Document:

AGREEMENT

 

This
Agreement is entered into as of this 4th day of January, 2018 (the “Effective Date”), by and between
CardioSert Ltd. (p.c. 514755776) a company formed under the laws of Israel, having a place of business at 53 Derech Bar
Yehuda, Nesher, Israel. (“CardioSert”) and Microbot Medical Ltd. (p.c. 514519412), a company
formed under the laws of the State of Israel (“Microbot”), a wholly owned subsidiary of Microbot Medical Inc.
(US) having a place of business at 5 Hamada St. Yokneam, Israel (“Microbot Inc.”) (each of CardioSert and Microbot,
a “Party”, and collectively the “Parties”)

 

PREAMBLE

 

	WHEREAS,
    	 	CardioSert
    represents it has independently developed the Invention; and 
	 	 	 
	WHEREAS,
    	 	CardioSert
    represents it holds all rights, title and interest in and to the Invention and all intellectual property incorporated therein
    and/or associated therewith; and
	 	 	 
	WHEREAS,	 	CardioSert
    has agreed to grant Microbot the Microbot Option and sell, transfer and assign the CardioSert IP to Microbot upon the exercise
    of the Microbot Option, all subject to the terms of this Agreement (all capitalized terms shall have the meaning ascribed
    to such terms herein below);

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1
Definitions 

 

Whenever
used in this Agreement with an initial capital letter, the terms defined in this Section 1, whether used in the singular or the
plural, shall have the meanings specified below.

 

	 	1.1	“Additional
    Element” shall mean third party material component, part, product, element or any other material item which does
    not incorporate the CardioSert IP and which is also sold by such third party independently.
	 	 	 
	 	1.2	“Affiliate”
    shall mean with respect to an entity, any person, organization or entity controlling, controlled by or under common control
    with, such party. For purposes of this definition only, “control” of another person, organization or entity shall
    mean the possession, directly or indirectly, of the power to direct or cause the direction of the activities, management or
    policies of such person, organization or entity, whether through the ownership of voting securities, by contract or otherwise.
    Without limiting the foregoing, control shall be presumed to exist when a person, organization or entity (a) owns or directly
    controls fifty percent (50%) or more of the outstanding voting stock or other ownership interest of the other organization
    or entity or (b) possesses, directly or indirectly, the power to elect or appoint fifty percent (50%) or more of the members
    of the governing body of the organization or other entity. 

 

    	 	 	 

    	 	~2~	 

    

 

	 	1.3	“Combination
    Product” shall mean a product which includes a Product and at least one other Additional Element, where the Product
    and Additional Element are not priced and sold by Microbot (or an Affiliate or of Microbot) separately.
	 	 	 
	 	1.4	“CardioSert
    Patents” shall mean all the patent and patent applications listed in Schedule A and all their divisions,
    continuations, continuations-in-part, re-examinations, reissues, substitutions, extensions, renewals or any patent or patent
    application claim priority from such patents.
	 	 	 
	 	1.5	“CardioSert
    IP” shall mean the CardioSert Patents and CardioSert Know-How.
	 	 	 
	 	1.6	“CardioSert
    Know-How” shall mean all Intellectual Property relating to and/or associated with the Invention other than the CardioSert
    Patents, including without limitation, such set forth on Schedule B. 
	 	 	 
	 	1.7	“Commercialization
    Costs” shall mean all costs and expenses incurred by Microbot in connection with the development, commercialization
    and/or exploitation of the CardioSert IP (including, to dispel doubt, payment made to CardioSert under this Agreement prior
    to First Commercial Sale). Microbot shall notify CardioSert as to the Commercialization Costs accumulated as of the end of
    each calendar quarter (to be reasonably detailed), within ninety (90) days of the end of such calendar quarter until all amounts
    received by CardioSert under this Agreement first exceed US $5,000,000. 
	 	 	 
	 	1.8	“First
    Commercial Sale” shall mean the first sale of a Product by the Company, or by an Affiliate, following the receipt
    of all regulatory authorizations required for the sale of the Product in the applicable territory.
	 	 	 
	 	1.9	“Free
    and Clear” shall mean free and clear from any claims, liens, charges, pledges, security interests, encumbrances
    and any third party rights.
	 	 	 
	 	1.10	“IIA”
    shall mean National Technological Innovation Authority (formerly known as the Office of the Chief Scientist of the Ministry
    of Economy).
	 	 	 
	 	1.11	“Intellectual
    Property” shall mean any discoveries, inventions (whether patentable or not), materials, information, data, designs,
    formulae, ideas, methods, models, assays, research plans, procedures, designs for experiments and tests and results of experimentation
    and testing (including results of research or development) processes (including manufacturing processes, specifications and
    techniques), laboratory records, analytical and quality control data, trial data, case report forms, data analyses, reports
    or summaries and information contained in submissions to, and information from regulatory authorities.

 

    	 	 	 

    	 	~3~	 

    

 

	 	1.12	“Increased
    Royalty Period” shall mean a period commencing on the first day upon which 85% (eighty five percent) of the License
    Fees (defined in Section 4.3 below) paid and/or payable first exceed 120% of the Commercialization Costs (however not prior
    to the third anniversary of the First Commercial Sale), and ending on the date upon which all amounts received by CardioSert
    under this Agreement first exceed US $5,000,000. 
	 	 	 
	 	1.13	“Invention”
    shall mean an innovative device to support interventional cardiologists in crossing, inter alia, chronic total occlusion
    (CTO) during the wiring step of percutaneous coronary intervention (PCI) procedures as generally described on Schedule
    C.
	 	 	 
	 	1.14	“IP
    Sale” shall mean the assignment and/or transfer of the CardioSert IP and/or any part thereof to a third party, including
    as part of a sale of all or substantially all of Microbot’s shares or assets to a third party whether in one transaction
    or several related transactions.
	 	 	 
	 	1.15	“License”
    shall mean a license granted by Microbot to a third party under the CardioSert IP, to develop and/or manufacture Products.
	 	 	 
	 	1.16	“Licensee”
    shall mean any person or entity granted a License.
	 	 	 
	 	1.17	“M&A
    Event” shall mean (i) a merger or consolidation of Company with or into another corporation in which the shareholders
    of Company immediately prior to such transaction, do not retain a majority of the voting power in the surviving corporation,
    except for the sole purpose of changing the Company’s domicile; (ii) a sale of all or substantially all Company’s
    assets; (iii) a sale of all or substantially all the shares of the Company other than the sale and issuance by the Company
    of its securities in any transaction or a series of related transactions in which none of the proceeds from such sale are
    distributed to any of the shareholders.
	 	 	 
	 	1.18	“Founders”
    shall mean each of Avraham Shekalim and Noam Peleg.
	 	 	 
	 	1.19	“Microbot’s
    TipCat Technology” shall mean the technology generally described in Schedule D. 
	 	 	 
	 	1.20	“Net
    Profit” shall mean (a) the Net Sales of Product, less (b) the Product’s applicable Cost of Goods Sold (COGS);
    calculated on an average calendar quarterly basis and evidenced by Microbot’s books and records. 

 

    	 	 	 

    	 	~4~	 

    

 

	 	1.21	“Net
    Sales” shall mean the gross amounts or other consideration invoiced and received by or on behalf of Microbot and
    its Affiliates and agents (in each case, the “Invoicing Entity”) for the sale, lease or other transfer
    or any other commercialization of Products less the following to the extent that they either are included in the billing as
    a line item as part of the gross amount invoiced or otherwise documented as a deduction, in each case to the extent specifically
    attributable to actual sales of such Products: (a) customary trade, quantity or cash discounts to the extent actually allowed
    and taken; (b) amounts actually repaid or credited by reason of rejection or return of any previously sold, leased or otherwise
    transferred CardioSert Products; (c) transportation and freight charges (including insurance) that are paid by or on behalf
    of the Invoicing Entity; and (d) to the extent separately stated on purchase orders, invoices or other documents of sale,
    any sales, value added or similar taxes, custom duties or other similar governmental charges levied directly on the production,
    sale, transportation, delivery or use of the Product that are paid by or on behalf of the Invoicing Entity, but not including
    any tax levied with respect to income; provided that:

 

(a)
In any transfers, or provision of Products between a Invoicing Entity and an Affiliate of such Invoicing Entity not for the purpose
of resale by such Affiliate, Net Sales shall be equal to the fair market value of the Products so transferred or provided, assuming
an arm’s length transaction made in the ordinary course of business.

 

(b)
In the event of sales made through distributor which will be issuing the invoice to the purchasing party for such sales, such
sales shall not be deemed to be sales by Microbot or an Affiliate for purposes of computing Net Sales but rather
the consideration payable from such distributor to Microbot or its Affiliates on account of such sales shall be deemed Net Sales
for the purposes hereof, provided that such distribution rights were granted by Company at arm’s length to a non-affiliated
entity or person.

 

(c)
Sales of the Product by an Invoicing Entity to its Affiliate for resale by such Affiliate shall not be deemed Net Sales. Instead,
Net Sales shall be determined based on the gross amount received by such Affiliate on resale, lease, or other transfer or any
other commercialization of Product to an independent third party purchaser after the deductions specified above, to the extent
applicable.

 

(d)
Any recovery or damages received by Microbot with respect to the infringement of the CardioSert IP, including by way of settlement
or covenant not to sue arrangement, shall be deemed Net Sales.

 

    	 	 	 

    	 	~5~	 

    

 

(e)
In the event a Product is sold in the form of a Combination Product, Net Sales from such Combination Product shall be determined
by multiplying the actual Net Sales of such Combination Product during the applicable Earn Out Period, by the fraction A/(A+B),
where: A is the average sale price of the Product that is contained in the Combination Product when sold separately; and B is
the average price of the Additional Element(s) included in the Combination Product when sold separately, in each case during the
applicable reporting period or, if sales of both the Product and/or the Additional Element(s) did not occur in such period, then
in the most recent reporting period in which sales of both occurred. In the event that such average sale price cannot be determined
for the Product included in the Combination Product, Net Sales for the purpose of determining the Earn Out shall be calculated
by multiplying the Net Sales of the Combination Products by the fraction of C/C+D where C is the fair market value of the Product
and D is the average price of the Additional Element(s) included in the Combination Product. In such event, the Parties shall
negotiate in good faith to arrive at a determination of the respective fair market values of the Product included in the Combination
Product;

 

	 	1.22	“Products”
    shall mean Type 1 Products and/or Type 2 Products.
	 	 	 
	 	1.23	“Share
    Market Value” shall mean the average VWAP of the common stock of Microbot Inc. for the twenty (20) Trading Days
    ending immediately prior to the date(s) (if any) Microbot Inc. elects to issue shares of common stock pursuant to Section
    4.5. 
	 	 	 
	 	1.24	“Trading
    Day” shall mean a day on which the principal Trading Market is open for trading.
	 	 	 
	 	1.25	“Trading
    Market” shall mean any of the following markets or exchanges on which the common stock of Microbot Inc. is listed
    or quoted for trading on the date in question: the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
    Market, the New York Stock Exchange, the NYSE MKT, the OTCQB or OTCQX (or any successors to any of the foregoing).
	 	 	 
	 	1.26	“Type
    1 Product” shall mean a product embodying the Invention that is a stand-alone guide wire or a combination
    product that comprised the Invention and any other product that is not a Type 2 Product.
	 	 	 
	 	1.27	“Type
    2 Product” shall mean a Product comprised of the Invention and Microbot’s TipCat Technology and/or any other
    technology with respect to which Microbot, its Affiliates or Licenses are required to pay and actually pay royalties to a
    third party (“Third Party Payments”).
	 	 	 
	 	1.28	“VWAP”
    shall mean, for any date, the price determined by the first of the following clauses that applies: (a) if the common stock
    of Microbot Inc. is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock
    for such date (or the nearest preceding date) on the Trading Market on which the common stock of Microbot Inc. is then listed
    or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York
    City time)), (b) if the common stock of Microbot Inc. is not then listed or quoted for trading on a Trading Market and if
    prices for the common stock of Microbot Inc. is then reported in the “Pink Sheets” published by OTC Markets Group,
    Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per
    share of the common stock of Microbot Inc. so reported, or (c) in all other cases, the fair market value of a share of common
    stock of Microbot Inc. as determined by the Board of Directors of Microbot in good faith. 

 

    	 	 	 

    	 	~6~	 

    

 

2
Evaluation of the CardioSert IP; Microbot Option

 

	 	2.1	Following
    the execution of this Agreement Microbot shall undertake an evaluation of the CardioSert IP and the Invention. In furtherance
    of said evaluation CardioSert will provide Microbot with three (3) non-sterile working prototypes of a guide wire incorporating
    the Invention (“Prototypes”) promptly following the execution of this Agreement.
	 	 	 
	 	2.2	In
    consideration of USD 50,000 payable to CardioSert within three (3) business days of the delivery of the Prototypes, Microbot
    is hereby granted an option, to acquire all rights, title and interest in and to the CardioSert IP Free and Clear (“Microbot
    Option”). In addition to the above payment, Microbot shall bear and reimburse CardioSert for the expenses detailed
    in Schedule E. 
	 	 	 
	 	2.3	The
    Microbot Option shall be exercisable upon written notice to CardioSert, as of the Effective Date and until the end of a 90
    (ninety) day period commencing on the date upon which Microbot received the Prototypes and all other documents and information
    necessary and/or useful for Microbot in order to carry out and complete Microbot’s evaluation, which are readily available
    to CardioSert (“Option Period”). 
	 	 	 
	 	2.4	CardioSert
    hereby undertakes to reasonably assist Microbot in connection with its evaluation of the CardioSert IP and the Invention,
    including without limitation, by promptly delivering to Microbot the Prototypes and all other documents, information and data
    available to CardioSert which are necessary and/or useful for Microbot in order to carry out and complete Microbot’s
    evaluation and by causing its Founders to be available to Microbot as may be reasonably requested by Microbot, in support
    of its evaluation.

 

    	 	 	 

    	 	~7~	 

    

 

	 	2.5	Exercise
    of the Microbot Option shall be conditioned upon payment of USD 250,000 (the “Option Exercise Fee”) to
    CardioSert in accordance with Section ‎3.3 below and delivery of the exercise notice during the Option Period. 
	 	 	 
	 	2.6	Within
    five business days of the exercise of the Microbot Option, CardioSert shall sell, assign and transfer the CardioSert IP to
    Microbot Free and Clear in accordance with the terms of Section 3 below (“CardioSert IP Transfer”). 

 

		3	Transfer
                                         of CardioSert IP

 

	 	3.1	Time
    and Place. The CardioSert IP Transfer in accordance with the terms of this Agreement shall take place on the fifth business
    day following the exercise of the Microbot Option or such other date and time agreed to by Parties (the “Transfer
    Date”).
	 	 	 
	 	3.2	Delivery
    of Documents at CardioSert IP Transfer by CardioSert. On the Transfer Date, the following documents shall be delivered
    and actions shall be taken by CardioSert, and no document shall be deemed to have been delivered and/or action taken until
    all such required documents have been delivered and actions taken:
	 	 	 	 
	 	 	3.2.1	A
    certificate, duly executed by an executive officer of CardioSert, dated as of the date of the Transfer Date, confirming that
    the representations and warranties made in Section 8 were true and correct in all material respects when made and are true
    and correct in all material respects on and as of the Effective Date and the Transfer Date, as though made on these dates,
    and that CardioSert has performed in all material respects all obligations required under this Agreement to be performed by
    it on or before the CardioSert IP Transfer; 
	 	 	 	 
	 	 	3.2.2	Such
    certificates of title or other instruments of assignment and transfer with respect to the CardioSert IP as Microbot may reasonably
    request and as may be necessary to vest in Microbot good and marketable title to all and ownership on all of CardioSert IP,
    Free and Clear.
	 	 	 	 
	 	3.3	Payment
    at CardioSert IP Transfer by Microbot. On the Transfer Date, Microbot shall pay CardioSert the Option Exercise Fee way
    of a banker’s check or as evidenced by a copy of a wire transfer. Wire transfers shall be made to the bank account to
    which the consideration for the Option Period was transferred, unless otherwise requested in writing by CardioSert. 

 

    	 	 	 

    	 	~8~	 

    

 

4
Additional Consideration

 

In
addition to the Option Exercise Fee and as further consideration for the CardioSert IP, CardioSert shall be entitled to the following
(collectively together with the Option Exercise Fee, the “CardioSert Consideration”):

 

	 	4.1	Microbot
    Inc. Shares. As partial consideration for the CardioSert IP, CardioSert shall be issued within five (5) business days
    of the Transfer Date, 100,000 restricted shares of common stock of Microbot Inc., the common stock being listed for trading
    on the Nasdaq Capital Market, subject to a 12 months lockup (from date of issuance). It is clarified that such shares shall
    be issued in the name of CardioSert, and not the Founders or any other individuals. 
	 	 	 
	 	4.2	Earn
    Out. As partial consideration for the CardioSert IP, CardioSert shall be entitled to the following earn out payments (“Earn
    Out”):
	 	 	 	 
	 	 	4.2.1	an
    amount equal to 10% (ten percent) of Net Sales of Type 1 Product, until the aggregate amount of Earn Out paid to CardioSert
    for Type 1 Product is equal to US $300,000 (three hundred thousand USD) (calculated on an aggregate basis as of the Effective
    Date); and 7% (seven percent) of Net Sales of Type 1 Product thereafter; and
	 	 	 	 
	 	 	4.2.2	5%
    (five percent) of Net Sales of Type 2 Product, until the aggregate amount of royalties paid to CardioSert for Type 2 Product
    is equal to US $300,000 (three hundred thousand USD) (calculated on an aggregate basis as of the Effective Date); and 3% (three
    percent) of Net Sales of Type 2 Product thereafter. Notwithstanding the above, with respect to Third Party Payments, Microbot
    shall have the right to deduct 50% of the payment actually made to the applicable third party and deemed Third Party Payment
    provided that in any event such deduction shall not exceed 50% of the applicable royalties otherwise owed under Section 4.2.1.
    For the avoidance of doubt, in the event of Type 2 Product that includes Microbot’s TipCat Technology as well as other
    technology the royalties rates shall be 5% (and 3% after US$300,000 as detailed above). 
	 	 	 	 
	 	 	4.2.3	Amounts
    paid by Microbot to the IIA with respect to the Products (up to the amount of the sum originally received by CardioSert from
    the IIA) shall be deemed Earn Out paid to CardioSert.
	 	 	 	 
	 	 	4.2.4	Notwithstanding
    subsections 4.2.1, 4.2.2 and 4.2.3 above, in no event shall the Earn Out payable to CardioSert with respect to the Products
    exceed 50% of the Net Profit generated by the sale of such Product, provided that in any event the Earn Out payments will
    cover the payments to be made by Microbot to the IIA.

 

    	 	 	 

    	 	~9~	 

    

 

	 	4.3	License
    Fees. In the event that Microbot grants a License, CardioSert shall be entitled to receive, at CardioSert’s sole
    discretion, either (a) earn out with respect to the sales of Product by the Licensee, calculated on substantially the same
    terms used for the calculation of Earn Out on Net Sales according to Section ‎4.2 above, mutatis mutandis (“Earn
    Out on Licensee Net Sales”), or (b) 15% (fifteen percent) of any consideration received by Microbot under such License
    (“License Income”) (collectively; “License Fees”); except that during the Increased
    Royalty Period the License Fees shall be either an Earn Out on Licensee Net Sales or, at Microbot’s discretion, 50%
    (fifty percent) (and not 15% (fifteen percent)) of all License Income. CardioSert shall inform Microbot of its decision to
    receive either Earn Out on Licensee Net Sales or License Income as soon as practicable and in no event more than 21 days of
    the date upon which Microbot provides CardioSert with the information available to Microbot and relevant to said decision.
	 	 	 
	 	4.4	Notwithstanding
    the above, in the event that aggregate consideration which will be received by CardioSert under a License prior to the effective
    date of the License exceeds USD $3,000,000 (three million USD), or in the event that an exclusive License is being granted
    with respect to one of the following major countries: US, EU, Japan, India or China, then the decision as to whether CardioSert
    shall receive Earn Out on Licensee Net Sales or License Income shall be made at Microbot’s (and not CardioSert’s)
    sole discretion. CardioSert shall inform Microbot of its decision to receive either Earn Out on Licensee Net Sales or License
    Income as soon as practicable and in no event more than 21 days of the date upon which Microbot provides CardioSert with the
    information available to Microbot and relevant to said decision.
	 	 	 
	 	 	Microbot shall only be permitted to grant Licenses for
the purpose of commercialization of Products, in good faith and consistent with the terms of this Agreement. 
	 	 	 
	 	4.5	Milestone
    Payments. CardioSert shall be entitled to the following milestone payments, payable within 10 business days of the occurrence
    of any of the following events (regardless in which order they may occur and whether they occur following any grant of License);

 

	 	Type 1 Product	 	$150,000
	 	First successful Animal Trials**	 	(one hundred and fifty thousand USD)
	 	 	 	 
	 	Type 1 Product	 	$300,000*
	 	First FDA Approval	 	 (three hundred thousand USD)
	 	 	 	 
	 	Type 2 Product	 	$150,000
	 	First successful Animal Trials**	 	(one hundred and fifty thousand USD)
	 	 	 	 
	 	Type 2 Product	 	$300,000*
	 	First FDA Approval	 	 (three hundred thousand USD)

 

    	 	 	 

    	 	~10~	 

    

 

*At
Microbot’s sole discretion but subject to applicable Trading Market limitations on the issuance of securities without stockholder
approval (if any), Microbot may, in lieu of the payment in cash of any of said milestone payments, pay by causing Microbot Inc.
to issue shares of common stock of Microbot Inc. at Share Market Value. (i.e. the number of shares issued shall be equal to the
division of the applicable milestone payment amount by the Share Market Value); provided that such common stock shall be registered
for resale pursuant to an effective registration statement (the “Registration Statement”) under the U.S. Securities
Act of 1933, as amended (the “Securities Act”) within 60 days of issuance, and shall remain so registered until the
earlier of (i) the disposal by CardioSert of all of such shares in accordance with the Registration Statement, (ii) the date that
all of such shares have been previously sold in accordance with Rule 144 promulgated under the Securities Act (“Rule 144”)
and (iii) the shares become eligible for resale without volume or manner-of-sale restrictions pursuant to Rule 144. The common
stock shall be listed for trading on the Nasdaq Capital Market or other Trading Market. Such common stock will be duly authorized
and, when issued in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear
of all liens, charges, pledges, security interests, encumbrances, rights of first refusal, preemptive rights or other restrictions
(other than restrictions under the Securities Act or other securities laws).

 

**Microbot
shall notify CardioSert promptly (and within no more than 7 (seven) days following any Animal Trial completion) whether or not
it will use the results for its regulatory submissions. If Microbot notifies CardioSert that the relevant Animal Trial was successful
and/or that its results will be used for regulatory submissions, the relevant Animal Trial shall be deemed successful.

 

5
Earn Out Period

 

CardioSert’s
right to receive Earn Out payments under this Agreement (including without limitation, Earn Out on Licensee Net Sales) shall continue
until the later of: (i) the date of expiration and/or invalidation of the last of the CardioSert Patents or (ii) the end of a
period of 10 (ten) years from the date of the First Commercial Sale on a country-by-country and on a Product-by-Product basis
(i.e. ten years from the First Commercial Sale of a Type 1 Product with respect to Type 1 Products in the applicable country and
ten years from the First Commercial Sale of a Type 2 Product with respect to Type 2 Products in the applicable) (“Earn
Out Period”), provided that, unless it previously expired (i.e. in an applicable country and/or with respect to an applicable
Product) the Earn Out Period shall expire by and no later than the tenth anniversary of the expiration and/or invalidation of
the last of the CardioSert Patent in the US. Should the period referred to in Subsections (i) expire prior to the period referred
to in Subsection (ii) above, (such period, the “Post-expiration Period”) then the Earn Out (including without
limitation, Earn Out on Licensee Net Sales) payable to CardioSert during the Post-expiration Period shall be reduced by fifty
percent (50%).

 

    	 	 	 

    	 	~11~	 

    

 

6
Sale; Non Impairment of Rights; Option to Redeem

 

	 	6.1	Sale.
    Any IP Sale by Microbot shall be encumbered by the applicable rights of CardioSert hereto and such rights shall continue with
    respect to the CardioSert IP subject matter of the IP Sale (“Assigned IP”) regardless of such IP Sale;
    provided however that CardioSert shall have the option to receive 15% (fifteen percent) of the consideration received
    or which will be received by Microbot (to be paid upon and subject to its receipt) for the Assigned IP (“Assigned
    IP Consideration”), if CardioSert agrees to waive its right to have the third party assignee, assume CardioSert’s
    rights and obligations vis-à-vis Microbot with respect to the Assigned IP (“Option to Redeem”).
    Microbot will provide CardioSert with all the agreements and documents related to the sale of the Assigned IP immediately
    following such IP Sale under a separate non-disclosure agreement in form acceptable to Microbot, CardioSert and the acquirer
    of the Assigned IP.

 

Notwithstanding
the above, in the event that aggregate consideration which (a) will be received by CardioSert under an IP Sale/s together with
(b) the aggregate amounts received by CardioSert under this Agreement, as of the Effective Date, and prior to the effective date
of the IP Sale, excluding the Option Exercise Fee, exceeds USD $3,000,000 (three million USD) , the Option to Redeem shall vest
with Microbot and Microbot shall have the right, at its sole discretion, to either consummate an IP Sale encumbered by the applicable
rights of CardioSert with respect to the Assigned IP, or consummate such IP Sale and redeem all CardioSert’s rights with
respect to the Assigned IP, in consideration for 15% (fifteen percent) of the Assigned IP Consideration. In the event that Microbot
consummates an IP Sale where the Assigned IP Consideration is not separately determined and the Parties fail to agree on to the
applicable Assigned IP Consideration, such determination shall be made by a C.P.A. to be agreed upon or, in case of disagreement
within a period of 14 (fourteen) days, by a C.P.A. nominated by the President of the Israeli Association of Certified Public Accountants
upon the request of either Party. The nominated C.P.A. shall act solely as an appraiser for this express purpose, and not as an
arbitrator in any manner whatsoever, and such C.P.A.’s determination shall be final and binding upon the Parties. Parties
shall equally share the service fees of such C.P.A.

 

    	 	 	 

    	 	~12~	 

    

 

	 	6.2	Assignment
    After the CardioSert IP Transfer. Neither Party may assign this Agreement prior to the Transfer Date. Following the Transfer
    Date neither Party may assign this Agreement, except to an Affiliate, without the consent of the other party which consent
    shall not be unreasonably withheld, delayed or conditioned. Notwithstanding, either Party may assign this Agreement and its
    rights and obligations herein upon the occurrence of one or a series of transactions whereby (i) a Party is merged with or
    amalgamated into one or more merging entities, which result in the creation of a successor entity; or (ii) all or substantially
    all of a Party’s assets are sold, transferred, or assigned to a purchaser, subject in the case of (i) and (ii) to Section
    6.1. Any assignment purported or attempted to be made in violation of the terms of this Section 6.2 shall be null and void
    and of no legal effect.

 

7
Reports; Payments; Records

 

	 	7.1	Within
    forty-five (45) days after the end of each calendar quarter commencing on the calendar quarter in which Net Sales are first
    generated or License Fees is received and until the end of the Earn Out Period, Microbot shall deliver to CardioSert a report
    containing the following information: 
	 	 	 	 
	 	 	(a)	the
    number of units of Products (with a breakdown of Type 1 Products and Type 2 Products) sold, leased or otherwise transferred
    by Microbot, its Affiliates and Licensees in the applicable calendar quarter;
	 	 	 	 
	 	 	(b)	the
    gross amounts and other consideration received and invoiced by Microbot, its Affiliates and Licensees for Products (with a
    breakdown of Type 1 Products and Type 2 Products) sold, leased or otherwise transferred during the applicable calendar quarter
    and, if applicable, of any License Income;
	 	 	 	 
	 	 	(c)	a
    calculation of Net Sales for the applicable calendar quarter including an itemized listing of applicable deductions and a
    calculation of the amount payable to CardioSert thereon;
	 	 	 	 
	 	 	(d)	the
    total amount payable to CardioSert in U.S. Dollars/NIS on Net Sales and License Fees for the applicable calendar quarter,
    together with the exchange rates used for conversion.
	 	 	 	 
	 	 	Each
    such report shall be certified by a senior officer of Microbot on behalf of Microbot as true, correct and complete in all
    material respects. If no amounts are due to CardioSert for a particular calendar quarter, the report shall so state.
	 	 	 	 
	 	7.2	Within
    sixty (60) days after the end of each calendar quarter, Microbot shall pay CardioSert all amounts due under Section ‎4
    above, against receipt of a valid VAT invoice/receipt.

 

    	 	 	 

    	 	~13~	 

    

 

	 	7.3	Currency.
    All payments due under this Agreement will be paid in NIS or U.S. Dollars, at CardioSert’s election. Conversion of foreign
    currency to U.S. Dollars will be made at the representative rate of exchange (as published by the Israeli central bank) on
    the last working day of the applicable calendar quarter. 
	 	 	 
	 	7.4	Records.
    Microbot shall maintain, shall cause its Affiliates to maintain and shall use best efforts to ensure that Licensees undertake
    to maintain, complete and accurate records of Products that are made, used, sold, leased or otherwise transferred under this
    Agreement, any amounts payable to CardioSert in relation to Products, and all License Fees, and any other relevant expenses,
    which records shall include reasonably sufficient information to review and confirm the accuracy of any payments made, reports
    or notifications delivered to CardioSert (“Records”).
	 	 	 
	 	7.5	Audits.
    Microbot, its Affiliates and Licensees shall be required to retain Records for no less than five (5) years, during which time
    CardioSert shall have the right, at its expense, to cause an independent, certified public accountant to inspect such records
    of Microbot and its Affiliates during normal business hours for the purposes of verifying the accuracy of any reports and
    payments delivered under this Agreement and Microbot’s compliance with the terms hereof; provided in each case, that
    such accountant or other auditor, as applicable, signs a confidentiality and non-use agreement in a form acceptable to Microbot,
    in its reasonable discretion. In addition, CardioSert may require that Microbot, through independent certified public auditors,
    inspect at CardioSert’s expense the books of account, records and other relevant documentation of any Licensees, to
    the extent relevant or necessary for the sole purpose of verifying the performance of such Licensees payment obligations effecting
    CardioSert’s rights under this Agreement, and Microbot shall cause such inspection to be performed, and the results
    of any such audit shall be provided to CardioSert. Notwithstanding the foregoing, such accountant or other auditor, as applicable,
    shall not disclose to CardioSert any information other than information relating to the accuracy of reports and payments delivered
    under this Agreement and with respect to the compliance with Section 6 of this Agreement. The parties shall reconcile any
    underpayment or overpayment within thirty (30) days after the accountant delivers the results of the audit. In the event that
    any audit performed under this Section ‎7 reveals an underpayment such amount shall be immediately paid with the
    accumulated interest as set forth in Section 7.6 below and in case the underpayment is in excess of five percent (5%) in any
    calendar year, the audited entity shall refund to CardioSert the cost of such audit. CardioSert may exercise its rights under
    this Section ‎7 only once every calendar year per audited entity and only with thirty (30) days’ prior notice
    to the audited entity.

 

    	 	 	 

    	 	~14~	 

    

 

	 	7.6	Late
    Payment. Any payments by Microbot that are not paid on or before the date such payments are due under this Agreement shall
    bear interest after a grace period of fourteen (14) days at the rate of twelve percent (12%) per annum. Interest shall accrue
    beginning on the first day following the due date for payment and shall be compounded quarterly.
	 	 	 
	 	7.7	Each
    payment due to CardioSert under this Agreement shall be paid by check or wire transfer of funds to CardioSert’s account
    in accordance with written instructions provided by CardioSert. If made by wire transfer, such payments shall be marked so
    as to refer to this Agreement.
	 	 	 
	 	7.8	Tax.
    All amounts to be paid to CardioSert pursuant to this Agreement are exclusive of any value added tax and inclusive of
    any withholding tax. Microbot shall be entitled to withhold any mandatory withholding taxes under applicable Israeli law from
    amounts payable hereunder to CardioSert, unless CardioSert provides Microbot with a tax full or partial exemption certificate
    reasonably acceptable to Microbot, in which case all payments shall be made without the withholding of any such applicable
    exempt taxes. Notwithstanding the foregoing, it is hereby clarified that in the event that the Agreement is assigned to an
    Affiliate or Licensee which is not an Israeli company, any withholding tax which may apply will be covered by such Affiliate
    or Licensee and will not be deducted from the payment under the Agreement.

 

8
Warranties; Indemnification; Limitation of Liability

 

	 	8.1	CardioSert
    Representations and Warranties. CardioSert hereby represents, warrants and covenants to Microbot, as of the Effective
    Date and as of the Transfer Date, as follows:
	 	 	 	 
	 	 	8.1.1	All
    actions on the part of CardioSert which are necessary for the authorization, execution, performance and delivery of this Agreement
    have been taken prior to the Effective Date. This Agreement, when executed and delivered, shall constitute a valid and legally
    binding obligation of CardioSert, legally enforceable against it in accordance with its terms. 
	 	 	 	 
	 	 	8.1.2	CardioSert
    has obtained prior to the execution of this Agreement all third party approvals, authorizations, permissions and consents
    to the extent and as required in connection with its execution, performance and delivery of this Agreement, including without
    limitation, the consent and approval of the IIA to the CardioSert IP Transfer. 
	 	 	 	 
	 	 	8.1.3	(i)
    Schedule G sets forth a complete and accurate list of all pending and outstanding grants, incentives, exemptions and
    subsidies from any governmental authority (“Grants”) granted to CardioSert with respect to the CardioSert
    IP, including the aggregate amount of each Grant; (ii) CardioSert has made available to Microbot, prior to the date hereof,
    true and complete copies of all letters of approval, and supplements thereto, granted in connection therewith with respect
    to the CardioSert IP; (iii) CardioSert is in compliance in all material respects with the terms and conditions of all Grants
    and has duly fulfilled all the undertakings required thereby in all material respects; and (iv) it does not have knowledge
    of any event or other set of circumstances which has occurred and which might lead to the revocation or material modification
    of any of the Grants. 

 

    	 	 	 

    	 	~15~	 

    

 

	 	 	 	

Schedule
G also includes a correct copy of the IIA approval and consent to the CardioSert IP Transfer, dated as of December 24, 2017. CardioSert
shall update by the Transfer Date, to reflect deletion of IIA files indicated in said approval which pertain to IIA files under
which no funding was provided to CardioSert and which were closed (files No 55733 and 55993). 

	 	 	 	 
	 	 	8.1.4	CardioSert
    has independently developed and exclusively owns and controls the CardioSert IP, and the entire right, title and interest
    in and with respect thereto, Free and Clear.
	 	 	 	 
	 	 	8.1.5	CardioSert
    has not assigned, transferred, conveyed or otherwise encumbered or restricted its right, title and interest in and with respect
    to the CardioSert IP nor granted to any third party and rights with respect thereto, and hereby undertakes not to grant, any
    rights that are inconsistent with the this Agreement and rights granted to Microbot hereunder or that may impair the ability
    of CardioSert to comply with its undertakings towards Microbot hereunder. 
	 	 	 	 
	 	 	8.1.6	The
    CardioSert IP is not based upon and does not incorporate any third party Intellectual Property, and no third party Intellectual
    Property were or are required or were or are used or licensed by CardioSert for the development, design, manufacturing, operation,
    marketing, distribution and/or commercialization of the CardioSert IP.
	 	 	 	 
	 	 	8.1.7	The
    CardioSert Patents are valid and enforceable and CardioSert has not received notice of any actual or threatened claim of any
    pending legal suit or proceeding by a third party contesting the ownership or control by CardioSert over the CardioSert IP.
	 	 	 	 
	 	 	8.1.8	All
    of the pending applications for all the CardioSert IP have been duly filed and all reasonable actions taken to protect CardioSert’s
    interests’ therein, and to the best of CardioSert’s knowledge no person or entity is infringing upon any of the
    Intellectual Property right subsisting in the CardioSert IP.

 

    	 	 	 

    	 	~16~	 

    

 

	 	 	8.1.9	The
    use, practice, exploitation and/or commercialization of the CardioSert IP, including without limitation the manufacturing,
    marketing and sale of products, made by, utilizing, covered by, based upon, incorporating or otherwise employing the CardioSert
    IP is, to CardioSert’s knowledge, not and will not infringe, violate or misappropriate any Intellectual Property or
    other valid rights of any third party, and CardioSert has not received any notice alleging otherwise;
	 	 	 	 
	 	 	8.1.10	CardioSert
    has taken commercially reasonable steps (including without limitation entering into confidentiality and nondisclosure agreements
    with officers, directors, subcontractors, employees, licensees, and customers) to safeguard and maintain the secrecy and confidentiality
    of, and the value of its intellectual rights forming part of the CardioSert IP and is not aware of the breach by any party
    of any confidentiality or nondisclosure agreement relating thereto.
	 	 	 	 
	 	8.2	Microbot
    Representations and Warranties. Microbot hereby represents, warrants and covenants to CardioSert, as of the Effective
    Date and as on the Transfer Date, as follows:
	 	 	 	 
	 	 	8.2.1	All
    actions on the part of Microbot which are necessary for the authorization, execution, performance and delivery of this Agreement
    have been taken prior to the Effective Date. This Agreement, when executed and delivered, shall constitute a valid and legally
    binding obligation of Microbot, legally enforceable against Microbot in accordance with its terms.
	 	 	 	 
	 	 	8.2.2	Following
    the CardioSert IP Transfer, Microbot shall maintain the CardioSert Patents in the jurisdictions in which they are currently
    registered and will register and maintain such patents in any major territory (including, but not limited to, US, EU, Japan,
    India and China).
	 	 	 	 
	 	 	8.2.3	Following
    the CardioSert IP Transfer Microbot shall use commercially reasonable efforts, to develop, obtain regulatory approval for
    and commercialize a Type 1 Product and a Type 2 Product. Microbot shall share its development program for the Products with
    CardioSert, from time to time, and offer updates with respect to its progress. 
	 	 	 	 
	 	 	8.2.4	Any
    License granted by Microbot shall be granted only pursuant to written agreements, which shall be subject and subordinate to
    and not inconsistent with the terms and conditions of this Agreement. 
	 	 	 	 
	 	 	8.2.5	Following
    the CardioSert IP Transfer, Microbot shall engage CardioSert for a period of no less than 12 months, as a consultant, in connection
    with the development and commercialization of the Invention and Products in accordance with the terms set forth on Schedule
    H. The monthly consultation fee shall be NIS 40,000 covering up to 60 consulting hours per month and provided by CardioSert
    through its Founders.

 

    	 	 	 

    	 	~17~	 

    

 

	 	 	8.2.6	Throughout
    the Earn Out Period with respect to any specific territory Microbot shall not develop, market, commercialize or become involved
    in any product in such territory which is a mechanical hand operated minimal-invasive tool to support interventional cardiologists
    in crossing the complex lesions during the wiring step of percutaneous intervention procedures (“Competing Product”).
	 	 	 	 
	 	8.3	Indemnity.
    Each Party (“Indemnifying Party”) shall indemnify, defend and hold harmless the other Party and its respective
    directors, officers, employees and agents and their respective successors, heirs and assigns (collectively, the “Indemnitees”)
    from and against any liability, damage, loss, cost, expense (including, without limitation, reasonable attorney’s fees
    and other costs and expenses of litigation), or obligation of any kind or nature (collectively, “Claims”),
    incurred by or imposed upon the Indemnitees or any one of them in connection with any third party claims, suits, actions,
    demands, judgments, or other proceedings to the extent resulting from any gross negligence, willful misconduct of or a breach
    of the representations and/or warranty given by the Indemnifying Party under this Agreement. 
	 	 	 
	 	8.4	Procedures.
    If any Indemnitee receives notice of any Claim, such Indemnitee shall, as promptly as is reasonably possible, give the Indemnifying
    Party notice of such Claim; provided, however, that failure to give such notice promptly shall only relieve the Indemnifying
    Party of any indemnification obligation it may have hereunder to the extent such failure prejudices the ability of the Indemnifying
    Party to respond to or to defend the Indemnitee against such Claim. CardioSert and Microbot shall consult and cooperate with
    each other regarding the response to and the defense of any such Claim and the Indemnifying Party shall be entitled to and
    shall assume the defense or represent the interests of the Indemnitee in respect of such Claim, that shall include the right
    to select and direct legal counsel and other consultants to appear in proceedings on behalf of the Indemnitee and to propose,
    accept or reject offers of settlement, all at its sole cost; provided, however, that no settlement which imposes any liability
    or involves any admission of guilt on the part of an Indemnitee shall be made without the written consent of the Indemnitee,
    such consent not to be unreasonably withheld. Nothing herein shall prevent the Indemnitee from retaining its own counsel and
    participating in its own defense at its own cost and expense.
	 	 	 	 
	 	8.5	Limitation
    of Liability. Other than in the event of willful misconduct or gross negligence, neither party will be liable to the other
    with respect to any subject matter of this Agreement under any contract, negligence, strict liability or other legal or equitable
    theory for any indirect, incidental, consequential or punitive damages or lost profits. Furthermore, other than in the event
    of a breach of Sections 9 or 11 or in the event fraud, willful misconduct or gross negligence, CardioSert’s aggregate
    liability under this Agreement shall not exceed the total amount received by CardioSert from Microbot under this Agreement
    during the period of thirty six (36) months immediately preceding the applicable event, except and to the extent attributable
    to a breach of CardioSert’s representations set forth in Sections 8.1.1 and/or 8.1.2 above, in which event, CardioSert’s
    aggregate liability under this Agreement shall not exceed the total and aggregate amount received by CardioSert from Microbot
    under this Agreement.

 

    	 	 	 

    	 	~18~	 

    

 

9
Confidentiality

 

	 	9.1	In
    this Agreement Confidential information means and includes any information, documents or other written materials (the “Confidential
    Information”) which Microbot or CardioSert, as the case may be (the “Disclosing Party”) identifies
    as confidential or proprietary at the time it is delivered to the other Party (the “Receiving Party”),
    or any other information which would reasonably be deemed confidential. 
	 	 	 
	 	9.2	The
    Receiving Party shall maintain in confidence and not disclose to any third party any Confidential Information of the Disclosing
    Party and shall not use any Confidential Information except for the purposes of the performance of this Agreement, (this includes
    but is not limited to any of Microbot’s research during the Option Period). The Receiving Party shall ensure that its
    employees, consultants, contractors and agents have access to Confidential Information of the Disclosing Party only on a need-to-know
    basis and are obligated in writing to abide by the Receiving Party’s obligations under this Agreement (provided the
    Receiving Party shall remain liable to the Disclosing Party in the event of any breach of confidentiality by any such individuals).
    The foregoing obligation shall not apply to information which the Receiving Party can prove:
	 	 	 	 
	 	 	9.2.1	Was
    disclosed to the Receiving Party by a third party that had a right to make such disclosure; or
	 	 	 	 
	 	 	9.2.2	Became
    part of the public domain as a result of rightful acts by any person or entity other than the Receiving Party.
	 	 	 	 
	 	9.3	Notwithstanding
    the foregoing, either party may disclose to its Affiliates, potential investors, shareholders, personnel, contractors, business
    partners and Licensees Confidential Information to the extent reasonably necessary for the exercise by it of its rights hereunder
    or in the fulfillment of its obligations hereunder, or in the process of obtaining financing or strategic alliances for such
    party or in the conduct of experiments with co-investigators who are not employed by it, provided that it shall bind such
    potential investors, shareholders, personnel and Licensees with a similar undertaking of confidentiality in writing and shall
    remain liable in the event of any breach of confidentiality by any such recipients. In addition, Microbot may, to the extent
    necessary, disclose and use Confidential Information disclosed to it by CardioSert where the disclosure and use of the Confidential
    Information will be reasonably useful or necessary to the procurement of patent rights or regulatory authorization or certificate.
    Following the CardioSert IP Transfer, the CardioSert IP shall be deemed Microbot Confidential Information for all intents
    and purposes. In the event CardioSert exercises the buyback option in accordance with Section ‎10.6 below, the CardioSert
    IP shall revert to being deemed CardioSert Confidential Information. 

 

    	 	 	 

    	 	~19~	 

    

 

	 	9.4	Neither
    Party shall issue a press release or market announcement which references or is reasonably likely to impact the other Party
    or its rights under this Agreement without such Party’s prior approval, not to be unreasonably withheld or delayed,
    except as may be required under applicable law.

 

10
Term and Termination

 

	 	10.1	Survival.
    The Parties’ rights, obligations and duties which by their nature extend beyond the expiration or termination of this
    Agreement, shall survive any expiration or termination of this Agreement.
	 	 	 
	 	10.2	Termination
    upon the expiration of the Option Period. In the event that Microbot does not exercise the Microbot Option within the
    Option Period, this Agreement shall terminate upon the expiration of the Option Period and thereafter Microbot shall (a) return
    the Prototypes to CardioSert at their then current condition, and (b) provide CardioSert, upon CardioSert’s request
    with a copy of all documentation prepared by Microbot during the Option Period in connection with the evaluation of the Invention,
    except to the extent that any document incorporates Microbot confidential information.
	 	 	 
	 	10.3	Termination
    for Breach. Either Party may terminate this Agreement for a material breach of one or more terms of this Agreement by
    the other Party, upon sixty (60) days prior written notice to the other Party, identified in the notice and demanding its
    cure, if at the end of such sixty (60) day period the breaching Party has not cured the described material breach. Notwithstanding
    the foregoing, in the event that Microbot is in breach of its payment obligations hereunder and fails to cure such breach
    within fifteen (15) days after receiving written notice thereof, CardioSert may terminate this Agreement upon written notice
    to Microbot upon the lapse of such fifteen (15) days cure period.
	 	 	 
	 	10.4	Termination
    by Microbot. Microbot shall have the right to terminate this Agreement at any time, for convenience, upon ninety (90)
    days prior written notice to CardioSert. Notwithstanding the above, and during the Option Period only, Microbot shall have
    the right to immediately terminate this Agreement, for convenience, upon written notice to Company subject to the payment
    of the USD 50,000 under Section 2.2 above. 
	 	 	 
	 	10.5	Termination
    by CardioSert. CardioSert shall have the right to terminate this agreement upon ninety (90) days prior written notice
    to Microbot in the event that- 

 

(a)
(i) The First Commercial Sale Type 1 Product does not occur by the 3rd anniversary of the Effective Date, except in
the event that Microbot has invested more than US $2,000,000 in the development, industrialization or commercialization of the
products prior to such 3rd anniversary, and such failure is attributable to a regulatory difficulty Microbot has encountered
in the commercialization of the Type I Product despite using its commercially reasonable efforts to overcome such difficulty,
as shall be reasonably demonstrated by Microbot (both the expenses and the regulatory difficulties), and (ii) The
First Commercial Sale Type 2 Product does not occur by the 3rd anniversary of the Effective Date, except in the event
that Microbot has invested more than US $2,000,000 in the development, industrialization or commercialization of the products
prior to such 3rd anniversary, and such failure is attributable to a scientific, regulatory and/or technological difficulty
Microbot has encountered in the development, industrialization or commercialization of the Type 2 Product, despite using its commercially
reasonable efforts to overcome such difficulty, as shall be reasonably demonstrated by Microbot (both the expenses and the regulatory
difficulties).

 

    	 	 	 

    	 	~20~	 

    

 

OR

 

(b)
The First Commercial Sale does not occur within 50 months of the Effective Date.

 

	 	10.6	Buy
    Back. CardioSert shall have the right to buy back the CardioSert IP from Microbot in consideration for US$ 1.00, upon
    60 days prior written notice in the event that this Agreement terminates pursuant to Sections 10.4, 10.5 or upon termination
    by CardioSert pursuant to Section 10.3 due to an uncured material breach of Microbot. CardioSert may only exercise the above
    right within one year from such termination of the Agreement. In the event CardioSert exercise such right, Microbot shall
    fully cooperate with CardioSert in order to complete such assignment in a prompt manner, subject to and in accordance with
    the then applicable rules of the IIA, to the extent the CardioSert IP is then still subject to the R&D Law.

 

11
Non-Compete

 

During
the Term and for an additional period of three (3) years thereafter each of the Founders and CardioSert hereby undertake and covenant
not to develop, sell, market, design or manufacture product or any part thereof which compete either directly or indirectly with
the Type 1 Product and/or which embody the Invention nor assist any third party in doing so. In said regard it is clarified that
developing, selling, marketing, designing or manufacturing of the FFR Device described in Schedule F, by CardioSert
or any of its assignee or their sublicensee or subcontractor, without infringing upon the CardioSert Patents shall not be considered
a breach of this agreement. Microbot hereby undertakes, during the period of one (1) year following Microbot’s decision
not to exercise the Option (whether by notice to this effect or the lack of exercise of the Option upon the expiration of the
Option Period), except where such decision is attributable to CardioSert’s breach of this Agreement or during the period
of six (6) months following the exercise of the buy-back right under Section 10.6 above, not to internally develop a Competing
Product.

 

    	 	 	 

    	 	~21~	 

    

 

12
Miscellaneous

 

	 	12.1	Entire
    Agreement. This Agreement is the sole agreement with respect to the subject matter hereof and except as expressly set
    forth herein, supersedes all other agreements and understandings between the parties with respect to the same.
	 	 	 
	 	12.2	Notices.
    Unless otherwise specifically provided, all notices required or permitted by this Agreement shall be in writing and may be
    delivered personally, or may be sent by facsimile, overnight delivery, certified mail or electronic mail, return receipt requested,
    to the following addresses, unless the parties are subsequently notified of any change of address in accordance with this
    Section 16.2:

 

	 	If
    to Microbot:	5
    Hamada St.
	 	 	Yokneam,
    Israel
	 	 	Attn.:
    the CEO
	 	 	Facsimile:
    04-8200712
	 	 	E-mail:
    harel@microbotmedical.com
	 	 	 
	 	If
    to CardioSert:	53
    Derech Bar Yehuda, Nesher,
	 	 	Israel
	 	 	Attn.:
    CEO
	 	 	Facsimile:
    074-7037233
	 	 	e-mail:
    avraham@cardioset.com

 

Any
notice shall be deemed to have been received as follows: (a) by personal delivery, upon receipt; (b) by facsimile electronic mail
or overnight delivery, one business day after transmission or dispatch; (c) by certified mail, as evidenced by the return receipt.
If notice is sent by facsimile, a confirming copy of the same shall be sent by mail to the same address.

 

    	 	 	 

    	 	~22~	 

    

 

	 	12.3	Governing
    Law and Jurisdiction. This Agreement will be governed by, and construed in accordance with, the laws Israel, without giving
    effect to any choice or conflict of law provision, except that questions affecting the construction and effect of any patent
    shall be determined by the law of the country in which the patent shall have been granted. The parties hereby agree that,
    the competent court in Tel-Aviv Israel shall have sole jurisdiction over any and all matters arising from this Agreement.
	 	 	 
	 	12.4	Binding
    Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective legal representatives,
    successors and permitted assigns.
	 	 	 
	 	12.5	Headings.
    Section and subsection headings are inserted for convenience of reference only and do not form a part of this Agreement.
	 	 	 
	 	12.6	Counterparts.
    The parties may execute this Agreement in two or more counterparts, each of which shall be deemed an original.
	 	 	 
	 	12.7	Amendment;
    Waiver. This Agreement may be amended, modified, superseded or canceled, and any of the terms may be waived, only by a
    written instrument executed by each party or, in the case of waiver, by the party waiving compliance. The delay or failure
    of either party at any time or times to require performance of any provisions hereof shall in no manner affect the rights
    at a later time to enforce the same. No waiver by either party of any condition or of the breach of any term contained in
    this Agreement, whether by conduct, or otherwise, in any one or more instances, shall be deemed to be, or considered as, a
    further or continuing waiver of any such condition or of the breach of such term or any other term of this Agreement.
	 	 	 
	 	12.8	No
    Agency or Partnership. Nothing contained in this Agreement shall give either party the right to bind the other, or be
    deemed to constitute either party as agent for or partner of the other or any third party.
	 	 	 
	 	12.9	Interpretation.
    Each party hereto acknowledges and agrees that: (a) it and/or its counsel reviewed and negotiated the terms and provisions
    of this Agreement and has contributed to its revision; (b) the rule of construction to the effect that any ambiguities are
    resolved against the drafting party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions
    of this Agreement shall be construed fairly as to both parties hereto and not in favor of or against either party, regardless
    of which party was generally responsible for the preparation of this Agreement.
	 	 	 
	 	12.10	Severability.
    If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is
    deemed unenforceable, it is the intention of the parties that the remainder of this Agreement shall not be affected.
	 	 	 
	 	12.11	Force
    Majeure. Neither party will be responsible for delays in the performance of any obligation under this Agreement (except
    for payment obligations) resulting from causes beyond the reasonable control of such party, including, without limitation,
    fire, explosion, flood, war, strike, terror attacks, or riot, provided that the nonperforming party uses commercially reasonable
    efforts to avoid or remove such causes of nonperformance and continues performance under this Agreement with reasonable dispatch
    whenever such causes are removed.

 

[signature
page overleaf]

 

    	 	 	 

    	 	~23~	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the
Effective Date.

 

	CardioSert.	 	Microbot
	 	 	 	 	 
	By:	 /s/	 	By:	 /s/ 
	 	 	 	 	 
	Name: 	Avraham
    Shekalim, Eli Arad	 	Name: 	Harel
    Gadot, Hezi Himelfarb
	 	 	 	 	 
	Title:
    	 	 	Title:	 

 

We,
the undersigned, the Founders, agree to be bound by the terms set forth in this agreement which are applicable to us.

 

	 /s/	 	 /s/ 	 	 
	Avrahem
    Shekalim	 	Noam
    Peleg	 	 

 

    	 	 	 

    	 	~24~	 

    

 

Schedule
A: CardioSert Patents

 

 

    	 	 	 

    	 	~25~	 

    

 

Schedule
B: CardioSert Know-How

 

Know-How
pertaining to the design, manufacturing, assembly and use of the following components of the CardioSert guide wire:

 

	 	1.	A
    0.014” guide wire that is hollow at entire length and constructed from a metal tube, a metal helical coil, and a thin
    metal strip placed inside at least part of the guide wire and which connects the metal tube to the metal helical coil.
	 	 	 
	 	2.	The
    connection between the 0.014” guide wire and a removable handle. 
	 	 	 
	 	3.	A
    0.007” guide wire which is placed inside the 0.014” guide wire (patent pending)
	 	 	 
	 	4.	The
    0.007” guide wire has a tip curvature and is movable inside of the 0.014” guide wire (patent pending) 
	 	 	 
	 	5.	The
    removable handle contains a mechanism that allows physicians to change the tip curvature, adjusting the wire stiffness from
    floppy to stiff, extending the 0.007” wire from the distal tip, and producing impact tapings from the tip of the wire
    to the calcified arteries (patent pending) 

 

    	 	 	 

    	 	~26~	 

    

 

Schedule
C: Invention

 

A
guide wire placed inside a larger guide wire, where the smaller guide wire has a tip curvature and is movable inside of the larger
guide wire. The handle contains a mechanism that allows physicians to change the tip curvature, adjusting the wire stiffness from
floppy to stiff, extending the smaller wire from the distal tip, and producing impact tapings from the tip of the wire to the
calcified arteries.

 

    	 	 	 

    	 	~27~	 

    

 

Schedule
D: Microbot’s TipCat Technology

 

The
Microbot’s TipCat Technology is based on a self-propelled device for movement through a lumen. Microbot’s TipCat technology
is covered by the following U.S. patents and patent applications / continuations:

 

	Tip
    Propelled Device for Motion through a Passage	 	US 9,061,118
 US 14/746,660
    (Cont.)
	 	 	 
	Inflatable Chamber
    Device for Motion through a Passage	 	US 9,427,143 
US 15/218,025 (Cont.)
	 	 	 
	Inflatable Balloon
    Device and Applications	 	US 8,430,810 
US 8,790,246 (Cont.)
	 	 	 
	Multi-view Imaging
    System	 	US 8,317,688
	 	 	 
	Semi-Disposable
    Endoscope	 	US 8,398,540

 

    	 	 	 

    	 	~28~	 

    

 

Schedule
E: Additional Expenses

 

Microbot
shall cover the costs of prosecution and maintenance of patents forming part of the CardioSert IP to the extent noted as expected
costs in the attached letter of Dr. Mark Friedman Ltd. dated October 30 2017 (“Attachment 1”), the attached
email from Daniel Michaels at Dr. Mark Friedman Ltd. dated November 2, 2017 (“Attachment 2”), and the attached
email from Alexandra Strygacz at Dr. Mark Friedman Ltd. dated September 27, 2017 (“Attachment 3”), subject
to all of the following:

 

	 	(a)	The
    due date for the payment of such costs, in the ordinary course of business, falls within the Option Period (“Covered
    Expenses”); 
	 	 	 
	 	(b)	Such
    costs cover the prosecution and/or maintenance of said patents in the US, the EU, China, and Israel (the “Agreed
    Territories”), and in the event Microbot makes any payments for countries beyond the Agreed Territories, CardioSert
    shall not be required to reimburse Microbot for such costs;
	 	 	 
	 	(c)	The
    aggregate amount Microbot shall be required to cover shall not exceed US $10,000;
	 	 	 
	 	(d)	To
    the extent the due date for payment of said costs can be postponed beyond the Option Period Microbot shall have the right
    to pay the amounts due in order to have the due date for the payment of said costs postponed in lieu of payment of said costs,
    but (i) CardioSert shall not be required to refund any costs paid by Microbot in order to obtain such delays, and (ii) such
    costs shall not be included in the $10,000 cap referenced at section (c) above; 
	 	 	 
	 	(e)	CardioSert
    provides Microbot, together with its written request to cover such costs, an irrevocable and unconditional undertaking to
    reimburse Microbot in full for any costs covered by Microbot per the above (but subject to (b) and (d) above), in the event
    that Microbot does not exercise the Microbot Option. Such reimbursement shall be effected by CardioSert within 90 days from
    the date upon which the Agreement terminates. 

 

Notwithstanding
section (c) above, in the event that Microbot chooses to exercise the Microbot Option, then it shall, on the Transfer Date, reimburse
CardioSert for any Covered Expenses incurred by CardioSert during the Option Period relating to prosecution and maintenance of
patents for which CardioSert has not yet been reimbursed by Microbot.

 

    	 	 	 

    	 	~29~	 

    

 

Schedule
F: FFR DEVICE

 

A
guide wire for measuring the pressure within a blood or other body fluid vessel (FFR).

 

A
guide wire for measuring the pressure within a blood or other body fluid vessel by producing hydraulic connection between the
vessel and a pressure sensor located external to the body. This guide wire is also intended to enable the placement of balloon/Stent
catheter or drug delivery within the vessel or to another organ.

 

    	 	 	 

    	 	~30~	 

    

 

Schedule
G: IIA Grants and Approval 

 

CardioSert
received a grant from the IIA in the aggregate amount of US $532,017 under file No 46871 titled: “Intravascular Catheter”.

 

    	 	 	 

    	 	~31~	 

    

 

Schedule
H: Consultant Terms

 

Services
Agreement

 

This
Services Agreement (the “Agreement”)
is made and entered into as of this __ day of _______, ____, by and between Microbot Medical Ltd., a company organized under the
laws of Israel with its principal place of business at 5 Hamada St. Yokneam, Israel (the “Company”),
and CardioSert Ltd.. a company organized under the laws of Israel, with its principal place of business at Hashoshanim 24, Nesher,
Israel (the “Contractor”).

 

	Whereas
    	 	Company
    and Contractor have entered into that certain agreement dated ___ (the “Master Agreement”), pursuant to
    which, inter alia, the Company shall retain the Services from Contractor, subject to and in accordance with the provisions
    of this Agreement; and
	 	 	 
	Whereas
    	 	Contractor
    has represented that it has the skills, expertise, experience, qualifications, knowledge and ability required to perform the
    Services (as defined below); and
	 	 	 
	Whereas
    	 	The
    Company wishes to retain Contractor, as an independent contractor, to provide the Services, and the Contractor has agreed
    to provide the Company with the Services, all in accordance with the provisions of this Agreement; and
	 	 	 
	Whereas
    	 	The
    parties wish to set forth in writing their agreements and understandings with respect to the provision of the Services to
    the Company by the Contractor.

 

Now,
therefore, the Parties hereby represent, warrant, undertake and agree as follows:

 

Capitalized
terms used herein but not otherwise defined shall have the meaning ascribed to them in the Master Agreement.

 

1.
The Services

 

	 	1.1	Beginning
    on the date of the CardioSert IP Transfer and subject thereto (the “Effective Date”) and during the Term
    of this Agreement (as defined below), the Contractor shall provide the Company with consulting services relating to the CardioSert
    IP and/ or the Invention and/ or any related matters, as required by the Company from time-to-time (the “Services”).
    
	 	 	 
	 	1.2	The
    Services shall be performed on behalf of the Contractor by at least one of the Contractor’s founders, Messrs. Avraham
    Shekalim and Noam Peleg (the “Contractor’s Designees”) only. The Contractor shall not replace Contractor’s
    Designee(s) without the prior written consent of the Company, which consent shall be at the Company’s sole and absolute
    discretion. 
	 	 	 
	 	1.3	The
    Contractor shall perform the Services, through the Contractor’s Designees, in a diligent, timely, faithful, responsible,
    competent and trustworthy manner and shall exercise due professional care. 

 

    	 	 	 

    	 	~32~	 

    

 

	 	1.4	The
    Contractor shall devote (through the Contractor’s Designees) to the Services the amount of time necessary in order to
    satisfactory perform the Services in accordance with the Company’s needs as may be from time to time, provided that
    unless otherwise agreed between the Company and Contractor, the scope of such Services during the Term (as defined below)
    shall not exceed the total of 60 consulting hours per calendar month.

 

2.
Representations

 

Contractor
hereby warrants and represents towards Company, as follows:

 

	 	2.1	Neither
    Contractor nor the Contractor’s Designees is prevented or barred, in any way, from entering this Agreement and performing
    the Services for Company hereunder, and the performance of the Services by Contractor’s Designees for Company hereunder
    shall not conflict or cause the breach of any agreement, undertaking or law to which Contractor or Contractor’s Designees
    is subject or bound, including without limitation, any confidentiality or non-competition agreement, and does not require
    the consent of any person or entity.
	 	 	 
	 	2.2	Neither
    Contractor nor the Contractor’s Designees shall use, during the performance of the Services, any confidential or proprietary
    information of any third party whatsoever.
	 	 	 
	 	2.3	The
    use by the Company of any of the deliverables provided by it in the framework of the Services (if any) shall not violate and/or
    infringe upon the rights of any third party whatsoever.

 

3.
Payment

 

	 	3.1	In
    consideration for the provisions of Services by Contractor under this Agreement, Company shall pay Contractor an amount of
    NIS 40,000 +VAT per each calendar month in which Services were actually performed (the “Payment”). Within
    7 days of the end of each calendar month in which Services were performed, Contractor shall provide the Company with an invoice
    setting forth the Payment owed to Contractor for the preceding calendar month.
	 	 	 
	 	3.2	Company
    shall make the applicable Payment Net+30 from the date of acceptance of the respective invoice by Company. Payments shall
    be made by means of a bank transfer, or in any other method which shall be acceptable by both parties. Payments shall be made
    in NIS, or in such other currency as shall be agreed upon by the parties.
	 	 	 
	 	3.3	All
    payments are exclusive of V.A.T, which shall be paid by Company according to applicable law against receipt of a valid V.A.T
    invoice. Company shall withhold tax at the source from any Payment or from any other consideration to be paid to Contractor
    hereunder according to applicable law, unless Contractor has provided to Company an approval issued by the relevant tax authorities
    not to do so.

 

    	 	 	 

    	 	~33~	 

    

 

	 	3.4	Contractor
    shall be solely responsible for and bear all liability with respect to payment of any and all taxes, levies, insurances, contributions
    and other liabilities, charges, dues or impositions applicable thereto, in all jurisdictions having authority to tax Contractor,
    including without limitation, with respect to any consideration provided to the Contractor by the Company in accordance with
    this Agreement. 
	 	 	 
	 	3.5	The
    Payment includes full reimbursement of all of Contractor’s expenses in connection with the Services, and Contractor
    shall not be entitled to receive any additional amounts on account of such expenses unless reimbursement of such expenses
    was specifically approved in advance and in writing by Company, in which event payment shall be made against appropriate receipts
    which shall be submitted to Company. 
	 	 	 
	 	3.6	Save
    as specifically provided herein, Contractor shall not, directly or indirectly, receive in connection with the performance
    of the Services for Company, any compensation or benefit of any kind from Company or from any other source.

 

4.
Term and Termination

 

	 	4.1	The
    term of this Agreement shall begin effective on the Effective Date hereof, and subject to the provisions of Section 4.2 hereinbelow,
    shall continue for a period of 12 months (or such extended term as may mutually be agreed upon in writing between the Parties)
    thereafter (the “Term”). 
	 	 	 
	 	4.2	Notwithstanding,
    and without prejudicing or derogating from any party’s rights to any other remedies available under law or agreement,
    Company shall be entitled to terminate this Agreement and the relationship hereunder, by giving an immediate termination notice
    to the Contractor upon the occurrence of any one or more of the following events: (i) the Contractor and/or Contractor’s
    Designees is in breach of any of the undertakings in Section 5 of this Agreement, and/or any other material breach of any
    of the provisions of this Agreement and/or the Master Agreement; (ii) the Contractor and/or any of the Contractor’s
    Designees has/have committed an offence constituting a felony or involving moral turpitude, theft or embezzlement, whether
    or not it involves the Company; (iii) the Contractor becomes insolvent, makes an assignment for the benefit of creditors or
    a general arrangement with creditors, or adopts a resolution providing for its dissolution or liquidation, or there are instituted
    by or against it proceedings in bankruptcy or under insolvency law or for reorganization, receivership or dissolution, which
    proceedings have not been cancelled within 30 (thirty) days from their institution.
	 	 	 
	 	 	Contractor
    shall be entitled to terminate this Agreement and the relationship hereunder, upon 14 days prior written notice to Company
    upon the occurrence of any one or more of the following events: (i) the Company is in breach of any of its payment obligation
    under Section 3 of this Agreement, and/or is in material breach of any of the provisions of this Agreement and/or the Master
    Agreement and fails to cure such breach within such 14 days notice period; (ii) the Company becomes insolvent, makes an assignment
    for the benefit of creditors or a general arrangement with creditors, or adopts a resolution providing for its dissolution
    or liquidation, or there are instituted by or against it proceedings in bankruptcy or under insolvency law or for reorganization,
    receivership or dissolution, which proceedings have not been cancelled within 30 (thirty) days from their institution.

 

    	 	 	 

    	 	~34~	 

    

 

	 	4.3	Following
    any expiration or termination of this Agreement, for any reason whatsoever, all materials related to the Services, and any
    and all other materials necessary to enable Company to smoothly continue work on any deliverables thereunder, shall be promptly,
    and in any event no later than 3 (three) days after termination, delivered by Contractor to Company. 
	 	 	 
	 	 	Without
    derogating in any way from the provisions of Section 5 below, Company shall be entitled to continue to use, modify, improve
    and/or distribute any of the material and/or deliverables provided to it in connection with the Services.
	 	 	 
	 	4.4	It
    is clarified that the termination of this Agreement, for any reason whatsoever, shall not constitute unfair dismissal, nor
    shall Contractor be entitled to payment of any compensation, reimbursement or otherwise, upon the occurrence of the same.

 

5.
Confidentiality and Intellectual Property Rights 

 

	 	Without
    derogating from any confidentiality provision under the Master Agreement, Contractor hereby warrants, represents and undertakes
    the following:
	 	 	 
	 	Confidentiality:
	 	 	 
	 	5.1	Contractor
    acknowledges that in the course of its engagement hereunder it may receive, learn, be exposed to, obtain, or have access to
    non-public information, trade secrets, etc., relating to Company, its business and activities, including without limitation
    any commercial and financial information, technical information, know-how and trade secrets, information regarding customers,
    suppliers, business partners, etc. (the “Confidential Information”) and undertakes to maintain the Confidential
    Information in strict confidence at all times and not to, directly or indirectly, whether in writing or otherwise, communicate,
    publish, reveal, describe, divulge or otherwise disclose or make available the Confidential Information or allow its exposure
    or disclosure, in whole or in part, to any person or entity, except to its own employees, only on a need to know basis, and,
    without derogating from Contractor’s responsibility and liability for the compliance of any of its employees, only after
    any such employee has executed a confidentiality undertaking similar to the one included herein. Contractor further undertakes
    not to use the Confidential Information for any purpose other than the provision of the Services hereunder.
	 	 	 
	 	 	Upon
    Company’s request or the termination of this Agreement, the earlier to occur, Contractor shall return to Company any
    and all documents and other tangible materials containing Confidential Information and shall erase or destroy any computer
    or data files containing such Confidential Information, such that no copies or samples of Confidential Information shall remain
    with it.

 

    	 	 	 

    	 	~35~	 

    

 

Contractor’s
confidential undertakings hereunder shall not apply with respect to information which Contractor can prove, by tangible evidence,
to be: (I) generally available to the public other than as a result of any fault of Contractor; (II) required to be disclosed
pursuant to an order of a court of competent jurisdiction or by applicable law or regulation, provided, however, that (a) such
disclosure is made only to the extent and solely to the recipient legally required; and (b) Company is provided with prior
written notice of such legal requirement and with the opportunity to oppose the disclosure or obtain a protective order.

 

Contractor
shall be responsible towards Company for any disclosure or misuse of Confidential Information which results from a failure of
Contractor and/or its employees or any other persons acting on its behalf, to comply with this Agreement.

 

	 	Intellectual
    Property Rights:
	 	 	 
	 	5.2	Contractor
    acknowledges that all inventions, developments, improvements, mask works, trade secrets, modifications, discoveries, concepts,
    ideas, techniques, methods, know-how, designs, proprietary information, whether or not patentable or otherwise protectable,
    and all intellectual property rights associated therewith, which are invented, made, developed, discovered, conceived or created,
    in whole or in part by him, independently, or jointly with others, (i) in the framework of the Services hereunder; or (ii)
    which are incorporated in any deliverables provided in the framework of the Services (all of the above: the “IP Rights”);
    shall be the sole and exclusive property of Company and shall be deemed work-made-for-hire by the Contractor for the sole
    and exclusive benefit of Company. Without derogating from the generality of the aforementioned, it is clarified that, inter
    alia, Company shall be able and permitted to disclose and/or transfer any deliverables provided under the Services and/or
    the IP Rights, and/or any part thereof, to any third parties, and/or to grant rights to use same, all according to Company’s
    sole discretion. Contractor shall have no rights, claims or interest whatsoever in or with respect to the IP Rights. Without
    derogating from the aforementioned, to the extent that it shall be determined by a competent authority that Contractor owns
    any of the IP Rights, Contractor hereby irrevocably and unconditionally assigns to Company any and all rights and interests
    in the IP Rights, for no further consideration whatsoever. Contractor shall not represent that it possesses any proprietary
    right and/or interest in the IP Rights, or in any part thereof, and shall not, directly or indirectly, take any action to
    contest Company’s ownership of any such IP Rights, or infringe them in any way, or assist any third party to do any
    of the foregoing. 
	 	 	 
	 	5.3	Contractor
    undertakes to take all necessary measures and to fully cooperate with Company, during and after the term of this Agreement,
    in order to perfect, enforce, or defend the proprietary rights, as described in section 5.2 hereinabove and effectuate Company’s
    title and interest therein, including without limitation, as follows: (i) to promptly disclose to Company any and all IP Rights;
    (ii) to keep accurate records relating to the conception and reduction to practice of all IP Rights. Such records shall be
    the sole and exclusive property of Company and shall be surrendered to the possession of Company, immediately upon their creation;
    (iii) to provide Company with all information, documentation, and assistance, including the preparation or execution, as applicable,
    of documents, declarations, assignments, drawings and other data. Subject to the limitation of the scope set forth in Section
    1.4 above, all such information, documentation, and assistance shall be provided at no additional expense to Company, except
    for out-of-pocket expenses which shall be incurred by Contractor at Company’s request, provided that following the term
    of the Agreement the Company shall also pay for all the time spent by Contractor as shall be agreed by the Parties. For the
    removal of any doubt, Contractor shall not be entitled to any additional compensation for fulfilling the duties hereunder.

 

    	 	 	 

    	 	~36~	 

    

 

	 	5.4	For
    the removal of doubt, nothing herein shall be construed as a license to Contractor to use any of the IP Rights for any other
    purpose other than the provision of the Services hereunder to the Company. 
	 	 	 
	 	General:
	 	 	 
	 	5.5	For
    the purpose of this Section 5, the term “Company” shall include Company and any subsidiaries or parent or related
    companies thereof.
	 	 	 
	 	5.6	The
    provisions of the undertakings of this Section 5, shall survive the termination or expiration of this Agreement.
	 	 	 
	 	5.7	It
    is clarified that any breach of any of the provisions of this Section 5, shall be deemed a material breach of this Agreement
    for all intents and purposes.

 

6.
Assignment

 

	 	This
    Agreement may not be assigned by any party hereto, without
    the prior written
    consent of the other
    Party, except that
    Company may assign
    this Agreement
    in connection with
    a merger,
    acquisition, sale
    of all or substantially
    all of the Company’s assets
    or other such corporate
    reorganization

 

7.
Independent Contractors

 

	 	Company
    and Contractor are each independent contractors. This Agreement does not create a joint venture, partnership, principal-agent
    or employment relationship between Company and Contractor.

 

8.
Miscellaneous

 

	 	8.1	This
    Agreement together with the Preamble and the Annexes hereto contain the entire agreement between the parties hereto with respect
    to the subject matter hereof, and supersedes all prior agreements, arrangements and understandings, written or oral, relating
    to the subject matter hereof, if any.

 

    	 	 	 

    	 	~37~	 

    

 

	 	8.2	All
    notices given by one party to the other hereunder shall be in writing and shall be delivered to the addresses indicated in
    the preamble above, or such other address as a party may thereafter give notice in accordance herewith, and will be deemed
    to have been delivered to the addressee: upon delivery, if delivered by hand; or within five (5) days after being posted,
    if sent by registered mail, postage prepaid.
	 	 	 
	 	8.3	This
    Agreement shall be governed by the laws of the State of Israel (excluding its choice of law rules). Exclusive jurisdiction
    with respect to any matter arising from or related to this Agreement shall rest with the competent courts in Tel Aviv - Jaffa,
    only, to exclude the jurisdiction of any other court.
	 	 	 
	 	8.4	The
    Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when
    taken together shall be considered one and the same Agreement.

 

In
Witness Whereof, the parties hereto have caused this Agreement to be duly executed on the date first above written:

 

	 	 	 
	Company	 	Contractor

 

	By:	 	 	By:	 
	 	 	 	 	 
	Title:	 	 	Title:Exhibit

Exhibit 10.1

WAYFAIR INC.

INDEMNIFICATION AND ADVANCEMENT AGREEMENT
This Indemnification and Advancement Agreement (“Agreement”) is made as of ________ __, 2018 by and between Wayfair Inc., a Delaware corporation (the “Company”), and ______________, [a member of the Board of Directors/ an officer] of the Company (“Indemnitee”).  This Agreement supersedes and replaces any and all previous Agreements between the Company and Indemnitee covering indemnification and advancement.  
RECITALS
WHEREAS, the Board of Directors of the Company (the “Board”) believes that highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers, or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification and advancement of expenses against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;
WHEREAS, the Board has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.  The Bylaws of the Company require indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the “DGCL”).  The Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification and advancement of expenses;
WHEREAS, the uncertainties relating to such insurance, to indemnification, and to advancement of expenses may increase the difficulty of attracting and retaining such persons;
WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;
WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 
WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws,  Certificate of Incorporation and any resolutions adopted pursuant thereto, and is not a substitute therefor, nor diminishes or abrogates any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee does not regard the protection available under the Bylaws, Certificate of Incorporation, DGCL and insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as an officer or director without adequate additional protection, and the Company desires Indemnitee to serve or continue to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified and be advanced expenses.
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:
Section 1.Services to the Company.  Indemnitee agrees to serve as a [director/officer] of the Company.  Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law).  This Agreement does not create any obligation on the Company to continue Indemnitee in such position and is not an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.  
Section 2.    Definitions.  As used in this Agreement:
(a)    “Agent” means any person who is authorized by the Company or an Enterprise to act for or represent the interests of the Company or an Enterprise, respectively.
(b)    A “Change in Control” occurs upon the earliest to occur after the date of this Agreement of any of the following events:
i.    Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities unless the change in relative beneficial ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;
ii.    Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;
iii.    Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;
iv.    Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and
v.    Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.
vi.    For purposes of this Section 2(b), the following terms have the following meanings:
		
	1
	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

		
	2
	“Person” has the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person excludes (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

		
	3
	“Beneficial Owner” has the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner excludes any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

(c)     “Corporate Status” describes the status of a person who is or was acting as a director, officer, employee, fiduciary, or Agent of the Company or an Enterprise.
(d)    “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
(e)    “Enterprise” means any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity for which Indemnitee is or was serving at the request of the Company as a director, officer, employee, or Agent.
(f)    “Expenses” includes all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding.  Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14(d) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise.  The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable in the good faith judgment of such counsel will be presumed conclusively to be reasonable.  Expenses, however, do not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
(g)    “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” does not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  
(h)       “Potential Change in Control” means the occurrence of any of the following events: (i) the Company enters into any written or oral agreement, undertaking or arrangement, the consummation of which would result in the occurrence of a Change in Control; (ii) any Person or the Company publicly announces an intention to take or consider taking actions which if consummated would constitute a Change in Control; (iii) any Person who becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 5% or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors increases his beneficial ownership of such securities by 5% or more over the percentage so owned by such Person on the date hereof; or (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred.
(i)    The term “Proceeding” includes any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of Indemnitee’s Corporate Status or by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee’s part while acting pursuant to Indemnitee’s Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement.  A Proceeding also includes a situation the Indemnitee believes in good faith may lead to or culminate in the institution of a Proceeding.
Section 3.    Indemnity in Third-Party Proceedings.  The Company will indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding had no reasonable cause to believe that Indemnitee’s conduct was unlawful.  
Section 4.    Indemnity in Proceedings by or in the Right of the Company.  The Company will indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company.  The Company will not indemnify Indemnitee for Expenses under this Section 4 related to any claim, issue or matter in a Proceeding for which Indemnitee has been finally adjudged by a court to be liable to the Company, unless, and only to the extent that, the Delaware Court of Chancery or any court in which the Proceeding was brought determines upon application by Indemnitee that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.
Section 5.    Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with any Proceeding to the extent that Indemnitee is successful, on the merits or otherwise.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law.  For purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, will be deemed to be a successful result as to such claim, issue or matter.
Section 6.    Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this Agreement and to the fullest extent permitted by applicable law, the Company will indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding to which Indemnitee is not a party but to which Indemnitee is a witness, deponent, interviewee, or otherwise asked to participate.
Section 7.    Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company will indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.
Section 8.    Additional Indemnification.  Notwithstanding any limitation in Sections 3, 4, or 5, the Company will indemnify Indemnitee to the fullest extent permitted by applicable law (including but not limited to, the DGCL and any amendments to or replacements of the DGCL adopted after the date of this Agreement that expand the Company’s ability to indemnify its officers and directors) if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor). 
Section 9.    Exclusions.  Notwithstanding any provision in this Agreement, the Company is not obligated under this Agreement to make any indemnification payment to Indemnitee in connection with any Proceeding:
(a)    for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or
(b)    for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as defined in Section 2(b) hereof) or similar provisions of state statutory law or common law, (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or
(c)    initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Proceeding or part of any Proceeding is to enforce Indemnitee’s rights to indemnification or advancement, of Expenses, including a Proceeding (or any part of any Proceeding) initiated pursuant to Section 14 of this Agreement, (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.
Section 10.    Advances of Expenses.  
(a)    The Company will advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding (or any part of any Proceeding) not initiated by Indemnitee or any Proceeding (or any part of any Proceeding) initiated by Indemnitee if (i) the Proceeding or part of any Proceeding is to enforce Indemnitee’s rights to obtain indemnification or advancement of Expenses from the Company or Enterprise, including a proceeding initiated pursuant to Section 14 or (ii) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation. The Company will advance the Expenses within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding.  
(b)    Advances will be unsecured and interest free.  Indemnitee undertakes to repay the amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company, thus Indemnitee qualifies for advances upon the execution of this Agreement and delivery to the Company.  No other form of undertaking is required other than the execution of this Agreement.  The Company will make advances without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.   
Section 11.    Procedure for Notification of Claim for Indemnification or Advancement.
(a)    Indemnitee will notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof.  Indemnitee will include in the written notification to the Company a description of the nature of the Proceeding and the facts underlying the Proceeding and provide such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding.  Indemnitee’s failure to notify the Company will not relieve the Company from any obligation it may have to Indemnitee under this Agreement, and any delay in so notifying the Company will not constitute a waiver by Indemnitee of any rights under this Agreement.  The Secretary of the Company will, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification or advancement.
(b)    The Company will be entitled to participate in the Proceeding at its own expense.
Section 12.    Procedure Upon Application for Indemnification.  
(a)    Unless a Change of Control has occurred, the determination of Indemnitee’s entitlement to indemnification will be made:
i.    by a majority vote of the Disinterested Directors, even though less than a quorum of the Board; 
ii.    by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board; 
iii.     if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by written opinion provided by Independent Counsel selected by the Board; or 
iv.    if so directed by the Board, by the stockholders of the Company.
(b)    If a Change in Control has occurred, the determination of Indemnitee’s entitlement to indemnification will be made by written opinion provided by Independent Counsel selected by Indemnitee (unless Indemnitee requests such selection be made by the Board)
(c)     The party selecting Independent Counsel pursuant to subsection (a)(iii) or (b) of this Section 12 will provide written notice of the selection to the other party.  The notified party may, within ten (10) days after receiving written notice of the selection of Independent Counsel, deliver to the selecting party a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection will set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected will act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit.  If, within thirty (30) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) hereof and the final disposition of the Proceeding, Independent Counsel has not been selected or, if selected, any objection to has not been resolved, either the Company or Indemnitee may petition the Delaware Court for the appointment as Independent Counsel of a person selected by such court or by such other person as such court designates.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel will be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
(d)    Indemnitee will cooperate with the person, persons or entity making the determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  The Company will advance and pay any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making the indemnification determination irrespective of the determination as to Indemnitee’s entitlement to indemnification and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.  The Company promptly will advise Indemnitee in writing of the determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied and providing a copy of any written opinion provided to the Board by Independent Counsel.
(e)    If it is determined that Indemnitee is entitled to indemnification, the Company will make payment to Indemnitee within ten (10) days after such determination.  
Section 13.    Presumptions and Effect of Certain Proceedings.
(a)    In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination will, to the fullest extent not prohibited by law, presume Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company will, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption.  Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, will be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
(b)    If the determination of the Indemnitee’s entitlement to indemnification has not been made pursuant to Section 12 within sixty (60) days after the latter of (i) receipt by the Company of Indemnitee’s request for indemnification pursuant to Section 11(a) and (ii) the final disposition of the Proceeding for which Indemnitee requested Indemnification (the “Determination Period”), the requisite determination of entitlement to indemnification will, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee will be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.  The Determination Period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, the Determination Period may be extended an additional fifteen (15) days if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a)(iv) of this Agreement.
(c)    The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, will not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.
(d)    For purposes of any determination of good faith, Indemnitee will be deemed to have acted in good faith if Indemnitee acted based on the records or books of account of the Company, its subsidiaries, or an Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Company, its subsidiaries, or an Enterprise in the course of their duties, or on the advice of legal counsel for the Company, its subsidiaries, or an Enterprise or on information or records given or reports made to the Company or an Enterprise by an independent certified public accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Company, its subsidiaries, or an Enterprise.  Further, Indemnitee will be deemed to have acted in a manner “not opposed to the best interests of the Company,” as referred to in this Agreement if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan.  The provisions of this Section 13(d) are not exclusive and do not limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.
(e)    The knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise may not be imputed to Indemnitee for purposes of determining Indemnitee’s right to indemnification under this Agreement.
Section 14.    Remedies of Indemnitee.  
(a)    Indemnitee may commence litigation against the Company in the Delaware Court of Chancery to obtain indemnification or advancement of Expenses provided by this Agreement in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company does not advance Expenses pursuant to Section 10 of this Agreement, (iii) the determination of entitlement to indemnification is not made pursuant to Section 12 of this Agreement within the Determination Period, (iv) the Company does not indemnify Indemnitee pursuant to Section 5 or 6 or the second to last sentence of Section 12(d) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) the Company does not indemnify Indemnitee pursuant to Section 3, 4, 7, or 8 of this Agreement within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder.  Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee must commence such Proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such Proceeding pursuant to this Section 14(a); provided, however, that the foregoing clause does not apply in respect of a Proceeding brought by Indemnitee to enforce Indemnitee’s rights under Section 5 of this Agreement.  The Company will not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.
(b)    If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 will be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee may not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 14 the Company will have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be and will not introduce evidence of the determination made pursuant to Section 12 of this Agreement.
(c)    If a determination is made pursuant to Section 12 of this Agreement that Indemnitee is entitled to indemnification, the Company will be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.
(d)    The Company is, to the fullest extent not prohibited by law, precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and will stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  
(e)    It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder.  The Company, to the fullest extent permitted by law, will (within ten (10) days after receipt by the Company of a written request therefor) advance to Indemnitee such Expenses which are incurred by Indemnitee in connection with any action concerning this Agreement, Indemnitee’s right to indemnification or advancement of Expenses from the Company, or concerning any directors’ and officers’ liability insurance policies maintained by the Company and the Company will also indemnify Indemnitee against any and all such Expenses unless the court determines that each of the Indemnitee’s claims in such Proceeding were made in bad faith or were frivolous or are prohibited by law.
Section 15.    Non-exclusivity; Survival of Rights; Insurance; Subrogation.  
(a)    The indemnification and advancement of Expenses provided by this Agreement are not exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.  The indemnification and advancement of Expenses provided by this Agreement may not be limited or restricted by any amendment, alteration or repeal of this Agreement in any way with respect to any action taken or omitted by Indemnitee in Indemnitee’s Corporate Status occurring prior to any amendment, alteration or repeal of this Agreement.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws, Certificate of Incorporation, or this Agreement, it is the intent of the parties hereto that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy is cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, will not prevent the concurrent assertion or employment of any other right or remedy.
(b)    To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Enterprise, the Company will obtain a policy or policies covering Indemnitee to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies, including coverage in the event the Company does not or cannot, for any reason, indemnify or advance Expenses to Indemnitee as required by this Agreement.  If, at the time of the receipt of a notice of a claim pursuant to this Agreement, the Company has director and officer liability insurance in effect, the Company will give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies.  The Company will thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.  Indemnitee agrees to assist the Company’s efforts to cause the insurers to pay such amounts and will comply with the terms of such policies, including selection of approved panel counsel, if required.
(c)    The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee for any Proceeding concerning Indemnitee’s Corporate Status with an Enterprise will be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such Enterprise. The Company and Indemnitee intend that any such Enterprise (and its insurers) be the indemnitor of first resort with respect to indemnification and advancement of Expenses for any Proceeding related to or arising from Indemnitee’s Corporate Status with such Enterprise.  The Company’s obligation to indemnify and advance Expenses to Indemnitee is secondary to the obligations the Enterprise or its insurers owe to Indemnitee.  Indemnitee agrees to take all reasonably necessary and desirable action to obtain from an Enterprise indemnification and advancement of Expenses for any Proceeding related to or arising from Indemnitee’s Corporate Status with such Enterprise.
(d)    In the event of any payment made by the Company under this Agreement, the Company will be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee from any Enterprise or insurance carrier.  Indemnitee will execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.
Section 16.    Duration of Agreement.  This Agreement continues until and terminates upon the later of: (a) ten (10) years after the date that Indemnitee ceases to serve as a [director/officer] of the Company or (b) one (1) year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any Proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement relating thereto.  The indemnification and advancement of Expenses rights provided by or granted pursuant to this Agreement are binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise, and inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives. 
Section 17.    Severability.  If any provision or provisions of this Agreement is held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will not in any way be affected or impaired thereby and remain enforceable to the fullest extent permitted by law; (b) such provision or provisions will be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) will be construed so as to give effect to the intent manifested thereby.
Section 18.    Interpretation.  Any ambiguity in the terms of this Agreement will be resolved in favor of Indemnitee and in a manner to provide the maximum indemnification and advancement of Expenses permitted by law.  The Company and Indemnitee intend that this Agreement provide to the fullest extent permitted by law for indemnification in excess of that expressly provided, without limitation, by the Certificate of Incorporation, the Bylaws, vote of the Company stockholders or disinterested directors, or applicable law.
Section 19.    Enforcement.
(a)    The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as a director or officer of the Company.
(b)    This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and applicable law, and is not a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.
Section 20.    Modification and Waiver.  No supplement, modification or amendment of this Agreement is binding unless executed in writing by the parties hereto.  No waiver of any of the provisions of this Agreement will be deemed or constitutes a waiver of any other provisions of this Agreement nor will any waiver constitute a continuing waiver.
Section 21.    Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company does not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise. 
Section 22.    Notices.  All notices, requests, demands and other communications under this Agreement will be in writing and will be deemed to have been duly given if (a) delivered by hand to the other party, (b) sent by reputable overnight courier to the other party or (c) sent by facsimile transmission or electronic mail, with receipt of oral confirmation that such communication has been received:
(a)    If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee provides to the Company.
(b)    If to the Company to:
Wayfair Inc.
4 Copley Place, 7th Floor
Boston, MA 02116
Attention:  General Counsel
Email:  ecolbert@wayfair.com
With a copy to: legal@wayfair.com 

or to any other address as may have been furnished to Indemnitee by the Company.
Section 23.    Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, will contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).
Section 24.    Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties are governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or Proceeding arising out of or in connection with this Agreement may be brought only in the Delaware Court of Chancery and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or Proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or Proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or Proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.
Section 25.    Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which will for all purposes be deemed to be an original but all of which together constitutes one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.
Section 26.    Headings.  The headings of this Agreement are inserted for convenience only and do not constitute part of this Agreement or affect the construction thereof.
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.
 COMPANY                         INDEMNITEE
WAYFAIR INC.                         
 
 
By:                                             
Name:                            Name: 
Title:                            Address:

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