Document:

Research
      Collaboration Agreement

    

    This
      agreement (this “Agreement”)
      is
      made and entered into as of the 16th day of May 2006 (the “Effective
      Date”)
      by and
      between Rosetta
      Genomics Ltd.,
      a
      private company registered pursuant to the laws of the State of Israel, of
      10
      Plant Street, Science Park, Rehovot, Israel (“Rosetta”)
      and
Tel
      Hashomer Medical Research Infrastructure and Services Ltd. a company duly
      registered under the laws of the state of israel (hereinafter:
      “THM”),
      located at Tel Hahsomer, 52621 Israel established pursuant to the laws of the
      State Of Israel (“THM”).

     

    WHEREAS,
      ROSETTA has developed confidential and proprietary technology relating to
      microRNA sequences including an algorithm for the prediction of microRNAs,
      techniques for validation of predicted microRNAs on a given material, microRNA
      expression profiling technology, analysis algorithms for the detection of
      biomarkers based on microRNA expression profiling and techniques for
      establishing the relationships between microRNAs and diseases and has identified
      a large number of microRNA sequences using certain of its proprietary technology
      and/or proprietary materials; and

     

    WHEREAS,
      THM
      is a
      non-profit organization established for “the benefit of the public” whose
      purpose is to promote the welfare of the Sheba Medical Center (the “Hospital”)
      with
      respect to scientific collaborations and studies; AND

     

    WHEREAS,
      Rosetta and THM desire to collaborate in a research project pursuant to which
      THM will supply Rosetta with patients’ specimens (“Study
      Specimens”)
      and
      related data (collectively, “Materials”),
      and
      shall perform certain activities as specified hereunder, in order for Rosetta
      to
      utilize its proprietary technology and know-how for the research of the
      expression of Rosetta MicroRNAs (as defined below) and additional publicly
      known
      microRNAs in the Materials pertaining to a diagnostic application (the
“Research
      Project”);
      and

     

    WHEREAS,
      the parties wish to set forth herein the definitive terms of the collaboration
      of the parties with respect to the performance of the Research Project and
      the
      future rights to any of its results;

     

    NOW
      THEREFORE, the parties, intending to be legally bound, hereby agree as
      follows:

     

    
      	1.  	
              Definitions.
                In addition to those terms defined elsewhere in this Agreement, each
                of
                the following terms shall have the meaning set forth opposite it,
                unless
                the context otherwise requires:

            

    

     

    
      	1.1.  	
              “Intellectual
                Property”
                shall mean all intellectual property, whether or not protected by
                patents
                or patent applications, including, but not limited to, trade secrets,
                procedures, protocols, inventions, databases, know how, inventions,
                improvements, discoveries, conceptions, ideas, techniques, designs,
                products, developments, specifications, methods, drawings, diagrams,
                models, software programs, data, data analysis, data interpretation,
                written reports, and all rights therein including copyright, patent
                rights, database rights, rights in designs and all registrations
                and
                applications therefore, and all continuations, continuations in part,
                divisional applications, and renewals of any of the foregoing, in
                any part
                of the world.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Neither
      party claims by virtue of this Agreement any right, title, or interest in
Intellectual
      Property
      of the
      other party or is not subject to this agreement between the
      Parties.

     

    
      	1.2.  	
              “Proprietary
                Information”
                shall mean any and all scientific, clinical, regulatory, marketing,
                financial and commercial information or data, including the terms
                of this
                Agreement, whether communicated in writing, orally or by any other
                means,
                which is provided by one Party to the other Party in connection with
                this
                Agreement.

            

    

     

    
      	1.3.  	
              “Rosetta
                IP”
                shall mean any and all Intellectual Property that Rosetta has developed
                or
                which Rosetta owns, as evidenced in written records, including but
                not
                limited to the Rosetta MicroRNAs.

            

    

     

    
      	1.4.  	
              “Research
                Results”
                shall mean any and all microRNAs expression profiling data measured
                on the
                Materials, and its analysis pertaining to potential diagnostic
                application, as determined in the course of the performance of the
                Research Project.

            

    

     

    
      	1.5.  	
              “Rosetta
                MicroRNAs”
                shall mean any novel human and non-human (including virus and bacteria)
                microRNAs predicted by Rosetta prior to the execution of this Agreement,
                as evidenced in writing.

            

    

     

    
      	1.6.  	
              “THM’s
                IP”
                shall mean any and all Intellectual Property developed and/or conceived
                and/or made and/or discovered and/or reduced to practice and/or owned
                by
                THM and/or by Sheba Medical Center and/or by Medical Research
                Infrastructure Development and Health Services Fund by the Sheba
                Medical
                Center (the “Fund”).

            

    

     

    
      	2.  	
              The
                Research Project.

            

    

     

    The
      parties will collaborate in the performance of the Research Project, pursuant
      to
      the following terms and conditions:

     

    
      	2.1.  	
              The
                Research Project shall include multiple trials as agreed upon by
                the
                Parties (the “Trials”),
                each Trial shall be performed in accordance with a Trial Protocol
                to be
                prepared by Rosetta for each Trial and agreed upon by THM (the
                “Protocol”).
                Each Protocol will be attached to this agreement as Appendix A1,
                A2 and so
                forth and constitute an integral part of this Agreement. The remuneration
                for each Trial shall be agreed upon by both Parties in advance and
                shall
                be specified in a budget schedule, executed by both Parties for each
                Trial
                and attached to the Trial’s Protocol (the “Budget
                Schedule”).
                The Budget Schedule of each Trial shall be attached to this agreement
                as
                Appendix B1, B2 and so forth and constitute an integral part of this
                Agreement, the Protocol and the Budget Schedule collectively hereinafter:
                the “Protocol
                Plan”;
                The Protocol Plan for each Trial shall constitute an integral part
                of this
                Agreement.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	2.2.  	
              The
                first Trial shall be conducted according to the Protocol attached
                to this
                Agreement as Appendix
                A1
                and constituting an integral part thereof (“Protocol
                A1”).
                THM and Rosetta shall perform the activities mentioned in Protocol
                A1. THM
                shall perform the activities designated to it in Protocol A1 and
                in any
                other Protocol, directly or by employing the services of the Fund
                or any
                other third party to be agreed between THM and Rosetta (the entity
                who
                shall carry out the Trials on the part of THM: “the
                Research Entity”).

            

    

     

    
      	2.3.  	
              Rosetta
                shall oversee the conduct of the Research Project. THM shall designate
                a
                senior researcher currently contemplated to be Prof. Gideon Rechavi
                (the
                “Investigator”)
                to collaborate with Rosetta in carrying out THM’s activities related to
                the Research Project.

            

    

     

    
      	2.4.  	
              A
                part of Rosetta’s activities under the Research Project shall be conducted
                in the facilities of the Hospital (“Rosetta’s
                Work”)
                by Rosetta’s employees and/or agents and/or representatives and/or
                contractor’s (“Rosetta’s
                Personnel”).

            

    

     

    
      	2.4.1.  	
              Rosetta’s
                Personnel shall be skillful, prudent, professionals and experienced
                in the
                field of the Research Project and shall hold any license and be qualified
                and authorized to perform Rosetta’s Work in accordance with the
                requirements of the applicable laws, regulations and
                guidelines.

            

    

     

    
      	2.4.2.  	
              Rosetta’s
                Work shall be performed by Rosetta’s Personnel in strict accordance with
                the Hospital’s and/or the Research Entity’s and/or THM’s internal
                guidelines and/or rules and/or directives relating to Rossetta’s Work
                and/or to the work performed at the Hospital’s facilities or to the
                Hospital’s and/or the Research Entity’s devises, instruments or
                systems.

            

    

     

    
      	2.4.3.  	
              Without
                derogating from anything to the contrary in this Agreement, Rosetta’s
                Personnel shall obey all administrative instructions of the Investigator
                or any other person designated by the Research Entity for such purpose
                (“Site’s
                Supervisor”).
                Site’s Supervisor shall determine the exact dates and hours during which
                Rosetta’s Work shall be performed at the
                Hospital.

            

    

     

    
      	2.4.4.  	
              Rosetta’s
                Personnel shall be deemed independent contactors and/or Rosetta’s
                employees, and shall not be considered a partner, agent, employee
                or
                representative of the Research Entity and/or of
                THM.

            

    

     

    
      	2.5.  	
              Either
                party may conduct additional research projects, independently or
                with
                other third parties, in parallel to or following the Research Project,
                and
                nothing in this Agreement shall prevent a party from engaging in
                any
                additional research, provided that it fulfills its obligations
                hereunder.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	2.6.  	
              Each
                party represents and warrants that it is legally authorized and entitled
                to assume all responsibilities under this
                Agreement.

            

    

     

    
      	2.7.  	
              It
                is a condition precedent to the validity of this Agreement with respect
                to
                each Trial that this Agreement shall come into effect with respect
                to each
                Trial only after approval is received from: the Helsinki Committee
                and the
                Hospital’s Committee for Research Contracts with Commercial Companies. The
                approval of the Helsinki Committee shall approve all the following:
                (a)
                the Protocol of the Trial (b) the transfer of the Study Specimens
                to
                Rosetta, (c) the use of the Study Specimens under the study to be
                conducted by Rosetta (the “Study”)
                (d) the Study. The performance of each Trial shall commence only
                after the
                Helsinki Committee approves the above with respect to such
                Trial.

            

    

     

    
      	2.8.  	
              Both
                parties undertake to perform the Research Project, in compliance
                with the
                following: (1) the Ministry Guidelines, as defined herein (2) the
                instructions and the terms specified in the approval of the Helsinki
                Committee (3) the ICH-GCP (4) the applicable laws, rules and regulations
                regulating such studies which are applicable in Israel. The “Ministry
                Guidelines”
                the MOH Guidelines titled “Clinical Trials of Human Subjects” issued in
                January 2006 including appendix 4 to the
                guidelines.

            

    

     

    
      	2.9.  	
              Rosetta
                shall use the Study Specimens solely for the purpose of the Study
                and not
                for any other purposes whatsoever.

            

    

     

    
      	2.10.  	
              Rosetta
                shall use and dispose of the Study Specimens in accordance with the
                State
                of Israel’s laws, rules, regulations and guidelines regulating and/or
                applicable and/or relevant to the use of the Study Specimens under
                the
                Study and to their disposal following the completion of the
                Study.

            

    

     

    
      	2.11.  	
              Immediately
                following the completion of the Study or the use of any Study Specimen
                under the Study, Rosetta shall dispose of or terminate the Study
                specimens
                as specified above.

            

    

     

    
      	2.12.  	
              Rosseta
                shall keep full and accurate records with respect to the use and
                to the
                dates and manner of disposal of each and every Study Specimen and
                shall
                provide such records to the Research Entity for examination, upon
                the
                Research Entity’s request.

            

    

     

    
      	2.13.  	
              For
                the removal of doubt it is hereby clarified that nothing specified
                in this
                Agreement shall be construed as a warranty by THM that the Research
                Project’s results or the results of any Trial shall be useful in any
                manner or commercially exploitable.

            

    

     

    
      	3.  	
              Permitted
                Uses of Information, Rights to the Research Results and Intellectual
                Property.

            

    

     

    
      	3.1.  	
              THM
                may use the information provided by Rosetta regarding the results
                of the
                Research Project under the terms of this agreement for research and
                academic purposes only. Notwithstanding the confidentiality obligations
                of
                Section 5, THM may publish the information in accordance with Section
                6
                below.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	3.2.  	
              THM
                agrees that all right, title and interest in and to the Research
                Results
                and any intellectual property deriving there from, whether they shall
                be
                protected by intellectual property rights or not, shall be solely
                owned by
                and vest with Rosetta. Without limiting the above, Rosetta shall
                be solely
                entitled, as it may deem fit, to file, in its name, patents and patent
                applications with respect to any Research Results, to publicize the
                Research Results and to commercially or otherwise exploit the Research
                Results Provided however that THM’s investigators shall be registered as
                “Inventors” in any such patent
                application.

            

    

     

    
      	3.3.  	
              Each
                party shall remain the sole owner of its own Intellectual Property.
                It is
                hereby expressly agreed that, nothing in this Agreement shall constitute
                or be considered as constituting a transfer or license of any Intellectual
                Property by one party to the other.

            

    

     

    
      	4.  	
              Costs
                of Research.

            

    

     

    
      	4.1.  	
              Rosetta
                agrees to bear [***] costs related to the performance of the experiments
                in relation to the Research Project, [***], all as indicated in the
                Budget
                Schedule of each Trial. The Budget Schedule of the first Trial specified
                in Protocol A1 is attached as Appendix
                B1.

            

    

     

    
      	4.2.  	
              Rosetta
                will reimburse THM for [***] the Material provided by THM pursuant
                to this
                Agreement according to Appendix C.

            

    

     

    
      	4.3.  	
              In
                addition, Rosetta will pay THM all the amounts specified in Section
                8
                herein (Royalties).

            

    

     

    
      	5.  	
              Confidentiality.

            

    

     

    
      	5.1.  	
              Non-Disclosure
                and Non-Use Obligations

            

    

     

    All
      Proprietary Information disclosed by one Party to the other Party hereunder
      shall be maintained in confidence and shall not be disclosed to any Third Party
      or used for any purpose except as expressly permitted herein without the prior
      written consent of the Party that disclosed the Proprietary Information to
      the
      other Party. The foregoing non-disclosure and non-use obligations shall not
      apply to the extent that such Proprietary Information: (i) is known by the
      receiving Party at the time of its receipt, and not through a prior disclosure
      by the disclosing Party, as documented by contemporaneous written records;
      (ii)
      is in the public domain or knowledge; (iii) is subsequently disclosed to a
      receiving Party by a Third Party who may lawfully do so and is not under an
      obligation of confidentiality to the disclosing Party; or (iv) is developed
      by
      the receiving Party independently of Proprietary Information received from
      the
      other Party, as documented by contemporaneous research and development
      records.

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	5.2.  	
              Permitted
                Disclosure of Proprietary Information.

            

    

     

    Notwithstanding
      Section 5.1, a Party receiving Proprietary Information of another Party may
      disclose such Proprietary Information: (i) to governmental or other regulatory
      agencies in order to obtain patents on Products, or to gain approval to conduct
      clinical trials or to market Products, but such disclosure may be only to the
      extent reasonably necessary to obtain such patents or authorizations; (ii)
      to
      its respective agents, consultants, Affiliates, sublicensees and/or other Third
      Parties for the research and development, manufacturing and/or marketing of
      Products (or for such parties to determine their interests in performing such
      activities) on the condition that such Third Parties agree to be bound by the
      confidentiality obligations contained in this Agreement; (iii) if required
      to be
      disclosed by law or court order, provided that notice is promptly delivered
      to
      the disclosing Party in order to provide an opportunity to challenge or limit
      the disclosure obligations; (iv) potential investors; and (v) regulatory
      authorities. Provided,
      however,
      without
      limiting any of the foregoing, it is understood that either Party or its
      Affiliates may make disclosure of this Agreement and the terms hereof in any
      filings required by the SEC, may file this Agreement as an exhibit to any filing
      with the SEC and may distribute any such filing in the ordinary course of its
      business. However, to the maximum extent allowable by SEC rules and regulations,
      the Parties shall be obligated to maintain the confidentiality obligations
      set
      forth herein and shall redact any confidential information set forth in such
      filings. Notwithstanding the aforementioned it is hereby agreed that THM is
      entitled to disclose the terms of this Agreement to the Hospital, the Fund
      and
      any other party which was established in connection with or for the benefit
      of
      the Hospital, but in no event shall THM be entitled to disclose the terms of
      this Agreement to any other hospitals, research institutions and tech transfer
      offices of such institutes, without first receiving the written prior approval
      of Rosetta.

     

    
      	6.  	
              Publications.
                Notwithstanding Rosetta’s rights set out in Section 3 above, THM shall
                have the right to publish the Research Results in scientific publications
                or to present such results at scientific symposia, provided that
                the
                following procedure is followed:

            

    

     

    
      	6.1.  	
              No
                later than 60 days prior to submission for publication of any scientific
                articles, abstracts or papers concerning Research Results or Research
                Project and prior to the presentation of such results at any scientific
                symposia, THM shall send to Rosetta a written copy of the material
                to be
                so submitted or presented, and shall allow Rosetta to review such
                submission to determine whether the publication or presentation contains
                confidential information or subject matter for which patent protection
                should be sought prior to publication or presentation for the preservation
                of patent rights.

            

    

     

    
      	6.2.  	
              Rosetta
                shall provide its comments with respect to such publication or
                presentation, as the case may be, within 30 days following its receipt
                of
                such written material. The Investigator shall give due consideration
                to
                Rosetta’s comments.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	6.3.  	
              If
                Rosetta, in its written comments, identifies material for which patent
                protection should be sought, then THM shall cause the publication
                or
                presentation of such submission to be delayed for a further period
                of up
                to 60 days from the receipt of such written comments to enable Rosetta
                to
                make the necessary patent filings.

            

    

     

    
      	6.4.  	
              THM
                shall name Rosetta scientists as authors in accordance with scientific
                custom.

            

    

     

    
      	6.5.  	
              In
                the event that Rosetta publishes the Rosetta Results, Rosetta shall
                name
                the Investigator and The Institute as authors in accordance with
                scientific custom.

            

    

     

    
      	7.  	
              Term
                and Termination.

            

    

     

    
      	7.1.  	
              The
                term of each Trial, and the Parties’ right to terminate each Trial will be
                specified in a written annex to this Agreement duly executed by the
                Parties. Such annex will be prepared per each
                Trial.

            

    

     

    
      	7.2.  	
              The
                parties’ respective rights, obligations and duties under this Agreement
                which by their nature extend beyond the expiration or termination
                hereof,
                shall survive any expiration or termination of this
                Agreement.

            

    

     

    
      	8.  	
              Claims,
                Liability And Insurance

            

    

     

    
      	8.1.  	
              Rosetta
                shall bear sole responsibility and bear any payment and/or compensation
                and/or liability for any damage whatsoever caused to any person,
                directly
                or indirectly, as a result of the performance of any of the Trials
                or the
                Research Project. Provided however that Rosetta shall not be responsible
                or liable to pay any payments or compensation that are the result
                of a
                negligent act or willful misconduct of the Beneficiaries (as such
                term is
                defined in Section 8.2 below).

            

    

     

    
      	8.2.  	
              Rosetta
                shall bear sole responsibility for any damage caused to any of Rosetta’s
                Personnel in the Hospital’s premises, or to any third party by Rosetta’s
                Personnel’s acts, omissions or willful
                misconduct.

            

    

     

    
      	8.3.  	
              Rosetta
                shall indemnify and hold harmless, THM, the Hospital, the Research
                Project
                staff, the Investigator and their employees and/or agents and/or
                officers
                and/or representatives (hereinafter: “The
                Beneficiaries”)
                from and against all claims, demands, causes of action and suits
                of
                whatsoever kind or nature based on damages claimed to have been caused
                as
                a result of the performance of any of the Trials and/or the Research
                Project and/or the Study and/or any procedures prescribed in any
                Trial
                Protocol and/or pertaining to the Research Project and/or from the
                performance of Rosetta’s Personnel’s Work and/or from the acts, omissions
                or willful misconduct of Rosetta’s Personnel (“the
                Loss”);
                provided, however, that:

            

    

     

    
      	8.3.1.  	
              The
                Loss was not caused as a result of a negligent act or willful misconduct
                of THM and/or the Research Entity and/or the Investigator and/or
                their
                employees and agents.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	8.3.2.  	
              The
                Loss was not caused as a result of THM’s and/or the Research Entity’s
                and/or the Investigator’s failure to perform the relevant Trial in
                accordance with the Trial’s
                Protocol.

            

    

     

    
      	8.3.3.  	
              THM
                notified Rosetta, within 30 working days from the day THM acquired
                such
                knowledge, of any claim, or injury relating to the Research
                Project.

            

    

     

    
      	8.3.4.  	
              Rosetta
                shall pay all expenses associated with any proceedings taking place
                as a
                result of a complaint and/or legal claim submitted by any person
                in
                respect of the Loss.

            

    

     

    
      	8.4.  	
              Without
                derogating from its above liabilities, the Company shall maintain
                adequate
                and appropriate insurance policies covering their liabilities under
                this
                Agreement. Such insurance shall include third parties’ liabilities and
                employer’s liabilities.

            

    

     

    
      	9.  	
              Royalties

            

    

     

    
      	9.1.  	
              The
                terms “Net Sales” “License”, “Licensing Consideration” and “Products”
                shall have the meaning ascribed to them in subsection 9.9
                below.

            

    

     

    
      	9.2.  	
              In
                return for THM’s undertaking under this Agreement, Rosetta shall pay to
                THM all the following amounts:

            

    

     

    
      	9.2.1.  	
              A
                royalty of [***]% ([***] percent) of Net Sales by or on behalf of
                Rosetta
                (“Royalties”).

            

    

     

    
      	9.2.2.  	
              [***]%
                ([***] percent) of all Licensing
                Consideration.

            

    

     

    
      	9.3.  	
              In
                the event Rosetta is obligated, pursuant to agreements with Research
                Institutes, as defined below, to pay THM and other Research Institutes
                royalties of Net Sales with respect to a product employing the Patents
                and
                Additional Patents (the “Combination
                product”),
                in a total amount exceeding [***]% ([***] percent) of Net Sales,
                then
                Rosetta shall be entitled to reduce the amount of Royalties payable
                to THM
                hereunder according to the following principals: (a) Rosetta shall
                calculate the total amount of Royalties it is obligated to pay THM
                and the
                Research Institutes that their Additional Patents are required for
                the
                sale, manufacture or use of the Combination Product (the “Total
                Royalties Amount”);
                (b) Rosetta shall calculate the difference between the Total Royalties
                Amount and [***]% (the “Difference”);
                (c) Rosetta shall calculate the relative share of THM’s Royalties in the
                Total Royalties Amount (“THM’s
                Royalties Share”)
                and (d) Rosetta shall be entitled to reduce THM’s amount of Royalties by
                an amount equal to the product of THM’s Royalties Share multiplied by the
                Difference. Provided,
                however,
                that in no event shall THM’s Royalties be reduced to less than
                [***]%.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    For
      example: if Rosetta will be required to pay to Research Institutes in
      consideration for patent rights an amount of [***]%. Then THM’s Royalties Share
      shall be [***]% ([***]), and Rosetta shall have the right to reduce THM’s
      royalties in an amount of [***]% and it will owe THM [***]% of royalties instead
      of [***]%.

     

    In
      the
      event Rosetta wishes to reduce THM’s Royalties, as specified in this clause 9.3,
      Rosetta shall be obligated to provide THM, [***] prior to such reduction, with
      a
      written report containing the manner in which the reduction was calculated,
      including all the details specified in clause 9.3 (a) - 9.3 (d) herein and
      in
      the above example. Such report shall be executed and confirmed by both,
      Rosetta’s Chief Financial Officer and by Rosetta’s external auditor
      (accountant).

     

    “Research
      Institute”
shall
      mean: any entity that shall develop Research Results in collaboration with
      or
      for Rosetta, or separately from Rosetta, whether prior to the Effective Date
      or
      during the term of this Agreement, provided that such Research Results are
      covered by a patent (“the
      Additional Patents”).
      For
      the removal of doubt it is hereby clarified that “Research Institute” shall not
      include manufacturers, producers and or any other service providers except
      as
      explicitly defined above.

     

    
      	9.4.  	
              The
                amounts payable to THM under this clause 9 shall be paid as
                follows:

            

    

     

    
      	9.4.1.  	
              Royalties,
                as specified in subsections 9.2.1, shall be paid on a quarterly basis.
                Within [***] after the end of each quarter, commencing on the first
                quarter where the first commercial sale took place or Licensing
                Considerations are paid to Rosetta.

            

    

     

    
      	9.4.2.  	
              THM’s
                fee of Licensing Consideration, as specified in subsection 9.2.2
                shall be
                paid within [***] from receipt of any Licensing Consideration by
                Rosetta
                from any Licensee.

            

    

     

    
      	9.5.  	
              In
                calculating Net Sales, Licensing Consideration, all amounts shall
                be
                expressed in US Dollars and any amount received or invoiced in a
                currency
                other than US Dollars shall be translated into US Dollars, for the
                purposes of calculation, in accordance with the Exchange Rate between
                the
                US Dollar and such currency on the date of such receipt or invoice,
                as the
                case may be. 

            

    

     

    
      	9.6.  	
              Rosetta
                shall provide THM with the following written reports: (a) a report
                specifying the amounts payable to THM from Licensing Consideration.
                Such
                report shall be provided to THM within [***] after any Licensing
                Consideration are received; and (b) a detailed quarterly report,
                commencing with the first calendar quarter in which any Net Sales
                are
                made, or Licensing Consideration received or royalties are received
                by
                Rosetta, in a form acceptable to THM, signed by the chief financial
                officer of Rosetta, specifying all amounts payable to THM under this
                clause 8 in respect of the previous quarter to which the report refers.
                Such report shall include: (i) the sales made by Rosetta and Licensees
                with a breakdown of Net Sales according to country, identity of seller,
                currency of sales, dates of invoices, number and type of Products
                sold
                and; (ii) Licensing Consideration with a breakdown according to identity
                of Licensees, countries, the currency of the payment and date of
                receipt
                thereof; and (iii) deductions applicable, as provided in the definition
                of
                “Net Sales”; (iv) the Total royalties Amount paid by Rosetta of Net Sales,
                and THM’s Royalties Share; and (iv) any other matter required by THM in
                order to calculate and/or verify the amounts payable hereunder; and
                (c)Within [***] after the end of each fiscal year, Rosetta will provide
                THM with a detailed report, certified by its Chairman of the Board
                and by
                it’s independent auditor, stating all amounts due to THM pursuant to
                this
                clause 8 in the reported year including relevant Invoices issued
                and all
                invoices and all payments received by Rosetta with respect to it’s Net
                Sales and to the Licensing Consideration as detailed in the quarterly
                reports.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	9.7.  	
              Rosetta
                shall keep and shall cause Licensees to keep complete, accurate and
                correct books of account and records consistent with sound business
                and
                accounting principles and
                practices.

            

    

     

    
      	9.8.  	
              THM
                shall be entitled to appoint an independent auditor selected by it
                to
                inspect, during Rosetta’s regular business hours, all equipment, records,
                and documents of Rosetta as may contain information bearing upon
                the
                amounts payable to THM under this clause 8. Rosetta shall take all
                steps
                necessary so that all such books of account, records and other
                documentation of Rosetta and its Licensees are available for inspection
                as
                aforesaid at a single location for each of Rosetta and its Licensees.
                The
                cost of such auditing shall be borne by Rosetta if the audit uncovers
                an
                underreporting of the corresponding amounts owed to THM by more than
                [***]
                percent ([***]%). Otherwise, such costs and expenses shall be borne
                by
                THM. Rosetta shall remedy such discrepancy and pay (i) the shortfall
                within [***] of the date of discovery; and (ii) interest thereon
                at the
                rate of [***]% above the London Interbank Offered Rate (LIBOR) applicable
                to a 12 month USD deposit, as such rate shall be in effect on each
                Disbursement Date. The Interest shall be compounded annually and
                computed
                on the basis of a 360 day year.

            

    

     

    
      	9.9.  	
              Definitions:

            

    

     

    
      	9.9.1.  	
              “Net
                Sales”
                shall mean the Total amount invoiced by Rosetta with respect to Products
                sold anywhere in the world (whether in a territory where one or more
                of
                the Patents is applicable or not) after deducting (if not previously
                deducted from the amount invoiced):

            

    

     

    
      	(i)  	
              customs
                duties, VAT or any other sales taxes or levies to the extent applicable
                to
                the sale or export of Products or Services and not collected separately
                from the counterparty to the sale;

            

    

     

    
      	(ii)  	
              Amounts
                credited by a credit note.

            

    

     

    provided
      that, with respect to sales which are not at arms-length and/or are not in
      the
      ordinary course of business and/or are not according to then current market
      conditions for such a sale, the term “Net Sales” shall mean the total amount
      that would have been due in an arms-length sale made in the ordinary course
      of
      business and according to the then current market conditions for such sale
      or,
      in the absence of such current market conditions, according to market conditions
      for sale of products similar to the Products, and provided further that, with
      respect to sales by Rosetta, to any affiliate, the term, “Net Sales” shall mean
      the higher of: (a) “Net Sales”, as defined above, with respect to sales which
      are not at arms-length and/or in the ordinary course of business and/or
      according to current market conditions; and (b) the total amount invoiced by
      such affiliate on resale to an independent third party purchaser after the
      deductions specified in subparagraphs (i) and (ii) above, to the extent
      applicable;

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    For
      the
      sake of clarity, Net Sales shall not include amounts received by Rosetta for
      research funding.

     

    
      	9.9.2.  	
              This
                section was intentionally left
                blank.

            

    

     

    
      	9.9.3.  	
              “Licence”
                shall mean any right granted, licence and/or sublicense given, or
                agreement entered into, by Rosetta to or with any other person or
                entity,
                permitting any use of the Research Results and/or any other information
                and/or data and/or technologies and/or developments conceived and/or
                developed in the course of the Research Project and/or the Patents
                (or any
                part thereof) for the development and/or manufacture and/or marketing
                and/or distribution and/or sale of Products; and the term “Licensee”
                shall be construed accordingly;

            

    

     

    
      	9.9.4.  	
              “Licensing
                Consideration”
-
                shall mean all royalties, license fees and milestone payments, or
                all
                other payment, whether monetary or otherwise, received by Rosetta
                for or
                from the grant of Licences and/or pursuant thereto, or in connection
                with
                the grant of an option for a Licence. For clarity, Licensing Consideration
                will not include equity investments in Rosetta, research funding
                paid to
                Rosetta or loans provided that such loans were not granted to Rosetta
                for
                a grant of License;

            

    

     

    “Research
      Results”:
      all
      and any inventions, products, materials, compounds, compositions, substances,
      methods, processes, techniques, know-how, data, information, discoveries and
      other results of whatsoever nature discovered or occurring in the course of,
      or
      arising from, the performance of a research;

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THM’s
      Research
      Results”:
      Research results discovered or occurring in the course of, or arising from,
      the
      performance of the Research Project including all Trials.

     

    “Patents”:
      all
      patent applications or applications for certificates of invention covering
      portions of THM’s Research Results and all patents or certificates of invention
      which may be granted thereon; as well as all continuations,
      continuations-in-part, patents of addition, divisions, renewals, reissues and
      extensions of any of the foregoing patents, but excluding patent applications
      that have been withdrawn, expired or not accepted, in each case, such exclusion
      with effect only from the date of such invalidation, cancellation, withdrawal
      or
      expiry, as the case may be.

     

    
      	9.9.5.  	
              “Products”
-
                any products, the development, design, manufacture, sale or use of
                which
                is based upon and/or uses and/or employs one or more Patents and/or
                THM’s
                Research Results covered by a Patent, provided however that if a
                certain
                Patent was not approved, then any product including THM’s Research Results
                that were part of such not approved Patent, will be considered a
                Product
                as well.

            

    

     

    
      	10.  	
              Miscellaneous.

            

    

     

    
      	10.1.  	
              Assignment.
                No party to this Agreement shall be entitled to transfer or assign
                its
                rights or obligations under this Agreement, unless with the prior
                written
                consent of the other party, which shall not be unreasonably withheld;
                provided however that an assignment resulting from merger and/or
                acquisition of either party shall not require the consent of the
                other
                party, in the event that the surviving entity is committed to such
                assigning party’s obligations hereunder. Notwithstanding the
                aforementioned, THM shall be entitled to assign it’s rights and
                obligations hereunder to any legal entity which was established in
                connection with or for the benefit of the
                Hospital.

            

    

     

    
      	10.2.  	
              No
                Agency.
                It is hereby expressly declared and agreed that this Agreement in
                no way
                establishes any principal-agent, employer-employee, or partnership
                relations between the parties. Nothing in this Agreement shall be
                construed as granting either party the power or authority to act
                for or on
                behalf of the other party, to create any undertakings on behalf of
                the
                other party, or to bind or commit the other party in respect to any
                such
                undertakings, except as set forth herein or as otherwise agreed to
                in
                writing between the parties prior to such
                act.

            

    

     

    
      	10.3.  	
              Governing
                Law; Venue.
                This Agreement shall be governed by and construed in accordance with
                the
                laws of the State of Israel. The competent courts of Tel Aviv shall
                have
                the exclusive jurisdiction to adjudicate on any disputes arising
                hereunder.

            

    

     

    
      	10.4.  	
              Entire
                Agreement.
                This Agreement, including all exhibits attached hereto, constitutes
                the
                entire understanding of the parties and supersedes all oral or written
                representations, agreements and understandings between the parties
                with
                respect to the subject matter hereof, all of which shall become,
                upon
                signature of this Agreement, void.

            

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	10.5.  	
              Amendments;
                Interpretation.
                No modification or amendment of this Agreement may be made except
                in a
                written instrument duly signed by all parties. The headings in this
                Agreement are inserted for convenience of reference only and shall
                not
                affect its interpretation. The preamble and annexes to this Agreement
                form
                an integral part of this Agreement.

            

    

     

    
      	10.6.  	
              Severability.
                If any non-material condition, term or covenant of this Agreement
                shall at
                any time be held to be void, invalid or unenforceable such condition,
                covenant or term shall be construed as severable and such holding
                shall
                attach only to such condition, covenant or term and shall not in
                any way
                affect or render void, invalid or unenforceable any other condition,
                covenant or term of this Agreement, and this Agreement shall be carried
                out as if such void, invalid or unenforceable term were not embodied
                herein.

            

    

     

    
      	10.7.  	
              Waivers.
                The failure at any time of either Party to enforce any of the terms
                or
                conditions or any right or to exercise any option of this Agreement
                will
                in no way be construed to be a waiver of such terms, conditions,
                rights or
                options, or in any way to affect the validity of this Agreement.
                A waiver
                by a party of any of its rights under this Agreement shall not be
                effective unless made by a written instrument duly signed by such
                party,
                and shall not be deemed a waiver of any other right
                hereunder.

            

    

     

    
      	10.8.  	
              No
                Hiring.
                Both Parties acknowledge that each Party would receive substantial
                additional value and would be deprived of the benefits of its work
                force,
                if the other Party were to hire such Party’s personnel after such Party’s
                introduction of them to the other Party. Accordingly, each Party
                shall
                not, directly or indirectly, recruit or hire or engage any personnel
                of
                the other Party that are or have been assigned to perform any of
                the
                services and/or Research Project or any part thereof hereunder, or
                induce
                such personnel to quit employment with the other Party, during the
                term of
                this Agreement and for a period of [***] following the termination
                of this
                Agreement, without the other Party’s prior written
                consent..

            

    

     

    
      	10.9.  	
              Notices.
                Any notice sent by one party to the others to the addresses set forth
                below shall be considered as having reached its destination, if it
                was
                delivered by hand, at the time of its delivery; if it was sent by
                registered mail, within 96 hours from the time it was so dispatched;
                and
                if it was sent by facsimile, within 48 hours from the receipt of
                the
                confirmation of proper transmission of the
                notice.

            

    

     

    
      	
              If
                to Rosetta:

               

            	
              10
                Plaut Street, Rehovot, 76706, Israel

              Fax:
                972-8-9484766

              Attention:
                Director, Business Development

               

            
	
              If
                to THM:

               

            	
              Tel
                Hashomer Ltd.

              The
                Technology Transfer Company of

              Claim
                Sheba Medical Center, Tel Hashomer, 5621 Israel

              Office:
                +972 3 5305998

              Fax:
                +972 3 5305944 Attention: Business Development

               

            

    

    

    IN
      WITNESS WHEREOF, the parties have set their signatures hereunto as of the date
      first above written.

    

      
        	
                ROSETTA
                  GENOMICS LTD.

                 

              	 
	
                By:     
                  /s/ Amir Avniel

              	
                By:     
                  /s/ Shlomo Nos

              
	
                Name:
                  Amir Avniel

              	
                Name:
                  Shlomo Nos

              
	
                Title:  
                  President and CEO

              	
                Title:  
                  Chairman

              

      

    

     

    I,
      Prof.
      Gideon Rechavi as THM Researcher in this Agreement, acknowledge that I have
      read
      this Agreement in its entirety and that I shall uphold my individual obligations
      and responsibilities set forth herein.

     

    /s/
      Gideon
      Rechavi                                
 

    Prof.
      Gideon Rechavi

    

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Appendix
      A

     

    Research
      Plan for Lung Cancer Project: Sheba Medical center - Rosetta Genomics
      Ltd.

     

    May
      16th,
      2006

     

    Project
      Goal:

     

    Develop
      a
      [***]. The study will use a [***] and [***] of [***] that are [***] of human
      lung cancer.

     

    Project
      Sub-goals:

     

    
      	
            	1.	
              [***]

            

    

     

    
      	 	
              2.

            	
              Perform
                the [***].

            

    

     

    Stage
      1:

     

    
      	
              Step

            	
              Details

            	
              Suggested
                Responsible Party

            	
              Estimated
                Completion Time

            
	
              I. Pre-discovery:

               

            	
              Obtain
                [***]. In order to [***].

               

            	
              [***]

               

            	
              [***]

               

            
	
              Identify
                [***]. This step will [***].

               

            	
              [***]

               

            	
              [***]

               

            
	
              II. Discovery:

               

            	
              Obtain
                [***]. The [***].

               

            	
              [***]

               

            	
              [***]

               

            
	
              Perform
                [***].

               

            	
              [***]

               

            	
              [***]

               

            
	
              Analyze
                [***] in order to [***].

               

            	
              [***]

               

            
	
              Based
                on [***].

               

            	
              [***]

               

            	
              [***]

               

            

    

    

    Stage
      2:

     

    Steps
      1-3
      will apply to [***] availability and on [***]. Rosetta will [***] Sheba for
      this
      purpose [***]. Following this, Sheba will [***] Rosetta [***], as will be
      determined by both parties. Rosetta will[***].

     

    [***]
      will be [***] as soon as Sheba’s [***] will be [***].

     

    General
      guideline:

     

    [***]
      will be [***] in the Rosetta Genomics’ [***].

     

    In
      order
      to [***] Rosetta Genomics will [***]Sheba will [***].

     

    Budget
      for the Lung Cancer project:

     

    
      	
               

              Technician
                [***]

            	
               

              $[***]

            
	
               

              Research
                Coordinator

            	
               

              $[***]

            
	
               

              Kits,
                reagents, disposables

            	
               

              $[***]

            
	
               

              Overhead
                [***]%

            	
               

              $[***]

            
	
               

              Total

            	
               

              $[***]

            

    

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.LICENSE
      AGREEMENT

    

    

    by
      and
      between

    

    Garching
      Innovation GmbH

    a
      German
      corporation having a principal place of business at

    Marstallstraße
      8, 80539 Muenchen, Germany 

    -hereinafter
      called “GI"-

    

    and

    

    Rosetta
      Genomics Ltd.

    an
      Israeli corporation having a principal place of business at

    10
      Plaut
      Street, Science Park, Rehovot 76706, Israel

    -hereinafter
      called “COMPANY“- 

    

    -GI
      and
      COMPANY hereinafter also individually called a "Party", or collectively called
      the "Parties"-.

    

    PREAMBLE

    

    At
      the
      Max-Planck-Institute for Biophysical Chemistry in Goettingen, an institute
      of
      the Max-Planck-Gesellschaft zur Foerderung der Wissenschaften e.V. (hereinafter
      “MPG“), a German non-profit scientific research organisation, Dr. Thomas Tuschl
      and other scientists
      of MPG have discovered certain microRNA
      sequences (internal GI file No. GI 2916 ZJE). MPG has filed certain MPG Patent
      Rights (as later defined herein) relating thereto. 

    

    GI
      has
      already granted a co-exclusive license under the MPG Patent Rights to develop
      and commercialize products for Therapeutic Purposes (as later defined herein)
      to
      Alnylam Pharmaceuticals, Inc., and to Isis Pharmaceuticals, Inc. (hereinafter
      the “Therapeutic
      Licenses”, or the "Therapeutic Licensees", as applicable). In addition, GI has
      already granted, and will grant in the future, non-exclusive licenses
under
      the
      MPG Patent Rights to develop and commercialize products for Research Purposes
      (as later defined herein) to various companies.

    

    COMPANY
      is focused on the development, manufacture and sale of products, and the
      performance and sale of services, for Diagnostic Purposes (as later defined
      herein). COMPANY desires to obtain one of four co-exclusive licenses under
      the
      MPG Patent Rights to develop and commercialize products and services for
      Diagnostic Purposes.

    

    MPG
      has
      authorized GI, its technology transfer agency, to act as its sole agent for
      patenting and licensing the MPG Patent Rights, and to sign this Agreement in
      GI's own name.  Now,
      therefore, COMPANY and GI agree as follows:

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE
      1 - DEFINITIONS

     

    1.1
      "Affiliates"

     

    shall
      mean any legal entity (including, without limitation, a corporation,
      partnership, or limited liability company) that controls, is controlled by,
      or
      is under common control with COMPANY.
      For the purpose of this definition, the term "control" or "controlled by" means
      (i) direct or indirect ownership of at least fifty percent (50%) of the voting
      securities of a legal entity, or (ii) a fifty percent (50%) or greater interest
      in the net assets or profits of a legal entity, or (iii) possession, directly
      or
      indirectly, of the power to elect or direct the management of a legal
      entity.

    

    1.2
      "Agreement"

     

    shall
      mean the present agreement between GI and COMPANY, including all of its
      Annexes.

    

    1.3
      "Analyte
      Specific Reagents"
      (or
      "ASRs")
      

     

    shall
      mean antibodies, both polyclonal and monoclonal, specific receptor proteins,
      ligands, nucleic acid sequences, and similar reagents which, through specific
      binding or chemical reaction with substances in a specimen, are intended for
      use
      in a diagnostic application for identification and quantification of an
      individual chemical substance or ligand in biological specimens. ASR's that
      otherwise fall within this definition shall not fall within this
      definition when they are sold to (i) in vitro diagnostic manufacturers for
      the purpose of manufacturing in vitro diagnostic products, or (ii) organizations
      that use the reagents to make tests for purposes other than providing diagnostic
      information to patients and practitioners, e.g., forensic, academic, research,
      and other non-clinical laboratories.

    

    1.4
      “Confidential
      Information”

     

    shall
      mean any information which is of a confidential and proprietary nature,
      including without limitation information in relation to the business of a Party
      to which this Agreement relates, and information in relation to patents, patent
      applications or other intellectual property rights Controlled by a
      Party.

     

    Confidential
      Information will not include any information that the receiving Party can prove
      by written records (i) was known by the receiving Party prior
      to
      the receipt of Confidential Information from the disclosing Party, (ii) was
      disclosed to the receiving Party by a Third Party having the right to do so,
      (iii) was, or subsequently became, part of the public domain through no fault
      of
      the receiving Party, or (iv) was subsequently and independently developed by
      personnel of the receiving Party without having had access to or making use
      of
      the disclosing Party’s Confidential Information.

    

    1.5
      “Control”
      or “Controlled”

     

    shall
      mean, with respect to any patents, patent applications, or other intellectual
      property rights, possession of the right (whether by ownership, license or
      otherwise), to assign, or grant a license to, such patents, patent applications,
      or other intellectual property rights without violating the terms of any
      agreement with any Third Party, or any applicable law or governmental
      regulation.

    

    1.6
      "Diagnostic
      Purposes"

     

    shall
      mean use
      

     

    
      	(a)  	
              in
                clinical
                research where the medical management of a human is involved, for
                (aa)
                the measurement, observation or determination of (i) the presence
                of a
                human disease, (ii) the stage, progression or severity of a human
                disease,
                (iii) the risk of contracting a disease,or (iv) the effect of a particular
                treatment on a human disease; and/or (bb) the selection of patients
                for a
                particular treatment with respect to a human disease;
                and/or

            

    

    
      	(b)  	
              in
                clinical
                laboratory for tracking, testing or quality controlling of human
                body
                fluids or tissue samples, and/or

            

    

    
      	(c)  	
              designated
                and regulated by the FDA as a diagnostic test or ASR, to the extent
                used
                according to (a) and/or (b) above. 

            

    

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.7
      "Effective
      Date"

     

    shall
      mean the date when this Agreement comes into force and effect, which shall
      be
      June 30, 2006.

    

    1.8
      “FDA”

     

    shall
      mean (i) the United States Food and Drug Administration or any successor agency
      thereto, and (ii) any non-United States agency or commission performing
      comparable functions (e.g. the European Medicines Agency EMEA) or any successor
      agency thereto. 

    

    1.9
      “Field”

     

    shall
      mean sale and use of Licensed Products, or performance and sale of Licensed
      Services, for

     

    (a) COMPANY’S
      internal and collaborative research and development purposes, and

     

    (b) Diagnostic
      Purposes,

     

    specifically
      excluding any sale and use of Licensed Products, or performance and sale of
      Licensed Services, for Research Purposes or for Therapeutic
      Purposes.

     

    1.10
      "Licensed
      Products"
      

     

    shall
      mean any product (i)
      that,
      or the development, manufacture, use or sale of which, absent the license
      granted hereunder, would
      infringe one or more Pending Claims or Valid Claims of the MPG Patent Rights,
      or
      (ii) which is developed or manufactured by using a Licensed Process or that,
      when used, practices a Licensed Process. 

     

    For
      the
      purpose of this Agreement, diagnostic kits shall be considered as Licensed
      Products, and Net Sales of diagnostic kits shall be considered as Net Sales
      of
      Licensed Products, if and to the extent such diagnostic kits contain Licensed
      Products as the sole diagnostically active product component, together with
      other diagnostically non-active product components (including without limitation
      buffers, purification components, or hardware such as tubes, plates,
      glassware).

    

    1.11
      "Licensed
      Process"
      

     

    shall
      mean any process (i) that, absent the license granted hereunder, would infringe
      one or more Pending Claims or Valid Claims of the MPG Patent Rights, or (ii)
      which uses a Licensed Product.

    

    1.12
      "Licensed
      Service"

     

    shall
      mean any service (i) that, or the performance or sale of which, absent the
      license granted hereunder, would infringe one or more Pending Claims or Valid
      Claims of the MPG Patent Rights, or (ii) which, when performed, uses a Licensed
      Process or a Licensed Product.

    

    1.13
      "MPG
      Patent Rights"

     

    shall
      mean:

     

    
      	(a)  	
              the
                patent applications filed by MPG listed in Annex 1, and the resulting
                patents,

            

    

    
      	(b)  	
              any
                subsequent patent applications in any jurisdiction claiming the same
                priority date and directed to the same subject matter as the patent
                application listed in Annex 1, and any divisionals, continuations,
                continuation-in-part applications, and continued prosecution applications
                (and their relevant international equivalents) of the patent applications
                listed in Annex 1, and the resulting patents,
                and

            

    

    
      	(c)  	
              any
                patents resulting from reissues, reexaminations (and their relevant
                international equivalents) of the patents described in (a) and (b)
                above.

            

    

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.14
      “Net
      Sales”

     

    
      	(a)  	
              shall
                mean the gross amount invoiced by each of COMPANY, Affiliates,
                Sublicensees and Sales Partners to
                independent Third Parties for the sale, use, lease, transfer or other
                disposition of Licensed Products (including the amounts invoiced
                for
                diagnostic kits) and Licensed Services in a first commercial sale
                at arm's
                length transaction, less the following: (i) to the extent separately
                stated on the document of sale, any taxes or duties imposed on the
                sale or
                import of Licensed Products and Licensed Services which are actually
                paid,
                (ii) to the extent separately stated on the document of sale, any
                outbound
                transportation costs and costs of insurance in transit, (iii) customary
                trade, cash or quantity discounts or rebates, to the extent actually
                allowed and taken, (iv)
                amounts repaid or credited by reason of rejection or
                return.

            

    

    
      	(b)  	
              COMPANY,
                Affiliates, Sublicensees and Sales Partners will be treated as having
                sold
                Licensed Products and Licensed Services for an amount equal to the
                fair
                market value of such Licensed Products if (i) Licensed Products and
                Licensed Services are internally used by each of COMPANY, Affiliates,
                Sublicensees or Sales Partners (excluding Licensed Products used
                by
                COMPANY for COMPANY’S internal and collaborative research and development
                purposes) without charge or provision of invoice, or (ii) Licensed
                Products and Licensed Services are provided to a Third Party by each
                of
                COMPANY, Affiliates, Sublicensees or Sales Partners without charge
                or
                provision of invoice and used by such Third Party, except in
                the case of reasonable amounts of Licensed Products and
                Licensed Services used
                as promotional
                free samples, free goods, or other marketing programs to
                induce sales.

            

    

    
      	(c)  	
              If
                COMPANY, Affiliates,
                Sublicensees
                or Sales Partners sell a Licensed Product to a Third Party in
                a first commercial sale at arm's length transaction for further resale,
                and if the relation between COMPANY and such Third Party is a pure
                seller-buyer relationship (i.e. if the agreement between COMPANY,
                Affiliates, Sublicensees
                or Sales Partners and
                such Third Party does not provide for any obligation to share costs
                or
                revenues, or a reporting obligation, or responsibility for sales
                and/or
                marketing efforts in a country),
                then the gross amount to be included in the calculation of Net Sales
                shall
                be the amount invoiced by COMPANY, Affiliates,
                Sublicensees
                or Sales Partners to such Third Party, not the amount invoiced by
                such
                Third Party upon resale.

            

    

    
      	(d)  	
              No
                deductions shall be made for commissions paid to individuals or entities,
                or for cost of collections. Net Sales shall occur on the date of
                invoice
                for a Licensed Product or a Licensed
                Service.

            

    

    
      	(e)  	
              Sales
                of Licensed Products between COMPANY and its Affiliates,
                Sublicensees
                or Sales Partners, or among such Affiliates,
                Sublicensees
                and Sales Partners, for a subsequent resale of such Licensed Product
                to a
                Third Party, shall not be included in the calculation of Net Sales,
                but in
                such cases the Net Sales shall be calculated on the amount invoiced
                by
                such Affiliates,
                Sublicensees or Sales Partners to a Third Party upon resale.
                

            

    

    
      	(f)  	
              In
                the event that a Licensed Product is sold in a combination product
                form
                with one or more other diagnostically active product components (i.e.
                other microRNAs) which are not Licensed Products and which are required
                to
                improve the accuracy of the Licensed Product (the "Combination Product"),
                then Net Sales, for purposes of determining royalty payments on the
                Combination Product, shall be calculated by multiplying the Net Sales
                of
                the Combination Product by [***]. In the event that a Licensed Product
                is
                sold in combination with other diagnostically active product component(s),
                and the Licensed Product or one or more diagnostically active product
                components are not sold separately, then Net Sales, for the purpose
                of
                determining royalty payments on the Combination Product, shall be
                calculated by multiplying the Net Sales of the Combination Product
                by
                [***]. In the event that a Licensed Service is sold in a combination
                service form, which service uses Licensed Products and one or more
                other
                diagnostically active product components that are not Licensed Products,
                this Subsection (f) shall apply
                accordingly.

            

    

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.15
      "Pending
      Claim"
      

     

    shall
      mean any claim in a pending patent application in the country in question within
      the MPG Patent Rights that (i) has not been pending for more than 8 years after
      the Effective Date (provided, however, that if the Parties agree on a joint
      patent strategy which sets forth that certain patent applications (e.g.
      divisionals, continuations-in-part) within the MPG Patent Rights will be
      prosecuted with a certain delay, such 8-years-period will be prolonged
      accordingly), and (ii) has not been abandoned by MPG, or finally rejected by
      a
      competent administrative agency or court of competent jurisdiction from which
      no
      appeal can be or is taken.

    

    1.16
      "Research
      Purposes"

     

    shall
      mean use as a research reagent for basic or applied research purposes only,
      specifically excluding (i) any use for Diagnostic Purposes or Therapeutic
      Purposes, whether said uses are in vivo or in vitro, and (ii) any use in humans
      for whatever purpose.
      Specifically excluded from Research Purposes are
      ASR
      products, to the extent the ASR products are used for Diagnostic
      Purposes.

    

    1.17
      "Sales
      Partners" 

     

    shall
      mean any person or legal entity that is authorized by COMPANY or its
Affiliates
      and Sublicensees
      by any kind of agreement to market, promote, distribute or sell, or otherwise
      dispose of, Licensed Products and/or
      Licensed Services
      to a
      Third Party in a first commercial sale at arm's length transaction without
      violating this Agreement or the MPG Patent Rights.
      Sales
      Partner shall not include wholesale distributors who purchase Licensed Products
      from COMPANY or its Affiliates and Sublicensees in
      a
      first commercial sale at arm's length transaction for further resale, and who
      have no other obligation (including without limitation any obligation to share
      costs or revenues, or a reporting obligation, or responsibility for sales and/or
      marketing efforts in a country) to COMPANY
      or its Affiliates and Sublicensees. 

    

    1.18
      "Sublicense
      Consideration"

     

    shall
      mean [***] consideration, [***], received by COMPANY from Sublicensees as
      consideration for or otherwise in connection with the sublicense granted.
      Sublicense Consideration specifically excludes (i) [***],
      (ii)
      [***], (iii) [***], (iv) [***], and (v) [***]research and development activities
      under a research agreement with the Sublicensee specifically and directly in
      connection with the sublicense granted. 

    

    1.19
      “Sublicensee”

     

    shall
      mean any Third Party that is granted a sublicense to the MPG Patent Rights
      in
      accordance with Section 2.2. 

     

    1.20
      “Term”

     

    shall
      have the meaning set forth in Section 9.1 of this Agreement.

    

    1.21
      "Therapeutic
      Purposes"

     

    shall
      mean all prophylactic and therapeutic uses in human diseases, in particular
      to
      treat and/or prevent the cause and/or symptoms of human diseases. 

    

    1.22
      “Third
      Party”

     

    shall
      mean any person or entity other than GI
      and
      COMPANY and their respective Affiliates. 

    

    1.23
      "Valid
      Claim"
      

     

    shall
      mean any claim in an issued patent in the country in question within the MPG
      Patent Rights that (i) has not lapsed, or (ii) has not been held invalid by
      a
      final judgment of a competent administrative agency or a court of competent
      jurisdiction from which no appeal can be or is taken, or (iii) has not been
      abandoned by MPG.

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      2 - GRANT
      OF RIGHTS

    

    2.1
      License
      Grant

     

    (a) GI
      grants
      to COMPANY during the Term a co-exclusive, worldwide, royalty-bearing license
      under the MPG Patent Rights to develop, have developed, make, have made, use,
      have used, import, have imported, sell and have sold Licensed Products, and
      to
      perform, have performed, sell and have sold Licensed Services, each in the
      Field.

    

    (b) In
      order
      to establish co-exclusivity, GI shall not grant, during the Term, more
      than
      three other co-exclusive licenses to the MPG
      Patent Rights in the Field with the scope as set forth in Subsection (a) above
      (hereinafter
      the “Other Diagnostic Licenses”, or the "Other Diagnostic Licensees", as
      applicable).

    

    2.2
      Sublicenses

     

    (a) COMPANY
      shall have the right to grant sublicenses to the rights granted to it under
      Section 2.1 to
      Third
      Parties, subject to the terms and conditions of the following
      Subsections.

    

    (b) COMPANY
      may grant sublicenses to Third Parties only if (i) the intended sublicense
      also
      includes a license to substantial intellectual property rights (e.g. pending
      or
      issued patents that are dominant or subordinate to the MPG Patent Rights) solely
      or co-owned by COMPANY in the field of "microRNAs", and (ii) the intended
      sublicense is reasonably necessary for COMPANY to further develop and/or
      commercialise specific Licensed Products in specific indications jointly with
      the intended Sublicensee, and (iii) GI has given its prior written approval
      to
      the intended sublicense, which shall not unreasonably be withheld; in
      particular, GI may withhold its approval if the intended sublicense would be
      materially detrimental to the co-exclusivity of the Other
      Diagnostic Licensees.

     

    COMPANY
      shall provide GI in writing at least [***] prior to the intended signature
      of
      any such sublicense agreement with the final draft to permit GI to decide
      whether or not to approve. Any requested approval is deemed to be granted if
      GI
      does not refuse the approval in writing within [***] after receiving the final
      draft. 

    

    (c) Each
      sublicense granted under this Agreement shall be subject and subordinate to,
      and
      be consistent with, the terms and conditions of this Agreement.
      

    

    (d) Within
      30
      days after the signature of each sublicense granted under this
      Agreement, COMPANY
      shall provide GI with a copy
      of
      the signed sublicense agreement. 

     

    (e) Notwithstanding
      Subsections (a) through (d) above, if an insolvency event according to Section
      9.8 occurs, and this Agreement is not automatically terminated according to
      Section 9.8, each sublicense that COMPANY, or, as the case may be, the
      insolvency administrator intends to grant, shall be subject to the prior written
      approval of GI, which shall not unreasonably be withheld.

    

    2.3
      Retained
      Rights

     

    MPG
      (including each and all of its Max-Planck-Institutes and other scientific
      research organisations affiliated with MPG) retains the right to practice under
      the MPG Patent Rights for non-commercial scientific
      research, teaching, education, non-commercial collaboration (including
      scientific collaborations with and/or sponsored by industry) and
      publication purposes. 

    

    2.4
      No
      Additional Rights

     

    Nothing
      in this Agreement shall be construed to confer any rights upon COMPANY, by
      implication, estoppel, or otherwise, as to any intellectual property rights,
      including without limitation patents and patent applications, trademarks,
      copyrights and know-how, of MPG other than the MPG Patent Rights.

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.5
      Most
      Favored Licensee

     

    If,
      before or after the Effective Date, GI grants an Other Diagnostic License under
      substantially more favorable economic terms as a whole than those in this
      Agreement, then GI will notify COMPANY of such Other Diagnostic License granted.
      The notice will include all material terms and conditions of such Other
      Diagnostic License, including degree of co-exclusivity, duration, field,
      territory, audit rights, right to sublicense, right to administer, prosecute
      and
      enforce patents, and all license fees (e.g. initial payment, maintenance fees,
      royalty rates, sublicense fees). Whether the economic terms of the Other
      Diagnostic License are substantially more favorable or not shall be mutually
      determined by COMPANY and GI. In the event that COMPANY elects to take all
      fees
      and royalty rates, and all material terms and conditions of such Other
      Diagnostic License, all fees and royalty rates, and all material terms and
      conditions of such Other Diagnostic License shall apply as a whole to COMPANY
      upon the date COMPANY provides GI with its written notice of such
      election.

     

    COMPANY
      acknowledges and agrees that GI may provide a copy of this Agreement to any
      Other Diagnostic Licensee upon request of such Other Diagnostic
      Licensee.

     

    This
      Section 2.5 shall not apply to (i) the settlement of a lawsuit or other dispute
      between GI and a Third Party (including Other Diagnostic Licensees) with respect
      to past infringements of the MPG Patent Rights, and (ii) any license granted
      by
      GI to any scientific or other non-profit research organisations.

    

    

    ARTICLE
      3 - REPRESENTATIONS AND WARRANTIES

     

    3.1 GI
      and
      COMPANY each represent that, to the best of their knowledge as of the Effective
      Date, they have the legal right and authority to enter into this Agreement,
      and
      to perform all obligations hereunder. GI further represents that, to the best
      of
      its knowledge as of the Effective Date, the MPG Patent Rights listed in Annex
      1
      have been assigned to MPG by the inventors named therein, and GI is the
      exclusive licensor of the entire right, title and interest in and to the MPG
      Patent Rights, and GI has the full right to grant to COMPANY rights under the
      MPG Patent Rights as set forth in this Agreement. 

    

    3.2 COMPANY
      is informed of the MPG Patent Rights, and that it might need additional licenses
      from Third Parties to practice the rights granted herein. OTHER THAN AS
      EXPRESSLY PROVIDED HEREIN, GI AND MPG MAKE NO REPRESENTATIONS OR WARRANTIES
      OF
      ANY KIND CONCERNING THE MPG PATENT RIGHTS AND LICENSED PRODUCTS, EXPRESS OR
      IMPLIED, AND THE ABSENCE OF ANY LEGAL OR ACTUAL DEFECTS, WHETHER OR NOT
      DISCOVERABLE. Specifically, and not to limit the foregoing, GI and MPG make
      no
      warranty or representation (i) regarding the merchantability or fitness for
      a
      particular purpose of the MPG Patent Rights, (ii) regarding the patentability,
      validity or scope of the MPG Patent Rights, (iii) that the commercialisation
      of
      the MPG Patent Rights, or any Licensed Product or Licensed Service, will not
      infringe any patents or other intellectual property rights of MPG or of a Third
      Party, and (iv) that the commercialisation of the MPG Patent Rights, or any
      Licensed Product or Licensed Service, will not cause any damages of any kind
      to
      COMPANY or to a Third Party.

     

    3.3 TO
      THE
      EXTENT LEGALLY PERMISSIBLE, IN NO EVENT SHALL GI, MPG,
      THEIR
      TRUSTEES, DIRECTORS, OFFICERS AND EMPLOYEES BE LIABLE FOR INCIDENTAL OR
      CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGES OR INJURY TO
      PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER GI OR MPG SHALL BE ADVISED,
      SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY OF
      THE
      FOREGOING.

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      4 - COMPANY DILIGENCE OBLIGATIONS AND REPORTS

    

    4.1
      Development
      and Commercialization Responsibilities and Due Diligence

     

    (a) COMPANY
      shall have full responsibility
      to use
      commercially reasonable efforts
      to
      develop and commercialize, solely or jointly with its Sublicensees, Licensed
      Products and Licensed Services in the Field.

     

    (b) In
      particular, COMPANY
      shall use
      commercially reasonable efforts, and shall oblige its Sublicensees to use
      commercially reasonable efforts, to obtain
      all regulatory registrations or approvals necessary to manufacture, market
      and
      sell Licensed Products worldwide, and to manufacture,
      or have manufactured, Licensed Products, and to sell, or have sold, Licensed
      Products in the Field worldwide, following receipt, on a country-by-country
      basis, of all required regulatory registrations or approvals.

    

    4.2
      Development
      and Commercialisation Reports

     

    COMPANY
      shall furnish to GI, and shall oblige its Affiliates and Sublicensees to furnish
      to COMPANY for inclusion in its reports to GI, in writing semi-annually, within
      30 (thirty) days after the end of each calendar half year, with
      a
      development and commercialisation report, stating in reasonable detail the
      activities and the progress of its efforts (including the efforts of its
      Affiliates and Sublicensees) during the immediately preceding calendar
half
      year
      to
      develop and commercialize Licensed Products and Licensed Services, on a
      product-by-product and country-by-country basis. The report shall also contain
      a
      discussion of intended development and commercialisation efforts for the
      calendar half
      year
      in which
      the report is submitted. The first report shall be provided to GI for the second
      calendar half of 2006. 

     

    Any
      reports furnished to GI under this Section 4.2 shall constitute Confidential
      Information, and shall be treated by GI according to Article 8.

    

    4.3
      Compliance
      with Laws

     

    COMPANY
      shall use best efforts to comply with, and shall use best efforts to oblige
      its
      Affiliates and Sublicensees to comply with, all local, state, federal, and
      international laws and regulations relating to the development, manufacture,
      use
      and sale of Licensed Products, and the performance and sale of Licensed
      Services. 

    

    4.4
      Non-Use
      of Names

     

    Neither
      COMPANY nor its Affiliates and Sublicensees may use the name of “Max Planck
      Institute”, “Max Planck Society”, “Garching Innovation” or any variation,
      adaptation, or abbreviation thereof, or of any of its trustees, officers,
      faculty, students, employees, or agents, or any trademark owned by any of the
      aforementioned, in any promotional material or other public announcement or
      disclosure without the prior written consent of GI or, in the case of an
      individual, the consent of that individual. Provided, however, that this section
      4.4 shall not apply in the event that the use of the name of “Max Planck
      Institute”, “Max Planck Society”, or “Garching Innovation” is required by law or
      regulation (including without limitation by rules or regulations of any
      securities exchange), provided that prior to such disclosure, COMPANY promptly
      notifies GI of such requirement.

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.5
      Liability
      for Affiliates and Sublicensees

     

    If
      Affiliates or Sublicensees of COMPANY develop, manufacture, use and/or sell
      Licensed Products or Licensed Services, COMPANY warrants and is liable towards
      GI that its Affiliates and Sublicensees perform their rights and obligations
      in
      accordance with the terms and conditions of this Agreement, and COMPANY shall
      be
      responsible and liable for any acts and omissions, e.g. payments and reports,
      of
      its Affiliates and Sublicensees.

     

    The
      grant
      of any such sublicense hereunder will not relieve COMPANY of its obligations
      under this Agreement. In the event that COMPANY becomes aware of a material
      default by any Sublicensee, COMPANY shall inform GI and take commercially
      reasonable efforts to cause the Sublicensee to cure the default; in the event
      of
      non-cure, COMPANY will terminate the agreement with its Sublicense.

    

    4.6
      Effect
      of Failure

     

    In
      the
      event that COMPANY or any of its Affiliates and Sublicensees have failed to
      fulfil any of their obligations under this Article 4, then GI may treat such
      failure as a material breach of COMPANY in accordance with Section
      9.6.

    

    

    ARTICLE
      5 - FINANCIAL PROVISIONS

     

    5.1
      Initial
      Payment

     

    COMPANY
      shall pay to GI, within 30 days after the Effective Date, an initial payment
      of

    EUR
      [***]
      (Euro [***]).

    

    5.2
      Maintenance
      Fees

     

    COMPANY
      shall pay to GI license maintenance fees as set forth in the table below. The
      respective maintenance fees are due on each January 1st
      of the
      respective calendar year. 

    

    
      	
              Calendar
                Year

            	
              Maintenance
                Fee 

            
	 	 
	
              2007

            	
              EUR
                [***] 

            
	
              2008

            	
              EUR
                [***]

            
	
              2009

            	
              EUR
                [***]

            
	
              2010

            	
              EUR
                [***]

            
	
              2011
                and each calendar year thereafter

            	
              EUR
                [***]

            

    

     

    COMPANY’s
      actual earned royalties payable to GI under Section 5.3 for a certain calendar
      year may be credited against the respective maintenance fee for the same
      calendar year. 

    

    5.3
      Running
      Royalties 

     

    (a) COMPANY
      shall pay to GI for each Licensed Product and Licensed Service running royalties
      on Net Sales of

     

    
      	(i)  	
              [***]%
                (six percent) in the event of a sale by COMPANY (or its Affiliates,
                Sublicensees and Sales Partners) to end users,
                and

            

    

    
      	 	 

    

    
      	(ii)  	
              [***]%
                (twelve percent) in the event of a sale by COMPANY (or its Affiliates,
                Sublicensees and Sales Partners) to distributors (that are not Sales
                Partners)

            

    

     

    (b) In
      the
      event of any sale of Licensed Products for non-cash consideration (including,
      without limitation, devices, services, licenses or any other use rights, shares,
      options, warrants or any other kind of securities), Net
      Sales
      and the resulting running royalties shall be calculated on the fair market
      value
      of the consideration received. 

    

    5.4
      Reduction
      of Running Royalties 

     

    a)
      Third
      Party Licenses

     

    If
      COMPANY is a party to a license agreement with any Third Party, which license
      is
      employed in connection with the MPG Patent Rights for the manufacture, use
      and/or sale of a Licensed Products, or the performance and/or sale of a Licensed
      Services, the running royalties set forth in Section 5.3 (a) will be reduced,
      on
      a country-by-country and product-by-product basis, from the date running
      royalties have to be actually paid to such Third Party, by up to [***]% of
      any
      running royalty owed to such Third Party for the manufacture, use or sale of
      a
      Licensed Product; provided, however, that the running royalties due to GI will
      not be reduced to less than [***]% of the royalty rate set forth in Section
      5.3
      (a), and provided further that the (initial) royalty owed to the Third Party
      will also be reduced on a pro-rata basis. 

    In
      no
      event shall the royalty rate due to GI according to Section 5.3 (a) be reduced
      by the application of this Section 5.4 (a) to less than [***]% (three percent)
      in the event Section 5.3 (a) (i) applies, or [***]% (six percent) in the event
      Section 5.3 (a) (ii) applies.

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)
      Combination
      Product Minimum Royalty Floor

     

    In
      the
      event that Licensed Products are sold as Combination Products, the royalty
      rate
      stated in Section 5.3 (a) on Net Sales of such Combination Product (without
      taking into account the determination and allocation of Net Sales of Licensed
      Products contained in Combination Products) shall in no event be reduced (i)
      by
      the application of the formula contained in Section 1.14 (f), or (ii) by the
      application of the formula contained in Section 1.14 (f) together with the
      reduction mechanism set forth in Section 5.4 (a) above, to less than a minimum
      royalty rate of of Net Sales of any such Combination Product (without taking
      into account the determination and allocation of Net Sales of Licensed Products
      contained in Combination Products) of [***]% (two percent) in the event Section
      5.3 (a) (i) applies, or [***]% (four percent) in the event Section 5.3 (a)
      (ii)
      applies.

    

    5.5
      Sublicense
      Revenues

     

    (a)
      Sublicense
      Consideration

     

    In
      the
      event that COMPANY grants a sublicense to a Third Party pursuant to Section
      2.2,
      COMPANY shall pay to GI [***]% (twenty percent) of all Sublicense Consideration
      received, due within [***] after the respective receipt.

     

    (b) Non-cash
      Consideration

     

    If
      COMPANY receives any non-cash Sublicense Consideration, COMPANY shall pay GI,
      at
      GI’s election, either (i) a [***] the Sublicense Consideration, or (ii) the
      [***] the Sublicense Consideration.

    

    (c)
      Relative
      Value of Pooled Technologies

     

    As
      COMPANY may only grant sublicenses to a Third Party that includes a license
      to
      substantial intellectual property rights Controlled by COMPANY in the field
      of
      "microRNAs", the percentage of the Sublicense Consideration due to GI according
      to Subsection (a) above shall be based on [***]. 

     

    At
      least
      30 days prior to the intended signature of any sublicense agreement, COMPANY
      shall suggest to GI, together with the request for approving the intended
      sublicense, the MPG Patent Rights Value based on a good faith fair market value
      determination, with any information reasonably necessary or useful for GI to
      evaluate such suggestion. If, within 30 days after receipt of the information,
      GI objects for cause to the suggested MPG Patent Rights Value, Sec. 10.3
      applies. 

    

    5.6
      Fair
      Market Value Determination

    In
      the
      event that, according to this Agreement, a "fair market value" has to be
      determined, the Party obliged to suggest such fair market value shall provide
      the other Party in due time with a good faith determination of the fair market
      value, together with any information necessary or useful to support such
      determination. The other Party shall have the right to provide the suggesting
      Party in due time with a counter-determination of the fair market value, which
      shall include any information necessary or useful to support such
      counter-determination. If the Parties are unable to agree on a fair market
      value
      determination within 30 days after receipt of such counter-determination,
      Section 10.3 applies.

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.7
      Reports

     

    Commencing
      with the first commercial sale of a Licensed Product or a Licensed Service,
      within
      30
      (thirty) days of the end of each calendar half year, COMPANY shall deliver
      a
      detailed report to GI for the immediately preceding calendar half year showing
      at least, on a product-by-product and country-by-country basis, (i) the kind
      and
      number of Licensed Products and Licensed Services sold by COMPANY, Affiliates,
      Sublicensees and Sales Partner, (ii) the gross price charged, (iii) the
      calculation of Net Sales, and (iv) the resulting running royalties due to GI
      according to those figures. If no running royalties are due to GI, the report
      shall so state.

    

    5.8
      Payments

    

    (a)
      Accounting
      and Payments

     

    Running
      royalties shall be payable for each calendar half year, and shall be due to
      GI
      within 30 (thirty) days of the end of each calendar half year.

    

    (b)
      Method
      of Payment

     

    All
      payments under this Agreement shall be made to “Garching Innovation GmbH” to the
      following account:  

    [***] [***] [***] [***] [***] [***]

    

    Each
      payment shall reference this Agreement and the obligation under this Agreement
      that the payment satisfies.

    

    (c)
      Payments
      in Euro

     

    Unless
      otherwise expressly stated in this Agreement, all payments due under this
      Agreement shall be payable in Euro
      and,
      if
      legally required, shall be paid with the additional value added tax. Conversion
      of foreign currency to Euro shall be made at the official conversion rate
      existing in Germany (as reported in the Wall
      Street Journal)
      on the
      last working day of the relevant calendar half year. Such payments shall be
      without deduction of exchange, collection, or other charges, except for
      deduction of withholding or similar taxes. The Parties shall use all reasonable
      and legal efforts to reduce tax withholding on payments made to GI hereunder.
      Notwithstanding such efforts, if COMPANY concludes that tax withholdings under
      the laws of any country are required with respect to payments to GI, COMPANY
      shall withhold the required amount and pay it to the appropriate governmental
      authority. In such a case, COMPANY will promptly provide GI with original
      receipts or other evidence reasonably desirable and sufficient to allow GI
      to
      document such tax withholdings adequately for purposes of claiming foreign
      tax
      credits and similar benefits.

    

    (d)
      Late
      Payments

     

    Any
      payments that are not paid on or before the date such payments are due under
      this Agreement shall bear interest on arrears at
      [***]%
      ([***] percent) per year. 

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.9
      Bookkeeping
      and Auditing

     

    COMPANY
      is obliged to keep, and shall oblige its Affiliates and Sublicensees and Sales
      Partners to keep, complete and accurate books on any reports and payments due
      to
      GI under this Agreement, which books shall contain sufficient information to
      permit GI to confirm the accuracy of any reports and payments made to GI. GI
      is
      authorized to check the books of COMPANY by an independent certified public
      accountant, and, upon GI’s request, COMPANY, or agents appointed by GI for
      COMPANY, shall check the books of its Affiliates and Sublicensees and Sales
      Partners for GI, once a year. The charges for such a check shall be borne by
      GI.
In
      the
      event that such check reveals an underpayment in excess of [***]% ([***]
      percent), COMPANY shall bear the full cost of such check and shall remit any
      amounts due to GI within thirty days of receiving notice thereof from GI,
      together with interest calculated in the manner provided in Section 5.8 (d).
      Any
      information acquired by the auditor may only be used to confirm whether or
      not
      COMPANY (or its Affiliates, Sublicensees and Sales Partners) is in compliance
      with the obligations set forth in this Agreement.

    The
      right
      of auditing by GI under this Section shall expire [***]
      after each report or payment has been made. Sublicenses granted by COMPANY
      shall
      provide that COMPANY shall have the right to check the books of its Sublicensees
      according to this Section 5.9. The same shall apply in respect of Sales
      Partners.

    

    5.10
      No
      Refund

     

    All
      payments made by COMPANY (or, as the case may be, by Affiliates and Sublicensees
      and Sales Partners) under this Agreement are non-refundable and, except as
      set
      forth in Section 5.2, non-creditable against each other. This Section 5.10
      shall
      apply, without limitation, in the event this Agreement is terminated prematurely
      in accordance with Article 9.

    

    ARTICLE
      6 - PATENT PROSECUTION
      AND INFRINGEMENT

    

    6.1
      Responsibility
      for MPG Patent Rights

     

    (a) GI
      shall
      be responsible, in its sole discretion, to apply for, seek issuance of, and
      maintain the MPG Patent Rights during the Term. GI shall (i) keep COMPANY
      reasonably and timely informed as to the filing, prosecution, and maintenance
      of
      the MPG Patent Rights, (ii) furnish COMPANY copies of documents relevant to
      any
      such filing, prosecution, and maintenance, (iii) allow COMPANY reasonable
      opportunity to timely comment and advise on patent attorneys to be used and
      on
      documents to be filed with any patent office which would affect the MPG Patent
      Rights in the Field, and (iv) give good faith consideration to the comments
      and
      advice of COMPANY.

     

     

    (b) GI
      is
      obliged, on a country-by-country basis, to file, prosecute and maintain the
      MPG
      Patent Rights during the Term if and to the extent each and all of COMPANY,
      the
      Other Diagnostic Licensees and the Therapeutic Licensees pay all their
      respective patent cost shares. In the event that one or more, but not all of
      COMPANY, the Other Diagnostic Licensees and the Therapeutic Licensees are
      willing to pay all their respective patent cost shares, the party or parties
      that intend to file, prosecute and maintain the respective patent application
      or
      patent within MPG Patent Rights are obliged to assume, on a pro-rata basis,
      the
      patent cost shares of the party or parties that are not willing to to file,
      prosecute and maintain the respective patent application or patent within MPG
      Patent Rights.

    

    (c) GI,
      COMPANY, and the Other Diagnostic Licensees shall cooperate in good faith with
      each other, and shall use reasonable efforts to agree upon a joint strategy
      relating to the further filing, prosecution and maintenance of the MPG Patent
      Rights. GI shall use reasonable efforts to induce the Therapeutic
      Licensees to participate in such joint strategy.

     

    6.2
      Patent
      Costs

     

    COMPANY
      shall pay [***]% ([***] percent) of all fees and costs, including attorneys
      fees, relating to the filing, prosecution, and maintenance of the MPG Patent
      Rights, which incur during the Term in accordance with Section 6.1.

    GI
      will
      decide, in its sole discretion, if the fees and costs due pursuant to this
      Section 6.2 shall be paid directly by COMPANY to the creditor, or if COMPANY
      shall reimburse GI for all amounts due pursuant to this Section 6.2 within
      30
      (thirty) days after receiving GI's respective invoice.

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.3
      Abandonment of MPG Patent Rights 

     

    In
      the
      event that COMPANY wishes not to file or wishes to abandon (e.g. by non-payment
      of fees) any of the MPG Patent Rights, COMPANY shall notify GI thereof in
      writing in due time, at least 3 months prior to any deadline. GI shall have
      the
      right, but not the obligation, to file or to continue payment for such MPG
      Patent Rights in its own discretion and at its own expense. In any event, such
      MPG Patent Rights shall no longer be covered by this Agreement after three
      months from
      the
      date COMPANY informs GI of its non-filing or its abandonment, and COMPANY shall
      be obliged to pay [***]% of all fees and costs that incur during such
      3-months-period.

    

    6.4
      Infringement
      of MPG Patent Rights by Third Party and Third Party Objections

     

    COMPANY
      shall promptly inform GI in writing if it becomes aware of any suspected or
      actual infringement of the MPG Patent Rights by any Third Party, and of any
      available evidence thereof. The same shall apply in the case of an opposition,
      revocation action or any other Third Party objection against the MPG Patent
      Rights.

     

    GI
      shall
      have the right, but not the obligation, to prosecute (whether judicially or
      extra-judicially) in its own discretion and at its own expense, any and all
      infringements of the MPG Patent Rights, and to defend the MPG Patent Rights
      against any Third Party objection. 

     

    GI,
      COMPANY, and the Other Diagnostic Licensees shall cooperate in good faith,
      if
      necessary and appropriate, with each other, and shall use reasonable efforts
      to
      agree upon a joint strategy relating to the prosecution of any infringement
      of
      the MPG Patent Rights by any Third Party, and the defense of the MPG Patent
      Rights against any Third Party objection. GI shall use reasonable efforts to
      induce the Therapeutic
      Licensees to participate in such joint strategy.

    

    ARTICLE
      7 - INDEMNIFICATION AND INSURANCE

    

    7.1
      Indemnification

     

    COMPANY
      shall indemnify, defend, and hold harmless GI, MPG and their trustees, officers,
      faculty, students, employees, and agents and their respective successors, heirs
      and assigns (collectively, the “Indemnitees”), against any and all claims,
      suits, actions (including without limitation actions in the form of tort,
      warranty, or strict liability and regardless of whether such action has any
      factual basis), demands, judgments, liabilities, losses, damages, costs, fees
      or
      expenses (collectively, the "Claims") incurred by or imposed upon any of the
      Indemnitees by
      a
      Third Party, to
      the
      extent resulting
      from or arising out of (i) any use of the MPG Patent Rights by COMPANY, its
      Affiliates, Sublicensees and Sales Partners, or (ii) any product, process,
      or
      service that is developed, made, used, sold, or performed by COMPANY, its
      Affiliates, Sublicensees or Sales Partners pursuant to any right or license
      granted under this Agreement, or (iii) any Third Party use of any products,
      processes or services sold by COMPANY, its Affiliates, Sublicensees or Sales
      Partners to such Third Party.

    

    7.2
      Procedures

     

    The
      Indemnitees agree to provide COMPANY with written notice of any Claims for
      which
      indemnification is sought under this Agreement within 30 days after the
      Indemnitees have knowledge of such Claims. 

     

    COMPANY
      agrees, at its own expense, to provide attorneys reasonably acceptable to GI
      to
      defend the Indemnitees against any such Claims; provided, however, that any
      Indemnitee shall have the right to retain its own counsel, at its
      own
      expense,
      if
      representation of such Indemnitee by the counsel retained by COMPANY would
      be
      inappropriate because of actual or potential differences in the interests of
      such Indemnitee and any other party represented by such counsel.

     

    The
      Indemnitees shall (i) permit COMPANY to assume full responsibility to
      investigate, prepare for and defend against any such Claims (including all
      decisions relative to litigation, appeal, and settlement), and (ii) assist
      COMPANY at the expense of COMPANY in the investigation, preparation and defense
      of any such Claims, and (iii) not compromise or settle such Claims without
      the
      prior consent of COMPANY.

     

    COMPANY
      shall keep GI informed of the progress in the defense and disposition of such
      Claims, and COMPANY shall consult with GI with regard to any proposed
      settlement. COMPANY shall not compromise or settle such Claims without the
      prior
      written consent of GI.

    

    7.3
      Insurance

     

    COMPANY
      shall obtain and carry in full force and effect commercial general liability
      insurance, including product liability and errors and omissions insurance,
      which
      shall protect COMPANY and the Indemnitees with respect to events covered by
      Section 7.1 above. The
      limit of
      insurance shall not be less than [***] USD ([***] US Dollar) per incident.
      COMPANY shall provide GI with certificates of insurance evidencing compliance
      with this Section 7.3.

    

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      8 -
      CONFIDENTIALITY

    

    8.1
      Confidentiality
      Obligation 

     

    This
      Agreement and any Confidential Information disclosed to a Party under this
      Agreement by the other Party shall be treated confidential by the receiving
      Party during the Term and for 5 (five) years thereafter. The receiving Party
      shall not use the Confidential Information for any purposes other than those
      necessary to directly further the purpose of this Agreement. 

    

    8.2
      Permitted
      Disclosures

     

    A
      Party
      may disclose Confidential Information received from a disclosing Party under
      this Agreement:

     

    
      	(a)  	
              to
                Regulatory Authorities in connection with regulatory filings, provided
                that such disclosures may be made only to the extent reasonably necessary
                to make such filings;

            

    

    
      	(b)  	
              to
                Sublicensees, agents, consultants, attorneys and/or other Third Parties
                for the development, manufacturing and/or marketing of Licensed Products
                (or for such parties to determine their interest in performing such
                activities) in accordance with this Agreement on the condition that
                such
                Sublicensees and Third Parties agree to be bound by the confidentiality
                obligations contained in this
                Agreement;

            

    

    
      	(c)  	
              if
                such disclosure is required by law or regulation (including without
                limitation by rules or regulations of any securities exchange), provided
                that prior to such disclosure, the obligated Party promptly notifies
                the
                disclosing Party of such requirement, and provided further that the
                obligated Party will furnish only that portion of the disclosing
                Party’s
                Confidential Information that it is legally required to
                furnish.

            

    

     

    Regarding
      the disclosure of this Agreement, (i) COMPANY may disclose a mutually agreed
      upon redacted copy of this Agreement on a confidential basis to prospective
      investors and collaborators,
      and
      (ii)
      GI may disclose a copy of this Agreement on a confidential basis to MPG and
      to
      the Other Co-Exclusive Licensees as set forth in Sec. 2.5.

    

    ARTICLE
      9 - TERM AND TERMINATION

    

    9.1
      Term

     

    This
      Agreement shall come into effect on the Effective Date. It shall remain in
      effect until the expiration or abandonment of all issued patents and filed
      patent applications within the MPG Patent Rights, unless it is earlier
      terminated in accordance with the provisions of this Agreement.

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.2
      Voluntary
      Termination by COMPANY

     

    COMPANY
      shall have the right to terminate this Agreement, for any reason, (i) upon
      at
      least 3 (three) months prior written notice to GI, such notice to state the
      date
      at least 3 (three) months in the future upon which termination is to be
      effective, and (ii) upon payment of all amounts due to GI accrued until such
      termination effective
      date.

    

    9.3
      Cessation
      of Business

     

    If
      COMPANY ceases to carry on its business related to this Agreement, COMPANY
      has
      to inform GI thereof immediately. COMPANY and GI shall each have the right
      to
      terminate this Agreement upon three months prior written notice to each
      other.

    

    9.4
      Change
      of Ownership

     

    In
      the
      event that at least [***]% ([***] percent) of issued and outstanding securities
      of COMPANY are assigned or transferred to a Third Party, COMPANY shall provide
      GI, upon GI’s request, with written reports in reasonable detail on the actual
      and intended future activities of COMPANY to develop and commercialize
      Licensed
      Products. If COMPANY does not maintain a program to develop and commercialize
      Licensed Products that is substantially similar or greater in scope to the
      program of COMPANY prior to the change of ownership, then GI has the right
      to
      limit the scope and exclusivity of the license granted under this Agreement
      to
      such Licensed Products actually covered by the program of COMPANY. COMPANY
      shall
      inform GI promptly
      of the
      implementation of any such change of ownership.

    

    9.5
      Attack
      on MPG Patent Rights

     

    GI
      shall
      have the right to terminate this Agreement upon 30 days prior written notice
      to
      COMPANY, if COMPANY attacks (e.g. by opposition, revocation or nullity actions),
      or have attacked or supports an attack through a Third Party, the validity
      of
      any of the MPG Patent Rights. For the avoidance of doubt, participation of
      COMPANY in an interference proceeding between the MPG Patent Rights and patents
      owned by COMPANY shall not be deemed as an attack of MPG Patent Rights under
      this Section 9.5; provided that such interference proceeding is initiated by
      the
      patent office, and not by, or induced or triggered by, COMPANY. 

    

    9.6
      Termination
      for Default

     

    In
      the
      event COMPANY fails to pay any amounts due and payable to GI hereunder, and
      fails to make such payments within 30 (thirty) days after receiving written
      notice of such failure, GI may terminate this Agreement immediately upon written
      notice to COMPANY. Notwithstanding the foregoing, in the event COMPANY commits
      a
      material breach of its obligations under this Agreement, and fails to cure
      that
      breach within 60 (sixty) days after receiving written notice thereof, GI may
      terminate this Agreement immediately upon written notice to
      COMPANY.

     

    9.7
      Effect
      of Termination

     

    The
      following provisions shall survive the expiration or termination of this
      Agreement: Articles 1, 3, 5.7, 5.8, 5.9, 5.10, 7, 8, 10 and Section 9.7. In
      no
      event shall termination of this Agreement release COMPANY (including its
      Affiliates and Sublicensees) from the obligation to pay any amounts that became
      due on or before the effective date of termination.

     

    In
      the
      event that any license granted by GI to COMPANY under this Agreement is
      terminated, any sublicense granted by COMPANY to a Sublicensee prior to
      termination of this Agreement shall remain in full force and effect, provided
      that (i)
      the
      Sublicensee is not then in breach of its sublicense agreement, and
      (ii)
      the
      Sublicensee agrees in writing, within thirty (30) days after the effective
      date
      of termination, to be bound to GI as licensor under the terms and conditions
      of
      the sublicense agreement, provided that GI shall have no other obligation than
      to leave the sublicense granted by COMPANY in place.

    

    9.8
      Insolvency 

     

    This
      Agreement shall terminate automatically upon (i) the filing or institution
      of
      bankruptcy, reorganization, liquidation, insolvency or receivership proceedings
      by or against COMPANY, or (ii) the assignment of all or a substantial portion
      of
      the assets of COMPANY for the benefit of creditors. 

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      10 - MISCELLANEOUS

    

    10.1
      Notice

     

    Any
      notices required or permitted under this Agreement shall be in English and
      in
      writing, shall specifically refer to this Agreement, and shall be sent to the
      following addresses or facsimile numbers of the Parties:

    

    
      	
              If
                to GI:

            	
              Garching
                Innovation GmbH

            
	 	
              Marstallstrasse
                8

            
	 	
              D-80539
                Muenchen/Germany

            
	 	
              Fax:
                +49/89/290919-99

            
	 	 
	
              If
                to COMPANY:

            	
              Rosetta
                Genomics Ltd.

            
	 	
              10
                Plaut Street

            
	 	
              Rehovot
                76706, Israel

            
	 	
              Fax
                +97289484766

            

    

    

    A
      Party
      may change its contact information immediately upon written notice to the other
      Party in the manner provided in this Section.

    

    10.2
      Governing
      Law

     

    This
      Agreement and all disputes arising out of or related to this Agreement, or
      the
      performance, enforcement, breach or termination hereof, and any remedies
      relating thereto, shall be construed, governed, interpreted and applied in
      accordance with the laws of the Federal Republic of Germany, except that
      questions affecting the construction and effect of any patent shall be
      determined by the law of the country in which the patent shall have been
      granted.

    

    10.3
      Dispute
      Resolution

     

    (a) The
      Parties recognize that disputes may from time to time arise between the Parties
      during the Term. In the event of such a dispute, a Party, by written notice
      to
      the other Party, may have such dispute referred to the Parties’ respective
      officers or directors designated below or their successors, for attempted
      resolution by good faith negotiations within 30 days after such notice is
      received. Said designated officers or directors are as follows:

     

    
      	
              For
                COMPANY:

            	
              Chief
                Executive Officer

            	 
	
              For
                GI:

            	
              Managing
                Director

            	 

    

    

    (b) In
      the
      event the designated officers or directors are not able to resolve such dispute
      during such 30-day period, then the affected Party may initiate arbitration
      under the procedural arbitration rules of the American Arbitration
      Association
      in
      accordance with its International Arbitration Rules.
      The
      venue for the arbitration procedure shall be London, United Kingdom, the
      language shall be English, German substantive law shall be applied, and the
      panel shall consist of three arbitrators appointed in accordance with such
      arbitration rules. The award of the arbitrators shall be the sole and exclusive
      remedy between the affected Parties regarding any such dispute. An award
      rendered in connection with an arbitration pursuant to this Section 10.3 shall
      be final and binding upon the affected Parties.

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) In
      the
      event of a dispute relating to  

     

    
      	(i)   
               	
              whether
                a Licensed Product would, absent the license granted hereunder, infringe
                the MPG Patent Rights, or

            

    

    
      	(ii)  
               	
              whether
                a Licensed Product is sold in a Combination Product form,
                or

            

    

    
      	(iii) 
               	
              the
                determination of a MPG Patent Rights Value in the event of sublicenses
                for
                pooled technologies, or

            

    

    
      	(iv) 
               	
              the
                determination of a fair market
                value,

            

    

     

    the
      disputing Party shall, in connection with its attempt according to Subsection
      (a) above to resolve such disputes, include or involve experienced Third Parties
      appointed by them (e.g. certified public accountants, patent attorneys, lawyers)
      in their good faith negotiations,
      and in
      rendering judgment, the arbitrators will be instructed by the Parties that
      they
      can only select from between the proposals for resolution of the relevant issue
      presented by each Party, and not any other proposal.

    

    (d) Nothing
      in this Section 10.3 shall be construed as limiting in any way the right of
      a
      Party to seek an injunction or interlocutory relief with respect to any actual
      or threatened breach of this Agreement.

    

    10.4
      Assignment
      and Transfer 

     

    This
      Agreement is personal to COMPANY, and neither this Agreement nor any rights
      or
      obligations may be assigned or otherwise transferred by COMPANY to a Third
      Party
      without the prior written consent of GI. Notwithstanding the foregoing, COMPANY
      may assign this Agreement to a Third Party in
      connection with the merger, consolidation, or sale of all or substantially
      all
      of its assets or that
      portion of their business to which this Agreement relates; provided, however,
      that this Agreement shall immediately terminate if the proposed Third Party
      assignee fails
      to
      agree in writing to be bound by the terms and conditions of this Agreement
      on or
      before the effective date of assignment. After the effective date of assignment,
      the Third
      Party assignee shall provide GI, upon GI’s request, with written reports in
      reasonable detail on the actual and intended future activities of the
Third
      Party assignee to develop and
      commercialize Licensed Products. If the Third Party assignee does not maintain
      a
      program to develop and commercialize Licensed Products that is substantially
      similar or greater in scope to the program of COMPANY after the effective date
      of assignment, then GI has the right to limit the scope of the exclusive license
      granted under this Agreement to such Licensed Products actually covered by
      the
      program of the Third Party assignee.

    

    10.5
      Amendment
      and Waiver

     

    This
      Agreement may be amended, supplemented, or otherwise modified only by means
      of a
      written instrument signed by all Parties. Any waiver of any rights or failure
      to
      act in a specific instance shall relate only to such instance and shall not
      be
      construed as an agreement to waive any rights or fail to act in any other
      instance, whether or not similar.

     

    10.6
      Severability

     

    Should
      one ore more of the provisions of this Agreement be held void, invalid or
      unenforceable under applicable law, the remaining provisions of this Agreement
      will not cease to be effective. The Parties shall negotiate in good faith to
      replace such void, invalid or unenforceable provision by a new provision which
      reflects, to the extent possible, the original intent of the
      Parties.

    

    10.7
      Headings

     

    All
      headings are for convenience only and shall not affect the meaning of any
      provision of this Agreement.

    

    10.8
      Entire
      Agreement

     

    This
      Agreement contains the entire understanding of the Parties with respect to
      the
      subject matter hereof, and any previous agreements and understandings, whether
      oral or written, made by the Parties on the same subject matter are expressly
      superseded by this Agreement. 

    

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.9
      Force
      Majeure

     

    Neither
      Party will be deemed to be in default of this Agreement for failure or delay
      of
      the performance of its obligations or attempts to cure any breach of this
      Agreement, when such failure or delay is caused by or results from causes beyond
      the reasonable control of or not reasonably avoidable by the affected Party,
      including, without limitation, embargoes, acts of war, strikes, lockouts or
      other labour disturbances. The affected Party will notify the other Party of
      such force majeure circumstances as soon as reasonably practical and will make
      every reasonable effort to mitigate the effects of such force majeure
      circumstances. In case of such a force majeure event, the time for performance
      or cure will be extended for the period equal to the duration of such force
      majeure event. Should the duration of the force majeure event exceed more than
      three (3) months, each party shall be entitled to terminate this Agreement
      upon
      three (3) months prior written notice.

    

    10.10
      Relationship
      of the Parties

     

    It
      is
      expressly agreed that GI and COMPANY will be independent contractors and that
      the relationship among the Parties will not constitute a partnership, joint
      venture or agency. 

    

    10.11
      Press
      release

     

    Each
      Party may make public announcements with respect to the execution, nature and
      general subject matter of this Agreement. The Party which intends to make such
      public announcement shall provide to the other Party a copy thereof as soon
      as
      reasonably practicable under the circumstances, but not less than one week,
      prior to its scheduled release, requesting the approval of the other Party,
      which shall not be unreasonably withheld.

    

    In
      witness whereof, the Parties have caused this Agreement to be executed by their
      duly authorized representatives.

    

    

    
      	
              Garching
                Innovation GmbH

            	
              Rosetta
                Genomics Ltd.

            
	 	 	 	 
	 	 	 	 
	
              By:

            	 	
              By:

            	 
	
              Name:

            	
              Dr.
                Jörn Erselius

            	
              Name:

            	
              Amir
                Avniel

            
	
              Title:

            	
              Managing
                Director

            	
              Title:

            	
              Chief
                Executive Officer

            
	 	 	 	 
	
              Date:

            	 	
              Date:

            	 

    

    

     

    
 

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Annex
      1

    MPG
      Patent Rights

    

    

    Patent
      applications filed by MPG entitled "Small expressed RNA molecules (MicroRNA
      molecules)":

    

    
      	·  	
              [***],

            

    

    
      	·  	
              [***],
                

            

    

    
      	·  	
              [***]
                and

            

    

    
      	·  	
              [***].

            

    

    

    

     

    
      
        Portions
          of this Exhibit were omitted and have been filed separately with the Secretary
          of the Commission pursuant to the Company’s application requesting confidential
          treatment under Rule 406 of the Securities Act.

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