, if any Licensed Products and/or materials made through the Licensed Processes are not available in reasonable quantities for NIH research use, they shall not be subject to the foregoing obligation.

  

	 	5.2	The Licensee agrees that products used or sold in the United States embodying Licensed Products or produced through use of Licensed Processes shall be manufactured substantially in the United
States, unless a written waiver is obtained in advance from the NIH. 

  

	 	5.3	 The Licensee acknowledges that the NIH may enter into future CRADAs under the Federal Technology Transfer Act of 1986 that
relate to the subject matter of this Agreement. The Licensee agrees not to unreasonably deny requests for a Research License from future collaborators with the NIH when acquiring these rights is necessary in order
to make a CRADA 

  
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project feasible. The Licensee may request an opportunity to join as a party to the proposed CRADA. 

 

					
	5.4	  	    (a)     	  	In addition to the reserved license of Paragraph 5.1, the NIH reserves the right to grant Research Licenses directly or to require the Licensee to grant Research Licenses on reasonable terms. In the
exercise of this reserved right, the NIH shall not publicly disclose trade secrets or commercial or financial information that is privileged or confidential within the meaning of 5 U.S.C. §552(b)(4) or which would be considered as
such if it had been obtained from a non-Federal party. The purpose of these Research Licenses is to encourage basic research, whether conducted at an academic or corporate facility. In order to
safeguard the Licensed Patent Rights, however, before granting to commercial entities a Research License or providing to them research samples of materials made through the Licensed Processes, (i) the NIH shall give
to the Licensee advance written notice of any commercial party to which the NIH proposes to grant a Research License, (ii) the NIH shall provide the Licensee reasonable opportunity to raise objections thereto
and comment thereon, and (iii) the NIH shall consult with the Licensee to consider in good faith the objections and comments of the Licensee; and

  

	 	(b)	In exceptional circumstances, and in the event that Licensed Patent Rights are Subject Inventions made under a CRADA, the Government, pursuant to 15 U.S.C. §3710a(b)(1)(B), retains the
right to require the Licensee to grant to a responsible applicant a nonexclusive, partially exclusive, or exclusive sublicense to use the Licensed Patent Rights in the Licensed Field of Use on terms that are reasonable under the
circumstances, or if the Licensee fails to grant this license, the Government retains the right to grant the license itself. The exercise of these rights by the Government shall only be in exceptional circumstances and only if
the Government determines: 

  

	 	(i)	the action is necessary to meet health or safety needs that are not reasonably satisfied by the Licensee; 

  

	 	(ii)	the action is necessary to meet requirements for public use specified by Federal regulations, and these requirements are not reasonably satisfied by or on behalf of the Licensee; or 

 

	 	(iii)	the Licensee has failed to comply with an agreement containing provisions described in 15 U.S.C. §3710a(c)(4)(B); and 

 

	 	(c)	The determination made by the Government under this Paragraph 5.4 is subject to administrative appeal and judicial review under 35 U.S.C. §203(b); and 

 

	 	(d)	 The NIH acknowledges and agrees that a Research License or other right granted pursuant to this Paragraph 5.4 shall only pertain to
the Licensed Patent Rights and shall not include a right or license to any patent or other intellectual property right solely owned or solely controlled by the Licensee or its Affiliates other than the Licensed Patent
Rights. Without limiting the foregoing, except as expressly provided herein, nothing contained in this Agreement shall be construed as granting, by implication, estoppel or otherwise, any licenses or

  
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rights under any patents or other intellectual property rights other than the Licensed Patent Rights. 

 

	 	5.5	Notwithstanding anything to the contrary set forth in this Agreement, except as set forth in Section 5.4(b), the NIH shall not grant any rights under the Licensed Patent Rights within the
Licensed Field of Use and shall not provide any Licensed Products or materials made through the Licensed Processes to any third party for any commercial purpose within the Licensed Field of Use. 

 

	6.	ROYALTIES AND REIMBURSEMENT 

  

	 	6.1	The Licensee agrees to pay the NIH a noncreditable, nonrefundable license issue royalty as set forth in Appendix C. 

  

	 	6.2	The Licensee agrees to pay the NIH a nonrefundable, fully creditable (against earned royalties due for sales made in that specific year under Paragraph 6.3, below) minimum annual royalty as set forth
in Appendix C. 

  

	 	6.3	The Licensee agrees to pay the NIH earned royalties as set forth in Appendix C. 

  

	 	6.4	The Licensee agrees to pay the NIH benchmark royalties as set forth in Appendix C. 

  

	 	6.5	The Licensee agrees to pay the NIH sublicensing royalties as set forth in Appendix C. 

  

	 	6.6	A patent or patent application licensed under this Agreement shall cease to fall within the Licensed Patent Rights for the purpose of computing earned royalty payments in any given country on the earliest
of the dates that: 

  

	 	(a)	the application has been abandoned and not continued; 

  

	 	(b)	the patent expires or irrevocably lapses, or 

  

	 	(c)	the patent has been held to be invalid or unenforceable by an unappealed or unappealable decision of a court of competent jurisdiction or administrative agency. 

 

	 	6.7	No multiple royalties shall be payable because any Licensed Products or Licensed Processes are covered by more than one of the Licensed Patent Rights. 

 

	 	6.8	On sales of Licensed Products by the Licensee to its Affiliates or sublicensees, or on sales made in other than an arms-length transaction, the value of the
Net Sales attributed under this Article 6 to this transaction shall be that which would have been received in an arms-length transaction, based on sales of like quantity and quality products on or
about the time of this transaction. 

  

	 	6.9	With regard to unreimbursed expenses associated with the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the Licensed Patent Rights and paid by the
NIH prior to the effective date of this Agreement, the Licensee shall pay the NIH, as an additional royalty, an amount equivalent to these unreimbursed expenses previously paid by the NIH in accordance with the
following schedule: 

  
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	 	(a)	[...***...] percent ([...***...]%) of these unreimbursed expenses will be paid by the Licensee to the NIH within [...***...] of the
NIH’s submission of a statement and request for payment to the Licensee; and 

  

	 	(b)	[...***...] percent ([...***...]%) of these unreimbursed expenses will be paid by the Licensee to the NIH on or before the [...***...] anniversary of the effective date of this
Agreement or upon termination of this Agreement, whichever occurs sooner. 

  

	 	(c)	A good faith estimate of the unreimbursed expenses previously paid by the NIH is set forth in Appendix C. 

  

	 	6.10	With regard to unreimbursed expenses associated with the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the Licensed Patent Rights and paid by the
NIH on or after the effective date of this Agreement, the NIH, at its sole option, may require the Licensee: 

  

	 	(a)	to pay the NIH on an annual basis, within [...***...] of the NIH’s submission of a statement and request for payment, a royalty amount equivalent to these unreimbursed expenses paid during the
previous calendar year(s) provided, however, that if the NIH grants a commercialization license under the Licensed Patent Rights to one or more third parties, then the Licensee shall pay the NIH a pro-rated portion of
such unreimbursed expenses calculated by dividing the total patent costs paid during the previous calendar year(s) by the number of commercialization licensees of record whose licenses have a Licensed Field of Use which includes the
development of therapeutic or diagnostic products and falls within the scope of the Licensed Patent Rights as of the date of this statement. For avoidance of doubt, if the Licensee is the only commercialization licensee of record whose
license has a Licensed Field of Use which includes the development of therapeutic or diagnostic products and falls within the scope of the Licensed Patent Rights as of the date of this statement, the Licensee shall pay
NIH a royalty amount equivalent to [...***...] percent ([...***...]%) of these unreimbursed expenses paid during the previous calendar year(s); 

 

	 	(b)	to pay these unreimbursed expenses directly to the law firm employed by the NIH to handle these functions. However, in this event, the NIH and not the Licensee shall be the client of the law firm;
or 

  

	 	(c)	in limited circumstances, the Licensee may be given the right to assume responsibility for the preparation, filing, prosecution, or maintenance of any patent application or patent included with the Licensed
Patent Rights. In that event, the Licensee shall directly pay the attorneys or agents engaged to prepare, file, prosecute, or maintain these patent applications or patents and shall provide the NIH with copies of each invoice
associated with these services as well as documentation that these invoices have been paid. 

  

	 	6.11	 The NIH agrees, upon written request, to provide the Licensee with summaries of patent prosecution invoices for which the NIH has
requested payment from the Licensee under Paragraphs 6.9 and 6.10. The Licensee agrees that all information provided by the NIH related to 

  
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patent prosecution costs shall be treated as confidential commercial information and shall not be released to a third party except as required by law or a court of competent jurisdiction.

  

	 	6.12	The Licensee may elect to surrender its rights in any country of the Licensed Territory under any of the Licensed Patent Rights upon [...***...] written notice to the NIH and owe no
payment obligation under Paragraph 6.10 for patent-related expenses paid in that country after [...***...] of the effective date of the written notice. 

 

	7.	PATENT FILING, PROSECUTION, AND MAINTENANCE 

  

	 	7.1	Except as otherwise provided in this Article 7, the NIH agrees to take responsibility for, but to consult with, the Licensee in the preparation, filing, prosecution, and maintenance of any and all
patent applications or patents included in the Licensed Patent Rights and shall, on an ongoing basis, furnish copies of relevant patent-related documents to the Licensee. 

 

	 	7.2	Upon the NIH’s written request, the Licensee shall have the right to assume the responsibility for the preparation, filing, prosecution, and maintenance of any and all patent applications or patents
included in the Licensed Patent Rights and shall, on an ongoing basis, promptly furnish copies of all patent-related documents to the NIH. In this event, the Licensee shall, subject to the
prior approval of the NIH, select registered patent attorneys or patent agents to provide these services on behalf of the Licensee and the NIH. The NIH shall provide appropriate powers of attorney and other documents
necessary to undertake this action to the patent attorneys or patent agents providing these services. The Licensee and its attorneys or agents shall consult with the NIH in all aspects of the preparation, filing, prosecution and
maintenance of patent applications and patents included within the Licensed Patent Rights and shall provide the NIH sufficient opportunity to comment on any document that the Licensee intends to file or to cause to be filed with
the relevant intellectual property or patent office. 

  

	 	7.3	At any time, the NIH may provide the Licensee with written notice that the NIH wishes to assume control of the preparation, filing, prosecution, and maintenance of any and all patent applications or
patents included in the Licensed Patent Rights. If the NIH elects to reassume these responsibilities, the Licensee agrees to cooperate fully with the NIH, its attorneys, and agents in the preparation, filing, prosecution,
and maintenance of any and all patent applications or patents included in the Licensed Patent Rights and to provide the NIH with complete copies of any and all documents or other materials that the NIH deems necessary to
undertake such responsibilities. The Licensee shall be responsible for all costs associated with transferring patent prosecution responsibilities to an attorney or agent of the NIH’s choice. 

 

	 	7.4	Each party shall promptly inform the other as to all matters that come to its attention that may affect the preparation, filing, prosecution, or maintenance of the Licensed Patent Rights and provide sufficient
opportunity, when possible, to the other party to provide comments and suggestions with respect to the preparation, filing, prosecution, and maintenance of Licensed Patent Rights, which comments and suggestions shall be considered in good
faith by the other party. 

  

	8.	RECORD KEEPING 

  

	 	8.1	 The Licensee agrees to keep accurate and correct records of Licensed Products made, used, sold, or imported and Licensed
Processes practiced under this Agreement appropriate to determine the amount of royalties due to the NIH. These records shall be retained for at least [...***...] following a given reporting period and shall be available
during normal business hours, but not 

  
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more than once in any [...***...] period, for inspection, at the expense of the NIH, by an accountant or other designated auditor selected by the NIH for the sole purpose of
verifying reports and royalty payments hereunder. The accountant or auditor shall only have the right to audit those records that have not previously been audited pursuant to this Paragraph 8.1, unless NIH determines that there is just
cause for an additional audit, and shall only disclose to the NIH information relating to the accuracy of reports and royalty payments made under this Agreement. If an inspection shows an underreporting or underpayment in excess of
[...***...] percent ([...***...]%) for any [...***...] period, then the Licensee shall reimburse the NIH for the cost of the inspection at the time the Licensee pays the unreported royalties, including any
additional royalties as required by Paragraph 9.8. All royalty payments required under this Paragraph shall be due within [...***...] of the date the NIH provides the Licensee notice of the payment due. The Licensee
shall have the right to require that any accountant or auditor, prior to conducting an audit under this Paragraph 8.1, enter into an appropriate non-disclosure agreement with the Licensee regarding such financial information.

  

	9.	REPORTS ON PROGRESS, BENCHMARKS, SALES, AND PAYMENTS 

  

	 	9.1	Prior to signing this Agreement, the Licensee has provided the NIH with the Commercial Development Plan in Appendix E, under which the Licensee intends to bring the subject matter of
the Licensed Patent Rights to the point of Practical Application. This Commercial Development Plan is hereby incorporated by reference into this Agreement. Based on this plan, performance Benchmarks are determined
as specified in Appendix D. 

  

	 	9.2	The Licensee shall provide written summary annual reports on its product development progress or efforts to commercialize under the Commercial Development Plan for each of the Licensed Field of Use
within [...***...] after December 31 of each calendar year. These progress reports shall include, but not be limited to: progress on research and development, status of applications for regulatory approvals, establishment of manufacturing
sites for Licensed Product(s), and status of sublicensing, marketing, importing, and sales during the preceding calendar year, as well as, plans for the present calendar year. The NIH also encourages these reports to include
information on any of the Licensee’s public service activities that relate to the Licensed Patent Rights. If reported progress differs from that projected in the Commercial Development Plan and Benchmarks, the
Licensee shall explain the reasons for these differences. In the annual report, the Licensee may propose amendments to the Commercial Development Plan, acceptance of which by the NIH may not be denied unreasonably. The
Licensee agrees to provide any additional information reasonably required by the NIH to evaluate the Licensee’s performance under this Agreement. The Licensee may amend the Benchmarks at any time upon
written approval by the NIH, which approval shall not be unreasonably withheld. The NIH shall not unreasonably withhold approval of any request of the Licensee to extend the time periods of this schedule if the request is
supported by a reasonable showing by the Licensee of diligence in its performance under the Commercial Development Plan and toward bringing the Licensed Products to the point of Practical Application as defined in 37
C.F.R. §404.3(d). The Licensee shall amend the Commercial Development Plan and Benchmarks at the request of the NIH to address any Licensed Field of Use not specifically addressed in the plan originally
submitted. 

  

	 	9.3	The Licensee shall report to the NIH the dates for achieving Benchmarks specified in Appendix D and the First Commercial Sale in each country in the Licensed Territory within
[...***...] days of such occurrences. 

 The Licensee shall submit to the NIH, within [...***...]
after each calendar half-year ending June 30 and December 31, a royalty report, as described in the example in Appendix F, setting forth for the preceding
half-year period the amount of the Licensed Products sold or 

  
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Licensed Processes practiced by or on behalf of the Licensee in each country within the Licensed Territory, the Net Sales, and the amount of royalty accordingly due.
With each royalty report, the Licensee shall submit payment of earned royalties due. If no earned royalties are due to the NIH for any reporting period, the written report shall so state. The royalty report shall be certified as
correct by an authorized officer of the Licensee and shall include a detailed listing of all deductions made under Paragraph 2.13 to determine Net Sales made under Article 6 to determine royalties due. The royalty report
shall also identify the site of manufacture for Licensed Product(s) sold in the United States. 
  

	 	9.4	The Licensee agrees to forward [...***...] to the NIH a copy of these reports received by the Licensee from its sublicensees during the preceding half-year period as shall be pertinent to a
royalty accounting to the NIH by the Licensee for activities under the sublicense. 

  

	 	9.5	Royalties due under Article 6 shall be paid in U.S. dollars and payment options are listed in Appendix G. The United States dollar equivalent shall be calculated using the average of the exchange rate (local
currency per US$1) published in The Wall Street Journal, Western Edition, under the heading “Currency Trading” on the last business day of each month during the applicable half-year. Any loss of exchange, value, taxes, or other
expenses incurred in the transfer or conversion to U.S. dollars shall be paid entirely by the Licensee. The royalty report required by Paragraph 9.4 shall be mailed to the NIH at its address for Agreement notices indicated
on the Signature Page. 

  

	 	9.6	The Licensee shall be solely responsible for determining if any tax on royalty income is owed outside the United States and shall pay the tax and be responsible for all filings with appropriate agencies of
foreign governments. 

  

	 	9.7	Additional royalties may be assessed by the NIH on any payment that is more than [...***...] overdue at the rate of [...***...] percent ([...***...]%) per month. This [...***...] percent
([...***...]%) per month rate may be applied retroactively from the original due date until the date of receipt by the NIH of the overdue payment and additional royalties. The payment of any additional royalties shall not prevent the
NIH from exercising any other rights it may have as a consequence of the lateness of any payment. 

  

	 	9.8	All plans and reports required by this Article 9 and marked “confidential” by the Licensee shall, to the extent permitted by law, be treated by the NIH as commercial and financial
information obtained from a person and as privileged and confidential, and any proposed disclosure of these records by the NIH under the Freedom of Information Act (FOIA), 5 U.S.C. §552 shall be subject to the predisclosure
notification requirements of 45 C.F.R. §5.65(d). 

  

	10.	PERFORMANCE 

  

	 	10.1	The Licensee shall use its reasonable commercial efforts to bring the Licensed Products and Licensed Processes to Practical Application. “Reasonable commercial efforts” for the
purposes of this provision shall include adherence to the Commercial Development Plan in Appendix E and performance of the Benchmarks in Appendix D. The efforts of a sublicensee shall be considered the efforts of the Licensee.

  

	 	10.2	Upon the First Commercial Sale, until the expiration or termination of this Agreement, the Licensee shall use its reasonable commercial efforts to make Licensed Products and Licensed
Processes reasonably accessible to the United States public. 

  
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	 	10.3	The Licensee agrees, after its First Commercial Sale and as part of its marketing and product promotion, to develop reasonable educational materials (e.g., brochures, website, etc.) directed to patients
and physicians reasonably detailing the Licensed Products or medical aspects of the prophylactic and therapeutic uses of the Licensed Products. 

  

	 	10.4	The Licensee agrees to supply, to the Mailing Address for Agreement notices indicated on the Signature Page, the Office of Technology Transfer, NIH with inert samples of the Licensed Products
or Licensed Processes or their packaging for educational and display purposes only. 

  

	11.	INFRINGEMENT AND PATENT ENFORCEMENT 

  

	 	11.1	The NIH and the Licensee agree to notify each other promptly of each infringement or possible infringement of the Licensed Patent Rights, as well as, any facts which may affect the validity, scope,
or enforceability of the Licensed Patent Rights to the extent a party becomes aware of such infringement or facts. 

  

	 	11.2	Pursuant to this Agreement and the provisions of 35 U.S.C. Part 29, the Licensee may: 

  

	 	(a)	bring suit in its own name, at its own expense, and on its own behalf for infringement of presumably valid claims in the Licensed Patent Rights; 

 

	 	(b)	in any suit, enjoin infringement and collect for its use, damages, profits, and awards of whatever nature recoverable for the infringement; or 

 

	 	(c)	settle any claim or suit for infringement of the Licensed Patent Rights provided, however, that the NIH and appropriate Government authorities shall have the first right to take such actions; and

  

	 	(d)	If the Licensee desires to initiate a suit for patent infringement, the Licensee shall notify the NIH in writing. If the NIH does not notify the Licensee of its intent to pursue legal
action within [*...***...], the Licensee shall be free to initiate suit. The NIH shall have a continuing right to intervene in the suit at its own expense. The Licensee
shall take no action to compel the Government either to initiate or to join in any suit for patent infringement; provided, however, that the Government will participate in the suit if, and only if, required for legal standing purposes.
The Licensee may request the Government to initiate or join in any suit if necessary to avoid dismissal of the suit. Should the Government be made a party to any suit brought by the Licensee, the Licensee shall
reimburse the Government for any costs, expenses, or fees which the Government incurs as a result of the motion or other action, including all costs incurred by the Government in opposing the motion or other action. In all
cases, the Licensee agrees to keep the NIH reasonably apprised of the status and progress of any litigation. Before the Licensee commences an infringement action, the Licensee shall notify the NIH and give careful
consideration to the views of the NIH and to any potential effects of the litigation on the public health in deciding whether to bring suit. 

In the event that a declaratory judgment action alleging invalidity or non-infringement of any of the
Licensed Patent Rights shall be brought against the Licensee or raised by way of counterclaim or affirmative defense in an infringement suit brought by the Licensee under 

  
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Paragraph 11.2, pursuant to this Agreement and the provisions of 35 U.S.C. Part 29 or other statutes, the Licensee may: 

 

	 	(e)	defend the suit in its own name, at its own expense, and on its own behalf for presumably valid claims in the Licensed Patent Rights; 

 

	 	(f)	in any suit, ultimately to enjoin infringement and to collect for its use, damages, profits, and awards of whatever nature recoverable for the infringement; and 

 

	 	(g)	settle any claim or suit for declaratory judgment involving the Licensed Patent Rights provided, however, that the NIH and appropriate Government authorities shall have a continuing right to
intervene in the suit at its own expense; and 

  

	 	(h)	If the NIH does not notify the Licensee of its intent to respond to the legal action within a reasonable time, the Licensee shall be free to do so. The Licensee shall take no action to compel
the Government either to initiate or to join in any declaratory judgment action. The Licensee may request the Government to initiate or to join any suit if necessary to avoid dismissal of the suit. Should the Government
be made a party to any suit by motion or any other action brought by the Licensee, the Licensee shall reimburse the Government for any costs, expenses, or fees, which the Government incurs as a result of the motion or
other action. If the Licensee elects not to defend against the declaratory judgment action, the NIH, at its option, may do so at its own expense. In all cases, the Licensee agrees to keep the NIH reasonably apprised of
the status and progress of any litigation. Before the Licensee commences an infringement action, the Licensee shall notify the NIH and give careful consideration to the views of the NIH and to any potential effects of the
litigation on the public health in deciding whether to bring suit. 

  

	 	11.3	Except as otherwise set forth above, in any action under Paragraphs 11.2 or 11.3 the expenses including costs, fees, attorney fees, and disbursements, shall be paid by the Licensee. The value of any recovery
made by the Licensee through court judgment or settlement, after first reimbursing the Licensee for such expenses paid by the Licensee, shall be treated as Net Sales and subject to earned royalties. 

 

	 	11.4	The NIH shall cooperate fully with the Licensee in connection with any action under Paragraphs 11.2 or 11.3. The NIH agrees promptly to provide access to all necessary documents and to render
reasonable assistance in response to a request by the Licensee. 

  

	12.	NEGATION OF WARRANTIES AND INDEMNIFICATION 

  

	 	12.1	The NIH offers no warranties other than those specified in Article 1. 

  

	 	12.2	The NIH does not warrant the validity of the Licensed Patent Rights and makes no representations whatsoever with regard to the scope of the Licensed Patent Rights, or that the Licensed Patent
Rights may be exploited without infringing other patents or other intellectual property rights of third parties. 

  

	 	12.3	 The NIH MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER DEFINED BY

  
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THE CLAIMS OF THE LICENSED PATENT RIGHTS OR TANGIBLE MATERIALS RELATED THERETO. 

  

	 	12.4	The NIH does not represent that it shall commence legal actions against third parties infringing the Licensed Patent Rights. 

 

	 	12.5	The Licensee shall indemnify and hold the NIH, its employees, students, fellows, agents, and consultants harmless from and against all liability, demands, damages, expenses, and losses, including but not
limited to death, personal injury, illness, or property damage to the extent arising out of any suit or proceeding brought by a third party for: 

  

	 	(a)	the use by or on behalf of the Licensee, its sublicensees, Affiliates, or their respective directors, employees, or third parties (on behalf of the Licensee, its sublicensees or Affiliates)
of any Licensed Patent Rights; or 

  

	 	(b)	the design, manufacture, distribution, or use of any Licensed Products, Licensed Processes or other materials, products or processes developed by or on behalf of the Licensee, its sublicensees or
Affiliates in connection with or arising out of the Licensed Patent Rights. 

  

	 	12.6	The Licensee agrees to maintain a liability insurance program consistent with sound business practice. 

  

	13.	TERM, TERMINATION, AND MODIFICATION OF RIGHTS 

  

	 	13.1	This Agreement is effective when signed by all parties, unless the provisions of Paragraph 14.16 are not fulfilled, and shall extend to the expiration of the last to expire of the Licensed Patent
Rights unless sooner terminated as provided in this Article 13. 

  

	 	13.2	In the event that the Licensee is in default in the performance of any material obligations under this Agreement, including but not limited to the obligations listed in Paragraph 13.5, and if the
default has not been remedied within ninety (90) days after the date of notice in writing of the default, the NIH may terminate this Agreement by written notice and pursue outstanding royalties owed through procedures provided by
the Federal Debt Collection Act. 

  

	 	13.3	In the event that the Licensee, files a petition in bankruptcy, or has such a petition filed against it, the Licensee shall immediately notify the NIH in writing. Furthermore, to the extent allowed
under applicable law, the NIH shall have the right to terminate this Agreement immediately upon the Licensee’s receipt of written notice; provided, however, that with respect to any petition filed against the
Licensee, the NIH shall not have the right to terminate this Agreement if the Licensee is able to resolve or obtain the dismissal of such petition within [...***...] following the date of such notice.

  

	 	13.4	The Licensee shall have a unilateral right to terminate this Agreement or any licenses in any Licensed Field of Use in any country or territory by giving the NIH sixty (60) days written
notice to that effect. 

  

	 	13.5	The NIH shall specifically have the right to terminate or modify, at its option, this Agreement by written notice to the Licensee, if the NIH determines in good faith that the
Licensee: 

  
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	 	(a)	is not executing the Commercial Development Plan submitted with its request for a license and the Licensee cannot otherwise demonstrate to the NIH’s satisfaction that the Licensee has
taken, or can be expected to take within a reasonable time, effective steps to achieve Practical Application of the Licensed Products or Licensed Processes; 

 

	 	(b)	has not achieved the Benchmarks as may be modified under Paragraph 9.2; 

  

	 	(c)	has willfully made a false statement of, or willfully omitted a material fact in the license application or in any report required by this Agreement; 

 

	 	(d)	has committed a material breach of a covenant or agreement contained in this Agreement that has not been remedied within the ninety (90) days period set forth in Paragraph 13.2 above; 

 

	 	(e)	is not keeping Licensed Products or Licensed Processes reasonably available to the public after commercial use commences; or 

 

	 	(f)	cannot reasonably justify a failure to comply with the domestic production requirement of Paragraph 5.2 unless waived. 

  

	 	13.6	In making the determination referenced in Paragraph 13.5, the NIH shall take into account the normal course of such commercial development programs conducted with sound and reasonable business practices and
judgment and the annual reports submitted by the Licensee under Paragraph 9.2. Prior to invoking termination or modification of this Agreement under Paragraph 13.5, the NIH shall give written notice to the
Licensee providing the Licensee specific notice of, and a ninety (90) day opportunity to respond to remedy the items referenced in Paragraphs 13.5(a)-13.5(g). If the Licensee fails to alleviate the NIH’s
concerns as to the items referenced in Paragraphs 13.5(a)-13.5(g) within ninety (90) days following written notice from the NIH or otherwise fails to initiate corrective action to the NIH’s satisfaction, the NIH
may terminate this Agreement upon written notice to the Licensee. 

  

	 	13.7	When the public health and safety so require and after written notice to the Licensee providing the Licensee a sixty (60) day opportunity to respond, the NIH shall have the right to require the
Licensee to grant sublicenses to responsible applicants, on reasonable terms, in any of the Licensed Field of Use under the Licensed Patent Rights, unless the Licensee can reasonably demonstrate that the granting of the
sublicense would not materially increase the availability to the public of the subject matter of the Licensed Patent Rights. The NIH shall not require the granting of a sublicense unless the responsible applicant has first negotiated
in good faith with the Licensee. 

  

	 	13.8	The NIH reserves the right according to 35 U.S.C. §209(d)(3) to terminate or modify this Agreement upon written notice to the Licensee if it is determined that this action is necessary
to meet the requirements for public use specified by federal regulations issued after the date of the license and these requirements are not reasonably satisfied by the Licensee within ninety (90) days following written notice from the
NIH. 

  

	 	13.9	 Within thirty (30) days after receipt of written notice of the NIH’s unilateral decision to modify or terminate this
Agreement, the Licensee may, consistent with the provisions of 37 C.F.R. §404.11, appeal the decision by written submission to the designated NIH official. The decision of the

  
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designated NIH official shall be the final agency decision. The Licensee may thereafter exercise any and all administrative or judicial remedies that may be available.

  

	 	13.10	Within [...***...] after expiration or termination of this Agreement under this Article 13, a final report shall be submitted by the Licensee. Any royalty payments, including those incurred but
not yet paid (such as the full minimum annual royalty), and those related to patent expense, due to the NIH shall become immediately due and payable upon termination or expiration. If terminated under this Article 13, sublicensees may
elect to convert their sublicenses to direct licenses with the NIH pursuant to Paragraph 4.3. Unless otherwise specifically provided for under this Agreement, upon termination of this Agreement, the Licensee shall
have the right to offer for sale and sell any existing inventory of Licensed Products for [...***...] following the effective termination date of this Agreement, subject to the royalty obligations as set forth in Appendix C.
After this [...***...] period, the Licensee shall return all remaining Licensed Products or other materials included within the Licensed Patent Rights to the NIH or provide the NIH with certification of the
destruction thereof. The Licensee may not be granted additional NIH licenses if the final reporting requirement is not fulfilled. 

  

	14.	GENERAL PROVISIONS 

  

	 	14.1	Neither party may waive or release any of its rights or interests in this Agreement except in writing. The failure of a party to assert a right hereunder or to insist upon compliance with any term or condition of
this Agreement shall not constitute a waiver of that right by that party or excuse a similar subsequent failure to perform any of these terms or conditions by the other party. 

 

	 	14.2	This Agreement constitutes the entire agreement between the parties relating to the subject matter of the Licensed Patent Rights, Licensed Products and Licensed Processes, and all prior
negotiations, representations, agreements, and understandings are merged into, extinguished by, and completely expressed by this Agreement. 

  

	 	14.3	The provisions of this Agreement are severable, and in the event that any provision of this Agreement shall be determined to be invalid or unenforceable under any controlling body of law, this
determination shall not in any way affect the validity or enforceability of the remaining provisions of this Agreement. 

  

	 	14.4	If either party desires a modification to this Agreement, the parties shall, upon reasonable notice of the proposed modification by the party desiring the change, confer in good faith to determine the
desirability of the modification. No modification shall be effective until a written amendment is signed by the signatories to this Agreement or their designees. 

 

	 	14.5	The construction, validity, performance, and effect of this Agreement shall be governed by Federal law as applied by the Federal courts in the District of Columbia. 

 

	 	14.6	All Agreement notices required or permitted by this Agreement shall be given by prepaid, first class, registered or certified mail or by an express/overnight delivery service provided by a commercial
carrier, properly addressed to the other party at the address designated on the following Signature Page, or to another address as may be designated in writing by the other party. Agreement notices shall be considered timely if the notices
are received on or before the established deadline date or sent on or before the deadline date as verifiable by U.S. Postal Service postmark or dated receipt from a commercial carrier. Parties should request a legibly dated U.S. Postal Service
postmark or obtain a dated receipt from a commercial carrier or the U.S. Postal Service. Private metered postmarks shall not be acceptable as proof of timely mailing. 

  
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	 	14.7	This Agreement shall not be assigned or otherwise transferred (including any transfer by legal process or by operation of law, and any transfer in bankruptcy or insolvency, or in any other compulsory procedure or
order of court) without the prior written consent or approval of the NIH except to the Licensee’s Affiliate(s) or in connection with the transfer or sale of all or substantially all of its business (including without limitation by
means of merger, consolidation or change of control) relating to operations which concern this Agreement. The Licensee shall notify NIH within [...***...] of any assignment of this Agreement. 

 

	 	14.8	The Licensee agrees in its use of any NIH-supplied materials to comply with all applicable statutes, regulations, and guidelines, including the NIH and
HHS regulations and guidelines. The Licensee agrees not to use the materials for research involving use of the Licensed Products in human subjects (including clinical trials) in the United States without complying with 21
C.F.R. Part 50 and 45 C.F.R. Part 46. The Licensee agrees not to use the materials for research involving use of the Licensed Products in human subjects (including clinical trials) outside of the United States without
notifying the NIH, in writing, of the research or trials and complying with the applicable regulations of the appropriate national control authorities. Written notification to the NIH of such research involving human subjects or
clinical trials outside of the United States shall be given no later than [...***...] prior to commencement of the research or trials. 

  

	 	14.9	The Licensee acknowledges that it is subject to and agrees to abide by the United States laws and regulations (including the Export Administration Act of 1979 and Arms Export Control Act)
controlling the export of technical data, computer software, laboratory prototypes, biological material, and other commodities. The transfer of these items may require a license from the appropriate agency of the U.S. Government or written
assurances by the Licensee that it shall not export these items to certain foreign countries without prior approval of this agency. The NIH neither represents that a license is or is not required or that, if required, it shall be
issued. 

  

	 	14.10	The Licensee agrees to mark the Licensed Products or their packaging or containers in accordance with the applicable patent marking laws. 

 

	 	14.11	By entering into this Agreement, the NIH does not directly or indirectly endorse any product or service provided, or to be provided, by the Licensee whether directly or indirectly related to this
Agreement. The Licensee shall not state or imply that this Agreement is an endorsement by the Government, the NIH, any other Government organizational unit, or any Government employee. Additionally,
the Licensee shall not use the names of NIH, FDA, or HHS or the Government or their employees in any advertising, promotional, or sales literature in connection with this Agreement or the Licensed Patent
Rights without the prior written approval of the NIH. 

  

	 	14.12	The parties agree to attempt to settle amicably any controversy or claim arising under this Agreement or a breach of this Agreement, except for appeals of modifications or termination decisions provided
for in Article 13. The Licensee agrees first to appeal any unsettled claims or controversies to the designated NIH official, or designee, whose decision shall be considered the final agency decision. Thereafter, the
Licensee may exercise any administrative or judicial remedies that may be available. Notwithstanding anything to the contrary in this Agreement, the Licensee shall have the right, without waiving any right or remedy available
under this Agreement or otherwise, to seek and obtain from any court of competent jurisdiction any interim or provisional relief that is necessary or desirable to protect the rights or property of the Licensee, pending any such
settlement or the determination of any such appeal. 

  
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	 	14.13	Nothing relating to the grant of a license, nor the grant itself, shall be construed to confer upon any person any immunity from or defenses under the antitrust laws or from a charge of patent misuse, and the
acquisition and use of rights pursuant to 37 C.F.R. Part 404 shall not be immunized from the operation of state or Federal law by reason of the source of the grant. 

 

	 	14.14	Any formal recordation of this Agreement required by the laws of any Licensed Territory as a prerequisite to enforceability of this Agreement in the courts of any foreign jurisdiction or for other
reasons shall be carried out by the Licensee at its expense, and appropriately verified proof of recordation shall be promptly furnished to the NIH. 

 

	 	14.15	Paragraphs 4.3, 8.1, 9.5-9.7, 12.1-12.5, 13.9, 13.10, 14.12 and 14.15 of this Agreement shall survive termination of this Agreement. 

 

	 	14.16	The terms and conditions of this Agreement shall, at the NIH’s sole option, be considered by the NIH to be withdrawn from the Licensee’s consideration and the terms and conditions
of this Agreement, and this Agreement itself to be null and void, unless this Agreement is executed by the Licensee and a fully executed original is received by the NIH within [...***...] from the date of the
NIH signature found at the Signature Page. 

 SIGNATURES BEGIN ON NEXT PAGE 

  
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 NIH PATENT LICENSE AGREEMENT – EXCLUSIVE 

SIGNATURE PAGE 
  

					
	For the NIH:	 		 	
			
	  
	 		 	  

	Richard U. Rodriguez	 		 	Date
	Director, Division of Technology Development and Transfer	 		 	
	Office of Technology Transfer	 		 	
	National Institutes of Health	 		 	

 Mailing Address or E-mail Address for Agreement notices and reports: 

Chief, Monitoring & Enforcement Branch 
 Office of
Technology Transfer 
 National Institutes of Health 
 6011
Executive Boulevard, Suite 325 
 Rockville, Maryland 20852-3804 U.S.A. 

E-mail: LicenseNotices_Reports@mail.nih.gov 
 For the
Licensee (Upon, information and belief, the undersigned expressly certifies or affirms that the contents of any statements of the Licensee made or referred to in this document are truthful and accurate.): 

 

					
	by:	 		 	
			
	  
	 		 	  

	Signature of Authorized Official	 		 	Date
			
	 Arie Belldegrun
	 		 	
	Printed Name	 		 	
			
	 Chairman, President and Chief Executive Officer
	 		 	
	Title	 		 	

  

									
					
		 	I.	 	Official and Mailing Address for Agreement notices:	 		 	
					
		 		 	 Arie Belldegrun
	 		 	
		 		 	Name	 		 	
					
		 		 	 Chairman, President and Chief Executive Officer
	 		 	
		 		 	Title	 		 	
					
		 		 	Mailing Address	 		 	

  
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		 		 	 Kite Pharma, Inc.
	 		 	
					
		 		 	 10924 Le Conte Avenue
	 		 	
					
		 		 	 Los Angeles, CA 90024
	 		 	
					
		 		 	Email Address:	 	 arie@kitepharma.com
	 	
					
		 		 	Phone:	 	 310-824-9999 x201
	 	
					
		 		 	Fax:	 	 310-824-9994
	 	
			
		 	II.	 	Official and Mailing Address for Financial notices (the Licensee’s contact person for royalty payments)
					
		 		 	 Arie Belldegrun
	 		 	
		 		 	Name	 		 	
					
		 		 	 Chairman, President and Chief Executive Officer
	 		 	
		 		 	Title	 		 	
					
		 		 	Mailing Address	 		 	
					
		 		 	 Kite Pharma, Inc.
	 		 	
					
		 		 	 10924 Le Conte Avenue
	 		 	
					
		 		 	 Los Angeles, CA 90024
	 		 	
					
		 		 	Email Address:	 	 arie@kitepharma.com
	 	
					
		 		 	Phone:	 	 310-824-9999 x201
	 	
					
		 		 	Fax:	 	 310-824-9994
	 	

 Any false or misleading statements made, presented, or submitted to the Government, including any relevant omissions,
under this Agreement and during the course of negotiation of this Agreement are subject to all applicable civil and criminal statutes including Federal statutes 31 U.S.C. §§3801-3812 (civil liability) and 18 U.S.C.
§1001 (criminal liability including fine(s) or imprisonment). 

  
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 APPENDIX A – PATENT(S) OR PATENT APPLICATION(S) 

Patent(s) or Patent Application(s): 
  

	I.	[...***...] 

  

	II.	PCT Application No. PCT/US13/042162 filed May 22, 2013 entitled ‘‘Murine anti-NY–ESO–1 T cell receptors’’ [HHS Ref No. E–105–2012/0–PCT–02] 

  
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 APPENDIX B – LICENSED FIELD OF USE AND TERRITORY 

 

	I.	Licensed Field of Use: 

  

	a)	Development, manufacture and commercialization of New York Esophageal Antigen-1 (“NY-ESO-1”) T cell receptor (TCR)-based autologous peripheral blood T cell therapy product as set forth in the Licensed
Patent Rights for the treatment of NY–ESO–1-expressing cancers. 

  

	b)	For purposes of this Agreement, “autologous peripheral blood T cell therapy products” shall mean T cell or precursor products and compositions derived from blood, bone marrow, lymph nodes and thymus
and, for the avoidance of doubt, shall exclude tumor-infiltrating lymphocytes (TILs). 

  

	c)	If NIH receives a license application with a complete commercial development plan from a third party for commercial development of a Licensed Product(s) or Licensed Processes, as they pertain to
Licensed Patent Rights for which the proposed commercial development is not reasonably addressed in Licensee’s then-current Commercial Development Plan, NIH shall notify Licensee, in writing, of the existence
of the third party’s license application, identifying the scientific, clinical or technical basis for its belief that such commercial development should occur. Upon receipt of such written notice, Licensee shall either: (a) within
one-hundred and eighty (180) days amend its Commercial Development Plan in a manner reasonably acceptable to NIH to include a clinical research and development program for the proposed third party’s commercial development of
said Licensed Product(s) or Licensed Processes including revised Benchmarks, acceptance of said amendment to said Commercial Development Plan by NIH shall take into account Licensee’s ongoing
efforts and normal drug development standards for obtaining FDA approval for multiple indication prophylactic and therapeutic products; or (b) amend its Commercial Development Plan within one-hundred and eighty (180) days in
a manner reasonably acceptable to NIH to include an offer to enter into a commercially reasonable and customary joint pre-clinical research and development program with the third party for the proposed third party’s commercial
development of said Licensed Product(s) or Licensed Processes; or (c) within one-hundred and eighty (180) days offer to grant a sublicense under commercially reasonable and customary terms to said third party under
Licensed Patent Rights; or both (b) and (c). If Licensee does not (a) amend its Commercial Development Plan in a manner reasonably acceptable to NIH to include a clinical research and development program for the
proposed commercial development of said Licensed Product(s) or Licensed Processes of such third party including revised Benchmarks; or (b) amend its Commercial Development Plan in a manner reasonably acceptable to
NIH to include a joint pre-clinical research and development program with the third party for the proposed commercial development of said Licensed Product(s) or Licensed Processes; or (c) grant a sublicense within one
hundred eighty (180) days under commercially reasonable terms to said third party under Licensed Patent Rights, for such commercial development; or both (b) and (c), NIH shall remove said Licensed Product(s) or
Licensed Processes from Licensed Fields of Use in this Agreement, NIH shall be free to license said Licensed Product(s) or Licensed Processes to said third party solely for the unaddressed indication(s) that
were the subject of such license application, and Licensee’s Licensed Product(s) or Licensed Processes from Licensed Fields of Use shall be limited to the remaining indications. 

 

	II.	Licensed Territory: 

 Worldwide 

  
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 APPENDIX C – ROYALTIES 

Royalties: 
  

	I.	The Licensee agrees to pay to the NIH a noncreditable, nonrefundable license issue royalty in the amount of one hundred and fifty thousand dollars ($150,000.00) in two installments as follows:

  

	 	(a)	The first installment of one hundred thousand dollars ($100,000) shall be payable within sixty (60) days from the effective date of this Agreement; and 

 

	 	(b)	The second installment of fifty thousand dollars ($50,000) shall be payable (i) on or before the eighteen (18) month anniversary of the effective date of this Agreement or (ii) on or before
the termination date of this Agreement, whichever occurs sooner. 

  

	II.	The Licensee agrees to pay to the NIH a nonrefundable minimum annual royalty in the amount of twenty thousand dollars ($20,000.00) as follows: 

 

	 	(a)	The first minimum annual royalty is due within sixty (60) days following the expiration date of Cooperative Research and Development Agreement (CRADA) Ref. No. C-064-2012/0 (NCI Ref. No. 02716) between the
National Cancer Institute (NCI) and the Licensee that includes further research and development of technologies related to the Licensed Patent Rights. This first minimum annual royalty may be prorated according to the fraction of
the calendar year remaining between the expiration date of the aforementioned CRADA and the next subsequent January 1; and 

  

	 	(b)	Subsequent minimum annual royalty payments are due and payable on January 1 of each calendar year and may be credited against any earned royalties due for sales made in that year. 

 

	III.	The Licensee agrees to pay the NIH earned royalties of [...***...] percent ([...***...]%) on Net Sales by or on behalf of the Licensee and its sublicensees, subject to the
following adjustment: 

  

	 	(a)	The Licensee shall be entitled to a credit of [...***...] percent ([...***...]%) against the earned royalty rate for each percent point in excess of [...***...] percent ([...***...]%) that
the Licensee must pay to an unaffiliated licensor for the manufacture, use, offer for sale, sale or import of Licensed Product(s). Said credit, however, shall not reduce the earned royalty due to NIH for Licensed
Product(s) below [...***...] percent ([...***...]%). 

  

	IV.	The Licensee agrees to pay the NIH Benchmark royalties within [...***...] of achieving each Benchmark: 

  

	 	(a)	Fifty thousand dollars ($50,000.00) upon commencement of the first Licensee-sponsored human clinical study for the first indication in the Licensed Field of Use. 

 

	 	(b)	[...***...] dollars ($[...***...]) for [...***...]. 

  

	 	(c)	[...***...] dollars ($[...***...]) for [...***...]. 

  

	 	(d)	[...***...] dollars ($[...***...]) for [...***...]. 

  
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	 	(e)	[...***...] dollars ($[...***...]) for [...***...]. 

  

	 	(f)	[...***...] dollars ($[...***...]) upon FDA approval or foreign equivalent for a Licensed Product or Licensed Process for the first indication in the Licensed Field of Use. A
foreign equivalent to the FDA (United States) shall mean the EMEA (Europe), Japanese Ministry of Health and Welfare (Japan), SFDA (China), or the Ministry of Health and Welfare (India). 

 

	 	(g)	[...***...] dollars ($[...***...]) upon[...***...]. A foreign equivalent to the FDA (United States) shall mean the EMEA (Europe), Japanese Ministry of Health and Welfare (Japan), SFDA (China),
or the Ministry of Health and Welfare (India). 

  

	 	(h)	The first time the aggregate Net Sales of all Licensed Products achieve the following thresholds, the Licensee pays the following one-time Benchmark royalties: 

 

	 	(1)	[...***...] dollars ($[...***...]) when the aggregate Net Sales of all Licensed Products reaches [...***...] dollars ($[...***...]). 

 

	 	(2)	[...***...] dollars ($[...***...]) when the aggregate Net Sales of all Licensed Products reaches [...***...] dollars ($[...***...]). 

 

	 	(3)	[...***...] dollars ($[...***...]) when the aggregate Net Sales of all Licensed Products reaches one billion dollars ($1,000,000,000.00). 

For purposes of this Agreement, “successful completion of a Licensee-sponsored Phase 3 clinical study” shall mean,
with respect to a specified construct, formulation and dose of a specified Licensed Product in a specified cancer indication, the statistical demonstration in a pivotal Phase 3 clinical study of safety and efficacy, sufficient to support
a BLA submission by the Licensee for such specified construct, formulation and dose of such specified Licensed Product for the treatment of such specified cancer indication. 

 

	V.	The Licensee agrees to pay the NIH the following additional sublicensing royalties on the fair market value of any consideration received for granting each sublicense in accordance with Article 4 of
this Agreement, within [...***...] of the execution of each sublicense: 

  

	 	(a)	[...***...] percent ([...***...]%) for a sublicense granted [...***...]. 

  

	 	(b)	[...***...] percent ([...***...]%) for a sublicense granted [...***...]. 

  

	 	(c)	[...***...] percent ([...***...]%) for a sublicense granted[...***...]. A foreign equivalent to the FDA (United States) shall mean the EMEA (Europe), Japanese Ministry of Health and Welfare
(Japan), SFDA (China), or the Ministry of Health and Welfare (India). 

  

	 	(d)	[...***...] percent ([...***...]%) for a sublicense granted [...***...]. A foreign equivalent to the FDA (United States) shall mean the EMEA (Europe), Japanese Ministry of Health and Welfare
(Japan), SFDA (China), or the Ministry of Health and Welfare (India). 

  
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 Such sublicense royalties are in lieu of, and not in addition to, the Benchmark royalties
and earned royalties on Net Sales above, and shall not exceed the following caps: 
  

	 	(1)	Sublicensing royalties on consideration received for events occurring [...***...]. 

  

	 	(2)	Sublicensing royalties on consideration [...***...]. 

  

	 	(3)	Sublicensing royalties on Net Sales consideration received shall not exceed the [...***...]. 

  

	VI.	The estimated amount of the royalty due under Paragraph 6.9 is Thirty Thousand dollars ($30,000) as of May 22, 2014. This is only a good faith estimate and Licensee will be responsible for reimbursement
of all unreimbursed expenses as stipulated in Paragraph 6.9. 

  
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 APPENDIX D – BENCHMARKS AND PERFORMANCE 

The Licensee agrees to the following Benchmarks for its performance under this Agreement and, within [...***...] of achieving a Benchmark, shall notify the NIH that the Benchmark has been achieved. 

The Licensee will initiate its first Phase 2 clinical study for the first Licensed Product for the first cancer
indication within the Licensed Field of Use within twenty (20) months after demonstration by the National Cancer Institute’s Surgery Branch within the NIH of the proof-of-concept of the first Licensed Product in such
cancer indication from the Licensed Field of Use, and the National Cancer Institute’s Surgery Branch within the NIH delivers to the Licensee the final clinical study report and all clinical data for the applicable clinical
study demonstrating proof of concept. 
 The Licensee will initiate its first Phase 2 clinical study for the first
Licensed Product for any additional cancer indication (after the first cancer indication) within the Licensed Field of Use within [...***...] to [...***...] after demonstration by the National Cancer Institute’s
Surgery Branch within the NIH of the proof-of-concept of the first Licensed Product in such cancer indication from the Licensed Field of Use, and the National Cancer Institute’s Surgery Branch within the NIH delivers
to the Licensee the final clinical study report and all clinical data for the applicable clinical study demonstrating proof of concept. 
  

	 	(a)	The Licensee will initiate its first Phase 3 clinical study for the first Licensed Product for the first cancer indication within the Licensed Field of Use within [...***...] after
successful completion of a Licensee-sponsored Phase 2 clinical study for the first Licensed Product in such cancer indication from the Licensed Field of Use. 

 

	 	(b)	The Licensee will initiate its first Phase 3 clinical study for the first Licensed Product for any additional cancer indication (after the first cancer indication) within the Licensed Field of
Use within [...***...] to [...***...] after successful completion of a Licensee-sponsored Phase 2 clinical study for the first Licensed Product in such cancer indication from the Licensed Field of Use.

 For purposes of this Agreement, “initiate” shall mean (i) with respect to a Phase 2 clinical
study, the Licensee, its Affiliate or sublicensee having filed a company sponsored IND necessary to commence such Phase 2 clinical study, and (ii) with respect to a Phase 3 clinical study, the Licensee, its
Affiliate or sublicensee having submitted to the FDA a pivotal clinical trial protocol for such Phase 3 clinical study. 

For purposes of this Agreement, “proof-of-concept” shall mean, with respect to a specified construct, formulation and dose of
a specified Licensed Product for the treatment of a specified cancer indication, the demonstration in a Phase 1/Phase 2A or Phase 2A clinical study of safety and efficacy, sufficient to enable the Licensee to commence multi-center
Phase 2 clinical studies without further studies, for such specified construct, formulation and dose of such specified Licensed Product for the treatment of such specified cancer indication. 

For purposes of this Agreement, “successful completion of a Licensee-sponsored Phase 2 clinical study” shall mean,
with respect to a specified construct, formulation and dose of a specified Licensed Product in a specified cancer indication, the statistical demonstration in multi-center Phase 2 clinical studies of safety and efficacy, sufficient to
enable the Licensee to commence pivotal Phase 3 clinical studies without further studies, for such specified construct, formulation and dose of such specified Licensed Product for the treatment of such specified cancer indication.

  
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 APPENDIX E – COMMERCIAL DEVELOPMENT PLAN 

[...***...] 

[...***...] As of the date of this licensee, NY-ESO-1 expressing tumors can be found in the following cancers: Sarcoma, Urothelial carcinoma, Esophageal
carcinoma, Lung (NSCLC), Breast carcinoma, Ovarian carcinoma, Prostate carcinoma, Multiple Myeloma, Hepatocellular carcinoma, Gastric cancer, Head and neck cancer, Pancreatic carcinoma, Brain cancer, Colorectal carcinoma, and Melanoma. 

[...***...] 
 [...***...] 

[...***...] 
 [...***...] 

  
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 APPENDIX F – EXAMPLE ROYALTY REPORT 

Required royalty report information includes: 
  

	•	 	OTT license reference number (L-XXX-200X/0) 

  

	•	 	Reporting period 

  

	•	 	Catalog number and units sold of each Licensed Product (domestic and foreign) 

  

	•	 	Gross Sales per catalog number per country 

  

	•	 	Total Gross Sales 

  

	•	 	Itemized deductions from Gross Sales 

  

	•	 	Total Net Sales 

  

	•	 	Earned Royalty Rate and associated calculations 

  

	•	 	Gross Earned Royalty 

  

	•	 	Adjustments for Minimum Annual Royalty (MAR) and other creditable payments made 

  

	•	 	Net Earned Royalty due 

 Example 

 

													
	 Catalog Number
	  	Product Name	  	 Country
	  	Units Sold	 	  	Gross Sales
(US$)	 
	 1
	  	A	  	US	  	 	250	  	  	 	62,500	  
	 1
	  	A	  	UK	  	 	32	  	  	 	16,500	  
	 1
	  	A	  	France	  	 	25	  	  	 	15,625	  
	 2
	  	B	  	US	  	 	0	  	  	 	0	  
	 3
	  	C	  	US	  	 	57	  	  	 	57,125	  
	 4
	  	D	  	US	  	 	12	  	  	 	1,500	  
		  		  		  				  	  
	  
	 
		  		  	 Total Gross Sales
	   
	  	 	153,250	  
		  		  	 Less Deductions:
	   
	  			
		  		  	 [...***...]
	   
	  	 	3,000	  
		  		  	 [...***...]
	   
	  	 	7,000	  
		  		  	 Total Net Sales
	   
	  	 	143,250	  
				
		  		  	 Royalty Rate
	   
	  	 	[...***...	]% 
		  		  	 Royalty Due
	   
	  	 	[...***...	] 
		  		  	 Less Creditable Payments
	   
	  	 	[...***...	] 
		  		  	 Net Royalty Due
	   
	  	 	[...***...	] 

  
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 APPENDIX G – ROYALTY PAYMENT OPTIONS 

The OTT License Number MUST appear on payments, reports and correspondence. 

Automated Clearing House (ACH) for payments through U.S. banks only 

The NIH encourages our licensees to submit electronic funds transfer payments through the Automated Clearing House (ACH). Submit your ACH payment
through the U.S. Treasury web site located at: https://www.pay.gov. Locate the “NIH Agency Form” through the Pay.gov “Agency List”. 

Electronic Funds Wire Transfers 
 The following
account information is provided for wire payments. In order to process payment via Electronic Funds Wire Transfer sender MUST supply the following information within the transmission: 

Drawn on a U.S. bank account via FEDWIRE should be sent directly to the following account: 

 

			
	Beneficiary Account:	  	[...***...]
	Bank:	  	[...***...]
	ABA#	  	[...***...]
	Account Number:	  	[...***...]
	Bank Address:	  	[...***...]
	Payment Details:	  	[...***...]
		  	[...***...]

 Drawn on a foreign bank account should be sent directly to the following account. Payment must be sent
in U.S. Dollars (USD) using the following instructions: 
  

			
	Beneficiary Account:	  	[...***...]
	Bank:	  	[...***...]
	SWIFT Code:	  	[...***...]
	Account Number:	  	[...***...]
	Bank Address:	  	[...***...]
	Payment Details (Line 70):	  	[...***...]
		  	[...***...]
		  	[...***...]
	Detail of Charges (line 71a):	  	[...***...]

  
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 Checks 

All checks should be made payable to “NIH Patent Licensing” 

Checks drawn on a U.S. bank account and sent by US Postal Service should be sent directly to the following address: 

National Institutes of Health (NIH) 

P.O. Box 979071 
 St. Louis, MO
63197-9000 
 Checks drawn on a U.S. bank account and sent by overnight or courier should be sent to the following address:

 US Bank 
 Government Lockbox
SL-MO-C2GL 
 1005 Convention Plaza 

St. Louis, MO 63101 
 Phone:
314-418-4087 
 Checks drawn on a foreign bank account should be sent directly to the following address: 

National Institutes of Health (NIH) 

Office of Technology Transfer 

Royalties Administration Unit 

6011 Executive Boulevard 
 Suite
325, MSC 7660 
 Rockville, Maryland 20852 

  
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