Document:

RESEARCH
      COLLABORATION AGREEMENT

    

    THIS
      RESEARCH COLLABORATION AGREEMENT (this
      “Agreement”) is made and entered into effective as of January 31, 2006 (the
“Effective Date”), by and between Rosetta Genomics, Ltd., a private company
      registered under the laws of the State of Israel (“Rosetta”), and Isis
      Pharmaceuticals, Inc., a Delaware corporation (“Isis”). Rosetta and Isis each
      may be referred to herein individually as a “Party,” or collectively as the
“Parties.”

    

    WHEREAS,
      Isis
      and Rosetta are interested in entering into a collaboration to identify
      micro-RNAs which are responsible for the progression of hepatocellular carcinoma
      (“HCC”) and to discover and develop synthetic antisense drugs for the treatment
      of HCC which modulate the activity of such micro-RNAs;

    

    NOW,
      THEREFORE,
      the
      Parties do hereby agree as follows:

    

    ARTICLE
      1

    DEFINITIONS

     

    Capitalized
      terms used in this Agreement and not otherwise defined herein have the meanings
      set forth in Appendix I.

     

    ARTICLE
      2

    RESEARCH
      AND COLLABORATION

     

    Section
      2.1  Scope
      of Collaboration.

     

    2.1.1  Collaboration
      Field.
      The
      Parties will collaborate to identify which micro-RNA are involved in HCC. The
      Parties will also collaborate to identify, test, optimize and develop synthetic
      antisense drugs for the treatment of HCC which modulate the activity of
      Collaboration Micro-RNA. At any time during the Term or during an Extended
      Term,
      the Parties may agree in writing to expand the scope of the
      Collaboration.

     

    2.1.2  Research
      Studies.
      The
      research studies to be performed by each Party during Collaboration Stage 1
      are
      listed in Appendix 2. The studies to be performed in subsequent Collaboration
      Stages will be determined by mutual written agreement of the Parties prior
      to
      the start of such Collaboration Stage.

     

    2.1.3  Collaboration
      Term.
      The
      term of the Collaboration will begin on the Effective Date and will continue
      for
      a term of two years (the “Collaboration Term”). The Collaboration Term may be
      extended for additional one year periods upon written approvals of both
      Parties.

     

    Section
      2.2  Research
      Management.

     

    During
      the Collaboration Term, a Joint Research Committee (JRC), composed of equal
      voting members from each Party, will oversee the Collaboration. The JRC will
      prioritize the research activities, review the progress of the Collaboration
      studies and make changes as it deems necessary to accomplish the Collaboration
      goals. The JRC will also determine the filing, prosecution, maintenance and
      cost
      allocation for the filing of patents covering Joint Inventions.

    

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

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      2.3  Research
      Costs.
      Unless
      otherwise agreed in writing by the Parties, each Party shall pay its own costs
      associated with its research activities in the course of the Collaboration
      under
      this Agreement.

     

    Section
      2.4  Grant
      Application.
      The
      Parties will mutually file a request for a grant (to the BIRD Foundation or
      any
      other funding agency) for Collaboration Stages 1 and 2. Rosetta, with assistance
      from Isis, will be responsible for liaising with such foundation or
      agency.

     

    ARTICLE
      3

    INVENTIONS
      AND INTELLECTUAL PROPERTY

     

    Section
      3.1  Inventions
      resulting from the Collaboration

     

    3.1.1  Inventorship
      of all inventions and discoveries made in the course of performance of the
      Collaboration (“Collaboration Inventions”) will be determined in accordance with
      the patent laws of the United States of America. Isis will own any Collaboration
      Inventions invented solely by its employees and/or consultants (“Isis
      Inventions”) and Rosetta will own any Collaboration Inventions invented solely
      by its employees and/or consultants (“Rosetta Inventions”). Collaboration
      Inventions invented jointly by employees (and/or consultants) of both Parties
      will be jointly owned by the Parties.

     

    3.1.2  Notwithstanding
      Section 3.1.1, in the case of Collaboration Inventions which are directed to
      methods of treating a disease by modulating the activity of a Collaboration
      MicroRNA (“Collaboration Method”), the Parties shall each own an equal and
      undivided interest in such Collaboration Method, and any Patents to the extent
      claiming such Collaboration Method, regardless of whether the invention was
      made
      jointly or solely by one Party. The Parties shall use reasonable efforts to
      file
      and prosecute any such jointly owned claims separately from any Collaboration
      Inventions which are not jointly owned.

     

    3.1.3  Isis
      will
      be responsible for the timely preparation, filing, prosecution and maintenance
      of all Patents, including any costs related thereto, claiming Isis Inventions,
      in both domestic and foreign jurisdictions.

     

    3.1.4  Rosetta
      will be responsible for the timely preparation, filing, prosecution and
      maintenance of all Patents, including any costs related thereto, claiming
      Rosetta Inventions, in both domestic and foreign jurisdictions.

     

    3.1.5  Patents
      on Jointly Owned Collaboration Inventions.

     

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

        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    (a)  For
      each
      jointly owned Collaboration Invention (including but not limited to
      Collaboration Methods), the Parties, through their interactions on the JRC,
      will
      designate one Party (the “Responsible Party”) to take primary responsibility for
      the timely preparation, filing, prosecution and maintenance of all Patents
      claiming such jointly owned Collaboration Invention (“Joint Patent”), and the
      Parties will each pay [***]% of any costs related thereto, in both domestic
      and
      foreign jurisdictions agreed to by the Parties. The Responsible Party will
      submit all such Joint Patent documents, and drafts of any planned responses,
      to
      the other Party for review and comment prior to the filing of such documents,
      with at least fifteen (15) days notice whenever possible. The other Party will
      cooperate fully with the Responsible Party in such efforts and will provide
      all
      of its materials and documents necessary for the preparation, filing,
      prosecution and maintenance of such Joint Patents by the Responsible
      Party.

     

    (b)  If
      either
      Party does not elect to support the filing, prosecution or maintenance of any
      Joint Patent in any jurisdiction (the “Non-Elected Jurisdiction”), such Party
      (the “Non-Electing Party”) will notify the other Party (the “Electing Party”),
      in the case of patent filings, at least thirty (30) days prior to and, in the
      case of continued prosecution and maintenance, at least sixty (60) days prior
      to
      taking or not taking any action which would result in abandonment, withdrawal
      or
      lapse of such Joint Patents or the inability to protect the underlying
      Collaboration Invention. The Electing Party will then have the right to prepare,
      file, prosecute and maintain such Joint Patent at its own expense in such
      Non-Elected Jurisdiction and the Non-Electing Party will cooperate fully with
      the Electing Party in such efforts, and will provide all of its materials and
      documents necessary for the preparation, filing, prosecution and maintenance
      of
      such Patents by the Electing Party at the Electing Party’ expense. Further, only
      if the Electing Party elects to and does continue to prepare, file, prosecute
      and maintain such Joint Patent in the Non-Elected Jurisdiction, the Non-Electing
      Party will assign its rights in the Joint Patent solely in the Non-Elected
      Jurisdiction to the Electing Party and will cease to have a license to practice
      under such Joint Patent in the Non-Elected Jurisdiction. Other than explicitly
      set forth in this section 3.1.5 (b) all rights of the Non-Electing Party in
      the
      Joint Patent in jurisdictions other than the Non-Elected Jurisdiction will
      remain in full force and are not affected by the Non-Electing Party’s decision
      not to support the filing, prosecution or maintenance of any Joint Patent in
      the
      Non-Elected Jurisdiction.

     

    3.1.6  Subject
      to Section 3.1.5(b) above, unless subject to inclusion in any co-development
      arrangement or exclusive license granted to the other Party or other arrangement
      as provided below in Article 4 hereof, it is understood that except as otherwise
      provided in this Agreement or as the Parties may otherwise agree in writing,
      subject only to any dominant patent rights of the other Party which would
      prevent such use, neither Party shall have any obligation to account to the
      other Party for profits, or to obtain any approval of the other Party to
      license, assign, mortgage or exploit a jointly owned Collaboration Invention
      (including but not limited to Collaboration Methods) by reason of joint
      ownership of any such Collaboration Invention, and may otherwise undertake
      all
      activities a sole owner might undertake with respect to such inventions without
      the consent of and without accounting to the other joint owner, and each Party
      hereby waives any right it may have under the laws of any jurisdiction to
      require such consent or accounting.

     

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

        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    ARTICLE
      4

    OPTIONS
      TO ACQUIRE LICENSES

     

    Section
      4.1  Collaboration
      Product Development.
      At the
      end of Collaboration Stage 1, and on a Collaboration Product-by-Collaboration
      Product basis, the Parties will meet, through the JRC, to discuss the further
      development and commercialization of such Collaboration Product. At such time,
      and subject to the principles set forth below in Sections 4.1.1 through 4.1.4,
      the Parties shall, within sixty (60) days of the end of Collaboration Stage
      1
      (the “Election Period”), elect to (i) negotiate and enter into a definitive
      co-development agreement for such Collaboration Product, (ii) negotiate and
      enter into a definitive license agreement where one Party (the “Developing
      Party”) is responsible for the development of such Collaboration Product, or
      (iii) seek a third party to develop such Collaboration Product.

     

    4.1.1  Co-development
      of Collaboration Product.
      If the
      Parties agree to jointly develop the Collaboration Product, the Parties will
      enter into a definitive co-development agreement containing reasonable and
      customary terms and provisions to be negotiated in good faith by the Parties
      within ninety (90) days of the election of option (i) above, under which they
      shall share the responsibility for, and the costs of, such development. Unless
      otherwise agreed by the Parties in the definitive co-development agreement,
      each
      Party will pay [***]% of the budgeted development costs of the Collaboration
      Product during all Collaboration Stages and each Party will receive [***]%
      of
      the revenue from the commercialization or licensing of such Collaboration
      Product.

     

    4.1.2  Rosetta
      Development of Collaboration Product.
      If Isis
      does not elect to negotiate a co-development arrangement within the Election
      Period and Rosetta desires to take the lead in developing the Collaboration
      Product, then the Parties will promptly negotiate and execute a definitive
      license agreement with Rosetta having sole rights to develop the Collaboration
      Product for use in the Licensed Field, alone or in conjunction with a third
      party, and Isis receiving a milestone and royalty stream, subject to the
      principles set forth below in Appendix 3 and industry norms. In the event that
      a
      Collaboration Product being actively developed or commercialized under such
      license has a human therapeutic effect for indications outside the Licensed
      Field, then (a) the license and payment obligations under such license with
      respect to such Collaboration Products shall extend to such other human
      therapeutic uses, and (b) accordingly, Isis shall not have the right to develop,
      make, use, sell, license or otherwise exploit such compound for other human
      therapeutic uses.

     

    4.1.3  Isis
      Development of Collaboration Product.
      If
      Rosetta does not elect to negotiate a co-development arrangement within the
      Election Period and Isis desires to take the lead in developing the
      Collaboration Product, then the Parties will promptly negotiate and execute
      a
      definitive license agreement with Isis having sole rights to develop the
      Collaboration Product for use in the Licensed Field, alone or in [***], subject
      to the principles set forth in Appendix 3 and industry norms. In the event
      that
      a Collaboration Product being actively developed or commercialized under such
      license has a human therapeutic effect for indications outside the Licensed
      Field, then (a) the license and payment obligations under such license with
      respect to such Collaboration Products shall extend to such other human
      therapeutic uses, and (b) accordingly, Rosetta shall not have the right to
      develop, make, use, sell, license or otherwise exploit such compound for other
      human therapeutic uses.

     

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

        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    4.1.4  Third
      Party Development of Collaboration Product.
      If
      neither Party elects to continue to develop the Collaboration Product pursuant
      to Section 4.1.1, 4.1.2 or 4.1.3 above, the Parties will seek a third party
      to
      develop the Collaboration Product, with roles in such negotiation to be as
      agreed by the Parties, in which case revenues will be allocated between the
      Parties on terms to be agreed, such terms taking into account, inter
      alia,
      the
      financial and scientific contributions and intellectual property position of
      each Party as they relate to the Collaboration Product.

     

    Section
      4.2  If
      a
      definitive license agreement or a co-development agreement on a Collaboration
      Product is entered into other than at the end of Collaboration Stage 1, the
      Parties will negotiate reasonable royalties and/or profit sharing taking into
      account relative contributions to the development of the Collaboration Product
      as of such time pursuant to the Collaboration and intellectual property
      positions of the Parties as they relate to the Collaboration
      Product.

     

    ARTICLE
      5

    CONFIDENTIALITY

     

    Section
      5.1  Disclosure
      and Use Restriction.
      Except
      as expressly provided herein, the Parties agree that, for the Term and for
      five
      (5) years thereafter, each Party will keep completely confidential and will
      not
      publish, submit for publication or otherwise disclose, and will not use for
      any
      purpose except for the purposes contemplated by this Agreement, any Confidential
      Information received from the other Party.

     

    5.1.1  Authorized
      Disclosure.
      Each
      Party may disclose Confidential Information of the other Party to the extent
      that such disclosure is:

     

    (a)  
      made in
      response to a valid order of a court of competent jurisdiction; provided,
      however,
      that
      such Party will first have given notice to such other Party and given such
      other
      Party a reasonable opportunity to take appropriate action; provided,
      further,
      that,
      the Confidential Information disclosed in response to such court or governmental
      order will be limited to that information which is legally required to be
      disclosed in response to such court or governmental order, as determined in
      good
      faith by counsel to the Party that is obligated to disclose Confidential
      Information pursuant to such order;

     

    (b)  otherwise
      required by law or regulation; provided,
      however,
      (i)
      that the Party that is so required will provide such other Party with notice
      of
      such disclosure in advance thereof to the extent practicable and (ii) that
      disclosure to patent offices is only permitted to prosecute or maintain a patent
      as contemplated by Article 3 of this Agreement;

     

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

        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    (c)  made
      by
      such Party to a regulatory authority as necessary for the development or
      commercialization of a Collaboration Product in accordance with the terms of
      this Agreement or any subsequent agreement between the Parties or as required
      by
      applicable securities laws and regulations; provided,
      however,
      that
      reasonable measures will be taken to assure confidential treatment of such
      information;

     

    (d)  made
      by
      such Party, in connection with the performance of this Agreement, to the
      sublicensees, directors, officers, employees, consultants, representatives
      or
      agents of such Party, in each case on a need to know basis and solely for use
      of
      such information as permitted in this Agreement, and provided that each
      individual and entity to whom such Confidential Information is disclosed is
      bound in writing to non-use and non-disclosure obligations at least as
      restrictive as those set forth in this Article 5; or

     

    (e)  made
      by
      such Party to existing or potential acquirers, existing or potential
      pharmaceutical collaborators, investment bankers, existing or potential
      investors, merger candidates, partners, venture capital firms or other financial
      institutions or investors for purposes of obtaining financing or bona fide
      potential strategic partners; in each case on a need to know basis, provided
      that each individual and entity to whom such Confidential Information is
      disclosed is bound in writing to non-use and non-disclosure obligations at
      least
      as restrictive as those set forth in this Article 5.

     

    Section
      5.2  Press
      Releases.
      Press
      releases or other similar public communication by either Party relating to
      this
      Agreement will be approved in advance by the other Party, which approval will
      not be unreasonably withheld, conditioned or delayed. The foregoing
      notwithstanding, communications required by applicable law, and disclosures
      of
      information for which consent has previously been obtained, will not require
      advance approval, but will be provided to the other Party as soon as practicable
      after the release or communication thereof.

     

    Section
      5.3  Publication.
      At
      least 30 days prior to submission of any material related to the research or
      development activities hereunder for publication or presentation the submitting
      Party will provide to the other Party a draft of such material for its review
      and comment. The receiving Party will provide any comments to the submitting
      Party within 30 days of receipt of such materials, and any failure to provide
      comments with such time period will be deemed to be acceptance of such draft.
      A
      Party may request that the publication or presentation be deferred for up to
      an
      additional sixty (60) days if it is necessary in order to seek Patent or other
      appropriate protection for any invention (including a Collaboration Invention)
      disclosed in the publication or presentation. Notwithstanding anything in this
      Agreement to the contrary, either Party will have the absolute right to require
      deletion of any of its Confidential Information, and the Party seeking to
      publish or present will delete such information upon written request from the
      other party.

     

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

        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    ARTICLE
      6

    TERM
      AND TERMINATION

     

    Section
      6.1  Term.
      Unless
      earlier terminated in accordance with the provisions of this Article 6, the
      term
      of this Agreement (the “Term”) commences upon the Effective Date and will
      continue until one year following the expiration of the Collaboration
      Term.

     

    Section
      6.2  Termination.
      Either
      Party may terminate this Agreement upon 60 days’ written notice to the other
      Party for any reason. In the event of such termination prior to the end of
      Collaboration Stage 1, (a) subject to any licenses, co-development, or other
      collaboration agreements existing as of the date of the termination, and (b)
      provided such termination did not occur as the result of the breach of this
      agreement by the non-terminating Party, which breach was not cured within sixty
      (60) days following notice thereof to the allegedly breaching party, the
      non-terminating Party shall have the right to obtain the license as provided
      in
      Section 4.1.2 or 4.1.3, as relevant, from the termination Party with respect
      to
      any or all Collaboration Products then in existence.

     

    Section
      6.3  Consequences
      of Termination.

     

    6.3.1  Return
      of Information and Materials.
      Upon
      termination of this Agreement for any reason, each Party will return all data,
      files, records, and other materials in its possession or control comprising
      the
      other Party’s Confidential Information.

     

    Section
      6.4  Accrued
      rights; Surviving Obligations.

     

    6.4.1  Accrued
      Rights.
      Termination or expiration of this Agreement for any reason will be without
      prejudice to any rights (including (i) any rights to financial compensation,
      or
      (ii) licenses or other rights granted pursuant to Article 3 or Article 4) that
      have or will accrue to the benefit of a Party prior to such termination or
      expiration.

     

    6.4.2 Survival
      Articles
      5, 8, 9 and 10, and Sections 3.1, 4.1 and 6.4 of this Agreement will survive
      termination or expiration of this Agreement for any reason.

     

    ARTICLE
      7

    RIGHTS
      IN BANKRUPTCY

     

    Section
      7.1  Rights
      in Bankruptcy.
      All
      rights and licenses granted under or pursuant to this Agreement by Isis or
      Rosetta are, and will otherwise be deemed to be, for purposes of Section 365(n)
      of the United States Bankruptcy Code, licenses of rights to “intellectual
      property” as defined under Section 101 of the United States Bankruptcy Code. The
      Parties agree that the Parties, as licensees of such rights under this
      Agreement, will retain and may fully exercise all of their rights and elections
      under the United States Bankruptcy Code. The Parties further agree that, in
      the
      event of the commencement of a bankruptcy proceeding by or against a Party
      under
      the United States Bankruptcy code, the Party hereto that is not a Party to
      such
      proceeding will be entitled to a complete duplicate of (or complete access
      to,
      as appropriate) any such intellectual property and all embodiments of such
      intellectual property, which, if not already in the non-subject Party’s
      possession, will be promptly delivered to it (a) upon any such commencement
      of a
      bankruptcy proceeding upon the non-subject Party’s written request therefor,
      unless the Party subject to such proceeding elects to continue to perform all
      of
      its obligations under this Agreement or (b) if not delivered under clause (a)
      above, following the rejection of this Agreement by or on behalf of the Party
      subject to such proceeding upon written request therefor by the non-subject
      Party.

     

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

        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    ARTICLE
      8

    INDEMNIFICATION

     

    Section
      8.1  Indemnification.

     

    8.1.1  Each
      Party (the “Indemnifying Party”) will indemnify the other Party and each of its
      directors, officers, employees and agents (the “Indemnified Parties”) and defend
      and hold each of them harmless, from and against any and all losses, damages,
      liabilities, costs and expenses (including reasonable attorneys’ fees and
      expenses) arising from or occurring as a result of any and all liability suits,
      investigations, claims or demands by third party (collectively, “Losses”) to the
      extent arising from or occurring as a result of or in connection with (a) the
      gross negligence or willful misconduct (including non-compliance with any
      applicable laws and regulations) on the part of an Indemnifying Party, (b)
      breach by the Indemnifying Party of any representations, warranties, or
      covenants set forth in this Agreement, or (c) any claim for personal injury
      to a
      third party arising from occurrences on the premises of the Indemnifying
      Party.

     

    8.1.2  For
      all
      Losses other than as described in Section 8.1.1, the Indemnifying Party will
      indemnify the Indemnified Parties and defend and hold each of them harmless,
      from and against [***]% of any and all Losses arising from or occurring as
      a
      result of or in connection with the performance by the Indemnifying Party or
      its
      consultants (including any third party collaborators) of any activity
      contemplated by this Agreement.

     

    8.1.3  Notwithstanding
      the foregoing, the Indemnifying Party will have no obligations under this
      Section 8.1 to the extent Losses arise from the (x) gross negligence or willful
      misconduct (including non-compliance with any applicable laws and regulations)
      on the part of an Indemnified Party or (y) breach by the Indemnified Party
      of
      any representations, warranties, or covenants set forth in this
      Agreement.

     

    Section
      8.2  Each
      Party’s agreement to indemnify and hold the other harmless is conditioned upon
      the Indemnified Party (a) providing written notice to the Indemnifying Party
      of
      any claim, demand or action arising out of the indemnified activities within
      thirty (30) days after the Indemnified Party has knowledge of such claim, demand
      or action, (b) permitting the Indemnifying Party to assume full responsibility
      to investigate, prepare for and defend against any such claim or demand, (c)
      assisting the Indemnifying Party, at the Indemnifying Party’s reasonable
      expense, in the investigation of, preparation of and defense of any such claim
      or demand and (d) not compromising or settling such claim or demand without
      the
      Indemnifying Party’s prior written consent; provided,
      however,
      that,
      if the Indemnified Party fails to promptly notify the Indemnifying Party
      pursuant to the foregoing clause (a), the Indemnifying Party will only be
      relieved of its indemnification obligation to the extent prejudiced by such
      failure.

     

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

        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    ARTICLE
      9

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      9.1  Representations,
      Warranties and Covenants.
      Each
      Party hereby represents, warrants and covenants to the other Party as of the
      Effective Date as follows:

     

    9.1.1  Corporate
      Authority.
      Such
      Party (a) has the power and authority and the legal right to enter into this
      Agreement and perform its obligations hereunder and (b) has taken all necessary
      action on its part required to authorize the execution and delivery of this
      Agreement and the performance of its obligations hereunder. This Agreement
      has
      been duly executed and delivered on behalf of such Party and constitutes a
      legal, valid and binding obligation of such Party and is enforceable against
      it
      in accordance with its terms subject to the effects of bankruptcy, insolvency
      or
      other laws of general application affecting the enforcement of creditor rights
      and judicial principles affecting the availability of specific performance
      and
      general principles of equity, whether enforceability is considered a proceeding
      at law or equity.

     

    9.1.2  Consents,
      Approvals, etc.
      All
      necessary consents, approvals and authorizations of any regulatory authority
      and
      other parties required to be obtained by such Party in connection with the
      execution and delivery of this Agreement and the performance of its obligations
      hereunder have been obtained.

     

    9.1.3  Conflicts.
      The
      execution and delivery of this Agreement and the performance of such Party’s
      obligations hereunder (a) do not conflict with or violate any requirement of
      applicable law or any provision of the articles of incorporation, bylaws or
      any
      similar instrument of such Party, as applicable, in any material way and (b)
      do
      not conflict with, violate, or breach or constitute a default or require any
      consent not already obtained under, any contractual obligation or court or
      administrative order by which such Party is bound.

     

    9.1.4  Applicable
      Laws. The Parties will comply with all applicable laws and regulations in
      connection with the performance of this Agreement.

     

    Section
      9.2  DISCLAIMER
      OF WARRANTY.
      EXCEPT
      FOR THE EXPRESS WARRANTIES SET FORTH IN Section 9 .1, ROSETTA AND ISIS MAKE
      NO
      REPRESENTATIONS AND GRANT NO WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT
      OR
      BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND ROSETTA AND ISIS EACH
      SPECIFICALLY DISCLAIM ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS
      OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR
      A
      PARTICULAR USE OR PURPOSE OR ANY WARRANTY AS THE VALIDITY OF ANY PATENTS OR
      THE
      ON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD
      PARTIES.

     

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

        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    ARTICLE
      10

    MISCELLANEOUS

     

    Section
      10.1  Assignment.
      Neither Party will sell, transfer, assign, delegate, pledge or otherwise dispose
      of, whether voluntarily, involuntarily, by operation of law or otherwise, this
      Agreement or any of its rights or duties hereunder without the prior written
      consent of the other Party; provided, however,
      that
      (a) either Party hereto may assign or transfer this Agreement or any of its
      rights or obligations hereunder without the consent of the other Party to any
      third party successor in interest with which it has merged or consolidated
      or to
      which it has assigned or transferred all or substantially all of its assets
      or
      stock to which this Agreement relates if, in any such event, the third party
      assignee, transferee or successor assumes in writing all of the assigning or
      transferring Party’s obligations under this Agreement. Any purported assignment
      or transfer in violation of this Section will be void ab
      initio
      and of
      no force or effect.

     

    Section
      10.2  Severability.
      If any
      provision of this Agreement is held to be illegal, invalid or unenforceable
      by a
      court of competent jurisdiction, such adjudication will not affect or impair,
      in
      whole or in part, the validity, enforceability, or legality of any remaining
      portions of this Agreement. All remaining portions will remain in full force
      and
      effect as if the original Agreement had been executed without the invalidated,
      unenforceable or illegal part.

     

    Section
      10.3  Governing
      Law.
      This
      Agreement will be governed by and construed in accordance with the laws of
      Delaware as applied to agreements among Delaware residents entered into and
      to
      be performed entirely within Delaware.

     

    Section
      10.4  Dispute
      Resolution.

     

    10.4.1  In
      the
      event that a dispute arises between the Parties in the course of conducting
      this
      Agreement, the dispute will be referred to the attention of the Chief Executive
      Officer of Rosetta and the Executive Vice President of Isis (the “Executive
      Officers”). The Executive Officers will meet as soon as reasonably possible
      thereafter and in good faith attempt to resolve such dispute. If, within 30
      days
      after such matter is referred to them, the Executive Officers are unable to
      resolve such dispute, upon mutual written agreement of the Parties, the Parties
      will resolve such dispute by mediation and arbitration in accordance with
      Section 10.4.2.

     

    10.4.2  Mediation
      and Arbitration Proceedings.
      If the
      Parties agree to, or are required by Section 10.4.1 to, pursue arbitration
      proceedings, the Parties will first submit the dispute to a mutually agreed
      mediator. If the mediation fails to resolve the dispute within a further thirty
      (30) day period following the thirty (30) day period specified in Section 10.4.1
      above, then the dispute will be finally resolved by binding arbitration in
      accordance with the Commercial Arbitration Rules of the American Arbitration
      Association (“AAA”). The arbitration will be conducted by a single arbitrator
      experienced in the business and technology which is the subject of this
      Agreement and shall be concluded within six (6) months of the earlier of the
      requirement for arbitration or initiation of arbitration. The place of
      arbitration will be New York, New York. Either Party may apply to the
      arbitrators or to a court for interim injunctive relief until the arbitration
      award is rendered or the dispute, controversy or claim is otherwise
      resolved.

     

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

        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    10.4.3  Costs
      and Expenses.
      Each
      Party will bear its own costs and expenses and attorneys’ fees and equal share
      of the mediators’ and/or arbitrators’ and any administrative fees of mediation
      and/or arbitration. Notwithstanding the foregoing, if a Party has been found
      to
      be in material breach of this Agreement, the breaching Party will be responsible
      for all the costs and expenses of the arbitrators and any administrative fees
      of
      arbitration.

     

    10.4.4  Confidentiality.
      Except
      to the extent necessary to confirm an award or as may be required by law,
      neither a Party nor an arbitrator may disclose the existence, content, or
      results of an arbitration without the prior written consent of both Parties,
      and
      provided that the foregoing will not prevent a Party from confidentially
      disclosing the existence, content and results of the arbitration in confidence
      to its directors, professional advisors, and existing or potential investors
      or
      acquirors, or as required by law or regulation.

     

    10.4.5  Awards.
      The
      arbitrators may award monetary damages and injunctive relief. All awards of
      the
      arbitrators will be final and binding on the Parties, and there will be no
      appeal of any such award and judgment on the arbitration award may be entered
      in
      any court having jurisdiction thereof.

     

    Section
      10.5  Notices.
      All
      notices or other communications that are required or permitted hereunder will
      be
      in writing an delivered personally with acknowledgment of receipt, sent by
      facsimile (and promptly confirmed by personal delivery, registered or certified
      mail or overnight courier as provided herein), sent by nationally-recognized
      overnight courier or sent by registered or certified mail, postage prepaid,
      return receipt requested, addressed as follows:

     

    If
      to
      Rosetta to:

     

    Rosetta
      Genomics, Ltd.

    10
      Plaut
      Street

    Science
      Park

    Box
      4059

    Rehovot,
      Israel

    76076

    Attention:
      Managing Director

    Facsimile:
      011-972-8-948-4766

    

    If
      to
      Isis, to:

    

    Isis
      Pharmaceuticals, Inc.

    1896
      Rutherford Road

    Carlsbad,
      California 92008

    Attention:
      Executive Vice President

    Facsimile:
      (760) 603-4650

    

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

        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    With
      a
      copy to:

    

    Attention:
      General Counsel

    Facsimile:
      (760) 268-4922

    

    or
      to
      such other address as the Party to whom notice is to be given may have furnished
      to the other Party in writing in accordance herewith. Any such communication
      will be deemed to have been given (a) when delivered, if personally delivered,
      (b) on the business day after dispatch, if sent by nationally-recognized
      overnight courier and (c) on the third business day following the date of
      mailing, if sent by mail. It is understood and agreed that this Section 10.5
      is
      not intended to govern the day-today business communications necessary between
      the Parties in performing their duties, in due course, under the terms of this
      Agreement.

    

    Section
      10.6  Entire
      Agreement; Modifications.
      This
      Agreement sets forth and constitutes the entire agreement and understanding
      between the Parties with respect to the subject matter hereof and all prior
      agreements, understandings, promises and representations, whether written or
      oral, with respect thereto are superseded hereby. Each Party confirms that
      it is
      not relying on any representations or warranties of the other Party except
      as
      specifically set forth herein. No amendment, modification, release or discharge
      will be binding upon the Parties unless in writing and duly executed by
      authorized representatives of both Parties.

     

    Section
      10.7  Relationship
      of the Parties.
      It is
      expressly agreed that the Parties will be independent contractors of one another
      and that the relationship between the Parties will not constitute a partnership,
      joint venture or agency.

     

    Section
      10.8  Waiver.
      Any
      term
      or condition of this Agreement may be waived at any time by the Party that
      is
      entitled to the benefit thereof, but no such waiver will be effective unless
      set
      forth in a written instrument duly executed by or on behalf of the Party waiving
      such term or condition. Any such waiver will not be deemed a waiver of any
      other
      right or breach hereunder.

     

    Section
      10.9  Counterparts.
      This Agreement may be executed in two (2) or more counterparts, each of which
      will be deemed an original, but all of which together will constitute one and
      the same instrument.

     

    [Signature
      page follows]

     

     

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

        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
      by
      their duly authorized representatives as of the date first above
      written.

     

    

    

      
        	
                ROSETTA
                  GENOMICS, LTD.

              	
                ISIS
                  PHARMACEUTICALS, INC.

              
	 	 
	
                Per:
                  /s/ Amir
                  Avniel                  
                  

              	
                Per:
                  /s/ B. Lynne
                  Parshall                    
                  

              
	
                Amir
                  Avniel, President

              	
                B.
                  Lynne Parshall

              
	
                Rosetta
                  Genomics

              	
                Executive
                  Vice President and CFO

              

      

    

    

    

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

        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    APPENDIX
      1

    

    DEFINITIONS

    

    “Collaboration”
      means
      the collaborative research activities conducted in the course of this Agreement
      collaboration to identify micro-RNAs which are responsible for the progression
      of hepatocellular carcinoma (“HCC”) and to discover and develop synthetic
      antisense drugs for the treatment of HCC which modulate the activity of such
      micro-RNAs.

    

    “Collaboration
      MicroRNA”
means
      those micro-RNA which are identified as being involved in hepatocellular
      carcinoma and which are studied in the Collaboration.

    

    “Collaboration
      Product(s)”
      means
      any synthetic antisense oligonucleotide (or pharmaceutical composition
      comprising a synthetic antisense oligonucleotide) identified or evaluated in
      the
      course of the Collaboration as a possible therapeutic agent for the treatment
      of
      HCC and which modulates or mimics the activity of a Collaboration
      MicroRNA.

    

    “Collaboration
      Stages”
      means
      those collaboration stages listed on Appendix 2 as may be modified from time
      to
      time by the JRC.

    

    “Collaboration
      Term”
      has the
      meaning specified in Section 2.1.3.

    

    “Confidential
      Information”
      means
      all information and know-how and any tangible embodiments thereof provided
      by or
      on behalf of one Party to the other Party either in connection with the
      discussions and negotiations pertaining to this Agreement or in the course
      of
      performing this Agreement, which may include data, knowledge, practices,
      processes, ideas, research plans, engineering designs and drawings, research
      data, manufacturing processes and techniques, scientific, manufacturing,
      marketing and business plans, and financial and personnel matters relating
      to
      the disclosing Party or to its present or future products, sales, suppliers,
      customers, employees, investors or business.

    

    Notwithstanding
      the foregoing, information or know-how of a Party will not be deemed
      Confidential Information of such Party for purposes of this Agreement if such
      information or know-how:

    

    (a) was
      already known to the receiving Party, other than under an obligation of
      confidentiality or non-use, at the time of disclosure to such receiving
      Party;

    

    (b) was
      generally available or known to parties reasonably skilled in the field to
      which
      such information or know-how pertains or was otherwise part of the public
      domain, at the time of its disclosure to such receiving Party;

    

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

        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    (c) became
      generally available or known to parties reasonably skilled in the field to
      which
      such information or know-how pertains, or otherwise became part of the public
      domain, after its disclosure to such receiving Party through no fault of the
      receiving Party;

    

    (d) was
      lawfully disclosed to such receiving Party, other than under an obligation
      of
      confidentiality or non-use, by a third party who had no obligation to the
      disclosing Party not to disclose such information or know-how to others;
      or

    

    (e) was
      independently discovered or developed by such receiving Party without the use
      of
      Confidential Information belonging to the disclosing Party, as evidenced by
      their written records, and prior to any subsequent disclosure by the receiving
      Party.

    

    “Developing
      Party”
      has the
      meaning set forth in Section. 4.1.

    

    “HCC”
      means
      hepatocellular carcinoma.

    

    “Isis
      MicroRNA”
means
      those micro-RNA sequences which are owned or controlled by Isis or licensed
      to
      Isis from a third party fro therapeutic purposes.

    

    “JRC”
      means
      the Joint Research Council as described in Section 2.2.

    

    “Licensed
      Field”
      shall
      mean the treatment of HCC in human and the treatment in humans of such other
      diseases as are added to the Collaboration Field by mutual agreement of the
      Parties.

    

    “Patents”
      will
      include (a) all U.S. patents and patent applications, (b) any substitutions,
      divisions, continuations, continuations-in-part (but only to the extent that
      they cover the same invention claimed in the foregoing), reissues, renewals,
      registrations, confirmations, re-examinations, extensions, supplementary
      protection certificates and the like, and any other patents and patent
      applications claiming priority to any of the foregoing and (c) any foreign
      or
      international equivalent of any of the foregoing.

    

    “Rosetta
      MicroRNA”
      means
      those micro-RNA sequences which are owned or controlled by Rosetta or licensed
      to Rosetta from a third party for therapeutic purposes.

    

    “Term”
      shall
      have the meaning set forth in Section 6.1.

    

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

        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    APPENDIX
      2

    Research
      Plan

    

    [***]
      will [***] for each [***] prior to [***]The steps of the [***] not be done
      in
      the [***] may be [***] by the [***] with its [***]

    

    Collaboration
      Stage 1:
      [***]

    

    
      
        	1.	
                [***]

              

        	          
                ·  	
                [***]
                  of [***] from [***] and [***] from
                  [***]

              

      

    

    
             

      [***]
        with [***] that has been [***]

    

    

    [***]
      which of the [***] shall [***] with[***]

    

    
      	2.	
              [***]

            

    

    

    
      	·  	
              Based
                upon [***] during the [***] upon up to [***]each a [***]At least
                [***] are
                to be [***]

            

    

    
      	·  	
              [***]using
                [***]

            

    

    
      	·  	
              [***]
                of each [***] plus [***]

            

    

    

    
      	3.	
              [***]

            

    

    

    
      	·  	
              [***]
                in which the [***] will be [***] will [***] on how to [***] will
                be [***]
                may [***]with [***] that has been
                [***]

            

    

    

    
      	4.	
              [***]

            

    

    

    
      	·  	
              [***]
                will show [***] and to [***] will be [***] to these [***] Examples
                of such
                [***] that the [***] is being [***] by the[***] and/or [***] that
                they are
                [***] with the [***] after [***] with the
                [***]

            

    

    

    
      	5.	
              [***]

            

    

    

    
      	·  	
              [***]
                upon the [***] of the[***] up to [***] for [***] for conduct of [***]
                to
                the[***]

            

    

    

    Collaboration
      Stage 2:
      [***]

    [***]
      related to this [***] will be determined upon [***]

    

    Collaboration
      Stage 3:
      [***]
      to be
      determined upon [***]

    

    Collaboration
      Stage 4:
      [***]
      to be
      determined upon [***]

    

    Collaboration
      Stage 5:
      [***]
      to be
      determined upon [***]

    

    Collaboration
      Stage 6:
      [***]
      to be
      determined upon [***]

    

    Collaboration
      Stage 7:
      [***]
      to be
      determined upon [***]

    

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

        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    APPENDIX
      3

    

    Financial
      Guidelines For Definitive License Agreements

    

    Milestone
      Payments by Developing Party:

    

    For
      each
      Collaboration Product, in a definitive license agreement entered into pursuant
      to Sections 4.1.2. or 4.1.3 the following milestone payments will be payable
      by
      the Developing Party to the other Party:

    

    
      	
              Event

            	
              Payment

            
	
              1.
                Initiation (first dosing) of phase I clinical trial

            	
              $[***]
                (U.S.)

            
	
              2.
                Initiation of phase II clinical trial

            	
              $[***]
                (U.S.)

            
	
              3.
                Initiation of pivotal quality clinical trial (Phase III or
                equivalent)

            	
              $[***]
                (U.S.)

            
	
              4.
                Filing of new drug application in first major market

            	
              $[***]
                (U.S.)

            
	
              5.
                Receipt of regulatory approval in first major market

            	
              $[***]
                (U.S.)

            
	
              6.
                Receipt of regulatory approval in second major market

            	
              $[***]
                (U.S.)

            
	 	 

    

    

    Milestone
      payments for second and subsequent indications for a Collaboration Product
      will
      be at [***]% of the above milestones, and shall only be due for milestones
      3, 4,
      5 and 6.

    

    Royalty
      Payments by Developing Party

    

    Royalties
      on Collaboration Products will be determined according to the following
      contributions (which are intended to be cumulative) by the Parties if a
      definitive license agreement is granted to a Developing Party pursuant to
      Section 4.1.2. or 4.1.3 for a Collaboration Product at the end of Collaboration
      Stage 1:

    

    
      	·   
                	
              In
                recognition of work contributions performed under Collaboration Stage
                1 -
                a [***]% royalty on net sales will be payable by the Developing Party
                to
                the other Party.

            

    

    
      	·    
               	
              In
                recognition of an ownership interest in patents in a valid claim
                covering
                a Collaboration Method related to the Collaboration Product to be
                exclusively licensed to the Developing Party - a [***]% royalty on
                net
                sales will be payable by the Developing Party to the other
                Party.

            

    

    
      	·   
                	
              In
                recognition of control of, or license to, patents to be (sub)licensed
                to
                the Developing Party (other than those included in the bullet point
                above
                or the licenses described below) with a valid claim covering the
                target
                Collaboration Micro-RNA or Collaboration Product - a [***]% royalty
                on net
                sales will be payable by the Developing Party to the other
                Party.

            

    

     

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

        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    Existing
      Third Party Royalties. In addition to the royalties above, the following third
      party royalty obligations existing as of the effective date of this Agreement
      will be paid by the Developing Party as applicable:

     

    
      	 	 

    

    
      	·   
                	
              a
                [***]% royalty on net sales to [***] for a Collaboration Product
                that is
                subject to the [***] License
                Agreement.

            

    

    
      	·    
               	
              a
                [***]% royalty on net sales to [***] for a Collaboration Product
                that is
                subject to the [***] Agreement.

            

    

    
      	·    
               	
              a
                [***]% to [***]% royalty on net sales to [***], depending on annual
                net
                sales of a Collaboration Product (as specified in the [***] license
                agreement), for a Collaboration Product that is subject to the [***]
                License Agreement

            

    

    
      	·    
               	
              a
                [***]% to [***]% royalty on net sales to [***], for a Collaboration
                Product that is subject to the [***] License
                Agreement.

            

    

    

    The
      Parties agree to negotiate in good faith reasonable royalties relevant to the
      acquisition of additional required third party licenses.

    
 

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

        
        

      

      
        -18-RESEARCH
      AND LICENSE AGREEMENT

    (HVC)

    

    

    This
      agreement (the "Agreement")
      is
      made and entered into as of the 30 day of May, 2005 (the "Effective
      Date")
      by and
      between Rosetta
      Genomics Ltd.,
      a
      private company registered under the laws of the State of Israel, of 10 Plaut
      Street, Science Park, Rehovot, Israel ("Rosetta")
      and
Hadasit
      Medical Research Services and Development Ltd.,
      a
      private company registered under the laws of the state of Israel, of Hadassah
      Medical Hospital, POB 12000, Jerusalem, Israel ("Hadasit").

    

    WHEREAS,
      Rosetta is engaged in research and development in the field of bioinformatics
      and molecular biology detection, prediction and discovery of MicroRNA sequences
      and their respective functions and utilities, and therapeutic and diagnostic
      uses based thereon, in the course of which Rosetta has discovered and filed
      patents for a large number of MircoRNAs and their respective functions and
      utilities; and

    

    WHEREAS,
      Hadasit is a subsidiary of Hadassah Medical Organization ("HMO")
      and is
      charged with the commercial exploitation of the intellectual property and other
      potentially valuable assets of HMO; and

    

    WHEREAS,
      Prof. Eithan Galum (the "Principal
      Investigator")
      from
      the Goldyne Savad Institute of Gene Therapy at the Hadassah Hebrew University
      Hospital ("HUH")
      has
      expertise in the field of viral infection of HVC research; and

    

    WHEREAS,
      Rosetta and Hadasit have previously negotiated a Principles of a Joint Research
      Agreement (the "Joint
      Research Memorandum"),
      which
      defines the main principles pursuant to which Rosetta and the Principal
      Investigator will collaborate in the performance of certain Research (as defined
      below) relating to the suppression of viral activity of HCV by using MicroRNAs;
      and

    

    Suppress
      viral infection of HCV by using HCV and human MicroRNAs over expression or
      silencing. Show results on animal model.

    

    WHEREAS,
      the parties wish to set forth herein the definitive terms of the collaboration
      of the parties with respect to the performance of the Research and the future
      utilization of its results, which terms will supersede and replace the Joint
      Research Memorandum;

    

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

    

    1. 
Interpretation

    

    1.1 In
      this
      Agreement, each of the following terms shall have the meaning set forth opposite
      it, unless the context otherwise requires:

    

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

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.1.1 "Affiliate"
      shall
      mean, with respect to a party, any person, organization or entity controlling,
      controlled by or under common control with, such party. For purposes of this
      definition only, "control" of another person, organization or entity shall
      mean
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the activities, management or policies of such person, organization
      or entity, whether through the ownership of voting securities, by contract
      or
      otherwise.

    

    1.1.2 "Combination
      Product"
      shall
      mean a product, substance or device which is not an internal development of
      Rosetta derived from the Results under this Agreement, and which incorporates
      a
      product based on the Results or Joint Patents and at least one other essential
      additional ingredient, substance, compound or element which either (i) when
      administered to a patient, has a therapeutic or prophylactic clinical effect,
      either directly or by acting synergistically with other compounds or substances
      contained in such product, (ii) is required for delivery of another compound
      or
      substance contained in such product or (iii) otherwise enhances the effect
      another compound or substance contained in such product.

    

    1.1.3 "Field"
      shall
      mean the field of MicroRNA based therapeutic related to HCV.

    

    1.1.4 "Hadasit
      IP"
      shall
      mean any and all Intellectual Property that Hadasit has developed or will
      develop, or which Hadasit owns or will otherwise own, excluding the
      Results.

    

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

    

    1.1.6 "Joint
      Patents"
      shall
      mean any joint patent or patent application relating to the
      Results.

    

    1.1.7 "License"
      shall
      mean the license granted under Section 7 below.

    

    1.1.8 "Licensed
      IP"
      shall
      mean the Results, the Joint Patents and any other Intellectual Property
      underlying the results.

    

    1.1.9 "Net
      Revenues"
      shall
      mean the gross amount received by or on behalf of Rosetta or its Affiliates
      in
      connection with the commercialization of the Results or Joint Patents, less
      the
      following: (a) credits, refunds, rebates or trade, quantity, or cash discounts
      to the extent actually allowed and taken; (b) amounts repaid or credited by
      reason or rejection or return; (c) any taxes or other governmental charges
      levied on the production, sale, transportation, import, export, delivery or
      use
      of the product; and (d) outbound transportation, packing and delivery charges,
      as well as prepaid freight (including shipping insurance) actually incurred;
      provided however, that:

    

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

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (i) In
      any
      transactions between Rosetta and an Affiliate, Net Revenues shall be only the
      total amount invoiced by such Affiliate on resale to an independent third party
      purchaser, in each case, after appropriate deductions as set forth
      above;

    

    (ii) In
      the
      event that Rosetta or its Affiliate receives non-monetary consideration for
      any
      transaction, Net Revenues shall be calculated based on the fair market value
      of
      such consideration, except that with respect to Net Revenues received in the
      form of equity, Rosetta shall have the right in its sole discretion or either
      pay Royalties in kind or based on the fair market value of such equity;
      and

    

    (iii) In
      the
      event a product is sold by Rosetta, an Affiliate of Rosetta or a sublicense
      of
      Rosetta in the form of a Combination Product, Net Revenues from such Combination
      Product, for purposes of determining Royalties, shall be determined by
      multiplying the actual Net Revenues of such Combination Product during the
      applicable royalty reporting period, by the fraction A/(A+B) where: A is the
      average sale price of the product based on the Results or Joint Patents that
      is
      contained in the Combination Product when sold separately; and B is the average
      price of the other ingredient, substance, compound or element included in the
      Combination Product when sold separately, in each case during the applicable
      royalty reporting period or if sales of both the products based on the Results
      or Joint Patents and/or other ingredient, substance, compound or elements did
      not occur in such period, then in the most recent royalty reporting period
      in
      which sales of both occurred. In the even that such average sale price cannot
      be
      determined for both the product based on the Results or Joint Patents and all
      other ingredients, substances, compounds or elements included in the Combination
      Product, Net Revenues for the purpose of determining Royalties shall be
      calculated by multiplying the Net Revenues of the Combination Products by the
      fraction of C/C+D where C is the fair market value of all other ingredients,
      substances, compounds or elements included in the Combination Product. In such
      event, the parties shall negotiate in good faith to arrive at a determination
      of
      the respective fair market values of the product based on the Results or Joint
      Patent and all other additional ingredients included in the Combination
      Product.

    

    For
      the
      sake of clarity, Net Revenues shall not include amounts received by Rosetta
      as
      grants or other funding.

    

    1.1.10 "Research"
      shall
      mean the joint research project of Rosetta and the Principal Investigator
      intended to suppress viral activity of HCV by using HCV and human MircoRNAs
      over
      expression or silencing, all as specified in the Research Program.

    

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

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    1.1.11 "Research
      Program"
      shall
      mean the detailed program for the performance of the Research attached as
Annex
      A
      hereto.

    

    1.1.12 "Researched
      MircoRNAs"
      shall
      mean a defined subset of MicroRNAs identified by Rosetta.

    

    1.1.13 "Research
      Period"
      shall
      mean a period of 12 months commencing on the Effective Date.

    

    1.1.14 "Results"
      shall
      mean MicroRNAs identified by the parties within the framework and as a result
      of
      the Research, together with any other results of the Research in the
      Field.

    

    1.1.15
      "Rosetta
      MicroRNAs"
      shall
      mean any novel human and non-human (including virus and bacteria) MicroRNAs
      and
      tiny RNAs predicted or which may be predicted by Rosetta.

    

    1.1.16 "Rosetta
      IP"
      shall
      mean any and all Intellectual Property that Rosetta has developed or will
      develop, or which Rosetta owns or will own, including but not limited to the
      Rosetta MicroRNAs, but excluding the Results.

    

    1.2 The
      headings in this Agreement are inserted for convenience of reference only and
      shall not affect its interpretation.

    

    1.3 The
      preamble and annexes to this Agreement form an integral part of this
      Agreement.

    

    2. Joint
      Research

    

    The
      parties will cooperate in performance of the Research pursuant to the following
      terms and conditions:

    

    2.1 Hadasit
      shall be responsible to procure the performance of the Research in accordance
      with the Research Program, insofar as it relates to tasks listed in the Research
      Program under the responsibility of the Principal Investigator (the
      "PI
      Tasks"),
      as
      follows:

    

    2.1.1 The
      PI
      Tasks will be performed in accordance with the Research Program at and with
      the
      facilities and materials of HUH.

    

    2.1.1 The
      PI
      Tasks will be performed by the Principal Investigator, who may be assisted
      by
      skilled staff of HUH under the direct supervision of the Principal
      Investigator.

    

    2.1.3 The
      PI
      Tasks will be performed during the Research Period.

    

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

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    2.1.4 Subject
      to Section 8.7 below, Hadasit will bear the expenses incurred by it, HUH and
      the
      Principal Investigator in the performance of the PI Tasks and any other
      obligations of Hadasit related to the Research or set forth herein.

    

    2.2 Rosetta
      shall be responsible to procure the performance of the Research in accordance
      with the Research Program, insofar as it relates to tasks listed in the Research
      Program under the responsibility of Rosetta (the "Rosetta
      Tasks"),
      as
      follows:

    

    2.2.1 The
      Rosetta Tasks will be performed by Rosetta in accordance with the Research
      Program at and with the facilities and materials of Rosetta.

    

    2.2.2 The
      Rosetta Tasks will be performed by skilled personal of Rosetta.

    

    2.2.3 The
      Rosetta Tasks will be performed during the Research Period.

    

    2.2.4 Rosetta
      will bear the expenses incurred by it in the performance of the Rosetta Tasks
      and any other obligations of Rosetta related to the Research or set forth
      herein.

    

    2.3 Each
      of
      the parties hereby undertakes to take all reasonable measures in order to ensure
      that it shall not utilize, in the course of performing its respective tasks
      under the Research Program, any intellectual property, technology or know-how
      infringing any third party intellectual property rights.

    

    2.4 During
      the performance of the Research, the research teams of Rosetta and the Principal
      Investigator will periodically meet or otherwise be in contact in order to
      update each other on the progress of the Research, provide information and
      material regarding interim Results, and in order to coordinate further Research
      activities. Each party shall prepare and maintain detailed records of , and
      regularly and reasonably promptly disclose in writing to the other Parties
      in
      reasonable detail, any and all inventions created, invented, developed,
      conceived or reduced to practice by or for such Party (including by its
      employees, affiliates, agents and consultants) in connection with the Research
      Program.

    

    2.5 The
      parties shall exchange final written reports regarding the Results they
      respectively achieved in the course of performance of the Research, by not
      later
      than thirty (30) days following the end of the Research Period. Hadasit will
      further provide Rosetta with any and all required documentation, information
      and
      material related to the Results achieved by the Principal Investigator, in
      such
      manner as will enable Rosetta to utilize an commercialize the Results pursuant
      to the terms of the License set forth herein.

    

    2.6 The
      parties, including the Principal Investigator and his research team, will
      further cooperate, to the extent requested by Rosetta, in order formalize joint
      documentation describing the Results, and in order to provide any other document
      or information which may be required in order to file Joint
      Patents.

    

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

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

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

    

    2.8 Hadasit
      represents and warrants that it is legally authorized and entitled to assume
      all
      responsibilities under this Agreement, including pertaining to any undertaking
      related to or obligating the Principal Investigator, the HUH and the HMO, as
      the
      case may be.

    

    2.9 If
      Dr.
      Eithan Galum ceases to serve as a Principal Investigator for any reason, Hadasit
      shall promptly notify Rosetta and use its best efforts to replace him by a
      substitute of similar experience and expertise within 30 days of such notice,
      and Rosetta may terminate this Agreement if it does not approve such substitute
      within 60 days from the date of such notice or I no such substitute is not
      fund
      within such time.

    

    3. 
Intellectual
      Property

    

    3.1 The
      Rosetta IP belongs solely to Rosetta which is and shall remain its sole owner.
      Nothing in this Agreement shall constitute or be considered as constituting
      a
      transfer or license of the Rosetta IP or any part thereof (including but not
      limited to the Rosetta MicroRNAs) by Rosetta to Hadasit, except to the limited
      extent necessary to allow Hadasit to perform its obligations under this
      Agreement.

    

    3.2 The
      Hadasit IP belongs solely to Hadasit which is and shall remain its sole owner.
      Nothing in this Agreement shall constitute or be considered as constituting
      a
      transfer or license of the Hadasit IP or any part thereof by Hadasit to
      Rosetta.

    

    3.3 All
      right, title and interest in and to the Results, whether or not they shall
      be
      protected by Joint Patents or other intellectual property rights, vest and
      shall
      vest in equal undivided shares with Hadasit and Rosetta.

    

    4. 
Joint
      Patents

    

    At
      the
      initiative of either Party the Parties will consult with each other whether
      to
      file any patent applications for Joint Patents relating to the Results or any
      part thereof. The following provisions will apply to any such patent
      applications for Joint Patents:

    

    4.1 Any
      Joint
      Patent will be listed in Annex
      B
      to this
      Agreement, which will be amended from time to time by written consent of Rosetta
      and Hadasit.

    

    4.2 The
      Joint
      Patents will be registered as jointly owned by Hadasit and Rosetta, in equal
      undivided shares. The Principal Investigator and inventor(s) designated by
      Rosetta will be registered as the investors of each Joint Patent. If the law
      of
      any jurisdiction in which an application for a Joint Patent is filed requires
      the application to be filed in the name of the inventors, the Parties will
      use
      their best efforts to procure that the Principal Investigator and any other
      inventors of the patent will cooperate in so filing the application for the
      patent and will thereafter assign the application to the Parties.

    

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

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    4.3 Rosetta
      shall bear and pay all expenses relating to the prosecution and maintenance
      of
      the Joint Patents and shall control the prosecution, maintenance and litigation
      of the Joint Patents.

    

    4.4 The
      prosecution and maintenance actions include but are not limited to preparing,
      filing, prosecuting and maintaining patent and patent applications for the
      Joint
      Patent, managing any proceedings relating to any interferences or
      reexaminations, or requesting reissues or patent term extensions with respect
      to
      the Joint patent and resolving to file the Joint Patent in additional
      jurisdictions other than the initial jurisdiction in which it shall be filed,
      for the purpose of obtaining wider protection for the Joint Patent.

    

    4.5 In
      the
      event that Rosetta elects not to bear the expenses relating to the filing of
      a
      Joint Patent in a specific file or jurisdiction in which it has been already
      filed as a patent application, the following terms will apply:

    

    4.5.1 Rosetta
      shall give Hadasit prior written notice within a reasonable time prior to the
      date in which such expense is due, including all relevant details regarding
      the
      expense, and specifically indicate its intention not to pay the expense (the
      "Unpaid
      Expense").

    

    4.5.2 In
      such
      event, Hadasit shall have the right (but not the obligation) to pay the Unpaid
      Expenses, instead of Rosetta, provided that it has given Rosetta reasonable
      prior written notice to Rosetta of its intent to do so.

    

    4.5.3 In
      the
      event that Hadasit pays the Unpaid Expenses instead of Rosetta within sixty
      (60)
      days of the date of receipt of notice from Rosetta: (i) Hadasit shall take
      the
      control of the prosecution of the Joint Patent in the specific registry of
      the
      specific file or jurisdiction for which the Unpaid Expenses were paid; (ii)
      Rosetta shall assign all of its rights, title and interest in the Joint Patent
      registered in such specific file or jurisdiction to Hadasit, within 30 days
      of a
      written request by Hadasit, following payment of the Unpaid Expenses by Hadasit.
      Nothing contained in sections 4.5.2 and 4.5.3 shall affect, in any way, any
      rights of Rosetta under this Agreement, including rights pertaining to the
      License under Section 7 below.

    

    4.5.4 In
      the
      event that Hadasit has not paid the Unpaid Expenses instead of Rosetta, Rosetta
      may, at any time, in its sole discretion, pay such Unpaid Expenses. In such
      event, Rosetta shall notify Hadasit of its intent to do so, and sections 4.3
      and
      4.4 shall apply accordingly.

    

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

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    4.6 Hasdasit,
      HUH and their relevant personal, including but not limited to the Principal
      Investigator, shall reasonably cooperate and assist Rosetta and its patent
      attorney, as shall be required in order to facilitate the prosecution and
      maintenance of any Joint Patent. Such assistance will include, but shall not
      be
      limited to signature on any formal document or form which shall require
      Hadasit's, HUH's or the Principal Investigator's signature for the purpose
      of
      filing or maintaining any Joint Patent.

    

    4.7 If
      so
      requested, Rosetta shall consult with Hadasit and its designated patent experts
      with respect to the prosecution and maintenance of Joint Patents. If the event
      described in Section 4.5.3 above occurs and Hadasit assumes control of the
      prosecution of a specific Joint Patent in a specific file or jurisdiction,
      if so
      requested Hadasit will consult with the patent experts of Rosetta with respect
      to the prosecution and maintenance of such specific Joint Patent in such
      specific file or jurisdiction.

    

    5. 
Protective
      Actions

    

    5.1 Each
      party shall promptly notify the other party in writing of any infringement
      of
      purported or threatened infringement of a Joint Patent that may adversely impact
      the rights of the parties hereunder, of which it becomes aware ("Infringement").

    

    5.2 In
      any
      event of any Infringement, Rosetta shall be entitled, at its sole discretion,
      to
      institute an infringement suit or take any other appropriate legal action
      against any person or entity directly or contributorily infringing any Joint
      Patent ("Protective
      Action").
      Prior
      to taking any Protective Action Rosetta will notify Hadasit of the Protective
      Action it intends to take and consider Hadasit's advice regarding such
      contemplated Protective Action. Such actions will be taken by legal counsel
      (the
      "Legal
      Counsel")
      chosen
      by Rosetta for such purpose at its sole expense. In the event Hadasit is
      included as a party to such Protective Action, the Legal Counsel will be
      instructed to provide Hadasit with copies of any official letter, suit or other
      document it intends to send or file on the parties' behalf, within a reasonable
      time prior to sending or filing the same, and to consider any advice of Hadasit
      with respect to any such Protective Action.

    

    5.3 In
      the
      event that Rosetta does not institute Protective Action in response to an
      Infringement within 90 days of the date on which it becomes aware of such
      Infringement, Hadasit shall have the right, but not the obligation, following
      30
      days' prior written notice to Rosetta, to institute such suit Protective Action
      in its own name.

    

    5.4 Regardless
      of which party brings the action, the other party hereby agrees to cooperate
      reasonably in any such effort, including if required in order to facilitate
      a
      Protective Action, the furnishing of a power of attorney (and in such event,
      neither party shall refuse to be included as a party to such legal
      action).

    

    5.5 Any
      recovery obtained by settlement or otherwise as a result of a Protective Action
      shall be disbursed as follows: (i) each party shall first recover [***]% of
      the
      amount of any reasonable expenses incurred by it in connection with such action
      (including counsel fees); and (ii) the remaining recovery shall be treated
      as
      Net Revenues and allocated between the parties accordingly.

    

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

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    5.6 Without
      prejudice to the above, the parties will reasonably cooperate with respect
      to
      any future legal claims related to a Joint Patent and neither party shall enter
      into any settlement pertaining to such legal claims that affects the other
      parties' rights or interests without such other parties' written consent, which
      consent shall not be unreasonably withheld.

    

    6. 
Publication

    

    The
      Principal Investigator may publish the Results subject to the following terms
      and conditions:

    

    6.1 A
      manuscript of any paper relating to the Results which the Principal Investigator
      intends to publish (the "Proposed
      Publication")
      will
      be submitted by Hadasit to Rosetta for review sufficiently in advance so that
      Rosetta will be provided with sufficient time, which shall not be more than
      60
      days, to take any action required in order to protect any Intellectual Property
      forming part of such Proposed Publication (the "Publication
      IP").
      If
      requested, the Principal Investigator will delete any information from the
      Proposed Publication that constitutes a trade secret or the disclosure of which
      would otherwise be detrimental to Rosetta.

    

    6.2 The
      parties will discuss in good faith the Proposed Publication and if desired
      will
      seek to protect the Publication IP of the Proposed Publication by filing a
      Joint
      patent (pursuant to the provisions of Section 4 above). The resolution whether
      to file a Joint patent regarding the Publication IP of a specific Proposed
      Publication shall be made within 60 days from the date the manuscript of such
      Proposed Publication is provided to Rosetta (the "Resolution
      Period").
      Such
      Proposed Publication will not be published prior to such resolution or the
      lapse
      of Resolution Period (whichever the earlier).

    

    6.3 In
      the
      event the Parties will resolve to file a Joint Patent or otherwise protect
      a
      Publication IP, within the Resolution Period, the Principal Investigator will
      not publish the Proposed Publication prior to the filing of such Joint Patents.
      Notwithstanding the above, in o event will a proposed publication be postponed
      beyond 30 days after the expiration of the Resolution Period.

    

    7. 
License

    

    7.1 Hadasit
      hereby grants Rosetta an exclusive, perpetual, worldwide, royalty bearing,
      license to exploit, use, conduct further research, develop and commercialize
      the
      Licensed IP or any part thereof in any manner (the "License").
      Rosetta shall be entitled to grant sublicenses with respect to the Licensed
      IP
      and/or to otherwise develop or sell, independently or in collaboration with
      other entities, products, services or any other inventions based on the Licensed
      IP.

    

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

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    7.2 Subject
      to the provisions of Section 7.5 below, Hadasit shall not be entitled to grant
      any rights or licenses with respect to the Licensed IP to any third party or
      to
      use the Licensed IP itself other than for academic research purposes (provided
      that the results of such additional academic research shall also be considered
      Results for purposes of this Agreement).

    

    7.3 Hadasit
      will promptly provide Rosetta with such reasonable information and documentation
      and shall further execute and deliver, or cause its representatives or employees
      to execute and deliver, all such further documents or instruments, as shall
      be
      reasonable required by Rosetta in order to secure its rights pursuant to the
      License granted hereunder.

    

    7.4 The
      exclusivity of the License with respect to specific Results or Joint Patents
      may
      be revoked by Hadasit in the event that Rosetta fails to commercialize the
      Results or Joint Patent within a period of ten (10) years of latter of the
      date
      on which: (i) full and final Results were presented to Rosetta, or (ii) the
      Joint patents are filed. Upon revocation of the License by Hadasit, either
      party
      shall be entitled to license or dispose of its interest in the Joint Patents
      in
      any manner it sees fit without obligation to the other party.

    

    7.5 Without
      derogating from the above, in the event that at the end of seven (7) years
      following the Relevant Date, Rosetta or its affiliates shall not present
      reasonable evidence that it is in the process of negotiating a commercial
      transaction relating to the Results or the Joint Patents ("Commercialization
      Activity"),
      Rosetta shall be obliged to pay Hadasit non-refundable advance payments (the
      "Advance
      Payments",
      which
      shall be creditable against Rosetta's royalty obligations under this Agreement),
      on account of future Royalties (as defined below), as a condition for
      maintaining the exclusivity of the License during the period starting seven
      (7)
      years after the Relevant Date and until Rosetta or its affiliated demonstrates
      Commercialization Activity (the "Relevant
      Period"),
      as
      follows: (i) for the first twelve months of the Relevant Period (to the extent
      applicable) - US$ [***]; (ii) for the second twelve months of the Relevant
      Period (to the extent applicable) - US$ [***]; and (iii) for the third twelve
      months of the Relevant Period (to the extent applicable) - US$ [***]. The
      Advance Payments will be payable in quarterly installments, during each 12-month
      extension period. To the extent that Commercialization Activity is demonstrated
      during any of the 12 month extension period, no further installments shall
      be
      payable.

    

    8. 
Consideration

    

    8.1 In
      consideration for the License and any other services and obligations to be
      performed by or on behalf of Hadasit, HUH or the Principal Investigator with
      respect to the Research, Rosetta shall pay Hadasit royalties (the "Royalties")
      out of
      any Net Revenues which Rosetta or its Affiliates will actually obtain from
      commercialization of the Results or the Joint Patents, as follows:

    

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

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    8.1.1 In
      the
      event that Hadasit and the Principal Investigator complete the Research in
      accordance with the Agreement and the Research does not yield any Joint Patents
      but does yield Results that are identifiable and of value, Hadasit shall be
      entitled to Royalties equal to [***]% of the Net Revenues (the "Basic
      Royalties").

    

    8.1.2 In
      the
      event that Hadasit and the Principal Investigator complete the Research in
      accordance with this Agreement and the Research yields Joint Patents, Hadasit
      shall be entitled to:

    

    8.1.2.1 Royalties
      equal to [***]% of Net Revenues actually obtained by Rosetta from
      Commercialization of any specific Results identifiable and of value which were
      not registered as a Joint Patent; or

    

    8.1.2.2 Royalties
      equal to [***]% of Net Revenues actually obtained by Rosetta from
      commercialization of any specific Joint Patent (i.e. the maximal Royalties
      from
      Net Revenues shall be [***]%);

    

    8.1.3 In
      any
      other event, including an event of no Results suitable for commercialization
      or
      an event of a breach of this Agreement by Hadasit, Hadasit shall not be entitled
      to any consideration from Rosetta, including Royalties.

    

    8.2 Notwithstanding
      anything to the contrary set forth herein, in the event that Rosetta or an
      Affiliate of Rosetta must, in its reasonable judgment, make payments to one
      or
      more third parties to obtain a third party license from such third party(ies)
      in
      order to use the Results or Joint Patents or any portion thereof or due to
      any
      infringement of the Licensed IP of such third party rights, Rosetta may offset
      such third-party payments against payments due to Hadasit pursuant to this
      Section 8, provided that the amount payable by Rosetta to Hadasit shall in
      no
      event be reduced pursuant to this clause to an amount which is less than [***]
      percent ([***]%) of the amount that would otherwise have been due to Hadasit
      without the operation of this clause.

    

    8.3 Notwithstanding
      anything to the contrary set forth herein, payments due to Hadasit pursuant
      to
      Section 8.1.2.2 shall continue to be due, on a country by country and product
      by
      product basis, only during the term of a valid claim under a Joint Patent
      covering such product in such country and until the expiration, termination,
      withdrawal, cancellation or disclaiming of the last valid claim under a Joint
      Patent covering such product in such country, after which Royalties shall
      continue to be payable under Section 8.1.1 or 8.1.2.1 until the termination
      of
      this Agreement.

    

    8.4 Within
      thirty (30) days following the end of each calendar quarter during the Term
      (as
      defined below), Rosetta shall: (i) provide Hadasit with a written report which
      will specify the calculation of the Revenues accumulated by Rosetta with respect
      to the Results or Joint Patents in such then-completed calendar quarter and
      the
      Royalties payable to Hadasit under the terms of Section 8.1 above (the
      "Quarterly Royalties Amount"); and (ii) pay Hadasit the Quarterly Royalties
      Amount by way of bank wire transfer to such account as Hadasit shall advise
      Rosetta in writing.

    

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

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    8.5 In
      the
      event that VAT will be duly required with respect to any Royalties which may
      be
      paid hereunder, the VAT will be added by Rosetta to the Quarterly Royalties
      Amount against receipt of a proper tax invoice from Hadasit.

    

    8.6 Rosetta
      shall maintain complete and accurate records of Net Revenues and any amounts
      payable to Hadasit in relation to same. Rosetta shall retain such records
      relating to a given Calendar Quarter for at least three (3) years after the
      conclusion of that Calendar Quarter. During such three (3) year period, Hadasit
      shall have the right, at Hadasit's expense, to cause an independent,
      nationally-recognized, certified public accountant reasonably acceptable to
      Rosetta, who is bound by a suitable confidentiality arrangement with Rosetta,
      to
      inspect Rosetta's and the relevant Affiliates' records relating to Net Revenues
      during normal business hours for the sole purpose of verifying any reports
      and
      payments delivered under this Agreement. Such public accountant will only repot
      to Hadasit whether or not Rosetta is in compliance with its obligations under
      this Agreement and shall not disclose or report to Hadasit any other information
      or data to which it has access as part of this examination. The parties shall
      reconcile any underpayment o overpayment within thirty (30) days after the
      accountant delivers the results of the audit. Hadasit may exercise its rights
      under this Section 8.6 only once every year and only with thirty (30) days
      prior
      notice to Rosetta. Notwithstanding the aforesaid, in the event that any
      inspection as aforesaid reveals any underpayment by Rosetta to Hadasit in
      respect of any year in an amount exceeding [***]% ([***] percent) of the amount
      actually paid by Rosetta to Hadasit in respect of such year, then Rosetta shall
      (in addition to paying Hadasit the shortfall), bear the costs of such
      inspection.

    

    8.7 For
      the
      purpose of sharing a portion of the costs Hadasit shall incur in the performance
      of its obligations under this Agreement with respect of Research, Rosetta shall
      pay Hadasit as follows (the "Research
      Payment(s)"):

    

    8.7.1 An
      initial Research Payment in the amount of US $[***] shall be paid by Rosetta
      to
      Hadasit within five business days of the execution of this
      Agreement.

    

    8.7.2 An
      additional US $[***] will be paid by Roetta to Hadasit one month after the
      payment referred to in Section 8.7.1.

    

    8.7.3 Hadasit
      shall use its best efforts to obtain external funding for the Research in form
      of or as part of a research grant in accordance with relevant industry standards
      (the "Grant").
      For
      this purpose, Hadasit shall apply to certain reputable research institutions
      as
      shall be agreed between the parties. The terms of the Grant shall not derogate
      from any of Rosetta's rights under this Agreement, unless otherwise agreed
      between the parties in advance and in writing. When the Grant is received by
      Hadasit, Hadasit shall repay to Rosetta the amounts paid under Section 8.7.1
      and
      8.7.2 above (the "Repaid
      Amounts"),
      without interest, provided that the terms of such Grant shall not prevent such
      repayment to Rosetta. In the event that the Grant shall be in an amount less
      than US$ [***], than Hadasit shall deduct an amount of US$ [***] from the Repaid
      Amounts paid to Rosetta.

    

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

        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    8.7.4 In
      the
      event that Hadasit does not succeed in obtaining the Grant within a period
      of 12
      months following the Effective Date, then, subject to the continued performance
      by Hadasit of the Research and the fulfillment of all Hadasit's obligations
      under this Agreement, Rosetta shall pay Hadasit additional Research Payment
      in
      the amount of US $[***], payable in three equal monthly
      installments.

    

    8.8 Any
      amount payable hereunder which has not been made upon its due date of payment,
      shall bear interest from the date such payment is due until the date of its
      actual payment, at the maximum interest charged by Bank Leumi Le Israel B.M.
      for
      unapproved overdrafts.

    

    9. 
Indemnification

    

    9.1 Each
      party hereby disclaims any representations or warranties in respect of the
      Research, the Results, the Joint Patents and any related patents, their
      potential use, exploitability or that they do not infringe third party
      rights.

    

    9.2 Rosetta
      shall indemnify and hold Hadasit, the HUH, the HMO and any of their employees,
      (the "Indemnitees"),
      harmless against and from any claim, damage or expense of any kind resulting
      from any use by Rosetta, or those authorized by it, will make of the Results
      or
      the Joint Patents (if any), provided that Hadasit will comply with the following
      terms:

    

    9.2.1 Hadasit
      shall: (i) notify Rosetta in writing of any claim or action triggering an
      indemnification obligation under this Section 9.2 promptly after it becomes
      aware of the same; and (ii) provide Rosetta with such information and assistance
      as reasonably required in connection therewith; and (iii) enable Rosetta, at
      its
      request, to participate in and/or control any proceedings or negotiations
      related to such defense or settlement with its own counsel.

    

    9.2.2 Under
      no
      circumstance shall the Indemnitees Hadasit compromise any asserted liability
      hereunder without the prior written consent of Rosetta.

    

    9.2.3 Such
      indemnity shall not apply to claims made by third parties that the Results
      or
      Joint Patents infringe such third party's intellectual property
      rights.

    

    9.3 Neither
      party shall be liable (whether under contract, tort (including negligence or
      otherwise) to the other party, or any third party for any indirect, incidental
      or consequential damages, including, without limitation, any loss or damage
      to
      business earnings, lost profits or goodwill and lost or damaged data or
      documentation, suffered by any person, arising from and/or related with and/or
      connected to this agreement even if such party is advised of the possibility
      of
      such damages.

    

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

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    10. 
Confidentiality

    

    10.1 Rosetta,
      Hadasit and the Principal Investigator have previously signed and executed
      a
      non-disclosure agreement, in the form as Annex
      C
      hereto,
      which forms an integral part of this Agreement (the "NDA").

    

    10.2 It
      is
      recorded and agreed that Rosetta shall be entitled to disclose this Agreement,
      the Results and any other information relating to the Research and the Licensed
      IP, as shall be reasonably required in the scope of business, to enable a third
      party to perform technological due diligence examinations relating to
      contemplated transactions of Rosetta, in the course of Rosetta's
      commercialization efforts or as shall otherwise be required in order to utilize
      the License, as well as to its consultants and advisors (on an as-needed basis),
      provided that such third parties will be subject to a confidentiality
      undertaking not less stringent that the obligation set forth
      herein.

    

    11. 
Term
      and Termination

    

    11.1 The
      term
      of this Agreement, including the License granted hereunder, shall commence
      upon
      the Effective Date and shall terminate on the date on which all of the Joint
      Patents which may be registered under the terms set forth herein shall have
      expired (the "Term").

    

    11.2 If
      the
      Research does not produce any Joint Patents or Research Results with independent
      commercial value, then Rosetta may terminate this Agreement upon sixty (60)
      days
      notice to Hadasit. In addition, in the event that either party commits a
      material breach of its obligations under this Agreement and fails to cure that
      breach (where the breach is capable of cure) within sixty (60) days after
      receiving written notice thereof, the non-breaching party may terminate this
      Agreement immediately upon written notice.

    

    12. 
Force
      Majeure

    

    Neither
      party shall be responsible or liable for any delay or failure in performance
      under this Agreement arising as a result of any occurrence or contingency beyond
      its reasonable control, including but not limited to, accident, act of God,
      acts
      of the public enemy, earthquake, fire, flood, explosion, strikes, riots, civil
      commotion, war (declared or not), requirements or acts of any government or
      agency thereof and judicial action. The delayed party shall send written notice
      of the delay and the reason therefor to the other party as soon as possible
      after the party delayed knew of the cause of delay in question.

    

    13. 
Miscellaneous

    

    13.1 Assignment.
      No
      party to this Agreement shall be entitled to transfer or assign its rights
      or
      obligations under this Agreement, unless with the prior written consent of
      the
      other party, which shall not be unreasonably withheld; provided however that
      an
      assignment resulting from merger and/or acquisition of either party or a sale
      of
      the assets that are the subject of this Agreement shall not require the consent
      of the other party, in the event that the surviving entity is committed to
      such
      assigning party's obligations hereunder.

    

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

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

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

    

    13.3 Law.
      This
      Agreement shall be governed by the laws of the State of Israel.

    

    13.4 Mediation
      & Arbitration.
      The
      parties shall endeavor to equitably settle any dispute which may arise between
      them under or in connection to this Agreement (a "Dispute").
      Any
      Dispute arising between the parties not amicably resolved within 15 (fifteen)
      days, shall be referred to independent mediation (the "Mediation")
      by a
      qualified person appointed by the parties for such purposes and failing
      agreement between them within a thirty day period, by the legal counsel of
      Rosetta and Hadasit, upon the written request of any of the parties (with a
      copy
      to the other party) (the "Mediator").
      the
      Mediation shall be held in accordance with the provisions of Article 79C of
      the
      Courts Law - 1984. The Mediator shall try to resolve the Dispute by unanimous
      consent of the parties within additional 30 days and in the event the Mediator
      shall fail t do so the Dispute will be referred to an arbitration (the
      "Arbitration"),
      which
      will be conducted by the Mediator, who will serve as the arbitrator in such
      event. The Arbitrator shall be bound to reason his final resolution in the
      Arbitration and the Arbitration shall be subject to the substantive law (but
      not
      to rules of procedure and evidence).

    

    13.5 Entire
      Agreement.
      This
      Agreement, including all annexes attached hereto constitutes the entire
      understanding of the parties and supersedes all oral or written representations
      or agreements, privileges or understandings between the parties, including
      but
      not limited to the Joint Research Memorandum, all of which shall become, upon
      signature of this Agreement, null and void.

    

    13.6 Amendment.
      No
      modification or amendment of this Agreement may be made except in a written
      instrument duly signed by all parties.

    

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

    

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

        
        

      

      
        15

        
          

        

      

      
        
        

      

    

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

    

    13.9 Costs.
      Each
      party shall bear its own costs and expenses in connection with the negotiations
      and signature of this Agreement, including taxes. Stamp tax, if required, shall
      be shared equally by the parties.

    

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

    

     

    
      	
              If
                to Rosetta:

            	
              10
                Plaut Street, Rehovot 76706, Israel

            
	 	
              Fax:
                972-8-9484766

            
	 	 
	
              If
                to Hadasit:

            	
              POB
                12000, Jerusalem 91120, Israel

            
	 	
              Fax:
                +972-2-643-7712

            
	 	
              Attention:
                CEO, Copy: Legal Counsel

            

    

    

    13.11 Notwithstanding
      anything to the contrary herein, Rosetta shall not use the names and/or logos
      of
      Hadasit and/or the HUH, and shall not disclose their involvement in the Research
      without both their prior written approval, all except for (a) references to
      scientific publications which are already in the public domain at the time
      of
      executing this Agreement and (b) applications for regulatory approvals to
      official authorities, and (c) as requested by regulatory authorities as required
      by law or applicable regulation. Subject to the foregoing, Rosetta shall include
      appropriate acknowledgement and credit to the HMO and their employees in any
      publication relating to the Research in whatever media, including application(s)
      to official authorities or presentations to potential
      investors.

    

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

    

    
      	
              HADASIT
                RESEARCH SERVICES AND

            	 	
              ROSETTA
                GENOMICS LTD.

            
	
              DEVELOPMENT
                LTD.

            	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              BY:

            	
            	 	
              By:

            	
            
	 	 	 	 	 
	
              Name:

            	
            	 	
              Name:

            	
            
	 	 	 	 	 
	
              Title:

            	
            	 	
              Title

            	
            

    

    

    

    As
      to the
      obligations imposed on the 

    Principal
      Investigator:

    

    

    ______________________________

    Prof.
      Eithan Galum

     

     

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

        
        

      

      
        16

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