Document:

CONFIDENTIAL

    

     

    Non-Exclusive
      License Agreement

    

    This
      agreement (the “Agreement”)
      is by
      and between Max-Planck-Innovation GmbH, a German corporation having a principal
      place of business at Marstallstr. 8, 80539 Muenchen, Germany (“MI”),
      and
Rosetta
      Genomics Ltd., an
      Israeli corporation having a principal place of business at 10
      Plaut
      Street, Science Park, Rehovot 76706, Israel (“COMPANY”).
      This
      Agreement will become effective on December 22, 2006 (the “Effective Date”).

    

    BACKGROUND

    

    Max-Planck-Gesellschaft
      zur Foerderung der Wissenschaften e.V. ("MPG"),
      a
      German non-profit research organisation, has rights to certain intellectual
      property developed by Dr. Thomas Tuschl during his employment with MPG relating
      to microRNA sequences (internal file No. GI 2916 ZJE). MPG has filed certain
      MPG
      Patent Rights (as later defined herein) relating to such microRNA sequences.
      MPG
      has authorized MI, its technology transfer agency, to act as its sole agent
      for
      patenting and licensing the MPG Patent Rights, and to sign this Agreement in
      MI's own name. 

    

    COMPANY
      desires to obtain a non-exclusive license under the MPG Patent Rights to
      manufacture and sell research products for research purposes to its customers,
      and to use such research products in COMPANY's services provided for its
      customers. Furthermore, COMPANY intends to grant sublicenses under the MPG
      Patent Rights to third parties, as part of COMPANY's licensing package relating
      to microRNA technology.

    

    In
      consideration of the mutual obligations contained in this Agreement, and
      intending to be legally bound, the parties agree as follows:

    

    
      	1.	
              LICENSE

            

    

    

    
      	1.1	
              Definitions.
                

            

    

     

    The
      term
“MPG
      Patent Rights”
means
      all patent rights filed by MPG represented by or issuing from: (a) national
      or
      regional patent applications claiming priority from and directed to the same
      subject matter as the patent applications listed in Exhibit A; (b) any
      continuation, divisional and re-issue applications of (a); and (c) any foreign
      counterparts and extensions of (a) or (b).

    

    The
      term
“Field
      Of Use”
means
      the sale and use of Licensed Products as research products for research
      purposes, including use of such products in the provision of research services
      to third parties. Specifically excluded from the Field of Use is any use for
      diagnostic or therapeutic purposes, whether said use is in vivo or in vitro,
      and
      any use in humans, for whatever purpose. Further,
      specifically excluded from the Field of Use is any sale and use of Licensed
      Products, or performance and sale of Licensed Services, that contain or use
      locked nucleic acids (LNAs).
      For the
      purpose of this definition, the term "use for diagnostic purposes" shall
      include, without limitation, (i) clinical research where the medical management
      of a human is involved; (ii) products or services that are designated and
      regulated by
      the
      FDA as in vitro diagnostic tests or analyte specific reagents, and (iii) human
      samples tracking, testing or quality controlling in a clinical laboratory,
      the
      results of which are sent to medical institutions or other laboratory labs,
      and
      are not used as part of research and development of products.

    

    The
      term
“Valid
      Claim”
shall
      mean a claim in an issued patent within the MPG Patent Rights (a) that has
      not
      lapsed, or (b) that has not been held to be invalid by a final judgment of
      a
      court of competent jurisdiction from which no appeal can be or is taken, or
      (c)
      that has not been abandoned.

     

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 1 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    The
      term
“Pending
      Claim”
shall
      mean a claim in a patent application within the MPG Patent Rights that has
      not
      been pending for more than 8 years after the Effective Date and that has not
      been (a) abandoned and not continued; or (b) finally rejected by an appropriate
      administrative agency or court of competent jurisdiction from which no appeal
      can be or is taken.

    

    The
      term
“Licensed
      Products”
means
      any product (i) that, or the manufacture, use or sale of which, in the absence
      of this Agreement, would infringe at least one Valid Claim or Pending Claim
      of
      the MPG Patent Rights, or (ii) that uses a process or machine covered by a
      Valid
      Claim or Pending Claim of the MPG Patent Rights.

    

    The
      term
“Licensed
      Services”
shall
      mean any service, the performance or sale of which (i) in the absence of this
      Agreement, would infringe at least one Valid Claim or Pending Claim of the
      MPG
      Patent Rights, or (ii) uses a Licensed Product or a process or machine covered
      by a Valid Claim or Pending Claim of MPG Patent Rights.

    

    The
      term
“Sale”
means
      any bona fide first commercial sale at arms length transaction between COMPANY
      (or its Sales Partners or Sublicensees) and an independent third party (end
      user
      or distributors that are not Sales Partners) for which consideration is received
      by COMPANY (or its Sales Partners or Sublicensees) for the sale, use, lease,
      transfer or other disposition of a Licensed Product or a Licensed Service,
      and
      a
      Sale is deemed completed at the time that COMPANY (or
      its
      Sales Partners or Sublicensees) sends
      its
      invoice for a Licensed Product or Licensed
      Service.
      

    

    The
      term
“Net
      Sales”
means
      the gross amounts invoiced by COMPANY (or its Sales Partners or Sublicensees)
      as
      consideration for, or fair market value attributable to, each Sale, less
      Qualifying Costs directly attributable to a Sale and actually borne by COMPANY
      (or its Sales Partners or Sublicensees). For purposes of determining Net Sales,
      the term “fair market value” means the cash consideration that COMPANY (or its
      Sales Partners or Sublicensees) would realize from an unrelated buyer in an
      arms
      length sale of an identical item sold in the same quantity and at the time
      and
      place of the transaction. Specifically, regarding Licensed Services, Net Sales
      shall mean any Licensed Products used in Licensed Services, where such Licensed
      Products should be valued at fair market value. Net Sales shall not include
      transfers or other distributions or dispositions of Products at no charge for
      academic research.
      For the
      avoidance of doubt, in the event of a Sale between COMPANY (or
      its
      Sales Partners or Sublicensees) and
      distributors (that are not Sales Partners), the
      amount invoiced by COMPANY (or its Sales Partners or Sublicensees) to such
      distributors upon Sale (and not the amount invoiced by such distributors to
      an
      independent third party upon further resale) shall be regarded as Net Sales
      of
      such Licensed
      Products
      or
      Licensed Services.

    

    The
      term
      "Sales
      Partners"
      means
      any third party authorized
      by COMPANY (or its Sublicensees) by any kind of agreement to market, promote,
      distribute or sell, or otherwise dispose of, Licensed Products
      or
      Licensed Services, if such Sales
      Partner does not purchase Licensed Products or Licensed Services from COMPANY
      (or its Sublicensees) in
      a Sale
      transaction, i.e. if the relation between COMPANY (or
      its
      Sublicensees) and
      the
      Sales Partner is not a pure seller-buyer relationship, e.g. if the agreement
      between COMPANY (or
      its
      Sublicensees) and
      the
      Sales Partner provides for an obligation to share costs or revenues, or a
      reporting obligation, or responsibility for sales and/or marketing efforts
      in a
      country.

    

    The
      term
      "Sublicensees"
      means
any
      third
      party
      that is
      granted a sublicense to the MPG Patent Rights by COMPANY in accordance with
      Section 1.3 below.

    

    The
      term
“Qualifying
      Costs”
means:
      (a) customary discounts in the trade for quantity purchased, prompt payment
      or
      wholesalers and distributors to the extent actually allowed and taken (b)
      recalls, credits or refunds for claims or returns that do not exceed the
      original invoice amount; (c) to the extent separately stated on the document
      of
      sale, prepaid outbound transportation expenses and transportation insurance
      premiums; (d) to the extent separately stated on the document of sale, custom
      duties, sales and use taxes and other fees imposed by a governmental agency;
      and
      (e) amounts that, despite best efforts of COMPANY, are finally and actually
      uncollectible.

    

    The
      term
”6-months
      period”
means
      each six-months period beginning on January 1st,
      and
      July 1st.
      

     

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 2 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

    

    
      	1.2	
              License
                Grant.
                

            

    

    

    MI
      grants
      to COMPANY, and COMPANY hereby accepts, a worldwide non-exclusive license under
      the MPG Patent Rights to make, have made, use, import, sell, have sold and
      offer
      for sale Licensed Products and Licensed Services in the Field of Use during
      the
      Term (as defined in Section 5.1). 

    

    
      	1.3	
              Sublicenses

            

    

    

    COMPANY
      shall have the right to grant sublicenses to the rights granted to it under
      Section 1.2 to
      third
      parties only if the intended sublicense also includes a license to substantial
      intellectual property rights (e.g. patents that cover other microRNAs) owned
      by
      COMPANY in the field of "microRNAs".

    

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

    

    Within
      [***] after the signature of each sublicense granted under this
      Agreement, COMPANY
      shall provide MI with a copy
      of
      the signed sublicense agreement.

    

    
      	1.4	
              Most
                Favored Licensee

            

    

    

    If,
      before or after the Effective Date, MI grants other licenses under the MPG
      Patents to third parties in the Field of Use (as applicable, the “Other Research
      Licenses” or the "Other Research Licensees") under substantially more favorable
      economic terms as a whole than those in this Agreement, then MI will notify
      COMPANY of such Other Research Licenses granted. The notice will include all
      material terms and conditions of such Other Research Licenses, including
      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 Research Licenses are substantially more favorable or not
      shall be mutually determined by COMPANY and MI. In the event that COMPANY elects
      to take all fees and royalty rates, and all material terms and conditions of
      such Other Research License, all fees and royalty rates, and all material terms
      and conditions of such Other Research License shall apply as a whole to COMPANY
      upon the date COMPANY provides MI with its written notice of such
      election.

    

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

    

    This
      Section 1.4 shall not apply to (i) the settlement of a lawsuit or other dispute
      between MI and a third party (including Other Research Licensees) with respect
      to past infringements of the MPG Patent Rights, and (ii) any license granted
      by
      MI to any scientific or other non-profit research organizations.

    

    
      	2	
              FEES
                AND ROYALTIES

            

    

    

    
      	2.1	
              License
                Initiation Fee.
                

            

    

    

    COMPANY
      shall pay to MI, within 30 days after the Effective Date, a license
      initiation fee of Twenty-Thousand Euro (EUR 20,000). 

    

    
      	2.2	
              Annual
                Maintenance Fees.
                

            

    

    

    COMPANY
      shall pay to MI, commencing on January 1st,
      2007,
      and on each Jannuary 1st
      thereafter, an annual maintenance fee of [***] Euro (EUR [***]). COMPANY’s
      actual earned royalties payable to MI under Section 2.3 may be credited against
      this annual maintenance fee for the same calendar year. In the event of
      expiration or termination of this Agreement, COMPANY shall pay to MI the balance
      due to MI of the pro-rata
      (determined
      monthly) share of such annual maintenance fee for the calendar year in which
      this Agreement expires or is terminated.

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 3 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    
      	2.3	
              Earned
                Royalties.
                

            

    

    

    COMPANY
      shall pay to MI the following royalties on Net Sales of Licensed Products and
      Licensed Services:

    

    (a)
      in
      the event of a Sale by COMPANY (or its Sales Partners) to end users:

    [***]%
      ([***] percent); and

    

    b)
      in the
      event of a Sale by COMPANY (or its Sales Partners) to distributors (that are
      not
Sales
      Partners): [***]% ([***] percent). 

    

    There
      shall be no royalties or imputed revenues from promotional free samples, free
      goods, or other marketing programs whereby Licensed Products and/or Licensed
      Services are provided free of charge to induce sales.

    

    In
      the
      event of an overpayment of earned royalties, COMPANY may credit the overpaid
      amount with future earned royalties.

    

    
      	2.4	
              Sublicense
                Revenues; Management Fee

            

    

    

    If
      COMPANY grants a sublicense, the financial terms of Sections 2.1, 2.2 and 2.3
      will be reached through to the Sublicensee, which means that:

    

    (i)
      COMPANY shall pay to MI, within [***] days after the effective date of the
      sublicense agreement, a license initiation fee of [***] Euro (EUR [***]),
      and

    

    (ii)
      COMPANY shall pay to MI, commencing on the first January 1st
      following the effective date of the sublicense agreement, and on each Jannuary
      1st
      thereafter, an annual maintenance fee of [***] Euro (EUR [***]). Sublicensee’s
      actual earned royalties payable by COMPANY to MI under subsection (iii) below
      may be credited against this annual maintenance fee for the same calendar year,
      and

    

    (iii)
      COMPANY shall pay to MI the following royalties on Net Sales of Licensed
      Products and Licensed Services:

    

    (a)
      in
      the event of a Sale by Sublicensee (or its Sales Partners) to end users:
[***]%
      ([***] percent),; and

    

    (b)
      in
      the event of a Sale by Sublicensee (or its Sales Partners) to distributors
      (that
      are
      not Sales Partners): [***]% ([***] percent). 

    

    If
      the
      Sublicensee sells Combination Products (as defined in Section 2.6), then Section
      2.6 below shall apply accordingly.

    

    COMPANY
      may deduct, prior to the remittance of royalties due and payable to MI under
      this subsection (iii), a service fee of [***]% ([***] percent) from such
      royalties.

    

    
      	2.5	
              Stacking
                Protection.
                

            

    

    

    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 Product, or the performance and/or sale of a Licensed
      Service, COMPANY may reduce, on a product-by-product, service-by-service and
      country-by-country basis, the royalty rate in Section 2.3 by [***]% for each
      [***]% of royalty rate actually paid to such third party; provided, however,
      that in no event will the royalty rate otherwise due to MI be reduced by the
      application of this Section 2.5 to less than [***]%. If such other license
      includes a royalty stacking provision of like intent to this Section 2.5, the
      royalty rate reduction provided for in this Section 2.5 will be calculated
      on a
      pro-rata basis.

    

    
      	2.6	
              Payments
                Related to Combination Products.
                

            

    

    

    In
      the
      event that a Licensed Product is sold by COMPANY in a combination product form
      with one or more other biologically active product components (validated other
      microRNAs) which are not Licensed Products (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 the Royalty Base Factor. The term “Royalty
      Base Factor”
means,
      in any given Combination Product, [***].

    

    
      	2.7	
              Minimum
                Royalty Floors

            

    

    

    MI
      and
      COMPANY agree that the royalty rate due to MI shall not be reduced -by the
      application of Section 2.6 or by the application of Section 2.6 together with
      Section 2.5- to less than a minimum royalty rate of [***]% of the Net Sales
      of
      any Combination Product. 

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 4 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    In
      the
      event that after the Effective Date, COMPANY becomes a party to license
      agreements with one or more third parties, which licenses contribute certain
      biologically validated microRNAs to the Combination Product, and such third
      party license agreements also include minimum royalty floors of [***]% or more
      for combination products, and the application of the [***]% minimum royalty
      floor owed to MI, together with the minimum royalty floors of [***]% or more
      owed to the third party licensors, would exeed an aggregate minimum royalty
      floor of [***]%
      for a
      certain Combination Product,
      then
      the minimum royalty rate payable to MI for such Combination Product will be
      reduced pro rata, together with all third party minimum royalty rates of [***]%
      or more, in order to reduce the maximum aggregate minimum royalty rate to [***]%
      for that certain Combination Product. No minimum royalty reduction for a certain
      Combination Product will apply unless all third party licensors for that certain
      Combination Product agree to their respective pro rata minimum royalty
      reductions. (Example: a Combination Product contains microRNAs covered by the
      MPG Patent Rights, and microRNAs of a third party. The minimum royalty floor
      applicable to such third party microRNAs amounts to [***]%, which leads to
      an
      aggregate minimum royalty floor of [***]%. In order not to exceed the maximum
      aggregate minimum royalty rate of [***]%, the respective pro rata reduction
      will
      be [***]%, which leads to a minimum royalty floor owed to MI of [***]%, and
      owed
      to such third party of [***]%). 

    

    Notwithstanding
      the foregoing, in no event shall the minimum royalty rate due to MI under this
      Agreement for any Combination Product be reduced to less than [***]% of the
      Net
      Sales of any such Combination Product.

    

    
      	3	
              REPORTS
                AND PAYMENTS

            

    

    

    
      	3.1	
              Progress
                Report

            

    

    

    COMPANY
      shall use all commercial reasonable efforts, including appropriate
      advertisement, to commercialize Licensed Products and Licensed Services, by
      itself and by granting sublicenses, at the earliest commercially practicable
      date. COMPANY shall provide MI, on each January 1st
      following the Effective Date, with a written report showing in sufficient
      detail, on a product-by-product, service-by-service and country-by-country
      basis, if and to what extent COMPANY and its Sublicensees have been able to
      develop and to commercialize Licensed Products and Licensed Services during
      the
      immediately preceding calendar year. The report shall also contain a discussion
      of intended development and commercialisation and sublicensing efforts for
      the
      calendar year
      in which
      the report is submitted. Provided however that such any discussion of intended
      activities shall be a predicted estimate of the Company only, and shall not
      bind
      the Company to act according to such report by any means
      whatsoever.

    

    
      	3.2	
              Royalty
                Reports.
                

            

    

    

    Commencing
      with the first Sale of a Licensed Product or Licensed Service, COMPANY shall,
      within sixty (60) days after the end of each 6-months period, deliver to MI
      a
      report, certified by the chief financial officer of COMPANY, detailing on a
      country-by-country, product-by-product and service-by-service basis, and
      distinguishing between COMPANY and its Sublicensees, the calculation of all
      royalties and fees due to MI for such 6-months period. The report will include,
      at a minimum: (a) the number of Licensed Products involved in Sales of Licensed
      Products and used in Licensed Services; (b) gross consideration invoiced or
      billed in the 6-months period; (c) Qualifying Costs, listed by category of
      cost;
      (d) the resulting Net Sales; (e) royalties and fees owed to MI; and (f) any
      applicable credits resulting from royalty credits.

    

    
      	3.3	
              Payments.
                

            

    

    

    COMPANY
      shall pay all royalties due to MI under Section 2.3 and 2.4 (iii) within sixty
      (60) days after the end of the 6-months period in which the royalties or fees
      accrue.

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 5 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    
      	3.4	
              Records.
                

            

    

    

    COMPANY
      shall maintain, and shall cause its Sublicensees to maintain, complete and
      accurate books and records to verify Sales, Net Sales, and all of the royalties,
      fees, and other payments payable under this Agreement. The records for each
      6-months period will be maintained for at least [***] after submission of the
      applicable report required under Section 3.2. 

    

    
      	3.5	
              Audit
                Rights.
                

            

    

    

    Upon
      reasonable prior written notice to COMPANY, COMPANY will provide access to
      accountants appointed by MI, to all of the books and records required by Section
      3.4 to conduct a review or audit of Sales, Net Sales, and all of the royalties,
      fees, and other payments payable under this Agreement. Access will be made
      available: (a) during normal business hours; (b) in a manner reasonably designed
      to facilitate MI’s review or audit without unreasonable disruption to COMPANY’s
      business; and (c) no more than once each calendar year during the Term
      and
      for a
      period of [***] years thereafter. COMPANY will promptly pay to MI the
      amount of any underpayment determined by the review or audit plus accrued
      interest. If the review or audit determines that COMPANY has underpaid any
      royalty payment by five percent ([***]%) or more, then COMPANY will also
      promptly pay any reasonable costs and expenses of MI appointed accountants
      in
      connection with the review or audit.

    

    
      	3.6	
              Currency.
                

            

    

    

    All
      amounts referred to in this Agreement are expressed in Euro. All payments will
      be made in Euro. If COMPANY receives payment from a third party in a currency
      other than Euro for which a royalty or fee is owed under this Agreement, then
      (a) the payment will be converted into Euro at the conversion rate for the
      foreign currency as published in the eastern edition of the Wall Street Journal
      as of the last business day of the 6-months-period in which the payment was
      received by COMPANY, and (b) the conversion computation will be documented
      by
      COMPANY in the applicable report delivered to MI under Section 3.2.

    

    
      	3.7	
              Place
                of Payment.
                

            

    

    

    All
      payments by COMPANY are payable to "Max-Planck-Innovation GmbH" and will be
      made
      to the following address:

    

    [***]

    [***]

    [***]

    

    [***]

    [***]

    [***]

    [***]

    

    
      	3.8	
              Interest.
                

            

    

    

    All
      amounts that are not paid by COMPANY when due will accrue interest from the
      date
      due until paid at a rate equal to [***] percent ([***]%) per month (or the
      maximum allowed by law, if less). 

    

    
      	3.9	
              No
                Refund.  

            

    

    

    All
      payments made by COMPANY under this Agreement are non-refundable and, except
      as
      set forth in Section 2.2 and 2.3, non-creditable against each other. This
      Section 3.9 shall apply, without limitation, in the event this Agreement is
      terminated prematurely in accordance with the termination 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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 6 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    
      	3.10	
              Taxes

            

    

    

    MI
      alone
      shall be responsible for paying any and all taxes (other than withholding taxes
      or deduction of tax at source or value added tax required by applicable law
      to
      be paid by COMPANY) levied on it by applicable law with respect to any payments
      it receives from COMPANY under this Agreement. The Parties shall use all
      reasonable and legal effort to reduce tax withholding on payments made to MI
      hereunder. Notwithstanding such efforts, if COMPANY concludes that tax
      withholdings under the laws of any country are required with respect to payments
      to MI, COMPANY shall withhold the required amount and pay it to the appropriate
      governmental authority. In such a case COMPANY will promptly provide MI with
      the
      original receipts or other evidence reasonably desirable and sufficient to
      all
      MI to document such tax withholding adequately for purposes of claiming foreign
      tax credits and similar benefits. 

    

    
      	4	
              CONFIDENTIALITY
                

            

    

    

    
      	4.1	
              MI’s
                Confidential Information.
                

            

    

    

    The
      term
“Confidential
      Information”
      includes the terms and conditions of this Agreement, and all technical
      information, inventions, developments, discoveries, software, know-how, methods,
      techniques, formulae, data, processes, and other proprietary ideas, whether
      or
      not patentable, that MI identifies as confidential or proprietary at the time
      it
      is delivered or communicated to COMPANY under this Agreement.

    

    
      	4.2	
              COMPANY’s
                Obligation.
                

            

    

    

    COMPANY
      will maintain in confidence and not disclose to any third party any Confidential
      Information. COMPANY will use the Confidential Information only for the purposes
      of this Agreement. COMPANY will ensure that COMPANY’s employees have access to
      Confidential Information only on a need to know basis and are obligated in
      writing to abide by COMPANY’s obligations under this Agreement. The obligations
      under this Section 4.2 will not apply to: (a) information that is known to
      COMPANY or independently developed by COMPANY prior to the time of disclosure,
      in each case, to the extent evidenced by written records promptly disclosed
      by
      COMPANY to MI upon receipt of the Confidential Information; (b) information
      that
      is disclosed to COMPANY by a third party that has the right to make such
      disclosure; (c) information that becomes patented, published or otherwise part
      of the public domain as a result of acts by MI or a third party obtaining such
      information as a matter of right; or (d) information that is required to be
      disclosed by law, order of relevant governmental authority or a court of
      competent jurisdiction, provided that COMPANY must use its best efforts to
      obtain confidential treatment of such information by such agency or
      court.

    

    
      	4.3	
              Disclaimer.
                

            

    

    

    MI
      is not
      obligated to accept any confidential information from COMPANY, except for the
      reports required by Sections 3.1 and 3.2, and sublicense agreements provided
      to
      MI pursuant to Section 1.3. MI will use its best efforts not to disclose to
      any
      third party outside of MI , the terms of this agreement, the terms of any
      sublicense agreement provided to MI pursuant to section 1.3, and any
      Confidential Information of COMPANY contained in those reports, subject to
      exceptions analogous to those contained in Section 4.2 (a) - (d) above. MI
      bears
      no institutional responsibility for maintaining the confidentiality of any
      other
      information of COMPANY. COMPANY may elect to enter into confidentiality
      agreements with individual scientists at MPG that comply with MI’s internal
      policies.

    

    
      	5	
              TERM
                AND TERMINATION

            

    

    

    
      	5.1	
              Term.
                

            

    

    

    This
      Agreement will commence on the Effective Date. It will terminate upon the later
      of (i) expiration or abandonment of the last patent to expire or become
      abandoned of the MPG Patent Rights; or (ii) if no patent ever issues from the
      MPG Patent Rights, ten (10) years after the first commercial sale of the first
      Licensed Product, unless earlier terminated according to the provisions of
      this
      Agreement (as the case may be, the “Term”).

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 7 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    
      	5.2	
              Early
                Termination by COMPANY.
                

            

    

    

    COMPANY
      may terminate this Agreement at any time upon sixty (60) days prior written
      notice to MI after paying all amounts owed to MI under this Agreement through
      the date of termination.

    

    
      	5.3	
              Early
                Termination by MI.
                

            

    

    

    MI
      may
      terminate this Agreement immediately upon written notice to COMPANY if (a)
      COMPANY fails to pay to MI any amounts owed under this Agreement, and fails
      to
      make such payments within [***] after receiving written notice of such failure;
      or (b) COMPANY materially breaches this Agreement and does not cure the breach
      within [***] after written notice of the breach.

    

    
      	5.4	
              Effect
                of Termination.
                

            

    

    

    Upon
      the
      termination of this Agreement for any reason (a) the licenses granted to COMPANY
      terminate; (b) COMPANY will pay to MI all amounts owed to MI through the date
      of
      termination under this Agreement; (c) COMPANY will, at MI’s request, return to
      MI all Confidential Information and provide to MI copies of all non-confidential
      data generated by COMPANY during the Term that will facilitate the further
      development of the technology licensed under this Agreement; and (d) in the
      case
      of termination under Section 5.3, all duties of MI and all rights (but not
      duties) of COMPANY under this Agreement immediately terminate without further
      action required by either MI or COMPANY.

    

    
      	5.5	
              Survival.
                

            

    

    

    COMPANY’s
      obligation to pay all amounts owed to MI under this Agreement will survive
      the
      termination of this Agreement for any reason. Articles 4, 5, 8, 9 and Section
      11.10 will survive the termination of this Agreement for any reason in
      accordance with their respective terms. Articles 3 and 6 will survive the
      termination of this Agreement for any reason for a period of 6
      months.

     

    
      	6	
              PATENT
                MAINTENANCE 

            

    

    

    
      	6.1	
              Patent
                Maintenance.
                

            

    

    

    MI
      shall,
      in its sole discretion and at its own cost and expense, control the filing,
      prosecution, maintenance and abandonment of any and all patents and patent
      applications within the MPG Patent Rights. MI shall use reasonable efforts
      to
      apply for and seek issuance of patents in the following countries: United States
      of America, Canada, Germany, United Kingdom, France, Switzerland, Australia,
      and
      Japan. Upon COMPANY’s request, COMPANY will be copied on, and allowed to comment
      upon, all substantive issues in the course of the patent prosecution.

    

    
      	7	
              PATENT
                INFRINGEMENT

            

    

    

    
      	7.1	
              Prosecution.
                

            

    

    

    If
      during
      the term of this Agreement COMPANY learns of facts which may constitute a third
      party infringement of the MPG Patent Rights, COMPANY shall promptly notify
      MI in
      writing. In such event, MI may elect, in its sole discretion, but is not
      obligated, to pursue the third party infringer at its sole cost and
      expense.

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 8 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

    

    

    
      	8	
              DISCLAIMER
                OF WARRANTIES; LIMITATION OF LIABILITIES;
                

            

    

    

    
      	8.1	
              Warranty
                of the Parties

            

    

    

    MI
      and
      COMPANY each represent that as of the Effective Date, they have the legal right
      and authority to enter into this Agreement, and to perform all obligations
      hereunder. MI further represents that, to the best of its knowledge as of the
      Effective Date, (i) MI is the exclusive licensor of the entire right, title
      and
      interest in and to the MPG Patent Rights, and (ii) MI has the full right to
      grant to COMPANY rights under the MPG Patent Rights as set forth in this
      Agreement. 

    

    
      	8.2	
              No
                Further MI Warranties.

            

    

    

    Except
      as
      set forth in Section 8.1, MI AND MPG MAKE NO REPRESENTATIONS OR WARRANTIES
      OF
      ANY KIND CONCERNING THE MPG PATENT RIGHTS, EXPRESS OR IMPLIED, AND THE ABSENCE
      OF ANY LEGAL OR ACTUAL DEFECTS, WHETHER OR NOT DISCOVERABLE. Specifically,
      and
      not to limit the foregoing, MI and MPG make no warranty or representation (i)
      regarding the merchantability or fitness for a particular purpose of the MPG
      Patent Rights, the Licensed Services and Licensed Products, (ii) regarding
      the
      patentability, validity or scope of the MPG Patent Rights, (iii) that the use
      and commercialization of the MPG Patent Rights, the Licensed Services and
      Licensed Products will not infringe any patents or other intellectual property
      rights of a third party, and (iv) that the use and commercialization of the
      MPG
      Patent Rights, the Licensed Services and Licensed Products will not cause any
      damages of any kind to COMPANY or to any third party.

    

    
      	8.3	
              Limitation
                of Liability.
                

            

    

    

    EXCEPT
      WITH RESPECT TO A BREACH OF ARTICLE 4, IN NO EVENT SHALL EITHER PARTY BE LIABLE
      HEREUNDER TO THE OTHER PARTY, OR ANY OTHER PERSON OR ENTITY
      FOR
      SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR OTHER INDIRECT DAMAGES
      (INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS OR LOSS OF USE DAMAGES) ARISING
      FROM THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
      OF
      SUCH DAMAGES OR LOSSES. 

    

    
      	
              9

            	
              INDEMNIFICATION

            

    

    

    
      	9.1	
              By
                COMPANY.
                

            

    

    

    COMPANY
      shall indemnify, defend, and hold harmless MI, 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 actions 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 resulting from or arising out of (i) any use of MPG Patent
      Rights by COMPANY or (ii) any development, manufacture, performance, use or
      sale
      of Licensed Products or COMPANY Licenses Services by COMPANY, or (iii) any
      third
      party use of any such Licensed Products or Licensed Services. 

    

    
      	9.2	
              Non-use
                of Names.
                

            

    

    

    Unless
      required to do so by law, order of relevant governmental authority or a court
      of
      competent jurisdiction, COMPANY is not allowed to use the name “Max Planck
      Institute”, “Max Planck Society”, “Max-Planck-Innovation” or any variation,
      adaptation, or abbreviation thereof, or of any of its trustees, officers,
      faculty, students, employees, or agents in any promotional material or other
      public announcement or disclosure without the prior written consent of MI or,
      in
      the case of an individual, the consent of that individual. 

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 9 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    
      	9.3	
              Procedure.
                

            

    

    

    All
      indemnification obligations under this Article 9 shall be subject to the
      following requirements: (a) the indemnified party shall provide the indemnifying
      party with prompt written notice of any claim; (b) the indemnified party shall
      permit the indemnifying party to assume and control the defense of any
      action
      provided, however,
      that the
      indemnified party shall have the right to retain its own counsel, at the expense
      of the indemnifying party, if representation of such indemnified party by the
      counsel retained by the indemnifying party would be inappropriate because of
      an
      actual conflict of interest between the indemnified party and such
      counsel;
      and (c)
      the indemnified party shall not make any admissions, or enter into any
      settlement or compromise of any claim without the indemnifying party’s prior
      written consent. In addition, the indemnified party may, at its own expense,
      participate in its defense of any claim.

    

    
      	9.4	
              Other
                Provisions.
                

            

    

    

    COMPANY
      will not settle or compromise any Claims that imposes any restrictions on MI,
      or
      grants any rights to the MPG Patent Rights or the Licensed Products, without
      MI’s prior written consent. The indemnification rights of the indemnified party
      under this Article 9 are in addition to all other rights that an indemnified
      party may have at law, in equity or otherwise.

    

    
      	10	
              INSURANCE

            

    

    

    
      	10.1	
              Coverages.
                

            

    

    

    COMPANY
      will procure and maintain insurance policies for the following coverages with
      respect to personal injury, bodily injury and property damage arising out of
      COMPANY’s performance during the Term under this Agreement: Comprehensive
      general liability, including broad form and contractual and product liability,
      in a minimum amount of EUR [***] per incident. MI may review periodically the
      adequacy of the minimum amounts of insurance for each coverage required by
      this
      Section 10.1, and MI reserves the right to require COMPANY to adjust the limits
      accordingly. The required minimum amounts of insurance do not constitute a
      limitation on COMPANY’s liability or indemnification obligations to MI under
      this Agreement.

    

    
      	11	
              ADDITIONAL
                PROVISIONS

            

    

    

    
      	11.1	
              Independent
                Contractors.
                

            

    

    

    The
      parties are independent contractors. Nothing contained in this Agreement is
      intended to create an agency, partnership or joint venture between the parties.
      At no time will either party make commitments or incur any charges or expenses
      for or on behalf of the other party.

    

    
      	11.2	
              Compliance
                with Laws.
                

            

    

    

    COMPANY
      must comply with all prevailing laws, rules and regulations that apply to its
      activities or obligations under this Agreement.

    

    
      	11.3	
              Modification,
                Waiver and Remedies.
                

            

    

    

    This
      Agreement may only be modified by a written amendment that is executed by an
      authorized representative of each party. Any waiver must be express and in
      writing. No waiver by either party of a breach by the other party will
      constitute a waiver of any different or succeeding breach. Unless otherwise
      specified, all remedies are cumulative.

    

    
      	11.4	
              Assignment.
                

            

    

    

    Neither
      party may assign this Agreement in whole or in part to a third party without
      the
      prior written consent of the other party, except that each party may assign
      the
      Agreement to a successor in connection with the merger, consolidation, or sale
      of all or substantially all of its assets or that part of its business interest
      to which this Agreement applies, provided that such assignee assumes in writing
      all of the obligations governing the assignor herein.

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 10 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

       

    

    
      	11.5	
              Notices.
                

            

    

    

    Any
      notice or other required communication (each, a "Notice")
      must
      be in writing, addressed to the party’s respective Notice Address listed on the
      signature page, and delivered: (a) personally; (b) by certified mail, postage
      prepaid, return receipt requested; (c) by recognized overnight courier service,
      charges prepaid; or (d) by facsimile. A Notice will be deemed received: if
      delivered personally, on the date of delivery; if mailed, five (5) days after
      deposit in the United States mail; if sent via courier, one (1) business day
      after deposit with the courier service; or if sent via facsimile, upon receipt
      of confirmation of transmission.

    

    
      	11.6	
              Severability
                and Reformation.
                

            

    

    

    If
      any
      provision of this Agreement is held to be invalid or unenforceable by a court
      of
      competent jurisdiction, then the remaining provisions of this Agreement will
      remain in full force and effect. Such invalid or unenforceable provision will
      be
      automatically revised to be a valid or enforceable provision that comes as
      close
      as permitted by law to the parties' original intent.

    

    
      	11.7	
              Headings
                and Counterparts.
                

            

    

    

    The
      headings of the articles and sections included in this Agreement are inserted
      for convenience only and are not intended to affect the meaning or
      interpretation of this Agreement. This Agreement may be executed in several
      counterparts, all of which taken together will constitute the same
      instrument.

    

    
      	11.8	
              Governing
                Law.
                

            

    

    

    This
      Agreement will be governed in accordance with the laws of Germany and the
      proceedings shall be conducted in English.

    

    
      	11.9	
              Dispute
                Resolution.
                

            

    

    

    If
      a
      dispute arises between the parties concerning any right or duty under this
      Agreement, then the parties will confer, as soon as practicable, in an attempt
      to resolve the dispute by good faith negotiations within [***] after one party
      has informed the other party in writing of such dispute. If the parties are
      unable to resolve the dispute amicably, then the parties will submit to the
      exclusive jurisdiction of, and venue in, Germany, with respect to all disputes
      arising under this Agreement. 

    

    
      	11.10	
              Integration.
                

            

    

    

    This
      Agreement, together with all attached Exhibits, contain the entire agreement
      between the parties with respect to the MPG Patent Rights and the license
      granted, and supersede all other oral or written representations, statements,
      or
      agreements with respect to such subject matter.

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 11 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

    

    

    In
      witness whereof, each party has caused this Agreement to be executed by its
      duly
      authorized representative.

    

    

      
        	
                Max-Planck-Innovation
                  GmbH

              	
                Rosetta
                  Genomics Ltd.

              
	 	 	 	 
	 	 	 	 
	
                By:

              	
                _______________________

              	
                By:

              	
                _______________________

              
	
                Name:

              	
                Dr.
                  Joern Erselius

              	
                Name:

              	
                Amir
                  Avniel

              
	
                Title:

              	
                Managing
                  Director

              	
                Title:

              	
                Chief
                  Executive Officer

              
	 	 	 	 
	
                Date:

              	
                _______________________

              	
                Date:

              	
                _______________________

              
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                Notice
                  Address:

              	
                Notice
                  Address:

              
	 	 	 	 
	
                Max-Planck-Innovation
                  GmbH

                Marstallstrasse
                  8

                80539
                  Muenchen

                Germany

                Phone:
                  + 49 / 89 / 29 09 19-0

                Fax: 
                  +
                  49 / 89 / 29 09 19-99

                E-mail:
                  info@max-planck-innovation.de

              	
                Rosetta
                  Genomics Ltd.

                10
                  Plaut Street, Science Park, Rehovot 76706

                Israel

                Phone:
                  

                Fax:
                  +97289484766

                E-mail:

              

      

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 12 of 13

        
          

        

      

      
        
        

        CONFIDENTIAL

      

    

    EXHIBIT
      A

    

    (MPG
      Patent Rights)

    

    MPG
      Patent Rights shall comprise of the following patents and patent applications
      filed by MPG entitled "Small expressed RNA molecules (MicroRNA
      molecules)":

    

    
      	
            	·	
              [***],

            

    

    
      	
            	·	
              [***],
                

            

    

    
      	
            	·	
              [***]

            

    

    
      	
            	·	
              [***].

            

    

    

    

    
      
        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.

        
          Rosetta

          Research
            License GI2916ZJE

        

      

      
        Dec.
          19,
          2006; page 13 of 13Unassociated Document

     

    STOCK
      OPTION AGREEMENT

     

    STOCK
      OPTION AGREEMENT, made as of February 13, 2007 (the “Execution
      Date”),
      by
      and between a21, Inc., a Delaware corporation (the “Company”),
      and
      Albert H. Pleus, an individual (the “Optionee”).

     

    

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      The Company granted the Optionee an option on the same terms and conditions
      as
      are contained in this Stock Option Agreement on January 2, 2004 (the
“Grant
      Date”),
      which
      agreement has been lost, stolen, destroyed or was never delivered to the
      Optionee; and

     

    WHEREAS,
      the Company and the Optionee are entering into this Stock Option Agreement
      in
      replacement of the agreement that was lost, stolen, destroyed or was never
      delivered to the Optionee.

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein and for other good and valuable consideration, the validity and
      sufficiency of which is hereby acknowledged, the parties agree as
      follows:

     

    1.  Grant
      of Option.
      Subject
      to the terms and conditions of this Stock Option Agreement, the Company confirms
      that it granted to the Optionee the right (the “Option”)
      to
      purchase all or any part of an aggregate of 1,505,514 shares of common stock
      of
      the Company, par value $.001 per share (“Common
      Stock”).
      

     

    2.  Vesting
      Schedule. This
      Option is fully vested (i.e., exercisable) as of the Grant Date.

     

    3.  Exercise
      Price.
      The
      price of each share of Common Stock purchased pursuant to this Option shall
      be
      U.S. $0.30.

     

    4.  Exercise
      of Option.
      The
      Optionee may exercise the Option, in whole or in part, with respect to any
      whole
      number of vested shares of Common Stock subject to the Option. The Optionee
      shall exercise the Option by giving the Company written notice, in a form
      prescribed by the Company. Such notice shall specify the number of shares of
      Common Stock to be purchased and shall be accompanied by payment, in U.S.
      dollars, in cash or certified check or by official bank check, of an amount
      equal to the Option exercise price per share of Common Stock, multiplied by
      the
      number of shares of Common Stock as to which the Option is being exercised;
      provided, however, that the purchase price may be paid by (i) surrender or
      delivery to the Company shares of Common Stock owned by the Optionee for at
      least six months having a Fair Market Value (as defined below), on the date
      of
      exercise equal to the portion of the purchase price being so paid, or (ii)
      the
      delivery of funds equal to the purchase price by a broker, in accordance with
      Regulation T promulgated by the Board of Governors of the Federal Reserve System
      or as otherwise may be permissible by law. The Board may impose from time to
      time such limitations as it deems appropriate on the use of shares of Common
      Stock to exercise the Option.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      purposes of this Stock Option Agreement, the term “Fair
      Market Value”
means,
      with respect to Common Stock on any given date, the closing sales price of
      the
      Common Stock for such date (or, in the event that the Common Stock is not traded
      on such date, on the immediately preceding trading date) on any stock exchange
      on which the Common Stock may be listed. If the Common Stock is not listed
      on a
      stock exchange, but is quoted on the OTC Bulletin Board or on the Pink Sheets,
      the Fair Market Value of the Common Stock shall be the mean of the closing
      bid
      and asked prices per share of the Common Stock for such date. If the Common
      Stock is not quoted or listed as set forth above, Fair Market Value shall be
      determined by the Board in good faith by any fair and reasonable
      means.

     

    5.  Delivery
      of Common Stock Certificate.
      Subject
      to Section 6, as soon as practicable after receipt of the notice and payment
      referred to in Section 4 above, the Company shall deliver to the Optionee (or,
      in the case of a broker financed exercise described in clause (ii) of Section
      4,
      to the broker) a certificate or certificates for such shares of Common Stock;
      provided, however, that the time of such delivery may be postponed by the
      Company for such period of time as the Company may require for compliance with
      any law, rule or regulation applicable to the issuance or transfer of shares
      of
      Common Stock. 

     

    6.  Payment
      of Taxes.
      Prior
      to or concurrently with delivery by the Company to the Optionee of a certificate
      or certificate(s) representing such shares of Common Stock, the Optionee shall,
      if required by the IRS, upon notification of the amount due, promptly pay or
      cause to be paid, in cash, any amount necessary to satisfy any tax requirements
      (or otherwise satisfy such requirements in a manner satisfactory to the
      Company).

     

    7.  Termination
      of Option.
      This
      Option and all rights of the Optionee to purchase shares of Common Stock
      hereunder shall terminate on January 31, 2008 (the “Expiration
      Date”)
      unless
      terminated earlier in accordance with the terms hereof.

     

    8.  Notice.
      All
      notices, request, demands, waivers and communications required or permitted
      to
      be given hereunder shall be in writing and shall be delivered in person or
      mailed, certified or registered mail with postage prepaid, or sent by facsimile,
      as follows:

     

    To
      Company:

     

    

     

    a21,
      Inc.

    7660
      Centurion Parkway

    Jacksonville,
      Florida 32256

    Attn:

    Telecopy:
      _______________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    To
      Optionee:

     

    To
      the
      address of the Optionee

    on
      file
      with the Company.

     

    or
      to
      such other address or to the attention of such other person as the recipient
      party shall have specified by prior written notice to the sending party. In
      the
      case of mailing, all such notices, requests, demands, waivers and communications
      shall be deemed to have been received on the third business day after the date
      of the mailing. In the case of facsimile after 5:00 P.M. local time at the
      place
      of delivery or on a day that is not a business day, all such notices, requests,
      demands, waivers and communications shall be deemed to have been received on
      the
      next business day.

     

    9.  Certain
      Adjustments.

     

    (a)  In
      the
      event that the Company or the division, subsidiary or other affiliated entity
      for which the Optionee performs services is sold (including a stock or an asset
      sale), spun off, merged, consolidated, reorganized or liquidated, the Board
      may
      determine that (i) the Option shall be assumed, or a substantially equivalent
      Option shall be substituted, by an acquiring or succeeding entity (or an
      affiliate thereof) on such terms as the Board determines to be appropriate;
      (ii)
      upon written notice to the Optionee, provide that the Option shall terminate
      immediately prior to the consummation of the transaction unless exercised by
      the
      Optionee within a specified period following the date of the notice (such period
      of time to be no less than 20 days); (iii) in the event of a sale or similar
      transaction under the terms of which holders of Common Stock receive a payment
      for each share of Common Stock surrendered in the transaction (the “Sales
      Price”),
      make
      or provide for a payment to each Optionee equal to the amount by which (A)
      the
      Sales Price times the number of shares of Common Stock subject to the Option
      (to
      the extent such Option is then exercisable) exceeds (B) the aggregate exercise
      price for all such shares of Common Stock; or (iv) may make such other equitable
      adjustments as the Board deems appropriate.

     

    (b)  In
      the
      event of any stock dividend or split, recapitalization, combination, exchange
      or
      similar change affecting the Common Stock, the Board shall make any or all
      of
      the following adjustments as it deems appropriate to equitably reflect such
      event: (i) adjust the option price to be paid for any or all shares subject
      to this Stock Option Agreement, (ii) adjust the number of shares of Common
      Stock (or such other security as is designated by the Board) subject to this
      Stock Option Agreement and (iii) make any other equitable adjustments or
      take such other equitable action as the Board, in its discretion, shall deem
      appropriate.

     

    (c)  Any
      and
      all adjustments or actions taken by the Board pursuant to this Section shall
      be
      conclusive and binding for all purposes.

     

    10.  No
      Restriction on the Right of the Company to Effect Corporate
      Changes.
      The
      Option granted hereunder shall not affect in any way the right or power of
      the
      Company or its stockholders to make or authorize any or all adjustments,
      recapitalizations, reorganizations or other changes in the Company’s capital
      structure or its business, or any merger or consolidation of the Company, or
      any
      issue of stock or of options, warrants or rights to purchase stock or of bonds,
      debentures, preferred or prior preference stocks whose rights are superior
      to or
      affect the Common Stock or the rights of holders thereof or which are
      convertible into or exchangeable for Common Stock, or the dissolution or
      liquidation of the Company, or any sale or transfer of all or any part of its
      assets or business, or any other corporate act or proceeding, whether of a
      similar character or otherwise.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.  No
      Stockholder Rights.
      The
      Optionee shall have no rights as a stockholder of the Company with respect
      to
      shares of Common Stock subject to the Option until payment for such shares
      shall
      have been made in full and until the date of the issuance of stock certificates
      for such shares of Common Stock. If the Optionee pays the Option exercise price
      with shares of Common Stock, the Optionee shall continue to be the stockholder
      of record with respect to the shares which it has tendered as exercise payment
      until the Optionee becomes the holder of record of the shares covered by the
      Option.

     

    12.  Nontransferability.

     

    (a)  Except
      as
      provided in paragraph (b) or by
      will
      or the laws of descent and distribution,
      the
      Option is not transferable, and may be exercised only by the Optionee. In the
      event of any attempt by the Optionee to transfer, assign, pledge, hypothecate
      or
      otherwise dispose of the Option or of any right hereunder, except as provided
      for herein, or in the event of the levy of any attachment, execution or similar
      process upon the rights or interest hereby conferred, the Company may terminate
      the Option by notice to the Optionee and it shall thereupon become null and
      void.

     

    (b)  Notwithstanding
      paragraph (a), the Optionee may transfer the Option, by gift or a domestic
      relations order, to a family member of the Optionee.

    
       

      (c)  Notwithstanding
        paragraphs (a) or (b), the Optionee may transfer the Option with the express,
        prior written consent of the Board, which consent may be withheld for any
        reason
        or for no reason.

       

    

    13.  Representations
      By and Covenants of Optionee.

     

    The
      following representations, warranties and covenants by Optionee are made as
      of
      the date of this Stock Option Agreement and, unless stated otherwise herein,
      are
      also made as of each date of exercise of this Stock Option
      Agreement.

     

    (a)  If
      applicable, the Optionee understands and consents to the placement of a legend
      on any certificate or other document evidencing the Shares stating that they
      have not been registered under the Securities Act and setting forth or referring
      to the restrictions on transferability and sale thereof. 

     

    (b)  Optionee
      hereby represents that the address of Optionee furnished by him on the signature
      page of this Stock Option Agreement is accurate and that said address is the
      Optionee’s principal residence. Optionee understands that the Company is relying
      on the accuracy of this representation for purposes of its compliance with
      United States state “blue sky” laws.

     

    (c)  This
      Stock Option Agreement has been duly executed and delivered by the Optionee
      and
      constitutes the legal, valid and binding obligation of the Optionee, enforceable
      in accordance with its terms. 

     

    14.  NSO.
      It is
      intended that this Option shall be a non-qualified stock option and shall not
      constitute an incentive stock option for purposes of Section 422 of the Internal
      Revenue Code of 1986, as amended.

     

    15.  Compliance
      with Law; Registration of Shares.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a)  The
      Option grant provided hereunder shall be subject to all applicable laws, rules,
      and regulations of any applicable jurisdiction or authority or agency thereof
      and to such approvals by any regulatory or governmental authority or agency
      or
      securities exchange which, in the opinion of Company’s counsel, may be required
      or appropriate.

     

    (b)  Notwithstanding
      any other provision of this Stock Option Agreement, the Company shall not be
      required to issue or deliver any certificate or certificates for shares of
      Common Stock under this Stock Option Agreement prior to fulfillment of all
      of
      the following conditions:

     

    (i)  Effectiveness
      of any registration or other qualification of such shares of the Company under
      any law or regulation of any applicable jurisdiction, authority or agency that
      the Board, in its absolute discretion or upon the advice of counsel, deems
      necessary or advisable; and

     

    (ii)  Grant
      of
      any other consent, approval or permit from any applicable jurisdiction or
      authority or agency thereof or securities exchange which the Board shall, in
      its
      absolute discretion or upon the advice of counsel, deem necessary or
      advisable.

     

    The
      Company shall use all reasonable efforts to obtain any consent, approval or
      permit described above.

     

    16.  Replacement
      of Prior Agreements.
      This
      Stock Option Agreement replaces and supersedes in its entirety the agreement
      that was or should have been delivered to the Optionee as of January 2, 2004,
      but does not supersede any agreements between the Optionee and the Company
      subsequent to January 2, 2004. 

     

    17.  Headings.
      The
      headings of sections and subsections herein are included solely for convenience
      of reference and shall not affect the meaning of any of the provisions of this
      Stock Option Agreement.

     

    18.  Severability.
      In the
      event that any one or more provisions of this Stock Option Agreement, or any
      action taken pursuant to this Stock Option Agreement, should, for any reason,
      be
      unenforceable or invalid in any respect under the laws of the United States,
      any
      state of the United States or any other jurisdiction, such unenforceability
      or
      invalidity shall not affect any other provision of this Stock Option Agreement,
      but in such particular jurisdiction and instance this Stock Option Agreement
      shall be construed as if such unenforceable or invalid provision had not been
      contained therein or if the action in question had not been taken
      thereunder.

     

    19.  Board
      Determinations.
      In the
      event that any question or controversy shall arise with respect to the nature,
      scope or extent of any one or more rights conferred by the Option, or any
      provision of this Stock Option Agreement, the good faith determination by the
      Board of the rights of the Optionee shall be conclusive, final and binding
      upon
      the Optionee and upon any other person who shall assert any right pursuant
      to
      this Option.

     

    20.  Governing
      Law.
      This
      Stock Option Agreement and all rights hereunder shall be construed in accordance
      with and governed by the internal laws of the State of Delaware.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    21.  Jurisdiction;
      Venue.
      Each of
      the Company and the Optionee irrevocably (i) agrees that any suit, action
      or proceeding arising out of or relating to this Stock Option Agreement may
      be
      brought in the State or Federal courts located in Jacksonville, Florida;
      (ii) consents to the exclusive jurisdiction of each such court in any suit,
      action or proceeding relating to or arising out of this Stock Option Agreement;
      (iii) waives any objection which it may have to the laying of venue in any
      such
      suit, action or proceeding in any of such court; and (iv) agrees that
      service of any court paper may be made in such manner as may be provided under
      applicable laws or court rules governing service of process, including, without
      limitation, by the mailing of copies thereof by registered or certified mail,
      postage pre-paid, to the other party at its address set forth in Section 8
      or on
      the signature page hereto, such service to become effective five (5) business
      days after such mailing.

     

    22.  Amendment.
      This
      Stock Option Agreement may not be changed or modified except by an instrument
      in
      writing signed by both of the parties hereto.

     

    23.  Counterparts.
      This
      Stock Option Agreement may be executed in one or more counterparts, each of
      which shall be deemed to be an original but all of which together will
      constitute one and the same instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     IN
      WITNESS WHEREOF, the Company and the Optionee have executed this Stock Option
      Agreement effective as of the Grant Date specified above.

     

    
      	 	 	 
	 	a21,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ Philip
              N.
              Garfinkle
	 	
              

            
	 	
              Name:
                Philip N. Garfinkle

              Title:
                Executive Chairman 

            

    

     

    
      	 	 	 
	 	OPTIONEE:
	 
 	 
 	 
 
	: 	By:  	/s/ Albert
              H.
              Pleus
	 	
              

            
	 	Albert
              H. Pleus
	 	 
	 	Optionee’s Address:

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