Exhibit 4.2


 





Anchiano Therapeutics Ltd.


 


December 19, 2018


 


Clal Biotechnology Industries Ltd.


 


Ladies and Gentlemen:


 


Re: Information Rights


 


This letter confirms
our agreement and undertaking that subject to and following the initial public offering of American Depositary Receipts representing
ordinary shares of Anchiano Therapeutics Ltd. (the “Company”) on the Nasdaq Global Market, Clal Biotechnology
Industries Ltd. (the “Shareholder”) shall be entitled to the information rights set forth in this letter agreement
(this “Agreement”), subject to the terms set forth herein.


 


1.        
Effectiveness of Rights. The Shareholder shall have the rights set forth in Sections 2 and 3 of this Agreement until
the Shareholder is no longer required to make disclosure of the relevant information relating to the Company in immediate and periodic
reports pursuant to the Israeli Securities Law 5728-1968, as amended, or any other securities laws applicable to the Shareholder
(the "Securities Law”) (the “Rights Period”).


 


2.        
Rights to Certain Financial Information.


 


2.1.      During the Rights Period, the Company shall deliver to the Shareholder:


 


(i)   
Annual financial statements of the Company (including a balance sheet, statement of income, statement of shareholders equity,
statement of cash flow and related notes to the financial statements, as well as subsequent event letters for the dates designated
by the Shareholder) in respect of each fiscal year, signed by the Company, audited by a reputable accounting firm and accompanied
by a customary signed opinion of such firm, within seven (7) days from the approval of such financial statements by the Company’s
board of directors but in any event within sixty (60) days after the end of such fiscal year of the Company. In addition, the Company
shall deliver to the Shareholder the draft of the above within fifty (50) days after the end of such fiscal year prior to furnishing
the signed financial statements;


 


(ii) 
Quarterly financial statements of the Company in respect of each of the first three (3) fiscal quarters of each fiscal year
of the Company (including a balance sheet, statement of income, statement of shareholders equity and statement of cash flow and
related notes to the financial statements, as well as subsequent event letters for the dates designated by the Shareholder), signed
by the Company and un-audited but reviewed by a reputable accounting firm and accompanied by a customary signed review report
of such firm, within seven (7) days from the approval of such financial statements by the Company’s board of directors but
in any event within thirty-five (35) days following the end of such fiscal quarter of the Company. In addition, the Company shall
deliver to the Shareholder the draft of the above within thirty (30) days following the end of such fiscal quarter prior to furnishing
the signed financial statements; and


 


(iii)  Consent letters from the accountants and appraisals (insofar as the Company's financial statements include a valuation report)
for the inclusion thereof in the Shareholder’s filings and financial statements, to the extent that the Shareholder determines
that such inclusion is required under the Securities Law.


 


(iv)  Any other information and/or documentation reasonably required by the Shareholder to enable it to duly prepare its audited
and non-audited consolidated financial statements (both annual and quarterly) and other required reports.


  


2.2.      All financial statements and other information provided pursuant to this Section 2 shall be: (i) prepared (to the extent
applicable) in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards
Board or if not prepared so, shall include a reconciliation report to IFRS; and (ii) to the extent required by the Shareholder,
audited, in accordance with the Public Company Accounting Oversight Board (PCAOB) rules and standards. The said financial statements
will be prepared by independent accountants, selected by the Company and approved by the Company’s board of directors. Such
financial statements and other information shall reflect any adjustments or modifications reasonably requested by the Shareholder
which are necessary for the Shareholder to comply with accounting standards and reporting requirements applicable to it under the
Securities Law.


 






     


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2.3.      During the Rights Period, the Company shall cooperate with the Shareholder, as the Shareholder may reasonably request, in
order to assist it in meeting its obligations under the Israeli SOX and US SOX.


 


 3.        
Rights to Other Information.




 


3.1.      During the Rights Period, in the event that the Shareholder reasonably determines that information with respect to the Company
is required to be disclosed by the Shareholder either: (i) by an immediate report under the Israeli Securities Law; or (ii) in
any periodic report, prospectus, any other document prepared in connection with any offerings of securities by the Shareholder,
or any other public report required under the Securities Law (the information under sub sections (i) and (ii) above will be referred
to as "Material Information"), then the Company shall provide such Material Information to the Shareholder (including
a description of such Material Information) within a reasonable period following a written request of the Shareholder to enable
the Shareholder to comply with its reporting obligations in a timely manner and in accordance with the applicable rules (including,
but not limited to, the Israeli Securities Law and the regulations promulgated thereunder).


 


3.2.      During the Rights Period, in the event that the Company or the Shareholder becomes aware of any Material Information relating
to the Company, then the Company will provide to the Shareholder any such Material Information (including a written description
of such Material Information) within a reasonable period following becoming aware of such Material Information or within a reasonable
period following receiving a written request from the Shareholder to disclose such Material Information, whichever is earlier,
in order for the Shareholder to comply with its disclosure obligations in a timely manner and in accordance with the applicable
rules (including, but not limited to, the Israeli Securities Law and the regulations promulgated thereunder).


 


3.3.      During the Rights Period, the Company shall provide the Shareholder with a draft of the annual report on Form 20-F (or,
if applicable, a draft annual report on Form 10-K) not later than fifty (50) days after the end of such fiscal year and a final
duly approved copy within sixty (60) days after the end of such fiscal year, provided that the first annual report on Form 20-F
shall be provided not later than seventy (70) days after the end of the fiscal year.


 


3.4.      The obligations of the Company under Sections 3.1 and 3.2 above shall be solely to the extent that (x) providing such information
may not jeopardize the Company’s attorney-client privilege or cause the Company or any subsidiary thereof to be in violation
of any applicable law, and (y) the specific information which is required to be delivered to the Shareholder under this Section
3 does not relate to specific events, occurrences or circumstances with respect to which there is a conflict of interest between
the Company and the Shareholder. Without derogating from the provisions of Sections 3.10 and 3.2 above, the Shareholder shall provide
a draft of its proposed disclosure to the Company in advance of such disclosure so that, to the extent reasonably possible, the
Company has a reasonable period of time to review and comment on such disclosure and prepare its disclosure relating to such Material
Information and publicly disclose such information prior to disclosure by the Shareholder. The Shareholder shall reasonably consider
revising its disclosure on matters relating to the Company based on any comments provided by the Company to such draft proposed
disclosure.


 


3.5.      The Shareholder shall use reasonable efforts to limit the disclosure of matters pertaining to and provided by the Company
under this Section 3 to the minimum scope necessary.


 


3.6.      In the event the Shareholder is notified in writing by the Company that disclosure
of any information provided by the Company under this Section 3 would be materially detrimental
to the Company (for example, in the event such disclosure would (i) materially interfere with a significant acquisition, corporate
reorganization, or other similar transaction involving the Company; or (ii) require premature disclosure of material information
that the Company has a bona fide business purpose for preserving as confidential), the Shareholder shall consider whether
and exert reasonable efforts (subject to its obligations under the Securities Law)
to: (i) postpone disclosure of any such information; or (ii) revise its disclosure on matters relating to the Company based on
any comments provided by the Company to such draft proposed disclosure; or (iii) any other steps that may address the Company's
concerns.


 






     


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 4.        
Confidentiality.




 


4.1.      The Shareholder agrees that it will keep confidential and will not disclose, divulge, or use for any purpose other than
disclosure by the Shareholder pursuant to its reporting obligations under the Securities Law, any information obtained from the
Company pursuant to the terms of this Agreement (including, without limitation, any information of the Company’s intention
to file a registration statement), unless such information: (a) is known or becomes known to the public in general (other than
as a result of a breach of this Agreement by the Shareholder), (b) is or has been made known or disclosed to the Shareholder by
a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided,
however, that the Shareholder may disclose such confidential information (i) to its officers, attorneys, accountants, consultants
and other professionals to the extent necessary to determine the scope (if any) of required disclosure of such confidential information
by the Shareholder pursuant to the Securities Law and to prepare any such required disclosure; or (ii) as may otherwise be required
by law pursuant to any lawful demand of any competent regulatory authority, provided that, without limitation of Section
3 above, the Shareholder promptly notifies the Company of such disclosure, takes reasonable efforts to minimize the extent of any
such required disclosure and reasonably cooperates with the Company to seek a protective order to prevent any public disclosure.


 


4.2.      The Shareholder acknowledges that any information received from the Company under this letter may be deemed material nonpublic
information that has not been disclosed to the public, and such Shareholder is prohibited from, directly or indirectly, (i) trading
in the Company’s securities, including but not limited to, puts, calls, warrants, options and convertible securities whether
or not issued by the Company (each, a “Derivative Security”), (ii) advising others to trade or to refrain from
trading in the Company’s securities or in any Derivative Securities, or (iii) disclosing the material information to any
other person for the purpose of enabling such person to trade or to refrain from trading in the Company’s securities or in
any Derivative Securities. This Section 4 shall survive the expiration and/or termination of this Agreement, and shall remain in
effect with respect to each item of such information until such information is fully disclosed to the public or until such information,
although not disclosed, ceases to be material.


 


5.        
Successors and Assigns. The rights and obligations under this Agreement may not be assigned by either party hereto
without the consent of the other party.


 


6.        
Governing Law; Jurisdiction. This Agreement and any controversy arising out of or based upon this Agreement shall
be governed by and construed in accordance with the internal laws of the State of Israel, without regard to any conflict of law
principles that would result in the application of any law other than the law of the State of Israel. The parties (a) hereby irrevocably
and unconditionally submit to the jurisdiction of the competent courts of Tel Aviv-Jaffa, Israel for the purpose of any suit, action
or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding
arising out of or based upon this Agreement except in the competent courts of Tel Aviv-Jaffa, Israel.


 


7.        
Counterparts. This Agreement may be executed and delivered in two or more counterparts, each of which shall be deemed
an original, and all of which together shall constitute one and the same instrument.


 


8.        
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.


 






     


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9.        
Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall
be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by electronic mail if sent during
normal business hours of the recipient, and if sent after such normal business hours, then on the next business day, (c) five (5)
days after having been sent by registered mail, return receipt requested, postage prepaid, or (d) one (1) business day after the
business day of deposit with a nationally recognized overnight courier, specifying next business day delivery, with written verification
of receipt. All communications shall be sent to the respective parties at their address as kept on record with the Company, or
to such email address or address of a party as subsequently modified by such party’s written notice given in accordance with
this paragraph 9.


 


10.      
Consent Required to Amend or Waive. This Agreement may be amended or modified and the observance of any term hereof
may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument
executed by the Company and the Shareholder.


 


11.      
Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability
of any other provision hereof.


 


12.      
Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties hereto with
respect to the subject matter hereof, and any other written or oral agreement, understanding or arrangement relating to the subject
matter hereof existing between the parties are expressly canceled and shall have no further force and effect.


 


 


[Signature
Page Follows]


 




     


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	 	Sincerely, 	 
	 	 	 	 
	 	ANCHIANO THERAPEUTICS LTD.	 
	 	 	 	 
	 	By: 	/s/ Jonathan Burgin	 
	 	Name:	Jonathan Burgin	 
	 	Title:  	COO & CFO	 
	 	 	 	 
	 	By: 	/s/ Or Dolev	 
	 	Name:	Or Dolev	 
	 	Title:  	Controller	 







  


 





	ACKNOWLEDGED AND ACCEPTED:	 
	 	 	 	 
	 	 	 	 
	CLAL BIOTECHNOLOGY INDUSTRIES LTD.	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Ofer Gonen	 
	 	Name:	Ofer Gonen	 
	 	Title:	CEO	 
	 	 	 	 
	By:	/s/ Assaf Segal	 
	 	Name:	Assaf Segal	 
	 	Title:	CFO	 







 


 


[Signature Page of Letter Agreement re.
Information Rights; December 2018]