Document:

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

    

    

      THIRD
        EXTENSION AGREEMENT

      

      Between

      

      YEDA
        RESEARCH AND DEVELOPMENT CO. LTD.

      of
        P.O.
        Box 95, Rehovot 76100, Israel

      (hereinafter
        “Yeda”)

      

      and

      

      XTL
        BIOPHARMACEUTICALS LTD.

      of
        Kiryat
        Weizmann

      PO
        Box
        370

      Rehovot
        76100, Israel

      (hereinafter
        “the Company”)

      

      

      
        	WHEREAS	
                Yeda
                  and the Company have entered into a Research and Licence Agreement
                  dated
                  April 7, 1993 (hereinafter “the Main Agreement”) which was extended in an
                  Amendment of the Research and Licence Agreement on August 31, 1995
                  (hereinafter “the Amendment Agreement”) and in the Second Extension
                  Agreement on August 12, 1996 (“the Second Extension Agreement”);
                  and

              

      

      

      
        	WHEREAS	
                Yeda
                  and the Company desire to further extend the Research Period and
                  agree to
                  the 1998 Budget and the 1998 Research Plan (as these terms are
                  hereinafter
                  defined) for said period;

              

      

      

      NOW
        THEREFORE IT IS AGREED BY THE PARTIES HERETO AS FOLLOWS:

      

      
        	
                1,

              	
                Appendices

              

      

      

      
        	 	
                The
                  Appendix listed below which is attached hereto shall constitute
                  an
                  integral part hereof:

              

      

      

      Appendix
        1 - the 1998 Research Programme and Budget

       

      
        	
                2.

              	
                Definitions

              

      

      

      
        	
                2.1.

              	
                “Yeda”
                  shall mean Yeda Research and Development Co. Ltd. of P.O. Box 95,
                  Rehovot
                  76100, Israel.

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      
        	
                2.2.

              	
                “The
                  Company” shall mean XTL Biopharmaceuticals Ltd., of Kiryat Weizmann, P.O.
                  Box 370, Rehovot 76100, Israel.

              

      

      

      
        	
                2.3.

              	
                “The
                  Main Agreement” shall mean the Research and Licence Agreement between Yeda
                  and the Company, dated April 7,
                  1993.

              

      

      

      
        	
                2.4.

              	
                “The
                  Amendment Agreement” shall mean the Amendment of Research and Licence
                  Agreement dated August 31, 1995.

              

      

      

      
        	
                2.5.

              	
                “The
                  Second Extension Agreement” shall mean the agreement extending the
                  Research Period untill August 31,
                  1997.

              

      

      

      
        	
                2.6.
                  

              	
                “The
                  1998 Research” shall mean the Research contemplated under the 1998
                  Research Programme. The term “Research” in the Main Agreement shall be
                  deemed to include the 1998 Research and the Research performed
                  under the
                  Amendment Agreement and the Second Extension Agreement.
                  

              

      

      

      
        	
                2.7.

              	
                “The
                  1998 Research Programme” shall mean the research programme attached hereto
                  as Appendix 1.

              

      

      

      
        	
                2.8.

              	
                “The
                  1998 Research Period” shall mean the period commencing on September 1,
                  1997 and ending on August 31, 1998.

              

      

      

      
        	
                2.9.

              	
                “The
                  1998 Budget” shall mean the Budget for the Research as set forth in
                  Appendix 1 attached hereto.

              

      

      

      
        	
                3.

              	
                This
                  Third Extension Agreement shall be read together with the Second
                  Extension
                  Agreement , the Amendment Agreement and the Main Agreement and
                  subject to
                  the amendments and modifications contained herein, the provisions
                  of said
                  Second Extension Agreement, Amendment Agreement and Main Agreement
                  shall
                  remain unaltered and in full force and effect. Any words and phrases
                  included in this Third Extension Agreement which are defined in
                  the Main
                  Agreement or the Amendment Agreement, shall (unless the context
                  otherwise
                  requires) have the same meaning attributed to such words or phrases
                  in the
                  Main Agreement.

              

      

      

      
        	
                4.

              	
                Performance
                  of the 1998 Research

              

      

      

      
        	 	
                In
                  consideration of the sums to be paid by the Company pursuant to
                  Paragraph
                  5 below and subject to the execution of such payments, Yeda undertakes
                  to
                  procure the performance at the Institute of the 1998 Research in
                  accordance with the 1998 Research Programme in whole or in part
                  at the
                  discretion of and under the supervision of the Scientist during
                  the 1998
                  Research Period.

              

      

      

      
        	
                5.

              	
                Funding
                  of the 1998 Research

              

      

      

      
        
           

        

        
           

          
            

          

        

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

          

        

      

       

      
        	 	
                The
                  Company shall provide Yeda with the total amount of US$ ***** United
                  States Dollars to be used for financing the performance of the
                  1998
                  Research under Paragraph 3 above.

              

      

      

      
        	 	
                The
                  funds shall be paid in *****, one payable in advance on November
                  15, 1997
                  and the other on March 1, 1998.

              

      

       

      IN
        WITNESS WHEREOF OF the parties have caused their respective representatives
        to
        execute this Agreement in two (2) counterparts, each of which shall be deemed
        as
        original.

       

       

      
        	
                __________________________

                for XTL BIOPHARMACEUTICALS LTD.

              	
                _____________________________

                for
                  YEDA RESEARCH AND DEVELOPMENT CO. LTD.

              
	 	 
	
                By: ________________________

                Title: _______________________

                Date: ______________________

              	
                By: ________________________

                Title: _______________________

                Date:
                  ______________________

              

      

         

      

      I
        hereby
        confirm that I have read the above Agreement and I agree to act, to the best
        of
        my ability, in accordance with the terms and conditions of this Agreement
        insofar as it relates to me.

       

      
        	
                _________________________

              	
                __________________________

              
	*****	
                Date:

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

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

          

        

      

      Appendix
        1

      

      *****

      *****

      

      
        	1.	
                *****

              

      

      

      
        	
                a.

              	
                *****

              

      

      
        	
                b.

              	
                *****

              

      

      
        	
                c.

              	
                *****

              

      

      

      
        	
                2.

              	
                *****

              

      

      

      *****

      

      *****

      

      *****

      

      *****

      

      *****

      

      Note
        that
        confidential
        treatment has been requested and one (1) page of material from this Appendix
        1
        has been omitted and filed separately with the Commission.Confidential
        Treatment Requested. Confidential portions of this documents have been redacted
        and separately filed with the Commission.

      

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

    

     

    

      Date:
        January 25, 1998

      

      Yeda
        Research and Development Co. Ltd. Rehovot

      

      Dear
        Sirs,

      

      
        	Re:	
                Amendment
                  No. 2 to Research and Licence Agreement dated April 7, 1983
                  

              

      

      (“the
        Agreement”) as amended on August 31, 1885, “Amendment No. 1”)

      

      We
        set
        out below the amendments to the Agreement (as already amended by Amendment
        No.
        1) and to Amendment No. 1 agreed between Yeda Research and Development Co.
        Ltd.
        (“Yeda”)
        and
        XTL Biopharmaceuticals, Ltd. (“the
        Corporation”)
        following discussions between the parties conducted at the Corporation’s
        request:

      

      
        	1.	
                Clause
                  13(b)(i) of the Agreement shall be and is hereby replaced by the
                  following:

              

      

      
        	"(i)	(A)	
                Yeda
                  may terminate this Agreement by giving written notice to that effect
                  to
                  the Corporation if the aggregate of the royalties due to Yeda (x)
                  under
                  Paragraph 2.1.1 of - the letter agreement between the parties dated
                  August
                  31, 1995 (and amended on January 25, 1998) amending this Agreement
                  (hereinafter ‘the
                  Amendment’)
                  and (y) under Paragraph 2.1.2 of the Amendment on Third Party Sales
                  Receipts (as such expression is defined below), (hereinafter collectively
                  ‘Product
                  Sale Royalties’)
                  and actually paid to Yeda on due date in respect of
                  the
                  ***** of the term of the Licence shall be less than ***** United
                  States
                  Dollars) (hereinafter in this subparagraph (A) ‘the
                  Default Year’),
                  *****.
                  Yeda shall give. any such notice of termination within *****
                  days of the end of the Default
                  Year.

              

      

      

      ‘Collaboration
        Partner’
        shall
        mean an entity providing funding for the said Development Activities to the
        Corporation or on its behalf pursuant to an agreement between the Corporation
        and such entity whereby a sublicence has been granted to such entity with
        Yeda’s
        consent in accordance with Paragraph 7(c) above. ‘Third
        Party Sale Receipts’ shall
        mean amounts received by XTL from third- parties on which Yeda is entitled
        to a
        royalty pursuant to Paragraph 2.1.2 of the Amendment and which are calculated
        on
        sales of pharmaceutical products by such
        third
        parties;

      

      
        	 	
                (B)

              	
                If
                  the aggregate payment due to Yeda on Product Sale Royalties and
                  actually
                  made to Yeda in respect of the *****
                  of
                  the term of the Licence shall be less than *****
                  United States Dollars) (hereinafter in this Subparagraph (B) ‘the
                  Default Year’),
                  the Corporation shall pay Yeda within 30 (thirty) days of the end
                  of the
                  Default Year, the amount by which the Product Sale Royalties actually
                  paid
                  to Yeda in respect of the Default Year shall be less than *****
                  (hereinafter in this subparagraph (B) ‘the
                  Shortfall Amount’).
                  Payment of the Shortfall Amount (except to the extent that, it
                  represents
                  payments due and payable to Yeda in respect of the Product Sale
                  Royalties
                  other than pursuant to this subparagraph (B)) shall be fully credited
                  against future Product Sale Royalties becoming due to Yeda but
                  shall not
                  be refundable in any event.

              

      

      

      
        
           

        

        
           

          
            

          

        

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

          

        

      

      

      It
        is
        agreed, without, derogating from Yeda's rights to other or additional relief
        and
        remedies, including the right to sue for the Shortfall Amount, that failure
        to
        make the Shortfall Payment as aforesaid shall entitle Yeda to terminate this
        Agreement by giving written notice of termination to the Corporation within
        *****
        of the
        end of the Default Year.

      

      
        	 	
                (C)
                  

              	
                If
                  the aggregate payment due to Yeda as Product Sale Royalties and
                  actually
                  paid to Yeda in respect of the
                  *****
                  year of
                  the
                  term of the Licence shall be less than US *****
                  US
                  Dollars) (hereinafter in this subparagraph (C) ‘the
                  Default Year’),
                  *****.
                  Payment of the Shortfall Amount (except to the extent that it represents
                  payments due and payable to Yeda in respect of Product Sales Royalties
                  other than pursuant to this subparagraph (C)) shall be fully credited
                  against future Product Sale Royalties becoming due to Yeda but
                  shall not
                  be refundable in any event. Yeda shall give any such notice of
                  termination
                  within ***** days of
                  the end of the Default Year.

              

      

      

      
        	 	
                (D)

              	
                If
                  the aggregate payment due to Yeda as Product Sale Royalties and
                  actually
                  paid to Yeda on due date in respect of the *****
                  shall be less than US *****
                  US
                  Dollars) (hereinafter in this subparagraph (D) ‘the
                  Default Year’),
                  Yeda shall be entitled to terminate the Agreement by service of
                  written
                  notice to that effect on the Corporation within *****
                  days of the end of the Default
                  Year.

              

      

      

      
        	 	
                (E)

              	
                If
                  commercial exercise of the Licence by way of sale of Yeda Royalty
                  Bearing
                  Products, once commenced, shall cease thereafter for a period of
                  *****
                  consecutive months or more, Yeda shall be entitled to terminate
                  the
                  Agreement by service of written notice to that effect on the Corporation
                  within 60 days of the end of such period and, unless sales of Yeda
                  Royalty
                  Bearing Products shall have been renewed in the meantime, also
                  at any time
                  thereafter, provided,
                  however, in the event Yeda desires to terminate the Agreement after
                  such
                  *****
                  period, Yeda shall give the Corporation written notice at least
                  *****
                  days in advance of the desired date of
                  termination.

              

      

      

      
        	 	
                (F)

              	
                Nothing
                  in this Clause 13(b)(i) above shall be deemed to justify failure
                  to make
                  any payment due and payable to Yeda under any of the provisions
                  of this
                  Agreement other than under this Clause 13(b)(i) above or to derogate
                  from
                  Yeda's rights with respect to such failure pursuant to Clause 13(b)(ii)
                  below or otherwise."

              

      

      

      
        	
                2.
                  

              	
                The
                  following provision shall be added as Clause 13(b)(vii) to the
                  Agreement:

              

      

      

      "For
        the
        removal of doubt, the parties record that the effective commencement date
        of the
        Licence shall be deemed to be April 7, 1993 and the years of the Licence
        term
        shall be determined accordingly."

      

      
        	
                3.

              	
                Amendment
                  No. 1 is hereby amended as shown in the restated version thereof
                  attached
                  hereto as Appendix
                  A.

              

      

      

      
        	4.	
                Yeda
                  acknowledges that the Corporation has made the payments and provided
                  the
                  guarantee referred to
                  in Paragraphs 3.2 and 3.3 of Amendment No.
                  1.

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                5.

              	
                The
                  Agreement (including Amendment No. 1) continues in full force as
                  amended
                  above.

              

      

      

      Please
        confirm your agreement to
        the
        amendments provided hereinbefore, whereupon they shall become
        effective.

      

      Yours
        sincerely,

      

      Martin
        Backer, Ph.D. 

      President
        and CEO

      XTL
        Biopharmaceuticals Ltd.

      

      Agreed

      YEDA
        RESEARCH AND DEVELOPMENT CO. LTD.

      

      
        
           

        

        
           

          
            

          

        

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

          

        

      

      Appendix
        A

      

      XTL
        BIOPHARMACEUTICALS LTD.

      

      Restated
        version effective as of January 25, 1998, (replacing original version dated
        August 31, 1995 of Amendment No. 1 to Research and

      Licence
        Agreement between Yeda Research and Development Co Ltd and XTL
        Biopharmaceuticals Ltd (previously Xenograft Technologies
        Ltd))

      

      
        	
                To:
                  

              	
                Yeda
                  Research and Development Company
                  Ltd.

              

      

      PO
        Box 95

      Rehovot
        76100

      

      Dear
        Sirs,

      

      Re:
        Amendment
        of Research and License Agreement

      

      This
        letter, when counter-signed by an authorized representative of Yeda Research
        and
        Development Ltd. (“Yeda”) will constitute an agreement between Yeda and XTL
        Biopharmaceuticals Ltd. (formerly named Xenograft Technologies
        Ltd.-”XTL”)
        to
        extend the period of research under the Research and License Agreement entered
        into by Yeda and XTL on April 7, 1993 (the “R&L
        Agreement”)
        and
        otherwise to amend the R&L Agreement, as hereinafter provided (unless
        otherwise herein defined, all
        capitalized
        terms appearing herein having the meanings ascribed to them in the R&L
        Agreement):

      

      1.
        General

      

      
        	
                1.1.

              	
                XTL
                  has advised Yeda that XTL contemplates promoting certain of its
                  major
                  activities by allowing third parties to develop and manufacture
                  products
                  using the results, including the products, obtained by
                  XTL as a result, inter
                  alia,
                  of the exercise by it of the License granted by Yeda to XTL under
                  the
                  R&L Agreement and, subject to compliance with the provisions of the
                  R&L Agreement (as herein amended), including those governing the
                  grant
                  of sublicences, Yeda has no objection
                  thereto.

              

      

      

      
        	
                1.2.

              	
                XTL
                  wishes to modify and diversify the
                  rates of royalties due to Yeda under the R&L Agreement as hereinafter
                  provided and Yeda agrees thereto.

              

      

      

      2.
        Royalties

      

      
        	
                2.1.

              	
                Royalty
                  Rates

              

      

      

      Instead
        of the royalties payable as specified in Clause 7(d)(ii) of the R&L
        Agreement, the royalties payable to Yeda by XTL in consideration of the Licence
        granted under the R&L Agreement, shall be as follows:

      

      
        	
                2.1.1.

              	
                *****
                  percent) of Net Sales (as hereinafter defined) from sales by XTL
                  of
                  pharmaceutical products developed and/or made under and/or using
                  the
                  Licensed Patents and/or the Licensed Technology. “Net
                  Sales”
                  as used herein shall have the meaning ascribed to the term in the
                  R&L
                  Agreement, references therein to “the
                  Products”
                  being read as references to the pharmaceutical products referred
                  to
                  hereinbefore.

              

      

      

      
        
           

        

        
           

          
            

          

        

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

          

        

         

      

      
        	
                2.1.2.

              	
                *****
                  percent) of all amounts received by XTL from third parties (except
                  the
                  amounts governed by Section 2.1.4 below) under or pursuant to agreements
                  allowing such third parties the use of results, including products,
                  developed and/or made by XTL under and/or using the Licensed Patents
                  and/or the Licensed Technology (including, without limitation,
                  results
                  obtained by XTL’s use of *****),
                  provided
                  that if XTL shall be obliged to pay a royalty of more than *****
                  per cent) on any such amounts to a third party pursuant to a bona
                  fide
                  arms-length agreement with such third party (“a
                  third party royalty”),
                  then the rate of royalty payable to Yeda pursuant to this Section
                  2.1.2 on
                  amounts subject to a third party royalty shall be reduced by the
                  percentage - up to a maximum of *****
                  per cent) - by which the third party royalty rate *****
                  cent), so that if, for example, the third party royalty rate is
                  *****
                  per cent) the rate of royalty payable to Yeda pursuant to this
                  Section
                  2.1.2 shall be *****
                  per cent), and if, as a further example, the third party royalty
                  rate is
                  *****
                  per cent), the rate of royalty payable to Yeda pursuant to this
                  Section
                  2.1.2 shall be reduced by *****
                  (and not by *****)
                  and shall be *****
                  per cent).

              

      

      

      
        	
                2.1.3.

              	
                *****
                  percent) of all amounts received by XTL from a third party payable
                  upon
                  XTL reaching milestones specified in an agreement with such third
                  party
                  providing for performance of development activities by XTL for
                  such third
                  party under and/or using the Licensed Patents and/or the Licensed
                  Technology.

              

      

      

      
        	
                2.1.4.

              	
                *****
                  percent) of all amounts received by XTL under or pursuant to agreements
                  with third parties allowing such third parties to use outside XTL’s
                  premises chimeric mammals or other animal models (collectively,
                  “Models”)
                  made and/or developed by XTL under and/or using the Licensed Patents
                  and/or the Licensed Technology or allowing such third parties to
                  produce
                  Models under and/or using the Licensed Patents and/or the Licensed
                  Technology.

              

      

      

      
        	
                2.1.5.

              	
                *****
                  percent) of all amounts received by XTL as a result of any activities
                  under and/or using the Licensed Patents and/or the Licensed Technology
                  (including the grant of sublicences to third parties to carry out
                  activities under and/or using the Licensed Patents and/or the Licensed
                  Technology), other than those specified in Sections 2.1.1, 2.1.2,
                  2.1.3 or
                  2.1.4 above. Where the amounts received by XTL are the result of
                  activities not involving the grant of sublicences to third parties
                  (“Direct
                  Activities”)
                  and are amounts received in a transaction other than at arms length,
                  the
                  royalty due to Yeda shall be calculated on the amount that would
                  have been
                  received by XTL in a transaction at arms
                  length.

              

      

      

      
        	
                2.1.6.

              	
                For
                  the avoidance of doubt, it is expressly stated that royalties shall
                  not be
                  due pursuant to Sections 2.1.2. 2.1.4 or 2.1.5 above on funds received
                  by
                  XTL which are paid by a third party in order to cover, and are
                  actually
                  applied by XTL in covering, the cost of research and development
                  by XTL
                  for such third party of products generating any of the amounts
                  in respect
                  of which royalties are payable pursuant to Sections 2.1.2, 2.1.4
                  or 2.1.5
                  above.

              

      

      

      
        	
                2.1.7.

              	
                For
                  the avoidance of doubt, it is expressly stated, that nothing in
                  this
                  Section 2.1 above or elsewhere in this letter shall be deemed to
                  derogate
                  from the provisions of Clause 7(c) of the R&L Agreement governing the
                  grant of sublicences.

              

      

      

      
        	
                2.2.

              	
                Payment
                  of Royalties

              

      

      

      
        
           

        

        
           

          
            

          

        

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

          

        

         

      

      The
        provisions of Clause 7(d)(iii) of the R&L Agreement shall apply,
mutatis
        mutandis, to
        the
        royalties payable to Yeda pursuant to Section 2.1 above, references to
“Net
        Sales”
        in the
        said Clause 7(d)(iii) being deemed references to “Net
        Sales”
        as
        defined in Section 2.1.1 above for the purpose of that Section and to amounts
        received by XTL from Direct Activities (as defined in Section 2.1.5 above)
        and
        references to “Sublicensing Receipts” in Clause 7(d)(iii) being deemed
        references to amounts subject to royalty payment to Yeda pursuant to Sections
        2.1.2, 2.1.3, 2.1.4 or 2.1.5 above (not being amounts resulting from Direct
        Activities (as defined in Section 2.1.5 above)).

      

      
        	
                2.3.

              	
                For
                  the avoidance of doubt, it is expressly stated that payment of
                  royalties
                  under the R&L Agreement shall continue as
                  follows:

              

      

       

      
        	
                2.3.1.

              	
                Payment
                  of royalties pursuant to Section 2.1.1 shall continue with respect
                  to
                  sales of any pharmaceutical product as
                  follows:

              

      

      

      
        	 	
                (aa)
                  

              	
                if
                  the product sold is made and/or sold in a country where a Licensed
                  Patent
                  or Patents issue including claims covering, in whole or in part,
                  such
                  product or the manufacture thereof-then, (i) until the date of
                  expiry of
                  the last of the Licensed Patents covering such product in such
                  country to
                  expire, or (ii) until termination of the ***** commencing on the
                  date of
                  the first commercial sale of such product in such country, whichever
                  is
                  the longer period;

              

      

      

      
        	 	
                (bb)
                  

              	
                on
                  sales of a product made and sold in any other country, until the
                  date of
                  expiry of a period of ***** years commencing on the date of the
                  first
                  commercial sale of such product in such
                  country.

              

      

      

      
        	
                2.3.2.

              	
                Payment
                  of royalties pursuant to Section 2.1.2 shall continue as
                  follows:

              

      

      

      
        	 	
                (aa)

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of the
                  paying third party under a Licensed Patent or Patents in a particular
                  country shall continue (i) until the expiry of the last to expire
                  of the
                  said Licensed Patents, or (ii) until termination of the ***** period
                  commencing on the first date on which XTL receives an amount relating
                  to
                  activities in such country on which a royalty is due to Yeda pursuant
                  to
                  Section 2.1.2, whichever is the longer
                  period;

              

      

      

      
        	 	
                (bb)
                  

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of the
                  paying third party in a particular country in which there is no
                  Licensed
                  Patent shall continue until termination of the ***** commencing
                  on the
                  first date on which XTL receives an amount relating to activities
                  in such
                  country on which a royalty is due to Yeda pursuant to Section
                  2.1.2;

              

      

      

      
        	 	
                (cc)
                  

              	
                payment
                  of royalties on amounts paid to XTL and not attributable to the
                  paying
                  third party’s activities in any particular country, shall continue until
                  *****, whichever is the longer
                  period.

              

      

      

      
        	
                2.3.3.

              	
                Payment
                  of royalties pursuant to Section 2.1.3 shall continue as
                  follows:

              

      

      

      
        
           

        

        
           

          
            

          

        

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

          

        

         

      

      
        	 	
                (aa)
                  

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of XTL
                  or of the paying third party under a Licensed Patent or Patents
                  in a
                  particular country shall
                  continue *****,
                  whichever is the longer period,

              

      

      

      
        	 	
                (bb)
                  

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of XTL
                  or the paying third party in a particular country in which there
                  is no
                  Licensed Patent shall continue until termination of the *****
                  commencing on the date on which XTL first receives an amount relating
                  to
                  activities in such country on which a royalty is due to Yeda pursuant
                  to
                  Section 2.1.3;

              

      

      

      
        	 	
                (cc)
                  

              	
                payment
                  of royalties on amounts paid to XTL and not attributable to XTL’s or the
                  third party’s activities in any particular country shall continue until
                  *****,
                  whichever is the longer period.

              

      

      

      
        	
                2.3.4.

              	
                Payment
                  of royalties pursuant to Section 2.1.4 shall continue as
                  follows:

              

      

      

      
        	 	
                (aa)

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of the
                  paying third party under a Licensed Patent or Patents in a particular
                  country shall continue *****, whichever is the longer
                  period;

              

      

      

      
        	 	
                (bb)
                  

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of the
                  paying third party in a country in which there is no Licensed Patent
                  shall
                  continue until termination of the ***** commencing on the date
                  on which
                  XTL first receives an amount relating to activities in such country
                  on
                  which a royalty is due to Yeda pursuant to Section
                  2.1.4;

              

      

      

      
        	 	
                (cc)
                  

              	
                payment
                  of royalties on amounts paid to XTL and not attributable to the
                  third
                  party’s activities in any particular country shall continue, until *****,
                  whichever is the longer period.

              

      

      

      
        	
                2.3.5.

              	
                Payment
                  of royalties pursuant to Section 2.1.5 shall continue as
                  follows:

              

      

      

      
        	
                (A)
                  

              	
                Where
                  the royalties are on amounts received by XTL on any Direct Activity,
                  the
                  duty to pay royalties shall
                  continue:

              

      

      

      
        	 	
                (aa)
                  

              	
                if
                  the activity or any part thereof is carried out in any country
                  under a
                  Licensed Patent or Patents-then, *****,
                  whichever is the longer period;

              

      

      

      
        	
              	(bb)	
                if
                  the activity is carried out in any other country, until the date
                  of expiry
                  of a period of *****
                  commencing on the first date on which XTL receives an amount as
                  a result
                  of that activity in that country;

              

      

      

      
        	
                (B)

              	
                Where
                  the royalties are due on amounts received by XTL on activities
                  not being a
                  Direct Activity, the duty to pay royalties shall continue as
                  follows:

              

      

      

      
        	 	
                (aa)
                  

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of the
                  paying third party under a Licensed Patent or Patents in a particular
                  country shall continue *****,
                  whichever is the longer period;

              

      

      

      
        
           

        

        
           

          
            

          

        

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

          

        

         

      

      
        	 	
                (bb)
                  

              	
                payment
                  of royalties on amounts paid to XTL and attributable to activities
                  of the
                  paying third party in a particular country in which there is no
                  licensed
                  Patent shall continue until termination of the ***** commencing
                  on the
                  first date on which XTL receives an amount relating to activities
                  in such
                  country on which a royalty is due to Yeda pursuant to Section
                  2.1.5;

              

      

       

      
        	 	
                (cc)
                  

              	
                payment
                  of royalties on amounts paid to XTL and not attributable to the
                  third
                  party’s activities in any particular country shall continue, *****,
                  whichever is the longer period.

              

      

      

      
        	
                2.4.

              	
                The
                  License granted under the R&L Agreement shall remain in force (if not
                  previously terminated according to the provisions of the R&L Agreement
                  (as amended hereby)) for the purpose of each of the activities
                  specified
                  in Sections 2.1.1, 2.1.2, 2.1.3, 2.1.4 and 2.1.5, as long as there
                  is a
                  duty to pay royalties in respect of such activity, as provided
                  in Section
                  2.3 above. Clause 7(b)(ii) of the R&L Agreement is replaced by the
                  provisions of this Section 2.4
                  above.

              

      

      

      
        	
                3.

              	
                Payments
                  for Sponsored R&D

              

      

      

      
        	
                3.1.

              	
                Subject
                  to the amendments contained herein, the period of research which
                  XTL is
                  obliged to fund under the R&L Agreement is hereby extended by 1 (one)
                  year and shall continue until August 31,
                  1996 (the
                  “Extension Period”).

              

      

      

      
        	
                3.2.

              	
                XTL
                  shall pay Yeda an aggregate amount in New Israel Sheqels equal
                  (at the
                  representative rate of exchange in force on the date of payment)
                  to
                  *****
                  (plus VAT against VAT invoice) in consideration of Yeda’s undertaking to
                  procure the performance (under the supervision of Prof. Reisner)
                  of
                  research in the Extension Period in accordance with the Research
                  Plan and
                  the Budget attached hereto as Appendices
                  “A”
                  and “B”,
                  respectively, as follows:

              

      

      

      
        	
                3.2.1.

              	
                an
                  amount in New Israel Sheqels equal (at the representative rate
                  of exchange
                  in force on the date of payment) to US
                  ***** (plus
                  VAT against VAT invoice) on March 31,
                  1996;

              

      

      

      
        	
                3.2.2.

              	
                an
                  amount in New Israel Sheqels equal to US *****
                  (plus VAT against VAT invoice) on each of May 15, 1996
                  and
                  July
                  31, 1996.

              

      

      

      
        	
                3.3.

              	
                Simultaneously
                  with counter-signature hereof by Yeda, XTL shall provide Yeda with
                  a bank
                  guarantee from an Israeli bank, in form acceptable to Yeda, in
                  order to
                  secure XTL’s obligations under Sections 3.2.1
                  and
                  32.2
                  above.
                  50% of the bank charges and commissions actually paid by XTL to
                  the
                  issuing bank in respect of the bank guarantee shall be reimbursed
                  by Yeda
                  to XTL, against proof of the amount paid by XTL, forthwith upon
                  receipt by
                  Yeda of the amount payable by XTL pursuant to Section 3.2.1
                  above.

              

      

      

      
        	4.	
                Entire
                  Agreement

              

      

      

      Except
        as
        set forth in this letter, all the terms of the R&L Agreement shall remain
        unchanged. The R&L Agreement, as amended hereunder, sets forth the
        entire

       

      
        
           

        

        
           

          
            

          

        

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

          

        

      

      understanding
        between Yeda and XTL regarding the R&L Agreement (except as supplemented by
        written instrument of even or subsequent date), and supersedes any other
        prior
        agreement or understanding, oral or written.

      

      Please
        indicate your acceptance of the terms of this letter by affixing your signature
        below.

      

      Very
        truly yours,

      Martin
        Backer, Ph.D. 

      President
        and CEO

      XTL
        Biopharmaceuticals Ltd.

      

      Agreed
        and Accepted:

      YEDA
        RESEARCH AND DEVELOPMENT COMPANY LTD.

      *****                 *****

      *****                 *****

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]