Document:

Unassociated Document

     

    EXHIBIT 10.7

     

    
      
        
          
            
              	
                      

                    	
                      8
      Hartom St, Jerusalem Israel 97775

                      Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

                      www.biocancell.com
      info@biocancell.com

                    

            

          

        

      

    

     

    AGREEMENT

     

    Between

     

    BioCancell
Therapeutics Ltd.

    Beck
Science Center, 8 Hartom St.

    Jerusalem
97775, Israel 

    (Hereinafter:
“BioCancell”)

     

    And
between

     

    BCG
Oncology P.C.

    16620 N
40th St. Suite E

    Phoenix,
Arizona, USA 85032

    (Hereinafter:
“the Clinical Trial
Site”)

     

    BioCancell
and the Clinical Trial
Site shall be hereinafter collectively referred to in this Agreement as
“Parties”; each
one of which also referred to as “Party”.

     

    
      	
              Whereas 

            	
              BioCancell
      has expressed its interest in carrying out, managing and funding the
      clinical trial the subject of which being “Phase 2b, Multicenter Trial of
      Intravesical DTA-H19/PEI in Patients with Intermediate-Risk Superficial
      Bladder Cancer”, bearing protocol no. Br.-07-01, a copy of which is
      attached as Appendix A hereto (hereinafter: “the Trial”);
      and

            
	 	 
	
              Whereas 

            	
              The
      Clinical
      Trial Site
      has declared it holds the proper facilities and staff required to perform
      the Trial, and that it is willing to put such facilities and staff at the
      disposal of BioCancell, for the purpose of performing the Trial;
      and

            
	 	 
	
              Whereas 

            	
              The
      Parties agree that BioCancell shall maintain any and all management
      authorities with regard to the performance of the Trial in all of its
      stages; and

            
	 	 
	
              Whereas 

            	
              BioCancell
      has agreed to pay the Clinical
      Trial Site
      the consideration, specified in Appendix C hereto, for the performance of
      all the undertakings of the Clinical
      Trial Site
      under this Agreement; all, according to the terms and conditions of this
      Agreement

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

    
       

      NOW, THEREFORE, it is
hereby declared and agreed between the parties as follows: 

       

      
        	1.	
                General

              

      

    

     

    
      	
            	1.1.	
              The
      preface and appendices to this Agreement constitute an integral part
      hereof.

            

    

     

    
      	
            	1.2.	
              Titles
      of the sections in this Agreement shall be used for terms of reference
      only, and could be used for the interpretation of this
      Agreement.

            

    

     

    
      	
            	1.3.	
              This
      Agreement contains the entire understanding of the Parties and the
      Principle Investigator with respect to the subject matter hereof, and
      supersedes all prior or pre-existing negotiations, declarations,
      presentations, commitments and/or agreements, whether written or oral,
      whether explicit or implied, between the Parties and the Principle
      Investigator, with respect to such subject
  matter.

            

    

     

    
      	
            	1.4.	
              In
      the event of a contradiction between this Agreement and any of the terms
      of its appendices, the terms and conditions of this Agreement shall
      prevail.

            

    

     

    
      	
            	1.5.	
              Anything
      in this Agreement denoting the singular shall also denote the plural, and
      anything denoting the feminine gender shall also denote the masculine
      gender, and vice versa, insofar as no other meaning is inferred by the
      context.

            

    

     

    
      	2.	
              Appendices

            

    

     

    The
appendices to the Agreement are:

     

    
      	
            	2.1.	
              Appendix
      A: The Trial Protocol

            

    

     

    
      	
            	2.2.	
              Appendix
      B: The Trial Personnel Clearance

            

    

     

    
      	
            	2.3.	
              Appendix
      C: The Consideration

            

    

     

    
      	
            	2.4.	
              Appendix
      D: The Trial Documents and Related
Activities

            

    

     

    
      	3.	
              Definitions

            

    

     

    In this
Agreement, the following terms shall have the specific meaning attributed to
them in the table below:

     

    
      	
              The Agreement
      

            	
              This
      agreement and its appendices.

            
	 	 
	
              Serious Adverse
      

            	
              As
      defined in the Trial Protocol and in the Guidelines.

            
	 	 
	
              Event Monitors
      

            	
              Any
      body or person/s nominated by, or representing BioCancell and/or any
      company of the BioCancell Group to monitor the Trial (i.e., conduct
      on-site audits for Good Clinical Practices compliance).

            
	 	 
	
              Completed CRF
      

            	
              A
      CRF having, according to the sole and absolute discretion of BioCancell
      and/or any third party appointed by BioCancell, no discrepancies in its
      details and no unanswered queries.

            
	 	 
	
              CRF 

            	
              Case
      Report Forms containing any and all data of the Subjects, which has been
      gathered during the Trial. The CRF shall be in hardcopy
      format.

            
	 	 
	
              The End of the
      Trial

            	
              The
      point in time, in which a Completed CRF has been submitted to BioCancell
      by the Principal Investigator, as defined herein, for all the Subjects
      participating in the Trial, or the date of termination of the Trial
      according to the terms and conditions of the Agreement; the earlier of the
      two.

            
	 	 
	
              FDA 

            	
              The
      United States of America Food and Drug
  Administration.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	
              The Helsinki
      Declaration

            	
              The
      1964 Declaration of Helsinki regarding the recommendations guiding
      physicians in bio-medical research involving human beings, as amended in
      Tokyo, 1975.

            
	 	 
	
              ICH-GCP

            	
              The
      International Conference on Harmonisation (ICH) E6 Good Clinical Practices
      (GCP) Guidelines.

            
	 	 
	
              IND

            	
              Investigational
      New Drug Application (US code of Federal Regulations 21 CFR Part
      312).

            
	 	 
	
              Inspector/s

            	
              Any
      inspecting body legally authorized to perform inspections in clinical
      trials, including, inter alia, the FDA or any other state regulated
      medical authority.

            
	 	 
	
              IRB

            	
              Institutional
      Review Board, a committee that operates in accordance with 21 CFR Part 56
      to provide oversight to the trial with respect to assurance of subject
      safety and subjects rights under the law who are participating in a
      research study.

            
	 	 
	
              Invention Rights
      

            	
              Any
      and all intellectual property rights, relating to the Trial Data or to the
      BioCancell Data, including, inter alia, the right to register and/or own
      any inventions stemming directly or indirectly from the Trial Data and/or
      the BioCancell Data. Without derogating from the generality of the above,
      the Invention Rights shall include, inter alia, patents, information,
      data, know-how, formulas, concepts, tests, drawings, specifications,
      applications, designs and trade secrets, methodologies, engineering and
      manufacturing processes and research processes, stemming directly or
      indirectly from the BioCancell Data, and/or the Trial
  Data.

            
	 	 
	
              Investigator
      Brochure

            	
              A
      document, which is submitted along with the Trial Protocol to the FDA; the
      content of which is outlined in the ICH-GCP Guidelines.

            
	 	 
	
              Publications

            	
              All
      publications, manuscripts, abstracts and papers relating directly or
      indirectly to the subject matter of the Trial, and which were initiated or
      composed directly or indirectly, in whole or in part, by the Principal
      Investigator and/or by the Clinical Trial Site and/or by any of the Trial
      Personnel.

            
	 	 
	
              BioCancell
      Data

            	
              Any
      and all information provided by BioCancell or by the BioCancell Group to
      the Clinical Trial Site, Principal Investigator or any member of the Trial
      Personnel with regard to the Trial, including, without limitation, the
      Trial Protocol and the Investigator Brochure which shall be the sole
      property of the BioCancell Group.

            
	 	 
	
              The BioCancell
      Group

            	
              The
      group of companies consisting of BioCancell Therapeutics, Inc and
      BioCancell Therapeutics Ltd.

            
	 	 
	
              The
      Product(s)

            	
              DTA-H19/PEI

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	
              The
    Reports

            	
              Any
      and all reports required by BioCancell, by any state regulated medical
      authority, or by any applicable laws, rules, regulations or
      guidelines.

            
	 	 
	
              The
    Subjects

            	
              A
      group of persons chosen by the Principal Investigator to participate in
      the Trial and who signed a written informed consent for the participation
      in the Trial, all according to the criteria established in the Trial
      Protocol.

            
	 	 
	
              The Trial
      Data

            	
              Any
      and all clinical data, technical information, records, files and materials
      relating to the Trial, including the Trial Documents, case report forms,
      source documents (such as subjects charts and physical notes), as well as
      other related data generated during or as a result of the Trial which
      shall be the sole property of the BioCancell Group.

            
	 	 
	
              Trial Documents
      

            	
              Any
      and all documents required by BioCancell, the FDA, the Clinical Trial Site
      or any applicable laws, rules, regulations or ICH-GCP,
      for the initiation, performance and completion of the Trial; without
      derogating from the generality of the above, the Trial Documents shall
      include any and all documents specified in Appendix D to this
      Agreement.

            
	 	 
	
              Trial
      Personnel

            	
              The
      medical and administrative staff involved in the Trial, including those
      who shall be employed by the Clinical Trial Site and cleared according to
      the undertaking attached to this Agreement as Appendix
  B.

            
	 	 
	
              The Trial
      Protocol

            	
              A
      document that describes the objective(s), design, methodology, statistical
      considerations, and organization of the Trial. The Trial Protocol usually
      also gives the background and rationale for the trial, but these could be
      provided in other protocol referenced documents. Throughout this Agreement
      the term Trial Protocol refers to the protocol and its amendments, which
      are attached to this Agreement as Appendix
A.

            

    

     

    
      	4.	
              Precedent
      Condition

            

    

     

    The
Parties hereby agree and undertake that the Agreement shall not enter into
effect before any of following cumulative approvals have been granted
(hereinafter: “the Approvals”):

     

    
      	
            	4.1.	
              The
      approval of the Trial Protocol by the Clinical Trial Site’s Institutional
      Review Board (IRB);

            

    

     

    
      	
            	4.2.	
              Thirty
      days after the submission of the Investigational New Drug (IND)
      Application to the FDA and no clinical hold letter issued by the FDA,
      and

            

    

     

    
      	
            	4.3.	
              The
      approval of the Agreement in general, its budget and Appendix C in
      particular.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	5.	
              The Principal
      Investigator

            

    

     

    
      	
            	5.1.	
              Donald
      Lamm, M.D. of the Clinical Trial Site (hereinafter: “the Principal
      Investigator”)
      has agreed to serve as the principal investigator of the
    Trial

            

    

     

    
      	
            	5.2.	
              The
      Principal Investigator undertakes to perform the Trial in compliance with
      the following: (a) the Trial Protocol, (b) ICH-GCP Guidelines, (c) the
      instructions and the terms specified in the approval of the Clinical Trial
      Site’s IRB, (e) the Helsinki Declaration, (f) US FDA Code of Federal
      Regulations (g) written instructions and prescriptions issued by
      BioCancell regarding the Trial and/or the Product; all as may be amended
      from time to time, and (h) the requirements in accordance with the FDA
      Form 1572 “Statement of
Investigator.”

            

    

     

    
      	
            	5.3.	
              The
      Principal Investigator has declared that he holds the professional ability
      and credentials required for performing the Trial in accordance with the
      Trial Protocol and any applicable laws, rules, regulations and guidelines,
      all as detailed above.

            

    

     

    
      	
            	5.4.	
              In
      the event that the Principal Investigator, for any reason whatsoever,
      shall be unable to conduct the Trial, or shall cease to be available for
      the performance of the undertakings set forth in this Agreement, the
      Clinical Trial Site shall use its best efforts to appoint, within 20 days,
      a successor investigator whose identity shall be approved in advance by
      BioCancell (the “Successor
      Investigator”).
      Such Successor Investigator shall undertake all the duties and
      responsibilities of the Principal Investigator as detailed in the
      Agreement. Should the Clinical Trial Site not be able to appoint a
      Successor Investigator, or if the appointed Successor Investigator is not
      acceptable by BioCancell, either party shall be entitled to terminate this
      Agreement forthwith and without further
  liability.

            

    

     

    
      	
            	5.5.	
              In
      the event of the replacement of the Principal Investigator, as described
      under this Section 5, the Principal Investigator shall have no claim
      towards BioCancell and/or the Clinical Trial Site and/or any third party
      acting on their behalf in direct or indirect connection with such
      replacement.

            

    

     

    
      	6.	
              Clinical Trial Site
      undertaking

            

    

     

    
      	
            	6.1.	
              The
      Clinical Trial Site represents that it has the requisite skills,
      knowledge, experience and human resources to undertake and conduct the
      Trial in accordance with the provisions of this
  Agreement

            

    

     

    
      	
            	6.2.	
              The
      Clinical Trial Site undertakes to perform the Trial in compliance with the
      following: (a) the Trial Protocol, (b) ICH-GCP Guidelines, (c) the
      instructions and the terms specified in the approval of the Clinical Trial
      Site’s IRB, (e) the Helsinki Declaration, (f) US FDA Code of Federal
      Regulations (g) written instructions and prescriptions issued by
      BioCancell regarding the Trial and/or the Product; all as may be amended
      from time to time.

            

    

     

    
      	
            	6.3.	
              The
      Clinical Trial Site hereby undertakes to furnish BioCancell, the Principal
      Investigator and all of the Trial Personnel with the facilities and
      personnel necessary for the adequate performance of the Trial according to
      the terms and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    conditions
of the Trial Protocol, and to fully collaborate with the Principal Investigator,
BioCancell, and/or any other third party nominated by BioCancell, with regard to
performing its duties hereunder.

     

    
      	7.	
              BioCancell
      Undertaking

            

    

     

    
      	
            	7.1.	
              BioCancell
      hereby undertakes to allow the Principal Investigator to use the
      BioCancell Data, exclusively for the purpose of performing the Trial,
      during the Term of This Agreement and according to the terms and
      conditions of this Agreement.

            

    

     

    The
Principal Investigator shall strictly abide by any and all instructions given to
him by BioCancell with regard to the BioCancell Data, while recognizing that
BioCancell or any other company from the BioCancell Group was and shall remain,
during the Term of this Agreement and thereafter, the sole and exclusive owner
of any and all rights in the BioCancell Data and the Trial Data, and the use
thereof.

     

    
      	
            	7.2	
              BioCancell
      shall remunerate the Clinical Trial Site, the Principal Investigator and
      the Trial Personnel, according to the terms of Appendix C hereto, for all
      services rendered.

            

    

     

    
      	8.	
              Consideration

            

    

     

    In
consideration for the performance of all of the tasks, duties and undertakings
of the Principal Investigator, the Trial Personnel and the Clinical Trial Site
under this Agreement, BioCancell hereby undertakes to pay the Clinical Trial
Site the amount specified in Appendix C hereto, according to the installments,
timetable and manner specified therein.

     

    
      	9.	
              Product
      Supply

            

    

     

    
      	
            	9.1.	
              BioCancell
      will, at its own expense, supply to the Clinical Trial Site all necessary
      quantities of the drugs to be used in the Trial, and only for the purposes
      as described in the Protocol. Any surplus shall be returned to BioCancell
      without delay, upon completion of the Trial or termination of this
      agreement for any reason whichever is the
  earlier.

            

    

     

    
      	
            	9.2.	
              The
      Clinical Trial Site will ensure that the Product is managed and stored in
      accordance with GCP and with any special instructions issued by
      BioCancell. The Clinical Trial Site will maintain proper records of
      receipts, dispensing and returns of the
Product.

            

    

     

    
      	10.	
              Trial Personnel Compliance and
      Clearance

            

    

     

    
      	
            	10.1.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      exercise their best efforts so that
      the Trial Personnel shall abide by: (a) the Trial Protocol, (b) ICH-GCP
      Guidelines, (c) the instructions and the terms specified in the approval
      of the Clinical Trial Site’s IRB, (e) the Helsinki Declaration, (f) US FDA
      Code of Federal Regulations (g) written instructions and
      prescriptions

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    issued by
BioCancell regarding the Trial and/or the Product, all as may be amended from
time to time. 

     

    
      	
            	10.2.	
              Trial
      Personal Clearance:

            

    

     

    
      	
            	10.2.1.	
              The
      Clinical Trial Site and the Principal Investigator shall deploy all
      possible efforts to see to it that none of the Trial Personnel (including
      the Principal Investigator and any other investigators) are debarred by
      the FDA in any capacity whatsoever, and that none of the Trial Personnel
      appear in the FDA debarment list detailing all firms or persons debarred
      pursuant to Section 306 (a) and (b) of the Federal Food, Drug, and
      Cosmetic Act (21 U.S.C. 335 (a) and (b), as published in the Federal
      Registrar from time to time.

            

    

     

    
      	
            	10.2.2.	
              The
      Clinical Trial Site and the Principal Investigator shall provide
      BioCancell with the written confirmation thereof, in a form attached as
      Appendix B hereto.

            

    

     

    
      	11.	
              Compliance with the Trial
      Budget and Cooperation with BioCancell
    Subcontractors

            

    

     

    
      	
            	11.1.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      perform the Trial in accordance with the budget of the Trial, as such term
      is derived from Appendix C hereto (hereinafter: “the Trial
      Budget”)
      and not to deviate therefrom without the prior written approval of
      BioCancell in relation thereto.

            

    

     

    
      	
            	11.2.	
              The
      Clinical Trial Site hereby undertakes that any deviation from the Trial
      Budget without the prior written consent of BioCancell shall be born by
      the Clinical Trial Site.

            

    

     

    
      	
            	11.3.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      fully cooperate with any and all sub-contractors nominated by BioCancell
      for the purpose of the Trial, including, inter alia, clinical research
      organizations, logistics companies, laboratories,
  etc.

            

    

     

    
      	12.	
              Trial
      Documents

            

    

     

    
      	
            	12.1.	
              The
      Principal Investigator shall prepare and submit the Trial
      Documents.

            

    

     

    
      	
            	12.2.	
              The
      Principal Investigator shall perform all the activities specified in
      Appendix D hereto.

            

    

     

    
      	
            	12.3.	
              Any
      and all amendments to the Trial Protocol shall be performed only after
      securing the approval of BioCancell and the competent regulatory
      authority.

            

    

     

    
      	13.	
              Confidentiality

            

    

     

    
      	
            	13.1.	
              The
      Parties and the Principal Investigator hereby agree and undertake that
      they are aware that the BioCancell Data and the Trial Data (hereinafter,
      jointly and severally “the Confidential
      Information”)
      are confidential information, and that BioCancell has disclosed such
      Confidential Information to the Clinical Trial Site and Principal
      Investigator for the sole purpose of conducting the
  Trial.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	
            	13.2.	
              The
      Parties and the Principal Investigator hereby agree and undertake that
      they are aware that the Confidential Information is the sole and exclusive
      property of BioCancell and/or any other company from the BioCancell Group.
      Accordingly, The Principal Investigator shall retain the Confidential
      Information under the strictest safeguarding and not use, disclose or
      divulge the Confidential Information in part or in whole, directly or
      indirectly, for a period of seven (7)
years.

            

    

     

    
      	
            	13.3.	
              The
      Clinical Trial Site and the Principal Investigator shall maintain the
      confidentiality of the Confidential Information using the same degree of
      care used by them in relation to their own confidential information, and
      shall, without limitation, keep the Confidential Information in a safe and
      separate place and not make any copies thereof (whether in hardcopy or
      electronic file) unless first receiving BioCancell’s written
      consent.

            

    

     

    
      	
            	13.4.	
              The
      Clinical Trial Site and the Principal Investigator hereby further
      undertake to limit access to the Confidential Information to the Trial
      Personnel and any third parties on a
      “need to know basis” only, and cause such Trial Personnel and third
      parties to accept, in writing, the undertaking of the Principal
      Investigator in relation to the Confidential Information under this
      Agreement, as a condition precedent for receipt of any part of the
      Confidential Information.

            

    

     

    
      	
            	13.5.	
              At
      the request of BioCancell, the Clinical Trial Site and the Principal
      Investigator shall forthwith return to BioCancell the Confidential
      Information or any part thereof.

            

    

     

    
      	
            	13.6.	
              The
      Clinical Trial Site and the Principal Investigator hereby state that they
      are aware of the fact that any unauthorized disclosure or use of the
      Confidential Information shall cause immediate and/or irreparable injury
      to BioCancell, and that BioCancell cannot be adequately compensated for
      such injury in monetary damages. Thus, in order to safeguard BioCancell
      from any possible breach of confidentiality, the Principal Investigator
      and the Clinical Trial Site hereby undertake that BioCancell would he
      permitted to obtain, from any Court or Tribunal, any temporary or
      permanent injunction relief, necessary to prevent such unauthorized
      disclosure or use or peril thereof, and hereby renounce filing and/or
      submitting any objection to any request by BioCancell or by any company
      from the BioCancell Group, relating to such temporary or permanent
      injunction.

            

    

     

    
      	
            	13.7.	
              For
      the avoidance of any doubt, it is hereby clarified that such an
      undertaking is supplementary to and will not prejudice any right or
      remedy, which is or shall be available to BioCancell under any applicable
      law or agreement.

            

    

     

    
      	
            	13.8.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      exercise their best efforts to see to it that the Trial Personnel shall
      abide by the undertakings set forth in this Section
  13.

            

    

     

    
      	
            	13.9.	
              In
      the event that the Clinical Trial Site and the Principal Investigator are
      required by law, regulation, rule, act or order of any governmental
      authority or agency to disclose Confidential Information, they shall be
      entitled to do so provided that it shall first notify BioCancell of any
      such required disclosure, so

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    that
BioCancell may seek an appropriate protective order, and limit such disclosure
as far as is possible under applicable law. The Clinical Trial Site and the
Principal Investigator will reasonably cooperate with BioCancell in its efforts
to seek such a protective order. Such disclosure shall, however, not relieve the
Clinical Trial Site and the Principal Investigator of their other obligations
contained herein.

     

    
      	14.	
              Invention
      Rights

            

    

     

    
      	
            	14.1.	
              The
      Clinical Trial Site and the Principal Investigator hereby acknowledge that
      the idea and initiative for the Trial were exclusively those of
      BioCancell, and that the involvement of the Clinical Trial Site and the
      Principal Investigator in the Trial is strictly the consequence of their
      nomination by BioCancell.

            

    

     

    
      	
            	14.2.	
              The
      Parties and the Principal Investigator hereby irrevocably agree and
      undertake that the Confidential Information, except for medical records of
      the Subjects, is the exclusive property of BioCancell, may be freely
      utilized by BioCancell in any manner it sees fit. Notwithstanding the
      above, BioCancell shall have the right to review Subjects’ medical records
      to verify entries in the CRFs. BioCancell hereby undertakes full
      responsibility to ensure the safekeeping of patients’ confidentiality and
      personal data and shall be full responsible for taking every measure to
      apply this commitment.

            

    

     

    
      	
            	14.3.	
              The
      Parties and the Principal Investigator hereby irrevocably agree and
      undertake that the Invention Rights shall be the absolute and exclusive
      property of BioCancell and that BioCancell shall have unrestricted free
      right to use such Invention Rights.

            

    

     

    
      	
            	14.4.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      disclose to BioCancell any and all applicable information relating to
      Invention Rights and exercise their best efforts with regards to
      registration of the Inventions Rights on the name of BioCancell and/or a
      name designated in writing by BioCancell, if and to the extent requested
      to do so by BioCancell.

            

    

     

    
      	
            	14.5.	
              If
      by operation of law or for any reason, any Invention Rights to be owned by
      BioCancell pursuant to this Section 14 are not automatically deemed
      proprietary BioCancell upon their creation, the Clinical Trial Site and
      the Principal Investigator hereby further undertake to cause the Trial
      Personnel to irrevocably grant and assign all such intellectual property
      rights to BioCancell. The Clinical Trial Site warrants that it has and
      will continue to have agreements with its personnel, including any Trial
      Personnel, to effectuate the terms of this section and it shall enforce
      such agreements to provide BioCancell with the benefit of this
      section.

            

    

     

    
      	15.	
              Inspections

            

    

     

    
      	
            	15.1.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      allow the Monitors to perform monitoring visits in all sites related to
      the Trial, during or after the Trial, and assist the Monitors in their
      duties. For the avoidance of doubt, it is hereby clarified that the
      Monitors shall be entitled to monitor
and/or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    inspect
among others the Trial Documents and Trial Data as well as to insure compliance
with the Trial Protocol.

     

    
      	
            	15.2.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      allow the Inspectors to perform inspections of all sites related to the
      Trial, during or after the Trial (and each such inspection shall
      hereinafter be referred to as: “an Inspection”), and to assist the
      Inspectors in their duties, if and to the extent requested to do so
      by the Inspectors.

            

    

     

    
      	
            	15.3.	
              The
      Clinical Trial Site and the Principal Investigator shall immediately
      inform BioCancell in the event of an Inspection and/or upon gaining
      knowledge of any intention to perform an Inspection. The Clinical Trial
      Site and the Principal Investigator shall provide BioCancell with copies
      of any inquiries, correspondence or communications to or from any such
      Inspectors.

            

    

     

    
      	16.	
              Publications

            

    

     

    
      	
            	16.1.	
              BioCancell
      covenants that it will not at any time, without first obtaining the
      consent in writing of the Clinical Trial Site (which consent may by
      refused or granted in its absolute discretion), use the Clinical Trial
      Site’s name or the name of the Principal Investigator or otherwise
      disclose the fact of their involvement in the performance of the Trial in
      any advertising, publicity or publication. However, BioCancell may use the
      name of the Clinical Trial Site and/or the Principal Investigator for
      listing the Trial on
clinicaltrials.gov.

            

    

     

    
      	
            	16.2.	
              Publication
      of the Trial and/or its results, in whole or in part, shall be within the
      sole and absolute discretion of BioCancell. The Clinical Trial Site, the
      Principal Investigator or the Trial Personnel, and any employees and/or
      officers and/or representatives of any of the foregoing shall not publish
      or refer to the Trial and/or its results, in whole or in part, without
      obtaining the prior consent BioCancell in writing. BioCancell reserves the
      right to reject any such request, at its sole discretion. For the
      avoidance of doubt BioCancell has the right, at all times, to publish any
      article or data generated from the services rendered under this
      Agreement.

            

    

     

    
      	17.	
              Reports

            

    

     

    
      	
            	17.1.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      submit the Reports to BioCancell and/or to competent
      authorities.

            

    

     

    
      	
            	17.2.	
              The
      Clinical Trial Site and the Principal Investigator hereby undertake to
      disclose in the Reports any and all data provided to them by BioCancell,
      in accordance with any applicable laws, rules, regulations and guidelines,
      including, inter alia, safety data.

            

    

     

    
      	
            	17.3.	
              The
      Clinical Trial Site will cause the Principal Investigator to provide
      BioCancell, within 45 (forty five) days of the end of each period of three
      (3) months during the period of the Trial, with a written report on the
      progress of the Trial in the said
period.

            

    

     

    
      	
            	17.4.	
              45
      (forty five) days following the End of the Trial, the Principal
      Investigator shall submit to BioCancell a summary report, which shall
      include, in a full and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    detailed
manner, a declaration regarding the activities performed during the Trial and
the results obtained therein.

     

    
      	18.	
              Serious Adverse
      Event

            

    

     

    
      	
            	18.1.	
              In
      the event one or more of the Subjects sustains any Serious Adverse Event
      related to the Trial, the Principal Investigator shall inform BioCancell
      and the Clinical Trial Site’ IRB.

            

    

     

    
      	
            	18.2.	
              The
      Principal Investigator shall report such Serious Adverse Event in the
      timetable and manner prescribed in the Trial
  Protocol.

            

    

     

    
      	
            	18.3.	
              In
      the event of the occurrence of a Serious Adverse Event at another Clinical
      Trial Site that resulted in the submission of a Safety Report to the FDA,
      BioCancell will notify the Principal Investigator who in turn provide such
      notification to the Clinical Trial Site’
IRB.

            

    

     

    
      	19.	
              The Legal Status of the
      Clinical Trial Site and the Principal
  Investigator

            

    

     

    
      	
            	19.1.	
              The
      Parties and the Principal Investigator hereby agree that the relationship
      between BioCancell, on one hand, and the Clinical Trial Site and the
      Principal Investigator, on the other hand, are that of a client and an
      independent contractor, with the Clinical Trial Site and the Principal
      Investigator lacking any capacity whatsoever to legally bind BioCancell to
      a relationship of employer-employee, principal-agent or any other legal
      relationship differing from that of a client and an independent
      contractor.

            

    

     

    
      	
            	19.2.	
              Should
      any court of law rule in a manner opposed to Section 19.1 above, the
      Clinical Trial Site and the Principal Investigator, jointly and severally,
      hereby undertake to indemnify BioCancell with regards to the respective
      damage caused by each of them separately due to such a
    ruling.

            

    

     

    
      	20.	
              Term and
      Termination

            

    

     

    
      	
            	20.1.	
              This
      Agreement shall be in full force until the completion of the
      study.

            

    

     

    
      	
            	20.2.	
              The
      Parties may bring this Agreement to an early end at any time, in writing,
      by prior notice of at least 30 (thirty) days, upon the occurrence of one
      (or more) of the following events:

            

    

     

    
      	
            	20.2.1.	
              The
      FDA has placed the Trial on clinical
hold.

            

    

     

    
      	
            	20.2.2.	
              BioCancell
      decides upon its sole and absolute discretion to bring the Trial to an
      end. For the sake of good order, the Parties and the Principal
      Investigator hereby state and undertake that they are aware, and agree,
      that BioCancell is entitled to terminate this Agreement, upon its sole and
      absolute discretion, at any moment whatsoever; and in this case no party
      hereto shall have any claim whatsoever towards BioCancell and/or any other
      company from the BioCancell Group with regard to such early
      termination.

            

    

     

    
      	
            	20.2.3.	
              A
      Party and/or the Principal Investigator is found to be in breach of this
      Agreement and does not cure such breach within a period of 30
      (thirty)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    days
following receipt of a notice in writing from any of the other Parties in
relation thereto.

     

    
      	
            	20.2.4.	
              A
      Party and/or the Principal Investigator enter into bankruptcy or
      liquidation proceedings or a receiver is appointed over part or all of
      their assets, and such proceedings are not ceased within a period of 45
      (forty five) days following receipt by such Party of a written notice in
      relation thereto from any or all of the other Parties.
  

            

    

     

    
      	
            	20.3.	
              In
      the event of termination of this agreement the Parties and the Principal
      Investigator shall bring the Trial to an end as
  follows:

            

    

     

    
      	
            	20.3.1.	
              Any
      and all Confidential Information and remaining supply of Product shall be
      returned to BioCancell.

            

    

     

    
      	
            	20.3.2.	
              The
      Parties and the Principal Investigator shall cooperate in swiftly
      dispersing the Subjects and Trial Personnel, if the need arises, while
      preserving the latest Trial Data and providing as many Completed
      CRF’s as
      possible, and all to the satisfaction of
  BioCancell.

            

    

     

    
      	
            	20.4.	
              The
      obligation of the Parties and the Principal Investigator pursuant to
      sections 13, 14, 16, 17, and 21 shall survive termination of this
      Agreement.

            

    

     

    
      	21.	
              Insurance and
      Indemnification

            

    

     

    
      	
            	21.1.	
              BioCancell
      has agreed to insure the Subjects, the Trial Personnel, the Principal
      Investigator and the Clinical Trial
Site.

            

    

     

    
      	
            	21.2.	
              BioCancell
      has agreed to indemnify the Trial Personnel, the Principal Investigator
      and the Clinical Trial Site according to the terms of Sub-Section 21.3
      below (hereinafter each of them shall also be referred to as: the
      “Indemnitee”)
      for damages arising as a direct result of their involvement in the
      performance of the Trial (hereinafter: the “Damages”),
      provided that the damages are not as a result of an expected side effect
      of the Products and subject to the conditions detailed
    herein:

            

    

     

    
      	
            	21.2.1.	
              The
      Damages are not caused as a result of negligence or misconduct of the
      Indemnitee;

            

    

     

    
      	
            	21.2.2.	
              The
      Indemnitee performed the Trial in accordance with the Trial Protocol and
      the additional requirements set in this
  Agreement;

            

    

     

    
      	
            	21.3.	
              Promptly
      after receipt by the Indemnitee of a notice of the commencement of any
      claim, action, suit, proceeding or investigation in respect of which
      indemnity may be sought pursuant to this Section 21 (hereinafter: the
      “Claim”),
      the Indemnitee shall provide a notice to BioCancell, in writing,
      describing in reasonable detail the facts and circumstances upon which the
      asserted Claim for indemnification is based, and shall thereafter keep
      BioCancell reasonably informed with respect thereto. BioCancell shall have
      the right to assume the defense of any Claim, at its sole discretion. In
      any event, the Indemnitee shall cooperate with BioCancell in the defense
      of any Claim for which BioCancell assumes the defense. BioCancell shall
      not be liable for the settlement by the Indemnitee of any Claim affected
      without the consent of BioCancell.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    BioCancell
shall be entitled to enter into any settlement of a Claim at its sole
discretion.

     

    
      	22.	
              Notices

            

    

     

    
      	
            	22.1.	
              Notices
      to be given by one Party to another shall be in the English language, and
      shall be deemed properly given if reduced to writing and transmitted to
      the Party’s address appearing on the first page of this Agreement, by air
      courier or by certified registered mail - all to be effective 3 (three)
      days after their sending date, or by facsimile with confirmation receipt -
      to be effective at the first business day following the date of
      transmission.

            

    

     

    
      	
            	22.2.	
              However,
      a notice shall be considered properly given, only in case a copy thereof
      was communicated as follows:

            

    

     

    
      	
              Notice
      to BioCancell

            	
              Notice
      to Clinical Trial Site

            
	
              BioCancell
      Therapeutics Ltd.

            	
              BCG
      Oncology

            
	
              Beck
      Science Center, 8 Hartom St.

            	
              16620
      N 40th. St. Suite E

            
	
              Jerusalem,
      97775 Israel

            	
              Phoenix,
      AZ 85032

            
	
              Attn:
      Ran Vigdor

            	
              Attn:
      Dr. Donald Lamm

            
	
              Director,
      Strategic Alliances

            	
              Principal
      Investigator

            
	
              Telephone:
      +972-2-548-6555

            	
              Telephone:
      (602) 493-6626

            
	
              Facsimile:
      +972-2-548-6550

            	
              Facsimile:
      (602) 996-1383

            

    

     

    
      	
            	22.3.	
              The
      addresses of the Parties, listed in page 1 of this Agreement, shall be
      subject to any change of such address notified in writing by one Party to
      the other, according to the procedure stipulated in this
      Section

            

    

     

    
      	23.	
              Miscellanies

            

    

     

    
      	
            	23.1.	
              Expenses
      of the Parties. Each Party and the Principal Investigator shall bear all
      its own expenses, including the expenses of its attorneys, in connection
      with the negotiation, execution and performance of this
      Agreement.

            

    

     

    
      	
            	23.2.	
              Waiver
      and forbearance. No rights of any Party shall be prejudiced or restricted
      by any indulgence or forbearance, to any other person or entity, and no
      waiver by any Party in respect of any breach shall operate as a waiver in
      respect of any subsequent breach.

            

    

     

    
      	
            	23.3.	
              Governing
      law and jurisdiction. This Agreement shall be exclusively governed by the
      Laws of the State of Israel. Any and all disputes arising hereunder shall
      be resolved by a competent court having jurisdiction over such matters in
      the Tel-Aviv Jaffa District, Israel

            

    

     

    
      	
            	23.4.	
              Assignment.
      This Agreement shall not be assigned, without the prior written consent of
      all of the other Parties, save for an assignment of rights by BioCancell
      to any company within the BioCancell
Group.

            

    

     

    
      	
            	23.5.	
              Counterparts.
      This Agreement and any amendment hereto may be executed in multiple
      counterparts, each of which shall be deemed an original agreement and all
      of which shall constitute one and the same
  agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	
            	23.6.	
              Amendments.
      Modification or amendment to this Agreement shall only be valid if
      performed by a written instrument, signed by all Parties to this
      Agreement.

            

    

     

    
      	
            	23.7.	
              Severability.
      If any provision of this Agreement is determined by a court of competent
      jurisdiction to be invalid, illegal, or unenforceable, that determination
      shall not affect any other provision of this Agreement, and each such
      other provision shall be construed and enforced as if the invalid,
      illegal, or unenforceable provision were not contained
    herein.

            

    

     

    [Remainder of page left
intentionally blank. Signature page follows.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and each of the undersigned hereby warrants and represents that he or
she has been and is, on the date of this Agreement, duly authorized by all
necessary and appropriate action to execute this Agreement.

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement as at the date first
above written:

     

    
      	
              BioCancell
      Therapeutics Ltd.

            	 	
              BCG
      Oncology, P.C.

            
	 	 	 
	
              By:

            	
              /s/
      Avi Barak

            	 	
              By:

            	
              /s/
      Mary Heeley

            
	
              Print
      Name: Avi Barak

            	 	
              Print
      Name: Mary Heeley

            
	
              Title:
      Chief Executive Officer

            	 	
              Title:
      Clinical Research Coordinator

            
	 	 	 
	
              By:

            	
              /s/
      Patricia Ohana

            	 	 	 
	
              Print
      Name: Patricia Ohana

            	 	 
	
              Title:
      VP Clinical Trial

            	 	 

    

     

    I the
undersigned, Dr. Donald Lamm, hereby declare and confirm that I have read
and understood the Agreement. I hereby agree to be appointed as the Principal
Investigator of the Trial on behalf of the Clinical Triad Site, and accept and
undertake to comply with all the terms, conditions, provisions, instructions and
stipulations set forth in the Agreement, including, without limitation,
provisions referring to the Parties.

     

    
      	
              /s/
      Donald Lamm

            	 	 	 
	
              The Principal
      Investigator

            	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    Appendix
A

     

    The Trial
Protocol

    See attached
separately

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    Appendix
B

     

    The Trial Personnel
Clearance 

    An Undertaking with regard
to a Clinical Trial’s Personnel

     

    We, the
undersigned, hereby warrant and undertake in relation of clinical trial bearing
protocol number BC-07-01, researching "Phase 2b, Multicenter Trial of
Intravesical DTA-H19/PEI in Patients with Intermediate-Risk Superficial Bladder
Cancer”, that we have not, we do not and we will not use nor employ, in any
capacity, the services of any person debarred under Section 306 (a) or (b) of
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 335 (a) and (b)), or
debarred under the Israeli Physicians Ordinance [New Version], 1976 or pursuant
to any other applicable law.

     

    
      	
              /s/
      Donald Lamm

            	 	
              /s/
      BCG

            
	
              The
      Principal Investigator

            	 	
              The
      Clinical Trial Site

            

    

    

    11/12/2007

    Date

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    Appendix
C

     

    The
Consideration

     

    
      	1.	
              Terms and
      Definitions

            

    

     

    In this
Appendix C terms shall have the meaning assigned to them in the Agreement. The
following terms shall have the meanings assigned to them hereunder:

     

    
      	
              Complete
      Screening

            	
              A
      Screening of a Subject in which all examinations and/or tests and/or
      treatment and/or evaluations included in the Screening process, as
      detailed in the Trial Protocol, have been performed and the data collected
      and registered in the CRF

            
	 	 
	
              Complete Evaluation Visit or
      Complete Treatment Visit

            	
              A
      Visit of a Participating Subject in which all examinations and/or tests
      and/or treatment and/or evaluations scheduled for the visit have been
      performed, as detailed in the Trial Protocol, and the data collected and
      registered in the CRF 

            
	 	 
	
              Evaluation
      Visit

            	
              Any
      Visit, as defined below, of visits 7, 11, 15, and 19 as these visits are
      numbered and defined in the Trial Protocol.

            
	 	 
	
              Participating
      Subject

            	
              A
      Subject who that has undergone Screening, as defined below, and was
      determined to meet the requirements specified in the Trial protocol
      and who is participating in the Trial according to the terms and
      conditions of the Trial Protocol

            
	 	 
	
              Screening

            	
              A
      series of tests and examinations as defined in table 4 of the Trial
      Protocol designed to evaluate a Subject’s suitability for participating in
      the Trial, as detailed in the Trial Protocol.

            
	 	 
	
              Treatment Visit
      

            	
              Visits
      during which treatment assessments are performed but for which clinical
      laboratory specimens are not collected as defined in the clinical protocol
      including visits scheduled for Weeks 1-3, 5-6, 11-12,
    23-24.

            
	 	 
	
              Treatment visit with Clinical
      Labs 

            	
              Visits
      during which treatment assessments are performed and for which clinical
      laboratory specimens are collected as defined in the clinical protocol
      including visits scheduled for Weeks 4, 13, 25, and 37

            
	 	 
	
              Clinical Response
      Visit

            	
              Visit
      in which disease assessments are performed as defined in the clinical
      protocol including visits scheduled for Weeks 9, 22, 34, and
      46.

            
	 	 
	
              US $ 

            	
              United
      States Dollars

            

    

     

    
      	2.	
              The
      Consideration

            

    

     

    
      	
            	2.1.	
              In
      consideration for the performance, in good faith, by the Principal
      Investigator and the Clinical Trial Site, of all of their undertakings
      under this Agreement, BioCancell hereby undertakes to pay to the Clinical
      Trial Site the following amounts:

            

    

     

    
      	
            	2.1.1.	
              An
      amount of US $1020 (one thousand and twenty US dollars) for a Complete
      Screening of every Subject; and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	
            	2.1.2.	
              An
      amount of US $762 (seven hundred and sixty two US Dollars) for a Complete
      Treatment Visit of every Participating Subject;
  and

            

    

     

    
      	
            	2.1.3.	
              An
      amount of US $882 (eight hundred eighty two US dollars) for a Treatment
      visit with Clinical Labs of every Participating
  Subject;

            

    

     

    
      	
            	2.1.4.	
              An
      amount of US $630 (eight hundred eighty two US dollars) for a Clinical
      Response Visit for every Participating Subject
  and

            

    

     

    
      	
            	2.1.5.	
              A
      one time fee of $4,500 for Phase 2
insurance.

            

    

     

    In
addition, the following procedures will be invoiced if the procedure is not
covered by the patient’s insurance or if the patient is uninsured.

     

    
      	
              Office
      Cystoscopy

            	 	
              $

            	
              646.15

            	 
	
              Office
      Biopsy

            	 	
              $

            	
              745.82

            	 
	
              Bostwick
      Biopsy Reading

            	 	
              $

            	
              190.00

            	 
	
              Bostwick
      Urine cytology

            	 	
              $

            	
              440.00

            	 
	
              Hospital
      Cystoscopy with Biopsy

            	 	 	 	 
	
              (estimate)

            	 	
              $

            	
              l,300.00

            	 

    

     

    
      	3.	
              Limitation of
      Payments

            

    

     

    
      	
            	3.1.	
              For
      the avoidance of doubt, it is hereby declared and agreed that BioCancell
      shall not pay any additional payments or any other amounts, which are not
      clearly mentioned and specified in section 2
  above.

            

    

     

    
      	
            	3.2.	
              It
      is further clarified that the amounts specified in section 2 above include
      payment by BioCancell for all services rendered from the Clinical Trial
      Site including but not limited to office services, Trial Personal required
      for performing the Trial including the Principal Investigator, physicians,
      nurses, receptionists and study coordinator, use of the Clinical Trial
      Site’s facilities, and all tests, procedures, examinations and evaluations
      as detailed in the Trial protocol.

            

    

     

    
      	
            	3.3.	
              The
      considerations do not include cost of clinical laboratory hematology,
      chemistry, or urinalysis which will be performed by BioCancell’s
      sub-contractor/s or shipment of slides to BioCancell for
      analysis.

            

    

     

    
      	4.	
              Terms of
      Payment

            

    

     

    
      	
            	4.1.	
              The
      Clinical Trial Site shall send an invoice at the end of each calendar
      quarter (31 March, 30 June, 30 September, and 31 December) detailing the
      Complete Screening, Complete Treatment Visits and Complete Evaluation
      Visits (together hereinafter: “Complete
      Visits”)
      performed as well as on which Subjects or Participating Subjects the
      relevant Complete Visit was
performed.

            

    

     

    
      	
            	4.2.	
              Payments
      detailed in section 2.1.4 and 2.1.5 shall be conditioned upon payment for
      Complete Visits and shall be included in the first invoice sent by the
      Clinical Trial Site.

            

    

     

    
      	
            	4.3.	
              Payment
      shall be maid by BioCancell within 30 (thirty) days of receipt of the
      Clinical Trial Site’s invoice.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	
            	4.4.	
              All
      Payments shall be performed in the last day of the calendar year during
      which the relevant payment date occurred. (Occurrence of the relevant
      payment date shall be at the termination and completion of the stage and
      conditions of which entitles the Clinical Trial Site for payment according
      to this Appendix C).

            

    

     

    
      	
            	4.5.	
              Immediately
      upon receiving the payment as per the issued invoice the Clinical Trial
      Site will provide BioCancell with a receipt approving the
      payment.

            

    

     

    
      	5.	
              Currency of
      Payments

            

    

     

    All of
the payments subject of this Appendix C shall be performed by BioCancell to the
Clinical Trial Site in US$.

     

    
      	6.	
              General Observations and
      Clarifications

            

    

     

    For the
sake of good order it is hereby clarified that, unless otherwise agreed upon in
writing by BioCancell:

     

    
      	
            	6.1.	
              No
      payment would be performed for any activities performed by the Principal
      Investigator and/or by the Clinical Trial Site, prior to the commencement
      of the Trial.

            

    

     

    
      	
            	6.2.	
              Without
      derogating from any right of BioCancell, in the event that no Completed
      CRF’s are provided to BioCancell, regarding a Subject, in relation to
      which BioCancell has performed payments to the Clinical Trial Site,
      BioCancell shall be entitled to perform one of the following three,
      according to its absolute
discretion:

            

    

     

    
      	
            	6.2.1.	
              Write-off
      the amount paid by BioCancell in relation to Subject(s) for which no
      Completed CRFs have been provided (hereinafter: “the Return
      Amount”)
      from the amount remaining due to the Clinical Trial Site by BioCancell
      according to this Agreement (hereinafter: “the Remaining
      Amount”).

            

    

     

    
      	
            	6.2.2.	
              Order
      the Clinical Trial Site, in writing, to pay BioCancell the Return Amount
      within a period no longer than 45 (forty-five) days from the End of the
      Trial. The Clinical Trial Site hereby undertakes that it shall pay the
      Return Amount, as specified above, and renounces any contentions and/or
      claims whatsoever in relation
thereto.

            

    

     

    
      	
            	6.2.3.	
              In
      the event that the Return Amount shall exceed the Remaining Amount,
      BioCancell shall be entitled to exercise its rights under the above
      sub-sections 6.3.1 and 6.3.2 in concert, to the extent that BioCancell
      shall fully collect the Return Amount from the Clinical Trial
      Site.

            

    

     

    
      	
            	6.3.	
              No
      advance payments would be performed by BioCancell to the Clinical Trial
      Site.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    Appendix
D

     

    The Trial Documents and
Related Activities

     

    The Trial
Documents shall include, inter alia, all the documents set forth in the
Guidelines, as well as the documents specified hereunder.

     

    Any and
all terms not specifically defined in this Appendix shall have the meaning
attributed to them in the Agreement.

     

    Prior to the initiation of the Trial:

     

    
      	1.	
              The
      executed signature page of the Trial Protocol;
  and

            

    

     

    
      	2.	
              Investigator
      Brochure; and

            

    

     

    
      	3.	
              The
      current curriculum vitae of the Principal Investigator;
  and

            

    

     

    
      	4.	
              The
      list of all sub-investigators, all of which necessarily being listed on
      either the FDA form no. 1572, or on the Principal Investigator's Statement
      Form; and

            

    

     

    
      	5.	
              The
      written approval of the Clinical Trial Site Institutional Review Board,
      indicating that it has reviewed and approved the Trial Protocol;
      and

            

    

     

    
      	6.	
              The
      written approval of the Clinical Trial Site Institutional Review Board
      with regards to the content of all publicity and advertisements, related
      to the Trial, which are to be performed prior to the commencement of the
      Trial; and

            

    

     

    
      	7.	
              A
      list of all participants in the Institutional Review Board, convened in
      relation to the Trial (hereinafter: “the Institutional Review
      Board”);
      and

            

    

     

    
      	
            	7.1.	
              Should
      the Principal Investigator be a member of the Institutional Review Board,
      the written Statement of the chairman of the Institutional Review Board
      confirming that the Principal Investigator did not participate in the
      voting, relating to the Trial, during the hearing of the said
      Institutional Review Board; and

            

    

     

    
      	
            	7.2.	
              A
      financial disclosure form, confirming that the Principal Investigator
      holds no financial interests in
BioCancell.

            

    

     

    While conducting the
Trial:

     

    
      	1.	
              A
      review of all the Trial Documents and verification the accuracy and
      completeness thereof in relation to the source documents, on which the
      above documents were based; and

            

    

     

    
      	2.	
              Preparation
      os such reports as required by the Clinical Trial Site’s
    IRB.

            

    

     

    
      	3.	
              Reporting
      of Serious Adverse Events to the Sponsor in accordance with the Clinical
      Protocol.

            

    

     

    
      	4.	
              Maintain
      adequate records of Subjects identification, clinical observations, as
      well as study drug receipt and dispensation (hereinafter: “the
      Records”),
      in accordance with any applicable laws, rules, regulations and guidelines,
      as amended from time to time. In any event, the Principal Investigator and
      BioCancell shall maintain the Records for a period of no less than 2 (two)
      years following the submission of the Biologics License Application to the
      FDA for licensure of the Product.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              

            	
              8
      Hartom St, Jerusalem Israel 97775

              Phone:
      +972-2-548-6555 Fax: +972-2-548-6550

              www.biocancell.com
      info@biocancell.com

            

    

     

    
      	5.	
              Compare
      the data in the CRF with the source documents relating to each subject
      participating in the Trial, and confirm the accuracy of the CRF;
      and

            

    

     

    
      	6.	
              Maintain
      a log, documenting the Product(s) provided to each subject during the
      Trial; and

            

    

     

    
      	7.	
              Report
      no later than 7 (seven) days before additional quantities of Product(s)
      are required to proceed with the
Trial.

            

    

     

    
      	8.	
              Complete
      all CRFs

            

    

     

    
      	9.	
              Re-validate
      the approval of the relevant IRB, within a reasonable time prior to its
      expiration date.

            

    

     

    
      	10.	
              A
      written detailed periodic report on the progress of the Trial in the said
      period (section 17.3 of the
Agreement).

            

    

     

    At the end of the
Trial:

     

    
      	1.	
              All
      Completed CRFs;

            

    

     

    
      	2.	
              A
      summary report, which shall include, in a full and detailed manner, a
      declaration regarding the activities performed during the Trial and the
      results obtained therein (section 17.4 of the
  Agreement).Unassociated Document

    EXHIBIT 10.8

     

    EMPLOYMENT
AGREEMENT

     

    THIS
EMPLOYMENT
AGREEMENT (the
“Agreement”) is
entered into as of the date set forth below, by and between BIOCANCELL
THERAPEUTICS, INC., a corporation organized under the laws of the State of
Delaware (the “Parent”),
BIOCANCELL THERAPEUTICS LTD., a company organized under the laws of the State of
Israel and a fully owned subsidiary of the Parent, (the “Company” and
together with the Parent, the “Companies”), and
Avi Barak, Israel Identity Number 030557953 of Tidhar 11, Ramat Gan, Israel,
Fax: 03-5745871, Email: avi.barak@biocancell.com (the
“Employee”) to be
effective as of March 1, 2006 (the “Commencement Date”).

     

    WHEREAS,
the Parent and Company desires to employ the Employee as its Chief Executive
Officer and have him in charge of, and responsible for, the business
development, operations, personnel, finance, research and development, fund
raising, marketing, sales and service activities worldwide of the Companies and
the Parent and the Employee desires to serve in such position and engage in such
employment, on the terms and conditions hereinafter set forth.

     

    NOW,
THEREFORE, in consideration of the respective agreements of the parties
contained herein, the parties agree as follows:

     

    
      	
            	1.	
              Employment.

            

    

     

    (a) The
Company agrees to employ the Employee as its Chief Executive Officer and the
Parent shall employ the Employee as its Chief Executive Officer commencing on
the Commencement Date and the Employee agrees to be employed by the Companies as
such on the terms and conditions set forth hereinafter.

     

    (b) The
Employee’s duties and responsibilities shall include but not be limited to those
duties and responsibilities customarily performed by a chief executive officer
and the Employee shall be in charge of, and responsible for, the business
development, operations, personnel, finance, research and development, fund
raising, marketing, sales and service activities worldwide of the Company and
the Parent (the “Services”) and the
Employee hereby declares that the Employee’s background, education and
professional standing are commensurate
with his position hereunder. The Employee shall be under the direct
supervision of and comply with the directives of the board of directors
of the Parent.

     

    (c) Excluding
periods of vacation, sick leave and military reserve service to which the
Employee is entitled or required, the Employee agrees to devote total attention
and all of his full working time to the business and affairs of the Companies as
required in order to discharge the responsibilities assigned to the Employee
hereunder. During the term of this Agreement, the Employee shall not be engaged
in any other employment nor engage actively in any other business activities or
in any other activities which may hinder his performance hereunder, with or
without compensation, for himself or for any other person, firm or company,
without the prior written consent of the Companies, which consent shall not be
unreasonably withheld.

     

    (d) The
parties hereto confirm that this is a personal services contract and that the
relationship between the parties hereto shall not be subject to any general or
special collective employment agreement or any custom or practice of the
Companies in respect of any of its other employees or contractors, to the
fullest extent permitted by law. The Employee hereby represents and warrants to
the Companies that the execution and delivery by him of
this Agreement and the fulfillment and performance of the terms hereof: (i) does
not conflict with any agreement by which he is bound and (ii) does not require
the consent of any person or entity. The Employee represents and warrants that
he will not use during the course of his employment with the Companies any trade
secrets or proprietary information which is the property of the Employee’s
previous employer(s) in such a manner that may breach any confidentiality or
other obligation the Employee may have with such former
employer(s).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) The
duties of the Employee in accordance with this Agreement involve duties which
require of him special personal care and loyalty, and therefore the directives
of the Work Hours and Rest Law, 1951, or any law to be enacted in its place,
will not be applicable to the Employee or to his activities which he will
perform for the Companies and as such, the Employee will not be entitled to
remuneration according to the Work Hours and Rest Law, 1951.

     

    
      	
            	2.	
              Salary.

            

    

     

    (a) The
Companies shall pay Employee an aggregate gross monthly salary of eight thousand
US dollars ($8,000) (the “Salary”), which
shall be paid not later than the 9th day of each month with respect to the
preceding month, in accordance with the Companies’ payroll practices. The
Employee shall be entitled to receive cost-of-living adjustments “Tosefet Yoker”
or other statutory or mandatory required increase in salary. The Companies shall
deduct from the Salary all national insurance fees, health insurance fees,
income tax and any other amounts required by law, and shall provide the Employee
with requisite documentation
regarding such deductions. The Salary does not include reimbursement or
expenses for transportation to and from the Employee’s workplace.
Notwithstanding the foregoing, upon the closing of the Parent’s initial firmly
underwritten public offering of its shares of Common Stock Ordinary Shares
pursuant to an effective registration statement under the United States
Securities Act of 1933, as amended or the Israeli Securities Law 5728-1968, as
amended or equivalent law of another jurisdiction, the Salary shall be increased
from eight thousand US dollars ($8,000) to twelve thousand US dollars
($12,000).

     

    (b) The
Salary includes remuneration for working overtime and on days of rest, and the
Employee shall not be entitled to any further remuneration or payment whatsoever
other than the Salary and/or benefits, unless expressly specified in this
Agreement. The Employee acknowledges that the Salary to which the Employee is
entitled pursuant to this Agreement constitutes due consideration for the
Employee working overtime and on days of rest.

     

    (c) The
amount payable hereunder will be reviewed annually during the term of this
Agreement.

     

    (d) The
Employee hereby acknowledges and agrees that severance pay, if entitled to be
received, shall be calculated solely on the basis of the Salary. The Employee
hereby waives in advance any future claim for severance pay on additional
payments he may receive in excess of the Salary.

     

    
      	
            	3.	
              Employee
      Benefits.

            

    

     

    The
Employee shall be entitled to the following benefits, commencing
immediately:

     

    (a)
Sick
Leave. The
Employee shall be entitled to twelve (12) working days of sick leave each year.
The Employee may carry forward any unused sick leave, not to exceed the
maximum prescribed by law, but shall not be entitled to any payment for unused
sick leave.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Vacation. The
Employee shall he entitled to an annual vacation of twenty four (24) working
days per year. A “working day” stall mean Sunday to Thursday inclusive. The
Employee may carry forward the unused portion of such vacation for one (1) year,
following which, all such unused vacation shall not be accumulated and shall be
lost. Subject to the provision of due and reasonable prior notice, the Companies
may require the Employee to take leave and such leave will be deducted from the
vacation days to which the Employee is entitled under this
Agreement.

     

    (c) Annual Recreation Allowance
(Dme’i Havra’a). The
Employee shall be entitled to annual recreation allowance, according to
applicable law.

     

    (d) Manager’s
Insurance. The
Companies shall contribute each month an amount equal to 13-1/3% of the Salary
for the preceding month to a Managers Insurance (Bituach Menahalim) policy
(the “Policy”) through
an agency and with an insurance company, to be selected by the Companies, to be
divided as follows: (i) 8-1/3% towards severance pay (the “Company’s Severance Contribution”); and
(ii) 5% toward provident (compensation) payments, subject to deduction of 5%
from the Employee’s Salary, as detailed below. In addition the Companies shall
pay up to 2-1/2% of the Salary towards loss of working capacity disability
insurance (depending on the cost to the Companies necessary to provide coverage)
to be purchased by the Companies from an insurance agency of its choice. The
Employee agrees that the Companies shall deduct from the Salary an amount equal
to 5% of the Salary for the preceding month, and shall pay such amount as
premium payable in respect of the provident compensation component of the
Policy.

     

    (e) Education Fund
Contributions. At the
end of each month during the employment of Employee hereunder (on such day as is
consistent with the Companies’ general practices), the Companies shall pay an
amount equal to 7-1/2% of the Salary for the preceding month to an Education
Fund (Keren Hishtalmut)
designated by the Companies (the “Fund”), and the Employee agrees that the
Companies shall deduct from the Salary an amount equal to 2-1/2% of the Salary
for the preceding month and pay the same to the Fund. Use of these funds shall
be in accordance with the by-laws of such fund.

     

    (f) Additional
Benefits. The
Company shall provide the Employee with a mobile phone (the “Phone”) and a
laptop computer, all of which shall be used solely for the purpose of performing
the Services.

     

    (g) Company
Car. For the
purpose of fulfilling his duties, the Company will provide the Employee with a
leased car (the “Car”) and
will place the Car at his disposal under the terms of the Company’s general
leasing plan, and provided that the Employee sign the Company’s standard “Car
Policy” as may be in effect from time to time. The Employee’s use of the Car
will be pursuant to the following provisions:

     

    (i) The Car
can be reasonably used solely in Israel for recreational use. The Company will
bear all costs related to the use and upkeep of the Car in accordance with the
Company’s Car Policy and excluding any fines for traffic related violations and
alike. Such payments shall be the Employee’s responsibility and should be paid
immediately when required by applicable law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) The
Employee hereby represents and warrants that he read and understands the leasing
agreement with the leasing company and the Company’s Car Policy; and by
executing this Agreement, he undertakes upon himself all of the Company’s
obligations, towards the leasing company, concerning the use, upkeep,
maintenance and operation of the Car.

     

    (iii) Immediately
upon the conclusion of the employer-employee relationship, the Employee shall
make the Car available to the Company in proper working condition. The Car shall
not be used by the Employee as a lien.

     

    (iv) It is
hereby clarified that the Car shall not be a considered a salary component for
the purposes of determining the benefits to which the Employee is entitled to
under this Agreement.

     

    (h) Taxes on
Benefits. It is
hereby expressly agreed that all tax consequences of the benefits related to the
Phone and the Car shall be borne by the Companies.

     

    4. Bonus. In the
event the Parent receives aggregate proceeds of at least ten million US dollars
($10,000,000) from equity investments made in the Parent at any time following
the date hereof and until two (2) years following the first investment following
the date hereof, the Companies shall pay the Employee a one time bonus of one
hundred thousand US dollars ($100,000).

     

    5. Expenses. The
Employee shall be entitled to receive prompt reimbursement of all direct
expenses reasonably incurred in connection with the performance of the Services
hereunder in accordance with the Companies’ reimbursement policy in effect at
such time. The Employee hereby acknowledges that once reimbursement has been
received for goods purchased by the employee on behalf of the Companies, such
goods shall become the sole property of the Companies.

     

    6. Options. In
addition to the sixty thousand (60,000) options to purchase shares of Common
Stock of the Parent currently held by the Employee, the Parent shall grant the
Employee options (the “Options”) to
purchase one hundred fifteen thousand one hundred fifty six (115,156) shares of
Common Stock of the Parent at an exercise price of $0.01 per share, pursuant to
the terms and conditions of a Stock Option Agreement to be entered into between
the Parent and the Employee and subject to the Parent’s Stock Option Plan. The
Option shall be granted pursuant to Section 102 of the Income Tax Ordinance [New
Version], 1961 under the Capital Gains Track. The Options shall vest quarterly
over a period of three (3) years; provided however that in the event the
Employee is terminated, all of the Options not yet vested shall immediately vest
and all of the Employee’s rights in respect of the Options shall terminate sixty
(60) months from the date of termination; and further provided that upon the
Parent consummating any transaction that entails an M&A Transaction (as
defined below), all unvested Options shall be accelerated so that such Options
shall be immediately vested in full as of the date of such M&A Transaction.
“M&A Transaction” shall
mean: (i) any merger or consolidation of the Parent with or into any other
corporation or corporations, or the merger of any other corporation or
corporations into the Parent, or the sale of all or substantially all of the
Parent’s assets or shares, or any other corporate reorganization or transaction
in which control of the Parent is transferred, and in which, consolidation,
merger, sale of assets, sale of shares, reorganization or change of control
transaction, substantially all of the stockholders of the Parent receive cash or
securities of another corporation or corporations as a result of such,
consolidation, merger, sale of
assets, sale of shares, reorganization or change of control transaction, but
excluding a transaction in which shareholders of the Parent prior to the
transaction will maintain voting control of the resulting entity (or its parent)
immediately following the transaction; and (ii) the initial public offering of
the shares of the Parent. The Stock Option Agreement shall include a provision
allowing for a cashless exorcise. The Options shall terminate ten (10)
years following the date of grant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	7.	
              Term and
      Termination.

            

    

     

    (a) The term
of employment under this Agreement shall commence on the Commencement Date and
will continue until mutually agreed to by the parties or terminated under the
following circumstances:

     

    (i)
Death or
Disability. The
death or disability of Employee (for purposes of this Section 8, “disability”
shall be deemed to have occurred if Employee is unable, due to any physical or
mental disease or condition, to perform his normal duties of employment for (A)
two (2) successive months, or (8) one hundred twenty (120) days in any
twelve (12)-month period;

     

    (ii)
Cause. Either
of the Companies may terminate the Employee’s employment for Cause, in which
case (subject to applicable law) employment shall cease immediately. For
purposes of this Agreement, “Cause” shall
mean and include: (a) conviction of any felony involving moral turpitude
affecting the Parent or its subsidiaries; (b) action taken by the Employee
intentionally to harm either of the Companies; (c) embezzlement of funds of the
Parent or its subsidiaries; (d) falsification of records or reports; (e)
ownership, direct or indirect, of an interest in a person or entity (other than
a minority interest in a publicly traded company) in competition with the
products or services of the Company, the Parent or its subsidiaries, including
those products or services contemplated in a plan adopted by the Company’s or
Parent’s Board of Directors; (f) any breach of the Employee’s fiduciary duties
or duties of care to the Parent or Company (except for conduct taken in good
faith) which, to the extent such breach is curable, has not been cured by
Employee within fifteen (15) days after his receipt of notice thereof from
Parent or Company, as applicable, containing a description of the breach or
breaches alleged to have occurred; (g) any material breach of this Agreement
which has not been cured by Employee within fifteen (15) days after his receipt
of notice thereof from Company or Parent, as applicable, containing a
description of the breach or breaches alleged to have occurred; (h) any breach
of the Proprietary Information, Non-Competition and Assignment of Inventions
Agreement in the form attached hereto as Exhibit A, by the
Employee; and (i) any other act or omission that constitutes “cause” under the
laws of any jurisdiction in which the Company or Parent conducts its business
and in which the Employee is employed at the time of such act. In the event of
termination for Cause, the Employee’s entitlement to severance pay will be
subject to Sections 16 and 17 of the Severance Pay Law 5713 - 1953 (the
“Severance Law”).

     

    (iii) Termination by
Parties. Each
party may terminate this agreement for any reason and without the obligation to
provide a reason or conduct any prior hearing, upon providing four (4) months
prior written notice to the other party. The Employee acknowledges and agrees
that he has been given ample opportunity to consider the aforesaid waiver and
further acknowledges that the Salary includes due consideration for such
waiver.

     

    (b) During
the period following notice of termination by any party for any reason, the
Employee shall cooperate with the Companies and use his best efforts to assist
the integration
into the Companies organization of the person or persons who will assume the
Employee’s responsibilities. The Companies, in their sole discretion, reserve
the right to cease the Employee’s employment without notice and pay him the
Salary for the notice period he is entitled to.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) In the
event of any termination of his employment for whatever the reason, unless
otherwise agreed by the parties, the Employee will promptly deliver to the
Companies all (i) documents, data, records and other information pertaining to
his employment or any Proprietary Information (as defined in Exhibit A) or
Company Intellectual Property (as defined in Exhibit A), and
(ii) any other equipment belonging to the Companies in the Employee’s
possession, and the Employee will not take with his any documents or data, or
any reproduction or excerpt of any documents or data, containing or pertaining
to his employment or any Proprietary Information or Company Intellectual
Property.

     

    (d) Upon
termination pursuant to this Section 8, Employee (or his estate or guardian in
the event of termination pursuant to subsection 8(a)(i) above) shall be entitled
to receive the Salary accrued but unpaid as of the date of termination, and
accrued vacation pay and all other payments required by law, except that if such
termination occurs in the circumstances set forth in Sections 16 and 17 of the
Severance Law, the Companies shall not be obligated to transfer, or cause to be
transferred, to Employee the Company’s Severance Contribution comprising a
portion of the Policy.

     

    8. Employee Proprietary
Information, Non-Competition and Assignment of Inventions
Agreement. The
Employee shall execute the Proprietary Information, Non-Competition and
Assignment of Inventions Agreement in the form attached hereto as Exhibit A.

     

    9. Reserve
Duty. The
Employee shall continue to receive the Salary and such other benefits set forth
in this Agreement provided for hereunder during periods of military reserve
duty, provided that the Employee supplies the Company with the army form for the
National Insurance Institute. The Employee hereby assigns and undertakes to pay
to the Company any amounts received from The National Insurance Institute as
compensation for such reserve duty service.

     

    10. Notice. For the
purpose of this Agreement, notices and all other communications provided for in
the Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or sent by registered mail, email, postage prepaid,
addressed to the respective addresses listed above or last given by each party
to the other, except that notice of change of address shall be effective only
upon receipt.

     

    
      	
            	11.	
              Miscellaneous.

            

    

     

    (a) No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the
Employee and the Company. Failure by any party to enforce any provision of this
Agreement will not be deemed a waiver of future enforcement of that or any other
provision.

     

    (b) This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Israel, without giving effect to the rules respecting
conflicts-of-law. All references to applicable law are deemed to include all
applicable and relevant laws and ordinances and all regulations and orders
promulgated there under, unless the context otherwise requires.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) The
provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

     

    (d) This
Agreement and the Proprietary Information, Non-Competition and Assignment of
Inventions Agreement constitute the entire agreement between the parties hereto
and supersedes all prior agreements, understandings and arrangements, oral or
written, between the parties hereto with respect to the subject matter hereof.
No agreement or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made either party which are not
expressly set forth in this Agreement.

     

    (e) Neither
this Agreement nor any right or interest hereunder shall be assignable or
transferable by the Employee, his beneficiaries or legal representatives, except
by will or by the laws of descent and distribution. This Agreement shall inure
to the benefit of and be enforceable by the Employee’s legal personal
representative.

     

    (f) The
provisions of the Proprietary Information, Non-Competition and Agreement of
Inventions Agreement attached hereto as Exhibit A shall
survive the recession or termination, for any reason, of this Agreement, and
shall survive the termination of the Employee’s employment with the
Company.

     

    (g) The
section headings contained herein are for reference purposes only and shall not
in any way affect the meaning or interpretation of this Agreement. All
references in the masculine form include the feminine and vice
versa.

     

    (h) The
parties agree that this Agreement constitutes, among others, notification in
accordance with the Notice to Employees (Employment Terms) Law, 2002. Nothing in
this agreement shall derogate from the Employee’s rights according to applicable
law.

     

    IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officer and the Employee has executed this Agreement as of April
4, 2006.

     

    
      	
              Company:

            	 	 	
              Employee:

            
	
              BIOCANCELL
      THERAPEUTICS LTD.

              By:
      Avraham Hochberg, Amir Hasidim

              Title:
      Chairman, CFO

            	 	 	
               

              Name:
      Avi Barak

            
	
               

              /s/
      Dr. A. Hochberg

            	 	 	
               

              /s/
      Avi Barak

            
	
              

              Signature:

               

              Parent:

            	 	 	
              

              Signature

            

    

     

    
      	
              BIOCANCELL
      THERAPEUTICS, INC.

              By:
      Avraham Hochberg, Amir Hasidim

              Title:
      Chairman, CFO

            	 	 	 
	
               

              /s/
      Dr. A. Hochberg

            	 	 	 
	
              

              Signature:

            	 	 	
            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    EXHIBIT A

     

    EMPLOYEE PROPRIETARY INFORMATION, NON-COMPETITION AND INVENTIONS AGREEMENT

     

    I
acknowledge that as a result of my employment, I may develop, receive, or
otherwise have access to confidential or proprietary information, which is of
value to BioCancell Therapeutics Ltd. and BioCancell Therapeutics, Inc.
(together with any affiliate, parent company or subsidiary, the “Company”). I
therefore agree, as a condition of my employment, as follows:

     

    1. Nondisclosure.

     

    1.1 Recognition of Company’s
Rights; Nondisclosure. At all
times during my employment and thereafter, I will hold in strictest confidence
and will not disclose, use, lecture upon or publish any of the Company’s
Proprietary Information (defined below), except as such disclosure, use or
publication may be required in connection with my work for the Company, or
unless an officer of the Company expressly authorizes such in writing. I will
obtain the Company’s written approval before publishing or submitting for
publication any material (written, verbal, or otherwise) that relates to my work
at the Company and/or incorporates any Company’s Proprietary Information. I
hereby assign to the Company, without any further royalty or payment, any rights
I may have or acquire in such Proprietary Information and recognize that all
Proprietary Information shall be the sole properly of the Company and its
assigns.

     

    1.2 Proprietary
Information. The
term “Proprietary Information” shall
mean any and all confidential and/or proprietary knowledge, data or information
of the Company. By way of illustration but not limitation, “Proprietary
Information”
includes (a) trade secrets, inventions, mask works, ideas, processes, formulas,
source and object codes, data, programs, other works of authorship, know-how,
improvements, discoveries, developments, designs and techniques including such
developed by me during my employment in the Company’s field of business,
research or development, (excluding inventions not assignable under Section 2.5,
hereinafter collectively referred to as “Inventions”); and
(b) information regarding plans for research, development, new products,
marketing and selling, business plans, budgets and unpublished financial
statements, licenses, prices, and costs, suppliers and customers; and (c)
information regarding the skills and compensation of other employees of the
Company. Notwithstanding the foregoing, it is understood that, at all such
times, I am free to use information which is generally known in the trade or
industry, which is not gained as result of a breach of this Agreement, to
whatever extent and in whichever way I wish.

     

    1.3 Third Party
Information. I
understand, in addition, that the Company has received and in the future
will receive from third parties confidential or proprietary information
(“Third Party Information”) subject
to a duty on the Company’s part to maintain the confidentiality of such
information and to use it only for certain limited purposes. During the term of
my employment and thereafter, I will hold Third Party information in the
strictest confidence and will not disclose to anyone (other than Company
personnel who need to know such Information in connection with their work for
the Company) or use, except in connection with my work for the Company, Third
Party Information unless expressly authorized by an officer of the Company in
writing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4 No Improper Use of
Information of Prior Employers and Others. During my employment
with the Company, I will not improperly use or disclose any confidential
information or trade secrets, if any, of any former employer or any other person
to whom I have an obligation of confidentiality, and I will not bring onto
the premises of the Company any unpublished documents or any property belonging
to any former employer or any other person to whom I have an obligation of
confidentiality unless consented to in writing by that former employer or
person.

     

    2. Assignment of
Inventions.

     

    2.1 Proprietary
Rights. The
term “Proprietary Rights” shall
mean all trade secret, patent, copyright, mask work and other intellectual
property rights throughout the world.

     

    2.2 Prior
Inventions. I
hereby confirm that all rights that I may have in any and all Inventions, are in
the sole ownership of the Company. I hereby transfer and assign in whole to the
Company any and all of my rights, title and interest in any and all Inventions.
If ever any doubt shall arise as to the Company’s rights or title in the
Property Rights and it shall be asserted that I, allegedly, am the owner of any
such rights or title, then I hereby irrevocably transfer and assign in whole to
the Company without any further royalty or payment any and all of my rights,
title and interest in any and all Inventions I have attached hereto as
Schedule
A, a
complete list of all inventions to which I claim ownership (the “Prior Inventions”) and
that I desire to remove from the operation of this Agreement, and I acknowledge
and agree that such list is complete. If no such list is attached to this
Agreement, I represent that I have no such Inventions at the time of signing
this Agreements. The Prior Inventions, if any, patented or unpatented, are
excluded from the scope of this Agreement. If, in the course of my employment
with the Company, I incorporate a Prior Invention into a Company product,
process or machine, the Company is hereby granted and shall have a nonexclusive,
royalty-free, irrevocable, perpetual, worldwide license (with rights to
sublicense through multiple tiers of sublicensees) to make, have made, modify,
use and sell such Prior Invention. Notwithstanding the foregoing, I agree that I
will not incorporate, or permit to be incorporated, Prior Inventions in any
Company Inventions without the Company’s prior written consent.

     

    2.3 Disclosure of
Inventions. I will
promptly disclose in writing to the Company all Inventions, made or discovered
or conceived or reduced to practice or developed by me, either alone or jointly
with others, during the term of my employment. I will also disclose to the
Company all Inventions made, discovered, conceived, reduced to practice, or
developed by me within six (6)
months
after the termination of my employment with the Company which resulted, in whole
or in part, from my prior employment by the Company and related to the Company’s
business. Such disclosures shall be received by the Company in confidence (to
the extent such Inventions are not assigned to the Company pursuant to this
Agreement.

     

    2.4 Assignment of
Inventions. Subject
to Sections 2.5, and 2.6, I hereby assign and agree to assign in the future
(when any such Inventions or Proprietary Rights are first reduced to practice or
first fixed in a tangible medium, as applicable) to the Company all my right,
title and interest in and to any and all Inventions (and all Proprietary Rights
with respect thereto) whether or not patentable or registrable under copyright
or similar statutes, made or conceived or reduced to practice or learned by me,
either alone or jointly with others, during the period of my employment with the
Company. Inventions assigned to the Company, or to a third party as directed by
the Company pursuant to this Section 2, are hereinafter referred to as “Company
Inventions.”

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.5 Nonassignable
Inventions. This
Agreement will not be deemed to require assignment of any invention which was
developed entirely on my own time without using the Company’s equipment,
supplies, facilities, or Proprietary Information and neither related to the
Company’s actual business, research or development, nor resulted from work
performed by me for the Company.

     

    2.6 Government or Third
Party. I also
agree to assign all my right, title and interest in and to any particular
Company Invention to any third party, including without limitation government
agency, as directed by the Company.

     

    2.7 Works Made for
Hire. I
acknowledge that all original works of authorship which are made by me (solely
or jointly with others) within the scope of my employment and which are
protectable by copyright are the sole property of the Company pursuant to
applicable copyright law.

     

    2.8 Assignment or Waiver of
Moral Rights. Any
assignment of copyright hereunder (and any ownership of a copyright as a work
made for hire) includes all rights of paternity, integrity, disclosure and
withdrawal and any other rights that may be known as or referred to as “moral
rights” (collectively “Moral Rights”). To the extent such Moral Rights cannot be
assigned under applicable law and to the extent the following is allowed by the
laws in the various countries where Moral Rights exist, I hereby waive such
Moral Rights and consent to any action of the Company that would violate such
Moral Rights in the absence of such consent.

     

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

     

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

     

    2.10 For the
removal of any doubt, it is hereby clarified that the provisions contained in
Sections 2.2, 2.3 and 2.4 above will apply also to any “Service Inventions” as
defined in the Israeli Patent Law, 1967 (the “Patent Law”).
However, in no event will such Service Invention become the property of the
Employee and the provisions contained in Section 132(b) of the Patent Law shall
not apply unless the Company provides in writing otherwise.
The Employee will not be entitled to royalties or other payment with regard to
any Prior Inventions, Company Inventions, Service Inventions or any of the
intellectual property rights set forth above, including any commercialization of
such Prior Inventions, Company Inventions, Service Inventions or other
intellectual property rights.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Records. I agree
to keep and
maintain adequate and current records (in the form of notes, sketches, drawings
and in any other form that may be required by the Company) of all Proprietary
Information developed by me and all Inventions made by me during the period of
my employment at the Company, which records shall be available to and remain the
sole property of the Company at all times.

     

    4. Competitive
Activities. I agree
that, during the period of my employment by the Company and for a period of one
(1) year thereafter. I will not, directly or indirectly, engage in any
employment or business activity, or hold an interest in any business, which is
competitive with the business of the Company; provided, however, that I may
purchase or otherwise acquire up to (but not more than) one percent (1%) of any
class of securities of any enterprise (but without otherwise participating in
the activities of such enterprise) if such securities are listed on any national
or regional securities exchange. I further agree that for the period of my
employment by the Company and for a period of one (1) year thereafter, I will
not induce any employee of the Company to leave the employ of the
Company.

     

    5. No Conflicting
Obligation. I
represent that my performance of all the terms of this Agreement and as an
employee of the Company does not and will not breach any agreement to keep in
confidence information acquired by me in confidence or in trust prior to my
employment by the Company. I have not entered into, and I agree I will not enter
into, any agreement either written or oral in conflict herewith.

     

    6. Return of Company
Documents. When I
leave the employ of the Company, I will promptly deliver to the Company any and
all drawings, notes, memoranda, specifications, devices, formulas, and
documents, together with all copies thereof, and any other material containing
or disclosing any Company Inventions, Third Party Information or Proprietary
Information of the Company.

     

    7. Notification
of New Employer. In the event that I leave the employ of the Company, I
hereby consent to the notification of my new employer of my rights and
obligations under this Agreement.

     

    8. General
Provisions.

     

    8.1 Severability. In case
any one or more of the provisions contained in this Agreement shall, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect the other provisions
of this Agreement, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein. If moreover,
any one or more of the provisions contained in this Agreement shall for any
reason be held to be excessively broad as to duration, geographical scope,
activity or subject, it shall be construed by limiting and reducing
it, so as to be enforceable to the extent compatible with the applicable law as
it shall then appear.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.2 Successors and
Assigns. This
Agreement will be binding upon my heirs, executors, administrators and other
legal representatives and will be for the benefit of the Company, its
successors, and its assigns.

     

    8.3 Survival. The
provisions of this Agreement shall survive the termination of my employment and
the assignment of this Agreement by the Company to any successor in interest or
other assignee.

     

    8.4 Waiver. No
waiver by the Company of any breach of this Agreement shall be a waiver of any
preceding or succeeding breach. No waiver by the Company of any right under this
Agreement shall be construed as a waiver of any other right. The Company shall
not be required to give notice to enforce strict adherence to all terms of this
Agreement.

     

    8.5 Entire
Agreement. The
obligations pursuant to Sections 1 and 2 of this Agreement shall apply to any
time during which I was previously employed, or am in the future employed, by
the Company as a consultant if no other agreement governs nondisclosure and
assignment of inventions during such period. This Agreement is the final,
complete and exclusive agreement of the parties with respect to the subject
matter hereof and supersedes and merges all prior discussions or agreements
between us with respect to the subject matter hereof. No modification of or
amendment to this Agreement, nor any waiver of any rights under this Agreement,
will be effective unless in writing and signed by both parties hereto. Any
subsequent change or changes in my duties, salary or compensation will not
affect the validity or scope of this Agreement.

     

    8.6 Governing
Law. This
Agreement shall be governed by, and construed in accordance with the laws of the
State of Israel, without giving effect to the rules respecting
conflict-of-law.

     

    8.7 Injunction. I
hereby agree that it would be difficult to measure damage to the Company from
any breach of the promises set forth in Sections 1, 2 and 4 hereof, and that
injury to the Company from any such breach would be impossible to calculate, and
that pecuniary damages would therefore be an inadequate remedy for any such
breach. Accordingly, I hereby agree that if I breach any provision of Section 1,
2 and 4 hereof, the Company will be entitled, in addition to all other remedies
it may have, to an injunction or other appropriate orders to restrain any such
breach by me without showing or proving any actual damage sustained by the
Company.

     

    This
Agreement shall be effective as of my first day of employment with the
Company.

     

    I HAVE
READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.

     

    ACCEPTED
AND AGREED TO:

     

    
      	
              BIOCANCELL
      THERAPEUTICS LTD.

            	 	
              Name:
      Avi Barak

            
	
              By:
      Avraham Hochberg, Amir Hasidim

            	 	 
	
              Title:
      Chairman, CFO

            	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	 
	
              /s/
      Avraham
      Hochberg

            	 	 	
              /s/
      Avi Barak

            
	
              

              Signature:

            	 	 	
              

              Signature

            

    

     

    
      	
              BIOCANCELL
      THERAPEUTICS, INC.

              By:
      Avraham Hochberg, Amir Hasidim

              Title:
      Chairman, CFO

            	 	 	 
	
               

              /s/ Avraham
      Hochberg

            	 	 	 
	
              

              Signature:

            	 	 	
            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    AMENDMENT TO EMPLOYMENT
AGREEMENT

     

    THIS
AMENDMENT TO EMPLOYMENT AGREEMENT (the “Agreement”) is
entered into as of the date set forth below, by and between BIOCANCELL
THERAPEUTICS, INC., a corporation organized under the laws of the State of
Delaware (the “Parent”),
BIOCANCELL THERAPEUTICS LTD., a company organized under the laws of the State of
Israel and a fully owned subsidiary of the Parent, (the “Company” and
together with Parent, the “Companies”), and
Avi Barak, Israel Identity Number 030557953 of Tidhar 11, Ramat Gan, Israel,
Fax: 03-5745871, Email: avi.barak@biocancell.com (the
“Employee”).

     

    WHEREAS,
the Parent, the Company and the Employee have executed an Employment Agreement
effective as of January 1, 2006 (the “Agreement”);

     

    WHEREAS,
the parties wish to amend the Agreement on the terms and conditions hereinafter
set forth.

     

    NOW,
THEREFORE, the parties agree as follows:

     

    1. This
Amendment constitutes an integral part of the Agreement and sets forth the
amendment agreed upon by the parties thereto. Any capitalized term not defined
herein shall have the same meaning ascribed to it in the SPA.

     

    2. The first
paragraph of Section 7(a) is hereby amended and restated in its entirety as
follows:

     

    “(a) The
term of employment under this Agreement shall commence on the Commencement Date
and will continue for a period of three (3) years or until mutually agreed
to by the parties or terminated under the following circumstances:”

     

    3. In the
event of any inconsistency or conflicts between the provisions of the Agreement
the provisions of this Amendment or any other document between the parties, this
Amendment shall prevail and govern. Except as specifically amended herein, all
terms, definitions and conditions of the Agreement and related exhibits and
schedules remain in full force and effect.

     

    4. This
Amendment shall be construed in accordance with, and governed in all respects
by, the internal laws of the State of Israel (without giving effect to
principles of conflicts of laws). Each party to this Amendment consents to the
exclusive jurisdiction and venue of the courts of District of Tel Aviv-Jaffa in
the State of Israel.

     

    IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officer and the Employee has executed this Agreement as of May
17, 2006.

     

    
      	
              Company:

            	 	 	
              Employee:

            
	
              BIOCANCELL
      THERAPEUTICS LTD.

              By:
      Avraham Hochberg, Amir Hasidim

              Title:
      Chairman, CFO

            	 	 	
               

              Name:
      Avi Barak

            
	
               

              /s/
      Dr. A. Hochberg

            	 	 	
               

              /s/
      Avi Barak

            
	
              

              Signature:

               

              Parent:

            	 	 	
              

              Signature

            

    

     

      	
              BIOCANCELL
      THERAPEUTICS, INC.

              By:
      Avraham Hochberg, Amir Hasidim

              Title:
      Chairman, CFO

            	 	 	 
	
               

              /s/
      Dr. A. Hochberg

            	 	 	 
	
              

              Signature:

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