license agreement will terminate on the expiration of the last-to-expire of the university’s issued licensed patents. If
no further patents covered by the license agreement are issued, the license agreement would terminate in 2024. The university
may terminate the agreement in the event of Asterias’ breach of the agreement. Asterias can terminate the agreement upon
60 days’ notice.
Non-Exclusive WARF License
October 7, 2013, Asterias entered into a Non-Exclusive License Agreement with the Wisconsin Alumni Research Foundation (“WARF”)
under which Asterias was granted a worldwide non-exclusive license under certain WARF patents and WARF-owned embryonic stem cell
lines to develop and commercialize therapeutic, diagnostic and research products. The licensed patents include patents covering
methods for growth and differentiation of primate embryonic stem cells. The licensed stem cell lines include the H1, H7, H9, H13,
and H14 hES cell lines.
consideration of the rights licensed to us, Asterias has agreed to pay WARF an upfront license fee and have agreed to additional
payments upon the attainment of specified clinical development milestones, royalties on sales of commercialized products, and,
subject to certain exclusions, a percentage of any payments that Asterias may receive from any sublicenses that Asterias may grant
to use the licensed patents or stem cell lines.
license agreement will terminate with respect to licensed patents upon the expiration of the last licensed patent to expire; with
respect to the licensed stem cell lines, the license agreement will remain in force until terminated by either party in accordance
with the termination provisions. Asterias may terminate the license agreement at any time by giving WARF prior written notice.
WARF may terminate the license agreement if payments of earned royalties, once begun, cease for a specified period of time or
if Asterias and any third parties collaborating or cooperating with Asterias in the development of products using the licensed
patents or stem cell lines fail to spend a specified minimum amount on research and development of products relating to the licensed
patents or stem cell lines for a specified period of time.
also has the right to terminate the license agreement if Asterias breaches the license agreement or become bankrupt or insolvent
or if any of the licensed patents or stem cell lines are offered to creditors.
will indemnify WARF and certain other designated affiliated entities from liability arising out of or relating to the death or
injury of any person or damage to property due to the sale, marketing, use, or manufacture of products that are covered by the
licensed patents, or licensed stem cells, or inventions or materials developed or derived from the licensed patents or stem cell
Agreement with Geron
connection with Asterias’ acquisition of Geron’s stem cell assets, Asterias entered into a royalty agreement with
Geron (the “Royalty Agreement”) pursuant to which Asterias agreed to pay Geron a 4% royalty on net sales
(as defined in the Royalty Agreement), by Asterias or any of Asterias’ affiliates or sales agents, of any products that
Asterias develops and commercializes that are covered by the patents Geron contributed to us. In the case of sales of such products
by a person other than Asterias or one of Asterias’ affiliates or sales agents, Asterias will be required to pay Geron 50%
of all royalties and cash payments received by Asterias or by Asterias’ affiliate in respect of a product sale. Royalty
payments will be subject to proration in the event that a product covered by a patent acquired from Geron is sold in combination
with another product that is not covered by a patent acquired from Geron. The Royalty Agreement will terminate at the expiration
or termination date of the last issued patent contributed by Geron under the Royalty Agreement. Asterias estimates that the latest
patent expiration date will be in 2032.