Document:

Unassociated Document

    

      Confidential
        Treatment Requested. Confidential portions of this document have been redacted
        and filed separately with the Commission.

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      RESEARCH
        AND LICENSE AGREEMENT

       

      RESEARCH
        AND LICENSE AGREEMENT (the “Agreement”) made and entered into as of April 18,
        2000 the “Effective Date”), by and between DRK
        BLUTSPENDEDIENDST BADEN-WURTTENBERG, INSTITUT ULM (the
        “Licensor”), having an address at Postfach
        15 64, U-89005 Ulm, Germany, and XTL
        BIOPHARMACEUTICALS, LTD.
        (the
“Company”), having an address at Kiryat Weizmann, P.O. Box 370, Rehovot, 76100,
        Israel.

       

      RECITALS

       

      A. *****
        has
        conducted research and made new inventions with respect to technology relating
        to antibodies to HCV;

       

      B. The
        Company is willing to partially finance the performance of further research
        at
        the laboratories, and under the supervision, of ***** relating to antibodies
        to
        HCV;

       

      C. The
        Company is also willing to provide ***** antigens for HCV and access to its
        animal models to screen antibodies to HCV; and 

       

      D. Subject
        to and in accordance with the terms and conditions of this Agreement, the
        Company wishes to acquire, and Licensor is willing to grant the Company,
        the
        exclusive license set forth in this Agreement.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

          *****
            Confidential material redacted and filed separately with the
            Commission.

           

        

      

      NOW,
        THEREFORE, in consideration of the mutual promises and agreements contained
        herein, the parties hereto agree as follows:

      

      1.  Definitions

       

      “Affiliate”
        means
        any corporation or other entity that directly, or indirectly through one
        or more
        intermediaries, controls, is controlled by, or is under common control with
        the
        designated party but only for so long as such relationship exists.
        For the purposes of this section, “Control”
        shall
        mean ownership of at least 50% (or such lesser percent as may be the maximum
        that may be owned by foreign interests pursuant to the laws of the country
        of
        incorporation) of the shares of stock entitled to vote for directors in the
        case
        of a corporation and at least 50% (or such lesser percent as may be the maximum
        that may be owned by foreign interests pursuant to the laws of the country
        of
        domicile) of the interests in profits in the case of a business entity other
        than a corporation. 

       

      “Antibodies”
        mean
        those cell lines secreting antibodies to HCV listed on Exhibit
        A
        hereto
        and other cell lines secreting antibodies to HCV developed by Licensor as
        a
        result of the Research.

       

      “Effective
        Date”
        means
        the date set forth at the beginning of this Agreement.

       

      “Existing
        Technology”
        means
        all Patent Rights and Know-How of Licensor in the Field existing as of the
        Effective Date, including without limitation, the Patent Rights and Know-How
        listed on Exhibit
        B
        hereto.

       

      “Field”
        means
        HCV therapeutics and diagnostics.

       

      “Know-How”
        means
        all unpatented or nonpatentable chemical and biological materials (including
        cell lines, antibodies and other biological materials), inventions, ideas,
        data,
        formulations, processes, techniques, specifications, and other trade secrets
        or
        know-how.

       

      “License”
        means
        the exclusive license granted to the Company by Licensor pursuant to Section
        6.1.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      “Licensed
        Product”
        shall
        mean any product that incorporates one or more Antibodies or a part of the
        Licensed Technology for use in the Field.

       

      “Licensed
        Technology”
        means
        the Existing Technology and the Research Technology.

       

      “Net
        Sales”
        shall
        mean the total amount actually received by the Company or its Sublicensees
        from
        the sale of the Licensed Product, in all cases after deduction of (i) sales
        or service taxes (including value added taxes) and other government charges
        to
        the extent applicable to such transaction and not collected separately from
        the
        counterparty to the transaction; (ii) credits or allowances, if any,
        actually granted on account of price adjustments or customary discounts,
        recalls, rejections or return of Licensed Product previously sold; and
        (iii) freight and insurance charges which are separately invoiced.
        Net
        Sales will be calculated using generally accepted accounting
        principles.

       

      “Patent
        Rights”
        means
        (i) all patents and patent applications useful in the Field conceived
        and
        reduced to practice by Licensor during the Research Period and the patents
        and
        patent applications listed in Exhibit
        B
        hereto;
        (ii) all patents and patent applications relating to the Antibodies
        and
        (iii) any divisionals, continuations, continuations-in-part, reissues,
        reexaminations, extensions or other governmental actions which extend any
        of the
        subject matter of the patent applications or patents in (i) or (ii) above,
        and any substitutions, confirmations, registrations or revalidations of any
        of
        the foregoing, in each case, which is owned or controlled, in whole or part,
        by
        license, assignment or otherwise by Licensor during the term of this
        Agreement.

       

      “Research”
        means
        the research to be undertaken at the laboratories, and under the supervision
        of
        *****, as specified in the work plan attached hereto to Exhibit
        C.
        

       

      “Research
        Period”
        means
        the period commencing on the Effective Date and, unless extended by written
        agreement of the parties or sooner terminated as provided herein, terminating
        on
        the first anniversary of the Effective Date.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed
        separately with the Commission.

      “Research
        Technology”
        means
        Patent Rights and Know-How created, discovered or developed by Licensor during
        the Research Period or as a result of the Research during the three-month
        period
        following the Research Period.

       

      “Sublicensee”
        shall
        mean a third party to whom the Company has granted a license or sublicense
        to
        make, have made, import, use, offer for sale or sell a Licensed
        Product.

       

      2.  Performance
        of Research 

       

      2.1.  In
        consideration of the aggregate sum of ***** to be paid by the Company to
        Licensor *****, Licensor shall perform, or cause to be performed, the Research
        during the Research Period.

       

      2.2.  In
        further consideration of this Agreement, XTL agrees to pay consulting fees
        in
        the aggregate sum of *****, to be paid by the Company to *****.

       

      2.3.  During
        the Research Period, Licensor shall not collaborate with any third party
        in the
        Field; provided, however, that the Licensor shall have the right to collaborate
        with academic partners for research purposes only.

       

      2.4.  In
        further consideration of the sums to be paid to Licensor ***** under Section
        2.1
        and Section 2.2, respectively, and the royalties payable to Licensor under
        Section 6 below, Licensor shall provide the Company with Antibodies
        pursuant to a Materials Transfer Agreement in the form attached hereto as
        Exhibit
        D.

       

      2.5.  During
        the Research Period, Licensor shall provide XTL employees access to the
        laboratories where the Research is being conducted and shall instruct them
        on
        how to practice the Licensed Technology.

       

      2.6.  The
        Company shall provide Licensor antigens for HCV and access to its animal
        models
        to screen antibodies for HCV and shall also provide any necessary Know-How
        related thereto. Any such XTL Know-How shall be treated by Licensor as
        confidential information subject to the obligations of Section 8.1
        below.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      3.  Reporting
         

       

      Licensor
        will submit to the Company a detailed written report on the progress of the
        Research ***** during the Research Period, within 30 days of the end of each
        ***** period, and a written report summarizing the results of the Research
        within 60 days of the end of the Research Period. Further, prompt written
        reports will be
        submitted by Licensor to the Company on each significant development in the
        Research during the Research Period and for the three-month period
        thereafter.

       

      4.  Title
        

       

      Subject
        to the License granted to the Company hereunder, it is hereby agreed that
        all
        right, title and interest in and to the Licensed Technology shall vest in
        Licensor, exclusively. All right, title and interest in and to the Company’s
        animal models shall be retained by the Company, exclusively, and no license
        or
        other right to such technology is granted or implied hereby.

       

      5.  Patents
        and Patent Applications

       

      5.1.  The
        parties shall consult with one another regarding the filing of patent
        applications in respect of any portion of the Licensed Technology including,
        but
        without limitation, the content and the timing of the filing of such
        applications. The Company shall have primary responsibility for the preparation,
        filing, prosecution and maintenance of such patent applications through counsel
        of its choice. In the event the Company decides not to pursue such preparation,
        filing, prosecution or maintenance, it shall so inform Licensor in writing,
        and
        Licensor shall assume responsibility for such preparation, filing, prosecution
        and maintenance through counsel of its choice reasonably satisfactory to
        the
        Company. The Company shall bear all costs and fees related to the preparation,
        filing, prosecution and maintenance of the Patent Rights.

       

      5.2.  The
        Company shall have the right to take such action as shall be necessary to
        protect or to sue for infringement of any Patent Rights. At its option, the
        Company may bring suit against an infringer and join Licensor as a party
        plaintiff in any such suit. At the request of the Company, Licensor shall
        also
        take such action as the Company shall deem necessary to protect any Patent
        Rights. All costs (including legal costs and other sums awarded to the
        counter-party in such action) involved in any action taken at the Company’s
        request, or by the Company, shall be borne by the Company exclusively. Any
        recovery in any such action shall be retained by the Company
        ***** and by Licensor *****, after the deduction of all legal costs and
        expenses.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      6.  License

       

      6.1.  Subject
        to the terms and conditions hereinafter set forth, Licensor hereby grants
        the
        Company an exclusive worldwide license, with the right to sublicense, under
        the Licensed Technology to develop, make, have made, use, import, offer for
        sale
        or sell the Licensed Product.

       

      6.2.  The
        License shall remain in force (if not previously terminated according to
        the
        provisions of this Agreement) until the later of the date of expiry of the
        last
        to expire of the Patent Rights or the twentieth anniversary of the Effective
        Date.

       

      7.  Royalties

       

       

      7.1.  In
        consideration of the License, the Company shall pay Licensor a royalty of
        *****
        of all Net Sales. In the event the Company shall have to pay a royalty to
        a
        third party to commercialize the Licensed Product, the Company may reduce
        royalty payments on Net Sales to Licensor by ***** royalty paid by the Company
        to such third party; provided that the Company’s royalty paid to Licensor on Net
        Sales shall not be less than *****. 

       

      7.2.  In
        consideration of the License, the Company shall also pay Licensor ***** of
        any
        milestone payments received by the Company from its Sublicensees. In the
        event
        the Company shall have to pay a license fee or royalty to a third party to
        commercialize the Licensed Product, the Company may credit against the amounts
        otherwise due Licensor on milestones, ***** made to such third party; provided
        that the percentage of milestone payments paid to Licensor shall not be less
        than *****.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      7.3.  Amounts
        payable to Licensor under this Section 7 shall be paid to Licensor
        on a
        quarterly basis and no later than ***** after the end of each calendar quarter,
        commencing with the first calendar quarter in which any Net Sales or milestone
        payments are received; provided, however, payments on Net Sales by Sublicensees
        shall be paid to Licensor no later than ***** after the end of the calendar
        quarter when such payments are received by the Company. The Company shall
        take
        all reasonable actions as shall be necessary to protect the interests of
        Licensor to receive royalties hereunder, including the submission of reports
        and
        the maintenance of detailed accounts substantiating the calculations of
        royalties being paid to Licensor. Licensor is authorized to appoint an
        independent certified public accountant reasonably acceptable to the Company
        to
        audit such accounts during normal business hours and upon reasonable advance
        notice, solely for the purpose of verifying the accuracy of the payment
        calculations made. Such inspection shall be at Licensor’s sole expense unless it
        reveals an underpayment of at least ***** of the amount due, in which case
        the
        reasonable costs of such inspection shall be promptly reimbursed by the Company
        together with prompt payment for any unpaid amounts that are discovered.
        The
        Company shall pay to Licensor interest on amounts payable to Licensor from
        the
        date such payments were due at the base rate of the German Federal Bank plus
        ***** per annum.

       

      8.  Confidentiality

       

      8.1.  The
        Company and Licensor each shall use reasonable care to avoid disclosure of
        the
        Licensed Technology to any third party, and each party shall be liable to
        the
        other for unauthorized disclosure or failure to exercise such reasonable
        care.
        Neither party shall have any obligation with respect to the Licensed Technology
        to the extent that it (a)  is in the public domain at the Effective
        Date or
        becomes part of the public domain thereafter other than through a violation
        of
        this undertaking of confidentiality, (b) was known to such party at the time
        of
        disclosure, or (c) was subsequently disclosed to such party by a third
        party not in breach of any confidentiality obligations. 

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed
        separately with the Commission.

       

      8.2.  In
        addition to and without derogating from the foregoing, the Company undertakes
        not to use the names of Licensor ***** in any advertising, sales literature,
        promotional material or other publications, but excluding private placement
        memoranda and public offering registration statements, without the prior
        written
        approval of Licensor (such approval not to be unreasonably withheld or delayed).
        Once an approval has been granted by Licensor to a certain form of words
        for use
        in a particular context, then the same form of words can be used again by
        the
        Company in the same context, without further approval from
        Licensor.

       

      8.3.  For
        the
        removal of doubt, nothing in Sections 8.1 and 8.2 above contained
        shall be
        deemed to prevent the Company from mentioning the names of Licensor *****,
        or to
        prevent the Company from disclosing any information, where such mention or
        disclosure is to competent authorities for the purposes of obtaining approval
        or
        permission for the exercise of the License or is in the fulfillment of any
        legal
        duty owed to any competent authority.

       

      8.4.  The
        obligations of Licensor under Section 8.1 above to the contrary
        notwithstanding, it is hereby expressly agreed that ***** shall have the
        right
        to (and, with ***** consent, his students shall have the right to) publish
        articles relating to the Licensed Technology in scientific publications,
        provided that at least ***** before the intended date of such publication,
        the
        text thereof shall be submitted to the Company in order to enable it to file,
        or
        request the filing of, a patent application relating to the subject-matter
        of
        the article before the publication takes place. Licensor shall, and shall
        use
        its reasonable efforts to cause ***** to use its or his, as the case may
        be,
        reasonable efforts to include the name of the Company in any such article
        or
        publication. 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      9.  No
        Assignment 

       

      Except
        as
        expressly provided herein, the Company may not assign all or any of its rights
        or obligations under this Agreement without the prior written consent of
        Licensor, which shall not be unreasonably withheld or delayed, except that
        the
        Company may, without such consent, assign this Agreement and its rights and
        obligations under this Agreement, in whole or in part, to its Affiliates,
        to any
        purchaser or other transferee of all or substantially all of its assets in
        the
        line of business to which this Agreement pertains, or to any successor
        corporation resulting from any merger or consolidation of the Company with
        or
        into another entity.

       

      10.  Term
        and Termination

       

      10.1.  Unless
        previously terminated or extended in accordance with the provisions hereof,
        the
        respective obligations of the parties hereto under Sections 2 and
        3 above
        shall terminate at the expiration of the Research Period. The Company may
        extend
        the Research Period by one additional year by the giving of written notice
        of
        extension to Licensor at ***** days prior to the expiration of the initial
        Research Period. Upon the giving of such notice, the parties shall negotiate,
        in
        good faith, the funding obligations of the Company during, and with respect
        to,
        such extended period. The provisions of this Section 10.1 will not
        affect
        the rights of the parties with respect to the License or the Licensed
        Technology, which will be governed by Section 10.2 below.

       

      10.2.  Unless
        this Agreement is previously terminated in accordance with this Section 10.2,
        the License shall continue in full force and effect as set forth in Section
        6.2. Either Licensor or the Company may terminate this Agreement and the
        License
        hereunder by serving a written notice to that effect on the other, upon or
        after
        the winding up or insolvency of the other, or upon or after the commitment
        of a
        material breach hereof by the other (which breach cannot be cured or, if
        curable, has not
        been
        cured by the party in breach within 60 days after receipt of a written notice
        to
        the other party in respect of such breach); and in such event this Agreement
        and
        the License hereunder shall be terminated forthwith upon receipt of notice
        as
        aforesaid.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      10.3.  Upon
        termination of this Agreement and the License thereunder pursuant to
        Section 10.2, all rights to the Licensed Technology vested in the
        Company
        shall revert to Licensor, and the Company shall not thereafter be entitled
        to
        make any use of the Licensed Technology. The termination of this Agreement
        for
        any reason shall not relieve the parties of any obligations to make payments
        thereunder which shall have accrued prior to such termination.

       

      11.  Representations

       

      11.1.  The
        Company hereby represents to Licensor as follows:

       

      (a)  The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Israel. The Company has been granted all
        requisite power and authority to carry on its business and to own and operate
        its properties and assets. The execution, delivery and performance of this
        Agreement have been duly authorized by the Board of Directors of the
        Company;

       

      (b)  There
        is
        no pending or, to the Company’s knowledge, threatened litigation involving the
        Company which would have any material adverse effect on this Agreement or
        on the
        Company’s ability to perform its obligations hereunder; and

       

      (c)  There
        is
        no indenture, contract, or agreement to which the Company is a party or by
        which
        the Company is bound which prohibits or would prohibit the execution and
        delivery by the Company of this Agreement or the performance or observance
        by
        the Company of any material term or condition of this Agreement.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      11.2.  Licensor
        represents to the Company as follows:

       

      (a)  The
        execution and delivery of this Agreement have been duly authorized by all
        requisite action on the part of Licensor and Licensor has all right, power
        and
        authority necessary to grant the License and perform its other obligations
        hereunder.

       

      (b)  There
        is
        no pending or, to Licensor’s knowledge, threatened litigation involving Licensor
        which would have any material adverse effect on this Agreement or Licensor’s
        ability to perform its obligations hereunder;

       

      (c)  To
        the
        best of Licensor’s knowledge, Licensor holds exclusive worldwide rights in and
        to the Existing Technology and, as of the Effective Date,
        there are no restrictions on its rights to license the Existing Technology
        to
        the Company. Licensor has not received notice of, and has no knowledge of
        any
        basis for, any claim that the Existing Technology infringes on any patent
        or
        other intellectual property right or trade secret of any third party;
        and

       

      (d)  Licensor
        has not previously granted, and will not grant, during the term of this
        Agreement, any right, license or interest in or to the Licensed Technology
        in
        the Field or with respect to the Licensed Product.

       

      12.  Governing
        Law and Forum 

       

      This
        Agreement shall be governed by the laws of England and Wales. The parties
        agree
        to submit to the jurisdiction of the courts of London, England.

       

      13. Entire
        Agreement 

       

      This
        Agreement, together with the Exhibits constitutes the entire agreement between
        the parties pertaining to the subject matter hereof. The parties expressly
        intend that this Agreement shall supersede that certain Research and License
        Agreement between the parties dated ***** and that the terms of this Agreement
        shall apply to the Antibodies listed on Exhibit
        A.
        Any
        addition or amendment of this Agreement shall not be effective unless in
        writing
        signed by the authorized signatories of both parties.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      13.  Notices
        

       

      All
        notices shall be in writing mailed via certified mail, return receipt requested,
        or overnight express mail, courier providing evidence of delivery, addressed
        as
        follows, or to such other address as may be designated by written notice
        so
        given from time to time:

       

      
        	
                If
                  to Licensor

              	
                DRK
                  Blutspendediendst Baden-Wurttenberg, Institut Ulm

              
	 	
                Helmholtzstrasse
                  10

              
	 	
                89081
                  Ulm

                Germany

              
	 	
                Attention:
                  ***** 

              
	 	 
	
                If
                  to the Company:

              	
                XTL
                  Pharmaceuticals Ltd.

              
	 	
                Kiryat
                  Weizmann

              
	 	
                P.O.
                  Box 370

              
	 	
                Rehovot
                  76100, Israel

              
	 	
                Attention:
                  Chief Executive Officer

              
	 	 

      

      Notices
        shall be deemed given as of the date received.

       

      
 

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed
        separately with the Commission.

      
 

      IN
        WITNESS WHEREOF the parties hereto have set their signatures as of the 18th
        day
        of April, 2000.

       

      
        	
                DRK
                  BLUTSPENDEDIENDST BADEN-WURTTENBERG, INSTITUT ULM

              	
                XTL
                  BIOPHARMACEUTICALS, LTD.

              
	 	 
	 	 
	
                By:  
                  _________________________________     

              	
                By:  
                  _________________________________      

              
	 	 
	
                Title:
                  _________________________________      

              	
                Title:
                  _________________________________      

              

      

      

      
         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      Exhibit
        A

      

      *****

      

      *****  *****

      *****  *****

      *****  *****

      *****  *****

      *****  *****

      

      Note
        that
        confidential
        treatment has been requested and one (1) page of material from this Exhibit
        A
        has been omitted and filed separately with the Commission.

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      Exhibit
        B

      

      Existing
        Technology

      

      

      *****

       

      *****:

       

      

      *****

       

      *****

       

      *****

       

      *****

       

      *****

       

      *****

       

      *****

       

      *****

       

      *****

       

      *****

       

      

      Note
        that
        confidential
        treatment has been requested and one (1) page of material from this Exhibit
        B
        has been omitted and filed separately with the Commission.

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      Exhibit
        C

      

      Work
        Plan

      

      

      
        	
                -

              	
                *****

              

      

       

      
        	
                -

              	
                *****

              

      

       

      
        	
                -

              	
                *****

              

      

       

      
        	
                -

              	
                *****

              

      

       

      
        	
                -

              	
                *****

              

      

       

      
        	
                -

              	
                *****

              

      

       

      
        	
                -

              	
                *****

              

      

       

      Note
        that
        confidential
        treatment has been requested and one (1) page of material from this Exhibit
        C
        has been omitted and filed separately with the Commission.

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      Exhibit
        D

      

      MATERIALS
        TRANSFER AGREEMENT

      

      *****.

      

      1. *****.

      

      2. *****.

      

      3. *****.

      

      4. *****.

      

      5. *****.

      

      

      

      6. *****.

      

      7. *****.

      

      8. *****.

      

      9. *****.

      

      10. *****.

      

      11. *****.

      

      12. *****.

      

      13. *****:

      

      
        	
                *****

              	
                *****

              
	 	
                *****

              
	 	
                *****

              
	 	
                *****

              
	 	 
	
                *****

              	
                *****

              
	 	
                *****

              
	 	
                *****

              
	 	
                *****

              
	 	
                *****

              
	 	 
	 	 

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      *****.

       

      *****.

       

      
        	
                *****

              	
                *****

              
	 	 
	 	 
	 	 
	
                *****

                 

              	
                *****

                 

              
	 	 
	
                *****

                 

              	
                *****

                 

              
	 	 
	
                *****

              	
                *****

              
	 	 
	
                *****

              	
                *****

              

      

      

      Note
        that
        confidential
        treatment has been requested and two pages of material from this Exhibit
        D have
        been omitted and filed separately with the Commission.

      
         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

      

      *****
        Confidential material redacted and filed separately with the
        Commission.

       

      Exhibit
        1

      

      

      *****

      

      

      1. *****

      

      *****

      *****

      *****

      *****

      *****

      *****

      *****

      

      

      2. *****

      

      
        	
                *****

              	
                *****

              	
                *****

              	
                *****

              
	
                *****

              	
                *****

              	
                *****

              	
                *****

              
	
                *****

              	
                *****

              	
                *****

              	
                *****

              
	
                *****

              	
                *****

              	
                *****

              	
                *****

              
	
                *****

              	
                *****

              	
                *****

              	
                *****

              
	
                *****

              	
                *****

              	
                *****

              	
                *****

              
	
                *****

              	
                *****

              	
                *****

              	
                *****

              
	
                *****

              	
                *****

              	
                *****

              	
                *****

              

      

      

      

      3. *****

      

      *****

      

      *****.

      

      Note
        that
        confidential
        treatment has been requested and one (1) page of material from this Exhibit
        1
        has been omitted and filed separately with the Commission.

       

       

      
        
          
          

        

        
          19Unassociated Document

    

    Confidential
      Treatment Requested. Confidential portions of this document have been redacted
      and separately filed with the Commission.

     

    *****
      Confidential material redacted and filed separately with the
      Commission

    LICENSE
      AGREEMENT

     

    Effective
      as of September
      12,
      2003
      ("Effective Date"), THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR
      UNIVERSITY, a body having corporate powers under the laws of the State of
      California ("STANFORD"), and XTL Biopharmaceuticals Ltd., a corporation
      organized under the laws of Israel having a principal place of business at
      Kiryat Weizmann, P.O. Box 370, Rehovot, 76100 Israel ("LICENSEE"), agree as
      follows:

     

    1.
      BACKGROUND

    
      	
              1.1

            	
              STANFORD
                has an assignment of HCV Monoclonal Antibodies Recognizing Divergent
                HCV
                Genotypes from the laboratory of
                *****.

            

    

    
      	
              1.2

            	
              STANFORD
                has certain technical data and information as herein defined
                ("Technology") pertaining to
                Inventions.

            

    

    
      	
              1.3

            	
              STANFORD
                desires to have the Technology and Inventions developed and marketed
                at
                the earliest possible time in order that products resulting therefrom
                may
                be available for public use and
                benefit.

            

    

    
      	
              1.4

            	
              STANFORD
                and LICENSEE previously entered into an agreement dated *****,
                giving LICENSEE *****,
                which the parties agree shall be of no further force and effect upon
                their
                execution of this Agreement.

            

    

    
      	
              1.5

            	
              LICENSEE
                now desires to
                receive, and STANFORD desires to grant to LICENSEE, an exclusive
                license
                under said Technology, Inventions, and Licensed Patents to develop,
                manufacture, use, offer
                for sale,
                sell and import Licensed Products in the field
                of
                use of human therapeutic
                applications.

            

    

    
      	1.6           
              	
              The
                Technology and Inventions were made in the course of research supported
                 by
                *****.

            

    

     

    2.
      DEFINITIONS

    
      	
              2.1

            	
              “Affiliate”
                means any corporation or other entity that directly, or indirectly
                through
                one or more intermediaries, controls, is controlled by, or is under
                common
                control with the designated party, where “control” shall mean ownership of
                at least fifty percent (50%) (or such lesser percentage as may be
                the
                maximum that may be owned by foreign interests pursuant to the laws
                of the
                country of incorporation or domicile) of the voting securities of
                such
                corporation or other entity entitled to vote in the election of directors
                or corresponding managing
                authority.

            

    

    
      	
              2.2

            	
              “Exclusive”
                means that, subject to Article 4, STANFORD shall not grant further
                licenses in the Licensed Territory in the Licensed Field of
                Use.

            

    

    
      	
              2.3

            	
              "Licensed
                Antibodies" means those antibodies set forth on Schedule
                2.2
                hereto.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      

        *****
          Confidential material redacted and filed separately with the
          Commission.

      

       

    

    
      	
              2.4

            	
              "Licensed
                Field of Use" means use of the Licensed Patents for human therapeutics
                other than active immunization

            

    

    
      	
              2.5

            	
              "Licensed
                Patents" means any Letters Patent issued upon STANFORD's U.S. Patent
                Application, ***** and/or any additional patent applications, divisions,
                continuations,
                foreign
                applications, counterparts or reissues of any of the foregoing.
                

            

    

    
      	
              2.6

            	
              "Licensed
                Products" means any product or part thereof in the Licensed
                Field
                of
                Use, the manufacture, use,
                offer for sale,
                sale or import of which:

            

    

    
      	
            	(a)	
              Is
                covered by a valid claim of an issued, unexpired Licensed Patent
                (“Valid
                Claim”) directed to the Inventions. A claim of an issued, unexpired
                Licensed Patent shall be presumed to be valid unless and until it
                has been
                held to be invalid by a final judgment of a court of competent
                jurisdiction from which no appeal can be or is
                taken;

            

    

    
      	
            	(b)	
              Is
                covered by any claim being prosecuted in a pending application directed
                to
                the Inventions; or

            

    

    
      	
            	(c)	
              Incorporates
                any of the Technology.

            

    

    
      	
              2.7

            	
              "Licensed
                Territory" means *****. 

            

    

    
      	
              2.8

            	
              "Net
                Sales" means the gross
                revenue received by LICENSEE and/or sublicensees from Licensed Products,
                less the following items but only insofar as they actually pertain
                to the
                disposition of such Licensed Products by LICENSEE or sublicensees,
                are
                included in such gross revenue, and are separately
                billed:

            

    

    
      	
            	(a)	
              Import,
                export, excise and sales taxes, and customs
                duties;

            

    

    
      	
            	(b)	
              Costs
                of insurance, packing, and transportation from the place of manufacture
                to
                the customer's premises or point of
                installation;

            

    

    
      	
            	(c)	
              Costs
                of installation at the place of use;
                and

            

    

    
      	
            	(d)	
              Credit
                for returns, allowances, or trades.

            

    

    
      	
              2.9

            	
              "Technology"
                means existing technical data, biological materials and information,
                including, but not limited to, the information contained in the patent
                application pertaining to the Inventions and provided to the LICENSEE
                whether or not it is of a confidential nature. Biological materials
                include *****.

            

    

     

    3.
      GRANT

    
      	
              3.1

            	
              STANFORD
                hereby grants and LICENSEE hereby accepts a license under
                the Licensed Patents and
                Technology in
                the Licensed Field
                of
                Use to make, use, offer
                for sale,
                sell
                and import Licensed Products in the Licensed
                Territory.

            

    

    
      	
              3.2
                

            	
              Subject
                to Sections 3.3 and 3.4,
                the license rights granted hereunder,
                including the right to sublicense pursuant to Article 13, in the
                Licensed
                Field
                of
                Use
                are Exclusive
                in the Licensed Territory. 

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

      

        *****
          Confidential material redacted and filed separately with the
          Commission.

      

       

    

    
      	
              3.3

            	
              The
                license rights granted with respect to those Licensed Antibodies
                identified on Schedule
                2.2 *****.

            

    

    
      	
              3.4

            	
              STANFORD
                shall have the right to practice the Inventions and use the Technology
                only for its own bona fide research, including sponsored research
                and
                collaborations. STANFORD shall have the right to publish any information
                included in Technology and Licensed
                Patents.

            

    

     

    4.
      GOVERNMENT RIGHTS

    
      	 	
              This
                Agreement is subject to all of the terms and conditions of Title
                35 United
                States Code Sections 200 through 204, including an obligation that
                Licensed Products sold or produced in the United States be "manufactured
                substantially in the United States," and LICENSEE agrees to take
                all
                reasonable action necessary on its part as licensee to enable STANFORD
                to
                satisfy its obligation thereunder, relating to
                Inventions.

            

    

     

    5.
      DILIGENCE

    
      	
              5.1

            	
              As
                an inducement
                to
                STANFORD to enter into this Agreement, LICENSEE agrees to use commercially
                reasonable efforts and diligence to proceed with the development,
                manufacture, offering for sale, and sale or lease of Licensed Products
                and
                to diligently develop markets for the Licensed Products.
                

            

    

    
      	
              5.2

            	
              LICENSEE
                shall provide a development plan for each Licensed Antibody by
                *****.
                In the event that LICENSEE does not provide a development plan for
                *****
                Licensed Antibodies, the license rights granted hereunder with respect
                to
                such Licensed Antibody(ies) only shall become nonexclusive upon
                *****
                notice from STANFORD. 

            

    

    
      	
              5.3

            	
              If
                LICENSEE or its sublicensees have not made substantial progress on
                or
                completed preclinical studies that serve as a basis for LICENSEE’s
                development plan with respect to the Licensed Antibody *****,
                LICENSEE agrees that the license rights granted hereunder with respect
                to
                *****
                only shall become nonexclusive upon *****
                notice from STANFORD. If LICENSEE or its sublicensees have not made
                substantial progress on or completed preclinical studies that serve
                as a
                basis for LICENSEE’s development plan with respect to any other Licensed
                Antibody by *****,
                LICENSEE agrees that the license rights granted hereunder with respect
                to
                such Licensed Antibody only shall become nonexclusive upon *****
                notice
                from STANFORD.

            

    

    
      	
              5.4

            	
              If
                LICENSEE or its sublicensees have not initiated *****,
                LICENSEE agrees that the license rights granted hereunder with respect
                to
                *****
                only
                shall become nonexclusive upon *****
                notice
                from STANFORD. If LICENSEE or its sublicensees have not initiated
                *****,
                LICENSEE agrees that the license rights granted hereunder with respect
                to
                such Licensed Antibody only shall become nonexclusive upon *****
                notice
                from Stanford.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    
      	
              5.5

            	
              If
                LICENSEE or its sublicensees have not initiated *****,
                LICENSEE agrees that the license rights granted hereunder with respect
                to
                *****
                only
                shall become nonexclusive upon *****
                notice
                from STANFORD. If LICENSEE or its sublicensees have not initiated
                *****,
                LICENSEE agrees that the license rights granted hereunder with respect
                to
                such Licensed Antibody only shall become nonexclusive upon *****
                notice
                from Stanford.

            

    

    
      	
              5.6

            	
              LICENSEE
                and STANFORD agree to meet *****,
                to discuss and agree upon further diligence milestones, including
                the date
                by which a Licensed Product will first be available for commercial
                sale.

            

    

    
      	
              5.7

            	
              If
                neither LICENSEE nor any of its sublicensees has sold a Licensed
                Product
                for a period of *****
                after
                such Licensed Product is first offered for commercial sale, the license
                rights granted hereunder with respect to such Licensed Product shall
                become nonexclusive upon *****
                notice
                from STANFORD.

            

    

    
      	
              5.8

            	
              Progress
                Report - *****
                until
                LICENSEE markets a Licensed Product, LICENSEE shall make a written
                *****
                report
                to STANFORD covering *****,
                regarding the progress of LICENSEE toward commercial use of Licensed
                Products. Such report shall include, as a minimum, information sufficient
                to enable STANFORD to satisfy reporting requirements of the U.S.
                Government and for STANFORD to ascertain progress by LICENSEE toward
                meeting the diligence requirements of this Article
                5.

            

    

     

    6.
      ROYALTIES

    
      	
              6.1

            	
              LICENSEE
                agrees to pay to STANFORD *****
                as
                reimbursement for patent prosecution expenses incurred by STANFORD
                prior
                to the Effective Date, such payment to be made to STANFORD within
                *****
                of
                the Effective Date.

            

    

    
      	
              6.2

            	
              Upon
                the first anniversary of the Effective Date, and
                each
                anniversary thereafter, LICENSEE shall pay to STANFORD a yearly royalty
                of
                *****.
                Said yearly royalty payments are nonrefundable, but they are creditable
                against earned royalties to the extent provided in Section
                6.6.

            

    

    
      	
              6.3

            	
              In
                addition, LICENSEE
                shall pay STANFORD earned royalties on Net Sales of *****
                in
                countries where the Licensed Product is the subject of a Valid Claim.
                For
                any period in which the Licensed Product is not the subject of a
                Valid
                Claim in a country, the royalty rate shall be reduced to *****
                in
                such country for that period. 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    
      	
              6.4

            	
              Notwithstanding
                Section 6.3, if a Licensed Product is part of a
                combination product in which the Licensed Product is combined with
                other
                material which contributes in some material respect to the functioning
                or
                efficacy of the product as a whole, then the earned royalties shall
                be
                calculated as follows: *****.

            

    

    
      	
              6.5

            	
              Notwithstanding
                Sections 6.3 and 6.4, earned royalty rates payable to STANFORD shall
                be
                reduced by *****
                with respect to any Licensed Product for which LICENSEE’s license rights
                hereunder have become nonexclusive pursuant to Article
                5.

            

    

    
      	
              6.6

            	
              Creditable
                payments under this Agreement shall be an offset to LICENSEE against
                up to
                *****
                of
                each earned royalty payment which LICENSEE would be required to pay
                pursuant to Section 6.3 until the entire credit is
                exhausted.

            

    

    
      	
              6.7

            	
              LICENSEE
                shall also pay STANFORD the following one-time milestone
                payments:

            

    

    (a) *****;
      and

    (b) *****.

    
      	
              6.8

            	
              If
                this Agreement is not terminated in accordance with other provisions
                hereof, LICENSEE shall be obligated to pay royalties hereunder
                for *****.
                LICENSEE shall be obligated to pay royalties on all Licensed Products
                that
                are either sold or produced under the licenses
                granted in Article 3, *****.

            

    

    
      	
              6.9

            	
              The
                royalty on sales in currencies other than U.S. Dollars shall be calculated
                using the appropriate foreign exchange rate for such currency quoted
                by
                the Bank of America (San Francisco) foreign exchange desk, on the
                close of
                business on the last banking day of each *****.
                Royalty payments to STANFORD shall be in U.S. Dollars. *****.

            

      	6.10	Within *****
              after receipt of a statement from STANFORD, LICENSEE shall reimburse
              STANFORD for all costs incurred by Stanford in connection with the
              preparation, filing and prosecution of all Licensed Patents after the
              Effective Date.

    

     

    
      
         

      

    

    7.
      ROYALTY REPORTS, PAYMENTS, AND ACCOUNTING

    
      	
              7.1

            	
              Beginning
                with the first sale of a Licensed Product, LICENSEE shall make written
                reports (even if there are no sales) and earned royalty payments
                to
                STANFORD within *****
                after the end of each *****.
                This report shall be in the form of the report of Appendix B and
                shall
                state *****.
                Concurrent with the making of each such report, LICENSEE shall include
                payment due STANFORD of royalties for *****.
                

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    
      	
              7.2

            	
              LICENSEE
                also agrees to make a written report to STANFORD within *****
                after the expiration of the license pursuant to Section 14.1. LICENSEE
                shall continue to make reports pursuant to the provisions of this
                Section
                7.2 concerning royalties payable in accordance with Article 6 in
                connection with the sale of Licensed Products after expiration of
                the
                license, until such time as all such Licensed Products produced under
                the
                license have been sold or destroyed. Concurrent with the submittal
                of each
                post-termination report, LICENSEE shall pay STANFORD all applicable
                royalties.

            

    

    
      	
              7.3

            	
              LICENSEE
                agrees to keep and maintain records for a period of *****
                showing the manufacture, offer
                for sale, sale,
                use, and other disposition of products sold or otherwise disposed
                of under
                the license herein granted. Such records will include general ledger
                records showing cash receipts and expenses, and records which include
                production records, customers, serial numbers, and related information
                in
                sufficient detail to enable the royalties payable hereunder by LICENSEE
                to
                be determined. LICENSEE further agrees to permit its books and records
                to
                be examined by STANFORD from time to time to the extent necessary
                to
                verify reports provided for in Section 7.1 and 7.2,
                but Stanford shall not conduct more than *****.
                Such examination is to be made by STANFORD or its designee, at the
                expense
                of STANFORD, except in the event that the results of the audit reveal
                an
                underreporting of royalties due STANFORD of *****
                or
                more, then the audit costs shall be paid by
                LICENSEE.

            

    

     

    8.
      WARRANTIES; NEGATION OF WARRANTIES

    
      	
              8.1

            	
              STANFORD
                represents and warrants that it has not granted rights or licenses
                to the
                Inventions that are inconsistent with those granted to LICENSEE
                hereunder.

            

    

    
      	
              8.2

            	
              Nothing
                in this Agreement is or shall be construed
                as:

            

    

    
      	
            	(a)	
              A
                warranty or representation by STANFORD as to the validity or scope
                of any
                Licensed Patents;

            

    

    
      	
            	(b)	
              A
                warranty or representation that anything made, used, sold, or otherwise
                disposed of under any license granted in this Agreement is or will
                be free
                from infringement of patents, copyrights, and other rights of third
                parties;

            

    

    
      	
            	(c)	
              An
                obligation to bring or prosecute actions or suits against third parties
                for infringement, except to the extent and in the circumstances described
                in Article 12; 

            

    

    
      	
            	(d)	
              Granting
                by implication, estoppel, or otherwise any licenses or rights under
                patents or other rights of STANFORD or other persons other than Licensed
                Patents, regardless of whether such patents or other rights are dominant
                or subordinate to any Licensed Patents;
                or

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    (e) An
      obligation to furnish any technology or technological information other than
      the
      Technology.

    
      	
              8.3

            	
              Except
                as expressly set forth in this Agreement, STANFORD MAKES NO
                REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS
                OR
                IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY
                OR
                FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE LICENSED
                PRODUCTS
                WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS
                OR ANY
                OTHER EXPRESS OR IMPLIED WARRANTIES.

            

    

    
      	
              8.4

            	
              LICENSEE
                agrees that nothing in this Agreement grants LICENSEE any express
                or
                implied license or right under or to *****.

            

    

     

    9.
      INDEMNITY

    
      	
              9.1

            	
              LICENSEE
                agrees to indemnify, hold harmless, and defend STANFORD, Stanford
                Health Services and Stanford Hospitals and Clinics and their respective
                trustees, officers, employees, students, and agents against any and
                all
                claims for death, illness, personal injury, property damage, and
                improper
                business practices arising out of the manufacture, use, sale, or
                other
                disposition of Inventions, Licensed Patents, Licensed Products, or
                Technology by LICENSEE or sublicensees, or their
                customers.

            

    

    
      	
              9.2

            	
              Except
                for damages arising out of, or related to, STANFORD’s breach of Section
                3.4, STANFORD
                shall not be liable for any indirect, special, consequential or other
                damages whatsoever, whether grounded in tort (including negligence),
                strict liability, contract or otherwise. STANFORD shall not have
                any
                responsibilities or liabilities whatsoever with respect to Licensed
                Products.

            

    

    
      	
              9.3

            	
              LICENSEE
                shall at all times comply, through insurance or self-insurance, with
                all
                statutory workers' compensation and employers' liability requirements
                covering any and all employees with respect to activities performed
                under
                this Agreement.

            

    

    
      	
              9.4

            	
              In
                addition to the foregoing, LICENSEE shall maintain, or cause its
                sublicensees to maintain, during the term of this Agreement, Comprehensive
                General Liability Insurance, including Products Liability Insurance,
                with
                reputable and financially secure insurance carriers to cover the
                activities of LICENSEE and its sublicensees. Upon initiation of
                *****
                and shall include as additional insureds STANFORD, Stanford Health
                Services, Stanford Hospitals and Clinics, and their trustees, directors,
                officers, employees, students, and agents who have been involved
                directly
                or indirectly with the Technology, the Inventions or the Licensed
                Products. 
                Such insurance shall be written to cover claims incurred, discovered,
                manifested, or made during or after the expiration of this Agreement
                and
                should be placed with carriers with ratings of at least A- as rated
                by
                A.M. Best. Within *****
                of
                the Effective Date of this Agreement, LICENSEE shall furnish a Certificate
                of Insurance evidencing primary coverage and additional insured
                requirements and requiring *****
                prior written notice of cancellation or material change to STANFORD.
                LICENSEE shall advise STANFORD, in writing, that it maintains excess
                liability coverage (following form) over primary insurance for at
                least
                the minimum limits set forth above. All such insurance of LICENSEE
shall
                be primary coverage; insurance of STANFORD, Stanford Health Services,
                and
                Stanford Hospitals and Clinics shall be excess and
                noncontributory.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    10.
      MARKING

    
      	 	
              Prior
                to the issuance of patents on the Inventions, LICENSEE agrees to
                mark
                Licensed Products (or their containers or labels) made, sold, or
                otherwise
                disposed of by it under the license granted in this Agreement with
                the
                words "Patent Pending," and following the issuance of one or more
                patents,
                with the numbers of the Licensed
                Patents.

            

    

     

    11.
      STANFORD NAMES AND MARKS

    
      	 	
              LICENSEE
                agrees not to identify STANFORD in any promotional advertising or
                other
                promotional materials to be disseminated to the public or any portion
                thereof or to use the name of any STANFORD faculty member, employee,
                or
                student or any trademark, service mark, trade name, or symbol of
                STANFORD,
                Stanford Hospitals and Clinics or Stanford Health Services, or that
                is
                associated with any of them, without STANFORD's prior written consent,
                it
                being understood that this limitation shall not apply to any disclosure
                LICENSEE is required to make pursuant to applicable law or regulations.
                Any use of STANFORD's name shall be limited to statements of fact
                and
                shall not imply endorsement of LICENSEE's products or
                services.

            

    

     

    12.
      PROSECUTION OF PATENTS; INFRINGEMENT BY OTHERS: PROTECTION OF
      PATENTS

    
      	
              12.1

            	
              Following
                the Effective Date, LICENSEE will be responsible for preparing, filing
                and
                prosecuting the Licensed Patents for STANFORD’s benefit in the Licensed
                Territory and for maintaining all Licensed Patents. LICENSEE will
                notify
                STANFORD before taking any substantive actions in prosecuting the
                claims,
                and STANFORD will have final approval on how to proceed with any
                such
                actions, which approval shall not be unreasonably withheld or delayed.
                To
                aid LICENSEE in this process, STANFORD will provide information,
                execute
                and deliver documents and do other acts as LICENSEE shall reasonably
                request from time to time. LICENSEE will reimburse STANFORD for STANFORD’s
                reasonable costs incurred in complying with such
                requests.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    
      	
              12.2

            	
              Each
                of the parties shall promptly inform the other of any suspected
                infringement of any Licensed Patents by a third party. During the
                period
                of this Agreement
                in
                which LICENSEE has Exclusive rights in the Licensed Field of
                Use,
                STANFORD and LICENSEE each shall have the right to institute an action
                for
                infringement
                of the Licensed Patents against such third party in accordance with
                the
                following:

            

    

     

     

    
      	
            	(a)	
              If
                STANFORD and LICENSEE agree to institute suit jointly, the suit shall
                be
                brought in both their names, the out-of-pocket costs thereof shall
                be
                borne equally, and any recovery or settlement shall be shared equally.
                LICENSEE and STANFORD shall agree to the manner in which they shall
                exercise control over such action. STANFORD may, if it so desires,
                also be
                represented by separate counsel of its own selection, the fees for
                which
                counsel shall be paid by STANFORD;

            

    

     

    
      	
            	(b)	
              In
                the absence of LICENSEE's agreement to institute a suit jointly,
                STANFORD
                may institute suit, and, at its option, join LICENSEE as a plaintiff.
                If
                STANFORD decides to institute suit, then it shall promptly notify
                LICENSEE
                in writing. LICENSEE's failure to notify STANFORD in writing, within
                *****
                after the date of the notice, that it will join in enforcing the
                patent
                pursuant to the provisions hereof, shall be and be deemed conclusively
                to
                be LICENSEE's assignment to STANFORD of all rights, causes of action,
                and
                damages resulting from any such alleged infringement. STANFORD shall
                bear
                the entire cost of such litigation and shall be entitled to retain
                the
                entire amount of any recovery or settlement;
                and

            

    

     

    
      	
            	(c)	
              In
                the absence of agreement to institute a suit jointly and if STANFORD
                decides not to join in or institute a suit, as provided in (a) or
                (b)
                above, LICENSEE may institute suit. LICENSEE shall bear the entire
                cost of
                such litigation, including out-of-pocket expenses incurred by STANFORD.
                Any recovery in excess of litigation costs will be shared with STANFORD
                as
                follows:

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

      
        *****
          Confidential material redacted and filed separately with the
          Commission.

      

       

    

    
      	 	
              1.

            	
              Any
                payment for past sales will be deemed to be Net Sales and LICENSEE
                will
                pay STANFORD royalties thereon at the rates specified in Section
                6.3
                and;

            

    

    
      	 	
              2.

            	
              Any
                payment which covers future sales will be deemed a sublicense and
                royalties will be shared as specified in Article
                13.

            

    

    LICENSEE
      and STANFORD agree to negotiate in good faith an appropriate compensation to
      STANFORD for any non-cash settlement or non-cash cross-license. STANFORD will
      not share in the portion of the recovery, if any, that is payment for “willful
      infringement.”

    
      	
              12.3

            	
              Should
                either STANFORD or LICENSEE commence a suit under the provisions
                of
                Section 12.2 and thereafter elect to abandon the same, it shall give
                timely notice to the other party who may, if it so desires, continue
                prosecution of such suit, provided, however, that the sharing of
                expenses
                and any recovery in such suit shall be as agreed upon between STANFORD
                and
                LICENSEE.

            

    

     

    13.
      SUBLICENSES

    
      	
              13.1

            	
              LICENSEE
                may grant sublicenses
                to make, have made, use, offer for sale, sell, have sold or offered
                for
                sale, and import Licensed Products in the Licensed
                Territory.

            

    

    
      	
              13.2

            	
              If
                LICENSEE is unable or unwilling to serve or develop a potential market
                or
                market territory for which there is a willing sublicensee, LICENSEE
                will,
                at STANFORD’s request, negotiate in good faith a sublicense for such
                market or potential market
                hereunder.

            

    

    
      	
              13.3

            	
              Any
                sublicenses granted by LICENSEE under this Agreement shall be subject
                and
                subordinate to terms and conditions of this Agreement, except that:
                

            

    

    
      	 	
              (a)

            	
              Any
                sublicensee that is not an Affiliate of LICENSEE may not grant further
                sublicenses without STANFORD’s prior written consent, which shall not be
                unreasonably withheld or delayed, except that such consent shall
                not be
                required with respect to sublicenses to a sublicensee’s Affiliates or
                sublicensess solely to exercise the sublicensee’s rights to have Licensed
                Products made or have Licensed Products sold or offered for sale;
                and
                

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    
      	 	
              (b)

            	
              The
                earned royalty rate specified in the sublicenses may be at higher
                rates
                than the rates in this Agreement (in which event any excess shall
                be
                retained by LICENSEE).

            

    

    
      	
              13.4

            	
              Any
                such sublicenses also shall expressly include provisions substantially
                similar to Articles 7, 8 and 9 for the benefit of STANFORD. In addition,
                any such sublicenses shall survive and provide for the transfer of
                all
                obligations, including the payment of royalties specified in such
                sublicenses, to STANFORD
                or its designee, in the event that this Agreement is
                terminated.

            

    

    
      	
              13.5

            	
              LICENSEE
                agrees to provide STANFORD a copy of any sublicense granted pursuant
                to
                this Article 13.

            

    

    
      	
              13.6

            	
              LICENSEE
                shall pay to STANFORD *****
                of
                all sublicensing income, except earned royalties on sublicensees'
                Net
                Sales, which LICENSEE acknowledges are subject to Section 6.3, and
                any
                milestone payment received by LICENSEE upon *****
                which LICENSEE pays STANFORD the milestone payment set forth in Section
                6.7(a) above. 

            

    

    
      	
              13.7

            	
              LICENSEE
                may grant royalty-free or non-cash sublicenses or cross-licenses
                provided
                LICENSEE pays all royalties due STANFORD from sublicensees' Net
                Sales.

            

    

     

    14.
      TERM; TERMINATION

    
      	
              14.1

            	
              Unless
                terminated earlier pursuant to this Article 14, this Agreement shall
                terminate upon the later of the expiration of the last to expire
                Licensed
                Patent or payment by LICENSEE of the last royalty payment due
                hereunder.

            

    

    
      	
              14.2

            	
              LICENSEE
                may terminate this Agreement or the license rights with respect to
                any
                Licensed Antibody by
                giving STANFORD notice in writing
                at least *****
                in
                advance of the effective date of termination selected
                by LICENSEE.

            

    

    
      	
              14.2

            	
              STANFORD
                may terminate this Agreement if
                LICENSEE:

            

    

    (a) Is
      in
      default in payment of royalty or providing of reports;

    (b) Is
      in
      material breach of any provision hereof; or

    (c) Provides
      any materially false report;

    
      	 	
              and
                LICENSEE fails to remedy any such default, breach, or false report
                within
                *****
                after written notice thereof by
                STANFORD.

            

    

    
      	
              14.3

            	
              Surviving
                any termination or expiration are:

            

    

    (a) LICENSEE's
      obligation to pay royalties accrued or accruable;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    (b) Any
      cause
      of action or claim of LICENSEE or STANFORD, accrued or to accrue, because of
      any
      breach or default by the other party; and

    (c) The
      provisions of Articles 7, 8, and 9 and any other provisions that by their
      nature
      are
      intended to survive.

     

    15.
      DISPOSITION OF LICENSED PRODUCT ON HAND UPON
      TERMINATION

    
      	 	
              Upon
                termination of this Agreement LICENSEE is entitled to dispose of
                all
                previously made or partially made Licensed Product, but no more,
                within a
                period of *****
                provided that the sale of Licensed Product is subject to the terms
                of this
                Agreement, including but not limited to the rendering of reports
                and
                payment of royalties required under this
                Agreement.

            

    

     

    16.
      ASSIGNMENT

    This
      Agreement may not be assigned, except that LICENSEE may assign this Agreement
      as
      part of a sale, regardless of whether such a sale occurs through an asset sale,
      stock sale, merger or other combination, or any other transfer of (a) LICENSEE’s
      entire business, or (b) that part of LICENSEE’s business that exercises all
      rights granted under this Agreement. Prior to any assignment, the new assignee
      must agree in writing to STANFORD to be bound by this Agreement. Any other
      attempt to assign this Agreement is null and void. Upon a permitted assignment
      of this Agreement by LICENSEE, LICENSEE will be released of liability under
      this
      Agreement and the term “LICENSEE” in this Agreement will mean the
      assignee.

     

    17.
      ARBITRATION

    
      	
              17.1

            	
              Any
                controversy arising under or related to this Agreement, and any disputed
                claim by either party against the other under this Agreement excluding
                any
                dispute relating to patent validity or infringement arising under
                this
                Agreement, shall be settled by arbitration in accordance with the
                Licensing Agreement Arbitration Rules of the American Arbitration
                Association. 

            

    

    
      	
              17.2

            	
              Upon
                request by either party, arbitration will be by a third party arbitrator
                mutually agreed upon in writing by LICENSEE and STANFORD within
                *****
                of
                such arbitration request. Judgment
                upon the award rendered by the arbitrator shall be final and nonappealable
                and may be entered in any court having jurisdiction
                thereof.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    
      	
              17.3

            	
              The
                parties shall be entitled to discovery in like manner as if the
                arbitration were a civil suit in the California Superior Court. The
                Arbitrator may limit the scope, time and/or issues involved in
                discovery.

            

    

    
      	
              17.4

            	
              Any
                arbitration shall be held at Stanford, California, unless the parties
                hereto mutually agree in writing to another
                place.

            

    

     

    18.
      NOTICES

    
      	 	
              All
                notices under this Agreement shall be deemed to have been fully given
                when
                done in writing and hand-delivered or sent by registered mail, postage
                prepaid and return-receipt requested, or by express international
                courier,
                and addressed as follows:

            

    

     

    
      
        	 	
                To
                  STANFORD:

              	
                Office
                  of Technology Licensing

              	 
	 	 	Stanford
                University	 
	 	 	1705
                El Camino Real	 
	 	 	Palo
                Alto, CA 94306-1106	 
	 	 	 	 
	 	 	Attention:
                Director	 
	 	 	 	 
	 	To
                LICENSEE:	XTL
                Biopharmaceuticals Ltd.	 
	 	 	Kiryat
                Weizmann	 
	 	 	P.O.
                Box 370	 
	 	 	Rehovot,
                76100 Israel	 
	 	 	 	 
	 	 	Attention:  President
                and CEO	 
	 	 	 	 
	 	With
                a Copy to:	Heller
                Ehrman White & McAuliffe LLP	 
	 	 	4350
                La Jolla Village Drive	 
	 	 	San
                Diego, California 92122	 
	 	 	 	 
	 	 	Attention:
                *****	 
	 	 	 	 
	 	 	 	 

      

    

     

    Either
      party may change its address upon written notice to the other
      party.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    19.
      WAIVER

    
      	 	
              None
                of the terms of this Agreement can be waived except by the written
                consent
                of the party waiving compliance.

            

    

     

    20.
      APPLICABLE LAW

    
      	 	
              This
                Agreement shall be governed by the laws of the State of California
                applicable to agreements negotiated, executed and performed wholly
                within
                California,
                without regard to principles of conflicts of laws.

            

    

     

    21.
      MODIFICATIONS

    
      	 	
              No
                amendment or modification of this Agreement is valid or binding on
                the
                parties
                unless made in writing and signed on behalf of each
                party.

            

    

     

    22.
      ENTIRE UNDERSTANDING

    
      	 	
              This
                Agreement embodies the entire understanding of the parties and supersedes
                all previous communications, representations or understandings, whether
                oral or written, between the parties relating to the subject matter
                hereof.

            

    

     

    23.
      SEVERABILITY

    
      	 	
              In
                case any of the provisions contained in this Agreement are held to
                be
                invalid, illegal
                or
                unenforceable in any respect, that invalidity, illegality or
                unenforceability will not affect any other provisions of this Agreement,
                and this Agreement will be construed as if the invalid, illegal,
                or
                unenforceable provisions had never been contained in
                it.

            

    

     

    24.
      FORCE MAJEURE

    
      	 	
              Neither
                party shall be responsible for delay or failure in performance caused
                by
                any government act, law, regulation, order or decree, by communication
                line or power failures beyond its control, or by fire, flood or other
                natural disasters or by other
                causes beyond its reasonable control, nor shall any such delay or
                failure
                be considered to be a breach of this Agreement; provided that the
                delayed
                party gives the other party prompt written notice thereof and uses
                commercially reasonable efforts to resume
                performance.

            

    

     

    25.
      RELATIONSHIP BETWEEN THE PARTIES

    
      	 	
              None
                of the provisions of this Agreement are intended to create any form
                of
                association,
                partnership or joint venture between the parties, rights in third
                parties
                or rights that are enforceable by any third party. Neither party
                will have
                the power to bind the other party or incur obligations on the other
                party's behalf without the other party's prior written
                consent.

            

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate
      originals by their duly authorized officers or representatives.

    

    
      	 	 	 
	 	
              THE
                BOARD OF TRUSTEES OF THE LELAND

              STANFORD
                JUNIOR UNIVERSITY

            
	 
 	 
 	 
 
	 	 	
              Signature________________________________________________________________________________

            
	 	Name___________________________________________________________________________________
              
	 	
              Title_________________________________________________________________________

            
	 	
              Date___________________________________________________________________________________

            

    

     

    
      	 	 	 
	 	
              XTL
                BIOPHARMACEUTICALS LTD.

            
	 
 	 
 	 
 
	 	 	
              Signature_______________________________________________________________________________

            
	 	Name__________________________________________________________________________________
              
	 	Title___________________________________________________________________________________ 
	 	
              Date___________________________________________________________________________________

            

    

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    
      *****
        Confidential material redacted and filed separately with the
        Commission.

    

     

    

    APPENDIX
      A

    LICENSED
      PATENTS AS OF AUGUST 1, 2003

    

    

    

    
      	
              *****

            	
              *****

            	
              *****

            	
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              *****

            	
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              *****

            	
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              *****

            	
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              *****

            	
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              *****

            
	
              *****

            	
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              *****

            
	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            
	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            
	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            
	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            
	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            
	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            
	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            	
              *****

            

    

    *****

    Note
      that
      confidential
      treatment has been requested and one (1) page of material from this Appendix
      A
      has been omitted and filed separately with the Commission.

     

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

         

      

      
        *****
          Confidential material redacted and filed separately with the
          Commission.

      

       

    

    APPENDIX
      B

    

    FORM
      OF ROYALTY REPORT

    

    ***** - 

    

    *****

    

    *****: *****

    
 

    
      	
              *****

            	
              *****

            
	
              *****

            	
              *****

            
	
              *****

            	
              *****

            
	
              *****

            	
              *****

            
	
              *****

            	
              *****

            
	
              *****

            	
              *****

            
	
              *****

            	
              *****

            
	
              *****

            	
              *****

            

    

    

    

    Note
      that
      confidential
      treatment has been requested and one (1) page of material from this Appendix
      B
      has been omitted and filed separately with the Commission.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      

        *****
          Confidential material redacted and filed separately with the
          Commission.

      

       

    

    SCHEDULE
      2.2

    

    LICENSED
      ANTIBODIES

     

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

    *****

     

    Note
      that
      confidential
      treatment has been requested and one (1) page of material from this Schedule
      2.2
      has been omitted and filed separately with the Commission.

     

    
      
        
        

      

      
        18

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