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                                                                   EXHIBIT 10.26


                               DIRECTOR AGREEMENT

THIS DIRECTOR AGREEMENT (the "Agreement") is made as of this 13th day of
January, 2006 between Omrix Biopharmaceuticals, Inc., a Delaware corporation,
(the "Company") and Fredric Price (the "Director") with respect to services to
be performed for the Company by the Director. The parties' respective addresses
are as set forth below their signature lines. In consideration of the mutual
terms, conditions and covenants set forth herein, the Company and the Director
hereby agree as follows:

1.    Purpose

      The Director wishes to be engaged, or to continue to be engaged, as a
      director by the Company and is willing to provide certain skills and
      abilities to the Company (the "Engagement"). Accordingly, this Agreement
      will define the terms upon which the Company will engage the Director.

2.    Duties and Services

      The Director will act as the Chairman of the Board of Directors of the
      Company ("Board") and will serve on Board Committees as voted on by the
      Board and the Committees, as the case may be. Initially, the Director will
      the Chairman of the Audit Committee of the Board, the Chairman of the
      Governance and Nominating Committee of the Board, a member of the
      Compensation Committee of the Board and advisor to the Company. The
      Director shall be subject to Internal Revenue Code 1099 tax reporting.
      Among the Director's duties will be presiding over meetings of the
      stockholders and meetings of the Board, calling special meetings of the
      Board, receiving Board and officer resignations, receiving accountings of
      transactions and of the financial condition of the Company and such other
      specific duties that are normal and customary to such position and as may
      reasonably be assigned to Director from time to time by the Board,
      including but not limited to assisting the Company in financings, such as
      an initial public offering ("IPO"), in strategic decision-making regarding
      partnerships, and in providing general guidance to management and the
      Board. The Director will report to the Board and coordinate his activities
      with the Board and the Company.

3.    Compensation and Stock Incentive Grant

      3.1   In addition to Thirty Thousand Dollars ($30,000) per year in his
            capacity as a director, the Director will be paid Ninety Thousand
            Dollars ($90,000) per year for service as Chairman of the Board,
            paid together in equal monthly installments of Ten Thousand Dollars
            ($10,000) (the "Monthly Payment") on the first business day of each
            month in arrears for services rendered to the Company, plus
            Reimbursable Expenses, as defined in Section 3.2 below. The Director
            shall spend as much time as is necessary to perform his Duties and
            Services as per Section 2 above on Company affairs commencing on the
            date hereof, and shall retain adequate records of same, which shall
            be made available to the Company upon request. The

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            Director agrees not to assume more than two additional Chairman of
            the Board director positions such as this one.

      3.2   Reimbursable Expenses shall include travel and out-of-pocket
            expenses necessary in order to perform services under this
            Agreement, including but not limited to parking, tolls, mileage at
            the rate of 37.5 cents per mile, business class airfare, necessary
            hotel accommodations and other expenses resulting from the
            Director's performance of services under this Agreement, provided
            that the Director shall have submitted to the Company written
            expense statements and other supporting documentation in a form that
            is reasonably satisfactory to the Company. For international travel,
            the Director will use the Company's services to obtain and issue the
            most economical electronic business class air tickets, whenever
            practical. The Company and the Director will equally share the cost
            of a Tandberg 1000 video conferencing system or Webex system (or one
            of similar performance at lower cost), which will facilitate the
            Director's interactions with members of Omrix's management and the
            Board.

      3.3   The Director shall be entitled to participate in Omrix's 2004 Equity
            Incentive Plan and has received a grant of non-qualified stock
            options exercisable for 300,000 shares at a strike price of $2.25,
            vesting over a four (4) year period with 25% of the shares vesting
            on January 13, 2006 and the balance in thirty six (36) approximately
            equal monthly installments.

4.    Nature of Relationship

      4.1   This Agreement is not an employment agreement. With the exception of
            the stock grant referenced in paragraph 3.3 above and any and all
            benefit plans from time to time in effect for members of the Board
            generally, the Director is not entitled to any of the benefits that
            the Company provides to its employees.

      4.2   The Director shall be solely responsible for taxes and other wage
            deductions incurred as a result of performing services under this
            Agreement. The Company will not pay or withhold federal, state or
            foreign government payroll taxes of any kind, including but not
            limited to FICA, FUTA and MUTA, with respect to its payments to the
            Director.

5.    Non-Disclosure, Inventions and Non-Competition Agreement

      The Director has executed and will be bound by the Non-Disclosure,
      Inventions, and Non-Competition Agreement between the Company and the
      Director, dated January 13, 2005, the terms of which are expressly
      incorporated into this Agreement.


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6.    Term and Termination

      6.1   Unless earlier terminated pursuant to this Section 6.1, the term of
            service as the Chairman of the Board shall be governed by the
            organizational documents of the Company and shall expire at the
            annual meeting of stockholders of the Company held in 2008. If (i)
            the Director is terminated for Cause, as defined in Exhibit A, or
            (ii) the Director resigns without Good Reason, as defined in Exhibit
            A, the Director shall retain such portion of the Director's options
            under Section 3.3, which have vested as of the termination date and
            the Director shall have 30 days from the termination date to
            exercise such vested options, all as provided in the option grant.
            If (i) the Director is terminated without Cause, as defined in
            Exhibit A, or (ii) the Director resigns for Good Reason, as defined
            in Exhibit A, the Director shall retain such portion of Director's
            options under Section 3.3 that vest within two years of the
            termination date, such vesting shall accelerate to the termination
            date, and the Director shall have 365 days from the termination date
            to exercise such vested options, all as provided in the option grant
            and, in addition, the Director shall receive twelve (12) Monthly
            Payments as specified in Section 3.1.

      6.2   Upon termination of this Agreement for any reason, or at any time
            upon request of the Company, the Director will immediately return to
            the Company all property belonging to the Company, including without
            limitation all Confidential Information, as defined in the Company's
            Non-Disclosure, Inventions and Non-Competition Agreement, in the
            Director's possession or control, and all notes, drawings, lists,
            memoranda, magnetic disks or tapes, or other recording media
            containing such Confidential Information, whether alone or together
            with non-confidential information, all documents, reports, files,
            memoranda, records, software, credit cards, door and file keys,
            computer access codes, disks and instruction manuals, or any other
            physical or personal property that the Director received, prepared,
            or helped prepare in connection with his performance of services
            under this Agreement. If any such property is not in the Director's
            possession or control, the Director will use his best efforts to
            obtain and return the same, and the Director will not retain any
            copies, duplicates, reproductions, or excerpts thereof, nor will the
            Director show or give any of the above to any third party.

      6.3   The parties acknowledge and agree that if, notwithstanding the
            foregoing, this Agreement should terminate by operation of law or
            for any other reason, the Director's obligations under this
            Agreement, including without limitation the obligations under the
            Company's Non-Disclosure, Inventions and Non-Competition Agreement,
            shall survive and continue in full force and effect, as shall the
            Director's obligation to return all of the Company's property,
            including but not limited to all Confidential Information.


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7.    Miscellaneous

      7.1   Waiver of Breach. The failure of any party at any time or times to
            require performance of any provisions of this Agreement shall in no
            manner affect that party's right, at a later time, to enforce the
            same. A waiver or consent given by the any party on any occasion is
            effective only in that instance and will not be construed as a bar
            to or waiver of any right on any other occasion.

      7.2   Notices. All notices, requests, demands and any other communications
            hereunder shall be made in writing and shall be deemed to have been
            duly given if and when delivered (including delivery by confirmed
            facsimile or email transmission), or three days after being sent by
            recognized overnight delivery service, addressed to the Company and
            the Director at their respective addresses shown below the signature
            lines hereof, or such other address as either may notify to the
            other from time to time.

      7.3   Assignment; Binding Effect. No interest in this Agreement or in the
            Director's rights or obligations hereunder may be assigned by the
            Director, and any such purported assignment shall be void and of no
            force or effect. This Agreement shall be binding upon and shall
            inure to the benefit of the parties and their respective successors
            and other legal representatives and, to the extent that any
            assignment hereof is permitted, to the Company's assigns.

      7.4   Entire Agreement; Amendment. This Agreement and its attachments
            constitute the entire agreement between the parties with respect to
            the subject matter hereof, and unless otherwise provided herein,
            supersedes all prior agreements or understandings, written or oral,
            in respect thereof, whether express or implied. This Agreement may
            be released, discharged, abandoned, supplemented, amended, changed,
            modified, renewed, extended or cancelled, and the terms or covenants
            hereof may be waived, only by a written instrument of concurrent or
            subsequent date, signed by the Director and by a duly authorized
            officer or representative of the Company, or in the case of a
            waiver, signed by the party waiving compliance.

      7.5   Governing Law. This Agreement shall in all events and for all
            purposes be governed by and construed in accordance with the laws of
            the State of Delaware without regard to any choice of law principle
            that would dictate the application of the laws of another
            jurisdiction.

      7.6   Construction. The terms of this Agreement are contractual in nature
            and not a mere recital, and it shall take effect as a sealed
            document. Captions herein are inserted for convenience, do not
            constitute a part of this Agreement, and shall not be admissible for
            the purpose of proving the intent of the parties. This Agreement may
            be executed in two or more


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            counterparts, each of which shall be deemed an original, but all of
            which together shall constitute one and the same instrument, and in
            pleading and proving any provision of this Agreement it shall not be
            necessary to produce more than one such counterpart. Delivery of an
            executed signature page of this Agreement by facsimile transmission
            shall be effective as an originally executed counterpart thereof.

      7.7   Director Representations. The Director represents and warrants that
            neither the execution and delivery of this Agreement nor the service
            as the Chairman of the Board as described herein shall conflict with
            or result in a breach of any of the terms, conditions or provisions
            of any agreement to which the Director is a party or is bound.

      7.8   Enforcement. The parties recognize and acknowledge that the Director
            is engaged under this Agreement to render services of a unique
            character, requiring special expertise and experience by the
            Director. Breach of any of the Director's obligations would injure
            the Company; such injury is likely to be difficult to measure; and
            monetary damages, even if ascertainable, are likely to be inadequate
            compensation for such injury. Therefore, the Company shall be
            entitled, in addition to monetary damages and to any other remedies
            available to the Company under this Agreement and at law, to
            equitable relief, including injunctive relief, and to payment by the
            Director of all costs incurred by the Company in enforcing any
            provision of this Agreement against the Director, including
            reasonable attorney's fees. The election of any one or more remedies
            by the Company shall not constitute a waiver of the right to pursue
            other available remedies.

      7.9   Severability. In the event that any one or more of the provisions
            contained in this Agreement shall, for any reason, be held to be
            invalid, illegal or unenforceable in any respect, such invalidity,
            illegality or unenforceability shall not affect any other provision
            of this Agreement, and all other provisions shall remain in full
            force and effect. If any provision of this Agreement is held to be
            excessively broad, it shall be reformed and construed by limiting
            and reducing it so as to be enforceable to the maximum extent
            permitted by law.

      7.10  Arbitration. Any controversy, claim or dispute arising out of or
            relating to this Agreement or the Director's relationship with the
            Company, including claims for discrimination, claims based on common
            law or statute, either during the term of this Agreement or
            afterwards, between the parties, their assignees, affiliates,
            attorneys, or agents, but excluding any claims arising out of or
            relating to the Company's Non-Disclosure, Inventions, and
            Non-Competition Agreement, shall be settled by arbitration. The
            Parties agree that prior to initiating arbitration they will attempt
            in good faith to settle any such disputes amicably. Arbitration
            shall be conducted by a single arbitrator in accordance with the
            then-prevailing National Rules for the


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            Resolution of Employment Disputes of the American Arbitration
            Association, sitting in Boston, Massachusetts. The parties agree to
            abide by all decisions and awards rendered in such proceedings. Such
            decisions and awards rendered by the arbitrator shall be final and
            conclusive and may be entered in any court having jurisdiction
            thereof as a basis of judgment and of the issuance of execution for
            its collection. All such controversies, claims or disputes shall be
            settled in this manner in lieu of any action at law or equity;
            provided however, that nothing in this Section 7.10 shall be
            construed as precluding the Company or the Director from bringing an
            action for injunctive relief or other equitable relief. The parties
            shall keep confidential the existence of the claim, controversy or
            dispute from third parties, other than the arbitrator, except that
            the Director may disclose the existence of the arbitration
            proceedings to the Director's spouse, attorneys and financial
            advisors, or to the extent such disclosure is required by federal or
            state law or as otherwise agreed to in writing by the Director and
            an authorized agent of the Company, and the Company may disclose the
            existence of the arbitration proceedings for any reasonable business
            purpose or to anyone that the Company, in its discretion, believes
            needs to know the information being disclosed, or as otherwise
            required by law.


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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.


DIRECTOR,                             Omrix Biopharmaceuticals, Inc.


By:     /s/ Fredric D. Price           By:      /s/ Robert Taub
   ---------------------------            ----------------------------------
   Fredric D. Price                       Name: Robert Taub
                                          Title:   CEO
   64 Quarry Lane
   Bedford, New York 10506


   Telephone: 914-234-2268
   Fax: 914-234-6684
   Cell: 914-645-1130


                        By:      /s/ Douglas A. Cotter
                           ----------------------------------
                           Name: Douglas A. Cotter
                           Title:   Director


             [SIGNATURE PAGE TO DIRECTOR AGREEMENT WITH F. PRICE]


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                                    Exhibit A

                                   Definitions

1.    Cause. For purposes of this Agreement, "Cause" shall mean any one or more
      of the following:

      (a)   The breach by the Director of any of the terms of this Agreement
            (other than items 1. (b) and (e) - (i) below) or any other
            agreements executed in connection herewith, provided that the
            Director has not cured such breach within thirty (30) days after the
            Company has sent or delivered written notice of the same to the
            Director and the Director's last known address on file with the
            Company;

      (b)   Disloyalty, gross negligence or dishonesty of the Director in
            rendering services to the Company in accordance with his obligations
            under this Agreement;

      (c)   The failure or refusal of the Director to render services to the
            Company in accordance with his or her obligations under this
            Agreement;

      (d)   The commission by the Director of an act of fraud, embezzlement or
            deliberate disregard of the rules or policies of the Company or the
            commission by the Director of any other action which injures the
            Company;

      (e)   The conviction, or plea of nolo contendere, by the Director of a
            felony;

      (f)   The commission of an act which constitutes unfair competition with
            the Company or which induces any customer of the Company to breach a
            contract with the Company; or

      (g)   The breach by the Director of the Nondisclosure, Inventions and
            Non-Competition Agreement referenced in Paragraph 5 of this
            Agreement.

2.    Good Reason. For purposes of this Agreement, "Good Reason" shall mean any
      one or more of the following, provided that the Director has provided the
      Company with written notice of the same and the Company has failed to cure
      such Good Reason within thirty (30) days of receipt of such written
      notice:

      (a)   A reduction in the Director's compensation or benefits as set forth
            in the Agreement, other than in connection with a company-wide
            reduction of employee and/or Director compensation or benefits;

      (b)   A failure by the Company to pay to the Director when due any
            compensation or other material benefit due to him; or


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      (c)   A breach by the Company of any material term or provision of this
            Agreement.

      (d)   The removal of the Director from his position as Chairman of the
            Board other than for Cause as defined above.