Document:

Exhibit 10.35 Assumption Agreement

PREPARED BY:                )
)
Anderson, McCoy & Orta, P.C.        )
100 N. Broadway, Suite 2600            )
Oklahoma City, Oklahoma  73102        )
Attn: H. Anne Nicholson            ) 
Loan No. 85-0201155                )

ASSUMPTION AGREEMENT
This Assumption Agreement (“Assumption Agreement”) is made this 22nd day of December, 2011, by U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE, SUCCESSOR-IN-INTEREST TO BANK OF AMERICA, N.A., AS TRUSTEE, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2003-TOP12 (“Noteholder”), Scottsdale Pinnacle LP, a California limited partnership (“Borrower”), Howard Banchik and Steven J. Fogel, each an individual (collectively “Original Guarantor”), Whitestone Pinnacle of Scottsdale, LLC, a Delaware limited liability company (“Assumptor”), and Whitestone REIT Operating Partnership, LP, a Delaware limited partnership and Whitestone REIT, a Maryland Real Estate Investment Trust (collectively “New Guarantor”).
RECITALS
		
	A.
	Noteholder's predecessor in interest, Bear Stearns Commercial Mortgage, Inc., a New York corporation (“Original Lender”), made a loan to Borrower in the original principal amount of Fifteen Million Seven Hundred Thousand and no/100 Dollars ($15,700,000.00) (“Loan”), under the terms and provisions set forth in the following loan documents, all of which are dated as of May 15, 2003, unless otherwise noted:+

		
	1.
	Promissory Note (“Note”) in the original principal amount of the Loan, made by Borrower and payable to Original Lender, as amended by an Amendment to Promissory Note;

		
	2.
	Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing executed by Borrower to Stewart Title & Trust of Phoenix, Inc., as trustee, for the benefit of Original Lender which secures the Note and other obligations of Borrower (“Security Instrument”), and which Security Instrument was recorded on May 15, 2003, as Document No. 2003-0624539 with the Maricopa County Recorder, State of Arizona (“Official Records”), the Original Lender's interest under which was assigned to Noteholder by instrument recorded on January 9, 2004, as Document No. 2004-0025300, in the Official Records. The Security Instrument was subsequently modified by that certain Partial Release of Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing and Partial Release of Assignment of Leases and Rents dated as of May 23, 2008 and recorded in the Official Records as Document No. 20080658279 on July 29, 2008 (“Partial Release Documents”). The land, improvements and other real property which are currently subject to the Security Instrument, as modified by the Partial Release Documents, are hereinafter referred to as the “Property” and the equipment, machinery and other personal property which are subject to the Security instrument as modified by the Partial Release Documents are hereinafter referred to as the “Collateral”;

		
	3.
	Assignment of Leases and Rents executed by Borrower, which was recorded on May 15, 2003, as Document No. 2003-0624540, with the Official Records, the Original Lender's interest under which was assigned to Noteholder by instrument recorded on January 9, 2004, 

as Document No. 2004-0025300 in the Official Records;
		
	4.
	Indemnity Agreement executed by Original Guarantor (“Guaranty”);

		
	5.
	Conditional Assignment of Management Agreement, executed by Borrower and Westwood Financial Corp.;

		
	6.
	Replacement Reserve, Leasing Reserve and Security Agreement executed by Borrower (“Reserve and Security Agreement”);

		
	7.
	Cash Management Agreement executed by Borrower, LaSalle Bank National Association and Original Lender (“Cash Management Agreement”);

		
	8.
	Assignment of Agreements, Permits and Contracts executed by Borrower and Original Lender;

		
	9.
	UCC-1 Financing Statement recorded on May 15, 2003, as Document No. 2003-0624541 with the Official Records, as amended on by UCC Financing Statement Amendment recorded July 29, 2008 as Document No. 20080658280 with the Official Records; and

		
	10.
	UCC-1 Financing Statement filed on July 3, 2003, as Instrument 0319160012, with the California Secretary of State (“State UCC”).

The above documents and any other loan documents executed by Borrower, including, in each case, any prior amendments thereto, together with this Assumption Agreement are hereinafter collectively defined as the “Loan Documents”.
		
	B.
	As of December 14, 2011:

The principal balance outstanding under the Note was $14,131,756.02;
		
	1.
	Accrued interest on the Note has been paid through November 30, 2011;

		
	2.
	The balance in the Escrow Fund for the payment of Taxes (as such terms are defined in Sections 3.4 and 3.5 of the Security Instrument) was $168,530.45;

		
	3.
	The balance in the Escrow Fund for the payment of Insurance Premiums (as such terms are defined in Sections 3.3 and 3.5 of the Security Instrument) was $29,956.42; and,

		
	4.
	The balance in the Leasing Reserve (as defined in the Reserve and Security Agreement) was $40,421.79, and deposits to the Leasing Reserve are currently suspended pursuant to the terms of the Reserve and Security Agreement; and

		
	5.
	The balance in the Replacement Reserve (as defined in the Reserve and Security Agreement) was $142,107.04.

		
	C.
	Borrower has sold and conveyed the Property and the Collateral to Assumptor, or is about to sell and convey the Property and the Collateral to Assumptor, and both parties desire to obtain from Noteholder a waiver of any right Noteholder may have under the Loan Documents to accelerate the Maturity Date of the Note by virtue of such conveyance.

		
	D.
	Subject to the terms and conditions hereof, Noteholder is willing to consent to the sale and conveyance of the Property and the Collateral, and to waive any right of acceleration of the Maturity Date of the Note upon assumption by Assumptor of all obligations of Borrower under the Loan Documents.

NOW THEREFORE, FOR VALUABLE CONSIDERATION, including, without limitation, the mutual covenants and promises contained herein, the parties agree as follows:
		
	1.
	Incorporation. The foregoing recitals are incorporated herein by this reference.

		
	2.
	Assumption Fee. As consideration for Noteholder's execution of this Assumption Agreement and in addition to any other sums due hereunder, Assumptor agrees to pay Noteholder or Noteholder's servicer(s) (all as set forth in the escrow instructions to be executed in connection with the closing of this assumption) an assumption fee of $141,317.56 (representing 1% of the outstanding principal balance of the Loan as of the date of this Assumption Agreement).

		
	3.
	Conditions Precedent. The following are conditions precedent to Noteholder's obligations under this Assumption Agreement:

		
	a.
	The irrevocable commitment of First American Title Insurance Company (“Title Company”) to issue a new policy identical to that certain policy issued by Stewart Title & Trust of Phoenix (“Existing Title Policy”), in form and substance acceptable to Noteholder and without deletions or exceptions other than as expressly approved by Noteholder in writing, insuring Noteholder that the priority and validity of the Security Instrument has not been and will not be impaired by this Assumption Agreement, the conveyance of the Property, or the transaction contemplated hereby;

		
	b.
	Receipt and approval by Noteholder of: (i) the executed original of this Assumption Agreement; (ii) an executed original of a Memorandum of Assumption Agreement in the form attached hereto as EXHIBIT A and otherwise in form and substance acceptable to Noteholder (“Memorandum of Assumption Agreement”); and (iii) any other documents and agreements which are required pursuant to this Assumption Agreement, in form and content acceptable to Noteholder;

		
	c.
	Recordation in the Official Records of the Memorandum of Assumption Agreement, together with such other documents and agreements, if any, required pursuant to this Assumption Agreement or which Noteholder has requested to be recorded or filed;

		
	d.
	Delivery to Noteholder of UCC Financing Statements in proper form for filing in the appropriate jurisdictions as determined by Noteholder, which Assumptor expressly authorizes Noteholder to file;

		
	e.
	Execution and delivery to Noteholder by New Guarantor of a Indemnity Agreement (“New Guaranty”) in favor of Noteholder and in form and substance acceptable to Noteholder, pursuant to which New Guarantor irrevocably guarantees payment for certain matters under the Note as more specifically set forth in the New Guaranty;

		
	f.
	Delivery to Noteholder of the organizational documents and evidence of good standing of Assumptor, its constituent parties, and of New Guarantor, together with such resolutions or certificates as Noteholder may require, in form and content acceptable to Noteholder, authorizing the assumption of the Loan and executed by the appropriate persons and/or entities on behalf of Assumptor and New Guarantor;

		
	g.
	The representations and warranties contained herein are true and correct;

		
	h.
	Receipt by Noteholder of evidence of insurance acceptable in all respects to Noteholder, including certificates of insurance evidencing Assumptor's casualty insurance policy (ACORD 27) and comprehensive liability insurance policy (ACORD 25) with respect to the Property, each in form and amount satisfactory to Noteholder, with the annual premium for same to be paid at closing;

		
	i.
	Receipt by Noteholder of a copy of the special warranty deed by which title to the Property will be conveyed to Assumptor, and the purchase and sale agreement documenting the sale of the Property to Assumptor;

		
	j.
	Receipt by Noteholder of an executed assignment of the purchaser's interest in the purchase and sale agreement for the Property from the purchaser named therein to Assumptor;

		
	k.
	Receipt by Noteholder of an executed Form W-9 for Assumptor;

		
	l.
	Receipt by Noteholder of a copy of the new property management agreement for the Property in form and substance, and with a manager, acceptable to Noteholder, along with an executed assignment of management agreement acceptable to Noteholder;

		
	m.
	Noteholder shall have received such opinions of special counsel to Noteholder as may be required by Noteholder's counsel or the Loan Documents (a) opining to the validity and enforceability of this Assumption Agreement and the terms and provisions hereof, 

and any other agreement executed in connection with the transactions contemplated hereby, the authority of the Buyer and any constituents of the Buyer, to execute and deliver this Assumption Agreement and perform their obligations under the Note and other Loan Documents, and such other matters as reasonably requested by the Lender, (b) opining as to the due formation of the Assumptor in Delaware, the viability of any springing member, and such other matters as reasonably requested by Noteholder, and (c) and the transactions referenced herein with the provisions of the Internal Revenue Code as the same pertain to real estate mortgage investment conduits Lender shall have received opinions of counsel to Lender.
		
	n.
	Noteholder shall have received opinions of counsel to Assumptor and New Guarantor opining with respect to (i) the validity and enforceability of this Assumption Agreement and the terms and provisions hereof, and any other agreement executed in connection with the transactions contemplated hereby, (ii) the authority of the Assumptor and New Guarantor (and any constituents thereof), to execute and deliver this Assumption Agreement and perform their obligations under the Note and other Loan Documents, and (iii) such other matters as reasonably requested by the Noteholder;

		
	o.
	Payment of the assumption fee provided for in Section 2 above;

		
	p.
	Assumptor's reimbursement to Noteholder of Noteholder's costs and expenses incurred in connection with this Assumption Agreement and the transactions contemplated hereby, including, without limitation, title insurance costs, escrow and recording fees, attorneys' fees, appraisal, engineers' and inspection fees and documentation costs and charges, whether such services are furnished by Noteholder's employees, agents or independent contractors;

		
	q.
	Assumptor's execution of the Deposit Account Control Agreement; 

		
	r.
	Borrower's delivery to Noteholder of evidence sufficient to establish that the second mortgage on the property has been reconveyed by the lender, TPAS Financing LLC; and,

		
	s.
	Borrower's delivery to Noteholder of evidence that payment has been made to: (i) Body Solutions (The Beauty Scene) for tenant improvements in the amount of $4,500.00; and (ii) to leasing broker in the amount of $6,327.75.

		
	4.
	Effective Date. The effective date of this Assumption Agreement shall be the date the Memorandum of Assumption Agreement is first written above (“Effective Date”).

		
	5.
	Assumption. Assumptor hereby assumes and agrees to pay when due all sums due or to become due or owing under the Note, the Security Instrument and the other Loan Documents first arising from and after the Effective Date and shall hereafter faithfully perform all of Borrower's obligations under and be bound by all of the provisions of the Loan Documents and assumes all liabilities of Borrower under the Loan Documents as if Assumptor were an original signatory thereto. The execution of this Assumption Agreement by Assumptor shall be deemed its execution of the Note, the Security Instrument and the other Loan Documents.

		
	6.
	Partial Release of Borrower; Release of Noteholder. Noteholder hereby releases (on the Effective Date) Borrower from liability under the Loan Documents other than this Assumption Agreement; provided however, that the parties hereby acknowledge and agree that Borrower is expressly not released from and nothing contained herein is intended to limit, impair, terminate or revoke, any of Borrower's obligations with respect to the matters set forth in Article 14 of the Note, to the extent the same arise out of or in connection with any act or omission occurring on or before the Effective Date (the “Retained Obligations”), and that such obligations shall continue in full force and effect in accordance with the terms and provisions thereof and hereof. Borrower's obligations under the Loan Documents with respect to the Retained Obligations shall not be discharged or reduced by any extension, amendment, 

renewal or modification to, the Note, the Security Instrument or any other Loan Documents, including, without limitation, changes to the terms of repayment thereof, modifications, extensions or renewals of repayment dates, releases or subordinations of security in whole or in part, changes in the interest rate or advances of additional funds by Noteholder in its discretion for purposes related to those set forth in the Loan Documents. Each of Borrower, Original Guarantor, Assumptor and New Guarantor hereby fully releases (on the Effective Date) Noteholder and any servicer(s) of the Loan from any liability of any kind arising out of or in connection with the Loan or the Loan Documents other than this Assumption Agreement, Each of Borrower, Original Guarantor, Assumptor and New Guarantor after consultation with its respective attorney, hereby expressly waives the benefits of the provisions of applicable law, if any, which provides to the effect that:

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release which, if known by him or her, must have materially affected his or her settlement with the debtor.”
From time to time without first requiring performance on the part of Assumptor, Noteholder may look to and require .performance by Borrower of all Retained Obligations. Borrower waives all presentments, demands for performance, notices of nonperformance, protests, notices of protest and notices of dishonor of all or any part of the indebtedness now existing or hereafter arising under the Loan Documents.
		
	7.
	Confirmation of Guaranty; Partial Release of Original Guarantor. Nothing contained herein is intended to limit, impair, terminate or revoke Original Guarantor's obligations under the Guaranty to the extent the same arise out of or in connection with any act or omission occurring on or before the Effective Date (“Retained Guarantor Obligations”) and such Retained Guarantor Obligations shall continue in full force and effect in accordance with the terms and provisions of the Guaranty; provided, however, Noteholder hereby releases Original Guarantor from its obligations under the Guaranty other than the Retained Guarantor Obligations, including but not limited to any obligations under the Guaranty to the extent the same arise out of or in connection with any act or omission occurring after the Effective Date.

		
	8.
	Escrow Account. Assumptor acknowledges that pursuant to the purchase agreement through which it is acquiring the Property, $800,000.00 is being deposited in an escrow account (“Escrow Funds”) to be administered pursuant to the purchase agreement. The Escrow Funds represent rental payments on certain spaces at the Property, and Assumptor acknowledges that such Escrow Funds are therefore subject to Noteholder's security interest. For avoidance of doubt, Assumptor hereby grants to Noteholder a continuing security interest in the Escrow Funds, with the remedies granted to Noteholder in the Security Instrument or at law.

		
	9.
	Amendment to Loan Documents; Event of Default. Section 10.1 of the Security Instrument is hereby amended to add a new item (s), which shall be inserted thereto:

“or (s) if Whitestone REIT shall fail to qualify as a real estate investment trust under Sections 856-860 of the Internal Revenue Code of 1986, as amended.”
		
	10.
	Representations and Warranties.

		
	a.
	Assignment. Borrower and Assumptor each hereby represents and warrants to Noteholder that Borrower has irrevocably and unconditionally transferred and assigned to Assumptor all of Borrower's right, title and interest in and to:

		
	i.
	The Property and the Collateral;

		
	ii.
	The Loan Documents;

		
	iii.
	All leases related to the Property or the Collateral;

		
	iv.
	All rights as named insured under all casualty and liability insurance policies (and all endorsements in connection therewith) relating to the Property or the Collateral (unless, but only to the extent that, Assumptor is obtaining its own such insurance policies);

		
	v.
	All reciprocal easement agreements, operating agreements, and declarations of conditions, covenants and restrictions related to the Property;

		
	vi.
	All prepaid rents and security deposits, if any, held by Borrower in connection with leases of any part of the Property or the Collateral; and

		
	vii.
	All funds, if any, deposited in impound accounts held by or for the benefit of Noteholder pursuant to the terms of the Loan Documents.

Borrower and Assumptor each hereby further represents and warrants to Noteholder that no consent to the transfer of the Property and, the Collateral to Assumptor is required under any agreement to which Borrower or Assumptor is a party, including, without limitation, under any lease, operating agreement, mortgage or security instrument (other than the Loan Documents), or if such consent is required, that the parties have obtained all such consents.
		
	b.
	No Defaults. Assumptor and Borrower each hereby represents and warrants, to the best of its respective knowledge, that no default, event of default, breach or failure of condition has occurred, or would exist with notice or the lapse of time or both, under any of the Loan Documents, as modified by this Assumption Agreement, and all representations and warranties herein and in the other Loan Documents are true and correct in all material respects.

		
	c.
	Loan Documents. Assumptor represents and warrants to Noteholder that Assumptor has actual knowledge of all terms and conditions of the Loan Documents, and agrees that Noteholder has no obligation or duty to provide any information to Assumptor regarding the terms and conditions of the Loan Documents. Assumptor further agrees that all representations, agreements and warranties in the Loan Documents regarding Borrower, its status, authority, financial condition and business shall apply to Assumptor as well as to Borrower, as though Assumptor were the borrower originally named in the Loan Documents. Assumptor further understands and acknowledges that, except as expressly provided in a writing executed by Noteholder, Noteholder has not waived any right of Noteholder or obligation of Borrower or Assumptor under the Loan Documents and Noteholder has not agreed to any modification of any provision of any Loan Document or to any extension of the Loan.

		
	d.
	Financial Statements. Assumptor represents and warrants to Noteholder that the financial statements of Assumptor, of each member of Assumptor (if Assumptor is a limited liability company and of each New Guarantor, if any, previously delivered by Borrower, Assumptor or any of such parties to Noteholder: (i) are materially complete and correct; (ii) present fairly the financial condition of each of such parties; and (iii) have been prepared in accordance with generally accepted accounting principles consistently applied or other accounting standards approved by Noteholder. Assumptor further represents and warrants to Noteholder that, since the date of such financial statements, there has been no material adverse change in the financial condition of any of such parties, nor have any assets or properties reflected on such financial statements been sold, transferred, assigned, mortgaged, pledged or encumbered except as previously disclosed in writing by Assumptor to Noteholder 

and approved in writing by Noteholder.
		
	e.
	Reports. Assumptor represents and warrants to Noteholder that to the best of its knowledge, all reports, documents, instruments and information delivered to Noteholder in connection with Assumptor's assumption of the Loan: (i) are correct and sufficiently complete to give Noteholder accurate knowledge of their subject matter; and (ii) do not contain any misrepresentation of a material fact or omission of a material fact which omission makes the provided information misleading.

		
	f.
	Assumptor Location. Assumptor represents and warrants that its chief executive office (or principal residence, if applicable) is located at the following address: c/o Whitestone REIT Operating Partnership, LP, 2600 S. Gessner Road, Suite 500, Houston, TX 77063. Assumptor represents and warrants that its state of formation is Delaware. All organizational documents of Assumptor delivered to Noteholder are complete and accurate in every respect. Assumptor's legal name is exactly as shown on page one of this Assumption Agreement. Assumptor shall not change Assumptor's name or, as applicable, Assumptor's chief executive office, Assumptor's principal residence or the jurisdiction in which Assumptor is organized, without giving Noteholder at least 30 days' prior written notice.

		
	g.
	No Pledge of Equity Interests. Assumptor represents and warrants to Noteholder that all funds provided by Assumptor's constituents to Assumptor are in the form of capital contributions and are not loans to Assumptor. Assumptor hereby represents and warrants to Noteholder that neither the Property nor the direct ownership interests in Assumptor have been pledged or encumbered in connection with the acquisition of the Property by Assumptor.

		
	h.
	Embargoed Person. Assumptor and New Guarantor represent and warrant that none of the funds or other assets of Assumptor or New Guarantor constitute property of, or are beneficially owned, directly or indirectly, by any person, entity or government subject to trade restrictions under U.S. law, including but not limited to, the USA PATRIOT Act (including the anti-terrorism provisions thereof), the International Economic Powers Act, 50 U.S.C. §§ 1701, et. seq., the Trading with the Enemy Act, 50 U.S.C. App. 1 et. seq., and any Executive Orders or regulations promulgated thereunder, including those related to Specially Designated Nationals and Specially Designated Global Terrorists (“Embargoed Person”) and further warrant and represent that no Embargoed Person has any interest of any nature whatsoever in Assumptor or New Guarantor with the result that the investment in Assumptor (whether directly or indirectly) is prohibited by law. Notwithstanding the aforementioned, Assumptor and New Guarantor shall have no duty to investigate or confirm whether any shareholder or unit holder of New Guarantor are in compliance with the foregoing and any violation by such shareholders or unit holders shall not be a breach hereunder.

		
	11.
	Cash Management. Assumptor hereby acknowledges that it is assuming the Cash Management Agreement, as amended by this Assumption Agreement, and further acknowledges and ratifies its obligations to (i) establish the Clearing Account (as defined in the Cash Management Agreement), and (ii) pursuant to the terms of the Cash Management Agreement, cause all rents and other revenues of every kind pertaining to the Property to be forwarded to Noteholder or its designee for deposit into the Clearing Account, Notwithstanding anything to the contrary in the Cash Management Agreement, the Clearing Account shall be assigned the federal tax identification number of Assumptor, which number is 45-4023706. Noteholder agrees that that certain Clearing Account Agreement entered into on or about December 1, 2003 among Noteholder, City National Bank and Original Lender 

is terminated as of the Effective Date,
		
	12.
	Waiver of Acceleration. Noteholder hereby consents to the sale and conveyance of the Property and Collateral and agrees that it shall not exercise its right to cause all sums secured by the Security Instrument to become immediately due and payable because of the conveyance of the Property and the Collateral from Borrower to Assumptor; provided, however, Noteholder reserves its right under the terms of the Security instrument or any other Loan Document to accelerate all principal and interest in the event of any subsequent sale, transfer, encumbrance or other conveyance of the Property, the Collateral or any interest in Assumptor, except as permitted by the Loan Documents.

		
	13.
	Hazardous Materials. Without in any way limiting any other provision of this Assumption Agreement, Assumptor and Borrower expressly reaffirm as of the date hereof, and Assumptor reaffirms continuing hereafter: (a) each and every representation and warranty in the Loan Documents respecting “Hazardous Materials”; and (b) each and every covenant and indemnity in the Loan Documents respecting “Hazardous Materials”.

		
	14.
	Multiple Parties. If more than entity has signed this Assumption Agreement as Assumptor or Borrower, then all references in this Assumption Agreement to Assumptor or Borrower shall mean each and all of the persons so signing, as applicable. The liability of all entities signing shall be joint and several with all others similarly liable.

		
	15.
	Confirmation of Security Interest. Nothing contained herein shall affect or be construed to affect any lien, charge or encumbrance created by any Loan Document or the priority of that lien, charge or encumbrance. All assignments and transfers by Borrower to Assumptor are subject to any security interest(s) held by Noteholder.

		
	16.
	Notices. All notices to be given to Assumptor pursuant to the Loan Documents shall be addressed as follows:

Whitestone Pinnacle of Scottsdale, LLC
c/o Whitestone REIT Operating Partnership, LP
2600 S. Gessner Road, Suite 500 
Houston, TX 77063
Attn: John Dee/David W. Hutton 
Telephone: 713-435-2225
Telecopy: 713-465-8847

		
	17.
	Integration; Interpretation. The Loan Documents, including this Assumption Agreement, contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated herein and supersede all prior negotiations. The Loan Documents shall not be modified except by written instrument executed by Noteholder and Assumptor; provided, however, the Loan Documents may not be modified in a manner that creates any additional obligations or liability on the part of Borrower and/or Original Guarantor beyond the liability and obligations of Borrower and Original Guarantor as set forth in this Assumption Agreement. Any reference in any of the Loan Documents to the property or the Collateral shall include all or any parts of the Property or the Collateral.

		
	18.
	Successors and Assigns. This Assumption Agreement is binding upon and shall inure to the benefit of the heirs, successors and assigns of the parties but subject to all prohibitions of transfers contained in any Loan Document.

		
	19.
	Attorneys' Fees; Enforcement. If any attorney is engaged by Noteholder to enforce, construe or defend any provision of this Assumption Agreement, or as a consequence of any default under or breach of this Assumption Agreement, with or without the filing of any legal action or proceeding, Assumptor shall pay to Noteholder, upon demand, the amount of all attorneys' fees and costs reasonably incurred by Noteholder in connection therewith, together with 

interest thereon from the date of such demand at the rate of interest applicable to the principal balance of the Note as specified therein.
		
	20.
	Right of Transfer of Property. The parties acknowledge that Article 8 of the Security Instrument provides that Noteholder shall consent to the voluntary sale or exchange of all of the Property, all subject, however, to the terms and conditions set forth therein,.  The parties agree that this Assumption Agreement and the actions to be taken as contemplated herein shall constitute one such consent.

		
	21.
	Deferred Maintenance. Assumptor covenants and agrees that it will either (i) provide evidence, including but not limited to, receipts that the Deferred Maintenance (as defined herein) has been completed, or (ii) establish with Noteholder an escrow to fund the costs of Deferred Maintenance. As used herein, “Deferred Maintenance” refers to all items listed as deferred maintenance on that certain Standard Inspection Form dated August 4, 2011 issued by RR Donnelly. Assumptor further covenants and agrees that should such items of Deferred Maintenance not be repaired within ninety (90) days hereof, that an Event of Default shall have occurred, and that Noteholder shall have all remedies available to it under the terms of the Loan Documents, including but not limited to the immediate right to accrue interest on the Loan at the Default Interest Rate.

		
	22.
	Miscellaneous.

		
	a.
	This Assumption Agreement shall be governed and interpreted in accordance with the laws of the jurisdiction(s) specified in the other Loan Documents as governing the other Loan Documents. In any action brought or arising out of this Assumption Agreement, Borrower and Assumptor, and general partners, members and joint venturers of them, hereby consent to the jurisdiction of any state or federal court having proper venue as specified in the other Loan Documents and also consent to the service of process by any means authorized by the law of such jurisdiction(s). Except as expressly provided otherwise herein, all terms used herein shall have the meaning given to them in the Loan Documents. Time is of the essence of each term of the Loan Documents, including this Assumption Agreement. If any provision of this Assumption Agreement or any of the other Loan Documents shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed therefrom and the remaining parts shall remain in full force as though the invalid, illegal, or unenforceable portion had not been a part thereof.

		
	b.
	Notwithstanding anything to the contrary herein, this Agreement is subject to the provisions of Article 14 of the Note as if such provisions were set forth at length herein.

		
	23.
	Counterparts. This Assumption Agreement may be executed in any number of counterparts, each of which when executed and delivered will be deemed an original and all of which taken together will be deemed to be one and the same instrument.

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, Noteholder, Assumptor, New Guarantor, Borrower, and Original Guarantor have caused this Assumption Agreement to be duly executed as of the date first above written.
NOTEHOLDER:
U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE, SUCCESSOR-IN-INTEREST TO BANK OF AMERICA, N.A., AS TRUSTEE, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2003- TOP12
		
	By:
	Wells Fargo Bank, National Association, as Master Servicer under the Pooling and Servicing Agreement dated as of December 14, 2003

By:               /s/  Wayne Ventus, Jr.    
Name: Wayne Ventus, Jr.    
Title: Assistant Vice President    

Signature Page to Assumption Agreement

ASSUMPTOR:
Whitestone Pinnacle of Scottsdale, LLC, a Delaware limited liability company
		
	By:
	Whitestone REIT Operating Partnership, L.P., a Delaware limited partnership, its sole member

		
	By:
	Whitestone REIT, a Maryland real estate investment trust, its general partner

		
	By:
	              /s/  John J. Dee        

Name:  John J. Dee            
Title:  Chief Operating Officer    

NEW GUARANTOR: 
Whitestone REIT Operating Partnership, L.P., a Delaware limited partnership
		
	By:
	Whitestone REIT; a Maryland real estate investment trust, its general partner

		
	By:
	/s/  John J. Dee            

Name:  John J. Dee                
Title:  Chief Operating Officer        

Whitestone REIT, a Maryland Real Estate Investment Trust
		
	By:
	             /s/  John J. Dee            

Name:  John J. Dee                
Title:  Chief Operating Officer        

BORROWER: 
Scottsdale Pinnacle LP, a California limited partnership
		
	By:
	SR Pinnacle LLC, a California limited liability company, its general partner

		
	By:
	Scottsdale Pinnacle Management, Inc., a Delaware corporation, 

Its Administrative Member
By:    /s/ Steven J. Fogel    
Name: Steven J. Fogel    
Its: President    

ORIGINAL GUARANTOR: 

/s/  Howard Banchik            
Howard Banchik, Individually

CALIFORNIA NOTARY
ACKNOWLEDGEMENT
State of California        )
) ss
County of Alameda        )
On December 15, 2011, before me, Noreen Sutterfield, Notary Public, personally appeared Wayne Ventus, Jr., who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(NOTARY SEAL)

/s/  Noreen Sutterfield                
My Commission Expires Jan 5, 2013

ACKNOWLEDGMENT OF ASSUMPTOR
STATE OF TEXAS            )
) ss
COUNTY OF HARRIS        )
On December 14, 2011, before me, the undersigned Notary Public in and for said County and State, personally appeared John J. Dee, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
(NOTARY SEAL)

/s/  Shiela R. Scott            

My Commission Expires:
10-17-12        

ACKNOWLEDGMENT OF NEW GUARANTOR
STATE OF TEXAS            )
) ss
COUNTY OF HARRIS        )
On December 14, 2011, before me, the undersigned Notary Public in and for said County and State, personally appeared John J. Dee, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
(NOTARY SEAL)

_      __      /s/  Shiela R. Scott        

My Commission Expires:
    10-7-12            

		
	STATE OF TEXAS
	)

) ss
COUNTY OF HARRIS        )
On December 14, 2011, before me, the undersigned Notary Public in and for said County and State, personally appeared John J. Dee, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
(NOTARY SEAL)

__      /s/  Shiela R. Scott        

My Commission Expires:
    10-7-12            

ACKNOWLEDGMENT OF BORROWER
STATE OF California            )
) ss
COUNTY OF  Los Angeles        )

On December 13, 2011, before me Timothy J. Kearney_, a Notary Public, personally appeared Steven J. Fogel, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacities, and that by his signature on the instrument, the person, or the entities upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal. 
(NOTARY SEAL)

Signature      /s/  Timothy J. Kearney         

My Commission Expires:  October 16, 2012

ACKNOWLEDGMENT OF ORIGINAL GUARANTOR
STATE OF California            )
) ss
COUNTY OF  Los Angeles        )

On December 13 , 2011, before me Timothy J. Kearney , a Notary Public, personally appeared Steven J. Fogel, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacities, and that by his signature on the instrument, the person, or the entities upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal. 
(NOTARY SEAL)

Signature      /s/  Timothy J. Kearney         

My Commission Expires:  October 16, 2012

STATE OF California            )
) ss
COUNTY OF  Los Angeles        )

On December ____, 2011, before me Timothy J. Kearney , a Notary Public, personally appeared Howard Banchik, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacities, and that by his signature on the instrument, the person, or the entities upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal. 
(NOTARY SEAL)

Signature      /s/  Timothy J. Kearney         

My Commission Expires:  October 16, 2012

Exh. A-1

EXHIBIT A
TO ASSUMPTION AGREEMENT
PREPARED BY AND      )
WHEN RECORDED MAIL TO:    )
)
Anderson, McCoy &Orta, P.C.     )
100 N. Broadway, Suite 2600     )
Oklahoma City, Oklahoma 73102     )
Attn: H. Anne Nicholson    )
Loan No, 85-0201155    )

MEMORANDUM OF ASSUMPTION AGREEMENT
Scottsdale Pinnacle LP, a California limited partnership, with a mailing address at 11440 San Vicente Blvd., Suite 200, Los Angeles, CA 90049 (“Borrower”), Howard Banchik and Steven J. Fogel, each an individual, with a mailing address at 11440 San Vicente Blvd., Suite 200, Los Angeles, CA 90049 (collectively “Original Guarantor”), Whitestone Pinnacle of Scottsdale, LLC, a Delaware limited liability company, with a mailing address at c/o Whitestone REIT Operating Partnership, LP, 2600 S. Gessner Road, Suite 500, Houston, TX 77063 (“Assumptor”), Whitestone REIT Operating Partnership, LP, a Delaware limited partnership and Whitestone REIT, a Maryland Real Estate Investment Trust, with a mailing address at c/o Whitestone REIT Operating Partnership, LP, 2600 S Gessner Road, Suite 500, Houston, TX 77063 (collectively “New Guarantor”), and U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE, SUCCESSOR-IN-INTEREST TO BANK OF AMERICA, N.A., AS TRUSTEE, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2003-TOP12, with a mailing address c/o Wells Fargo Bank, N.A., Commercial Mortgage Servicing, 1901 Harrison Street, 2nd Floor, Oakland, CA 94612 (“Noteholder”), are parties to that certain ASSUMPTION AGREEMENT dated of even date herewith (“Assumption Agreement”). The undersigned parties agree that all obligations under that certain Promissory Note (“Note”) dated May 15, 2003, in the original principal amount of Fifteen Million Seven Hundred Thousand and no/100 Dollars ($15,700,000.00), secured by that certain Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing executed by Borrower and recorded on May 15, 2003, as Document No. 2003-0624539 with the Maricopa County Recorder, State of Arizona (“Official Records”), the Original Lender's interest under which was assigned to Noteholder by instrument recorded on January 9, 2004, as Document No. 2004-0025300, in said Official Records; that certain Assignment of Leases and Rents executed by Borrower, which was recorded on May 15, 2003, as Document No. 2003-0624540, with said Official Records, the Original Lender's interest under which was assigned to Noteholder by instrument recorded on January 9, 2004, as Document No. 2004-0025300 in said Official Records; that certain UCC-1 Financing Statement filed on May 15, 2003, as Document No. 2003-0624541 with said Official Records; and all other Loan Documents (as defined in the Assumption Agreement) securing the real property described on EXHIBIT A, have been assumed by Assumptor upon the terms and conditions set forth in the  Assumption Agreement. The Assumption Agreement is by this reference incorporated herein and made a part hereof. This Memorandum of Assumption Agreement may be executed in any number of counterparts, each of which 

when executed and delivered will be deemed an original and all of which taken together will be deemed to be one and the same instrument.
Dated: December ___________, 2011exhibit_4-30.htm

Exhibit 4.30

 

Employment Agreement

 

This Employment Agreement (this “Agreement”) is entered into on this 8th  day of August, 2011 by and between BioLineRx Ltd., a company organized under the laws of the State of Israel, with its offices at 19 Hartum Street, P.O. Box 45158, Jerusalem 91450, Israel (“BioLine”), and David Malek, I.D. Number 034371252 with an address at 19 Stephan Weis, Haifa (the “Executive”).

 

WHEREAS, BioLine desires to employ the Executive and the Executive desires to enter into such employment, on the terms and conditions hereinafter set forth.

 

NOW THEREFORE, in consideration of the mutual covenants and conditions hereinafter set forth, the parties agree as follows:

 

	
1.

	
Employment.

 

	
  

	
1.1.

	
The Executive shall serve in the position described in Exhibit A commencing on October 16, 2011 (the “Commencement Date”). The Executive shall be under the direct supervision of and comply with the directives of the CEO of BioLine and/or any such individual designated by BioLine at its sole discretion (the “Supervisor”). The Executive shall perform the duties, undertake the responsibilities and exercise the authority as determined from time to time by the Supervisor diligently, conscientiously and in furtherance of BioLine’s best interests. Executive’s duties and responsibilities hereunder may also include other services performed for affiliates of BioLine.

 

	
  

	
1.2.

	
During the Employment Period, Executive shall honestly, diligently, skillfully and faithfully serve BioLine, and undertakes to devote all of Executive’s efforts and the best of his/her qualifications and skills to promoting the business and affairs of BioLine, and shall at all times act in a manner suitable of his position and status in BioLine.

 

	
  

	
1.3.

	
The Executive agrees and undertakes to inform BioLine, immediately after becoming aware of any matter that may in any way raise a conflict of interest between Executive and BioLine. Executive shall not receive during any payment, compensation or benefit from any third party in connection, directly or indirectly, with the execution of Executive’s position in BioLine.

 

	
  

	
1.4.

	
Executive will be employed on a full time basis. Executive shall not undertake or accept any other paid or unpaid employment or occupation or engage in any other business activity except with the prior written consent of BioLine, which shall not be unreasonably withheld.

 

	
  

	
1.5.

	
Executive hereby confirms and declares that his/her position is one that requires a special measure of personal trust and loyalty. Accordingly, the provisions of the Hours of Work and Rest Law-1951 shall not apply to Executive, and Executive shall not be entitled to any compensation for working more than the maximum number of hours per week set forth in said law or any other applicable law.

 

	
  

	
1.6.

	
The Executive may also work outside of regular working hours and outside of regular working days, as may be required by BioLine from time to time.

 

	
  

	
1.7.

	
The parties hereby confirm that this is an agreement for personal services and that the relationship between the parties shall not be subject to any general or special collective employment agreement or any custom or practice of BioLine with respect to any of its other Executives or contractors.

 

	
2.

	
Place of Performance. Executive shall be based at BioLine’s facilities in Israel or at such other place as is otherwise appropriate to the functions being performed by BioLine. Executive acknowledges and agrees that his/her position may involve significant domestic and international travel.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

  

  

 

 

	
3.

	
Executive’s Representations and Warranties. Executive represents and warrants that the execution and delivery of this Agreement and the fulfillment of all its terms: (i) will not constitute a default under or conflict with any agreement or other instrument to which Executive is a party or by which Executive is bound; and (ii) do not require the consent of any person or entity. Further, with respect to any past engagement Executive may have had with third parties and with respect to any allowed engagement Executive may have with any third party during the term of his/her engagement with BioLine (for purposes hereof, such third parties shall be referred to as “Other Employers”), Executive represents, warrants and undertakes that: (a) Executive’s engagement with BioLine is and will not be in breach of Executive’s undertakings towards Other Employers, and (b) Executive will not disclose to BioLine, or use, in provision of any services to BioLine, any proprietary or confidential information belonging to any Other Employers. Executive further represents and warrants that: (c) he/she does not suffer from any medical condition that may prevent from complying with duties and obligations under this Agreement; (d)based on the Executive's best knowledge regarding his current physical condition, the employment by BioLine will not cause any hazard to Executive’s health.

 

	
4.

	
Proprietary Information; Confidentiality and Non-Competition. The Executive is obligated to keep all the terms and covenants of this Agreement under strict confidentiality. By executing this Agreement, Executive agrees to the provisions of BioLine’s Proprietary Information, Confidentiality and Non-Competition Agreement attached as Exhibit B hereto. The terms of Executive’s employment are personal and confidential, and Executive undertakes to keep such terms in confidence and shall refrain from disclosing such terms to any third party.

 

	
5.

	
Period of Employment. Executive’s employment by BioLine commences on the Commencement Date for an initial period of three (3) months (the “Initial Period”) and shall then continue, unless terminated in accordance with the provisions of this Agreement (the Initial Period together with subsequent periods of employment pursuant to this Agreement shall be referred to as the “Employment Period”).

 

	
  

	
5.1.

	
Death or Disability.  The Executive’s employment will terminate upon the death of the Executive, and BioLine may terminate the Executive’s employment after having established the Executive’s disability.  For purposes of this Agreement, “disability” means a physical or mental infirmity which impairs the Executive’s ability to substantially perform Executive’s duties under this Agreement which continues for a period of at least ninety (90) consecutive days.  Upon termination for disability, the Executive shall be entitled to severance pay required by law, in accordance with the terms of this Agreement.

 

	
  

	
5.2.

	
Termination at Will. Either party may terminate the employment relationship hereunder at any time by giving the other party prior written notice, as set forth in Exhibit A (the “Notice Period”).

 

	
  

	
5.3.

	
Termination for Cause. In the event of a termination for Cause (as defined below), BioLine may immediately terminate the employment relationship effective as of the time of notice of the same, and without payment in lieu of prior notice. “Cause” means (i) a serious breach of trust including but not limited to theft, embezzlement, self-dealing, prohibited disclosure to unauthorized persons or entities of confidential or proprietary information of or relating to BioLine or its affiliates, and the engaging by Executive in any prohibited business competitive to the business of BioLine; (ii) any willful failure to perform or failure to perform competently any of Executive’s fundamental functions or duties hereunder, which was not cured within thirty (30) days after receipt by Executive of written notice thereof; (iii) any breach of this Agreement by the Executive; and (iv) any other cause justifying termination or dismissal without severance payment under applicable law.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

2

  

 

 

	
  

	
5.4.

	
Notice Period; End of Relations. During the Notice Period, the employment relationship hereunder shall remain in full force and effect and there shall be no change in Executive’s position with BioLine, the Salary, or in any other obligations of either party hereunder, unless otherwise determined by BioLine in a written notice to Executive, and Executive shall cooperate with BioLine and assist BioLine with the integration into BioLine of the person who will assume Executive’s responsibilities. At the option of BioLine, the Executive shall during such period either continue with Executive’s duties or remain absent from BioLine’s premises. However, BioLine, at its own discretion, may terminate this Agreement and the employment relationship at any time immediately upon a written notice and pay Executive an amount equal to the Salary referred to in Section 6 below that would have been paid to Executive during the Notice Period in lieu of the prior notice.

 

	
  

	
5.5.

	
Without derogating from all of BioLine’s rights according to the provisions of this Agreement and the law, upon the termination of this Agreement, BioLine shall have the right to deduct from any payment to be paid to the Executive any sum owed by the Executive to BioLine.

 

	
6.

	
Salary.

 

	
  

	
6.1.

	
BioLine shall pay or cause to be paid to the Executive during the term of this Agreement a gross salary in the amount set forth in Exhibit A per month (the “Base Salary”).

 

	
  

	
6.2.

	
The Salary will be paid no later then the 9th day of each calendar month after the month for which the Salary is paid, after deduction of any and all taxes and charges applicable to Executive, as may be in effect or which may hereafter be enacted or required by law. Executive shall notify BioLine of any change which may affect Executive’s tax liability.

 

	
7.

	
Bonus Plan

 

	
  

	
7.1.

	
During the Employment Period, the Executive shall be eligible to receive one or more bonus payments determined in accordance with the terms specified below.

 

	
  

	
7.2.

	
For the purposes of this section 7:

 

“Significant Out-Licensing Deal” shall mean an agreement between BioLine and a  licensee for the out-license or other development and commercialization of a BioLine compound, which includes an up-front payment of at least USD 5,000,000,

 

“Strategic Deal” shall mean (1) an out-licensing agreement which does not constitute a Significant Out-Licensing Deal; and/or (2) a partnering or other agreement between BioLine and a third party, designated as strategic by BioLine’s CEO in writing and in advance.

 

“Annual Salary” shall mean the annual Base Salary applicable to the Executive at the closing of the Deal.

 

	
  

	
 7.2.1.

	
For each Significant Out-Licensing Deal signed and closed, the Executive shall be eligible to receive a one-time Bonus payment equal to 35% of Annual Salary.

 

	
  

	
 7.2.2.

	
For each “Strategic Deal” signed and closed, the Executive shall be eligible to receive a one-time payment equal to 17% of the Annual Salary.

 

	
  

	
 7.2.3.

	
The payments aforementioned in section 7.2.1 and 7.2.2 shall be payable with the salary payment immediately following the closure of the deal, and in each case subject to review and approval of BioLine’s Board of Directors.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

3

  

 

 

	
8.

	
Relocation costs loan

 

In order to assist in the costs related to the Executive’s relocation, BioLine agrees to provide the Executive with a loan in the amount of USD 12,500 under the following terms:

 

	
  

	
8.1.

	
The loan shall be provided within 7 days after the date that this Agreement is signed, and shall bear linkage to the consumer price index + annual interest at the lowest rate allowed in accordance with the rules for employee loans currently in effect as established by the Israeli Income Tax Authority.

 

	
  

	
8.2.

	
After completion of one year of Employment, 33% of the loan (including accrued interest) shall be forgiven.

 

	
  

	
8.3.

	
After completion of two years of employment, 100% of the loan (including accrued interest) shall be forgiven.

 

	
  

	
8.4.

	
In the event that the Executive decides to terminate the employment arrangement prior to completion of two years of employment, the balance amount of loan then in effect (including accrued interest) shall become payable within 30 day of termination, and  the Executive hereby agrees that the balance amount shall be deducted from the Executive's Salary and/or any other payment due to the Executive by BioLine. In the event that BioLine decides to terminate the employment arrangement, other than for cause (as defined herein), the entire loan balance (including accrued interest) shall be immediately forgiven.

 

	
  

	
8.5.

	
The Executive will be responsible for all income taxes that may be payable upon forgiveness of the loan and accrued interest.

 

	
9.

	
Insurance and Social Benefits.

 

The Executive shall be entitled to the following benefits:

 

	
  

	
9.1.

	
Manager’s Insurance; Pension Fund. Subsequent to the Initial Period, and subject to the continued employment of Executive following the Initial Period, BioLine will insure Executive, retroactive to the Commencement Date, under a “Manager’s Insurance Scheme” or pension fund to be selected by BioLine in coordination with Executive  (unless otherwise agreed to by the parties) (collectively the “Policy”), such that BioLine will pay an amount equal to 131⁄3% of the Salary towards a such Policy, of which 5% shall be for pension fund payments and 81⁄3% shall serve to cover severance compensation. In addition, BioLine shall deduct from the Salary an amount equal to 5% of the Salary, and forward the same to the Policy. Any tax payable in respect of such contributions to the Policy shall be borne and paid by the Executive.

 

	
  

	
9.2.

	
The Executive hereby agrees and acknowledges that all of the payments that BioLine shall make to the abovementioned Policy shall be instead of any severance pay to which the Executive or Executive’s successors shall be entitled to receive from BioLine with respect to the salary from which these payments were made and the period during which they were made, in accordance with Section 14 of the Severance Pay Law 5723-1963 (the “Law”). The parties hereby adopt the General Approval of the Minister of Labor and Welfare, published in the Official Publications Gazette No. 4659 on June 30, 1998, attached hereto as Exhibit C. BioLine hereby waives in advance any claim it has or may have to be refunded any of the payments made to the manager’s insurance policy, unless (i) the Executive’s right to severance pay is invalidated by a court ruling on the basis of Sections 16 or 17 of the Law (and in such case only to the extent it is invalidated), or (ii) the Executive withdrew funds from the manager’s insurance policy for reasons other than an “Entitling Event”. An “Entitling Event” means death, disability or retirement at the age of sixty (60) or more.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

4

  

 

 

	
  

	
9.3.

	
Disability Insurance. In addition to the foregoing, during the Employment Period BioLine will bear the cost of disability insurance with an insurance company (Ovdan Kosher Avoda). The amount paid by BioLine for such insurance shall be as generally accepted, but shall not exceed 2.5% of the Salary.

 

	
  

	
9.4.

	
Advanced Study Fund. At the end of the Initial Period, and subject to the continued employment of Executive following the Initial Period, BioLine will maintain an advanced study fund (Keren Hishtalmut) recognized by the Israeli Income Tax Authorities, retroactive to the Commencement Date, such that BioLine and Executive shall contribute to such fund an amount equal to 7.5% of the Salary and 2.5% of the Salary, respectively. Any tax payable in respect of such contributions to such fund shall be borne and paid by the Executive. All payments and contributions of BioLine with respect to these benefits shall be limited to the Salary and up to the highest amount recognized by the tax authorities.

 

	
  

	
9.5.

	
Convalescence. During the Employment Period, Executive shall be entitled to receive convalescence allowance (Dmei Havra’a) pursuant to applicable law.

 

	
  

	
9.6.

	
Sick Leave. The Executive shall be entitled to be absent from work each year due to illness for the number of days allowed pursuant to the Sick Pay Law 5736 - 1976, and shall be entitled to fully paid sick leave upon presentation of appropriate medical documentation regarding said illness. Any amounts paid to the Executive on account of the disability insurance indicated in subsection 7.3 above, will be on account of sick leave payment.

 

	
  

	
9.7.

	
Reserve Service. During the Employment Period, BioLine shall pay the full salary of the Executive during the period of the Executive’s military reserve service. National Insurance Institute transfers in connection with such military reserved duty shall be retained by BioLine.

 

	
  

	
9.8.

	
Vacation. During the Employment Period, Executive shall be entitled to vacation in the number of working days per year as set forth in Exhibit A, as adjusted in accordance with applicable law.  A “working day” shall mean Sunday to Thursday inclusive, and the use of said vacation days will be coordinated with BioLine. Executive shall be entitled to accumulation and redemption of vacation days in accordance with BioLine’s Executives’ handbook, which may be amended from time to time in BioLine’s sole discretion.

 

	
  

	
9.9.

	
Mobile Phone; Computer. During the Employment Period, the Executive shall be entitled to receive a mobile phone. Executive shall use the mobile phone in a standard and reasonable manner, and in accordance with BioLine’s policies. During the Employment Period, the Executive may be entitled to receive a laptop computer. Executive shall use such computer in a standard and reasonable manner, and in accordance with BioLine’s policies. The mobile phone and computer (together hereinafter: "The Equipment") shall at all times remain the property of BioLine. The Executive hereby agrees that any amount due by the Executive to BioLine in connection with the equipment (including charges for use above the authorized limit, compensation for loss or damage of the equipment etc.) shall be deducted from the Executive's Salary.

 

	
  

	
9.10.

	
Automobile. For purposes of performance of Executive’s duties and tasks, and during the Employment Period, BioLine shall make available to Executive a company vehicle, leased or owned by BioLine of a type to be elected by BioLine, in accordance with its policies which may be amended from time to time (the “Company Car”). Executive shall use the Company Car in accordance with BioLine’s car policy then in effect, as well as the requirements of the leasing company and the insurance company. BioLine shall bear the cost of maintenance and repairs, and any insurance deductibles for the Company Car, in accordance with its policies and a separate Car Agreement which will be signed between Executive and BioLine. Fuel expenses will be covered by BioLine in accordance with the Company’s policy. Executive shall be liable for paying for fuel usage exceeding the limit determined in accordance with the Company’s policy, as well as any parking and/or traffic fines received in connection herewith, and for any damages and expenses in case of negligent use of the Company Car and/or use of the Company Car not in accordance with BioLine’s applicable policies. All taxes arising out of the use of the Company Car shall be borne by Executive, and Executive acknowledges that such taxes will be withheld from Executive’s salary as required by law.  Executive further acknowledges that the tax treatment of the use of the Company Car by Executive is subject to change without notice, and any economic impact resulting from such changes will be Executive’s sole responsibility. For the avoidance of doubt, Executive agrees that the cost of the leasing and/or the cost of the use of the Company Car shall not constitute a component of Executive’s Salary, including with regard to social benefits and/or any other right to which Executive is entitled by virtue of this Agreement or under law. The Executive shall be required to follow rules and regulations as to the usage of the Company Car as described in the “Company Car Lease Agreement” or “Car Addendum” provided to the Executive prior to receipt of the Company Car. The Company Car will remain in BioLine’s ownership, and will be returned to BioLine immediately upon termination of Executive’s employment with BioLine for any reason, as of the date of termination. The Executive shall not be entitled to use a Company Car during unpaid leaves or absences, unless specifically approved by BioLine in writing.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

5

  

 

 

	
10.

	
BioLine Property. Executive acknowledges and agrees that the computer, telephone, email account and any other device providing for transmittal and storage of information, which are placed at Executive’s disposal by BioLine during the Employment Period are and shall remain the property of BioLine. Executive confirms its understanding that BioLine regularly reviews email correspondence and other information transmitted and stored by using the equipment stated above, and BioLine reserves the right to copy, store, present to others, and use such information.

 

	
11.

	
Expenses. Executive shall be reimbursed for all direct business expenses borne by Executive, in accordance with BioLine’s policies as determined by BioLine from time to time, provided that such expenses were approved by Executive’s Supervisor in advance. As a condition to reimbursement, Executive shall be required to provide BioLine with all invoices, receipts and other evidence of expenditures as may be reasonably required by BioLine from time to time.

 

	
12.

	
Options. Subject to the approval of the Board of Directors of BioLine. Executive shall be granted options to purchase Ordinary Shares par value NIS 0.01 each of BioLine, in the amount set forth in Exhibit A, to be granted pursuant to, and in accordance with, the terms and conditions of the share option plan adopted by BioLine (the “Options”).

 

	
13.

	
General.

 

	
  

	
  13.1.

	
The laws of the State of Israel shall apply to this Agreement and the sole and exclusive place of jurisdiction in any matter arising out of or in connection with this Agreement shall be the Jerusalem Regional Labor Court. The provisions of this Agreement are in lieu of the provisions of any collective bargaining agreement, and therefore, no collective bargaining agreement shall apply with respect to the relationship between the parties hereto (subject to the applicable provisions of law).

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

6

  

 

 

	
  

	
  13.2.

	
This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements with respect to the subject matter hereof. This Agreement may not be modified except by written instrument signed by a duly authorized representative of each party. No failure, delay of forbearance of either party in exercising any power or right hereunder shall in any way restrict or diminish such party’s rights and powers under this Agreement, or operate as a waiver of any breach or nonperformance by either party of any terms of conditions hereof. In the event that it shall be determined under any applicable law that a certain provision set forth in this Agreement is invalid or unenforceable, such determination shall not affect the remaining provisions of this Agreement.

 

	
  

	
  13.3.

	
This Agreement may be assigned by BioLine. Executive may not assign or delegate his/her duties under this Agreement without the prior written consent of BioLine. This agreement shall be binding upon the heirs, successors and permitted assignees of Executive. The provisions of this Agreement shall survive the termination of the Employment Period and the assignment of this Agreement by BioLine to any successor or other assignee.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

 

	
/s/ Philip Serlin

 

BioLineRx Ltd.

By: Philip Serlin

Title: CFO/COO

	
/s/ David Malek

 

Executive

 

Name: David Malek

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                   

  

7

  

 

 

Exhibit A

Particulars of Employment

	
1.

	
Name of Executive:

	
David Malek

	
2.

	
ID No. of Executive:

	
034371252

	
3.

	
Address of Employee:

	
19 Stephan Weis, Haifa

	
4.

	
Position in BioLine:

	
VP of Business Development

	
5.

	
Commencement Date:

	
October 16, 2011

	
6.

	
Notice Period:

	
a.During the Initial Period – 14 days.

b.Following the Initial Period – 60 days

	
7.

	
Base Salary:

	
NIS 42,000

 

The Base Salary shall be increased to NIS 44,000 on January 1, 2012

	
8.

	
Options

	
250,000 options

	
9.

	
Vacation Days Per Year:

	
20

	
10.

	
Manager’s Insurance

	
Yes – as detailed in the body of the Agreement

	
11.

	
Pension Fund

	
Yes – as detailed in the body of the Agreement

	
12.

	
Disability Insurance

	
Yes – as detailed in the body of the Agreement

	
13.

	
Advance Study Fund

	
Yes – as detailed in the body of the Agreement

	
14.

	
Automobile

	
Yes - vehicles of similar value to Mazda 6, Subaru B4 – as detailed in the body of the Agreement

	
15.

	
Mobile Phone

	
Yes – management level mobile phone -  as detailed in the body of the Agreement

	
16.

	
Computer

	
Yes – as detailed in the body of the Agreement

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

8

  

 

 

Exhibit B

Proprietary Information, Confidentiality and Non-Competition Agreement

	
1.

	
General.

 

	
  

	
1.1.

	
All capitalized terms herein shall have the meanings ascribed to them in the Employment Agreement to which this Exhibit B is attached (the “Employment Agreement”). For purposes of any undertaking of the Executive toward BioLine, the term BioLine shall include all subsidiaries and affiliates of BioLine including its General and Limited Partners

 

	
  

	
1.2.

	
The Executive’s obligations and representations and BioLine’s rights under this Exhibit B (this “Agreement”) shall apply as of the Commencement Date of the employment relationship between BioLine and the Executive, and as of the first time in which Executive became engaged with BioLine, regardless of the date of execution of the Employment Agreement.

 

	
  

	
1.3.

	
Executives undertakings hereunder shall remain in full force and effect after termination of this Agreement or the Employment Agreement, or any renewal thereof.

 

	
2.

	
Executive acknowledges that he/she has received and/or may receive information of a confidential and proprietary nature regarding the activities and business of BioLine, its parent companies, subsidiaries and/or affiliates, all whether in oral, written, graphic, or machine-readable form, or in any other form, including, but not limited to, (i) patents and patent applications and related information, (ii) trade secrets and industrial secrets, and (iii) drugs, compounds, molecules, building blocks, chemical libraries, reaction protocols for chemical libraries, chemical structures, chemical design and model relationship data, chemical databases, assays, samples, media and other biological materials, procedures and formulations for producing any such materials, products, processes, ideas, know-how, trade secrets, drawings, inventions, improvements, formulas, equations, methods, developmental or experimental work, research or clinical data, discoveries, developments, designs, techniques, instruments, devices, computer software and hardware related to the current, future and/or proposed products and services, and including, without limitation, information regarding research, development, new service offerings or products, marketing and selling, business plans, forecasts, business methods, budgets, finances, licensing, collaboration and development arrangements, prices and costs, buying habits and practices, contact and mailing lists and databases, vendors, customers and clients, and potential business opportunities, and personnel (collectively, “Confidential Information”). Confidential Information may also include information furnished to BioLine by third parties, which, for purposes of this Agreement, shall all be deemed Confidential Information of BioLine. Notwithstanding the aforesaid, information that is in the public domain, through no act or omission of the Executive shall not be deemed Confidential Information. The Confidential Information and all right, title and interest therein will remain at all times the exclusive property of BioLine (or any third party entrusting its own Confidential Information to BioLine).

 

	
3.

	
At all times during the Employment Period and thereafter, Executive will hold all Confidential Information in strictest confidence and will not disclose, use, or make any copies thereof. Executive hereby assigns to BioLine any rights that the Executive may have or acquire in such Confidential Information and recognize that all Confidential Information shall be the sole property of BioLine and its assigns or licensors, as applicable.

 

	
4.

	
Executive represents that he/she has assigned to BioLine all inventions, original works of authorship, developments, improvements, and trade secrets which were conceived, developed, made or reduced to practice by Executive prior to the date of the this Agreement or the Commencement Date, whichever is earlier (collectively referred to as “Prior Inventions”), in which Executive has or purports to have any ownership interest in or a license to use, and which relate to BioLine’s current or proposed business, products or research and development.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

9

  

 

 

	
5.

	
Executive will promptly disclose and describe to BioLine all inventions, improvements, designs, concepts, techniques, methods, processes, know how, and trade secrets, whether or not patentable, copyrightable or protectible as trade secrets that are made, developed, conceived or first reduced to practice or created by Executive, whether alone or jointly with others, during the provision of Consulting Services (i) which relate to BioLine’s business or actual or demonstrably anticipated research or development, (ii) which are developed in whole or in part on BioLine’s time or with the use of any of BioLine’s Confidential Information or other information, equipment, supplies, facilities or trade secret information, or (iii) which result directly or indirectly from any work performed by Executive for BioLine (the “Inventions”, and each an “Invention”).

 

	
6.

	
Executive hereby assigns and agrees to assign in the future (when any such Inventions or Proprietary Rights (defined below) are first reduced to practice or first fixed in a tangible medium, as applicable) to BioLine or its designee(s) all of Executive’s right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable or registrable under copyright or similar statutes. Executive further specifically assigns to BioLine all original works of authorship, including any related moral rights, which are made by the Executive (solely or jointly with others) during the Employment Period which are protectable by copyright pursuant to applicable copyright law. Executive also agrees to assign all of his/her right, title and interest in and to any particular Invention to any third party, including without limitation government agency, as directed by BioLine.

 

The term “Proprietary Rights” shall mean: (i) patents, whether in the form of utility patents or design patents and all pending applications for such patents; (ii) trademarks, trade names, service marks, designs, logos, trade dress, and trade styles, whether or not registered, and all pending applications for registration of the same; (iii) copyrights or copyrightable material, including moral rights, including but not limited to books, articles and publications, whether or not registered, and all pending applications for registration of the same; and (iv) all other intellectual property rights throughout the world.

 

Executive expressly agrees that the consideration paid to Executive pursuant to his/her Employment Agreement constitutes the sole consideration to which Executive may be entitled to for the assignment of any and all Inventions or Proprietary Rights made, developed, conceived or first reduced to practice or created by Executive (or with his/her assistance or contribution) including, without limitation, in accordance with Section 134 of the Patent Law, 5727-1967, and Executive shall not be entitled to receive any additional consideration in this respect whatsoever.

 

	
7.

	
Executive will assist BioLine in every proper way to obtain, and from time to time enforce, any Proprietary Rights relating to any Inventions in any and all countries.  To that end Executive will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as BioLine may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof.  In addition, Executive will execute, verify and deliver assignments of such Proprietary Rights to BioLine or its designee.  Executive’s obligation to assist BioLine with respect to Proprietary Rights relating to any such Inventions in any and all countries shall continue indefinitely beyond termination of the Employment Period for any reason (the “Termination Date”), but BioLine shall compensate Executive at a reasonable rate after the Termination Date for the time actually spent by Executive at BioLine’s request on such assistance.

 

	
8.

	
In the event that BioLine is unable for any reason, after reasonable effort, to secure Executive’s signature on any document needed in connection with the actions specified in the preceding paragraph, Executive hereby irrevocably designates and appoints BioLine and its duly authorized officers and agents as Executive’s agent and attorney in fact, which appointment is coupled with an interest, to act for and in Executive’s behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by the Executive.  Executive hereby waives and holds BioLine harmless from any and all claims, of any nature whatsoever, which Executive now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to BioLine.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

10

  

 

 

	
9.

	
Executive agrees to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by BioLine) of all Confidential Information developed by the Executive and all Inventions made by the Executive during the Employment Period to BioLine, which records shall be available to and remain the sole property of BioLine at all times.

 

	
10.

	
During the Employment Period, Executive will not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom Executive has an obligation of confidentiality, and Executive will not bring onto the premises of BioLine any unpublished documents or any property belonging to any former employer or any other person to whom Executive has an obligation of confidentiality unless consented to in writing by that former employer or person.

 

	
11.

	
Upon the earlier of (i) a written request by BioLine; or (ii) the expiration or termination of the employment, Executive shall promptly return to BioLine all Confidential Information, together with any and all copies or excerpts thereof and any and all other information directly or indirectly derived therefrom. Return or destruction of the Confidential Information as required hereunder shall not affect Executive’s remaining obligations pursuant to this Agreement.

 

	
12.

	
Non Competition; Non Solicitation.

 

	
  

	
  12.1.

	
In consideration of Executive’s terms of employment, which include special compensation for Executive’s undertakings under this Section 12, and in order to enable BioLine to effectively protect its Proprietary Information, Executive undertakes that during the Employment Period and for a period of twelve (12) months from the Termination Date, Executive will not directly or indirectly: (i) carry on or hold an interest in any company, venture, entity or other business (other than a minority interest in a publicly traded company) which directly competes with the products or services of BioLine, (a “Competing Business”) (including, without limitation, as a shareholder); (ii) act as a consultant or Executive or officer or in any managerial capacity in a Competing Business, or supply in direct competition with BioLine services to any person who, to Executive’s knowledge, was provided with services by BioLine any time during the twelve (12) months immediately prior to the Termination Date; (iii) solicit, canvass or approach or endeavor to solicit, canvass or approach any person who, to Executive’s knowledge, was provided with services by BioLine at any time during the twelve (12) months immediately prior to the Termination Date, for the purpose of offering services or products which directly compete with the services or products supplied by BioLine at the Termination Date; or (iv) employ, solicit or entice away or endeavor to solicit or entice away from BioLine any person employed by BioLine any time during the twelve (12) months immediately prior the Termination Date with a view to inducing that person to leave such employment and to act for another employer in the same or a similar capacity.

 

	
  

	
  12.2.

	
Insofar as the protective covenants set forth in this Agreement are concerned, Executive specifically acknowledges, stipulates and agrees as follows: (i) the protective covenants are reasonable and necessary to protect the goodwill, property and Proprietary Information of BioLine, and the operations and business of BioLine; and (ii) the time duration of the protective covenants is reasonable and necessary to protect the goodwill and the operations and business of BioLine, and does not impose a greater restrain than is necessary to protect the goodwill or other business interests of BioLine. Nevertheless, if any of the restrictions set forth in this Agreement is found by a court having jurisdiction to be unreasonable or overly-broad as to geographic area, scope or time or to be otherwise unenforceable, the parties intend for the restrictions set forth in this Agreement to be reformed, modified and redefined by such court so as to be reasonable and enforceable and, as so modified by such court, to be fully enforced.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

11

  

 

 

	
13.

	
Executive represents that Executive’s performance of all the terms of the Employment Agreement and this Agreement does not and will not breach any agreement to keep in confidence information acquired by Executive in confidence or in trust prior to Executive’s relationship with BioLine. Executive has not entered into, and agrees that he/she will not enter into, any agreement either written or oral in conflict herewith.

 

	
14.

	
Executive hereby consents that in the event that the Executive leaves the employ of BioLine. Executive shall notify any new employer of Executive’s rights and obligations under this Agreement.

 

	
15.

	
Executive acknowledges that any violation or threatened violation of this Agreement may cause irreparable injury to BioLine, entitling BioLine to seek injunctive relief in addition to all other legal remedies.

 

	
16.

	
Executive recognizes and agrees that: (i) this Agreement is necessary and essential to protect the business of BioLine and to realize and derive all the benefits, rights and expectations of conducting BioLine’s business; (ii) the area and duration of the protective covenants contained herein are in all things reasonable; and (iii) good and valuable consideration exists under the Employment Agreement, for Executive’s agreement to be bound by the provisions of this Agreement.

 

	
17.

	
Section 11 (General) of the Employment Agreement shall apply to this Agreement, mutatis mutandis.

 

	
18.

	
EXECUTIVE ACKNOWLEDGES THAT HE/SHE HAS READ THIS AGREEMENT CAREFULLY, UNDERSTANDS ITS TERMS, AND HAS BEEN GIVEN THE OPPORTUNITY TO DISCUSS IT WITH INDEPENDENT LEGAL COUNSEL.

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

                                    

  

12

  

 

 

Exhibit C

General Approval Regarding Payments by Employers to a Pension Fund and Insurance 

Fund in lieu of Severance Pay under the Severance Pay Law 5723-1963

By virtue of my power under Section 14 of the Severance Pay Law, 5723-1963 (hereinafter: the “Law”), I certify that payments made by an employer commencing from the date of the publication of this approval for the sake of his employee to a comprehensive pension provident fund that is not an insurance fund within the meaning set forth in the Income Tax Regulations (Rules for the Approval and Conduct of Provident Funds), 5724-1964 (hereinafter: the “Pension Fund”) or to managers’ insurance which includes the possibility to receive annuity payments under an insurance fund as aforesaid, (hereinafter: the “Insurance Fund”), including payments made by the employer by a combination of payments to a Pension Fund and an Insurance Fund (hereinafter: “Employer’s Payments”), shall be made in lieu of severance pay due to said employee with respect to the salary from which said payments were made and for the period they were paid (hereinafter: the “Exempt Salary”), provided that all the following conditions are fulfilled:

 

(1)   The Employer’s Payments –

 

(a)   to the Pension Fund are not less than 141⁄3% of the Exempt Salary or 12% of the Exempt Salary if the employer pays, for the sake of his employee, in addition thereto, payments to supplement severance pay to a  severance pay provident fund or to an Insurance Fund in the employee’s name, in the amount of 21⁄3% of the Exempt Salary.  In the event that the employer has not paid the above mentioned 21⁄3% in addition to said 12%, his payments shall come  in lieu of only 72% of the employee’s severance pay;

 

(b)   to the Insurance Fund are not less than one of the following:

 

(i)   131⁄3% of the Exempt Salary, provided that, in addition thereto, the employer pays, for the sake of his employee, payments to secure monthly income in the event of disability, in a plan approved by the Commissioner of the Capital Market, Insurance and Savings Department of the Ministry of Finance, in an amount equivalent to the  lower of either an amount  required to secure at least 75% of the Exempt Salary or in an amount of 21⁄2% of the Exempt Salary (hereinafter: “Disability Insurance Payment”);

 

(ii)   11% of the Exempt Salary, if the employer paid, in addition, the Disability Insurance Payment; and in such case, the Employer’s Payments shall come in lieu of only 72% of the employee’s severance pay. In the event that the employer has made payments in the employee’s name, in addition to the foregoing payments, to a severance pay provident fund or to an Insurance Fund in the employee’s name, to supplement severance pay in an amount of 21⁄3% of the Exempt Salary, the Employer’s Payments shall come in lieu of 100% of the employee’s severance pay.

 

(2)   No later than three months from the commencement of the Employer’s Payment, a written agreement was executed between the employer and the employee, which includes:

 

(a)   the employee’s consent to an arrangement pursuant to this approval, in an agreement  specifying the Employer’s Payments, the Pension Fund and the Insurance Fund, as the case may be; said agreement shall also incorporate the text of this approval;

 

(b)   an advance waiver by the employer of any right which he may have to a refund of monies from his payments, except in cases in which the employee’s right to severance pay was denied by a final judgment pursuant to Section 17 of the Law, and in such a case or in cases in which the employee withdrew monies from the Pension Fund or Insurance Fund, other than by reason of an entitling event; for these purposes an “Entitling Event” means death, disability or retirement at or after the age of 60.

 

(3)   This approval shall not derogate from the employee’s right to severance pay pursuant to any law, collective agreement, extension order or employment agreement with respect to compensation in excess of the Exempt Salary.

 

15th Sivan 5758 (June 9th, 1998).

 

	 	 	
______________________ 

BioLine

	
______________________ 

Employee

 

13

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