On June 19, 2018, Orgenesis Inc. and Mircod Limited entered into a Collaboration and License Agreement for the research, development and commercialization of potential key technologies related to biological sensing for Orgenesis’s clinical development and manufacturing projects. Within 45 days of the execution of the Collaboration Agreement, the parties are to approve a written project development plan outlining each party’s responsibilities with respect to the Project, and Orgenesis will be funding the projected development costs as outlined in the development plan. Under the terms of the Collaboration Agreement, Orgenesis agreed to remit an upfront payment of $50,000. Under the Collaboration Agreement, all results of such collaboration (“Project Results”) shall be jointly owned by Mircod and the Company. The Company was granted an exclusive, worldwide sublicensable license under Mircod’s right in such Project Results to use and commercialize Project Results in consideration for a royalty of 5% of Net Sales (as defined in the Collaboration Agreement) of products incorporating Project Results. Orgenesis will be solely responsible for the commercialization of any resulting products. Subject to completion of the Development Project, Mircod and Orgenesis are to negotiate and enter into a manufacturing and supply agreement under which Mircod is to manufacture and supply products incorporating the Project Results and, at the Company’s request, to provide support and maintenance service for such products. If for whatever reason the parties fail to enter into such manufacturing and supply agreement within 90 days of the completion of the Development Project or if Mircod is unable to perform such services, Orgenesis is entitled to manufacture the products, in which event Mircod will be entitled to a payment of $80,000 and royalties on Net Sales are to increase to 8% of Net Sales.