On November 7, 2022, Fate Therapeutics, Inc. (“Fate”) and Ono Pharmaceutical Co., Ltd. (“Ono”) entered into a letter agreement (“Letter Agreement”) in connection with the Collaboration and Option Agreement between Fate and Ono dated September 14, 2018, as amended by a letter agreement dated December 4, 2020 and an amendment dated June 28, 2022 (the “Agreement”). Pursuant to the Agreement, as amended by the Letter Agreement, Fate and Ono are conducting research for the joint development and commercialization of off-the-shelf iPSC-derived chimeric antigen receptor (CAR) NK cell and T-cell product candidates targeting two solid tumor antigens. The first solid tumor antigen program targets human epidermal growth factor receptor 2 (HER2) for which the companies are conducting preclinical development of an off-the-shelf, iPSC-derived CAR T-cell candidate (“Collaboration Candidate 2”).

Fate has granted to Ono, during a specified period of time, an option to obtain an exclusive license under certain intellectual property rights to develop and commercialize Collaboration Candidate 2 in all territories of the world, with Fate retaining the option to co-develop and co-commercialize Collaboration Candidate 2 in the United States and Europe under a joint arrangement with Ono. Pursuant to the Letter Agreement, both Fate and Ono exercised their respective options to Collaboration Candidate 2, and accordingly Ono is obligated to pay Fate an option exercise fee of $12.5 million under the Agreement.