Company: NCEL
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044868
Chunk: 222

Company: NewcelX Ltd.
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4
Chunk 222
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6, or upon the execution of a commercialization agreement. The agreement may be terminated at any time if either party commits a
material breach or if either party goes into bankruptcy, liquidation, makes a general assignment for the benefit of its creditors,
or becomes a party to dissolution proceedings.

Cooperation and Project Funding Agreement with
iTolerance, Inc.

On May 23, 2023, Kadimastem, the Israel-United States
Binational Industrial Research and Development Foundation, or the Foundation, and iTolerance, Inc., or iTolerance, entered into a Pharma
Cooperation and Project Funding Agreement for the clinical development of iTol-102, or the Proposal, and collectively, the iTolerance
Co-Development Agreement. Under the iTolerance Co-Development Agreement, the Foundation agreed to fund the Proposal of up to $1,000,000,
or the Foundation Grant, with repayment made from any gross revenues received from any products developed under the Proposal, or a Product.
Following the earlier of (1) one year following an IND approval (or equivalent to any regulatory agency); (b) commencement of
the marketing of any Product; or (c) the continuation of the development of the Product, the Foundation Grant shall become immediately
payable to the Foundation, with the amounts to be repaid each year subject to certain maximum limits on the amount of gross sales to be
repaid each year. Under the iTolerance Co-Development Agreement, the governments of Israel and the United States were granted a non-exclusive,
irrevocable, royalty-free license to use any product for any purpose. The Foundation has the right to revoke the Foundation Grant upon
the occurrence, among other events, a fundamental breach of the agreement, insolvency, change in business, dispute between, or material
advance change in financial position of either Kadimastem or iTolerance.

Israel Innovation Authority Grant Framework

Under a general framework agreement with the IIA,
Kadimastem received approximately $13.9 million in grants, or the Grant, from the IIA under Incentive Track No. 1 - The
R& D Fund, or the Fund, under which it agreed to pay royalties ranging from 3% - 3.5% on sales derived from products
developed with grant funding received from the Fund, as long as total sales are under $70 million, or 5% of such sales if they exceed
$70 million, until the total Grant is repaid (subject to inflation