Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 110

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 110
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 constituted under the Patent Law, shall determine whether the employee is entitled to remuneration for these
inventions. The Committee has not yet determined the method for calculating this Committee-enforced remuneration. While it has previously
been held that an employee may waive his or her rights to remuneration in writing, orally or by conduct, litigation is pending in the
Israeli labor court is questioning whether such waiver under an employment agreement is enforceable. Although Kadimastem’s Israeli
employees have agreed that Kadimastem exclusively own any rights related to their inventions, Kadimastem may face claims demanding remuneration
in consideration for employees’ service inventions. As a result, Kadimastem could be required to pay additional remuneration or
royalties to its current and/or former employees, or be forced to litigate such claims, which could negatively affect Kadimastem’s
business.

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Kadimastem received Israeli government grants for certain of its research and development activities, the terms of which may require it to pay royalties and to satisfy specified conditions in order to manufacture products and transfer technologies outside of Israel. If Kadimastem fails to satisfy these conditions, it may be required to pay penalties and refund grants previously received.

Kadimastem’s research
and development efforts have been financed in part through royalty-bearing grants that it received from the IIA. Kadimastem are further
required to comply with the requirements of the Israeli Encouragement of Industrial Research, Development and Technological Innovation
Law, 5744-1984, as amended, and related regulations, or the Research Law, with respect to those past grants. When a company develops know-how,
technology or products using IIA grants, the terms of these grants and the Research Law restrict the transfer or license of such know-how,
and the transfer of manufacturing or manufacturing rights of such products, technologies or know-how outside of Israel, without the prior
approval of the IIA. Therefore, the discretionary approval of an IIA committee would be required for any transfer or license to third
parties inside or outside of Israel of know how or for the transfer outside of Israel of manufacturing or manufacturing rights related
to those aspects of such technologies. Kadimastem may not receive those approvals. Furthermore, the IIA may impose certain conditions
on any arrangement under which it permits Kadimastem to transfer technology or development.

The transfer or license of
IIA-supported technology