Document:

Exhibit 10.2

 

THIRD AMENDMENT TO LEASE

 

This Third Amendment
to Lease (this “Amendment”) is dated as of May 25, 2016, and is made by and between The Bubble Real Estate Company,
LLC, a California limited liability company (“Lessor”) and Capricor, Inc., a Delaware corporation (“Lessee”),
with reference to the following facts and circumstances:

 

A.         Lessor and
Lessee executed that certain Lease Agreement dated March 29, 2012 as subsequently amended with that certain First Amendment to
Lease dated June 13, 2013 and subsequently with that certain Second Amendment to Lease dated March 3, 2015 (collectively the “Lease”),
for the premises located at 8840 Wilshire Boulevard, 2nd Floor, Beverly Hills, California 90211.

 

B.          Lessor and Lessee wish to extend the term of the
Lease.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee agree as follows:

 

		1.	TERM. Article 2 of the Lease is hereby modified
to include the following:

 

		i.	2.b.2.3 Option to Extend Lease Term: Lessee is hereby granted and shall, if not then in
default under this Lease, have an option to extend the term of this Lease for an additional thirty (30) months (the “Second
Extended Term”) on the same terms, covenants, and conditions contained in this Lease, except that the rent to be paid by
Lessee to Lessor shall be as identified in paragraph 3.b.3.3.

 

		2.	EXERCISE OF OPTION TO EXTEND LEASE TERM:  Pursuant
to Article 2.b.2.3 of this Third Amendment to Lease, Lessee hereby exercises its option to extend the term of the Lease for an
additional thirty (30) months which shall commence July 1, 2016 and end December 31, 2018.

 

		3.	RENT. Article 3 of the Lease is hereby modified
to include the following:

 

		a.	3.b.3.3 - During the Second Extended Term:

 

		i.	Commencing July 1, 2016: Lessee agrees to pay Lessor
as rent for the Premises the sum of $22,995 at the beginning of each month.

 

		ii.	Commencing July 1, 2017: Lessee agrees to pay Lessor
as rent for the Premises the sum of $23,915 at the beginning of each month.

 

		iii.	Commencing July 1, 2018: Lessee agrees to pay Lessor
as rent for the Premises the sum of $24,872 at the beginning of each month.

 

		4.	Reaffirmation. As modified hereby, the Lease is
reaffirmed and ratified by the parties in its entirety.

 

    

     

    

  

	LESSOR	LESSEE
	 	 
	The Bubble Real Estate Company, LLC,	Capricor, Inc.,
	a California limited liability company	a Delaware corporation
	 	 
	By	/s/ Bill Sheinberg	 	By	/s/ Karen Krasney
	 	 	 	 	 
	Name:	Bill Sheinberg	 	Name:	Karen Krasney
	 	 	 	 	 
	Title:	Member	 	Title:	EVP, General Counsel

 

    	 	 	2Exhibit 10.3

 

*** Text Omitted and Filed Separately

Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 240.24b-2

 

SIGN AND RETURN ALL PAGES TO CIRM    CLIN2-08334

 

NOTICE OF AWARD – CLIN 2: CIRM Clinical
Trial Stage Projects

California Institute for Regenerative Medicine

 

Issue Date: June 16, 2016

 

	Award Number:	CLIN2-08334	Project Period Start:	04/01/2016
	Awardee Name:	Capricor, Inc	Project Period End (estimated):	10/31/2018
	Awardee ID:	PR-Y0027A-LA	 	 
	Principal Investigator:	Deborah Davis Ascheim	Total Award Amount:	$3,376,259
	 	 	 	 
	Project Title:	Phase I/II clinical trial known as “HOPE-Duchenne” using allogeneic cardiosphere-derived cells (CDC’s, CAP-1002) to treat patients with Duchenne muscular dystrophy (DMD) associated cardiomyopathy 

 

	Authorized Organizational Official and Address:	Official and Address to Receive Payments:
	
        AJ Bergmann

        VP of Finance

        8840 Wilshire Blvd. 2nd Floor

        Beverly Hills, CA 90211
	
        AJ Bergmann

        8840 Wilshire Blvd., #2nd Floor

        Beverly Hills, CA 90211

 

The California Institute for Regenerative Medicine (CIRM) hereby
awards the amount of $3,376,259 to Capricor, Inc (Awardee ID: PR-Y0027A-LA) in support of the above referenced project.
This award is made pursuant to the California Stem Cell Research and Cures Act (Health and Safety Code section 125290.10 et.
seq.) and is subject to terms and conditions referenced below. (Capitalized terms are defined in the CIRM Grants Administration
Policy for Clinical Stage Projects (GAP), a copy of which may be found on the CIRM website at: https://www.cirm.ca.gov/sites/default/files/files/funding_page/CIRM_Grants_Administration_Policy_for_Clinical_Stage_Projects.pdf.

 

In accepting this Award, the Awardee warrants to CIRM that any funds
expended under the Award will be for the purposes set forth in the approved Application and agrees to comply with all applicable
CIRM regulations and standards.

 

To accept this Award, the Principal Investigator and Authorized
Organizational Official must sign and return this Notice of Award (NOA) to CIRM by June 20, 2016. Payment will be issued only after
the fully signed NOA is received by CIRM. Award funds will be sent to the organization’s address listed above under Official
and Address to Receive Payments unless an updated address is provided in the box below. If the Applicant cannot accept the
award, including the legal obligation to perform in accordance with the provisions of this NOA, it should notify CIRM immediately.

 

If you have any questions about this award, please contact the CIRM
staff referenced on page 4.

 

	 	Updated Address to Receive Payments:

 

/s/ Romona Doyle, MD

Ramona Doyle, MD

Vice President, Therapeutics

California Institute of Regenerative Medicine

 

AWARD ACCEPTANCE: The Principal Investigator and Authorized Organizational
Official must sign below and return the entire NGA to CIRM to accept the Award.

 

     

     

    

  

	 	 	Principal Investigator	 	Authorized Organizational Official
	Name	 	Deborah Davis Ascheim	 	AJ Bergmann
	Signature	 	/s/ Deborah Davis Ascheim	 	/s/ AJ Bergmann
	Date	 	6/17/16	 	6/17/16

SIGN AND RETURN ALL PAGES TO CIRM CLIN2-08334

 

TERMS AND CONDITIONS:

 

		A.	This award is based on the application submitted to CIRM, and as approved by the Application Review Subcommittee of the Independent
Citizens' Oversight Committee (ICOC) on the above-titled project and is subject to the terms and conditions incorporated either
directly or by reference in the following:

 

		1.	The California Stem Cell Research and Cures Act (Health and Safety Code Section 125290.10 et. seq.) and regulations
adopted by the ICOC.

 

		2.	The CIRM Grants Administration Policy for Clinical Stage Projects (Title 17, California Code of Regulations, Section
100503), CIRM Intellectual Property Policy and Revenue Sharing Requirements for Non-Profit and For-Profit Grantees (Title 17,
California Code of Regulations. Sections 100600-100611), the CIRM Medical and Ethical Standards Regulations (Title 17,
California Code of Regulations, Sections 100010-1000120), and any subsequently adopted or amended applicable regulations.

 

		3.	For purposes of the CIRM Intellectual Property Policy and Revenue Sharing Requirements for Non-Profit and For-Profit Grantees
(Title 17, California Code of Regulations. Sections 100600-100611), the term “CIRM-Funded Technology” shall mean
the intra-coronary infusion of the allogenic cardiosphere-derived cell product known as CAP-1002 in patients who are being treated
for Duchenne muscular dystrophy-associated cardiomyopathy.

 

		4.	The terms and requirements detailed in CLIN 2: CIRM Clinical Trial Stage Projects.

 

		5.	The Operational Milestones (OM) and Suspension Events set forth in Appendix A to this NOA.

 

		6.	The Communications Plan set forth in Appendix B to this NOA.

 

		7.	Budget and payment detail set out below in “Award Detail.”

 

		8.	The Loan Election Agreement executed by the parties.

 

		B.	Noncompliance: If CIRM determines, in its sole discretion, that Awardee has not complied with the terms and conditions
of this award, CIRM may suspend or permanently cease Disbursements, or pursue other remedies as allowed by law as indicated in
section V.J, Failure of Compliance and Award Termination, of the GAP.

 

Please check the following website for updated policy documents:
http://www.cirm.ca.gov/cirm-operations/Regulations

 

    	 	Page 2 of 8	 

     

    

 

AWARD DETAIL (U.S. Dollars):

 

	 	 	Budget	 
	 	 	 	 
	Total CIRM-Funded Direct Project Costs	 	$	2,850,716	 
	 	 	 	 	 
	CIRM Facilities Costs	 	$	525,543	 
	CIRM Indirect Costs	 	$	0	 
	 	 	 	 	 
	TOTAL CIRM BUDGET	 	$	3,376,259	 
	 	 	 	 	 
	TOTAL AWARDEE CO-FUNDING	 	$	2,254,032	 

 

SIGN AND RETURN ALL PAGES TO CIRM     CLIN2-08334

 

DISBURSEMENT SCHEDULE:

 

	Payment #	 	Schedule Date	 	Amount	 
	1	 	Upon fully executed agreement [...***...]	 	$	2,000,000	 
	2	 	Upon completion of OM #1 [...***...]	 	$	1,100,000	 
	3	 	Upon completion of OM #2 [...***...]	 	$	276,259	 

 

*Any interest accrued by the Awardee from the Award payments
must be used for the CIRM Clinical Trial Stage Projects.

 

PROGRESS & FINANCIAL REPORTS SCHEDULE

 

	Report Type	 	Report Period	 	Due Date
	Quarterly Progress Report	 	Year 1 Q1  (04/01/2016 - 06/30/2016)	 	[...***...]
	Quarterly Financial Report	 	Year 1 Q1  (04/01/2016 - 06/30/2016)	 	[...***...]
	Quarterly Progress Report	 	Year 1 Q2  (07/01/2016 - 09/30/2016)	 	[...***...]
	Quarterly Financial Report	 	Year 1 Q2  (04/01/2016 - 09/30/2016)	 	[...***...]
	Quarterly Progress Report	 	Year 1 Q3  (10/01/2016 - 12/31/2016)	 	[...***...]
	Quarterly Financial Report	 	Year 1 Q3  (04/01/2016 - 12/31/2016)	 	[...***...]
	Quarterly Progress Report	 	Year 1 Q4 (01/01/2017 - 03/31/2017)	 	[...***...]
	Operational Milestone Progress Report	 	Operational Milestone (OM) #1	 	[...***...]
	Quarterly Financial Report 	 	Year 1 Q4  (04/01/2016 - 03/31/2017)	 	[...***...]
	Operational Milestone Financial Report	 	Operational Milestone (OM) #1	 	[...***...]
	Quarterly Progress Report	 	Year 2 Q1  (04/01/2017 - 06/30/2017)	 	[...***...]
	Quarterly Financial Report	 	Year 2 Q1  (04/01/2016 - 06/30/2017)	 	[...***...]
	Quarterly Progress Report	 	Year 2 Q2  (07/01/2017 - 09/30/2017)	 	[...***...]
	Quarterly Financial Report	 	Year 2 Q2  (04/01/2016 - 09/30/2017)	 	[...***...]
	Quarterly Progress Report	 	Year 2 Q3  (10/01/2017 - 12/31/2017)	 	[...***...]
	Quarterly Financial Report	 	Year 2 Q3  (04/01/2016 - 12/31/2017)	 	[...***...]
	Quarterly Progress Report	 	Year 2 Q4  (01/01/2018 - 03/31/2018)	 	[...***...]
	Operational Milestone Progress Report	 	Operational Milestone (OM) #2	 	[...***...]
	Quarterly Financial Report	 	Year 2 Q4  (04/01/2016 - 03/31/2018)	 	[...***...]
	Operational Milestone Financial Report	 	Operational Milestone (OM) #2	 	[...***...]
	Quarterly Progress Report	 	Year 3 Q1  (04/01/2018 - 06/30/2018)	 	[...***...]
	Quarterly Financial Report	 	Year 3 Q1  (04/01/2016 - 06/30/2018)	 	[...***...]
	Operational Milestone Progress Report	 	Operational Milestone (OM) #3	 	[...***...]
	Quarterly Progress Report	 	Year 3 Q3  (07/01/2018 - 10/31/2018)	 	[...***...]
	Quarterly Financial Report	 	Year 3 Q3 (04/01/2016 - 10/31/2018)	 	[...***...]
	Operational Milestone Financial Report	 	Operational Milestone (OM) #3	 	[...***...]

 

*Confidential Treatment Requested

 

    	 	Page 3 of 8	 

     

    

  

In the event that an Operational Milestone is met at the same time
that a quarterly report is due, Awardee shall only be required to submit the report for the Operational Milestone.

 

For an explanation of reporting requirements, please refer to the
Grants Administration Policy. Additional reporting requirements may include cases such as Suspension Events, substantial delays
in Operational Milestones, Clinical Advisory Panel requests for information and any other events that threaten the ability to meet
the terms of the award.

 

SIGN AND RETURN ALL PAGES TO CIRM CLIN2-08334

 

CIRM CONTACTS:

Michele Carter, Grants Management Specialist

Phone/Fax: [...***...]                              Email:
[...***...]

 

Lisa Kadyk, Senior Science Officer

Phone/Fax: [...***...]                              Email:
[...***...]

 

The CIRM home page is at http://www.cirm.ca.gov

 

CIRM Mailing Address:

 

California Institute for Regenerative Medicine

Attn: Michele Carter, Grants Management Specialist

1999 Harrison Street, Suite 1650

Oakland, CA 94612

 

    	 	Page 4 of 8	 

     

    

  

CIRM
USE ONLY: 6445-601-6047001/H&S Code 125291.20 Statutes 2004

 

    	 	Page 5 of 8	 

     

    

 

APPENDIX A - CLIN2-08334

 

NOTICE OF AWARD – CLIN 2: CIRM Clinical
Trial Stage Projects

California Institute for Regenerative Medicine

 

Operational Milestone achievement is an important indicator of progress
and will determine award disbursements. An initial disbursement will be made upon execution of this agreement to fund the work
needed to get to the first Operational Milestone. Subsequent funds will not be disbursed until each Operational Milestone is achieved.
Achievement of the final Operational Milestone determines the final award end date, which defines the period in which you can conduct
CIRM-funded activities and incur CIRM-funded expenditures. The Operational Milestones selected by CIRM are listed below.
These Operational Milestones will be used as a basis for award disbursement unless further modified with Prior Approval from CIRM.
Changes to Operational Milestones and/or Suspension Events shall be accomplished only by agreement of both parties via an amendment
to this NOA .

 

Operational Milestones (OM):

 

Total Patients: 24

 

	OM	 	Milestone	 	Projected Date	 	Project Period	 	Payment (% of Award)	 	Projected 

Payment Date
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Project start	 	Apr. 2016	 	Q1	 	
        $ 2,000,000

        (59%)
	 	June 2016
	 	 	 	 	 	 	 	 	 	 	 
	1	 	[...***...]	 	[...***...]	 	[...***...]	 	
        $ 1,100,000

        (33%)
	 	Within 30 days after reaching OM
	 	 	 	 	 	 	 	 	 	 	 
	2	 	[...***...]	 	[...***...]	 	[...***...]	 	
        $ 276,259

        (8%)
	 	Within 30 days after reaching OM
	 	 	 	 	 	 	 	 	 	 	 
	3	 	[...***...]	 	[...***...]	 	[...***...]	 	n/a	 	n/a
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total CIRM funds disbursed	 	$  3,376,259 	 	 

 

Suspension Events:

Any event that halts or terminates the planned project including
but not limited to:

		·	A failure to manufacture and release the cell product

		·	A clinical hold order issued by the FDA

 

The Awardee must immediately report
the occurrence of a Suspension Event to CIRM and can use CIRM funds for allowable Project Costs up to 30 days following the occurrence
of a Suspension Event after which the Awardee must use its own funding for the project. The Awardee must report to CIRM a plan
to resolve the issues associated with the Suspension Event within 30 days and then show evidence
that the Suspension Event has been resolved in order to re-initiate use of CIRM funds.

 

Notwithstanding the foregoing, it is acknowledged that the dates
listed in the foregoing schedule are projections and that the failure to achieve any milestone by the dates so indicated will not
constitute a default under the Award. However, as stated above, CIRM will not disburse additional funds under this Award until
that milestone is met.

 

*Confidential Treatment Requested

 

    	 	Page 6 of 8	 

     

    

  

APPENDIX B CLIN2-08334

 

NOTICE OF AWARD – CLIN 2: CIRM Clinical
Trial Stage Projects

California Institute for Regenerative Medicine

 

Communication Plan for CIRM-Funded Clinical
Trial

 

 

*Upon notification of an FDA Clinical Hold,
Sponsor must inform CIRM within 24 hrs. of receipt of the FDA notice. In cases where the FDA communicates issues or seeks information
for a potential clinical hold, Sponsor will inform CIRM concurrent with (i.e. within 24 hrs. of) their response to the FDA

 

		I.	SAE Reporting

 

Sponsor Reporting to CIRM

 

DSMB/DMC meetings will be conducted on a routine basis.
During each meeting, critical issues, unexpected problems and trends will be identified and discussed. The Awardee will have responsibility
for reporting any suspected adverse reaction to study treatment that is both serious and unexpected, and any event of impact to
the clinical project to CIRM concurrent with FDA notification. In addition, Awardee will provide a summary of safety events, in
coordination with the meetings of the DSMB/DMC.

 

Awardee Safety Reporting Contacts:

 

		·	Deborah Ascheim, Principal Investigator

Phone: (310) 358-3200; Email: [...***...]

		·	Brian Fedor, Clinical Study Manager

		·	Phone: (310) 358-3201; Email: [...***...]

 

CIRM Safety Reporting Contacts:

 

		·	Lisa Kadyk, Senior Science Officer

Phone/Fax: [...***...];
Email: [...***...]

		·	Ramona Doyle, M.D., Vice President of Therapeutics

Phone/Fax: [...***...];
Email: [...***...]

 

    	 	Page 7 of 8	 

     

    

  

		II.	Other Study Related Press Releases and Trial Hold “Crisis Reporting”

 

The Awardee Clinical Trials Operation Manager will have
primary responsibility of communication with CIRM overall project information, including study decisions and “crisis”
issues or other occurrences that may impact the conduct of the trial and to do so within 24 hours of determination by the DSMB/DMC.
Upon notification of an FDA Clinical Hold, Awardee will inform CIRM. CIRM will also be notified of an announced FDA audit within
7 business days, and other study related issues at least 5 business days advanced notice.

 

Any news releases and/or public statements related to this
CIRM grant will be approved by both sides to ensure consistency of message, however Awardee shall have the right to release such
statements and make such filings as it deems necessary to comply with Federal and State laws and regulations without the prior
consent of CIRM. In addition, once language has been approved by CIRM, Awardee shall have the right to use it in subsequent filings
or releases.

 

Awardee and CIRM agree to provide reasonable advanced notice
(at least 5 business days, if possible) of news releases and/or public statements related to this grant, to the other party, in
order to give the other party an opportunity to review and suggest edits to the content. However, both Awardee and CIRM retain
the ultimate right of authority regarding their external communications. Neither Awardee nor CIRM shall use the name of the other
party in public-facing documents, statements or presentations without the prior consent of an authorized individual within the
organization.

 

Management and Communications Contacts:

 

		·	For Awardee, the authorized individuals shall be the Authorized
Organizational Official for this award and Capricor Vice President of Finance AJ Bergmann ([...***...]; [...***...]),
and the Chief Financial Officer of Capricor, Leland Gershell ([...***...]) 

 

		·	For CIRM, the authorized individuals shall be the Sr. Director
of Public Communications, Kevin McCormack ([...***...]; [...***...]), and Vice President of Therapeutics, Ramona
Doyle, M.D. 

([...***...];[...***...])

 

		III.	Routine Communications

 

Awardee and CIRM will have a mutual commitment towards
maintaining communication between quarterly reports.

 

    	 	Page 8 of 8

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