Document:

Exhibit 10.36

 

*** Text Omitted and Filed Separately

Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 240.24b-2

 

AMENDED AND RESTATED 

EXCLUSIVE LICENSE AGREEMENT

 

 

This
Amended and Restated Exclusive License Agreement (“Restated Agreement”) is entered into and effective this
30th day of December, 2013 (“Amended Effective Date”) by and between Cedars-Sinai
Medical Center, a California nonprofit public benefit corporation (“CSMC”),
with offices at 8700 Beverly Boulevard, Los Angeles, California 90048-1865, and Capricor,
Inc., a Delaware corporation (“Licensee”), with offices
at 8840 Wilshire Blvd., 2nd Floor, Beverly Hills, California 90211.

 

R E C I T A L S

 

A. CSMC and Licensee
entered into an Exclusive License Agreement effective the 4th day of January, 2010 (“Original Effective Date”) and
a first and Second Amendment thereto dated February 25, 2013 and April 19, 2013, respectively (collectively, the “Original
Agreement”).

 

B. CMSC and Licensee
wish to further amend and restate the Original Agreement in its entirety and hereby enter into this Amended and Restated Exclusive
License Agreement on the terms set forth below (the “Restated Agreement”).

 

C. CSMC owns and/or
is entitled to grant license rights with respect to certain Patent Rights and Know-How (as defined below) invented or developed
in connection with research performed at CSMC’s Heart Institute, under the direction of Dr. Eduardo Marbán (“Marbán”).

 

D. Under the Original
Agreement, CSMC desired to have the Patent Rights and the Know-How developed, used and commercialized in the Field of Use (as defined
below) by Licensee, and Licensee desired to obtain an exclusive, worldwide license to conduct research in the Field of Use, and
to develop, manufacture, use and sell Products (as defined below) in the Field of Use, using the Patent Rights and the Know-How
in accordance with the terms of the Original Agreement. Such original intent of the parties is equally applicable to this Restated
Agreement. Other than the rights expressly granted by CSMC hereunder within the Field of Use, Licensee acknowledges that CSMC shall
retain all other rights with respect to the Patent Rights and the Know-How.

 

E. CSMC and Licensee
intend that the execution, delivery and performance of this Agreement by each party, and the consummation of the transactions contemplated
hereunder, shall not at any time threaten CSMC’s tax-exempt status under Section 501(c)(3) of the Internal Revenue Code and
Section 23701d of the California Revenue and Taxation Code, or cause CSMC to be in default under any of CSMC’s issued and
outstanding tax-exempt bonds.

 

    	 

    	 

    

 

Now,
Therefore, in consideration of the mutual covenants and premises herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto mutually agree to restate and amend the Original
Agreement in its entirety as follows:

 

		1.	Definitions

 

1.1“Affiliate”
or “Affiliates” shall mean any corporation, person or entity, which controls, is controlled by, or is under
common control with, a party to this Agreement without regard to stock or other equity ownership. For purposes hereof, the terms
“control” and “controls” mean the possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of a corporation, person or entity, whether through the ownership of voting securities, by contract
or otherwise.

 

1.2“Confidential
Information” shall mean any confidential or proprietary information furnished by one party (the “Disclosing Party”)
to the other party (the “Receiving Party”) in connection with this Agreement, including, without limitation, all specifications,
know-how, trade secrets, technical information, drawings, software, models, business information and patent applications pertaining
to the Patent Rights and Know-How, and as further provided in Section 10 hereof.

 

1.3“FDA”
shall mean the United States Food and Drug Administration, or any successor agency thereof.

 

1.4“Field
of Use” shall mean cardiac stem cells, cardiospheres and cardiosphere derived cells, including methods of obtaining,
culturing, delivering and modifying same, and any derivatives and products thereof.

 

1.5“Funding
Agencies” shall mean any public or private granting agencies which have provided funding to CSMC or to Marbán
for the development of any of the Patent Rights or Know-How prior to the Original Effective Date. For the sake of clarity, the
parties agree that Licensee shall not be considered a Funding Agency hereunder.

 

1.6“Future
Patent Rights” shall mean any patents and/or patent applications claiming Inventions other than those in Schedule A through
any use of the Patent Rights or Know-How licensed hereunder arising from work conducted by or under the direction of Marbán
at or on behalf of CSMC, alone or jointly with Licensee, and any patents and/or patent applications (including provisional
patent applications) in any other country corresponding to any of the foregoing, and all divisions, continuations, continuations-in-part,
reissues, reexaminations, supplementary protection certificates and extensions thereof, whether domestic or foreign, and any patent
that issues thereon. Future Patent Rights shall be owned (i) by CSMC if invented by CSMC; or (ii) jointly owned by CSMC and Licensee
if jointly invented by CSMC and Licensee. For the avoidance of doubt, Inventions that are the subject of a continuation-in-part
application that claims priority to the Patent Rights are licensed under this Agreement, and are not considered Future Patent Rights.

 

    	 

    	 

    

 

1.7 “Invention”
shall mean all unpatented, patentable and patented inventions, discoveries, designs, apparatuses, systems, machines, methods,
processes, uses, devices, models, composition of matter, technical information, trade secrets, know-how, codes, programs or configurations
of any kind which are in the Field of Use.

 

1.8“Know-How”
shall mean all technical information and data, whether or not patented, presently known or hereafter learned, invented, or
developed arising from work conducted by or under the direction of Marbán at or on behalf of CSMC that is useful in the
development and commercialization of a Product to the extent that such technical information and data are necessary or useful for
the use or practice of the Patent Rights, Future Patent Rights or Licensee Improvements, as permitted under this Restated Agreement.
Know-How includes, but is not limited to, information in the Field of Use described in Schedule B. Know-How is and shall remain
owned by CSMC.

 

1.9 “Licensee
Improvements” shall mean any and all processes, uses, designs, applications, methods and compositions-of-matter, indications,
improvements, enhancements and modifications in the Field of Use directly based upon or directly created using the Patent Rights
and/or Know-How and which were discovered or developed by or on behalf of Licensee (exclusive of work performed by CSMC or by Marbán
at or on behalf of CSMC) during the term of this Agreement; provided, however, that any of the foregoing created or developed
by or on behalf of Marbán in the premises leased or licensed to Licensee by CSMC, or otherwise outside of CSMC’s facilities
for or on behalf of Licensee, shall be also be deemed Licensee Improvements. Licensee Improvements shall be owned by Licensee.

 

1.10“Patent
Rights” shall mean the patents and/or patent applications described on Schedule A attached hereto, as the same
may be amended from time to time, and all patents and/or patent applications (including provisional patent applications) in any
other country corresponding to any of the foregoing, and all divisions, continuations, continuations-in-part, reissues, reexaminations,
supplementary protection certificates and extensions thereof, whether domestic or foreign, and any patent that issues thereon.
The Patent Rights are all owned by CSMC.

 

1.11“Product”
or “Products” shall mean any human therapeutics, diagnostics (including algorithms or any components thereof),
bioinformatics and any other human health care products and/or services in the Field of Use utilizing or derived in any manner
whatsoever from any of the Patent Rights, Know-How or Licensee Improvements, which Product(s), except for the license granted hereunder,
would infringe a Valid Claim, the Patent Rights or those Future Patent Rights licensed to Licensee.

 

1.12“Stand-Alone
Applications” shall mean any and all patents and patent applications describing processes, uses, designs, applications,
methods and compositions-of-matter, indications, improvements, enhancements and modifications and technical information that are
not directly based upon or directly created using the Patent Rights and/or Know-How and which were discovered or developed by or
on behalf of Licensee (exclusive of work performed by CSMC or by Marbán at or on behalf of CSMC) during the term of this
Agreement. For the avoidance of doubt, Marbán (or any other person with an 

 

    	 

    	 

    

 

appointment at CSMC)
may be an inventor or creator of the Stand-Alone Applications, provided that Marbán (or said person with an appointment
at CSMC) is acting solely at and on behalf of Licensee. The Stand-Alone Applications shall be owned by Licensee, and shall not
be considered Future Patent Rights or Know-How.

 

1.13“Territory”
shall mean the entire world.

 

1.14“Valid Claim”
shall mean a claim of an issued patent or pending patent application included within the Patent Rights or Future Patent Rights,
which claim has not (a) lapsed, been canceled or become abandoned, (b) been declared invalid or unenforceable by a non-appealable
decision or judgment of a court or other appropriate body or authority of competent jurisdiction, or (c) been admitted to be invalid
or unenforceable through reissue, disclaimer or otherwise, provided that (i) an unissued claim in a pending application shall cease
to be a Valid Claim beyond [...***...] from the priority date of the application in which it is pending (the “Cessation
Date”); (ii) if such claim is subsequently issued, such claim shall constitute a Valid Claim upon issuance; and (iii)
Licensee shall pay CSMC as a part of the next Royalty Report and payment due the amount of Royalties that would have been due on
the sales, if any, of Royalty Bearing Products that were made during the period commencing on the Cessation Date through the date
on which the Valid Claim was subsequently issued.

 

		2.	License

 

2.1Grant of
Exclusive Rights.  Subject to the terms of this Restated Agreement, CSMC hereby grants to Licensee, and Licensee hereby accepts
from CSMC, the exclusive, worldwide license, with the right to grant sublicenses (subject to the terms of Section 2.2 hereof),
during the term of this Restated Agreement (as provided in Section 6 hereof) to conduct research in the Field of Use using the
Patent Rights and Know-How and to develop, use, make, have made, practice, import, carry out, manufacture, have manufactured, offer
for sale, sell and/or have sold Products in the Field of Use in the Territory using the Patent Rights and Know-How. The foregoing
grant of exclusivity is made expressly subject to the following:

 

(a)All applicable
laws and regulations, including, without limitation, the requirements of federal law pertaining to the manufacture of products
within the United States;

 

(b)All applicable
rules of the Funding Agencies which have provided funding to CSMC or to any of its employees (including Marbán) for the
development of the Patent Rights and Know-How; and

 

(c)The following
non-exclusive rights to the Patent Rights and Know-How, which are retained by CSMC within the Field of Use:

 

(i)Subject
to Licensee’s right to prior review to determine the patentability thereof (which shall expire forty-five (45) days after
Licensee’s receipt thereof), the right to submit for publication the scientific findings from research conducted by or through
CSMC or its investigators (including Marbán) related to the Patent Rights and Know-How, and 

 

 

*Confidential Treatment Requested

 

    	 

    	 

    

 

in the event Licensee
determines that a patent shall be applied for, then CSMC shall refrain from submitting any such scientific findings for publication
for an additional thirty (30) days;

 

(ii)Except
as provided in subparagraph (d) of this Section 2.1, the right (A) to use any tangible or intangible information contained in the
Patent Rights or Know-How (so long as CSMC shall treat such information as Confidential Information and maintain its confidentiality
in accordance with Section 10 hereof), for CSMC’s internal teaching and other internal educationally-related and non-commercial
(except for charges to its own patients) clinical purposes, where clinical use does not involve a third party funding grant to
commercialize such information, (B) to obtain research funding for further study and development thereof from governmental and
other nonprofit organizations (including grant applications), and (C) to pursue a regulatory approval through the FDA, provided
that that a copy of any grant application or FDA submission is provided to Licensee, in confidence and for informational purposes
only, prior to submission; and

 

(iii)Except
as provided in subparagraph (d) of this Section 2.1, the right to conduct research using the Patent Rights, Future Patent Rights
and Know-How, and to develop, use, make, practice, carry-out, and otherwise exploit the Patent Rights, Future Patent Rights and
Know-How (so long as CSMC shall treat such information as Confidential Information and maintain its confidentiality in accordance
with Section 10 hereof) for CSMC’s internal research and non-commercial (except for charges to its own patients) clinical
purposes, where clinical use does not involve a third party funding grant to commercialize any Product.

 

(d)Except
as provided by Section 2.3 hereof, CSMC shall not, under any circumstances, grant and/or transfer any rights retained by CSMC under
Section 2.1(c) to any third party (other than to Licensee or, where required by applicable law, rule, regulation, governmental
policy or contract, to any Funding Agency or the United States Government) to commercialize Inventions or information related thereto
derived directly from the Patent Rights or Know-How in the Field of Use as a result of CSMC’s teaching and internal research
and clinical activities with respect to the Patent Rights and Know-How otherwise permitted by Sections 2.1(c)(ii) and (iii) above.

 

(e)Notwithstanding
any other provision hereof to the contrary, all rights to the Patent Rights, Future Patent Rights and Know-How outside of the Field
of Use are retained by CSMC.

 

2.2Right to
Sublicense or Assign Rights.  Licensee shall have the right to grant sublicenses or to assign any or all of the rights granted
hereunder consistent with this Agreement; provided, however, that Licensee shall not sublicense or assign its rights to
any part of the Patent Rights or Know-How licensed under this Restated Agreement, or assign its rights under this Restated Agreement,
to any entity which is not a recognized biopharmaceutical or pharmaceutical company which is either (a) listed on Schedule C
hereto, or (b) generally recognized in such industries and has a level of science, management and investors of such quality as
shall be acceptable to CSMC (each, an “Acceptable Assignee”) on the basis of CSMC’s prior written consent (which
consent shall not be unreasonably withheld). CSMC shall respond to Licensee’s request for consent within fifteen (15) business
days of receipt from 

 

    	 

    	 

    

 

Licensee of (i) a written
request for consent and (ii) the relevant information CSMC may need in assessing the request regarding the proposed transaction
and the potential sublicense or assignee, as the case may be. In order to preserve and protect the value of the Patent Rights and
Know-How, Licensee shall obtain the prior written consent of CSMC prior to entering into any sublicense or assignment with any
party who is not an Acceptable Assignee under clause (a) above. For the avoidance of doubt, Licensee does not need CSMC’s
written consent to enter into any sublicense or assignment with any party who is an Acceptable Assignee under clause (a) above.
Licensee shall also keep CSMC reasonably informed with respect to the progress of any relations entered into with any sublicenses
or assignments entered into by Licensee with any Acceptable Assignee (or any other party for whom CSMC has given its prior written
consent). As an express condition of any such sublicense or assignment, Licensee will be responsible for enforcing each sublicensee’s
obligations, any such assignee or sublicensee shall be required to agree in writing to be bound by commercially reasonable royalty
reporting and record keeping, indemnification and inspection provisions, and the applicable provisions of this Restated Agreement,
including, without limitation, those pertaining to the use of CSMC’s name and marks, indemnification of CSMC and the use
of CSMC’s Confidential Information under its sublicense and, in particular, royalty payment obligations due on such sublicensee’s
sales of Products. If Licensee shall conduct one or more audits of its sublicensees or assignees hereunder during the term hereof,
Licensee shall provide copies of all audit reports to CSMC on a timely basis. The covenants pertaining to the use of CSMC’s
name and marks, the indemnification of CSMC and the use of CSMC’s Confidential Information in any sublicense or assignment
shall run for the benefit of CSMC, who shall be expressly stated as being a third-party beneficiary thereof with respect to the
covenants set forth in this Restated Agreement. Licensee understands and agrees that none of its permitted sublicenses hereunder
shall reduce in any manner any of its obligations set forth in this Restated Agreement.

 

2.3Certain Future
Rights. The following shall pertain to Future Patent Rights in the Field of Use (“Future Rights”):

 

(a) Subject to the
rights and applicable rules of the Funding Agencies or the United States Government, and to the extent it would not impair or jeopardize
any efforts of CSMC to obtain domestic or foreign rights thereto, CSMC and Marbán shall provide Licensee with prompt written
disclosure of the Future Rights arising from work conducted by or under the direction of Marbán at or on behalf of CSMC.
Subject to the rights and applicable rules of the Funding Agencies, Licensee shall have, [...***...] after either (a)
receipt by Licensee of written notice from CSMC disclosing in adequate detail any such Future Rights, or (b) written notification
by Marbán to each of Licensee and CSMC disclosing in adequate detail any such Future Rights, the exclusive first right to
negotiate with CSMC to obtain one or more exclusive licenses to the Future Rights, upon such terms and conditions as shall be agreed
by the parties hereto, which terms and conditions shall include provisions for fair market value consideration for the grant of
any such licenses, which provisions shall not exceed the compensation terms set forth in this Restated Agreement. If Licensee declines
or fails to pursue, or if the parties fail to conclude negotiations for an exclusive license to, such Future Rights during the
[...***...] specified above (or such longer period as may be agreed to in writing by the parties), then CSMC shall have
the right to commence discussions with any other party concerning such Future Rights. For the avoidance of doubt, until CSMC and/or
Marbán

 

*Confidential Treatment Requested

 

    	 

    	 

    

 

has provided the aforementioned
written notice to Licensee and Licensee has had the opportunity to exercise its right of first negotiation, CSMC shall not disclose
or enter into any discussions with any third parties regarding the Future Rights. Subject to the provisions of this Section 2.3,
Licensee acknowledges and agrees that CSMC expressly retains and reserves: (i) any and all right, title and interest in and to
the Future Rights that are not jointly developed with Licensee and (ii) joint right, title and interest in and to the Future Rights
that are jointly developed with Licensee, whether or not in the Field of Use and, accordingly, no exclusive license to any of CSMC’s
Future Rights is granted to Licensee under this Restated Agreement. CSMC shall use its reasonable and continuing efforts during
the term of this Restated Agreement, in accordance with its policies and procedures, where appropriate, to file and maintain patent
applications claiming Inventions.

 

(b) Grant of Non-Exclusive
Rights.  Subject to the terms of this Restated Agreement, if CSMC and Licensee fail to agree upon the terms of an exclusive
license for Future Rights pursuant to Section 2.3(a) above, CSMC hereby grants to Licensee, and Licensee hereby accepts from CSMC,
a non-exclusive, worldwide license, with the right to grant sublicenses (subject to the terms of Section 2.2 hereof), during the
term of this Restated Agreement (as provided in Section 6 hereof) to conduct research in the Field of Use using the Future Rights
and to develop, use, make, have made, practice, import, carry out, manufacture, have manufactured, offer for sale, sell and/or
have sold Products in the Field of Use in the Territory using the Future Rights. Any Future Right to which a non-exclusive license
is granted to Licensee pursuant to this Section shall be subject to the Royalty provisions of Section 4.2, but if a Patent Royalty
pursuant to Section 1(b) of Schedule E is payable solely on account of a non-exclusively licensed Future Right, the royalty shall
be reduced to a reasonable amount mutually agreed upon by the parties; provided, however, that in the absence of an agreement,
the reduction will be at least [...***...] of the royalties that would otherwise be payable. The foregoing grant is made
expressly subject to the following:

 

(i)All applicable
laws and regulations, including, without limitation, the requirements of federal law pertaining to the manufacture of products
within the United States; and

 

(ii)All applicable
rules of the Funding Agencies which have provided funding to CSMC or to any of its employees (including Marbán) for the
development of the Future Rights.

 

2.4Stand-Alone
Applications. Licensee shall own all right title and interest in and to the Inventions claimed in any Stand-Alone Applications;
provided, however, that nothing in this Restated Agreement shall be deemed to allow or permit Licensee to file Stand-Alone Applications
for the purpose of avoiding its royalty obligations to CSMC. All Inventions disclosed in Stand-Alone Applications shall not be
the basis of any royalty or fee payments to CSMC under this Restated Agreement.

 

2.5License to
Use Improvements.  Licensee shall own Licensee Improvements, and hereby grants to CSMC the following nonexclusive, royalty-free,
fully paid-up rights and licenses to the Licensee Improvements:

 

*Confidential Treatment Requested

 

    	 

    	 

    

 

(a) Except
as provided below in this Section 2.5, the right and license to use any tangible or intangible information contained in the Licensee
Improvements (so long as CSMC shall treat such information as Confidential Information and maintain its confidentiality in accordance
with Section 10 hereof), for CSMC’s internal teaching and other internal educationally-related and non-commercial (except
for charges to its own patients) clinical purposes, where clinical use does not involve a third party funding grant to commercialize
such information, and to obtain research funding from Funding Agencies, provided that a copy of any grant application is provided
to Licensee, in confidence and for informational purposes only, prior to submission; and

 

(b)Except
as provided below in this Section 2.5, the right and license to conduct research using the Licensee Improvements (so long as CSMC
shall treat information concerning the License Improvements as Confidential Information and maintain its confidentiality in accordance
with Section 10 hereof), and to develop, use, make, practice and carry out the Licensee Improvements for CSMC’s internal
teaching and internal research and non-commercial (except for charges to its own patients) clinical purposes, where clinical use
does not involve a third party funding grant to commercialize any Product.

 

Except as provided
in Section 2.3 hereof, CSMC shall not, under any circumstances, grant and/or transfer any rights granted to CSMC under this Section
2.5 to any third party (other than to Licensee or, where required by applicable law, rule, regulation, governmental policy or contract,
to any Funding Agency or the United States Government) to commercialize Inventions in the Field of Use resulting directly from
the Licensee Improvements as a result of CSMC’s internal research and clinical activities with respect to the Licensee Improvements
otherwise permitted by Sections 2.5(a) and (b) above.

 

2.6Milestones.
 Licensee acknowledges that it is important to CSMC, and a requirement of the United States Government under Title 35, Section
203 of the United States Code, that Licensee pursue the development, commercialization and marketing of Products and otherwise
exercise commercially reasonable efforts to maximize the value of this Restated Agreement to CSMC. Licensee shall be deemed to
have exercised commercially reasonable efforts to maximize the value of this Restated Agreement to CSMC, and the milestone requirements
of this Section 2.6 shall be deemed to have been met, if Licensee meets the respective requirements set forth on Schedule D
hereto, with each such requirement being deemed a separate and independent condition (each, a “Milestone”). Within
sixty (60) days after each anniversary of the Original Effective Date, Licensee shall prepare and deliver to CSMC an annual written
report (to be certified by an executive officer of Licensee) indicating its compliance with the Milestones. If Licensee fails to
meet any annual Milestone designated in Schedule D hereto, CSMC may, at its option and as its sole remedy for Licensee’
breach of this Section 2.6, upon written notice to Licensee, convert the exclusive license granted under Section 2.1 hereof to
a non-exclusive license or to a co-exclusive license, or terminate the license as provided under Title 35, Section 203 of the United
States Code. Notwithstanding the foregoing, prior to CSMC exercising such option, Licensee shall have the opportunity to cure any
failure for a period of ninety (90) days after receipt of written notice from CSMC of its intent to exercise its option.

 

    	 

    	 

    

 

		3.	Representations And Warranties

 

3.1Rights to
Technology. Except for the rights, if any, of the Funding Agencies or the United States Government, CSMC represents and warrants
to Licensee that, to the best of its actual, current knowledge (without investigation outside of CSMC as to such representations
and warranties) (a) it has the right to grant the licenses in this Restated Agreement, (b) it has not granted licenses to the Patent
Rights or Know-How to any other party that would restrict the rights granted hereunder except as stated herein and (c) there are
no claims, judgments or settlements to be paid by CSMC with respect to the Patent Rights or Know-How or pending claims or litigation
relating to the Patent Rights or Know-How. Except for any potential or actual rights of Funding Agencies, the United States Government
or Licensee, CSMC is not aware that any additional rights or licenses are necessary for Licensee to exercise its licensed rights
granted by CSMC under this Restated Agreement.

 

3.2Limited Warranty.
CSMC makes no representation or warranty other than those expressly specified in this Restated Agreement. Licensee accepts
the Patent Rights and Know-How on an “AS-IS” basis. CSMC MAKES NO EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR OTHER ATTRIBUTES OF ANY OF THE PATENT RIGHTS OR KNOW-HOW.

 

3.3Rights Retained
by Funding Agencies. Licensee acknowledges that to the extent that the Patent Rights and Know-How have been developed in part
under one or more funding agreements (“Funding Agreements”) with one or more Funding Agencies, such Funding Agencies
have certain statutory, non-exclusive rights relative thereto for use for government purposes as well as regulatory or statutory
“march-in rights” (collectively, “Statutory Rights”). Licensee also acknowledges that to the extent that
the Future Patent Rights and Know-How may be developed in part under one or more Funding Agreements with one or more Funding Agencies,
such Funding Agencies may have certain Statutory Rights relative thereto. This Restated Agreement is explicitly made subject to
such Statutory Rights and, to the extent of any conflict between any such Statutory Rights and this Restated Agreement, such Statutory
Rights shall prevail.

 

		4.	Consideration

 

In consideration of
the execution and delivery by CSMC of this Restated Agreement, Licensee agrees as follows:

 

4.1License Fee.
Pursuant to the Original Agreement, Licensee paid to CSMC a non-refundable license fee in an amount [...***...], and
agreed to pay the costs, including attorneys’ fees and filing fees, actually incurred to the Original Effective Date by CSMC
in the prosecution of the Patent Rights.

 

4.2Payment of
Royalties. Licensee shall pay to CSMC certain royalties, which shall be determined and paid in accordance with Schedule
E hereto.

 

4.3Acknowledgement
of Fair Market Value. CSMC acknowledges and agrees that the royalties and other obligations of Licensee under this Restated
Agreement constitute fair market value for the rights granted to Licensee under this Restated Agreement based on arms’-length
negotiations with Licensee.

 

*Confidential Treatment Requested

 

    	 

    	 

    

 

4.4Licensee
Challenge of Patent Rights. Licensee acknowledges that an essential element of this Restated Agreement is to respect the intellectual
property rights of Licensor. Accordingly, Licensee agrees that if it directly or through a third party indirectly contests the
validity or enforceability of any Patent Rights or Future Patent Rights licensed or sublicensed to it by Licensor under this Restated
Agreement or assists any third party in doing so with respect to the Field of Use, Licensee: (i) agrees that Licensor may immediately
terminate any and all licenses granted to Licensee under this Restated Agreement or under any other agreement, provided, however,
that to the extent that Licensor does not terminate license rights granted to Licensee, the applicable rates for Royalties under
Schedule E hereto shall be doubled beginning from the time at which the relevant Patent Rights and/or Future Patent Rights are
challenged; (ii) agrees to disburse any and all proceeds received from any sublicense of the applicable Patent Rights and/or Future
Patent Rights throughout its duration to CSMC; and (iii) Licensee agrees to reimburse Licensor for all costs actually incurred
in connection with the applicable legal proceedings. In the event that all or any portion of this Section 4.4 is invalid, illegal
or unenforceable, then the parties will use their best efforts to replace the invalid, illegal or unenforceable provision(s) with
valid, legal and enforceable provision(s) which, insofar as practical, gives effect to the intent of this Section 4.4. Notwithstanding
anything contained in this Section 4.4, if Licensee is advised by legal counsel that it has the obligation under applicable law
to disclose prior art to the any applicable patent authority or office, such disclosure shall not be deemed a challenge for purposes
of this Section 4.4 and CSMC shall not have the right to terminate the licenses granted pursuant to this or any other agreement
and none of the other rights set forth above shall become effective.

 

		5.	Patent Rights

 

5.1Prosecution.
Commencing as of the Original Effective Date, Licensee shall assume, in coordination with CSMC, full responsibility for the
application, maintenance, reexamination, reissue, opposition and prosecution of any kind (collectively “Prosecution”)
relating to the Patent Rights in the Territory, including, but not limited to, payment of all costs, fees and expenses related
thereto. Subject to the approval of CSMC (which approval shall not be unreasonably withheld), Licensee shall have the right to
select counsel with respect to the responsibility assumed by Licensee in this Section 5.1, and Licensee shall diligently pursue
the Prosecution of the Patent Rights to the benefit of CSMC. For all purposes of the patent Prosecution, CSMC shall be the named
“client” of such patent counsel. Each party shall provide the other with copies of any and all material or communications
with the United States Patent and Trademark Office, or any foreign patent office, and CSMC shall be afforded the opportunity of
prior review and comment on such action or paper.

 

5.2Abandonment,
Disclaimers, Etc. Licensee shall obtain the prior written consent of CSMC (which consent shall not be unreasonably withheld),
prior to irrevocably abandoning, disclaiming, withdrawing, seeking reissue or allowing to lapse any material patent, patent application
or Licensee Improvements relating to the Patent Rights. In the event that Licensee shall elect to abandon the Prosecution or maintenance
of any patent or patent application included in the Patent Rights or Future Patent Rights, Licensee shall notify CSMC of such election
at least thirty (30) days before a final due date which would result in the irrevocable abandonment or bar of patentability of
the subject matter of the patent or patent application. In such event, CSMC may, at its sole option and expense, continue Prosecution
or maintenance of the patent application or patent. Licensee further agrees that it shall not file any continuation-in-part application
relating to the Patent Rights unless the additional disclosure or material to be included in the continuation-in-part application
is necessary or appropriate to support the patentability of a claim recited in a parent application on which the continuation-in-part
application is based. If CSMC disagrees with Licensee’s conclusion that such a filing or contemplated filing of a continuation-in-part
application is either necessary or appropriate to support the patentability of a claim recited or capable of being recited in a
patent application within fifteen (15) business days after receiving notice of filing or contemplated filing of continuation-in-part
application, then the matter shall be submitted for resolution to independent patent counsel mutually agreed upon by the parties,
who will determine whether a continuation-in-part application is necessary or appropriate in accordance with this Section 5.2.
Any decision made by such independent patent counsel shall be conclusive and binding on the parties hereto.

 

    	 

    	 

    

 

5.3Expenses.
Licensee shall pay all expenses resulting from its obligations in Section 5.1 hereof. CSMC shall exercise reasonable efforts
to cause Marbán (to the extent he is available and on CSMC’s staff as an employee) and other applicable CSMC employees
to cooperate fully with Licensee with respect to the Prosecution, maintenance and protection of the Patent Rights and Future Patent
Rights, and CSMC shall be reimbursed for all reasonable out-of-pocket expenses as such expenses are incurred.

 

		6.	Term And Termination

 

6.1Term. 
Unless earlier terminated as provided in Section 6.2 hereof, the term of this Restated Agreement shall be deemed to have commenced
on the Original Effective Date and shall expire, on a country-by-country basis, on the date upon which the last to expire of the
patents covering the Patent Rights or the Future Patent Rights. Upon such termination, Licensee shall be deemed to have a fully
paid-up license to any Know-How as provided in Section 2.1 herein.

 

6.2Termination.
Except as provided by Section 6.3 hereof, and in addition to the provisions of Section 4.4,

 

(a)this Agreement
shall automatically terminate upon the occurrence of any of the following events, unless waived by CSMC: (i) Licensee has substantially
ceased business operations; (ii) Licensee dissolves, liquidates or institutes any proceeding for the winding up of its business;
(iii) Licensee, pursuant to or within the meaning of Title 11 of the United States Code or any similar law of any jurisdiction
for the relief of debtors (each, a “Bankruptcy Law”): (A) commences a voluntary case in bankruptcy or any other action
or proceeding for any other similar relief under any Bankruptcy Law; (B) consents by answer or otherwise to the commencement against
it of an involuntary case of bankruptcy; (C) seeks or consents to the appointment of a receiver, trustee, assignee, liquidator,
custodian or similar official (collectively, a “Custodian”) of it or for all or substantially all of its assets; or
(D) makes a general assignment for the benefit of its creditors; or (iv) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that: (A) is for relief against Licensee in an involuntary case of bankruptcy against Licensee; (B) appoints
a Custodian of Licensee for all or substantially all of its assets; or (C) orders the liquidation of Licensee, and the order remains
unstayed and in effect for forty-five (45) days, or any dismissal, stay rescission or termination thereof ceases to remain in effect.

 

    	 

    	 

    

 

(b)CSMC shall
have the right, at its discretion, to terminate this Restated Agreement if the performance by either party to this Restated Agreement
of any term, covenant, condition or provision hereof (i) shall jeopardize (A) the licensure of CSMC, (B) CSMC’s participation
in the Medicare, Medi-Cal or other reimbursement or payment programs, (C) the full accreditation of CSMC by the Joint Commission
or any other state or nationally recognized accreditation organization, or (D) CSMC’s tax-exempt status or its tax-exempt
bonds; or (ii) is deemed illegal or unethical by any recognized governmental agency or body. Upon the occurrence of any of the
items set forth in this subparagraph (b), CSMC shall provide written notice to Licensee setting forth the reason for such termination
(which termination shall be effective immediately).

 

(c)CSMC shall
have the right, at its discretion, (i) to terminate this Restated Agreement upon thirty (30) days’ written notice from CSMC
if, within such thirty (30) day period Licensee shall fail to pay fully any royalty payment required by Section 4.2 hereof or Schedule
E hereto or (ii) to terminate this Restated Agreement upon ninety (90) days’ written notice from CSMC if, within such
ninety (90) day period Licensee shall fail to undertake commercially reasonable efforts to exploit the Patent Rights or the Future
Patent Rights in the Field of Use in the Territory, provided that if the parties cannot agree on whether commercially reasonable
efforts have been undertaken, determination of any alleged failure to undertake commercially reasonable efforts shall be submitted
for resolution to an Arbitrator mutually agreed upon by the parties whose decision shall be conclusive and binding upon the parties
hereto.

 

(d)CSMC shall
have the right, at its discretion, to terminate this Restated Agreement upon sixty (60) days’ written notice from CSMC if,
within such sixty (60) day period, Licensee shall fail to cure fully any breach or default of any material obligation under this
Restated Agreement as described in such written notice detailing the facts of such breach with reasonable specificity; provided,
however, that Licensee may avoid such termination if, before the end of such 60-day period (unless a longer cure period is
expressly provided herein), such breach or default has been cured by Licensee to the reasonable satisfaction of CSMC.

 

(e)Licensee
shall have the right, at its discretion, to terminate this Restated Agreement upon ninety (90) days’ written notice from
Licensee if, within such ninety (90) day period, CSMC shall fail to cure fully any breach or default of any material obligation
under this Restated Agreement as described in such written notice detailing the facts of such breach with reasonable specificity;
provided, however, that CSMC may avoid such termination if, before the end of such 90-day period, such breach or default
has been cured by CSMC to the reasonable satisfaction of Licensee.

 

    	 

    	 

    

 

(f)This Restated
Agreement shall terminate upon the mutual written agreement of the parties hereto (such termination to be effective as of
the date mutually agreed upon in such written agreement).

 

6.3Obligations
Upon Termination.  Upon any termination of this Restated Agreement pursuant to Section 6.2 hereof, nothing herein shall be
construed to release any party from any liability for any obligation incurred through the effective date of termination (e.g.,
confidentiality, reimbursement of patent expenses incurred prior to such date, etc.) or for any breach of this Restated Agreement
prior to the effective date of such termination. Licensee may, for a period of one (1) year after the effective date of such termination,
sell all tangible Products customarily classified as “inventory” that it has on hand at the date of termination, subject
to payment by Licensee to CSMC of the applicable royalty or royalties, as set forth in Schedule E; provided, that
any such action by Licensee does not subject CSMC to any of the occurrences set forth in Section 6.2(b) hereof.

 

6.4Effect of
Termination. In the event of any termination of this Restated Agreement pursuant to Section 6.2 hereof, where such termination
has not been caused by any action or inaction on the part of any sublicensee of Licensee or by any breach by such sublicensee of
its obligations under its sublicense from Licensee, such termination of this Restated Agreement shall be without prejudice to the
rights of each non-breaching sublicensee of Licensee and each non-breaching sublicensee shall be deemed to be a licensee of CSMC
thereunder, and CSMC shall be entitled to all rights, but shall not be subject to any obligations (other than the grant of license
and appurtenant obligations under this Restated Agreement to the extent provided for in such sublicense) of Licensee thereunder.
This Section 6.4, however, shall not be applicable if this Restated Agreement has been terminated under Section 6.2(b) under circumstances
where the application of this Section 6.4 would subject CSMC to any of the occurrences set forth in Section 6.2(b).

 

6.5Right to
Institute Legal Actions.  Notwithstanding the provisions of Section 6.2 hereof, CSMC, on the one hand, and Licensee,
on the other hand, may institute any other legal action or pursue any other remedy against the other party permitted by applicable
law if the other party does not substantially cure any breach or default of any material obligation as provided herein.

 

6.6Reversion
of Rights.  Notwithstanding anything to the contrary set forth herein (including, but not limited to, Section 5 hereof),
full responsibility for prosecution of the Patent Rights shall, at the option of CSMC (exercisable in its sole and absolute discretion),
and at its sole expense from the date of reversion, revert to CSMC upon any termination of this Restated Agreement.

 

		7.	Infringement By Third Parties

 

7.1 Notice. Promptly
upon learning of any infringement, misappropriation or other unauthorized use of the Patent Rights, Licensee shall notify CSMC.
Promptly upon learning of any infringement, misappropriation or other unauthorized use of the Patent Rights, CSMC shall notify
Licensee.

 

    	 

    	 

    

 

7.2Enforcement.
 Licensee shall have the first right and the obligation to enforce, at its sole expense, any Patent Rights and any Future Patent
Rights to the extent licensed hereunder against infringement by third parties and shall notify CSMC in writing in advance of all
such enforcement efforts. Upon Licensee’s undertaking to pay all expenditures reasonably incurred by CSMC, CSMC shall reasonably
cooperate in any such enforcement and, as necessary, join as a party therein. Licensee shall reimburse CSMC for all expenses, including
reasonable attorneys’ fees, incurred in connection with any such enforcement. In the event that Licensee does not file suit
against or commence settlement negotiations with a substantial infringer of Patent Rights or Future Patent Rights within ninety
(90) days of receipt of a written demand from CSMC that Licensee bring suit, then the parties will consult with one another in
an effort to determine whether a reasonably prudent licensee would institute litigation to enforce the patent in question in light
of all relevant business and economic factors (including, but not limited to, the projected cost of such litigation, the likelihood
of success on the merits, the probable amount of any damage award, the prospects for satisfaction of any judgment against the alleged
infringer, the possibility of counterclaims against the parties hereto, the impact of any possible adverse outcome on Licensee
and the effect any publicity might have on the parties’ respective reputations and goodwill). If, after such process, it
is determined that a suit should be filed and Licensee does not file suit or commence settlement negotiations forthwith against
the infringer, then CSMC shall have the right, at its own expense, to enforce any Patent Rights licensed hereunder on behalf of
itself and Licensee. Any amount recovered in any such action or suit, whether by judgment or settlement, shall be paid to or retained
entirely by whichever party brought the action, or where both parties participate in such action or suit, fifty percent (50%) of
all such amounts shall be allocated to each party, after first paying each party’s out-of-pocket expenses, including reasonable
attorneys’ fees.

 

7.3Defense Of
Patent Rights.  In the event that any Patent Rights or Future Patent Rights are the subject of a legal action seeking declaratory
relief or of any reexamination or opposition proceeding instituted by a third party, the parties agree to promptly consult with
each other concerning the defense of such actions or proceedings. If the parties agree that such defense should be undertaken,
then Licensee shall bear the expenses, including attorneys’ fees, associated with such defense and in any recoupment of expenses.
If the parties disagree, then the party desiring to defend the action or proceeding may proceed with such defense and will bear
its own expenses, and be entitled to all sums recovered.

 

		8.	Indemnification

 

8.1 (a) Indemnification
by Licensee.  Subject to Section 8.2 hereof, Licensee shall hold harmless, defend and indemnify CSMC and each of its officers,
directors, employees (including Marbán), agents and sponsors of the research (except Licensee) (each, an

 

    	 

    	 

    

 

“Indemnified Party”,
and collectively, the “Indemnified Parties”) from and against any and all claims, damages, losses, liabilities, costs
and expenses (including reasonable attorneys’ fees and expenses and costs of investigation, whether or not suit is filed)
suffered or incurred by any of the Indemnified Parties in any action, suit, litigation, arbitration or dispute of any kind (“Action”)
arising or resulting from any negligence or willful acts or omissions on the part of Licensee, its Affiliates or sublicensees in
connection with (a) their use the Patent Rights or Know-How and/or (b) the exercise of their rights hereunder or under any sublicense,
including, but not limited to (i) the preclinical development and clinical testing of Products, and (ii) the manufacture, sale,
use, marketing, or other disposition of Products developed, manufactured, sold, marketed, used or otherwise disposed of under this
Restated Agreement. As part of its obligations hereunder, Licensee shall defend any Action brought against any of the Indemnified
Parties with counsel of its own choosing and reasonably acceptable to CSMC, and neither CSMC nor any other Indemnified Party shall
enter into any settlement of any such Action without first obtaining prior approval of Licensee. Licensee shall pay all costs,
including attorney’s fees, incurred in enforcing this indemnification provision. Should CSMC or any other Indemnified Party
not afford Licensee the right to defend any such Action, or should CSMC or any other Indemnified Party not obtain the approval
of Licensee to any such settlement, Licensee shall have no obligation to indemnify CSMC or any other Indemnified Party hereunder.
Should Licensee fail to provide a defense for the Indemnified Parties as required hereunder, then Licensee shall reimburse CSMC
for its out-of-pocket expenses (including reasonable attorneys’ fees and expenses and costs of investigation) which are incurred
as a result of any investigation, defense or settlement relating to the foregoing, which reimbursement shall be made to CSMC upon
receipt by Licensee of invoices reflecting in reasonable detail such expenses incurred by CSMC.

 

(b) Insurance.
Licensee shall obtain and maintain insurance policies (including clinical trial insurance, products liability and general liability
policies at such time as is appropriate) which are reasonable and necessary to cover its activities and to comply with the indemnification
obligations set forth above. Such insurance policies shall name CSMC as an additional insured party, and shall provide for the
following minimum coverage amounts: (i) a minimum of [...***...] in coverage per occurrence for the general liability
policy; (ii) upon initiation of any human clinical studies of Products, Licensee shall have first obtained clinical trial insurance
coverage in a minimum of [...***...] per occurrence and [...***...]; and (iii) upon Licensee’s first
commercial, arms-length sale of a Product, Licensee shall have first obtained products liability insurance coverage in a minimum
of [...***...] per occurrence and [...***...] (each of the events described in subsections (ii) and (iii) shall
be referred to as a “Triggering Event”). Licensee shall provide CSMC with prompt written notice of any material change
in coverage under such policies. Within thirty (30) days of a Triggering Event (subject to extension if reasonably required) and
annually thereafter, Licensee shall provide CSMC with a certificate of insurance issued by the appropriate insurance company evidencing
the insurance coverage required by this Section 8.1(b), together with copies of the endorsement which specifies CSMC as an
additional insured and the declarations page for each such insurance policy. The certificate of insurance, endorsements and declarations
pages (and any renewals or replacements thereof), if required, shall be sent to CSMC by prepaid, first class, certified mail, return
receipt requested, at the following address: Cedars-Sinai Medical Center, Technology Transfer Office, 8797 Beverly Boulevard, Suite
206, Los Angeles, CA 90048.”

 

*Confidential Treatment Requested

 

    	 

    	 

    

 

8.2Notice of
Claim. CSMC shall promptly notify Licensee in writing of any claim or Action or material threat thereof brought against any
Indemnified Party in respect of which indemnification may be sought and, to the extent allowed by law, shall reasonably cooperate
with Licensee in defending or settling any such claim or Action. No settlement of any claim, Action or threat thereof received
by CSMC and for which CSMC intends to seek indemnification (for itself or on behalf of any other Indemnified Party) shall be made
without the prior joint written approval of Licensee and CSMC.

 

		9.	Use Of Names and Media Segments

 

9.1Licensee
shall not, unless as required by any law or governmental regulation, use the name of CSMC, and/or any of its trademarks, service
marks, trade names or fictitious business names or media segments owned by CSMC that are directly related to work conducted by
or under the direction of Marbán at CSMC without express prior written consent of the Vice President for Marketing and Communications
of CSMC, which shall not be unreasonably withheld. Further, prior to any reference by Licensee to the names or marks of CSMC in
any manner, Licensee shall provide CSMC with a writing reflecting the proposed reference so that CSMC can review the reference
within a reasonable period of time prior to the proposed use thereof by Licensee. CSMC shall review the request from Licensee and
shall endeavor to provide a response within five (5) business days of receiving the requisite information required in order to
review the request. This limitation includes, but is not limited to, use by Licensee in any regulatory filing, advertising, offering
circular, prospectus, sales presentation, news release or trade publication. Subject to compliance by Licensee with the foregoing,
which shall be deemed conditions precedent to any use of CSMC’s name or marks by Licensee, Licensee shall ensure that the
name of CSMC is used as scientifically or academically appropriate in the “byline” of any article, abstract, manuscript
or any other publication related to the subject matter hereof.

 

		10.	Confidentiality

 

10.1Non-Disclosure.
The parties hereto shall keep the terms of this Restated Agreement and all business and scientific discussions relating to
the business of the parties strictly confidential. All patient information to which a party is given access by the other party
shall be subject to the provisions of the Confidentiality of Medical Information Act (Cal. Civ. Code §§56, et
seq.) and the Health Insurance Portability and Accountability Act of 1996, and all regulations promulgated thereunder. It
may, from time to time, be necessary for the parties, in connection with performance under this Restated Agreement, to disclose
Confidential Information (including know-how) to each other. The Receiving Party (as defined in Section 1.2 hereof) shall keep
in strictest confidence the Confidential Information of the Disclosing Party (as defined in Section 1.2 hereof), using the standard
of care it normally uses for information of like character, and shall not disclose the Confidential Information to any third party
or use it except as expressly authorized by the prior written consent of the Disclosing Party or as otherwise permitted
by this Restated Agreement; provided, however, that Licensee may disclose the Confidential Information received from CSMC
to its Affiliates and sublicensees as shall be reasonably necessary to carry out the intent of this Agreement or any sublicense
granted by Licensee as contemplated by this Restated Agreement if, but only if, such Affiliates and/or sublicensees each execute
a confidentiality agreement containing confidentiality provisions no less restrictive than those confidentiality provisions contained
in this Section 10. The Receiving Party’s obligation hereunder shall not apply to Confidential Information that the Receiving
Party can show:

 

    	 

    	 

    

 

(a)Is or later
becomes part of the public domain through no fault or neglect of the Receiving Party;

 

(b)Is received
in good faith from a third party having no obligations of confidentiality to the Disclosing Party, provided that
the Receiving Party complies with any restrictions imposed by the third party;

 

(c)Is independently
developed, as established by written documentation existing prior to receipt of the Confidential Information, by the Receiving
Party without use of the Disclosing Party’s Confidential Information; or

 

(d)Is required
by law or regulation to be disclosed (including, without limitation, in connection with FDA filings, filings with another government
agency or as required under the California Public Records Act), provided that the Receiving Party uses reasonable efforts
to restrict disclosure and to obtain confidential treatment and provides notice, prior to disclosure, to the Disclosing
Party.

 

10.2Limits on
Permitted Disclosures. Each party agrees that any disclosure or distribution of the other party’s Confidential Information
within its own organization shall be made only as is reasonably necessary to carry out the intent of this Restated Agreement.
The parties further agree that all of their respective officers, employees, agents, representatives or approved sublicensees to
whom any Confidential Information is disclosed or distributed shall have agreed to maintain its confidentiality. In such event,
the Receiving Party shall identify with reasonable particularity, upon request by the Disclosing Party, each person within the
Receiving Party’s organization to whom the Receiving Party has disclosed or distributed Confidential Information.

 

10.3Legally
Required Disclosures. If a subpoena or other legal process concerning Confidential Information is served upon any party hereto
pertaining to the subject matter hereof, the party served shall notify the other party immediately, the other party shall cooperate
with the party served, at the other party’s expense, in any effort to contest the validity of such subpoena or other legal
process. This Section 10.3 shall not be construed in any way to limit any party’s ability to satisfy any disclosure of its
relationship with the other party required by any governmental authority.

 

10.4Patent Rights
as Confidential Information. The Patent Rights are understood by Licensee to be the Confidential Information of CSMC to the
extent “unpublished” as such term is construed under the United States Patent Laws. As such, Licensee’s confidentiality
obligations hereunder automatically extend to any and all Know-How and to any and all patent applications of CSMC relating to any
Patent Rights, Future Patent Rights and Know-How and to any and all communications with the United States Patent Office, and any
foreign patent office relating to any Patent Rights, Future Patent Rights or Know-How, subject to Section 10.1(a)-(d).

 

    	 

    	 

    

 

10.5Return of
Confidential Information. In the event of any termination of this Restated Agreement, the Receiving Party shall promptly return
all Confidential Information and any copies made thereof previously made available to the Receiving Party by the Disclosing Party,
except that the Receiving Party shall have the right to retain one copy of such Confidential Information in its legal files to
monitor its compliance under this Restated Agreement.

 

10.6Remedies.
Both parties acknowledge and agree that it would be difficult to measure damages for breach by either party of the covenants
set forth in this Section 10, and that injury from any such breach would be incalculable, and that money damages would therefore
be an inadequate remedy for any such breach. Accordingly, either party shall be entitled, in addition to all other remedies available
hereunder or under law or equity, to injunctive or such other equitable relief as a court may deem appropriate to restrain or remedy
any breach of such covenants.

 

		11.	Patent Marking

 

In the event any Product
is the subject of a patent under the Patent Rights or Future Patent Rights, Licensee shall mark all products made, sold or otherwise
disposed of by or on behalf of it or any of its sublicensees with the word “Patented” followed by the number of the
licensed patent. In such case, Licensee shall mark any Product made using a process or method covered by any such Patent Rights
or Future Patent Rights with the number of each such patent and, if such Product is covered by Future Patent Rights, Licensee shall
respond to any request or disclosure under Title 35, Section 287(b)(4)(B) of the United States Code by only notifying CSMC of the
request for disclosure. Notwithstanding the foregoing, Licensee shall not be required to mark its products pursuant to the foregoing
if Licensee is marking its products in accordance with its normal business practices and such practices are in accordance with
applicable marking laws.

 

		12.	Miscellaneous

 

12.1Notices.
 Any notice, request, instruction or other document required by this Restated Agreement shall be in writing and shall be deemed
to have been given (a) if mailed with the United States Postal Service by prepaid, first class, certified mail, return receipt
requested, at the time of receipt by the intended recipient, (b) if sent by Federal Express® or other overnight carrier, signature
of delivery required, at the time of receipt by the intended recipient, or (c) if delivered personally, addressed as follows:

 

in the case of CSMC to:

 

Cedars-Sinai Medical Center

8700 Beverly Boulevard

Los Angeles, California 90048-1865

Attention: Senior Vice President for Finance & CFO

 

    	 

    	 

    

 

with a copy to Vice President for Legal Affairs 

 

or in the case of Licensee
to:

 

Capricor, Inc.

8840 Wilshire Blvd., 2nd Floor

Beverly Hills, California 90211

Attention: [...***...]

 

with a copy to [...***...], Knobbe
Martens, 2040 Main Street, 14th Floor, Irvine, California 92614

 

or to such other address or to such other
person(s) as may be given from time to time under the terms of this Section 12.1.

 

12.2Compliance
with Laws.  Each party shall comply with all applicable federal, state and local laws and regulations in connection with its
activities pursuant to this Restated Agreement.

 

12.3Governing
Law.  This Restated Agreement shall be construed and enforced in accordance with the laws of the United States of America
and of the State of California, irrespective of choice of laws provisions. The parties agree that all actions or proceedings arising
in connection with this Restated Agreement shall be tried and litigated exclusively in the State and Federal courts located in
the County of Los Angeles, State of California. The parties hereby expressly consent to the personal jurisdiction of such courts.

 

12.4Waiver.
 Failure of any party to enforce a right under this Restated Agreement shall not act as a waiver of that right or the ability
to assert that right relative to the particular situation involved.

 

12.5Enforceability.
 If any provision of this Restated Agreement shall be found by a court of competent jurisdiction to be void, invalid or
unenforceable, the same shall be reformed to comply with applicable law or stricken if not so conformable, so as not to affect
the validity or enforceability of the remainder of this Restated Agreement.

 

12.6Modification.
 No change, modification, or addition or amendment to this Restated Agreement, or waiver of any term or condition of this
Restated Agreement, is valid or enforceable unless in writing and signed and dated by the authorized officers of the parties to
this Restated Agreement.

 

12.7Entire Agreement.
 This Restated Agreement and the Schedules hereto (which are incorporated herein by this reference as if fully set forth
herein) constitute the entire agreements among the parties with respect to the subject matter hereof and thereof, and replace and
supersede as of the date hereof and thereof any and all prior agreements and understandings, whether oral or written, between the
parties with respect to the subject matter of such agreements, including the Original Agreement.

 

 

*Confidential Treatment
Requested

 

    	 

    	 

    

 

12.8Successors.
 Except as otherwise expressly provided in this Restated Agreement, this Restated Agreement shall be binding upon, inures
to the benefit of, and is enforceable by, the parties and their respective heirs, legal representatives, successors and permitted
assigns.

 

12.9Construction.
 This Restated Agreement has been prepared, examined, negotiated and revised by each party and their respective attorneys,
and no implication shall be drawn and no provision shall be construed against any party to this Restated Agreement by virtue of
the purported identity of the drafter of this Restated Agreement or any portion thereof.

 

12.10Counterparts.
 This Restated Agreement may be executed simultaneously in one or more counterparts, each of which shall constitute one
and the same instrument. This Restated Agreement may be executed by facsimile.

 

12.11Attorneys’
Fees.  In the event of any action at law or in equity between the parties hereto to enforce any of the provisions hereof,
the unsuccessful party to such litigation shall pay to the successful party all reasonable costs and expenses, including reasonable
attorneys’ fees, incurred therein by such successful party; and if such successful party shall recover a judgment in any
such action or proceeding, such reasonable costs, expenses and attorneys’ fees may be included in and as part of such judgment.

 

12.12Assignment.
 This Restated Agreement shall be binding upon and shall inure to the benefit of each party and its respective successors
and permitted assigns. This Restated Agreement is personal to Licensee and only assignable by Licensee in accordance with Section
2.2. CSMC shall have the right to assign its rights hereunder as part of any reorganization or bond financing.

 

12.13Further
Assurances.  At any time and from time to time after the Original Effective Date, each party shall do, execute, acknowledge
and deliver, and cause to be done, executed, acknowledged or delivered, all such further acts, transfers, conveyances, assignments
or assurances as may be reasonably required to consummate the transactions contemplated by this Restated Agreement.

 

12.14Survival.
 The following sections shall survive any expiration or earlier termination of this Restated Agreement: Section 2.1(c) (retention
of certain non-exclusive rights by CSMC), Section 8 (“Indemnification”), Section 9 (“Use of Names”) and
Section 10 (“Confidentiality”). The provisions set forth in Schedule E also shall survive any expiration or
earlier termination of this Restated Agreement, to the extent set forth therein.

 

    	 

    	 

    

 

In
Witness Whereof, the parties have caused their duly authorized representatives to execute this Restated Agreement as
of the date first above written.

 

	 	LICENSEE”:
	 	 	 
	 	Capricor, Inc. 
	 	 	 
	 	 	 
	 	By: 	/s/ Karen Krasney
	 	 	 
	 	Name: 	Karen Krasney
	 	 	 
	 	Title: 	EVP General Counsel
	 	 	 
	 	Date: 1/9/2014	 
	 	 	 
	 	 	 
	 	“CSMC”:
	 	 	 
	 	Cedars-Sinai Medical Center, a California nonprofit public benefit corporation
	 	 	 
	 	By: 	/s/ Richard Katzman
	 	 	Shlomo Melmed, M.D. (Richard Katzman for)
	 	 	 Senior Vice President for
	 	 	 Academic Affairs
	 	 	 
	 	Date: 12/31/2013
	 	 	 
	 	 	 
	 	 	 
	 	By: 	/s/ Edward M. Prunchunas
	 	 	Edward M. Prunchunas
	 	 	 Senior Vice President for Finance
	 	 	 and CFO
	 	 	 
	 	Date: 12/30/2013

 

    	 

    	 

    

 

Schedule
Listing

 

Schedule APatent Rights

Schedule BKnow-How

Schedule CApproved Sublicensee/Assignee
Companies

Schedule DMilestones

Schedule ERoyalty Provisions

 

    	 

    	 

    

 

SCHEDULE
A

 

Patent
Rights

 

[...***...]

 

*Confidential Treatment
Requested

 

    	 

    	 

    

 

 

[...***...]

 

 

*Confidential
Treatment Requested

 

    	 

    	 

    

 

[...***...]

 

*Confidential
Treatment Requested

 

    	 

    	 

    

 

SCHEDULE
B

 

Know-How

 

 

[...***...]

 

1

SCHEDULE D

*Confidential Treatment Requested

 

    	 

    	 

    

 

SCHEDULE C

 

APPROVED SUBLICENSEE/ASSIGNEE
COMPANIES

 

[...***...]

 

 

1

SCHEDULE C

*Confidential Treatment Requested

 

    	 

    	 

    

 

SCHEDULE D

 

MILESTONES

 

1.Licensee
or its sublicensees shall expend at least the following amounts toward the development or promotion of at least one (1) Product
based on the Patent Rights and Technical Information:

 

[...***...]

 

 

 

1

SCHEDULE D

*Confidential Treatment Requested

 

    	 

    	 

    

[...***...]

 

 

 

 

 

2

SCHEDULE D

*Confidential Treatment Requested

 

    	 

    	 

    

 

SCHEDULE E

 

ROYALTY PROVISIONS

 

All capitalized terms
not otherwise defined in this Schedule E shall have the meanings ascribed to them in the Amended and Restated Exclusive
License Agreement to which this Schedule E is attached (the “Restated Agreement”).

 

1.Royalties.
Licensee shall pay, or cause to be paid, to CSMC aggregate royalty fees (each, a “Royalty” and collectively, the
“Royalties”) equal to the following percentage of the amount of the Gross Sales Price (as defined in Paragraph 6(a)
below) received by Licensee, its Affiliates or its sublicensees from the Sale (as defined in Paragraph 6(b) below) of Royalty Bearing
Products (as defined in Section 6(c) below) or Intellectual Property (as defined in Paragraph 6(d) below) to non-Affiliate parties.
The Royalty shall be determined as follows:

 

(a)For any jurisdictions
in which no Valid Claim exists, an amount equal to [...***...] for the Sale of Royalty Bearing Products or Intellectual
Property covered by the Patent Rights or Know-How in that jurisdiction (“the Know-How Royalty”). Licensee’s obligation
to pay a Know-How Royalty shall end as specified in Section 6.1 of the Restated Agreement; provided, however, that in no event
shall a Know-How Royalty be payable in any jurisdiction beyond [...***...] from the first commercial sale of a Royalty
Bearing Product in that jurisdiction.

 

(b)For any jurisdictions
in which a Valid Claim does exist, an amount equal to [...***...] for the Sale of Royalty Bearing Products or Intellectual
Property covered by the Patent Rights or Future Patent Rights in that jurisdiction (“the Patent Royalty”).

 

(c)An amount equal
to [...***...] of all cash payments, including upfront, technology access fees, lump sum and similar payments paid by
or received from any sublicensees or any Affiliate or non-Affiliate parties by Licensee in consideration for any sublicense or
other grant of rights under the Restated Agreement, excluding payments received by Licensee (i) solely for the purchase
of equity securities, (ii) as consideration for the sale of substantially all of Licensee’s assets, (iii) as sublicense royalty
payments made in connection with the sale of Royalty Bearing Products, so long as Licensee pays
or causes to be paid to CSMC Royalties on amounts received by Licensee’s sublicensees under the preceding subparagraphs of
this Paragraph 1 (including subparagraphs (a) and (b) hereof), (iv) as loans or in connection with the issuance of debt instruments,
(v) from third parties for costs related to general and administrative expenses, product and manufacturing development, co-development
activities, clinical trials, or research and development activities, or (vi) to be used for the costs of procuring intellectual
property rights from third parties which may be necessary for the development of Products.

 

 

1

SCHEDULE E

*Confidential Treatment Requested

 

    	 

    	 

    

 

(d) If the Sale
of any Royalty Bearing Product is covered by more than one Intellectual Property Right, multiple royalties shall not
be due to CSMC.

 

Licensee may not sell
Royalty Bearing Products to any distributor or other third party other than for a reasonable price arrived at through arms’-length
negotiations.

 

2.No
duplicative royalties.  Subject to the provisions of Paragraph 1(a) above,
in those circumstances in which a Royalty is payable to CSMC from the sale of a Royalty Bearing Product by an Affiliate or sublicensee
of Licensee, and in which a royalty is also payable to Licensee from the Sale of the same Royalty Bearing Product by the same Affiliate
or sublicensee, then Licensee shall not be required to pay a Royalty to CSMC with respect to the royalties so received by Licensee
on the same Royalty Bearing Product, if and to the extent the required royalty is received by CSMC from the Affiliate or sublicensee.
This exclusion is intended to avoid the payment of duplicative royalties, shall be strictly construed, and shall not apply to other
forms of compensation paid to Licensee by its Affiliates or sublicensees.

 

3.Suspension
of Obligations.

 

(a)In the
event that Licensee is legally prevented from commercializing one or more Products as a result of patent infringement issues relating
to the Patent Rights, all of Licensee’s obligations with respect to such Products, including, without limitation, Royalty
and other payment obligations under this Schedule E, milestone and diligence obligations related to that particular Product
in that jurisdiction, shall be suspended unless and until such patent infringement issues are resolved. In the event that any such
issues are not resolved during the term of the Restated Agreement, or in the event that such issues are resolved in a manner that
would continue to prevent Licensee from commercializing such Products, then Licensee shall have no further obligations hereunder
with respect to such Products.

 

(b)In the
event that Licensee Improvements result in the development and commercialization of new or improved technology, to the point that
the commercially available Product(s) no longer (i) infringe upon any Valid Claims or claims embodied in the Patent Rights, (ii)
utilize any Know-How or (iii) embody the original processes, methods, designs, or applications that were commercialized based on
the Patent Rights or Know-How, then the Royalty rate shall be reduced to [...***...] for such Product(s).

 

4.Payment
and Accounting.

 

(a)Payment Terms
and Reports.  Royalties on account of sales by Licensee shall accrue and be payable to CSMC by Licensee on a quarterly basis
within [...***...] following the end of each calendar quarter in which any Sale of a Royalty Bearing Product by Licensee
occurs. Licensee shall use the standard royalty reporting form set forth in Schedule F hereto. Royalties on account of sales or
payments made by a sublicensee shall accrue and be payable to CSMC by Licensee on a quarterly basis within [...***...]
following the end of the calendar quarter in which payment is received by Licensee from a sublicensee. Each payment of Royalties
shall be accompanied by a statement setting forth in reasonable detail (i) with respect to Sales of Royalty Bearing Products, the
number and each type of Royalty Bearing

 

2

SCHEDULE D

*Confidential Treatment Requested

 

    	 

    	 

    

 

Product sold and the
Gross Sales Price applicable thereto, (ii) with respect to Sales of Intellectual Property, the nature of the Sale and revenues
applicable thereto, and (iii) such additional details as may be reasonably requested by CSMC for the determination of Royalties
payable hereunder. The Royalty Bearing Products shall be considered as being sold for the purpose of the calculation of royalties
under this Restated Agreement when the Products have been invoiced. Except as otherwise provided in Paragraph 4(c) of this Schedule
E, all Royalties shall be paid in United States dollars and shall be made without off set (except as expressly provided in
Paragraph 5 below) and free and clear of (and without any deduction or withholding for) any taxes, duties, levies, imposts or similar
fees or charges.

 

(b)Records and
Audits. Licensee shall create and maintain complete and accurate records and documentation concerning all Sales of Royalty
Bearing Products or Intellectual Property by Licensee, its Affiliates and sublicensees in sufficient detail to enable the Royalties
payable hereunder to be determined. Licensee shall retain such records and documentation for not less than seven (7) years from
the date of their creation. During the term of this Restated Agreement and for a period of three (3) years thereafter, CSMC and
its representatives shall have the right to audit such records and documentation as shall pertain to the determination and payment
of Royalties. Such examiners shall have reasonable access during regular business hours to Licensee’s offices
and the relevant records, files and books of account, and shall have the right to examine any other records reasonably necessary
to determine the accuracy of the calculations provided by Licensee under this Schedule. The costs of any such audit shall be borne
by CSMC, unless as a result of such inspection it is determined that the amounts payable by Licensee for any period are in error
by greater than five percent (5%), in which case the costs of such audit shall be borne by Licensee. CSMC shall report the results
of any such audit to Licensee within forty-five (45) days of completion. Thereafter, Licensee shall promptly pay to CSMC the amount
of any underpayment discovered in such audit, or CSMC shall credit to Licensee against future Royalty payments the amount of any
overpayment discovered in such audit, as the case may be. In addition, Licensee shall pay interest on any underpayment at the rate
that is the lower of (i) five percent (5%) over the rate of interest announced by Bank of America in Los Angeles, California (or
any successor in interest thereto or any commercially equivalent financial institution if no such successor exists) to be its “prime
rate”, or (ii) the highest rate permitted by applicable law, from the date such amount was underpaid to the date payment
is actually received.

 

(c)Currency Transfer
Restrictions.  If any restrictions on the transfer of currency exist in any country or other jurisdiction so as to prevent
Licensee from making payments to CSMC, Licensee shall take all commercially reasonable steps to obtain a waiver of such restrictions
or to otherwise enable Licensee to make such payments. If Licensee is unable to do so, Licensee shall make such payments to CSMC
in a bank account or other depository designated by CSMC in such country or jurisdiction, which payments shall be in the local
currency of such country or jurisdiction, unless payment in United States dollars is permitted. Any payment by Licensee to CSMC
on the basis of Sales of Royalty Bearing Products or Intellectual Property in currencies other than United States dollars shall
be calculated using the appropriate foreign exchange rate for such currency quoted in the California edition of The Wall Street
Journal for the close of business of the last banking day of the calendar quarter in which such payment is being made.

 

3

SCHEDULE D

 

 

    	 

    	 

    

 

(d)Late Charges.
 A service charge of five percent (5%) per month, not to exceed the maximum rate allowed by applicable law, shall be payable
by Licensee on any portion of Licensee’s outstanding Royalty balance that is not paid to CSMC within thirty (30) days past
the due date.

 

(e)Taxes. Licensee
shall pay, or cause to be paid, any and all taxes required to be paid or withheld on any sales, licenses or other transfers for
value of Royalty Bearing Products or Intellectual Property (other than taxes imposed on the income or revenues of CSMC); provided,
however, that under no circumstances shall the amounts of such taxes be deducted from the total amount of payments otherwise
due to CSMC hereunder. Upon CSMC’s request, Licensee shall secure and send to CSMC proof of any such taxes withheld and paid
by Licensee, its Affiliates or sublicensees.

 

5.Right
of Offset.  In the event that Licensee reasonably determines that any Royalty Bearing Product infringes upon the rights of
a third party (because of the use of the Patent Rights or the Know-How in the manufacture, use or sale of such Royalty Bearing
Product) and, as a result, Licensee becomes obliged to obtain a license from such third party to such rights, then, in lieu of
any other right or remedy, Licensee shall have the right to deduct from the Royalties otherwise payable hereunder with respect
to such Royalty Bearing Product the amount, up to a maximum of [...***...] of the Royalties otherwise payable, that Licensee
is obliged to pay under the license in order to obtain from the third party whose rights are so infringed the right to such Royalty
Bearing Product.

 

6.Certain
Definitions.

 

(a)“Gross
Sales Price” means the gross amount of all revenues (whether in the form of cash, property or otherwise) received by Licensee,
its Affiliates or sublicensees from the sale, license or other transfer for value of Royalty Bearing Products or Intellectual Property
less (but only to the extent separately itemized as a part of the gross price charged): (i) transportation, handling, insurance
and sales taxes, and (ii) rebates and other allowances actually paid or allowed and which are standard and customary in the industry;
provided, however, that no deduction shall be made for royalties, commissions, costs of collection or similar items payable
with respect to the Royalty Bearing Products or Intellectual Property. For the purposes of the definition of “Gross Sales
Price”, it is acknowledged and agreed by the parties that Sales to wholly-owned subsidiaries of Licensee shall not be included.

 

		(b)	“Sales” means the sale, license or other transfer for value.

 

		(c)	“Royalty Bearing Products” means (i) any
Product that is covered by a Valid Claim of any of the Patent Rights or Future Patent Rights, or (ii) any Product that, although
not covered by a Patent Right or Future Patent Right, includes or embodies, as a part of such Product, Know-How that is licensed
to Licensee hereunder.

 

		(d)	“Intellectual Property Right” means the
Patent Rights, Future Patent Rights and Know-How.

 

4

SCHEDULE E

*Confidential Treatment Requested

 

    	 

    	 

    

 

Schedule F

Royalty Reporting Form

 

Licensee name:

Reporting period:

Date of report:

Date of first commercial sale:

 

Royalty Report

	Product (list products by name)	No. units sold	Invoiced price per unit	Gross sales	Allowable deductions (attached itemized detail)	Country of sale/foreign currency/ conversion rate	Net sales
	Product name	 	 	 	 	 	 
	Product name	 	 	 	 	 	 
	Product name	 	 	 	 	 	 
	Total	 	 	 	 	 	 

 

	Total net sales	$
	Royalty rate	 
	Royalty due	$

 

Total royalty due: $___________________________

 

Non-Royalty Sublicense
Revenue Report

	Total Non-Royalty Sublicense Revenue received	$
	Date received	 
	Applicable percentage payable to CSMC	 
	Total Non-Royalty Sublicense Revenue payable to CSMC	$

 

 

Report prepared by:

Title:

Date:

 

Please send report to:

Cedars-Sinai Medical Center

8700 Beverly Boulevard

 

1

SCHEDULE F

 

    	 

    	 

    

Los Angeles, California 90048-1865

Attention: Senior Vice President for Finance & CFO

with a copy to Vice President for Legal Affairs

 

Please send electronic copy to CSTechTransfer@cshs.org.

 

 

2

SCHEDULE FExhibit 10.37

 

*** Text Omitted and Filed Separately

Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 240.24b-2

 

COLLABORATION AGREEMENT AND LICENSE OPTION

 

This Collaboration
Agreement and License Option (this “Agreement”), dated as of December 27, 2013 (the “Effective Date”),
is made by and between Capricor, Inc., a Delaware corporation, having its principal place of business at 8840 Wilshire Boulevard,
2nd Floor, Beverly Hills, California 90211 (“Capricor”), and Janssen Biotech, Inc., a Pennsylvania
corporation, and having an office at 800/850 Ridgeview Drive, Horsham, Pennsylvania 19044 (“JBI”). Capricor
and JBI are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

WHEREAS, Capricor
is a biotechnology company that conducts pharmaceutical research, development, and manufacturing;

 

WHEREAS, Capricor
is developing certain products containing CDCs and CAP-1002 (each as defined below) for the treatment, diagnosis or prevention
of cardiac diseases, disorders, and conditions and other therapeutic use, has access to intellectual property rights to certain
CDCs and Cardiospheres (as defined below), and has developed extensive know-how relating to the manufacturing of such CDCs and
Cardiospheres and data from pre-clinical and clinical studies of CDCs and Cardiospheres;

 

WHEREAS, JBI
has existing pharmaceutical research, development, manufacturing, importing, exporting, commercialization, and selling capabilities;

 

WHEREAS, Capricor
and JBI each desire to collaborate to develop CDC Cells and CDC Products (as defined below), in accordance with the terms and conditions
set forth below.

 

NOW, THEREFORE,
in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and intending to be legally bound, the Parties hereto agree as follows:

 

1.                 
DEFINITIONS.

 

The following terms and their correlatives
have the following meanings:

 

1.1.           
“Affiliate” means any corporation or other entity which directly or indirectly controls, is controlled
by or is under common control with a Party, for so long as such control exists. For the purposes of this Section 1.1 (“Affiliate”),
“control” shall mean: (i) in the case of any corporate entity, direct or indirect ownership of more than fifty percent
(50%) of the stock having the right to vote for the election of directors thereof or (ii) in the case of any non-corporate entity,
direct or indirect ownership of more than fifty percent (50%) of the equity or income interest therein.

 

1.2.           
“Agreement” shall have the meaning set forth in the Preamble.

 

1.3.           
“ALLSTAR Dossier” means the ALLSTAR Trial Six Month Top Line Report and all raw data related thereto.

 

    	 

    	 

    

 

EXECUTION COPY

 

 

1.4.           
“ALLSTAR Trial” means the human clinical trial entitled Allogeneic Heart Stem Cells to Achieve Myocardial
Regeneration having the ClinicalTrials.gov identifier of NCT01458405, as may be amended.

 

1.5.           
“Business Day” means a day other than Saturday, Sunday, or bank or other public holiday in Beverly Hills,
California.

 

1.6.           
“Calendar Quarter” means a financial quarter based on the Johnson & Johnson Universal Financial Calendar
for that year, a copy of which, for 2014 is attached hereto as Johnson & Johnson Universal Financial Calendar Schedule and
which is used for JBI’s internal and external reporting purposes.

 

1.7.           
“Calendar Year” means the universal calendar that Johnson &
Johnson uses as part of its financial reporting system, as provided to Capricor from time to time and as consistent with the 2014
universal calendar attached hereto as the Johnson & Johnson Universal Financial Calendar.

 

1.8.           
 “CAP-1002” means, for the purposes of this Agreement, allogeneic cardiosphere derived Cells tested in
the ALLSTAR trial.

 

1.9.           
“Capricor” shall have the meaning set forth in the Preamble.

 

1.10.       
 “Capricor Indemnitees” shall have the meaning set forth in Section 11.1 (Indemnification by JBI).

 

1.11.       
“Cardiosphere(s)” means multicellular clusters containing allogeneic Cells developed from human
cardiac tissue grown in culture.

 

1.12.       
“Cardiosphere Derived Cells” or “CDCs” mean Cell(s) that result from dissociation
of Cardiospheres or subsequent culture of such Cells.

 

1.13.       
“CDC Cells” means CAP-1002 and allogeneic Cardiospheres and CDCs to which JBI may obtain an exclusive
license pursuant the Exclusive License Agreement Term Sheet.

 

1.14.       
“CDC Product”
means any pharmaceutical product in any dosage form containing CDC Cells.

 

1.15.       
“Cells” means a biological unit capable of division to produce further units, and consisting of a nucleus,
other organelles and cytoplasm containing macromolecules including nucleic acids, proteins, polysaccharides, and lipids, bounded
by a membrane.

 

1.16.       
“Claims” has the meaning set forth in Section 11.1 (Indemnification by JBI).

 

1.17.       
“CMC Committee” means the committee described in Section 5.1 (CMC Committee).

 

    	CONFIDENTIAL	Page 2

    	 

    

 

EXECUTION COPY

 

1.18.       
“CMC Development Budget” shall have the meaning set forth in Section 2.1(h) (CMC Development Budget).

 

1.19.       
“CMC Development Plan” means the written plan for manufacturing CDC Cells and CDC Products in the Field
by the Parties under FDA and EMA regulations an initial draft of which is attached as CMC Development Plan Schedule, attached hereto,
and which may be amended from time to time in accordance with the terms of this Agreement.

 

1.20.       
 “Commercially Reasonable Efforts” means, with respect to an objective, active and sustained efforts
to achieve such objective in as prompt a manner as is reasonably practicable under the circumstances consistent with those efforts
and resources that a party of similar size and resources in the pharmaceutical/biotechnology industry would normally use with respect
to achieving such objective.

 

1.21.       
“Confidential Information” means the meaning set forth in Section 8.1 (Confidentiality; Exceptions).

 

1.22.       
 “Control” means, with respect to any Information, Patent Right or other intellectual property right,
the possession (whether by ownership or license) by a Party or its Affiliate of the conditional or unconditional ability to grant
to the other Party access, ownership, a license or a sublicense as required herein to such Information, Patent Right, or other
intellectual property right without violating the terms of any agreement or other arrangement with any Third Party in existence
as of the Effective Date. In the case that the ability to grant is conditional (as with certain sublicenses), Control will require
that the other Party be able to and agrees to satisfy such condition(s).

 

1.23.       
 “Effective Date” has the meaning set forth in the Preamble.

 

1.24.       
“Exclusive License Agreement Term Sheet” means the term sheet attached to this Agreement in the Exclusive
License Agreement Term Sheet Schedule.

 

1.25.       
“Disputed Amount(s)” means invoice amounts that are subject to a bona fide dispute raised by Capricor
within thirty (30) days of Capricor’s receipt of such invoice.

 

1.26.       
 “Development” or “Develop” means non-clinical and clinical drug development activities
pertaining to a pharmaceutical product, including toxicology, pharmacology, test method development and stability testing, process
and manufacturing development, formulation development, delivery system development, quality assurance and quality control development,
statistical analysis, clinical studies (including pre- and post-approval studies), regulatory affairs, pharmacovigilance and regulatory
approval and clinical study regulatory activities (including regulatory activities directed to obtaining pricing and reimbursement
approvals).

 

1.27.       
 “EMA” means the European Medicines Agency, and any successor agency thereto.

 

    	CONFIDENTIAL	Page 3

    	 

    

 

EXECUTION COPY

 

1.28.       
 “European Union” means the member states that are signatories to the Treaty of the European Union at
the relevant time during the Term of this Agreement.

 

1.29.       
“Exploit” means to research, Develop, make, have made, use, import, export, commercialize, sell and offer
for sale. Cognates of the word “Exploit” shall have correlative meanings.

 

1.30.       
“FDA” means the United States Food and Drug Administration or any successor agency thereto.

 

1.31.       
“Field” means the treatment, diagnosis or prevention of cardiac diseases, disorders, and conditions.

 

1.32.       
“Force Majeure” has the meaning set forth in Section 14.7(Force Majeure).

 

1.33.       
“FTE” means a full-time person, or more than one person working the equivalent of a full-time person,
where “full-time” is considered one thousand seven hundred fifty (1750) hours per Calendar Year. No individual may
record more than 1.0 FTE (i.e., no overtime paid), except in the case of documented, invoiced overtime paid to Third Party contractors
for services directly related to CDC Product.

 

1.34.       
“FTE Payments” has the meaning set forth in Section 6.2(a) (FTE/OOP Payment).

 

1.35.       
“FTE Rate” means a rate of [...***...] FTE per annum for one (1) FTE. FTE Rate shall be adjusted
annually in proportion to the Consumer Price Index for all Urban Consumers for July of prior year to July of current year, as published
by the U.S. Department of Labor, Bureau of Statistics (national CPI-U; Base Period: 1982-84=100; available at http://www.bls.gov/cpi/home.htm).
Rate changes shall be effective as of the first day of the 1st Calendar Quarter of the Calendar Year.

 

1.36.       
“Indemnifying Party” has the meaning set forth in Article 11.

 

1.37.       
 “Indemnified Party” has the meaning set forth in Article 11.

 

1.38.       
“Information” means all information not generally known to the public, including tangible and intangible
techniques, technology, practices, trade secrets, inventions (whether patentable or not), methods, knowledge, know-how, conclusions,
skill, experience, test data and results (including pharmacological, toxicological, manufacturing, and clinical test data and results),
analytical and quality control data, results or descriptions, software and algorithms, including works of authorship and copyrights.

 

1.39.       
 “Interest. Rate” means two percent (2%) plus the thirty (30) day U.S. Dollar LIBOR rate effective for
the date that payment was due, as published by The Wall Street Journal, Eastern U.S. Edition, on the date such payment was
due (or, if unavailable on such date, the first date thereafter on which such rate is available), or, if lower, the maximum rate
permitted by Law.

 

*Confidential Treatment Requested

 

    	CONFIDENTIAL	Page 4

    	 

    

 

EXECUTION COPY

 

1.40.       
“Invention(s)” has the meaning set forth in Section 7.1 (Inventions Ownership).

 

1.41.       
“Joint Steering Committee” or “JSC” means the committee described in Section 2.2 (Joint
Steering Committee).

 

1.42.       
“Law” means, individually and collectively, any and all laws, ordinances, rules, directives, administrative
circulars and regulations of any kind whatsoever of any Governmental Authority within the applicable jurisdiction.

 

1.43.       
“JBI” shall have the meaning set forth in the Preamble.

 

1.44.       
“JBI Know-How” means Information Controlled by JBI or its Affiliate that is necessary or useful for the
Exploitation of a CDC Product.

 

1.45.       
“JBI Indemnitees” has the meaning set forth in Section 11.2(Indemnification by Capricor).

 

1.46.       
“Losses” has the meaning set forth in Section 11.1 (Indemnity by JBI).

 

1.47.       
“Materials” means any tangible chemical or biological material, including any libraries, DNA, RNA, clones,
cells, and any expression product, progeny, derivative or other improvement thereto.

 

1.48.       
 “Out- of- Pocket Costs” shall mean the amounts paid to Third Party vendors or contractors, for
services, materials, equipment or supplies provided by them directly in the performance of activities under the CMC Development
Plan, to the extent such services, materials, equipment or supplies apply directly to the CDC Product.

 

1.49.       
“OOP Payment” has the meaning set forth in Section 6.2(a) (FTE/OOP Payments).

 

1.50.       
“Option” means the right of JBI pursuant to this Agreement, to enter into with Capricor an Exclusive
License Agreement pursuant to Section 4.3 (Option Grant).

 

1.51.       
 “Option Period” has the meaning set forth in Section 4.3 (Option Exercise).

 

1.52.       
“Party” and “Parties” has the meaning set forth in the Preamble.

 

1.53.       
“Patent Right” means any and all (a) patents, (b) pending patent applications, including, all provisional
applications, substitutions, continuations, continuations-in-part, divisions and renewals and all patents granted thereon, (c)
all patents-of-addition, reissues, reexaminations and extensions or restorations by existing or future extension or restoration
mechanisms, including, supplementary protection certificates or the equivalent thereof, (d) inventor’s certificates, (e)
any other form of government-issued right substantially similar to any of the foregoing, and (f) all U.S. and foreign counterparts
of any of the foregoing.

 

    	CONFIDENTIAL	Page 5

    	 

    

 

EXECUTION COPY

 

1.54.       
“Phase II Trial” or “Phase IIb Trial” means, with respect to the United
States, any human clinical trial conducted in the specific patient population with the disease or condition of interest intended
to be studied in a Phase III Trial for the purposes of preliminary assessment of safety and efficacy in the indication being studied,
as described under 21 C.F.R. §312.21(b), and that, if the defined end-points are met, is sufficient to allow the Initiation
of a Phase III Trial in the indication being studied, or, with respect to a jurisdiction other than the United States, an equivalent
clinical study.

 

1.55.       
“Phase III Trial” means, with respect to the United States, any human clinical trial, that, if the defined
end-points are met, is intended to be a pivotal trial for obtaining Regulatory Approval in the indication being studied or to otherwise
establish safety and efficacy in patients with the indication being studied for purposes of filing for Regulatory Approval with
the United States Food and Drug Administration (or its successor) as required under 21 C.F.R. §312.21(c), or, with respect
to a jurisdiction other than the United States, an equivalent clinical study. In the event that a human clinical trial that would
otherwise meet the definition of a Phase II Trial would, if the defined end-points are met, be sufficient to obtain Regulatory
Approval in the indication being studied then, for purposes of this Agreement, such trial is considered a Phase III Trial.

 

1.56.       
“Prosecution and Maintenance” means, with respect to a Patent Right, the preparing, filing, and prosecuting
of patent applications and maintenance of patents, as well as re-examinations, and reissues, with respect to such patents, together
with the conduct of interferences and the defense of oppositions with respect to the particular patent application or patent; and
“Prosecute and Maintain” shall have the correlative meaning. 

 

1.57.       
“Regulatory Filing” means any filing with any Governmental Authority with respect to the development,
manufacture, marketing, commercialization or reimbursement of a pharmaceutical product.

 

1.58.       
“Six Month Top Line Report” means a report generated by Capricor that will include the tables and listings
set forth in the Six Month Top Line Report Schedule from the ALLSTAR Trial and may include such additional items agreed by the
Parties.

 

1.59.       
 “Term” means the period beginning on the Effective Date and ending upon the termination of this Agreement
pursuant to Article 12 (Term and Termination).

 

1.60.       
 “Third Party” means any entity other than a Party or an Affiliate of a Party.

 

1.61.       
 “United States” or “U.S.” means the United States of America, including its territories
and possessions, the District of Columbia and Puerto Rico.

 

    	CONFIDENTIAL	Page 6

    	 

    

 

EXECUTION COPY

 

2.                 
DEVELOPMENT PLAN

 

2.1             
CMC Development Plan.

 

(a)               
Within forty-five (45) days of the Effective Date, the Parties shall amend the CMC Development Plan to add top line operational
details (which includes a detailed budget of the amount that Janssen may invoice for and the financial commitments to be made by
Capricor for the CMC work (such budget, the “CMC Development Budget”)). All manufacturing Development activities
for CDC Cells and CDC Products contemplated by the Parties hereunder shall be set forth and carried out pursuant to the CMC Development
Plan.

 

(b)              
Amendments. The CMC Development Plan may be amended from time to time by the CMC Committee in accordance with this
Agreement and such amendments will be reflected in the CMC Development Plan. The CMC Development Plan is to be reviewed as necessary
at each meeting of the CMC Committee and at any other time upon the reasonable request of either Party.

 

(c)               
Diligence.Each Party shall use Commercially Reasonable Efforts to perform (itself or through its Affiliates or
by permitted subcontracting) its respective obligations under the CMC Development Plan, and shall reasonably cooperate with and
provide reasonable support to the other Party in such other Party’s performance of its responsibilities under the CMC Development
Plan. The Parties acknowledge and agree, however, that no outcome or success is or can be assured and that failure to achieve desired
results do not in and of itself constitute a breach or default of any obligation in this Agreement.

 

(d)              
Permitted Subcontracting. Each Party may subcontract any of its activities to be performed under the CMC Development
Plan to a Third Party or to an Affiliate of the Party, provided that any such Third Party or Affiliate shall have entered into
a written Agreement with such Party that includes terms and conditions protecting and limiting use and disclosure of Confidential
Information, Materials and Information of the other Party at least to the same extent as under this Agreement, and requiring such
Third Party or Affiliate, as applicable, and its employees, contractors and agents to grant such Party Control in and to any Patent
Rights, Information and Materials created, conceived or reduced to practice in connection with the performance of any such subcontracted
activities. Each Party shall remain responsible and liable for the performance by its Affiliates and subcontractors of its obligations
hereunder, and shall cause its Affiliates and subcontractors to comply with the provisions of this Agreement, including, causing
such third parties to make any and all assignments of ownership of intellectual property rights generated in carrying out a Party’s
obligation in accordance with the terms of this Agreement.

 

(e)               
Records. Each Party shall maintain, or cause to be maintained, records of its activities under the CMC Development
Plan in sufficient detail and in good scientific manner appropriate for scientific, patent and regulatory purposes, which shall
properly reflect all work included in the CMC Development Plan consistent with its internal procedures and policies.

 

    	CONFIDENTIAL	Page 7

    	 

    

 

(f)               
Reports. Each Party shall furnish to the CMC Committee a written report, within forty-five (45) days after the end
of each Calendar Quarter, that (i) describes such Party’s progress under the CMC Development Plan during the relevant Calendar
Quarter and (ii) includes a summary of the results and data generated by such Party under the CMC Development Plan during the relevant
Calendar Quarter, in each case to the extent reasonably necessary to support and advance the CMC Development Plan. For clarity,
the written report required in this subsection is in addition to any other reporting requirements under this Agreement.

 

(g)              
Materials. Each Party may furnish to the other Party, as reasonably required, samples of Materials. The Party receiving
any Materials shall not distribute or otherwise allow the release of Materials to any Third Party, except for subcontracting, in
each case as permitted hereunder. All Materials delivered to the receiving Party are provided “AS IS”, shall be used
in compliance with all Laws, and shall be used with prudence and appropriate caution in any experimental work because not all of
their characteristics may be known. In regard to the transfer of any Material between the Parties, unless specifically stated otherwise
by the transferor as a condition to a voluntary transfer, such transfer of Material will also be a transfer of ownership to the
transferee of the physical sample being transferred. Such transfer will not exhaust intellectual property rights attached to such
Material. All voluntary transfers of Material under this Agreement may be subject to a Material Transfer Agreement executed by
the Parties on mutually agreeable terms.

 

(h)              
CMC Development Budget. JBI and Capricor shall each expend the FTEs, internal costs and out-of-pocket expenses necessary
for such Party to perform the activities allocated to it in accordance with the CMC Development Plan. In the conduct of the CMC
Development Plan, each of JBI and Capricor may, at its sole option and own expense (unless otherwise agreed by the Parties), expend
in excess of the expenses budgeted for performance of its activities for any phase of the CMC Development Plan. Unless otherwise
agreed in writing by the Parties, Janssen may invoice Capricor under the CMC Development Budget not more than [...***...]
during Term of the Agreement.

 

2.2 
  Joint Steering Committee. Within thirty (30) days of the Effective Date, Capricor and JBI will assemble a JSC.
Initially, the JSC will be composed of at least two, but no more than four, representatives of each Party, with an equal number
appointed by each of Capricor and JBI. Each Party will provide a list of its representatives to the other Party within thirty (30)
days after the Effective Date. Each Party will promptly notify the other Party in writing of any change in its appointed representatives.
Each Party may invite employees and consultants to attend meetings of the JSC, subject to their agreement, who are bound to obligations
of confidentiality, non-use, and assignment of inventions similar to those of that Party’s members of the JSC.

 

(a) Meetings.
The JSC will hold its first meeting within thirty (30) days of the Effective Date. While in existence, the JSC will meet on a quarterly
basis by audio or video teleconference and, at a minimum, twice each year in person (which in-person meeting will be held on an
alternating basis between Beverly Hills, California and site of JBI or any of its Affiliates, such to be agreed by the Parties).
Each Party will bear its own costs relating to any

 

 

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JSC meeting. Meetings
of the JSC are effective only if at least one representative of each Party is present at the meeting or participating by teleconference.
The Parties will endeavor to schedule meetings of the JSC at least two (2) months in advance.

 

(b) Responsibilities.
The duties of the JSC will include, but not be limited to, reviewing the progress of and amendments to the ALLSTAR Trial and reviewing
Capricor’s progress to generating the ALLSTAR Dossier. In addition, the JSC will discuss any other work ongoing at Capricor
in the Field as well as the design and planning for Phase IIb and III clinical trials.

 

3.                 
ALLSTAR TRIAL.

 

(a)               
Within thirty (30) days of the Effective Date, Capricor shall provide JBI with the current clinical protocol for the ALLSTAR
trial.

 

(b)              
Amendments. Any material amendments proposed by Capricor to the ALLSTAR clinical protocol shall be presented to the
JSC prior to being implemented, if reasonably practicable. For clarity, Capricor’s ability to amend the ALLSTAR clinical
protocol shall not alter Capricor’s obligations relative to the ALLSTAR Dossier.

 

(c)               
Diligence. Capricor shall use Commercially Reasonable Efforts to complete dosing, data analysis, and generate the
ALLSTAR Dossier.

 

(d)              
Reports. Capricor shall furnish to the JSC a written report, within forty-five (45) days after the end of each Calendar
Quarter that describes Capricor’s progress in the ALLSTAR Trial during the relevant Calendar Quarter.

 

(e)               
Regulatory Filings. Capricor shall file, in its own name, all Regulatory Filings for the ALLSTAR Trial and any other
clinical studies performed during the Term.

 

4.                 
GRANT OF LICENSE AND EXCLUSIVE OPTION

 

4.1 
 Capricor hereby grants to JBI a limited and non-exclusive license under intellectual property Controlled by Capricor solely
to the extent needed for JBI to perform its obligations under the CMC Development Plan. No other right or license is granted by
Capricor to JBI under this Agreement.

 

4.2 
 JBI hereby grants to Capricor a limited non-exclusive license under intellectual property Controlled by JBI solely to the
extent needed for Capricor to perform its obligations under the CMC Development Plan. No other right or license is granted by JBI
to Capricor under this Agreement.

 

4.3 
 Option Grant. Capricor grants to JBI an exclusive right pursuant to this Agreement to enter into an Exclusive License
Agreement on terms which shall include (a) the financial terms, the definitions of Licensed Cells and Licensed Products and the
License Grants specifically set forth in the Exclusive License Agreement Term Sheet; (b) other terms and conditions substantially
the same as those in the Exclusive License Agreement Term Sheet; and (c) additional other customary terms and conditions to be
negotiated and agreed by the Parties (the

 

    	CONFIDENTIAL	Page 9

    	 

    

 

“Option”).
From the Effective Date until the period ending sixty (60) days after delivery of the ALLSTAR Dossier by Capricor to JBI (the “Option
Period”), JBI shall have the right to notify Capricor of its desire to commence negotiations for the Exclusive License Agreement.
Upon receipt of such notice by Capricor, both Parties shall commence good faith negotiations to conclude and execute an Exclusive
License Agreement prior to the end of the Option Period according to the terms of the Exclusive License Agreement Term Sheet. During
the Option Period, Capricor agrees not to negotiate nor solicit interest from any Third Party for any rights to CDC Cells and CDC
Products.

 

4.4 
 Upon delivery of the ALLSTAR Dossier, JBI shall promptly notify Capricor of any asserted deficiencies and Capricor shall
respond to such request as promptly as reasonably practicable. Janssen shall immediately notify Capricor that the ALLSTAR Dossier
is free of deficiencies. In any event, should Janssen not respond to Capricor within five (5) Business Days of JBI’s receipt
of the ALLSTAR Dossier, the ALLSTAR Dossier shall be deemed to be delivered without deficiencies and the sixty (60) day period
set forth in Section 4.3 shall start on the sixth business day of Janssen’s silence with respect to the ALLSTAR Dossier.
Additionally, JBI may request that the ALLSTAR Dossier be supplemented with reasonable additional relevant and material data and
other information, and if such a request is made, Capricor shall respond to such request as promptly as reasonably practicable.

 

4.5 
 If an Exclusive License Agreement is not executed within sixty (60) days from JBI’s receipt of the ALLSTAR Dossier,
this Agreement will expire pursuant to Section 12.1 (Term).

 

4.6 
 Upon expiration of this Agreement by the failure of the Parties to mutually execute an Exclusive License Agreement prior
to the end of the Option Period:

 

(a) JBI grants to Capricor
a non-exclusive perpetual license to publish, disclose and use the Information of JBI that was utilized in the production of the
clinical trial materials manufactured pursuant to the CMC Development Plan for any purpose; and

 

(b) JBI grants to Capricor
an irrevocable, fully paid-up, nonexclusive license under patents Controlled by JBI utilized in the production of the clinical
trial materials manufactured pursuant to the CMC Development Plan to make, use and sell CDC Products.

 

4.7 
Prior to the expiration of the Option Period, Capricor shall provide JBI with an opportunity to review and comment on any
amendment to any license listed in the Capricor Third Party License Schedule. 

 

		5.	GOVERNANCE.

 

5.1.           
CMC Committee.

 

(a)            
CMC Committee.The Parties shall establish a CMC Committee, comprised of at least two (2) representatives of Capricor
and at least two (2) representatives of JBI. As of the Effective Date, the representatives shall be [...***...] for JBI
(the “JBI CMC Members”) and [...***...] for Capricor (the “Capricor CMC Members”).
The number of Capricor CMC Members

 

 

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    	CONFIDENTIAL	Page 10

    	 

    

 

shall be equal to the
number of JBI CMC Members. Each Party may replace its representatives to the CMC Committee at any time upon written notice to the
other Party. Each Party may invite non-voting employees and consultants to attend meetings of the CMC Committee, subject to their
agreement, who are bound to obligations of confidentiality, non-use, and assignment of inventions similar to those of that Party’s
members of the CMC Committee.

 

(b)           
CMC Committee Chair. The CMC Committee shall be chaired by a Capricor CMC Member (the “CMC Committee Chair”).
As of the Effective Date the CMC Committee Chair shall be [...***...]. The responsibilities of the CMC Committee Chair
include:

 

(i)                
providing written notification to each Party at least thirty (30) days in advance of each CMC Committee meeting;

 

(ii)              
collecting and organizing agenda items for each CMC Committee meeting;

 

(iii)            
preparing the meeting agenda and circulating it for review and approval by the CMC Committee Members and preparing written
minutes of such meeting within fifteen (15) Business Days after such meeting

 

(iv)            
preparing the written minutes of each CMC Committee meeting and circulating such minutes for review and approval by the
Parties, identifying action items to be carried out by the Parties.

 

(c)            
Meetings. The CMC Committee shall hold its first meeting within thirty (30) days of the Effective Date. While in
existence, the CMC Committee shall meet on a quarterly basis by audio or video teleconference and, at a minimum, twice each year
in person (which in-person meeting shall be held on an alternating basis between Beverly Hills, California and site of JBI or any
of its Affiliates, such to be agreed by the Parties). Each Party shall bear its own costs relating to any CMC Committee meeting.
Meetings of the CMC Committee are effective only if at least one representative of each Party is present at the meeting or participating
by teleconference. Each Party shall be responsible for all of its own expenses of participating in the committee meetings. The
Parties shall endeavor to schedule meetings of the CMC Committee at least two (2) months in advance. The CMC Committee Chair shall
prepare the meeting agenda and shall circulate for review and approval by the CMC Committee Members and prepare written minutes
of such meeting within fifteen (15) Business Days after such meeting. In the course of the review of the agenda by the CMC Committee
members, each Party shall have the right to add items to the agenda. The Parties shall agree on the minutes of each meeting promptly.

 

(d)           
Responsibilities. Following the initiation of the Development Program under the CMC Development Plan, the CMC Committee
shall oversee and supervise the overall performance of the CMC Development Plan and within such scope shall: (i) discuss and review
the progress of the CMC Development Plan, (ii) review proposed material amendments to the CMC Development Plan; (iii) review the
efforts of the Parties under the CMC

 

 

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    	CONFIDENTIAL	Page 11

    	 

    

 

Development Plan; (iv)
assign activities under the CMC Development Plan consistent with the obligations of the Parties hereunder, and (v) to attempt to
resolve any disputes on an informal basis.

 

(e)            
Decision-making. Regardless of the number of Capricor CMC Committee members or JBI CMC Committee members, each Party
shall have one (1) vote, and the CMC Committee shall attempt to make decisions by consensus. In the event that a decision cannot
be resolved by consensus, the chairperson shall make a final decision, provided, however, that the CMC Committee shall not make
any decision that is inconsistent with the terms and conditions of this Agreement nor that would unilaterally impose (i) a financial
obligation on the other Party beyond the scope of the agreed CMC Development Budget, or (ii) a technical obligation on the other
Party that is beyond its current technical capability or capacity.

 

(f)            
Limits on CMC Committee Authority. Each Party shall retain the rights, powers and discretion granted to it under
this Agreement and no such rights, powers, or discretion shall be delegated to or vested in the CMC Committee unless such delegation
or vesting of rights is expressly provided for in this Agreement or the Parties expressly so agree in writing. The CMC Committee
shall not have the power to amend, modify or waive compliance with this Agreement (other than as expressly permitted hereunder).

 

		6.	PAYMENTS.

 

6.1.           
Development Fee. JBI shall pay to Capricor, within eight (8) Business Days subsequent to the Effective Date, a one-time
payment of Twelve Million Five hundred thousand U.S. Dollars ($12,500,000), which is non-refundable and non-creditable and not
subject to set-off.

 

6.2.           
Research Funding.

 

(a)               
FTE/OOP Payments. Capricor shall reimburse JBI for expenditures incurred in its performance under the CMC Development
Plan including FTE costs actually incurred at the FTE Rate (such reimbursement, the “FTE Payments”) and Out
of Pocket Costs (the “OOPs Payments”), in each case up to the maximum permitted under the CMC Development
Budget for a given Calendar Quarter (such maximum referred to as “FTE/OOP Maximum Payment”). At the end of each
Calendar Quarter, JBI shall provide Capricor with an invoice for the funded FTEs expended and reimbursable out of pocket expenses
incurred during such Calendar Quarter up to the FTE/OOP Maximum Payment for that Calendar Quarter and Capricor shall reimburse
all such amounts no later than forty-five (45) days after receipt of such invoice, excluding
Disputed Amounts.  The amount of a Disputed Amount
may be withheld from payment of the specific invoice to which it relates. Disputed Amounts that Capricor subsequently agrees
in writing to pay or that are required to be paid pursuant to a dispute resolution shall be paid within thirty (30) days from the
date of such agreement or resolution. Any payments or portions thereof due hereunder that are
not paid when due, excluding Disputed Amounts, will bear interest at the Interest Rate, calculated on the number of

 

    	CONFIDENTIAL	Page 12

    	 

    

 

days such payment is
delinquent. The payment of interest will in no way limit any other remedies available to JBI. Should an invoice not be paid in
full, (excluding Disputed Amounts) for at least six (6) months, JBI shall have no obligation to carry out its assigned activities
under the CMC Development Plan until such payment has been received by JBI. The Parties recognize that, on a Calendar Quarter by
Calendar Quarter basis, the actual FTE/OOP Payment due may change based on actual work conducted, but the annual budget amount
set forth in the CMC Development Plan shall not change unless mutually agreed to by the Parties. With regards to reimbursement
for Out of Pocket Expenses, JBI shall provide documentation supporting such expenses, such as invoices or pro forma invoices from
Third Party vendors. With regards to reimbursement for funded FTEs, JBI shall provide documentation supporting the usage of such
FTEs, such as an FTE time report break down by function. At Capricor’s request (to be made no more than twice per Calendar
Year), JBI shall provide Capricor with reasonable additional information to support FTE Payments, including documentation, reasonably
requested by Capricor in support of invoiced FTE utilization.

 

(b)              
 Records and Audits. JBI shall keep adequate books and records of accounting for all expenses incurred in carrying
out the activities that were reimbursed using the FTE/OOP Payments and ensuring JBI’s compliance hereunder. For the three
(3) years following the end of the Calendar Year to which each pertains, such books and records of accounting will be kept at each
of their principal place of business and no more than once per Calendar Year will be open for inspection during normal business
hours upon at least forty five (45) days’ prior written notice by an independent certified accountant selected by Capricor
at Capricor’s expense, and which is reasonably acceptable to JBI, for inspecting expenditure under the FTE/OOP Payments made
by Capricor under this Agreement. Such accountant shall have executed and delivered to JBI, a customary confidentiality agreement
as reasonably requested by JBI. The results of such inspection, if any, will be shared by the accountant with Capricor and JBI
at either of JBI’s or Capricor’s request, and are binding on both JBI and Capricor. Any overbillings, by Capricor’s
choice, are to be paid either by being credited on the following Calendar Quarter’s invoice or reimbursed to Capricor via
check within forty-five (45) days of notification of the results of such inspection. Any underpayments are to be included in the
following Calendar Quarter’s invoice or paid separately consistent with the means in which JBI pays Capricor. Capricor shall
pay for any such inspections, except that in the event there is a downward adjustment in billed expenses shown by such inspection
of more than five percent (5%) of the amount billed over the period audited, JBI shall reimburse Capricor for any reasonable out-of-pocket
costs of such accountant or related to such inspection. No Calendar Year will be subject to audit under this Section more than
once.

 

(c)               
Manner of Payment. All payments to be made by a Party to another Party hereunder shall be by wire transfer to the
relevant bank account detailed below or such other bank account as a Party (as applicable) may designate in writing from time to
time during the Term.

 

    	CONFIDENTIAL	Page 13

    	 

    

 

To Capricor:

 

Account name: [...***...]

			

 

To JBI:

 

Bank name: [...***...]

			

 

(d)              
Late Payments. Except as otherwise specifically stated herein, if any payment due to be made by either Party hereunder is
not made when due, such late payment shall bear interest at the Interest Rate, calculated on the number of days such payment is
delinquent.

 

 

		7.	Intellectual Property

 

7.1.           
Inventions Ownership. Subject to the provisions of Article 4 and this Article 7, Capricor shall own all right, title
and interest in and to all Patent Rights that that are conceived, and/or reduced to practice pursuant to the CMC Development Plan
solely or jointly by the employees, agents or subcontractors of each Party that are necessary for the Exploitation of CDC Cells
and CDC Products (“Arising Patent Rights”). JBI and its Affiliates shall execute, and shall have its employees and
subcontractors and those of its Affiliates execute all documents necessary to transfer all right, title and interest in and to
any such inventions to Capricor.

 

7.2.           
Exploitation of Inventions. Subject to the terms and conditions of this Agreement, including the licenses granted
herein, Capricor may Exploit (including sublicensing) any Arising Patent Right pursuant to Section 6.2 without accounting to or
obtaining consent from JBI.

 

7.3.           
Joint Development Agreement. This Agreement is a joint research agreement in accordance with 35 U.S.C. §103(c)(3)
to Develop and Commercialize CDC Products. No Party is required by this reference to have any Patent Right to take advantage of
or become

 

 

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subject to
such §103(c)(3) except in accordance with the provisions of Article 7 regarding Prosecution and Maintenance of such Patent
Right.

 

7.4.           
Prosecution and Maintenance. Capricor shall be responsible for the Prosecution and Maintenance and enforcement of
Arising Patent Rights at its sole discretion and expense, unless otherwise agreed.

 

7.5.           
Defense and Settlement of Third Party Claims. If the Exploitation of any CDC Product is alleged by a Third Party
to infringe a Third Party’s Patent Right or other intellectual property right, the Party becoming aware of such allegation
shall promptly notify the other Party. The Party that is alleged to infringe the Third Party’s Patent Right or intellectual
property right shall have the right to take such action as it deems appropriate in response to such allegation, and shall be solely
responsible for all damages, costs and expenses in connection therewith, subject to the provisions of Article 9 (Representations,
Warranties, and Covenants).

 

7.6.           
Capricor Third Party License. Notwithstanding any provision of this Article 7, if any provision conflicts
with a Capricor Third Party License, the provision of the Capricor Third Party License controls.

 

7.7.           
Employee Agreements. Prior to beginning work relating to any aspect of the subject matter of this Agreement and/or
being given access to Confidential Information of the other Party, each appropriate employee, consultant and/or agent of Capricor
and JBI will have signed or will be bound to a commercially reasonable non-disclosure and/or invention assignment agreement. Each
Party will be responsible for any compensation or payment to its employees, contractors or agents in connection with the invention
of any Patent Right.

 

7.8.           
Cooperation. Each Party shall reasonably cooperate with the other Party in the Prosecution And Maintenance of the
Arising Patent Rights pursuant to this Agreement. Such cooperation includes promptly executing all documents, or requiring inventors,
subcontractors, employees, former employees (to the extent reasonably available) and consultants and agents to execute all documents,
as reasonable and appropriate so as to enable the Prosecution And Maintenance or enforcement of any such Arising Patent Rights
in any country.

 

		8.	Confidentiality.

 

8.1.           
Confidentiality; Exceptions. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing
or required as a condition of sublicense, the Parties agree that, during the Term and for five (5) years thereafter, but in no
case before July 10, 2022, the receiving Party will keep confidential and will not publish or otherwise disclose or use for any
purpose other than as provided for in this Agreement any Information furnished to it by the other Party pursuant to this Agreement
(collectively, “Confidential Information”). Notwithstanding the foregoing, Confidential Information will not
include any information to the extent that it can be established by written documentation by the receiving Party that such information:

 

    	CONFIDENTIAL	Page 15

    	 

    

 

(a)            
is obtained or was already known by the receiving Party or its Affiliates as a result of disclosure from a Third Party that
the receiving Party neither knew nor should have known was under an obligation of confidentiality to the disclosing Party with
respect to such information;

 

(b)           
was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving
Party through no act or omission of the receiving Party or its Affiliates in breach of this Agreement;

 

(c)            
became generally available to the public or otherwise part of the public domain after its disclosure and other than through
any act or omission of the receiving Party or its Affiliates in breach of this Agreement; or

 

(d)           
was independently discovered or developed by the receiving Party or its Affiliates (without reference to or use of Confidential
Information of the disclosing Party) as demonstrated by the receiving Party’s documented evidence prepared contemporaneously
with such independent Development or other equally competent evidence.

 

8.2.           
Authorized Disclosure. Except as expressly provided otherwise in this Agreement, each Party may use and disclose
Confidential Information of the other Party solely as follows: (a) under appropriate confidentiality provisions substantially equivalent
to those in this Agreement: (i) in connection with the performance of its obligations or as reasonably necessary or useful in the
exercise of its rights under this Agreement, and (ii) to the extent it believes such disclosure is reasonably necessary in conducting
the activities contemplated under this Agreement; (b) to the extent such disclosure is to a Governmental Authority as reasonably
necessary in filing or prosecuting patent, and trademark applications in accordance with this Agreement, prosecuting or defending
litigation in accordance with this Agreement, complying with applicable governmental regulations with respect to performance under
this Agreement, filing Regulatory Filings, obtaining regulatory approval or fulfilling post-approval regulatory obligations for
an CDC Product, or otherwise required by Law, provided, however, that if a Party is required by Law or the rules
of any securities exchange or automated quotation system to make any such disclosure of the other Party’s Confidential Information
it will, except where impracticable for necessary disclosures (for example, in the event of medical emergency), give reasonable
advance notice to the other Party of such disclosure requirement and, in the case of each of the foregoing, will use its reasonable
efforts to secure confidential treatment of such Confidential Information required to be disclosed; (c) to advisors (including
lawyers and accountants) on a need to know basis, in each case under appropriate confidentiality provisions or professional standards
of confidentiality substantially equivalent to those of this Agreement; or (d) to the extent mutually agreed to by the Parties.

 

8.3.           
Confidential Treatment of Terms and Conditions. Neither Party shall disclose the terms and conditions of this Agreement
except as may be required by Law or as necessary to effect terms of this Agreement, including the Option Right pursuant to 4.3
(Option Exercise). Notwithstanding the foregoing, with respect to complying with the disclosure requirements of any Governmental
Authority in connection with any required filing of this Agreement, the Parties will consult with one another concerning which
terms of this

 

    	CONFIDENTIAL	Page 16

    	 

    

 

Agreement will be requested
to be redacted in any public disclosure of the Agreement, and in any event each Party will seek reasonable confidential treatment
for any public disclosure by any such Governmental Authority. Notwithstanding the foregoing, the Parties will agree upon and permit
Capricor to release a press release to announce the execution of this Agreement, which is attached hereto as the Press Release
Schedule for use in responding to inquiries about the Agreement; thereafter, JBI and Capricor may each disclose to Third Parties
the information contained in such press release without the need for further approval by the other, provided that such information
is still accurate. Each Party will additionally have the right to issue additional press releases in regards to this Agreement
and/or the CDC Products only with the prior written approval of the other Party or as required to comply with any Law or by the
rules of any stock exchange or automated quotation system (in the case of such required disclosure, by providing ten (10) Business
Days’ notice to the other Party and reasonably considering comments provided by such other Party within three (3) Business
Days after such notice). Any subsequent press release will contain the same accuracy and truthfulness as the original press release.
An acceptable copy of this Agreement may be filed with the Securities and Exchange Commission, The New York Stock Exchange and/or
the NASDAQ National Market as required by applicable law or regulation. In connection with such filing, the Parties will endeavor
to obtain confidential treatment of economic and trade secret information.

 

8.4.           
Attorney-Client Privilege. Neither Party is waiving, nor will be deemed to have waived or diminished, any of its
attorney work product protections, attorney-client privileges or similar protections and privileges as a result of disclosing information
pursuant to this Agreement, or any of its Confidential Information (including Confidential Information related to pending or threatened
litigation) to the receiving Party, regardless of whether the disclosing Party has asserted, or is or may be entitled to assert,
such privileges and protections. The Parties: (a) share a common legal and commercial interest in such disclosure that is subject
to such privileges and protections; (b) may become joint defendants in proceedings to which the information covered by such protections
and privileges relates; (c) intend that such privileges and protections remain intact should either Party become subject to any
actual or threatened proceeding to which the disclosing Party’s Confidential Information covered by such protections and
privileges relates; and (d) intend that after the Effective Date both the receiving Party and the disclosing Party will have the
right to assert such protections and privileges.

 

		9.	Representations, Warranties and Covenants

 

9.1.           
Mutual Representations and Warranties. In addition to the representations and warranties made by a Party elsewhere
in this Agreement, each Party hereby represents and warrants to the other Party that:

 

(a)            
As of the Effective Date, it is duly organized and validly existing under the Laws of its jurisdiction of incorporation
and it has full corporate power and authority and has taken all corporate action necessary to enter into and perform this Agreement;

 

(b)           
As of the Effective Date, this Agreement is a legal and valid obligation binding upon such Party and enforceable in accordance
with its terms; the execution, delivery

 

    	CONFIDENTIAL	Page 17

    	 

    

 

and performance of the
Agreement by such Party does not conflict with any agreement, instrument or understanding, oral or written, by which it is bound,
nor to its knowledge as of the Effective Date violate any Law; and the person or persons executing this Agreement on such Party’s
behalf have been duly authorized to do so by all requisite corporate action;

 

(c)            
As of the Effective Date, it has sufficient legal right and/or beneficial title or ownership of its respective Intellectual
Property to grant the licenses to the other Party as purported to be granted pursuant to this Agreement.

 

9.2.           
Capricor Representations, Warranties and Covenants. In addition to the representations and warranties made by Capricor
above and elsewhere in this agreement, Capricor hereby represents, warrants, and covenants to JBI that:

 

(a)            
As of the Effective Date, it has, or will have during the Term of this Agreement, the full right, power and authority to
grant to JBI the licenses hereunder granted in this Agreement.

 

(b)           
As of the Effective Date, to the actual knowledge of Capricor or its Affiliates, there is no suit or legal proceeding pending
or threatened in writing with respect to Capricor Intellectual Property, and

 

(c)            
As of the Effective Date, Capricor has not entered, and during the Term, will not knowingly enter, into any written agreement
with a Third Party that conflicts with the rights granted to JBI hereunder or Capricor’s ability to fully perform its obligations
hereunder.

 

 

9.3.           
JBI Representations, Warranties and Covenants In addition to the representations and warranties made by JBI above
and elsewhere in this agreement, JBI hereby represents, warrants, and covenants to Capricor that:

 

(a)            
As of the Effective Date, it has, or will have during the Term of this Agreement, the full right, power and authority to
grant to Capricor the licenses hereunder granted in this Agreement.

 

(b)           
As of the Effective Date, to the actual knowledge of JBI or its Affiliates, there is no suit or legal proceeding pending
or threatened in writing with respect to JBI Intellectual Property, and

 

(c)            
As of the Effective Date, JBI has not entered, and during the Term, will not knowingly enter, into any written agreement
with a Third Party that conflicts with the rights granted to Capricor hereunder or JBI’s ability to fully perform its obligations
hereunder.

 

9.4.           
Disclaimer of Warranties. EXCEPT AS OTHERWISE SET FORTH IN ARTICLE 9 OF THIS AGREEMENT, JBI AND CAPRICOR EXPRESSLY
DISCLAIM ANY AND ALL REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THE INTELLECTUAL
PROPERTY LICENSED INTHIS AGREEMENT, OR ANY OTHER SUBJECT MATTER

 

    	CONFIDENTIAL	Page 18

    	 

    

 

RELATING TO THIS AGREEMENT,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OR NONINFRINGEMENT OF INTELLECTUAL PROPERTY
RIGHTS.

 

		10.	Limitations of Liability; Insurance

 

10.1.       
Limitations of Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
EXEMPLARY, MULTIPLE, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, OR FOR
ANY LOSS OR INJURY TO A PARTY'S PROFITS OR GOODWILL, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (WHETHER IN CONTRACT, TORT (INCLUDING
NEGLIGENCE), STRICT LIABILITY OR OTHERWISE), EVEN IF SUCH PARTY WAS ADVISED OR OTHERWISE AWARE OF THE LIKELIHOOD OF SUCH DAMAGES,
EXCEPT WITH RESPECT TO CONSEQUENTIAL DAMAGES (WHICH IN NO EVENT WILL INCLUDE ANY PUNITIVE DAMAGES) AWARDED TO A PARTY THAT THE
NON-BREACHING PARTY DEMOSTRATES RESULTED FROM A BREACH OF SECTION 8.1 (CONFIDENTIALITY; EXCEPTIONS), OR SECTION 8.2 (AUTHORIZED
DISCLOSURE). NOTHING IN THIS SECTION 10.1 (LIMITATIONS OF LIABILITY) IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS
OR OBLIGATIONS OF EITHER PARTY UNDER ARTICLE 11 (INDEMNIFICATION) WITH RESPECT TO ANY DAMAGES PAID BY THE OTHER PARTY TO A THIRD
PARTY IN CONNECTION WITH A THIRD PARTY CLAIM.

 

10.2.       
Insurance. During the Term and for [...***...] thereafter, each Party shall obtain and maintain (i) commercial
general liability insurance covering its obligations and activities hereunder and (ii) products liability insurance including coverage
for CDC Products undergoing clinical trials with financially secure insurance carriers in a form and at levels as customary for
a company of its size in the pharmaceutical or biotechnology industry (or reasonable self-insurance sufficient to provide materially
the same level and type of protection).

 

		11.	Indemnification.

 

11.1.       
Indemnification by JBI. JBI will defend, indemnify, and hold harmless Capricor, its Affiliates and their respective
directors, officers, employees, and agents (collectively, “Capricor Indemnitees”), at JBI’s cost and expense,
from and against any and all liabilities, losses, costs, damages, fees or expenses (including reasonable legal expenses and attorneys’
fees incurred by any Capricor Indemnitees until such time as JBI has acknowledged and assumed its indemnification obligation hereunder
with respect to a claim) (collectively, “Losses”) arising out of any claim, action, lawsuit, or other proceeding
(collectively, “Claims”) brought against any Capricor Indemnitee by a Third Party to the extent such Losses
result from (i) any negligence or willful misconduct on the part of JBI, its Affiliates, subcontractors, or sublicensees in performing
its obligations under this Agreement, and (ii) a material breach by JBI of this Agreement, including the failure of JBI’s
representations or warranties in Section 9.1 (Mutual Representations and Warranties) to be true in any material

 

*Confidential Treatment Requested

    	CONFIDENTIAL	Page 19

    	 

    

 

respect, or (iii) any
actual or alleged infringement or misappropriation by JBI or any of its Affiliates, subcontractors or sublicensees of any Patent
Rights or other intellectual property rights in performing its obligations under this Agreement; provided, however, that JBI shall
not be obligated to indemnify Capricor Indemnitees for any Losses to the extent such Losses arise as a result of (A) the material
breach of any representation, warranty or covenant made by Capricor under this Agreement or (B) any negligence or willful misconduct
on the part of any Capricor Indemnitee or (C) any action or omission undertaken at the direction or request of any Capricor Indemnitee.

 

11.2.       
Indemnification by Capricor. Capricor will defend , indemnify, and hold harmless JBI, its Affiliates and their respective
directors, officers, employees, and agents (collectively, “JBI Indemnitees”), at JBI’s cost and expense,
from and against any and all liabilities, losses, costs, damages, fees or expenses (including reasonable legal expenses and attorneys’
fees incurred by any JBI Indemnitees until such time as Capricor has acknowledged and assumed its indemnification obligation hereunder
with respect to a claim) (collectively, “Losses”) arising out of any claim, action, lawsuit, or other proceeding
(collectively, “Claims”) brought against any JBI Indemnitee by a Third Party to the extent such Losses result
from (i) any negligence or willful misconduct on the part of Capricor, its Affiliates, subcontractors, or sublicensees in performing
its obligations under this Agreement, and (ii) a material breach by Capricor of this Agreement, including the failure of Capricor’s
representations or warranties in Section 9.1 (Mutual Representations and Warranties) to be true in any material respect, or (iii)
any actual or alleged infringement or misappropriation by Capricor or any of its Affiliates, subcontractors or sublicensees of
any Patent Rights or other intellectual property rights in performing its obligations under this Agreement; provided, however,
that Capricor shall not be obligated to indemnify JBI Indemnitees for any Losses to the extent such Losses arise as a result of
(A) the material breach of any representation, warranty or covenant made by JBI under this Agreement or (B) any negligence or willful
misconduct on the part of any JBI Indemnitee or (C) any action or omission undertaken at the direction or request of any JBI Indemnitee.

 

11.3.       
Claim for Indemnification. Whenever any Claim or Loss arises for which a JBI Indemnitee or a Capricor Indemnitee
(the “Indemnified Party”) may seek indemnification under this Article 11 (Indemnification), the Indemnified
Party will promptly notify the other Party (the “Indemnifying Party”) of the Claim or Loss and, when known,
the facts constituting the basis for the Claim or Loss; provided, however, that the failure by an Indemnified Party
to give such notice or to otherwise meet its obligations under this Section 11.3 (Claim for Indemnification) will not relieve the
Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that the Indemnifying Party
is actually prejudiced as a result of such failure. The Indemnifying Party will have exclusive control of the defense and settlement
of all Claims for which it is responsible for indemnification and will assume the defense thereof at its own expense promptly upon
notice of such Claim or Loss. The Indemnified Party will not settle or compromise any Claim by a Third Party for which it is entitled
to indemnification without the prior written consent of the Indemnifying Party, unless the Indemnifying Party is in breach of its
obligation to defend hereunder. In no event will the Indemnifying Party settle any Claim without the prior written consent of the
Indemnified Party if such settlement does not include a complete release from liability on such

 

 

 

*Confidential Treatment Requested

    	CONFIDENTIAL	Page 20

    	 

    

 

Claim or if such settlement
would involve undertaking an obligation other than the payment of money, would bind or impair the Indemnified Party, or includes
any admission of wrongdoing or that any intellectual property or proprietary right of the Indemnified Party is invalid or unenforceable.
The Indemnified Party will reasonably cooperate with the Indemnifying Party at the Indemnifying Party’s expense and will
make available to the Indemnifying Party reasonably requested information under the control of the Indemnified Party, which information
will be subject to Article 8 (Confidentiality and Publications). The Indemnifying Party will permit the Indemnified Party to participate
in (but not to control) the Third Party Claim through counsel of its choosing (to the extent it has the ability to do so). Notwithstanding
any other provision of this subsection, if an Indemnified Party withholds his or her consent to a bona fide settlement offer, where
but for such action, the Indemnifying Party could have settled such Claim, the Indemnifying Party will be required to indemnify
the Indemnified Party only up to a maximum of the bona fide settlement offer for which the Indemnifying Party could have settled
such Claim.

 

		12.	TERM AND TERMINATION.

 

12.1.       
Term. This Agreement shall commence as of the Effective Date and, unless sooner terminated in accordance with the
terms hereof or by mutual written consent, shall expire upon the later of (i) the mutual execution of an Exclusive License Agreement
pursuant to JBI’s exercising its Option or (ii) the expiration of the Option Period without the Exclusive License Agreement
being executed (the “Term”).

 

12.2.       
Termination. This Agreement may be terminated as follows:

 

(a)            
Bankruptcy/Insolvency. Either Party may terminate this Agreement upon written notice or upon the filing or institution
of a bankruptcy, reorganization, liquidation or receivership proceedings, or upon than assignment of a substantial portion of the
assets for the benefit of creditors by the other party; provided however, that in the case of any involuntary bankruptcy or other
proceeding such right to terminate shall only become effective if the party consents to the involuntary bankruptcy or other proceedings
or such proceeding is not dismissed within ninety (90) days after the filing thereof. 

 

(b)           
Section 365(n) Rights. All rights and licenses granted under or pursuant to this Agreement are, and shall otherwise
be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property”
as defined under Section 101 of the U.S. Bankruptcy Code. Each Party agrees that the other Party, as a licensee of intellectual
property under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code.
The Parties further agree that, in the event of a rejection of this Agreement by either Party (for purposes of this Section (b)
(Section 365(n) Rights), the “licensor”) in any bankruptcy proceeding by or against the licensor under the U.S. Bankruptcy
Code, (a) the other Party (for purposes of this Section 12.2 (Section 365(n) Rights), the “licensee”) will be entitled
to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual
property, which, if not already in the licensee’s possession, will be promptly delivered to it upon the licensee’s
written request therefor, and (b) the licensor will not interfere with the licensee’s

 

    	CONFIDENTIAL	Page 21

    	 

    

 

rights to intellectual
property and all embodiments of intellectual property, and will assist and not interfere with the licensee in obtaining intellectual
property and all embodiments of intellectual property from another entity. The term “embodiments” of intellectual property
includes all tangible, intangible, electronic or other embodiments of rights and licenses hereunder, including all compounds and
products embodying intellectual property, CDC Products, regulatory filings and related rights, and technology.

 

12.3.       
Safety Concern. If Capricor determines that the use of a CDC Product is likely to cause a clinical effect that is
detrimental to the safety of patients, Capricor shall immediately notify JBI of such determination. The Parties shall meet and
confer as soon as practicable regarding the facts leading to such determination and possible mitigation of such outcome.

 

12.4.       
Termination for Uncured Material Breach. In its sole discretion, either Party may terminate the Agreement upon the
uncured material breach of the other Party.

 

12.5.       
Effect of Termination or Expiration. Upon the effective date of termination or Expiration of the Term, except as
otherwise expressly provided herein, all rights and obligations of each Party hereunder shall cease, including all rights, licenses
and sublicenses granted by a Party.

 

(i)                
No later than ten (10) days after the Termination Date, unless another period is agreed to in writing by the Parties, JBI
may provide an invoice in respect of the final FTE/OOPs Payment due and payable for such work performed by JBI. JBI shall provide
Capricor with a final invoice for the funded FTEs expended and reimbursable out of pocket and Capricor shall reimburse all such
amounts no later than forty-five (45) Calendar Days after receipt of such invoice.

 

(ii)              
If this Agreement is Terminated by mutual consent, expires or is terminated for material breach by Capricor, pursuant to
this Section 12:

 

(A)            
 if requested by Capricor, JBI will, at Capricor’s cost, transfer CMC Information not already in Capricor’s
possession to Capricor or a CMO designated by Capricor as necessary or useful for Capricor or such CMO to manufacture CDC Cells
and CDC Products; and

 

(B)             
JBI shall grant to Capricor an exclusive, worldwide license to JBI’s right, title, and interest in and to JBI Know-How
to Exploit CDC Cells and CDC Product in the Field.

 

12.6.       
Accrued Rights. Expiration or termination of this Agreement (or any provision hereof) for any reason shall be without
prejudice to any right that shall have accrued to the benefit of a Party prior to such expiration or termination, including damages
arising from any

 

    	CONFIDENTIAL	Page 22

    	 

    

 

breach under this Agreement.
Expiration or termination of this Agreement shall not relieve a Party from any obligation that is expressly indicated to survive
such expiration or termination.

 

12.7.       
Survival. The following provisions shall survive termination or expiration of this Agreement: Section 1 (Definitions),
 Section 4.6, Section 6.2 (Research Funding) Article 7 (Intellectual Property), Article 8 (Confidentiality),
Article 11 (Indemnification), Article 13 (Dispute Resolution) and Article 14 and each of their
subparts.

 

		13.	Dispute Resolution.

 

(a)            
Discussion by Senior Executives. If there is an unresolved matter, dispute or issue arising out of or relating to
the interpretation, breach, performance or application of this Agreement for which neither Party has the final decision making
authority as expressly provided elsewhere in this Agreement, either Party may refer such matter, dispute or issue to the Chief
Executive Officer of Capricor and the President of JBI or their designee(s), in writing for further discussion and resolution.
These individuals shall as soon as practicable meet and attempt in good faith to resolve the matter, dispute or issue and reach
Agreement. These individuals may obtain the advice of other employees or consultants as they deem necessary or advisable in order
to make the decision. If these individuals cannot reach Agreement as to the matter, dispute or issue within thirty (30) Calendar
Days of the matter, dispute or issue being referred to them, then such matter, dispute or issue (an “Unresolved Issue”)
will be resolved as provided in Section 13(b) (Arbitration) if the issue is material breach, and otherwise the issue will be resolved
according to the position of the Party having the right and license under this Agreement or otherwise to act or proceed.

 

(b)              
Arbitration.

 

(i)                
If the Parties fail to resolve the Unresolved Issue which concerns the breach of an obligation or duty under this Agreement
in mediation pursuant to Section 13(b) (Mediation), and a Party desires to pursue resolution of the Unresolved Issue, the Unresolved
Issue shall be submitted by either party for resolution in arbitration pursuant to the then current CPR Non-Administered Arbitration
Rules ("CPR Rules") (www.cpradr.org), except where they conflict with these provisions, in which case these provisions
control. The arbitration will be held in New York, New York. All aspects of the arbitration shall be treated as confidential.

 

(ii)              
The arbitrators will be chosen from the CPR Panel of Distinguished Neutrals, unless a candidate not on such panel is approved
by both parties. Each arbitrator shall be a lawyer with at least 15 years of experience with at least one company in the business
of developing and marketing pharmaceutical products to treat, ameliorate, or cure human diseases or conditions whether in a corporate
law department or otherwise, where such company has yearly reported sales of at least five hundred million US dollars ($500MM).
To the extent that the Unresolved Issue requires special expertise, the parties will so inform CPR prior to the beginning of the
selection process.

 

    	CONFIDENTIAL	Page 23

    	 

    

 

(iii)            
The arbitration tribunal shall consist of three (3) arbitrators, of whom each party shall designate one in accordance with
the "screened" appointment procedure provided in CPR Rule 5.4. The chair will be chosen in accordance with CPR Rule 6.4.
A single arbitrator may be chosen in accordance with the CPR Rules if (a) the Unresolved Issue does not involve a determination
of the existence of an uncured material breach, or (b) the aggregate award sought by the Parties is less than five million U.S.
dollars ($5,000,000.00 US) and equitable relief is not sought. Candidates for the arbitrator position(s) may be interviewed by
representatives of the Parties in advance of their selection, provided that all parties are represented.

 

(iv)            
The Parties agree to select the arbitrator(s) within thirty (30) days of initiation of the arbitration. The hearing will
be concluded within six (6) months after selection of the arbitrator(s) and the award will be rendered within sixty (60) days of
the conclusion of the hearing, or of any post-hearing briefing, which briefing will be completed by both sides within forty-five
(45) days after the conclusion of the hearing. In the event the Parties cannot agree upon a schedule, then the arbitrator(s) shall
set the schedule following the time limits set forth above as closely as practical.

 

(v)              
The hearing will be concluded in ten (10) hearing days or less. Multiple hearing days will be scheduled consecutively to
the greatest extent possible. A transcript of the testimony adduced at the hearing shall be made and shall be made available to
each party.

 

(vi)            
The arbitrator(s) shall be guided, but not bound, by the CPR Protocol on Disclosure of Documents and Presentation of
Witnesses in Commercial Arbitration (www.cpradr.org) (the "Protocol"). The Parties will attempt to agree on
modes of document disclosure, electronic discovery, witness presentation, etc. within the parameters of the Protocol. If the Parties
cannot agree on discovery and presentation issues, the arbitrator(s) shall decide on presentation modes and provide for discovery
within the Protocol, understanding that the Parties contemplate reasonable discovery.

 

(vii)          
The arbitrator(s) shall decide the merits of any Unresolved Issue in accordance with the law governing this Agreement, without
application of any principle of conflict of laws that would result in reference to a different law. The arbitrator(s) may not apply
principles such as "amiable compositeur" or "natural justice and equity."

 

(viii)        
The arbitrator(s) are expressly empowered to decide dispositive motions in advance of any hearing and shall endeavor to
decide such motions as would a United States District Court Judge sitting in the jurisdiction whose substantive law governs.

 

    	CONFIDENTIAL	Page 24

    	 

    

 

(ix)            
The arbitrator(s) shall render a written opinion stating the reasons upon which the award is based. The Parties consent
to the jurisdiction of the United States District Court for the district in which the arbitration is held for the enforcement of
these provisions and the entry of judgment on any award rendered hereunder. Should such court for any reason lack jurisdiction,
any court with jurisdiction may act in the same fashion.

 

(x)              
Each Party has the right to seek from the appropriate court provisional remedies such as attachment, preliminary injunction,
replevin, etc. to avoid irreparable harm, maintain the status quo, or preserve the subject matter of the Dispute.
Rule 14 of the CPR Rules does not apply to this Agreement.

 

(xi)            
EACH PARTY HERETO WAIVES: (1) ITS RIGHT TO TRIAL OF ANY ISSUE BY JURY, (2) WITH THE EXCEPTION OF RELIEF MANDATED BY STATUTE,
ANY CLAIM TO PUNITIVE, EXEMPLARY, MULTIPLIED, INDIRECT, CONSEQUENTIAL OR LOST PROFITS/REVENUES DAMAGES, AND (3) ANY CLAIM FOR ATTORNEY
FEES COSTS AND PREJUDGMENT INTEREST.

 

		14.	Miscellaneous

 

14.1.       
Affiliates and Designees. The Parties shall have the right to exercise their respective rights, perform their respective
obligations and/or receive performance of the other Party’s obligations hereunder through its Affiliates, designees, sublicensees
or licensees.

 

14.2.       
Assignment. Neither this Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred
(whether by operation of Law, general succession or otherwise) by either Party without the prior written consent of the other Party,
except that (a) either Party, upon prior written notice, may assign this Agreement to an Affiliate of such Party and (b) Capricor
or any Affiliate may assign this Agreement in connection with the sale of all or substantially all of its assets or business to
which this Agreement relates or pursuant to a Change of Control. Any assignment not in accordance with this Agreement will be void.
Subject to the foregoing, the rights and obligations of the Parties under this Agreement will be binding upon and inure to the
benefit of the successors and permitted assigns of the Parties. The acquiring entity of Capricor will agree in writing to assume
all of Capricor’s obligations hereunder.

 

14.3.       
Choice of Law. This Agreement will be governed by, and enforced and construed in accordance with, the laws of the
State of Delaware without regard to its conflicts of law provisions.

 

14.4.       
Construction. The definitions of the terms herein will apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun will include the corresponding masculine, feminine and neuter forms. The
words “include”, “includes” and “including” will be deemed to be followed by the phrase “without
limitation.” The word “will” will be construed to have the same meaning and effect as the

 

    	CONFIDENTIAL	Page 25

    	 

    

 

word “shall.”
The Parties each acknowledge that they have had the advice of counsel with respect to this Agreement, that this Agreement has been
jointly drafted, and that no rule of strict construction will be applied in the interpretation hereof. Unless the context requires
otherwise, (a) any definition of or reference to any agreement, instrument or other document herein will be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein or therein), (b) any reference to any Laws herein
will be construed as referring to such Laws as from time to time enacted, repealed or amended, (c) any reference herein to any
person will be construed to include the person’s permitted successors and assigns, (d) the words “herein”, “hereof”
and “hereunder”, and words of similar import, will be construed to refer to this Agreement in its entirety and not
to any particular provision hereof, and (e) all references herein to Articles, Sections or Schedules, unless otherwise specifically
provided, will be construed to refer to Articles, Sections or Schedules of this Agreement. This Agreement has been executed in
English, and the English version of this Agreement will control.

 

14.5.       
Counterparts. This Agreement may be executed in counterparts with the same effect as if both Parties had signed the
same document. All such counterparts will be deemed an original, will be construed together and will constitute one and the same
instrument. Signature pages of this Agreement may be exchanged by facsimile or other electronic means without affecting the validity
thereof.

 

14.6.       
Entire Agreement. This Agreement, including the attached Schedules constitutes the entire agreement between the Parties
as to the subject matter of this Agreement, and supersedes and merges all prior discussions, representations, agreements and understandings
regarding the same, except for the Mutual NDA executed by the parties on [...***...] as amended on [...***...].

 

14.7.       
Force Majeure. Neither Party will be liable for delay or failure in the performance of any of its obligations hereunder
(other than the payment of money) if such delay or failure is due to causes beyond its reasonable control, including acts of God,
fires, floods, earthquakes, labor strikes, acts of war, terrorism or civil unrest (“Force Majeure”); provided,
however, that the affected Party notifies the other Party in writing within thirty (30) days of the Force Majeure event
(and continues to provide monthly status updates to the other Party for the duration of the effect); further provided
that the affected Party will use its reasonable efforts to avoid or remove such causes of non-performance and to mitigate the effect
of such occurrence, and will continue performance with reasonable dispatch whenever such causes are removed.

 

14.8.       
Further Assurances. Each Party agrees to do and perform all such further acts and things and will execute and deliver
such other agreements, certificates, instruments and documents necessary or that the other Party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and to evidence, perfect or otherwise confirm its rights
hereunder.

 

 

*Confidential Treatment Requested

    	CONFIDENTIAL	Page 26

    	 

    

 

14.9.       
Headings. Headings and captions are for convenience only and are not to be used in the interpretation of this Agreement.

 

14.10.   
Notices. Any notice required or permitted to be given by this Agreement will be in writing, in English, and will
be delivered by hand or overnight courier with tracking capabilities addressed as set forth below unless changed by notice so given:

 

	 	If to Capricor:	Capricor,
Inc.
			8840 Wilshire Blvd., 2nd Floor

			Beverly Hills, CA 90211

Attention:
[...***...]

Telephone: [...***...]

Facsimile: [...***...]

 

(with a copy
to)

[...***...]

General Counsel

[...***...]

 

If to Licensee:          Janssen
Biotech, Inc.

Attention:
President

[...***...]

 

(with a copy
to)          Johnson & Johnson

			One Johnson & Johnson Plaza

			New Brunswick, NJ 08933

    Attention: Chief
Intellectual Property Officer

    Facsimile: 732-524-5575

 

Any such
notice will be deemed given on the date delivered. A Party may add, delete (so long as at least one person is remaining), or change
the person or address to which notices should be sent at any time upon written notice delivered to the other Party in accordance
with this Section 14.10 (Notices).

 

14.11.   
Relationship of the Parties. Each Party is an independent contractor under this Agreement. Nothing contained herein
is intended or is to be construed so as to constitute Licensee and Capricor as partners, agents or joint venturers. Neither Party
has any express or implied right or authority to assume or create any obligations on behalf of or in the name of the other Party
or to bind the other Party to any contract, agreement or undertaking with any Third Party.

 

14.12.   
Severability. If any one or more of the provisions of this Agreement is held to be invalid or unenforceable, the
provision will be considered severed from this Agreement and will not serve to invalidate any remaining provisions hereof. The
Parties will negotiate in good faith to replace any invalid or unenforceable provision with a valid and enforceable one

 

 

 

*Confidential Treatment Requested

    	CONFIDENTIAL	Page 27

    	 

    

 

such that the
objectives contemplated by the Parties when entering this Agreement may be realized.

 

14.13.   
Third Party Beneficiaries. Except as expressly provided with respect to Capricor Indemnitees or Licensee Indemnitees
in Article 11 (Indemnification), there are no third party beneficiaries intended hereunder and no Third Party will have any right
or obligation hereunder.

 

14.14.   
Waivers and Modifications. The failure of any Party to insist on the performance of any obligation hereunder will
not be deemed to be a waiver of such obligation. Waiver of any breach of any provision hereof will not be deemed to be a waiver
of any other breach of such provision or any other provision on such occasion or any other occasion. No waiver, modification, release
or amendment of any right or obligation under or provision of this Agreement will be valid or effective unless in writing and signed
by all Parties hereto.

 

*********

 

(Signature page follows) 

 

    	CONFIDENTIAL	Page 28

    	 

    

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the Effective Date.

 

 

	JANSSEN BIOTECH, INC.	 	CAPRICOR, INC.
	 	 	 	 	 
	By: 	/s/ John Haney	 	By: 	/s/ Linda Marbán
	 	 	 	 	 
	Name: 	John Haney	 	Name: 	Linda Marbán
	Title: 	Vice President - Immunology
    Marketing	 	Title: 	Chief Executive Officer

 

    	 

    	 

    

 

 

[...***...]

 

 

*Confidential Treatment Requested

 

    	 

    	 

    

Capricor
Third Party License Schedule (Schedule B)

 

License Agreement
between Universita Degli Studi Di Roma “La Sapienza” effective June 21, 2006 (the “Rome License”),

 

 

Exclusive License
Agreement between The Johns Hopkins University and Capricor, Inc., effective June 22, 2006 (the "Johns Hopkins License”),
and

 

 

Exclusive License
Agreement between Cedars-Sinai Medical Center and Capricor, Inc., effective January 4, 2010 as amended by Amendment to License
Agreement dated February 25, 2013 and Second Amendment to License Agreement dated April 19, 2013 (the “Cedars-Sinai License”).

 

    	 

    	 

    

 

 

Johnson &
Johnson Universal Financial Calendar Schedule

 

 

 

 

    	 

    	 

    

 

Exclusive License Agreement Term Sheet
Schedule

 

 

[...***...] 

*Confidential Treatment Requested

 

    	 

    	 

    

 

Press Release Schedule

 

 

  

Final- Execution Version

 

 

Capricor Therapeutics
and Janssen Biotech, Inc. Enter into Exclusive License Option and Collaboration Agreement

 

LOS ANGELES, January
 , 2014 – Capricor Therapeutics, Inc. (OTCBB: CAPR) today announced that it has executed an exclusive license option
and collaboration agreement with Janssen Biotech, Inc. (Janssen) for its cell therapy program for cardiovascular applications,
including lead product, CAP-1002. CAP-1002 is an allogeneic cardiosphere derived cell (CDC) therapeutic under evaluation in patients
who have suffered a large myocardial infarction. Pursuant to the agreement, Capricor and Janssen will collaborate on elements of
cell manufacturing development . Capricor will contribute to the costs of the manufacturing collaboration, and will receive an
upfront payment of

$12.5 million from Janssen.

 

Under the terms of the agreement,
Janssen will have the right to enter into an exclusive license agreement for CAP-1002 following the review of six month data from
the ongoing ALLSTAR trial , which is Capricor’s Phase I/II trial of CAP -1002. If Janssen exercises its option rights, Capricor
will be eligible to receive up to $325 million in additional payments. In addition, a royalty would be paid on commercial sales
of CAP-1002.

 

“This collaboration
with Janssen, one of the world’s largest and most respected healthcare companies with a strong presence in cardiovascular
and metabolism, is a tremendous milestone for Capricor Therapeutics, and an important validation of our lead product, CAP -1002
and the underlying science. . We are proud to be working with them to support the continued development CAP-1002, and for the additional
non dilutive capital to further develop our research and development that will add to our pipeline said Capricor CEO, Dr. Linda
Marbán.

 

About Capricor Therapeutics

 

Capricor Therapeutics, Inc.
(CAPR), a publicly traded biotechnology company, is focused on the development of novel therapeutics to prevent and treat heart
disease. The Company has two leading product candidates: CAP-1002 and Cenderitide. The Company was formed through the November
2013 merger between Capricor, Inc., a privately held company whose mission is to improve the treatment of heart disease by commercializing
cardiac stem cell therapies for patients, and Nile Therapeutics, Inc., a clinical-stage biopharmaceutical company developing innovative
products for the treatment of cardiovascular diseases. Capricor Therapeutics’ stock will begin trading under the symbol “CAPR”
starting December 20, 2013. For additional information visit www.capricor.com.

 

 

About CAP-1002

 

CAP-1002, Capricor’s
lead product candidate, is a proprietary allogeneic adult stem cell therapy for

 

 

    	 

    	 

    

 

the treatment of heart disease. The product is
derived from donor heart tissue. The cells are expanded in the laboratory using a specialized process and then introduced directly
into a patient’s heart via infusion into a coronary artery using standard cardiac catheterization techniques.

 

CAP-1002 is currently not
an approved product and is strictly for investigational purposes.

 

Cautionary Note Regarding
Forward-Looking Statements

 

Statements in this press release
regarding the efficacy, safety, and intended utilization of Capricor’s product candidates; the conduct, size, timing and
results of discovery efforts and clinical trials; plans regarding regulatory filings, future research and clinical trials; plans
regarding current and future collaborative activities and the ownership of commercial rights; future royalty streams, and any other
statements about Capricor’s management team’s future expectations, beliefs, goals, plans or prospects constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of
historical fact (including statements containing the words "believes," "plans," "could," "anticipates,"
"expects," "estimates," "plans," "should," "target," "will," "would"
and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that
could cause actual results or events to differ materially from those indicated by such forward-looking statements.

 

More information about these and other risks
that may impact our business are set forth in our Form 10-K for the year ended December 31, 2012, as filed with the Securities
and Exchange Commission on June 21, 2013, in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, as filed
with the Securities and Exchange Commission on November 14, 2013, and in our Definitive Proxy Statement on Schedule 14A, as filed
with the Securities and Exchange Commission on October 10, 2013. All forward-looking statements in this press release are based
on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

 

 

 

    	 

    	 

    

 

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