Document:

Unassociated Document

     

    Rosetta
      Genomics Ltd. 

     

    April
      30, 2004

     

     

    To
      

    Mr.
      Yossi
      Ben-Yossef 

    Kadima
      Hi-Tech Ltd. (“Kadima”) 

     

    Dear
      Yossi, 

     

    Re:
      Rosetta Genomics Ltd. (the “Company”) – New
      Investment
      Round

     

     

    Pursuant
      to our conversation and for the sake of good order, following is a summary
      of
      the terms agreed in our conversations, with respect to the possible
      participation of new investors organized by Kadima, in Rosetta’s contemplated
      new
      investment round: 

     

    
      	
              1.         
                

            	
              Rosetta
                is planning to close a new investment round of $3M-$5M
                from investors at a pre-money valuation of $50M (the “Investment
                Round”) not later than June 30, 2004 (the “Closing Date”). 
                

            

    

     

    
      	
              2.         
                

            	
              Kadima
                will be entitled to organize a group of investors to participate
                in the
                Investment Round (such investors: the “Kadima Investors”), under the
                following terms:

            

    

     

    
      	
               

            	
              2.1  
                 

            	
              All
                of the Kadima Investors will invest through Kadima, who will be their
                sole
                representative towards the Company. All of the shares to be allotted
                at
                the closing of the Investment Round, in consideration for the investment
                of the Kadima Investors, will be allotted to Kadima who will be the
                sole
                Company shareholder representing, as a trustee, such Kadima Investors.
                For
                such purposes Kadima will enter into internal trust agreements with
                the Kadima Investors with respect to the holding of such shares,
                in the
                form already existing in relation to present investors introduced
                to the
                Company by Kadima or such other form approved in advance and in writing
                by
                the Company.

            

    

     

    
      	
               

            	
              2.2

            	
              The
                terms of the Investment Round will be reflected in an investment
                agreement, which will be drafted by Rosetta’s
                counsels.

            

    

     

    
      	
               

            	
              2.3
                

            	
              Kadima
                will appoint one legal counsel who will represent all of the Kadima
                Investors in the negotiations with the Company’s legal counsels, with
                respect to the terms of the Investment Agreement. The Company will
                not
                re-negotiate any material terms of the Investment Agreement with
                individual Kadima Investors.

            

    

     

    
      	
               

            	
              2.4
                

            	
              Kadima
                will notify the Company in advance of the identity of the Kadima
                Investors, which will be subject to the Company’s
                approval.

            

    

     

    
      	
              3.         
                

            	
              Kadima
                shall be entitled to the following consideration for the investments
                made
                by Kadima Investors under the Investment
                Round:

            

    

     

    
      	
               

            	
              3.1
                

            	
              A
                cash consideration equal to 4% of the cash investments, which will
                be made
                by Kadima Investors in accordance with the Investment Round. VAT
                shall be
                added to such cash consideration against a proper tax invoice of
                Kadima.

            

    

     

    Kadima-Rosetta
      Agreement April 30, 2004

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              3.2
                

            	
              In
                addition to the consideration specified in Section 3.1 above Kadima
                shall
                be entitled to an option to purchase an amount of ordinary shares of
                the Company equal to up to 2% of the amount of shares allotted by
                the
                Company to the Kadima Investors in accordance with the Investment
                Round,
                at the price per share of the Investment Round.  The option will be
                valid for 18 months following the closing of the Investment Round. 
                

            

    

     

    
      	
              4.         
                

            	
              The
                option to purchase up to 33,577 Ordinary Shares for a price of $0.9158
                per
                share, as set forth in Section 1.2 of the letter agreement between
                the
                Company and Kadima, dated May 28, 2002, as extended by the letter
                agreement dated March 3, 2003 (the “First Option”) is hereby
                extended until the Closing Date.

            
	 	 
	5. 	
              In
                the event that at least $3M are invested by Kadima Investor’s under the
                terms of the Investment Round, by not later than the Closing Date,
                the
                exercise periods of the following existing options of Kadima to purchase
                Ordinary Shares of the Company, shall automatically be extended for
                an
                additional period of eighteen months: (i) the First Option, (ii)
                the
                option to purchase up to 53,272 Ordinary Shares for a price of $1.3281
                per
                share, as set forth in Section 3.2 of the letter agreement between
                the
                Company and Kadima, dated March 3, 2003.

            
	 	 
	6.	Please
              confirm your agreement to the terms set forth in this Agreement by
              signing
              below.
	 	 
	7.	
              For
                the avoidance of doubt it is hereby stipulated that this document
                deals
                only with Kadima’s consent to provide certain services to the Company and
                the terms hereof and shall not be considered as a consent (of any
                kind or
                sort) being given on behalf of the existing investors in the Company
                who
                are represented by Kadima to the proposed Investment Round or any
                of its
                terms. Those investors’ rights are fully
                reserved.

            

    

     

    

     

    
      	 	Sincerely
              yours,
	 	 
	 	 
	 	
              /s/
                Dr. Isaac Bentwich 

            

    

    
      	 	
              Dr.
                Isaac Bentwich, CEO 

              Rosetta
                Genomics Ltd.

            

    

     

      
        

      

    

     

    We
      hereby
      confirm our agreement to the terms set forth above: 

     

    
      	 	 
	 	/s/
Yossi
              Ben Yossef

    

    
      	 	
              Kadima
                Hi-Tech Ltd.

              Yossi
                Ben Yossef

            

    

     

    Kadima-Rosetta
      Agreement April 30, 2004Rosetta
      Genomics Ltd.

    April
      4,
      2005

    To

    Mr.
      Yossi
      Ben-Yossef

    Kadima 
      Hi-Tech Ltd. (“Kadima”)

    

    Dear
      Yossi,

    

    Re:
      Rosetta
      Genomics
      Ltd.
      (the "Company") -
      New
      Investment Round

    

    Pursuant
      to our conversations and for the sake of good order, following is a summary
      of
      the terms
      agreed with respect to the possible participation of investors organized by
      Kadima, in Rosetta's
      new investment round:

     

    
      	1.    
              	
              The
                Company is seeking to complete a convertible bridge loan financing
                round
                (the "Bridge
                Loan") of
                up to $5M not
                later
                than June 15, 2005,

            

    

     

    
      	2.     
              	
              Kadima
                will be entitled to organize a group of investors to participate
                in the
                Bridge Loan (such investors: the "Kadima Investors"),
                under the following terms:

            

      	 	 

    

    
      	
            	2.1  
              	
              All
                of the Kadima Investors will invest through Kadima, who will be their
                sole
                representative
                towards the Company. All of the shares to be allotted upon conversion
                of the Bridge Loan, in consideration for the investment of the Kadima
                Investors,
                will be allotted to Kadima who will be the sole Company shareholder
                representing,
                as a trustee, such Kadima Investors. For such purposes Kadima will
                enter
                into internal trust agreements with the Kadima Investors with respect
                to
                the holding
                of such shares, in the form already existing in relation to present
                investors introduced
                to the Company by Kadima or such other form approved in advance
                and
                in writing by the Company.

            

      	 	 	 

    

    
      	
            	2.2  
	
              The
                terms of the Bridge Loan will be reflected in a term sheet and bridge
                loan
                agreement (the "Agreement"), which will he drafted by
                Rosetta's counsel.

            

      	 	 	 

    

    
      	
            	2.3  
               	
              Kadima
                will appoint one legal counsel who will represent all of the Kadima
                Investors
                in the negotiations with the Company's legal counsel, with respect
                to the
                terms
                of the Agreement. The Company will not re-negotiate any material
                terms of
                the
                Agreement with individual Kadima
                Investors.

            

      	 	 	 

    

    
      	
            	2.4  
               	
              Kadima
                will notify the Company in advance of the identity of the Kadima
                Investors,
                which will be subject to the Company's
                approval.

            

      	 	 	 

    

    
      	3.     
              	
              Consideration:

            

      	 	 

    

    
      	
            	3.1
              	
              Kadima
                Investments: Kadima shall be entitled to the following consideration
                for
                the investments made by Kadima Investors under the Bridge
                Loan:

            

      	 	 	 

    

    
      	
            	3.1.1   
               	
              If
                the Kadima Investors invest an aggregate amount of less than $500,000
                within the scope of the Bridge Loan:

            

      	 	 	 

    

    
      	
            	3.1.1.1 
              	
              A
                cash commission of 5% of the cash investments made by Kadima
                Investors in the Bridge Loan (independently of the actual conversion
                of
                such loan/s). VAT shall be added to such cash
                consideration against a proper tax invoice of
                Kadima

            

      	 	 	 

    

    
      	
            	3.1.1.2 
              	
              In
                addition to the consideration specified in Section 3.1.1.1 above
                Kadima shall be entitled to an option to purchase an amount
                of ordinary shares of the Company equal to up to 3% of the
                potential amount of shares allotted by the Company to the Kadima
                Investors upon conversion of the Bridge Loan, at the price
                per share of the converted shares. The option will be valid for
                36 months following the closing of the Bridge
                Loan.

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    
      	
            	3.1.2 	
              If
                the Kadima Investors invest an aggregate amount of at least $500,000
                within
                the scope of the Bridge Loan:

            

      	 	 	 

    

    
      	
            	3.1.2.1 
              	
              A
                cash commission of 6% of the cash investments made by Kadima
                Investors in the Bridge Loan (independently of the actual
                conversion of such loan/s). VAT shall be added to such cash
                consideration against a proper tax invoice of
                Kadima

            

      	 	 	 

    

    
      	
            	3.1.2.2 
              	
              In
                addition to the consideration specified in Section 3.1.2.1 above
                Kadima shall be entitled to an option to purchase an amount
                of ordinary shares of the Company equal to up to 4% of the
                potential amount of shares allotted by the Company to the Kadima
                Investors upon conversion of the Bridge Loan, at the price
                per share of the converted shares. The option will be valid for
                36 months following the closing of the Bridge
                Loan.

            

      	 	 	 

    

    
      	
            	3.1.2.3 
              	
              The
                Company shall participate in the legal fees and costs incurred
                by Kadima in connection with the Bridge Loan, including in connection
                with
                the due diligence process and the negotiations
                and preparation of the Agreement, in an aggregate amount
                of up to US$ 10,000 +VAT.

            

      	 	 	 

    

    
      
        	
              	3.2 
                	
                Coronis
                  Investments: Kadima shall be entitled to the following consideration
                  for
                  the
                  investments made by Investors introduced to the Company by Coronis
                  Partners and
                  for which
                  Coronis Partners receives consideration from the Company under
                  the
                  Bridge Loan (the "Coronis Investors"):

              

        	 	 	 

      

    

    
      	
            	
              3.2.1 
                

            	
              If
                the Coronis Investors invest an aggregate amount of less than $500,000
                within the scope of the Bridge Loan:

            

      	 	 	 

    

    
      	
            	3.2.1.1	
              A
                cash commission of 1% of the cash investments made by Coronis
                Investors in the Bridge Loan (independently of the actual
                conversion of such loan/s). VAT shall be added to such cash
                consideration against a proper tax invoice of
                Kadima

            

      	 	 	 

    

    
      	
            	3.2.1.2	
              In
                addition to the consideration specified in Section 3.2.1.1 above
                Kadima shall be entitled to an option to purchase an amount
                of ordinary shares of the Company equal to up to 0.6% of the potential
                amount of shares allotted by
                the Company to the Coronis Investors upon conversion of the Bridge
                Loan,
                at the price
                per share of the converted shares. The option will be valid for
                36 months following the closing of the Bridge
                Loan.

            

      	 	 	 

    

    
      	
            	3.2.2 
              	
              If
                the Coronis Investors invest an aggregate amount of at least $500,000
                within
                the scope of the Bridge Loan:

            

      	 	 	 

    

    
      	
            	3.2.2.1 
              	
              A
                cash commission of 1.5% of the cash investments made by Coronis Investors
                in the Bridge Loan (independently of the actual conversion of such
                loan/s). VAT shall be added to such cash
                consideration against a proper tax invoice of
                Kadima.

            

    

     

    
      	
            	3.2.2.2 
              	
              In
                addition to the consideration specified in Section 3.2.2.1 above
                Kadima shall be entitled to an option to purchase an amount
                of ordinary shares of the Company equal to up to 1% of the
                potential amount of shares allotted by the Company to the Coronis
                Investors upon conversion of the Bridge Loan, at the price
                per share of the converted shares. The option will be valid for
                36 months following the closing of the Bridge
                Loan.

            

    

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	
            	3.3 
              	
              The
                cash commission(s) shall be paid to Kadima no later than 7 business
                days
                after the
                investments are received by the Company. For the avoidance of doubt,
                the
                above-mentioned
                consideration shall apply solely with respect to the Bridge Loan
                under
                this agreement.

            

    

    

    
      	4.    	
              For
                any investment made in the Company in a subsequent private equity
                financing round ("Subsequent
                Round") by
                a
                Kadima Investor or by a Coronis Investor who invested in  the
                Bridge Loan, Kadima will be entitled to consideration as
                follows:

            

    

     

    
      	
            	4.1	
              For
                sums
                up
                to
                the Kadima Investor's or Coronis Investor's preemptive rights in
                the
                Subsequent Round, Kadima will be entitled to an amount of 50% of
                the cash
                commission
                and options calculated pertaining to the such sums according to the
                principles
                and percentages set forth in section 3
                above.

            

    

     

    
      	
            	4.2	
              For
                sums beyond the Kadima Investor's or Coronis Investor's preemptive
                rights
                in
                the Subsequent Round, Kadirna will be entitled to cash commission
                and
                options calculated
                pertaining to such sums according to the principles and percentages
                set
                forth in section 3 above.

            

    

     

    For
      example, if Kadima receives cash consideration of 6% and options of 4% as
consideration
      for the Bridge Loan, and a Kadima Investor whose preemptive rights
      in
      a
      subsequent round are 550,000 invests $150,000, Kadima will receive 3% cash
      and
2%
      options on the first $50,000 that the Kadirna Investor invests, and 6% cash
      and
      4% options
      on the remaining $100,000 that
      the
      Kadima Investor invests.

     

    
      	5.    	
              For
                the avoidance of doubt it is hereby stipulated that this document
                deals
                only with Kadima's
                consent to provide certain services to the Company and the terms
                hereof
                and shall
                not be considered as a consent (of any kind or sort) being given
                on behalf
                of the existing
                investors in the Company who are represented by Kadima to the proposed
                Bridge Loan
                or any of its terms. Those investors' rights
                are
                fully reserved.

            

    

     

    
      	6.    	
              Please
                confirm your agreement to the terms set forth in this Agreement by
                signing
                below.

            

    

     

    
 

    
      	 	 	 
	 	Sincerely yours,
	 	 
	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	 /s/ Amir Avniel
	 	
              

            
	 	
              Amir Avniel, COO 

              Rosetta Genomics
                Ltd.

            

    

     

     

     

    
      

    

    

    We
      hereby
      confirm our agreement to the terms set forth above:

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ 
Yossi
              Ben Yossef
	 	
              

            
	 	
              Kadima Hi-Tech Ltd. 

              Yossi Ben Yossef

            

    

     

     

    
      
        
        

      

      
        3

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