Document:

Exhibit
10.4(c)

 

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

 

SIDE
LETTER TO SECOND AMENDED AND RESTATED LICENSE AGREEMENT

 

This
side letter (“Side Letter”) to the Second Amended and Restated License Agreement is made and entered into, effective
as of December 17, 2021 (the “Side Letter Effective Date”), by and among Hadasit Medical Research Services and Development
Ltd. (“Hadasit”), Cell Cure Neurosciences Ltd. (“CCN”) and Genentech, Inc. (“Genentech”)
and F. Hoffmann-La Roche Ltd. (“FHLR”; together with Genentech, “Roche”). Hadasit, CCN and Roche
are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.

 

Hadasit
and CCN entered into that certain Second Amended and Restated License Agreement, effective as of June 15, 2017, as amended on November
30 2017 and on December 1, 2019, (the “Agreement”), pursuant to which Hadasit granted an exclusive license to CCN
under certain of its intellectual property rights. Lineage Cell Therapeutics, Inc., parent of CCN (“Lineage”), and
Roche, concurrently with the execution of this Side Letter, will execute a global collaboration and license agreement (the “Roche
Agreement”; attached hereto as Exhibit A) related to the continued development and commercialization of products
containing or comprising human stem cell-derived (such as human embryonic stem cell-derived and human induced pluripotent stem cell-derived)
retinal pigment epithelial cells, and any precursors or progenitors thereof (“RPE Cells”) (including without limitation,
OpRegen®).

 

In
relation to the Roche Agreement, the Parties desire to modify certain terms and conditions under the Agreement solely as they apply to
the Roche Agreement and only with respect to the use of RPE Cells solely for use in cell therapy for the diagnosis, amelioration, prevention
and/or treatment of eye disorders (“RPE Field”). For clarity, such modifications shall only apply with respect to
the Parties’ obligations under the Agreement with respect to activities under the Roche Agreement. In addition, such changes shall
cease to apply if CCN or its assets relating to subject matter of the Roche Agreement is/are acquired by Roche or an Affiliate of Roche
or if CCN becomes an Affiliate of Roche.

 

Further
to the above, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties
hereby agree as follows:

 

1.
Definitions

 

1.1 Capitalized
Terms. Capitalized terms used in this Side Letter shall have the meanings set forth in the Agreement, unless otherwise defined hereunder.

 

2.
ACKNOWLEDGMENT; SCOPE; Opportunity to Cure Breach; DIRECT LICENSE TO ROCHE

 

2.1 Acknowledgment
of Roche Agreement. Hadasit hereby acknowledges and consents to the identity of Roche as a Sublicensee of Lineage as contemplated
under the Roche Agreement with Roche. Nothing in this Section 2.1 shall be deemed a confirmation by Hadasit that the Roche Agreement
is consistent with the terms of the Agreement or as a consent by Hadasit to any provisions that may be inconsistent with the Agreement,
except as specifically agreed to in this Side Letter.

 

    	 

     

    

 

2.2 Scope.
This Side Letter and the terms and conditions hereunder relate to the scope of the rights and obligations granted under the Agreement
for the RPE Field only.

 

2.3 Ability
for Roche to Cure Breach. If, at any time during the Term (as defined in the Roche Agreement), CCN breaches the Agreement, Hadasit
shall notify Roche of such breach in writing simultaneously with Hadasit’s notice thereof to CCN pursuant to the Agreement. If
CCN fails to cure such breach within the applicable cure period set forth in the Agreement and such breach was not caused by an act or
omission of Roche, Roche shall have the right, within thirty (30) days after the last day of CCN’s cure period to cure such breach
on behalf of CCN, provided Roche notifies Hadasit on or before the last day of CCN’s cure period under the Agreement that it intends
to cure such breach. For clarity, if Roche elects not to cure such breach, such election shall not be deemed a breach of this Side Letter
by Roche or of the Roche Agreement.

 

2.4
Direct License to Roche.

 

		2.4.1	During
                                            the Term (as defined in the Roche Agreement), if the Agreement, or any license thereunder
                                            with respect to the Licensed Materials or Licensed Technology in the RPE Field, is terminated
                                            or otherwise ceases to be in effect for any reason, Hadasit and CCN shall within [***] provide
                                            written notice thereof to Roche (the “Termination Notice”). Whether or
                                            not such notice is provided, the agreement attached hereto in Exhibit B (“Direct
                                            License”) will automatically and without further action required by Roche (including
                                            any obligation to pay to Hadasit any additional consideration that is not set forth in the
                                            Agreement with respect to Licensed Products in the RPE Field) go into effect, with effect
                                            from the effective date of termination of the Agreement (or, as applicable, termination of
                                            any of the license(s) thereunder with respect to the Licensed Materials or Licensed Technology.
                                            Upon effectiveness of the Direct License, CCN and Lineage hereby waive any claims against
                                            Hadasit for breach of the Agreement due to grant of the Direct License.
	 	 	 
		2.4.2	As
                                            a condition to the Direct License remaining in effect, within [***] of Roche receiving the
                                            Termination Notice, Roche shall: (a) provide written confirmation to Hadasit that (i) Roche
                                            is not in breach of the Roche Agreement at the time the Direct License becomes effective
                                            and (ii) termination of the Agreement did not result from an uncured material breach of the
                                            Roche Agreement by Roche; and (b) pay to Hadasit any outstanding amounts that are or become
                                            due under Article 3 of the Agreement (as amended by that certain side letter of even date
                                            herewith among Hadasit, CCN and Lineage) by CCN to Hadasit. For clarity, Roche shall not
                                            owe to Hadasit amounts in addition to, or in excess of, the amounts that would be owed by
                                            CCN to Hadasit pursuant to Article 3 of the Agreement with respect to the Licensed Products
                                            in the RPE Field. If Roche provides written notice to Hadasit that Roche does not wish to
                                            retain the Direct License, or if Roche does not satisfy its obligations under (a) and (b)
                                            of this Section 2.4.2, then the Direct License shall terminate upon the lapse of such [***]
                                            period.

 

    	2

     

    

 

3.
Amendments TO AGREEMENT

 

3.1 Amendment
to Section 2.2. Notwithstanding anything to the contrary stated in Section 2.2 of the Agreement or herein:

 

		3.1.1	With
                                            respect to Hadasit’s or its Affiliate’s exercise of the retained rights to practice
                                            the Licensed Technology and to use the Licensed Materials within the Field under Section
                                            2.2(A), Hadasit shall provide to Roche: (a) any results generated by Hadasit or its Affiliates
                                            following the date of this Side Letter using the [***] cell lines or RPE Cells derived therefrom,
                                            (b) any results received from any academic or not-for-profit research organizations using
                                            the Licensed Technology, [***] cell lines, or RPE Cells derived therefrom, transferred to
                                            such organizations pursuant to an MTA, subject to Section 3.1.2, and (c) any resulting proposed
                                            publications for Roche’s review and potential reasonable delay of publication to enable
                                            related patent filings.
	 	 	 
		3.1.2	With
                                            respect to Hadasit’s or its Affiliate’s exercise of its retained rights to transfer
                                            the Licensed Materials (except for the Licensed Feeder Cell Line) within the Field under
                                            Section 2.2(A)(ii), the MTA governing such transfer shall be substantially in the form of
                                            Annex F, which shall be revised to include a prohibition of Third Parties from filing any
                                            patent applications within the RPE Field.

 

3.2 Amendment
to Section 2.5. Notwithstanding anything to the contrary stated in Section 2.5 of the Agreement or herein:

 

		3.2.1	Roche,
                                            as the Sublicensee, may grant further sublicenses (through multiple tiers) (each, a “Further
                                            Sublicense”) in accordance with the Roche Agreement; provided that such Further
                                            Sublicenses comply with the terms of Section 2.5 of the Agreement, subject to the amendments
                                            set forth in this Section 3.2 and provided, further, that Roche shall remain responsible
                                            for each Further Sublicensee’s compliance with the applicable provisions of the Agreement
                                            in connection with such performance. CCN and Hadasit hereby agree that each Further Sublicense
                                            shall be deemed a “Sublicense” and each entity granted a Further Sublicense shall
                                            be deemed a “Sublicensee” for purposes of the Agreement.
	 	 	 
		3.2.2	Section
                                            2.5(i) of the Agreement shall not apply with respect to any Further Sublicensees.

 

    	3

     

    

 

		3.2.3	Section
                                            2.5(v) of the Agreement shall not apply with respect to any Further Sublicensee; provided
                                            that Roche remains responsible for such Further Sublicensee’s compliance with the applicable
                                            provisions of the Roche Agreement in connection with such Further Sublicensee’s performance.
                                            Notwithstanding the foregoing sentence, if Roche exclusively sublicenses its right to commercialize
                                            a Licensed Product under the Roche Agreement, Section 2.5(v) of the Agreement shall apply
                                            to such Further Sublicensee.
	 	 	 
		3.2.4	To
                                            satisfy its obligations under Section 2.5(v), Roche may, in its sole discretion, self-insure,
                                            in part or in whole, for coverage of any liability resulting from the performance of a Further
                                            Sublicensee.
	 	 	 
		3.2.5	Section
                                            2.5(vii) of the Agreement shall not apply with respect to any agreements between Roche and
                                            Further Sublicensees; provided that, Roche shall provide to Hadasit the identity of each
                                            such Further Sublicensee and the scope of rights granted to such Further Sublicensee with
                                            respect to Licensed Materials promptly after execution of the sublicense agreement with such
                                            Further Sublicensee.
	 	 	 
		3.2.6	Section
                                            2.5(viii)(A) of the Agreement shall not apply with respect to the performance of any activities
                                            under or in connection with the Roche Agreement; provided however that if the human embryonic
                                            stem cell line known as [***] is transferred to a Further Sublicensee, Roche shall provide
                                            to Hadasit the identity of such Further Sublicensee together with a confirmation that the
                                            Further Sublicensee has undertaken to limit its use of such line to the RPE Field.
	 	 	 
		3.2.7	Section
                                            2.5(x) of the Agreement shall not apply with respect to the performance of any activities
                                            under or in connection with the Roche Agreement; provided that if Roche desires to transfer
                                            Licensed Materials to a Further Sublicensee, Roche shall provide to Hadasit the identity
                                            of such Further Sublicensee together with a confirmation that the Further Sublicensee has
                                            undertaken to limit its use of such line to the RPE Field.
	 	 	 
		3.2.8	Pursuant
                                            to Section 2.5(xi) of the Agreement, Roche shall provide to Hadasit any amendments to the
                                            Roche Agreement, provided however that the approval provisions of Section 2.5(xi) of the
                                            Agreement shall not apply with respect to such amendments. To the extent any provision of
                                            the Roche Agreement that is referred to in this Side Letter is amended or is impacted by
                                            any such proposed amendment, such provision shall be deemed unchanged for purposes of this
                                            Side Letter unless Hadasit consents in writing to such amended provision (such consent not
                                            to be unreasonably withheld).

 

    	4

     

    

 

3.3 Amendment
to Section 4.1. Notwithstanding anything set forth in Section 4.1 of the Agreement, the obligations of CCN under Section 4.1 of the
Agreement with respect to the development of Licensed Products in the RPE Field shall be deemed satisfied for so long as Roche satisfies
its diligence obligations as set forth in Section 3.8 of the Roche Agreement with respect to a “Licensed Product” (as defined
in the Roche Agreement). For the avoidance of doubt, the Parties acknowledge and agree that a “Licensed Product” as defined
in the Roche Agreement qualifies as a “Licensed Product” as defined in the Agreement.

 

3.4 Amendment
to Article 5. Notwithstanding anything set forth in Article 5 of the Agreement:

 

		3.4.1	With
                                            respect to Roche’s obligations as a Sublicensee under Section 5.3 and Section 5.5 of
                                            the Agreement, such obligations shall not apply to Roche with respect to the performance
                                            of activities under or in connection with the Roche Agreement for so long as Roche complies
                                            with any applicable federal, state, local, foreign, or multinational law (including, GCP,
                                            GLP, GMP, and data protection and privacy laws), ethical guidelines (such the ISSCR guidelines
                                            and the American Academy of Sciences), statute, standard, ordinance, code, rule, regulation,
                                            resolution, or promulgation, or any order, writ, judgment, injunction, decree, stipulation,
                                            ruling, determination, or award entered by or with any governmental authority, or any license,
                                            franchise, permit, or similar right granted under any of the foregoing, or any similar provision
                                            having the force or effect of law with respect to Roche’s activities under the Roche
                                            Agreement or exercise of it rights.
	 	 	 
		3.4.2	Section
                                            5.8 of the Agreement shall not apply with respect to the performance of activities pursuant
                                            to the Roche Agreement. However, in the event that Roche decides to conduct a Phase IIb and/or
                                            a Phase III clinical trial in Israel in the RPE Field, Roche shall in good faith provide
                                            Hadasit with an opportunity to make a proposal to conduct the applicable clinical trial and
                                            include Hadasit in a priority review for Roche’s clinical trial feasibility assessment
                                            taking into account Hadassah Medical Organization’s previous experience, staff availability,
                                            competing studies, site equipment, patient population, enrollment potential, budget, and
                                            start-up timelines. Notwithstanding the foregoing, final clinical site selection shall be
                                            in Roche’s reasonable discretion.

 

3.5 Amendment
to Article 7. Notwithstanding anything set forth in Article 7 of the Agreement:

 

		3.5.1	With
                                            respect to Section 7.1 of the Agreement, with respect to activities performed under the Roche
                                            Agreement, (a) a Development Report shall be provided to Hadasit by CCN [***], and (b) such
                                            Development Report shall consist of a summary of Roche’s progress in the development
                                            of Licensed Products (as defined in the Roche Agreement). For the avoidance of doubt, such
                                            Development Report shall not be required to include (i) sales forecasts or (ii) any reports
                                            with respect to testing results regarding the Licensed Materials, including safety test results
                                            and QC characterization results that will be performed on the Licensed Materials by or on
                                            behalf of Roche, or any documentation related thereto.

 

    	5

     

    

 

		3.5.2	With
                                            respect to Section 7.2 of the Agreement, with respect to activities performed under the Roche
                                            Agreement, (a) the identity of the seller (as described in Section 7.2(ii) of the Agreement)
                                            shall not be required in sales report; and (b) deductions to Net Sales (as described in Section
                                            7.2(iii) of the Agreement) shall be listed by category of deduction (not individual deductions).

 

3.6 Amendment
to Article 9 and Article 10.

 

		3.6.1	Company
                                            may grant Roche the right to act in its place under Article 9 and Article 10 of the Agreement
                                            with respect to the prosecution, maintenance, defense, and enforcement of any Licensed Patents
                                            that cover the Licensed Products (as defined in the Roche Agreement) for so long as the Roche
                                            Agreement remains in effect. If Company grants such right, references to “Company”
                                            in Article 9 and Article 10 of the Agreement shall be replaced by “Roche” as
                                            applicable.

 

3.7 Amendment
to Article 11. Notwithstanding anything set forth in Article 11 of the Agreement:

 

		3.7.1	For
                                            the avoidance of doubt, the publication rights of Hadasit, Prof. Reubinoff, and other Researchers
                                            under Section 11.7 of the Agreement shall not apply with respect to the activities performed
                                            or information generated under the Roche Agreement. Hadasit represents and warrants that,
                                            except for (i) materials produced by Hadasit or HMO for CCN and (ii) materials received or
                                            work performed under clinical trial agreements between Hadasit and its Affiliates, on the
                                            one hand, and Lineage or CCN or their respective Affiliate, on the other hand, to its knowledge,
                                            neither Hadasit nor its Affiliates has received OpRegen® or access thereto.
                                            Hadasit further represents and warrants that neither Hadasit nor its Affiliates is conducting,
                                            will conduct, or will enable any third party to conduct, any research using OpRegen®.
	 	 	 
		3.7.2	For
                                            the avoidance of doubt, Section 11.8 shall not apply to any activities performed under the
                                            Roche Agreement, provided that such studies were not in progress as of the Side Letter Effective
                                            Date.

 

    	6

     

    

 

3.8 Amendment
to Article 13. Notwithstanding anything set forth in Article 13 of the Agreement:

 

		3.8.1	With
                                            respect to Section 13.4.1, any continued development efforts (including non-clinical development
                                            efforts) by CCN or Roche, and any periods during which either CCN or Roche, as applicable,
                                            is awaiting feedback from regulatory authorities shall qualify as “continuing clinical
                                            development” for purposes of Section 13.4.1.
	 	 	 
		3.8.2	With
                                            respect to Section 13.4.2, in the event that CCN fails to satisfy its obligations to furnish
                                            a Development Report under Section 7.1 of the Agreement, Hadasit shall provide written notice
                                            to Roche as set forth in Section 2.3 of this Agreement, and Roche shall have the right to
                                            cure such breach in accordance with such provision.
	 	 	 
		3.8.3	Section
                                            13.5 of the Agreement shall not apply with respect to any Company IP or any other Intellectual
                                            Property arising under or in connection with the performance of activities pursuant to the
                                            Roche Agreement.

 

4.
MISCELLANEOUS

 

4.1 Notices.
Any notice or communication required to be given by one Party to any other in connection with this Side Letter shall be made in accordance
with Article 17, mutatis mutandis, and shall specifically refer to this Side Letter. Notices to Roche shall be sent at the addresses
set forth below.

 

F.
Hoffmann-La Roche Ltd

Attention:
Legal Department

Grenzacherstrasse
124

CH-4070
Basel

Switzerland

 

and
to

 

Genentech,
Inc.

Attn:
Corporate Secretary

1
DNA Way

South
San Francisco, CA 94080

 

with
required copies (which shall not constitute notice) to:

 

Genentech,
Inc.

Attn:
Head of Global Asset & Alliance Management

1
DNA Way

South
San Francisco, CA 94080

 

    	7

     

    

 

4.2
Amendments. No amendment, modification, release, or discharge of this Side Letter shall be binding upon the Parties unless in
writing and duly executed by authorized representatives of all Parties. Hadasit and CCN each covenants to Roche that it will not amend
the Agreement in a manner that, directly or indirectly, would impair or have an adverse effect on any of Roche’s (sub)licenses
or other rights under the Agreement or the Roche Agreement, without Roche’s prior written consent. Hadasit and CCN acknowledge
that this Side Letter constitutes a valid amendment for purposes of Section 19.5 of the Agreement if and to the extent any terms and
conditions of the Agreement, as applicable, are expressly modified or amended by this Side Letter solely as they apply to the Roche Agreement.
Except as contemplated by the immediately preceding sentence, the terms and conditions of the Agreement shall remain unchanged as set
forth therein.

 

4.3
Assignment. Each of Hadasit, CCN, Roche and their respective Affiliates shall have the right to assign this Side Letter only to
the extent such assignment would be permitted under Article 14 of the Agreement (with respect to such agreement), including in the case
of Roche, as if Roche were CCN under the Agreement. Notwithstanding the foregoing, Roche shall have the right to assign this Side Letter
to any of its Affiliates together with the assignment of the Roche Agreement to such Affiliate, to the extent such assignment would be
permitted under Section 15.3 of the Roche Agreement and without the advance written consent of Hadasit or CCN.

 

4.4
Side Letter Controls. This is the entire Side Letter among the Parties with respect to the subject matter hereof and supersedes
all prior representations, understanding and agreements among the Parties with respect to the subject matter hereof. In the event of
any conflict between the Agreement and this Side Letter as it applies to Roche’s rights and obligations, the terms of this Side
Letter shall control with respect to Roche’s rights and obligations.

 

4.5
Governing Law. This Side Letter shall be governed by and interpreted in accordance with the laws of Israel and the Parties hereby
submit to the exclusive jurisdiction of the competent courts in Jerusalem.

 

4.6
Counterparts. This Side Letter may be executed in two or more counterparts, and each such counterpart hereof shall be deemed to
be an original instrument, but all such counterparts together shall constitute but one agreement. Delivery of an executed counterpart
of a signature page of this Side Letter by facsimile or other electronic transmission shall be effective as delivery of a manually executed
original counterpart of this Side Letter.

 

4.7
Termination. This Side Letter shall terminate concurrently upon the termination of the Roche Agreement only if the Roche Agreement
is terminated by (a) Lineage for Roche’s uncured material breach or (b) Roche in exercise of its right of elective termination.
For clarity, in the event that Roche does not satisfy the conditions set forth in Section 2.4.2 of this Side Letter, or Roche notifies
Hadasit that it does not wish to retain the Direct License, then this Side Letter shall terminate.

 

[Remainder
of the Page Intentionally Left Blank]

 

    	8

     

    

 

Hadasit,
CCN, FHLR, and Genentech have executed this Side Letter by their respective and duly authorized officers, as evidenced by their signatures
below.

 

	HADASIT
    MEDICAL RESEARCH SERVICES AND DEVELOPMENT LTD.	 
	 	 	 
	By:	/s/
    Carol Grumbach	 
	 	 	 
	Name:
    	Carol
    Grumbach	 
	 	 	 
	Title:	CFO	 
	 	 	 
	Date:	12/14/21	 
	 	 	 
	CELL
    CURE NEUROSCIENCES LTD. 	 
	 	 	 
	By:	/s/
    Rami Skaliter	 
	 	 	 
	Name: 	Rami
    Skaliter	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Date:	12/13/2021	 
	 	 	 
	LINEAGE
    CELL THERAPEUTICS, INC.	 
	 	 	 
	By:	/s/
    Brian Culley	 
	 	 	 
	Name:	Brian
    Culley	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Date:	12/13/2021	 

 

	F.
    HOFFMANN - LA ROCHE LTD	 	 	 
	 	 	 	 	 
	By:	/s/
    Barbara Schroeder de Castro Lopes	 	By:	/s/
    Vikas Kabra
	 	 	 	 	 
	Name: 	Barbara
    Schroeder de Castro Lopes	 	Name:	Vikas
    Kabra
	 	 	 	 	 
	Title:	Authorized
    Signatory	 	Title:	Head
    Transaction Excellence
	 	 	 	 	 
	Date:	12/14/2021	 	Date:	12/14/2021
	 	 	 	 	 
	GENENTECH,
    INC.	 	 	 
	 	 	 	 	 
	By:	/s/
    Edward Harrington	 	By:	/s/
    Andrew Le
	 	 	 	 	 
	Name:	Edward
    Harrington	 	Name:	Andrew
    Le
	 	 	 	 	 
	Title:	CFO,
    Genentech	 	By:	/s/
    Jon Aumais
	 	 	 	 	 
	Date:	12/14/2021	 	Name:	Jon
    AumaisExhibit 10.4(d)

 

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

 

Confidential

 

December
17, 2021

 

SECOND
SIDE LETTER TO SECOND AMENDED AND RESTATED LICENSE AGREEMENT

 

This
side letter (the “Second Side Letter”) to the Second Amended and Restated License Agreement is made and entered into,
effective as of December 17, 2021 by and between Hadasit Medical Research Services and Development Ltd. (“Hadasit”)
and Cell Cure Neurosciences Ltd. (“CCN”). Hadasit and CCN are sometimes referred to herein individually as a “Party”
and collectively as the “Parties”.

 

Hadasit
and CCN entered into that certain Second Amended and Restated License Agreement, effective as of June 15, 2017 (the “License
Agreement”) as amended in November 2017 by the First Amendment to Second Amended and Restated License Agreement (the “First
Amendment”) and on December 1, 2019 by the Second Amended and Restated License Agreement (the “Second Amendment”)
(the License Agreement as amended by the First Amendment and the Second Amendment, the “Agreement”), pursuant to which
Hadasit granted an exclusive license to CCN under certain of its intellectual property rights.

 

Lineage
Cell Therapeutics, Inc., parent of CCN (together with CCN, “Lineage”) and Genentech, Inc. (“Genentech”)
and F. Hoffmann-La Roche Ltd. (“FHLR”; together with Genentech, “Roche”) are entering into a global
collaboration and license agreement effective December 17, 2021 (the “Roche Agreement”) related to the continued development
and commercialization of products containing or comprising RPE cells (including without limitation, OpRegen®).

 

Lineage,
Hadasit and Roche have reached an agreement to modify certain terms and conditions under the Agreement solely as they apply to the Roche
Agreement, as reflected in a side letter of even date (the “First Side Letter”).

 

The
Parties have further agreed to modify certain terms and conditions under the Agreement solely as they apply to certain obligations of
CCN vis-à-vis Hadasit in relation to the Roche Agreement.

 

Further
to the above, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties
hereby agree as follows:

 

1.
Definitions

 

	1.1	Capitalized
    Terms. Capitalized terms used in this Second Side Letter shall have the meanings set forth in the Agreement, unless otherwise
    defined hereunder. 

 

    	 

     

    

 

2.
revised fINANCIAL UNDERSTANDINGS

 

	2.1	All
    references to the Roche Agreement shall be deemed references to the Roche Agreement as it exists on the effective date of this Second
    Side Letter. Lineage hereby undertakes not to amend the Roche Agreement in a manner that would impact the consideration to be received
    by Hadasit under the Agreement, as amended by this Second Side Letter, without Hadasit’s prior written consent. 
	 	 
	2.2	Net
    Sales and Royalties. 

 

	 	2.2.1	Definition
    of Net Sales, “Sale” and “Sold”. Notwithstanding the definition of “Net Sales” as appears
    in Section 1.2.28 of the Agreement, for purposes of calculating Royalties due to Hadasit on Sales of Licensed Products under the
    Roche Agreement, “Net Sales” shall have the meaning ascribed to such term in Section 1.95 of the Roche Agreement and
    “Sale” and “Sold” shall have the meaning ascribed to the term “Sales” under the Roche Agreement.
    
	 	 	 
	 	2.2.2	Royalties.
    Notwithstanding any provision of the Agreement, including, without limitation, the royalty rate pursuant to Section 3.1.2 and
    the duration of the Royalty Period as determined pursuant to Section 1.2.2 of the Agreement, the Parties hereby agree that with respect
    to royalties due on Net Sales generated under the Roche Agreement: 

 

	 	 	2.2.2.1	If
    the amount that would be due to Hadasit under Section 3.1.2 (as may be adjusted in accordance with Section 3.3) of the Agreement
    on any Net Sales under the Roche Agreement exceeds fifty percent (50%) of the amount due to Lineage on account of such Net Sales,
    the Royalties due to Hadasit under the Agreement with respect to such Net Sales will be reduced to an amount equal to fifty percent
    (50%) of the amount due to Lineage under the Roche Agreement on account of such Net Sales so that Lineage shall never be obligated
    to pay Hadasit Royalties in respect to any Licensed Product Sold pursuant to the Roche Agreement that exceeds more than fifty percent
    (50%) of the underlying royalty payment received from Roche;
	 	 	2.2.2.2	Lineage
    shall be obligated to pay Royalties to Hadasit in connection with Licensed Products Sold pursuant to the Roche Agreement only starting
    from and for as long as royalties are paid to Lineage in respect of such Licensed Products under the Roche Agreement; 
	 	 	2.2.2.3	Royalties
will be due and payable in the same manner as Sublicensing Receipts, i.e. within [***] of receipt of the underlying payments from Roche.
Lineage undertakes to diligently pursue the legal remedies available to it against Roche, should Lineage not receive payment with respect
to any Net Sales from Roche within [***] of the end of the calendar quarter in which such Net Sales were generated; and 
	 	 	2.2.2.4	Royalties
    shall be due and payable to Hadasit in the same currency received from Roche.

 

    	2

     

    

 

	2.3	Deductions
    from Sublicensing Receipts. 

 

	 	2.3.1	Pursuant
    to the Roche Agreement, Lineage and CCN have undertaken to: (i) carry out Licensed Product-related research, development and manufacturing
    activities for Roche, which are defined thereunder as the “Lineage Activities”; (ii) continue the conduct of the
    ongoing Phase I/IIa clinical trial entitled “Phase I/IIa Dose Escalation Safety and Efficacy Study of Human Embryonic Stem
    Cell-Derived Retinal Pigment Epithelium Cells Transplanted Subretinally in Patients With Advanced Dry-Form Age-Related Macular Degeneration
    (Geographic Atrophy)” and identified as NCT02286089, in the US and in Israel (collectively, the “Existing Trials”)
    and (iii) carry out technology transfer pursuant to Section 4 of the Roche Agreement (the “Technology Transfer”).
    
	 	2.3.2	CCN
    hereby confirms and declares that payment for services and the reimbursement of expenses in respect of the Lineage Activities, the
    Existing Trials and the Technology Transfer (collectively, the “Lineage Services”) have been taken into account
    in determining the Sublicensing Receipts that are payable by Roche under the Roche Agreement, although not separately itemized, due
    to internal considerations of Roche. 
	 	2.3.3	The
    budget for carrying out the Lineage Services, which includes overheads of [***] (the “Costs”) is attached hereto
    as Exhibit A (the “Budgeted Amount”).
	 	2.3.4	Hadasit
    hereby acknowledges CCN’s right to deduct the Budgeted Amount from the first Sublicensing Receipts paid by Roche pursuant to
    Section 6.1 of the Roche Agreement, provided, however, that the actual incurrence and/or expenditure of the Budgeted Amount
    shall be confirmed, on an annual basis, in the manner set forth in Section 1.2.7 of the Agreement, and any part of the Budgeted Amount
    not incurred or expended on the Lineage Services within [***] of the execution of the Roche Agreement shall be deemed Sublicensing
    Receipts as to which 21.5% will be immediately due and payable by CCN to Hadasit under the Agreement.
	 	2.3.5	For
    the avoidance of doubt, CCN shall be entitled to deduct the costs of additional development activities plus an overhead of [***],
    not to exceed the amounts shown on the preliminary budget attached hereto as Exhibit B from any future Sublicensing
    Receipts (i.e. under provisions other than Section 6.1 of the Roche Agreement) payable under the Roche Agreement if actually incurred
    and/or expended in carrying out development activities in relation to OpRegen v 1.3 pursuant to the Roche Agreement, if any. 

 

	2.4	The
    Parties hereby agree that upon Hadasit’s reasonable written request, Lineage shall cause the performance of an audit of Roche’s
    records in accordance with Section 7.9.2 of the Roche Agreement, at Hadasit’s expense. Should the auditor’s report show
    any underpayment by Roche to Lineage, Lineage will immediately provide Hadasit with the details of any such underpayment and promptly
    pay to Hadasit the amount owed by Lineage to Hadasit in respect any payment received by Lineage in respect of such underpayment together
    with interest thereon (to the extent received by Lineage) in accordance with the Agreement. Moreover, Lineage shall reimburse Hadasit
    for the cost of the audit should any such underpayment by Roche result in an underpayment by CCN to Hadasit in excess of [***].

 

    	3

     

    

 

	2.5	The
    Parties hereby agree that in the event of a termination of the Agreement and the grant of a Direct License by Hadasit to Roche as
    contemplated in First Side Letter, which license includes rights under Company IP, Section 13.5.2 shall not apply to amounts received
    by Hadasit under such Direct License.

 

3.
ENGAGEMENT OF CONSULTANTS

 

	3.1	Lineage
    hereby undertakes to engage Professor Benjamin Reubenoff and Professor Eyal Banin as scientific consultants in relation to the JAC
    (as defined in the Roche Agreement), provided that (a) they agree to be bound to confidentiality and invention assignment obligations
    as required under the Roche Agreement; and (b) Hadasit confirms its agreement to any such invention assignments. 

 

4.
MISCELLANEOUS

 

	4.1	Notices.
    Any notice or communication required to be given by one Party to any other in connection with this Second Side Letter shall be made
    in accordance with Section 17 of the Agreement and shall specifically refer to this Second Side Letter. It is hereby agreed that
    notwithstanding the provisions of Section 17 of the Agreement, notices in relation to the Agreement in general and to this Second
    Side Letter in particular may be served by electronic mail, rather than by facsimile, subject to receipt of confirmation of transmission,
    to the addresses set forth below. 

 

	 	If
    to Lineage: 
	 	 
	 	with
    a copy (which shall not constitute notice) to: 
	 	 
	 	If
    to Hadasit: 

 

	4.2	Amendments.
    No amendment, modification, release, or discharge of this Second Side Letter shall be binding upon the Parties unless in writing
    and duly executed by authorized representatives of both Parties and by Lineage. Hadasit and CCN confirm that this Second Side Letter
    constitutes a valid amendment for purposes of Section 19.5 of the Agreement. Except as contemplated by the immediately preceding
    sentence, the terms and conditions of the Agreement shall remain unchanged as set forth therein, save as amended by the First Side
    Letter.

 

    	4

     

    

 

	4.3	Assignment.
    Each of Hadasit and CCN and their respective Affiliates shall have the right to assign this Second Side Letter only to the extent
    such assignment would be permitted under Article 14 of the Agreement.
	 	 
	4.4	Side
Letter Controls. This is the entire Second Side Letter between Hadasit and CCN with respect to the subject matter hereof and supersedes
all prior representations, understanding and agreements between them with respect to the subject matter hereof. 
	 	 
	4.5	Counterparts.
    This Second Side Letter may be executed in one or more counterparts, and each such counterpart hereof shall be deemed to be an
    original instrument, but all such counterparts together shall constitute but one agreement. Delivery of an executed counterpart of
    a signature page of this Second Side Letter by electronic transmission shall be effective as delivery of a manually executed original
    counterpart of this Second Side Letter.
	 	 
	4.6	Termination.
    This Second Side Letter shall automatically terminate upon termination of the Roche Agreement for any reason. 

 

[Remainder
of the Page Intentionally Left Blank]

 

    	5

     

    

 

Confidential

 

Hadasit
and CCN have executed this Side Letter by their respective and duly authorized officers, as evidenced by their signatures below.

 

HADASIT
MEDICAL RESEARCH SERVICES AND DEVELOPMENT LTD.

 

	By:
    	/s/
    Carol Grumbach	 	By:
    	/s/
    Tamar Raz
	 	 	 	 	 
	Name:
    	Carol
    Grumbach	 	Name:	Tamar
    Raz
	 	 	 	 	 
	Title:
    	CFO
    	 	Title:	CEO
	 	 	 	 	 
	Date:	12/14/2021	 	Date:	12/14/2021

 

	CELL
CURE NEUROSCIENCES LTD.
	 
	 	 
	By:
    	/s/
    Rami Skaliter	 
	 	 	 
	Name:	Rami
    Skaliter	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Date:	12/14/2021	 

 

Read
and agreed:

 

	LINEAGE
    CELL THERAPEUTICS 	 
	 	 
	By:	/s/
    Brian M. Culley	 
	 	 	 
	Name:	Brian
    M. Culley	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Date:	12/14/2021	 

 

Signature
Page to the Side Letter

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