Commitments and Contingencies
December 10, 2015, BioTime entered into a lease for 30,795 square feet of office and laboratory space in two buildings located
in an office park in Alameda, California (the “Alameda Lease”). The term of the Alameda Lease is seven years and BioTime
has an option to renew the term for an additional five years. BioTime moved into the facility and the term of the Alameda Lease
commenced effective February 1, 2016.
rent under the Alameda Lease on February 1, 2018 was $68,673 per month, and will increase by approximately 3% annually on every
February 1 thereafter during the lease term. The lease payments allocated to the lease liability for leasehold improvements reimbursed
by the landlord are amortized as debt service on that liability over the lease term.
addition to base rent, BioTime will pay a pro rata portion of increases in certain expenses, including real property taxes, utilities
(to the extent not separately metered to the leased space) and the landlord’s operating expenses, over the amounts of those
expenses incurred by the landlord. As security for the performance of its obligations under the Alameda Lease, BioTime provided
the landlord with an initial security deposit of approximately $847,000, which was reduced by $423,000 on February 1, 2018 pursuant
to the lease agreement, and will be further reduced by an additional $346,000 after the first thirty-six months of the lease term,
by applying those amounts to future rent payment obligations under the lease, if BioTime is not in default under the Lease. The
security deposit amount under the Alameda Lease is considered restricted cash (see Note 2).
York Leased Office Space
currently pays $5,050 per month for the use of approximately 900 square feet of office space in New York City, which is made available
to BioTime for use in conducting meetings and other business affairs, on a month-by-month basis, by one of its directors at an
amount that approximates his cost.
Cure has leased 1,128 square meters (approximately 12,142 square feet) of office and laboratory space in Jerusalem, Israel under
a lease that expires between May 30, 2019 and December 31, 2020, with two additional options to extend the lease for 5 years each.
Base monthly rent is NIS 63,402 (approximately U.S. $18,247 per month). In addition to base rent, Cell Cure pays a pro rata share
of real property taxes and certain costs related to the operation and maintenance of the building in which the leased premises
January 28, 2018, Cell Cure entered into another lease agreement with its current landlord for an additional 934 square meters
(approximately 10,054 square feet) of office space in the same facility in Jerusalem, Israel under a lease that expires on December
31, 2025, with two additional options to extend the lease for 5 years each (the “January 2018 Lease”). The January
2018 Lease commenced on April 1, 2018, and includes a leasehold improvement construction allowance of up to NIS 4,000,000 (approximately
up to $1.2 million) from the landlord. The leasehold improvements are expected to be completed by September 30, 2018. Combined
base rent and construction allowance payments, assuming the full allowance is utilized, for the January 2018 Lease will be NIS
93,470 per month (approximately $27,000 per month) beginning on October 1, 2018.
will be subject to various claims and contingencies in the ordinary course of its business, including those related to litigation,
business transactions, employee-related matters, and others. When BioTime is aware of a claim or potential claim, it assesses
the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably
estimated, BioTime will record a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably
estimated, BioTime will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount involved
could be material. BioTime is not aware of any claims likely to have a material adverse effect on its financial condition or results
has entered into employment agreements with certain executive officers. Under the provisions of the agreements, BioTime may be
required to incur severance obligations for matters relating to changes in control, as defined in the agreements, and involuntary