Common use of Permitted Subcontracting Clause in Contracts

Permitted Subcontracting. The license granted by Stanford in Section 3.1 includes the right to engage in Permitted Subcontracting, as defined herein. “Permitted Subcontracting” shall include the grant by Fate, its Affiliate, or sublicensee of rights under this Agreement to (i) third parties contractually bound to Fate, an Affiliate or sublicensee for the sole purpose of marketing or promoting a Licensed Product, (ii) third party contract research organizations contractually bound to Fate, an Affiliate or sublicensee with no other rights under Licensed Patents other than to perform research and development on behalf of Fate, an Affiliate or sublicensee; and (iii) third party contract manufacturing organizations contractually bound to Fate, an Affiliate or sublicensee with no other rights under Licensed Patents than to manufacture on behalf of Fate, an Affiliate or sublicensee. For clarity, Permitted Subcontracting is not considered sublicensing of rights under this Agreement. * Confidential Information, indicated by [***], has been omitted from this filing and filed separately with the Securities and Exchange Commission.