property, or IP, including the parties interest in the joint IP, solely to conduct any development activities agreed to by the steering committee as set forth in any development plan. Unless
otherwise mutually agreed by the parties in the development plan for a project, we shall be responsible for all costs and expenses incurred by either party related to conducting clinical trials and other activities under each development program,
including costs associated with patient enrollment, materials and supplies, third-party staffing and regulatory filings. Altor supplies free of charge, sufficient amounts of Altor products for all
pre-clinical
requirements and all clinical requirements for up to 400 patients in phase I and/or phase II clinical trials, as required under the development plan for a project per the
Co-Development
Agreement.
Each company will own an undivided interest in and to all rights, title and interest in and to the joint product rights. The
Co-Development
Agreement expires upon the fifth anniversary of the effective date. We dosed patients with
N-803,
an
IL-15
superagonist,
in several phase Ib/II trials during the years ended December 31, 2018 and 2017. No charges for supplies by Altor have been incurred in association with these trials since January 1, 2017.
Services Agreement with NantHealth Labs, Inc.
In March 2018, we entered into an agreement with NantHealth Labs, Inc., or NantHealth Labs (formally known as Liquid Genomics, Inc.), to
obtain blood-based tumor profiling services. NantHealth Labs is a related party, as it is a wholly owned subsidiary of NantHealth, Inc., a majority owned subsidiary of NantWorks. We are obligated to pay NantHealth Labs fixed,
per-patient
fees. The agreement has an initial term of five years and renews automatically for successive
one-year
periods, unless terminated earlier. Since
January 1, 2017, we incurred $0.3 million under this agreement.
Clinical Trial Agreements with John Lee, M.D. and Leonard
Sender, M.D., Inc., a Professional Medical Corporation, dba Chan Soon-Shiong Institutes for Medicine
In 2017 and 2018, we entered
into multiple agreements with John Lee, M.D. and Leonard Sender, M.D., Inc., a professional medical corporation, dba Chan Soon-Shiong Institutes for Medicine, or CSSIM, in El Segundo, California, to conduct various clinical trials. CSSIM is a
related party as it is owned by two of our officers and NantWorks provides administrative services to CSSIM. One of our officers is an investigator for the trials on behalf of CSSIM. Since January 1, 2017, we incurred $3.8 million under
this agreement.
Sublease Agreement with Tensorcom, LLC
In April 2017, we entered into a sublease agreement with Tensorcom, LLC , or Tensorcom, formally known as Tensorcom, Inc., for a portion
of our San Diego, California, research and development laboratory and office space. The lease ran from May 1, 2017 through April 30, 2018. Tensorcom is a related party, as it is an affiliate of NantWorks. The sublease included a portion of
the premises consisting of approximately 6,557 rentable square feet of space. The monthly base rent was $25,000 per month. Since January 1, 2017, we received $0.3 million under this agreement.
Genomic and Proteomic Services Agreement with NantOmics, LLC
In June 2015, we entered into an agreement, as amended in May 2018, with NantOmics, LLC, or NantOmics, which is an affiliate of
NantWorks, to obtain genomic sequencing and proteomic analysis services, as well as related data management and bioinformatics services, exclusively from NantOmics. We will have rights to use the data and results generated from NantOmics
services in connection with the performance of the particular oncology trial with respect to which the services were performed, but NantOmics will own the data and results, as well as any other intellectual property it creates in performing these
services for us. We are obligated to pay NantOmics a fixed, per sample fee, determined based on the type of services being provided. The agreement has an initial term of five years and renews automatically for successive
one-year
periods, unless
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