Document:

TECHNOLOGY
        CENTRE OF NEW JERSEY

      COMMERCIALIZATION
        CENTER FOR INNOVATIVE TECHNOLOGIES

      

      LEASE
        AGREEMENT

       

      AGREEMENT
        OF LEASE made the 15 day of March, 2006, by and between THE NEW JERSEY ECONOMIC
        DEVELOPMENT AUTHORITY hereinafter referred to as “LANDLORD”, and, Rosetta
        Genomics,Inc. a New Jersey corporation, hereinafter referred to as
“TENANT”.

      

      1. DEFINITIONS

      

      The
        term
“BUILDING” means the building and improvements known as Tech Three and situate
        and located at the Centre (defined below) consisting of a free standing building
        containing 80,000 rentable square feet of space.

      

      The
        Term
“COMMERCIALIZATION CENTER” mean that portion of the BUILDING consisting of
        44,000 square feet of space; (1) 20,000 square feet of space and leased from
        the
        Technology Centre of New Jersey, L.L.C. to the LANDLORD under an Agreement
        and
        Lease dated February
        1, 2002 and,
        (2)
        24,000 square feet of space and leased from the Technology Centre of New
        Jersey,
        L.L.C. to the LANDLORD under an Agreement and Lease dated May
        19, 2004.

      

      The
        term
“COMMERCIALIZATION CENTER SHARE” shall be 55% of the BUILDING SHARE in that the
        COMMERCIALIZATION CENTER is comprises 55% of the BUILDING.

       

      
        
          
          

        

        
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      The
        term
“CENTRE” means the land, buildings and improvements (including without
        limitation the BUILDING and other buildings) comprising the 50 acre science
        and technology park known as the Technology Centre of New Jersey North
        Brunswick, New Jersey, Lots 20,28, 29.03, Block 194.

      

      The
        term
“COMMON AREAS” means those exterior areas of the CENTRE intended for the
        non-exclusive use of all tenants of the CENTRE and their agents, employees,
        invitees and licensees and the interior area of the COMMERCIALIZATION CENTER
        intended for the non-exclusive use of all tenants of the COMMERCIALIZATION
        CENTER and their agents, employees, invitees and licensees in common with
        LANDLORD and other parties.

      

      The
        term
“LEASED PREMISES” means that portion of the COMMERCIALIZATION CENTER delineated
        on the floor plans constituting EXHIBIT
        A
        attached
        hereto and made a part hereof, bounded by the interior sides of the centers
        of
        all demising walls other than exterior BUILDING walls and the exterior sides
        of
        all exterior BUILDING walls. For purposes of this LEASE, TENANT and LANDLORD
        agree that the LEASED PREMISES consists of One (1) Laboratory Unit(s) and
        made
        up of One thousand (1,000) Rentable square feet.

      

      2. USE
        OF LEASED PREMISES

       

      TENANT
        shall not use or occupy, or permit or suffer to be used or occupied the LEASED
        PREMISES or any part thereof, other than for office, research, laboratory
        and
        related manufacturing or training facilities that are consistent with applicable
        municipal zoning ordinances, as same may be amended from time to time. TENANT
        agrees to use the LEASED PREMISES in a manner consistent with LANDLORD’s public
        policy to develop and manage the CENTRE as research/high technology
        park.

      
        
          
          

        

        
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      3. LEASE
        OF LEASED PREMISES

       

      LANDLORD
        hereby leases to the TENANT and TENANT hereby leases from the LANDLORD, upon
        and
        subject to the terms and provisions of this LEASE, the LEASED PREMISES, together
        with all rights and benefits appurtenant to the LEASED PREMISES. TENANT shall
        each be jointly and severally to perform each and every term of this
        LEASE

      

      4. INITIAL
        TERM, RENEWAL OPTIONS and RENT COMMENCEMENT

       

      4.1
        The
        term of this LEASE shall be fro the period beginning on March 15, 2006 (the
        “COMMENCEMENT DATE”) and ending on March 14, 2007 (the “TERMINATION DATE”) (the
“TERM”).  Upon
        mutual consent, this LEASE may be renewed for three (3) year(s).

      

      5. RENT

      

      5.1 “RENT”
        (as hereinafter defined) shall commence to accrue and be payable (the “RENT
        COMMENCEMENT DATE”) from the earlier of: (a) March 15, 2006 or (b) the date that
        TENANT or anyone claiming under or through TENANT first occupies or takes
        possession of the LEASED PREMISES or any portion thereof.

      

      5.2 TENANT
        covenants and agrees to pay to LANDLORD, RENT, in advance, on the first day
        of
        each month during the term of this lease as follows: for one (1) laboratory
        of
        1000 square feet (B119).

      Laboratory
        Rent Space:

      
        	 	 	
                For
                  the period of one (1) Year starting on the RENT COMMENCEMENT DATE,
                  $30,000
                  ($2,500 per unit per month) 

              

      

      
        
          
          

        

        
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      5.3 For
        any
        installment of NET RENT or ADDITIONAL RENT payable by TENANT which is not
        paid
        within fifteen (15) days after the date due, TENANT will pay to LANDLORD
        as
        ADDITIONAL RENT a late charge equal to two percent (2%) of such past due
        amount.

       

      6 ADDITIONAL
        RENT        

      

      6.1 The
        “ADDITIONAL RENT” (as hereinafter defined) shall commence to accrue and be
        payable from the RENT COMMENCEMENT DATE.

       

      6.2 The
        ADDITIONAL RENT shall consist of (1) 100% of OPERATING 

      EXPENSES
        attributable solely to the LEASED PREMISES; (2) Milestone Additional Rent
        as
        stated on Exhibit B, and (3) 100% of all other ADDITIONAL RENT expressly
        set
        forth elsewhere in this LEASE and Exhibits.

       

      6.3 OPERATING
        EXPENSES means the following:

      

      (a) sub-metered
        electrical usage for Leased Premises lighting, and receptacles;

       

      (b) heating
        Ventilation Air Conditioning charges for usage other than usage during the
        normal hours of 7 AM to 7 PM Monday through Friday;

       

      (c) per
        use
        charge of the copier and fax machines at LANDLORD’s posted and reasonable
        rates;

       

      (d) per
        use
        charge for the use of the Autoclave at LANDLORD’s posted and reasonable
        rates;

      
        
          
          

        

        
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      (e)
        per
        month charge per unit for access to internet and phone services at LANDLORD’s
        posted and reasonable rates. TENANT will be responsible for toll calls and
        other
        phone charges;

       

      (f) use
        of
        other fee-for-use services utilized by TENANT at LANDLORD’s posted and
        reasonable rates; 

       

      6.4 
        MILESTONE RENT which shall be calculated as set forth in Exhibit B and
ADDITIONAL
        RENT
        shall be
        paid to LANDLORD 30 days from TENANT’s receipt of LANDLORD’s bill for MILESTONE
        RENT or ADDITIONAL RENT charges.

      

      7.  COMMERCIALIZATION
        CENTER PROGRAM

      

      
        
          7.1
            As
            an
            inducement to LANDLORD to enter into this LEASE, TENANT covenants
            and warrant to abide by the following policies during the TERM of the
            LEASE:

        

      

      

      (a)
        TENANT agrees to meet at least annually with a COMMERCIALIZATION CENTER’s
        advisory board to review and discuss TENANT’S business plan, financial progress
        and development business strategy;

      

      (b)
        TENANT shall report to LANDLORD quarterly the number of full and part-time
        paid
        jobs sustained by TENANT;

      

      (c)
        TENANT shall report to the LANDLORD annually for two years following termination
        of this LEASE on the number of jobs TENANT is sustaining in New Jersey. This
        provision Section 7.1(d) shall survive the LEASE TERMINATION by two
        years;

      
        
          
          

        

        
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      (d)
        TENANT shall participate in the Commercialization Center for Innovative
        Technologies tenant business development program conducted by the LANDLORD’s
        manager as set forth in the Commercialization Center Participation Agreement
        entered into by the Landlord and the Tenant and shall report requested company
        financial information on a semi-annual basis as set forth therein.

       

      7.2
        TENANT understands that noncompliance with any item in Section 7.1 constitutes
        an EVENT OF DEFAULT under this LEASE and shall subject TENANT to all remedies
        available to LANDLORD, including termination of this LEASE, in accordance
        with
        Section 17.

      

      8. CONDITION
        OF THE LEASED PREMISES

       

      8.1 Except
        as
        otherwise set forth LANDLORD shall be under no duty or obligation to make
        any
        repairs or alterations to the LEASED PREMISES.

      

      8.2 LANDLORD
        shall deliver the LEASED PREMISES in clean condition, free of
        debris.

      

      8.3 LANDLORD
        represents and warrants that:

       

      (a)
         the
        BUILDING is structurally sound and weather tight;

       

      (b)
         the
        LEASED PREMISES is in good working order, well maintained (to the extend
        of
        LANDLORD services as specified in this LEASE AGREEMENT), and in compliance
        with
        all applicable building codes, rules and regulations, laws and ordinances
        of
        government authorities;

       

      (c) Two
        (2)
        of the parking spaces located in the parking area designated on Exhibit
        D
        are for
        the non-exclusive use of TENANT, its agents, employees, servants, contractors,
        subtenants, licensees, customers or business invitees and that said parking
        area
        is completed in compliance with all applicable laws;

      
        
          
          

        

        
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      (d)
         LANDLORD
        covenants, at its sole cost and expense, to complete all necessary repairs
        or
        replacements required to cause the LEASED PREMISES to comply with Sections
        8.3(a), (b),
        and
(c)
        above,
        promptly but within sixty (60) days from written notice from TENANT; provided,
        however, that if such repair or replacement cannot reasonably be completed
        within said sixty (60) days, LANDLORD shall not be in breach of this covenant
        if
        LANDLORD has commenced such repair or replacement within said sixty (60)
        day
        period and thereafter promptly and diligently prosecutes such repair or
        replacement to completion.

       

      9. ALTERATIONS,
        ADDITIONS AND IMPROVEMENTS

      

      9.1 TENANT
        shall bear the cost and expense of modifying the interior of the BUILDING
        for
        its use (the “TENANT IMPROVEMENTS”), including without limitation obtaining all
        required approvals, permits, and certificates from the governmental authorities
        having jurisdiction of the BUILDING and LANDLORD shall cooperate with TENANT
        in
        connection therewith. Prior to obtaining such approvals, certificates and
        approvals and commencing construction of any TENANT IMPROVEMENTS, TENANT
        shall
        obtain written approval of LANDLORD of all plans, drawings and specifications,
        which approval shall not be unreasonably withheld or delayed, and TENANT
        shall
        deposit with LANDLORD, LANDLORD’s estimate of cost of TENANT IMPROVEMENTS.
        TENANT IMPROVEMENTS is not intended to include personal property, moveable
        equipment, and trade fixtures not mounted to the LEASED PREMISES.

       

      9.2 During
        the TERM of the LEASE, TENANT IMPROVEMENTS shall be undertaken by LANDLORD
        at
        TENANT’s expense in a good and workmanlike manner. TENANT IMPROVEMENTS shall be
        constructed in accordance with all laws, codes and regulations and in accordance
        with the plans, drawings and specifications approved by LANDLORD in accordance
        with Section
        9.1.

      
        
          
          

        

        
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      9.3 All
        work
        relating to TENANT IMPROVEMENTS shall be subject to the prevailing wage
        requirements and affirmative action requirements of the New Jersey Economic
        Development Authority.

      

      9.4 To
        the
        extent permitted by law, any TENANT IMPROVEMENTS are to be constructed by
        contractors and sub-contractors employing craft workers who are members of
        unions that are affiliated with the AFL-CIO Building and Construction Trades
        Department in accordance with applicable collective bargaining agreements.
        LANDLORD and TENANT shall use contractors and sub-contractors employing workers
        represented by unions that are affiliated with the AFL-CIO Building and
        Construction Trades Department in accordance with applicable collective
        bargaining agreements to provide for janitorial services and BUILDING
        maintenance.

       

      10. AFFIRMATIVE
        COVENANTS OF TENANT

      

      10.1 TENANT
        shall, throughout the TERM of this LEASE, pay the RENT and ADDITIONAL RENT,
        (as
        applicable), and all other charges herein reserved as rent on the days and
        times
        and at the place that the same are made payable.

      

      10.2 TENANT
        shall, throughout the TERM of this LEASE without demand, keep and maintain
        the
        LEASED PREMISES as follows: clean and free from all ashes, dirt and other
        refuse
        matter, including refuse removed from the LEASED PREMISES, and generally
        keep
        and maintain the LEASED PREMISES in as good order as it is at the COMMENCEMENT
        DATE ordinary wear and tear alone excepted (subject to damage by fire or
        other
        casualty pursuant to the provisions of Section
        13).

      
        
          
          

        

        
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      10.3 TENANT
        shall, throughout the TERM of this LEASE, comply with all the terms of any
        State
        or Federal statute or local ordinance or regulation applicable to TENANT
        or its
        manner of use of the LEASED PREMISES, and save, indemnify, defend and hold
        LANDLORD harmless from penalties, fines, costs or damages resulting from
        failure
        to do so.

      

      10.4 TENANT
        shall, subject to Section
        10.2,
        peaceably deliver up and surrender possession of the LEASED PREMISES in a
        broom-swept condition, at the expiration or sooner termination of the LEASE
        hereof, promptly delivering to LANDLORD, at LANDLORD’S office, all keys to the
        LEASED PREMISES and BUILDING and surrender the LEASED PREMISES and BUILDING
        in
        the same good order and repair as it is at the COMMENCEMENT DATE, ordinary
        wear
        and tear alone excepted (subject to damage by fire or other casualty pursuant
        to
        the provisions of Section
        13).
        Furthermore, upon TENANT'S surrender of possession of any unit(s) of the
        LEASED
        PREMISES, LANDLORD shall, at TENANT’S expense, will contract for the vacated
        unit(s) to be de-commissioned and thoroughly cleaned to remove biological
        residue and other microscopic particles, as reasonably determined by
        LANDLORD.

      

      10.5 TENANT
        shall, upon termination of the LEASE for any cause whatsoever other than
        LANDLORD’S default, remove from the LEASED PREMISES:

      

      (a) all
        TENANT personal property; and

      (b) all
        fixtures listed on Exhibit
        E;   

      

      10.6
        TENANT shall not store any materials, property, debris, or other items in
        any
        part of the BUILDING other than the LEASED PREMISES. 

      

      10.7
        TENANT shall comply with LANDLORD environmental and operational regulations
        as
        attached in Exhibit F.

      
        
          
          

        

        
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      11. LANDLORD
        SERVICES

       

      11.1 LANDLORD,
        at LANDLORD’S cost and expense shall:

       

      (a) provide
        lawn care and landscaping for the COMMON AREAS;

      (b) provide
        snow shoveling and snow and ice removal from the parking area, sidewalks,
        drives
        and roadways on the COMMON AREAS;

      (c) provide
        general external and structural maintenance to the BUILDING;

      (d) keep
        in
        good order and repair and maintain, in accordance with all applicable laws,
        rules and regulations, the fire water pump, pump house, sewer, water, gas,
        electrical and fire lines located in the CENTRE;

      (e) maintain
        and service the heat, air-conditioning, ventilation, mechanical, electrical,
        gas
        and plumbing systems for the LEASED PREMISES; 

      (f)
         provide
        a
        dumpster near the BUILDING for TENANT’s use for ordinary and customary office
        refuse; and

      (g) cause
        the
        BUILDING (exclusive of LEASED PREMISES) and CENTRE COMMON AREAS to comply
        with
        all laws, ordinances, rules and regulations. 

      (h)
        LANDLORD shall provide janitorial services to the COMMERCIALIZATION CENTER’s
        interior COMMON AREAS. 

      

      11.2 If
        any
        interruption of utilities or essential services that (1) results from LANDLORD’S
        default hereunder or LANDLORD’S negligence, (2) is within the LANDLORD’S
        reasonable control to correct and (3) does not result from TENANT’S default or
        failure to maintain hereunder or TENANT’S negligence, shall continue for more
        than five (5) consecutive business days and shall render the LEASED PREMISES
        untenantable for the normal conduct of TENANT’S business, a pro rata portion
        based upon the untenantable square feet of the LEASED PREMISES of the NET
        RENT
        and ADDITIONAL RENT and other payments hereunder shall abate from the period
        beginning on the sixth (6th) consecutive business day of such interruption
        and
        continuing until and to the extent use of the LEASED PREMISES is restored
        to
        TENANT. LANDLORD shall have no other or further liability to TENANT for any
        interruption or suspension of heating, air-conditioning, ventilation, electric,
        plumbing, mechanical services to the LEASED PREMISES.

      
        
          
          

        

        
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      12. RULES
        AND REGULATIONS

      

      12.1 Rules.
        TENANT,
        its employees and invitees, shall comply with the rules and regulations attached
        as Exhibit
        G
        (the
“RULES”), and reasonable modifications and additions to the RULES adopted by
        LANDLORD that TENANT is given thirty (30) days’ advance notice of; provided,
        however, that such modifications or additions do not unreasonably and materially
        interfere with TENANT’S conduct of its business or TENANT’S use and enjoyment of
        the LEASED PREMISES and do not require payment of additional
        moneys.

      

      12.2 Conflict
        with LEASE. If
        a RULE
        issued under Section
        12.1
        conflicts with or is inconsistent with any LEASE provision, the LEASE provision
        controls.

      

      13. DAMAGE
        OR DESTRUCTION OF LEASED PREMISES

      

      13.1 LANDLORD
        agrees that if the LEASED PREMISES is damaged by fire or other casualty to
        an
        extent not rendering it completely untenantable, LANDLORD shall promptly
        cause
        such damage to be repaired and restored excluding any TENANT IMPROVEMENTS
        provided the repairs and restoration can be completed within two hundred
        forty
        (240) business days and, except if such fire or casualty is caused by a
        violation of applicable regulations or intent or gross negligence on the
        part of
        the TENANT, a pro rata portion based on the untenantable square feet of the
        LEASED PREMISES of the NET RENT and ADDITIONAL RENT, and other payments
        hereunder shall abate from the date of such damage to the date of completion
        of
        such repairs and restoration. If LANDLORD so repairs and restores, TENANT
        shall
        promptly thereafter restore all TENANT IMPROVEMENTS.

      
        
          
          

        

        
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      13.2 If
        the
        LEASED PREMISES shall be damaged by fire or other casualty to an extent
        rendering it completely untenantable, LANDLORD shall promptly cause such
        damage
        to be repaired and restored promptly excluding any TENANT IMPROVEMENTS provided
        the repairs and restoration can be completed within two hundred forty (240)
        business days and, except if such fire or casualty is caused by a violation
        of
        applicable regulations or intent or gross negligence on the part of the TENANT,
        the NET RENT and ADDITIONAL RENT and other payments hereunder shall abate
        completely from the date of such damage to the date of completion of such
        repairs and restoration. If LANDLORD so repair and restores, TENANT shall
        promptly thereafter restore all TENANT IMPROVEMENTS.

      

      13.3 If
        the
        LEASED PREMISES and BUILDING cannot be restored to tenantable condition within
        the two hundred forty (240) business day period set forth in Section
        13.1 or Section 13.2,
        as
        determined by a qualified architect, engineer, contractor or other qualified
        professional reasonably approved by LANDLORD, then LANDLORD may terminate
        this
        LEASE by written notice to TENANT no later than fifteen (15) days after notice
        of such professional determination. In the event that LANDLORD so terminates
        this LEASE, and if no EVENT OF DEFAULT exists (except for an EVENT OF DEFAULT
        which cannot be cured because of such casualty to the LEASED PREMISES)
        hereunder, RENT and ADDITIONAL RENT shall be prorated as of the date of the
        termination, and this LEASE shall terminate as if the TERM hereof had
        expired.

      

      13.4 All
        repairs and restoration conducted by or on behalf of LANDLORD pursuant to
        this
Section
        13
        shall be
        completed with due and reasonable diligence.

       

      14. CONDEMNATION

      
        
          
          

        

        
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      14.1 If
        the
        entire LEASED PREMISES or a portion of the BUILDING is taken by right of
        eminent
        domain for any public or quasi public use or by private purchase in lieu
        thereof
        and such taking of a portion of the BUILDING renders the LEASED PREMISES
        not
        reasonably accessible or usable, then this LEASE shall automatically end
        on the
        earlier of the date title vests or the date TENANT is dispossessed by the
        condemning authority.

      

      14.2 Omitted
        

      

      14.3 If
        the
        LEASE is canceled as provided in Section 14.1, then the NET RENT, ADDITIONAL
        RENT, TENANT’S SHARE of REAL ESTATE TAXES or PILOT, and other charges shall be
        payable up to the cancellation date. LANDLORD shall promptly refund to TENANT
        any prepaid, unaccrued NET RENT, ADDITIONAL RENT and TENANT’S SHARE of REAL
        ESTATE TAXES or PILOT, if any, less any sum then owing by TENANT to
        LANDLORD.

       

      14.4 LANDLORD
        reserves all rights to damages paid because of any partial or entire taking
        of
        the LEASED PREMISES. TENANT assigns to LANDLORD any right TENANT may have
        to the
        damages or award. Further, TENANT shall not make claims against LANDLORD
        or the
        condemning authority for damages.

      

      15. Omitted

       

      16. EVENT
        OF DEFAULT

      

      16.1 An
“Event
        of Default” shall occur after the applicable grace period described in
Sections
        16.5(a) and 16.5(b)
        have run
        if TENANT:

       

      16.2 Does
        not
        pay in full when due any and all installments of RENT, ADDITIONAL RENT or
        any
        other charge or payment herein reserved, included, or agreed to be treated
        or
        collected as rent and/or any other charge, expense, or cost herein agreed
        to be
        paid by TENANT; or

      
        
          
          

        

        
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      16.3 Violates
        or fails to perform or otherwise breaks any covenant, agreement or obligation
        under this LEASE; or

      

      16.4 Becomes
        insolvent, or makes an assignment for the benefit of creditors, or if a petition
        in bankruptcy is filed by TENANT, or if TENANT is adjudicated a bankrupt,
        or a
        bill in equity or other proceeding for the appointment of a receiver for
        TENANT
        is filed, or if proceedings for reorganization or for composition with creditors
        under any State or Federal law be instituted by TENANT, or if the real or
        personal property of TENANT shall be levied upon or sold.

      

      16.5 Anything
        herein contained to the contrary notwithstanding, any thing or act which
        would
        otherwise be an EVENT OF DEFAULT by TENANT hereunder shall not be an EVENT
        OF
        DEFAULT hereunder unless:

       

      (a) TENANT
        shall have failed to correct the alleged EVENT OF DEFAULT within a period
        of
        thirty (30) days after LANDLORD provides notice of the alleged EVENT OF DEFAULT
        if the EVENT OF DEFAULT be one which can be cured by the payment of money;
        or

      (b) TENANT
        shall have failed to correct the alleged EVENT OF DEFAULT within a period
        of
        thirty (30) days after LANDLORD provides notice of the alleged EVENT OF DEFAULT
        if the EVENT OF DEFAULT be one which cannot be cured by the payment of money
        or,
        if the alleged default be one which cannot with due diligence be cured within
        said thirty (30) day period, within such additional period as is reasonably
        necessary to correct the alleged EVENT OF DEFAULT, provided TENANT shall
        commence curing such EVENT OF DEFAULT within said thirty (30) day period
        and
        shall thereafter diligently prosecute the curing of the alleged EVENT OF
        DEFAULT.

      
        
          
          

        

        
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      17. LANDLORD’S
        REMEDIES

      

      As
        used
        in this Article 17, the term “DEFAULT RENT” refers to the amount of the whole
        balance of RENT and ADDITIONAL RENT for the entire balance of the INITIAL
        TERM
        and EXTENDED TERM for which TENANT has become bound, or any part of such
        charges
        and any other damages due to LANDLORD from TENANT under this LEASE from and
        after the date of occurrence of an EVENT OF DEFAULT.

      

      Upon
        the
        occurrence of any EVENT OF DEFAULT:

      

      17.1 LANDLORD
        may declare the whole balance of RENT and ADDITIONAL RENT for the entire
        balance
        of the
        TERM
        or any
        part of such charges and any other damages due to LANDLORD from TENANT under
        this LEASE to be due and immediately payable.

       

      17.2 LANDLORD
        may terminate this LEASE by sending to TENANT a written Notice of Termination
        no
        less than twenty-one (21) days before the Termination and thereby immediately,
        upon such twenty-first (21st) day, without the need to take any further action,
        terminate, cancel and extinguish all of TENANT’s rights of possession and
        occupancy to or in the LEASED PREMISES.

       

      17.3 LANDLORD
        may relet the LEASED PREMISES or any part or parts thereof to such person
        or
        persons as may, in LANDLORD’S discretion, be best; and TENANT shall be liable
        for any loss of DEFAULT RENT. In the event that LANDLORD relets the LEASED
        PREMISES or any part or parts thereof at a rent higher than TENANT’S rent,
        TENANT shall have no claim for such excess rents. Any such re-entry or
        re-letting by LANDLORD under this SECTION shall be without prejudice to
        LANDLORD’S claim for actual damages (including but not limited to the costs of
        reletting), and shall under no circumstances, release TENANT from liability
        for
        the payments of DEFAULT RENT and such damages arising out of the breach of
        any
        of the covenants, terms, and conditions of this LEASE.

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      17.4 Should
        TENANT fail to cure an EVENT OF DEFAULT under Section
        16.5
        within
        the applicable grace period, LANDLORD may exercise “self-help” remedies to
        regain possession of the LEASED PREMISES or bar TENANT from entry into the
        LEASED PREMISES provided that LANDLORD does so at all times in a peaceful
        manner.

      

      17.5 LANDLORD
        may exercise all or any of the rights granted to a LANDLORD in law or in
        equity
        upon an event of default by a tenant under a lease including, without
        limitation, termination of the LEASE and a suit to recover damages for such
        breach in an amount equal to the amount of rent reserved in the balance of
        the
TERM.

      

      17.6 LANDLORD
        or its mortgagee of the LEASED PREMISES (subject to Section
        32.2)
        may
        (but shall not be obligated to do so) cure such EVENT OF DEFAULT and the
        cost
        thereof shall be added to the next monthly installment of RENT payable under
        this LEASE.

      

      17.7 LANDLORD’s
        remedies under this LEASE shall be cumulative and concurrent.

       

      18. LANDLORD’S
        DEFAULT 

      

      A
        breach
        by LANDLORD shall occur if LANDLORD fails to correct an alleged breach within
        a
        period of fifteen (15) days after receipt of written notice of such breach
        from
        TENANT or, if the alleged breach be one which cannot with due diligence be
        cured
        within said fifteen (15) day period, within such additional period as is
        reasonably necessary to correct the alleged breach, provided LANDLORD shall
        commence curing such breach within said fifteen (15) day period and shall
        thereafter diligently prosecute the curing of the alleged
        breach.

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      19. WAIVER

       

      Any
        waiver by a party of a breach by the other party under this LEASE shall be
        limited to a particular breach so waived by said first party and shall not
        be
        deemed a waiver of any other remedy by said first party.

       

      20. INSURANCE

       

      20.1 TENANT
        shall maintain in full force during the LEASE hereof at its’ sole cost and
        expense the following types and minimum amounts of insurance:

       

      (a) Commercial
        General Liability and, if necessary, Commercial Umbrella insurance with a
        combined limit of not less than two million dollars ($2,000,000) each
        occurrence. Insurance shall be written on an ISO occurrence form CG 00 01
        (or a
        substitute form providing equivalent coverage) and shall cover liability
        arising
        out of, occasioned by or resulting from, products, completed operations,
        personal injury and advertising injury, premises, operations, independent
        contractors, and liability assumed under an insured contract. Any deductible,
        or
        self-insured retention, applicable to the aforementioned insurance shall
        be
        approved by LANDLORD, such approval not to be unreasonably withheld or delayed,
        and written using ISO endorsement CG 03 00 (or a substitute providing similar
        terms and conditions) which otherwise requires the TENANT to be responsible
        for
        the deductible or retention. If such Commercial General Liability insurance
        contains a General Aggregate limit, it shall apply separately to the LEASED
        PREMISES. LANDLORD shall be included as an insured under the TENANT’s Commercial
        General Liability policy using ISO additional insured endorsement CG 20 11
        (or a
        substitute form providing similar coverage), and under the Commercial Umbrella,
        if any. This insurance shall apply as primary insurance with respect to any
        other Commercial General Liability insurance or self-insurance programs afforded
        to the LANDLORD with respect to the CENTRE. If the aforementioned insurance
        is
        written on a claims made basis, the Tenant warrants that continuous coverage
        will be maintained or an extended discovery period will be exercised for
        a
        period of five (5) years beginning from the time the lease is terminated
        and
        provide Certificates of Insurance evidencing continuance of coverage with
        the
        original claims made retroactive date.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      

      (b) Automobile
        Liability and, if necessary, Commercial Umbrella insurance with a limit of
        not
        less than one million dollars ($1,000,000) each accident. Such insurance
        shall
        cover liability arising out of any auto, including owned, hired and non-owned
        vehicles. LANDLORD shall be included as an insured under the TENANT’s Automobile
        Liability policy using ISO additional insured endorsement CA 20 01, (or a
        substitute form providing similar coverage), and under the Commercial Umbrella,
        if any. This insurance shall apply as primary insurance with respect to any
        other Automobile Liability insurance or self-insurance programs afforded
        to the
        LANDLORD with respect to the CENTRE.

      

      (c) Workers’
        Compensation , and Employers’ Liability covering all of it’s employees on, in,
        or about the Leased Premises in accordance with applicable statutes of the
        State
        of New Jersey and endorsed to include coverage for any federal or other state
        law that may be found to have legal jurisdiction. The Employers’ Liability
        limits shall not be less than one million dollars ($1,000,000) each accident
        for
        bodily injury by accident or each employee for bodily injury by
        disease.

      

      (d) Commercial
        Property Insurance covering TENANT’s property, fixtures, equipment and TENANT
        IMPROVEMENTS, covering one hundred percent (100%) of the full replacement
        cost
        of the property insured. Coverage is to include business income, business
        interruption or extra expense and loss of rents and in no event shall Landlord
        be liable for any business income or other consequential loss sustained by
        Tenant, whether or not it is insured, even if such loss is caused by the
        negligence of Landlord or its agents. Commercial Property Insurance shall,
        at a
        minimum, cover the perils insured under the ISO special causes of loss form
        CP
        10 30 00 (or a substitute providing similar terms and conditions). Any
        coinsurance requirement in the policy shall be eliminated through the attachment
        of an agreed amount endorsement, the activation of an agreed value option,
        or as
        is otherwise appropriate under the particular policy form. Any deductible,
        or
        self-insured retention, applicable to the aforementioned insurance shall
        be
        approved by LANDLORD, such approval not to be unreasonably withheld or delayed.
        Landlord shall be included as a Loss Payee and such insurance shall provide
        that
        proceeds for damage or destruction to Leased Premises payable thereunder
        shall
        be payable to the Landlord and the Tenant as their respective interest may
        appear.

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      

      20.2 LANDLORD
        shall maintain or cause to be maintained in full force during the LEASE hereof
        at its sole cost and expense the following types and amounts of
        insurance:

      

      (a) Commercial
        General Liability, and if necessary, Commercial Umbrella Insurance with a
        combined limit of not less than two million dollars ($2,000,000) for bodily
        injury and property damage, to include liability assumed under an insured
        contract.

      

      (b) Automobile
        Liability, and if necessary, Commercial Umbrella Insurance with a limit of
        not
        less than one million dollars ($1,000,000) each accident, to cover owned,
        hired
        and non-owned vehicles.

      

      (c) Commercial
        Property Insurance covering the full replacement value of the COMMERCIALIZATION
        CENTER as built-up from time to time, excluding TENANT IMPROVEMENTS and any
        alterations, fixtures or personal property installed by TENANT or tenants.
        Commercial Property Insurance shall, at a minimum, cover the perils insured
        under the ISO special causes of loss form CP 10 30 00 (or a substitute providing
        similar terms and conditions). Such insurance shall carry a maximum deductible
        of $200,000.00, as amended from time to time by agreement between LANDLORD
        and
        tenants. The TENANT’S prorata share of the deductible under such insurance
        policy for any claims involving the LEASED PREMISES shall be paid as ADDITIONAL
        RENT pursuant to “ARTICLE 6 - ADDITIONAL RENT”.

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      

      (d) 
        Pollution Legal Liability covering losses which may arise from the CENTRE
        of not
        less than five million dollars ($5,000,000) policy aggregate, inclusive of
        legal
        and clean-up costs. A deductible of not more than $100,000 will be applied
        to
        each incident, inclusive of legal and clean-up costs. Coverage shall include
        Bodily Injury and Property Damage resulting from either On-Site or Off-Site
        Pollution Conditions as defined by the policy contract. 

      

      20.3
        TENANT and LANDLORD hereby waive any recovery of damages and rights against
        each
        other (including their employees, directors, officers, agents or
        representatives) for loss or damage to the CENTRE, LEASED PREMISES, BUILDING,
        TENANT IMPROVEMENTS and betterments, fixtures, equipment, and any other personal
        property to the extent covered by the commercial property insurance or boiler
        and machinery insurance required above. TENANT waives all rights against
        the
        Landlord and its agents for recovery of damages to the extent these damages
        are
        covered by the Commercial General Liability, Automobile Liability or Commercial
        Umbrella Liability insurance maintained by TENANT. If the policies of insurance
        purchased by TENANT as required above do not expressly allow the insured
        to
        waive rights of subrogation prior to loss, the insured shall cause them to
        be
        endorsed with a waiver of subrogation as required above. 

      

      20.4 All
        insurance policies required hereunder shall be issued by an insurance company
        or
        companies authorized to do business in the State of New Jersey with a current
        A.M. Best’s rating of no less than A-, VI. 

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      20.5 By
        the
        COMMENCEMENT DATE and upon each renewal of its insurance policies, TENANT
        shall
        furnish to Landlord a certificate of insurance , executed by a duly authorized
        representative of each insurer, evidencing compliance with the insurance
        requirements set forth herein. All certificates shall provide for thirty
        (30)
        days written notice to the Landlord prior to cancellation and/or material
        change
        of any insurance required hereby. The words “endeavor to” and “but failure to
        mail such notice shall impose no obligation or liability on any kind upon
        the
        company, its agents or representatives” shall be deleted from the certificate
        form’s cancellation provision. Failure of Landlord to demand such certificate
        or
        other evidence of full compliance with these insurance requirements or failure
        of Landlord to identify a deficiency from evidence that is provided shall
        not be
        construed as a waiver to TENANT’S obligation to maintain such insurance. Failure
        to maintain the required insurance may result in termination of this lease
        at
        Landlord’s option. TENANT shall provide certified copies of all insurance
        policies required within ten (10) days of Landlord’s written request for such
        policies. If TENANT fails to provide the required evidence of insurance within
        thirty (30) days after notice of demand, Landlord shall the right, but not
        the
        obligation, to purchase said insurance at TENANT’s expense, and in connection
        therewith, including without limitation, Landlord’s reasonable attorneys fees,
        on demand as RENT. By requiring insurance herein, Landlord does not represent
        that coverage and limits will necessarily be adequate to protect TENANT,
        and
        such coverage and limits shall not be deemed as a limitation on TENANT’s
        liability under the indemnities granted to Landlord in this LEASE.

      

      20.6 Each
        party hereby agrees to review the amounts of coverage required under this
        LEASE
        from time to time, but in no event more frequently than every five (5) years,
        and the parties shall, in good faith, agree upon any reasonable changes in
        amounts of coverage required of each party by this LEASE. TENANT shall also
        provide such additional types of insurance in such amounts as Landlord shall
        from time to time reasonably require.

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      

      21. ENVIRONMENTAL

      

      21.1 TENANT
        represents, warrants and covenants that, during the TERM (a) it shall at
        all
        times comply and shall cause the LEASED PREMISES to comply materially with
        all
“ENVIRONMENTAL LAWS” (as hereinafter defined), except if caused by NON-TENANT
        CONTAMINATION (as hereinafter defined), (b) it will keep the LEASED PREMISES
        free of any lien imposed pursuant to any ENVIRONMENTAL LAWS other than any
        lien
        imposed by reason of actual or threatened contamination by HAZARDOUS SUBSTANCES
        on or migrating towards the LEASED PREMISES prior to the COMMENCEMENT DATE
        or
        due to acts or omissions of LANDLORD, (or its employees, agents,
        representatives, invitees, licensees, customers or contractors), of tenants
        or
        others occupying the LEASED PREMISES prior to the TERM hereof, of owners
        or
        tenants of neighboring properties, of other identified third parties, or
        of
        forces of nature (such as natural emission of radon gas) (collectively, the
        “NON-TENANT CONTAMINATION”), and (c) it has, to the best of its knowledge,
        truthfully answered all of the questions on the Commercialization Center
        -
        Tenant Questionnaire and will abide by the LANDLORD’s environmental and
        operational standards as updated from time-to-time.

      

      21.2 TENANT
        warrants that it will promptly deliver to the LANDLORD copies of all permits,
        licenses, and
        notices of violation submitted by the TENANT to, or received from, any federal,
        state, county or municipal environmental agency, including without limitation
        the United States Environmental Protection Agency and the New Jersey Department
        of Environmental Protection. Upon the request of LANDLORD, TENANT shall provide
        LANDLORD with reasonably available evidence of TENANT’s compliance with
        ENVIRONMENTAL LAWS.

       

      
        21.3 In
          addition to TENANT’s obligations under Section
          21.1, to
          the
          extent applicable, TENANT shall, at TENANT’s own expense, comply with the
          reporting requirements of the Emergency Planning and Community Right to
          Know
          Act, 42 U.S.C. §II00I et
          seq.
          and the
          Toxic Catastrophe Prevention Act, N.J.S.A. 13: 1K-19 et
          seq.

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      21.4 At
        the
        expiration or earlier termination of this LEASE, TENANT shall surrender the
        LEASED PREMISES to LANDLORD free of any and all HAZARDOUS SUBSTANCES, and
        in
        compliance with all ENVIRONMENTAL LAWS, excepting, however, any such presence
        of
        HAZARDOUS SUBSTANCES or any such noncompliance with ENVIRONMENTAL LAWS due
        to
        the NON-TENANT CONTAMINATION.

      

      21.5 Subject
        to the provisions of this Section
        21,
        and
        subject to the TENANT not posing any unreasonable risk of harm to the BUILDING,
        CENTRE, or people, TENANT shall be entitled to use and store on the LEASED
        PREMISES the HAZARDOUS SUBSTANCES that are necessary for TENANT’S business
        provided that they shall be stored in “de minimus” quantities (as defined under
        ISRA) and further provided that such usage and storage, and TENANT’s disposal of
        all waste resulting therefrom, are in full compliance with all applicable
        ENVIRONMENTAL LAWS.

       

      21.6 LANDLORD
        shall have the right but not the obligation, at all times during the LEASE
        TERM
        to (a) inspect the LEASED PREMISES, (b) conduct investigations and take samples
        to determine whether TENANT is in compliance with the provisions of Section
        21,
        and (c)
        request lists of all HAZARDOUS SUBSTANCES used, stored or located on the
        LEASED
        PREMISES, the reasonable costs of all such investigations, tests and inspections
        to be borne by TENANT and reimbursed to LANDLORD, as ADDITIONAL RENT on demand
        if LANDLORD has reasonable cause to believe that TENANT is in violation of
        this
Section
        21,.

       

      
        21.7 Violations
          - Environmental Defaults.

        

        (a) TENANT
          shall give to LANDLORD immediate verbal and follow-up written notice of
          any
          actual, threatened or suspected spills, releases or discharges of HAZARDOUS
          SUBSTANCES on the LEASED PREMISES caused by the acts or omissions of TENANT
          or
          its agents, employees, representatives, invitees, licensees, subtenants,
          customers or contractors. TENANT covenants to promptly investigate, clean
          up and
          otherwise remediate any spill, release or discharge of HAZARDOUS SUBSTANCES
          caused by the acts or omissions of TENANT or its agents, employees,
          representatives, invitees, licensees, subtenants, customers or contractors
          at
          TENANT’S sole cost and expense; such investigation, clean up and remediation to
          be performed in accordance with all applicable ENVIRONMENTAL LAWS and to
          the
          reasonable satisfaction of LANDLORD and after TENANT has obtained LANDLORD’S
          written consent, which shall not be unreasonably withheld or delayed. TENANT
          shall return the LEASED PREMISES to the condition existing prior to the
          introduction of any such HAZARDOUS SUBSTANCES.

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      (b) In
        the
        event of (1) a violation at the LEASED PREMISES of any ENVIRONMENTAL LAW,
        (2) a
        release, spill or discharge of a HAZARDOUS SUBSTANCE on or from the LEASED
        PREMISES, (3) the discovery of an environmental condition at the LEASED
        PREMISES, or (4) TENANT’s failure to provide all information, submissions or
        take all actions of any kind required by ISRA or requested by NJDEP which
        violation, release, spill, discharge, environmental condition or failure
        to
        cooperate is caused by the acts or omissions of TENANT, its agents, employees,
        representatives, invitees, licensees, subtenants, customers or contractors
        at
        any time from and after the COMMENCEMENT DATE (together “ENVIRONMENTAL
        DEFAULT”), LANDLORD shall have the right, but not the obligation, to immediately
        enter the LEASED PREMISES to supervise and/or approve any actions required
        to be
        taken by TENANT to address the ENVIRONMENTAL DEFAULT. If the LANDLORD reasonably
        determines that TENANT’S reaction to address any ENVIRONMENTAL DEFAULT is
        insufficient to comply with any ENVIRONMENTAL LAW, then LANDLORD may perform
        any
        lawful and reasonable actions necessary to address the ENVIRONMENTAL DEFAULT,
        the cost of which, shall be charged to TENANT as ADDITIONAL RENT. Except
        for
        emergency situations, LANDLORD shall provide TENANT five (5) days prior written
        notice of LANDLORD’s intended actions to address the ENVIRONMENTAL
        DEFAULT.

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      21.8 TENANT
        shall indemnify, defend (with counsel reasonably approved by LANDLORD) and
        hold
        LANDLORD, New Jersey Institute of Technology and their respective affiliates,
        shareholders, directors, officers, employees and agents harmless of, from
        and
        against any and all claims, judgments, damages (including consequential
        damages), penalties, fines, liabilities, losses, suits, administrative
        proceedings, costs and expenses of any kind or nature, known or unknown,
        contingent or otherwise, which arise out the occurrence of any ENVIRONMENTAL
        DEFAULT (including, but not limited to, reasonable attorneys’, consultant,
        laboratory and expert fees) as set forth in Section 21.7.

       

      21.9 ISRA
        Compliance.

      

      (a) To
        the
        extent that ISRA is applicable to TENANT, TENANT shall, at TENANT’S own expense,
        comply with ISRA. At no expense to LANDLORD, TENANT shall promptly provide
        all
        information available to TENANT and required by LANDLORD for preparation
        of
        non-applicability affidavits and shall promptly sign such affidavits when
        requested by LANDLORD. 

      

      (b) In
        the
        event ISRA is applicable, for any reason, TENANT shall, prior to vacating
        the
        LEASED PREMISES, comply in full with any requirements imposed by
        ISRA.

      

      21.10 Definitions.

       

      
        (a) “HAZARDOUS
          SUBSTANCES” means (1) asbestos and any asbestos containing material and any
          substance that is then defined or listed in, or otherwise classified pursuant
          to, any ENVIRONMENTAL LAWS or any applicable laws or regulations as a “hazardous
          substance”, “hazardous material”, “hazardous waste”, “infectious waste”, “toxic
          substance”, “toxic pollutant” or any other formulation in such ENVIRONMENTAL
          LAWS intended to define, list or classify substances by reason of deleterious
          properties such as ignitability, corrosivity, reactivity, carcinogenicity,
          toxicity, reproductive toxicity or Toxicity Characteristic Leaching Procedure
          (TCLP) toxicity, (2) any petroleum and drilling fluids, produced waters,
          and
          other wastes associated with the exploration, development or production
          of crude
          oil, natural gas, or geothermal resources and (3) petroleum products and
          by
          products, polychlorinated biphenyl, urea formaldehyde, radon gas, radioactive
          material (including any source, special nuclear, or by-product material),
          and
          medical waste.

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

      (b) “ENVIRONMENTAL
        LAWS” collectively means and includes all present and future federal, state and
        local laws, regulations, orders and official decisions and any amendments
        thereto (whether common law, statute, rule, order, regulation or otherwise),
        permits, and other requirements or guidelines (having the force and effect
        of
        law) of governmental authorities applicable to the LEASED PREMISES and relating
        to the environment and environmental conditions or to any HAZARDOUS SUBSTANCE
        or
        HAZARDOUS SUBSTANCE activity and any law requiring the filing of reports
        and
        notices relating to hazardous substances, environmental laws administered
        by the
        Environmental Protection Agency, NJDEP or any local governmental
        authority.

       

      (c) “ISRA”
        means the New Jersey Industrial Site Recovery Act (N.J.S.A.
        13:1k-5,
et seq.).

      

      (d) “NJDEP”
        means the New Jersey Department of Environmental Protection or its successor
        authority of agency.

       

      21.11
        Disposal
        and Removal of Solid Wastes.
        

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      

      (a) TENANT
        shall, at its sole cost, contract with a reputable, private refuse removal
        company approved by LANDLORD in writing in advance for the removal and disposal
        of any solid waste (other than solid wastes lawfully discharged through the
        Municipality’s sewer system or conventional waste haulers) generated or
        introduced by TENANT from the LEASED PREMISES, in accordance with all
        Environmental Laws. LANDLORD’s approval shall not be unreasonably withheld or
        delayed.

      

      (b)
         TENANT
        shall not dispose of any HAZARDOUS SUBSTANCES or radioactive materials through
        the sewer system or the dumpster provided by LANDLORD.

      

      (c)
         TENANT
        shall store and dispose of all biological waste in accordance with ENVIRONMENTAL
        LAWS. 

      

      21.12
        Remedies.
        

      

      The
        parties recognize that no adequate remedy at law may exist for a breach of
        this
Section
        21.
        Accordingly, either party may obtain specific performance of any provisions
        of
        this Section
        21.
        This
Section
        21
        shall
        not be construed to limit any remedies which either party may have against
        the
        other at law or in equity for a breach of this Section
        21.
        It is
        agreed that a number of immaterial breaches of this Section
        21
        occurring over time and with some regularity may, cumulatively, reasonably
        be
        deemed to constitute a material breach. LANDLORD shall inform TENANT in writing
        if LANDLORD believes that a number of immaterial breaches have occurred which
        could in the foreseeable future amount to a material breach.

      

      21.13.
        The provisions of this Section
        21
        shall
        survive the end of the TERM and the termination of this LEASE. No subsequent
        modification or termination of this LEASE by agreement of the parties or
        otherwise, shall be construed to waive or to modify any provisions of this
        Section
        21
        unless
        the termination or modification agreement or other document expressly so
        states
        in writing.

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      

      21.14.
        During the LEASE, LANDLORD or its agent shall be permitted to enter the LEASED
        PREMISES during reasonable business hours for the purpose of performing an
        environmental audit. LANDLORD shall use reasonable efforts to minimize
        LANDLORD’s interference with TENANT’s operations during such environmental
        audits.

      

      22. HOLDING
        OVER

      

      Should
        TENANT remain in possession of the LEASED PREMISES, or part thereof, after
        the
        expiration of the LEASE TERM without the execution of a new lease by LANDLORD
        and TENANT, or the exercise of a renewal option by TENANT, TENANT shall become
        a
        tenant from month-to-month of the LEASED PREMISES, or part thereof, under
        all
        the terms, conditions, provisions and obligations of this LEASE but with
        a RENT
        equal to Two hundred percent (200%) of the RENT existing immediately prior
        to
        the holdover and such month-to-month tenancy may be terminated by either
        LANDLORD or TENANT as of the end of any calendar month upon thirty (30) days
        prior written notice.

      

      23. NO
        CONSEQUENTIAL DAMAGE

       

      In
        no
        event shall LANDLORD be liable to TENANT for any incidental, indirect, special
        or consequential damages, whether based upon contract, negligence, tort or
        other
        theory of law.

      

      24. SIGNAGE

      

      LANDLORD
        shall identify Rosetta Genomics, Inc. as a TENANT on appropriate internal
        signs
        now existing or contemplated for the CENTRE such that each is able to receive
        mail and package delivery at the CENTRE.

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      

      25. FORCE
        MAJEURE

      

      Any
        delays or failure by either party in its performance hereunder (excepting
        however, with respect to the obligation to pay money hereunder) shall be
        excused
        if, and to the extent caused by decrees, or restraint of Government, Acts
        of
        God, strikes, labor “holidays” or coercive action of workmen, fire, flood,
        windstorm, explosion, riots, war, sabotage, freight embargoes, or any other
        causes beyond the reasonable control of the affected party (each, a “FORCE
        MAJEURE”), provided that the affected party has provided reasonable notice to
        the other party and makes reasonable efforts to overcome the FORCE MAJEURE.
        

      

      26. REAL
        ESTATE BROKERS

      

      Tenant
        acknowledges that they have not been represented by a real estate
        broker.

      

      27. RIGHT
        OF ENTRY

      

      LANDLORD
        shall have the right to enter the LEASED PREMISES, upon reasonable prior
        notice,
        to show the LEASED PREMISES to existing or prospective lenders, prospective
        tenants or prospective purchasers.

      

      28. STATUTORY
        AUTHORITY

      

      This
        LEASE is entered into pursuant to the provisions of the New Jersey Economic
        Development Authority Act, N.J.S.A. 34:1 B I et
        seq.

      

      29. LIABILITY
        OF THE STATE OF NEW JERSEY

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      

    

    This
      LEASE is not an obligation of the State of New Jersey or any political
      subdivision thereof nor shall the State or any political subdivision thereof
      be
      liable for any of the obligations under this LEASE. Nothing contained in this
      LEASE shall be deemed to pledge the general credit or taxing power of the state
      or any political subdivision thereof. 

    

    30. ACCESS

    

    TENANT,
      its employees, agents, and invitees shall have access to the LEASED PREMISES
      twenty-four (24) hours per day, seven (7) days per week. Pursuant to Section
      6.3
      (b) access to the LEASED PREMISES other than during the normal hours of 7 AM
      to
      7 PM Monday through Friday may result in addition charges to
      TENANT.

    

    31. SUBLEASING
      AND ASSIGNMENT

     

    (a) TENANT
      shall not assign this LEASE or sublet the whole or any part of the LEASED
      PREMISES without the prior written consent, which consent may be withheld at
      the
      sole discretion of the LANDLORD,. 

    

    (b) Any
      assignment of this LEASE or any sublease of the LEASED PREMISES shall not
      relieve TENANT of any of its obligations under this LEASE.

    

    32. QUIET
      ENJOYMENT, SUBORDINATION, ESTOPPEL

    

    32.1 LANDLORD
      covenants that as long as there is no EVENT OF DEFAULT hereunder, TENANT shall
      peaceably and quietly have hold and enjoy the LEASED PREMISES for the TERM
      of
      this LEASE.

    

    32.2 In
      the
      event that LANDLORD seeks to mortgage its interest in the COMMERCIALIZATION
      CENTER, TENANT shall subordinate its interest under this LEASE in accordance
      with the terms and conditions of a commercially reasonable subordination,
      non-disturbance and attornment agreement by entering into such agreement with
      such mortgagee promptly upon receipt of written request therefor by
      LANDLORD.

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    32.3 
      TENANT
      shall, from time to time, within ten (10) business days after receiving written
      request by LANDLORD, execute and deliver to the other party a written statement
      certifying:

    

    (a) the
      accuracy of the LEASE,

    

    (b) the
      COMMENCEMENT DATE and TERMINATION DATE of the LEASE,

    

    (c) that
      the
      LEASE is unmodified and in full force and effect or in full force and effect
      as
      modified, stating the date and nature of the modification,

    

    (d) whether,
      to TENANT’s knowledge, TENANT is in default or has any claims or demands against
      LANDLORD and, if so, specifying the default, claim or demand, and

    

    (e) to
      other
      correct and reasonably ascertainable facts that are covered by the LEASE
      terms.

    

    33. NOTICES

    

    Unless
      a
      LEASE provision expressly authorizes verbal notice, all notices under this
      LEASE
      shall be in writing and sent by registered or certified mail, postage prepaid,
      as follows:

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

    
      	
              To
                TENANT:

               

            	 	
              Rosetta
                Genomics, Inc. 

              Amir
                Avniel

              23
                Franklin Street

              Tenafly,
                NJ 07670

            

    

    

    
      	
              To
                LANDLORD:

            	 	
              Director
                of Real Estate Development

              New
                Jersey Economic Development Authority

              PO
                Box 990

              Trenton,
                NJ 08625-0990

            

    

    

    with
      a
      copy addressed and sent to:

    

    
      	 	 	
              New
                Jersey Division of Law,

              Treasury
                Section

              Hughes
                Justice Complex

              PO
                Box 106

              Trenton,
                NJ 08625

              Attn:
                Edward Pillsbury, DAG

            

    

    

    Either
      party may change these persons or addresses by giving notice as provided above.
      TENANT shall also give required notices to LANDLORD’S mortgagee after receiving
      notice from LANDLORD of the mortgagee’s name and address. Notice shall be
      considered given and received on the latest original delivery or attempted
      delivery date as indicated on the postage receipt(s) of all persons and
      addresses to which notice is to be given.

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    34. PARTIAL
      INVALIDITY

    

    If
      any
      LEASE provision is invalid or unenforceable to any extent, then that provision
      and the remainder of this LEASE shall continue in effect and be enforceable
      to
      the fullest extent permitted by law.   

    

    35. BINDING
      ON SUCCESSORS

    

    This
      LEASE shall bind the parties’ heirs, successors, and permitted
      assigns.

    

    36. GOVERNING
      LAW

    

    This
      LEASE shall be governed by the laws of the State of New Jersey.

    

    37. DAYS

    

    Unless
      expressly stated to the contrary, all references to “days” herein shall mean
      consecutive calendar days.

    

    38. ENTIRE
      AGREEMENT

    

    This
      LEASE contains the entire agreement between the parties about the LEASED
      PREMISES. Except for the RULES, for which Section
      12
      controls, this LEASE shall be modified only by a writing signed by both
      parties.

    

    39. TENANT
      REPRESENTATION

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    TENANT
      is
      not (1) a party in interest, as defined in Section 3(14) of the Employee
      Retirement Income Security Act of 1974, as amended, to the AFL-CIO Building
      Investment Trust (“BIT”), or any of the plans participating therein, a list of
      which is attached hereto as Exhibit
      H,
      or (2)
      a disqualified person under Section 4975(e)(2) of the Internal Revenue Code
      of
      1986, as amended, with respect to BIT, or any of the plans participating
      therein.

    

    40. SECURITY
      DEPOSIT

     

    40.1 Within
      five (5) business days following TENANT's execution of this Lease, the TENANT
      shall deposit with LANDLORD a security deposit in the amount of $5,000.00
      (“SECURITY DEPOSIT”) in cash funds (paid by either certified funds, cashiers
      check or wire transfer). If an EVENT OF DEFAULT by TENANT exists under this
      LEASE at any time, LANDLORD may use, apply or retain the whole or any part
      of
      the SECURITY DEPOSIT to the extent necessary to cure said EVENT OF DEFAULT.
      It
      is understood that the deposit is not to be considered as the last rental
      payment due under this LEASE. If at any time during the term of this LEASE,
      LANDLORD applies all or a portion of this SECURITY DEPOSIT to cure TENANT's
      EVENT OF DEFAULT, TENANT shall repay to LANDLORD within ten (10) business days
      after demand by LANDLORD any amount necessary to restore the SECURITY DEPOSIT
      to
      the full sum set forth above. 

     

    41. POLITICAL
      CAMPAIGN CONTRIBUTIONS

    

    41.1 For
      the
      purpose of this Article
      41,
      the
      following shall be defined as follows:

     

    a)
      Contribution B
      means a
      contribution reportable as a recipient under AThe
      New
      Jersey Campaign Contributions and Expenditures Reporting Act.@
      P.L.
      1973, c. 83 (C.10:44A-1 et seq.), and implementing regulations set forth at
      N.J.A.C. 19:25-7 and N.J.A.C. 19:25-10.1 et seq. Currently, contributions in
      excess of $400 during a reporting period are deemed Areportable@
      under
      these laws. As of January 1, 2005, that threshold will be reduced to
      contributions in excess of $300.

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    b)
      Business Entity B
      means
      any natural or legal person, business corporation, professional services
      corporation, limited liability company, partnership, limited partnership,
      business trust, association or any other legal commercial entity organized
      under
      the laws of New Jersey or any other state or foreign jurisdiction. It also
      includes (i) all principals who own or control more than 10 percent of the
      profits or assets of a business entity or 10 percent of the stock in the case
      of
      a business entity that is a corporation for profit, as appropriate; (ii) any
      subsidiaries directly or indirectly controlled by the business entity; (iii)
      any
      political organization organized under 26 U.S.C.A. 527 that is directly or
      indirectly controlled by the business entity, other than a candidate committee,
      election fund, or political party committee; and (iv) if a business entity
      is a
      natural person, that person=s
      spouse
      or child, residing in the same household. 

    

    c) EO
      134 –
      means Executive Order 134, signed by former New Jersey Governor James E.
      McGreevey on September 22, 2004.

    

    41.2 The
      terms, restrictions, requirements and prohibitions set forth in EO 134 are
      incorporated into this LEASE by reference as material terms of this LEASE with
      the same force and effect as if EO 134 were stated herein its entirety.
      Compliance with EO 134 by TENANT shall be a material term of this
      LEASE.

    

    41.3 In
      addition to any other Event of Default specified in this LEASE, LANDLORD shall
      have the right, but not the obligation, to declare an event of default under
      this LEASE if: (i) TENANT makes or solicits a Contribution in violation of
      EO
      134, (ii) TENANT knowingly conceals or misrepresents a Contribution given or
      received; (iii) TENANT makes or solicits Contributions through intermediaries
      for the purpose of concealing or misrepresenting the source of the Contribution;
      (iv) TENANT makes or solicits any Contribution on the condition or with the
      agreement that it will be contributed to a campaign committee or any candidate
      or holder of the public office of Governor, or to any State or county party
      committee; (v) TENANT engages or employs a lobbyist or consultant with the
      intent or understanding that such lobbyist or consultant would make or solicit
      any Contribution, which if made or solicited by LANDLORD or any LANDLORD member
      that constitutes a Business Entity itself, would violate the restrictions of
      EO
      134; (vi) TENANT funds Contributions made by third parties, including
      consultants, attorneys, family members, and employees; (vii) TENANT engages
      in
      any exchange of Contributions to circumvent the intent of EO 134; (viii) TENANT
      directly or indirectly through or by any other person or means, does any act
      which would violate the restrictions of EO 134; or (ix) any material
      misrepresentation exists in any Executive Order Certification and Disclosure
      which was delivered by TENANT to LANDLORD in connection with this
      LEASE. 

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    41.4 TENANT
      hereby acknowledges and agrees that pursuant to EO 134, TENANT shall have a
      continuing obligation to report to the Office of the State Treasurer, EO 134
      Review Unit of any Contributions it makes during the TERM of this LEASE. If
      after the COMMENCEMENT DATE, any Contribution is made by TENANT and the
      Treasurer of the State of New Jersey determines such Contribution to be a
      conflict of interest in violation of EO 134, LANDLORD shall have the right,
      but
      not the obligation, to declare this LEASE to be in default.

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

    42. BUSINESS
      EMPLOYMENT INCENTIVE PROGRAM (BEIP) CONTINGENCY

    

    TENANT
      has the option to cancel this LEASE if it does not receive approval of its
      BEIP
      application by the NJEDA Board at its next regularly scheduled
      meeting.

    

    IN
      WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto
      have caused this LEASE to be executed by their duly authorized representatives
      as of the day and year first above written.

    
 

    
      	 	 	
              NEW
                JERSEY ECONOMIC DEVELOPMENT AUTHORITY,
                LANDLORD

            
	 	 	 
	
              WITNESS

            	 	
              SIGNATURE

               

              NAME:

               

              TITLE:

               

              Rosetta
                Genomics, Inc. TENANT

            

    

    

    
      	 	 	 
	
              WITNESS

            	 	
              SIGNATURE

               

              NAME:

               

              TITLE:

            

    

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    LEASED
      PREMISES

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B
      Milestone Rent

    Milestone
      Events

     

    
      	
              Graduation
                from Commercialization Center*

            	 	
              Milestone
                Rent

            
	 	 	
              Percentage

            
	
              Move
                to a Targeted NJ Municipality

            	 	
              0%

            
	
              Move
                to a Non-Targeted NJ Municipality

            	 	
              50%

            

    

    

    
      	 	 	
              Move
                Out of State

            
	 	 	
              100%

            
	
              Capital
                raising

            	 	
              Milestone
                Rent

            
	 	 	
              Percentage

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    
      	
              Venture
                Capital or Private equity raise greater than $1 MM but less than
                $5
                million:

            	 	 	
              25

            	
              %

            
	
              Venture
                Capital or Private equity raise of $5.0 million or more:

            	 	 	
              50

            	
              %

            
	
              Public
                offering

            	 	 	
              100

            	
              %

            

    

    

    Tenant’s
      obligation to pay Milestone Rent shall accrue on the earlier occurrence of
      the
      two identified Milestone events. Milestone Rent is a one-time obligation of
      TENANT, such that, once TENANT reaches its first Milestone and TENANT pays
      to
      LANDLORD the appropriate Milestone Rent, TENANT has no further Milestone Rent
      obligations even on the occurrence of other Milestone Events. Upon LANDLORD’s
      receipt of TENANT’s Milestone Rent, LANDLORD will confirm to TENANT in writing
      that no further Milestone Rent has to be paid by TENANT. The Milestone Rent
      obligation shall survive for twenty-four months following the Termination
      Date.

     

    Milestone
      Rent Calculation

     

    The
      basis
      for calculating the Milestone Rent will be $10,000 per unit for each year of
      the
      lease, including any extensions, renewals or taking of additional space. The
      Milestone Rent will be prorated based on months actual occupied in cases of
      this
      LEASE being terminated at or before the time of making the Milestone Rent
      payment.

     

    *
      Graduation from the Commercialization Center is defined as a relocation from
      the
      Commercialization Center in to another facility which is at least twice a large
      as TENANT’s LEASED PREMISES.

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      C

    OMITTED

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    PARKING
      AREA

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      E

    

    NONE

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

     

    Commercialization
      Center- Tenant Questionnaire

    

    The
      following questionnaire was developed as a tool for the New Jersey Economic
      Development Authority (NJEDA) and the applicant. The answers to the questions
      that follow will assist NJEDA to better understand the work that your company
      is
      planning to perform at the Commercialization Center. The NJEDA understands
      that
      some questions will not be possible to answer in appropriate detail at an early
      stage in a company’s development. The information provided in each section
      should in turn help the applicant understand the NJEDA’s requirements for
      tenancy in the Commercialization Center. 

    Please
      answer each question with as much detail as possible. If additional space is
      required or if a more thorough explanation of your company’s operations is
      appropriate, please attach additional pages as necessary.

     

    1.
      Flammable, Combustible and Reactive Materials Usage

     

    Flammable
      and combustible liquids are classified according to their flash points. A Class
      I liquid is defined in NFPA-30 as any liquid with a flash point below 37.8°C
      (100°F)
      and a vapor pressure not exceeding 40 psi. Combustible liquids are defined
      as:

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    
      	  	
              Class
                II having flash points at or above 37.8°C
                (100°F),
                and below 60°C
                (140°F).

            

    

    
      	
               

                

            	
              Class
                IIIA having flash points at or above 60°C
                (140°F)
                and below 93°C
                (200°F).

            

    

    

    Please
      list the maximum anticipated quantities of Class I liquids that will be stored
      and used in your laboratory at any one time. (The maximum permissible amounts
      of
      chemical materials per laboratory are provided as Attachment 1.) Include volumes
      of flammable liquefied compressed gases:

    

    
      	
              Class
                I liquids in use or not in approved safety cans or storage
                cabinets:

            	 	
              _________
                gal.

            
	
               

              Class
                I liquids stored in approved safety cans or storage
                cabinets:

            	 	
              _________
                gal.

            

    

    

    Please
      list the maximum anticipated quantities of Class II and IIIA liquids that will
      be stored and used in your laboratory at any one time: 

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    

    
      	
              Class
                I liquids in use or not in approved safety cans or storage
                cabinets:

            	 	
              _________
                gal.

            
	
               

              Class
                I liquids stored in approved safety cans or storage
                cabinets:

            	 	
               

              _________
                gal.

            

    

    

    Do
      you
      anticipate using reactive materials (water reactive, 

    pyrophoric,
      gas generating or explosive) in your laboratory? YesGNo
      G

     

    If
      yes,
      please list the materials anticipated to be used and their
      quantities:

    

    
      	 
	 
	 
	 

    

    2.
      High Toxicity Chemical Use

     

    
      Highly
        toxic chemicals are defined as having an LD50 of less than 50 mg/kg. Do you
        anticipate using any highly toxic chemicals in your laboratory? Examples
        include
        sodium cyanide, potassium cyanide and sodium azide. YesG

    

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    If
      yes,
      please list the materials that you plan to use and the quantities that you
      will
      have on hand:

    

    
      	 
	 
	 
	 

    

    

    3.
      Compressed Gas and Cryogenics Use and Storage

     

    Please
      identify the types and quantities of compressed gases that you plan to use
      in
      your laboratory, including compressed liquefied gases. Use the table below
      to
      identify gas cylinder type and size code:

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    

      
        	
                
                  Cyl.
                    Size

                  Code1

                

              	
                Dimensions,

                Dia.
                  x Length, in.

              	
                Internal
                  Volume

                Liters
                  Cu. In.

              	
                Service
                  Pressure

                PSIG

              
	
                5

              	
                12x49
                  (acetylene)

              	
                71.75

              	
                4375

              	
                250

              
	
                4

              	
                8x41
                  (acetylene)

              	
                24.9

              	
                1516

              	
                250

              
	
                3

              	
                7x31
                  (acetylene)

              	
                13.4

              	
                819

              	
                250

              
	
                425

              	
                14.5x49
                  (LPG)

              	
                110.2

              	
                6616

              	
                240

              
	
                410

              	
                12.2x42.6
                  (LPG)

              	
                65.9

              	
                3958

              	
                240

              
	
                405

              	
                12x24

              	
                33

              	
                1983

              	
                240

              
	
                200

              	
                9x56

              	
                43.5

              	
                2640

              	
                2015-2265

              
	
                80

              	
                7x32

              	
                16

              	
                960

              	
                2015

              
	
                30

              	
                6x24

              	
                8

              	
                490

              	
                2015

              
	
                L.B.

              	
                2x13

              	
                0.44

              	
                27

              	
                1800

              

      

    

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    

    
      	
              Compressed
                Gas Type

            	 	
              Cylinder
                Size 

              Code1

            	 	
              Number
                of Cylinders

            
	 	 	 	 	 
	 	 	 	 	 

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    Will
      this
      laboratory be using pressure vessels or pressurized
      research or process equipment?YesGNoG

     

    List
      below the type and quantity (liters) of cryogenic gases that will be used and/or
      stored in the laboratory at any one time:

    

    
      	
              Cryogenic
                Gas Type

            	 	
              Amount,
                Liters

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    54Hazardous,
      Flammable and Aqueous Waste Handling

    

    The
      NJEDA
      requires that only wash and rinse water be discharged to sink drains at the
      Commercialization Center. All liquid wastes, including water miscible solvents
      (alcohols, acetone, etc.), a licensed Waste Broker must collect halogenated
      solvents and petroleum hydrocarbons in suitable waste containers for disposal.
      Solid chemical wastes must not be disposed of in refuse containers but also
      must
      be collected and disposed of by a licensed Waste Broker. 

    

    The
      common categories of liquid wastes are:

     

    Low
      Flash: Alcohols, ketones and other water-miscible solvents, petroleum
      hydrocarbons and any other liquids that have flash points at or below 140°F.

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    High
      Flash:Solvents, oils and other liquids that have flash points above 140°F.

     

    Halogenated:Solvents
      containing one or more halogen (fluorine, chlorine, bromine and iodine). These
      solvents are usually non-flammable.

     

    Aqueous:Water
      containing dissolved metals or other chemicals or having a pH less than 2 or
      greater than 12.5.

    

    Please
      list the greatest quantities of liquid flammable, hazardous and aqueous wastes
      that are anticipated to be generated by your laboratory over a one-month
      period:

    

    
      	
              Waste
                Category 

              (see
                above)

            	 	
              Amount
                (gallons)

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    Please
      note below the types and amounts (kg) of hazardous solid wastes that are
      anticipated to be discarded by your laboratory during the first year of
      operation:

    

    
      	 
	 
	 
	 

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    Note:
      The NJEDA recommends that when ordering chemicals and solvents, careful
      consideration should be given to your actual immediate needs. Stockpiling
      unwanted chemicals wastes space, creates a safety hazard and increases disposal
      costs. 

    

    55Personal
      Protective Equipment (PPE) Needs

     

    Each
      company will provide PPE for its staff, including safety glasses, goggles,
      shields, lab coats and gloves. Please note below any additional or specialized
      PPE that may be required for work in your laboratory:

    

    
      	 
	 
	 

    

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    

    56Laboratory
      Safety Equipment

     

    Only
      standard laboratory safety equipment, such as fire extinguishers, safety
      showers, and eyewash stations will be provided by the NJEDA. Please list below
      any additional safety equipment that you anticipate will be required for your
      laboratory operations. Such equipment may include specialized fire
      extinguishers, gas monitors, shielding, specialized fume hoods,
      etc.

    

    
      	 
	 
	 
	 

    

     

    57Laboratory
      Environmental Needs

     

    The
      air
      handling system at the Commercialization Center will be balanced so that all
      laboratory spaces will have a slightly negative pressure with respect to
      hallways and other non-laboratory spaces. Please check the appropriate boxes
      below for each of the following special lab environment needs. 

    

    Special
      humidity control?YesGNoG

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    

    Special
      temperature control?YesGNoG

     

    Air
      particulate control (beyond normal lab environment)?YesGNoG

     

    Localized
      positive pressure environment?YesGNoG

     

    Other
      special environment? YesGNoG

     

    If
      yes to
      any of the above, please specify requirements:

    

    
      	 
	 
	 
	 

    

    

    58Radioactive
      Materials Use

    

    Do
      you
      plan to use any radioactive materials in your laboratory?YesGNoG

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    

    If
      no,
      please skip to Section 9.

    

    If
      yes,
      please provide the following information:

    

    
      	
              Radioactive
                Material

            	 	
              Activity
                Level, mCi

            	 	
              Half-Life

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    Do
      you
      have a Radioactive Materials Handling Procedure?YesGNoG

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    

    If
      yes,
      please attach a copy to this document.

    

    Will
      you
      require training for your staff in the safe handling
      of
      radioactive materials?YesGNoG 

    
       

      59Human
        Biosafety Concerns

    

    Does
      your
      laboratory anticipate using materials that present a bloodborne
      pathogen concern or a biosafety concern?YesGNoG

     

    If
      yes,
      please list below any specialized equipment that your laboratory will require,
      such as sterilizers, biological safety cabinets, biohazard waste handling,
      etc.
      None neededG

    

    
      	 
	 
	 
	 

    

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    510Training
      Requirements

     

    Do
      you
      anticipate the need for any of the following training programs that would NOT
      be
      provided by your company staff? Please check all that apply.OSHA laboratory
      standard training (29 CFR 1910.1450)GEmergency
      action plan/fire plan training (29 CFR 1910.38)GRespirator
      training and fit testingGFire
      extinguisher trainingGBloodborne
      pathogens trainingGToxic
      materials handlingGCompressed
      gas handlingGOther,
      specify:_______________________________GWill
      you
      require any of the following specialized staff services and do you anticipate
      that employees of your company will provide these services? Please check all
      that apply.Chemical Hygiene OfficerNeedGEmployeeGRadiological
      Safety OfficerNeedGEmployeeGBiosafety
      OfficerNeedGEmployeeG

    

    511Company
      Smoking Policy

     

    Does
      your
      company have a written smoking policy for its employees during
      workYesGNoG

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    If
      yes,
      please attach a copy to this document.

    

    I
      certify
      that to the best of my knowledge, the information provided in this document
      is
      truthful and complete and that I have not omitted any fact that may adversely
      impact the operations, safety or maintenance of the Commercialization- Tech
      Center 3.

    

    

    Signed:

    _____________________________________________

    

    Company
      OfficerDate

    

    ______________________________
      

    Title

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

    

    RULES
      AND
      REGULATIONS

     

    1.
      The
      entrances, sidewalks, halls, passages, concourses, plaza, elevators, lobbies,
      stairways, and driveways shall not be obstructed by Tenant or used for any
      purpose other than for ingress to and egress from the Leased Premises or the
      Centre. The halls, passages, entrances, elevators, stairways, balconies and
      roof
      are not for the use of the general public, and Landlord shall in all cases
      retain the right to control and prevent access thereto of all persons whose
      presence in the judgment of Landlord shall be prejudicial to the safety,
      character, reputation, or interest of the Centre or its tenants, provided that
      nothing herein contained shall be construed to prevent such access to persons
      with whom Tenant normally deals in the ordinary course of its business unless
      such persons are engaged in illegal activities.

    

    2.
      Tenant, its employees, contractors, agents, servants, visitors, and licensees
      shall not go upon the roof or into mechanical rooms of the Building without
      the
      written consent of Landlord.

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    

    3.
      The
      exterior windows and doors that reflect or admit light or air into the Leased
      Premises or the halls, passageways or other public places in the Centre, shall
      not be covered or obstructed by Tenant. No showcase or other articles shall
      be
      put in front or affixed to any part of the exterior of the Building nor placed
      in the halls, corridors or vestibules, nor shall any article obstruct any
      air-conditioning supply or exhaust.

    

    4.
      No
      awnings, air conditioning units, fans, aerials, antennas, or other projections
      or similar devices shall be attached to the Building, regardless of whether
      inside the Building or on its facade or its roof, without the prior written
      consent of Landlord, not to be unreasonably withheld. No curtains, blinds,
      shades or screens shall be attached to or hung in, or used in connection with,
      any window, transom or door of the Leased Premises or the Building without
      the
      prior written consent of Landlord, not to be unreasonably withheld. All
      curtains, blinds, shades, screens, and other fixtures must be of a quality,
      type, design and color, and attached in the manner approved by Landlord, not
      to
      be unreasonably withheld. All electrical fixtures shall be fluorescent, of
      a
      quality, type, design, and color approved by Landlord, not to be unreasonably
      withheld unless the prior consent of Landlord has been obtained for any other
      lighting or lamping.

    

    5.
      No
      Tenant or employees, contractors, agents, servants, visitors, or licensees
      of
      Tenant shall sweep or throw or permit to be placed, left or discarded from
      the
      Leased Premises any rubbish, paper, articles, objects or other substances into
      any of the corridors or halls, elevators, or out of the doors or stairways
      of
      the Building.

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    

    6.
      Tenant
      shall at all times keep the Leased Premises neat and orderly.

     

    7.
      Any
      Tenant deciding to move any equipment or office furniture into, out of, or
      within the Building must notify Landlord at least one (1) day in advance of
      intended move. Such notification shall include: (i) the date of the move, and
      (ii) the time of move (which shall not be during normal working hours without
      Landlord's consent, not to be unreasonably withheld).

    

    8.
      Tenant
      shall not alter any lock or install a new or additional lock or any bolt or
      other security device on any door of the Leased Premises without prior written
      consent of Landlord, not to be unreasonably withheld. If Landlord shall give
      its
      consent, Tenant shall in each case furnish Landlord with two keys for each
      such
      lock and security device.

    

    9.
      No
      signs, advertisement, notice or other lettering shall be exhibited, inscribed,
      painted or affixed by any Tenant on any part of the outside of the Leased
      Premises or Centre, or on the inside of the Leased Premises without the prior
      written consent of Landlord, not to be unreasonably withheld. In the event
      of
      violation of the foregoing by Tenant, Landlord may remove same without any
      liability, and may charge the reasonable expense incurred by such removal to
      the
      tenant or tenants violating this rule. Interior signs on door and directory
      tablet shall be inscribed, painted or affixed for each tenant by Landlord at
      the
      reasonable expense of such tenant, and shall be of a size, color and style
      reasonably acceptable to Landlord.

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    

    10.
      Landlord shall have the right to prohibit any advertising by Tenant which,
      in
      Landlord's reasonable opinion, tends to impair the reputation of the Centre
      or
      its desirability as a research park, and upon written notice from Landlord,
      Tenant shall refrain from or discontinue such advertising. In no event shall
      Tenant, without the prior written consent of Landlord, not to be unreasonably
      withheld, use the name of the Centre or use pictures or illustrations of the
      Centre in any advertising other than in indicating Tenant's
      address.

    

    11.
      Dock
      facilities are to be used only for loading and unloading procedures. No Centre
      parking or storage privileges are extended in docking facilities.

    

    12.
      Intentionally Omitted.

    

    13.
      No
      dumpsters are to be placed at the loading dock without prior notification and
      approval by Landlord, not to be unreasonably withheld.

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    

    14.
      If
      Tenant desires telecommunications signaling, telephonic, protective alarm,
      connections, or other such wires, apparatus, or devices, Landlord will
      reasonably direct electricians as to where and how the wires are to be
      introduced. No boring or cutting for wires or otherwise shall be made without
      reasonable directions and approval from Landlord, not to be unreasonably
      withheld. All wires must be clearly tagged at the distributing boards and
      junction boxes, and elsewhere as reasonably required by Landlord, with the
      number of the office to which said wires lead, the purpose of the wires, and
      the
      name of the concern, if any, operating or servicing the same.

    

    15.
      The
      electrical, mechanical, and telephone closets, water and wash closets, drinking
      fountains and other plumbing, electrical and mechanical fixtures shall not
      be
      used for any purposes other than those for which they were constructed, and
      no
      sweepings, rubbish, rags, coffee grounds, acids or other substances shall be
      deposited therein, except that, with respect to Tenant’s engaged in research,
      laboratory use of acids shall be permitted subject to the applicable sections
      of
      the Lease relating to the use of Hazardous Substances. No access to the
      electrical, mechanical and telephone closets will be permitted without the
      prior
      consent of Landlord, not to be unreasonably withheld. All damages resulting
      from
      any misuse of the fixtures shall be borne by the Tenant who, or whose servants,
      employees, agents, visitors or licensees, shall have caused the same. No person
      shall waste water by interfering or tampering with the faucets or
      otherwise.

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    

    16.
      Tenant shall not create, execute, or deliver any financing or security agreement
      of any kind that may be considered or give rise to any lien upon the Leased
      Premises, or the Centre.

    

    17.
      Except as otherwise permitted by this Lease, Tenant, any of Tenant's servants,
      employees, contractors, agents, visitors, or licensees, shall not at any time
      use, bring or keep upon the Leased Premises, or the Centre any flammable,
      combustible, caustic, poisonous or explosive fluid, chemical or substance,
      or
      any chemical except such as are components of commercial products not regulated
      by law in their use or disposal and except such as are normally used (a) by
      occupants of office buildings for ordinary cleaning and office related supplies
      in reasonable quantities or (b) in laboratories as permitted by
      law.

    

    18.
      No
      portion of the Leased Premises, or Centre shall be used or occupied at any
      time
      for the sale of merchandise, goods or property of any kind at auction or
      otherwise except as in connection with Tenants business, or as sleeping or
      lodging quarters.

    

    19.
      In
      the design, layout, construction, renovation, and/or installation of Tenant's
      demising walls, partitions, furniture, fixtures, equipment, and all other
      improvements and betterments of or in the Leased Premises, the specified live
      load per square foot (100 p.s.f.) shall not be exceeded at any
      time.

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    

    20.
      Tenant shall not engage or pay any employees on the Leased Premises, except
      those actually working for such Tenant.

     

    21.
      No
      bicycles, vehicles, animals, or birds of any kind (other than a seeing-eye
      dog
      for a blind person) shall be brought into or kept by Tenant in the Leased
      Premises or the Centre except that (a) bicycles and vehicles may be brought
      in
      the Centre, and (b) in the case of laboratories animals and birds permitted
      by
      law in the performance of experiments may be kept, provided that (i) the Tenant
      complies with all applicable laws and Lease provisions relating to the keeping
      of such animals or birds and (ii) they are kept in a manner that they do not
      create a nuisance for other tenants in the Building or the Centre.

    

    22.
      Tenant shall not do or commit, or suffer to be done or committed, any act or
      thing whereby, or in consequence whereof, the rights of other tenants will
      be
      unreasonably obstructed or interfered with, or other tenants will in any other
      way be unreasonably injured or annoyed, or whereby the Building will be damaged,
      nor shall Tenant cause or suffer to be caused any noise, vibrations, obnoxious
      odors, or electronic interference which unreasonably disturbs other tenants,
      the
      operation of their equipment or the operation of any equipment in the Building
      (including, without limitation, radio, television reception). Except as
      otherwise permitted by the Lease, Tenant shall not suffer nor permit the
      Premises or any part thereof to be used in any manner or anything to be done
      therein nor suffer nor permit anything to be brought into or kept in the Leased
      Premises which, in the reasonable judgment of Landlord, shall in any way
      materially impair or tend to materially impair the character, reputation, or
      appearance of the Centre.

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    

    23.
      Tenant shall not serve, nor permit the serving of alcoholic beverages in the
      Leased Premises unless Tenant shall have procured Host Liquor Liability
      Insurance, issued by companies and in amounts reasonably satisfactory to
      Landlord, naming Landlord as an additional party insured.

    

    24.
      Except as otherwise explicitly permitted in this Lease and except for the use
      of
      a microwave oven and vending machines or service of soda & snacks, Tenant
      shall not allow any cooking, the operation or conduct of any restaurant,
      luncheonette or cafeteria for the sale or service of food or beverages to its
      employees or to others, install or permit the installation or use of any food,
      beverage, cigarette, cigar or stamp dispensing machine.

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

     

    25.
      Any
      person in the Centre may be subject to identification by employees and agents
      of
      Landlord. Landlord may institute, as it deems necessary for the safety of Tenant
      and other tenants, security policies with which all persons in or entering
      the
      Centre would be required to comply with. Tenant shall exercise reasonable
      precautions to protect property from theft, loss or damage. Landlord shall
      not
      be responsible for the theft, loss or damage of any property, except if due
      to
      Landlords negligence.

    

    26.
      Intentionally Omitted

    

    27.
      Landlord shall, in no case, be responsible for the admission or exclusion of
      any
      person to or from the Building for access or for invasion, hostile attack,
      insurrection, mob violence, riot, public excitement or other
      commotion.

    

    28.
      Tenant shall as soon as reasonably possible notify Landlord of any injury to
      a
      person or damage to property regardless of cause within the Leased Premises
      and
      all public areas within the Building of which Tenant has
      knowledge.

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    

    29.
      Canvassing, soliciting, and peddling in the Centre is prohibited and Tenant
      shall cooperate in preventing the same, and report all such activity to
      Landlord.

    

    30.
      Tenant, upon the termination of the tenancy, shall deliver to Landlord all
      of
      the keys, combinations to all locks, of offices, rooms and toilet rooms which
      shall have been furnished Tenant or which Tenant shall have made, and in the
      event of loss of any keys so furnished, Tenant shall pay Landlord the reasonable
      cost therefor.

    

    31.
      These
      Rules and Regulations shall be read in conjunction with the Lease and the
      Exhibits thereto. To the extent these Rules and Regulations are inconsistent
      with the remainder of the Lease and Exhibits, the Lease and other Exhibits
      shall
      control.

    

    32.
      Landlord may, by not less than 20 days prior written notice to Tenant,
      promulgate additional rules and regulations, and/or modifications of the rules
      and regulations which are, in Landlord's reasonable judgment, desirable for
      the
      general safety, comfort and convenience of occupants and tenants in the Centre,
      provided such rules and regulations do not discriminate against Tenant. All
      such
      rules and regulations shall be deemed a part of this Lease, with the same effect
      as though written herein.

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    

    33.
      No
      smoking shall be permitted in the Building.

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

    
      
        
        

      

      
        72ISRAELI
      SHARE OPTION PLAN

     

     

      
        

      

    

     

    
       

     

     

    ROSETTA
      GENOMICS LTD.

     

    THE
      2003
      ISRAELI SHARE OPTION
      PLAN

     

    (*In
      compliance with Amendment No. 132 of the Israeli Tax Ordinance,
      2002)

     

     

     

    

    
      
        
          ROSETTA GENOMICS LTD.
-CONFIDENTIAL-        

        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    ISRAELI
      SHARE OPTION PLAN
      
        

      

    TABLE
      OF
      CONTENTS

     

    
      	
              1.

            	
              PURPOSE
                OF THE ISOP

            	
              3

            
	 	 	 
	
              2.
                

            	
              DEFINITIONS

            	
              3

            
	 	 	 
	
              3.

            	
              ADMINISTRATION
                OF THE ISOP

            	
              6

            
	 	 	 
	
              4.
                

            	
              DESIGNATION OF
                PARTICIPANTS

            	
              7

            
	 	 	 
	
              5. 

            	
              DESIGNATION
                OF OPTIONS PURSUANT TO SECTION 102 

            	
              8

            
	 	 	 
	
              6.

            	
              TRUSTEE

            	
              9

            
	 	 	 
	
              7.
                

            	
              SHARES
                RESERVED FOR THE ISOP

            	
              9

            
	 	 	 
	
              8.
                

            	
              PURCHASE
                PRICE

            	
              10

            
	 	 	 
	
              9.
                

            	
              ADJUSTMENTS

            	
              10

            
	 	 	 
	
              10.
                

            	
              TERM
                AND EXERCISE OF
                OPTIONS

            	
              12

            
	 	 	 
	
              11.
                

            	
              VESTING
                OF OPTIONS

            	
              13

            
	 	 	 
	
              12.

            	
              SHARES
                SUBJECT TO RIGHT OF FIRST REFUSAL

            	
              14

            
	 	 	 
	
              13.
                

            	
              DIVIDENDS

            	
              14

            
	 	 	 
	
              14.
                

            	
              RESTRICTIONS
                ON ASSIGNABILITY AND
                SALE OF OPTIONS 

            	
              15

            
	 	 	 
	
              15.
                

            	
              EFFECTIVE
                DATE AND DURATION OF THE ISOP

            	
              15

            
	 	 	 
	
              16.
                

            	
              AMENDMENTS
                OR TERMINATION

            	
              15

            
	 	 	 
	
              17.
                

            	
              GOVERNMENT
                REGULATIONS

            	
              16

            
	 	 	 
	
              18.
                

            	
              CONTINUANCE
                OF EMPLOYMENT

            	
              16

            
	 	 	 
	
              19. 

            	
              GOVERNING
                LAW & JURISDICTION

            	
              16

            
	 	 	 
	
              20.
                

            	
              TAX
                CONSEQUENCES

            	
              16

            
	 	 	 
	
              21.
                

            	
              NON-EXCLUSIVITY
                OF THE ISOP

            	
              16

            
	 	 	 
	
              22.
                

            	
              MULTIPLE
                AGREEMENTS

            	
              17

            

    

     

     

    
      
        
          ROSETTA GENOMICS LTD.
-CONFIDENTIAL-        

        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
       

       

      ISRAELI
        SHARE OPTION PLAN
        
          

        

    

    

    This
      plan, as amended from time to time, shall
      be
      known as Rosetta Genomics Ltd 2003 Israeli Share
      Option
      Plan (the
      "ISOP").

     

    1.    PURPOSE
      OF THE ISOP

     

    The
      ISOP
is
      intended to
      provide an incentive to retain, in
      the
      employ of the Company and its
      Affiliates
      (as
      defined below), persons of
      training, experience, and
      ability, to attract
      new employees,
      directors, consultants, service
      providers
      and
      any
      other entity which the
      Board
      shall decide
      their services are considered
      valuable
      to
      the
      Company, to encourage the sense of proprietorship
      of
      such
      persons, and
      to
      stimulate the
      active interest
      of
      such
      persons in
      the
      development
      and financial success
      of
      the
      Company
      by providing them with
      opportunities
      to purchase
      shares in
      the
      Company, pursuant
      to the ISOP.

     

    2.    DEFINITIONS

     

    For
      purposes of the ISOP and related documents,
      including the Option Agreement, the following definitions shall
      apply:

     

    
      	 	2.1 	"Affiliate"
              means any "employing
              company" within the
              meaning of Section 102(a)
              of the
              Ordinance.

    

    
      	 	 	 

    

    
      	 	
              2.2

            	
              "Approved
                102
                Option"
                means an
                Option granted pursuant to Section 102(b) of the
                Ordinance and held in trust by a Trustee for the benefit of
                the
                Optionee.

            

    

    
      	 	 	 

    

    
      	 	2.3 	"Board"
              means
              the Board of Directors of the Company.

    

    
      	 	 	 

    

    
      	 	2.4	"Capital Gain Option (CGO)" as
              defined in Section 5.4 below.

    

    
      	 	 	 

    

    
      	 	2.5	
              "Cause" means,
                (i)
                conviction of any felony involving moral turpitude
                or
                affecting
                the Company;
                (ii) any
                refusal to
                carry
                out a reasonable directive
                of the chief executive
                officer, the Board or the Optionee's direct supervisor,
                which involves the business
                of
                the Company
                or its Affiliates
                and was capable of being lawfully performed; (iii) embezzlement
                of
                funds
                of
                the Company or its Affiliates;
                (iv) any breach of
                the
                Optionee's
                fiduciary duties or
                duties of care of
                the Company;
                including without limitation disclosure
                of confidential
                information of the Company; and (v) any
                conduct (other than conduct in good faith)
                reasonably determined by the Board
                to
                be
                materially
                detrimental
                to the Company.

            

    

    
      	 	 	 

    

    
      	 	2.6	"Chairman"
              means
              the
              chairman
              of the
              Committee.

      	 	 	 

    

    
      	 	2.7	
              "Committee"
                means
                a share option compensation committee appointed
                by the
                Board, which shall
                consist of no fewer
                than two members
                of the
                Board.

            

    

     

    
      
        ROSETTA
          GENOMICS LTD.
-CONFIDENTIAL-  
     

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
       

      ISRAELI
        SHARE OPTION PLAN
        
          

        

         

      

    

     

    
    

    
    

    
    

    
    

    
      	 	2.8	"Company"
              means Rosetta
              Genomics
              Ltd, an Israeli company.

    

    
      	 	 	 

    

    
      	 	2.9	"Companies Law"
              means
              the Israeli Companies Law
              5759-1999.

    

    
      	 	 	 

    

    
      	 	2.10	"Controlling Shareholder" shall
              have the meaning ascribed to
              it
              in Section
              32(9) of
              the Ordinance.

    

    
      	 	 	 

    

    
      
        	
              	2.11	
                "Date
                  of Grant"
                  means,
                  the date of grant of an Option, as determined by the Board and
                  set
                  forth in the Optionee's
                  Option Agreement.

              

      

    

    
      	 	 	 

    

    
      
        	
              	2.12	
                "Employee"
                  means
                  a person who is employed by the Company
                  or its
                  Affiliates, including an
                  individual w-ho
                  is serving as a director or an
                  office
                  holder, but excluding Controlling Shareholder.

              

      

    

    
      	 	 	 

    

    
      	 	2.13	
              "Expiration
                date" means
                the date
                upon which an Option shall expire, as set forth in Section
                10.2 of the ISOP.

            

    

    
      	 	 	 

    

    
      	 	2.14	"Fair Market Value"
              means
              as of any date, the value of a Share determined as
              follows:

    

    
      	 	 	 

    

    
      	 	 	
              (i) If the Shares are listed
                on any established
                stock
                exchange
                or a national
                market
                system,
                including
                without limitation the NASDAQ National Market system, or the NASDAQ
                SmallCap
                Market of
                the
                NASDAQ Stock Market, the Fair Market
                Value
                shall be the closing
                sales price
                for
                such Shares
                (or the closing
                bid, if no sales were reported), as quoted on
                such exchange or
                system for
                the last
                market
                trading day prior
                to time of determination, as
                reported in the Wall Street Journal, or such
                other
                source
                as
                the Board deems reliable.

               

              
                Without
                  derogating from the
                  above, solely for the purpose of determining
                  the tax liability
                  pursuant
                  to
                  Section
                  102(b)(3) of the Ordinance, if at the
                  Date of Grant the Company's shares are listed on any established
                  stock
                  exchange or a national market
                  system or
                  if the Company's
                  shares
                  will be
                  registered for trading within ninety (90)
                  days following the
                  Date of
                  Grant,
                  the
                  Fair Market Value of a
                  Share
                  at the Date of Grant shall
                  be determined
                  in
                  accordance
                  with the average value of the Company's shares
                  on
                  the thirty (30) trading days
                  preceding
                  the Date
                  of Grant or on the thirty (30)
                  trading days following
                  the
                  date of
                  registration
                  for trading, as
                  the
                  case
                  may be;

                 

                (ii)
                  If the Shares are regularly
                  quoted by a recognized securities
                  dealer but selling
                  prices are
                  not
                  reported, the Fair Market Value shall be the
                  mean between
                  the
                  high bid and low
                  asked
                  prices for
                  the
                  Shares on the
                  last market
                  trading day prior to the day of determination,
                  or;

                 

                
                  (iii)
                    In the
                    absence of
                    an
                    established
                    market for the Shares, the
                    Fair Market
                    Value thereof shall
                    be determined in good faith
                    by the Board.

                

              

            

    

    
      	 	 	 

    

    
      	 	2.15	
              "IPO"
                means the initial public offering
                of the Company's shares.
                

            

    

       

     

    
      
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      ISRAEL
        SHARE OPTION PLAN
        
          

        

         

      

    

     

      	
            	2.16	
              "ISOP"
                means this 2003 Israeli Share Option
                Plan.

            

      	 	 	 

      	 	2.17	
              "ITA"
                means the Israeli Tax Authorities.

            

      	 	 	 

      
        	
              	2.18	
                "Non-Employee"
                  means a consultant adviser, service provider, Controlling Shareholder
                  or
                  any
                  other person
                  who is not an Employee.

              

      

      	 	 	 

      	 	2.19	
              "Ordinary
                Income Option (OIO)" as
                defined in Section 5.5 below.

            

      	 	 	 

      	 	2.20	
              "Option"
                means
                an option to purchase one or more Shares of the Company pursuant
                to
                the
                ISOP.

            

      	 	 	 

      	 	2.21	
              "102
                Option" means
                any Option granted to Employees pursuant
                to
                Section
                102 of
                the Ordinance.

            

      	 	 	 

      
        	
              	2.22	
                "3(i) Option"
                  means
                  an Option granted
                  pursuant to Section 3(i) of the Ordinance to any person
                  who is Non-Employee.

              

      

      	 	 	 

      
        	
              	2.23	
                "Optionee"
                  means
                  a person who
                  receives or holds an Option under the
                  ISOP.

              

      

      	 	 	 

      
        	
              	2.24	
                "Option
                  Agreement"
                  means
                  the share option agreement between the Company and an Optionee
                  that sets
                  out
                  the
                  terms and conditions
                  of an Option.

              

      

      	 	 	 

      
        	
              	2.25	
                "Ordinance"
                  means
                  the 1961 Israeli
                  Income
                  Tax Ordinance [New Version]
                  1961 as now
                  in
                  effect or as hereafter amended.

              

      

      	 	 	 

      	 	2.26	
              "Purchase
                Price" means
                the price for each Share subject to an
                Option.

            

      	 	 	 

      	 	2.27	
              "Section
                102"
                means section 102 of the Ordinance as now in effect or as hereafter
                amended.

            

      	 	 	 

      	 	2.28	"Share"
              means
              the Ordinary
              Shares,
              non
              par value
              each, of the Company.

      	 	 	 

      	 	2.29 	
              "Successor
                Company" means
                any entity the Company is
                merged to or is acquired by,
                in which
                the
                Company is not the surviving
                entity.

            

      	 	 	 

      	 	2.30	
               "Transaction"
                means (i) merger, acquisition or reorganization of the Company
                with one or more other entities in which the Company is not the surviving
                entity, (ii) a sale of all or substantially all of the assets of
                the
                Company.

            

      	 	 	 

      	 	2.31	
              "Trustee"
                means any
                individual appointed by the Company to serve as a trustee and approved
                by the
                ITA, all in
                accordance with
                the
                provisions of
                Section 102(a)
                of
                the Ordinance.

            

    

     

     

    
      
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    ISRAELI
      SHARE OPTION PLAN

    
      
        

      

    

    

    
      	
            	2.32	
              
                "Unapproved
                  102
                  Option" means
                  an Option granted pursuant to
                  Section
                  102(c)
                  of the Ordinance
                  and not held
                  in trust by a Trustee.

              

            

    

    
      	 	 	 

    

    
      	 	2.33	
              "Vested
                Option" means any
                Option, which
                has
                already
                been
                vested according
                to
                the Vesting Dates.

            

    

    
      	 	 	 

    

    
      	 	2.34 	
              "Vesting
                Dates"
                means,
                as determined by
                the Board or by the Committee, the date as of
                which
                the Optionee
                shall be entitled to exercise the Options or part of the Options,
                as set
                forth
                in section 11
                of
                the ISOP.

            

    

     

    3.     ADMINISTRATION
      OF THE ISOP

     

    
      	
            	3.1	
              
                The
                  Board shall
                  have the power to administer the ISOP either
                  directly or upon
                  the recommendation
                  of the
                  Committee, all as
                  provided by applicable law and in the
                  Company's
                  Articles of
                  Association. Notwithstanding the
                  above,
                  the
                  Board shall automatically
                  have residual authority if no Committee
                  shall be constituted or if
                  such Committee
                  shall cease to operate for
                  any reason.

              

            

      	 	 	 

      	 	3.2 	
              The
                Committee
                small
                select
                one of
                its
                members as its
                Chairman
                and
                shall hold its meetings
                at
                such
                times and places as the Chairman shall determine. The Committee
                shall
                keep records
                of its meetings and shall
                make such rules and regulations for the conduct
                of
                its business
                as it shall deem advisable.

            

      	 	 	 

      	 	3.3 	
              The
                Committee
                shall
                have the power to recommend to the Board and the Board
                shall have
                the
                full
                power
                and authority to: (i) designate participants; (ii)
                determine the
                terms
                and
                provisions
                of the respective Option Agreements, including, but not limited
                to,
                the number of
                Options
                to be granted to each Optionee,
                the
                number of
                Shares
                to
                be covered by each Option,
                provisions concerning the time and the extent to which
                the Options may be exercised
                and
                the nature
                and duration of restrictions as
                to the transferability or restrictions
                constituting substantial risk of forfeiture and to
                cancel or suspend awards, as necessary; (iii)
                determine the
                Fair
                Market Value
                of the Shares covered
                by each Option;
                (iv) make
                an election
                as to the type
                of Approved
                102 Option;
                and
                (v)
                designate
                the
                type of Options.

               

              
                The
                  Committee shall have full power and authority
                  to: (i) alter any
                  restrictions and
                  conditions
                  of any Options or Shares subject to any
                  Options (ii) interpret
                  the provisions and supervise
                  the administration
                  of the ISOP;
                  (iii) accelerate the right of
                  an Optionee
                  to
                  exercise
                  in whole or in part,
                  any
                  previously
                  granted Option;
                  (iv)
                  determine
                  the
                  Purchase
                  Price
                  of the Option; (v) prescribe, amend and
                  rescind rules and
                  regulations relating
                  to
                  the ISOP;
                  and (vi)
                  make
                  all other
                  determinations deemed
                  necessary or advisable
                  for
                  the
                  administration
                  of the ISOP.

              

            

      	 	 	 

      	 	3.4	
              Notwithstanding
                the above,
                the Committee shall not
                be entitled to grant
                Options to
                the
                Optionees,
                however, it will be authorized to issue
                Shares
                underlying Options
                which have
                been
                granted by the Board and duly
                exercised pursuant to
                the provisions herein
                in
                accordance
                with section 112(a)(5) of the Companies
                Law.

            

    

    

    
      
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        SHARE OPTION PLAN

      
        
          

        

      

    
      	
            	3.5	
              
                The
                  Board
                  shall
                  have the authority to grant, at its discretion, to
                  the holder of an outstanding
                  Option, in exchange for the surrender and cancellation of such
                  Option,
                  a
                  new Option
                  having a purchase price equal to, lower than or higher than the
                  Purchase
                  Price of
                  the
                  original Option
                  so surrendered and canceled and containing such other terms
                  and conditions
                  as the Committee may prescribe in accordance with the provisions
                  of the
                  ISOP.

              

            

      	 	 	 

      	 	3.6	
              Subject
                to the Company's Articles
                of
                Association, all decisions and selections made by the Board
                or the Committee pursuant to the provisions of the ISOP shall
                be made by a majority
                of its members except that no member of the Board or the Committee
                shall
                vote on, or be counted for quorum purposes, with respect to any proposed
                action of the Board or
                the Committee relating to any Option to be granted to that member.
                Any decision reduced
                to writing shall be executed in accordance with the provisions of
                the
                Company's Articles
                of Association, as the same may be in effect from time to
                time.

            

      	 	 	 

      	 	3.7	
              The
                interpretation and construction by the Committee of any provision
                of the
                ISOP
                or
                of
                any
                Option Agreement thereunder shall
                be final and conclusive unless
                otherwise determined
                by the Board.

            

      	 	 	 

      	 	3.8	
              Subject
                to the Company's Articles of Association and the Company's decision,
                and
                to all approvals
                legally required, including, but not limited to the provisions
                of
                the Companies Law,
                each member of the Board or the Committee
                shall be indemnified and held harmless by
                the Company against any cost or expense (including counsel fees)
                reasonably incurred by
                him, or any liability (including any sum paid in settlement of a
                claim
                with the approval of
                the Company) arising out of any act or omission to act in
                connection
                with the ISOP unless
                arising out of such member's own fraud or
                bad
                faith, to the extent permitted by applicable
                law, such indemnification shall be in addition to any rights of
                indemnification the
                member may have as a director or otherwise under the Company's Articles
                of
                Association,
                any agreement, any vote of shareholders or disinterested directors,
                insurance
                policy
                or otherwise.

            

    

    4.    DESIGNATION
      OF PARTICIPANTS

     

      	
            	4.1 	
              
                The
                  persons eligible for participation in the
                  ISOP as Optionees shall include any Employees
                  and/or Non-Employees
                  of the Company or of any Affiliate; provided, however,
                  that
                  (i) Employees may only be granted 102 Options; (ii) Non-Employees
                  may
                  only be granted
                  3(i) Options; and (iii) Controlling Shareholders may only be granted
                  3(i) Options.

              

            

      	 	 	 

      	 	4.2	The grant of an Option hereunder shall neither entitle
              the Optionee to
              participate nor disqualify
              the Opitonee
              from participating
              in,
              any other grant of Options pursuant to
              the
              ISOP
              or any other option or share plan of the Company or any of its
              Affiliates.

      	 	 	 

      	 	4.3	
              Anything
                in the ISOP to the contrary notwithstanding, all grants of
                Options to directors
                and
                office holders shall be authorized and implemented
                in
                accordance with the provisions of
                the Companies Law orany
                successor act or regulation, as in effect
                from time
                to time.

            

      

      
        
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      ISRAELI
        SHARE OPTION PLAN

      
        
          

        

      

    5.    DESIGNATION
      OF OPTIONS PURSUANT TO SECTION
      102

    

    
      	 	5.1	
              The
                Company may designate Options granted to Employees pursuant to
                Section
                102 as Unapproved
                102 Options or Approved 102 Options.

            

      	 	 	 

      	 	
              5.2
                

            	
              The
                grant of Approved 102 Options shall be made under this ISOP adopted
                by the
                Board as
                described in Section 15 below, and shall be conditioned upon the
                approval
                of this
                ISOP by
                the ITA.

            

      	 	 	 

      	 	5.3	
              Approved
                102 Option may either be classified as Capital Gain Option
                ("CGO")
                or Ordinary
                Income Option ("OIO").

            

    

     

    
      	 	
              5.4
                

            	
              Approved
                102 Option elected and designated by the Company to qualify under
                the
                capital gain
                tax treatment in accordance with the provisions of Section 102(b)(2)
                shall
                be referred
                to
                herein as CGO.

            

      	 	 	 

      	 	5.5 	
              Approved
                102 Option elected and designated by the Company to
                qualify under the ordinary
                income
                tax
                treatment in accordance with the provisions of Section 102(b)(1)
                shall
                be
                referred
                to herein
                as OIO.

            

    

     

    
      	 	
              5.6 

            	
              The Company's
                election of the type of Approved 102 Options as
                CGO or OIO
                granted to Employees
                (the "Election"),
                shall
                be appropriately filled with the ITA before the Date of Grant
                of an
                Approved 102 Option.
                Such Election shall become effective beginning the first
                Date of Grant of an
                Approved
                102 Option under this ISOP and shall remain in effect for
                the minimum time required under Section 102, as me amended from time
                to
                time (which
                is currently until the end of the year following the year during
                which the
                Company first
                granted Approved 102 Options). The Election shall obligate the Company
                to
                grant
                only
                the type of Approved 102 Option it has
                elected, and shall apply to all Optionees who were
                granted Approved 102 Options during the period indicated herein,
                all in
                accordance with the provisions of Section 102(g) of the Ordinance,
                as may
                be amended from time to
                time.
                For the avoidance of doubt, such Election shall not prevent the
                Company from granting
                Unproved 102 Options simultaneously.

            

      	 	 	 

      	 	5.7	
              All
                Approved 102 Options must be held in trust by a Trustee, as
                described in Section
                6 below.

            

    

     

    
      	 	
              5.8
                

            	
              For
                the avoidance of doubt, the designation of Unapproved
                102 Options and Approved 102
                Options shall be subject to the terms and conditions set forth in
                Section
                102
                of the Ordinance
                and the regulations promulgated
                thereunder.

            

    

    

    
      	 	
              5.9
                

            	
              With
                regards to Approved
                102 Options, the provisions of the ISOP and/or the Option Agreement
                shall be subject
                to the
                provisions of Section 102 and the Tax Assessing Officer's
                permit, and the said provisions and permit shall
                be deemed
                an integral part of the ISOP and of the Option Agreement. Any provision
                of
                Section 102 and/or the
                said permit which
                is necessary it order to receive and/or to keep any tax benefit pursuant
                to Section
                102, which is not expressly specified in the ISOP or the Option Agreement,
                shall be considered binding upon the Company and the
                Optionees.

            

    

     

    
 

    
      
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        SHARE OPTION PLAN

      
        
          

        

         

      

    

    6.     TRUSTEE

     

    
      	 	6.1	
              Approved 102 Options with shall
                be granted
                under the ISOP and/or any Shares allocated or issued upon exercise
                of such
                Approved 102 Options and/or other shares received subsequently following
                any realization of rights, including without limitation bonus shares,
                shall be allocated or issued to the Trustee and held for the benefit
                of
                the Optionees for such period of time as required by Section 102
                or any
                regulations, rules or orders or procedures promulgated thereunder
                (the
                "Holding
                Period"). In
                the case the requirements for Approved 102 Options are not met, then
                the
                Approved 102 Options may be treated as Unproved 102 Options, all
                in
                accordance with the provisions of Section 102 and regulations promulgated
                thereunder.

            

      	 	 	 

      	 	
              6.2
                

            	
              Notwithstanding
                anything to the contrary, the Trustee shall not release any Shares
                allocated or issued upon exercise of Approved 102 Options prior
                to
                the full payment of the Optionee's tax liabilities arising from Approved
                102 Options which were granted to him and/or any Shares allocated
                or
                issued upon exercise of such
                Options.

            

    

    

    
      	 	
              6.3
                

            	
              With
                respect to any Approved 102 Option, subject to the provisions of
                Section
                102 and any rules or regulation or orders or procedures promulgated
                thereunder, an Optionee shall not be entitled to sell or release
                from
                trust any Share received upon the exercise of an Approved 102 Option
                and/or any share received subsequently following any realization
                of
                rights, including without limitation, bonus shares, until the lapse
                of the
                Holding Period required under Section 102 of the
                Ordinance.

            

    

     

    
      	 	
              6.4 

            	
              Upon
                receipt of Approved 102 Option, the Optionee will sign an undertaking
                to
                release the Trustee from any liability in respect of any action or
                decision duly taken and bona fide executed in relation with the ISOP,
                or
                any Approved 102 Option or Share granted to him
                thereunder.

            

    

     

    7.    SHARES
      RESERVED FOR THE ISOP;
      RESTRICTION THEREON

    

    
      	 	
              7.1
                

            	
              The
                Company
                has
                reserved
                _____________ (__________ ) authorized but unissued Shares, for the
                purposes of the ISOP and for the purposes of any other share option
                plans
                which may be adopted by the Company in the future, subject to adjustment
                as set forth in Section 9 below. Any Shares which remain unissued
                and
                which are not subject to the outstanding Options at the termination
                of the
                ISOP shall cease to be reserved for the purpose of the ISOP, but
                until
                termination of the ISOP the Company shall at all times reserve sufficient
                number of Shares to meet the requirements of the ISOP. Should any
                Option
                for any reason expire or be canceled prior to its exercise
                or relinquishment in full, the Shares subject to such Option may
                again be
                subjected to an Option under the ISOP or under the Company's other
                share
                option plans.

            

    

    
       

      
        
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      ISRAELI
        SHARE OPTION PLAN

      
        
          

        

      

    

     

     

    
      	
            	
              7.2

            	
              
                Each
                  Option granted pursuant to the ISOP, shall be evidenced by a written
                  Option Agreement between the Company and the Optionee, in such
                  form as the
                  Board or the Committee shall from time to time approve. Each Option
                  Agreement shall state, among other matters, the number of Shares
                  to which
                  the Option relates, the type of Option granted thereunder (whether a
                  CGO, OIO, Unapproved 102 Option or a 3(i) Option), the
                  Vesting Dates, the Purchase Price per share, the Expiration Date
                  and such
                  other terms and conditions as the Committee or the Board in its
                  discretion
                  may prescribe, provided that they are consistent with this
                  ISOP.

              

            

      	 	 	 

      	 	7.3	
              Until the consummation of an
                IPO, such
                Shares shall be voted by an irrevocable proxy (the "Proxy")
                pursuant
                to the directions of the Board, such Proxy to be assigned to the
                person or
                persons designated by the Board. Such person or persons designated
                by the
                Board shall be indemnified and held harmless
                by the Company against any cost
                or expense (including counsel fees) reasonably incurred by him/her,
                or any
                liability (including any sum paid in settlement of a claim with the
                approval of the Company) arising out of any act or omission
                to
                act in connection
                with
                the voting of such Proxy unless arising out of such member's own
                fraud or
                bad
                faith, to the extent permitted by applicable
                law. Such indemnification shall be
                in addition to any rights of indemnification
                the person(s) may have as
                a director
                or
                otherwise
                under the Company's Articles of Association, any agreement, any
                vote
                of shareholders
                or disinterested directors, insurance policy or otherwise. Without derogating
                from the above, with respect to Approved 102
                Options, such shares shall be voted
                in accordance
                with the provisions of
                Section 102 and any rules, regulations
                or orders promulgated
                thereunder.

            

    

     

    8.     PURCHASE
      PRICE

     

    
      	
            	8.1	
              
                The
                  Purchase price of each Share subject to an Option shall be determined
                  by
                  the Committee in its sole and absolute discretion in accordance
                  with
                  applicable law, subject to any guidelines as may be determined
                  by the
                  Board from time to time. Each Option Agreement will contain the
                  Purchase
                  Price determined for each Optionee.

              

            

      	 	 	 

      	 	8.2	
              The Purchase Price
                shall
                be payable upon
                the exercise of
                the
                Option
                in a form satisfactory
                to
                the
                Committee, including without limitation,
                by cash or check.
                The Committee shall have the authority to postpone the date of payment
                on
                such terms as it may
                determine.

            

    

    

    
      	 	
              8.3

            	
              The
                Purchase Price shall be denominated in
                the
                currency of the primary
                economic environment
                of,
                either the
                Company or
                the
                Optionee
                (that is the functional currency
                of
                the Company
                or the currency in which the Optionee
                is paid) as determined by the Company.

            

    

     

    9.    ADJUSTMENTS

     

    
      Upon
        the
        occurrence of
        any
        of
        the following described
        events, Optionee's rights to purchase
        Shares
        under
        the
        ISOP shall be adjusted as
        hereafter
        provided:
        

       

      
        
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        ISRAELI
          SHARE OPTION PLAN

        
          
            

          

           

        

      

      
        	
              	
                9.1

              	
                
                  In
                    the event of Transaction, the unexercised Options then
                    outstanding
                    under the ISOP shall
                    be assumed or substituted for an appropriate number
                    of
                    shares of each class of shares
                    or
                    other securities
                    of the Successor Company (or a parent or subsidiary of the Successor
                    Company)
                    as were distributed to the
                    shareholders of
                    the
                    Company in connection and with respect
                    to
                    the Transaction. In the case of such assumption and/or substitution
                    of
                    Options, appropriate
                    adjustments
                    shall be made to the Purchase
                    Price
                    so
                    as to reflect such action
                    and
                    all other terms and conditions of the
                    Option Agreements shall
                    remain unchanged,
                    including
                    but
                    not limited to the vesting
                    schedule,
                    all subject
                    to
                    the
                    determination
                    of
                    the
                    Committee or the Board,
                    which determination
                    shall
                    be
                    in their sole
                    discretion
                    and final. The
                    Company shall notify
                    the Optionee of the Transaction
                    in such form and method as it deems
                    applicable at least
                    ten (10) days prior to the effective
                    date of
                    such Transaction.

                

              

      

    

     

    
      
        
          	
                	
                  
                    9.2

                  

                	
                  
                    
                      Notwithstanding
                        the
                        above and subject to
                        any applicable law, the Board or
                        the
                        Commitee shall
                        have full power
                        and authority
                        to determine that in
                        certain
                        Option Agreements there shall
                        be a clause instructing that,
                        if in any such
                        Transaction
                        as
                        described in section 9.1 above,
                        the
                        Successor Company
                        (or parent orsubsidiary
                        of the
                        Successor
                        Company) does
                        not
                        agree to assume or
                        substitute for the Options,
                        the
                        Vesting
                        Dates shall be accelerated so
                        that any unvested
                        Option or any portion thereof shall
                        be immediately vested as of the
                        date
                        which is ten (10) days prior to
                        the effective date
                        of
                        the Transaction.

                    

                  

                

          	 	 	 

          	 	
                  9.3

                	
                  For
                    the purposes of
                    section 9.1 above, an Option shall be considered assumed or substituted
                    if, following
                    the Transaction, the Option confers the right to purchase or
                    receive,
                    for each Share underlying an Option immediately
                    prior
                    to the
                    Transaction, the
                    consideration
                    (whether
                    shares,
                    options,
                    cash, or other securities or property) received in
                    theTransaction
                    by holders of shares
                    held on the effective
                    date of the Transaction
                    (and
                    if such
                    holders
                    were offered
                    a choice
                    of
                    consideration,
                    the type
                    of
                    consideration chosen by the
                    holders of a majority of the outstanding shares); provided, however,
                    that if
                    such consideration
                    received in
                    the
                    Transaction is not solely ordinary shares (or their equivalent)
                    of
                    the Successor
                    Company or its
                    parent
                    or subsidiary, the Committee
                    may, with the
                    consent
                    of the Successor Company, provide for the consideration to
                    be
                    received
                    upon the
                    exercise
                    of
                    the Option to
                    be solely ordinary
                    shares
                    (or their equivalent) of the
                    Successor
                    Company
                    or its parent or subsidiary equal in Fair Market
                    Value to
                    the
                    per
                    Share consideration
                    received by holders of a majority of the
                    outstanding
                    shares
                    in the
                    Transaction;
                    and provided further that
                    the Committee
                    may determine, in
                    its discretion,
                    that
                    in
                    lieu of such assumption or
                    substitution of Options for options of the
                    Successor
                    Company
                    or its parent or subsidiary, such Options
                    will
                    be substituted
                    for any other
                    type of asset
                    or
                    property
                    including cash which is fair under the
                    circumstances.

                

          	 	 	 

          	 	9.4	
                  If
                    the Company is
                    voluntarily
                    liquidated or dissolved
                    while unexercised Options
                    remain outstanding
                    under the
                    ISOP, the
                    Company shall immediately
                    notify all unexercised Option holders
                    of such liquidation, and the Option holders shall then
                    have ten (10) days
                    to exercise
                    any unexercised Vested Option held by them
                    at that time, in accordance
                    with the exercise
                    procedure set forth
                    herein. Upon the expiration
                    of such ten-days period,
                    all
                    remaining
                    outstanding Options will
                    terminate immediately.

                

        

         

      

    

    
 

    
      
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      ISRAELI
        SHARE OPTION PLAN

      
        
          

        

      

    

     

      	
            	9.5	
              
                If
                  the outstanding shares of the Company shall at
                  any
                  time be changed or exchanged by declaration
                  of a share dividend (bonus shares), share split, combination or
                  exchange
                  of shares, recapitalization, or any other like event by or of the
                  Company,
                  and as often as the same
                  shall occur, then the number, class and kind of the Shares
                  subject to the ISOP or subject
                  to any Options therefore granted, and the Purchase Prices, shall
                  be
                  appropriately and
                  equitably adjusted so as to maintain
                  the proportionate number of Shares without changing
                  the aggregate Purchase Price, provided, however, that no adjustment
                  shall
                  be made
                  by reason of the distribution of subscription rights (rights offering)
                  on
                  outstanding shares.
                  Upon happening of any of the foregoing, the class and aggregate
                  number of
                  Shares issuable
                  pursuant to the ISOP (as set forth in Section 7 hereof), in respect
                  of
                  which Options
                  have not yet been exercised? shall
                  be appropriately adjusted, all as will be determined
                  by the Board whose determination shall be
                  final.

              

            

      	 	 	 

      	 	9.6 	
              Anything
                herein to the contrary notwithstanding, if prior to the completion
                of the
                IPO all or
                substantially all of the shares of the Company are to be sold, or
                in case
                of a Transaction, all
                or substantially all of the shares of the Company are to be exchanged
                for
                securities of another Company, then each Optionee shall be obliged
                to
                sell
                or exchange, as the case may
                be, any Shares such Optionee purchased under the ISOP, in accordance
                with
                the instructions
                issued by the Board in connection with the Transaction, whose
                determination shall
                be final.

            

      	 	 	 

      	 	9.7	
              The
                Optionee acknowledges that in the event that the Company's shares
                shall be
                registered
                for trading in any public market, Optionee's rights to sell the Shares
                may
                be subject
                to
                certain
                limitations (including a lock-up period), as will be requested by
                the
                Company or its underwriters, and the Optionee unconditionally agrees
                and
                accepts any such
                limitations.

            

    

     

    10.    TERM
      AND EXERCISE OF OPTIONS

     

    
      	
            	10.1	
              
                Options
                  shall be exercised by the Optionee by giving written notice to
                  the Company
                  and/or to
                  any
                  third party designated by the Company (the
                  "Representative"), in such form and method as may be
                  determined by the Company and when applicable, by the Trustee in
                  accordance with the requirements of Section 102, which exercise
                  shall be
                  effective upon receipt
                  of such notice by the Company and/or the Representative and the
                  payment of
                  the Purchase
                  Price at the Company's or the Representative's principal office.
                  The
                  notice shall specify
                  the number of Shares with respect to which the Option is being
                  exercised.

              

            

    

    
      	 	 	 

    

    
      	 	10.2	
              Options,
                to the extent not previously exercised, shall terminate forthwith
                upon the
                earlier of:
                (i) the date set forth in the Option Agreement; and (ii) the expiration
                of
                any extended period
                in any of the events set forth in section 10.5
                below.

            

    

    
      	 	 	 

    

    
      	 	10.3	
              The
                Options may be exercised by the Optionee
                in
                whole at any time or in part from time to time,
                to the extent that the Options become vested and exercisable, prior
                to the
                Expiration Date,
                and provided that, subject to the provisions of section 10.5 below,
                the
                Optionee is employed
                by or providing services to the Company or
                any
                of its Affiliates, at all times during
                the period beginning with the granting of the Option and ending upon
                the
                date of exercise.

            

    

    
      	 	 	 

    

     

     

    
      
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          GENOMICS LTD.
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        ISRAELI
          SHARE OPTION PLAN

        
          
            

          

        

      

    

     

    
    

    
      	 	10.4	
              Subject
                to the provisions of section 10.5 below, in the event of termination
                of
                Optionee's employment
                or services, with the Company or any of its Affiliates, all Options
                granted to such
                Optionee will immediately expire. A notice of termination of employment
                or
                service shall
                be deemed to constitute termination of employment or service. For
                the
                avoidance of doubt,
                in case of such termination of employment or service,
                the unvested portion of the Optionee's
                Option shall not vest and shall not become
                exercisable.

            

    

    
      	 	 	 

    

    
      	 	10.5	
              Notwithstanding
                anything to the contrary hereinabove and unless otherwise determined
                in the
                Optionee's Option Agreement, an Option may be exercised after the
                date of
                termination
                of Optionee's employment or service with the Company or any Affiliates
                during
                an additional period of time beyond the date of such termination,
                but only
                with respect to the number of Vested Options at the time of such
                termination according to the Vesting
                Dates, if:

            

    

     

    
      
        	
              	(i)	
                termination
                  is
                  without
                  Cause,
                  in which event any Vested
                  Option
                  still in
                  force and unexpired
                  may
                  be exercised within
                  a
                  period
                  of
                  ninety (90) days after
                  the date of such termination;
                  or-

              

      

    

     

    
      	
            	(ii)	
              termination
                is the result of death or
                disability of the Optionee, in which event any Vested
                Option still in force and unexpired may be exercised within a period
                of
                twelve (12)
                months after the date of such termination;
                or-

            

    

     

    
      
        	
              	(iii)	
                prior
                  to the
                  date of such termination,
                  the
                  Committee shall authorize an extension of the
                  terms
                  of all or part of the Vested Options
                  beyond the date of
                  such termination for a period
                  not to exceed the period during which the Options by their terms
                  would
                  otherwise
                  have been exercisable.

              

      

    

    
       

      	 	 	
              For
                avoidance of any doubt, if termination of employment or service is
                for
                Cause, any outstanding unexercised
                Option
                (whether
                vested or non-vested), will immediately expire and
                terminate, and the Optionee shall not have any right in connection
                to such
                outstanding Options.

            

      	 	 	 

      	 	10.6	
              To
                avoid doubt, the Optionees shall not have any of the rights or privileges
                of shareholders
                of the Company in respect
                of any Shares
                purchasable upon the exercise of any
                Option, nor shall they be deemed to be a class of shareholders or
                creditors of the Company
                for purpose of the operation of sections 350 and 351 of the Companies
                Law
                or any
                successor to such section, until registration of the Optionee as
                holder of
                such Shares in
                the Company's register of shareholders upon exercise of the Option
                in
                accordance with the
                provisions of the ISOP, but in case of Options and Shares held by
                the
                Trustee, subject to
                the provisions of Section 6
                of
                the ISOP.

            

      	 	 	 

      	 	10.7	
              
                Any
                  form of Option Agreement authorized by the ISOP may contain such
                  other
                  provisions as
                  the Committee
                  may, from time to time, deem
                  advisable.

              

            

    

     

     

    
      
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          GENOMICS LTD.
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        ISRAELI
          SHARE OPTION PLAN

        
          
            

          

           

        

      

    

     

      	
            	10.8	
              
                
                  With
                    respect to Unapproved 102 Option, if the Optionee ceases to be
                    employed
                    by
                    the Company
                    or any Affliate, the Optionee shall extend to the Company and/or
                    its
                    Affiliate a
                    security
                    or guarantee for the payment of tax due at the time of sale of
                    Shares, all in accordance
                    with the provisions of Section 102
                    and the rules, regulation or orders promulgated
                    thereunder.

                

              

            

    

     

    11.    VESTING
      OF OPTIONS

     

    
      	
            	11.1 	
              
                Subject
                  to the provisions of the ISOP, each Option shall vest following
                  the
                  Vesting Dates
                  and
                  for the number of Shares as shall be provided in the Option Agreement.
                  However, no Option
                  shall be exercisable after the Expiration
                  Date.

              

            

      	 	 	 

      	 	11.2	
              An
                Option may be subject to such other terms and conditions on the time
                or
                times when it
                may
                be exercised, as the Committee may deem appropriate. The
                vesting provisions of individual
                Options may vary.

            

    

     

    12.   
SHARES
      SUBJECT TO RIGHT OF FIRST REFUSAL

     

    
      	
            	12.1	
              
                Notwithstanding
                  anything to the contrary in the Articles of Association of the
                  Company,
                  none
                  of the Optionees shall have a right of first refusal in relation
                  with any
                  sale of shares in
                  the
                  Company.

              

            

      	 	 	 

      	 	12.2	
              Unless
                otherwise determined by the Committee, until such time as the Company
                shall complete
                an IPO,
                an Optionee
                shall not have the right to sell Shares issued upon the exercise
                of an Option
                within six (6) months and one day of the date of exercise of such
                Option
                or issuance of such Shares. Following
                such
                six (6) months period,
                the sale of Shares
                issuable upon the exercise of an Option shall be subject to a right
                of first refusal
                of shareholders of the Company, as set forth in the Articles of
                Association of
                the Company
                (as may be amended from time to
                time).

            

    

    13.   
DIVIDENDS

     

    With
      respect to all Shares (but excluding, for avoidance of any doubt, any
      unexercised Options)
      allocated
      or issued upon the exercise of Options purchased by the Optionee
      and held by the Optionee
      or by the Trustee, as the case may be, the Optionee shall be entitled to receive
      dividends in
      accordance with the quantity of such Shares, subject to the
      provisions of the Company's Articles
      of Association (and all amendments thereto) and subject to
      any
      applicable taxation on distribution
      of dividends, and when applicable subject to the provisions of
      Section 102 and the rules,
      regulations or orders promulgated thereunder.

     

    
      
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          GENOMICS LTD.
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        ISRAELI
          SHARE OPTION PLAN

        
          
            

          

           

        

      

    

    14.     RESTRICTIONS
      ON ASSIGNABILITY
      AND SALE OF OPTIONS

     

    
      	
            	14.1	
              
                No
                  Option or
                  any right with respect thereto, purchasable hereunder, whether
                  fully paid
                  or
                  not,
                  shall be assignable,
                  transferable
                  or
                  given
                  as
                  collateral or
                  any
                  right
                  with respect to
                  it given
                  to
                  any third party whatsoever, except as specifically allowed under
                  the
                  ISOP,
                  and during
                  the lifetime of
                  the
                  Optionee each
                  and all of
                  such Optionee's
                  rights to purchase Shares
                  hereunder shall
                  be exercisable
                  only by the Optionee.

              

            

      	 	 	 

      	 	 	
              Any
                such action
                made directly or indirectly, for an immediate validation or for a
                future
                one,
                shall be void.

            

      	 	 	 

      	 	
              14.2

            	
              As
                long as
                Options and/or
                Shares are held by the Trustee on behalf of the
                Optionee,
                all rights
                of the
                Optionee over
                the Shares are personal, can not be transferred, assigned, pledged
                or mortgaged,
                other than by will or pursuant to
                the
                laws
                of descent and distribution.

            

     

    15.    EFFECTIVE
      DATE AND
      DURATION OF THE ISOP

     

    The
      ISOP
      shall be effective
      as of the day it was adopted by the Board and
      shall
      terminate at the end of
      ten
      (10) years from such day of adoption.

     

    16.   
AMENDMENTS
      OR TERMINATION

     

    The
      Board
      may at any
      time,
      but when applicable,
      after consultation with the
      Trustee, amend,
      alter,
      suspend or terminate the
      ISOP.
      No amendment, alteration, suspension or termination of
      the
ISOP
      shall
      impair the rights of any
      Optionee, unless
      mutually agreed otherwise between the Optionee
      and the Company, which
      agreement must be in writing and signed by the Optionee
      and the
      Company.
      Termination of the ISOP shall not affect the
      Committee's ability to
      exercise
      the powers
      granted to it hereunder with respect to Options granted under the ISOP prior
      to
      the date of
      such
      termination.

    17.   
GOVERNMENT
      REGULATIONS

     

    The
      ISOP,
      and the granting
      and exercise of
      Options hereunder, and the obligation of the Company
      to
      sell
      and
      deliver Shares under such Options,
      shall be subject
      to all applicable
      laws,
      rules,
      and
      regulations, whether of
      the
State
      of
      Israel
      or of the United States or any
      other
      State having
      jurisdiction
      over
      the
      Company and the Optionee,
      including the registration of the
      Shares
      under
      the
      United States Securities
      Act of 1933, and the Ordinance and to such approvals by any governmental
      agencies
      or national securities exchanges as may be required. Nothing
      herein shall be
      deemed
      to
      require the Company to
      register the Shares under the securities
      laws
      of
      any jurisdiction.

     

    
      
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          GENOMICS LTD.
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        ISRAELI
          SHARE OPTION PLAN

        
          
            

          

        

      

    

    the
      ISOP
      or in any Option

    

    continue
      in the employ or service of the Company or an Affiliate thereof or restrict
      the
      right
      of the Company
      or an Affiliate
      thereof to terminate such employment or service at any time.

    

    19.    GOVERNING
      LAW
      & JURISDICTIONS

    The
      ISOP
      shall be governed by and construed and enforced in accordance with the laws
      of
      the State
      of
Israel
      applicable to
      contracts
      made and to be performed therein, without giving effect to the
      principles of conflict of laws. The competent courts
      of
      Tel-Aviv, Israel shall have sole jurisdiction
      in any matters pertaining to the ISOP.

    

    TAX
      CONSEQUENCES

     

    
      	
            	
              20.1
                

            	
              
                Any
                  tax consequences arising from the grant or exercise of any Option,
                  from
                  the payment for
                  Shares covered thereby or from any other event or act (of the Company
                  and/or its
                  Affiliates, the Trustee or the Optionee), hereunder, shall be borne
                  solely
                  by the Optionee.
                  The
                  Company and/or its Affiliates and/or the Trustee shall withhold
                  taxes
                  according to the
                  requirements
                  under the applicable laws, rules, and regulations, including withholding
                  taxes at
                  source. Furthermore, the Optionee shall agree to indemnify the
                  Company
                  and/or its Affiliates
                  and/or
                  the Trustee and hold them harmless against and from any and all liability
                  for
                  any such tax or interest or penalty thereon, including without
                  limitation,
                  liabilities relating
                  to the necessity to withhold, or to have withheld, any such tax
                  from any
                  payment made
                  to the Optionee.

              

            

      	 	 	 

      	 	20.2	
              The
                Company and/or, when applicable, the Trustee shall not be required
                to
                release
                any Shares
                certificate to an
                Optionee until
                all required
                payments have been fully made.

            

    

     

    20.   NON-EXCLUSIVITY
      OF
      THE ISOP

    

    
      The
        adoption of the ISOP by the Board shall not be construed as
        amending, modifying or rescinding
        any previously approved incentive arrangements or as creating any limitations
        on
        the
power
        of
        the Board to adopt such other incentive arrangements as
        it may
        deem desirable,
        including,
        without limitation, the granting of Options otherwise than under the
        ISOP,
        and such arrangements
        may be either applicable generally or only in specific cases.

       

    

    employment
      agreements, and not in the framework of any previous option plan,
      shall not
      be
      deemed
      an
      approved incentive arrangement for the purpose of this Section.

     

     

    
      
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          GENOMICS LTD.
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        ISRAELI
          SHARE OPTION PLAN

        
          
            

          

           

        

      

    

    22.    MULTIPLE
      AGREEMENTS

     

    
      The
        terms
        of
        each
        Option may differ from other Options granted hereunder the ISOP at the same
        time,
        or
        at any other time.
        The
        Board
        may also grant more than one Option to a given Optionee during
        the term of the ISOP, either in addition to, or in substitution
        for,
        one or
        more
        Options previously
        granted to that Optionee.

    

     

    *   
 *    
*

    
      
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          GENOMICS LTD.
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