On January 3, 2023, Fate Therapeutics, Inc. received notice of termination from Janssen Biotech Inc. of the Collaboration and Option Agreement dated April 2, 2020 by and between the Company and Janssen, pursuant to which Janssen and the Company had agreed to collaborate to develop iPSC-derived CAR NK- and CAR T-cell product candidates for the treatment of cancer. Janssen provided notice of termination after the Company declined a proposal from Janssen for continuation of the Collaboration Agreement on revised terms. The termination will take effect on April 3, 2023. Under the terms of the Collaboration Agreement, in connection with the termination, all licenses and other rights granted to either party pursuant to the Collaboration Agreement will terminate, subject to limited exceptions set out in the Collaboration Agreement; both parties will wind down any development, commercialization and manufacturing activities under the Collaboration Agreement; neither party will have any right to continue to develop, manufacture or commercialize any collaboration candidate or collaboration product or use the other party's materials; and neither party is restricted from independently developing, manufacturing, or commercializing any product, including any products directed to the same antigens as those of any collaboration candidate or collaboration product.