Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 104

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 104
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 of the manufacture or sale of products by it. Even if Kadimastem were able to obtain a license, Kadimastem could
be non-exclusive, thereby giving its competitors access to the same technologies licensed to it. Kadimastem could be forced, including
by court order, to cease commercializing the infringing technology. In addition, Kadimastem could be found liable for monetary damages,
including treble damages and attorneys’ fees if Kadimastem is found to have willfully infringed a patent. A finding of infringement
could prevent Kadimastem from commercializing its technology or force Kadimastem to cease some of its business operations, which could
materially harm Kadimastem’s business. Claims that Kadimastem has misappropriated the confidential information or trade secrets
of third parties could have a similar negative impact on its business.

Kadimastem may be subject to claims challenging the inventorship of its patents and other intellectual property.

Kadimastem may be subject
to claims that former employees, collaborators or other third parties have an interest in its patents or other intellectual property as
an inventor or co-inventor. For example, Kadimastem may have inventorship disputes arise from conflicting obligations of consultants or
others who are involved in developing its product candidates. Litigation may be necessary to defend against these and other claims challenging
inventorship. If Kadimastem fails in defending any such claims, in addition to paying monetary damages, it may lose valuable intellectual
property rights, such as exclusive ownership of, or right to use, valuable intellectual property. Such an outcome could have a material
adverse effect on its business. Even if it is successful in defending against such claims, litigation could result in substantial costs
and be a distraction to management and other employees. In addition, Kadimastem may receive less revenue from future products if any of
its employees successfully claim for compensation for their work in developing Kadimastem’s intellectual property, which in turn
could impact Kadimastem’s future profitability.

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Under applicable employment laws, Kadimastem may not be able to enforce covenants not to compete and therefore may be unable to prevent its competitors from benefiting from the expertise of some of its former employees. In addition, employees may be entitled to seek compensation for their inventions irrespective of their agreements with it.

Kadimastem generally enters
into non-competition