Document:

EX-10.17

 Exhibit 10.17 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [******], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE
COMPETITIVE HARM TO THE SECURITY MATTERS LTD. IF PUBLICLY DISCLOSED 
 AMENDMENT 

TO 
 LICENSE AGREEMENT

 THIS AMENDMENT TO LICENSE AGREEMENT (the “Amendment”) is made and entered into as of the 10th day of July, 2018 (“Amendment Effective Date”), by and between ISORAD LTD. (“Isorad”), and SECURITY MATTERS, LTD. (“Company”). 

W I T N E S S E T H: 
 WHEREAS,
Isorad and Company are parties to a License Agreement dated January 1st 2015 (the “Agreement”); 
 WHEREAS, Under the Agreement, the
Company has no right to transfer or sublicense (not as a whole and not in part) the Licensed Technology, without the prior written consent of Isorad; 

WHEREAS, On July 5, 2017, Isorad granted the Company a specific and conditioned approval to sublicense certain rights to Kafrit Industries
(1993) Ltd. for the sole purpose of performing the rights and obligation under the collaboration agreement between the Company and Kafrit Industries (1993) Ltd. dated 16 July 2017; 

WHEREAS, the Company is in the process of carrying out a reorganization whereby through a share swap it shall become a wholly owned subsidiary of an
Australian corporation (the “Parent”), and the shareholders of the Company shall become the shareholders, in the same proportions of the Parent (the “Reorganization”); and 

WHEREAS, the Parent is in the final stages of launching an the initial public offering (“First IPO”) of its shares under a prospectus
to be lodged with the Australian Securities and Investments Commission (“ASIC”); and 
 WHEREAS, the Company has presented to Isorad
its business strategy which according to its business view requires the grant of sublicenses under the Licensed Technology to potential collaborators. Based on this strategy Isorad agrees to amend the Agreement to permit the Company to provide sub-licenses, all as set forth herein and subject to the terms and conditions herein. 
 NOW THEREFORE, the parties
hereby agree as follows: Additional proposed text is double- underlined; deletions of the existing text appear in strike through text. 

 

	1.	 Any capitalized term not specifically defined herein shall have the meaning ascribed to it in the Agreement.

  
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	2.	 Section 1.10 shall be revised in its entirety to read as follows: 

“Exit Event” means a transaction or series of transactions producing in a combined fashion one event, which is (a) a
merger with a third party, excluding a merger following which Company or Parent is the surviving corporation and the shareholders of Company
or Parent prior to the merger constitute the majority of the shareholders following such merger; (b) acquisition type transaction involving the sale of all or a substantially of the
shares of the Company or the Parent to an acquiring Person or merged Person; (c) the sale of all or substantially all the assets of the Company
or the Parent; or (c) results in the transfer or assignment of this Agreement (with the prior written consent of Isorad, as required hereunder), (d) an initial public offering of the
Company’s shares or the shares of the Parent (as defined in Section 2.7) (“IPO”); excluding, in all cases, a transaction with a subsidiary or a transaction effected for
the sole purpose of changing the domicile or corporate restructuring and/or reorganization. 
  

	3.	 Section 1.22 shall be revised in its entirety to read as follows: 

“Royalty Period” means the period commencing on the earlier of four (4) years
of the Effective Date or the first year the Company is cash flow positive, January 1st 2020 and ending twenty five
(250) years thereafter, except that in respect of Sublicense Receipts, the period shall commence on the
Amendment Effective Date and not January 1st 2020. 
  

	4.	 Section 2.1 shall be revised in its entirety to read as follows: 

“2.1 Isorad License. Subject to the terms and conditions set forth in this Agreement, Isorad hereby grants to the Company an
exclusive, worldwide, royalty-bearing license, with no rights to transfer or sublicense (not as a whole and not in part) except as permitted in Section 2.7 below, under
the Licensed Technology, to make any and all uses of the same, including, without limitation, to develop, manufacture, use, market, offer for sale, sell, export and import Licensed Products solely in the Field (the “License”).” 

 

	5.	 Section 2.7 shall be revised in its entirety to read as follows: 

“Sublicenses. 

The Company shall be entitled to grant sublicenses to third parties under the License
(a “Sublicense” and the person or entity granted a Sublicense, the “Sublicensee”) provided that; 
  

	 	(a)	 The Company provides the full name and identity of the
Sublicensee to Isorad in writing and Isorad had approved the identity of the Sublicensee in writing within 30 days. Failure by Isorad to respond within such period shall be deemed approval of identity of Sublicensee Company understands and
acknowledges that Isorad is a Governmental company and agrees that Isorad shall only refuse to approve a Sublicensee based on Governmental defense, security, governmental, policy, political and other official State of Israel policy
considerations; 

  
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	 	(b)	 Sublicense shall be made to entities that the Company
reasonably believes have the commercial and scientific capabilities and resources to continue the development and commercialization of Licensed Products 

  

	 	(c)	 Sublicenses shall only be granted pursuant to written
agreements, which shall be in compliance with the terms and conditions of the Agreement, a copy of which shall be provided to Isorad promptly after its execution (provided that any Sublicense agreement so furnished may be redacted to the extent that
it contains terms unrelated to the Licensed Technology); 

  

	 	(d)	 no such Sublicensee shall be entitled to grant,
directly or indirectly, to any third party any sublicense or rights under the Licensed Technology and shall not be entitled to assign the sublicense agreement in any way. 

 

	 	(e)	
                
in the event of termination of the Agreement (in whole or in part (e.g., termination in a particular country), any existing Sublicense shall terminate to the extent of such terminated Agreement;
provided, however, that, for each Sublicensee, upon termination of a Sublicense agreement, if the Sublicensee is not then in breach of the Sublicense agreement such that the Company would have the right to terminate such Sublicense agreement, Isorad
shall grant the Sublicensee a license from Isorad on the terms and conditions of this Agreement; 

  

	 	(f)	 The Company shall ensure that any sublicense shall
include material terms that require the Sublicensee to comply with the terms of the Agreement, including, Section 11.4 (Limitation of Liability) and Section 12 (Indemnification and Insurance), the breach of which terms shall be a material
breach entitling Company the right to terminate the sublicense. In such an event, the Company undertakes to take all reasonable steps to enforce such terms upon the Sublicensee, including the termination of the sublicense. In all cases the Company
shall immediately after becoming aware thereof, notify lsorad of any breach of the material terms of a sublicense, and shall copy Isorad on all correspondence with regard to such breach; 

 

	 	(g)	 The Company shall require each Sublicensee to provide
it with regular written royalty reports and report regarding Sublicense Receipts that include at least the detail that the Company is required to provide pursuant to Section 8 of the Agreement and to permit audit rights in accordance with the
Agreement. Together with each payment the Company shall provide such reports to Isorad; 

  
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	 	(h)	 Any act or omission of the Sublicensee which is not
remedied by the Company or the Sublicensee in accordance with the Sublicense, and which would have constituted a breach of the Agreement by the Company had it been an act or omission of the Company, and which the Company has not made best efforts to
cure in accordance with the Agreement or Sublicense, as applicable„ including termination of the sublicense, shall constitute a breach of the Agreement by the Company; 

 

	 	(i)	 The Company shall not be entitled to license or
transfer any rights whatsoever in respect of the Licensed Technology to any third party, except by means of a Sublicense or as set forth in sub-Section (j) below. 

 

	 	(j)	 The Company and its Sublicensees’s shall be
permitted to sublicense the object code of software that forms part of the Licensed Technology to final end users of the Licensed Products (e.g., a reader of the Company’s “markers”) and not for further distribution, provided that
such software is embedded in the Licensed Product and is not separable and such Licensed Products are sold in the Company’s or its Sublicensee’s ordinary course of business. For the avoidance of doubt, the proceeds from such sublicenses
shall form part of the Gross Sales or shall be subject to payment of Sublicense Royalties, as applicable. 

Kafrit Industries (1993) Ltd. is considered a Sublicensee for all intents and
purposes and the terms and conditions of this Amendment and of the Agreement shall apply to the existing agreement between the Company and Kafrit Industries (1993) Ltd. 

 

	6.	 In Section 2.8, the reference to “Section 2.4” shall be corrected to refer to
“Section 2.7”. 

  

	7.	 Section 6.1 shall be revised in its entirety to read as follows: 

“Royalties and Sublicense Revenues.    (a)
The Company shall, during the Royalty Period, pay Isorad royalties equal to 2.2% of all Gross Sales by the Company and its Affiliates. Company and its Affiliates shall also pay Isorad, during
the Royalty Period ,2.2% of all amounts invoiced or received by a Sublicensee in connection with the sale of Licensed Products to third parties (excluding VAT and bad debts according to the applicable Accounting Rules and as long as such bad debts
are recognized by the applicable Tax Authorities) (“Sublicense Royalties”): and (b) the Company and its Affiliates shall also pay Isorad, during the Royalty Period, 15% of all amounts, payment or other consideration
invoiced or received by Company and its Affiliates for or from the grant of Sublicenses and/or pursuant thereto or in connection with the grant of an option for a Sublicense. except amounts in respect of which the Company or its Affiliate has paid
Sublicense Royalties (“Sublicense Receipts”) For clarity, “other commercialization and/or exploitation of the Licensed Technology” (section 1.18(v) of the Agreement constitute Sublicense Receipts.”. 

  
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	8.	 Section 6.3 shall be revised in its entirety to read as follows: 

“Exit Fee. Upon the occurrence of an the first Exit
Event, Company shall pay Isorad an amount equal to one percent (1%) of the Exit Consideration; and Upon the occurrence of the second Exit Event, Company shall pay Isorad an amount equal to two
percent (2%) of the Exit Consideration. Exit Consideration will be paid to Isorad in respect to each Exit Event, in case of multiple Exit Events.” 

9. In anticipation of the First IPO, Isorad agreed to the waiver of all rights as set forth in Section 7 of the Agreement, with the exception of Sections
7.2., 7.3 and 7.6. Such provisions shall be automatically reinstated to the extent the Reorganization and the First IPO are not consummated. The parties agree that Section 7.2 shall be revised in its entirety to read as follows: 

“Anti Dilution. Isorad’s aggregate holdings in the Company shall not be diluted until after an
equity investment in the Company at a pre money valuation that is equal to or greater than five million US dollars ($5,000,000). immediately prior to the First IPO or immediately prior
to the Amendment Effective Date, to the extent that the Reorganization and consummation of the IPO shall not be completed” 
 10. In
Section 8.3 the following sentence will be added: “Notwithstanding the above, the payment of amounts owed to Isorad pursuant to Section 6.1 for calendar year 2020 shall be
deferred and made on April 1st 2021”. 
 11. All other terms and conditions of the Agreement remain unchanged. The term “Agreement” as
used in the Agreement shall be deemed to be the Agreement as amended by this Amendment. 
 11. The Parties may execute this Amendment in two or more
counterparts, each of which shall be deemed an original. 
 [signature page follows] 

  
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 IN WITNESS WHEREOF, the parties hereby sign the Amendment to License Agreement: 

 

									
	Isorad Ltd.	 		 	Security Matters Ltd.

									
					
	By:	 	[******]	 		 	By:	 	 

									
					
	Name:	 	[******]	 		 	Name:	 	 

									
					
	Title:	 	[******]	 		 	Title:	 	 

									
					
	By:	 	[******]	 		 	By:	 	 

									
					
	Name:	 	[******]	 		 	Name:	 	 

									
					
	Title:	 	[******]	 		 	Title:	 	 

 I, Attorney ____________ confirms that the signatures of: ____________ and _____________ bind the Company and that the
Company has approved this Amendment and authorized the foregoing to sign it on its behalf. 
 Name:
———————————— 
 License #: —————————— 

Address: ——————————— 

Signature: —————————— 

  
 6EX-10.18

 Exhibit 10.18 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*******], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WORLD LIKELY CAUSE
COMPETITIVE HARM TO SECURITY MATTERS LTD. IF PUBLICLY DISCLOSED 
 ADDENDUM TO LICENSE AGREEMENT 

THIS ADDENDUM TO LICENSE AGREEMENT (the “Addendum”) is made and entered into as of the 30th day of April, 2019
(“Addendum Effective Date”), by and between ISORAD LTD. (“Isorad”), and SECURITY MATTERS, LTD. (“Company”). 

W I T N E S S E T H: 

WHEREAS, Isorad and Company are parties to a License Agreement dated January 1st
2015, as amended on June 10th, 2018 (“Amendment” and collectively, the “Agreement”); 

WHEREAS, the Company seeks to exploit the Licensed Technology together with Trifecta Industries Ltd. (“Trifecta”), for
commercializing various applications in the diamonds and precious stones industry (the “Diamond Field”) through establishment of a joint company (the “Joint Company”); and 

WHEREAS, the Company wishes to grant the Joint Company certain rights pursuant to and subject to the Agreement for use solely within
the Diamond Field; and 
 WHEREAS, the Company undertakes to have the Joint Company adopt, acknowledge and accept this Addendum
immediately following its incorporation. 
 NOW THEREFORE, the Parties agree as follows: 

1. Interpretation. All capitalized terms used but not defined in this Addendum shall have the meanings set forth in the Agreement. 

2. Joinder. By execution of this Addendum, the Joint Company shall be automatically added to the Agreement as an additional licensee in
the Field, jointly and severally with the Company, solely with respect to the Diamond IP (as defined below). 
 3. Title. All rights
in and to any intellectual property based on, that comprise, contain, derived from and/or incorporate, in whole or in part, Licensed Technology related to the Diamond Field that was, is and/or will be developed (i) by or for the Company and
assigned to the Joint Company, and (ii) by or for the Joint Company (the “Diamond IP”) shall be jointly owned in equal parts by the Company, the Joint Company and Soreq. Patents and other registerable rights on the Diamond IP
shall be filed, registered and prosecuted in the names of all three joint owners at the sole cost and expense of the Company and/or the Joint Company. Sections 9 and 10 of the Agreement shall apply with the necessary adjustments to all such patents
and registerable rights. 
 4. Obligations of the Joint Company. The Joint Company has read the Agreement and agrees to be bound
towards Isorad and Soreq with respect to the Diamond IP and related Licensed Products by all the obligations, terms and conditions of the Company in the Agreement, as if it was another original licensee under the Agreement, jointly and severally
with the Company, including without limitations, Sections 2, 6, 8, 9, 10, 11, 12, 13 and 14 of the Agreement. Notwithstanding the foregoing, the Royalty rate on Gross Sales of the Joint Company and the Sublicense Royalties of the Joint Company shall
be 4.2% (and not 2.2% that applies solely to the Company and its other Affiliates) and further, Section 10 of the Amendment shall not apply to the Joint Company. The foregoing does not and shall not derogate from the Company’s obligations
under the Agreement, it being clarified that there will be no double counting of Gross Sales or Sublicense Receipts (or any other amount on which Isorad is entitled to payment under the Agreement). Any breach by the Joint Company of the Agreement
shall be regarded as a breach of the Company, provided that in the event such breach is curable, it was not cured by the Joint Company or the Company within 30 days of Isorad’s written notice of breach. 

5. Transfer of Diamond IP. Without derogating from Section 4 above, the Company shall not sell any of the Company’s shares in
the Joint Company and the Joint Company shall not sell the Diamond IP, in whole or in part, to any third party, without the prior written approval of Isorad, Soreq and the regulators and governmental authorities of Israel. 

  
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 6. Exit Fee. In addition to the provisions of the Agreement applicable to the
Company, the Company and the Joint Company shall provide Isorad with a prior notice of any Exit Event (as defined below) of the Joint Company. Isorad shall be entitled to a fee equal to 1% of the Exit Consideration (the “Exit Fee”)
of two Exit Events (i.e. twice) at its choice. 
 In this section 

“Exit Consideration” means the total consideration paid to, received by, or distributed to, the Joint Company and/or its
shareholders and/or its Affiliates in connection with an Exit Event, of any nature, including, without limitation, all cash, securities or other property which is received by Joint Company and/or its shareholders in connection with such Exit Event.

 “Exit Event” means a transaction or series of transactions producing in a combined fashion one event, which is (a) a
merger with a third party, excluding a merger following which Joint Company is the surviving corporation and the shareholders of the Joint Company prior to the merger constitute the majority of the shareholders following such merger;
(b) acquisition type transaction involving the sale of all or a substantially of the shares of the Joint Company to an acquiring Person or merged Person; (c) the sale of all or substantially all the assets of the Joint Company; or
(c) any initial public offering of the Joint Company’s shares (“IPO”); excluding, in all cases, a transaction with a subsidiary or a transaction effected for the sole purpose of changing the domicile or corporate
restructuring and/or reorganization. 
 7. Expenses. The Company shall reimburse Isorad’s external legal fees in connection with
(a) the prior amendments to the Agreement (and related negotiations) in the amount of NIS 21, 862 (including VAT), and (b) this Addendum to the extent incurred. Payment shall be made no later than 30 days following the execution of this
Addendum by all three parties. 
 8. Amendment Fee. The Company agrees that in the event any additional amendment or addendum to the
Agreement is required, it shall pay Isorad a fixed fee of US$ 15,000 for such amendment (which fee shall cover all of Isorad’s internal and external expenses in connection with such request through execution of the amendment or addendum). 

9. No Other Changes. Except as set forth herein, all provisions of the Agreement shall remain unchanged. 

10. Counterparts. The Parties may execute this Addendum in two or more counterparts, each of which shall be deemed an original. 

[signature page follows] 

  
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 IN WITNESS WHEREOF, the parties hereby sign this Addendum to License Agreement: 

 

									
	Isorad LTD.	 		 	Security Matters LTD.
					
	By:	 	[*******]	 		 	By:	 	/s/ Haggai Alon
	Name:	 	[*******]	 		 	Name:	 	Haggai Alon
	Title:	 	[*******]	 		 	Title:	 	CEO

  

									
					
	By:	 	[*******]	 		 	By:	 	 
	Name:	 	[*******]	 		 	Name:	 	 
	Title:	 	[*******]	 		 	Title:	 	 

  

	
	ACCEPTED AND AGREED:
	 
	JOINT COMPANY
	
	By:
	Name:
	Title:

  
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