Document:

Summary Term of a Form of Loan Agreement

 Exhibit 10.11 

Summary of terms of Loan Agreement 

Made and entered into in
                     on          of
                    ,             

 

					
	By and among:	 	D. Medical Industries Ltd.
		 	Of 7 Jabotinsky Street
		 	Ramat Gan
		 	(Hereinafter: the “Company”)            On the first side;
		
	And	 	[G Sense Ltd. / Nilimedix Ltd. / MedexSet Ltd., as applicable]
		 	Company No.                     
		 	  
	  	
		 	(Hereinafter:“[name of subsidiary]”) On the second side;

WHEREAS, [name of subsidiary] approached the Company in a request for a loan in the amount of NIS
                    , that will be linked to the CPI and will bear an annual interest of     %, for an unlimited period and up
until      years from the date of the grant of the loan; and 
 WHEREAS, the Company was willing to grant the loan to [name
of subsidiary]; 
 NOW, THEREFORE, IT HAS BEEN PROVIDED AND AGREED AMONG 

THE PARTIES AS FOLLOWS: 
  

	1.	Preamble and Interpretation 

  

	 	1.1	The preamble to this agreement, its parties’ representations and its attached annexes form an integral part hereof. 

 

	 	1.2	This agreement’s division into sections and annexes and the headings appearing herein were made for convenience purposes and may not be used for its
interpretation. 

  

	2.	The Loan 

 2.1
Subject to what is stated in this agreement, the Company will lend [name of subsidiary] the sum of NIS                      (hereinafter:
“The Loan”). 
 2.2 The Loan will be linked to the CPI (whereas on the date of repayment of the Loan, the ratio
between the known index at the time of the repayment of the Loan and the known index on the date of grant of the Loan and the balance of the principal and interest will be revalued) and will bear an annual interest at the rate of
    %. For avoidance of doubt it is clarified that the principal amount of the Loan together with linkage differentials and interest will be paid at the end of the Loan term. 

2.3 The Loan will be for a period of              years commencing as of the
date of grant of the Loan. Upon the lapse of a year following the date of execution of 

 
this agreement, the Company will be able to demand from [name of subsidiary] immediate repayment of the loan, and [name of subsidiary] shall be obligated to repay, within 90 days of the aforesaid
demand, the unpaid balance of the Loan (Principal + interest + linkage differentials). 
  

	3.	General 

 3.1 This
agreement fully reflects the parties’ agreements, and cancels all representations, understandings or agreements that have been made, if any, before signing this agreement. 

3.2 The parties undertake to be faithful and honest, one towards the other. 

3.3 The Tel-Aviv-Jaffa courts shall have exclusive jurisdiction regarding the execution of this agreement and the undertakings under it.

 3.4 Any addendum and/or amendment to this agreement will not be valid unless made in writing and signed by the parties.

 3.5 The parties’ addresses for this agreement’s purposes will be determined by the parties, as detailed in the
aforesaid preamble. Any notice that will be sent from one party to the other in registered mail according to his address will be considered as if it reached its destination within 72 hours from the time it was given to the mail delivery, or if
delivered by hand and/or by fax and/or any other instrument for message delivery – upon delivery. 
 In witness whereof,
the undersigned parties have signed 
  

			
	 [signature]
	    	 [signature]

	 The Company
	    	[name of subsidiary]Translation of Agreement, dated April, 2005

 Exhibit 10.12 

Agreement 
 Drawn up and
signed in Ramat Gan on the      day of the Month of April, 2005 
  

			
		
	Between:	  	 Mr. Avraham Shekalim, I. D. No. 016314312

24 Hashoshanim St., Nesher
 (Hereinafter:
“Mr Shekalim”)

		
		  	The Party of the First Part;
		
	And between:	  	 A Company under Establishment by D. Medical Industries Ltd.

8 Hamenofim St., Herzliya Pituach.
 (Hereinafter:
“The Company Under Establishment”)

		
		  	The Party of the Second Part;
		
	Whereas	  	D. Medical Industries Ltd. (hereinafter: “D. Medical”) requests to establish a company that will deal with the development, manufacture, marketing and sales of a sensor
for the measurement of the concentration of glucose in the blood stream (hereinafter: “The Sensor”) and/or any other action related to the sensor;
		
	And whereas	  	And the company under establishment entered into an agreement with NiliMed Ltd, with respect to the sensor. A copy of the agreement is attached to this agreement as an
inseparable part thereof, marked at Appendix A;
		
	And whereas	  	The company is interested in obtaining development services with respect to the sensor (hereinafter: “The Services”) from Mr. Shekalim and Mr. Shekalim agrees
to provide the stated development services to the company, subject to the terms and conditions of this agreement;
		
	And whereas	  	The parties wish to enter into this agreement for purposes of arranging the receiving of the consulting and development services from Mr. Shekalim for the company under
establishment.

 Therefore, the Parties Declare, Condition and Agree as Follows: 

 

	1.	Preamble and Interpretation 

  

	 	1.1	The preamble to this agreement constitutes an inseparable part of this agreement and will be read as one entity together with all its clauses. 

 

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	 	1.2	The headings of the clauses in this agreement are for convenience only and they do not have, nor will they be given any weight for purposes of interpretation.

  

	 	1.3	No change, addition or detraction to this agreement will be valid after the date of the signing thereof unless the change is made in writing and signed by both parties.

  

	 	1.4	None of the terms and conditions and instructions included in this agreement derogate from any other term and condition or any other instruction in this agreement but
rather add to it, unless stipulated otherwise in this agreement. 

  

	 	1.5	Any instruction and/or expression in the singular will also include the plural and vice versa, and instruction and / or expression in the feminine gender will also
include the masculine gender and vice versa, and a reference to an individual person will also include a corporation, and vice versa. 

  

	 	1.6	Every appendix attached to this agreement constitutes an inseparable part thereof. 

 

	2.	The Undertakings and Declaration by Mr. Shekalim 

  

	 	2.1	Mr. Shekalim undertakes to invest 10 hours per week of his time to provide services to the company under establishment, in accordance with the milestones agreed
upon between the company under establishment and Nili Med Ltd (Hereinafter: “Nili Med”), and detailed in Appendix 2.1 to this agreement, or until a total amount of $6,000,000 US dollars will be invested in the company under
establishment, the later of the two, as long as no deterioration in the terms of employment of Mr. Shekalim will occur, whether Mr. Shekalim will receive remuneration from Nili Med and/or from the company under establishment, in the two
companies accumulatively. 

  

	 	2.2	The remuneration of Mr. Shekalim within the framework of his work in the company under establishment will be NIS 8,000 gross. The accompanying social benefits to
the terms of employment will be relative as agreed upon between Mr. Shekalim and Nili Med Ltd. The parties agree that the employment agreement will be signed between the company under establishment and Mr. Shekalim.

  

	 	2.3	All the rights in the sensor and/or in the intellectual property which is likely to flourish there from, including patents or applications to register a patent, belong
to Nili Med Ltd. 

  

	3.	Granting of Options to Mr. Shekalim in the Company under Establishment 

 

	 	3.1	 The parties agree that Mr. Shekalim will be entitled to the issuance of options convertible into shares of the company under establishment, of a

  

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type of the most preferable shares that will be held at any time by D. Medical Industries Ltd. in the company under establishment without recompense, at a 0 (“Zero”) exercise price, for
an unlimited exercise period (hereinafter: “The Option”). The option can be exercisable in a number of shares that will reflect the rate of holding by Mr. Shekalim of 8% (eight percent) of the issued and paid share capital of
the company under establishment, based on full dilution of all the securities that will be issued by the company under establishment at any time (hereinafter: “Full Dilution”). It is agreed that until an investment of 6,000,000 (six
million) US dollars will be made in the share capital of the company, the value of the holdings by Mr. Shekalim will not be diluted below 8% of the share capital of the company as stated above, as a result of the issuance of securities of the
company under establishment, to any person, including, but not limited to, the investors who will invest the total of 6,000,000 US dollars as stated. 

  

	 	3.2	In spite of the above stated, in the case that prior to the completion of an investment of 2,500,000 US dollars, there will be an exit in the company under
establishment, additional option deeds will be issued to Mr. Shekalim at no consideration, which will grant him the right to purchase, at no consideration, and at an exercise price of 0 (“zero”), 15% of the issued and paid up share
capital in the company, under Full Dilution at the time of the exit. 

 In this clause – “Exit”
– is the sale of the majority of the shares of the company to a third party and/or the sale of the technology and/or the intellectual property of the company to a third party in one action or in a series of actions. Also, in this clause, exit
will be considered as a public issue or registering for trading, on any Stock Exchange whatsoever, of the shares of the company under establishment and/or the merger of the company under establishment with a third party. 

 

	 	3.3	In order to eliminate doubt, it is clarified that within the framework or an additional investment, after the completion of the overall investment of 6,000,000 US
dollars in the company under establishment, the total options to which Mr. Shekalim is entitled, will be diluted, in accordance with the rate of dilution by which the holdings of D. Medical in the company under establishment will be diluted,
within the framework of any round of investment. 

  

	 	3.4	In order to eliminate doubt, it is clarified that Mr. Shekalim will be entitled to exercise the options, or part thereof, at any time. 

 

	 	3.5	The parties agree that in the case of an IPO of the company under establishment or in the case of an M&A of the company under establishment, Mr. Shekalim will
be obligated to convert the options into shares in the company under establishment. 

  

	 	3.6	As long as Mr. Shekalim holds shares and/or options in the company under establishment, Mr. Shekalim will be a Director in the company.

  

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	 	3.7	It is agreed that Mr. Shekalim will be the manager of the company and that the Board of Directors of the company will be able to change the identity of the
manager. 

  

	4.	Bonus to Avraham Shekalim 

  

	 	4.1	In the case that the company under establishment will sign a strategic partnership agreement for the marketing of the sensor with an international company:

 In the matter of this clause “Strategic Partnership” and “Strategic Partner” are a
partnership with an international company, for the marketing of the sensor. 
  

	 	4.1.1	Should an agreement be signed with a strategic partner which conducts business activities, including, but not limited to the sale of goods in the USA (hereinafter:
“The American Strategic Partner”), Mr. Shekalim will receive, from the company under establishment, $200,000 or 500,000 options convertible to 500,000 shares in D. Medical Industries Ltd., the public company, in accordance with
a resolution of the company under establishment, (the resolution of the company under establishment will be whether to grant Mr. Shekalim a cash bonus or convertible share options) which will be paid to Mr. Shekalim within 30 days of the
date of the completion of the business deal with the Strategic Partner. 

  

	 	4.1.2	Should an agreement be signed with a strategic partner which conducts business activities, including, but not limited to the sale of goods in Europe (hereinafter:
“The European Strategic Partner”), Mr. Shekalim will receive, from the company under establishment, $100,000 or 250,000 options convertible to 250,000 shares in D. Medical Industries Ltd., the public company, in accordance with
a resolution of the company under establishment, (the resolution of the company under establishment will be whether to grant Mr. Shekalim a cash bonus or convertible share options) which will be paid to Mr. Shekalim within 30 days of the
date of the completion of the business deal with the Strategic Partner. 

 Should, after the signing of the
agreement with a European Strategic Partner, a strategic agreement be signed with an American Strategic Partner, then Mr. Shekalim will receive $100,000 from the company under establishment, or 250,000 additional options convertible to 250,000
shares in D. Medical Industries Ltd., the public company, in accordance with a resolution of the company under establishment, (the resolution of the company under establishment will be whether to grant Mr. Shekalim a cash bonus or convertible
share options) which will be paid to Mr. Shekalim within 30 days of the date of the completion of the business deal with the Strategic Partner. 
  

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	 	4.2	In order to eliminate doubt, it is clarified that should Mr. Shekalim receive the bonus in accordance with clause 4.1.1 of this agreement, Mr. Shekalim will
not be entitled to a bonus in accordance with clause 4.1.2 of this agreement and vice versa, that is, should Mr. Shekalim receive the bonus in accordance with clause 4.1.2 of this agreement, Mr. Shekalim will not be entitled to a bonus in
accordance with clause 4.1.1 of this agreement. 

  

	 	4.3	D. Medical Industries Ltd. will approve, by means of its signature in the margin of this agreement, its consent to issuance of the options as stated in this Clause 4.

  

	5.	Taxes 

  

	 	5.1	The company under establishment will bear the stamp tax applicable to this agreement. 

 

	 	5.2	Each party will bear the taxes applicable to it as a result of the execution of the issuance of the option deeds in accordance with this agreement and/or the exercise
of the options in accordance with this agreement. 

  

	6.	Condition Precedent 

 This
agreement will become valid upon the occurrence of all of the following terms and conditions: 
 This agreement is subject to the
approval of the Board of Directors of the company under establishment – which will be given no later than 14 days after the date of the signing of this agreement. 

The completion of the investment agreement between the company under establishment and D. Medical, for the investment of 300,000 US
dollars in the company under establishment as a budget for the first milestone, in accordance with the attached Appendix 2.1. 
  

	7.	The Closing Date of the Transaction 

The closing of the transaction in accordance with this agreement will be carried out within 14 days from the date of the approval of the
transaction, by the Board of Directors of the company under establishment. 
  

	8.	The Closing of the Transaction 

On the closing date of the transaction, Mr. Shekalim and the company under establishment will convene for a meeting at the offices of
the company under establishment and will proceed as detailed below: 
  

	 	8.1	The company under establishment will produce, for Mr. Shekalim, an authorization from the Board of Directors of the company under establishment, approving the
entering by it into this agreement. 

  

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	 	8.2	The company under establishment will produce to Attorney Victor Tshuva, the options deeds in accordance with clause 3 above. 

 

	 	8.3	D. Medical will transfer 300,000 US dollars to the company under establishment. 

 

	9.	General 

 The parties
undertake to act in good faith and out of mutual cooperation in order to execute the instructions of this agreement, and including taking any action, to sign any document and to obtain any authorization required to execute the terms and conditions
of this agreement. 
  

	10.	Notifications 

  

	 	10.1	A notification that will be dispatched in accordance with the addresses of the parties detailed in the preamble to this agreement, by registered mail, will be
considered as having been received by the addressee within 72 hours from the date of its dispatch. Should such a notification be handed over in person, it will be considered to have been received at the time of its handing over.

  

	 	10.2	Each party will be entitled to change its address for purposes of this agreement to another address in Israel, by means of a written notification that will be
dispatched to the other party at its stated address. 

  

	 	10.3	Any change or correction to this agreement will only be carried out in writing and will be signed by all the parties to this agreement. Any change or correction of
Clause 4 above will also be signed by D. Medical Industries Ltd, as a condition for the validity thereof. 

  

	 	10.4	There is nothing in any remedy granted to either of the parties towards the other party to exhaust the remedies granted to a party to this agreement in accordance with
the law. 

 And in witness the parties have signed at the venue and on the date 

 

			
	The Company under Establishment	  	Mr. Shekalim
	Represented by D. Medical Industries Ltd.	  	
		
	( - signature - )	  	( - signature - )

 Date:
                                        

  

 6 

 Authorization 

I, the undersigned, D. Medical Industries Ltd., hereby confirm my consent to the issuance of the options to Mr. Shekalim upon the occurrence of that
stated in Clause 4 of this agreement. 
 In witness have I affixed my signature. 

 

			
	  
	 	
	D. Medical Industries Ltd.	 	

 By:
                                        
and
                                        

 Date: March     , 2005 

Authorization by an Attorney to Rights of Signature 

I, the undersigned, Attorney Victor Tshuva, the Legal Council of the D. Medical Industries Ltd. Company, hereby confirm that Messrs
                     and
                    , who signed the above authorization, on behalf of D. Medical Industries Ltd., are qualified to sign on behalf of D.
Medical Industries Ltd. on the above stated authorization and to obligate it [D. Medical Industries Ltd.] to that stated therein and in Clause 4 of the agreement and this in accordance with the Incorporation Documents of D. Medical Industries Ltd.
or any agreement to which it is subject, as well as in accordance with the signatory rights adopted by D. Medical Industries Ltd. and which are valid up to this point in time. 

Date: March     , 2005 
  

			
	  
	 	
	Victor Tshuva, Attorney	 	

  

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 Appendix A 

[See Exhibit 2.2 to the Registration Statement] 

 Appendix 2.1 

[None]

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