Document:

EX-10.2

 Exhibit 10.2 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. 

A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN
APPLICATION REQUESTING CONFIDENTIAL 
 TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934. 
 COLLABORATION AND OPTION AGREEMENT 

BY AND BETWEEN 
 FATE
THERAPEUTICS, INC. 
 AND 

ONO PHARMACEUTICAL CO., LTD. 

DATED 
 SEPTEMBER 14,
2018 

 TABLE OF CONTENTS 

 

											
	 	  	 	  	 	  	 	  	Page	 
	 ARTICLE 1
	  	 DEFINITIONS
	  	 	2	 
	 ARTICLE 2
	  	 COLLABORATION
	  	 	24	 
	 2.1
	  	 General Collaboration Overview
	  	 	24	 
		  	 2.1.1
	  	 ONO Obligations
	  	 	24	 
		  		  	 (a)
	  	 During the Research Term
	  	 	24	 
		  		  	 (b)
	  	 After the Research Term
	  	 	24	 
		  	 2.1.2
	  	 FATE Obligations
	  	 	25	 
		  		  	 (a)
	  	 During the Research Term
	  	 	25	 
		  		  	 (b)
	  	 After the Research Term
	  	 	26	 
	 2.2
	  	 Standards of Conduct; Records and Reports
	  	 	26	 
		  	 2.2.1
	  	 Standard of Conduct
	  	 	26	 
		  	 2.2.2
	  	 Collaboration Reports
	  	 	26	 
		  	 2.2.3
	  	 Subcontracting
	  	 	27	 
		  	 2.2.4
	  	 Records
	  	 	27	 
		  	 2.2.5
	  	 Cooperation
	  	 	27	 
	 2.3
	  	 Research and Development During the Research Term
	  	 	27	 
		  	 2.3.1
	  	 General
	  	 	27	 
		  	 2.3.2
	  	 Approval of Joint Development Plan
	  	 	28	 
		  	 2.3.3
	  	 [***]
	  	 	28	 
		  	 2.3.4
	  	 Ono Antigen Binding Domain
	  	 	29	 
		  	 2.3.5
	  	 Alternative Antigen Binding Domain
	  	 	29	 
		  	 2.3.6
	  	 [***]
	  	 	31	 
		  	 2.3.7
	  	 Additional Development
	  	 	34	 
	 2.4
	  	 ONO Option; CDCC Option.
	  	 	34	 
		  	 2.4.1
	  	 Exclusive Option Right
	  	 	34	 
		  	 2.4.2
	  	 Option Exercise Criteria
	  	 	35	 
		  	 2.4.3
	  	 Option Exercise.
	  	 	36	 
		  	 2.4.4
	  	 CDCC Option.
	  	 	36	 
		  		  	 (a)
	  	 Grant
	  	 	36	 
		  		  	 (b)
	  	 Exercise; Allocation of Responsibilities
	  	 	37	 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

											
	 	  	 	  	 	  	 	  	Page	 
		  		  	 (c)
	  	 Cost and Profit Sharing
	  	 	37	 
		  		  	 (d)
	  	 Sublicensees
	  	 	38	 
		  		  	 (e)
	  	 Opt-Out
	  	 	39	 
	 2.5
	  	 Development and Commercialization of Collaboration Products
	  	 	40	 
		  	 2.5.1
	  	 General
	  	 	40	 
		  	 2.5.2
	  	 Development Plan.
	  	 	40	 
		  	 2.5.3
	  	 Global Brand Strategy for Collaboration Products
	  	 	41	 
		  		  	 (a)
	  	 General
	  	 	41	 
		  		  	 (b)
	  	 Procedures
	  	 	41	 
		  		  	 (c)
	  	 Intellectual Property
	  	 	42	 
		  	 2.5.4
	  	 Regulatory Filings
	  	 	43	 
		  	 2.5.5
	  	 Commercialization Plan
	  	 	44	 
		  	 2.5.6
	  	 Development and Commercialization Information
	  	 	44	 
		  	 2.5.7
	  	 Responsibilities for the Conduct of Development, and General Costs, of Collaboration
Products
	  	 	45	 
		  	 2.5.8
	  	 Pharmacovigilance
	  	 	46	 
		  	 2.5.9
	  	 Investigator Sponsored Clinical Study
	  	 	46	 
	 ARTICLE 3
	  	 MANUFACTURE AND SUPPLY
	  	 	47	 
	 3.1
	  	 Antigen Binding Domain
	  	 	47	 
	 3.2
	  	 Manufacture and Supply of Collaboration Products
	  	 	47	 
		  	 3.2.1
	  	 Supply Agreement
	  	 	47	 
		  		  	 (a)
	  	 Clinical Supply
	  	 	47	 
		  		  	 (b)
	  	 Commercial Supply
	  	 	47	 
		  		  	 (c)
	  	 Basic Terms of the Supply Agreements
	  	 	48	 
		  	 3.2.2
	  	 Transfer Pricing
	  	 	48	 
	 3.3
	  	 Third Party Information
	  	 	49	 

											
	 	  	 	  	 	  	 	  	Page	 
	 ARTICLE 4
	  	 GOVERNANCE
	  	 	49	 
	 4.1
	  	 Joint Steering Committee
	  	 	49	 
		  	 4.1.1
	  	 Purpose
	  	 	49	 
		  	 4.1.2
	  	 Responsibilities
	  	 	49	 
		  	 4.1.3
	  	 Information Access
	  	 	50	 
		  	 4.1.4
	  	 Specific Responsibilities Prior to the Exercise of the ONO Option
	  	 	50	 
		  	 4.1.5
	  	 Role Following the Exercise of the ONO Option
	  	 	51	 
		  	 4.1.6
	  	 Membership; Meetings
	  	 	52	 
		  	 4.1.7
	  	 Project Management Team
	  	 	52	 
		  		  	 (a)
	  	 Composition
	  	 	52	 
		  		  	 (b)
	  	 Meetings and Reports
	  	 	52	 
		  	 4.1.8
	  	 Decision-Making; Limitations on JSC
	  	 	53	 
		  	 4.1.9
	  	 Secretary; Minutes
	  	 	54	 
		  	 4.1.10
	  	 Discontinuation of Committees
	  	 	54	 
	 4.2
	  	 Alliance Liaisons
	  	 	54	 
	 ARTICLE 5
	  	 LICENSES
	  	 	55	 
	 5.1
	  	 Licenses to ONO.
	  	 	55	 
		  	 5.1.1
	  	 Enabling License to ONO During the ONO Option Period
	  	 	55	 
		  	 5.1.2
	  	 License upon Exercise of ONO Option
	  			
		  		  	 [***]
	  	 	55	 
		  	 5.1.3
	  	 License upon Exercise of ONO Option
	  			
		  		  	 [***]
	  	 	55	 
	 5.2
	  	 Sublicensing by ONO
	  	 	56	 
	 5.3
	  	 Licenses to FATE
	  	 	58	 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

											
	 	  	 	  	 	  	 	  	Page	 
		  	 5.3.1
	  	 Enabling License to FATE
	  	 	58	 
		  	 5.3.2
	  	 License for Collaboration Candidates and Products
	  	 	58	 
		  	 5.3.3
	  	 License upon Exercise of CDCC Option
	  			
		  		  	 [***]
	  	 	59	 
	 5.4
	  	 License or Sublicense by FATE of Collaboration Candidate 1 in the FATE
Territory
	  	 	60	 
	 5.5
	  	 [***]
	  	 	61	 
	 5.6
	  	 Use of Names; Logo; Patent Marking
	  	 	62	 
	 5.7
	  	 Third Party In-Licenses
	  	 	62	 
	 5.8
	  	 No Implied Licenses; Retained Rights; Government Rights
	  	 	63	 
		  	 5.8.1
	  	 No Implied Licenses, Retained Rights
	  	 	63	 
		  	 5.8.2
	  	 Government Rights
	  	 	63	 
	 5.9
	  	 Non-Compete.
	  	 	63	 
		  	 5.9.1
	  	 [***]
	  	 	63	 
		  		  		  	 [***]
	  	 	63	 
		  		  		  	 [***]
	  	 	63	 
		  	 5.9.2
	  	 [***]
	  	 	64	 
		  		  		  	 [***]
	  	 	64	 
		  		  		  	 [***]
	  	 	64	 
	 5.10
	  	 [***]
	  	 	65	 
	 ARTICLE 6
	  	 FINANCIAL TERMS
	  	 	65	 
	 6.1
	  	 Upfront Option Fee
	  	 	65	 
	 6.2
	  	 Research and Development Costs
	  	 	65	 
		  	 6.2.1
	  	 ONO Research and Development
	  	 	65	 
		  	 6.2.2
	  	 FATE Research and Development
	  	 	66	 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

											
	 	  	 	  	 	  	 	  	Page	 
	 6.3
	  	 Milestone Payments
	  	 	66	 
		  	 6.3.1
	  	 OABD Research Milestone Fee for Collaboration Candidate 2
	  	 	67	 
		  	 6.3.2
	  	 AABD Research Milestone Fee
	  	 	67	 
		  	 6.3.3
	  	 Option Exercise Payments
	  	 	67	 
		  		  	 (a)
	  	 [***]
	  	 	67	 
		  		  	 (b)
	  	 [***]
	  	 	67	 
		  	 6.3.4
	  	 Development Milestones
	  	 	68	 
		  		  	 (a)
	  	 [***] in ONO Territory
	  	 	69	 
		  		  	 (b)
	  	 [***] in the United States
	  	 	69	 
		  		  	 (c)
	  	 [***] in Europe
	  	 	69	 
		  		  	 (d)
	  	 [***] in Asia
	  	 	70	 
		  	 6.3.5
	  	 Sales Milestones
	  	 	70	 
		  		  	 (a)
	  	 [***] in the ONO Territory
	  	 	71	 
		  		  	 (b)
	  	 [***] in the United States
	  	 	71	 
		  		  	 (c)
	  	 [***] in Europe
	  	 	71	 
		  		  	 (d)
	  	 [***] in Asia
	  	 	72	 
	 6.4
	  	 Royalty Payments
	  	 	72	 
		  	 6.4.1
	  	 [***] in the ONO Territory
	  	 	72	 
		  	 6.4.2
	  	 [***] in Asia
	  	 	73	 
		  	 6.4.3
	  	 [***] Outside Asia
	  	 	73	 
		  	 6.4.4
	  	 Necessary License
	  	 	74	 
		  	 6.4.5
	  	 Royalty Deduction
	  	 	75	 
		  	 6.4.6
	  	 Royalty Floor
	  	 	75	 
		  	 6.4.7
	  	 Royalty Payment Reports
	  	 	76	 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

											
	 	  	 	  	 	  	 	  	Page	 
	 6.5
	  	 Payments if CDCC Option is Exercised
	  	 	76	 
	 6.6
	  	 Manner of Payment
	  	 	76	 
	 6.7
	  	 Records Retention
	  	 	77	 
	 6.8
	  	 Audits
	  	 	77	 
	 6.9
	  	 Currency Exchange
	  	 	78	 
	 6.10
	  	 Taxes
	  	 	78	 
	 6.11
	  	 Interest Due
	  	 	80	 
	 ARTICLE 7
	  	 INTELLECTUAL PROPERTY
	  	 	80	 
	 7.1
	  	 Ownership of Inventions
	  	 	80	 
		  	 7.1.1
	  	 Inventorship
	  	 	80	 
		  	 7.1.2
	  	 Ownership of Inventions
	  	 	81	 
		  		  	 (a)
	  	 General Rules of Ownership
	  	 	81	 
		  		  	 (b)
	  	 Ownership by Subject Matter
	  	 	81	 
		  	 7.1.3
	  	 Disclosure
	  	 	82	 
	 7.2
	  	 Prosecution of FATE Patents
	  	 	83	 
		  	 7.2.1
	  	 Filing, Prosecution, and Maintenance of FATE Patents
	  	 	83	 
		  	 7.2.2
	  	 Opt Out by FATE
	  	 	83	 
	 7.3
	  	 Prosecution of ONO Patents
	  	 	85	 
		  	 7.3.1
	  	 Filing, Prosecution, and Maintenance of ONO Patents
	  	 	85	 
		  	 7.3.2
	  	 Opt Out by ONO
	  	 	85	 
	 7.4
	  	 Filing, Prosecution, and Maintenance of Joint Patent
	  	 	86	 
	 7.5
	  	 Enforcement of FATE Patents, ONO Patents or Joint Patent Against Infringers
	  	 	87	 
		  	 7.5.1
	  	 Notice
	  	 	87	 
		  	 7.5.2
	  	 Enforcement of FATE Patents
	  	 	88	 
		  	 7.5.3
	  	 Enforcement of ONO Patents
	  	 	89	 

											
	 	  	 	  	 	  	 	  	Page	 
		  	 7.5.4
	  	 Joint Enforcement in FATE CDCC Territory During CDCC Term
	  	 	91	 
		  	 7.5.5
	  	 Damages
	  	 	91	 
		  	 7.5.6
	  	 Upstream Limitations
	  	 	92	 
	 7.6
	  	 Patent Term Extension
	  	 	92	 
	 7.7
	  	 Notification of Patent Certification
	  	 	93	 
	 7.8
	  	 Regulatory Data Protection
	  	 	93	 
	 7.9
	  	 Defense Against Claims of Infringement of Third Party Patents
	  	 	94	 
	 7.10
	  	 Third Party Licenses
	  	 	94	 
		  	 7.10.1
	  	 Existing Agreements
	  	 	94	 
		  	 7.10.2
	  	 FATE Platform Improvement
	  	 	95	 
		  	 7.10.3
	  	 Necessary License.
	  	 	95	 
		  		  	 (a)
	  	 Notice
	  	 	95	 
		  		  	 (b)
	  	 Negotiations
	  	 	96	 
		  		  	 (c)
	  	 Allocation of Costs
	  	 	96	 
		  	 7.10.4
	  	 [***]
	  	 	97	 
	 7.11
	  	 Common Interest Disclosures
	  	 	97	 
	 ARTICLE 8
	  	 CONFIDENTIALITY
	  	 	98	 
	 8.1
	  	 Nondisclosure
	  	 	98	 
	 8.2
	  	 Exceptions
	  	 	98	 
	 8.3
	  	 Authorized Disclosure
	  	 	99	 
	 8.4
	  	 Terms of this Agreement
	  	 	100	 
	 8.5
	  	 Securities Filings
	  	 	100	 
	 8.6
	  	 Relationship to Confidentiality Agreement
	  	 	101	 
	 8.7
	  	 Collaboration Information
	  	 	101	 
	 8.8
	  	 Publications
	  	 	101	 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

											
	 	  	 	  	 	  	 	  	Page	 
		  	 8.8.1
	  	 Publication by a Party
	  	 	101	 
		  	 8.8.2
	  	 Publication of Clinical Trial Results
	  	 	102	 
	 8.9
	  	 Publicity
	  	 	102	 
	 ARTICLE 9
	  	 REPRESENTATIONS, WARRANTIES, AND COVENANTS; DISCLAIMERS; LIMITATION OF
LIABILITY
	  	 	103	 
	 9.1
	  	 Mutual Representations and Warranties
	  	 	103	 
	 9.2
	  	 Additional Representations and Warranties of FATE
	  	 	104	 
	 9.3
	  	 Additional Representations and Warranties of ONO
	  	 	107	 
	 9.4
	  	 Mutual Covenants
	  	 	109	 
	 9.5
	  	 DISCLAIMERS.
	  	 	110	 
	 9.6
	  	 LIMITATION OF LIABILITY
	  	 	111	 
	 ARTICLE 10
	  	 INDEMNITY AND INSURANCE
	  	 	111	 
	 10.1
	  	 ONO Indemnity
	  	 	111	 
	 10.2
	  	 FATE Indemnity
	  	 	112	 
	 10.3
	  	 Indemnification Procedure
	  	 	113	 
	 10.4
	  	 Mitigation of Losses
	  	 	113	 
	 10.5
	  	 FATE CDCC Territory
	  	 	113	 
	 10.6
	  	 Insurance.
	  	 	114	 
		  	 10.6.1
	  	 By ONO
	  	 	114	 
		  	 10.6.2
	  	 By FATE
	  	 	114	 
	 ARTICLE 11
	  	 TERM AND TERMINATION
	  	 	115	 
	 11.1
	  	 Term; Expiration
	  	 	115	 
	 11.2
	  	 Termination for Cause
	  	 	115	 
		  	 11.2.1
	  	 Material Breach
	  	 	115	 
		  	 11.2.2
	  	 Cure Period
	  	 	116	 
		  	 11.2.3
	  	 Disagreement as to Material Breach
	  	 	116	 
	 11.3
	  	 ONO Unilateral Termination Rights
	  	 	116	 

											
	 	  	 	  	 	  	 	  	Page	 
	 11.4
	  	 Termination for Insolvency
	  	 	117	 
	 11.5
	  	 Termination for Patent Challenge
	  	 	118	 
	 11.6
	  	 Consequences of Termination
	  	 	118	 
		  	 11.6.1
	  	 Consequences of Termination by ONO without Cause or by FATE
	  	 	118	 
		  	 11.6.2
	  	 Consequences of Termination by ONO for Cause, Insolvency or Patent Challenge of
FATE
	  	 	125	 
	 11.7
	  	 Public Disclosure of Termination
	  	 	127	 
	 11.8
	  	 Survival
	  	 	128	 
	 ARTICLE 12
	  	 DISPUTE RESOLUTION
	  	 	128	 
	 12.1
	  	 Exclusive Dispute Resolution Mechanism
	  	 	128	 
	 12.2
	  	 Resolution by Executive Officers
	  	 	129	 
	 12.3
	  	 Arbitration
	  	 	129	 
	 12.4
	  	 Preliminary Injunctions
	  	 	130	 
	 12.5
	  	 Patent Disputes
	  	 	130	 
	 12.6
	  	 Confidentiality
	  	 	131	 
	 12.7
	  	 No Trial by Jury
	  	 	131	 
	 ARTICLE 13
	  	 MISCELLANEOUS
	  	 	131	 
	 13.1
	  	 Severability
	  	 	131	 
	 13.2
	  	 Notices
	  	 	131	 
	 13.3
	  	 Force Majeure
	  	 	132	 
	 13.4
	  	 Assignment.
	  	 	132	 
	 13.5
	  	 Further Assurances
	  	 	134	 
	 13.6
	  	 Waivers
	  	 	134	 
	 13.7
	  	 Governing Law
	  	 	134	 
	 13.8
	  	 Relationship of the Parties
	  	 	135	 
	 13.9
	  	 Third Party Beneficiary
	  	 	135	 

											
	 	  	 	  	 	  	 	  	Page	 
	 13.10
	  	 Entire Agreement; Amendment; Exhibit
	  	 	135	 
	 13.11
	  	 Exports
	  	 	135	 
	 13.12
	  	 Interpretation; Headings
	  	 	135	 
	 13.13
	  	 Competition Law Filings
	  	 	136	 
	 13.14
	  	 Performance by Affiliates
	  	 	137	 
	 13.15
	  	 Anti-Corruption
	  	 	137	 
	 13.16
	  	 Counterparts; Electronic Delivery
	  	 	137	 

 COLLABORATION AND OPTION AGREEMENT 

THIS COLLABORATION AND OPTION AGREEMENT (the
“Agreement”) is made and entered into as of September 14, 2018 (the “Effective Date”), by and between FATE Therapeutics, Inc., a Delaware corporation located at 3535 General Atomics Court, Suite 200,
San Diego, California 92121, United States of America (“FATE”), and Ono Pharmaceutical Co., Ltd., 8-2, Kyutaromachi 1-chome, Chuo-ku, Osaka, Osaka 541-8564, Japan (“ONO”). FATE and ONO are sometimes referred to herein individually as a “Party” and collectively as
the “Parties”. 
 RECITALS 

WHEREAS, FATE has research, development and manufacturing expertise regarding hematopoietic cell
therapeutics, including T-cell therapeutics derived from engineered master induced pluripotent stem cell (iPSC) lines; 

WHEREAS, ONO possesses research, development, and commercialization expertise for research,
development and commercialization of pharmaceutical products in the field of oncology, including monoclonal antibody therapy; 

WHEREAS, ONO and FATE desire to conduct research, development and manufacturing activities to
discover and develop chimeric antigen receptor (CAR)-targeted T-cell therapeutics, where such CAR-targeted T-cell therapeutics
are derived from engineered master iPSC lines; 
 WHEREAS, ONO desires to have an option to
obtain an exclusive license to develop and commercialize certain CAR-targeted T-cell therapeutics in the Field (as defined below) in specific territories and, upon
exercise of such option by ONO, FATE is willing to grant to ONO such rights on the terms and conditions set forth herein; and 

WHEREAS, FATE desires to retain the right to manufacture the
CAR-targeted T-cell therapeutics for which ONO may obtain the rights as described above, and to have an option to obtain the right to
(co-)develop and (co-)commercialize with ONO certain CAR-targeted T-cell therapeutics for
which ONO may obtain the rights as described above in specific territories. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth
below, the Parties agree as follows: 
 ARTICLE 1 

DEFINITIONS 

The terms in this Agreement with initial letters capitalized, whether used in the singular or the plural, shall have the meaning set forth
below or, if not listed below, the meaning designated in places throughout this Agreement. 
 1.1    “Affiliate”
of a Party means any Person that directly or indirectly is controlled by, controls or is under common control with a Party. For the purposes of this definition, the term “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”) as used with respect to a Person means (a) in the case of a corporate entity, 

 
(i) direct or indirect ownership of more than fifty percent (50%) of the voting securities or capital stock of such entity or (ii) possession, directly or indirectly, of the power to
direct the management and policies of such entity, as applicable, whether through the ownership or control of voting securities, by contract or otherwise or (b) in the case of a non-corporate entity,
(i) direct or indirect ownership of more than fifty percent (50%) of the equity interests of such entity or (ii) possession, directly or indirectly, of the power to direct the management and policies of such entity, whether through the
ownership or control of voting securities, by contract or otherwise; provided that, if local Laws restrict foreign ownership, control shall be established by direct or indirect ownership of the maximum ownership percentage that may, under such local
Laws, be owned by foreign interests. 
 1.2    “Agreement” has the meaning set forth in the Preamble.

 1.3    “Allocable Overhead” means reasonable costs related to the Common Development Activity under
the Joint Development Plan including all personnel, equipment, utilities, consumables, materials, reagents and all other expenses for support staff relating to performance of Common Development Activities by each Party pursuant to the Joint
Development Plan to the extent reasonably attributable to supervision, occupancy costs and supporting services and that are allocated among company departments and projects based on an appropriate factor, such as space occupied, headcount or an
activity-based method; provided, that “Allocable Overhead” shall not include Out-of-Pocket Expenses and any costs attributable to general
corporate activities, such as executive management, investor relations, business development, legal affairs or finance. 

1.4    “Antigen Binding Domain” means an extracellular target binding domain derived
from a single-chain variable fragment (scFv) of a monoclonal antibody (or from other sources, such as Fab libraries or invariant human ligands). 

1.5    “Annual Net Sales” means the Net Sales generated over any given Calendar Year. 

1.6    “Asia” means Japan, Korea, Taiwan, People’s Republic of China, Hong Kong, Singapore, Macao, Malaysia,
Myanmar, Indonesia, Philippines, East Timor, Thailand, Vietnam, Laos, and Cambodia. 
 1.7    “Biosimilar
Product” means, with respect to a Collaboration Product and on a country- by-country basis, a product that (a) is marketed for sale in such country by a Third Party (not licensed, supplied
or otherwise authorized by a Party or its Affiliates or Sublicensees); (b) [***]. 
 1.8    “BLA” means a
Biologics License Application, or similar application that is submitted to the FDA, or a foreign equivalent of the FDA, for marketing approval of a Collaboration Product in a given jurisdiction. 

1.9    “BLA Approval” means the Marketing Approval of a BLA by the FDA for a Collaboration Product in the United
States, or a foreign equivalent of the FDA for a Collaboration Product in the applicable jurisdiction. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.10    “Business Day” means a day other than
(a) Saturday, Sunday or any day on which commercial banks located in New York, New York are authorized or obligated by Laws to close in case of any obligations of FATE hereunder, and (b) Saturday, Sunday, other national holidays in Japan
or ONO’s corporate holidays in case of any obligations of ONO hereunder; provided, that ONO shall have appropriately provided FATE with any such relevant corporate holidays at least one (1) month in advance. 

1.11    “Calendar Quarter” means the respective periods of three (3) consecutive calendar
months ending on March 31, June 30, September 30 and December 31; provided, however, that (a) the first Calendar Quarter of any particular period shall extend from the commencement of such period to the end of the first complete Calendar
Quarter thereafter; and (b) the last Calendar Quarter shall end upon the effective date of the expiration or termination of this Agreement. 

1.12    “Calendar Year” means (a) for the first Calendar Year of the Term, the period beginning
on the Effective Date and ending on December 31, 2018, (b) for each Calendar Year of the Term thereafter, each successive period beginning on January 1 and ending twelve (12) consecutive calendar months later on December 31, and (c) for
the last Calendar Year of the Term, the period beginning on January 1 of the Calendar Year in which this Agreement expires or terminates and ending on the effective date of expiration or termination of this Agreement. 

1.13    “CDCC Term” means, with respect to each of the U.S. or Europe and with respect to [***], the
period of time commencing on FATE’s exercise of the CDCC Option and ending on the earlier of [***]. 

1.14    “Change of Control” means the occurrence of any of the following: 

(a)    A Party entering into a merger, consolidation, stock sale or sale or transfer of all or
substantially all of its assets, or other similar transaction or series of transactions with another entity, unless, following such transaction or transactions, (i) the individuals and entities who were the beneficial owners of the outstanding
voting securities of such Party immediately prior to such transaction beneficially own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of the corporation or other entity
resulting from such transaction (“Successor”) in substantially the same proportions as their ownership immediately prior to such transaction of such outstanding voting securities, and (ii) more than fifty percent (50%) of the
members of the Board of Directors or similar governing body of the Successor were members of the Board of Directors of such Party at the time of the execution of the initial agreement regarding such transaction or transactions, or the action of the
Board of Directors of such Party, governing such transaction; or 
 (b)    any transaction or
series of related transactions in which any person or entity or group of persons or entities acquires beneficial ownership of securities of a Party representing more than fifty percent (50%) of the combined voting power of the then outstanding
securities of such Party. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.15    “Chimeric Antigen Receptor”
or “CAR” means a recombinant synthetic modular fusion protein receptor that comprises an Antigen Binding Domain, a spacer domain, a transmembrane domain, and an intracellular signaling domain (such as a domain containing
immunoreceptor tyrosine-based activation motifs (ITAMs)). 
 1.16    “Clearance Date” means the
date on which the following conditions are met with respect to a Competition Law Filing under Section 13.13 (Competition Law Filings): (a) the waiting period under the HSR Act or
other applicable Competition Law shall have expired or earlier been terminated; (b) no injunction (whether temporary, preliminary or permanent) prohibiting effectiveness of exercise of the ONO Option or the
Opt-Out, as applicable, shall be in effect; (c) no judicial or administrative proceeding opposing such effectiveness shall be pending; and (d) no requirements or conditions shall have been imposed by
the DOJ, FTC or other applicable governmental authority in connection with such Competition Law Filing, other than requirements or conditions that are satisfactory to the Party on whom such requirements or conditions are imposed. 

1.17    “Clinical Trials” means Phase I Trials, Phase II Trials, Phase III Trials, Phase IV Trials,
and/or variations of such trials (for example, phase II/III studies). 

1.18    “Co-Development and Co-Commercialization Option Period” or “CDCC Option Period” means, with respect to [***], the period beginning on [***] with respect
to [***] and ending [***]. 
 1.19    “Collaboration” means the Research, Development and Commercialization
activities conducted by the Parties pursuant to this Agreement. 
 1.20    “Collaboration
Candidate” means, as applicable, either Collaboration Candidate 1, Collaboration Candidate 2, or where referred to collectively, both Collaboration Candidate 1 and Collaboration Candidate 2. 

1.21    “Collaboration Candidate 1” means a
CAR-targeted T-lymphocyte therapeutic derived from a master iPSC line and generated under the Joint Development Plan, where such master iPSC line is engineered to [***],
for which FATE is conducting Research and Development under the Joint Development Plan and for which: (a) ONO has not exercised the ONO Option pursuant to Section 2.4.3 (Option Exercise); and (b) the
applicable ONO Option Period has not expired. 
 1.22    “Collaboration Candidate 2”
means a CAR-targeted T-lymphocyte therapeutic derived from a master iPSC line and generated under the Joint Development Plan, where such master iPSC line is engineered
to [***], for which FATE is conducting Research and Development under the Joint Development Plan and for which: (a) ONO has not exercised the ONO Option pursuant to Section 2.4.3 (Option Exercise); and (b) the
applicable ONO Option Period has not expired. 
 1.23    “Collaboration Candidate
Selection Criteria” means the criteria necessary to support ONO’s decision as to whether to exercise the ONO Option for each Collaboration Candidate, as set forth in Exhibit 1.23
(Collaboration Candidate Selection Criteria) and as may be updated from time to time pursuant to Section 2.4.2(a) (Option Exercise Criteria). For the avoidance of
doubt, Exhibit 1.23 (Collaboration Candidate Selection Criteria) provides the specific Collaboration Candidate Selection Criteria for Collaboration Candidate 1 and for Collaboration Candidate 2. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.24    “Collaboration Product” means, as
applicable, either Collaboration Product 1, Collaboration Product 2, or where referred to collectively, both Collaboration Product 1 and Collaboration Product 2. 

1.25    “Collaboration Product 1” means a product, pharmaceutical preparation, or
formulation containing, as its active ingredient, Collaboration Candidate 1 (including any Combination Product containing Collaboration Candidate 1), provided that ONO has exercised the ONO Option pursuant to
Section 2.4.3 (Option Exercise) prior to the expiration of the ONO Option Period for Collaboration Candidate 1. 

1.26    “Collaboration Product 2” means a product, pharmaceutical preparation, or
formulation containing, as its active ingredient, Collaboration Candidate 2 (including any Combination Product containing Collaboration Candidate 2), provided that ONO has exercised the ONO Option pursuant to
Section 2.4.3 (Option Exercise) prior to the expiration of the ONO Option Period for Collaboration Candidate 2. 

1.27    “Combination Product” means a Collaboration Product that includes (a) a Collaboration
Candidate and (b) at least one (1) additional therapeutically active pharmaceutical ingredient other than a Collaboration Candidate incorporated in any Collaboration Product. To be a Combination Product, all ingredients (including without
limitation the drug substance) shall be presented together in the same therapeutic formulation or as part of a co-packaged and/or label- directed combination therapy as a single product and invoiced as one
(1) product. Except for those drug delivery vehicles, adjuvants or excipients that are recognized by the FDA or any foreign equivalent as active ingredients, drug delivery vehicles, adjuvants and excipients are hereby deemed not to be
“therapeutically active pharmaceutical ingredients,” and their presence shall not be deemed to create a Combination Product for purposes of this Section 1.27 (Combination Product). 

1.28    “Commencement” or “Commence” means, when used with respect to Clinical Trials, the dosing
of the first human patient with the first dose in such Clinical Trials and, with respect to IND Enabling Studies, the start of the first of such studies. 

1.29    “Commercialization” or “Commercialize” or “Commercial” means activities
conducted by, or on behalf of, a Party (including by its Affiliates or its Sublicensees) that are directed to commercial manufacturing and supply, obtaining pricing and reimbursement approvals, marketing, promoting, distributing, importing,
exporting, offering for sale or selling a Collaboration Product, and carrying out Phase IV Trials or other Clinical Trials conducted for the purpose of market expansion, each commenced after First Commercial Sale of a Collaboration Product anywhere
in the world. 
 1.30    “Commercialization Plan” means, with respect to a Collaboration Product,
a plan that details the Commercialization activities to be conducted (a) by ONO in the applicable ONO Territory for both Collaboration Product 1 and Collaboration Product 2, (b) by FATE in the FATE Territory for Collaboration Product 1 and
(c) by both Parties in the [***] Territory with respect to [***] during the CDCC Term, in each case including a budget with respect to any activities for which the Parties will share costs and expenses incurred in connection therewith. 

 1.31    “Commercially Reasonable
Efforts” means, as to (a) [***], or (b) [***], efforts consistent with the efforts and resources normally used by ONO or FATE, as applicable, in the exercise of its reasonable business discretion relating to the research, development
or commercialization of a product that is [***]. 
 1.32    “Committee” means each of the JSC and/or any
subcommittees created by the JSC pursuant to Section 4.1.5(d) (Role Following the Exercise of the ONO Option). 

1.33    “Competitive Product” means as applicable, either Competitive Product 1, Competitive Product
2, or where referred to collectively, both Competitive Product 1 and Competitive Product 2. 

1.34    “Complete” means, when used with respect to a Clinical Trial, the date on which the Party conducting such
Clinical Trial completes the statistical analysis and delivers a report to the JSC of such statistical analysis for such Clinical Trial. 

1.35    “Confidential Information” means all trade secrets, processes, formulae, data, Know- How,
improvements, inventions, chemical structures, CAR constructs, techniques, marketing plans, strategies, customer lists, or other information that has been created, discovered, or developed by a Party or its Affiliates, or has otherwise become known
to a Party or its Affiliates, or to which rights have been assigned to a Party or its Affiliates, as well as any other information and Materials that are deemed confidential to or by a Party or its Affiliates (including without limitation all
information and Materials embodying such information of a Party’s or its Affiliates’ customers and any other Third Party and their consultants), in each case that are disclosed or communicated by such Party or its Affiliates to the other
Party or its Affiliates, and marked “confidential” or “proprietary”, whether such disclosure or communication is in oral, written, graphic, or electronic form. If the Confidential Information is disclosed orally, visually or in
other intangible form, it shall be identified as confidential at the time of disclosure and reduced to a written summary marked “confidential” or “proprietary” to be prepared by the Disclosing Party and delivered to the Receiving
Party within thirty (30) days after such disclosure. Notwithstanding the foregoing, the following shall be deemed Confidential Information of the Disclosing Party regardless of whether such information is marked “confidential” or
“proprietary” or reduced to writing if disclosed orally, visually or in other intangible form: information exchanged between the Parties, either from Committee discussions or through the Alliance Liaison, or [***]. 

1.36    “Controlled” or “Control” means, when used in reference to
Know-How, Patents, Confidential Information, or intellectual property rights, the legal authority or right (either by ownership or license) of a Party (or any of its Affiliates) to grant a license or
sublicense of such Know-How, Patents, or intellectual property rights to the other Party, or to otherwise disclose such Know-How, Patents or Confidential Information to
such other Party, without breaching the terms of any agreement with a Third Party, or misappropriating such Know-How, Patents or Confidential Information of a Third Party. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.37    “Development” means all
non-clinical, pre-clinical and clinical drug development activities conducted under the Joint Development Plan reasonably relating to advancing (a) Collaboration
Candidate(s) during the Research Term, and (b) subject to the exercise by ONO of the ONO Option in accordance with Section 2.4.3 (Option Exercise), Collaboration Product(s) during the Term.
Development shall include, without limitation, [***]. Development excludes all Commercialization activities. When used as a verb, “Develop” means to engage in Development. 

1.38    “Dollar” or “$” means the lawful currency of the United States. 

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

1.40    “EMA” means the European Medicines Agency, or any successor agency thereto. 

1.41    “Europe” or “EU” means (a) the countries that are members of the European Union as
of the Effective Date of this Agreement or that become members of the European Union thereafter, (b) the United Kingdom, including England, Northern Ireland, Scotland, and Wales and (c) Switzerland. 

1.42    “Executive Officers” means the Chief Executive Officer of FATE and the Executive Director of
Discovery and Research of ONO. 
 1.43    “FATE” has the meaning set forth in the Preamble. 

1.44    “FATE CDCC Territory” means the United States and Europe, but excluding any
Opt- Out Territory. 
 1.45    “FATE Cell Therapy” means (a) any Collaboration
Candidate and Collaboration Product for which this Agreement is terminated [***] and (b) all Collaboration Candidates and Collaboration Products if this Agreement is terminated in its entirety (i) [***]. 

1.46    “FATE Intellectual Property” means the FATE Patents, the FATE Know-How and FATE’s interest in Joint Inventions and Joint Patents, subject to Section 7.10.2 (FATE Platform Improvement). 

1.47    “FATE Know-How” means (a) all Know-How Controlled by FATE or its Affiliates as of the Effective Date; (b) all Know-How Controlled by FATE or its Affiliates at any time during the Term [***] and (c)
[***], that is primarily and directly related to and/or reasonably necessary or useful for the identification, research, manufacture, formulation, delivery, packaging, use, Development and/or Commercialization of any of the Collaboration Candidates
and/or Collaboration Products by ONO, or its Affiliates or Sublicensees, or a Third Party doing any of the foregoing on ONO’s behalf. 

1.48    “FATE Patents” means any and all (a) Patents Controlled by FATE or its Affiliates as of
the Effective Date which are set forth on Exhibit 1.48 (FATE Patents); (b) Patents Controlled by FATE or its Affiliates at any time during the Term [***] and (c) [***] and/or (ii) would be
infringed, without a license granted hereunder, by the identification, research, manufacture, formulation, delivery, packaging, use, Development and/or Commercialization of any of the Collaboration Candidates or Collaboration Products by ONO, or its
Affiliates or Sublicensees, or a Third Party doing any of the foregoing on ONO’s behalf. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.49    “FATE Platform Technology” means FATE’s proprietary
technology related to: [***]. 
 1.50    “FATE Territory” means (a) [***], all Territories other
than Asia; and (b) [***], the FATE CDCC Territory during the CDCC Term or, subject to ONO’s election in Section 2.3.5 (Alternative Antigen Binding Domain)
of Asia, all Territories other than Asia. 
 1.51    “FDA” means the U.S. Food and Drug Administration, or
any successor agency thereto. 
 1.52    “Field” means all applications for diagnostic, therapeutic, prognostic
and prophylactic uses in humans, including the Oncology Field. 
 1.53    “First Commercial
Sale” means, with respect to any Collaboration Product, the first sale to a Third Party of such Collaboration Product in any country in the ONO Territory for ONO or in the FATE Territory for FATE, as the case may be, after Regulatory
Approval of such Collaboration Product has been granted, or such marketing and sale is otherwise permitted, by the Regulatory Authority of such country, excluding registration samples, compassionate use, and use in Phase IV Trials or Investigator
Sponsored Clinical Study for which no payment has been received. 
 1.54    [***]. 

1.55    “Full Time Equivalent” or “FTE” means the equivalent of the
work of one employee full time during one (1) full year of work for the Common Development Activities in accordance with the Joint Development Plan. 

1.56    “FTE Costs” means the amount calculated by multiplying the FTE Rate by the number of FTEs to
be put on the conduct of any study or Clinical Trial of Common Development Activities. 
 1.57    “FTE
Rate” means the price of the work per FTE per year, and shall cover all Allocable Overhead relating to performance of Common Development Activities by each Party pursuant to the Joint Development Plan. 

1.58    “GAAP” means generally accepted accounting principles in the United States, consistently applied. 

1.59    “Good Clinical Practices” or “GCP” means the standards,
practices and procedures set forth in the guidelines entitled in “Good Clinical Practice: Consolidated Guideline,” including without limitation related regulatory requirements imposed by the FDA or (as applicable) any equivalent or similar
standards in jurisdictions outside the United States, to the extent that such standards are applicable in the jurisdiction in which the relevant Clinical Trial is conducted or required to be followed in the jurisdiction in which Regulatory Approval
of a Collaboration Product will be sought and “ICH HARMONISED TRIPARTITE GUIDELINE”. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.60    “Good Laboratory Practices”
or “GLP” means the regulations set forth in 21 C.F.R. Part 58 and the requirements expressed or implied thereunder imposed by the FDA or (as applicable) any equivalent or similar standards in jurisdictions outside the United States.

 1.61    “Good Manufacturing Practices” or “GMP” means
(a) the regulations set forth in 21 C.F.R. Parts 210–211, 820 and 21 C.F.R. Subchapter C (Drugs), Quality System Regulations and the requirements thereunder imposed by the FDA, (b) EC Directive 2003/94/EC and applicable EMA guidance
documents, (c) any similar or equivalent regulations and requirements in Japan and (d) any similar or equivalent regulations or requirements in other jurisdictions that the Parties agree in writing to include. 

1.62    “IFRS” means the International Financial Reporting Standards. 

1.63    “IND” means any Investigational New Drug application, as defined in the United States Federal Food, Drug
and Cosmetics Act, as amended from time to time, and the regulations promulgated thereunder, filed with the FDA pursuant to Part 312 of Title 21 of the U.S. Code of Federal Regulations, including any amendments thereto. References herein to IND
shall include, to the extent applicable, any comparable filing(s) outside the United States (such as a CTA in the European Union) necessary to Commence Clinical Trials. 

1.64    “IND Enabling Studies” means studies comprising
pre-clinical studies on Collaboration Candidates and Collaboration Products, conducted under GLP, the protocol and results of which are intended to be used to support an IND, including, but not limited to
PK/ADME studies, potency studies, pharmacodynamics, safety, toxicology, pharmacology, pre-formulation, and formulation development. 

1.65    “Indication” means any disease or condition classified as a three-character category in International
Statistical Classification of Diseases and Related Health Problems (or “ICD”) 10- CM published by the World Health Organization, that a Collaboration Product is intended to be used to diagnose, treat or prevent, which use is the
subject of a separate Regulatory Filing to support a Regulatory Approval for such use. [***]. 
 1.66    “Issuance
of BLA Filing Letter” means acceptance of the complete BLA filing by FDA or a foreign equivalent of the FDA for review of a Regulatory Filing for Regulatory Approval or Marketing Approval, or
any action or inaction having the equivalent effect in the future as a result of any changes in the regulations governing the process of such filing and acceptance. 

1.67    “Investigator Sponsored Clinical Study” means a clinical study
or research of a Collaboration Product that is sponsored and conducted by a physician, physician group or other Third Party not acting on behalf of a Party, its Affiliates or Sublicensee and who does not have a license from a Party or its Affiliates
or Sublicensee to Commercialize such Collaboration Product, pursuant to an IND owned by such Third Party in the case of a Clinical Trial, and with respect to which a Party or its Affiliates or Sublicensee provides clinical supplies of the
Collaboration Product, funding or other support for such clinical study or research. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.68    “Joint Development Plan”
means a plan that details all Research and Development activities to be conducted pursuant to this Agreement with respect to (a) Collaboration Candidate(s) during the respective Research Term, and (b) subject to the exercise by ONO of the
ONO Option in accordance with Section 2.4.3 (Option Exercise), Collaboration Product(s) in the ONO Territory and the FATE Territory during the Term. The Joint Development Plan shall include any
Common Development Activities in and outside the ONO Territory, in each case including a budget with respect to any activities for which the Parties will share costs and expenses incurred in connection therewith. The Joint Development Plan for the
activities to be conducted during the first twelve (12) months of the Research Term is set forth on Exhibit 1.68 (Joint Development Plan) and will be amended to include the
activities of subsequent periods from time to time, such amendment of which will be approved pursuant to Section 2.3.2 (Approval of Joint Development
Plan). The Joint Development Plan does not include activities to be conducted by ONO in connection with its research and development of the [***] prior to ONO’s delivery of such [***]. 

1.69    “Know-How” means technical information and know-how, including without limitation biological, chemical, pharmacological, toxicological, clinical, assay, trade secrets, and manufacturing data, nonclinical, preclinical and clinical data, the specifications of
ingredients, manufacturing processes, formulation, specifications, sourcing information, quality control and testing procedures, and related know-how and trade secrets. 

1.70    “Knowledge” means [***]. 

1.71    “Laws” means all laws, statutes, rules, regulations, ordinances and other pronouncements having the effect
of law of any federal, national, multinational, state, provincial, county, city or other political subdivision, domestic or foreign, in each case that are applicable to the activity in question and the jurisdiction in which it is conducted. 

1.72    “Major Patent Territory” means [***]. 

1.73    “Materials” means any tangible biological, chemical or physical materials, including, for example,
compounds, tissues, fluids, cells, cell lines, plasmids, gene constructs, and laboratory animals, and parts or components thereof. 

1.74    “Multi-national Clinical Trial” means any Clinical Trial that is conducted in
at least one country in the ONO Territory and at least one country in the FATE Territory, in accordance with one common protocol and conducted by both Parties. 

1.75    “Net Sales” means, with respect to a particular time period, the total amounts invoiced to
Third Parties by ONO, its Affiliates or Sublicensees for sale or other distribution of Collaboration Products during such time period to Third Parties, less the following deductions to the extent actually allowed or incurred with respect to such
sales: 
 (a)    [***] 

(b)    [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (c)    [***] 

(d)    [***] 

(e)    [***] 

(f)    [***] 

(g)    [***] 

Notwithstanding the foregoing, amounts billed by ONO, or its Affiliates or Sublicensees, for the sale of Collaboration Products among ONO, its Affiliates and
its Sublicensees for resale to Third Parties shall not be included in the computation of Net Sales hereunder. Net Sales shall be accounted for in accordance with GAAP or IFRS, as applicable. Net Sales shall exclude any samples of Collaboration
Product transferred or disposed of at no cost for Clinical Trials including compassionate use, Investigator Sponsored Clinical Study, promotional or educational purposes. 

Notwithstanding the foregoing, in the event a Collaboration Product is sold in a country in the Territory as a Combination Product, Net Sales of the
Combination Product will be calculated as follows: 
 (i)    [***] 

(ii)    [***] 

(iii)    [***] 

(iv)    [***] 
 [***]

 1.76    “Oncology Field” means: (a) with respect to Collaboration Product 1, [***]; and
(b) with respect to Collaboration Product 2, [***]. 
 1.77    “ONO” has the meaning set forth in the
Preamble. 
 1.78    “ONO Antigen Binding Domain” means the
Antigen Binding Domain provided by ONO to FATE for Research and Development [***] under this Agreement, where such Antigen Binding Domain (a) is proprietary to or, subject to Section 7.10.3 (Necessary
License) is Controlled by, ONO and (b) binds one of the target antigens listed on Exhibit 1.78 (Target Antigens for [***]) when such target
antigen [***] and such binding is the intended primary mechanism of action [***]. 
 1.79    “ONO
Intellectual Property” means the ONO Know-How, the ONO Patents and the ONO’s interest in Joint Invention and Joint Patent. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.80    “ONO
Know-How” means (a) all Know-How Controlled by ONO or its Affiliates as of the Effective Date; (b) all
Know-How Controlled by ONO or its Affiliates at any time during the Term [***] and (c) [***] that is primarily and directly related to and/or reasonably necessary or useful for the identification, research,
manufacture, formulation, delivery, packaging, use, Development and/or Commercialization of any of the Collaboration Candidates, Collaboration Products or FATE Cell Therapy, including the ONO Antigen Binding Domain, by FATE, or its Affiliates or
Sublicensees, or a Third Party doing any of the foregoing on FATE’s behalf. 
 1.81    “ONO
Option Period” means, for each Collaboration Candidate, the time period beginning on the Effective Date and expiring upon the date that is [***], subject to Section 2.4.3 (Option Exercise).

 1.82    “ONO Patents” means any and all (a) Patents Controlled by ONO or its Affiliates as
of the Effective Date; (b) all Patents Controlled by ONO or its Affiliates at any time during the Term [***] and (c) [***] and/or (ii) would be infringed, without a license granted hereunder, by the identification, research, manufacture,
formulation, delivery, packaging, use, Development and/or Commercialization of any of the Collaboration Candidates, Collaboration Products or FATE Cell Therapy, including the ONO Antigen Binding Domain, by FATE, or its Affiliates or Sublicensees, or
a Third Party doing any of the foregoing on FATE’s behalf. 
 1.83    “ONO Territory” means
(a) for [***], the territory of Asia, and (b) for [***], worldwide or, subject to [***], the territory of Asia. 

1.84    “Out-of-Pocket
Expenses” means payments invoiced by a Third Party in relation to the Research and Development activities that a Party is required to pay and that pertain to work performed by such Third Party after the Effective Date that is
directly and solely attributable to the Research and Development activities under the Joint Development Plan, where such payments shall be evidenced by invoices or receipts issued by such Third Party. 

1.85    “Patents” means patents and patent applications and (a) any foreign counterparts thereof,
(b) all divisionals, continuations, continuations in-part thereof or any other patent application claiming priority directly or indirectly to (i) any such specified patents or patent applications or
(ii) any patent or patent application from which such specified patents or patent applications claim direct or indirect priority, and (c) all patents issuing on any of the foregoing, and any foreign counterparts thereof, together with all
registrations, reissues, re-examinations, renewals, supplemental protection certificates, or extensions of any of the foregoing, and any foreign counterparts thereof. 

1.86    “Payment Quarter” means the respective periods of three (3) consecutive months ending
on a day before the same date of the Effective Date forthcoming every three consecutive (3) months following the Effective Date during the Research Term; provided, however, that the last Payment Quarter shall end upon the last date of the
Research Term. 
 1.87    “Person” means any individual, firm, corporation, partnership, limited liability
company, trust, business trust, joint venture, governmental authority, association or other entity. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.88    “Phase I Trial” means the
first human clinical trial of a Collaboration Product in any country, the principal purpose of which is a preliminary determination of safety in healthy individuals or patients, as more fully defined in 21 C.F.R. § 312.21(a), or its successor
regulation, or the equivalent in any foreign country. 
 1.89    “Phase II Trial”
means a human clinical trial of a Collaboration Product in any country that is intended to explore a variety of doses, dose response, and duration of effect, and to generate initial evidence of clinical safety and activity in one or more target
patient populations, as more fully described in 21 C.F.R. § 312.21(b), or its successor regulation, or the equivalent in any foreign country. 

1.90    “Phase III Trial” means a human clinical trial of a Collaboration Product in
any country that is (a) conducted after evidence suggesting effectiveness of the Collaboration Product has been obtained pursuant to one or more previous human clinical trials, and (b) conducted to gather additional information about
effectiveness and safety as needed to evaluate the benefit-risk relationship of the drug and to provide an adequate basis for submission of a BLA to (i) the FDA, as more fully defined in 21 C.F.R. § 312.21(c), or its successor regulation
or (ii) equivalent Regulatory Filings with similar requirements in a country other than the United States. 

1.91    “Phase IV Trial” means a human clinical trial for a Collaboration Product
Commenced after receipt of Regulatory Approval in the country for which such trial is being conducted and that is conducted within the parameters of the Regulatory Approval for the Collaboration Product. Phase IV Trials may include, without
limitation, epidemiological studies, modeling and pharmacoeconomic studies of Collaboration Product and post-marketing surveillance studies. 

1.92    “Prior CDAs” means the Mutual Nondisclosure Agreements between FATE and ONO having [***].

 1.93    “Regulatory Approvals” or “Marketing Approval” means,
with respect to any Collaboration Product in any jurisdiction, all approvals from any Regulatory Authority necessary, legally or practically, for the Commencement of Clinical Trials or the sale of the Collaboration Product in such jurisdiction in
accordance with Laws, including without limitation any approvals for importation, manufacture, pricing, and/or reimbursement. 

1.94    “Regulatory Authority” means any national or supranational governmental authority, including
without limitation the FDA, EMA or Kourousho (i.e., the Japanese Ministry of Health, Labour and Welfare (“JMHW”)), or any successor agency thereto, that has responsibility in countries in the Territory over the Development and/or
Commercialization of a Collaboration Candidate and/or a Collaboration Product. 
 1.95    “Regulatory
Filings” means any and all regulatory applications, filings, approvals and associated correspondence required to commence Development, manufacture, marketing, sale and importation of Collaboration Products in, or into, each country
or jurisdiction in the Territory. 
 1.96    “Research” means all scientific investigation activities conducted
under the Joint Development Plan reasonably relating to advancing (a) Collaboration Candidate(s) during the Research Term, and (b) subject to the exercise by ONO of the ONO Option in accordance with
Section 2.4.3 (Option Exercise), Collaboration Product(s) during the Term. When used as a verb, “Research” means to engage in Research. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.97    “Research Term” means, with respect to each
Collaboration Candidate, the period commencing on the Effective Date and ending on the earliest of (a) the date the JSC determines that such Collaboration Candidate has met the Collaboration Candidate Selection Criteria, (b) termination by
ONO of the Research of such Collaboration Candidate and (c) the date that is the later of (i) four (4) years after the Effective Date, which may be extended by mutual agreement of the Parties and (ii) completion of all activities set
forth in the Joint Development Plan for such Collaboration Candidate that are to be completed in order to evaluate whether such Collaboration Candidate has met the Collaboration Candidate Selection Criteria. 

1.98    “Royalty Term” means, on a
country-by-country and Collaboration Product-by- Collaboration Product basis, the period commencing on the First Commercial Sale
of a Collaboration Product in a country and ending on the date that is the later to occur of (a) expiration of the last Valid Claim covering (i) the composition of matter of, formulation of, or method of using, such Collaboration Product
in the applicable country of sale, or (ii) the manufacture of such Collaboration Product in the applicable country of manufacture; and (b) fifteen (15) years after the First Commercial Sale of such Collaboration Product in such country.

 1.99    “Sublicense” means a license or sublicense granted by written agreement pursuant to which a Third
Party became a Sublicensee. 
 1.100    “Sublicensee” means (a) any Third Party granted a license or
sublicense by a Party of any of the rights Controlled by such Party under FATE Intellectual Property or ONO Intellectual Property, as the case may be, to use, sell, offer to sell, promote, distribute, import, export, label, package and otherwise
Develop and/or Commercialize a Collaboration Product within a particular country of its respective Territory, and/or (b) a Third Party granted a further Sublicense, in each case of subsection (a) and (b) in this
Section 1.100 as set forth in Section 5.2 (Sublicensing by ONO) or Section 5.4 (License
or Sublicense [***] in the FATE Territory). 
 1.101    “Target 1” means
[***]. 
 1.102    “Target 2” means [***]. 

1.103    “T Cell Biology” means [***]. 

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

1.105    “Territory” means the world, including both of the ONO Territory and the FATE Territory, or either of the
ONO Territory or the FATE Territory, as the case may be. 
 1.106    “Third Party” means any Person other than
ONO, FATE, and their respective Affiliates. 
 1.107    “United States” or “U.S.”
means the United States of America and all its territories and possessions. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 1.108    “Valid Claim” means a claim within the FATE Patents or
Joint Patents filed or issued in the ONO Territory, [***] that has not been abandoned or allowed to lapse or a claim within an issued United States or international patent that has not expired, lapsed, or been cancelled or abandoned, and that has
not been dedicated to the public, disclaimed, or held unenforceable, invalid, or been cancelled by a court or administrative agency of competent jurisdiction in an order or decision from which no appeal has been or can be taken, including without
limitation through opposition, re-examination, reissue or disclaimer. For any Royalty Term of FATE Cell Therapy, “Valid Claim” means a claim within the ONO Patents or Joint Patents filed and/or issued in the Territory,
[***] that has not been abandoned or allowed to lapse or a claim within an issued United States or international patent that has not expired, lapsed, or been cancelled or abandoned, and that has not been dedicated to the public, disclaimed, or held
unenforceable, invalid, or been cancelled by a court or administrative agency of competent jurisdiction in an order or decision from which no appeal has been or can be taken, including without limitation through opposition, re-examination, reissue or disclaimer. 
 1.109    Additional Definitions.
Each of the following definitions is set forth in the Section of this Agreement indicated below: 
  

			
	 Definition
	  	 Section

	[***]	  	[***]
	Additional Development	  	2.3.7
	Alliance Liaison	  	4.2
	[***]	  	[***]
	Annual R&D Fees	  	6.2.2
	Bankruptcy Code	  	11.4
	Breaching Party	  	11.2.1
	CAR Sequence	  	1.48
	CDCC Option	  	2.4.4(a)
	Clinical Supply Agreement	  	3.2.1(a)
	Collaboration Report	  	2.2.2
	Commercial Supply Agreement	  	3.2.1(b)
	Common Brand Name	  	2.5.3(a)
	Common Development Activities	  	2.5.2(b)
	Competition Law Filing	  	2.4.3(b)
	Competition Laws	  	2.4.3(b)
	[***]	  	[***]
	[***]	  	[***]
	Competitive Product Infringement	  	7.5.1
	[***]	  	[***]
	Cure Period	  	11.2.1
	Development Milestone Payment	  	6.3.4
	Disclosing Party	  	8.1

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

			
	 Definition
	  	 Section

	Disputes	  	12.1
	Exercise Date	  	2.4.3(a)
	Existing Agreements	  	7.10.1
	FATE Indemnitees	  	10.1
	FATE In-Licensed Platform Improvement	  	7.10.2
	FATE Logo	  	5.6
	[***]	  	[***]
	Force Majeure	  	13.3
	HSR Act	  	2.4.3(b)
	ICC Rules	  	12.3.1
	ICD	  	1.65
	Indemnification Claim	  	10.3
	Indemnitee	  	10.3
	Indemnitor	  	10.3
	Indirect Taxes	  	6.10.4
	Inventions	  	7.1.1
	JMHW	  	1.94
	Joint Inventions	  	7.1.2(c)
	Joint IP Prosecuting Party	  	7.4
	Joint Patents	  	7.4
	Joint Patent Costs	  	7.4
	Joint Steering Committee or JSC	  	4.1.1
	JSC Chairperson	  	4.1.6
	Licensed Party	  	11.5
	Losses and Claims	  	10.1
	Necessary License	  	7.10.3(a)
	Non-breaching Party	  	11.2.1
	Non-redomiciling Party	  	6.10.2
	[***]	  	6.3.1
	[***]	  	2.3.3
	ONO Indemnitees	  	10.2
	ONO Option	  	2.4.1
	Option Exercise Payments	  	6.3.3
	Opt-Out	  	2.4.4(e)
	Opt-Out Effective Date	  	2.4.4(e)
	Opt-Out Territory	  	2.4.4(e)
	Owning Party	  	11.5
	Party or Parties	  	Preamble
	Pharmacovigilance Agreement	  	2.5.8
	Potential Necessary License	  	7.10.3(a)
	Project Management Team or PMT	  	4.1.7(a)
	Project Manager	  	4.1.7(a)

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

			
	 Definition
	  	 Section

	Receiving Party	  	8.1
	Redomiciling Party	  	6.10.2
	[***]	  	6.4.6
	Sales Milestone Payments	  	6.3.5
	Supply Agreements	  	3.2.1(b)
	Successor	  	1.14(a)
	Term	  	11.1
	[***]	  	[***]
	[***]	  	7.10.4
	Unexpected Cost Increase	  	2.3.7
	Withholding Amount	  	6.10.1

 ARTICLE 2 

COLLABORATION 

2.1    General Collaboration Overview. 

2.1.1    ONO Obligations. 

(a)    During the Research Term. 

(i)    Under the Joint Development Plan. During the
Research Term, ONO shall undertake Research and Development activities assigned to it in accordance with the Joint Development Plan, with the objective of advancing each Collaboration Candidate to meet the Collaboration Candidate Selection Criteria,
including [***] so that FATE may undertake further Research and Development activities in accordance with the Joint Development Plan with the objective of advancing Collaboration Candidate 2 to meet the Collaboration Candidate Selection Criteria,
[***]. 
 (ii)    Independent of the Joint
Development Plan. During the Research Term and pursuant to terms and conditions of this Agreement and [***] in particular, ONO shall use Commercially Reasonable Efforts to research and develop, at its sole discretion and
expense and independent of the Joint Development Plan, [***] with the objective of delivering to FATE such [***]. 

(b)    After the Research Term. After the Research Term, ONO shall
use Commercially Reasonable Efforts to Develop and Commercialize all Collaboration Products for which it has exercised the ONO Option in accordance with Section 2.4.3 (Option Exercise) in
the applicable Oncology Field in the applicable ONO Territory at its sole expense, subject to Section 2.5.7 (Responsibilities for the Conduct of
Development, and General Costs of, Collaboration Products) with respect to the cost sharing of the Common Development Activities, and in accordance
with the terms and conditions of this Agreement and the Joint Development Plan and Commercialization Plan, provided, that (i) with respect to [***], ONO shall use Commercially Reasonable Efforts to Develop and Commercialize it in the Oncology
Field applicable to [***], in the ONO Territory, including to conduct any Common Development Activities assigned to it in accordance with Section 2.5.2 (Development Plan),

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
and the allocation of costs between FATE and ONO, and subsequently specified in the Joint Development Plan; and (ii) in the event FATE exercises the CDCC Option with respect to [***], then
with respect to the FATE CDCC Territory during the CDCC Term, ONO shall use Commercially Reasonable Efforts to Develop and Commercialize it in the Oncology Field applicable to [***] in the ONO Territory, including to undertake the Common Development
Activities and other activities allocated to ONO in the FATE CDCC Territory in accordance with Sections 2.4.4 (CDCC Option) and 2.5.2 (Development Plan) and subsequently specified in the Joint Development Plan and cost sharing pursuant
to Section 2.4.4 (CDCC Option) during the CDCC Term, and co-Commercialization activities in accordance with Section 2.4.4 (CDCC Option) and subsequently
specified in the Commercialization Plan. 
 2.1.2    FATE Obligations. 

(a)    During the Research Term. During the Research Term, FATE
shall undertake Research and Development activities assigned to it in accordance with the Joint Development Plan, with the objective of advancing each Collaboration Candidate to meet the Collaboration Candidate Selection Criteria for the relevant
Collaboration Product so that ONO may determine whether to exercise the ONO Option with respect thereto. As part of its activities under the Joint Development Plan, pursuant to terms and conditions of this Agreement, FATE shall use Commercially
Reasonable Efforts to: (i) [***] (ii) [***] and (iii) [***]. 
 (b)    After the Research Term. 

(i)    [***] After the Research Term, FATE shall use Commercially Reasonable Efforts to Develop and Commercialize
[***], in the Oncology Field applicable to [***], in the FATE Territory at its sole expense, subject to Section 2.5.7 (Responsibilities for the Conduct
of Development, and General Costs of, Collaboration Products) with respect to the cost sharing of the Common Development Activities,
and in accordance with the terms and conditions of this Agreement and the Joint Development Plan, including to conduct any Common Development Activities assigned to it in accordance with Section 2.5.2
(Development Plan) and the allocation of costs between FATE and ONO, and subsequently specified in the Joint Development Plan. 

(ii)    [***] After the Research Term, with respect to [***], subject to the exercise of the CDCC Option by FATE,
FATE shall use Commercially Reasonable Efforts to Develop and Commercialize [***] in the Oncology Field applicable to [***] in the [***] Territory during the CDCC Term, including to undertake during the CDCC Term the Common Development Activities
and other activities allocated to FATE in the [***] Territory in accordance with Sections 2.4.4 (CDCC Option) and 2.5.2 (Development Plan) subsequently
specified in the Joint Development Plan and cost sharing pursuant to Section 2.4.4 (CDCC Option) during the CDCC Term, and co-Commercialization
activities in accordance with Section 2.4.4 (CDCC Option) and subsequently specified in the Commercialization Plan. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 2.2    Standards of Conduct; Records and Reports. 

2.2.1    Standard of Conduct. Each Party shall conduct all such
Research, Development and Commercialization activities in compliance with Laws, including without limitation all legal and regulatory requirements pertaining to the design and conduct of Clinical Trials. 

2.2.2    Collaboration Reports. As agreed in each JSC meeting or as otherwise agreed between the Parties, each
Party will provide the JSC with written development reports or presentations (“Collaboration Reports”). Collaboration Reports shall include [***]. Collaboration Reports will also include [***]. 

2.2.3    Subcontracting. Subject to and without limiting
Section 5.2 (Sublicensing by ONO) and Section 5.4 (License or Sublicense
[***] in the FATE Territory), each Party may fulfill its Research, Development and Commercialization obligations under this Agreement through subcontracting to a Third Party
contractor or contract service organization; provided that: (a) such subcontracting by a Party shall not adversely affect its ability to fulfill its obligations under this Agreement or the rights of the other Party under this Agreement;
(b) any such Third Party contractor to whom such Party discloses Confidential Information shall enter into an appropriate written agreement obligating such Third Party contractor to be bound by obligations of confidentiality and restrictions on
use of such Confidential Information that are no less restrictive than the obligations in Article 8 (Confidentiality); (c) such Party will obligate such Third Party contractor to agree in writing to assign or license (with the right to grant
sublicenses) to such Party any inventions (and Patents covering such inventions) made by such Third Party contractor in performing such services for such Party that are necessary for the Research, Development and Commercialization of Collaboration
Candidates or Collaboration Products, as applicable, and (d) such Party shall at all times be responsible for the performance of such Third Party contractor and shall remain primarily responsible to the other Party for the fulfillment of its
obligations under this Agreement even after such obligations are subcontracted to such Third Party contractor. 

2.2.4    Records. Each Party shall, and shall require its Affiliates, Sublicensees and Third Party
contractors to, maintain complete and accurate hard and/or electronic copies of records of all work conducted in furtherance of the Research, Development and Commercialization of Collaboration Candidates and Collaboration Products, as the case may
be, and all results, data, and developments made in conducting such activities. Such records shall be complete and accurate and shall fully and properly reflect all such work done and results achieved in sufficient detail and in good scientific
manner appropriate for patent and regulatory purposes. Each Party shall provide to the other Party copies of such records promptly upon any reasonable request. 

2.2.5    Cooperation. Each Party will provide reasonable consultation to the other Party, as
reasonably requested by the other Party, in connection with such other Party’s Research, Development and Commercialization activities under this Agreement. 

2.3    Research and Development During the Research Term. 

2.3.1    General. During the Research Term, FATE shall have primary responsibility for conducting all
Research and Development activities in accordance with the Joint Development Plan. Except as otherwise expressly provided in this Agreement or in the Joint Development Plan, the Parties shall [***]. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 2.3.2    Approval of Joint
Development Plan. Within ten (10) Business Days after the Effective Date, the JSC shall formally approve the Joint Development Plan set forth on Exhibit 1.68 (Joint Development Plan) submitted by FATE which
covers Research and Development activities for the first year of the Research Term. For each subsequent year of the Research Term, FATE shall, [***], submit the draft Joint Development Plan for the subsequent year (covering the Research and
Development activities [***] of the year thereafter) of the Research Term to the JSC for review. The Parties shall mutually discuss and the JSC shall approve such updated Joint Development Plan [***]. Any addition, revision or amendment to the Joint
Development Plan during the Research Term shall be subject to the unanimous decision by the JSC, with neither Party having final decision-making authority with respect thereto. 

2.3.3    [***] 

2.3.4    [***]. During the Research Term, ONO shall establish the criteria for incorporating the [***]. ONO
shall provide updates to the JSC with respect to its research and development of the ONO Antigen Binding Domain. ONO shall consider, in good faith, any comments from the JSC with respect to the identity and the research and development of the ONO
Antigen Binding Domain. Upon determination by ONO that an ONO Antigen Binding Domain has met the criteria for [***]. As soon as reasonably practical, ONO shall deliver to FATE [***] and all ONO Know-How
directly relevant to such ONO Antigen Binding Domain then Controlled by ONO, and FATE (and ONO, to the extent any such activities are assigned to ONO under the Joint Development Plan) shall undertake further Research and Development to incorporate
such ONO Antigen Binding Domain [***] in accordance with the Joint Development Plan. FATE (and ONO, to the extent any activities are assigned to ONO under the Joint Development Plan) shall use Commercially Reasonable Efforts to complete all
activities as set forth in the Joint Development Plan to enable ONO to exercise ONO Option during the Research Term, provided, however, in the case FATE finds it is difficult to complete all activities as set forth in the Joint Development Plan
during the Research Term, FATE shall promptly notify ONO of such fact and Parties shall discuss in good faith to extend the Research Term to complete such activities. 

2.3.5    Alternative Antigen Binding Domain. [***] 

2.3.6    [***] 

[***] 
 [***] 

2.3.7    Additional Development. If, due to unexpected technical, scientific, medical,
and/or market condition factors, either Party determines that it is advisable to perform Research and Development not anticipated in the then-current Joint Development Plan (“Additional Development”), the costs of which, together with the
costs of previous Research and Development activities performed by FATE under the then-current Joint Development Plan, exceed the amounts set forth in the annual budget included in such Joint Development Plan prior to such date (the foregoing, an
“Unexpected Cost Increase”), the Party shall promptly notify 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
such determination to the JSC. Then, the Parties shall meet to discuss the circumstances giving rise to the Unexpected Cost Increase and to evaluate possible ways of avoiding such Unexpected Cost
Increase, or of updating the Joint Development Plan and allocating the cost of conducting any such Additional Development between the Parties. In this instance, the JSC shall be responsible for approving such updated Joint Development Plan including
cost and deciding whether [***]. 
 2.4    ONO Option; CDCC Option. 

2.4.1    Exclusive Option Right. Subject to the terms and conditions of
this Agreement, FATE hereby grants to ONO the exclusive right to elect, at its sole discretion, to obtain a license for Collaboration Candidate 1 and Collaboration Candidate 2 under Section 5.1 (Licenses to ONO) to Develop and Commercialize
such Collaboration Candidate as a Collaboration Product under the terms and conditions set forth in this Agreement (the “ONO Option”), which license shall be (a) [***] (b) [***] if FATE does not exercise the CDCC Option in accordance with
Section 2.4.4 (CDCC Option), and (c) semi-exclusive for [***] as set forth in Section 5.3.3 (License upon Exercise of CDCC
Option [***]) if FATE exercises the CDCC Option in accordance with Section 2.4.4 (CDCC Option), as the case may be. The ONO Option for each Collaboration Candidate shall
expire at the end of the ONO Option Period corresponding to a given Collaboration Candidate. 
 2.4.2    Option
Exercise Criteria. 
 (a)    The Parties have agreed upon the initial Collaboration Candidate Selection
Criteria as of the Effective Date for each of Collaboration Candidate 1 and Collaboration Candidate 2, attached as Exhibit 1.23 (Collaboration Candidate Selection
Criteria), to enable ONO to determine whether it wishes to exercise the ONO Option. The JSC shall review the Collaboration Candidate Selection Criteria at every JSC meeting and add additional Collaboration Candidate Selection Criteria for
a Collaboration Candidate or modify the Collaboration Candidate Selection Criteria for a Collaboration Candidate as necessary from time to time during the Research Term pursuant to Section 4.1.4 (Specific
Responsibilities Prior to the Exercise of the ONO Option), and shall update the Collaboration Candidate Selection Criteria
[***]. 
 (b)    During the Research Term, each Party, or the Parties, as appropriate, will notify the JSC upon
the potential achievement of the Collaboration Candidate Selection Criteria and will provide the JSC with data and information supporting such Party’s or the Parties’ determination that the Collaboration Candidate Selection Criteria are
met with respect to such Collaboration Candidate. The JSC shall discuss in good faith whether the data resulting from the Research and Development of each Collaboration Candidate establishes that the Collaboration Candidate Selection Criteria for
such Collaboration Candidate are met, or is otherwise reasonably sufficient for ONO to determine whether to exercise the ONO Option for such Collaboration Candidate. The JSC shall have a period of [***] days following the receipt of such notice and
data and information from the notifying Party to determine whether the Collaboration Candidate Selection Criteria have been met. If the JSC determines that the Collaboration Candidate Selection Criteria have been met, the JSC shall notify each of
ONO and FATE of such determination in writing. If the JSC determines that the Collaboration Candidate Selection Criteria has not been met, or that further data should be obtained or additional studies should be performed before ONO will have
obtained data reasonably sufficient to determine whether to exercise the ONO Option, for a Collaboration Candidate, the JSC shall (i) [***]. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (c)    Notwithstanding the foregoing, ONO shall have the
discretion to exercise the ONO Option with respect to a particular Collaboration Candidate, if the Collaboration Candidate Selection Criteria have not been met for such Collaboration Candidate during the ONO Option Period. 

2.4.3    Option Exercise. 

(a)    For each Collaboration Candidate, during the ONO Option Period applicable to such Collaboration Candidate, ONO may
exercise the ONO Option for the Collaboration Candidate by written notice to FATE within the applicable ONO Option Period (the “Exercise Date”); provided, however, that if a Competition Law Filing (as defined below) is required in
compliance with applicable Law, the effectiveness of such exercise will automatically be extended until the Clearance Date, and instead of being the date on which the ONO Option is exercised, the Exercise Date will be deemed to be the date that is
the Clearance Date. Upon the Exercise Date for the Collaboration Candidate, the Collaboration Candidate for which the ONO Option has been exercised shall be designated a Collaboration Product for further Research, Development and Commercialization,
unless and until this Agreement is terminated with respect to such Collaboration Product. For the avoidance of doubt, if FATE undergoes a Change of Control, ONO shall nonetheless be entitled to exercise the ONO Option as provided in this
Section 2.4.3 (Option Exercise). If ONO does not exercise the ONO Option for a particular Collaboration Candidate during the applicable ONO Option Period, this Agreement will terminate with respect to such Collaboration Candidate
pursuant to [***]. 
 (b)    If a filing or submission with respect to the exercise of such ONO Option under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) or any antitrust, competition or merger control Law applicable to such exercise (collectively, “Competition Laws” and
such filing or submission “Competition Law Filings”) are required, ONO shall provide, prior to its exercise of the ONO Option, a written notice to FATE that ONO has determined in good faith based on
consultations with its counsel that the exercise of the ONO Option will be subject to any Competition Laws Filings, and then the provisions of Section 13.13 (Competition Law
Filings) shall apply. FATE shall provide to ONO any information reasonably requested by ONO in its assessment of potential notifications under applicable Competition Laws pursuant to this Section 2.4.3(b)
(Option Exercise). 
 2.4.4    CDCC Option. 

(a)    Grant. [***] FATE has the right to elect, at its sole discretion, to
co-Develop and co-Commercialize [***] with ONO or its Affiliates or Sublicensee(s) [***] (the “CDCC Option”), pursuant to the license from
ONO to FATE in Section 5.3.3 (License upon Exercise of CDCC Option [***]), under the terms and conditions set forth in this
Agreement. The CDCC Option for [***] shall expire at the end of the CDCC Option Period. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (b)    Exercise; Allocation of Responsibilities. FATE may
exercise the CDCC Option for [***] by written notice to ONO within the CDCC Option Period. Upon FATE’s exercise of such option, FATE shall have the right to co-Develop and co- Commercialize [***] with ONO
[***] Territory. If FATE exercises its CDCC Option under this Section 2.4.4 (CDCC Option), the JSC will update the Joint Development Plan to include and allocate between the Parties all activities for the Research and
Development of [***], as well as a budget and timeline for such activities, within [***] days after FATE exercises the CDCC Option. In addition, prior to the Commencement of the first [***] the JSC will prepare a Commercialization Plan for [***]
Territory, which plan will allocate commercial activities between the Parties and will include a budget and timeline for such activities. The JSC will allocate such Research, Development and Commercialization activities taking into account the
Parties’ respective experience with the research and development of cell therapy products and the Parties’ then-existing commercial infrastructure, or desire and intent to develop a commercial infrastructure, in [***] Territory.
Furthermore, the Parties will negotiate in good faith and enter into, in accordance with the provisions of this Section 2.4.4(b) (CDCC Option), a sales and co-promotion agreement
governing the terms and conditions regarding the decision-making mechanism of the JSC with respect to co-Commercialization of [***] in [***] Territory, [***], and detailed procedures of the matters set forth
in Section 2.4.4(c) (CDCC Option) below if necessary. 
 (c)    Cost
and Profit Sharing. Subject to the exercise by FATE of the CDCC Option for [***] and each Party [***]. In connection with the preparation of the Joint Development Plan, the Parties shall establish a mechanism
for reconciliation and reimbursement of development and manufacturing costs, and related definitions. In connection with the preparation of the Commercialization Plan, the Parties shall establish detailed procedures for sharing such costs and
profits, including procedures for cost and revenue reporting, reconciliation and payments, efforts in sales promotion to be used by each Party, and definitions of the costs to be shared and included in the profit calculation. Each Party shall comply
with all procedures and payment obligations established by the Parties. [***]. For the purpose of this Section 2.4.4(c), subject to Section 7.10.1 (Existing Agreements),
profits and losses means [***]. Notwithstanding anything to the contrary in this Section 2.4.4(c), the Parties shall discuss in good faith and reach an agreement on the further details of the method of profit and loss
sharing between FATE and ONO as set forth in Section 2.4.4(b) (CDCC Option) above. 

(d)    Sublicensees. If, subject to the exercise by FATE of the CDCC Option, the Parties agree to seek a
Third Party licensee to exclusively Develop and/or Commercialize [***] in [***] Territory under a Sublicense, the Parties shall [***], in accordance with the procedures and definitions established by the Parties pursuant to sub-section (c) above. [***] 

(e)    Opt-Out. After FATE exercises the CDCC Option, FATE shall have
the right to terminate its rights and obligations to co-Develop and co-Commercialize [***] in its entirety (each, an
“Opt-Out” and the applicable country (in the case of the U.S.) or region (in the case of Europe) in (A), (B) or (C), the “Opt-Out
Territory”) on at least [***] days written notice to ONO; provided that such Opt-Out will be effective upon [***] (the “Opt-Out
Effective Date”). Upon the Opt-Out Effective Date, the Parties will conduct all activities necessary to transition all responsibilities of FATE with respect to the Development and
Commercialization (but not manufacture) of [***] in the Opt-Out Territory to ONO, which may include [***]. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
Following the Opt-Out Effective Date, (i) the license granted by FATE to ONO shall become exclusive in the
Opt-Out Territory pursuant to Section 5.1.3 (License upon Exercise of ONO Option [***]), and (ii) all the obligations of FATE, and all the rights and obligations of ONO,
in the Opt-Out Territory shall be exercised or performed by FATE or ONO, as applicable, as if they are in the ONO Territory where an exclusive license is granted pursuant to Section 5.1.3
(License upon Exercise of ONO Option [***]) hereof. Without limiting the foregoing, following the Opt-Out Effective Date, (1) the Parties will no longer share applicable costs and profits and
losses for the Opt-Out Territory, and ONO shall be solely responsible, at ONO’s sole cost and expense, for conducting all Development and [***] in the Opt-Out
Territory, (2) FATE shall continue to manufacture [***] as set forth herein, and (3) the royalty rates under Section 6.4.3 ([***] Outside Asia) will apply as if FATE had not exercised its CDCC Option. In
the event that FATE elects, pursuant to this Section 2.4.4(e) (CDCC Option), to Opt-Out, and that Competition Law Filings are required, ONO shall provide, on or before the later of
clauses (x) and (y) in the definition of Opt-Out Effective Date, a written notice to FATE that ONO has determined in good faith based on consultations with its counsel that the Opt-Out will be subject to Competition Law Filings and that the provisions of Section 13.13 (Competition Law Filings) shall apply. FATE shall provide to ONO any information reasonably
requested by ONO in its assessment of potential notifications under applicable Competition Laws pursuant to this Section 2.4.4(e) (CDCC Option). 

2.5    Development and Commercialization of Collaboration Products. 

2.5.1    General. Following the exercise by ONO of the ONO Option with respect to a given
Collaboration Candidate, such Collaboration Candidate will be designated as a Collaboration Product (subject to Section 2.4.1 (Exclusive Option Right)) and ONO and
FATE shall use Commercially Reasonable Efforts to Research, Develop and Commercialize such Collaboration Product in its applicable Territory in the applicable Oncology Field. 

2.5.2    Development Plan. 

(a)    Within [***] days following the Exercise Date with respect to a given Collaboration Candidate, ONO will
prepare and provide to the JSC an update to its proposed activities under the Joint Development Plan pursuant to which ONO will conduct Research and Development in the ONO Territory, and FATE will prepare and provide to the JSC (i) an update to
its proposed activities under the Joint Development Plan pursuant to which FATE will conduct Research and Development in the FATE Territory, for such Collaboration Product on an
Indication-by-Indication basis, as applicable and (ii) a process development and manufacturing plan for all non-clinical and
clinical Materials of Collaboration Products for use both by ONO in the ONO Territory and by FATE in the FATE Territory. Each Party will prepare and provide a budget and estimated timeline with respect to its proposed activities under the Joint
Development Plan. 
 (b)    ONO and FATE will discuss in good faith through the JSC, and use Commercially
Reasonable Efforts to reach an agreement on, the Joint Development Plan, including but not limited to: (i) [***], (ii) and (iii) [***]. 

(c)    During each Calendar Year, each Party shall provide its updates on the Joint Development Plan for the
upcoming year covering activities [***] so that the Parties may 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
agree on such update by [***] that year, and each Party shall continue to provide to the other Party, through the JSC, regular updates from time to time to its proposed activities under the Joint
Development Plan, as applicable. Each Party will consider in good faith the other Party’s comments on such proposed activities and any updates thereto. 

(d)    If the JSC fails to agree, after the use of Commercially Reasonable Efforts in an attempt to reach an
agreement between the Parties regarding the Joint Development Plan, notwithstanding the provisions of Article 12 (Dispute Resolution), the decision shall be made in accordance with
Section 4.1.8 (Decision-Making; Limitations on JSC), provided however, [***]. 

2.5.3    Global Brand Strategy for Collaboration Products. 

(a)    General. Both Parties generally acknowledge that Commercialization of each Collaboration Product under
a common brand name in the world would be beneficial for both Parties to maximize the value of such Collaboration Product. Subject to the exercise by ONO of the ONO Option for a Collaboration Candidate, and in the case of [***] subject to
FATE’s exercise of the [***] Option during the CDCC Option Period, both Parties shall discuss in good faith with the other and use Commercially Reasonable Efforts to reach an agreement on one of the proposed candidates for brand names, or
similar variations or derivatives thereof including translations or transliterations, as the common brand name, as well as packaging and logos, for use in the Commercialization of the applicable Collaboration Product by ONO in the ONO Territory, by
FATE in the FATE Territory and by both Parties in the [***] Territory (“Common Brand Name”) Notwithstanding anything in this Section 2.5.3, in the event a Party has reasonable
ground, such Party shall not be required to agree or remain in agreement with the common branding strategy for [***] after good faith discussion with other Party. For clarity, in the case where the CDCC Option is not exercised by FATE during the
CDCC Option Period or FATE Opts-Out in the [***] Territory in its entirety, this Section 2.5.3 shall not be applicable to [***]. 

(b)    Procedures. Either Party may make a proposal, at the appropriate time before the first BLA filing in
the world, of one or more candidates for Common Brand Name. Both Parties shall discuss in good faith to reach agreement on the Common Brand Name from such candidates within [***]days following its receipt of the latter Party’s proposal. For
[***] for each Major Patent Territory and any other countries outside of Major Patent Territory reasonably requested by ONO, FATE shall conduct a trademark search of the Common Brand Name [***] FATE shall file the application for registration of the
trademark rights for the Common Brand Name [***] for each Major Patent Territory, ONO shall conduct a trademark search of the Common Brand Name [***] ONO shall file the application for registration of the trademark rights for the Common Brand Name
[***]. If the Parties are unable to agree on a Common Brand Name for which to seek trademark registration and any applicable Regulatory Approvals, then FATE shall select the brand name(s) for the Collaboration Product in the FATE Territory and ONO
shall select the brand name(s) for the Collaboration Product in the ONO Territory, provided that the Parties shall jointly determine the brand name(s) for [***] in [***] Territory during the CDCC Term. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (c)    Intellectual Property. After registration of Common
Brand Name for [***], FATE will grant ONO licenses to such Common Brand Name for [***] for use in the ONO Territory [***]. FATE shall be responsible for the prosecution, registration and maintenance of such trademark rights [***]. After registration
of Common Brand Name for [***], ONO shall be responsible for the prosecution, registration and maintenance of such trademark rights in the ONO Territory [***] and ONO shall be responsible for the prosecution, registration and maintenance of such
trademark rights in the [***] Territory [***]. ONO will grant FATE licenses to the Common Brand Names for [***] for use in the [***] Territory [***]. 

2.5.4    Regulatory Filings. 

(a)    In its applicable Territory where a Party has exclusive rights of Development and Commercialization of a
Collaboration Product, [***] 
 (b)    Each Party shall cooperate in good faith with the other Party in regulatory
affairs with respect to Collaboration Products in the other Party’s Territory [***]. Each Party shall provide the other Party with reasonable advance notice of all substantive meetings with the Regulatory Authorities in its Territory pertaining
to each Collaboration Product, or with as much advance notice as practicable under the circumstances. The other Party may, at its own cost, attend such meetings with Regulatory Authorities as an observer upon reasonable advance notice to a Party
having such meeting, subject to such Party’s prior written consent which shall not be unreasonably withheld, conditioned or delayed and receipt of any required permissions of such Regulatory Authorities. 

(c)    Each Party shall have the right to [***]. 

2.5.5    Commercialization Plan. As soon as practicable, but not later than [***] each
Party will prepare and provide to the JSC a Commercialization Plan for which such Party will conduct Commercialization in the respective Territory for such Collaboration Product. If FATE has exercised the FATE CDCC Option, a Commercialization Plan
for which the Parties will conduct Commercialization in the FATE CDCC Territory will be prepared pursuant to Section 2.4.4(b) (CDCC Option). The applicable Party(ies) will prepare and provide a
budget with respect to the activities covered by such Commercialization Plan. The applicable Party(ies) shall continue to provide to the other Party, through the JSC, regular updates from time to time to its Commercialization Plan, as applicable.
The applicable Party(ies) will consider in good faith the other Party’s comments on such Commercialization Plan and any updates thereto. 

2.5.6    Development and Commercialization Information. At
each JSC meeting, or as otherwise agreed to between the Parties during the Term, each Party will provide the JSC with information regarding the Development and Commercialization activities performed by such Party, including without limitation [***]
in each case relating to each Collaboration Product for which such Party is conducting Development and Commercialization activities in such Party’s applicable Territory, as well as [***] Collaboration Product in its Territory. Each Party shall
consider in good faith any comments of the other Party with respect to Development and Commercialization activities. Such data and information received by the other Party may be used to exercise the licenses and rights granted to such other Party in
this Agreement. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 2.5.7    Responsibilities for
the Conduct of Development, and General Costs, of Collaboration Products. Except as otherwise expressly
provided in this Agreement, (a) ONO (with the assistance of FATE as set forth in the Joint Development Plan or Commercialization Plan) shall be primarily responsible for, and shall bear the costs and expenses incurred in connection with the
conduct of [***] all Research, Development and Commercialization activities with respect to each Collaboration Product in the applicable ONO Territory during the Term; and (b) FATE (with the assistance of ONO as set forth in the Joint
Development Plan or Commercialization Plan) shall be primarily responsible for, and shall bear the costs and expenses incurred in connection with the conduct of [***] all Research, Development and Commercialization activities with respect to each
Collaboration Product in the applicable FATE Territory during the Term. Notwithstanding the foregoing, with respect to Collaboration Product 1 and with respect to Collaboration Product 2 during the CDCC Term, ONO and FATE shall discuss in good faith
through the JSC, and use Commercially Reasonable Efforts to reach an agreement with respect to, the allocation of responsibilities between the Parties to conduct any studies of Common Development Activities, in a time efficient manner. ONO and FATE
shall share the costs and expenses incurred in connection with the conduct of such Common Development Activities, regardless of the Party which conducts such activities, with [***]. For clarity, the costs and expenses shall include [***]. Any
costs and expenses incurred by each Party in each calendar quarter that are to be shared between the Parties pursuant to this Section 2.5.7 shall be settled on a quarterly basis. A Party shall provide the other Party with
the invoice specifying such itemized costs and expenses, and their allocations between the Parties pursuant to this Section 2.5.7, promptly following the last day of each Calendar Quarter, which shall be paid by the other
Party pursuant to Section 6.6 (Manner of Payment). 

2.5.8    Pharmacovigilance. Prior to the first IND in the world by either Party with respect to
Collaboration Product 1 and with respect to Collaboration Product 2 during the CDCC Term, the Parties shall negotiate in good faith and enter into a safety data exchange agreement (the “Pharmacovigilance Agreement”), which shall be
applicable to such pre-marketing safety information that will be available from Clinical Trials with a Collaboration Product, and shall set forth standard operating procedures governing the collection,
investigation, reporting, and exchange of information concerning adverse drug reactions/adverse events sufficient to permit each Party to comply with its Laws. In the event the first BLA for a Collaboration Product is filed by either Party in any
country of the world, the Parties shall initiate negotiation with an aim to amend the Pharmacovigilance Agreement as soon as practicable to include post-marketing safety information that will be available from post-marketing experiences with a
Collaboration Product to permit each Party to comply with all Laws regarding the management of safety data by providing for the exchange of relevant information in appropriate format. Subject to the foregoing, each Party shall be responsible for
monitoring all clinical experiences with respect to a Collaboration Product in the course of its own Research, Development and Commercialization and promotional activities, and filing all required reports with respect thereto, in its respective
Territory. 
 2.5.9    Investigator Sponsored Clinical Study.
Each Party shall have the right to authorize the conduct of Investigator Sponsored Clinical Study(ies) in its Territory and support such Investigator Sponsored Clinical Study(ies) at its own discretion; provided, however, that (a) each
Investigator Sponsored Clinical Study in the FATE CDCC Territory during the CDCC 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
Term shall be authorized only with both Parties’ written approval of the protocol therefor, and (b) each Party agrees to inform the other Party of each Investigator Sponsored Clinical
Study(ies) in a timely manner and to provide the other Party an opportunity to review and comment on the protocol of each Investigator Sponsored Clinical Study(ies) prior to the commencement of such Investigator Sponsored Clinical Study(ies). 

ARTICLE 3 

MANUFACTURE AND SUPPLY 

3.1    Antigen Binding Domain. In the event an ONO Antigen Binding Domain has met the
criteria for incorporating the ONO Antigen Binding Domain into Collaboration Candidate 2 pursuant to [***] ONO shall be solely responsible at its expense for making or having made all requirements of any ONO Antigen Binding Domain during the
Research Term. ONO shall manufacture, handle, store and ship all such ONO Antigen Binding Domain in compliance with all Laws, with all Regulatory Filings, and with its applicable internal specifications and quality control procedures during the
Research Term. 
 3.2    Manufacture and Supply of
Collaboration Products. As between FATE and ONO, FATE will be exclusively responsible for the conduct of, and shall use Commercially Reasonable Efforts to conduct process development, manufacturing, fill and finish,
testing and supply of all pre-clinical, clinical and commercial Materials of Collaboration Products in quantities required for Research, Development and Commercialization by ONO in the ONO Territory and in the
final dosage form of unlabeled (other than tracking labelled required for manufacturing and shipping) and unpackaged pharmaceutical preparation, by itself or through Third Party contract manufacturers during the Term. For clarity, FATE shall fulfill
the responsibilities mentioned above with respect to [***] in the pre-clinical, clinical and commercial Materials of [***] after the Exercise Date for [***]. 

3.2.1    Supply Agreement. 

(a)    Clinical Supply. Within [***] days after the Exercise Date with respect to a
Collaboration Candidate, the Parties will negotiate in good faith and enter into, in accordance with the provisions of this Section 3.2, a (i) master process development, manufacturing and supply agreement governing
the terms and conditions under which FATE will manufacture and supply to ONO the Collaboration Products for preclinical and clinical use (“Clinical Supply Agreement”), and (ii) quality agreement for
quality control and quality assurance in connection with manufacturing of a Collaboration Product conducted by FATE or its Third Party contract manufacturers, including the cGMP responsibilities of the Parties. During such [***] day period, ONO
shall transfer to FATE, in consultation with FATE’s process development personnel (or equivalent), all ONO Know-How necessary for FATE to manufacture Collaboration Products, including ONO Know-How for the manufacture, handling, storing and shipping of the ONO Antigen Binding Domain. 

(b)    Commercial Supply. Within [***] days after the commencement of the first Phase III Trial
in any country of the world, the Parties will negotiate in good faith and enter into, in accordance with the provisions of this Section 3.2, a manufacturing and supply agreement governing the terms and conditions under
which FATE will manufacture and supply to ONO the Collaboration Products for commercial use (“Commercial Supply Agreement” during the Term, and the Clinical Supply Agreement and Commercial Supply
Agreement are collectively referred to as “Supply Agreements”). 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (c)    Basic Terms of the Supply Agreements. The Supply
Agreements shall provide: (i) that FATE shall manufacture, during the Term, handle, store, and ship all Collaboration Products in compliance with all Laws including all current governmental regulatory requirements concerning cGMP and cGMP
requirements concerning documentation, reports and record keeping, with all Regulatory Filings, and with its applicable internal specifications and quality control procedures; (ii) customary definitions and terms and conditions for such
agreements, including, without limitation, delivery, technology transfer, quality controls, quality assurance, termination, procedures for non-conformance with specifications and non- compliance with Laws,
audit and inspection (including of books of accounts and records by ONO for the determination of the cost of process development, manufacturing, fill and finish, testing and supply of the relevant Collaboration Product or otherwise) and
indemnification related to supply of Collaboration Products; (iii) addendums for each Collaboration Product that contain provisions specific to such Collaboration Product, including, without limitation, manufacturing plans, supply chain
logistics, and transfer pricing; (iv) that FATE shall allocate quantities of Collaboration Product between FATE and ONO in an equitable manner and not treat itself in favor in the Supply Agreement, including delivery of amounts of any
Collaboration Product between FATE and ONO taking into account the market demand and forecast in the Territory of each Party; (v) in the case of the Commercial Supply Agreement, [***]. 

3.2.2    Transfer Pricing. ONO shall pay to FATE (a) in connection with non-
Commercial supply of Collaboration Products, fees equal to [***] and (b) in connection with the Commercial supply of Collaboration Products, fees equal to [***]. For clarity, such manufacturing cost shall include [***]. For further
clarity, [***] 
 3.3    Third Party Information. Notwithstanding anything to the
contrary in this Agreement, ONO acknowledges that it may be required to enter into appropriate confidentiality agreements with or with respect to specific Third Party contract manufacturers or other independent contractors engaged by FATE before
FATE can share with ONO information relating to its agreement with such Third Party(ies) or such Third Party(ies)’ confidential information as required under this Agreement. In such case, FATE shall notify ONO promptly of such requirement, and
the Parties shall cooperate to take such actions as are necessary to enable FATE to comply with such confidentiality requirements of FATE’s agreements with any such Third Party(ies). 

ARTICLE 4 

GOVERNANCE 

4.1    Joint Steering Committee. 

4.1.1    Purpose. As soon as practicable after the Effective Date, the Parties shall establish a joint
steering committee (the “Joint Steering Committee” or “JSC”) to oversee the Collaboration and to make certain decisions regarding the Research, manufacturing, Development, and Commercialization activities of Collaboration
Candidates and Collaboration Products during the Term as set forth in this Section 4.1 (Joint Steering Committee). 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 4.1.2    Responsibilities. Subject to the provisions of
Article 4 (Governance), the JSC shall have review and oversight responsibilities (a) prior to the Exercise Date for a Collaboration Candidate, for all Research and Development activities performed by FATE and ONO with respect to such
Collaboration Candidate; and (b) following the Exercise Date for a Collaboration Candidate, all Research, Development and Commercialization activities performed by FATE and ONO with respect to such Collaboration Product. The JSC shall provide a
forum for sharing advice, progress and results relating to, and for coordinating the conduct of, such activities and shall attempt to facilitate the resolution of any disputes between the Parties, as described in Section 4.1.8
(Decision-Making; Limitations on JSC). The JSC shall also serve as a forum for information exchange with respect to (i) ONO’s research and development activities with respect to the ONO Antigen Binding Domain and/or
(ii) ONO’s and FATE’s research and development activities with respect to the Alternative Antigen Binding Domain, provided that subject to [***], such activities regarding above (i) shall not be subject to the oversight or
decision making of the JSC. 
 4.1.3    Information Access. The JSC shall have access
to each Party’s plans for Development and Commercialization of Collaboration Candidates and Collaboration Products during the Term, including budgets and timelines related thereto, and shall be briefed by the Parties regarding the content,
execution, progress and results achieved by the respective Parties thereunder, as well as regarding the ONO Antigen Binding Domain pursuant to [***] by ONO and regarding potential Alternative Antigen Binding Domains pursuant to
Section 2.3.5 (Alternative Antigen Binding Domain) by FATE and ONO. Each Party, through its representatives on the JSC, shall be permitted to provide advice and
commentary with respect to the other Party’s plans for Development and Commercialization and related budgets and timelines. As provided in Section 2.5.2 (Development Plan) and
Section 2.5.5 (Commercialization Plan), as applicable, each Party shall take such advice and commentary into good faith consideration. 

4.1.4    Specific Responsibilities Prior to the
Exercise of the ONO Option. More specifically, the JSC shall, during the ONO Option Period for a Collaboration Candidate: 

 

	 	(a)	 [***] 

  

	 	(b)	 [***] 

  

	 	(c)	 [***] 

  

	 	(d)	 [***] 

  

	 	(e)	 [***] 

  

	 	(f)	 [***]; and 

  

	 	(g)	 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 4.1.5    Role Following the
Exercise of the ONO Option. If ONO exercises the ONO Option with respect to a Collaboration Candidate, the JSC shall continue as a forum for discussion and decision making
between the Parties regarding the Research, Development and Commercialization of such Collaboration Product. In such case, the Parties may appoint additional members to the JSC that have specialized knowledge regarding the research, development and
commercialization of human therapeutic products, and the JSC shall continue to conduct meetings as provided in Section 4.1.6 (Membership; Meetings). The JSC will thereafter discuss key activities
and matters related to the Research, Development and Commercialization of such Collaboration Product including those set forth in Section 2.5.2 (Development Plan), and each Party, through the
JSC, will consider any suggestions the other Party may have regarding the Research, Development and Commercialization of such Collaboration Product by such Party in the applicable Territory where such Party has exclusive rights of Research,
Development and Commercialization of such Collaboration Product. More specifically, and without limiting the foregoing, the JSC shall, following the Exercise Date for the Collaboration Candidate: 

 

	 	(a)	 [***] 

  

	 	(b)	 [***] 

  

	 	(c)	 [***] 

  

	 	(d)	 [***]; and 

  

	 	(e)	 [***] 

4.1.6    Membership; Meetings. The JSC shall be composed of three (3) employees
each from ONO and FATE (or such other number as the Parties may agree in writing), and shall meet [***], or more often if the JSC so agrees or on ad hoc basis, in person, by teleconference or video-teleconference.
In-person meetings shall alternate between FATE and ONO locations whenever possible unless otherwise agreed by the Parties. The first such meeting shall be within [***] after the Effective Date. Any member of
the JSC may designate a substitute to attend with prior written notice to the other Party. There will be an annually rotating chairperson (the “JSC Chairperson”) with the first JSC Chairperson to be designated by FATE. Ad hoc guests,
including without limitation FATE’s Chief Executive Officer and ONO’s Executive Director of Oncology R&D Center, who are bound by obligations of confidentiality and restrictions on use of such Confidential Information that are no less
restrictive than the obligations in Article 8 (Confidentiality) may be invited to the JSC meetings. Each Party may replace its JSC members with other of its employees, at any time, upon written notice to the other Party. 

4.1.7    Project Management Team. 

(a)    Composition. Promptly after the establishment of the JSC, the Parties shall establish a project
management team (the “Project Management Team” or the “PMT”) consisting of key employees of both Parties performing or involved in the Research and Development activities during the
Research Term. PMT shall be responsible for the daily Research and Development activities during the Research Term and be expected to make 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
recommendations on issues therein. One of the Project Team members of each Party shall be appointed as a project manager (a “Project Manager”) to coordinate its part of the
Research and Development activities under Joint Development Plan during the Research Term. Either Party may change its Program Manager upon written notice to the other Party. A Program Manager may be a member of the JSC. 

(b)    Meetings and Reports. The PMT shall have a meeting [***] via telephone or
video conference to discuss the ongoing Research and Development activities during the Research Term. Each Party may invite its other employees having the relevant expertise, knowledge or capability to participate in such conference. Following each
meeting, the Project Manager of FATE shall prepare and provide the Project Manager of ONO with a summary report of the meeting. In the event Project Managers of the Parties have discussed any material matter, a Project Manager of each Party shall
report the outcome of such discussions to the JSC members of the Party that such Project Manager belongs to. 

4.1.8    Decision-Making; Limitations on JSC. Except as
otherwise expressly provided herein, any decision of the JSC shall be made by consensus, [***]. The JSC shall have only such powers as are specifically delegated to it in this Agreement, and such powers shall be subject to the terms and conditions
set forth herein. Without limiting the generality of the foregoing, the JSC shall have no power to amend, modify or waive any provision of this Agreement. In the event that the JSC is unable to reach a consensus decision on a matter that is within
its decision-making authority within [***] after such matter is submitted to it or identified for resolution, then either Party may, by written notice to the other, submit the matter for dispute resolution pursuant to Article 12 (Dispute
Resolution). Notwithstanding the foregoing, if the JSC is unable to reach a consensus decision on the following matters, then the matter shall first be submitted to dispute resolution by the Executive Officers under
Section 12.2 (Resolution by Executive Officers), and any dispute that is not resolved by such Executive Officers during [***] shall not be resolved as set forth in
Section 12.3 (Arbitration) or litigation, but shall instead be resolved as follows: [***]. Each Party hereby expressly waives its right to seek resolution of such dispute to be resolved in accordance with this
Section 4.1.8 in a court of competent jurisdiction. 
 4.1.9    Secretary;
Minutes. The JSC Chairperson shall designate a secretary of the JSC who will be responsible for calling meetings, preparing and circulating an agenda and presentation materials in advance of each meeting, and preparing and
circulating minutes within [***] after each meeting of the JSC setting forth, among other things, a description, in reasonable detail, of the discussions at the meeting and a list of any actions, decisions or determinations approved by the JSC. Such
minutes shall be effective only after being approved by both Parties. Definitive minutes of all JSC meetings shall be finalized [***] after the meeting to which the minutes pertain. 

4.1.10    Discontinuation of Committees. The activities to be performed by
each Committee shall solely relate to governance and information sharing under this Agreement, and are not intended to be, or involve the delivery of, services. Each Committee shall continue to exist until the first to occur of: (a) the Parties
mutually agreeing to disband the Committee; or (b) neither Party being required to provide information or other materials to such Committee. Once a Committee is disbanded, any matters previously delegated to the Committee shall be resolved in
accordance with Article 12 (Dispute Resolution) but skipping the initial attempt of resolution through the JSC. In the case the Committee is disbanded in accordance with Section 4.1.10(a), thereafter all information or other materials shall be
shared between the Parties through Alliance Liaisons. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 4.2    Alliance Liaisons. Promptly after the
Effective Date, each Party shall appoint an individual (other than an existing member of the JSC) to act as the alliance liaison for such Party (each, an “Alliance Liaison”). Each Alliance Liaison shall thereafter be permitted to attend
meetings of the JSC as a nonvoting observer, subject to obligations of confidentiality and restrictions on use of such Confidential Information that are no less restrictive than the obligations in Article 8 (Confidentiality). The Alliance Liaisons
shall be the primary point of contact for the Parties regarding the Collaboration activities contemplated by this Agreement and shall facilitate communication regarding all activities hereunder. The Alliance Liaisons shall lead the communications
between the Parties and shall be responsible for following-up on decisions made by the JSC. The name and contact information for such Alliance Liaison, as well as any replacement(s) chosen by FATE or ONO, in
their sole discretion, from time to time, shall be promptly provided to the other Party in accordance with Section 13.2 (Notices). 

ARTICLE 5 

LICENSES 

5.1    Licenses to ONO. 

5.1.1    Enabling License to ONO During
the ONO Option Period. Subject to the terms and conditions of this Agreement, FATE hereby grants to ONO a non-exclusive, royalty- free, non-transferable (except as provided in Section 13.4 (Assignment)) license in the Territory, without the right to grant sublicenses, under FATE Intellectual Property solely as
and to the extent necessary to enable ONO to perform ONO’s obligation with respect to the Collaboration Candidates in accordance with the Joint Development Plan during the ONO Option Period, including through the use of Third Party contractors
in accordance with Section 2.2.3 (Subcontracting), which enabling license for a Collaboration Candidate shall expire at the end of the ONO Option Period with respect to such Collaboration Candidate. 

5.1.2    License upon Exercise of ONO
Option [***]. Subject to the terms and conditions of this Agreement, upon and as of the Exercise Date for [***] (subject to Section 2.4.3 (Option
Exercise)), FATE hereby grants to ONO an exclusive (even as to FATE and its Affiliates, except to the extent necessary for FATE or its Affiliates to perform its obligations under the Collaboration),
non-transferable (except as provided in Section 13.4 (Assignment)), royalty bearing license (or sublicense, as applicable), with the right to grant sublicenses solely in
accordance with Section 5.2 (Sublicensing by ONO), under the FATE Intellectual Property, to use, sell, offer to sell, promote, distribute, import, export, label, package and otherwise
Develop and/or Commercialize, but not the right to make or have made, [***] in the [***] Territory, during the Term, in the Field, including through the use of Third Party contractors in accordance with Section 2.2.3
(Subcontracting). 
 5.1.3    License upon Exercise
of ONO Option [***]. Subject to the terms and conditions of this Agreement, upon and as of the Exercise Date for [***] (subject to Section 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
2.4.3 (Option Exercise)), FATE hereby grants to ONO a non-transferable (except as provided in Section 13.4 (Assignment)) license (or sublicense, as
applicable) under the FATE Intellectual Property, to use, sell, offer to sell, promote, distribute, import, export, label, package and otherwise Develop and/or Commercialize, but not the right to make or have made, [***] in the [***] Territory,
during the Term, in the Field, including through the use of Third Party contractors in accordance with Section 2.2.3 (Subcontracting). Such license shall be: (i) during the CDCC Term and in the [***] Territory, semi-exclusive [***]
(only ONO and FATE have the right to exercise its rights under this Agreement) and royalty-free (subject to the sharing of profits and losses by the Parties), with the right to grant sublicenses solely in accordance with Section 2.4.4(d)
(Sublicensees), or (ii) exclusive (even as to [***] except to the extent necessary for [***] to perform its obligations under the Collaboration) and royalty-bearing, with the right to grant sublicenses solely in accordance with Section 5.2
(Sublicensing by ONO), (A) during the Term and outside the [***] Territory, if [***] exercises the CDCC Option pursuant to Section 2.4.4 (CDCC Option) hereof, (B) during the Term and worldwide, if [***] does not exercise the CDCC Option
pursuant to Section 2.4.4 (CDCC Option) hereof, or (C) during any remaining period of the Term and in the Opt-Out Territory, if [***] Opts-Out pursuant to
Section 2.4.4(e) (Opt-Out) hereof. 
 5.2    Sublicensing by
ONO. ONO shall have the right to grant sublicenses to Third Parties at ONO’s sole discretion through multiple tiers with respect to the rights licensed to ONO under Sections 5.1.2 (License upon Exercise of ONO Option for
[***]) and 5.1.3 (License upon Exercise of ONO Option for [***]) solely in accordance with this Section 5.2 (Sublicensing by ONO); provided that: 

5.2.1    such Sublicense shall refer to this Agreement and shall be subordinate to and consistent with the terms and
conditions of this Agreement, and shall not limit the ability of ONO (individually or through the activities of its Sublicensee) to fully perform all of its obligations under this Agreement or FATE’s rights under this Agreement; 

5.2.2    in such Sublicense agreement, the Sublicensee shall agree in writing to be bound to ONO by terms and
conditions substantially similar to the corresponding terms and conditions of this Agreement and specifically with respect to [***] 

5.2.3    promptly after execution of the Sublicense agreement, ONO shall provide a summary of such Sublicense
agreement to FATE, provided, that in no event shall ONO have any obligation to disclose to FATE the financial terms and conditions of the Sublicense; 

5.2.4    ONO shall remain responsible for the performance of this Agreement and the performance of its Sublicensees
hereunder, and shall cause such Sublicensee to enable ONO to comply with all applicable terms and conditions of this Agreement; 

5.2.5    each Sublicense shall terminate immediately upon the termination of this Agreement (in whole or only with
respect to the rights that are subject to such Sublicense) [***] or by FATE pursuant to Section 11.2 (Termination for Cause), 11.4 (Termination for
Insolvency) or 11.5 (Termination for Patent Challenge), or by ONO pursuant to Section 11.2 (Termination for
Cause), 11.4 (Termination for Insolvency) or 11.5 (Termination for Patent Challenge) if ONO makes the election under [***] on
a Collaboration Product-by- Collaboration Product basis; and 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 5.2.6    If a Sublicensee of ONO does not agree to any or all of
Section 5.2.2, then ONO shall not grant to such Sublicensee the applicable reciprocal rights [***] 

5.2.7    Notwithstanding anything herein to the contrary, to the extent that (a) [***] or (b) [***]. 

5.3    Licenses to FATE. 

5.3.1    Enabling License to FATE. Subject to the terms and
conditions of this Agreement, (i) ONO hereby grants to FATE a non-exclusive, royalty-free, non-transferable (except as provided in Section 13.4 (Assignment))
license in the Territory, without the right to grant sublicenses, under ONO Intellectual Property solely as and to the extent necessary to enable FATE to perform FATE’s obligations with respect to the Collaboration Candidates in accordance with
the Joint Development Plan during the Research Term, including through the use of Third Party contractors in accordance with Section 2.2.3 (Subcontracting), (including, for the avoidance of doubt, to manufacture Collaboration Candidates
pursuant to Article 3 (Manufacture and Supply)), which enabling license for a Collaboration Candidate shall expire at the end of the Research Term with respect to such Collaboration Candidate; and (ii) upon and as of the Exercise Date for a
Collaboration Candidate (subject to Section 2.4.3 (Option Exercise)), ONO hereby grants to FATE a non-exclusive, royalty-free, non-transferable (except as provided
in Section 13.4 (Assignment)) license in the Territory, without the right to grant sublicenses, under ONO Intellectual Property solely as and to the extent necessary to enable FATE to perform FATE’s obligations with respect to the
Collaboration Products in accordance with the Agreement, including through the use of Third Party contractors in accordance with Section 2.2.3 (Subcontracting), (including, for the avoidance of doubt, to manufacture the Collaboration Product
pursuant to Article 3 (Manufacture and Supply)). 
 5.3.2    License for Collaboration Candidates and Products.

 (a)    Subject to the terms and conditions of this Agreement, ONO hereby grants to FATE (i) an
exclusive (even as to ONO and its Affiliates, except to the extent necessary for ONO or its Affiliates to perform its obligations under the Collaboration), non-transferable (except as provided in
Section 13.4 (Assignment)), fully-paid and royalty-free license (or sublicense, as applicable), with the right to grant sublicenses solely in accordance with Section 5.4 (License
or Sublicense [***] in the FATE Territory), under the ONO Intellectual Property, to make, have made, use, sell, offer to sell, promote, distribute, import,
export, label, package and otherwise Develop and/or Commercialize [***] (which is not the FATE Cell Therapy) in the FATE Territory, including through the use of Third Party contractors in accordance with Section 2.2.3,
during the Term, in the Field, and (ii) a non-exclusive, non-transferable (except as provided in Section 13.4 (Assignment)),
royalty-bearing license (or sublicense, as applicable), with the right to grant sublicenses under the ONO Intellectual Property, to make, have made, use, sell, offer to sell, promote, distribute, import, export, label, package and otherwise Develop
and/or Commercialize the applicable FATE Cell Therapy in any country of the world on 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
country-by-country basis where this Agreement is terminated (x) [***] or (y) by FATE pursuant to either
Section 11.2 (Termination for Cause), Section 11.4 (Termination for Insolvency), or Section 11.5 (Termination for Patent Challenge), including through the use of Third
Party contractors in accordance with Section 2.2.3 (Subcontracting), in the Field pursuant to [***] in the event that this Agreement is terminated [***] or by FATE pursuant to either Section 11.2
(Termination for Cause), Section 11.4 (Termination for Insolvency), or Section 11.5 (Termination for Patent Challenge). 

(b)    [***] 

5.3.3    License upon Exercise of CDCC
Option [***]. Subject to the terms and conditions of this Agreement, upon and as of FATE’s exercise of the CDCC Option pursuant to Section 2.4.4 (CDCC Option) for [***] and during the CDCC Term, ONO hereby
grants to FATE a semi-exclusive (only ONO and FATE has the right to exercise its rights under this Agreement), non-transferable (except as provided in Section 13.4 (Assignment)), royalty-free license (or
sublicense, as applicable) with the right to grant sublicenses solely in accordance with Section 2.4.4(d) (Sublicenses), under ONO Intellectual Property, to make, have made, use, sell, offer to sell, promote, distribute, import, export, label,
package and otherwise Develop and Commercialize [***] CDCC Territory, in the Field, including through the use of Third Party contractors in accordance with Section 2.2.3 (Subcontracting). 

5.4    License or Sublicense [***] in the FATE Territory. FATE shall have the right to grant one or more Sublicense
through multiple tiers for the Development, manufacturing and Commercialization of [***] in the [***] Territory, at FATE’s sole discretion, with respect to the FATE Intellectual Property and rights licensed to FATE by ONO under Section 5.3
(Licenses to FATE), subject to the following: 
 5.4.1    If FATE enters into a Sublicense agreement to develop or
commercialize [***] in the [***] Territory, then the JSC’s involvement in the Research, Development, and Commercialization of [***] in the territory of such Sublicense agreement will be subject to and subordinate to such Sublicense agreement,
provided that (a) both FATE and ONO shall remain obligated to provide safety information pursuant to any safety or Pharmacovigilance Agreement entered into by the Parties with respect to [***] in each Party’s respective Territory,
regardless of any Sublicense agreement; and (b) upon ONO’s request, FATE shall use Commercially Reasonable Efforts to arrange and establish a committee constituted by representatives of FATE, such Sublicensee and ONO to oversee and monitor
Development and/or Commercialization of [***] on global basis. 
 5.4.2    With respect to the [***] shall
obligate any of its Sublicensees to [***]. 
 5.4.3    FATE shall not grant any Sublicense under FATE
Intellectual Property that would materially conflict with this Agreement. FATE shall notify ONO in writing whether a Sublicensee has agreed to the terms of this Section 5.4 promptly after execution of the applicable Sublicense agreement. 

5.4.4    If a Sublicensee of FATE does not agree to any or all of this Section 5.4, then FATE shall not grant
to such Sublicensee the applicable reciprocal rights [***]. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 5.4.5    Notwithstanding anything herein to the contrary, to the
extent that (a) [***] or (b) [***]. 
 5.5    [***] 

5.5.1    [***] 

5.5.2    [***] 

5.5.3    [***] 

5.6    Use of Names; Logo; Patent Marking. The
packaging for each Collaboration Product Commercialized by ONO under this Agreement shall be marked (to the extent required by Laws): (a) with a notice that such Collaboration Product is sold under a license from FATE and (b) with applicable
patent notices relating to the FATE Patents in such a manner as may be permitted or required by Laws. To the extent permitted under Laws, the packaging and labeling for such Collaboration Product will bear both the ONO name and logo and the FATE
name and FATE logo as set forth on Exhibit 5.6 (“Fate Logo”), and such names and logos will be presented with substantially equivalent prominence in any product presentations, exhibit booths, conferences, or promotion materials or
activities. FATE will be responsible for registering and policing the FATE Logo in order to enable ONO to appropriately mark any packaging with the FATE Logo, to the extent permitted or required by Laws. Except as set forth in this Section 5.6
(Use of Names; Logo; Patent Marking) and Section 2.5.3 (Global Brand Strategy for Collaboration Products), no right or license, express or implied, is granted to ONO to use any trademark, trade name, trade dress, or service mark Controlled by
FATE or any of its Affiliates. Likewise, no right or license, express or implied, is granted to FATE to use any trademark, trade name, trade dress or service mark Controlled by ONO or any of its Affiliates except as provided in Section 2.5.3
(Global Brand Strategy for Collaboration Products). 
 5.7    Third Party In-Licenses. All licenses granted under this Article 5 (Licenses), to the extent they constitute sublicenses under this Article 5 (Licenses), are subject to the relevant terms and conditions of the
granting Party’s agreement with the Third Party that owns or otherwise Controls such intellectual property rights, subject further to Sections 7.5.6 (Upstream Limitations), 7.10.1 (Existing Agreements) and 9.2 (Additional Representations and
Warranties of FATE). Any exclusive licenses that are granted under this Article 5 (Licenses) that constitute sublicenses are exclusive only to the extent of the exclusive nature of the license granted to the granting Party. 

5.8    No Implied Licenses; Retained Rights; Government Rights. 

5.8.1    No Implied Licenses, Retained Rights.
No license or other right is or shall be created or granted hereunder by implication, estoppel, or otherwise. All licenses and rights are or shall be granted only as expressly provided in this Agreement. All rights not expressly granted by
either Party under this Agreement are reserved by such Party and may not be used by the other Party for any purpose. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 5.8.2    Government Rights. This Agreement is expressly subject
to the reservation on behalf of the U.S. government under 35 U.S.C. § 200–212 and regulations promulgated thereunder. ONO shall take all action necessary on its part to enable FATE to satisfy its obligation to substantially manufacture in
the United States to the extent required under 35 U.S.C. § 200–212 and regulations promulgated thereunder. 
 5.9    [***]

 5.9.1 [***] 

[***] 
 [***] 

5.9.2 [***] 
 [***]

 [***] 

5.10    [***] 

ARTICLE 6 

FINANCIAL TERMS 

6.1    Upfront Option Fee. In consideration for the rights granted to ONO under this
Agreement, ONO shall pay to FATE a one-time-only, non-refundable, non-creditable payment of Ten Million Dollars ($10,000,000)
within [***] Business Days after the Effective Date in accordance with Section 6.6 (Manner of Payment). 
 6.2    Research and
Development Costs. 
 6.2.1    ONO Research and Development. ONO shall bear, and shall be fully
and individually responsible for, all costs related to research and development of the [***]. No such costs will be included in any budgets under this Agreement or Annual R&D Fees below. 

6.2.2    FATE Research and Development. As consideration for FATE’s conduct of the Joint Development
Plan, ONO shall pay to FATE, in accordance with Section 6.6 (Manner of Payment), annual research and development fees (“Annual R&D Fees”) [***]. As of the Effective Date, the Parties agree that such annual budget for the Joint
Development Plan shall be equal to the amounts as set forth below, subject to any increase for an Unexpected Cost Increase as set forth in Section 2.3.7 (Additional Development). [***], ONO will pay a prorated amount for such Payment Quarter,
calculated by multiplying the quarterly amount based on the Annual R&D Fees by a fraction equal to the total number of days in such Payment Quarter divided by ninety (90) days. [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

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

 6.3    Milestone Payments. In consideration for the rights and
licenses granted to ONO under this Agreement, ONO shall make milestone payments, in accordance with Section 6.6 (Manner of Payment), to FATE described in Sections 6.3.1 [***] through 6.3.5 (Sales Milestones). The milestone payments, including
[***] AABD Research Milestone Fee and Option Exercise Payments set forth in this Section 6.3 shall all be non-refundable and non-creditable and, except as expressly
set forth in Sections 6.3.4 (Development Milestones) and 6.3.5 (Sales Milestones) for the milestone payments applying to each Collaboration Product [***]. 

6.3.1    [***]. ONO shall pay to FATE [***] Dollars ($[***]) upon delivery by ONO to FATE of the ONO Antigen Binding
Domain (“[***]”). 
 6.3.2    AABD Research Milestone Fee. In the case ONO has not delivered to FATE the
ONO Antigen Binding Domain [***] (or the end of any extended period that is mutually agreed by the Parties) and thereafter [***] ONO shall pay to FATE [***] Dollars ($[***])[***], in which ONO will be granted the license for [***] or (b) [***]
Dollars ([***]) [***] in which ONO will be granted the license for [***]. For clarity, in such case ONO shall not be required to pay the [***] pursuant to Section 6.3.1 [***] above. 

6.3.3    Option Exercise Payments. Upon exercise of an ONO Option, ONO shall pay FATE the option exercise payments
described below (the “Option Exercise Payments”). 
 (a)    [***]. ONO shall pay to FATE [***]
Dollars ([***]) upon the Exercise Date for [***] for further Research, Development and Commercialization of [***]. 

(b)    [***]. If ONO exercises the ONO Option for [***] and (i) FATE does not exercise the [***] with respect
to [***] then ONO shall pay to FATE [***] Dollars ([***]) upon the earlier of (A) expiration of the CDCC Option Period and (B) the receipt by ONO of the notice from FATE with respect to such
non-exercise of the CDCC Option, but in no case earlier than the Exercise Date; or (ii) FATE exercises the CDCC Option with respect to [***] then ONO shall pay to FATE [***] Dollars ($[***]) upon
the receipt by ONO of the notice from FATE with respect to exercising such CDCC Option for [***] but in no case earlier than the Exercise Date; provided, however, that in the case [***], ONO shall pay to FATE [***] Dollars ([***]) upon the
Exercise Date of the ONO Option, instead of paying [***] Dollars ($[***]) or [***] ($[***]), as applicable, pursuant to this Section 6.3.3(b). 

6.3.4    Development Milestones. ONO shall make the milestone payments set forth below to FATE in accordance with
Section 6.6 (Manner of Payment) upon the achievement of each of the corresponding milestone events for each Indication set forth in the relevant table (the 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
“Development Milestone Payments”). ONO shall notify FATE within [***] Business Days after the achievement of each milestone event in this Section 6.3.4 by or on behalf of ONO or
its Affiliates or Sublicensees. Such payments shall be due to FATE for each Collaboration Product and Indication within the description in the table. If a subsequent milestone event is achieved with respect to a particular Collaboration Product
before a prior milestone event for such Collaboration Product, then all such prior milestone events for the applicable Collaboration Product shall be deemed achieved upon achievement of the subsequent milestone event and shall become payable (if not
previously paid). As an example, a milestone event related to [***] shall be considered achieved upon [***]. For further clarity, the development milestone events for [***] as applicable, will be deemed achieved by the [***] as applicable. 

(a)    [***] in ONO Territory. 
  

													
	 Development Milestone
Event
	  	Milestone Payment	 
		  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  				  			
	 [***]
	  	 	[***]	 	  				  			
	 [***]
	  	 	[***]	 	  				  			
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 [***]
	  				  				  	 	[***]	 

 (b)    [***] in the United States. 

 

													
	 Development Milestone
Event*
	  	Milestone Payment	 
		  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 [***]
	  				  				  	 	[***]	 

  

	*	 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (c)    [***] in Europe. 

 

													
	 Development Milestone
Event*
	  	Milestone Payment	 
		  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 [***]
	  				  				  	 	[***]	 

  

	*	 [***] 

(d)    [***] in Asia. 
  

													
	 Development Milestone
Event
	  	Milestone Payment	 
		  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  				  			
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  	 	[***]	 	  	 	[***]	 	  	 	[***]	 
	 [***]
	  				  				  	 	[***]	 

 6.3.5    Sales Milestones. ONO shall pay to FATE the applicable Annual Net Sales
threshold milestone payments set forth below in accordance with Section 6.6 (Manner of Payment) the first time that the Annual Net Sales by ONO, and its Affiliates and its Sublicensees, of the described Collaboration Products in the ONO
Territory, or specified portion of the FATE CDCC Territory, reach or exceed the relevant amounts set forth in the table below (the “Sales Milestone Payments”). ONO shall notify FATE within [***] days after the end of the Calendar Year in
which the applicable milestone event(s) is(are) achieved. For the avoidance of doubt, if more than one Annual Net Sales threshold is first achieved by a Collaboration Product in a particular Calendar Year, then all applicable milestone payments will
be payable. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (a)    [***] in the ONO Territory. 

 

			
	 Sales Milestone Event
	  	 Milestone
Payment

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

	 [***]
	  	[***]
		  	  

 (b)    [***] in the United States. 

 

			
	 Sales Milestone Event *
	  	Milestone
Payment
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
		  	  

	 [***]
	  	[***]
		  	  

  

	 	*	 [***] 

(c)    [***] in Europe. 
  

			
	 Sales Milestone Event *
	  	Milestone
Payment
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
		  	  

	 [***]
	  	[***]
		  	  

  

	 	*	 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (d)    [***] in Asia. 

 

			
	 Sales Milestone Event
	  	Milestone
Payment
	 [***]1
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
		  	  

	 [***]
	  	[***]
		  	  

 6.4    Royalty Payments. As further consideration for the rights and licenses granted to ONO under
this Agreement, subject to Sections 6.4.4 (Necessary License), 6.4.5 (Royalty Deduction), [***] and 6.5 (Payments if CDCC Option is Exercised), ONO will pay FATE tiered royalties on the Annual Net Sales by ONO, its Affiliates and its Sublicensees of
all Collaboration Products in the ONO Territory (other than the FATE CDCC Territory during the CDCC Term) as described in the tables below, on a country-by-country basis
and on a Collaboration Product–by–Collaboration Product basis, for the applicable country in the specified ONO Territory, at the applicable royalty rates set forth in the tables below. Only one royalty payment shall be due with respect to
the same sales unit of the Collaboration Product. 
 6.4.1    [***] in the ONO Territory. 

 

			
	 Aggregate Annual Net Sales in the ONO
Territory*
	  	Royalty
	 On the portion of Annual Net Sales up to (and including)

[***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***]
	  	[***]

  

	 	*	 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 6.4.2    [***] in Asia. 

 

			
	 Aggregate Annual Net Sales in
Asia*
	  	Royalty
	 On the portion of Annual Net Sales up to (and including)

[***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***]
	  	[***]

  

	 	*	 [***] 

6.4.3    [***] Outside Asia. If FATE does not exercise the CDCC Option under Section 2.4.4 (CDCC Option), or
if there is an Opt-Out for the U.S. and/or Europe following FATE’s exercise of the CDCC Option, then the royalty rates below shall apply. During the CDCC Term for the U.S., there will be no royalties due
on Annual Net Sales of [***] in the United States, and during the CDCC Term for Europe, there will be no royalties due on Annual Net Sales of [***] in Europe, and instead, in each case, the Parties will share profits and losses in the applicable
FATE CDCC Territory pursuant to Section 6.5 (Payments if CDCC Option is Exercised) hereof. 
  

			
	 Aggregate Annual Net Sales in the
U.S.*
	  	Royalty
	 On the portion of Annual Net Sales up to (and including)

[***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***]
	  	[***]

  

	 	*	 [***] 

  

			
	 Aggregate Annual Net Sales in
Europe*
	  	Royalty
	 On the portion of Annual Net Sales up to (and including)

[***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***]
	  	[***]

  

	 	*	 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

			
	 Aggregate Annual Net Sales in the Rest
of the ONO Territory outside of U.S., Europe and Asia*
	  	Royalty
	 On the portion of Annual Net Sales up to (and including)

[***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***] and up to (and including) [***]
	  	[***]
	 On the portion of Annual Net Sales exceeding

[***]
	  	[***]

  

	 	*	 [***] 

6.4.4    Necessary License. ONO shall have the right to deduct, on a country-by-country basis and on a Collaboration Product–by–Collaboration Product basis, from the royalty payment due to FATE pursuant to Sections 6.4.1 ([***] in the ONO Territory), 6.4.2 ([***] in
Asia) and 6.4.3 ([***] Outside Asia) with respect to Net Sales of a Collaboration Product in the ONO Territory (other than the FATE CDCC Territory during the CDCC Term) during any Calendar Quarter, [***] percent ([***]) of the royalties paid by ONO
pursuant to a Necessary License agreement on account of the sale of such Collaboration Product in such country during such Calendar Quarter, [***]. 

6.4.5    Royalty Deduction. All royalties payable under this Section 6.4 (Royalty Payments) shall be payable
on a Calendar Quarterly basis during the Royalty Term for such Collaboration Product in each country in the relevant Territory (or portion thereof). [***] 

6.4.6    [***] 

6.4.7    Royalty Payment Reports. After the First Commercial Sale of a Collaboration Product and for the Royalty
Term for such Collaboration Product, ONO shall furnish to FATE a written report, within [***] days after the end of each Calendar Quarter (or portion thereof if this Agreement terminates during a Calendar Quarter), showing the amount of royalty due
for such Collaboration Product for such Calendar Quarter (or portion thereof). Royalty payments for each Calendar Quarter shall be due at the same time as such written report for the Calendar Quarter. With each quarterly payment, ONO shall deliver
to FATE a full and accurate accounting to include at least the following information: (a) [***] (b) [***] (c) [***] (d) [***] and (e) [***]. ONO shall calculate Net Sales by assigning each individual deduction permitted under Section 1.74 (Net
Sales) to one of the categories of permitted deductions set forth in Section 1.74(a) through (g). 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 6.5    Payments if CDCC Option is Exercised. If FATE exercises the CDCC Option,
then during the CDCC Term the Parties shall share profits and losses [***] in the [***] Territory according to the terms agreed to by the Parties pursuant to Section 2.4.4 (CDCC Option). 

6.6    Manner of Payment. All payments to be made by a Party hereunder shall be made in Dollars by wire transfer of immediately
available funds to the bank account as shall be designated by the other Party [***] and shall be made within the specified days (or Business Days as the case maybe) set forth in the applicable Section hereof, or if such timing is not specified,
within [***] days, subject to the provision set forth in Section 6.10 (Taxes), in each case following the receipt by a Party of the relevant taxation documents, if applicable, and an invoice referring to this Agreement and the Section number
relating to such payment and specifying the invoice date, the amount payable by such Party, the triggering event (in case of milestone payments) and such designated bank account. Late payments shall bear interest at the rate provided for in
Section 6.11 (Interest Due). 
 6.7    Records Retention. Commencing with the First Commercial Sale of a Collaboration
Product by ONO, ONO shall keep, and shall cause each of its respective Affiliates, and Sublicensees, if any, to keep, full and accurate books of accounting in accordance with IFRS or GAAP, as applicable, containing all particulars that may be
necessary for the purpose of calculating all royalties and sales milestones payable to FATE under this Article 6 (Financial Terms), for a period of [***]after the Calendar Year in which such sales occurred, in sufficient detail to permit FATE to
confirm the accuracy of royalties paid hereunder. 
 6.8    Audits. Commencing with the First Commercial Sale of a Collaboration
Product, during the Term and for a period of [***] thereafter, [***] ONO shall permit an independent, certified public accountant of nationally recognized standing appointed by FATE, and reasonably acceptable to ONO, during the business hours of ONO
upon [***] to examine such records which ONO is obligated to retain pursuant to Section 6.7 (Records Retention) as may be necessary for the sole purpose of verifying the calculation and reporting of Annual Net Sales and the correctness of any
royalty payment and sales milestone payment made under this Agreement. FATE shall cause such an independent, certified public accountant to enter into an appropriate confidentiality and non-use agreement with
ONO setting forth the customary terms and conditions of such agreement and provisions relating to subsections (a) and (b) as well as the following sentences below. Results of any such examination shall be made available to both ONO and FATE.
The independent, certified public accountant shall disclose to (a) FATE only the royalty amounts which the independent auditor believes to be due and payable hereunder to FATE, and shall disclose no other information revealed in such audit, and
(b) ONO such amount and grounds for the discrepancy from the amount paid and the amount due specifying the records that such discrepancy occurs as an evidence. Any and all records examined by such independent accountant shall be deemed
ONO’s Confidential Information and trade secret which may not be disclosed by said independent, certified public accountant to FATE or any Third Party except the information permitted to be disclosed to FATE pursuant to subsection
(a) above. If, as a result of any inspection of the books and records of ONO, it is shown that ONO’s payments under this Agreement were less than the amount which should 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
have been paid, then ONO shall make all payments required to be made to eliminate any discrepancy revealed by said inspection [***]. If the audit reveals any overpayment, the amount overpaid by
ONO [***]. For clarity, FATE shall have no rights to audit the records to which ONO’s obligation to retain pursuant to Section 6.7 (Records Retention) has expired, or that have once been audited pursuant to this Section 6.8. The
royalty payment of ONO on the Annual Net Sales based on such records for which FATE’s audit rights have expired under this Agreement shall be fixed, and in no event shall a claim by FATE relating to such royalty payment be disputable and deemed
a Dispute or any other dispute under this Agreement. 
 6.9    Currency Exchange. All payments under this Agreement shall be
payable, in full, in Dollars, regardless of the country(ies) in which sales are made. For the purposes of computing Net Sales of Collaboration Products Commercialized by a Party that are sold in a currency other than Dollars, such currency shall be
converted into Dollars [***]. 
 6.10    Taxes 

6.10.1    Where any sum due to be paid to any Party hereunder is subject to any withholding or similar tax, the
Parties will use their Commercially Reasonable Efforts to do all such acts and things and to sign all such documents as will enable them to take advantage of any applicable double taxation agreement or treaty or other exemption from such tax. In the
event there is no applicable double taxation agreement or treaty or other exemption, or if an applicable double taxation agreement or treaty reduces but does not eliminate such withholding or similar tax or is not available, the payor will remit
such withholding or similar tax to the appropriate government authority, deduct the amount paid from the amount due to the payee and secure and send to the payee the best available evidence of the payment of such withholding or similar tax. In the
event that a government authority retroactively determines that a payment made by a Party pursuant to this Agreement should have been subject to withholding or similar (or to additional withholding or similar) taxes, and such Party remits such
withholding or similar taxes to the government authority, including any interest and penalties that may be imposed thereon (together with the tax paid, the “Withholding Amount”), such Party will have the right: (a) to offset
the Withholding Amount against future payment obligations of such Party under this Agreement; or (b) to invoice the other Party for the Withholding Amount (which will be payable by the other Party within sixty (60) days of its receipt of
such invoice). The Parties shall cooperate in accordance with applicable Laws to minimize taxes in connection with this Agreement. 

6.10.2    Notwithstanding the foregoing in Section 6.10.1, [***]. 

6.10.3    Each Party agrees to cooperate with the other Party in claiming exemptions or reductions from such
deductions or withholdings to the fullest extent permitted by any Law, agreement or treaty from time to time in effect, including the submission of Form 3 and Form 17 (application form for the relief from Japanese Income Tax on Royalties) duly
signed by FATE and Certificate of Residence of FATE issued and signed by the tax authority in the United States, and a properly completed and duly executed IRS Form W-8 from ONO, and any other document that
may be required for the similar purpose from time to time during the Term, for such claim prior to the wire transfer of such payments by a Party. The Parties acknowledge that such exemptions or reductions may be applicable only prior to the actual
transfer of the payment. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 6.10.4    All payments are exclusive of value added taxes, sales
taxes, consumption taxes and other similar taxes (the “Indirect Taxes”). If any Indirect Taxes are chargeable in respect of any payments, the payor Party will pay such Indirect Taxes at the applicable rate in respect of such
payments following receipt, where applicable, of an Indirect Taxes invoice in the appropriate form issued by the payee Party in respect of those payments, and the amount due to the payee Party shall be paid without offset. The payee Party will issue
invoices for all amounts payable under this Agreement consistent with Indirect Tax requirements and irrespective of whether the sums may be netted for settlement purposes. If either Party, or a governmental authority, determines that a payment made
by a Party pursuant to this Agreement should have been subject to Indirect Taxes, and the payee Party remits such Indirect Taxes, the payor Party shall indemnify the payee Party with respect to, and shall promptly reimburse the payee Party for, such
Indirect Taxes (including any interest and penalties that may be imposed thereon). If the Indirect Taxes originally paid or otherwise borne by the payor Party are in whole or in part subsequently determined not to have been chargeable, then at the
request of the payor Party, all commercially reasonable steps will be taken by the payee Party to receive a refund of these undue Indirect Taxes from the applicable governmental authority or other fiscal authority and any amount of undue Indirect
Taxes repaid by such authority to the payee Party (net of the payee Party’s reasonable out-of-pocket costs and expenses associated with such refund) will be
transferred to the payor Party within [***]. 
 6.11    Interest Due. Without limiting any other rights or remedies available to
the other Party, a paying Party shall pay the other Party interest on any payments that are not paid on or before the date such payments are due under this Agreement at a rate of [***]per month or the maximum applicable legal rate, if less,
calculated on the total number of days payment is delinquent. 
 ARTICLE 7 

INTELLECTUAL PROPERTY 

7.1    Ownership of Inventions. 

7.1.1    Inventorship. Inventorship of inventions conceived, developed or reduced to practice in the course of
activities performed under or contemplated by this Agreement (“Inventions”) shall be determined by application of U.S. patent Laws pertaining to inventorship. In no event shall either Party be liable for compensation to any inventors for
Inventions conceived, developed or reduced to practice by director(s), officer(s) or employee(s) of the other Party regardless of which Party has ownership rights to such Inventions pursuant to this Section 7.1; provided, however, [***]
regardless of which Party has ownership rights to such Inventions pursuant to this Section 7.1. 

7.1.2    Ownership of Inventions. 

(a)    General Rules of Ownership. Subject to Section 7.1.2(b) (Ownership by Subject Matter), all
Inventions conceived, developed or reduced to practice solely by or on behalf of ONO shall be solely owned by ONO, all Inventions conceived, developed or reduced to practice solely by or on behalf of FATE shall be solely owned by FATE, and all
Inventions conceived, developed or reduced to practice jointly by or on behalf of ONO and FATE shall be jointly owned by ONO and FATE. In this case, each Party owns an equal and undivided interest in such jointly-owned Inventions, with the right to
practice, license and exploit such Inventions without the duty or accounting or seeking consent from the other Party, subject to any exclusive licenses granted herein and in a way not inconsistent with this Agreement. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (b)    Ownership by Subject Matter. Notwithstanding
Section 7.1.2(a) (General Rules of Ownership), the ownership of the following Inventions shall be as follows, regardless of the inventorship of such Inventions between the Parties: 

(i)    FATE shall solely own all Inventions directed to: (A) [***] (B) [***] and (C) [***]. 

(ii)    ONO shall solely own all Inventions directed to [***]. 

(iii)    ONO and FATE shall jointly own all Inventions directed to: [***]. Each Party shall own an equal and
undivided interest in such jointly-owned Inventions, with the right to practice, license and exploit such Inventions without the duty of accounting or seeking consent from the other Party, subject to any exclusive licenses granted herein and in a
way not inconsistent with this Agreement. 
 (c)    All Inventions jointly owned by ONO and FATE in accordance
with Sections 7.1.2(a) or (b) above shall be deemed “Joint Inventions”. All Inventions solely owned by FATE, as well as FATE’s interest in all of the Joint Inventions, shall be included in the FATE Know-How, and all Patents claiming such Inventions shall be included in FATE Patents. All Inventions solely owned by ONO, as well as ONO’s interest in all of the Joint Inventions, shall be included in the ONO Know-How, and all Patents claiming such Inventions shall be included in ONO Patents. 

(d)    Notwithstanding the second sentence of each of Sections 7.1.2(a) and 7.1.2(b)(iii), in the
case that, due to the patent strategy agreed to between the Parties, [***] provided, however, that each Party shall have the right to practice and exploit such Joint Invention and Joint Patent solely in accordance with this Agreement.
Notwithstanding anything in this Agreement to the contrary, each Party’s rights with respect to prosecution, enforcement, and defense for infringement of such Joint Patent shall be discussed in good faith by the patent subcommittee and
determined by the Parties and, as applicable, [***]. 
 7.1.3    Disclosure. Each Party shall promptly disclose
to the other Party in writing, and shall cause its Affiliates, to so disclose, the conception, development or reduction to practice of any Invention during the Term of this Agreement. Each Party shall cause its Affiliates, employees, directors, and
officers to so assign to such Party, such person’s or entity’s right, title and interest in and to any such Inventions, and intellectual property rights therein, as is necessary to enable such Party to fully effect the ownership of such
Inventions, and intellectual property rights therein, as provided for in Section 7.1.2 (Ownership of Inventions). Each Party shall include provisions in its relevant agreements with Third Party contractors performing obligations on its behalf
pursuant to this Agreement, that effect the intent of this Article 7 (Intellectual Property). Furthermore, each Party shall use Commercially Reasonable Efforts to include provisions in its relevant agreements with Third Party independent researchers
or Sublicensees performing obligations on its behalf pursuant to this Agreement, that effect the intent of this 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
Article 7 (Intellectual Property); provided, however, that [***]. Each Party shall, and shall cause its Affiliates, employees, directors, and officers, and to the extent applicable its
Sublicensees, Third Party independent researchers and Third Party contractors, in each case to cooperate with such other Party and take all reasonable additional actions and execute such agreements, instruments and documents as may be reasonably
required to perfect such other Party’s right, title and interest in and to Inventions, and intellectual property rights therein, as set forth in this Section 7.1 (Ownership of Inventions). 

7.2    Prosecution of FATE Patents. 

7.2.1    Filing, Prosecution, and Maintenance of FATE Patents. FATE shall, at its sole costs and expense, be
responsible, using patent counsel selected by FATE (for clarity, all references in this Article 7 (Intellectual Property) to “patent counsel” shall include inside patent counsel as well as outside patent counsel), for the preparation,
filing, prosecution (including without limitation any interferences, reissue proceedings and reexaminations) and maintenance of FATE Patents solely owned by FATE, including, without limitation, those claiming Inventions to be owned by FATE under
this Agreement. For any FATE Patent for which ONO has been granted a license under Section 5.1.2 (License upon Exercise of ONO Option [***]) or Section 5.1.3 (License upon Exercise of ONO Option [***]. FATE shall provide to ONO copies of
any filings and correspondence of such FATE Patents solely owned by FATE promptly upon their being filed or received in the ONO Territory and shall promptly notify ONO in writing of any developments in filing, prosecution and maintenance in the
Territory with respect to any FATE Patents in-licensed by FATE. The Parties acknowledge and agree that FATE has the final decision making authority with respect to any dispute on such preparation, filing,
prosecution and maintenance of such FATE Patents and any inadvertent failure of FATE to comply with this Section 7.2.1 with respect to thereto, [***]. 

7.2.2    Opt Out by FATE. For any FATE Patent for which ONO has been granted a license under Section 5.1.2
(License upon Exercise of ONO Option for [***]) or Section 5.1.3 (License upon Exercise of ONO Option for [***] FATE shall notify ONO of such decisions at least [***] days prior to any pending lapse or abandonment of the applicable FATE Patent.
ONO shall notify FATE promptly whether or not ONO wishes FATE to file, prosecute or maintain such FATE Patent or such new patent application. [***]. In these events, FATE shall notify ONO if it elects to continue to prosecute or maintain or to file
the applicable FATE Patent within [***] days from its receipt of ONO’ notice. If FATE does not so elect, then (a) ONO may (but is not obliged to) prepare, file, prosecute, and maintain, as applicable, such FATE Patent or such new patent
application, [***] (b) FATE shall fully cooperate with ONO in providing ONO with information in its possession necessary for such preparation, filing, prosecution and maintenance, and (c) FATE shall sign, or use Commercially Reasonable Efforts
to have signed, all legal documents necessary for ONO to file and prosecute such patent applications or to obtain or maintain such Patents. [***]. In the case of each FATE Patent filed, prosecuted and maintained by ONO, such FATE Patent shall cease
being a FATE Patent for the purpose of determining the royalty rate and Royalty Term with respect to the relevant Collaboration Product pursuant to Section 6.4 (Royalty Payment) hereof in such country of filing, prosecution and maintenance.
With respect to any FATE Patent in-licensed by FATE and for which ONO has been granted a sublicense under Section 5.1.2 (License upon Exercise of [***]) or Section 5.1.3 (License upon Exercise of
[***] provided, however, that if FATE desires to abandon such FATE Patent, FATE shall promptly notify ONO of such desire and both Parties shall discuss the implications of such abandonment in good faith. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 7.3    Prosecution of ONO Patents 

7.3.1    Filing, Prosecution, and Maintenance of
ONO Patents. ONO shall, at its sole costs and expenses, be responsible, using patent counsel selected by ONO, for the preparation, filing, prosecution (including without limitation any interferences, reissue
proceedings and reexaminations) and maintenance of ONO Patents solely owned by ONO. ONO shall reasonably consult with FATE, and shall take any FATE comments into good faith consideration, with respect to the preparation, filing, prosecution and
maintenance of those ONO Patents in the FATE Territory [***] that are solely owned by ONO and that [***]. ONO shall provide to FATE copies of filings and correspondence of such ONO Patents solely owned by ONO promptly upon their being filed or
received in such ONO Territory and in the FATE Territory and shall promptly notify FATE in writing of any developments in filing, prosecution and maintenance in such ONO Territory and in the FATE Territory with respect to any ONO Patents in-licensed by ONO. The Parties acknowledge and agree that ONO has the final decision making authority with respect to any dispute on such preparation, filing, prosecution and maintenance of such ONO Patents and
[***]. 
 7.3.2    Opt Out by ONO. For any ONO Patent for
which FATE has been granted a license under Section 5.3.2 (License for Collaboration Candidates and Products) or Section 5.3.3 (License upon Exercise of CDCC Option for [***]. In these events, ONO shall notify FATE if it elects to continue
to prosecute or maintain or to file the applicable ONO Patent within [***] days from its receipt of FATE’s notice. If ONO does not so elect, then (a) FATE may (but is not obliged to) prepare, file, prosecute, and maintain, as applicable,
such ONO Patent or such new patent application, [***], (b) ONO shall fully cooperate with FATE in providing FATE with information in its possession necessary for such preparation, filing, prosecution and maintenance, and (c) ONO shall sign or
use Commercially Reasonable Efforts to have signed all legal documents necessary for FATE to file and prosecute such patent applications or to obtain or maintain such Patents. [***]. In the case of each ONO Patent filed, prosecuted and maintained by
FATE, such ONO Patent shall cease being an ONO Patent for the purpose of determining the royalty rate and Royalty Term with respect to FATE Cell Therapy pursuant to [***] hereof in such country of filing, prosecution and maintenance. With respect to
ONO Patent in-licensed by ONO and for which FATE has been granted a sublicense under Section 5.3.2 (License for Collaboration Candidates and Products) or Section 5.3.3 (License upon Exercise of CDCC
Option for [***]. 
 7.4    Filing, Prosecution, and Maintenance
of Joint Patent. Upon receiving notice of the creation of Joint Inventions, [***] shall have the first right, but not the obligation, to be responsible for obtaining and maintaining any Patents that
claim or disclose such Joint Inventions (“Joint Patents”). If [***] elects to be responsible for such activities, [***] shall file, prosecute, and maintain all Joint Patents throughout the world, in the names of [***]. [***] shall provide
[***] an opportunity to review and comment on material documents related to such filing, prosecution and maintenance in accordance with this Section 7.4, which comments [***] shall consider in good faith. If [***] decides not to be responsible
for obtaining or maintaining any particular Joint Patent in a country, [***] shall notify [***] in writing and [***] shall have 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
the right, but not the obligation, to be responsible for such activities in such country. In this case, [***] may file, prosecute, and maintain such Joint Patents in such country in the names of
both [***] and [***], and [***] shall provide [***] an opportunity to review and comment on material documents related to such filing, prosecution and maintenance in accordance with this Section 7.4, which comments [***] shall consider in good
faith. Each Party shall at its own cost, sign, or use Commercially Reasonable Efforts to have signed, all legal documents necessary to file and prosecute Joint Patent applications or to obtain or maintain Joint Patents. Each Party shall fully
cooperate with the other Party in providing the other Party with necessary information in its possession for such filing, prosecution and maintenance. The Parties shall share [***]; provided, however, that any of such costs for [***] (collectively,
“Joint Patent Costs”). The Party who is responsible for the filing, prosecution and maintenance of the Joint Patent (“Joint IP Prosecuting Party”) shall, through its patent counsel, if applicable, invoice the other Party for such
Joint Patent Costs within [***] days after such Joint Patent Costs were incurred and the other Party shall pay such Joint Patent Costs to the applicable Party or its patent counsel within [***] days after receipt of such invoice. Notwithstanding
this Section 7.4, if a Party does not wish to bear Joint Patent Costs with respect to a Joint Patent in a country, such Party may, by providing [***] days prior written notice to the other Party, terminate its obligation to pay such Joint
Patent Costs. Such Party shall promptly assign all of its right, title and interest in and to such Joint Patent in such country to the other Party upon such other Party’s written request at such other Party’s cost; provided, however, that
such Joint Patent shall cease being a Joint Patent and shall be deemed either a FATE Patent solely owned by FATE if ONO is the assigning Party or an ONO Patent solely owned by ONO if FATE is the assigning Party. 

7.5    Enforcement of FATE Patents, ONO Patents or Joint Patent Against Infringers. 

7.5.1    Notice. In the event that, following the Exercise Date with respect to the applicable
Collaboration Candidate, FATE or ONO becomes aware of [***], such Party shall notify the other Party promptly, and following such notification, the Parties shall confer. 

7.5.2    Enforcement of FATE Patents. 

(a)    FATE shall bring any action or proceeding to enforce or defend, as applicable, at its own expense, including
without limitation, attorney’s fees and in its own name and entirely under its own direction and control, subject to Section 7.5.2(c), any FATE Patent [***]. ONO shall reasonably assist FATE [***] in any such action or
proceeding if so requested, execute any instruments and documents as may be reasonably required for FATE to take any such actions, and shall lend its name to such actions or proceedings if requested by FATE or required by Laws. FATE shall keep ONO
informed of the progress of any such action or proceeding. ONO shall have the right to participate and be represented in any such action or proceeding by its own counsel at its own expense including without limitation such attorneys’ fees. No
settlement of any such action or proceeding nor court order or decision to the extent appealable which restricts or adversely affects the scope of the licenses granted by FATE to ONO under the terms of this Agreement, or which may adversely affect
the Commercialization of a Collaboration Product by ONO in the ONO Territory, will be entered into, or accepted, by FATE without the prior written consent of ONO, which consent shall not be unreasonably withheld, delayed or conditioned. FATE will
consult with ONO and will take any ONO 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
comments into good faith consideration with respect to the infringement, claim construction, or defense of the validity or enforceability of any claim in any such FATE Patent [***] in any such
action or proceeding. FATE shall provide to ONO copies of any papers relating to the infringement and/or invalidity litigation of any such involved FATE Patents [***] promptly upon their being filed or received. ONO shall not have any right to
independently settle any such action or proceeding without FATE’s prior written consent, [***]. 
 (b)    If
FATE elects not to bring any action or proceeding with respect to a Competitive Product Infringement in the ONO Territory (other than the FATE CDCC Territory during the CDCC Term) in accordance with the second sentence of
Section 7.5.2(a) within [***] after first notifying ONO or being notified by ONO with respect thereto, then the Parties will promptly confer and attempt to agree on a course of action. [***] 

(c)    Notwithstanding anything to the contrary in this Section 7.5.2, FATE shall have the
sole right (but not obligation) and discretion for the enforcement of FATE Patents [***] in the FATE Territory other than the FATE CDCC Territory during the CDCC Term. 

7.5.3    Enforcement of ONO Patents. 

(a)    ONO shall bring any action or proceeding to enforce or defend, as applicable, at its own expense, including
without limitation, attorney’s fees and in its own name and entirely under its own direction and control, subject to Section 7.5.3(c), any ONO Patent [***]. FATE shall reasonably assist ONO [***] in any such action or
proceeding if so requested, execute any instruments and documents as may be reasonably required for ONO to take any such actions, and shall lend its name to such actions or proceedings if requested by ONO or required by Laws. ONO shall keep FATE
informed of the progress of any such action or proceeding. FATE shall have the right to participate and be represented in such action or proceeding separately by counsel of its own choice and at its own expense including without limitation such
attorneys’ fees. No settlement of any such action or proceeding nor court order or decision to the extent appealable which restricts or adversely affects the scope of the licenses granted by ONO to FATE under the terms of this Agreement, or
which may adversely affect the Commercialization of a Collaboration Product by ONO in the ONO Territory or by FATE in the FATE Territory, will be entered into, or accepted, by ONO without the prior written consent of FATE, which consent shall not be
unreasonably withheld, delayed or conditioned. ONO will consult with FATE and will take any FATE comments into good faith consideration with respect to the infringement, claim construction, or defense of the validity or enforceability of any claim
in any such ONO Patent, as applicable, in any such action or proceeding. ONO shall provide to FATE copies of any papers relating to the infringement and/or invalidity litigation of any such involved ONO Patents promptly upon their being filed or
received. FATE shall not have the right to independently settle any such action or proceeding without ONO’s prior written consent, [***]. 

(b)    If ONO elects not to bring any action or proceeding with respect to a Competitive Product Infringement in the
FATE Territory or the ONO Territory (other than the FATE CDCC Territory during the CDCC Term) in accordance with the second sentence of Section 7.5.3(a) within [***] after first notifying FATE or being notified by
FATE with respect thereto, then the Parties will promptly confer and attempt to agree on a course of action. [***]. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 7.5.4    Joint Enforcement in FATE CDCC Territory During CDCC
Term. In the case of any Competitive Product Infringement of any FATE Patent, ONO Patent or Joint Patent in the FATE CDCC Territory during the CDCC Term, the Parties shall promptly confer to consider such Competitive Product Infringement and the
appropriate course of action in good faith. 
 7.5.5    Damages. In the event that either Party
exercises the rights conferred in this Section 7.5 and recovers any damages or other sums in such action, suit or proceeding or in settlement thereof, such damages or other sums recovered shall first be applied to all out-of- pocket costs and expenses incurred by the Parties in connection therewith, including without limitation attorneys’ fees. If such recovery is insufficient to cover all such costs and expenses of both
Parties, it shall be shared in proportion to the total of such costs and expenses incurred by each Party. If after such reimbursement any funds remain from such damages or other sums recovered, it shall be shared [***]. 

7.5.6    Upstream Limitations. Each Party’s rights to enforce a FATE Patent or ONO
Patent pursuant to this Section 7.5, or to defend against a Competitive Product Infringement in any action or proceeding described in Section 7.5.1 (Notice), shall be subject to the applicable provisions of any agreements between the Party
Controlling such Patents and its licensor. In the case that (a) the provisions of any agreement between a Party Controlling a Patent and its licensor prevail over this Agreement, (b) the Party Controlling a Patent and its licensor do not
enforce or defend such Patent against a Competitive Product Infringement and the other Party’s Commercialization of such Collaboration Product is adversely affected by such Competitive Product Infringement, and (c) the other Party cannot
be provided the rights to enforce such Patent against a Competitive Product Infringement commensurate with its rights as provided for in this Section 7.5, or to defend against a Competitive Product Infringement in any action or proceeding
commensurate with its rights as provided for in Section 7.5.1 (Notice), [***]. 
 7.6    Patent Term
Extension. FATE and ONO shall each cooperate with one another and shall use Commercially Reasonable Efforts to obtain patent term extension (including without limitation any pediatric exclusivity extensions as may be available) or
supplemental protection certificates or their equivalents in any country with respect to Patents claiming the Collaboration Products, as applicable. If elections with respect to obtaining such patent term extensions are to be made, FATE shall have
the right to elect to seek patent term extension or supplemental protection with respect to the relevant Collaboration Product at its sole discretion [***], and ONO shall have the right to elect to seek patent term extension or supplemental
protection [***]; provided, however, that in each case, such election will be made so as to maximize the period of marketing exclusivity for the Collaboration Product. As to the patent term extension with respect to Joint Patents, the expense
thereof shall be [***]. As to the patent term extension with respect to Patents claiming the Collaboration Products in the FATE CDCC Territory during the CDCC Term, both FATE and ONO shall consult each other and if both Parties agree on
seeking patent term extension or supplemental protection with respect to the relevant Collaboration Product, both Parties shall do so and the expense thereof shall [***]. For such purpose, for all Regulatory Approvals, FATE shall provide ONO with
written notice of any 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
expected Regulatory Approval in the FATE Territory and ONO shall provide FATE with written notice of any expected Regulatory Approval in the ONO Territory, in each case, at least [***] days prior
to the expected date of Regulatory Approval, as well as notice within [***] Business Days of receiving each Regulatory Approval confirming the date of such Regulatory Approval. 

7.7    Notification of Patent Certification. FATE and ONO shall provide
each other with copies of any notice of the filing of an application for licensure of a Biosimilar Product that is covered by one or more FATE Patents, ONO Patents or Joint Patents pursuant to under 35 U.S.C. §271(e)(2) or receipt of access to
the biosimilar application and manufacturing information pursuant to the Biologics Price Competition and Innovation Act (BPICA) at 42 U.S.C. §262(I)(2) or other similar notice by a Third Party or any other notice or document exchange pursuant
to 42 U.S.C §262(I)(3)(C), 42 U.S.C §262(I)(4), notice of suit pursuant to 42 U.S.C §262(I)(6)(A) or 42 U.S.C §262(I)(6)(B) or notice of commercial marketing from a Third Party pursuant to 42 U.S.C §262(I)(8)(A) and any
foreign equivalent thereof. The receiving Party shall notify and share such access with the other Party within [***] Business Days after the receiving Party receives such notice. FATE and ONO shall reasonably assist one another with respect to
patent lists required under 42 U.S.C §262(I)(4) or foreign equivalent, and shall cooperate with one another in any actions reasonably undertaken by a Party in accordance with Section 7.5 (Enforcement of FATE Patents, ONO Patents or Joint
Patents Against Infringers) to contest any suits under 42 U.S.C §262 (including without limitation making available documents possessed that are reasonably required and making available personnel for interviews and testimony) or foreign
equivalent. 
 7.8    Regulatory Data Protection. To the extent required by or
permitted by Law, FATE and ONO shall each cooperate with one another and shall use Commercially Reasonable Efforts to [***]. 

7.9    Defense Against Claims of Infringement of
Third Party Patents. If a Third Party asserts that a Patent or other right owned by it is or has been infringed by the manufacture, use, sale, offer for sale, promotion, distribution, export, import,
labeling, packaging or other Commercialization of a Collaboration Candidate or Collaboration Product in the Territory, the Party first obtaining knowledge of such a claim shall immediately provide the other Party with a notice of such claim along
with the related facts in reasonable detail. In such event, subject to the exercise by ONO of the ONO Option with respect to the Collaboration Product that is the subject of such Third Party assertion, [***]. FATE and ONO shall each cooperate with
one another, and each Party shall have the right to be represented separately by counsel of its own choice and at its own expense, including without limitation such attorneys’ fees. Notwithstanding the foregoing, no settlement shall be entered
into, or accepted, without the prior written consent of the other Party if such settlement would adversely affect the rights and benefits of, or impose or adversely affect any obligations on, such other Party, which consent shall not unreasonably be
withheld, delayed or conditioned. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 7.10    Third Party Licenses. Subject
to the exercise by ONO of the ONO Option with respect to a Collaboration Product: 
 7.10.1    Existing
Agreements. The Parties agree and understand that FATE has entered into certain agreements under which FATE has been granted a license, prior to the Effective Date, with the rights to sublicense, under certain FATE Intellectual
Property to Research, Develop and Commercialize any Collaboration Candidate and Collaboration Product in the Territory or to otherwise practice any other rights contemplated in this Agreement that are subject to royalty obligations (such agreements
collectively, the “Existing Agreements”), [***]. The list of Existing Agreements is set forth on Exhibit 7.10.1. 

7.10.2    FATE Platform Improvement. The Parties acknowledge that FATE has
a broad interest in improving FATE Platform Technology and as such, FATE may from time to time, in its discretion and at its expense, [***]. 

7.10.3    Necessary License. 

(a)    Notice. [***], in the event a Party reasonably determines that (i) [***]or (ii) such Potential
Necessary License has been deemed a Necessary License by the JSC pursuant to Section 7.10.3(b). 

(b)    Negotiations. [***]. 

(c)    Allocation of Costs. 

(i)    Royalties under Necessary License. Unless the Parties
otherwise agree, the royalty amounts owed under any Necessary License [***]: 
 (A)    [***] 

(B)    [***] 

(C)    [***] 

(ii)    Other Payments under Necessary License. For
all other non- royalty payments, including milestone payments, owed by either Party to any Third Party pursuant to any Necessary License, [***]. 

7.10.4    [***]. 

7.11    Common Interest Disclosures. With regard to any information, opinions or other
materials disclosed pursuant to this Agreement by one Party to the other Party regarding intellectual property or technology owned by Third Parties, ONO and FATE agree that they have a common legal interest in determining whether, and to what
extent, Third Party intellectual property rights may affect the performance of the Research, Development, manufacturing or Commercialization of Collaboration Products, and have a further common legal interest in defending against any actual or
prospective Third Party claims based on allegations of misuse or infringement of intellectual property rights relating to the performance of the Research, Development, manufacturing or Commercialization of Collaboration Products. Accordingly, ONO
and FATE agree that all such information, opinions and other materials obtained by ONO and FATE from each other will be used solely for purposes of the Parties’ common legal interests 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
with respect to the conduct of this Agreement. All such information, opinions and other materials shall be treated as protected by the attorney-client privilege, the work product privilege, and
any other privilege or immunity that may otherwise be applicable. By sharing any such information, opinions and other materials, neither Party intends to waive or limit any privilege or immunity that may apply to the shared information, opinions and
other materials. Neither Party shall have the authority to waive any privilege or immunity on behalf of the other Party with respect to such information, opinions and other materials without such other Party’s prior written consent, nor shall
the waiver of privilege or immunity resulting from the conduct of one Party be deemed to apply against the other Party. 
 ARTICLE 8

 CONFIDENTIALITY 

8.1    Nondisclosure. Each Party agrees that, during the Term and for a period of [***] years thereafter, a Party
(the “Receiving Party”) receiving (itself or through its Affiliates) Confidential Information of the other Party (the “Disclosing Party”) or its Affiliates (or that has received any such Confidential Information from the
Disclosing Party or its Affiliates prior to the Effective Date) shall (a) maintain in strict confidence such Confidential Information using [***] (b) not disclose such Confidential Information to any Third Party without the prior written
consent of the Disclosing Party, except for disclosures expressly permitted below, and (c) not use such Confidential Information for any purpose, except that each Party shall have the right to use the other Party’s Confidential Information
in connection with the exercise of its rights or fulfilling its obligations under this Agreement (it being understood that this clause (c) shall not create or imply any rights or licenses not expressly granted under this Agreement).
Notwithstanding anything to the contrary in the foregoing, the obligations of confidentiality and non-use with respect to any trade secret within such Confidential Information shall survive such [***] year
period until the time and unless any of the exceptions set forth in Section 8.2 (Exceptions) below applies to such Confidential Information. 

8.2    Exceptions. The obligations in Section 8.1 (Nondisclosure) shall not apply with respect to any portion of
the Confidential Information that the Receiving Party can show by competent proof: 
 8.2.1    is publicly
disclosed by the Disclosing Party, either before or after it is disclosed to the Receiving Party or its Affiliates hereunder; 

8.2.2    was duly known to or possessed by the Receiving Party or its Affiliates prior to disclosure by the
Disclosing Party; 
 8.2.3    is subsequently disclosed to the Receiving Party or its Affiliates by a Third Party
lawfully in possession thereof and without any obligation to keep it confidential or any restriction on its use; 

8.2.4    is published by a Third Party or otherwise becomes publicly available or enters the public domain, either
before or after it is disclosed to the Receiving Party or its Affiliates through no fault of the Receiving Party or any of its Affiliates; or 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 8.2.5    is independently discovered or developed by employees of
the Receiving Party or its Affiliates who had no access to, and without reference to, Confidential Information of the Disclosing Party. 

Specific aspects or details of Confidential Information shall not be deemed to be within the public domain or in the possession of the
Receiving Party merely because such Confidential Information is embraced by information in the public domain or in the possession of the Receiving Party. Further, no combination of Confidential Information shall be considered in the public domain or
in the possession of the Receiving Party merely because individual elements of such Confidential Information are in the public domain or in the possession of the Receiving Party unless the combination and its principles are in the public domain or
in the possession of the Receiving Party. 
 8.3    Authorized Disclosure. The Receiving Party may disclose
Confidential Information belonging to the Disclosing Party to the extent (and only to the extent) such disclosure is reasonably necessary in the following instances set forth in Sections 8.3.1 through 8.3.5 below: 

8.3.1    filing or prosecuting Patents; 

8.3.2    Regulatory Filings and obtaining Regulatory Approvals; 

8.3.3    prosecuting or defending litigation or arbitration, including without limitation responding to a subpoena
in a Third Party litigation or arbitration; 
 8.3.4    subject to Section 8.5
(Securities Filings), complying with Laws (including without limitation the rules and regulations of the Securities and Exchange Commission or any national securities exchange) and with judicial process, if in the reasonable
opinion of the Receiving Party’s counsel, such disclosure is necessary for such compliance; and 

8.3.5    disclosure, solely on a “need to know basis”, to [***], each of whom prior to disclosure
shall be bound by obligations of confidentiality and restrictions on use of such Confidential Information that are no less restrictive than the obligations in this Article 8 (Confidentiality); [***]. 

8.3.6    If and whenever any Confidential Information is disclosed in accordance with this
Section 8.3, such disclosure shall not cause any such information to cease to be Confidential Information except to the extent that exceptions set forth in Section 8.2 (Exceptions)
apply to such Confidential Information (otherwise than by breach of this Agreement). Where reasonably possible and subject to Section 8.5 (Securities Filings), the Receiving Party shall notify
the Disclosing Party of the Receiving Party’s intent to make such disclosure pursuant to this Section 8.3, other than Section 8.3.5 above, sufficiently prior to making such disclosure so as to
allow the Disclosing Party adequate time to take whatever action it may deem appropriate to protect the confidentiality of the Confidential Information. In this case, the Receiving Party may disclose only the Confidential Information of the
Disclosing Party that is advised by its counsel or is legally required to be disclosed and shall cooperate in the Disclosing Party’s action to protect the confidentiality of such Confidential Information. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 8.4    Terms of this
Agreement. The Parties acknowledge that this Agreement and all of the respective terms of this Agreement shall be treated as Confidential Information of both Parties. 

8.5    Securities Filings. In the event either Party proposes to file with the Securities and Exchange
Commission or the securities regulators of any state or other jurisdiction a registration statement or any other disclosure document which describes or refers to the terms and conditions of this Agreement under the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, as amended, or any other applicable securities Law, such Party shall notify the other Party of such intention and shall provide such other Party with a copy of relevant portions of the proposed filing
[***] Business Days (or such shorter time as practicable) prior to such filing, including without limitation any exhibits thereto relating to the terms and conditions of this Agreement. The Party making such filing shall use reasonable efforts to
obtain confidential treatment of the terms and conditions of this Agreement or any portion thereof that such other Party requests be kept confidential, and shall only disclose Confidential Information that it is advised by its counsel is legally
required to be disclosed. No such notice shall be required under this Section 8.5 if the description of or reference to this Agreement contained in the proposed filing has been included in any previous filing made by either Party hereunder or
otherwise approved by the other Party. 
 8.6    Relationship to Confidentiality
Agreement. This Agreement supersedes the Prior CDAs, provided that all “Confidential Information” disclosed or received by the Parties thereunder shall be deemed “Confidential Information” hereunder and shall be
subject to the terms and conditions of this Agreement. 
 8.7    Collaboration Information. The
Parties acknowledge and agree that (a) information specific to each Collaboration Candidate and Collaboration Product (and not otherwise applicable to any other products), including the sequences of CARs and the Antigen Binding Domains related
thereto, and (b) those specific activities conducted under the Joint Development Plan, in each case (a) and (b) shall be deemed Confidential Information of both Parties for which each Party will be deemed a Receiving Party. All other
information and Invention shall be deemed Confidential Information of the Party owning such information or Invention. 

8.8    Publications. 

8.8.1    Publication by a Party. Notwithstanding
Section 8.7 (Collaboration Information), either Party may publish or present data and/or results including those of any Clinical Trial relating to a Collaboration Candidate, Collaboration Product or the activities conducted under this Agreement
in journals and/or at conferences, subject to the prior review and comment by the other Party as set forth herein; provided that ONO shall not have the right to make any such publication or presentation with respect to a Collaboration Candidate
prior to exercise of the ONO Option with respect thereto. The publishing Party shall provide the non- publishing Party with the opportunity to review any such proposed abstract, manuscript or presentation by delivering a copy thereof to the non-publishing Party no less than [***] days ([***] days with respect to abstracts) before its intended submission for publication or presentation. The non-publishing
Party shall have [***] days ([***] days for abstracts) of its receipt of any such abstract, manuscript or presentation to comment, and the publishing Party shall consider in good faith such non-publishing
Party’s comments in such abstract, manuscript or 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
presentation. In the event the non-publishing Party objects to the disclosure in writing within the applicable review period, the publishing Party agrees
to delete from the proposed disclosure any of the non-publishing Party’s Confidential Information upon the reasonable request of the non-publishing Party. If the non-publishing Party identifies that any information in such proposed abstract, manuscript or presentation contains a patentable Invention, the Parties shall discuss in good faith filing a Patent application, which
filing will be subject to Article 7, and the publishing Party shall delay such submission for publication or presentation until the applicable Party completes such filing or the publishing Party may, subject to the non- publishing Party’s prior
written consent which shall not be unreasonably withheld, delayed or conditioned, submit such proposed abstract, manuscript or presentation for publication or presentation removing the information relating to such patentable Invention in a manner
which shall not negatively affect the patentability of such Invention. Once any such abstract, manuscript or presentation is accepted for publication, the publishing Party will provide the non- publishing Party with a copy of the final version of
the manuscript, presentation or abstract. The Parties acknowledge that publications relating to Collaboration Candidates submitted for publication by the publishing Party prior to the Effective Date shall not be subject to the above review
procedure. Either Party may issue copies of the other Party’s publication as it is and its full translation in other languages (e.g. Japanese) at the same time or following the initial publication. 

8.8.2    Publication of Clinical Trial Results.
In the case of the publication of Clinical Trial results, the Parties shall discuss and reasonably cooperate in order to facilitate the process to be employed in order to ensure the publication of any summaries of Clinical Trials data and
results as required under Laws on the Clinical Trial registry of each respective Party. 
 8.9    Publicity. Upon
execution of this Agreement, the Parties shall issue the press release announcing the existence of this Agreement in the form and substance as set forth in Exhibit 8.9 (Press Release) through a mutually agreed media and at a mutually agreed time.
Each Party agrees not to issue any other press release or other public statement disclosing the transactions contemplated hereby that contains information not previously publicly disclosed in accordance with this Section 8.9 (Publicity) without
the prior written consent of the other Party (not to be unreasonably withheld, delayed, or conditioned) unless otherwise permitted under this Article 8. Notwithstanding the foregoing, any disclosure that is required by Laws (including without
limitation the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended), or the rules of a securities exchange or the Securities and Exchange Commission or the securities regulations of any state or other
jurisdiction, as reasonably advised by the disclosing Party’s counsel, may be made; provided, however, that any such required disclosure may not contain the other Party’s confidential business or technical information, including without
limitation its Confidential Information, unless disclosure of such information (including Confidential Information) is required by Laws or such rules or regulations, in which event the Parties will use reasonable efforts to minimize such disclosure
and obtain confidential treatment for any such information that is disclosed to a governmental agency. Each Party agrees to provide to the other Party a copy of any public announcement regarding this Agreement or the subject matter thereof as soon
as reasonably practicable under the circumstances but no later than [***] Business Days (unless impracticable) prior to its scheduled release. Each Party shall have the right to expeditiously review and recommend changes to any such announcement
and, 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
except as otherwise required by Laws or such rules or regulations, the Party whose announcement has been reviewed shall remove any Confidential Information of the reviewing Party or disclosure of
any patentable Invention that the reviewing Party reasonably deems to be inappropriate for disclosure and consider in good faith the reviewing Party’s recommended changes subject to Section 8.3.4 (Authorized Disclosure). Nothing in this
Section 8.9 (Publicity) shall be construed to prohibit ONO, FATE or their respective Affiliates or Sublicensees from making a public announcement or disclosure to their respective actual or potential partners, investors, bankers, or acquirors
or a public announcement or disclosure regarding the stage of Development of Collaboration Candidates and Collaboration Products or Clinical Trial results with respect thereto as may be required by Laws or such rules or regulations, as reasonably
advised by ONO’s (or its Affiliates’ or Sublicensees’) or FATE’s (or its Affiliates’ or Sublicensees’) counsel. Notwithstanding the foregoing, either Party may publicly disclose information related to this Agreement or
the results of such Party’s activities performed under this Agreement that was previously disclosed in accordance with this Section 8.9 or as otherwise permitted under this Article 8 without obtaining the other Party’s consent. Either
Party may issue a full translation of a press release or public announcement to be issued by the other Party or the press release as it is issued by the other Party at the same time or subsequent to such initial disclosure by the other Party. 

ARTICLE 9 

REPRESENTATIONS, WARRANTIES, AND 

COVENANTS; DISCLAIMERS; LIMITATION OF LIABILITY 

9.1    Mutual Representations and Warranties. Each Party represents and warrants to the other Party as of the Effective Date that:

 9.1.1    such Party is duly organized, validly existing and in good standing under the Laws of the
jurisdiction of its incorporation and has full corporate power, ability and authority to enter into this Agreement and to carry out the provisions hereof; 

9.1.2    execution of this Agreement and the performance by such Party of its obligations hereunder have been duly
authorized; 
 9.1.3    this Agreement has been duly executed and delivered on behalf of such Party, the Person or
Persons executing this Agreement on its behalf have been duly authorized to do so by all requisite corporate action, and this Agreement constitutes a legal, valid, binding obligation, enforceable against it in accordance with the terms hereof; 

9.1.4    the execution, delivery and performance of this Agreement by such Party does not create a breach or default
under any other agreement to which it is a party or by which it is bound, nor violate any Law or regulation of any court, governmental body or administrative or other agency having jurisdiction over such Party; 

9.1.5    no government authorization, consent, approval, license, exemption of or filing or registration with any
court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, under any Laws currently in effect, is or will be necessary for, or in connection with, the transaction contemplated by this Agreement or
any other agreement or instrument executed in connection herewith, or for the performance by it of its obligations under this Agreement and such other agreements, except as may be required to obtain Competition Law clearance and except for
Regulatory Approvals including BLA Approvals obtained in accordance with this Agreement; 

 9.1.6    all of its directors, employees, officers have executed
agreements requiring assignment to such Party of all Inventions, whether or not patentable, made during the course of and as a result of their association with such Party and obligating each such directors, employee, officer to maintain as
confidential the Confidential Information of such Party; and 
 9.1.7    to the Knowledge of FATE or its
Affiliates in case of FATE, or to the Knowledge of ONO in case of ONO or its Affiliates, neither such Party or its Affiliates, nor any of their respective directors, employees, officers, consultants or Third Party contractors who have rendered
services relating to the Collaboration Candidates or Collaboration Products: (a) has ever been debarred or is subject or debarment or convicted of a crime for which an entity or person could be debarred by the FDA under 21 U.S.C.
Section 335a (or subject to a similar sanction of EMA or JMHW or equivalent in the Territory) or (b) has ever been under indictment for a crime for which a person or entity could be so debarred. 

9.2    Additional Representations and Warranties of FATE. FATE hereby represents and warrants to ONO, as of the Effective Date, that:

 9.2.1    FATE (or its Affiliates) Controls the FATE Patents set forth on Exhibit
1.48 (FATE Patents) and FATE Know-How and has the right to grant the licenses to ONO under the FATE Intellectual Property as set forth in
Section 5.1 (Licenses to ONO); 
 9.2.2    FATE has been granted a license or sublicense
with the rights to sublicense to ONO as set forth herein and for ONO to further sublicense to ONO’s Sublicensees in accordance with the terms of this Agreement under the FATE Patents identified on Exhibit 1.48
(FATE Patents) as owned by Third Parties under the Existing Agreement; 
 9.2.3    to the
Knowledge of FATE or its Affiliates as of the Effective Date, [***] 
 9.2.4    to the Knowledge of FATE or
its Affiliates, there is no pending litigation, and FATE and its Affiliates have not received any written notice from any Third Party, that alleges that the FATE Patents set forth on Exhibit 1.48 are invalid or unenforceable; to
the Knowledge of FATE or its Affiliates, all inventors in FATE Patents listed on Exhibit 1.48 hereto that are owned by FATE are correctly identified in compliance with Law in the various jurisdictions, including all convention
treaties, and such inventors have agreed to assign to FATE their entire rights, title and interest to and in inventions claimed in such FATE Patents and any intellectual property thereto, and no other Person has any claim of ownership or
inventorship whatsoever with respect to such FATE Patents; 
 9.2.5    to the Knowledge of FATE or its Affiliates,
there is no pending litigation, and FATE and its Affiliates have not received any written notice from any Third Party, that alleges that FATE’s activities with respect to Collaboration Candidates have infringed or misappropriated any
intellectual property rights or confidential information of any Third Party; 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 9.2.6    the FATE Patents are free and clear of any liens,
charges and encumbrances that would adversely affect the rights granted to ONO hereunder; 
 9.2.7    to the
Knowledge of FATE or its Affiliates, (a) [***] 
 9.2.8    all tangible information and data provided by or on
behalf of FATE or its Affiliates to ONO on or before the Effective Date [***]. 
 9.2.9    FATE or its Affiliates
have disclosed to ONO (a) [***] as of the Effective Date and (b) [***] as of the Effective Date, that in each case (a) and (b) [***]. 

9.2.10    FATE and its Affiliates have not received any written notice from or been investigated by, any court or
governmental body or administrative or other agency having jurisdiction over activities of FATE or its Affiliates, including Regulatory Authorities, claiming or suggesting that performance of its obligations hereunder or any other activities or
business operation of FATE or its Affiliates related to the Collaboration Candidates have violated or may violate any Law, including if applicable GLP, GMP or GCP; 

9.2.11    FATE and its Affiliates have conducted (and to the Knowledge of FATE or its Affiliates, each of their
respective Third Party contractors and consultants have conducted), the research and development of Collaboration Candidate prior to the Effective Date [***] in each case to the extent applicable as determined by FATE using reasonable discretion,
and applicable Law; 
 9.2.12    FATE and its Affiliates have taken all commercially reasonable steps to protect,
preserve and maintain the confidentiality of all confidential or non-public information included in FATE Know-How, including by disclosing such FATE Know-How to Third Parties only under appropriate terms of confidentiality and restrictions on use of such Confidential Information. To the Knowledge of FATE or its Affiliates, no material breach of such
confidentiality obligations has been committed by any Third Party; 
 9.2.13    Neither FATE nor its Affiliates,
nor any of its or their respective directors, officers, employees or agents has (a) committed an act, (b) made a statement or (c) failed to act or make statement, in any case ((a), (b) or (c)), that (x) would be or create an
untrue statement of material fact or fraudulent statement to the FDA or any other Regulatory Authority with respect to the Research, Development and manufacture of Collaboration Candidate 1 or (y) could reasonably be expected to provide a basis
for the FDA or any other Regulatory Authority to invoke its policy respecting “Fraud, Untrue Statements of Material Facts, Bribery and
Illegal Gratuities”, set forth in 56 Fed. Reg. 46191 (September 10, 1991) and any amendments thereto or any analogous laws or policies, with respect to the Research, Development and manufacture of Collaboration
Candidate 1; 
 9.2.14    FATE has provided ONO with a true and complete copy of each of the Existing Agreements
(except for redactions of terms not material to ONO’s rights thereunder), and each Existing Agreement is in full force and effect. No written notice of default or termination has been received or given under any Existing Agreement, and to the
Knowledge of FATE or its Affiliates, there is no act or omission by FATE, its Affiliates or Sublicensees (other than ONO) that would provide a right to terminate any Existing Agreement. Neither FATE nor any of its Affiliates has waived any material
right under any Existing Agreement; and 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 9.2.15    FATE and its Affiliates have not, as of the Effective
Date, granted any license to any Third Party under the FATE Intellectual Property, or entered into any agreement with any Third Party that would conflict or interfere with any of the rights or licenses granted to ONO hereunder. 

9.3    Additional Representations and Warranties of ONO. ONO hereby represents and warrants to FATE, as of the Effective Date, that:

 9.3.1    ONO (or its Affiliates) Controls the ONO Patents and ONO
Know-How and has the right to grant the licenses to FATE under the ONO Intellectual Property as set forth in Section 5.1 (Licenses to ONO); 

9.3.2    to the Knowledge of ONO or its Affiliates as of the Effective Date, [***]; 

9.3.3    to the Knowledge of ONO or its Affiliates, there is no pending litigation, and ONO or its Affiliates have
not received any written notice from any Third Party, that alleges that the ONO Patents are invalid or unenforceable; to the Knowledge of ONO or its Affiliates, all inventors in ONO Patents that are owned by ONO are correctly identified in
compliance with Law in the various jurisdictions, including all convention treaties, and all (i) inventors of the ONO Patents owned solely by ONO and (ii) inventors of the ONO Patents owned jointly by ONO that are employees of ONO, in each
case (i) and (ii) have agreed to assign to ONO their entire rights, title and interest to and in inventions claimed in such ONO Patents and any intellectual property thereto, and no other Person has any claim of ownership or inventorship
whatsoever with respect to such ONO Patents; 
 9.3.4    to the Knowledge of ONO or its Affiliates, there is no
pending litigation, and ONO and its Affiliates have not received any written notice from any Third Party, that alleges that ONO’s activities with respect to [***] or any Antigen Binding Domains that bind such target antigens have infringed or
misappropriated any intellectual property rights or confidential information of any Third Party; 
 9.3.5    the
ONO Patents are free and clear of any liens, charges and encumbrances that would adversely affect the rights granted to FATE hereunder; 

9.3.6    to the Knowledge of ONO or its Affiliates, [***] 

9.3.7    all tangible information and data provided by or on behalf of ONO or its Affiliates to FATE on or before
the Effective Date are [***]; 
 9.3.8    ONO or its Affiliates have disclosed to FATE [***] as of the
Effective Date [***] 
 9.3.9    ONO and its Affiliates have not received any written notice from or been
investigated by, any court or governmental body or administrative or other agency having jurisdiction over activities of ONO or its Affiliates, including Regulatory Authorities, claiming or suggesting that performance of its obligations hereunder or
any other activities or business operation of ONO or its Affiliates [***] have violated or may violate any Law, including if applicable GLP, GMP or GCP; 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 9.3.10    ONO and its Affiliates have conducted (and to the
Knowledge of ONO or its Affiliates, each of their respective Third Party contractors and consultants have conducted), the research and development of Antigen Binding Domains that bind [***] prior to the Effective Date [***] 

9.3.11    ONO and its Affiliates have taken all commercially reasonable steps to protect, preserve and maintain the
confidentiality of all confidential or non-public information included in ONO Know-How, including by disclosing such ONO Know-How
to Third Parties only under appropriate terms of confidentiality and restrictions on use of such Confidential Information. To the Knowledge of ONO or its Affiliates, no material breach of such confidentiality obligations has been committed by any
Third Party; 
 9.3.12    Neither ONO nor its Affiliates, nor any of its or their respective directors, officers,
employees or agents has (a) committed an act, (b) made a statement or (c) failed to act or make statement, in any case ((a), (b) or (c)), that (x) would be or create an untrue statement of material fact or fraudulent statement to
the FDA or any other Regulatory Authority with respect to the Research, Development and manufacture of Antigen Binding Domains [***] or (y) could reasonably be expected to provide a basis for the FDA or any other Regulatory Authority to invoke
its policy respecting “Fraud, Untrue Statements of Material Facts, Bribery and Illegal Gratuities”, set forth in 56 Fed. Reg. 46191 (September 10, 1991) and any amendments thereto or any analogous laws or policies, with respect to the
Research, Development and manufacture of Antigen Binding Domains [***]; and 
 9.3.13    ONO and its Affiliates
have not, as of the Effective Date, granted any license to any Third Party under the ONO Intellectual Property, or entered into any agreement with any Third Party that would conflict or interfere with any of the rights or licenses granted to FATE
hereunder. 
 9.4    Mutual Covenants. Each Party hereby covenants to the other Party that during the Term: 

9.4.1    all directors, officers, and employees of such Party or its Affiliates working under this Agreement shall
be under the obligation to assign all right, title and interest in and to their inventions and discoveries, whether or not patentable, if any, to such Party as the sole owner thereof; 

9.4.2    such Party shall perform its activities pursuant to this Agreement and generate, prepare, maintain and
retain all data, regulatory documentation that is required to be generated, maintained or retained in compliance with GLP, GCP, and GMP, in each case as applicable under the Laws and regulations of the country and the state and local government
wherein such activities are conducted, as determined by such Party using reasonable discretion, and with respect to the care, handling and use in Research and Development activities hereunder of any non-human
animals by or on behalf of such Party, shall at all times comply (and shall require compliance by any of its Third Party contractors) with all Laws, and also with the standards in the pharmaceutical industry for the research, development and
commercialization of pharmaceutical products; 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 9.4.3    such Party shall not employ (and, to the Knowledge of it
or its Affiliates, shall not use any contractor or consultant that employs) any Person debarred by the FDA (or subject to a similar sanction of EMA or JMHW or equivalent in the Territory), or, to the Knowledge of it or its Affiliates, any Person who
is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMA or JMHW or equivalent in the Territory), in the conduct of its activities under this Agreement. Each Party agrees to inform the other Party in writing
immediately if it or any individual or entity that is performing activities under this Agreement is debarred by the FDA (or subject to a similar sanction of EMA or JMHW or equivalent in the Territory) or is the subject of an FDA debarment
investigation or proceeding (or similar proceeding of EMA or JMHW or equivalent in the Territory); 

9.4.4    such Party shall not (a) enter into any agreement, instrument or understanding, oral or written, with
any Third Party or (b) grant any license to any Third Party relating to any of the intellectual property rights it Controls, in each case (a) or (b) which would conflict or interfere with any of the rights or licenses granted to the other
Party hereunder; 
 9.4.5    such Party shall ensure that the FATE Intellectual Property as to FATE or ONO
Intellectual Property as to ONO, as the case may be, will be free and clear of liens, charges or encumbrances other than (a) licenses granted to or by Third Parties that are not inconsistent with the rights and licenses granted to the other
Party hereunder or (b) any other liens, charges or encumbrances that do not affect the other Party’s rights hereunder; and 

9.4.6    FATE shall not take any action or fail to take any action that would be reasonably likely to result in a
breach of any Existing Agreement or any other agreement under which FATE receives a license for FATE Intellectual Property and ONO shall not take any action or fail to take any action that would be reasonably likely to result in a breach of any
agreement under which ONO receives a license for ONO Intellectual Property. In case a Party receives from the counter party of such Existing Agreement or any other agreement, as applicable, any notice of alleged breach thereof, such Party shall
immediately so notify the other Party in writing. In this case, [***]. 
 9.5    DISCLAIMERS. 

9.5.1    EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, FATE MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND,
EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY FATE CONFIDENTIAL INFORMATION OR ANY LICENSE GRANTED BY FATE UNDER ITS INTELLECTUAL
PROPERTY RIGHTS HEREUNDER, OR WITH RESPECT TO ANY ANTIGEN BINDING DOMAIN, COLLABORATION CANDIDATES OR COLLABORATION PRODUCTS. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY THAT USE OF THE FATE CONFIDENTIAL INFORMATION,
OR ANY LICENSE GRANTED BY FATE 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
UNDER ITS INTELLECTUAL PROPERTY RIGHTS, HEREUNDER DOES NOT INFRINGE ANY PATENT OR OTHER INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY, OR THAT ANY PATENT OR OTHER PROPRIETARY RIGHTS INCLUDED IN
THE FATE PATENTS ARE VALID OR ENFORCEABLE. 
 9.5.2    EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, ONO MAKES
NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY ONO CONFIDENTIAL INFORMATION OR ANY
LICENSE GRANTED BY ONO UNDER ITS INTELLECTUAL PROPERTY RIGHTS HEREUNDER, OR WITH RESPECT TO ANY ANTIGEN BINDING DOMAIN, COLLABORATION CANDIDATES OR COLLABORATION PRODUCTS. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY
THAT USE OF THE ONO CONFIDENTIAL INFORMATION, OR ANY LICENSE GRANTED BY ONO UNDER ITS INTELLECTUAL PROPERTY RIGHTS, HEREUNDER DOES NOT INFRINGE ANY PATENT OR OTHER INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY, OR THAT ANY PATENT OR OTHER
PROPRIETARY RIGHTS INCLUDED IN THE ONO PATENTS ARE VALID OR ENFORCEABLE. 
 9.6    LIMITATION OF
LIABILITY. EXCEPT FOR A BREACH OF ARTICLE 8 (CONFIDENTIALITY) OR SECTION 5.9 (NON-COMPETE) OR FOR CLAIMS OF A THIRD PARTY THAT ARE SUBJECT TO INDEMNIFICATION UNDER ARTICLE 10
(INDEMNITY AND INSURANCE) OR FOR DAMAGES RESULTING FROM WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, NEITHER PARTY SHALL BE LIABLE TO THE OTHER WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT, WHETHER UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY
OR OTHER LEGAL OR EQUITABLE THEORY, FOR ANY INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE, MULTIPLE, OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT LIMITATION LOST PROFITS, LOSS OF USE, DAMAGE TO GOODWILL, LOSS OF OPPORTUNITIES, OR LOSS OF
BUSINESS). 
 ARTICLE 10 

INDEMNITY AND INSURANCE 

10.1    ONO Indemnity. ONO shall indemnify, defend and hold harmless FATE and its Affiliates, and their
respective officers, directors, employees, agents, Sublicensees, and their respective successors, heirs and assigns and representatives, (the “FATE Indemnitees”), from and against any and all claims, threatened claims, damages, losses,
suits, proceedings, liabilities, costs (including without limitation reasonable legal expenses, costs of litigation and reasonable attorney’s fees) or judgments, whether for money or equitable relief, of any kind brought by a Third Party
(“Losses and Claims”), to the extent arising out of or relating to, directly or indirectly: (a) the negligence, recklessness or wrongful intentional acts or omissions of ONO, its Affiliates, and/or its Sublicensees and its or their
respective directors, officers, employees and agents, in connection with ONO’s performance of its obligations or exercise of its rights under this Agreement; (b) any breach by ONO of any representation, warranty, or covenant set forth in
Article 9 (Representations, Warranties, and Covenants; Disclaimers; Limitation of Liability); (c) (x) [***] (ii) the failure to comply with Laws; except in any such case for Losses and Claims to the extent reasonably attributable to any of the
clause (a), (b) or (c) of Section 10.2 (FATE Indemnity). 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 10.2    FATE Indemnity. FATE shall indemnify, defend and hold harmless ONO
and its Affiliates, and their respective officers, directors, employees, agents, Sublicensees, and their respective successors, heirs and assigns and representatives (the “ONO Indemnitees”), from and against any and all Losses and Claims,
to the extent arising out of or relating to, directly or indirectly: (a) the negligence, recklessness or wrongful intentional acts or omissions of FATE, its Affiliates, and/or its Sublicensees and its or their respective directors, officers,
employees and agents, in connection with FATE’s performance of its obligations or exercise of its rights under this Agreement; (b) any breach by FATE of any representation, warranty, or covenant set forth in Article 9 (Representations,
Warranties, and Covenants; Disclaimers; Limitation of Liability); (c) [***] (ii) the failure to comply with Laws; except in any such case for Losses and Claims to the extent reasonably attributable to any of the clause (a), (b) or (c) of
Section 10.1 (ONO Indemnity). 
 10.3    Indemnification Procedure. A claim to which
indemnification applies under Section 10.1 (ONO Indemnity) or Section 10.2 (FATE Indemnity) shall be referred to herein as an “Indemnification Claim”. If any Person or Persons (collectively, the “Indemnitee”) intends to
claim indemnification under this Article 10 (Indemnity and Insurance), the Indemnitee shall notify the other Party (the “Indemnitor”) in writing promptly upon becoming aware of any claim that may be an Indemnification Claim (it being
understood and agreed, however, that the failure by an Indemnitee to give such notice shall not relieve the Indemnitor of its indemnification obligation under this Agreement except and only to the extent that the Indemnitor is actually prejudiced as
a result of such failure to give notice). The Indemnitor shall have the right to assume and control the defense of the Indemnification Claim at its own expense with counsel selected by the Indemnitor and reasonably acceptable to the Indemnitee;
provided, however, that an Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitor, if representation of such Indemnitee by the counsel retained by the Indemnitor would be inappropriate due
to actual or potential differing interests between such Indemnitee and any other party represented by such counsel in such proceedings. If the Indemnitor does not assume the defense of the Indemnification Claim as described in this Section 10.3
(Indemnification Procedure), above, the Indemnitee may defend the Indemnification Claim at Indemnitor’s expense (subject to Sections 10.1 (ONO Indemnity) and 10.2 (FATE Indemnity)) but shall have no obligation to do so. Neither the Indemnitor
nor the Indemnitee shall admit fault on behalf of the other Party without the written consent of such other Party. The Indemnitee shall not settle or compromise the Indemnification Claim without the prior written consent of the Indemnitor, and the
Indemnitor shall not settle or compromise the Indemnification Claim in any manner which would have an adverse effect on the Indemnitee’s interests (including without limitation any rights under this Agreement or the scope, exclusivity, duration
or enforceability of the intellectual property or Confidential Information or Patent or other rights granted or licensed to the Indemnitee hereunder), without the prior written consent of the Indemnitee, which consent, in each case, shall not be
unreasonably withheld, delayed or conditioned. The Indemnitee shall reasonably cooperate with the Indemnitor at the Indemnitor’s expense and shall make available to the Indemnitor all pertinent information under the control of the Indemnitee,
which information shall be subject to Article 8 (Confidentiality), and cause its employees to be available in a deposition, hearing or trial. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 10.4    Mitigation of Losses. The Indemnitee shall take all commercially
reasonable steps to mitigate and otherwise reduce their Losses and Claims subject to indemnification by the other Party. 

10.5    FATE CDCC Territory. Notwithstanding the foregoing, during the CDCC Term, the
Parties shall [***] all damages, losses, liabilities, costs (including without limitation reasonable legal expenses, costs of litigation and reasonable attorney’s fees) and judgments arising out of Third Party claims, suits and proceedings, to
the extent arising out of or relating to, directly or indirectly, [***] by or for either Party or any of their respective Affiliates, Sublicensees, agents and contractors; except in any such case for Losses and Claims to the extent covered
under Section 10.1 (ONO Indemnity) or Section 10.2 (FATE Indemnity), where the applicable indemnification obligations shall continue to apply. With respect to the damages, losses, liabilities, costs (including without limitation reasonable
legal expenses, costs of litigation and reasonable attorney’s fees) and judgments arising out of Third Party claims, suits and proceedings, [***] Section 10.1 (ONO Indemnity) or Section 10.2 (FATE Indemnity) shall apply. 

10.6    Insurance. 

10.6.1    By ONO. ONO shall acquire and maintain, at its own expense, insurance or self-
insurance, as reasonably necessary to cover its own product liability and its obligations under this Agreement. Within [***] days following written request from FATE, ONO shall furnish to FATE a certificate of insurance evidencing such coverage.

 10.6.2    By FATE. FATE shall, beginning on the Effective Date, maintain at all times
thereafter during the Term, and for [***] after termination or expiration of this Agreement, commercial general liability insurance from a recognized, creditworthy insurance company, on an “occurrence basis” which includes contractual
liability coverage; and upon initiation of the first Clinical Trial of a Collaboration Product, product liability insurance, on a “claims-made basis” with coverage limits of at least [***] Dollars ($[***]) per claim and annual aggregate,
where such coverage limits shall be increased to at least [***] Dollars ($[***]) before FATE initiates the First Commercial Sale of any Collaboration Product. Within [***] days following written request from ONO, FATE shall furnish to ONO a
certificate of insurance evidencing such coverage. In the case of a material modification or cancellation of such coverage, FATE shall promptly provide ONO with a new certificate of insurance evidencing that FATE’s coverage meets the
requirements of this Section 10.6.2. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 ARTICLE 11 

TERM AND TERMINATION 

11.1    Term; Expiration. This Agreement shall become effective as of the Effective Date and shall
continue in full force and effect until expiration as described in this Section 11.1 (Term; Expiration), unless earlier terminated pursuant to Section 11.2 (Termination for Cause), Section 11.3 (ONO Unilateral Termination Rights),
Section 11.4 (Termination for Insolvency), Section 11.4 (Termination for Insolvency), or Section 11.5 (Termination for Patent Challenge) (the “Term”), and shall expire as follows: 

11.1.1    on a Collaboration
Product-by-Collaboration Product and country-by-country basis, on the date of expiration
of all royalty payment obligations of the applicable Party(ies) under this Agreement with respect to each Collaboration Product in each country, as applicable (which, for clarity, will continue for [***] in any country in the [***] Territory for so
long as such product is being sold in such country during the CDCC Term for such country); or 
 11.1.2    in its
entirety upon the expiration of all payment obligations under this Agreement with respect to all Collaboration Products in all countries in the Territory. 

Upon the expiration of this Agreement pursuant to this Section 11.1 on a Collaboration Product-
by-Collaboration Product and country-by-country basis, the licenses granted by FATE to ONO under
Section 5.1.2 (Licenses upon Exercise of ONO Option [***]) or Section 5.1.3 (Licenses upon Exercise of ONO Option [***]), as applicable, shall become fully paid-up, irrevocable and perpetual, and ONO may continue to Research, Develop and Commercialize the relevant Collaboration Product without owing any milestone or royalty payment to FATE. 

11.2    Termination for Cause. 

11.2.1    Material Breach. Either Party (the
“Non-breaching Party”) may, without prejudice to any other remedies available to it at law or in equity, terminate this Agreement in its entirety, or terminate this Agreement as to any specific one
or more Collaboration Candidates or Collaboration Products that are affected by a material breach, as it shall determine in its sole discretion, in the event the other Party (the “Breaching Party”) has materially breached this Agreement,
and such breach has continued for [***] days (the “Cure Period”) after written notice thereof is provided to the Breaching Party by the Non-breaching Party describing the alleged material breach in
sufficient detail to put the Breaching Party on notice. Notwithstanding the foregoing, the Cure Period in connection with a material breach of Article 6 (Financial Terms) shall be [***] days. Any termination by the
Non-breaching Party as to any specific Collaboration Candidates or Collaboration Products that are affected by a material breach pursuant to this Section 11.2.1 shall not affect the Breaching Party’s
rights to be exercised and obligations to be performed under this Agreement as to Collaboration Candidates and Collaboration Products other than such terminated Collaboration Candidates or Collaboration Products. 

11.2.2    Cure Period. Any termination of this Agreement under this Section 11.2
shall become effective at the end of the Cure Period, unless the Breaching Party has cured any such breach or default prior to the expiration of such Cure Period, or, if such breach is not susceptible to cure within the Cure Period, then, the Non-breaching Party’s right to termination shall be suspended only if and for so long as the Breaching Party has provided to the Non-breaching Party a written plan that
is reasonably calculated to effect a cure and such plan is acceptable to the Non-breaching Party, and the Breaching Party commits to and does carry out such plan as provided to the Non-breaching Party. The right of either Party to terminate this Agreement, or as to all Collaboration Candidates or Collaboration Products to which such material breach relates, as provided for in this
Section 11.2, shall not be affected in any way by such Party’s waiver or failure to take action with respect to any previous default. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 11.2.3    Disagreement as to Material Breach. If the
Parties reasonably and in good faith disagree as to whether there has been a material breach, the Party that disputes that there has been a material breach may contest the allegation in accordance with Section 12.3 (Arbitration). It is
understood and acknowledged that, during the pendency of such a dispute, all of the terms and conditions of this Agreement shall remain in effect, and the Parties shall continue to perform all of their respective obligations under this Agreement.
Any payments that are made by one Party to the other Party pursuant to this Agreement pending resolution of the dispute shall be promptly refunded if the arbitrator determines pursuant to Section 12.3 (Arbitration) that such payments are to be
refunded by one Party to the other Party. 
 11.3    ONO Unilateral Termination Rights. This Agreement may be terminated
as follows: 
 11.3.1    ONO may, in its sole discretion, terminate this Agreement on a Collaboration Candidate-by-Collaboration Candidate basis at any time after the first two (2) years of the Research Term, upon ninety (90) days written notice to FATE; 

11.3.2    ONO may, in its sole discretion, terminate this Agreement on a Collaboration Product-by-Collaboration Product basis or on a country-by-country basis (provided that ONO
shall not have the right to terminate this Agreement for certain countries under the jurisdiction of EMA without terminating this Agreement with respect to all countries under the jurisdiction of EMA), at any time after the end of the Research Term,
for any reason or no reason at all, upon (a) ninety (90) days written notice to FATE if such notice is delivered prior to First Commercial Sale of such Collaboration Product and (b) one hundred eighty (180) days if such notice is
delivered thereafter. 
 11.3.3     This Agreement will terminate on a Collaboration Candidate-by-Collaboration Candidate basis, if ONO does not exercise its ONO Option with respect to a specific Collaboration Candidate within the relevant ONO Option Period
therefor, upon the expiration of such ONO Option Period; 
 11.3.4    This Agreement will terminate in its
entirety if ONO does not exercise any of its ONO Options within the respective ONO Option Periods therefor, upon the last to expire ONO Option Period; or 

11.3.5    This Agreement will terminate with respect to Collaboration Candidate 2 and Collaboration Product 2 if (a)
[***] (or the end of any extended period that is mutually agreed by the Parties); (b) the Parties [***] pursuant to [***]; and (c) [***]. 

11.4    Termination for Insolvency. Either Party may terminate this Agreement, if, at any
time, the other Party files in any court or agency pursuant to any statute or regulation of any state or country, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of
the Party or of substantially all of its assets, or if the other Party is served with an involuntary petition against it, filed in any insolvency proceeding, and such other Party consents to the involuntary bankruptcy or such petition is not
dismissed within [***] days after the filing thereof, or if the other Party shall propose or be a party to any 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
dissolution or liquidation, or if the other Party shall make an assignment of substantially all of its assets for the benefit of creditors. All rights and licenses granted under or pursuant to
any Section of this Agreement are and shall otherwise be deemed to be for purposes of Section 365(n) of Title 11, United States Code or any foreign equivalent thereof (the “Bankruptcy Code”) licenses of rights to “intellectual
property” as defined in Section 101 (56) of the Bankruptcy Code. The Parties shall retain and may fully exercise all of their respective rights, licenses and elections granted herein under the Bankruptcy Code. Upon the bankruptcy of any
Party, the non-bankrupt Party shall further be entitled to a complete duplicate of, or complete access to, any such intellectual property, and such, if not already in its possession, shall be promptly
delivered to the non-bankrupt Party, unless the bankrupt Party elects to continue, and continues, to perform all of its obligations under this Agreement. 

11.5    Termination for Patent Challenge. Either Party Controlling (other
than as a result of a license granted under this Agreement) any Patent included in the FATE Patents or the ONO Patents, as the case may be (the “Owning Party”) shall have the right to terminate this Agreement immediately upon written
notice if the other Party (the “Licensed Party”) challenges the validity, scope or enforceability of or otherwise opposes any Patent included in the FATE Patents or the ONO Patents, as the case may be, Controlled by the Owning Party, or if
the Licensed Party assists a Third Party in any manner in any such challenge or opposition with respect to a Patent included in the FATE Patents or the ONO Patents, as the case may be, Controlled by the Owning Party. The Licensed Party shall include
provisions in all Sublicenses providing that if the Sublicensee challenges the validity or enforceability of or otherwise opposes any such Patent under which the Sublicensee is sublicensed, the Licensed Party may terminate its Sublicense agreement
with such Sublicensee immediately upon written notice, and the Licensed Party shall exercise such termination right promptly upon written request from the Owning Party. 

11.6    Consequences of Termination. All of the following effects of termination are in
addition to the other rights and remedies that may be available to the Parties at law or in equity. If this Agreement is terminated with respect to one or more Collaboration Candidates or Collaboration Products but not in its entirety, such effects
will apply only to the terminated Collaboration Candidates or Collaboration Products. 
 11.6.1    Consequences
of Termination by ONO without Cause or by FATE. In the event of (i) termination of this Agreement pursuant to either Section 11.2 (Termination for Cause), Section 11.4 (Termination for Insolvency), or Section 11.5
(Termination for Patent Challenge): 
 (a)    (i) Subject to Section 11.6.1(e), upon ONO
providing, or receiving from FATE, as applicable, termination notice, ONO shall responsibly wind-down any on-going Research, Development or Commercialization of terminated Collaboration Candidates or
Collaboration Products at its sole cost, (ii) notwithstanding anything contained in this Agreement to the contrary, upon termination of this Agreement, all rights (including without limitation all ONO Options) and licenses granted herein to ONO
with respect to Collaboration Candidates and Collaboration Products (if ONO has exercised any ONO Options) for which this Agreement is terminated shall terminate, and ONO shall immediately cease any and all Research, Development, and
Commercialization activities with respect to the terminated Collaboration Candidates and Collaboration Products, subject to sub-section (d) and (e) below; 

 (b)    all payment obligations hereunder with respect to the
terminated Collaboration Candidates and Collaboration Products shall terminate, other than those that are accrued and unpaid as of the effective date of such termination; 

(c)    the terminated Collaboration Candidates and Collaboration Products shall be deemed to be FATE Cell Therapies,
and FATE shall have the right, in its sole discretion, to research, develop and commercialize the applicable FATE Cell Therapies, alone or with or through any Affiliate or Third Party; 

(d)    the license set forth in Section 5.3.1 (Enabling
License) shall survive with respect to the terminated Collaboration Candidates and Collaboration Products and become perpetual. In addition, ONO hereby grants to FATE, effective upon such termination, a non- exclusive, non-transferable (except as provided in Section 13.4 (Assignment)), perpetual license (or sublicense, as applicable) in the terminated Territory, with the right to grant
sublicenses through multiple tiers, under the ONO Intellectual Property [***] solely to research, make, have made, use, sell, offer to sell, promote, distribute, import, export, label, package and otherwise develop and commercialize such FATE Cell
Therapy, including through the use of Third Party contractors. Such license shall be royalty-bearing as and to the extent provided in sub-section (j) below; 

(e)    if ONO is conducting a Clinical Trial of any terminated Collaboration Product at the effective date of
termination, then at FATE’s discretion but under consultation with ONO, ONO will either: (i) Complete such Clinical Trial, at ONO’s sole cost and expense, or (ii) facilitate the transfer to FATE of all filings, information,
Materials and Third Party agreements necessary to enable FATE to take over such Clinical Trial, and reimburse FATE for all costs incurred to Complete such Clinical Trial in accordance with the budget in the Joint Development Plan, provided, that ONO
will continue to perform such Clinical Trial, at ONO’s sole cost and expense, until such transfer completes; in each case of (i) and (ii) with a representative of FATE participating in all discussions with the FDA or foreign equivalent, or
the relevant Institutional Review Board or Ethics Committee, with respect to such Clinical Trial, provided further that ONO shall not be obligated to conduct such Clinical Trial if material safety issues were present in, or are presented by
continuing, such Clinical Trial or the relevant Investigator’s Institutional Review Board recommends early termination of such Clinical Trial; 

(f)    ONO shall promptly (i) transfer to FATE, at FATE’s request and at no cost to FATE, any and all Know-How pertaining to the applicable FATE Cell Therapy in its possession that is necessary or useful for FATE’s research, development or commercialization of the applicable FATE Cell Therapy in the ONO
Territory (including the FATE CDCC Territory), including copies of all Clinical Trial data and results, (ii) assign to FATE all agreements with Third Parties relating solely and exclusively to the Development, promotion, distribution, sale or
use of such FATE Cell Therapy, to the extent permitted under such agreements, subject to any required consents of such Third Party, and (iii) [***] provide FATE with the benefit of such agreements. In addition, ONO shall have the right to transfer
to FATE Materials, Collaboration Candidates and Collaboration Products in its possession at the price [***]; 

(g)    ONO shall otherwise cooperate with FATE to provide a smooth transfer of the
Know-How, data, information, and Materials necessary or useful for FATE’s research, 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
development or commercialization of the applicable FATE Cell Therapy in the ONO Territory (including the FATE CDCC Territory), such transfer to be completed within [***] days after such
termination becomes effective, and shall promptly, at FATE’s election, return to FATE or destroy, and provide written certification of such destruction, all data and Materials transferred by FATE to ONO under this Agreement with respect to the
terminated Collaboration Candidates and Collaboration Products; 
 (h)    ONO shall assign to all FATE rights in
and to any and all trademarks that ONO has used, or registered for use for the applicable FATE Cell Therapy that is the subject of termination pursuant to this Section 11.6.2 in the terminated country in the ONO
Territory (including the FATE CDCC Territory) (but not any ONO house marks or any trademark containing the word “ONO” owned by ONO); 

(i)    ONO shall promptly assign to FATE any and all Regulatory Filings and Marketing Approvals related to the
applicable FATE Cell Therapy that is the subject of termination pursuant to this Section 11.6.2 in the terminated country in the ONO Territory (including the FATE CDCC Territory) that are held or controlled by or
under authority of ONO or its Affiliates or Sublicensees as of the effective date of termination, and shall take such actions and execute such other instruments, assignments and documents as may be necessary to effect the transfer of rights under
such Regulatory Filings and Marketing Approvals to FATE. ONO shall cause each of its Sublicensees to transfer any such Regulatory Filings and Marketing Approvals to FATE. If applicable Law prevents or delays the transfer of ownership of any
Regulatory Filing or Marketing Approvals to FATE, ONO shall grant, and does hereby grant, to FATE an exclusive and irrevocable right of access and reference to such Regulatory Filing and Marketing Approvals for the applicable FATE Cell Therapy, and
shall cooperate fully to make the benefits of such Regulatory Filings and Marketing Approvals available to FATE or its designee(s). Within [***] days after the effective date of termination, ONO shall provide to FATE copies of all such Regulatory
Filings and Marketing Approvals. FATE shall be free to use and disclose such Regulatory Filings, Marketing Approvals and data therein solely in connection with the exercise of its rights and licenses under this Agreement; 

(j)    in consideration for the rights granted to FATE with respect to the applicable FATE Cell Therapy pursuant to
this Section 11.6.1, FATE shall pay to ONO milestones on the achievement of the applicable development event or royalties on Net Sales of FATE Cell Therapy as follows, and any applicable definitions from Article
1 and Article 6, shall apply to such payments, mutatis mutandis: 

(i)    for FATE Cell Therapy containing [***] 

(ii)    for FATE Cell Therapy containing [***] 

(iii)    for FATE Cell Therapy containing [***] 

(iv)    for FATE Cell Therapy containing [***] 

(v)    for FATE Cell Therapy containing [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (vi)    Upon the expiration of all such payment obligations on a
Fate Cell Therapy-by-Fate Cell Therapy and country-by-country basis, the licenses granted
by ONO to FATE under Section 5.3.2(a) (License for Collaboration Candidates and Products) shall be fully paid-up, perpetual and irrevocable for the applicable FATE Cell Therapy
in the applicable country, and FATE may continue to research, develop or commercialize the relevant FATE Cell Therapy in such country without owing any milestone or royalty payment to ONO; 

(k)    within [***] days after the effective date of termination of this Agreement, ONO shall destroy all
Confidential Information of FATE that are in ONO’s or its Affiliates’ possession, and provide written certification of such destruction, or prepare such tangible items of Confidential Information for shipment to FATE, as FATE may direct,
at FATE’s expense; provided that ONO may retain one (1) copy of such Confidential Information for its legal archives; and 

(l)    if this Agreement is terminated by FATE pursuant to Section 11.2
(Termination for Cause) or Section 11.5 (Termination for Patent Challenge), then notwithstanding anything to the contrary
herein, ONO’s obligations under [***]. 
 11.6.2    [***]. In the event of termination
of this Agreement [***]: 
 (a)    ONO shall elect, in its termination notice to FATE, either (i) [***] or
(ii) for the following effects of termination to apply: 
 (b)    all licenses granted to ONO with respect to
any terminated Collaboration Product for which ONO previously exercised its ONO Option in accordance with Section 2.4.3 (Option Exercise) shall continue in full force in accordance with the terms
and conditions of this Agreement, and such terminated Collaboration Product will not become a FATE Cell Therapy; 

(c)    if this Agreement is terminated by ONO pursuant to Section 11.2
(Termination for Cause) for FATE’s uncured material breach (other than breach of Article 3 (Manufacturing and Supply), the consequences
of which will be set forth in the Supply Agreements) during the Research Term with respect to a Collaboration Candidate, and ONO elects Section 11.6.2(a)(ii), then (i) [***] and (ii) [***] 

(d)    if this Agreement is terminated by ONO pursuant to Section 11.2
(Termination for Cause) for FATE’s uncured material breach (other than breach of Article 3 (Manufacturing and Supply), the consequences
of which will be set forth in the Supply Agreements) with respect to a Collaboration Product subsequent to the Exercise Date of such Collaboration Product, and ONO elects Section 11.6.2(a)(ii), then [***] 

(e)    all ONO Options that are pending as of the effective date of such termination by ONO shall continue under
their terms in Section 2.4.1 (Exclusive Option Right), ONO shall have the right to exercise any ONO Options that are so pending, and at ONO’s request, FATE shall continue to
conduct the Research and Development activities allocated to FATE under the Joint Development Plan during the Research Term, [***]. If ONO exercises any such ONO Option, all licenses to be granted to ONO with respect to a Collaboration Candidate and
the relevant Collaboration Product for which ONO exercises its ONO Option under Section 2.4.3 (Option Exercise) shall continue in full force, subject to the terms and conditions of this Agreement including Sections
11.6.2(c) and (d) above, and FATE shall continue to manufacture such Collaboration Candidate and Collaboration Product under the Supply Agreements; 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 (f)    FATE shall promptly return to ONO all data and Materials
transferred by ONO to FATE under this Agreement with respect to the terminated Collaboration Candidates and Collaboration Products, except for any data and Materials to which FATE retains a license pursuant to
sub-section (h) below; 
 (g)    Article 3
(Manufacture and Supply), Article 6 (Financial Terms) and Article 7 (Intellectual
Property) shall survive unless otherwise expressly provided in this Agreement; 
 (h)    if the
termination is with respect to [***] or [***], or the Agreement in its entirety, then the CDCC Term shall terminate, and FATE shall immediately cease any and all clinical Development and Commercialization activities with respect to [***] and [***]
in the [***] Territory. FATE will continue to manufacture such [***] and [***] under the Supply Agreements, and shall conduct all activities necessary to transfer all responsibilities of FATE with respect to the Development and Commercialization
(but not manufacture) of terminated [***] to ONO, which may include assigning Regulatory Filings and Third Party contracts from FATE to ONO, [***] 

(i)    this Agreement is terminated by ONO pursuant to Section 11.2
(Termination for Cause) or Section 11.5 (Termination for Patent Challenge), then notwithstanding anything to the contrary
herein, FATE’s obligations under [***]; and 
 (j)    FATE shall assign to ONO rights in and to any and all
trademarks that FATE has used, or registered for use for the Collaboration Product that is the subject of termination pursuant to this Section 11.6.2 in the terminated country (but not any FATE house marks or any
trademark containing the word “FATE” owned by FATE). 
 11.7    Public Disclosure
of Termination. In the event of termination of this Agreement for any reason, the Parties shall cooperate in good faith to coordinate public disclosure of such termination and the reasons therefor, and shall not,
except to the extent required by applicable Law or the rules of a recognized stock exchange, disclose such information without the prior approval of the other Party, such approval not to be unreasonably withheld, conditioned or delayed. To the
extent possible under the situation, the Party desiring to make such public disclosure shall provide the other Party with a draft of any such public disclosure it intends to issue [***] Business Days in advance and with the opportunity to review and
comment on such statement, it being understood that if the other Party does not notify the desiring Party in writing within such [***] Business Day period (or such shorter period if required by applicable Law or and the rules of a recognized stock
exchange and, in each case as notified to the other Party in writing) of any reasonable objections, such disclosure shall be deemed approved, and in any event the Parties shall work diligently and reasonably to agree on the text of any such proposed
disclosure in an expeditious manner. The principles to be observed in such disclosures shall be accuracy, compliance with applicable Law and regulatory guidance documents, reasonable 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
sensitivity to potential negative reactions to such news and the need to keep investors and others informed regarding the Parties’ business and other activities. Accordingly in such
situation, the other Party shall not withhold, condition or delay its approval of a proposed disclosure that complies with such principles. 

11.8    Survival. Unless otherwise expressly provided herein, the following provisions shall survive termination or
expiration of this Agreement in its entirety, as well as any other provision which by its terms or by the context thereof, is intended to survive such termination: Article 1 (Definitions), Article 6 (Financial Terms) (solely with respect to unpaid
payments that have accrued prior to the effective date of such termination or expiration, except as otherwise provided in this Article 11), Article 7 (Intellectual Property), Article 8 (Confidentiality) (for the period set forth in
Section 8.1), Article 10 (Indemnity and Insurance), Article 12 (Dispute Resolution), Section 2.2.3(d) (Subcontracting), Section 5.3.2(a) (License for Collaboration Candidates and Products, subsection (a)), [***], Section 5.8.1
(No Implied Licenses, Retained Rights), Section 5.9 (Non-Compete) (for the period set forth in Section 11.6.1(l) or Section 11.6.2(i), as applicable), Section 9.5 (DISCLAIMERS),
Section 9.6 (LIMITATION OF LIABILITY), Section 11.6 (Consequences of Termination), Section 11.7 (Public Disclosure of Termination), Section 11.8 (Survival), Section 13.1(Severability), Section 13.2 (Notices),
Section 13.4.1 (Assignment), Section 13.4.2 (Assignment), Section 13.4.4 (Assignment), Section 13.6 (Waivers), Section 13.7 (Governing Law), Section 13.8 (Relationship of the Parties), Section 13.9 (Third Party
Beneficiary), Section 13.10 (Entire Agreement; Amendment; Exhibit), Section 13.11 (Exports), Section 13.12 (Interpretation; Headings), Section 13.14 (Performance by Affiliates), and Section 13.16 (Counterparts; Electronic
Delivery). Termination or expiration of this Agreement shall not relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination or expiration nor preclude either Party from pursuing all
rights and remedies it may have hereunder or at law or in equity, subject to Article 12 (Dispute Resolution), with respect to any breach of this Agreement nor prejudice either Party’s right to obtain performance of any obligation. All other
rights, licenses and obligations shall terminate upon expiration of this Agreement. 
 ARTICLE 12 

DISPUTE RESOLUTION 

12.1    Exclusive Dispute Resolution Mechanism. The Parties agree that,
except as expressly set forth in Section 4.1.8 (Decision-Making; Limitations on JSC) with respect to certain disputes at the JSC that are not subject to arbitration under Section 12.3 (Arbitration), the procedures set forth in this Article
12 (Dispute Resolution) shall be the exclusive mechanism for resolving any dispute, controversy, or claim between the Parties that may arise from time to time pursuant to, arising out of or in connection with this Agreement, including but not
limited to any Party’s rights and/or obligations hereunder or any questions regarding the formation, existence, validity, enforceability, performance, interpretation, tort, breach or termination hereof (collectively, “Disputes”) that
cannot be resolved through good faith negotiation between the Parties. 
 12.2    Resolution by Executive Officers. Except as
otherwise provided in this Agreement, in the event of any Dispute, the Parties shall first attempt in good faith to resolve such Dispute by negotiation and consultation between themselves through the JSC. In the event that such Dispute is not
resolved through the JSC within [***] days of its reference to the JSC, either Party may, 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
by written notice to the other Party, refer the Dispute to the other Party for attempted resolution by good faith negotiation between the Executive Officers within [***] days after such notice is
received. Except as set forth in Sections 12.4 (Preliminary Injunctions) and 12.5 (Patent Disputes), and except with respect to the matters for which a Party has final decision- making authority or that are not subject to Section 12.3
(Arbitration) as set forth in Section 4.1.8 (Decision-Making; Limitations on JSC), if any Dispute is not resolved by the Executive Officers within the above [***] period, each Party may, in its sole discretion, seek resolution of such Dispute
in accordance with Section 12.3 (Arbitration), and each Party hereby expressly waives its right to seek resolution of such Dispute in a court of competent jurisdiction. 

12.3    Arbitration. 

12.3.1    Subject to Section 12.2 (Resolution by
Executive Officers), Disputes that are not resolved by the Executive Officers in accordance with Section 12.2 (Resolution by Executive
Officers) shall be finally settled by arbitration under the Rules of Arbitration of the International Chamber of Commerce (“ICC Rules”) in force on the date on which the notice of arbitration is submitted in
accordance with the ICC Rules. 
 12.3.2    Each Party shall nominate one (1) arbitrator, and the two
(2) Party-nominated arbitrators shall nominate a third arbitrator, who shall act as a chairperson, each with relevant industry or legal experience, to constitute a panel of three (3) arbitrators to conduct the arbitration in accordance
with the ICC Rules. The Emergency Arbitrator Provisions and the Expedited Procedure Provisions described in the ICC Rules shall not apply. 

12.3.3    The place of arbitration shall be [***] if such arbitration is demanded by ONO, and [***] if
demanded by FATE, and the language used in any such proceeding (including the testimony) shall be English. Any written evidence to be submitted to the panel originally in a language other than English shall be submitted in English translation
accompanied by the original or a true copy or electric data or source thereof only in the case required so by the panel, at the cost of the Party providing such evidence, subject to the arbitrators’ award under
sub-section (g) below. 
 12.3.4    In such arbitration the governing
law to be applied is as described in Section 13.7 (Governing Law). The International Bar Association Rules on the Taking of Evidence in International Commercial Arbitration shall govern the
taking of evidence in any such proceeding, it being the intent of the Parties to enable a reasonable and practicable amount of discovery in any such proceeding. 

12.3.5    The Parties acknowledge that they desire for any arbitration to be conducted in an efficient, speedy and
economical manner. The Parties shall use good faith efforts to complete arbitration under this Section 12.3 (Arbitration) [***]. In order to effectuate this desire, the arbitrators shall establish procedures
reasonably directed to facilitating such goals and completing such arbitration [***]. 
 12.3.6    The decision or
award of the arbitrators shall be final, binding, and incontestable and may be used as a basis for judgment thereon in any jurisdiction, and may be entered in any 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 
court having jurisdiction thereof. To the full extent permissible under Laws, the Parties hereby expressly agree to waive the right to appeal from the decision of the arbitrators, and agree that
there shall be no appeal to any court or other authority (government or private) from the decision of the arbitrators, and the Parties shall not dispute nor question the validity of such decision or award before any regulatory or other authority in
any jurisdiction where enforcement action is taken by the Party in whose favor the decision or award is rendered, except in the case of fraud. The arbitrators shall, upon the request of any Party, issue a written opinion of the findings of fact and
conclusions of law and shall deliver a copy to each of the Parties. Without limiting any other remedies that may be available under Laws, the arbitrators shall have no authority to award punitive, special, consequential, or any other similar form of
damages. 
 12.3.7    Each Party shall bear [***], and the Parties shall [***]; provided, however, that the
arbitrators may exercise discretion to award arbitration costs and translation costs, excluding attorney’s fees, to the prevailing Party. 

12.4    Preliminary Injunctions. Notwithstanding anything in this Agreement to the contrary, a Party
may seek a temporary restraining order or a preliminary injunction from any court of competent jurisdiction in order to prevent immediate and irreparable injury, loss, or damage on a provisional basis, pending the decision of the arbitrator(s) on
the ultimate merits of any Dispute. 
 12.5    Patent Disputes. Notwithstanding anything in this Agreement
to the contrary, any and all issues regarding the scope, construction, validity, and enforceability of any patent in a country within the Territory shall be determined in a court or other tribunal, as the case may be, of competent jurisdiction under
the applicable patent laws of such country. 
 12.6    Confidentiality. Any and all activities conducted under
Sections 12.1 (Exclusive Dispute Resolution Mechanism) through 12.3 (Arbitration), including without limitation any and all proceedings and decisions of arbitrator(s) under Section 12.3 (Arbitration), shall be deemed Confidential Information of
each of the Parties, and shall be subject to Article 8 (Confidentiality). 
 12.7    No Trial by Jury. EACH PARTY HERETO
WAIVES ITS RIGHT TO TRIAL OF ANY ISSUE BY JURY. 
 ARTICLE 13 

MISCELLANEOUS 

13.1    Severability. If any one or more of the provisions of this Agreement is held to be invalid, illegal or unenforceable, the
provision shall be considered severed from this Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall make a good faith effort to replace any invalid, illegal or unenforceable provision with a valid, legal
and enforceable one such that the objectives contemplated by the Parties when entering this Agreement may be realized. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 13.2    Notices. Any notice required or permitted to be given by this Agreement shall
be in writing and in English and shall be (a) delivered by hand or overnight courier with tracking capabilities or (b) mailed postage prepaid by first class, registered or certified mail addressed as set forth below unless changed by
notice so given: 
 If to ONO: 

Ono Pharmaceutical Co., Ltd. Minase Research Institute1-1, Sakurai
3-chome, Shimamoto-cho, Mishima-gun, Osaka 618-8585, Japan 

Attention: [***] 
 With a copy
to: 
 Ono Pharmaceutical Co., Ltd 

.8-2, Kyutaromachi 1-chome 

Chuo-ku, Osaka, Osaka 541-8564, Japan 

Attention: [***] 
 If to FATE:

 Fate Therapeutics, Inc. 

3535 General Atomics Court 

Suite 200 
 San Diego,
California 92121 
 Attention: Chief Executive Officer 

Any such notice shall be deemed given (a) on the date received if delivered in accordance with Section 13.2(a), or
(b) five (5) Business Days after mailing if mailed in accordance with Section 13.2(b). A Party may add, delete, or change the person or address to which notices should be sent at any time upon written notice delivered
to the Party’s notices in accordance with this Section 13.2 (Notices). It is understood and agreed that this Section 13.2 does not intend to govern day-to-day business communications necessary between the Parties in performing their duties under the terms hereof. 

13.3    Force Majeure. Neither Party shall be liable for delay or failure in the performance of any of its obligations hereunder if
such delay or failure is due to causes beyond its reasonable control, including without limitation, acts of God, fires, typhoon, floods, earthquakes, tsunami, embargoes, acts of war (whether war be declared or not), terrorism, strikes, lockouts, or
other civil unrest, or omissions or delays in acting by any governmental authority (“Force Majeure”); provided, however, that the affected Party promptly notifies the other Party and further provided that the affected Party shall use its
Commercially Reasonable Efforts to avoid or remove such causes of non-performance and to mitigate the effect of such occurrence, and shall continue performance with the commercially reasonable dispatch
whenever such causes are removed. When such circumstances arise, the Parties shall negotiate in good faith any modifications of the terms of this Agreement that may be necessary or appropriate in order to arrive at an equitable solution. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 13.4    Assignment. 

13.4.1    Neither this Agreement nor any right or obligation of a Party hereunder may be assigned or transferred by
either Party, in whole or in part, without the consent of the other Party, which shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, either Party may, without the consent of the other Party, assign or transfer
all of its rights and obligations hereunder to an Affiliate or to a Successor by reason of merger or consolidation or sale of all or substantially all of the assets of such Party relating to the Collaboration Candidates or Collaboration Products;
provided however, that (a) such assignment or transfer includes, without limitation, all rights and obligations under this Agreement, (b) such Successor or Affiliate shall have agreed in writing, as of the date of such assignment or
transfer, to be bound by the terms of this Agreement, and to assume performance of rights and/or obligations hereof, and (c) where this Agreement is assigned or transferred to an Affiliate, the assigning or transferring Party remains
responsible for the performance of this Agreement. 
 13.4.2    Subject to
Section 13.4.1, this Agreement shall inure to the benefit of and be binding on the Parties’ successors and assigns. Any assignment or transfer in violation of the foregoing shall be null and void and wholly invalid,
such assignees and transferees in any such assignment or transfer shall acquire no rights whatsoever, and the non-assigning or non- transferring Party shall not be required to recognize such assignment or
transfer. In the event that a Party assigns or otherwise transfers this Agreement to an Affiliate of such Party, such Party hereby agrees to be jointly and severally liable with any such Affiliates for the actions of such Affiliates and for any and
all amounts that become due and payable hereunder to the other Party. 
 13.4.3    [***]. 

13.4.4    Notwithstanding anything to the contrary in this Agreement, [***]. 

13.4.5    [***]. 

13.5    Further Assurances. At any time or from time-to-time on and after the Effective Date, either Party shall at the request of the other Party (a) deliver to the requesting Party such records, data or other documents consistent with the provisions
of this Agreement, (b) execute, and deliver or cause to be delivered, all such consents, documents or further instruments of assignment, transfer or license consistent with the provisions of this Agreement, and (c) take or cause to be
taken all such actions, as the requesting Party may reasonably deem necessary or desirable in order for the requesting Party to obtain the full benefits of this Agreement and the transactions contemplated hereby. 

13.6    Waivers. The failure or delay of any Party to assert a right hereunder or to insist on the performance of any
obligation hereunder shall not be deemed to be a waiver of that right or such obligation. Waiver of any breach of any provision hereof shall not be deemed to be a waiver of any other breach of such provision or any other provision on such occasion
or any succeeding occasion. No waiver, modification, or release by either Party of any condition or term in any one or more instances shall be construed as a continuing waiver of such condition or term or of another condition or term. In any event
no waiver shall be effective for any purpose hereunder unless such waiver is in writing and signed by a duly authorized officer of the Party granting such waiver. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 13.7    Governing Law. This Agreement shall be governed by, enforced, and
shall be construed in accordance with the Laws of the State of New York without regard to any conflicts of law provision that would result in the application of the Laws of any other country or state. The Parties expressly agree that the United
Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. 

13.8    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 FATE and ONO as partners, agents or joint venturers. Neither Party shall have 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. 

13.9    Third Party Beneficiary. Except as expressly set forth herein, this Agreement is
for the sole benefit of the Parties hereto and their successors and permitted assigns, and there are no express or implied third party beneficiaries hereunder except for Indemnitees specified in Article 10. Nothing in this Agreement shall be
construed as giving any Person, other than the Parties and Indemnitees hereto and their successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provision hereof. 

13.10    Entire Agreement; Amendment; Exhibit. This Agreement and the
attached exhibits constitutes the entire agreement between the Parties as to the subject matter of this Agreement, and supersedes and merges all prior and contemporaneous negotiations, representations, agreements and understandings regarding the
same, including the Prior CDAs, subject to Section 8.6 (Relationship to Confidentiality Agreement). No subsequent alteration, amendment, change or addition to this Agreement shall be valid or binding upon the Parties unless in writing and
signed by the respective duly authorized officers of each of the Parties. All Exhibits and Schedules are incorporated herein by this reference 

13.11    Exports. Each Party agrees not to export or re-export, directly or
indirectly, any information, technical data, the direct product of such data, samples or equipment received or generated under this Agreement in violation of any applicable export control Laws. 

13.12    Interpretation; Headings. 

13.12.1    Each of the Parties acknowledges and agrees that this Agreement has been diligently reviewed by and
negotiated by and between them, that in such negotiations each of them has been represented by competent counsel and that the final agreement contained herein, including the language whereby it has been expressed, represents the joint efforts of the
Parties hereto and their counsel. Accordingly, in interpreting this Agreement or any provision hereof, no presumption shall apply against any Party as being responsible for the wording or drafting of this Agreement or any such provision, and
ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision. 

13.12.2    Unless the context requires otherwise, (a) any definition of or reference to any agreement,
instrument or other document herein shall 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 shall be construed as referring
to such Laws as from time to time enacted, repealed or amended, (c) any reference herein to any Person shall be construed to include the Person’s successors and assigns, (d) all references herein to Articles, Sections, Exhibits or
Schedules, unless otherwise specifically provided, shall be construed to refer to Articles, Sections, Exhibits or Schedules of this Agreement and (e) the word “will” shall be construed to have the same meaning and effect as the word
“shall”. References to any Sections include Sections and subsections that are part of the Section (e.g., a section numbered “Section 2.2(a)” would be part of “Article 2”, and references to “Section
2.2(a)” would also refer to material contained in the subsection described as “Section 2.2(a)(i)”). 

13.12.3    Headings and captions are for convenience only and are not to be used in the interpretation of this
Agreement. 
 13.12.4    Whenever any provision of this Agreement uses the term “including” (or
“includes”), such term will be deemed to mean “including without limitation” (or “includes without limitation”) and the term “or” is used in the inclusive sense (and/or). “Herein,”
“hereby,” “hereunder,” “hereof” and other equivalent words refer to this Agreement as an entirety and not solely to the particular portion of this Agreement in which any such word is used. All definitions set forth
herein will be deemed applicable whether the words defined are used herein in the singular or the plural. 
 13.13    Competition Law
Filings. Within at least [***] Business Days of its receipt of written notice from ONO with respect to the Competition Law Filings, as applicable, in connection with (i) the exercise of the ONO Option (alone or in conjunction with the
exercise of any options held by ONO) pursuant to Section 2.4.3 (Option Exercise) or (ii) the Opt-Out of FATE CDCC Territory pursuant to Section 2.4.4(e) (CDCC Option), at the request of the ONO,
FATE will, in consultation and cooperation with ONO, file or submit, and assist ONO with any filing, submission or notification it makes, with or to any governmental entity any Competition Law Filing necessary or advisable in connection with the
U.S. Federal Trade Commission (the “FTC”) and the U.S. Department of Justice (the “DOJ”) under the HSR Act and the appropriate governmental entity under any other applicable Competition Law. Any such Competition Law Filings made
by each of ONO and FATE will be in substantial compliance with the requirements of the Competition Laws. Each of ONO and FATE will use its reasonable efforts, and cooperate with each other, to obtain as promptly as practicable all approvals,
authorizations, terminations of applicable periods and clearances in connection with the Competition Law Filings, including (a) cooperating and consulting with each other and furnishing to each other or each other’s counsel information and
reasonable assistance as each may request in connection with the preparation of any Competition Law Filing, (b) giving the other reasonable prior notice of, and the opportunity to review and discuss in advance (including considering in good
faith the views of the other), any such Competition Law Filings to be made and, to the extent reasonably practicable, of any communication with, or any responses to inquiries or requests for additional information from, the FTC, the DOJ and any
other governmental entity regarding such Competition Law Filings or the transactions contemplated by the ONO Option or the Opt-Out of FATE CDCC Territory, as applicable, (c) permitting the other or the
other’s counsel to participate in all communications and meetings with any governmental entity to the extent not prohibited by such governmental entity and (d) subject to clauses (b) and (c) of this Section 13.13, responding as
promptly as practicable to all requests of any governmental entity and providing all requested information to such governmental entity. ONO and FATE will each [***]; however, [***]. 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 13.14    Performance by Affiliates.
Each Party shall always have the right to perform any or all of its obligations and exercise any or all of its rights under this Agreement through any of its Affiliates (but only for so long as such entity remains an Affiliate of such Party),
provided that each Party shall remain responsible for the performance of this Agreement and the compliance with the terms and conditions of this Agreement by its Affiliates and any act or omission by an Affiliate of such Party shall constitute an
act or omission by such Party. 
 13.15    Anti-Corruption. Each Party shall conduct and cause its Affiliates to
conduct, and shall use Commercially Reasonable Efforts to cause its Sublicensees, contractors and consultants to conduct, all of its activities contemplated under this Agreement in accordance with all applicable Laws of the country in which such
activities are conducted, as well as the US Foreign Corrupt Practices Act and the UK Bribery Act 2010. In addition, each Party shall not, shall ensure that its Affiliates do not, and shall use Commercially Reasonable Efforts to cause its
Sublicensees, contractors and consultants not to, take any action that would cause the other Party to violate any applicable anti-corruption or sanctions Laws. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 IN WITNESS WHEREOF, the Parties have caused this Collaboration and Option Agreement to be
executed by their respective duly authorized officers as of the Effective Date. 
  

									
	FATE THERAPEUTICS, INC.	 		 	ONO PHARMACEUTICAL CO., LTD.
					
	By:	 	/s/ J. Scott Wolckho	 		 	By:	 	/s/ Gvo Sagara
	Name:	 	Scott Wolchko	 		 	Name:	 	Gyo Sagara
	Title:	 	President & Chief Executive Officer	 		 	Title:	 	President, Representative Director, and Chief Executive Officer

 Exhibit 1.23 

Collaboration Candidate Selection Criteria 

[1 page omitted] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 Exhibit 1.48 

FATE Patents 
 [29 pages
omitted] 
  

									
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* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

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

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

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

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 Exhibit 1.68 

Joint Development Plan 
 [2
pages omitted] 
 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 Exhibit 1.78 

Target Antigens [***] 
 [1
page omitted] 
 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 Exhibit 5.6 

FATE Logo 
  

 

 Exhibit 7.10.1 

Existing Agreements 
 [1
page omitted] 
 [***] 

  
  

* Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission. 

 Exhibit 8.9 

Press Release 
 Fate
Therapeutics Announces Strategic Collaboration with ONO Pharmaceutical to Develop Off-the-Shelf, iPSC-derived CAR-T Cell Cancer
Immunotherapies 
 Option-based Collaboration to Develop Two CAR T-Cell Product Candidates
Using Fate’s Proprietary iPSC Product Platform 
 San Diego, CA – September 17, 2018 – Fate Therapeutics, Inc. (NASDAQ:
FATE), a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders, announced today that it has entered into a collaboration with ONO Pharmaceutical Co., Ltd. for the
joint development and commercialization of two off-the-shelf CAR-T cell product candidates. Using Fate Therapeutics’
proprietary induced pluripotent stem cell (iPSC) product platform, the two CAR T-cell collaboration candidates will each be derived from a clonal master iPSC line engineered to completely eliminate endogenous
TCR expression, insert a chimeric antigen receptor (CAR) into the TRAC locus and incorporate other anti-tumor functionality. This transformative approach enables the cost-effective production of cell-based cancer immunotherapies that are uniformly
engineered, extensively characterized and homogeneous in composition, and can be consistently and repeatedly mass produced and delivered to patients in an off-the-shelf
manner. 
 “We are delighted to collaborate with ONO, a global leader in oncology with a long history of developing innovative breakthrough cancer
drugs,” said Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics. “This partnership with ONO enables Fate to further enhance its expertise in targeting solid tumors and to accelerate the global development of our
pipeline of off-the-shelf, iPSC-derived CAR-T cell product candidates.” 

Under the terms of the strategic option agreement, Fate Therapeutics and ONO will jointly advance each iPSC-derived
CAR-T cell collaboration candidate to a pre-defined preclinical milestone. The first iPSC- derived CAR T-cell candidate targets
an antigen expressed on certain lymphoblastic leukemias, and Fate Therapeutics retains global responsibility for development and commercialization with ONO having an option to assume responsibilities in Asia. The second candidate targets a novel
antigen identified by ONO expressed on certain solid tumors, with ONO having an option to assume global responsibility for further development and commercialization and Fate Therapeutics retaining the right to
co-develop and co-commercialize the candidate in the United States and Europe. For both collaboration candidates, Fate Therapeutics retains manufacturing
responsibilities on a global basis. 
 “Ono identified Fate Therapeutics as the partner of choice for the generation of
off-the-shelf CAR T-cell cancer immunotherapies in our portfolio,” said Hiromu Habashita, Corporate Officer, and Executive
Director of Discovery & Research of ONO. “We are excited to work with Fate Therapeutics and apply its industry-leading iPSC product platform to develop and deliver the next-generation of CAR
T-cell therapies for cancer patients.” 
 Fate Therapeutics will receive an upfront payment and committed
research funding during the preclinical option period, and is eligible to receive a preclinical option exercise fee, clinical, regulatory and commercialization milestone payments and tiered royalties on net sales by ONO in connection with the
development and commercialization of each collaboration product by ONO in the ONO territory. 

 About Fate Therapeutics’ iPSC Product Platform 

The Company’s proprietary iPSC product platform enables mass production of
off-the-shelf, engineered, homogeneous cell products that can be administered in repeat doses to mediate more effective pharmacologic activity, including in combination
with cycles of other cancer treatments. Human iPSCs possess the unique dual properties of unlimited self-renewal and differentiation potential into all cell types of the body. The Company’s first-of-kind approach involves engineering human iPSCs in a one-time genetic modification event, and selecting a single iPSC for maintenance as a clonal master iPSC
line. 
 Analogous to master cell lines used to manufacture biopharmaceutical drug products such as monoclonal antibodies, clonal master iPSC lines are a
renewable source for consistently and repeatedly manufacturing homogeneous cell products in quantities that support the treatment of patients in an off-the-shelf manner. Fate Therapeutics’ iPSC product
platform is supported by an intellectual property portfolio of over 100 issued patents and 100 pending patent applications. 
 About Fate Therapeutics,
Inc. 
 Fate Therapeutics is a clinical-stage biopharmaceutical company dedicated to the development of
first-in-class cellular immunotherapies for cancer and immune disorders. The Company is pioneering the development of
off-the-shelf cell therapies using its proprietary induced pluripotent stem cell (iPSC) product platform. The Company’s immuno-oncology pipeline is comprised of
FATE-NK100, a donor-derived natural killer (NK) cell cancer immunotherapy that is currently being evaluated in three Phase 1 clinical trials, as well as iPSC-derived NK cell and T-cell immunotherapies,
with a focus on developing augmented cell products intended to synergize with checkpoint inhibitor and monoclonal antibody therapies and to target tumor-specific antigens. The Company’s immuno-regulatory pipeline includes ProTmuneTM, a
next-generation donor cell graft that is currently being evaluated in a Phase 2 clinical trial for the prevention of graft-versus-host disease, and a myeloid-derived suppressor cell immunotherapy for promoting immune tolerance in patients with
immune disorders. Fate Therapeutics is headquartered in San Diego, CA. For more information, please visit www.fatetherapeutics.com. 
 Fate Therapeutics
Forward-Looking Statements 
 This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform
Act of 1995, including statements regarding the impact, timing, conduct and the potential benefits of the collaboration, including expected funding and payments to be received by Fate Therapeutics under the collaboration, as well as the
capabilities, expertise and responsibilities of each of Fate Therapeutics and ONO Pharmaceutical. These and any other forward-looking statements in this release are based on management’s current expectations of future events and are subject to
a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks
associated with: the success, cost and timing of product development activities under the collaboration; the ability of Fate Therapeutics and ONO Pharmaceutical to obtain regulatory approval for and to commercialize any product candidates developed
under the collaboration; regulatory 

 
requirements and regulatory developments; the success of competing treatments and technologies; the risk of cessation or delay of any development activities under the collaboration for a variety
of reasons; any adverse effects or events, or other negative results, that may be observed in preclinical or clinical development of any product candidates developed through the collaboration; and the risk that funding and payments received by Fate
Therapeutics under the collaboration may be less than expected. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Fate Therapeutics’ actual results to differ from those contained in the
forward-looking statements, see the risks and uncertainties detailed in Fate Therapeutics’ periodic filings with the Securities and Exchange Commission, including but not limited to Fate Therapeutics’ most recently filed periodic report,
and from time to time in Fate Therapeutics’ press releases and other investor communications. Fate Therapeutics is providing the information in this release as of this date and, except as required by law, does not undertake any obligation to
update any forward-looking statements contained in this release as a result of new information, future events or otherwise. 
 Contact: 

Christina Tartaglia 
 Stern Investor Relations, Inc. 212.362.1200

 christina@sternir.com 

 ONO announces collaboration with Fate Therapeutics for two iPSC-derived CAR-T Therapies for Cancers 
 Ono Pharmaceutical Co., Ltd. (Osaka, Japan; President, Representative Director and CEO,
Gyo Sagara; “ONO”) announced that it entered into a collaboration agreement with Fate Therapeutics, Inc. (San Diego, CA, USA; President & Chief Executive Officer, Scott Wolchko; “Fate”) for the joint development and
commercialization of two off-the-shelf CAR-T cell product candidates for cancer. 

Under the terms of the strategic option agreement, ONO will pay to Fate a one-time upfront payment and commit research
funding during the preclinical option period, and ONO will also pay to Fate a preclinical option exercise fee, clinical, regulatory and commercialization milestone payments as well as tiered royalties on the net sales in the ONO’s territory.

 ONO and Fate will jointly advance each iPSC-derived CAR-T cell collaboration candidate to a pre-defined preclinical milestone. The first iPSC-derived CAR T-cell candidate targets an antigen expressed on certain lymphoblastic leukemias, and Fate retains global
responsibility for development and commercialization with ONO having an option to assume responsibilities in Asia. The second candidate targets a novel antigen identified by ONO expressed on certain solid tumors, with ONO having an option to assume
global responsibility for further development and commercialization and Fate retaining the right to co-develop and co-commercialize the candidate in the United States
and Europe. For both collaboration candidates, Fate retains manufacturing responsibilities on a global basis. 
 “Ono identified Fate Therapeutics as
the partner of choice for the generation of off-the-shelf CAR T-cell cancer immunotherapies in our portfolio,” said Hiromu
Habashita, Corporate Officer, and Executive Director of Discovery & Research of ONO. “We are excited to work with Fate Therapeutics and apply its industry-leading iPSC product platform to develop and deliver the next-generation of CAR T-cell therapies for cancer patients.” 
 “We are delighted to collaborate with ONO, a global leader in oncology
with a long history of developing innovative breakthrough cancer drugs,” said Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics. “This partnership with ONO enables Fate to further enhance its expertise in targeting
solid tumors and to accelerate the global development of our pipeline of off-the-shelf, iPSC-derived CAR-T cell product
candidates.” 
 About Fate Therapeutics’ iPSC Product Platform 

The Company’s proprietary iPSC product platform enables mass production of
off-the-shelf, engineered, homogeneous cell products that can be administered in repeat doses to mediate more effective pharmacologic activity, including in combination
with cycles of other cancer treatments. Human iPSCs possess the unique dual properties of unlimited self-renewal and differentiation potential into all cell types of the body. The Company’s first-of-kind approach involves engineering human iPSCs in a one-time genetic modification event, and selecting a single iPSC for maintenance as a clonal master iPSC
line. Analogous to master cell lines used to manufacture biopharmaceutical drug products such as monoclonal antibodies, clonal master iPSC lines are a renewable source for consistently and repeatedly manufacturing homogeneous cell products in
quantities that support the treatment of patients in an off-the-shelf manner. Fate Therapeutics’ iPSC product platform is supported by an intellectual property
portfolio of over 100 issued patents and 100 pending patent applications. 

 About Fate Therapeutics, Inc. 

Fate Therapeutics is a clinical-stage biopharmaceutical company dedicated to the development of
first-in-class cellular immunotherapies for cancer and immune disorders. The Company is pioneering the development of off-the-shelf cell therapies using its proprietary induced pluripotent stem cell (iPSC) product platform. The Company’s immuno-oncology pipeline is comprised of FATE-NK100, a donor-derived natural killer
(NK) cell cancer immunotherapy that is currently being evaluated in three Phase 1 clinical trials, as well as iPSC-derived NK cell and T-cell immunotherapies, with a focus on developing augmented cell
products intended to synergize with checkpoint inhibitor and monoclonal antibody therapies and to target tumor-specific antigens. The Company’s immuno-regulatory pipeline includes ProTmuneTM, a next-generation donor cell graft that is
currently being evaluated in a Phase 2 clinical trial for the prevention of graft-versus-host disease, and a myeloid-derived suppressor cell immunotherapy for promoting immune tolerance in patients with immune disorders. Fate Therapeutics is
headquartered in San Diego, CA. For more information, please visit www.fatetherapeutics.com. 
 Contact 

ONO PHARMACEUTICAL CO., LTD. 
 Corporate Communications 

public_relations@ono.co.jpEX-4.1

 Exhibit 4.1 
  

 
  

SERIES 2019-1 SUPPLEMENT 

Dated as of February 14, 2019 

to 
 FOURTH AMENDED AND RESTATED

 POOLING AND SERVICING AGREEMENT 

Dated as of April 1, 2018 

$1,714,287,000 
  

 
 AMERICAN EXPRESS
CREDIT ACCOUNT MASTER TRUST 
 Series 2019-1 

 
  

among 
 AMERICAN EXPRESS
RECEIVABLES FINANCING CORPORATION III LLC 
 as Transferor 

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC. 

as Servicer 
 and 

THE BANK OF NEW YORK MELLON 
 as
Trustee 
 on behalf of the Series 2019-1 Certificateholders 

 
  

 

 TABLE OF CONTENTS 

 

							
		  		  	 	Page	 
			
	ARTICLE I	  	CREATION OF THE SERIES 2019-1 CERTIFICATES	  	 	1	 
			
	 Section 1.01.
	  	Designation	  	 	1	 
			
	ARTICLE II	  	DEFINITIONS	  	 	2	 
			
	 Section 2.01.
	  	Definitions	  	 	2	 
			
	ARTICLE III	  	SERVICING FEE	  	 	14	 
			
	 Section 3.01.
	  	Servicing Compensation	  	 	14	 
			
	ARTICLE IV	  	RIGHTS OF SERIES 2019-1 CERTIFICATEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS	  	 	15	 
			
	 Section 4.01.
	  	Collections and Allocations	  	 	15	 
			
	 Section 4.02.
	  	Determination of Monthly Interest	  	 	17	 
			
	 Section 4.03.
	  	Principal Funding Account; Controlled Accumulation Period	  	 	18	 
			
	 Section 4.04.
	  	Required Amount	  	 	20	 
			
	 Section 4.05.
	  	Application of Class A Available Funds, Class B Available Funds, Collateral Available Funds and Available Principal Collections	  	 	21	 
			
	 Section 4.06.
	  	Defaulted Amounts; Investor Charge-Offs	  	 	23	 
			
	 Section 4.07.
	  	Excess Spread; Excess Finance Charge Collections	  	 	24	 
			
	 Section 4.08.
	  	Reallocated Principal Collections	  	 	25	 
			
	 Section 4.09.
	  	Excess Finance Charge Collections	  	 	26	 
			
	 Section 4.10.
	  	Reallocated Investor Finance Charge Collections	  	 	26	 
			
	 Section 4.11.
	  	Shared Principal Collections	  	 	27	 
			
	 Section 4.12.
	  	Reserve Account	  	 	27	 
			
	 Section 4.13.
	  	Investment Instructions	  	 	29	 
			
	 Section 4.14.
	  	[Reserved]	  	 	29	 
			
	ARTICLE V	  	DISTRIBUTIONS AND REPORTS TO SERIES 2019- 1 CERTIFICATEHOLDERS	  	 	30	 
			
	 Section 5.01.
	  	Distributions	  	 	30	 
			
	 Section 5.02.
	  	Reports and Statements to Series 2019-1 Certificateholders	  	 	31	 
			
	ARTICLE VI	  	PAY-OUT EVENTS	  	 	31	 
			
	 Section 6.01.
	  	Pay-Out Events	  	 	31	 
			
	ARTICLE VII	  	OPTIONAL REPURCHASE; SERIES TERMINATION	  	 	33	 
			
	 Section 7.01.
	  	Optional Repurchase	  	 	33	 
			
	 Section 7.02.
	  	Series Termination	  	 	33	 

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

							
		  		  	 	Page	 
			
	ARTICLE VIII	  	FINAL DISTRIBUTIONS	  	 	34	 
			
	 Section 8.01.
	  	Sale of Receivables or Certificateholders’ Interest pursuant to Section 2.06 or 10.01 of the Agreement and Section 7.01 or 7.02 of this Supplement	  	 	34	 
			
	 Section 8.02.
	  	Distribution of Proceeds of Sale, Disposition or Liquidation of the Receivables pursuant to Section 9.01 of the Agreement	  	 	35	 
			
	ARTICLE IX	  	MISCELLANEOUS PROVISIONS	  	 	36	 
			
	 Section 9.01.
	  	Ratification of Agreement	  	 	36	 
			
	 Section 9.02.
	  	Counterparts	  	 	36	 
			
	 Section 9.03.
	  	Governing Law	  	 	36	 
			
	 Section 9.04.
	  	[Reserved]	  	 	36	 
			
	 Section 9.05.
	  	FATCA Matters	  	 	36	 
			
	 Section 9.06.
	  	Uncertificated Securities	  	 	37	 
			
	 Section 9.07.
	  	Transfers of the Collateral Interest	  	 	37	 
			
	EXHIBITS	  		  			
			
	 Exhibit A-1
	  	Form of Class A Certificate	  	 	A-1-1	 
			
	 Exhibit A-2
	  	Form of Class B Certificate	  	 	A-2-1	 
			
	 Exhibit B
	  	Form of Monthly Payment Instructions and Notification to the Trustee	  	 	B-1	 
			
	 Exhibit C-1
	  	Form of Monthly Statement	  	 	C-1-1	 
			
	 Exhibit C-2
	  	Form of Annual Payment Information	  	 	C-2-1	 
			
	 Exhibit D
	  	Form of Monthly Servicer’s Certificate	  	 	D-1	 
			
	 Exhibit E
	  	Form of Investment Letter	  	 	E-1	 

  

  
 -ii- 

 SERIES 2019-1 SUPPLEMENT, dated as of
February 14, 2019 (the “Supplement”), among AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC, a Delaware limited liability company, as Transferor (the “Transferor”), AMERICAN EXPRESS TRAVEL RELATED
SERVICES COMPANY, INC., a New York corporation, as Servicer, and THE BANK OF NEW YORK MELLON, a banking corporation organized and existing under the laws of the State of New York, not in its individual capacity, but solely as Trustee. 

Pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and
restated and as otherwise amended and supplemented, the “Agreement”), among the Transferor, the Servicer and the Trustee, the AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST (the “Trust”) has been created.
Section 6.03 of the Agreement provides that the Transferor may from time to time direct the Trustee to authenticate one or more new Series of Investor Certificates representing fractional undivided interests in the Trust. The Principal Terms of
any new Series are to be set forth in a Supplement to the Agreement. 
 Pursuant to this Supplement, the Transferor and the
Trustee shall create a new Series of Investor Certificates and specify the Principal Terms thereof. 
 ARTICLE I 

Creation of the Series 2019-1 Certificates 

Section 1.01.        Designation. 

(a)        There is hereby created a Series of Investor Certificates to be issued
pursuant to the Agreement and this Supplement to be known as “American Express Credit Account Master Trust, Series 2019-1.” The Series 2019-1 Certificates
shall be issued in two Classes, the first of which shall be known as the “Class A Series 2019-1 2.87% Asset Backed Certificates” and the second of which shall be known as the “Class B
Series 2019-1 3.07% Asset Backed Certificates.” In addition, there is hereby created a third Class of uncertificated interests in the Trust which shall be known as the “Collateral Interest,
Series 2019-1” and which shall be deemed to be “Investor Certificates” for all purposes under the Agreement and this Supplement other than for purposes of the definition of the term “Tax
Opinion” in Section 1.01 of the Agreement. The Collateral Interest shall be considered a Class of Series 2019-1 for all purposes of the Agreement and this Supplement, including for purposes of
voting concerning the liquidation of the Trust pursuant to Section 9.01 of the Agreement. The Collateral Interest Holder shall be deemed to be the Series Enhancer for all purposes under the Agreement and this Supplement. 

(b)        Series 2019-1 shall be included in
Group I and shall be a Principal Sharing Series. Series 2019-1 shall be an Excess Allocation Series. Series 2019-1 shall not be subordinated to any other Series.
Notwithstanding any provision in the Agreement or in this Supplement to the contrary, the first Distribution Date with respect to Series 2019-1 shall be the March 2019 Distribution Date and the first Monthly
Period shall begin on and include the Closing Date and end on and include February 28, 2019. 

(c)        Except as expressly provided herein, (i) the provisions of Article VI
and Article XII of the Agreement relating to the registration, authentication, delivery, presentation, cancellation and surrender of Registered Certificates shall not be applicable to the Collateral Interest, and (ii) the provisions of
Section 3.07 of the Agreement shall not cause the Collateral Interest to be treated as debt for federal, state and local income and franchise tax purposes, but rather the Transferor intends, and together with the Collateral Interest Holder,
agree to treat the Collateral Interest for federal, state and local income and franchise tax purposes as representing an equity interest in the assets of the Trust. 

  
 1 

 (d)        Pursuant to
Section 6.03(c) of the Agreement, the Transferor may, from time to time, increase the amount of the Series 2019-1 Certificates by issuing and selling additional Series
2019-1 Certificates. Any additional Series 2019-1 Certificates so issued shall be treated, for all purpose, like the Series
2019-1 Certificates subject to the terms of the Agreement and this Supplement. 

(e)        Series 2019-1 shall be a
Repurchase Reporting Series. 
 (f)        Series
2019-1 shall be an Investor Communication Reporting Series. 

(g)        In connection with the issuance of any future Series of Investor
Certificates, notwithstanding subsection 6.03(b)(iv) of the Agreement, the Rating Agency Condition need not be satisfied for Series 2019-1 with respect to any Rating Agency (other than Moody’s) then
rating Series 2019-1. 
 ARTICLE II 

Definitions 

Section 2.01.        Definitions. 

(a)        Whenever used in this Supplement, the following words and phrases shall
have the following meanings, and the definitions of such terms are applicable to the singular as well as the plural forms of such terms and the masculine as well as the feminine and neuter genders of such terms. 

“Additional Interest” shall mean, with respect to any Distribution Date, the Class A
Additional Interest, the Class B Additional Interest and the Collateral Additional Interest for such Distribution Date. 

“Adjusted Invested Amount” shall mean, with respect to any date of
determination, an amount equal to the Invested Amount less the Principal Funding Account Balance on such date of determination. 

“Assignee” shall have the meaning specified in subsection 9.07(a). 

“Available Principal Collections” shall mean, with respect to any
Monthly Period, an amount equal to the sum of (a) (i) an amount equal to the Principal Allocation Percentage of Series2019-1 Allocable Principal Collections received during such Monthly Period minus
(ii) the amount of Reallocated Principal Collections with respect to such Monthly Period which pursuant to Section 4.08 are required to fund the Required Amount for the related Distribution Date, (b) any Shared Principal
Collections with respect to other Series that are allocated to Series 2019-1 in accordance with Section 4.04 of the Agreement and Section 4.11 of this Supplement, and (c) any other amounts which
pursuant to Section 4.05 or 4.07 of this Supplement are to be treated as Available Principal Collections with respect to the related Distribution Date. 

“Available Reserve Account Amount” shall mean, with
respect to any Distribution Date, the lesser of (a) the amount on deposit in the Reserve Account on such date (before giving effect to any deposit to be made to the Reserve Account on such date) and (b) the Required Reserve Account Amount.

 “Base Rate” shall mean, with respect to any Monthly Period, the annualized
percentage equivalent of a fraction, the numerator of which is equal to the sum of the Class A Monthly Interest, the Class B Monthly Interest (calculated as if the Class B Invested Amount equals the outstanding principal balance of
the Class B Certificates), the Collateral Senior Minimum Monthly Interest and the Monthly 

  
 2 

 
Servicing Fee with respect to the related Distribution Date and the denominator of which is the Invested Amount as of the last day of the preceding Monthly Period. 

“Class A Additional Interest” shall have the
meaning specified in subsection 4.02(a). 

“Class A Adjusted Invested 
Amount” shall mean, with respect to any date of determination, an amount equal to the Class A Invested Amount less the Principal Funding Account Balance (but not in excess of the Class A Invested Amount) on such date. 

“Class A Available Funds” shall mean, with respect
to any Monthly Period, an amount equal to the sum of (a) if such Monthly Period relates to a Distribution Date with respect to the Controlled Accumulation Period, the Class A Floating Percentage of Principal Funding Account Investment
Proceeds, if any, with respect to such Distribution Date, (b) the Class A Floating Percentage of the Reallocated Investor Finance Charge Collections and (c) the amount of funds, if any, to be withdrawn from the Reserve Account which,
pursuant to subsection 4.12(d), are required to be included in Class A Available Funds with respect to such Distribution Date. 

“Class A Certificate Rate” shall mean, for any
Interest Accrual Period with respect to the Class A Certificates, a per annum rate equal to 2.87%. 

“Class A Certificateholder” shall mean the Person in whose name a
Class A Certificate is registered in the Certificate Register. 

“Class A Certificates” shall mean any one of the Certificates executed
by the Transferor and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit A-l. 

“Class A Floating Percentage” shall mean, with
respect to any Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is equal to the Class A Adjusted Invested Amount as of the close of business on the last day of the
preceding Monthly Period and the denominator of which is equal to the Adjusted Invested Amount as of such day; provided, however, that with respect to the first Monthly Period, the Class A Floating Percentage shall mean the percentage
equivalent of a fraction, the numerator of which is the Class A Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Class A Initial Invested Amount” shall mean $1,500,000,000. 

“Class A Interest Shortfall” shall have the meaning
specified in subsection 4.02(a). 

“Class A Invested Amount” shall mean, on any date
of determination, an amount equal to (a) the Class A Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class A Certificateholders on or prior to such date, minus (c) the
excess, if any, of (i) the aggregate amount of Class A Investor Charge-Offs for all prior Distribution Dates over (ii) Class A Investor Charge-Offs reimbursed pursuant to subsection 4.07(b) prior to such date, and
plus (d) the principal amount of any additional Class A Certificates issued after the Closing Date in accordance with Section 6.03(c) of the Agreement; provided, however, that the Class A Invested Amount
shall not be reduced below zero. 

“Class A Investor Charge-Offs” shall have the
meaning specified in subsection 4.06(a). 

“Class A Investor Default 
Amount” shall mean, with respect to each Distribution Date, an amount equal to the product of (i) the Investor Default Amount for such Distribution Date and (ii) the Class A Floating Percentage for such Monthly Period. 

  
 3 

“Class A Monthly Interest” shall have the meaning
specified in subsection 4.02(a). 

“Class A Principal Percentage” shall mean, with
respect to any Monthly Period (i) during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Class A Invested Amount as of the last day of the immediately
preceding Monthly Period and the denominator of which is the Invested Amount as of such day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any Partial Amortization Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the Class A Invested Amount as of the close of business on the date on which the Revolving Period shall have terminated and the denominator of which is the Invested
Amount as of the close of business on the date on which the Revolving Period shall have terminated; provided, however, that with respect to the first Monthly Period, the Class A Principal Percentage shall mean the percentage equivalent
of a fraction, the numerator of which is the Class A Initial Invested Amount and denominator of which is the Initial Invested Amount. 

“Class A Required Amount” shall have the meaning
specified in subsection 4.04(a). 

“Class A Servicing Fee” shall have the meaning
specified in Section 3.01. 

“Class B Additional Interest” shall have the
meaning specified in subsection 4.02(b). 

“Class B Adjusted Invested 
Amount” shall mean, with respect to any date of determination, an amount equal to the Class B Invested Amount less the positive difference, if any, between the Principal Funding Account Balance and the Class A Invested Amount on
such date. 
 “Class B Available Funds” shall
mean, with respect to any Monthly Period, an amount equal to the sum of (a) the Class B Floating Percentage of the Reallocated Investor Finance Charge Collections and (b) if such Monthly Period relates to a Distribution Date with
respect to the Controlled Accumulation Period, the Class B Floating Percentage of the Principal Funding Account Investment Proceeds, if any, with respect to such Distribution Date. 

“Class B Certificate Rate” shall mean, for any
Interest Accrual Period with respect to the Class B Certificates, a per annum rate equal to 3.07%. 

“Class B Certificateholder” shall mean the Person in whose name a
Class B Certificate is registered in the Certificate Register. 

“Class B Certificates” shall mean any one of the Certificates executed
by the Transferor and authenticated by or on behalf of the Trustee, substantially in the form of Exhibit A-2. 

“Class B Floating Percentage” shall mean, with
respect to any Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is equal to the Class B Adjusted Invested Amount as of the close of business on the last day of the
preceding Monthly Period and the denominator of which is equal to the Adjusted Invested Amount as of the close of business on such day; provided, however, that with respect to the first Monthly Period, the Class B Floating Percentage
shall mean the percentage equivalent of a fraction, the numerator of which is the Class B Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Class B Initial Invested Amount” shall mean $64,286,000. 

“Class B Interest Shortfall” shall have the meaning
specified in subsection 4.02(b). 

  
 4 

“Class B Invested Amount” shall mean, on any date of
determination, an amount equal to (a) the Class B Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class B Certificateholders prior to such date, minus (c) the aggregate
amount of Class B Investor Charge-Offs for all prior Distribution Dates, minus (d) the amount of Reallocated Principal Collections allocated on all prior Distribution Dates pursuant to subsection 4.08(a) (excluding any Reallocated
Principal Collections that have resulted in a reduction in the Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal to the amount by which the Class B Invested Amount has been reduced on all prior
Distribution Dates pursuant to subsection 4.06(a), plus (f) the amount of Excess Spread and Excess Finance Charge Collections allocated and available on all prior Distribution Dates pursuant to subsection 4.07(e) for the purpose of
reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e), and plus (g) the principal amount of any additional Class B Certificates issued after the Closing Date in accordance with Section 6.03(c) of the
Agreement; provided, however, that the Class B Invested Amount shall not be reduced below zero. 

“Class B Investor Charge-Offs” shall have the
meaning specified in subsection 4.06(b). 

“Class B Investor Default 
Amount” shall mean, with respect to each Distribution Date, an amount equal to the product of (i) the Investor Default Amount for such Distribution Date and (ii) the Class B Floating Percentage for such Monthly Period. 

“Class B Monthly Interest” shall have the meaning
specified in subsection 4.02(b). 

“Class B Principal Percentage” shall mean, with
respect to any Monthly Period, (i) during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Class B Invested Amount as of the last day of the immediately
preceding Monthly Period and the denominator of which is the Invested Amount as of such day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any Partial Amortization Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the Class B Invested Amount as of the close of business on the date on which the Revolving Period shall have terminated and the denominator of which is the Invested
Amount as of the close of business on the date on which the Revolving Period shall have terminated; provided, however, that with respect to the first Monthly Period, the Class B Principal Percentage shall mean the percentage equivalent
of a fraction, the numerator of which is the Class B Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Class B Required Amount” shall have the meaning
set forth in subsection 4.04(b). 

“Class B Servicing Fee” shall have the meaning
specified in Section 3.01. 
 “Closing Date” shall mean February 14, 2019;
provided that, for purposes of determining the date on which the first Monthly Period begins, the Closing Date shall be deemed to be the close of business on January 31, 2019. 

“Collateral Additional Interest” shall have the meaning specified in
subsection 4.02(c). 
 “Collateral Available Funds” shall mean with
respect to any Distribution Date, the Collateral Floating Percentage of Reallocated Investor Finance Charge Collections with respect to the preceding Monthly Period. 

“Collateral Charge-Offs” shall have the meaning specified in subsection 4.06(c). 

“Collateral Default Amount” shall mean, with respect to any
Distribution Date, the product of the Investor Default Amount for such Distribution Date and the Collateral Floating Percentage. 

  
 5 

“Collateral Floating Percentage” shall mean, with respect to any
Distribution Date, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is equal to the Collateral Invested Amount as of the close of business on the last day of the preceding Monthly Period and
the denominator of which is the Adjusted Invested Amount as of the close of business on such last day; provided, however, that with respect to the first Monthly Period, the Collateral Floating Percentage shall mean the percentage equivalent
of a fraction, the numerator of which is the Collateral Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Collateral Initial Invested Amount” shall mean
$150,001,000. 
 “Collateral Interest” shall mean a fractional undivided interest in
the Trust which shall consist of the right to receive, (i) to the extent necessary to make the required payments to the Collateral Interest Holder under this Supplement, the portion of Collections allocable thereto under the Agreement and this
Supplement and funds on deposit in the Collection Account allocable thereto pursuant to the Agreement and this Supplement and (ii) amounts available for payment to the Collateral Interest Holder pursuant to subsections 4.07(k), 4.12(e),
4.12(f), 8.01(b), 8.02(a) and 8.02(b) or any other provision of this Supplement. 

“Collateral Interest Holder” shall mean the entity so designated in
the Transfer Agreement. 
 “Collateral Interest Shortfall” shall
have the meaning specified in subsection 4.02(c). 

“Collateral Invested Amount” shall mean, when used with respect to any
date, an amount equal to (a) the Collateral Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Collateral Interest Holder prior to such date, minus (c) the aggregate amount of
Collateral Charge-Offs for all prior Distribution Dates pursuant to subsection 4.06(c), minus (d) the aggregate amount of Reallocated Principal Collections allocated on all prior Distribution Dates pursuant to Section 4.08 allocable
to the Collateral Invested Amount, minus (e) an amount equal to the amount by which the Collateral Invested Amount has been reduced on all prior Distribution Dates pursuant to subsections 4.06(a) and (b), plus (f) the amount
allocated and available on all prior Distribution Dates pursuant to subsection 4.07(i), for the purpose of reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e), and plus (g) the principal amount of any
additional Collateral Interest issued after the Closing Date in accordance with Section 6.03(c) of the Agreement; provided, however, that the Collateral Invested Amount shall not be reduced below zero. 

“Collateral Minimum Interest Rate” shall mean the rate specified in the Transfer Agreement (as modified as
described therein); provided that for purposes of this Supplement, such rate shall not exceed 4.715% per annum. 

“Collateral Minimum Monthly Interest” shall have the meaning specified in subsection 4.02(c). 

“Collateral Principal Percentage” shall mean, with respect to any
Monthly Period, (i) during the Revolving Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Collateral Invested Amount as of the last day of the immediately preceding
Monthly Period and the denominator of which is the Invested Amount as of such day and (ii) during the Controlled Accumulation Period, the Early Amortization Period or any Partial Amortization Period, the percentage equivalent (which percentage
shall never exceed 100%) of a fraction, the numerator of which is the Collateral Invested Amount as of the close of business on the date on which the Revolving Period shall have terminated and the denominator of which is the Invested Amount as of
the close of business on the date on which the Revolving Period shall have terminated; provided, however, that with respect to the first Monthly Period, the Collateral Principal Percentage shall mean the percentage

  
 6 

 
equivalent of a fraction, the numerator of which is the Collateral Initial Invested Amount and the denominator of which is the Initial Invested Amount. 

“Collateral Senior Additional Interest” shall have the meaning
specified in subsection 4.02(d). 
 “Collateral Senior
Initial Invested Amount” shall mean $85,715,000. 

“Collateral Senior Interest Shortfall” shall have the meaning
specified in subsection 4.02(d). 
 “Collateral Senior
Invested Amount” shall mean, when used with respect to any date, an amount equal to the Collateral Senior Initial Invested Amount less the aggregate amount of principal payments distributed to the Collateral Interest
Holder in respect of the Collateral Senior Invested Amount on all prior Distribution Dates, plus the principal amount of any additional Collateral Interest issued in respect of the Collateral Senior Invested Amount after the Closing Date in
accordance with Section 6.03(c) of the Agreement. 
 “Collateral Senior Minimum Interest Rate” shall
mean the rate specified in the Transfer Agreement (as modified as described therein); provided that for purposes of this Supplement, such rate shall not exceed 3.39% per annum. 

“Collateral Senior Minimum Monthly Interest” shall have the meaning specified in subsection 4.02(d). 

“Collateral Senior Required Amount” shall have the meaning set forth in subsection 4.04(c). 

“Collateral Servicing Fee” shall have the meaning set forth in
Section 3.01. 
 “Controlled Accumulation Amount” shall mean,
for any Distribution Date with respect to the Controlled Accumulation Period, $130,357,166.67; provided, however, that, if the Controlled Accumulation Period Length is determined to be less than 12 months, the Controlled Accumulation Amount
for each Distribution Date with respect to the Controlled Accumulation Period will be equal to (i) the product of (x) the sum of the Class A Initial Invested Amount and the Class B Initial Invested Amount and (y) the
Controlled Accumulation Period Factor for the related Monthly Period divided by (ii) the Required Accumulation Factor Number. 

“Controlled Accumulation Period” shall mean, unless a Pay-Out Event shall have occurred prior thereto, the period commencing at the close of business on the last day of the February 2021 Monthly Period or such later date as is determined in accordance with subsection
4.03(c) and ending on the first to occur of (a) the commencement of the Early Amortization Period, (b) the payment in full of the Invested Amount and (c) the Expected Final Payment Date. 

“Controlled Accumulation Period Factor” shall mean,
for each Monthly Period, a fraction, the numerator of which is equal to the sum of the series invested amounts as of the last day of the prior Monthly Period of all outstanding Series, and the denominator of which is equal to the sum (without
duplication) of (a) the Series Invested Amount as of the last day of the prior Monthly Period, (b) the series invested amounts as of the last day of the prior Monthly Period of all outstanding Series (other than Series 2019-1) that are not expected to be in their revolving periods, and (c) the series invested amounts as of the last day of the prior Monthly Period of all other outstanding Series that are not Principal Sharing
Series and are in their revolving periods. 

  
 7 

“Controlled Accumulation Period Length” has the
meaning specified in subsection 4.03(c). 

“Controlled Deposit Amount” shall mean, for any Distribution Date with
respect to the Controlled Accumulation Period, an amount equal to the sum of the Controlled Accumulation Amount for such Distribution Date and any Deficit Controlled Accumulation Amount for the immediately preceding Distribution Date. 

“Covered Amount” shall mean, for any Distribution Date with respect to the Controlled
Accumulation Period or the first Special Payment Date, if such Special Payment Date occurs prior to the date the Class A Invested Amount is paid in full, an amount equal to the sum of (x) with respect to the Class A Certificates, one-twelfth of the product of (i) the Class A Certificate Rate and (ii) the Principal Funding Account Balance, if any, as of the preceding Distribution Date that is allocable to the principal of the
Class A Certificates and (y) with respect to the Class B Certificates, one-twelfth of the product of (i) the Class B Certificate Rate and (ii) the Principal Funding Account
Balance, if any, as of the preceding Distribution Date that is allocable to the principal of the Class B Certificates. 

“Deficit Controlled Accumulation Amount” shall mean
(a) on the first Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Accumulation Amount for such Distribution Date over the amount deposited in the Principal Funding Account on such
Distribution Date and (b) on each subsequent Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such subsequent Distribution Date over the amount deposited in the
Principal Funding Account on such subsequent Distribution Date. 
 “Distribution Date”
shall mean March 15, 2019, and the 15th day of each calendar month thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day. 

“Early Amortization Period” shall mean the period commencing at the
close of business on the Business Day immediately preceding the day on which a Pay-Out Event with respect to Series 2019-1 is deemed to have occurred, and ending on the
first to occur of (i) the payment in full of the Invested Amount or (ii) the Series 2019-1 Termination Date. 

“Excess Finance Charge Collections” shall mean collections of Finance Charge Receivables and certain other
amounts allocable to the Certificateholders’ Interest of any Excess Allocation Series in excess of the amounts necessary to make required payments with respect to such series (including payments to the provider of any related Series
Enhancement) that are payable out of collections of Finance Charge Receivables. 

“Excess Spread” shall mean, with respect to any Distribution Date, the sum of the
amounts, if any, specified pursuant to subsections 4.05(a)(iv), 4.05(b)(iii) and 4.05(c)(ii) with respect to such Distribution Date. 

“Expected Final Payment Date” shall mean the March
2022 Distribution Date. 
 “Finance Charge Shortfall” shall have the
meaning specified in Section 4.09. 
 “Fitch” shall mean Fitch Ratings, Inc. or its successor. 

“Floating Allocation Percentage” shall mean, with respect to any
Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is the Adjusted Invested Amount as of the last day of the preceding Monthly Period (or with respect to the first Monthly
Period, the Initial Invested Amount) and the denominator of which is the product of (x) the 

  
 8 

 
Series 2019-1 Allocation Percentage with respect to such Monthly Period and (y) the sum of (i) the total amount of Principal Receivables in the
Trust as of such day (or with respect to the first Monthly Period, the total amount of Principal Receivables in the Trust on the Closing Date) and (ii) the principal amount on deposit in the Special Funding Account as of such last day (or with
respect to the first Monthly Period, as of the Closing Date); provided, however, that with respect to any Monthly Period in which an Addition Date for an Aggregate Addition or a Removal Date occurs the amount in (y)(i) above shall be
(1) the aggregate amount of Principal Receivables in the Trust at the end of the day on the last day of the prior Monthly Period for the period from and including the first day of such Monthly Period to but excluding the related Addition Date
or Removal Date and (2) the aggregate amount of Principal Receivables in the Trust at the end of the day on the related Addition Date or Removal Date for the period from and including the related Addition Date or Removal Date to and including
the last day of such Monthly Period. 
 “Group I” shall mean Series
2019-1 and each other Series specified in the related Supplement to be included in Group I. 

“Group I Investor Additional Amounts” shall mean,
with respect to any Distribution Date, the sum of (a) Series 2019-1 Additional Amounts for such Distribution Date and (b) for all other Series included in Group I, the sum of (i) the aggregate
net amount by which the Invested Amounts of such Series have been reduced as a result of investor charge-offs, subordination of principal collections and funding the investor default amounts in respect of any Class or Series Enhancement
interests of such Series as of such Distribution Date and (ii) if the applicable Supplements so provide, the aggregate unpaid amount of interest at the applicable certificate rates that has accrued on the amounts described in the preceding
clause (i) for such Distribution Date. 
 “Group
I Investor Default Amount” shall mean, with respect to any Distribution Date, the sum of (a) the Investor Default Amount for such Distribution Date and (b) the aggregate
amount of the investor default amounts for all other Series included in Group I for such Distribution Date. 

“Group
I Investor Finance Charge Collections” shall mean, with respect to any Distribution Date, the sum of (a) Investor Finance Charge Collections for such
Distribution Date and (b) the aggregate amount of the investor finance charge collections for all other Series included in Group I for such Distribution Date. 

“Group I Investor Monthly Fees” shall mean with
respect to any Distribution Date, the sum of (a) Series 2019-1 Monthly Fees for such Distribution Date and (b) the aggregate amount of the servicing fees, investor fees, fees payable to any Series
Enhancer and any other similar fees, which are payable out of reallocated investor finance charge collections pursuant to the related Supplements, for all other Series included in Group I for such Distribution Date. 

“Group I Investor Monthly Interest” shall mean, with respect to any Distribution Date,
the sum of (a) Series 2019-1 Monthly Interest for such Distribution Date and (b) the aggregate amount of monthly interest, including overdue monthly interest and interest on such overdue monthly
interest, if such amounts are payable out of reallocated investor finance charge collections pursuant to the related Supplements, for all other Series included in Group I for such Distribution Date. 

“Initial Invested Amount” shall mean $1,714,287,000. 

“Interest Accrual Period” shall mean, with respect to any Distribution Date, the period (a) from and
including the Distribution Date immediately preceding such Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) and (b) to but excluding such Distribution Date. 

  
 9 

 “Invested Amount” shall mean, as of any date
of determination, an amount equal to the sum of (a) the Class A Invested Amount as of such date, (b) the Class B Invested Amount as of such date and (c) the Collateral Invested Amount as of such date. 

“Investment Letter” shall have the meaning specified in subsection 9.07(a). 

“Investor Charge-Offs” shall mean Class A Investor Charge-Offs, Class B
Investor Charge-Offs and Collateral Charge-Offs. 

“Investor Default Amount” shall mean, with respect to any Distribution
Date, an amount equal to the product of (a) the Series 2019-1 Allocable Defaulted Amount for the related Monthly Period and (b) the Floating Allocation Percentage for such Monthly Period. 

“Investor Finance Charge Collections” shall mean
with respect to any Distribution Date, an amount equal to the product of (a) the Floating Allocation Percentage for the related Monthly Period and (b) Series 2019-1 Allocable Finance Charge
Collections deposited in the Collection Account for the related Monthly Period. 

“Monthly Interest” shall mean, with respect to any Distribution Date, the Class A
Monthly Interest, the Class B Monthly Interest and the Collateral Minimum Monthly Interest for such Distribution Date. 

“Monthly Receivables Percentage” shall mean, for any day, the percentage equivalent of a fraction, the
numerator of which is an amount equal to the sum of the aggregate amount of Principal Receivables outstanding in the Trust attributable to the Transferor or Account Owner with respect to which an Insolvency Event or a Transfer Restriction Event has
occurred, and the denominator of which is an amount equal to the sum of the aggregate amount of Principal Receivables outstanding in the Trust, in each as of the last day of the immediately preceding Monthly Period. 

“Monthly Servicing Fee” shall have the meaning specified in subsection
3.01. 
 “Pay-Out Event” shall mean any Pay-Out Event specified in Section 6.01. 
 “Permitted Assignee”
shall mean any Person who, if it were the Collateral Interest Holder or a holder of an interest in the Trust, as applicable, would not cause the Trust to be taxable as a publicly traded partnership for federal income tax purposes. 

“Principal Allocation Percentage” shall mean, with respect to any day
during a Monthly Period, the percentage equivalent (which percentage shall never exceed 100%) of a fraction, the numerator of which is (a) during the Revolving Period, the Series Adjusted Invested Amount for Series 2019-1 as of the last day of the immediately preceding Monthly Period (or, in the case of the first Monthly Period, the Initial Invested Amount) and (b) during the Controlled Accumulation Period, the Early
Amortization Period or any Partial Amortization Period, the Series Adjusted Invested Amount for Series 2019-1 as of the close of business on the date on which the Revolving Period shall have terminated and the
denominator of which is the product of (x) the sum of (i) the total amount of Principal Receivables in the Trust as of the last day of the immediately preceding Monthly Period (or with respect to the first Monthly Period, the total amount
of Principal Receivables in the Trust as of the Closing Date) and (ii) the principal amount on deposit in the Special Funding Account as of such last day (or with respect to the first Monthly Period, the Closing Date) and (y) the Series 2019-1 Allocation Percentage as of the last day of the immediately preceding Monthly Period; provided, however, that with respect to any Monthly Period in which an Addition Date for an Aggregate Addition or a
Removal Date occurs the amount in (x)(i) above shall be (1) the aggregate amount of Principal Receivables in the Trust at the end of the day on the last day of the prior Monthly Period for the period from and including the first day of

  
 10 

 
such Monthly Period to but excluding the related Addition Date or Removal Date and (2) the aggregate amount of Principal Receivables in the Trust at the end of the day on the related
Addition Date or Removal Date for the period from and including the related Addition Date or Removal Date to and including the last day of such Monthly Period; and provided further, that if after the commencement of the Controlled
Accumulation Period a Pay-Out Event occurs with respect to another Series that was designated in the Supplement therefor as a Series that is a “Paired Series” with respect to Series 2019-1, the Transferor may, by written notice delivered to the Trustee and the Servicer, designate a different numerator for the foregoing fraction, provided that (x) such numerator is not less than the
Adjusted Invested Amount as of the last day of the revolving period for such Paired Series, (y) the Transferor shall have received written notice from each Rating Agency that the Rating Agency Condition has been satisfied with respect to such
designation and shall have delivered copies of each such written notice to the Servicer and the Trustee and (z) the Transferor shall have delivered to the Trustee an Officer’s Certificate of such Transferor to the effect that, based on the
facts known to such officer at such time, in the reasonable belief of such Transferor, such designation will not cause a Pay-Out Event or an event that, after the giving of notice or the lapse of time, would
constitute a Pay-Out Event, to occur with respect to Series 2019-1. 

“Principal Funding Account” shall have the meaning specified in
subsection 4.03(a)(i). 

“Principal Funding Account Balance” shall mean,
with respect to any date of determination during the Controlled Accumulation Period, the principal amount, if any, on deposit in the Principal Funding Account on such date of determination. 

“Principal Funding Account Investment Proceeds” shall have the meaning
specified in subsection 4.03(a)(ii). 
 “Principal Funding Account
Investment Shortfall” shall mean, with respect to each Distribution Date during the Controlled Accumulation Period, the amount, if any, by which the Principal Funding Account Investment Proceeds are less than the Covered
Amount. 

“Reallocated Investor Finance Charge 
Collections” shall mean that portion of Group I Investor Finance Charge Collections allocated to Series 2019-1 pursuant to Section 4.10. 

“Reallocated Principal Collections” shall mean, with respect to any
Monthly Period, the product of (a) the Series 2019-1 Allocable Principal Collections deposited in the Collection Account for such Monthly Period and (b) the sum of the Class B Principal
Percentage and the Collateral Principal Percentage. 
 “Reassignment Amount” shall
mean, with respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date, the sum of (i) the Adjusted Invested Amount on such Distribution Date, plus
(ii) Monthly Interest for such Distribution Date and any Monthly Interest previously due but not distributed to the Series 2019-1 Certificateholders on a prior Distribution Date, plus
(iii) the amount of Additional Interest, if any, for such Distribution Date and any Additional Interest previously due but not distributed to the Series 2019-1 Certificateholders on a prior Distribution
Date. 
 “Required Accumulation Factor Number”
shall be equal to a fraction, rounded upwards to the nearest whole number, the numerator of which is one and the denominator of which is equal to the lowest monthly principal payment rate on the Accounts, expressed as a decimal, for the three months
preceding the date of such calculation. 
 “Required Amount” shall mean, with respect
to any Monthly Period, the sum of the Class A Required Amount, the Class B Required Amount and the Collateral Senior Required Amount. 

  
 11 

“Required Reserve Account Amount” shall mean, with
respect to any Distribution Date on or after the Reserve Account Funding Date, an amount equal to (1) 0.50% of the Class A Invested Amount as of the preceding Distribution Date (after giving effect to all changes therein on such date) or
(2) any other percentage (which may be 0%) of the Class A Invested Amount designated by the Transferor, provided that if such percentage is less than the percentage specified in clause (1) above, the Transferor shall have received the
prior written consent of the Collateral Interest Holder and written notice from each Rating Agency that the Rating Agency Condition shall have been satisfied with respect to such designation and shall have delivered copies of each such written
notice to the Servicer and the Trustee. 
 “Reserve Account” shall have the meaning
specified in subsection 4.12(a). 

“Reserve Account Funding Date” shall mean the
Distribution Date which occurs not later than the earliest of (a) the Distribution Date with respect to the Monthly Period that commences not later than three months prior to the Distribution Date with respect to the first Monthly Period in the
Controlled Accumulation Period, (b) in the event that the average Excess Spread Percentage for any three consecutive Monthly Periods ending in the March 2020 Monthly Period or any Monthly Period thereafter is less than 2%, the Distribution Date
with respect to such Monthly Period, (c) in the event that the average Excess Spread Percentage for any three consecutive Monthly Periods ending in the September 2020 Monthly Period or any Monthly Period thereafter is less than 3%, the
Distribution Date with respect to such Monthly Period and (d) such earlier Distribution Date as the Transferor may determine by written notice to the Trustee and the Servicer. For this purpose, the “Excess Spread Percentage”
for any Monthly Period shall be equal to the Series Adjusted Portfolio Yield for such Monthly Period minus the Base Rate for such Monthly Period. 

“Reserve Account Surplus” shall mean, as of any date of determination,
the amount, if any, by which the amount on deposit in the Reserve Account exceeds the Required Reserve Account Amount. 

“Reserve Draw Amount” shall have the meaning specified in subsection
4.12(c). 
 “Revolving Period” shall mean the period beginning at the close of business
on the Series Cut-Off Date and ending on the earlier of (a) the close of business on the day immediately preceding the day the Controlled Accumulation Period commences and (b) the close of business
on the day immediately preceding the day the Early Amortization Period commences. 
 “Series 2019-1” shall mean the Series of Certificates the terms of which are specified in this Supplement. 

“Series 2019-1 
Additional Amounts” shall mean, with respect to any Distribution Date, the sum of the amounts determined pursuant to subsections 4.07(b), (e) and (i) for such Distribution Date. 

“Series 2019-1 
Allocable Defaulted Amount” shall mean the Series Allocable Defaulted Amount with respect to Series 2019-1. 

“Series 2019-1 
Allocable Finance Charge Collections” shall mean the Series Allocable Finance Charge Collections with respect to Series 2019-1. 

“Series 2019-1 
Allocable Principal Collections” shall mean the Series Allocable Principal Collections with respect to Series 2019-1. 

“Series 2019-1 
Allocation Percentage” shall mean the Series Allocation Percentage with respect to Series 2019-1. 

  
 12 

“Series 2019-1 Certificate”
shall mean a Class A Certificate or a Class B Certificate or the Collateral Interest. 

“Series 2019-1 
Certificateholder” shall mean a Class A Certificateholder or a Class B Certificateholder or the Collateral Interest Holder. 

“Series 2019-1 
Certificateholders’ Interest” shall mean the Certificateholders’ Interest for Series 2019-1, including the Collateral Interest. 

“Series 2019-1 
Monthly Fees” shall mean, with respect to any Distribution Date, the amount determined pursuant to subsections 4.05(a)(ii), (b)(ii) and (c)(i) and subsection 4.07(g). 

“Series 2019-1 Monthly Interest” shall mean the amounts determined
pursuant to subsections 4.02(a), (b) and (d). 

“Series 2019-1 
Principal Shortfall” shall have the meaning specified in Section 4.11. 

“Series 2019-1 
Termination Date” shall mean the October 2024 Distribution Date. 

“Series Adjusted Portfolio Yield” shall mean, with
respect to any Monthly Period, the annualized percentage equivalent of a fraction, (A) the numerator of which is equal to (a) Reallocated Investor Finance Charge Collections with respect to such Monthly Period, plus (b) the
amount of any Principal Funding Account Investment Proceeds for the related Distribution Date, plus (c) provided that each Rating Agency has consented in writing to the inclusion thereof in calculating the Series Adjusted
Portfolio Yield, any Excess Finance Charge Collections that are allocated to Series 2019-1 with respect to such Monthly Period, plus (d) the amount of funds, if any, withdrawn from the Reserve
Account which pursuant to subsection 4.12(d) are required to be deposited into the Collection Account and included as Class A Available Funds for the Distribution Date with respect to such Monthly Period, minus (e) the Investor
Default Amount for the Distribution Date with respect to such Monthly Period, and (B) the denominator of which is the Invested Amount as of the last day of the preceding Monthly Period. 

“Series Cut-Off Date” shall
mean the close of business on February 14, 2019. 

“Series Invested Amount” shall mean, on any date of determination, an
amount equal to the Initial Invested Amount plus the aggregate initial principal amount of any additional Series 2019-1 Certificates issued pursuant to Section 6.03(c) of the Agreement. 

“Series Required Transferor Amount” shall mean an
amount equal to 7% of the Invested Amount. 

“Servicing Base Amount” shall have the meaning specified in
Section 3.01. 
 “Servicing Fee Rate” shall mean 2.0% per
annum. 
 “Special Payment Date” shall mean each Distribution
Date with respect to the Early Amortization Period. 
 “Transfer” shall have the meaning specified in
subsection 9.07(a). 
 “Transfer Agreement” shall mean the Transfer and Administration Agreement, dated as
of February 14, 2019, among RFC III, as transferor, TRS, as administrator, and the American Express Credit Account Secured Note Trust 2019-1, as issuer, as the same may be amended, supplemented or
otherwise modified from time to time. 

  
 13 

 “Transferor Percentage” shall mean 100%
minus (a) the Floating Allocation Percentage, when used at any time with respect to Finance Charge Receivables and Defaulted Receivables, or (b) the Principal Allocation Percentage, when used at any time with respect to Principal
Receivables. 
 (b)        Notwithstanding anything to the contrary in this
Supplement or the Agreement, the term “Rating Agency” shall mean, whenever used in this Supplement or the Agreement with respect to Series 2019-1, Fitch and Moody’s. As
used in this Supplement and in the Agreement with respect to Series 2019-1, “highest investment category” shall mean (i) in the case of Fitch, AAA or F1+, as applicable and (ii) in the case
of Moody’s, Aaa or P-1, as applicable. 

(c)        Each capitalized term defined herein shall relate to the Series 2019-1 Certificates and no other Series of Certificates issued by the Trust, unless the context otherwise requires. All capitalized terms used herein and not otherwise defined herein have the meanings ascribed to
them in the Agreement. In the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Agreement, the terms and provisions of this Supplement shall govern. 

(d)        The words “hereof,” “herein” and “hereunder”
and words of similar import when used in this Supplement shall refer to this Supplement as a whole and not to any particular provision of this Supplement; references to any Article, subsection, Section or Exhibit are references to Articles,
subsections, Sections and Exhibits in or to this Supplement unless otherwise specified; and the term “including” means “including without limitation.” 

ARTICLE III 

Servicing Fee 

Section 3.01.        Servicing Compensation. The share
of the Servicing Fee allocable to the Series 2019-1 Certificateholders with respect to any Distribution Date (the “Monthly Servicing Fee”) shall be equal
to one-twelfth of the product of (a) the Servicing Fee Rate and (b) (i) the Adjusted Invested Amount as of the last day of the Monthly Period preceding such Distribution Date minus
(ii) the product of the amount, if any, on deposit in the Special Funding Account as of the last day of the Monthly Period preceding such Distribution Date and the Series 2019-1 Allocation Percentage with
respect to such Monthly Period (the amount calculated pursuant to this clause (b) is referred to as the “Servicing Base Amount”). The share of the Monthly Servicing Fee allocable to the
Class A Certificateholders with respect to any Distribution Date (the “Class A Servicing Fee”) shall be equal to one-twelfth of
the product of (a) the Class A Floating Percentage, (b) the Servicing Fee Rate and (c) the Servicing Base Amount. The share of the Monthly Servicing Fee allocable to the Class B Certificateholders with respect to any
Distribution Date (the “Class B Servicing Fee”) shall be equal to one-twelfth of the product of (a) the Class B Floating
Percentage, (b) the Servicing Fee Rate and (c) the Servicing Base Amount. The share of the Monthly Servicing Fee allocable to the Collateral Interest with respect to any Distribution Date (the
“Collateral Servicing Fee”) shall be equal to one-twelfth of the product of the (a) Collateral Floating Percentage, (b) the Servicing Fee Rate
and (c) the Servicing Base Amount. The remainder of the Servicing Fee shall be paid by the Holders of the Transferor Certificates or the investor certificateholders of other Series (as provided in the related Supplements) and in no event shall
the Trust, the Trustee or the Series 2019-1 Certificateholders be liable for the share of the Servicing Fee to be paid by the Holders of the Transferor Certificates or the investor certificateholders of any
other Series. To the extent that the Class A Servicing Fee, the Class B Servicing Fee and the Collateral Servicing Fee are not paid in full pursuant to the preceding provisions of this Section 3.01, and Sections 4.05 and 4.07, they
shall be paid by the Holders of the Transferor Certificates. 

  
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 ARTICLE IV 

Rights of Series 2019-1 Certificateholders and 

Allocation and Application of Collections 

Section 4.01.        Collections and 
Allocations. 
 (a)        Allocations. Collections of Finance Charge
Receivables and Principal Receivables and Defaulted Receivables allocated to Series 2019-1 pursuant to Article IV of the Agreement (and, as described herein, Collections of Finance Charge Receivables
reallocated from other Series in Group I) shall be allocated and distributed or reallocated as set forth in this Article. 

(b)        Payments to 
the Transferor. The Servicer shall on each Deposit Date withdraw from the Collection Account and pay to the Holders of the Transferor Certificates the following amounts: 

(i)        an amount equal to the Transferor Percentage for the
related Monthly Period of Series 2019-1 Allocable Finance Charge Collections to the extent such amount is deposited in the Collection Account; and 

(ii)        an amount equal to the Transferor Percentage for the
related Monthly Period of Series 2019-1 Allocable Principal Collections deposited in the Collection Account, if the Transferor Amount (determined after giving effect to any Principal Receivables transferred to
the Trust on such Deposit Date) exceeds zero. 
 The withdrawals to be made from the Collection Account pursuant to this
subsection 4.01(b) do not apply to deposits into the Collection Account that do not represent Collections, including payment of the purchase price for the Certificateholders’ Interest pursuant to Section 2.06 or 10.01 of the Agreement,
payment of the purchase price for the Series 2019-1 Certificateholders’ Interest pursuant to Section 7.01 of this Supplement and proceeds from the sale, disposition or liquidation of Receivables
pursuant to Section 9.01 or 12.02 of the Agreement. 

(c)        Allocations to 
the Series 2019-1 Certificateholders. The Servicer shall, prior to the close of business on each Deposit Date, allocate to the Series 2019-1 Certificateholders the following amounts as set forth below: 

(i)        Allocations of 
Finance Charge Collections. The Servicer shall allocate to the Series 2019-1 Certificateholders and retain in the Collection Account for application as provided herein
an amount equal to the product of (A) the Floating Allocation Percentage and (B) the Series 2019-1 Allocation Percentage and (C) the aggregate amount of Collections of Finance Charge Receivables
deposited in the Collection Account on such Deposit Date. 

(ii)        Allocations of 
Principal Collections. The Servicer shall allocate to the Series 2019-1 Certificateholders the following amounts as set forth below: 

(x)        Allocations 
During the Revolving Period. During the Revolving Period (A) an amount equal to the product of (I) the sum of the Class B Principal Percentage and the Collateral Principal
Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation Percentage and (IV) the aggregate amount of Collections of Principal Receivables deposited in the
Collection Account on such Deposit Date, shall be allocated to the Series 2019-1 Certificateholders and retained in the Collection Account until applied as provided herein and (B) an amount equal to the
product of (I) the Class A 

  
 15 

 
Principal Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation Percentage and (IV) the aggregate
amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date shall be allocated to the Series 2019-1 Certificateholders and first, if any other Principal Sharing
Series is outstanding and in its amortization period or accumulation period, retained in the Collection Account for application, to the extent necessary, as Shared Principal Collections on the related Distribution Date, and second paid to the
Holders of the Transferor Certificates; provided, however, that such amount to be paid to the Holders of the Transferor Certificates on any Deposit Date shall be paid to such Holders only if the Transferor Amount on such Deposit Date is
greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account. 

(y)        Allocations 
During the Controlled Accumulation Period. During the Controlled Accumulation Period (A) an amount equal to the product of (I) the sum of the Class B
Principal Percentage and the Collateral Principal Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation Percentage and (IV) the aggregate amount of
Collections of Principal Receivables deposited in the Collection Account on such Deposit Date, shall be allocated to the Series 2019-1 Certificateholders and retained in the Collection Account until applied as
provided herein and (B) an amount equal to the product of (I) the Class A Principal Percentage and (II) the Principal Allocation Percentage and (III) the Series 2019-1 Allocation
Percentage and (IV) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date (the product specified in this clause (B) for any such date is hereinafter referred to as a
“Percentage Allocation”) shall be allocated to the Series 2019-1 Certificateholders and retained in the Collection Account until applied as provided herein; provided,
however, that if the sum of such Percentage Allocation and all preceding Percentage Allocations with respect to the same Monthly Period exceeds the Controlled Deposit Amount during the Controlled Accumulation Period for the related Distribution
Date, then such excess shall not be treated as a Percentage Allocation and shall be first, if any other Principal Sharing Series is outstanding and in its amortization period or accumulation period, retained in the Collection Account for
application, to the extent necessary, as Shared Principal Collections on the related Distribution Date, and second paid to the Holders of the Transferor Certificates only if the Transferor Amount on such Deposit Date is greater than the Required
Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account. 

(z)        Allocations 
During the Early Amortization Period. During the Early Amortization Period, an amount equal to the product of (A) the Principal Allocation Percentage and
(B) the Series 2019-1 Allocation Percentage and (C) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date, shall be allocated to the
Series 2019-1 Certificateholders and retained in the Collection Account until applied as provided herein; provided, however, that after the date on which an amount of such Collections equal to the
Adjusted Invested Amount has been deposited into the Collection Account and allocated to the Series 2019-1 Certificateholders, the remainder that has not been so deposited and allocated shall be first, if any
other Principal Sharing Series is outstanding and in its amortization period or accumulation period, retained in the Collection Account for application, to the 

  
 16 

 
extent necessary, as Shared Principal Collections on the related Distribution Date, and second paid to the Holders of the Transferor Certificates only if the Transferor Amount on such date is
greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account. 

Section 4.02.        Determination of 
Monthly Interest. 
 (a)        The amount of monthly
interest (“Class A Monthly Interest”) distributable from the Collection Account with respect to the Class A Certificates on any Distribution Date shall be an amount equal
to one-twelfth of the product of (i) the Class A Certificate Rate and (ii) the outstanding principal balance of the Class A Certificates as of close of business on the immediately preceding
Record Date; provided that Class A Monthly Interest for the first Distribution Date shall be an amount equal to $3,707,083.33. 

On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the
“Class A Interest Shortfall”), of (x) the Class A Monthly Interest for such Distribution Date over (y) the aggregate amount of funds allocated and available to
pay such Class A Monthly Interest on such Distribution Date. If the Class A Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class A Interest Shortfall is
fully paid, an additional amount (“Class A Additional Interest”) equal to one-twelfth of the product of (i) the sum of
(x) the Class A Certificate Rate and (y) 2.0% per annum and (ii) such Class A Interest Shortfall (or the portion thereof which has not been paid to the Class A Certificateholders) shall be payable as provided herein
with respect to the Class A Certificates. Notwithstanding anything to the contrary herein, Class A Additional Interest shall be payable or distributed to the Class A Certificateholders only to the extent permitted by applicable law.

 (b)        The amount of monthly interest (“Class B
Monthly Interest”) distributable from the Collection Account with respect to the Class B Certificates on any Distribution Date shall be an amount equal to one-twelfth of the product of
(i) the Class B Certificate Rate for such Distribution Date and (ii) the Class B Invested Amount as of the close of business on the immediately preceding Record Date; provided that Class B Monthly Interest for the
first Distribution Date shall be an amount equal to $169,947.18. 
 On the Determination Date preceding each Distribution
Date, the Servicer shall determine the excess, if any (the “Class B Interest Shortfall”), of (x) the Class B Monthly Interest for such Distribution Date over
(y) the aggregate amount of funds allocated and available to pay such Class B Monthly Interest on such Distribution Date. If the Class B Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent
Distribution Date until such Class B Interest Shortfall is fully paid, an additional amount (“Class B Additional Interest”) equal to
one-twelfth of the product of (i) the sum of (x) the Class B Certificate Rate and (y) 2.0% per annum and (ii) such Class B Interest Shortfall (or the portion thereof which has
not been paid to the Class B Certificateholders) shall be payable as provided herein with respect to the Class B Certificates. Notwithstanding anything to the contrary herein, Class B Additional Interest shall be payable or
distributed to the Class B Certificateholders only to the extent permitted by applicable law. 

(c)        The amount of monthly interest (“Collateral Minimum Monthly
Interest”) distributable from the Collection Account with respect to the Collateral Invested Amount on any Distribution Date shall be an amount equal to one-twelfth of the product of (i) the
Collateral Minimum Interest Rate and (ii) the Collateral Initial Invested Amount less the aggregate amount of principal payments distributed to the Collateral Interest Holder on all prior Distribution Dates; provided, however,
that in the event the Collateral Minimum Interest Rate has been modified (as described in the definition thereof) during the period from (and including) the immediately preceding Distribution Date to (but

  
 17 

 
excluding) such Distribution Date, the rate described in (i) above shall reflect a weighted average rate calculated on the basis of the actual number of days each Collateral Minimum Interest
Rate was in effect during such period and a year of 360 days. 
 On the Determination Date preceding each Distribution
Date, the Servicer shall determine an amount (the “Collateral Interest Shortfall”) equal to (x) the aggregate Collateral Minimum Monthly Interest for such Distribution Date minus
(y) the aggregate amount of funds allocated and available to pay such Collateral Minimum Monthly Interest on such Distribution Date. If the Collateral Interest Shortfall with respect to any Distribution Date is greater than zero, on each
subsequent Distribution Date until such Collateral Interest Shortfall is fully paid, an additional amount (“Collateral Additional Interest”) shall be payable as provided herein with respect to
the Collateral Invested Amount equal to one-twelfth of the product of (i) the Collateral Minimum Interest Rate and (ii) such Collateral Interest Shortfall (or the portion thereof which has not been
paid to the Collateral Interest Holder). Notwithstanding anything to the contrary herein, Collateral Additional Interest shall be payable or distributed to the Collateral Interest Holder only to the extent permitted by applicable law. 

(d)        The amount of monthly interest (“Collateral Senior Minimum Monthly
Interest”) distributable from the Collection Account with respect to the Collateral Senior Invested Amount on any Distribution Date shall be an amount equal to one-twelfth of the product of
(i) the Collateral Senior Minimum Interest Rate and (ii) the Collateral Senior Invested Amount; provided that Collateral Senior Minimum Monthly Interest for the first Distribution Date shall be an amount equal to $250,216.37;
provided, however, that in the event the Collateral Senior Minimum Interest Rate has been modified (as described in the definition thereof) during the period from (and including) the immediately preceding Distribution Date to (but
excluding) such Distribution Date, the rate described in (i) above shall reflect a weighted average rate calculated on the basis of the actual number of days each Collateral Senior Minimum Interest Rate was in effect during such period and a
year of 360 days. 
 On the Determination Date preceding each Distribution Date, the Servicer shall determine an amount
(the “Collateral Senior Interest Shortfall”) equal to (x) the aggregate Collateral Senior Minimum Monthly Interest for such Distribution Date minus (y) the aggregate amount of
funds allocated and available to pay such Collateral Senior Minimum Monthly Interest on such Distribution Date. If the Collateral Senior Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution
Date until such Collateral Senior Interest Shortfall is fully paid, an additional amount (“Collateral Senior Additional Interest”) shall be payable as provided herein with respect to the
Collateral Senior Invested Amount equal to one-twelfth of the product of (i) the Collateral Senior Minimum Interest Rate and (ii) such Collateral Senior Interest Shortfall (or the portion thereof
which has not been paid to the Collateral Interest Holder). Notwithstanding anything to the contrary herein, Collateral Senior Additional Interest shall be payable or distributed to the Collateral Interest Holder only to the extent permitted by
applicable law. 

Section 4.03.        Principal Funding 
Account; Controlled Accumulation Period. 

(a)        (i)    The Servicer, for the benefit of the Series 2019-1 Certificateholders, shall establish and maintain in the name of the Trustee, on behalf of the Trust, an Eligible Deposit Account (the
“Principal Funding Account”), bearing a designation clearly indicating that the funds deposited therein and the property credited thereto are held for the benefit of the Series 2019-1 Certificateholders. The Principal Funding Account shall initially be established with The Bank of New York Mellon. 

(ii)        At the written direction of the Servicer (or its agent appointed pursuant
to Section 4.13(c)), funds on deposit in the Principal Funding Account shall be invested by the Trustee in Eligible Investments selected by the Servicer (or its agent appointed pursuant to Section 4.13(c)); provided, however, that
if no such written direction is provided, funds on deposit in the Principal Funding Account shall remain uninvested. All such Eligible Investments shall be held by the Trustee for the 

  
 18 

 
benefit of the Series 2019-1 Certificateholders; provided that on each Distribution Date all interest and other investment income (net of losses and
investment expenses) (“Principal Funding Account Investment Proceeds”) on funds on deposit therein shall be applied as set forth in paragraph (iii) below. Subject to the first sentence of this paragraph (a)(ii), funds on
deposit in the Principal Funding Account shall be invested in Eligible Investments that will mature so that such funds will be available at the close of business on the Transfer Date preceding the following Distribution Date. Unless the Servicer
directs otherwise, funds deposited in the Principal Funding Account on a Transfer Date (which immediately precedes a Distribution Date) upon the maturity of any Eligible Investments are not required to be invested overnight. No such Eligible
Investment shall be disposed of prior to its maturity; provided, however, that the Trustee shall sell, liquidate or dispose of any such Eligible Investment if, prior to the maturity of such Eligible Investment, a default occurs in the payment
of principal, interest or any other amount with respect to such Eligible Investment; provided further, however, that the Servicer shall deliver prompt written notice to the Trustee of any such default; and provided further that,
subject to Section 11.01 of the Agreement, the Trustee will not in any way be held liable by reason of any insufficiency in such Principal Funding Account resulting from any loss on any Eligible Investment included therein except for losses
attributable to the Trustee’s failure to make payments on such Eligible Investments issued by the Trustee, in its commercial capacity, in accordance with their terms. 

(iii)        On each Distribution Date with respect to the Controlled Accumulation
Period, the Servicer shall direct the Trustee in writing to withdraw from the Principal Funding Account and deposit into the Collection Account all Principal Funding Account Investment Proceeds then on deposit in the Principal Funding Account and
such Principal Funding Account Investment Proceeds shall be treated as a portion of Class A Available Funds and Class B Available Funds. 

(iv)        Reinvested interest and other investment income on funds deposited in the
Principal Funding Account shall not be considered to be principal amounts on deposit therein for purposes of this Supplement. 

(b)        (i)    The Trustee shall possess all right, title and
interest in all funds and property from time to time deposited in or credited to the Principal Funding Account and in all proceeds thereof. The Principal Funding Account shall be under the sole dominion and control of the Trustee for the benefit of
the Series 2019-1 Certificateholders. If, at any time, the Principal Funding Account ceases to be an Eligible Deposit Account, the Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such
longer period, not to exceed 30 calendar days, as to which each Rating Agency may consent) establish a new Principal Funding Account meeting the conditions specified in paragraph (a)(i) above as an Eligible Deposit Account and shall transfer any
cash or any investments to such new Principal Funding Account. 

(ii)        Pursuant to the authority granted to the Servicer in subsection 3.01(b)
of the Agreement, the Servicer shall have the power to make withdrawals and payments or to instruct the Trustee to make withdrawals and payments from the Principal Funding Account for the purposes of carrying out the Servicer’s or
Trustee’s duties hereunder. Pursuant to the authority granted to the Paying Agent in Section 5.01 of this Supplement and Section 6.07 of the Agreement, the Paying Agent shall have the power to withdraw funds from the Principal Funding
Account for the purpose of making distributions to the Series 2019-1 Certificateholders. 

(c)        The Controlled Accumulation Period is scheduled to commence at the close
of business on the last day of the February 2021 Monthly Period; provided, however, that if the Controlled Accumulation Period Length (which shall be determined as described below) is less than 12 months, the date on which the Controlled
Accumulation Period actually commences will be delayed to the close of business on the last day of the month preceding the month that is the number of months prior to the Expected Final Payment Date at least equal to the Controlled Accumulation
Period Length and, as a result, the number of Monthly Periods in the Controlled Accumulation Period will at least equal the 

  
 19 

 
Controlled Accumulation Period Length. On the Determination Date immediately preceding the February 2021 Distribution Date, and on each Determination Date thereafter that occurs prior to the
Determination Date occurring in the Monthly Period in which the Controlled Accumulation Period commences, the Servicer will determine the
“Controlled Accumulation Period Length” which will equal the number of months such that the sum of the Controlled Accumulation Period Factors for each month during such period
will be equal to or greater than the Required Accumulation Factor Number; provided, however, that the Controlled Accumulation Period Length shall not be less than one month. Notwithstanding the foregoing, if the Controlled Accumulation Period
Length shall have been determined to be less than 12 months and, after the date on which such determination is made, a Pay-Out Event or Reinvestment Event (as those terms are defined in the Supplement for such
Series) shall occur with respect to any outstanding Principal Sharing Series other than Series 2019-1, the Controlled Accumulation Period will commence on the earlier of (i) the first day of the Monthly
Period immediately succeeding the date that such Pay-Out Event or Reinvestment Event shall have occurred with respect to such Series and (ii) the date on which the Controlled Accumulation Period is then
scheduled to commence. 

Section 4.04.        Required Amount. 

(a)        With respect to each Distribution Date, on the related Determination Date,
the Servicer shall determine the amount (the “Class A Required Amount”), if any, by which (x) the sum of (i) Class A Monthly Interest for such Distribution
Date, (ii) any Class A Monthly Interest previously due but not paid to the Class A Certificateholders on a prior Distribution Date, (iii) any Class A Additional Interest for such Distribution Date and (iv) any
Class A Additional Interest previously due but not paid to the Class A Certificateholders on a prior Distribution Date, (v) if TRS or an Affiliate of TRS is no longer the Servicer, the Class A Servicing Fee for such Distribution
Date, (vi) if TRS or an Affiliate of TRS is no longer the Servicer, any Class A Servicing Fee previously due but not paid to the Servicer, and (vii) the Class A Investor Default Amount, if any, for such Distribution Date exceeds
(y) the Class A Available Funds. In the event that the difference between (x) the Class A Required Amount for such Distribution Date and (y) the amount of Excess Spread and Excess Finance Charge Collections applied with
respect thereto pursuant to subsection 4.07(a) on such Distribution Date is greater than zero, the Servicer shall give written notice to the Transferor and the Trustee of such excess Class A Required Amount on the date of computation. 

(b)        With respect to each Distribution Date, on the related Determination Date,
the Servicer shall determine the amount (the “Class B Required Amount”), if any, equal to the sum of (x) the amount, if any, by which (A) the sum of
(i) Class B Monthly Interest for such Distribution Date, (ii) any Class B Monthly Interest previously due but not paid to the Class B Certificateholders, (iii) Class B Additional Interest, if any, for such
Distribution Date, (iv) any Class B Additional Interest previously due but not paid to the Class B Certificateholders on a prior Distribution Date, (v) if TRS or an Affiliate of TRS is no longer the Servicer, the Class B
Servicing Fee for such Distribution Date and (vi) if TRS or an Affiliate of TRS is no longer the Servicer, any Class B Servicing Fee previously due but not paid to the Servicer exceeds (B) the Class B Available Funds and
(y) the Class B Investor Default Amount for such Distribution Date. In the event that the difference between (x) the Class B Required Amount for such Distribution Date and (y) the amount of Excess Spread and Excess Finance
Charge Collections applied with respect thereto pursuant to subsection 4.07(d) on such Distribution Date is greater than zero, the Servicer shall give written notice to the Transferor and the Trustee of such excess Class B Required Amount on
the date of computation. 
 (c)        With respect to each Distribution Date, on
the related Determination Date, the Servicer shall determine the amount (the “Collateral Senior Required Amount”), if any, by which (x) the sum of (i) if TRS or an Affiliate of TRS is no longer the Servicer, the Collateral
Servicing Fee for such Distribution Date, (ii) if TRS or an Affiliate of TRS is no longer the Servicer, any Collateral Servicing Fee previously due but not paid to the Servicer, (iii) Collateral Senior Minimum Monthly Interest for such
Distribution Date, (iv) any Collateral Senior Minimum Monthly Interest previously due but not 

  
 20 

 
distributed to the Collateral Interest Holder on a prior Distribution Date, (v) Collateral Senior Additional Interest, if any, for such Distribution Date, and (vi) any Collateral Senior
Additional Interest previously due but not distributed to the Collateral Interest Holder on a prior Distribution Date exceeds (y) the sum of (A) the amount of Collateral Available Funds to be applied under Section 4.05(c)(i) on such
Distribution Date and (B) the amount of Excess Spread and Excess Finance Charge Collections available to be applied pursuant to subsection 4.07(f) on such Distribution Date. In the event that the Collateral Senior Required Amount is greater
than zero, the Servicer shall give written notice to the Transferor and the Trustee of such Collateral Senior Required Amount on the date of computation. 

Section 4.05.        Application of Class A Available
Funds, Class B Available Funds, Collateral Available Funds and Available Principal Collections. The Servicer shall apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in the form of
Exhibit B, on each Distribution Date, Class A Available Funds, Class B Available Funds, Collateral Available Funds and Available Principal Collections on deposit in the Collection Account with respect to such Distribution Date to make the
following distributions: 
 (a)        On each Distribution Date, an amount equal
to the Class A Available Funds with respect to such Distribution Date will be distributed or deposited in the following priority: 

(i)        an amount equal to Class A Monthly Interest for such
Distribution Date, plus the amount of any Class A Monthly Interest previously due but not distributed to Class A Certificateholders on a prior Distribution Date, plus the amount of any Class A Additional Interest for
such Distribution Date and any Class A Additional Interest previously due but not distributed to Class A Certificateholders on a prior Distribution Date, shall be distributed to the Paying Agent for payment to the Class A
Certificateholders; 
 (ii)        if TRS or an Affiliate of TRS is
no longer the Servicer, an amount equal to the Class A Servicing Fee for such Distribution Date, plus the amount of any Class A Servicing Fee previously due but not distributed to the Servicer on a prior Distribution Date, shall be
distributed to the Servicer; 
 (iii)        an amount equal to the
Class A Investor Default Amount for such Distribution Date shall be treated as a portion of Available Principal Collections for such Distribution Date; and 

(iv)        the balance, if any, shall constitute Excess Spread and
shall be allocated and distributed or deposited as set forth in Section 4.07. 

(b)        On each Distribution Date, an amount equal to the Class B Available
Funds with respect to such Distribution Date will be distributed or deposited in the following priority: 

(i)        an amount equal to Class B Monthly Interest for such
Distribution Date, plus the amount of any Class B Monthly Interest previously due but not distributed to Class B Certificateholders on a prior Distribution Date, plus the amount of any Class B Additional Interest for
such Distribution Date and any Class B Additional Interest previously due but not distributed to Class B Certificateholders on a prior Distribution Date, shall be distributed to the Paying Agent for payment to the Class B
Certificateholders; 
 (ii)        if TRS or an Affiliate of TRS is
no longer the Servicer, an amount equal to the Class B Servicing Fee for such Distribution Date, plus the amount of any Class B 

  
 21 

 
Servicing Fee previously due but not distributed to the Servicer on a prior Distribution Date, shall be distributed to the Servicer; and 

(iii)        the balance, if any, shall constitute Excess Spread and
shall be allocated and distributed or deposited as set forth in Section 4.07. 

(c)        On each Distribution Date, an amount equal to the Collateral Available
Funds with respect to such Distribution Date will be distributed or deposited in the following priority: 

(i)        if TRS or an Affiliate of TRS is no longer the Servicer,
an amount equal to the Collateral Servicing Fee for such Distribution Date, plus the amount of any Collateral Servicing Fee previously due but not distributed to the Servicer on a prior Distribution Date, shall be distributed to the Servicer;
and 
 (ii)        the balance, if any, shall constitute Excess
Spread and shall be allocated and distributed or deposited as set forth in Section 4.07. 

(d)        On each Distribution Date with respect to the Revolving Period, an amount
equal to the Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be treated as Shared Principal Collections and applied in accordance with Section 4.04 of the Agreement. 

(e)        On each Distribution Date with respect to the Controlled Accumulation
Period, an amount equal to the Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be distributed in the following order of priority: 

(i)        an amount equal to the lesser of (x) the Controlled
Deposit Amount and (y) the sum of the Class A Adjusted Invested Amount and the Class B Adjusted Invested Amount shall be deposited in the Principal Funding Account; 

(ii)        for each Distribution Date beginning on the Distribution
Date on which the Class B Invested Amount shall have been paid in full, an amount up to the Collateral Invested Amount shall be distributed to the Collateral Interest Holder; and 

(iii)        the balance of such Available Principal Collections
shall be treated as Shared Principal Collections and applied in accordance with Section 4.04 of the Agreement. 

(f)        On each Distribution Date with respect to the Early Amortization Period,
an amount equal to Available Principal Collections deposited in the Collection Account for the related Monthly Period shall be distributed or deposited in the following order of priority: 

(i)        an amount up to the Class A Adjusted Invested Amount
on such Distribution Date shall be deposited in the Principal Funding Account for distribution to the Class A Certificateholders; 

(ii)        for each Distribution Date beginning on the Distribution
Date on which the Class A Invested Amount is paid in full, an amount up to the Class B Adjusted Invested Amount on such Distribution Date shall be deposited in the Principal Funding Account for distribution to the Class B
Certificateholders; 
 (iii)        for each Distribution Date
beginning on the Distribution Date on which the Class B Invested Amount is paid in full, an amount up to the Collateral Invested 

  
 22 

 
Amount on such Distribution Date shall be distributed to the Collateral Interest Holder; and 

(iv)        for each Distribution Date, after giving effect to
paragraphs (i), (ii) and (iii) above, an amount equal to the balance, if any, of such Available Principal Collections will be treated as Shared Principal Collections and applied in accordance with Section 4.04 of the Agreement. 

Section 4.06.        Defaulted Amounts; 
Investor Charge-Offs. 
 (a)        On each Determination
Date, the Servicer shall calculate the Class A Investor Default Amount, if any, for the related Distribution Date. If, on any Distribution Date, the Class A Required Amount for the related Monthly Period exceeds the sum of (x) the
amount of Reallocated Principal Collections allocated to Series 2019-1 with respect to such Monthly Period and (y) the amount of Excess Spread and the Excess Finance Charge Collections allocable to Series
2019-1 with respect to such Monthly Period, the Collateral Invested Amount, if any, will be reduced by the amount of such excess, but not by more than the Class A Investor Default Amount for such
Distribution Date. In the event that such reduction would cause the Collateral Invested Amount to be a negative number, the Collateral Invested Amount will be reduced to zero and the Class B Invested Amount shall be reduced by the amount by
which the Collateral Invested Amount would have been reduced below zero, but not by more than the excess, if any, of the Class A Investor Default Amount for such Distribution Date over the amount of such reduction, if any, of the Collateral
Invested Amount with respect to such Distribution Date. In the event that such reduction would cause the Class B Invested Amount to be a negative number, the Class B Invested Amount shall be reduced to zero, and the Class A Invested
Amount shall be reduced by the amount by which the Class B Invested Amount would have been reduced below zero, but not by more than the excess, if any, of the Class A Investor Default Amount for such Distribution Date over the aggregate
amount of the reductions, if any, of the Collateral Invested Amount and the Class B Invested Amount for such Distribution Date (a
“Class A Investor Charge-Off”). Class A Investor Charge-Offs shall thereafter be reimbursed and the Class A Invested Amount
increased (but not by an amount in excess of the aggregate unreimbursed Class A Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread and Excess Finance Charge Collections allocated and available for that purpose
pursuant to subsection 4.07(b). References to “negative numbers” above shall be determined without regard to the requirement that the Invested Amount of a Class not be reduced below zero. 

(b)        On each Determination Date, the Servicer shall calculate the Class B
Investor Default Amount, if any, for the related Distribution Date. If, on any Distribution Date, the Class B Required Amount for such Distribution Date exceeds the sum of (x) the amount of Excess Spread and Excess Finance Charge
Collections allocated to Series 2019-1 with respect to the related Monthly Period which are allocated and available to pay such amount pursuant to subsection 4.07(d) and (y) the Reallocated Principal
Collections allocable to the Collateral Interest and not required to pay the Class A Required Amount with respect to such Distribution Date, then the Collateral Invested Amount shall be reduced by the amount of such excess. In the event that
such reduction would cause the Collateral Invested Amount to be a negative number, the Collateral Invested Amount shall be reduced to zero, and the Class B Invested Amount shall be reduced by the amount by which the Collateral Invested Amount
would have been reduced below zero, but not by more than the excess, if any, of the Class B Investor Default Amount for such Distribution Date over the amount of such reduction, if any, of the Collateral Invested Amount with respect to such
Distribution Date (a “Class B Investor Charge-Off”). Class B Investor Charge-Offs shall thereafter be reimbursed and the
Class B Invested Amount increased (but not by an amount in excess of the aggregate unreimbursed Class B Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread and Excess Finance Charge Collections allocated and
available for that purpose pursuant to subsection 4.07(e). References to “negative numbers” above shall be determined without regard to the requirement that the Invested Amount of a Class not be reduced below zero. 

  
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 (c)        On each Determination Date,
the Servicer shall calculate the Collateral Default Amount. If on any Distribution Date the Collateral Default Amount for the previous Monthly Period exceeds the amount of Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 with respect to the related Monthly Period which are allocated and available to pay such amount pursuant to subsection 4.07(h), the Collateral Invested Amount will be reduced by the amount of such excess but
not by more than the lesser of the Collateral Default Amount and the Collateral Invested Amount for such Distribution Date (a “Collateral Charge-Off”). The Collateral
Invested Amount will be reimbursed after any reduction pursuant to this Section 4.06 on any Distribution Date by the amount of Excess Spread and Excess Finance Charge Collections allocated and available on such Distribution date for that
purpose as described under subsection 4.07(i). 

Section 4.07.        Excess Spread; 
Excess Finance Charge Collections. The Servicer shall apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in the form of Exhibit B, on each
Distribution Date, Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 with respect to the related Monthly Period, to make the following distributions or deposits in the following
order of priority: 
 (a)        an amount equal to the Class A Required
Amount, if any, with respect to such Distribution Date shall be distributed by the Trustee to fund the Class A Required Amount in accordance with, and in the priority set forth in, subsections 4.05(a)(i), (ii) and (iii); 

(b)        an amount equal to the aggregate amount of Class A Investor
Charge-Offs which have not been previously reimbursed shall be treated as a portion of Available Principal Collections for such Distribution Date; 

(c)        an amount equal to interest on the aggregate outstanding principal balance
of the Class B Certificates not otherwise distributed to the Class B Certificateholders pursuant to Section 4.05(b)(i), at a rate per annum equal to the Class B Certificate Rate, shall be distributed to the Class B
Certificateholders, except that interest previously due but not paid will accrue interest at a rate per annum equal to the Class B Certificate Rate plus 2% per annum; 

(d)        an amount equal to the Class B Required Amount, if any, with respect
to such Distribution Date will be (i) used to fund the Class B Required Amount and be applied in accordance with subsections 4.05(b)(i) and 4.05(b)(ii), and then (ii) an amount up to the Class B Investor Default Amount
will be treated and applied as Available Principal Collections for such Distribution Date; 

(e)        an amount equal to the aggregate amount by which the Class B Invested
Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition of “Class B Invested Amount” in Section 2.01 of this Supplement (but not in excess of the aggregate amount of such reductions which have not been
previously reimbursed) shall be treated as a portion of Available Principal Collections for such Distribution Date; 

(f)        an amount equal to Collateral Senior Minimum Monthly Interest for such
Distribution Date, plus the amount of any Collateral Senior Minimum Monthly Interest previously due but not distributed to the Collateral Interest Holder on a prior Distribution Date, plus the amount of any Collateral Senior Additional
Interest for such Distribution Date and any Collateral Senior Additional Interest previously due but not distributed to the Collateral Interest Holder on a prior Distribution Date, shall be distributed to the Collateral Interest Holder; 

(g)        an amount equal to the Monthly Servicing Fee for such Distribution Date
that has not been paid to the Servicer and any Monthly Servicing Fee due but not paid to the Servicer on a prior Distribution Date shall be paid to the Servicer; 

  
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 (h)        an amount equal to the
Collateral Default Amount, if any, for such Distribution Date shall be treated as a portion of Available Principal Collections for such Distribution Date; 

(i)        an amount equal to the aggregate amount by which the Collateral Invested
Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition of “Collateral Invested Amount” (but not in excess of the aggregate amount of such reductions which have not been previously reimbursed) shall be treated
as a portion of Available Principal Collections for such Distribution Date; 

(j)        on each Distribution Date from and after the Reserve Account Funding Date,
but prior to the date on which the Reserve Account terminates pursuant to subsection 4.12(f), an amount up to the excess, if any, of the Required Reserve Account Amount over the Available Reserve Account Amount shall be deposited into the Reserve
Account; and 
 (k)        the balance, if any, will be distributed to the
Collateral Interest Holder. 

Section 4.08.        Reallocated 
Principal Collections. On each Distribution Date, the Servicer shall apply, or shall cause the Trustee to apply by written instruction to the Trustee substantially in the form of Exhibit B, Reallocated Principal Collections
with respect to such Distribution Date, to make the following distributions or deposits in the following order of priority: 

(a)        an amount equal to the excess, if any, of (i) the Class A
Required Amount, if any, with respect to such Distribution Date over (ii) the amount of Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 with respect to the related Monthly
Period shall be distributed by the Trustee to fund any deficiency pursuant to and in the priority set forth in subsections 4.05(a)(i), (ii) and (iii); 

(b)        an amount equal to the excess, if any, of (i) the Class B
Required Amount, if any, with respect to such Distribution Date over (ii) the amount of Excess Spread and Excess Finance Charge Collections allocated and available to the Class B Certificates pursuant to subsections 4.07(c) and (d) on
such Distribution Date shall be applied first to fund any deficiency pursuant to subsections 4.05(b)(i) and (ii) and then to fund any deficiency pursuant to and in the priority set forth in subsections 4.07(c) and (d); and 

(c)        an amount equal to the Collateral Senior Required Amount, if any, with
respect to such Distribution Date shall be applied to fund any deficiency pursuant to subsection 4.05(c)(i) and subsection 4.07(f), in that order of priority; provided, however, that Reallocated Principal Collections shall only be
applied pursuant to this subsection 4.08(c) to the extent the Collateral Invested Amount shall be no lower than the Collateral Senior Invested Amount after giving effect to the related reduction in the Collateral Invested Amount. 

All Reallocated Principal Collections with respect to the Collateral Invested Amount shall be applied prior to applying any
such Reallocated Principal Collections with respect to the Class B Invested Amount. Only Reallocated Principal Collections with respect to the Collateral Invested Amount shall be applied pursuant to clauses (b) or (c) above. 

On each Distribution Date, the Collateral Invested Amount shall be reduced by the amount of Reallocated Principal Collections
for such Distribution Date; provided, however, that the Collateral Invested Amount shall not be reduced below the Collateral Senior Invested Amount in connection with the application of Reallocated Principal Collections pursuant to
subsection 4.08(c). In the event that such reduction would cause the Collateral Invested Amount (after giving effect to any Collateral Charge-Offs for such Distribution Date) to be a negative number, the Collateral Invested Amount (after giving
effect to any Collateral Charge-Offs for such Distribution Date) shall be reduced to zero and the Class B Invested Amount shall be reduced by the amount by which the Collateral Invested 

  
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Amount would have been reduced below zero. In the event that the reallocation of Reallocated Principal Collections would cause the Class B Invested Amount (after giving effect to any
Class B Investor Charge-Offs for such Distribution Date) to be a negative number on any Distribution Date, Reallocated Principal Collections shall be reallocated on such Distribution Date in an aggregate amount not to exceed the amount which
would cause the Class B Invested Amount (after giving effect to any Class B Investor Charge-Offs for such Distribution Date) to be reduced to zero. References to “negative numbers” above shall be determined without regard to the
requirement that the Invested Amount of a Class not be reduced below zero. 

Section 4.09.        Excess Finance 
Charge Collections. Series 2019-1 shall be an Excess Allocation Series. Subject to Section 4.05 of the Agreement, Excess Finance Charge Collections with respect to the Excess
Allocation Series for any Distribution Date will be allocated to Series 2019-1 in an amount equal to the product of (x) the aggregate amount of Excess Finance Charge Collections with respect to all the
Excess Allocation Series for such Distribution Date and (y) a fraction, the numerator of which is the Finance Charge Shortfall for Series 2019-1 for such Distribution Date and the denominator of which is
the aggregate amount of Finance Charge Shortfalls for all the Excess Allocation Series for such Distribution Date. The “Finance Charge Shortfall” for Series
2019-1 for any Distribution Date will be equal to the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to subsections 4.05(a), 4.05(b) and 4.05(c) and subsections
4.07(a) through (j) on such Distribution Date and the full amount required to be paid, without duplication, pursuant to subsections 3.02(a)(iii) and 3.02(a)(iv) of the Transfer Agreement on the related Payment Date (as such term is defined in
the Transfer Agreement) over (b) the sum of (i) the Reallocated Investor Finance Charge Collections, (ii) if such Monthly Period relates to a Distribution Date with respect to the Controlled Accumulation Period or Early Amortization
Period, the amount of Principal Funding Account Investment Proceeds, if any, with respect to such Distribution Date and (iii) the amount of funds, if any, to be withdrawn from the Reserve Account which, pursuant to subsection 4.12(d), are
required to be included in Class A Available Funds with respect to such Distribution Date. The amount of Excess Finance Charge Collections for Series 2019-1 for any Distribution Date shall be specified in
subsection 3.02(a)(v) of the Transfer Agreement. On each Distribution Date, the Trustee shall deposit into the Collection Account for application in accordance with Section 4.05 of the Agreement the aggregate amount of Excess Finance Charge
Collections received by the Trustee pursuant to the Transfer Agreement on such date. 

Section 4.10.        Reallocated 
Investor Finance Charge Collections. 

(a)        That portion of Group I Investor Finance Charge Collections for any
Distribution Date equal to the amount of Reallocated Investor Finance Charge Collections for such Distribution Date will be allocated to Series 2019-1 and will be distributed as set forth in this Supplement.

 (b)        Reallocated Investor Finance Charge Collections with respect to any
Distribution Date shall equal the sum of (i) the aggregate amount of Series 2019-1 Monthly Interest, Investor Default Amount, Series 2019-1 Monthly Fees and Series 2019-1 Additional Amounts for such Distribution Date and (ii) that portion of excess Group I Investor Finance Charge Collections to be included in Reallocated Investor Finance Charge Collections pursuant to
subsection (c) hereof; provided, however, that if the amount of Group I Investor Finance Charge Collections for such Distribution Date is less than the sum of (w) Group I Investor Monthly Interest, (x) Group I Investor Default
Amount, (y) Group I Investor Monthly Fees and (z) Group I Investor Additional Amounts, then Reallocated Investor Finance Charge Collections shall equal the sum of the following amounts for such Distribution Date: 

(A)        The product of (I) Group I Investor Finance Charge
Collections (up to the amount of Group I Investor Monthly Interest) and (II) a fraction, the numerator of which is Series 2019-1 Monthly Interest and the denominator of which is Group I Investor Monthly
Interest; 

  
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 (B)        the product
of (I) Group I Investor Finance Charge Collections less the amount of Group I Investor Monthly Interest (up to the Group I Investor Default Amount) and (II) a fraction, the numerator of which is the Investor Default Amount and the
denominator of which is the Group I Investor Default Amount; 

(C)        the product of (I) Group I Investor Finance Charge
Collections less the amount of Group I Investor Monthly Interest and the Group I Investor Default Amount (up to Group I Investor Monthly Fees) and (II) a fraction, the numerator of which is Series 2019-1
Monthly Fees and the denominator of which is Group I Investor Monthly Fees; and 

(D)        the product of (I) Group I Investor Finance Charge
Collections less the sum of (i) Group I Investor Monthly Interest, (ii) the Group I Investor Default Amount and (iii) Group I Investor Monthly Fees and (II) a fraction, the numerator of which is Series 2019-1 Additional Amounts and the denominator of which is Group I Investor Additional Amounts. 

(c)        If the amount of Group I Investor Finance Charge Collections for such
Distribution Date exceeds the sum of (i) Group I Investor Monthly Interest, (ii) Group I Investor Default Amount, (iii) Group I Investor Monthly Fees and (iv) Group I Investor Additional Amounts, then Reallocated Investor Finance
Charge Collections for such Distribution Date shall include an amount equal to the product of (x) the amount of such excess and (y) a fraction, the numerator of which is the Invested Amount as of the last day of the second preceding
Monthly Period (or, for Series 2019-1 only, with respect to the first Distribution Date, as of the Closing Date) and the denominator of which is the sum of such Invested Amount and the aggregate invested
amounts for all other Series included in Group I as of such last day (or, for Series 2019-1 only, with respect to the first Distribution Date, as of the Closing Date). 

Section 4.11.        Shared Principal 
Collections. Subject to Section 4.04 of the Agreement, Shared Principal Collections for any Distribution Date will be allocated to Series 2019-1 in an amount equal to the product of (x) the
aggregate amount of Shared Principal Collections with respect to all Principal Sharing Series for such Distribution Date and (y) a fraction, the numerator of which is the Series 2019-1 Principal Shortfall
for such Distribution Date and the denominator of which is the aggregate amount of Principal Shortfalls for all the Series which are Principal Sharing Series for such Distribution Date. The
“Series 2019-1 Principal Shortfall” will be equal to (a) for any Distribution Date with respect to the Revolving Period, zero,
(b) for any Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount with respect to such Distribution Date over the amount of Available Principal Collections for such
Distribution Date (excluding any portion thereof attributable to Shared Principal Collections), and (c) for any Distribution Date with respect to the Early Amortization Period, the excess, if any, of the Invested Amount over the amount of
Available Principal Collections for such Distribution Date (excluding any portion thereof attributable to Shared Principal Collections). 

Section 4.12.        Reserve Account. 

(a)        The Servicer shall establish and maintain, in the name of the Trustee, on
behalf of the Trust, for the benefit of the Series 2019-1 Certificateholders, an Eligible Deposit Account (the “Reserve Account”) bearing a designation clearly indicating
that the funds deposited therein and the property credited thereto are held for the benefit of the Series 2019-1 Certificateholders. The Reserve Account shall initially be established with The Bank of New York
Mellon. The Trustee shall possess all right, title and interest in all funds and property from time to time deposited in or credited to the Reserve Account and in all proceeds thereof. The Reserve Account shall be under the sole dominion and control
of the Trustee for the benefit of the Series 2019-1 Certificateholders. If at any time the Reserve Account 

  
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ceases to be an Eligible Deposit Account, the Trustee (or the Servicer on its behalf) shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which each Rating
Agency shall consent) establish a new Reserve Account meeting the conditions specified above as an Eligible Deposit Account, and shall transfer any cash or any investments to such new Reserve Account. The Trustee, at the direction of the Servicer,
shall (i) make withdrawals from the Reserve Account from time to time in an amount up to the Available Reserve Account Amount at such time, for the purposes set forth in this Supplement, and (ii) on each Distribution Date (from and after
the Reserve Account Funding Date) prior to the termination of the Reserve Account make a deposit into the Reserve Account in the amount specified in, and otherwise in accordance with, subsection 4.07(j). 

(b)        Funds on deposit in the Reserve Account shall be invested at the written
direction of the Servicer (or its agent appointed pursuant to Section 4.13(c)) by the Trustee in Eligible Investments; provided, however, that if no such written direction is provided, funds on deposit in the Reserve Account shall remain
uninvested. Subject to the immediately preceding sentence, funds on deposit in the Reserve Account on any Transfer Date, after giving effect to any withdrawals from the Reserve Account on such Transfer Date, shall be invested in such investments
that will mature so that such funds will be available for withdrawal on or prior to the following Transfer Date. No such Eligible Investment shall be disposed of prior to its maturity; provided, however, that the Trustee shall sell, liquidate
or dispose of any such Eligible Investment if, prior to the maturity of such Eligible Investment, a default occurs in the payment of principal, interest or any other amount with respect to such Eligible Investment; provided further, however,
that the Servicer shall deliver prompt written notice to the Trustee of any such default; and provided further that, subject to Section 11.01 of the Agreement, the Trustee will not in any way be held liable by reason of any insufficiency
in such Reserve Account resulting from any loss on any Eligible Investment included therein except for losses attributable to the Trustee’s failure to make payments on such Eligible Investments issued by the Trustee, in its commercial capacity,
in accordance with their terms. On each Distribution Date, all interest and earnings (net of losses and investment expenses) accrued since the preceding Distribution Date on funds on deposit in the Reserve Account shall be retained in the Reserve
Account (to the extent that the Available Reserve Account Amount is less than the Required Reserve Account Amount) and the balance, if any, shall be deposited in the Collection Account and treated as collections of Finance Charge Receivables
allocable to Series 2019-1. For purposes of determining the availability of funds or the balance in the Reserve Account for any reason under this Supplement, except as otherwise provided in the preceding
sentence, investment earnings on such funds shall be deemed not to be available or on deposit. 

(c)        On the Determination Date preceding each Distribution Date with respect to
the Controlled Accumulation Period and the first Special Payment Date, the Servicer shall calculate the “Reserve Draw Amount” which shall be equal to the excess, if any, of the Covered Amount
with respect to such Distribution Date or Special Payment Date over the Principal Funding Account Investment Proceeds with respect to such Distribution Date or Special Payment Date; provided, that such amount will be reduced to the extent
that funds otherwise would be available for deposit in the Reserve Account under subsection 4.07(j) with respect to such Distribution Date or Special Payment Date. 

(d)        In the event that for any Distribution Date the Reserve Draw Amount is
greater than zero, the Reserve Draw Amount, up to the Available Reserve Account Amount, shall be withdrawn from the Reserve Account on the related Transfer Date by the Trustee (acting in accordance with the instructions of the Servicer), deposited
into the Collection Account and included in Class A Available Funds for such Distribution Date. 

(e)        In the event that the Reserve Account Surplus on any Distribution Date,
after giving effect to all deposits to and withdrawals from the Reserve Account with respect to such Distribution Date, is greater than zero, the Trustee, acting in accordance with the written instructions of the Servicer, shall withdraw from the
Reserve Account, and distribute to the Collateral Interest Holder, an amount equal to such Reserve Account Surplus. 

  
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 (f)        Upon the earliest to occur of
(i) the day on which the Invested Amount is paid in full to the Series 2019-1 Certificateholders, (ii) if the Controlled Accumulation Period has not commenced, the occurrence of a Pay-Out Event with respect to Series 2019-1, (iii) if the Controlled Accumulation Period has commenced, the earlier of the first Special Payment Date and the Expected Final
Payment Date and (iv) the termination of the Trust pursuant to the Agreement, the Trustee, acting in accordance with the instructions of the Servicer, after the prior payment of all amounts owing to the Class A Certificateholders which are
payable from the Reserve Account as provided herein, shall withdraw from the Reserve Account and pay to the Collateral Interest Holder all amounts, if any, on deposit in the Reserve Account and the Reserve Account shall be deemed to have terminated
for purposes of this Supplement. 

Section 4.13.        Investment Instructions. 

(a)        Any investment instructions required to be given to the Trustee pursuant
to the terms hereof must be given to the Trustee no later than 10:30 a.m. (New York City time) on the date such investment is to be made. In the event the Trustee receives such investment instruction later than such time, the Trustee may, but shall
have no obligation to, make such investment. In the event the Trustee is unable to make an investment required in an investment instruction received by the Trustee after 10:30 a.m. (New York City time) on such day, such investment shall be made by
the Trustee on the next succeeding Business Day. In no event shall the Trustee be liable for any investment not made pursuant to investment instructions received after 10:30 a.m. (New York City time) on the day such investment is requested to be
made. 
 (b)        The Trustee shall hold each Eligible Investment that
constitutes investment property through a securities intermediary, which securities intermediary shall agree with the Trustee that (i) such investment property at all times shall be credited to a securities account of the Trustee, (ii) all
property credited to such securities account shall be treated as a financial asset, (iii) such securities intermediary shall treat the Trustee as entitled to exercise the rights that comprise each financial asset credited to such securities
account, (iv) such securities intermediary shall comply with entitlement orders originated by the Trustee without the further consent of any other person or entity, (v) such securities intermediary shall not agree with any person or entity
other than the Trustee to comply with entitlement orders originated by any person or entity other than the Trustee, (vi) such securities account and all property credited thereto shall not be subject to any lien, security interest, right of set-off, or encumbrance in favor of such securities intermediary or anyone claiming through such securities intermediary (other than the Trustee), (vii) such agreement between such securities intermediary and the
Trustee shall be governed by the laws of the State of New York, and (viii) such securities intermediary’s jurisdiction for purposes of the Uniform Commercial Code shall be the State of New York. The Trustee shall maintain possession of
each other Eligible Investment in the State of New York, separate and apart from all other property held by the Trustee. Notwithstanding any other provision of this Supplement, the Trustee shall not hold any Eligible Investment through an agent
except as expressly permitted by this Section 4.13(b). Each term used in this Section 4.13(b) and defined in the New York Uniform Commercial Code shall have the meaning set forth in the New York Uniform Commercial Code. 

(c)        With respect to investments made by the Trustee pursuant to the terms
hereof, the Servicer may appoint as its agent under a separate agreement a registered investment advisor and authorize such agent to give instructions, which may be provided to the Trustee through S.W.I.F.T., on behalf of the Servicer to the Trustee
for funds to be invested and reinvested in one or more Eligible Investments. The Servicer shall provide the Trustee with a written direction certifying any such appointment. The Trustee shall be entitled to conclusively rely on, and shall be
protected in acting upon, instructions, which may be provided to the Trustee through S.W.I.F.T., received from such agent on behalf of the Servicer. 

Section 4.14.        [Reserved]. 

  
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 ARTICLE V 

Distributions and Reports to 

Series 2019-1 Certificateholders 

Section 5.01.        Distributions. 

(a)        On each Distribution Date, the Paying Agent shall distribute to each
Class A Certificateholder of record on the related Record Date (other than as provided in Section 12.02 of the Agreement) such Class A Certificateholder’s pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay interest on the Class A Certificates pursuant to this Supplement. 

(b)        On each Special Payment Date and on the Expected Final Payment Date, the
Paying Agent shall distribute (in accordance with the Certificate delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each Class A Certificateholder of record on the related Record Date (other than as provided in
Section 12.02 of the Agreement) such Class A Certificateholder’s pro rata share of the amounts on deposit in the Principal Funding Account or otherwise held by the Paying Agent that are allocated and available on such date to
pay principal of the Class A Certificates pursuant to this Supplement up to a maximum amount on any such date equal to the Class A Invested Amount on such date (unless there has been an optional repurchase of the Series 2019-1 Certificateholders’ Interest pursuant to Section 10.01 of the Agreement, in which event the foregoing limitation will not apply). 

(c)        On each Distribution Date, the Paying Agent shall distribute (in
accordance with the Certificate delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each Class B Certificateholder of record on the related Record Date (other than as provided in Section 12.02 of the Agreement)
such Class B Certificateholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class B Certificates pursuant to this Supplement. 

(d)        On each Special Payment Date, and on the Expected Final Payment Date, the
Paying Agent shall distribute (in accordance with the Certificate delivered by the Servicer pursuant to Section 3.04(b) of the Agreement) to each Class B Certificateholder of record on the related Record Date (other than as provided in
Section 12.02 of the Agreement) such Class B Certificateholder’s pro rata share of the amounts on deposit in the Principal Funding Account or otherwise held by the Paying Agent that are allocated and available on such date to
pay principal of the Class B Certificates pursuant to this Supplement up to a maximum amount on any such date equal to the Class B Invested Amount on such date (unless there has been an optional repurchase of the Series 2019-1 Certificateholders’ Interest pursuant to Section 10.01 of the Agreement, in which event the foregoing limitation will not apply). 

(e)        On each Distribution Date, the Trustee shall distribute to the Collateral
Interest Holder the aggregate amount payable to the Collateral Interest Holder pursuant to Sections 4.05, 4.07, 4.12, 8.01 and 8.02 to the Collateral Interest Holder’s account, as specified in writing by the Collateral Interest Holder, in
immediately available funds. 
 (f)        The distributions to be made pursuant to
this Section 5.01 are subject to the provisions of Sections 2.06, 9.02, 10.01 and 12.02 of the Agreement and Sections 8.01 and 8.02 of this Supplement. 

(g)        Except as provided in Section 12.02 of the Agreement with respect to
a final distribution, distributions to Series 2019-1 Certificateholders hereunder shall be made by check mailed to each Series 2019-1 Certificateholder at such Series 2019-1 Certificateholder’s address appearing in the Certificate Register without presentation or surrender of any Series 2019-1 Certificate or the making of

  
 30 

 
any notation thereon; provided, however, that with respect to Series 2019-1 Certificates registered in the name of a Clearing Agency, such
distributions shall be made to such Clearing Agency in immediately available funds. 

(h)        The distributions to be made pursuant to this Section 5.01 are to be
made pursuant to the written instructions of the Servicer substantially in the form of Exhibit B. 

Section 5.02.        Reports and 
Statements to Series 2019-1 Certificateholders. 

(a)        On each Distribution Date, the Paying Agent, on behalf of the Trustee,
shall make available, and shall forward to each Series 2019-1 Certificateholder upon request, a statement substantially in the form of Exhibit C-1 to this
Supplement prepared by the Servicer and delivered to the Paying Agent. 

(b)        Not later than each Determination Date, the Servicer shall deliver to the
Trustee, the Paying Agent, the Transferor, each Rating Agency and the Collateral Interest Holder (i) a statement substantially in the form of Exhibit C-1 to this Supplement prepared by the Servicer and
(ii) a certificate of a Servicing Officer substantially in the form of Exhibit D. 

(c)        A copy of each statement or certificate provided pursuant to paragraph
(a) or (b) may be obtained by any Series 2019-1 Certificateholder or any Certificate Owner thereof by a request in writing to the Servicer. 

(d)        On or before January 31 of each calendar year, beginning with
calendar year 2020, the Paying Agent, on behalf of the Trustee, shall furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Series 2019-1 Certificateholder, a
statement substantially in the form of Exhibit C-2 to this Supplement to the extent prepared by the Servicer and delivered to the Paying Agent for such calendar year or the applicable portion thereof
during which such Person was a Series 2019-1 Certificateholder, together with such information as is required to be provided by a paying agent under the Code (including Forms 1099 and other customary tax
reporting information) and, to the extent prepared by the Servicer and delivered to the Paying Agent, such other information as is required to be provided by an issuer of indebtedness under the Code. The obligations of the Servicer and Paying Agent
to prepare and deliver the statement substantially in the form of Exhibit C-2 to this Supplement shall be deemed to have been satisfied to the extent that substantially comparable information shall be
provided by the Paying Agent pursuant to any requirements of the Code as from time to time in effect. 
 ARTICLE VI 

Pay-Out Events 

Section 6.01.        
Pay-Out Events. If any one of the following events shall occur with respect to the Series 2019-1 Certificates: 

(a)        the occurrence of an Insolvency Event relating to the Transferor or other
holder of the Original Transferor Certificate; 
 (b)        the Trust becomes an
investment company within the meaning of the Investment Company Act; 

(c)        failure on the part of the Transferor (i) to make any payment or
deposit required by the terms of the Agreement or this Supplement on or before the date occurring five Business Days after the date such payment or deposit is required to be made therein or herein or (ii) duly to observe or

  
 31 

 
perform any other covenants or agreements of the Transferor set forth in the Agreement or this Supplement, which failure has a material adverse effect on the Series
2019-1 Certificateholders and which continues unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to such
Transferor by the Trustee, or to the Transferor and the Trustee by any Holder of the Series 2019-1 Certificates; 

(d)        any representation or warranty made by the Transferor in the Agreement or
this Supplement, or any information contained in a computer file or microfiche list required to be delivered by the Transferor pursuant to Section 2.01 or subsection 2.08(f) of the Agreement shall prove to have been incorrect in any material
respect when made or when delivered, which continues to be incorrect in any material respect for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to such Transferor
by the Trustee, or to such Transferor and the Trustee by any Holder of the Series 2019-1 Certificates and as a result of which the interests of the Series 2019-1
Certificateholders are materially and adversely affected for such period; provided, however, that a Pay-Out Event pursuant to this subsection 6.01(d) shall not be deemed to have occurred hereunder if
the Transferor has accepted reassignment of the related Receivable, or all of such Receivables, if applicable, during such period (or such longer period not to exceed an additional 60 days as the Trustee may specify) in accordance with the
provisions of the Agreement; 
 (e)        a failure by the Transferor to convey
Receivables in Additional Accounts or Participation Interests to the Trust within five Business Days after the day on which it is required to convey such Receivables or Participation Interests pursuant to subsection 2.09(a) of the Agreement; 

(f)        any Servicer Default which would have an Adverse Effect shall occur; 

(g)        the average Series Adjusted Portfolio Yield for any three consecutive
Monthly Periods is reduced to a rate which is less than the average of the Base Rates for such period; 

(h)        the Class A Invested Amount, the Class B Invested Amount or the
Collateral Invested Amount shall not be paid in full on the Expected Final Payment Date; 

(i)        a Transfer Restriction Event shall occur; 

(j)    the occurrence of an Insolvency Event as defined in the Receivables Purchase Agreement relating to the Account
Owner; or 
 (k)     a Transfer Restriction Event as defined in the Receivables Purchase Agreements shall occur between
the Account Owner and the related Transferor; 
 then, (A) in the case of any event described in subparagraph (c), (d) or (f), after
the applicable grace period, if any, set forth in such subparagraphs, either the Trustee or the Investor Certificateholders of this Series evidencing more than 50% of the aggregate unpaid principal amount of the Investor Certificates of this Series
by notice then given in writing to the Transferor and the Servicer (and to the Trustee if given by the Investor Certificateholders of this Series) may declare that a Pay-Out Event has occurred with respect to
this Series as of the date of such notice; (B) in the case of any event described in subparagraph (b), (e), (g) or (h), a Pay-Out Event shall occur with respect to this Series without any notice or other
action on the part of the Trustee or the Investor Certificateholders of this Series immediately upon the occurrence of such event; and (C) in the case of any event described in subparagraph (a), (i), (j) or (k), a
Pay-Out Event shall occur with respect to this Series without any notice or other action on the part of the Trustee or the Investor Certificateholders of this Series immediately upon the occurrence of such
event (or, in the case of clause (y) below, immediately following the expiration of the 60-day grace period), but only to the extent that (x) as of the date of such event, the average of the Monthly
Receivables Percentage for the immediately preceding three Monthly Periods is equal to or greater than 10% or (y) as of the date 

  
 32 

 
of such event, the average of the Monthly Receivables Percentage for the immediately preceding three Monthly Periods is less than 10%, and within 60 days following the occurrence of the related
Insolvency Event or Transfer Restriction Event, the aggregate amount of Principal Receivables outstanding in the Trust does not at least equal the Required Minimum Principal Balance (without giving effect to Principal Receivables attributable to the
Transferor or the Account Owner with respect to which the Insolvency Event or the Transfer Restriction Event has occurred). 
 ARTICLE VII

 Optional Repurchase; Series Termination 

Section 7.01.        Optional Repurchase. 

(a)        So long as the Transferor is the Servicer or an Affiliate of the Servicer,
on any day occurring on or after the date on which the Invested Amount is reduced to 5% or less of the Initial Invested Amount, such Transferor shall have the option to purchase the Series 2019-1
Certificateholders’ Interest, at a purchase price equal to (i) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for the
Distribution Date following such day. If, on the date on which the Transferor exercises such option, the long-term unsecured debt obligations of such Transferor purchasing the Series 2019-1
Certificateholders’ Interest is not rated at least in the third highest rating category by the Rating Agency, such Transferor shall deliver to the Trustee, with a copy to the Rating Agency, an Officer’s Certificate of such Transferor which
shall have attached to it the relevant fraudulent conveyance statute, if any, and set forth the factual basis for a conclusion that the exercise of such optional repurchase would not constitute a fraudulent conveyance of such Transferor. 

(b)        The Transferor shall give the Servicer and the Trustee at least 30 days
prior written notice of the date on which the Transferor intends to exercise such purchase option. Not later than 12:00 noon, New York City time, on such day the Transferor shall deposit the Reassignment Amount into the Collection Account in
immediately available funds. Such purchase option is subject to payment in full of the Reassignment Amount. Following the deposit of the Reassignment Amount into the Collection Amount in accordance with the foregoing, the Invested Amount for Series 2019-1 shall be reduced to zero and the Series 2019-1 Certificateholders shall have no further interest in the Receivables. The Reassignment Amount shall be distributed as set
forth in subsection 8.01(b). 

Section 7.02.        Series Termination. 

(a)        If, on the August 2024 Distribution Date, the Invested Amount (after
giving effect to all changes therein on such date) would be greater than zero, the Servicer, on behalf of the Trustee, shall, within the 40-day period which begins on such Distribution Date, solicit bids for
the sale of Principal Receivables and the related Finance Charge Receivables (or interests therein) in an amount equal to the Invested Amount at the close of business on the last day of the Monthly Period preceding the Series 2019-1 Termination Date (after giving effect to all distributions required to be made on the Series 2019-1 Termination Date, except pursuant to this Section 7.02). Such
bids shall require that such sale shall (subject to subsection 7.02(b)) occur on the Series 2019-1 Termination Date. The Transferor, any Affiliate thereof, any agent thereof or any other party consolidated
with such Transferor for purposes of United States generally accepted accounting principles shall not be entitled to participate in such bidding process or to purchase the Receivables; provided, however, that, to the extent the
Collateral Interest Holder is not the Transferor, an Affiliate thereof, an agent thereof or any other party consolidated with the Transferor for purposes of United States generally accepted accounting principles, the Collateral Interest Holder may
participate in such bidding process. 

  
 33 

 (b)        The Servicer, on behalf of
the Trustee, shall sell such Receivables (or interests therein) on the Series 2019-1 Termination Date to the bidder who made the highest cash purchase offer. The proceeds of any such sale shall be treated as
Collections on the Receivables allocated to the Series 2019-1 Certificateholders pursuant to the Agreement and this Supplement; provided, however, that the Servicer shall determine conclusively the
amount of such proceeds which are allocable to Finance Charge Receivables and the amount of such proceeds which are allocable to Principal Receivables. During the period from the August 2024 Distribution Date to the Series 2019-1 Termination Date, the Servicer shall continue to collect payments on the Receivables and allocate and deposit such Collections in accordance with the provisions of the Agreement and the Supplements. 

ARTICLE VIII 

Final Distributions 

Section 8.01.         Sale of Receivables or Certificateholders’
Interest pursuant to Section 2.06 or 10.01 of the Agreement and Section 7.01 or 7.02 of this Supplement. 

(a)        (i)        The amount to be paid
by the Transferor with respect to Series 2019-1 in connection with a reassignment of Receivables to the Transferor pursuant to Section 2.06 of the Agreement shall equal the Reassignment Amount for the
first Distribution Date following the Monthly Period in which the reassignment obligation arises under the Agreement. 

(ii)        The amount to be paid by the Transferor with respect to
Series 2019-1 in connection with a repurchase of the Certificateholders’ Interest pursuant to Section 10.01 of the Agreement shall equal the sum of (x) the Reassignment Amount for the
Distribution Date of such repurchase and (y) the sum of (A) the excess, if any, of (I) a price equivalent to the average of bids quoted on the Record Date preceding the date of repurchase or, if not a Business Day, on the next
succeeding Business Day by at least two recognized dealers selected by the Trustee for the purchase by such dealers of a security which is similar to the Class A Certificates with a remaining maturity approximately equal to the remaining
maturity of the Class A Certificates and rated by each Rating Agency in the rating category originally assigned to the Class A Certificates over (II) the portion of the Reassignment Amount attributable to the Class A Certificates
and (B) the excess, if any, of (I) a price equivalent to the average of bids quoted on such Record Date, or if not a Business Day, on the next succeeding Business Day by at least two recognized dealers selected by the Trustee for the
purchase by such dealers of a security which is similar to the Class B Certificates with a remaining maturity approximately equal to the remaining maturity of the Class B Certificates and rated by each Rating Agency in the rating category
originally assigned to the Class B Certificates over (II) the portion of the Reassignment Amount attributable to the Class B Certificates. 

(b)        With respect to the Reassignment Amount deposited into the Collection
Account pursuant to Section 7.01 or any amounts allocable to the Series 2019-1 Certificateholders’ Interest deposited into the Collection Account pursuant to Section 7.02, the Trustee shall, in
accordance with the written direction of the Servicer, not later than 12:00 noon, New York City time, on the related Distribution Date, make deposits or distributions of the following amounts (in the priority set forth below and, in each case after
giving effect to any deposits and distributions otherwise to be made on such date) in immediately available funds: (i) (x) the Class A Invested Amount on such Distribution Date will be distributed to the Paying Agent for payment to the
Class A Certificateholders and (y) an amount equal to the sum of (A) Class A Monthly Interest for such Distribution Date, (B) any Class A Monthly Interest previously due but not distributed to the Class A
Certificateholders on a prior Distribution Date and (C) the amount of Class A Additional Interest, if any, for such Distribution Date and any Class A Additional 

  
 34 

 
Interest previously due but not distributed to the Class A Certificateholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to the Class A
Certificateholders, (ii) (x) the Class B Invested Amount on such Distribution Date will be distributed to the Paying Agent for payment to the Class B Certificateholders and (y) an amount equal to the sum of (A) Class B
Monthly Interest for such Distribution Date, (B) any Class B Monthly Interest previously due but not distributed to the Class B Certificateholders on a prior Distribution Date and (C) the amount of Class B Additional
Interest, if any, for such Distribution Date and any Class B Additional Interest previously due but not distributed to the Class B Certificateholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to
the Class B Certificateholders and (iii) the balance, if any, will be distributed to the Collateral Interest Holder. 

(c)        Notwithstanding anything to the contrary in this Supplement or the
Agreement, all amounts distributed to the Paying Agent pursuant to subsection 8.01(b) for payment to the Series 2019-1 Certificateholders shall be deemed distributed in full to the Series 2019-1 Certificateholders on the date on which such funds are distributed to the Paying Agent pursuant to this Section and shall be deemed to be a final distribution pursuant to Section 12.02 of the Agreement.

 Section 8.02.        Distribution of Proceeds of Sale, Disposition or
Liquidation of the Receivables pursuant to Section 9.01 of the Agreement. 

(a)        Not later than 12:00 noon, New York City time, on the Distribution Date
following the date on which the Insolvency Proceeds are deposited into the Collection Account pursuant to subsection 9.01(b) of the Agreement, the Trustee shall in accordance with the written direction of the Servicer (in the following priority and,
in each case, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date) (i) deduct an amount equal to the Class A Invested Amount on such Distribution Date from the portion of the Insolvency
Proceeds allocated to Series 2019-1 Allocable Principal Collections and distribute such amount to the Paying Agent for payment to the Class A Certificateholders, provided that the amount of such
distribution shall not exceed the product of (x) the portion of the Insolvency Proceeds allocated to Series 2019-1 Allocable Principal Collections and (y) the Principal Allocation Percentage with
respect to the related Monthly Period, (ii) deduct an amount equal to the Class B Invested Amount on such Distribution Date from the portion of the Insolvency Proceeds allocated to Series 2019-1
Allocable Principal Collections and distribute such amount to the Paying Agent for payment to the Class B Certificateholders, provided that the amount of such distribution shall not exceed (x) the product of (A) the portion of such
Insolvency Proceeds allocated to Series 2019-1 Allocable Principal Collections and (B) the Principal Allocation Percentage with respect to the related Monthly Period minus (y) the amount
distributed to the Paying Agent pursuant to clause (i) of this sentence and (iii) distribute the remaining amount of the Insolvency Proceeds to the Collateral Interest Holder. 

(b)        Not later than 12:00 noon, New York City time, on such Distribution Date,
the Trustee shall in accordance with the written direction of the Servicer (in the following priority and, in each case, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date) (i) deduct an amount
equal to the sum of (w) Class A Monthly Interest for such Distribution Date, (x) any Class A Monthly Interest previously due but not distributed to the Class A Certificateholders on a prior Distribution Date and (y) the
amount of Class A Additional Interest, if any, for such Distribution Date and any Class A Additional Interest previously due but not distributed to the Class A Certificateholders on a prior Distribution Date from the portion of the
Insolvency Proceeds allocated to Collections of Finance Charge Receivables and distribute such amount to the Paying Agent for payment to the Class A Certificateholders, provided that the amount of such distribution shall not exceed the product
of (x) the portion of the Insolvency Proceeds allocated to Series 2019-1 Allocable Finance Charge Collections, (y) the Floating Allocation Percentage with respect to the related Monthly Period and
(z) the Class A Floating Percentage with respect to such Monthly Period and (ii) deduct an amount equal to the sum of (w) Class B Monthly Interest for such Distribution Date, (x) Class B Monthly Interest

  
 35 

 
previously due but not distributed to the Class B Certificateholders on a prior Distribution Date and (y) the amount of Class B Additional Interest, if any, for such Distribution
Date and any Class B Additional Interest previously due but not distributed to the Class B Certificateholders on a prior Distribution Date from the portion of the Insolvency Proceeds allocated to Series
2019-1 Allocable Finance Charge Collections and distribute such amount to the Paying Agent for payment to the Class B Certificateholders, provided that the amount of such distribution shall not exceed the
product of (x) the portion of the Insolvency Proceeds allocated to Series 2019-1 Allocable Finance Charge Collections, (y) the Floating Allocation Percentage with respect to the related Monthly
Period and (z) the Class B Floating Percentage with respect to such Monthly Period. To the extent that the product of (A) the portion of the Insolvency Proceeds allocated to Series 2019-1
Allocable Finance Charge Collections and (B) the Floating Allocation Percentage with respect to the related Monthly Period exceeds the aggregate amount distributed to the Paying Agent pursuant to the preceding sentence, the excess shall be
distributed to the Collateral Interest Holder. 
 (c)        Notwithstanding
anything to the contrary in this Supplement or the Agreement, all amounts distributed to the Paying Agent pursuant to this Section for payment to the Series 2019-1 Certificateholders shall be distributed in
full to the Series 2019-1 Certificateholders on the date on which funds are distributed to the Paying Agent pursuant to this Section and shall be deemed to be a final distribution pursuant to
Section 12.02 of the Agreement. 
 ARTICLE IX 

Miscellaneous Provisions 

Section 9.01.        Ratification of 
Agreement. As supplemented by this Supplement, the Agreement is in all respects ratified and confirmed and the Agreement as so supplemented by this Supplement shall be read, taken and construed as one and the same instrument. 

Section 9.02.        Counterparts. This Supplement may be executed in two
or more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 

Section 9.03.        Governing Law. THIS SUPPLEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

Section 9.04.        [Reserved]. 

Section 9.05.        FATCA Matters. Each Certificate Owner and Series 2019-1 Certificateholder, by the purchase of a Certificate or its acceptance of a beneficial interest therein, acknowledges that interest on the Certificates will be treated as United States source interest, and, as
such, United States withholding tax may apply. Each such Certificate Owner and Series 2019-1 Certificateholder further agrees, upon request, to provide any certifications that may be required under applicable
law, regulations or procedures to evidence such status and understands that if it ceases to satisfy the foregoing requirements or provide requested documentation, payments to it under the Certificates may be subject to United States withholding tax
(without any corresponding gross-up). Without limiting the foregoing, if a payment made under this Supplement would be subject to United States federal withholding tax imposed by FATCA if the recipient of such
payment were to fail to comply with FATCA (including the requirements of Code Sections 1471(b) or 1472(b), as applicable), such recipient shall deliver to the Transferor and the Trustee, at the time or times prescribed by the Code and at such time
or times reasonably requested by the Transferor or the Trustee, such documentation prescribed by the Code (including as prescribed by Code Section 1471(b)(3)(C)(i)) and such additional documentation reasonably requested by the Transferor or the
Trustee to comply with their respective obligations under FATCA, to determine that such recipient has complied with such recipient’s obligations under FATCA, or to determine the amount to deduct and withhold from such payment. In addition, the
Transferor shall deliver to the Trustee, at the time or times prescribed by the Code and at such time or times reasonably requested by the Trustee, such documentation prescribed by the Code (including as prescribed by Code
Section 1471(b)(3)(C)(i)) and such additional 

  
 36 

 
documentation reasonably requested by the Trustee to comply with its obligations under FATCA, and the Transferor understands that failure to provide such documentation may result in payments
being subject to United States withholding tax. The Trustee shall be entitled to deduct withholding tax imposed pursuant to FATCA, and shall have no obligation to gross up any payment or to pay any additional amount as a result of such withholding
tax. For these purposes, “FATCA” means Section 1471 through 1474 of the Code and any regulations or official interpretations thereof (including any revenue ruling, revenue procedure, notice or similar guidance issued by the U.S.
Internal Revenue Service thereunder as a precondition to relief or exemption from taxes under such Sections, regulations and interpretations), any agreements entered into pursuant to Code Section 1471(b)(1), and including any amendments made to
FATCA after the date of this Supplement. 

Section 9.06.        Uncertificated Securities. The Collateral Interest
shall be delivered in uncertificated form. 

Section 9.07.        Transfers of the Collateral Interest. 

(a)        Unless otherwise consented to by the Transferor, no portion of the
Collateral Interest or any interest therein may be sold, conveyed, assigned, hypothecated, pledged, participated, exchanged or otherwise transferred (each, a “Transfer”) except in accordance with this Section 9.07 and only to a
Permitted Assignee. Any attempted or purported transfer, assignment, exchange, conveyance, pledge, hypothecation or grant other than to a Permitted Assignee shall be void. Unless otherwise consented to by the Transferor, no portion of the Collateral
Interest or any interest therein may be Transferred to any Person (each such Person acquiring the Collateral Interest or any interest therein, an “Assignee”) unless such Assignee shall have executed and delivered to the Transferor
on or before the effective date of any Transfer a letter substantially in the form attached hereto as Exhibit E (an “Investment Letter”), executed by such Assignee, with respect to the related Transfer to such Assignee of all
or a portion of the Collateral Interest. 
 (b)        Each Assignee will certify
that the Collateral Interest or the interest therein purchased by such Assignee will be acquired for investment only and not with a view to any public distribution thereof, and that such Assignee will not offer to sell or otherwise dispose of the
Collateral Interest or any interest therein so acquired by it in violation of any of the registration requirements of the Securities Act, or any applicable state or other securities laws. Each Assignee will acknowledge and agree that (i) it has
no right to require the Transferor to register under the Securities Act or any other securities law the Collateral Interest or the interest therein to be acquired by the Assignee and (ii) the sale of the Collateral Interest is not being made by
means of the prospectus prepared in connection with the sale of the Series 2019-1 Certificates. Each Assignee will agree with the Transferor that: (a) such Assignee will deliver to the Transferor an
Investment Letter and (b) all of the statements made by such Assignee in its Investment Letter shall be true and correct as of the date made. 

(c)        No portion of the Collateral Interest or any interest therein may be
Transferred to, and each Assignee will certify that it is not, (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA and subject to Title I of ERISA), (b) any “plan” (as defined in and subject to
Section 4975 of the Code) including individual retirement accounts and Keogh plans, or (c) any other entity whose underlying assets include “plan assets” (within the meaning of U.S. Department of Labor Regulation Section 2510.3-101, 29 C.F.R. § 2510.3-101, as modified by Section 3(42) of ERISA) by reason of a plan’s investment in the entity, including, without
limitation, an insurance company general account. 

  
 37 

 [The signature page follows this page.] 

  
 38 

 IN WITNESS WHEREOF, the undersigned have caused this Supplement to be duly
executed and delivered by their respective duly authorized officers on the day and year first above written. 
  

			
	AMERICAN EXPRESS RECEIVABLES
		 	 FINANCING CORPORATION III LLC,

as Transferor

		
	By:	 	  

		 	Name:
		 	Title:
	
	AMERICAN EXPRESS TRAVEL RELATED
		 	 SERVICES COMPANY, INC.,
 as
Servicer

		
	By:  	 	  

		 	Name:
		 	Title:
	
	THE BANK OF NEW YORK MELLON,
		 	as Trustee
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature page – Series 2019-1 Supplement] 

					
		  	FORM OF CLASS A CERTIFICATE	  	EXHIBIT A-1

  

			
		
	REGISTERED	  	$                1/
		
	No. R-            	  	CUSIP No. 02588Q AB4

 Unless this Class A Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC”), to American Express Receivables Financing Corporation III LLC or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS A 2.87% ASSET BACKED CERTIFICATE 

Expected Final Payment Date: 
 The
March 2022 Distribution Date 
 Each $100,000 minimum denomination represents a 

1/15,000ths undivided interest 
 in
Class A of the 
 AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2019-1 

Evidencing an undivided interest in certain assets of a trust, the corpus of which consists primarily of an interest in receivables generated
from time to time in the ordinary course of business in a portfolio of credit and charge accounts serviced by 
 AMERICAN EXPRESS TRAVEL
RELATED SERVICES COMPANY, INC., 
 and other assets and interests constituting Trust Assets under the Fourth Amended and Restated Pooling
and Servicing Agreement referred to below. 
 (Not an interest in or obligation of American Express Travel Related Services
Company, Inc., American Express National Bank, American Express Receivables Financing Corporation III LLC, or any of their respective affiliates) 

This certifies that CEDE & CO. (the “Class A Certificateholder”) is the registered owner of a
fractional undivided interest in certain assets of a trust (the “Trust”) created pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise
amended and supplemented, the “Agreement”), as supplemented by the Series 2019-1 Supplement, dated as of February 14, 2019 (as amended and supplemented, the
“Supplement”), among 
  
  

	1 /	 Denominations of $100,000 and integral multiples of $1,000 in excess thereof. 

  
 A-1-1 

 
American Express Receivables Financing Corporation III LLC, as transferor (the “Transferor”), American Express Travel Related Services Company, Inc., as servicer, and The Bank of
New York Mellon, a New York banking corporation, as trustee (the “Trustee”). The corpus of the Trust consists of (i) the Transferor’s ownership interest in a portfolio of receivables (the “Receivables”)
existing in credit and charge accounts identified under the Agreement from time to time (the “Accounts”), (ii) all Receivables generated under the Accounts from time to time thereafter, (iii) funds collected or to be collected
from cardmembers in respect of the Receivables, (iv) all funds which are from time to time on deposit in the Collection Account, the Special Funding Account and any other Series Accounts and (v) all other assets and interests constituting
the Trust. The Holder of this Certificate is entitled to the benefits of the subordination of the Class B Certificates and the Collateral Interest to the extent provided in the Supplement. Although a summary of certain provisions of the
Agreement and the Supplement is set forth below and in the Summary of Terms and Conditions attached hereto and made a part hereof, this Class A Certificate does not purport to summarize the Agreement and the Supplement and reference is made to
the Agreement and the Supplement for information with respect to the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights, duties and obligations of the Trustee. A copy of the Agreement and the Supplement
(without schedules) may be requested from the Trustee by writing to the Trustee at the Corporate Trust Office. To the extent not defined herein, the capitalized terms used herein have the meanings ascribed to them in the Agreement or the Supplement,
as applicable. 
 This Class A Certificate is issued under and is subject to the terms, provisions and conditions of
the Agreement and the Supplement, to which Agreement and Supplement, each as amended and supplemented from time to time, the Class A Certificateholder by virtue of the acceptance hereof assents and is bound. 

It is the intent of the Transferor and the Class A Certificateholder that, for federal, state and local income and
franchise tax purposes, the Class A Certificates will qualify as indebtedness of the Transferor secured by the Receivables. The Class A Certificateholder, by the acceptance of this Class A Certificate, agrees to treat this
Class A Certificate for federal, state and local income and franchise tax purposes as debt of the Transferor. 
 In
general, payments of principal with respect to the Class A Certificates are limited to the Class A Invested Amount, which may be less than the unpaid principal balance of the Class A Certificates. The Expected Final Payment Date is
the March 2022 Distribution Date, but principal with respect to the Class A Certificates may be paid earlier or later under certain circumstances described in the Agreement and the Supplement. If for one or more months during the Controlled
Accumulation Period there are not sufficient funds to pay the Controlled Deposit Amount, then to the extent that excess funds are not available on subsequent Distribution Dates with respect to the Controlled Accumulation Period to make up for such
shortfalls, the final payment of principal of the Class A Certificates will occur later than the Expected Final Payment Date. 

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee, by manual signature, this
Class A Certificate shall not be entitled to any benefit under the Agreement or the Supplement or be valid for any purpose. 

  
 A-1-2 

 IN WITNESS WHEREOF, the Transferor has caused this Class A Certificate to be duly executed.

  

			
	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC
		
	By:	 	  

		 	 Name:
 Title:

 Dated: February 14, 2019 

  
 A-1-3 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the American Express Credit Account Master Trust Series 2019-1 Class A
Certificates described in the within-mentioned Agreement and Supplement. 
  

			
	 THE BANK OF NEW YORK MELLON,

as Trustee

		
	 By:
	 	  

		 	 Authorized Signatory

		
		 	 or

		
	 By:
	 	  

		 	 as Authenticating Agent

for the Trustee

		
	 By:
	 	  

		 	 Authorized Signatory

  
 A-1-4 

 AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS A 2.87% ASSET BACKED CERTIFICATE 

Summary of Terms and Conditions 

The Receivables consist of Principal Receivables which arise generally from the purchase of goods and services and amounts
advanced to cardmembers as cash advances and Finance Charge Receivables. This Class A Certificate is one of a Series of Certificates entitled American Express Credit Account Master Trust, Series 2019-1
(the “Series 2019-1 Certificates”), and one of a class thereof entitled Class A Series 2019-1 2.87% Asset Backed Certificates (the
“Class A Certificates”), each of which represents a fractional, undivided interest in certain assets of the Trust. The assets of the Trust are allocated in part to the investor certificateholders of all
outstanding Series (the “Certificateholders’ Interest”) with the remainder allocated to the Holders of the Transferor Certificates. The aggregate interest represented by the Class A Certificates at any time in the
Principal Receivables in the Trust shall not exceed an amount equal to the Class A Invested Amount at such time. The Class A Initial Invested Amount is $1,500,000,000. The Class A Invested Amount on any date will be an amount equal to
(a) the Class A Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class A Certificateholder on or prior to such date, minus (c) the excess, if any, of the aggregate
amount of Class A Investor Charge-Offs for all prior Distribution Dates over Class A Investor Charge-Offs reimbursed pursuant to subsection 4.07(b) of the Supplement prior to such date. 

Subject to the terms and conditions of the Agreement, the Transferor may, from time to time, direct the Trustee, on behalf of
the Trust, to issue one or more new Series of Investor Certificates, which will represent fractional, undivided interests in certain of the Trust Assets. 

On each Distribution Date, the Paying Agent shall distribute to each Class A Certificateholder of record on the last day
of the preceding calendar month (each a “Record Date”) such Class A Certificateholder’s pro rata share of such amounts (including amounts on deposit in the Collection Account and Principal Funding Account) as are
payable to the Class A Certificateholder pursuant to the Agreement and the Supplement. Distributions with respect to this Class A Certificate will be made by the Paying Agent by check mailed to the address of the Class A
Certificateholder of record appearing in the Certificate Register without the presentation or surrender of this Class A Certificate or the making of any notation thereon (except for the final distribution in respect of this Class A
Certificate) except that with respect to Class A Certificates registered in the name of Cede & Co., the nominee for The Depository Trust Company, distributions will be made in the form of immediately available funds. Final payment of
this Class A Certificate will be made only upon presentation and surrender of this Class A Certificate at the office or agency specified in the notice of final distribution delivered by the Trustee to the Series 2019-1 Certificateholders in accordance with the Agreement and the Supplement. 
 On any
day occurring on or after the day on which the Invested Amount is reduced to 5% or less of the Initial Invested Amount, the Transferor has the option to repurchase the Series 2019-1 Certificateholders’
Interest in the Trust. The repurchase price will be equal to (a) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (b) if such day is not a Distribution Date, the Reassignment Amount for the
Distribution Date following such day. Following the deposit of the Reassignment Amount in the Collection Account, Series 2019-1 Certificateholders will not have any interest in the Receivables and the Series 2019-1 Certificates will represent only the right to receive such Reassignment Amount. 

  
 A-1-5 

 This Class A Certificate does not represent an obligation of, or an
interest in, the Transferor or the Servicer or any affiliate of any of them and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency or instrumentality. This Class A Certificate is limited
in right of payment to certain Collections with respect to the Receivables (and certain other amounts), all as more specifically set forth hereinabove and in the Agreement and the Supplement. 

The Class A Certificates are issuable only in minimum denominations of $100,000 and integral multiples of $1,000. The
transfer of this Class A Certificate shall be registered in the Certificate Register upon surrender of this Class A Certificate for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied
by a written instrument of transfer, in a form satisfactory to the Trustee or the Transfer Agent and Registrar, duly executed by the Class A Certificateholder or such Class A Certificateholder’s attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class A Certificates of authorized denominations and for the same aggregate fractional undivided interest will be issued to the designated transferee or transferees. 

As provided in the Agreement and subject to certain limitations therein set forth, Class A Certificates are exchangeable
for new Class A Certificates evidencing like aggregate fractional, undivided interests as requested by the Class A Certificateholder surrendering such Class A Certificates. No service charge may be imposed for any such exchange but
the Servicer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

The Servicer, the Transferor, the Trustee, the Paying Agent and the Transfer Agent and Registrar and any agent of any of
them, may treat the person in whose name this Class A Certificate is registered as the owner hereof for all purposes, and none of the Servicer, the Transferor, the Trustee, the Paying Agent, the Transfer Agent and Registrar, or any agent of any
of them, shall be affected by notice to the contrary except in certain circumstances described in the Agreement. 
 THIS
CLASS A CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS. 

  
 A-1-6 

 ASSIGNMENT 

Social Security or other identifying number of assignee
                                      
           
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto 
  
  

(name and address of assignee) 

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                                     
   , attorney, to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises. 
  

			
	Dated:                         	  	                                    
            2/
		
		  	    Signature Guaranteed:
		
		  	                                      
              

  
  

2 /         NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatsoever. 

  
 A-1-7 

					
		  	FORM OF CLASS B CERTIFICATE	  	EXHIBIT A-2

 THIS CLASS B CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF PERSONS INVESTING ASSETS OF A BENEFIT
PLAN (AS DEFINED BELOW) OR AN INDIVIDUAL RETIREMENT ACCOUNT OTHER THAN BY INSURANCE COMPANIES INVESTING ASSETS SOLELY OF THEIR GENERAL ACCOUNTS. 
  

			
	REGISTERED	  	$                    3/
		
	No. R-                	  	CUSIP No. 02588Q AC2

 Unless this Class B Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC”), to American Express Receivables Financing Corporation III LLC or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS B 3.07% ASSET BACKED CERTIFICATE 

Expected Final Payment Date: 
 The
March 2022 Distribution Date 
 Each $100,000 minimum denomination represents a 

1/64286/100ths undivided interest

 in Class B of the 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST, SERIES 2019-1 

Evidencing an undivided interest in certain assets of a trust, the corpus of which consists primarily of an interest in receivables generated
from time to time in the ordinary course of business in a portfolio of credit and charge accounts serviced by 
 AMERICAN EXPRESS TRAVEL
RELATED SERVICES COMPANY, INC., 
 and other assets and interests constituting Trust Assets under the Fourth Amended and Restated Pooling
and Servicing Agreement referred to below. 
 (Not an interest in or obligation of American Express Travel Related Services Company, Inc.,
American Express National Bank, American Express Receivables Financing Corporation III LLC or any of their respective affiliates) 
  

 

	3 /	 Denominations of $100,000 and integral multiples of $1,000 in excess thereof. 

  
 A-2-1 

 This certifies that CEDE & CO. (the “Class B
Certificateholder”) is the registered owner of a fractional, undivided interest in certain assets of a trust (the “Trust”) created pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of
April 1, 2018 (as amended and restated and otherwise amended and supplemented, the “Agreement”), as supplemented by the Series 2019-1 Supplement, dated as of February 14, 2019 (as
amended and supplemented, the “Supplement”), among American Express Receivables Financing Corporation III LLC, as transferor (the “Transferor”), American Express Travel Related Services Company, Inc., as servicer,
and The Bank of New York Mellon, a New York banking corporation, as trustee (the “Trustee”). The corpus of the Trust consists of (i) the Transferor’s ownership interest in a portfolio of receivables (the
“Receivables”) existing in credit and charge accounts identified under the Agreement from time to time (the “Accounts”), (ii) all Receivables generated under the Accounts from time to time thereafter,
(iii) funds collected or to be collected from cardmembers in respect of the Receivables, (iv) all funds which are from time to time on deposit in the Collection Account, the Special Funding Account, and any other Series Accounts and
(v) all other assets and interests constituting the Trust. Although a summary of certain provisions of the Agreement and the Supplement is set forth below and in the Summary of Terms and Conditions attached hereto and made a part hereof, this
Class B Certificate does not purport to summarize the Agreement and the Supplement and reference is made to the Agreement and the Supplement for information with respect to the interests, rights, benefits, obligations, proceeds and duties
evidenced hereby and the rights, duties and obligations of the Trustee. A copy of the Agreement and the Supplement (without schedules) may be requested from the Trustee by writing to the Trustee at the Corporate Trust Office. To the extent not
defined herein, the capitalized terms used herein have the meanings ascribed to them in the Agreement or the Supplement, as applicable. 

This Class B Certificate is issued under and is subject to the terms, provisions and conditions of the Agreement and the
Supplement, to which Agreement and Supplement, each as amended and supplemented from time to time, the Class B Certificateholder by virtue of the acceptance hereof assents and is bound. 

No Class B Certificate may be acquired by or for the account of any employee benefit plan, trust or account, including
an individual retirement account, that is subject to the Employee Retirement Income Security Act of 1974, as amended, or that is described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended, or an entity whose underlying
assets include plan assets by reason of a plan’s investment in such entity (a “Benefit Plan”), unless (i) such acquirer or holder is an insurance company, (ii) the source of funds used to acquire or hold such Certificate (or
interest therein) is an “insurance company general account” (as defined in U.S. Department of Labor Prohibited Transaction Class Exemption (“PTCE”) 95-60), and (iii) the
conditions set forth in Sections I and III of PTCE 95-60 have been satisfied. By acquiring any interest in this Class B Certificate, each applicable Certificate Owner shall be deemed to have represented
and warranted either (i) that it is not a Benefit Plan and is not acting for the account of any Benefit Plan or (ii) that (1) it is an insurance company, (2) the source of funds used to acquire or hold an interest in such Certificate
is an “insurance company general account” (as such term is defined in PTCE 95-60), and (3) the conditions set forth in Sections I and III of PTCE 95-60
have been satisfied. 
 THIS CLASS B CERTIFICATE IS SUBORDINATED TO THE EXTENT NECESSARY TO FUND PAYMENTS ON THE CLASS A
CERTIFICATES TO THE EXTENT SPECIFIED IN THE SUPPLEMENT. 
 It is the intent of the Transferor and the Class B
Certificateholder that, for federal, state and local income and franchise tax purposes, the Class B Certificates will qualify as indebtedness of the Transferor secured by the Receivables. The Class B Certificateholder, by the acceptance of
this Class B Certificate, agrees to treat this Class B Certificate for federal, state and local income and franchise tax purposes as debt of the Transferor. 

  
 A-2-2 

 In general, payments of principal with respect to the Class B Certificates
are limited to the Class B Invested Amount, which may be less than the unpaid principal balance of the Class B Certificates. The Expected Final Payment Date is the March 2022 Distribution Date, but principal with respect to the
Class B Certificates may be paid earlier or later under certain circumstances described in the Agreement and the Supplement. If for one or more months during the Controlled Accumulation Period there are not sufficient funds to pay the
Controlled Deposit Amount, then to the extent that excess funds are not available on subsequent Distribution Dates with respect to the Controlled Accumulation Period to make up for such shortfalls, the final payment of principal of the Class B
Certificates will occur later than the Expected Final Payment Date. 
 Unless the certificate of authentication hereon has
been executed by or on behalf of the Trustee, by manual signature, this Class B Certificate shall not be entitled to any benefit under the Agreement or the Supplement or be valid for any purpose. 

  
 A-2-3 

 IN WITNESS WHEREOF, the Transferor has caused this Class B Certificate to
be duly executed. 
  

			
	AMERICAN EXPRESS RECEIVABLES FINANCING CORPORATION III LLC
		
	By:	 	  

		 	Name:
		 	Title:

 Dated: February 14, 2019 

  
 A-2-4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the American Express Credit Account Master Trust Series 2019-1
Class B Certificates described in the within mentioned Agreement and Supplement. 
  

			
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	  

		 	Authorized Signatory
		
	or	 	
		
	By:	 	  

		 	as Authenticating Agent
		 	for the Trustee
		
	By:	 	  

		 	Authorized Signatory

  
 A-2-5 

 AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

CLASS B 3.07% ASSET BACKED CERTIFICATE 

Summary of Terms and Conditions 

The Receivables consist of Principal Receivables which arise generally from the purchase of goods and services and amounts
advanced to cardmembers as cash advances and Finance Charge Receivables. This Class B Certificate is one of a Series of Certificates entitled American Express Credit Account Master Trust, Series 2019-1
(the “Series 2019-1 Certificates”), and one of a class thereof entitled Class B Series 2019-1 3.07% Asset Backed Certificates (the
“Class B Certificates”), each of which represents a fractional, undivided interest in certain assets of the Trust. The assets of the Trust are allocated in part to the investor certificateholders of all
outstanding Series (the “Certificateholders’ Interest”) with the remainder allocated to the Holders of the Transferor Certificates. The aggregate interest represented by the Class B Certificates at any time in the
Principal Receivables in the Trust shall not exceed an amount equal to the Class B Invested Amount at such time. The Class B Initial Invested Amount is $64,286,000. The Class B Invested Amount on any date will be an amount equal to
(a) the Class B Initial Invested Amount, minus (b) the aggregate amount of principal payments made to the Class B Certificateholder on or prior to such date, minus (c) the excess, if any, of the aggregate
amount of Class B Investor Charge-Offs for all prior Distribution Dates over Class B Investor Charge-Offs reimbursed, minus (d) the amount of Reallocated Principal Collections allocated on all prior Distribution Dates pursuant
to subsection 4.08(a) of the Supplement (excluding any Reallocated Principal Collections that have resulted in a reduction in the Collateral Invested Amount pursuant to Section 4.08), minus (e) an amount equal to the amount by which
the Class B Invested Amount has been reduced to cover the Class A Investor Default Amount on all prior Distribution Dates, and plus (f) the amount of Excess Spread and Excess Finance Charge Collections allocated to Series 2019-1 and applied on all prior Distribution Dates for the purpose of reimbursing amounts deducted pursuant to the foregoing clauses (c), (d) and (e); provided, however, that the Class B Invested Amount
may not be reduced below zero. 
 Subject to the terms and conditions of the Agreement, the Transferor may, from time to
time, direct the Trustee, on behalf of the Trust, to issue one or more new Series of Investor Certificates, which will represent fractional, undivided interests in certain of the Trust Assets. 

On each Distribution Date, the Paying Agent shall distribute to each Class B Certificateholder of record on the last day
of the preceding calendar month (each a “Record Date”) such Class B Certificateholder’s pro rata share of such amounts (including amounts on deposit in the Collection Account and Principal Funding Account) as are
payable to the Class B Certificateholder pursuant to the Agreement and the Supplement. Distributions with respect to this Class B Certificate will be made by the Paying Agent by check mailed to the address of the Class B
Certificateholder of record appearing in the Certificate Register without the presentation or surrender of this Class B Certificate or the making of any notation thereon (except for the final distribution in respect of this Class B
Certificate) except that with respect to Class B Certificates registered in the name of Cede & Co., the nominee for The Depository Trust Company, distributions will be made in the form of immediately available funds. Final payment of
this Class B Certificate will be made only upon presentation and surrender of this Class B Certificate at the office or agency specified in the notice of final distribution delivered by the Trustee to the Series 2019-1 Certificateholders in accordance with the Agreement and the Supplement. 
 On any
day occurring on or after the day on which the Invested Amount is reduced to 5% or less of the Initial Invested Amount, the Transferor has the option to repurchase the Series 2019-1

  
 A-2-6 

 
Certificateholders’ Interest in the Trust. The repurchase price will be equal to (a) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or
(b) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date next following such day. Following the deposit of the Reassignment Amount in the Collection Account, Series
2019-1 Certificateholders will not have any interest in the Receivables and the Series 2019-1 Certificates will represent only the right to receive such Reassignment
Amount. 
 This Class B Certificate does not represent an obligation of, or an interest in, the Transferor or the
Servicer or any affiliate of any of them and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency or instrumentality. This Class B Certificate is limited in right of payment to certain
Collections with respect to the Receivables (and certain other amounts), all as more specifically set forth hereinabove and in the Agreement and the Supplement. 

The Class B Certificates are issuable only in minimum denominations of $100,000 and integral multiples of $1,000. The
transfer of this Class B Certificate shall be registered in the Certificate Register upon surrender of this Class B Certificate for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied
by a written instrument of transfer, in a form satisfactory to the Trustee or the Transfer Agent and Registrar, duly executed by the Class B Certificateholder or such Class B Certificateholder’s attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class B Certificates of authorized denominations and for the same aggregate fractional undivided interest will be issued to the designated transferee or transferees. 

As provided in the Agreement and subject to certain limitations therein set forth, Class B Certificates are exchangeable
for new Class B Certificates evidencing like aggregate fractional undivided interests as requested by the Class B Certificateholder surrendering such Class B Certificates. No service charge may be imposed for any such exchange but the
Servicer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

The Servicer, the Transferor, the Trustee, the Paying Agent and the Transfer Agent and Registrar and any agent of any of
them, may treat the person in whose name this Class B Certificate is registered as the owner hereof for all purposes, and none of the Servicer, the Transferor, the Trustee, the Paying Agent, the Transfer Agent and Registrar, or any agent of any
of them, shall be affected by notice to the contrary except in certain circumstances described in the Agreement. 
 THIS
CLASS B CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS. 

  
 A-2-7 

 ASSIGNMENT 

Social Security or other identifying number of assignee
                                     

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ______________________________________________ 

(name and address of assignee) 

the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
                                     
   , attorney, to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises. 
  

			
	Dated:                         	  	                                    
            4/
		
		  	    Signature Guaranteed:
		
		  	                                      
          

  
  

4 /        NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatsoever. 

  
 A-2-8 

 EXHIBIT B 

FORM OF MONTHLY PAYMENT INSTRUCTIONS AND 

NOTIFICATION TO THE TRUSTEE 
  

 
  

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 
  

 

The undersigned, a duly authorized representative of American Express Travel Related Services Company, Inc.
(“TRS”), as Servicer pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Pooling and Servicing
Agreement”), among TRS, American Express Receivables Financing Corporation III LLC, as transferor (the “Transferor”), and The Bank of New York Mellon (formerly The Bank of New York), as trustee (the
“Trustee”), does hereby certify as follows: 
 1.    Capitalized terms used in this
Certificate have their respective meanings set forth in the Pooling and Servicing Agreement or the Series 2019-1 Supplement, dated as of February 14, 2019, among TRS, the Transferor and the Trustee (as
amended and supplemented, the “Supplement”), as applicable. 
 2.    TRS is the
Servicer. 
 3.    The undersigned is a Servicing Officer. 

 

	I.    INSTRUCTION	 TO MAKE A WITHDRAWAL 

Pursuant to subsections 4.05(a), (b) and (c), the Servicer does hereby instruct the Trustee (i) to make withdrawals from
the Collection Account on                 ,         , which date is a
Distribution Date under the Supplement, in the aggregate amounts (equal to the Class A Available Funds, Class B Available Funds and Collateral Available Funds, respectively) as set forth below in respect of the following amounts and
(ii) to apply the proceeds of such withdrawals in accordance with subsections 4.05(a), (b) and (c): 
 With respect to the Class A
Certificates, 
  

							
	A)	 	Pursuant to subsection 4.05(a)(i):	  	
				
		 	(1)	 	Interest at the Class A Certificate Rate for the related Interest Accrual Period on the Class A Invested Amount	  	    $                                 
        
				
		 	(2)	 	Class A Monthly Interest previously due but not paid	  	    $                                 
        

  
 B-1 

 
							
				
		 	(3)	 	Class A Additional Interest and any Class A Additional Interest due but not paid	 	    $                                 
        
			
	B)	 	Pursuant to subsection 4.05(a)(ii):	 	
				
		 	(1)	 	The Class A Servicing Fee for the preceding Monthly Period, if applicable	 	    $                                 
        
				
		 	(2)	 	Accrued and unpaid Class A Servicing Fees, if applicable	 	    $                                 
        
			
	C)	 	Pursuant to subsection 4.05(a)(iii):	 	
				
		 	(1)	 	Class A Investor Default Amount for the preceding Monthly Period	 	    $                                 
        
		
	With respect to the Class B Certificates,	 	
			
	A)	 	Pursuant to subsection 4.05(b)(i):	 	
				
		 	(1)	 	Interest at the Class B Certificate Rate for the related Interest Accrual Period on the Class B Invested Amount	 	    $                                 
        
				
		 	(2)	 	Class B Monthly Interest previously due but not paid	 	    $                                 
        
				
		 	(3)	 	Class B Additional Interest and any Class B Additional Interest previously due but not paid	 	    $                                 
        
			
	B)	 	Pursuant to subsection 4.05(b)(ii):	 	
				
		 	(1)	 	The Class B Servicing Fee for the preceding Monthly Period, if applicable	 	    $                                 
        
				
		 	(2)	 	Accrued and unpaid Class B Servicing Fees, if applicable	 	    $                                 
        
		
	With respect to the Collateral Interest	 	
			
	A)	 	Pursuant to subsection 4.05(c)(i):	 	
				
		 	(1)	 	The Collateral Servicing Fee for the preceding Monthly Period, if applicable	 	    $                                 
        
				
		 	(2)	 	Accrued and unpaid Collateral Servicing Fees, if applicable	 	    $                                 
        

 Pursuant to subsections 4.05(d), (e) and (f), the Servicer hereby instructs the Trustee
(i) to make withdrawals from the Collection Account on                 , which date is a Distribution Date under the Supplement, in the aggregate amounts
(equal to the Available Principal Collections) as set forth 

  
 B-2 

 
below in respect of the following amounts and (ii) to apply the proceeds of such withdrawals in accordance with subsections 4.05(d), (e) and (f): 

 

							
	A)	 	Pursuant to subsection 4.05(d):	 	
				
		 	(1)	 	Amount to be treated as Shared Principal Collections	 	    $                                 
        
			
	B)	 	Pursuant to subsection 4.05(e):	 	
				
		 	(1)	 	The lesser of the Controlled Deposit Amount and the sum of the Class A Adjusted Invested Amount and the Class B Adjusted Invested Amount deposited in the Principal Funding Account	 	    $                                 
        
				
		 	(2)	 	After the Class B Invested Amount is paid in full, the amount paid to the Collateral Interest Holder (up to the Collateral Invested Amount)	 	    $                                 
        
				
		 	(3)	 	Prior to the date the Class B Invested Amount is paid in full, amount to be treated as Shared Principal Collections	 	    $                                 
        
			
	C)	 	Pursuant to subsection 4.05(f):	 	
				
		 	(1)	 	An amount up to the Class A Adjusted Invested Amount deposited in the Principal Funding Account	 	    $                                 
        
				
		 	(2)	 	On and after the Distribution Date on which the Class A Invested Amount is paid in full, an amount up to the Class B Invested Amount deposited in the Principal Funding Account	 	    $                                 
        
				
		 	(3)	 	On and after the Distribution Date on which the Class B Invested Amount is paid in full, an amount up to the Collateral Invested Amount distributed to the Collateral Interest Holder	 	    $                                 
        
				
		 		 		 	

 Pursuant to Section 4.07, the Servicer does hereby instruct the Trustee to apply on
                        , which is a Distribution Date under the Supplement, any Excess Spread and
Excess Finance Charge Collections allocated to Series 2019-1 as follows: 
  

							
	A)	 	Pursuant to subsection 4.07(a):	 	
			
		 	Class A Required Amount applied in the priority set forth in subsections 4.05(a)(i), (ii) and (iii)	 	    $                                 
        

  
 B-3 

							
			
	B)	 	Pursuant to subsection 4.07(b):	 	
			
		 	Aggregate amount of Class A Investor Charge-Offs not previously reimbursed allocated to Available Principal Collections	 	    $                                 
        
			
	C)	 	Pursuant to subsection 4.07(c):	 	
			
		 	Interest accrued on aggregate outstanding principal balance of the Class B Certificates not otherwise distributed to Class B Certificateholders pursuant to Section 4.05(b)(i)	 	    $                                 
        
			
	D)	 	Pursuant to subsection 4.07(d):	 	
			
		 	Class B Required Amount applied in the priority set forth in subsections 4.05(b)(i) and (ii)	 	    $                                 
        
			
	E)	 	Pursuant to subsection 4.07(d):	 	
			
		 	Amount (up to the Class B Investor Default) to be applied as Available Principal Collections	 	    $                                 
        
			
	F)	 	Pursuant to subsection 4.07(e):	 	
			
		 	The amount by which the Class B Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof allocated to Available Principal Collections	 	    $                                 
        
			
	G)	 	Pursuant to subsection 4.07(f):	 	
				
		 	(1)	 	Collateral Senior Minimum Monthly Interest	 	    $                                 
        
				
		 	(2)	 	Collateral Senior Minimum Monthly Interest previously due but not paid	 	    $                                 
        
				
		 	(3)	 	Collateral Senior Additional Interest and any Collateral Senior Additional Interest previously due and not paid	 	    $                                 
        
			
	H)	 	Pursuant to subsection 4.07(g):	 	
			
		 	Monthly Servicing Fee for such Distribution Date that has not been paid to the Servicer and any Monthly Servicing Fee previously due but not paid to the Servicer	 	    $                                 
        
			
	I)	 	Pursuant to subsection 4.07(h):	 	
			
		 	Collateral Default Amount allocated to Available Principal Collections	 	    $                                 
        

  
 B-4 

							
			
	J)	 	Pursuant to subsection 4.07(i):	 	
			
		 	The amount by which the Collateral Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof allocated to Available Principal Collections	 	    $                            
             
			
	K)	 	Pursuant to subsection 4.07(j):	 	
			
		 	The excess of the Required Reserve Account Amount over the Available Reserve Amount deposited into the Reserve Account	 	    $                            
             
			
	L)	 	Pursuant to subsection 4.07(k):	 	
			
		 	Amount distributed to the Collateral Interest Holder	 	    $                            
             

 Pursuant to Section 4.08, the Servicer does hereby instruct the Trustee to apply
on                 , which is a Distribution Date under the Pooling and Servicing Agreement,
$                     of Reallocated Principal Collections to fund any deficiencies in the Required Amount after applying Class A
Available Funds, Class B Available Funds, Collateral Available Funds, Excess Spread and Excess Finance Charge Collections thereto. 
  

	II.	 INSTRUCTION TO MAKE CERTAIN PAYMENTS 

Pursuant to Section 5.01 of the Series Supplement, the Servicer does hereby instruct the Trustee to pay in accordance
with Section 5.01 from the Interest Funding Account or the Principal Funding Account, as applicable, on                 , which date is
a Payment Date under the Supplement, the following amounts as set forth below: 

							
			
	A)	 	Pursuant to subsection 5.01(a):	 	
			
		 	Interest to be distributed to Class A Certificateholders	 	    $                            
             
			
	B)	 	Pursuant to subsection 5.01(b):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, principal to be distributed to the Class A Certificateholders	 	    $                            
             
			
	C)	 	Pursuant to subsection 5.01(c):	 	
			
		 	Interest to be distributed to Class B Certificateholders	 	    $                            
             
			
	D)	 	Pursuant to subsection 5.01(d):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, on or after the date Class A Invested Amount is paid in full, principal to be distributed to the Class B Certificateholders	 	    $                            
             

  
 B-5 

							
			
	E)	 	Pursuant to subsection 5.01(e):	 	
			
		 	Aggregate amount to be distributed to the Collateral Interest Holder	 	    $                            
             

  

	III.	 ACCRUED AND UNPAID AMOUNTS 

After giving effect to the withdrawals and transfers to be made in accordance with this notice, the following amounts will be
accrued and unpaid with respect to all Monthly Periods preceding the current calendar month. 

							
			
	1.	 	Subsection 4.06(a):	 	
			
		 	The aggregate amount of all unreimbursed Class A Investor
Charge-Offs	 	    $                            
             
			
	2.	 	Subsection 4.06(a), (b) and 4.08(a):	 	
			
		 	The aggregate amount by which the Class B Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof	 	    $                            
             
			
	3.	 	Subsection 4.06(a), (b), (c) and 4.08(a), (b) and (c):	 	
			
		 	The aggregate amount by which the Collateral Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of the definition thereof	 	    $                            
             
			
		 		 	

 IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this
                 day of
                ,         . 

 

			
	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC., as Servicer
		
	By:	 	  

		 	Name:
		 	Title:

  
 B-6 

 EXHIBIT C-1 

FORM OF MONTHLY STATEMENT 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 
  

							
	A. TRUST ACTIVITY	  	 TRUST

TOTALS
	  	 	  	 
	Record Date	  	________	  	 	  	 
	Number of days in Monthly Period	  	________	  	 	  	 
	Beginning Number of Accounts	  	________	  	 	  	 
	Beginning Principal Receivable Balance, including any Additions, Removals, or Adjustments of Principal Receivables during the Monthly Period	  	$________	  	 	  	 
	 a.  Addition of Principal
Receivables
	  	$________	  	 	  	 
	 b. Removal of Principal
Receivables
	  	$________	  	 	  	 
	 c.  Adjustments to Principal
Receivables
	  	$________	  	 	  	 
	Special Funding Account Balance	  	$________	  	 	  	 
	Beginning Total Principal Balance	  	$________	  	 	  	 
	Finance Charge Collections (excluding Recoveries)	  	$________	  	 	  	 
	Collections of Discount Option Receivables	  	$________	  	 	  	 
	Recoveries	  	$________	  	 	  	 
	Total Collections of Finance Charge Receivables	  	$________	  	 	  	 
	Total Collections of Principal Receivables	  	$________	  	 	  	 
	Monthly Payment Rate	  	________%	  	 	  	 
	Defaulted Amount	  	$________	  	 	  	 
	Annualized Default Rate	  	________%	  	 	  	 
	Annualized Default Rate, Net of Recoveries	  	________%	  	 	  	 
	Trust Portfolio Yield	  	________%	  	 	  	 
	New Principal Receivables	  	$________	  	 	  	 
	Ending Number of Accounts	  	________	  	 	  	 
	Ending Principal Receivables Balance	  	$________	  	 	  	 
	Ending Required Minimum Principal Balance	  	$________	  	 	  	 
	Ending Transferor Amount	  	$________	  	 	  	 
	Ending Special Funding Account Balance	  	$________	  	 	  	 
	Ending Total Principal Balance	  	$________	  	 	  	 
	Ending Total Receivables	  	$________	  	 	  	 

  
 C-1-1 

																			
	 B. SERIES
ALLOCATIONS

	 
	  	 	 Invested  

Amount
	 	 Adjusted  

Invested
 Amount
	 	 Principal  

Funding
 Account

Balance
	 	 Series

Required
 Transferor  

Amount
	 	 Series

Allocation
 Percentage  
	 	 Series

Allocable
 Finance

Charge
 Collections  
	 	 Series

Allocable
 Recoveries  
	 	 Series

Allocable
 Principal

Collections  
	 	 Series

Allocable  
 Defaulted

Amount

	 Group ___
	 	$______	 	$______	 	$______	 	$______	 	______%	 	$______	 	$______	 	$______	 	$______
	 Other
	 	$______	 	$______	 	$______	 	$______	 	______%	 	$______	 	$______	 	$______	 	$______
	 Total
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Trust
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

																					
	 C. GROUP
ALLOCATIONS

	  	 	 Invested  

Amount
	 	 Investor

Finance
 Charge

Collections  
	 	 Investor

Monthly  
 Interest
	 	 Investor

Default  
 Amount
	 	 Investor

Monthly  
 Fees
	 	 Investor

Additional  
 Amounts
	 	Total      	 	 Reallocated  

Investor
 Finance

Charge
 Collections
	 	 Investment  

Funding
 Account

Proceeds
	 	
Available  
 Excess

	 Group ___
	 	 $_____
	 	 $_______
	 	 $______
	 	 $_____
	 	 $______
	 	 $______
	 	 $____
	 	 $_______
	 	 $_______
	 	 $_______

	 Total
	 	 $_____
	 	 $_______
	 	 $______
	 	 $_____
	 	 $______
	 	 $______
	 	 $____
	 	 $_______
	 	 $_______
	 	 $_______

	 Trust Total
	 	 $_____
	 	 $_______
	 	 $______
	 	 $_____
	 	 $______
	 	 $______
	 	 $____
	 	 $_______
	 	 $_______
	 	 $_______

	 	 	 	 	 
	 	 	Group Investor Finance Charge Collections	 	Group Expenses	 	Group Reallocable Investor Finance Charge Collections
	 Group
___
	 	 	 	 $______
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

													
	 D. TRUST
PERFORMANCE

	Delinquencies  	 	 	 	Dollar Amount  	 	 Percentage of

Ending Total
 Receivables
	 	 Number of

Accounts
	 	
Percentage of
 Total Number

of Accounts

	 	 	
31-60 Days Delinquent
  
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	
61-90 Days Delinquent
  
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	
91-120 Days Delinquent
  
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	 120+ Days Delinquent

 
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	 Total 30+ Days

Delinquent
	 	$_________	 	_________%	 	_________	 	_________%
	 	 	 	 	 	 	 	 	 	 	 
	Loss Experience:
	 	 	Ending Principal Receivables Balance	 	 	 	__________
	 	 	Defaulted Amount	 	 	 	__________
	 	 	Recoveries	 	 	 	__________
	 	 	Net Default Amount	 	 	 	__________
	 	 	Annualized Default Rate	 	 	 	
_________%

  
 C-1-2 

					
	 	  	Annualized Recovery Rate	  	            _________%  

	 	  	Annualized Default Rate, Net of Recoveries	  	_________%  
	 	  	Number of Accounts Experiencing a Loss	  	_________      
	 	  	Number of Accounts Experiencing a Recovery	  	_________      
	 	  	Average Net Default Amount per Account Experiencing a Loss	  	_________      
	    
	E. REPURCHASES AND REPLACEMENTS
	Information required by Rule 15Ga-1(a) concerning the Trust:
	 [No activity to report for reporting
period.]

	Most recent Form ABS-15G:
	 Form
ABS-15G filed on _______ under CIK number _______

	    
	F. ASSET REVIEW
	Information required by Item 1121(d)(1) of Regulation AB concerning the Trust:
	 [No activity to report for reporting
period.]

	Information required by Item 1121(d)(2) of Regulation AB concerning the Trust:
	 [There has been no change to the
Asset Representation Reviewer during the reporting period.]

	    
	G. INVESTOR COMMUNICATION
	Information required by Item 1121(e) of Regulation AB concerning the Trust:
	 [No activity to report for reporting
period.]
 [On [_________], 20[__], [______] received a request from [______] expressing an interest in communicating with other
investors with regard to the possible exercise of rights under [TRANSACTION AGREEMENT]. The requesting investor may be contacted at:
 [ADDRESS]

[PHONE NUMBER]

[EMAIL]]

					
	H. CREDIT RISK RETENTION  	  	 As of the last day of Monthly

Period  
	  	As of the last day of Prior Monthly Period  
	Required Seller’s Interest Amount	  	$________	  	$________
	Seller’s Interest Amount	  	$________	  	 
	Seller’s Interest Percentage	  	________%	  	________%

  
 C-1-3 

									
	 SERIES 2019-1
CERTIFICATES
     

	 A. INVESTOR/

TRANSFEROR
 ALLOCATIONS
	  	 SERIES

ALLOCATIONS 
	  	TOTAL INVESTOR INTEREST	  	 TRANSFERORS’   INTEREST	  	 
	Beginning Invested Amount/Transferor Amount	  	$____________	  	$____________	  	$____________	  	 
	Beginning Adjusted Invested Amount	  	$____________	  	$____________	  	$____________	  	 
	Floating Allocation Percentage	  	_________%	  	_________%	  	_________%	  	 
	Principal Allocation Percentage	  	_________%	  	_________%	  	_________%	  	 
	Collections of Finance Charge Receivables	  	$____________	  	$____________	  	$____________	  	 
	Collections of Principal Receivables	  	$____________	  	$____________	  	$____________	  	 
	Defaulted Amount	  	$____________	  	$____________	  	$____________	  	 
	Ending Invested Amount/Transferor Amount	  	$____________	  	$____________	  	$____________	  	 
	    
	 B. MONTHLY PERIOD FUNDING 

REQUIREMENTS
	  	CLASS A	  	CLASS B	  	COLLATERAL INTEREST	  	TOTAL
	Principal Funding Account Balance	  	$____________	  	$____________	  	$____________	  	$____________
	Investment Proceeds for Monthly Period	  	$____________	  	$____________	  	$____________	  	$____________
	Required Reserve Account Amount	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Opening Balance	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Investment Proceeds retained per
Section 4.12(b)	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Deposit	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Draw Amount	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Surplus (after giving effect to any principal distributions on the related Distribution Date)	  	$____________	  	$____________	  	$____________	  	$____________
	Reserve Account Closing Balance (after giving effect to any principal distributions and Reserve Account withdrawals on the related Distribution Date)	  	$____________	  	$____________	  	$____________	  	$____________
	LIBOR Determination Date	  	NA	  	NA	  	NA	  	NA

  
 C-1-4 

									
	Coupon _______to ______	  	_________%	  	_________%	  	_________%	  	_________%
	Monthly Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Outstanding Monthly Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Additional Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Total Interest Due	  	$____________	  	$____________	  	$____________	  	$____________
	Investor Default Amount	  	$____________	  	$____________	  	$____________	  	$____________
	Investor Monthly Fees Due	  	$____________	  	$____________	  	$____________	  	$____________
	Investor Additional Amounts Due	  	$____________	  	$____________	  	$____________	  	$____________
	Total Due	  	$____________	  	$____________	  	$____________	  	$____________
	 	  	 	  	 	  	 	  	 
	Reallocated Investor Finance Charge Collections	  	 	  	 	  	 	  	$____________
	Interest and Principal Funding Investment Proceeds	  	 	  	 	  	 	  	$____________
	Interest on Reserve Account	  	 	  	 	  	 	  	$____________
	Series Adjusted Portfolio Yield	  	 	  	 	  	 	  	_________%
	Base Rate	  	 	  	 	  	 	  	_________%
	Excess Spread Percentage	  	 	  	 	  	 	  	_________%
	    
	 C. CERTIFICATES –

BALANCES AND
 DISTRIBUTIONS
	  	CLASS A	  	CLASS B	  	 COLLATERAL   INTEREST	  	TOTAL
	Beginning Certificates Balance	  	$____________	  	$____________	  	$____________	  	$____________
	Distributions of Interest	  	$____________	  	$____________	  	$____________	  	$____________
	Deposits to the Principal Funding Account	  	$____________	  	$____________	  	$____________	  	$____________
	Distributions of Principal	  	$____________	  	$____________	  	$____________	  	$____________
	Total Distributions	  	$____________	  	$____________	  	$____________	  	$____________
	Ending Certificates Balance	  	$____________	  	$____________	  	$____________	  	$____________

  
 C-1-5 

 
							
			
	D)	 	Information regarding distributions on the Distribution Date in respect of the Class A Certificates per $1,000 original certificate principal amount.	 	
				
		 	(1)	 	The total amount of the distribution:	 	    $                                 
        
				
		 	(2)	 	The amount of the distribution in respect of Class A Monthly Interest:	 	    $                                 
        
				
		 	(3)	 	The amount of the distribution in respect of Class A Outstanding Monthly Interest:	 	    $                                 
        
				
		 	(4)	 	The amount of the distribution in respect of Class A Additional Interest:	 	    $                                 
        
				
		 	(5)	 	The amount of the distribution in respect of principal of the Class A Certificates:	 	    $                                 
        
			
	E)	 	Class A Investor Charge-Offs and Reimbursement of Class A Investor Charge-Offs.	 	
				
		 	(1)	 	The total amount of Class A Investor Charge-Offs:	 	    $                                 
        
				
		 	(2)	 	The amount of Class A Investor Charge-Offs per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(3)	 	The total amount reimbursed in respect of Class A Investor Charge-Offs:	 	    $                                 
        
				
		 	(4)	 	The amount reimbursed in respect of Class A Investor Charge-Offs per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(5)	 	The amount, if any, by which the outstanding principal balance of the Class A Certificates exceeds the Class A Invested Amount after giving effect to all transactions on such Distribution Date:	 	    $                                 
        
			
	F)	 	Information regarding distributions in respect of the Class B Certificates, per $1,000 original certificate principal amount.	 	
				
		 	(1)	 	The total amount of the distribution in respect of Class B Certificates:	 	    $                                 
        
				
		 	(2)	 	The amount of the distribution in respect of Class B Monthly Interest:	 	    $                                 
        

  
 C-1-6 

 
							
				
		 	(3)	 	The amount of the distribution in respect of Class B Outstanding Monthly Interest:	 	    $                                 
        
				
		 	(4)	 	The amount of the distribution in respect of Class B Additional Interest:	 	    $                                 
        
				
		 	(5)	 	The amount of the distribution in respect of principal of the Class B Certificates:	 	    $                                 
        
			
	G)	 	Amount of reductions in Class B Invested Amount pursuant to clauses (c), (d), and (e) of the definition of Class B Invested Amount on such Distribution Date.	 	
				
		 	(1)	 	The amount of reductions in Class B Invested Amount pursuant to clauses (c), (d) and (e) of the definition of Class B Invested Amount:	 	    $                                 
        
				
		 	(2)	 	The amount of the reductions in the Class B Invested Amount per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(3)	 	The total amount reimbursed in respect of such reductions in the Class B Invested Amount:	 	    $                                 
        
				
		 	(4)	 	The amount reimbursed in respect of such reductions in the Class B Invested Amount, per $1,000 original certificate principal amount:	 	    $                                 
        
				
		 	(5)	 	The amount, if any, by which the outstanding principal balance of the Class B Certificates exceeds the Class B Invested Amount after giving effect to all transactions on such Distribution Date:	 	    $                                 
        
			
	H)	 	Information regarding distributions on the Distribution Date to the Collateral Interest Holder.	 	
				
		 	(1)	 	The total amount distributed to the Collateral Interest Holder:	 	    $                                 
        
				
		 	(2)	 	The amount of the distribution in respect of Collateral Senior Minimum Monthly Interest:	 	    $                                 
        
				
		 	(3)	 	The amount of the distribution in respect of Collateral Senior Additional Interest:	 	    $                                 
        
				
		 	(4)	 	The amount distributed to the Collateral Interest Holder in respect of principal on the Collateral Invested Amount:	 	    $                                 
        

  
 C-1-7 

							
				
		 	(5)	 	The amount of the distribution to the Collateral Interest Holder in respect of remaining Excess Spread:	 	    $                                 
        
			
	I)	 	Amount of reductions in Collateral Invested Amount pursuant to clauses (c), (d), and (e) of the definition of Collateral Invested Amount.	 	
				
		 	(1)	 	The amount of reductions in the Collateral Invested Amount pursuant to clauses (c), (d) and (e) of the definition of Collateral Invested Amount:	 	    $                                 
        
				
		 	(2)	 	The total amount reimbursed in respect of such reductions in the Collateral Invested Amount:	 	    $                                 
        

  
 C-1-8 

							
	J. APPLICATION OF REALLOCATED INVESTOR FINANCE CHARGE COLLECTIONS
	1. CLASS A AVAILABLE FUNDS	 	 	  	$____________	 	 
	
a.  Class A Monthly Interest

b. Class A Outstanding Monthly Interest

c.  Class A Additional Interest

d. Class A Investor Default Amount (treated as Available Principal Collections)

e.  Excess Spread
	  	$____________	 	 
	  	$____________      	 	  
	  	$____________	 	  
	  	$____________	 	  
	  	$____________	 	  
	  	$____________	 	  
	2. CLASS B AVAILABLE FUNDS	 	 	  	$____________	 	 
	
a.  Class B Monthly Interest

b. Class B Outstanding Monthly Interest

c.  Class B Additional Interest

d. Excess Spread
	  	$____________	 	 
	  	$____________	 	  
	  	$____________	 	  
	  	$____________	 	  
	3. COLLATERAL AVAILABLE FUNDS	 	 	  	$____________	 	 
	 a.  Excess
Spread
	  	$____________	 	 
	4. TOTAL EXCESS SPREAD	  	$____________	 	 
	    
	K. REALLOCATED PRINCIPAL COLLECTIONS
	 1. Principal Allocation
Percentage
	 	 	  	________%	 	 
	 2. Series
2019-1 Allocable Principal Collections
	 	 	  	$____________	 	 
	 3. Principal Allocation Percentage of
Series 2019-1 Allocable Principal Collections
	 	 	  	$____________	 	 
	 4. Reallocated Principal Collections
Required to fund the Required Amount
	 	 	  	$____________	 	 
	 5. Item 3 minus Item 4
	 	 	  	$____________	 	 
	 6. Shared Principal Collections from
other Series allocated to Series 2019-1
	 	 	  	$____________	 	 
	 7. Other amounts treated as Available
Principal Collections
	 	 	  	$____________	 	 
	 8. Available Principal Collections (total
of items 5, 6 and 7)
	 	 	  	$____________	 	 
	    
	L. APPLICATION OF AVAILABLE PRINCIPAL COLLECTIONS DURING REVOLVING PERIOD
	 1. Collateral Invested Amount
	 	 	  	$____________	 	 
	 2. Required Collateral Invested
Amount
	 	 	  	$____________	 	 
	 3. Excess of Collateral Invested Amount
over Required Collateral Invested Amount
	 	 	  	$____________	 	 
	 4. Treated as Shared Principal
Collections
	 	 	  	$____________	 	 
	    
	M. APPLICATION OF PRINCIPAL COLLECTIONS DURING ACCUMULATION OR AMORTIZATION PERIOD
	 1. Principal Funding Account
	 	 	  	$____________	 	 
	 2. Excess of Collateral Invested Amount
over Required Collateral Invested Amount
	 	 	  	$____________	 	 
	 3. Distribution of Principal
	 	 	  	$____________	 	 

  
 C-1-9 

											
	4. Treated as Shared Principal Collections	  	 	  	 	  	$____________	  	 
	    
	N. APPLICATION OF EXCESS SPREAD AND EXCESS FINANCE CHARGE COLLECTIONS ALLOCATED TO SERIES
2019-1
	
1.  Excess Spread
	  	 	  	 	  	$____________	  	 
	
2.  Excess Finance Charge Collections
	  	 	  	 	  	$____________	  	 
	
3.  Applied to fund Class A Required Amount
	  	 	  	 	  	$____________	  	 
	
4.  Class A Investor Charge-Offs treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
5.  Applied to fund overdue Class B Interest
	  	 	  	 	  	$____________	  	 
	
6.  Applied to fund Class B Required Amount
	  	 	  	 	  	$____________	  	 
	
7.  Reduction of Class B Invested Amount treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
8.  Applied to Collateral Senior Minimum Monthly Interest
	  	 	  	 	  	$____________	  	 
	
9.  Applied to unpaid Monthly Servicing Fee
	  	 	  	 	  	$____________	  	 
	
10. Collateral Default Amount treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
11. Reduction of Collateral Invested Amount treated as Available Principal Collections
	  	 	  	 	  	$____________	  	 
	
12. Deposited to Reserve Account
	  	 	  	 	  	$____________	  	 
	
13. Remaining Excess Spread distributed to Collateral Interest Holder(s)
	  	 	  	 	  	$____________      	  	 
	    
	O. YIELD AND BASE RATE
	 1.  Base Rate
	  	 	  	 	  	 	  	 	  	 
	 	  	a. Current Monthly Period	  	 	  	 	  	________%	  	 
	 	  	b. Prior Monthly Period	  	 	  	 	  	________%	  	 
	 	  	c. Second Prior Monthly Period	  	 	  	 	  	________%	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 2.  Three Month Average Base
Rate
	  	 	  	 	  	 	  	________%	  	 
	3. Series Adjusted Portfolio Yield	  	 	  	 	  	 	  	 	  	 
	 	  	a. Current Monthly Period	  	 	  	 	  	________%	  	 
	 	  	b. Prior Monthly Period	  	 	  	 	  	________%	  	 
	 	  	c. Second Prior Monthly Period	  	 	  	 	  	________%	  	 
	4. Three Month average Series Adjusted Portfolio Yield	  	 	  	 	  	 	  	________%	  	 

  
 C-1-10 

									
	5. Is the 3 month average Series Adjusted Portfolio Yield more than the 3 month average Base Rate?	  	 	  	 	  	[Yes/No]	  	 
	     

	P. REASSIGNMENT AMOUNT
	Adjusted Invested Amount	  	 	  	$____________      	  	 
	Monthly Interest	  	 	  	$____________	  	 
	Monthly Interest previously due but not paid	  	 	  	$____________	  	 
	Additional Interest	  	 	  	$____________	  	 
	Additional Interest previously due but not paid	  	 	  	$____________	  	 
	Reassignment Amount	  	 	  	$____________	  	 

  
 C-1-11 

 EXHIBIT C-2 

FORM OF ANNUAL PAYMENT INFORMATION 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

SERIES 2019-1 

FOR THE YEAR ENDED DECEMBER 31, 20[    ] 

The undersigned, a duly authorized representative of American Express Travel Related Services Company, Inc. (“TRS”),
as Servicer pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Pooling and Servicing Agreement”), among TRS,
American Express Receivable Financing Corporation III LLC, as transferor (the “Transferor”) and The Bank of New York Mellon, as trustee (the “Trustee”), does hereby certify as follows: 

Capitalized terms used in this Certificate have their respective meanings set forth in the Pooling and Servicing Agreement or
the Series 2019-1 Supplement, dated as of February 14, 2019, among TRS, the Transferor and the Trustee (as amended and supplemented, the “Supplement”), as applicable. 

Pursuant to Section 5.01 of the Series Supplement, the Servicer instructed the Trustee to pay in accordance with
Section 5.01 from the Interest Funding Account or the Principal Funding Account, as applicable, the following aggregate amounts during the year ended December 31, 20[    ]: 

 

							
	A)	 	Pursuant to subsection 5.01(a):	 	
			
		 	Interest distributed to Class A Certificateholders	 	    $                            
             
			
	B)	 	Pursuant to subsection 5.01(b):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, if applicable, principal distributed to the Class A Certificateholders	 	    $                            
             
			
	C)	 	Pursuant to subsection 5.01(c):	 	
			
		 	Interest distributed to Class B Certificateholders	 	    $                            
             
			
	D)	 	Pursuant to subsection 5.01(d):	 	
			
		 	On the Expected Final Payment Date or a Special Payment Date, if applicable, on or after the date Class A Invested Amount is paid in full, principal distributed to the Class B Certificateholders	 	    $                            
             
			
	E)	 	Pursuant to subsection 5.01(e):	 	
			
		 	Aggregate amount distributed to the Collateral Interest Holder in respect of interest	 	    $                            
             
			
		 	Aggregate amount distributed to the Collateral Interest Holder in respect of principal	 	    $                            
             

  
 C-2-1 

 IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this
[    ] day of January, 20[    ]. 
  

			
	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC., as Servicer
		
	By:	 	  

		 	Name:
		 	Title:

  
 C-2-2 

 EXHIBIT D 

FORM OF MONTHLY SERVICER’S CERTIFICATE 

AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC. 

AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST 

The undersigned, a duly authorized representative of American Express Travel Related Services Company, Inc., as Servicer
(“TRS”), pursuant to the Fourth Amended and Restated Pooling and Servicing Agreement, dated as of April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Agreement”), as
supplemented by the Series Supplements (as amended and supplemented, the “Series Supplements”), among TRS, as Servicer, American Express Receivables Financing Corporation III LLC, as Transferor, and The Bank of New York Mellon, as
Trustee, does hereby certify as follows: 
 1.    Capitalized terms used in this Certificate have their
respective meanings as set forth in the Agreement or the Series Supplement, as applicable. 
 2.    TRS is, as of the
date hereof, the Servicer under the Agreement. 
 3.    The undersigned is a Servicing Officer. 

4.    This Certificate relates to the Distribution Date occurring on
                
                , 20     and covers activity from
                
                , 20     through
                
                , 20    . 

5.    As of the date hereof, to the best knowledge of the undersigned, the Servicer has performed in all
material respects all its obligations under the Agreement through the Monthly Period preceding such Distribution Date [or, if there has been a default in the performance of any such obligation, set forth in detail the (i) nature of such
default, (ii) the action taken by the Servicer, if any, to remedy such default and (iii) the current status of each such default; if applicable, insert “None”]. 

6.    As of the date hereof, to the best knowledge of the undersigned, no Pay Out Event occurred on or
prior to such Distribution Date. 
 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate
this      day of                 , 20    . 

 

			
	AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.,
	as Servicer
		
	By:	 	  

		 	Name:
		 	Title:

  
 D-1 

 EXHIBIT E 

FORM OF INVESTMENT LETTER 
 [Date]

 Re:         American Express Credit Account Master Trust; 

    Purchases of Series 2019-1 Collateral Interest 

Ladies and Gentlemen: 

This letter (the “Investment Letter”) is delivered by the undersigned (the “Purchaser”) pursuant to
Section 9.07 of the Series 2019-1 Supplement, dated as of February 14, 2019 (the “Series Supplement”) to Fourth Amended and Restated Pooling and Servicing Agreement, dated as of
April 1, 2018 (as amended and restated and as otherwise amended and supplemented, the “Agreement”), each among The Bank of New York Mellon, as Trustee, American Express Receivables Financing Corporation III LLC, as Transferor, and
American Express Travel Related Services Company, Inc., as Servicer. Capitalized terms used herein without definition shall have the meanings set forth in the Agreement. The Purchaser represents to and agrees with the Transferor as follows: 

 

	 	(a)	 The Purchaser has such knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of its investment in the Collateral Interest and is able to bear the economic risk of such investment. 

  

	 	(b)	 The Purchaser is an “accredited investor,” as defined in Rule 501, promulgated by the Securities
and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”), or is a sophisticated institutional investor. The Purchaser understands that the offering and sale of the Collateral
Interest has not been and will not be registered under the Securities Act and has not and will not be registered or qualified under any applicable “Blue Sky” law, and that the offering and sale of the Collateral Interest has not been
reviewed by, passed on or submitted to any federal or state agency or commission, securities exchange or other regulatory body. 

  

	 	(c)	 The Purchaser is acquiring an interest in the Collateral Interest without a view to any distribution, resale
or other transfer thereof except, with respect to any Collateral Interest or any interest or participation therein, as contemplated in the following sentence. The Purchaser will not resell or otherwise transfer any interest or participation in the
Collateral Interest, except in accordance with Section 9.07 of the Series Supplement and (i) in a transaction exempt from the registration requirements of the Securities Act and applicable state securities or “blue sky” laws;
(ii) to the Transferor or any affiliate of the Transferor; or (iii) to a person who the Purchaser reasonably believes is a qualified institutional buyer (within the meaning thereof in Rule 144A under the Securities Act) that is aware that
the resale or other transfer is being made in reliance upon Rule 144A. In connection therewith, the Purchaser hereby agrees that it will not resell or otherwise transfer the Collateral Interest or any interest therein unless the purchaser thereof
provides to the addressee hereof a letter substantially in the form hereof. 

  

	 	(d)	 No portion of the Collateral Interest or any interest therein may be Transferred, and each Assignee will
certify that it is not, (a) an “employee benefit plan” (as 

  
 E-1 

	 	 
defined in Section 3(3) of ERISA), including governmental plans and church plans, (b) any “plan” (as defined in Section 4975(e)(1) of the Code) including individual
retirement accounts and Keogh plans, or (c) any other entity whose underlying assets include “plan assets” (within the meaning of U.S. Department of Labor Regulation Section 2510.3-101, 29
C.F.R. § 2510.3-101 or otherwise under ERISA) by reason of a plan’s investment in the entity, including, without limitation, an insurance company general account. 

 

	 	(e)	 This Investment Letter has been duly executed and delivered and constitutes the legal, valid and binding
obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles affecting the
enforcement of creditors’ rights generally and general principles of equity. 

  

			
	Very truly yours,
	
	 [NAME OF PURCHASER]

		
	By:  	 	
                     
        

		 	Name:
		 	Title:

  

			
	 AGREED TO AS OF THE DATE FIRST ABOVE

WRITTEN:

	
	 AMERICAN EXPRESS RECEIVABLES

FINANCING CORPORATION III LLC,
 as
Transferor

			
		
	By:	 	  

		 	Name:
		 	Title:

  
 E-2

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