Document:

urgn-ex42_984.htm

 

Exhibit 4.2

 

UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

THE AMENDED AND RESTATED 2010 ISRAELI SHARE OPTION PLAN

 

 

 

(*In compliance with Amendment No. 132 of the Israeli Tax Ordinance, 2002)

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 2 of 15

 

TABLE OF CONTENTS

 

	
1.
	
PURPOSE OF THE ISOP
	
3

	
 
	
 
	
 

	
2.
	
DEFINITIONS
	
3

	
 
	
 
	
 

	
3.
	
ADMINISTRATION OF THE ISOP
	
5

	
 
	
 
	
 

	
4.
	
DESIGNATION OF PARTICIPANTS
	
6

	
 
	
 
	
 

	
5.
	
DESIGNATION OF OPTIONS PURSUANT TO SECTION 102
	
6

	
 
	
 
	
 

	
6.
	
TRUSTEE
	
7

	
 
	
 
	
 

	
7.
	
SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON
	
7

	
 
	
 
	
 

	
8.
	
PURCHASE PRICE
	
8

	
 
	
 
	
 

	
9.
	
ADJUSTMENTS
	
8

	
 
	
 
	
 

	
10.
	
TERM AND EXERCISE OF OPTIONS
	
9

	
 
	
 
	
 

	
11.
	
VESTING OF OPTIONS
	
10

	
 
	
 
	
 

	
13.
	
DIVIDENDS
	
12

	
 
	
 
	
 

	
14.
	
CONDITIONS UPON ISSUANCE OF SHARES
	
12

	
 
	
 
	
 

	
15.
	
RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS
	
13

	
 
	
 
	
 

	
16.
	
EFFECTIVE DATE AND DURATION OF THE ISOP
	
13

	
 
	
 
	
 

	
17.
	
PURCHASE FOR INVESTMENT, REPRESENTATIONS
	
13

	
 
	
 
	
 

	
18.
	
INABILITY TO OBTAIN AUTHORITY
	
14

	
 
	
 
	
 

	
19.
	
AMENDMENTS OR TERMINATION
	
14

	
 
	
 
	
 

	
20.
	
GOVERNMENT REGULATIONS
	
14

	
 
	
 
	
 

	
21.
	
CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES
	
14

	
 
	
 
	
 

	
22.
	
GOVERNING LAW & JURISDICTION
	
14

	
 
	
 
	
 

	
23.
	
INTEGRATION OF SECTION 102 AND TAX COMMISSIONER'S PERMIT
	
14

	
 
	
 
	
 

	
24.
	
TAX CONSEQUENCES
	
14

	
 
	
 
	
 

	
25.
	
NON-EXCLUSIVITY OF THE ISOP
	
15

	
 
	
 
	
 

	
26.
	
MULTIPLE AGREEMENTS
	
15

 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 3 of 15

 

This plan, as amended from time to time, shall be known as UroGen Pharma (formerly TheraCoat Ltd.) 2010 Israeli Share Option Plan (the “ISOP”). 

	
1.
	
PURPOSE OF THE ISOP

The ISOP is intended to provide an incentive to retain, in the employ of the Company (as defined below) and its Affiliates (as defined below), persons of training, experience, and ability, to attract new employees, directors, consultants, service providers and any other entity which the Board shall decide their services are considered valuable to the Company (as defined below), to encourage the sense of proprietorship of such persons, and to stimulate the active interest of such persons in the development and financial success of the Company (as defined below) by providing them with opportunities to purchase shares in the Company (as defined below), pursuant to the ISOP. 

	
2.
	
DEFINITIONS

For purposes of the ISOP and related documents, including the Option Agreement, the following definitions shall apply:

2.1.“Affiliate” means any “employing company” within the meaning of Section 102(a) of the Ordinance.

2.2."Applicable Laws" means the requirements relating to the administration of share option plans under applicable corporate laws, securities laws, any stock exchange or quotation system on which the Shares (as defined below) are listed or quoted and the applicable laws of any other country or jurisdiction where Options are granted under the ISOP.

2.3.“Approved 102 Option” means an Option granted pursuant to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of the Optionee. 

2.4.“Board” means the Board of Directors of the Company.

2.5.“Capital Gain Option” or “CGO” as defined in Section 5.4 below.

2.6.“Cause” means any of the following: (a) the Optionee's theft, dishonesty, or falsification of any Company documents or records; (b) the Optionee's improper use or disclosure of the Company's confidential or proprietary information; (c) any deliberate action by the Optionee which has a detrimental effect on the Company's reputation or business; (d) the Optionee's failure or inability to perform any reasonable assigned duties after written notice from the Company of, and a reasonable opportunity to cure, such failure or inability; (e) any material breach of the Optionee of any employment agreement between the Optionee and the Company, which breach is not cured pursuant to the terms of such agreement; or (f) the Optionee's conviction (including any plea of guilty or nolo contendere) of any criminal act which impairs the Optionee's ability to perform his, her or its duties with the Company. For purposes of the definition of Cause, with respect to an Optionee employed by or providing services to an Affiliate of the Company, "Company" shall include Affiliate employing or engaging the services of the Optionee.

2.7.“Chairman” means the chairman of the Committee.

2.8.“Committee” means a share option compensation committee appointed by the Board, which shall consist of no fewer than two members of the Board.

2.9.“Company” means TheraCoat Ltd., an Israeli company.

2.10.“Companies Law” means the Israeli Companies Law 5759-1999.

2.11.“Controlling Shareholder” shall have the meaning ascribed to it in Section 32(9) of the Ordinance.

2.12.“Date of Grant” means, the date of grant of an Option, as determined by the Board and set forth in the Optionee’s Option Agreement. 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 4 of 15

 

2.13."Director" means a member of the Board of Directors of the Company, or any Affiliate.

2.14."Disability" means physical or mental infirmity which impairs Optionee's ability to substantially perform his duties, which continues for a period of at least sixty (60) consecutive days.

2.15.“Employee” means a person who is employed by the Company or its Affiliates, including an individual who is serving as a director or an office holder, but excluding Controlling Shareholder. An Employee’s employment shall not be deemed to have been terminated in the case of (i) any leave of absence approved by the Company (or by the Affiliate that employs the person) or (ii) transfers between locations of the Company (or Affiliate that employs the person) or between the Company, any of its Affiliates, or any successor. No such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. Neither service as a Director nor payment of a director's fee shall be sufficient to constitute "employment". 

2.16.“Expiration date” means the date upon which an Option shall expire, as set forth in Section 10.2 of the ISOP. 

2.17.“Fair Market Value” means as of any date, the value of a Share determined as follows: 

2.17.1.If the Shares are listed on any established stock exchange or a national market system, the Fair Market Value shall be the closing sales price for such Shares (or the closing bid, if no sales were reported), as quoted on such exchange or system for the last market trading day prior to time of determination, as reported, or such other source as the Board deems reliable. Without derogating from the above, solely for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the Date of Grant the Company’s shares are listed on any established stock exchange or a national market system or if the Company’s shares will be registered for trading within ninety (90) days following the Date of Grant, the Fair Market Value of a Share at the Date of Grant shall be determined in accordance with the average value of the Company’s shares on the thirty (30) trading days preceding the Date of Grant or on the thirty (30) trading days following the date of registration for trading, as the case may be;

2.17.2.If the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall be the mean between the high bid and low asked prices for the Shares on the last market trading day prior to the day of determination, or; 

2.17.3.In the absence of an established market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Board. 

2.18.“IPO” means the initial public offering of the Company’s shares.

2.19.“ISOP” means this 2008 Israeli Share Option Plan.

2.20.“ITA” means the Israeli Tax Authorities.

2.21.“Non-Employee” means a consultant, adviser, service provider, Controlling Shareholder or any other person who is not an Employee.

2.22.“Ordinary Income Option” or “OIO” as defined in Section 5.5 below.

2.23.“Option” means an option to purchase one or more Shares of the Company pursuant to the ISOP, including restricted stock/share unit.

2.24.“102 Option” means any Option granted to Employees pursuant to Section 102 of the Ordinance.

2.25.“3(i) Option” means an Option granted pursuant to Section 3(i) of the Ordinance to any person who is Non- Employee. 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 5 of 15

 

2.26.“Optionee” means a person who receives or holds an Option under the ISOP.

2.27.“Option Agreement”means the share option agreement between the Company and an Optionee that sets out the terms and conditions of an Option.

2.28.“Ordinance” means the Israeli Income Tax Ordinance [New Version] 1961 as now in effect or as hereafter amended. 

2.29.“Purchase Price” means the price for each Share subject to an Option. 

2.30.“Section 102” means Section 102 of the Ordinance as now in effect or as hereafter amended.

2.31.“Share” means the ordinary shares, NIS 0.01 par value each, of the Company.

2.32.“Successor Company” means any entity the Company is merged to or is acquired by, in which the Company is not the surviving entity.

2.33.“Transaction” means (i) merger, acquisition or reorganization of the Company with one or more other entities in which the Company is not the surviving entity, (ii) a sale of all or substantially all of the assets of the Company. 

2.34.“Trustee” means any individual appointed by the Company to serve as a trustee and approved by the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance.

2.35.“Unapproved 102 Option” means an Option granted pursuant to Section 102(c) of the Ordinance and not held in trust by a Trustee. 

2.36.“Vested Option” means any Option, which has already been vested according to the Vesting Dates.

2.37.“Vesting Dates” means, as determined by the Board or by the Committee, the date as of which the Optionee shall be entitled to exercise the Options or part of the Options, as set forth in Section 11 of the ISOP.

	
3.
	
ADMINISTRATION OF THE ISOP

3.1.The Board shall have the power to administer the ISOP either directly or upon the recommendation of the Committee, all as provided by applicable law and in the Company’s Articles of Association. Notwithstanding the above, the Board shall automatically have residual authority if no Committee shall be constituted or if such Committee shall cease to operate for any reason.

3.2.The Committee shall select one of its members as its Chairman and shall hold its meetings at such times and places as the Chairman shall determine. The Committee shall make such rules and regulations for the conduct of its business as it shall deem advisable.

3.3.The Committee shall have the power to recommend to the Board and the Board shall have the full power and authority to: (i) designate participants; (ii) determine the terms and provisions of the respective Option Agreements, including, but not limited to, the number of Options to be granted to each Optionee, the number of Shares to be covered by each Option, provisions concerning the time and the extent to which the Options may be exercised and the nature and duration of restrictions as to the transferability or restrictions constituting substantial risk of forfeiture and to cancel or suspend awards, as necessary; (iii) determine the Fair Market Value of the Shares covered by each Option; (iv) make an election as to the type of Approved 102 Option; and (v) designate the type of Options; (vi) alter any restrictions and conditions of any Options or Shares subject to any Option; (vii) interpret the provisions and supervise the administrations of the ISOP; (viii) accelerate the right of an Optionee to exercise in whole or in part, any previously granted Option; (ix) determine the Purchase Price of the Option; (x) prescribe, amend and rescind rules and regulations relating to the 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 6 of 15

 

ISOP; and (xi) make all other determinations deemed necessary or advisable for the administration of the ISOP.

 

3.4.Notwithstanding the above, the Committee shall not be entitled to grant Options to the Optionees, however, it will be authorized to issue Shares underlying Options which have been granted by the Board and duly exercised pursuant to the provisions herein in accordance with Section 112(a)(5) of the Companies Law.

3.5.The Board shall have the authority to grant, at its discretion, to the holder of an outstanding Option, in exchange for the surrender and cancellation of such Option, a new Option having a purchase price equal to, lower than or higher than the Purchase Price of the original Option so surrendered and canceled and containing such other terms and conditions as the Committee may prescribe in accordance with the provisions of the ISOP.

3.6.The interpretation and construction by the Committee of any provision of the ISOP or of any Option Agreement thereunder shall be final and conclusive unless otherwise determined by the Board.

	
4.
	
DESIGNATION OF PARTICIPANTS

4.1.The persons eligible for participation in the ISOP as Optionees shall include any Employees and/or Non-Employees of the Company or of any Affiliate; provided, however, that (i) Employees may only be granted 102 Options; (ii) Non-Employees may only be granted 3(i) Options; and (iii) Controlling Shareholders may only be granted 3(i) Options. 

4.2.The grant of an Option hereunder shall neither entitle the Optionee to participate nor disqualify the Optionee from participating in, any other grant of Options pursuant to the ISOP or any other option or share plan of the Company or any of its Affiliates.

4.3.Anything in the ISOP to the contrary notwithstanding, all grants of Options to directors and office holders shall be authorized and implemented in accordance with the provisions of the Companies Law or any successor act or regulation, as in effect from time to time.

	
5.
	
DESIGNATION OF OPTIONS PURSUANT TO SECTION 102

5.1.The Company may designate Options granted to Employees pursuant to Section 102 as Unapproved 102 Options or Approved 102 Options.

5.2.The grant of Approved 102 Options shall be made under this ISOP adopted by the Board as described in Section 16 below, and shall be conditioned upon the approval of this ISOP by the ITA.

5.3.Approved 102 Option may either be classified as Capital Gain Option or Ordinary Income Option.

5.4.Approved 102 Option elected and designated by the Company to qualify under the capital gain tax treatment in accordance with the provisions of Section 102(b)(2) shall be referred to herein as CGO. 

5.5.Approved 102 Option elected and designated by the Company to qualify under the ordinary income tax treatment in accordance with the provisions of Section 102(b)(1) shall be referred to herein as OIO. 

5.6.The Company’s election of the type of Approved 102 Options as CGO or OIO granted to Employees (the “Election”), shall be appropriately filed with the ITA before the Date of Grant of an Approved 102 Option. Such Election shall become effective beginning the first Date of Grant of an Approved 102 Option under this ISOP and shall remain in effect until the end of the year following the 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 7 of 15

 

year during which the Company first granted Approved 102 Options. The Election shall obligate the Company to grant only the type of Approved 102 Option it has elected, and shall apply to all Optionees who were granted Approved 102 Options during the period indicated herein, all in accordance with the provisions of Section 102(g) of the Ordinance. For the avoidance of doubt, such Election shall not prevent the Company from granting Unapproved 102 Options simultaneously.

5.7.All Approved 102 Options must be held in trust by a Trustee, as described in Section 6 below.

5.8.For the avoidance of doubt, the designation of Unapproved 102 Options and Approved 102 Options shall be subject to the terms and conditions set forth in Section 102 of the Ordinance and the regulations promulgated thereunder.

5.9.With regards to Approved 102 Options, the provisions of the ISOP and/or the Option Agreement shall be subject to the provisions of Section 102 and the Tax Assessing Officer’s permit, and the said provisions and permit shall be deemed an integral part of the ISOP and of the Option Agreement. Any provision of Section 102 and/or the said permit which is necessary in order to receive and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified in the ISOP or the Option Agreement, shall be considered binding upon the Company and the Optionees.

	
6.
	
TRUSTEE

6.1.Approved 102 Options which shall be granted under the ISOP and/or any Shares allocated or issued upon exercise of such Approved 102 Options and/or other shares received subsequently following any realization of rights, including without limitation bonus shares, shall be allocated or issued to the Trustee and held for the benefit of the Optionees for such period of time as required by Section 102 or any regulations, rules or orders or procedures promulgated thereunder (the “Holding Period”). In the case the requirements for Approved 102 Options are not met, then the Approved 102 Options may be treated as Unapproved 102 Options, all in accordance with the provisions of Section 102 and regulations promulgated thereunder.  

6.2.Notwithstanding anything to the contrary, the Trustee shall not release any Shares allocated or issued upon exercise of Approved 102 Options prior to the full payment of the Optionee’s tax liabilities arising from Approved 102 Options which were granted to him and/or any Shares allocated or issued upon exercise of such Options. 

6.3.With respect to any Approved 102 Option, subject to the provisions of Section 102 and any rules or regulation or orders or procedures promulgated thereunder, an Optionee shall not sell or release from trust any Share received upon the exercise of an Approved 102 Option and/or any share received subsequently following any realization of rights, including without limitation, bonus shares, until the lapse of the Holding Period required under Section 102 of the Ordinance. Notwithstanding the above, if any such sale or release occurs during the Holding Period, the sanctions under Section 102 of the Ordinance and under any rules or regulation or orders or procedures promulgated thereunder shall apply to and shall be borne by such Optionee.

6.4.Upon receipt of Approved 102 Option, the Optionee will sign an undertaking to release the Trustee from any liability in respect of any action or decision duly taken and bona fide executed in relation with the ISOP, or any Approved 102 Option or Share granted to him thereunder. 

	
7.
	
SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON

7.1.The Company shall from time to time reserve, out of its authorized but unissued share capital, such number of Shares as the Board deems appropriate (subject to the Articles of Association) for the purposes of this ISOP and/or for the purposes of any other share option plans which have previously been, or may in the future be, adopted by the Company, subject to adjustment as set forth in Section 9 below. Any Shares which remain unissued and which are not subject to then outstanding 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 8 of 15

 

Options at the termination or expiration of this ISOP shall cease to be reserved for the purpose of this ISOP, but may continue to be reserved for other share option plans then in effect, and in any event, until termination of this ISOP the Company shall at all times reserve sufficient number of Shares to meet the requirements of any then outstanding Options. Should any Option for any reason expire or be canceled prior to its exercise or relinquishment in full, the Shares subject to such Option may again be subjected to a new Option under this ISOP or under the Company's other share option plans, provided, however, that Shares that have actually been issued under this ISOP shall not be returned to the pool under this ISOP and shall not become available for future distribution under this ISOP.

7.2.Each Option granted pursuant to the ISOP, shall be evidenced by a written Option Agreement between the Company and the Optionee, in such form as the Board or the Committee shall from time to time approve. Each Option Agreement shall state, among other matters, the number of Shares to which the Option relates, the type of Option granted thereunder (whether a CGO, OIO, Unapproved 102 Option or a 3(i) Option), the Vesting Dates, the Purchase Price per share, the Expiration Date and such other terms and conditions as the Committee or the Board in its discretion may prescribe, provided that they are consistent with this ISOP. 

7.3.Until the consummation of an IPO, such Shares shall be voted by an irrevocable proxy (the “Proxy”) pursuant to the directions of the Board, such Proxy to be assigned to the Trustee, who will abstain from any and all votes. The Trustee shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him/her, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with the voting of such Proxy unless arising out of such member's own fraud or bad faith, to the extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the person(s) may have as a director or otherwise under the Company's Articles of Association, any agreement, any vote of shareholders or disinterested directors, insurance policy or otherwise. Without derogating from the above, with respect to Approved 102 Options, such shares shall be voted in accordance with the provisions of Section 102 and any rules, regulations or orders promulgated thereunder.

	
8.
	
PURCHASE PRICE

8.1.The Purchase Price of each Share subject to an Option shall be equal to the Share's Fair Market Value or as otherwise determined by the Board in its sole and absolute discretion in accordance with applicable law, subject to any guidelines as may be determined by the Board from time to time. Each Option Agreement will contain the Purchase Price determined for each Option covered thereby (but in any event, not less than the nominal value of the Share issuable upon exercise thereof).        

8.2.The Purchase Price shall be payable upon the exercise of the Option in a form satisfactory to the Committee, including without limitation, by cash, check or wire transfer. The Committee shall have the authority to postpone the date of payment on such terms as it may determine.

8.3.The Purchase Price shall be denominated in the currency of the primary economic environment of, either the Company or the Optionee (that is the functional currency of the Company or the currency in which the Optionee is paid) as determined by the Company.

	
9.
	
ADJUSTMENTS

Upon the occurrence of any of the following described events, Optionee's rights to purchase Shares under the ISOP shall be adjusted as hereafter provided:

9.1.In the event of a Transaction or an IPO, or if the Company is voluntarily liquidated or dissolved while unexercised Options remain outstanding under the ISOP, the Company shall immediately notify all unexercised Option holders of such event, and the Option holders shall then 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 9 of 15

 

have twenty (20) days to exercise any unexercised Vested Option held by them at that time, in accordance with the exercise procedure set forth herein, or in the case of a merger or acquisition – to convert such Options into options in the acquiring or merging entity, all pursuant to the Board's determination and full discretion. Notwithstanding the above and subject to any applicable law, the Board shall have full power and authority to determine different mechanisms with respect to unexercised Options outstanding under the ISOP.

9.2.If the outstanding shares of the Company shall at any time be changed or exchanged by declaration of a share dividend (bonus shares), share split, combination or exchange of shares, recapitalization, or any other like event by or of the Company, and as often as the same shall occur, then the number, class and kind of the Shares subject to the ISOP or subject to any Options therefore granted, and the Purchase Prices, shall be appropriately and equitably adjusted so as to maintain the proportionate number of Shares without changing the aggregate Purchase Price, provided, however, that no adjustment shall be made by reason of the distribution of subscription rights (rights offering) on outstanding shares. Upon happening of any of the foregoing, the class and aggregate number of Shares issuable pursuant to the ISOP (as set forth in Section 7 hereof), in respect of which Options have not yet been exercised, shall be appropriately adjusted, all as will be determined by the Board whose determination shall be final.

9.3.Anything herein to the contrary notwithstanding, if prior to the completion of the IPO all or substantially all of the shares of the Company are to be sold, or in case of a Transaction, all or substantially all of the shares of the Company are to be exchanged for securities of another Company, then each Optionee shall be obliged to sell or exchange, as the case may be, any Shares such Optionee purchased under the ISOP, in accordance with the instructions issued by the Board in connection with the Transaction, whose determination shall be final.

	
10.
	
TERM AND EXERCISE OF OPTIONS

10.1.Options shall be exercised by the Optionee by giving written notice to the Company, in such form and method as may be determined by the Company and when applicable, by the Trustee in accordance with the requirements of Section 102, which exercise shall be effective upon receipt of such notice by the Company and the payment of the Purchase Price at the Company’s principal office. The notice shall specify the number of Shares with respect to which the Option is being exercised.

10.2.Options, to the extent not previously exercised, shall terminate forthwith upon (a) the later of: (i) the date set forth in the Option Agreement; (ii) the expiration of seven (7) years from the Date of Grant, or (iii) the expiration of nine (9) month period as or the effective date of the Company’s initial registration statement under the Securities Act of 1933; or to the extent applicable (b) the expiration of any extended period in any of the events set forth in Section 10.5 below.

10.3.The Options may be exercised by the Optionee in whole at any time or in part from time to time, to the extent that the Options become vested and exercisable, prior to the Expiration Date, and provided that, subject to the provisions of section 10.5 below, the Optionee is employed by or providing services to the Company or any of its Affiliates, at all times during the period beginning with the granting of the Option and ending upon the date of exercise.

10.4.Subject to the provisions of Section 10.5 below, in the event of termination of Optionee’s employment or services, with the Company or any of its Affiliates, all Options granted to such Optionee will immediately expire. A notice of termination of employment or service shall be deemed to constitute termination of employment or service. For the avoidance of doubt, in case of such termination of employment or service, the unvested portion of the Optionee’s Option shall not vest and shall not become exercisable.

10.5.Notwithstanding anything to the contrary hereinabove and unless otherwise determined in the Optionee’s Option Agreement, an Option may be exercised after the date of 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 10 of 15

 

termination of Optionee's employment or service with the Company or any Affiliates during an additional period of time beyond the date of such termination, but only with respect to the number of Vested Options at the time of such termination according to the Vesting Dates, if: 

10.5.1.termination is without Cause, in which event any Vested Option still in force and unexpired may be exercised within a period of ninety (90) days after the date of such termination, and in case of retiring members of the board of directors, subject to Section 10.2 above, the later of (i) the closing of a Transaction, (ii) 3rd (third) anniversary of the retirement date, and (iii) the expiration of nine (9) month period as or the effective date of the Company’s initial registration statement under the Securities Act of 1933; or

10.5.2.termination is the result of death or Disability of the Optionee, in which event any Vested Option still in force and unexpired may be exercised within a period of twelve (12) months after the date of such termination; or -

10.5.3.prior to the date of such termination, the Committee shall authorize an extension of the terms of all or part of the Vested Options beyond the date of such termination for a period not to exceed the period during which the Options by their terms would otherwise have been exercisable.

10.5.4.For avoidance of any doubt, if termination of employment or service is for Cause, any outstanding unexercised Option (whether vested or non-vested), will immediately expire and terminate, and the Optionee shall not have any right in connection to such outstanding Options.

10.6.To avoid doubt, the Optionees shall not have any of the rights or privileges of shareholders of the Company in respect of any Shares purchasable upon the exercise of any Option, nor shall they be deemed to be a class of shareholders or creditors of the Company for purpose of the operation of Sections 350 and 351 of the Companies Law or any successor to such section, until registration of the Optionee as holder of such Shares in the Company’s register of shareholders upon exercise of the Option in accordance with the provisions of the ISOP, but in case of Options and Shares held by the Trustee, subject to the provisions of Section 6 above.

10.7.Any form of Option Agreement authorized by the ISOP may contain such other provisions as the Committee may, from time to time, deem advisable. 

10.8.With respect to Unapproved 102 Option, if the Optionee ceases to be employed by the Company or any Affiliate, the Optionee shall extend to the Company and/or its Affiliate a security or guarantee for the payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102 and the rules, regulation or orders promulgated thereunder.

	
11.
	
VESTING OF OPTIONS

11.1.Subject to the provisions of the ISOP, each Option shall vest following the Vesting Dates and for the number of Shares as shall be provided in the Option Agreement. However, no Option shall be exercisable after the Expiration Date. Unless the Committee provides otherwise, vesting of Options granted hereunder shall be tolled during any unpaid leave of absence. 

11.2.Unless otherwise stated in the Optionee's Option Agreement, all Options granted pursuant to this ISOP, shall vest annually, in four (4) equal portions, over a 4-year period from its Date of Grant, with twenty five percent (25%) of such Options becoming vested at the end of each twelve (12) month period following the Date of Grant.

11.3.An Option may be subject to such other terms and conditions on the time or times when it may be exercised, as the Board may deem appropriate. The vesting provisions of individual Options may vary.

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 11 of 15

 

11.4.In the event of Change of Control all unvested options shall immediately become fully vested in their entirety. 

“Change of Control” means any of the following events: (a) sale of all or substantially all of the shares of the Company; or (b) a merger, consolidation, reorganization of the Company or a similar business combination, in which the Company is not the surviving entity; or (c) the sale, transfer or other disposition of all or substantially all of the Company’s assets or, all or substantially all of the shares of the Company are to be exchanged for securities of another Company.

11.5.Cashless (Net) Exercise.  In the event of Change of Control, in lieu of cash payment method, the Optionee may elect, at any time, to exchange the Options for a number of Shares equal to the increase in value of the Shares otherwise purchasable hereunder on the date of exchange (“Cashless (Net) Exercise”).  If the Optionee elects to exchange the Options as provided in this Section 11.5, the Optionee shall tender to the Company the Options along with the notice of exercise, and the Company shall issue to the Optionee the number of Shares computed using the following formula:

X = Y (A-B)

           A

 

			
	
Where:
	
X =
	
the number of Shares to be issued to the Optionee.

	
 
	
 
	
 

	
 
	
Y =
	
a number of Shares purchasable under the Options (as adjusted to the date of such calculation, but excluding those shares already issued under the Options).

	
 
	
 
	
 

	
 
	
A =
	
the Fair Market Value (as defined below) of one share of the Company’s Shares.

	
 
	
 
	
 

	
 
	
B =
	
Exercise Price (as adjusted to the date of such calculation).

	
 
	
 
	
 

	
 
	
“Fair Market Value” of a Share shall mean:

	
 
	
 
	
 

	
 
	
(i)
	
Except as set forth in paragraph 0 (below), if the exercise of this Options is immediately prior to a Transaction, then the price per share paid by purchaser of the Company’s securities (or deemed price per share paid for the Company’s assets).

	
 
	
 
	
 

	
 
	
(ii)
	
If the Exercise Date is the closing of the IPO then the IPO price per share in such offering.

 

	
12.
	
SHARES SUBJECT TO RIGHT OF FIRST REFUSAL

12.1.Notwithstanding anything to the contrary in the Articles of Association of the Company, none of the Optionees shall have a right of first refusal in relation with any sale of shares in the Company.

12.2.Unless otherwise determined by the Committee, until such time as the Company shall complete an IPO, an Optionee shall not have the right to sell Shares issued upon the exercise of an Option within six (6) months and one day of the date of exercise of such Option or issuance of such Shares. Unless otherwise determined by the Committee, until such time as the Company shall complete an IPO, the sale of Shares issuable upon the exercise of an Option shall be subject to a right of first refusal on the part of the Repurchaser(s), in accordance with the applicable provision set forth in the Company Articles of Association, in effect at the pertinent time and as amended from time to time.

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 12 of 15

 

12.3.Repurchaser(s) means (i) the Company, if permitted by applicable law, (ii) if the Company is not permitted by applicable law, then any affiliate of the Company designated by the Committee; or (iii) if no decision is reached by the Committee, then the Company’s existing shareholders (save, for avoidance of doubt, for other Optionees who already exercised their Options), pro rata in accordance with their shareholding.

12.4.Any sale of Shares issued under the ISOP by the Optionee that is not made in accordance with the ISOP or the Option Agreement or the Articles of Association of the Company, shall be null and void.

12.5.Prior to the IPO, and in addition to the right refusal, any transfer of Shares by an Optionee shall require the approval of the Board as to the identity of the transferee and as may be required under the Article of Association. The Board may refuse to approve the transfer of Shares by an Optionee to any other person or entity the Board determines, in its discretion, may be detrimental to the Company, including without limitation to a competitor of the Company. 

12.6.Notwithstanding anything herein to the contrary, the Optionee shall be bound by the "bring along" provisions of the Articles of Association and/or any agreement among the Company and all or substantially all of its shareholders, as in effect from time to time, to the effect that if, prior to the completion of the IPO, shareholders holding a certain percentage of the Company's share capital (as set forth in such agreement) ("Proposing Holders"), elect to sell all of their equity securities in the Company to a third party, or agree to merge or consolidate the Company with or into another entity, and such sale or merger is conditioned upon the sale of all remaining stock of the Company to such third party, or to agreement of all of the shareholders, the Optionees shall be required, if so demanded by the Proposing Holders, to sell or transfer all of their equity securities in the Company to such third party as stipulated in the Articles of Association or such other shareholders agreement referred to herein. If no specific percentage of Proposing Holders is stipulated in the Article of Association or such a shareholders agreement, then the percentage for the purposes of this Section and for the purpose of Section 341 of the Companies Law shall be seventy percent (70%). 

	
13.
	
DIVIDENDS

With respect to all Shares (but excluding, for avoidance of any doubt, any unexercised Options) allocated or issued upon the exercise of Options purchased by the Optionee and held by the Optionee or by the Trustee, as the case may be, the Optionee shall be entitled to receive dividends in accordance with the quantity of such Shares, subject to the provisions of the Company’s Articles of Association (and all amendments thereto) and subject to any applicable taxation on distribution of dividends, and when applicable subject to the provisions of Section 102 and the rules, regulations or orders promulgated thereunder.

	
14.
	
CONDITIONS UPON ISSUANCE OF SHARES 

14.1.Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.

14.2.Investment Representations. As a condition to the exercise of an Option, the Committee may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

14.3.Lock Up. As a condition to the exercise of an Option the Optionee will sign and execute a lock up agreement, prohibiting the Optionee from, pledging, selling, contracting to sell, or 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 13 of 15

 

otherwise dispose of or transfer any with respect to the Shares for such a period, and on such terms and conditions, as determined by the Board at its sole and absolute discretion.

	
15.
	
RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS

15.1.Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee, or by his guardian or legal representative to the extent provided for herein. An Optionee may file with the Board a written designation of the beneficiary on such form as may be prescribed by the Board and may from time to time amend or revoke such designation. If no designated beneficiary survives the Optionee, then the executor or administrator of the Optionee estate shall be deemed to be the Optionee’s beneficiary.

15.2.As long as Options and/or Shares are held by the Trustee on behalf of the Optionee, all rights of the Optionee over the Shares are personal, cannot be transferred, assigned, pledged or mortgaged, other than by will or pursuant to the laws of descent and distribution. 

	
16.
	
EFFECTIVE DATE AND DURATION OF THE ISOP

The ISOP shall be effective as of the day it was adopted by the Board and shall terminate at the end of ten (10) years from such day of adoption.

The Company shall obtain the approval of the Company’s shareholders for the adoption of this ISOP or for any amendment to this ISOP, if shareholders’ approval is necessary or desirable to comply with any applicable law, or if shareholders' approval is required by any authority or by any governmental agencies or national securities exchanges.

	
17.
	
PURCHASE FOR INVESTMENT, REPRESENTATIONS

17.1.Upon the grant of Options to an Optionee or the issuance of Shares upon the exercise thereof, the Company shall obtain from the Optionee the representations and undertakings as follows, and any other representations and warranties that the Committee may deem advisable, and the giving of such representations and warranties by the Optionee shall be condition precedent to Optionee's right to receive the Option and/or be issued the Shares upon exercise thereof: 

(a)That the Optionee knows that there is no certainly that the exercise of the Options will be financially worthwhile. The Optionee thereby undertakes not to have any claim against the Company or any of its directors, employees, stockholders or advisors if it emerges, at the time of exercising the Options, that the Optionee's investment in the Company's Shares was not worthwhile, for any reason whatsoever. 

(b)That the Optionee knows and understands that his rights regarding the Options and the Shares are subject for all intents and purposes to the instructions of the Company's documents of incorporation and to the agreements of the shareholders in the Company.

(c)That the Optionee knows that neither this ISOP nor the grant of Option or Shares thereunder shall impose any obligation on the Company to continue the engagement of the Optionee, and nothing in this ISOP or in any Option or Shares granted pursuant thereto shall confer upon any Optionee any right to continue being engaged by the Company, or restrict the right of the Company to terminate such engagement at any time.

17.2.That the Optionee knows and agrees that it is possible that in the next future issuances by the Company of any additional share capital or other rights or securities convertible into or exchangeable foe share capital of the Company, without consideration or for consideration, the price per share will be less than the price determined herein, and that in such event the Optionee will in no event be entitled to any right to full ratchet anti-dilution protection.  

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 14 of 15

 

	
18.
	
INABILITY TO OBTAIN AUTHORITY

The inability of the Company to obtain authority from any regulatory body having jurisdiction, or corporate organ which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

	
19.
	
AMENDMENTS OR TERMINATION

The Board may at any time, but when applicable, after consultation with the Trustee, amend, alter, suspend or terminate the ISOP. No amendment, alteration, suspension or termination of the ISOP shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Company, which agreement must be in writing and signed by the Optionee and the Company. Termination of the ISOP shall not affect the Committee’s ability to exercise the powers granted to it hereunder with respect to Options granted under the ISOP prior to the date of such termination.

	
20.
	
GOVERNMENT REGULATIONS

The ISOP, and the granting and exercise of Options hereunder, and the obligation of the Company to sell and deliver Shares under such Options, shall be subject to all applicable laws, rules, and regulations, whether of the State of Israel or any other state having jurisdiction over the Company and the Optionee, and the Ordinance and to such approvals by any governmental agencies or national securities exchanges as may be required. Nothing herein shall be deemed to require the Company to register the Shares under the securities laws of any jurisdiction.

	
21.
	
CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES

Neither the ISOP nor the Option Agreement with the Optionee shall impose any obligation on the Company or an Affiliate thereof, to continue any Optionee in its employ or service, and nothing in the ISOP or in any Option granted pursuant thereto shall confer upon any Optionee any right to continue in the employ or service of the Company or an Affiliate thereof or restrict the right of the Company or an Affiliate thereof to terminate such employment or service at any time.

	
22.
	
GOVERNING LAW & JURISDICTION

The ISOP shall be governed by and construed and enforced in accordance with the laws of the State of Israel applicable to contracts made and to be performed therein, without giving effect to the principles of conflict of laws. The competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining to the ISOP.

	
23.
	
INTEGRATION OF SECTION 102 AND TAX COMMISSIONER'S PERMIT

23.1.With regards to Approved 102 Options, the provisions of this ISOP and the Option Agreement shall be subject to the provisions of Section 102 and the ITA's permit, and the said provisions and permit shall be deemed an integral part of this ISOP and of the individual Option Agreement with each Optionee.

23.2.Any provision of Section 102 and/or the said permit which is necessary in order to receive and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified in this ISOP or the individual Option Agreement of the Optionees, shall be considered binding upon the Company and the Optionees. 

	
24.
	
TAX CONSEQUENCES

24.1.Any tax consequences arising from the grant or exercise of any Option, from the payment for Shares covered thereby or from any other event or act (of the Company and/or its Affiliates, the Trustee or the Optionee), hereunder, shall be borne solely by the Optionee. The Company and/or its Affiliates and/or the Trustee shall withhold taxes according to the requirements 

 

 

	
	
UroGen Pharma Ltd.

(formerly TheraCoat Ltd.)

 

AMENDED AND RESTATED ISRAELI 2010 SHARE OPTION PLAN 

Page 15 of 15

 

under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Optionee shall agree to indemnify the Company and/or its Affiliates and/or the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Optionee.

24.2.The Company and/or, when applicable, the Trustee shall not be required to release any Share certificate to an Optionee until all required payments have been fully made.

	
25.
	
NON-EXCLUSIVITY OF THE ISOP

The adoption of the ISOP by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangements or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of Options otherwise than under the ISOP, and such arrangements may be either applicable generally or only in specific cases. 

For the avoidance of doubt, prior grant of options to Optionees of the Company under their employment agreements, and not in the framework of any previous option plan, shall not be deemed an approved incentive arrangement for the purpose of this Section 25.

	
26.
	
MULTIPLE AGREEMENTS

The terms of each Option may differ from other Options granted under the ISOP at the same time, or at any other time. The Board may also grant more than one Option to a given Optionee during the term of the ISOP, either in addition to, or in substitution for, one or more Options previously granted to that Optionee.CERTAIN
CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A

COMPLETE VERSION OF THIS EXHIBIT
HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE

SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING
CONFIDENTIAL

TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS AMENDED.

 

DEVELOPMENT,
COMMERCIALIZATION AND SUPPLY AGREEMENT

 

DATED
AS OF NOVEMBER 3, 2017

 

BY
AND BETWEEN

 

VASCULAR
BIOGENICS LTD.

 

AND

 

NANOCARRIER
CO., LTD.

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

	ARTICLE
    1	 	DEFINITIONS	1
	 	 	 	 
	ARTICLE
    2	 	LICENSES	13
	 	 	 	 
	2.1	 	Grant
    to Licensee	13
	2.2	 	Grant
    to VBL	14
	2.3	 	Additional
    Licensing Provisions	14
	2.4	 	Restrictive
    Covenants	14
	 	 	 	 
	ARTICLE
    3	 	GOVERNANCE	15
	 	 	 	 
	3.1	 	Governance
    Committees	15
	3.2	 	Committees	18
	3.3	 	Limits
    on Committee Authority	18
	3.4	 	Actions	18
	3.5	 	Exchange
    of Information	18
	3.6	 	Minutes
    of Committee Meetings	19
	3.7	 	Expenses	19
	 	 	 	 
	ARTICLE
    4	 	DEVELOPMENT	19
	 	 	 	 
	4.1	 	Overview	19
	4.2	 	Objectives
    Under the Development Plan	20
	4.3	 	Development
    Plan and Development Budget	21
	4.4	 	Development
    Costs	22
	4.5	 	Records,
    Reports and Information	23
	4.6	 	Ownership
    and Transfer of Development Data	23
	4.7	 	Right
    to Audit	24
	 	 	 	 
	ARTICLE
    5	 	REGULATORY	24
	 	 	 	 
	5.1	 	Regulatory
    Data and Regulatory Materials	24
	5.2	 	Regulatory
    Filings and Regulatory Approvals	25
	5.3	 	Communications	26
	5.4	 	No
    Other Regulatory Filings	27
	5.5	 	Rights
    of Reference	27
	5.6	 	Adverse
    Event Reporting, Safety Data Exchange and Medical Inquiries	27
	5.7	 	Regulatory
    Authority Communications Received by a Party	28
	5.8	 	Recall,
    Withdrawal, or Market Notification of Product	29
	 	 	 	 
	ARTICLE
    6	 	COMMERCIALIZATION	30
	 	 	 	 
	6.1	 	Commercialization
    in the Field in the Territory	30
	6.2	 	Commercialization
    Plan	31
	6.3	 	Licensee’s
    Performance	32
	6.4	 	Reports	33
	6.5	 	Compliance	33
	6.6	 	Compliance
    Audit	35
	6.7	 	Provisions
    applicable to Sales Representatives and/or Medical Science Liaisons	36
	6.8	 	Promotional
    Materials	37
	6.9	 	Product
    Trademarks and Product Trade Dress	38
	6.10	 	Global
    Branding Strategy	39
	6.11	 	Commercialization
    Data	40

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

	ARTICLE
    7	 	SUPPLY	40
	 	 	 	 
	7.1	 	VBL
    Supply Obligations	40
	7.2	 	Exclusivity	41
	7.3	 	Packaging
    and Labeling; Certain Other Manufacturing Activities	41
	7.4	 	Forecasting
    and Ordering	42
	7.5	 	Supply
    Price and Invoicing	43
	7.6	 	Shipping
    and Delivery	44
	7.7	 	Quality
    and Compliance	45
	7.8	 	Disputes
    and Remedies	46
	7.9	 	Shortages	47
	7.10	 	Major
    Supply Failure	47
	7.11	 	Product
    Specification and Manufacturing Changes	48
	7.12	 	Termination
    of Supply Obligations	48
	 	 	 	 
	ARTICLE
    8	 	PAYMENTS	49
	 	 	 	 
	8.1	 	Upfront
    Payment	49
	8.2	 	Milestone
    Payments	49
	8.3	 	Royalty
    Payments; Sublicense Income	51
	8.4	 	Royalty
    Stacking	52
	8.5	 	Royalty
    Reports and Payment Procedures	52
	8.6	 	Taxes
    and Withholding	52
	8.7	 	Withholding
    Tax	53
	8.8	 	Currency
    Conversion	53
	8.9	 	General
    Payment Procedures	53
	8.10	 	Late
    Payments	53
	8.11	 	Financial
    Records and Audit	54
	 	 	 	 
	ARTICLE
    9	 	INTELLECTUAL
    PROPERTY MATTERS	55
	 	 	 	 
	9.1	 	Ownership
    of Intellectual Property	55
	9.2	 	Patent
    Filings, Prosecution and Maintenance	55
	9.3	 	Defense
    and Enforcement of Patents	57
	9.4	 	Patent
    Term Extensions	59
	9.5	 	Patent
    Marking	59
	9.6	 	Patent
    Challenge	59
	 	 	 	 
	ARTICLE
    10	 	REPRESENTATIONS,
    WARRANTIES AND COVENANTS	59
	 	 	 	 
	10.1	 	Mutual
    Representations and Warranties	59
	10.2	 	Additional
    Representations, Warranties and Covenants of VBL	60
	10.3	 	Additional
    Representations, Warranties and Covenants of Licensee	61
	10.4	 	Disclaimer	62
	10.5	 	No
    Other Representations or Warranties	62

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

	ARTICLE
    11	 	INDEMNIFICATION	62
	 	 	 	 
	11.1	 	Indemnification
    by VBL	62
	11.2	 	Indemnification
    by Licensee	63
	11.3	 	Indemnification
    Procedures	63
	11.4	 	Limitation
    of Liability	63
	11.5	 	Insurance	63
	 	 	 	 
	ARTICLE
    12	 	CONFIDENTIALITY	64
	 	 	 	 
	12.1	 	Confidential
    Information	64
	12.2	 	Confidentiality
    Obligations	65
	12.3	 	Permitted
    Disclosure and Use	65
	12.4	 	Notification	65
	12.5	 	Publicity;
    Filing of this Agreement	66
	12.6	 	Publication	67
	12.7	 	Use
    of Names	67
	12.8	 	Survival	67
	 	 	 	 
	ARTICLE
    13	 	TERM
    AND TERMINATION	67
	 	 	 	 
	13.1	 	Term	67
	13.2	 	Termination
    for Breach	68
	13.3	 	Termination
    as a Result of Bankruptcy	68
	13.4	 	Termination
    by Licensee for Convenience	68
	 	 	 	 
	ARTICLE
    14	 	EFFECTS
    OF TERMINATION AND EXPIRATION	68
	 	 	 	 
	14.1	 	Termination	68
	14.2	 	Expiration
    of this Agreement	72
	14.3	 	Accrued
    Rights	72
	14.4	 	Survival	72
	14.5	 	Rights
    in Bankruptcy	72
	 	 	 	 
	ARTICLE
    15	 	DISPUTE
    RESOLUTION	73
	 	 	 	 
	15.1	 	Disputes	73
	15.2	 	Arising
    Between the Parties	73
	15.3	 	Dispute
    Resolutions	73
	15.4	 	Patent
    and Trademark Dispute Resolution	74
	15.5	 	Injunctive
    Relief	74
	 	 	 	 
	ARTICLE
    16	 	MISCELLANEOUS	75
	 	 	 	 
	16.1	 	Entire
    Agreement; Amendment	75
	16.2	 	Force
    Majeure	75
	16.3	 	Notices	75
	16.4	 	No
    Strict Construction; Interpretation	76
	16.5	 	Assignment	76
	16.6	 	Severability	76
	16.7	 	No
    Waiver of Breach	76
	16.8	 	Partnership
    or Joint Venture	77
	16.9	 	English
    Language; Governing Law	77
	16.10	 	Execution
    in Counterparts	77

 

	Schedules:	 
	 	 
	Schedule
    1.78	VBL
    Patents
	Schedule
    4.3.2	Initial
    Development Plan
	Schedule
    12.5.1	Press
    Release

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

DEVELOPMENT,
COMMERCIALIZATION AND SUPPLY AGREEMENT

 

This
Development, Commercialization and Supply Agreement (this “Agreement”) is entered into as of the 3rd day of
November, 2017 (the “Effective Date”) by and among Vascular Biogenics Ltd., a company incorporated under the
laws of Israel, doing business as VBL Therapeutics, with offices at 6 Jonathan Netanyahu Street, OrYehuda, 60376, Israel (“VBL”),
and NanoCarrier Co., Ltd., a company incorporated under the laws of Japan, with offices at 144-15 Chuo, 226-39 Wakashiba, Kashiwa,
Chiba, 277-0871, Japan (“Licensee”). VBL and Licensee are sometimes referred to herein individually as a “Party”
and collectively as the “Parties.” 

 

RECITALS

 

Whereas,
VBL owns certain intellectual property and regulatory rights relating to a drug known as VBL-111 (ofranergene obadenovec) (the
“Product” as defined in more detail below);

 

Whereas,
Licensee has experience in the development and
commercialization of pharmaceutical products in the Territory; and

 

Whereas,
Licensee and VBL desire to establish a collaboration for the further development and commercialization of the Product in the Field
in the Territory.

 

Now
Therefore, in consideration of the foregoing
premises and the mutual promises, covenants and conditions contained in this Agreement, the Parties agree as follows:

 

ARTICLE
1

DEFINITIONS

 

As
used in this Agreement, the following initially capitalized terms shall have the meanings set forth in this ARTICLE 1 or as otherwise
defined elsewhere in this Agreement:

 

1.1
“Accounting Standards” means (a) with respect to VBL, the International Financial Reporting Standards (IFRS) and
(b) with respect to Licensee, Japanese Generally Accepted Accounting Principles (JGAAP), in each case as consistently applied.

 

1.2
“Affiliate” means, as of the Effective Date or during the Term, as applicable, in relation to a Party, any person,
corporation, firm or partnership or other entity, whether de jure or de facto, that directly or indirectly through
one or more intermediaries controls, is controlled by or is under common control with such Party. An entity shall be deemed to
control another entity if it: (a) owns, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities
or share capital (or such lesser percentage which is the maximum allowed to be owned by a foreign corporation in a particular
jurisdiction) of such other entity, or has other comparable ownership interest with respect to any entity other than a corporation,
or (b) has the power, whether pursuant to contract, ownership of securities or otherwise, to direct the management and policies
of the entity. For the avoidance of doubt, neither of the Parties, or any of their respective Affiliates, shall be deemed to be
an “Affiliate” of such other entity.

 

1.3
 “Anti-Corruption Laws” means the U.S. Foreign Corrupt Practices Act, as amended, and any similar anti-corruption-related
Applicable Laws adopted in Japan or Israel, as well as Applicable Laws related to the prevention of fraud, racketeering, money
laundering or terrorism.

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.4
“Applicable Laws” means any and all statutes, ordinances, regulations, rules, treaties or guidance of any
kind whatsoever and any and all requirements under permits, orders, decrees, judgments or directives and requirements of applicable
Governmental Authorities, in each case pertaining to any of the activities contemplated by this Agreement, including GMP, GCP,
GLP, GXP and any other regulations and guidelines promulgated by any Regulatory Authority in the Territory, all as amended from
time to time.

 

1.5
“Approval Application” means an application to the applicable Regulatory Authority, seeking registration of the
Product for sale in the Territory.

 

1.6
“Business Day” means a day other than a Saturday, Sunday, or a day on which banking institutions in Tel Aviv,
Israel or Tokyo, Japan are closed.

 

1.7
“Calendar Quarter” means each successive period of three (3) calendar months commencing on January 1, April 1,
July 1 and October 1; provided, that (a) the first Calendar Quarter hereunder shall be deemed to commence upon the Effective Date
and (b) the final Calendar Quarter hereunder shall be deemed to expire upon the effective date of expiration or termination of
this Agreement.

 

1.8
“Calendar Year” means (a) for the first calendar year, the period commencing on the Effective Date and ending
on December 31, 2017, (b) for each successive period, beginning on January 1 and ending twelve (12) consecutive calendar months
later on December 31, and (c) for the calendar year in which this Agreement is terminated, the period beginning on January 1 of
such calendar year and ending on the effective date of the termination of this Agreement.

 

1.9
“Commercialize”, “Commercializing” or “Commercialization” means all activities
directed to the marketing, promotion, selling or offering for sale of a Product for an indication, including planning, market
research, Pre-Marketing, advertising, educating, marketing, promoting, using importing, exporting, distributing and post-marketing
safety surveillance and reporting. For clarity, “Commercialization” shall not include any activities related to clinical
research, Manufacturing or Development of the Product.

 

1.10
“Commercialization Activities” means those Commercialization activities undertaken by or on behalf of a Party
or its Affiliates with respect to the Product in the Field.

 

1.11
“Commercially Reasonable Efforts” means, with respect to a Party’s obligation to perform or achieve a specified
obligation for the Product or generally under this Agreement, the efforts, expertise, degree of skill, and resources that are
comparable in quality and scope to those efforts, expertise, degree of skill and resources that are generally used by such Party
to perform or achieve a comparable obligation for a comparable pharmaceutical product Controlled by such Party, but in any event,
a Party’s effort shall be no less than the effort that a comparable pharmaceutical company would expend with respect to
a comparable pharmaceutical product Controlled by such company. Without limiting the foregoing, Commercially Reasonable Efforts
requires, with respect to such obligations, that the Party: (i) promptly assign responsibility for such obligation to specific
employee(s) who are held accountable for progress and monitor such progress on an on-going basis, (ii) set objectives for carrying
out such obligations, and (iii) allocate resources designed to advance progress with respect to such objectives.

 

    	2

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.12
“Committee” means the Joint Management Committee, the Joint Clinical Committee, the Joint Commercialization and
Sales Committee and such other committees as may be established pursuant to Section 3.2 hereof.

 

1.13
“Control” means, with respect to any Know-How, physical material, patent right, or other intellectual property
right, possession by a Party or its Affiliates (whether by ownership, license grant or other means) of the legal right to grant
the right to access or use, or to grant a license or a sublicense to, such Know-How, physical material, patent right, or other
intellectual property right as provided for herein without violating the proprietary rights of any Third Party or any terms of
any agreement or other arrangement between such Party (or any of its Affiliates) and any Third Party.

 

1.14
“Cover(ed)” means, with respect to any Patent and the subject matter at issue, that, but for a license granted
under a Valid Claim of such Patent, the manufacture, development, use, sale, offer for sale or importation of the subject matter
at issue would infringe such Valid Claim, or in the case of a Patent that is a patent application, would infringe a Valid Claim
in such patent application if it were to issue as a patent.

 

1.15
“CTA” means an application to the applicable Regulatory Authority, such as a clinical trial application or a clinical
trial exemption, the filing of which is necessary to commence or conduct clinical testing of a pharmaceutical product in humans
in such jurisdiction.

 

1.16
“Develop”, “Developing” or “Development” means all activities relating to
both non-GLP and GLP preclinical studies and clinical trials, and such additional testing, analysis and reporting, as necessary
or otherwise requested or required by a Regulatory Authority as a condition or in support of obtaining or maintaining all Regulatory
Approvals, including Phase IV Clinical Trials and other post-Regulatory Approval studies that are required to obtain or maintain
Regulatory Approval. For clarity, “Development” shall exclude any activities related to Commercialization or Manufacture.

 

1.17
“Development Activities” means those Development activities undertaken by or on behalf of a Party or its Affiliates
with respect to the Product in the Field.

 

1.18
“Development Costs” means the costs and expenses incurred by a Party or its Affiliates attributable to, or reasonably
allocable to, the Development of the Product in the Field, including costs of conducting clinical trials and Phase IV Clinical
Trials (as well as other post-Regulatory Approval studies (including physician-initiated studies)). “Development Costs”
shall include (i) Out-of-Pocket Costs and (ii) internal costs (e.g., staff or administrative) that are attributable to,
or reasonably allocable to, the Development of the Product in the Field. For clarity, Development Costs shall exclude Regulatory
Costs.

 

1.19
“Dollar” means a U.S. dollar, and “$” shall be interpreted accordingly.

 

1.20
“Drug Administration Law” means the laws, rules and regulation applicable to drug administration in the
Territory, as amended from time to time.

 

    	3

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.21
“Facility” means, as applicable, a Party’s Manufacturing facility and such other facilities used by such
Party (or those of its Affiliates or Third Party contractors) in the manufacture, packaging, labeling or storage of (i) Product,
(ii) Finished Product, or (iii) materials utilized in the Manufacture or Packaging and Labeling of Product, including raw materials,
auxiliary materials, intermediates, containers and packing materials, in each case with respect to the Product for Development
or Commercialization in the Field in the Territory hereunder.

 

1.22
“FDA” means the U.S. Food and Drug Administration or its successor.

 

1.23
“FD&C Act” means the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. 301 et seq, as it may be
amended from time to time, and relevant regulations and guidelines promulgated thereunder.

 

1.24
“Field” means use in humans.

 

1.25
“Finished Product” means the Product in frozen vials, in full Packaging and Labeling and final presentation form
ready for release to end-users.

 

1.26
“First Commercial Sale” means, with respect to a Product, the first sale of such Product in the Territory by or
on behalf of Licensee or its Affiliates to a Third Party (including wholesalers or distributors), after receipt of Regulatory
Approval for such Product in the Territory.

 

1.27
“Force Majeure” means circumstances beyond the reasonable control of either Party, including acts of God,
fires, explosions, earthquakes, floods, droughts, riots, acts of terrorism, wars, civil disturbances, sabotage, cyber attacks,
accidents, strikes or other labor disputes, unforeseen material shortages or supplier failures, compliance with any government
action or any other event or circumstance of the like of different character to the foregoing beyond the reasonable control and
without the fault or negligence of a Party.

 

1.28
“General Development Activities” means all Development Activities other than Territory Development Activities.

 

1.29
“Good Clinical Practices” or “GCP” means all applicable Good Clinical Practice standards for
the design, conduct, performance, monitoring, auditing, recording, analyses and reporting of clinical trials, including, as applicable,
(i) those standards required by the PMDA, (ii) as set forth in the International Conference on Harmonisation of Technical Requirements
for Registration of Pharmaceuticals for Human Use (“ICH”) Harmonised Tripartite Guideline for Good Clinical
Practice (CPMP/ICH/135/95) and any other guidelines for good clinical practice for trials on medicinal products in the Territory,
(iii) the Declaration of Helsinki (2004) as last amended at the 52nd World Medical Association in October 2000 and any further
amendments or clarifications thereto, (iv) U.S. Code of Federal Regulations Title 21, Parts 50 (Protection of Human Subjects),
56 (Institutional Review Boards) and 312 (Investigational New Drug Application), as may be amended from time to time, and (v)
the equivalent Applicable Laws in any relevant country, each as may be amended and applicable from time to time and in each case,
that provide for, among other things, assurance that the clinical data and reported results are credible and accurate and protect
the rights, integrity, and confidentiality of trial subjects.

 

    	4

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.30
“Good Laboratory Practices” or “GLP” means all applicable Good Laboratory Practice standards,
including, as applicable, (i) those standards required by the PMDA, (ii) as set forth in the then-current good laboratory practice
standards promulgated or endorsed by the FDA as defined in 21 C.F.R. Part 58, and (iii) the equivalent Applicable Laws in any
relevant country, each as may be amended and applicable from time to time.

 

1.31
“Good Manufacturing Practices” or “GMP” means all applicable Good Manufacturing Practices including,
as applicable, (i) those standards required by the PMDA, (ii) the principles detailed in the U.S. Current Good Manufacturing Practices,
21 C.F.R. Sections 210, 211, 601 and 610, (iii) the principles detailed in the ICH Q7 guidelines, and (iv) the equivalent Applicable
Laws in any relevant country, each as may be amended and applicable from time to time.

 

1.32
“Government Official” means (a) any elected or appointed government official (e.g., a member of a ministry of
health), (b) any employee or person acting for or on behalf of a government official, agency, or enterprise performing a governmental
function, (c) any political party, candidate for public office, officer, employee, or person acting for or on behalf of a political
party or candidate for public office, and (d) any employee or person acting for or on behalf of a public international organization
(e.g., the United Nations). For clarity, healthcare providers employed by government-owned hospitals shall be considered Government
Officials.

 

1.33
“Governmental Authority” means any multinational, federal, state, local, municipal or other governmental authority
of any nature (including any governmental division, prefecture, subdivision, department, agency, bureau, branch, office, commission,
council, court or other tribunal), in each case, having jurisdiction over the applicable subject matter.

 

1.34
“Indirect Taxes” means VAT, sales taxes, consumption taxes and other similar taxes required by law to be disclosed
on the invoice.

 

1.35
“Invented” means the acts of (an) inventor(s), as determined in accordance with Applicable Laws relating to inventorship
set forth in the patent Applicable Laws of the United States (Title 35, United States Code), in discovering, conceiving and completing
an Invention.

 

1.36
“Invention” means any writing, invention, discovery, improvement, technology or other Know-How (in each case,
whether patented or not) that is not existing as of the Effective Date and is Invented during the Term and necessary for the Development
and Commercialization of the Product in the Field in the Territory.

 

1.37
“Joint Clinical Committee” or “JCC” means the joint clinical steering committee formed by the
Parties as described in Section 3.1.

 

1.38
“Joint Management Committee” or “JMC” means the joint management committee formed by the Parties
as described in Section 3.1.

 

1.39
“Joint Commercialization and Sales Committee” or “JCSC” means the joint sales committee formed
by the Parties as described in Section 3.1.

 

    	5

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.40
“Joint Invention” means an Invention that is Invented jointly by an employee of, or Person under an obligation
of assignment to, each of VBL and Licensee or their respective Affiliates.

 

1.41
“Know-How” means all present and future information, whether or not in written form, whether or not in the public
domain and shall include biological, chemical, pharmacological, toxicological, medical or clinical, analytical, quality, manufacturing,
research, or sales and marketing information, including processes, methods, procedures, techniques, strategies, plans, programs
and data.

 

1.42
“Licensee Invention” means an Invention that is Invented, solely or jointly with a Third Party, by an employee
of Licensee or its Affiliates or a Person under an obligation of assignment to Licensee or its Affiliates, in the performance
of this Agreement.

 

1.43
“Licensee Know-How” means all Know-How that is (i) (a) Controlled by Licensee (or its Affiliates) as of the Effective
Date or comes under the Control of Licensee (or its Affiliates) during the Term (other than as a result of the licenses granted
by VBL to Licensee under this Agreement) and (b) incorporated by Licensee in any Product prior to any termination or expiration
of this Agreement (provided, however, that such Know-How is necessary for the Development, Manufacture or Commercialization of
any Product) or (ii) a Licensee Invention.

 

1.44
“Licensee Patent” means any Patent that (i) is Controlled by Licensee (or its Affiliates) as of the Effective
Date or comes under the Control of Licensee (or its Affiliates) during the Term (other than as a result of the licenses granted
by VBL to Licensee under this Agreement) and (ii) claims any Licensee Know-How.

 

1.45
“Licensee Technology” means the Licensee Know-How and the Licensee Patents.

 

1.46
“Manufacture” or “Manufacturing” means all activities related to the manufacturing of the Product,
the Finished Product, or any ingredient thereof, including manufacturing for clinical use or commercial sale, in-process and Product
testing, quality assurance and quality control required for release of the Finished Product in the Field in the U.S., handling
and storage of Product or Finished Product and ongoing stability tests and regulatory activities related to any of the foregoing;
provided, however, that for purposes of clarity “Manufacture” shall exclude Packaging and Labeling (whether in commercial
or clinical packaging presentation).

 

1.47
“Medical Science Liaison” means an individual who is employed by or on behalf of Licensee or its Affiliates and
who provides educational services and other educational efforts directed towards the medical and/or scientific community.

 

1.48
“Net Sales” means the gross amount invoiced by or on behalf of Licensee or any of its Affiliates or permitted
Sublicensees on account of sales of the Product, excluding VAT and less the following deductions specifically and solely related
to the Product and actually allowed:

 

(a)
patient assistance programs and co-pay assistance, trade, quantity, early pay, distributor service (and related agreements) and
cash discounts and/or rebates;

 

    	6

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(b)
retroactive price reductions that are actually granted;

 

(c)
returns, rebates, chargebacks, , adjustments, credits, volume rebates, charge-back and prime vendor rebates, fees, reimbursements
or similar payments granted or given to wholesalers and other distributors, buying groups, health care insurance carriers, pharmacy
benefit management companies, health maintenance organizations or other institutions or health care organizations, and other allowances;

 

(d)
any tax, tariff, customs duty, excise or other duty or other governmental charge (excluding any tax on income) levied on the sale,
transportation or delivery of the Product;

 

(e)
any charge for freight, insurance or other transportation costs; and

 

(f)
the actual amount of any write-offs for bad debt relating to such sales.

 

For
clarity, Net Sales shall not be reduced by the amount of any commissions paid to individuals, whether they are associated with
independent sales agencies or regularly employed by Licensee (or any agent, distributee, or designee thereof), or for a cost of
collection or any other amount not specifically set forth in subsections 1.48(a) through (f) above. Any of the items set forth
above that would otherwise be deducted from the invoice price in the calculation of Net Sales but which are separately charged
to, and paid by, any Third Party shall not be deducted from the invoice price in the calculation of Net Sales. Any of the items
set forth above that are deducted from the invoice price in the calculation of Net Sales for any period but which are later recovered
by Licensee shall be included in Net Sales for the period in which they are recovered. To the extent any of the items set forth
above are included in the calculation of Cost of Goods, such item shall not also be included in the calculation of Net Sales.
In the case of any sale of the Product for value other than in an arm’s length transaction exclusively for cash, such as
barter or counter-trade, Net Sales shall be determined by referencing Net Sales at which substantially similar quantities of the
Product are sold in an arm’s length transaction for cash.

 

Notwithstanding
the foregoing, (i) amounts billed by Licensee or its Affiliates for the sale of Product among Licensee or its Affiliates for resale
and (ii) reasonable donations, reasonable product samples and reasonable clinical samples for which no consideration is received,
shall not be included in the computation of Net Sales hereunder. Net Sales shall be accounted for in accordance with the Accounting
Standards. Licensee and its Affiliates will sell the Product as a stand-alone product and will not sell the Product as part of
a bundle with other products or offer package deals to customers that include the Product, except to the extent required to obtain
sales contracts with government entities, and in such case, the price of the Product relevant for the calculation of Net Sales
will be the average price in the preceding Calendar Quarter of the Product sold separately less the average discount of all products
sold as part of the package.

 

1.49
“Out-of-Pocket Costs” means costs and expenses paid to Third Parties (or payable to Third Parties and accrued
in accordance with the Accounting Standards), other than Affiliates or employees, by either Party.

 

1.50
“Patents” means patents and patent applications and all substitutions, divisions, continuations, continuations-in-part,
any patent issued with respect to any such patent applications, any reissue, reexamination, utility models or designs, renewal
or extension (including any supplementary protection certificate) of any such patent, and any confirmation patent or registration
patent or patent of addition based on any such patent, and all counterparts thereof in any country.

 

    	7

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.51
“Patent Term Extension” means any term extensions, supplementary protection certificates and equivalents thereof
offering Patent protection beyond the initial term with respect to any issued Patents.

 

1.52
“Person” means any corporation, limited or general partnership, limited liability company, joint venture, trust,
unincorporated association, governmental body, authority, bureau or agency, any other entity or body, or an individual.

 

1.53
“Phase IV Clinical Trials” means certain post-marketing studies to delineate additional information about a pharmaceutical
product’s risks, benefits, and optimal use, commenced after receipt of regulatory approval for a product in the indication
for which such trial is being conducted.

 

1.54
“PMDA” means the Japan Pharmaceuticals and Medical Devices Agency or its predecessor or successor.

 

1.55
“Pre-Marketing” means marketing activities undertaken prior to and in preparation for the launch of the Product
in the Territory. Pre-Marketing shall include market research, key opinion leader development, advisory boards, medical education,
disease-related public relations, health care economic studies, sales force training and other pre-launch activities prior to
the First Commercial Sale of the Product in the Territory.

 

1.56
“Product” means VB-111 (ofranergene obadenovec).

 

1.57
“Product Complaint” means any written, verbal or electronic expression of dissatisfaction regarding any Product
sold by or on behalf of Licensee (or any of its Affiliates or wholesalers) in the Territory, including reports of actual or suspected
product tampering, contamination, mislabeling or inclusion of improper ingredients.

 

1.58
“Product Specifications” means those Manufacturing, performance, quality-control, and Packaging and Labeling specifications
for the Finished Product in the Territory set forth in a schedule to the Quality Agreement, as such specifications may be amended
from time to time pursuant to the terms of this Agreement and the Quality Agreement.

 

1.59
“Promotional Materials” means all written, printed, video or graphic advertising, promotional, educational
and communication materials (other than the Product labels and package inserts) for marketing, advertising and promoting of the
Product in the Field in the Territory, for use (i) by a Sales Representative, Medical Science Liaison, or other authorized employee
or agent of Licensee, (ii) by a wholesaler, or (iii) in advertisements, web sites or direct mail pieces.

 

1.60
“Quality Agreement” means each of the quality agreements between Licensee and VBL relating to the Product for
clinical and Commercial uses.

 

    	8

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.61
“Regulatory Approvals” means all approvals or licenses necessary for the manufacture, marketing, importation,
storage and sale of the Product or a product for one or more indications in a country or regulatory jurisdiction, which may include
satisfaction of all applicable regulatory and notification requirements, but which shall exclude any pricing or reimbursement
approvals.

 

1.62
“Regulatory Authority” means, in a particular country or regulatory jurisdiction, any applicable Governmental
Authority involved in granting Regulatory Approval and/or, to the extent required in such country or regulatory jurisdiction,
governmental pricing or reimbursement approval of a Product in such country or regulatory jurisdiction, including, in the Territory,
the PMDA.

 

1.63
“Regulatory Costs” means the costs and expenses incurred by Licensee or its Affiliates attributable to, or reasonably
allocable to, the preparation, obtaining or maintaining of Regulatory Materials and Regulatory Approvals for the Product (other
than Manufacturing-related Regulatory Approvals), including any filing fees and such costs and expenses incurred by VBL or its
Affiliates to the extent requested by Licensee or required by this Agreement. “Regulatory Costs” shall include (i)
Out-of-Pocket Costs and (ii) internal costs (e.g., staff or administrative) that are specifically attributable to the preparation
of Regulatory Materials, and obtaining or maintenance of Regulatory Approvals, for the Product in the Field in the Territory.

 

1.64
“Regulatory Data” means any and all research data, pharmacology data, chemistry, manufacturing and control
data, preclinical data, clinical data, safety data, pharmacovigilance data and all other documentation submitted, or required
to be submitted, to Regulatory Authorities in association with regulatory filings for the Product (including any applicable Drug
Master Files (“DMFs”), Chemistry, Manufacturing and Control (“CMC”) data, or similar documentation).

 

1.65
“Regulatory Materials” means regulatory applications, submissions, notifications, communications, correspondence,
registrations, Regulatory Approvals and/or other filings made to, received from or otherwise conducted with a Regulatory Authority
that are necessary in order to Develop, Manufacture, obtain marketing authorization, market, sell or otherwise Commercialize the
Product in a particular country or regulatory jurisdiction. Regulatory Materials include CTAs, presentations, responses, and applications
for other Regulatory Approvals.

 

1.66
“Royalty Term” means the period of time beginning on the First Commercial Sale of the Product and ending upon
the later of: (i) the date on which the Product (including, the use, sale, offer for sale, importation, development or manufacturing
thereof) is no longer Covered by a Valid Claim in the Territory or by data protection exclusivity for the Product in the Territory,
or (ii) the [***] anniversary of the First Commercial Sale of the Product in the Territory.

 

1.67
“Sales Representative” means an individual employed by Licensee who (a) engages in detailing and other activities
as a commercial pharmaceutical sales representative that are in compliance with Applicable Laws, and who is trained with respect
to the Product, including the Product labeling and the legal use of such labeling, to engage in such activities with respect to
the Product in the Field in the Territory, and (b) has not been threatened with or excluded or debarred by any Regulatory Authority.

 

    	9

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.68
“Sublicense Income” means any and all fees or payments received by Licensee in consideration for granting a Third
Party (other than an organization performing sales, research or other activities for the benefit of and on behalf of Licensee
and under supervision of Licensee) a sublicense to Develop and Commercialize under the VBL Technology, consisting of (i) upfront
license fees and (ii) milestone payments for Development or Commercialization of the Product. For clarity, Sublicense Income shall
not include (x) royalty payments made to Licensee on account of sales of the Product associated with such sublicense that have
been included in Net Sales hereunder or (y) payments made to Licensee on account of services provided by or on behalf of Licensee
to Sublicensee (including research and development services), for any product supply from Licensee to Sublicensee or as equity
investments into Licensee or its Affiliates, to the extent that, in the case of each payment described in this clause (y), such
payments are at prices equivalent to those that would be negotiated at arms’ length by unaffiliated parties.

 

1.69
“Supply Price” means the applicable amount invoiced by VBL per dose of Finished Product in accordance with
Section 7.5(a) or Section 7.5(b), as applicable.

 

1.70
“Territory” means Japan.

 

1.71
“Territory Development Activities” means those Development Activities consistent with the Development Plan that
are (i) necessary for obtaining or maintaining Regulatory Approval for the Product in the Field solely with respect to the Territory
and (ii) post-Regulatory Approval-filing date Development Activities for the Product in the Field solely with respect to the Territory.
Notwithstanding the foregoing, in the event that Licensee requests that VBL perform certain Development Activities within the
Territory and the Parties agree that VBL shall perform such activities within the Territory in accordance with Section 4.2.1(c),
then such activities as are conducted in the Territory shall be deemed Territory Development Activities.

 

1.72
“Third Party” means any Person other than VBL or Licensee or their respective Affiliates.

 

1.73
“U.S.” means the United States of America and its possessions and territories.

 

1.74
“VBL Invention” means an Invention that is Invented solely or jointly with a Third Party, by an employee of VBL
or its Affiliates or a Person under an obligation of assignment to VBL or its Affiliates. For clarity, “VBL Invention”
shall not include (a) the VBL Patents or (b) the (i) VBL Manufacturing Patents or (ii) VBL Manufacturing Know-How.

 

1.75
“VBL Know-How” means all Know-How that is (i) Controlled by VBL (or its Affiliates) as of the Effective Date or
at any time during the Term or (ii) a VBL Invention, in each case of (i) or (ii) which is necessary for the Development or Commercialization
of the Product in the Field in the Territory; provided, however that “VBL Know-How” shall not include any VBL Manufacturing
Know-How. For clarity, “VBL Know-How” shall not include (a) the VBL Patents or (b) the (i) VBL Manufacturing Patents
or (ii) VBL Manufacturing Know-How.

 

    	10

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.76
“VBL Manufacturing Know-How” means all Know-How that is (i) Controlled by VBL (or its Affiliates) as of the Effective
Date or at any time during the Term or (ii) a VBL Invention or a Joint Invention, in each case of (i) or (ii) which is necessary
for Manufacture of the Product for Commercialization in the Field in the Territory but is not otherwise necessary for the Development
or Commercialization in the Field in the Territory, including any CMC information.

 

1.77
“VBL Manufacturing Patent” means any Patent that is (i) Controlled by VBL (or its Affiliates) as of the Effective
Date or at any time during the Term or (ii) a VBL Patent, in each case of (i) or (ii), which is necessary for the Manufacture
of the Product for Commercialization in the Field in the Territory but is not otherwise necessary for the Development or Commercialization
of the Product in the Territory.

 

1.78
“VBL Patent” means the Patents listed in Schedule 1.78, and any other Patent in the Territory that is (i)
Controlled by VBL (or its Affiliates) as of the Effective Date, or (ii) that comes under the Control of VBL during the Term, in
each case of (i) or (ii) which is necessary for the Development or Commercialization of the Product in the Field in the Territory;
provided, however that “VBL Patent” shall not include any VBL Manufacturing Patent.

 

1.79
“VBL Technology” means the VBL Patents and VBL Know-How.

 

1.80
“Valid Claim” means a claim of an VBL Patent or a Collaboration Patent that (i) has not been rejected, revoked
or held to be invalid or unenforceable by a court or other authority of competent jurisdiction, from which decision no appeal
can be further taken or (ii) has not been finally abandoned, disclaimed or admitted to be invalid or unenforceable through reissue
or disclaimer.

 

1.81
Interpretation. Except where expressly stated otherwise in this Agreement, the following rules of interpretation apply to
this Agreement: (i) “include”, “includes” and “including” are not limiting; (ii) “hereof”,
“hereto”, “herein” and “hereunder” and words of similar import when used in this Agreement
refer to this Agreement as a whole and not to any particular provision of this Agreement; (iii) “knowledge” of a Party
means the actual knowledge of any officer of such Party involved in the negotiation of this Agreement, without the obligation
to perform due inquiry; (iv) words of one gender include the other gender; (v) words using the singular or plural number also
include the plural or singular number, respectively; (vi) references to a contract or other agreement mean such contract or other
agreement as from time to time amended, modified or supplemented; (vii) references to a Person are also to its permitted successors
and assigns; (viii) references to an “Article”, “Section”, “Exhibit” or “Schedule”
refer to an Article or Section of, or an Exhibit or Schedule to, this Agreement, unless expressly stated otherwise; and (ix) references
to a law include any amendment or modification to such law and any rules and regulations issued thereunder, whether such amendment
or modification is made, or issuance of such rules and regulations occurs, before or after the Effective Date.

 

    	11

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

1.82
Additional Definitions. The following terms have the meanings set forth in the corresponding Sections of this Agreement:

 

	Term	 	Section
	“Agreement”	 	Preamble
	“Assignment
    Consideration”	 	14.1.7
	“Bankrupt
    Party”	 	14.5
	“Breaching
    Party”	 	13.2
	“CMC”	 	1.64
	“Collaboration
    Patents”	 	9.1.1
	“Commercialization
    Data”	 	6.11
	“Commercialization
    Plan”	 	6.2.1
	“Compliance
    Audit”	 	6.6
	“Confidential
    Disclosure Agreement”	 	12.1
	“Confidential
    Information”	 	12.1
	“Cost
    of Goods”	 	7.5(c)
	“Defect”
    or “Defective”	 	7.7.2(a)
	“Development
    Budget”	 	4.3.1(c)
	“Development
    Data”	 	4.6
	“Development
    Plan”	 	4.3.1
	“Disclosing
    Party”	 	12.1
	“DMFs”	 	1.64
	“Effective
    Date”	 	Preamble
	“Executive
    Officer”	 	15.2
	“Financial
    Audit”	 	8.10
	“Forecast”	 	7.4.1
	“Forecast
    Date”	 	7.4.1
	“GBM
    Indication”	 	4.1.2
	“Global
    Branding Strategy”	 	6.10
	“ICC
    Rules”	 	15.3
	“ICH”	 	1.29
	“Improvement
    Plan”	 	6.5.5
	“Indemnitee”
    	 	11.3
	“Infringement
    Claim”	 	9.3.1
	“Initial
    Commercialization Plan”	 	6.2.1
	“Initial
    Development Plan”	 	4.3.2
	“Initial
    Forecast Date”	 	7.4.1
	“Latent
    Defects”	 	7.7.2(b)
	“Licensee”	 	Preamble
	“Long
    Range Forecast”	 	7.4.2
	“Losses”	 	11.1
	“Major
    Supply Failure”	 	7.10
	“Milestone
    Notification Notice”	 	8.2
	“Notice
    of Non-Conformance”	 	7.7.2(a)
	“OOS”	 	7.7.3
	“OOT”	 	7.7.3
	“Packaging
    and Labeling”	 	7.3.1
	“Party”
    or “Parties”	 	Preamble
	“Product
    Trade Dress”	 	6.9.1

 

    	12

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

	Term	 	Section
	“Product
    Trademark”	 	6.9.1
	“Provisions”	 	6.5.4
	“Purchase
    Order”	 	7.4.3
	“Purchase
    Order Acceptance Date”	 	7.4.4
	“Receiving
    Party”	 	12.1
	“Recovery”	 	9.3.2(c)(iv)
	“Redacted
    Agreement”	 	12.5.2
	“Representatives”	 	6.5.3
	“Required
    Notice Date”	 	16.5
	“Royalty
    Payments”	 	8.3.1
	“Secondary
    Source”	 	7.1.4
	“Sublicense
    Income Payment”	 	8.3.2
	“Sublicensee”	 	2.1.3
	“Term”	 	13.1
	“Third
    Party Claim”	 	11.1
	“Third
    Party License”	 	8.4
	“Transfer
    Costs”	 	14.1.7
	“Upfront
    Payment”	 	8.1
	“VAT”
    	 	8.6.1
	“VBL”	 	Preamble

 

ARTICLE
2

LICENSES

 

2.1
Grant to Licensee.

 

2.1.1
General Grant to Licensee. Subject to the terms and conditions of this Agreement, VBL hereby grants to Licensee during the
Term an exclusive (even as to VBL and its Affiliates, except as to any Territory Development Activities or other cooperation activities
agreed by the Parties to be performed by VBL pursuant to Section 4.2.1), payment-bearing license with the right to sublicense
solely in accordance with Section 2.1.3, under and with respect to the VBL Technology, to (i) Develop the Product for Commercialization
in the Field in the Territory and (ii) Commercialize the Product in the Field in the Territory.

 

2.1.2
Trademark Grant to Licensee. Subject to the terms and conditions of this Agreement, including in particular Section 6.9, VBL
hereby grants to Licensee during the Term an exclusive (even as to VBL and its Affiliates) license with the right to sublicense
solely in accordance Section 2.1.3, to use the Product Trademark and Product Trade Dress solely to the extent necessary to (i)
Commercialize the Product in the Field in the Territory and (ii) Package and Label the Product for Development or Commercialization
in the Field in the Territory.

 

    	13

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

2.1.3
Licensee’s Right to Sublicense. Licensee shall have the right to sublicense those rights granted to it under Sections
2.1.1 and 2.1.2 to (i) Affiliates, subject to Licensee’s prior written notice to VBL of the identity of such Affiliate and
the purpose of such sublicense, and (ii) Third Parties, subject to first obtaining VBL’s prior written consent to such sublicense,
which consent shall not be unreasonably withheld, delayed or conditioned, and shall be deemed given if VBL does not provide a
response within thirty (30) days after the date of Licensee’s request with reasonable detail noting the reasons for any
rejection (each of (i) and (ii), a “Sublicensee”); provided, however, that Licensee shall remain responsible for the
performance by any of its Sublicensees and shall cause its Sublicensees to comply with the provisions of this Agreement in connection
with such performance. Without limiting the foregoing, (i) Licensee shall ensure that each of its Sublicensees accepts in writing
all applicable terms and conditions of this Agreement, including without limitation the reporting, audit, inspection and confidentiality
provisions hereunder, and shall terminate all relevant agreements with any such Sublicensee in the case of any material breach
of such terms and conditions by such Sublicensee; and (ii) Licensee shall use Commercially Reasonable Efforts to include in any
sublicense a provision equivalent to Section 9.6 of this Agreement. Each Sublicensee shall be prohibited from further sublicensing
without the prior written consent of VBL, which shall not be unreasonably withheld (with such further sublicensee being deemed
a Sublicensee thereafter). For the avoidance of doubt, (a) Licensee will remain directly responsible for all amounts owed to VBL
under this Agreement, and (b) each Sublicensee is subject to the negative covenants set forth in Section 2.3.1 and Section 2.4.
Licensee hereby expressly waives any requirement that VBL exhaust any right, power or remedy, or proceed against a subcontractor,
for any obligation or performance hereunder prior to proceeding directly against Licensee.

 

2.1.4
Performance by Affiliates and Subcontractors. Licensee shall have the right to perform some or all of its obligations under
this Agreement through Affiliates and/or Third Party subcontractors in the Territory; provided, however, that Licensee shall cause
its Affiliates and subcontractors to accept the applicable terms and conditions of this Agreement in connection with such performance.

 

2.2
Grant to VBL. Subject to the terms and conditions of this Agreement, Licensee hereby grants to VBL, during the Term, an exclusive,
sublicensable, royalty-free license, for the sole purpose of Developing, Manufacturing and/or Commercializing the Product outside
of the Territory, under and with respect to such Licensee Technology that is developed or conceived by Licensee in the performance
of this Agreement.

 

2.3
Additional Licensing Provisions.

 

2.3.1
Negative Covenant. Each Party covenants that it will not use or practice any of the other Party’s Patent rights or other
intellectual property rights licensed (or sublicensed, as applicable) to it under this ARTICLE 2 except for the purposes expressly
permitted in the applicable license grant.

 

2.3.2
No Implied Licenses; Retained Rights. Except as explicitly set forth in this Agreement, neither Party grants any license,
express or implied, under its intellectual property rights to the other Party, whether by implication, estoppel or otherwise.

 

    	14

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

2.4
Restrictive Covenants.

 

2.4.1
Licensee. Licensee hereby covenants that it shall not (and shall cause its Affiliates and Sublicensees not to), either directly
or indirectly (including on its own, with or through any Affiliate, or in collaboration with a Third Party), during the Term,
knowingly market, distribute or sell the Product into countries outside of the Territory or for use outside of the Field. Without
limiting the generality of the foregoing, with respect to such countries outside of the Territory, and indications outside of
the Field, Licensee shall not (i) knowingly engage in any advertising activities relating to the Product directed solely to customers
located in such countries, (ii) solicit or knowingly fulfill, directly or indirectly, orders from any prospective purchaser located
in part or in whole in such countries, (iii) engage in any advertising activities relating to the Product directed to use in part
or in whole outside the Field, or (iv) solicit or fulfill, directly or indirectly, orders from any prospective purchaser for use
of the Product outside the Field in the Territory. In the event that Licensee (or any of its Affiliates) enters into any agreements
with a Sublicensee or subcontractor (including, any distributors or wholesalers) for the Product, it shall include in any and
all said agreements provisions substantially similar to those set forth in this Section 2.4.1, such that such Sublicensee or subcontractor
shall only be authorized to market, distribute and sell the Product within the Field in the Territory, and shall be prohibited
from marketing or fulfilling, directly or indirectly, distributing or selling the Product outside the Field or outside the Territory,
and providing for the termination of any such Sublicensee’s or subcontractor’s agreement in the event of a failure
to comply with such provisions. In furtherance of the foregoing, in the event that Licensee or any Sublicensee violates the provisions
of this Section 2.4.1, Licensee shall pay, or cause to be paid, to VBL the full amount of any Net Sales of the Product outside
of the Field or the Territory; provided, that, such payment shall not limit VBL’s other remedies with respect thereto.

 

2.4.2
Limit on Licensee Invention. Licensee hereby covenants to VBL that Licensee will not reverse engineer, modify or create derivatives
or improvements on or permit its Affiliates or Sublicensees to reverse engineer, modify or create derivatives or improvements
on, VB-111.

 

2.4.3
Jurisdictional Compliance. It is the desire and intent of the Parties that the restrictive covenants contained in this Section
2.4 be enforced to the fullest extent permissible under the Applicable Laws and public policies applied in each jurisdiction in
which enforcement is sought. VBL and Licensee believe that the restrictive covenants in this Section 2.4 are valid and enforceable.
However, if any restrictive covenant should for any reason become or be declared by a competent court or competition authority
to be invalid or unenforceable in any jurisdiction, such restrictive covenant shall be deemed to have been amended to the extent
necessary in order that such provision be valid and enforceable, such amendment shall apply only with respect to the operation
of such provision of this Section 2.4 in the particular jurisdiction in which such declaration is made.

 

    	15

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

ARTICLE
3

GOVERNANCE

 

3.1
Governance Committees.

 

3.1.1
Joint Management Committee. The Parties shall establish the JMC within thirty (30) days after the Effective Date. The JMC
shall perform the following functions:

 

(a)
Review, coordinate, discuss and approve the overall strategy for Developing the Product in the Field in the Territory, including
reviewing, coordinating, discussing and approving the overall strategy for seeking Regulatory Approvals for the Product in the
Field in the Territory and approving the Development Plan and each annual update and any material amendments thereto;

 

(b)
Review, coordinate, discuss and approve the design of the clinical trial protocols and endpoints and oversee the conduct of all
clinical trials required as set forth in the Development Plan as well as discuss any Territory Development Activities to be conducted
with respect to the Product in the Field;

 

(c)
Review any matters related to obtaining and maintaining Regulatory Approvals for the Product in the Field in the Territory, including
being informed of the development and contents of all submissions to Regulatory Authorities in the Territory for Regulatory Approvals
and all necessary filing and registration activities related thereto;

 

(d)
Review, coordinate, discuss and approve any Phase IV Clinical Trials in the Territory, investigator-sponsored studies in the Territory,
and any other clinical studies to be conducted in the Territory that are not described in the Development Plan(s);

 

(e)
Facilitate the exchange of information between the Parties under this Agreement regarding the strategy for implementing the Development
Activities in the Territory, including sharing Development Data created pursuant to this Agreement and establishing procedures
for the efficient sharing of information and materials necessary or useful for the Development of the Product in the Field in
the Territory;

 

(f)
Review and oversee issues regarding supply of Product for clinical trials and Phase IV Clinical Trials in the Territory under
the Development Plan(s) and for anticipated commercial needs;

 

(g)
Review and oversee issues regarding pharmacovigilance and safety both inside and outside the Territory; and

 

(h)
Have such other responsibilities as may be assigned to the JMC pursuant to this Agreement or as may be mutually agreed upon by
the Parties in writing from time to time.

 

3.1.2
Joint Clinical Committee. Within thirty (30) days after the Effective Date, the Parties shall also establish a joint clinical
committee (the “Joint Clinical Committee” or “JCC”) to oversee the Development of the Product
in the Territory, including reviewing and overseeing the implementation of plans and timelines for such Development.

 

3.1.3
Joint Commercialization and Sales Committee. At an appropriate and agreed time following the Effective Date, (but no later
than twelve (12) months prior to anticipated filing for Regulatory Approval in the Territory), the Parties shall establish a joint
commercial and sales committee (the “Joint Commercialization and Sales Committee” or “JCSC”)
to oversee Commercialization of the Product in the Territory, including reviewing and approving the Commercialization Plan and
overseeing the implementation of such plan.

 

    	16

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

3.1.4
Membership and Procedures. Each Committee shall consist of an equal number of representatives from each Party, with at least
two (2) representatives appointed by each Party. A Party may change any of its representatives on each Committee at any time with
a new person (with appropriate expertise to replace the outgoing member) by giving written notice to the other Party; provided,
however, that, without limiting the generality of the foregoing, a key objective with respect to membership in the Committees
shall be preserving continuity. The Committees shall be chaired by a representative of Licensee. One member of each Committee
shall serve as secretary of the Committee at each Committee meeting, and the secretary shall alternate from meeting to meeting
between a Licensee member and a VBL member. The chairpersons shall be responsible for (i) calling meetings, (ii) preparing and
issuing minutes of each such meeting within thirty (30) days thereafter, and (iii) preparing and circulating an agenda for the
upcoming meeting; provided, that the chairpersons shall include any agenda items proposed by either Party no less than one (1)
day prior to the next scheduled Committee meeting.

 

3.1.5
Meetings. Each Committee shall hold at least one (1) meeting per Calendar Quarter at such times during such Calendar Quarter
as it elects to do so until pre-launch Territory Development Activities for the Product in the Field in the Territory are completed,
or at the request of any two members of a Committee, and thereafter, if the Parties mutually so decide, twice per year; provided,
that the committees shall meet more or less frequently as Licensee and VBL mutually agree upon as appropriate. Meetings of any
Committee shall be effective only if at least one (1) representative of each Party is present or participating. Committees may
meet either (i) in person at either Party’s facilities (alternating between the facilities of Licensee and VBL) or at such
locations as the Parties may otherwise agree or (ii) by audio or video teleconference; provided, that no less than one (1) meeting
of the JMC during each Calendar Year shall be conducted in person to the extent permissible under Applicable Laws. Other representatives
of each Party involved with the Product may attend meetings as non-voting participants, subject to the confidentiality provisions
set forth in ARTICLE 12. Additional meetings of the JMC may also be held with the consent of each Party, as required to resolve
disputes, disagreements or deadlocks in the other Committees or as otherwise required under this Agreement, and neither Party
shall unreasonably withhold its consent to hold such additional meetings.

 

3.1.6
Decision-Making. Each Committee may make decisions with respect to any subject matter that is subject to its decision-making
authority and functions as set forth in this Section 3.1. All decisions of the Committee shall be made by unanimous vote or written
consent, with Licensee and VBL each having, collectively, among its respective members, one (1) vote in all decisions. If any
Committee other than the JMC cannot reach unanimous agreement on any issue, such issue shall be referred to the JMC for resolution.
The JMC shall use good faith efforts to resolve the matters within its roles and functions or otherwise referred to it. Except
as set forth in Section 6.2 with respect to the determination of Sales Targets in the Initial Commercialization Plan, if the JMC
cannot reach consensus on a given matter, then decision-making authority shall be allocated: (i) to Licensee to the extent the
disagreement relates to development activities directed toward Development in the Territory or Commercialization Activities within
the Territory (unless (x) a change in the Development Plan proposed by Licensee does not involve an investigator-initiated trial
or a trial required or suggested by a Regulatory Authority and (y) VBL can show with reasonable evidence that such change proposed
by Licensee is reasonably likely to have a material and adverse effect on Development and Commercialization of the Product outside
the Territory, in which case VBL shall have final decision-making authority); and (ii) to VBL with respect to any matter other
than the foregoing. If Licensee proposes a change in development activities directed toward the Territory that does not involve
an investigator-initiated trial or a trial required or suggested by a Regulatory Authority, and VBL believes that such change
is reasonably likely to materially and adversely affect Development and Commercialization of the Product outside the Territory,
Licensee shall not implement such changes unless and until it is determined, in accordance with the provisions of Article 15,
that such changes are not reasonably likely to materially and adversely affect Development and Commercialization of the Product
outside the Territory. For the avoidance of doubt, no Committee shall have the power to alter the timelines included in the Development
Plan or the Sales Targets included in the Initial Commercialization Plan, or to amend this Agreement, without the consent of both
Parties.

 

    	17

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

3.2
Committees. From time to time, the Parties may establish and delegate duties to other committees to oversee particular matters
(each such committee, JMC, JCC or JCSC, a “Committee”). Each such Committee shall be constituted and shall operate
as the Parties reasonably and mutually determine as reflected in a written agreement between the Parties; provided, that each
Committee shall have equal representation from each Party.

 

3.3
Limits on Committee Authority. The JMC, JCC, JCSC and any other Committee shall have only the powers assigned expressly to
it in this ARTICLE 3 and elsewhere in this Agreement, and shall not have any power to amend, modify or waive compliance with this
Agreement. In furtherance thereof, each Party shall retain the rights, powers and discretion granted to it under this Agreement
and no such rights, powers or discretion shall be delegated or vested in the JMC, JCC, JCSC or any other Committee unless such
delegation or vesting of rights is expressly provided for in this Agreement or the Parties expressly so agree in writing. Without
limiting the generality of the foregoing, the JMC, JCC, JCSC and any other Committee shall have no decision-making authority with
respect to any matters related to (i) approving (or otherwise making decisions with respect to) matters related to obtaining,
maintaining or enforcing Patent protection for the Product in the Field in the Territory (which matters shall be governed by ARTICLE
9), (ii) the Development of the Product outside the Field or for sale outside of the Territory, (iii) the Commercialization of
the Product outside the Field or outside of the Territory or (iv) the Manufacture of the Product, provided that the JMC, JCC,
JCSC and any other Committee may discuss and exchange information regarding any of the foregoing matters to the extent relating
to or useful for the Development and/or Commercialization of the Product in the Field and in the Territory.

 

3.4
Actions. In developing strategies, making decisions and exercising its rights under this Agreement (including acting through
its representatives on any of the Committees), each Party shall act in good faith.

 

3.5
Exchange of Information. Licensee shall keep VBL fully and promptly informed as to its progress and activities in material
aspects relating to the Development and Commercialization of the Product in the Territory, including with respect to regulatory
matters and meetings with Regulatory Authorities, by way of updates to appropriate Committees at their meetings or directly in
writing in English as reasonably requested from time to time by VBL. In connection therewith, Licensee shall provide VBL with
such information regarding such progress and activities under the Development Plan or the Commercialization Plan, or otherwise
relating to the Product, as VBL may reasonably request from time to time. In addition, VBL shall keep Licensee informed on a timely
basis as to any progress or activities outside of the Territory or outside of the Field that may impact or otherwise be helpful
for the Development or Commercialization of the Product in the Field and in the Territory, including with respect to regulatory
matters and meetings with Regulatory Authorities outside of the Territory or outside of the Field, by way of updates to appropriate
Committees at their meetings or directly in writing in English as reasonably requested from time to time by Licensee.

 

    	18

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

3.6
Minutes of Committee Meetings. Definitive minutes of all Committee meetings shall be finalized no later than thirty (30) days
after each meeting. The minutes shall be approved by each Party not later than the first order of business at the immediately
succeeding Committee meeting.

 

3.7
Expenses. Each Party shall be responsible for all of its own expenses incurred in connection with participating in the JMC,
JCC or JCSC meetings or any of the other Committee meetings.

 

ARTICLE
4

DEVELOPMENT

 

4.1
Overview.

 

4.1.1
Overview of Development. Subject to the terms and conditions of this Agreement, Licensee shall be responsible for conducting,
in accordance with the Development Plan(s), the Territory Development Activities, including bridging studies, clinical studies,
Phase IV Clinical Studies (and other post-Regulatory Approval studies), with the necessary assistance of VBL to the extent such
assistance is required by Applicable Laws in the Territory or agreed on by the parties, for the purpose of (i) enabling obtaining
Regulatory Approval in the Territory for Product in the Field and (ii) maximizing the commercial potential for Product in the
Field in the Territory.

 

4.1.2
General Development Activities and Development Outside the Territory or Outside the Field; Regulatory Approvals Outside the Territory
or Outside the Field. VBL shall, or shall cause its affiliates or licensees to, use Commercially Reasonable Efforts to conduct
its General Development Activities in a manner designed to achieve successful Development and Regulatory Approval for the treatment
of glioblastoma (the “GBM Indication”) in the U.S., including the filing of a BLA with the FDA with respect
thereto within the timeframe specified on Schedule 4.3.2 hereof. The Parties hereby agree and acknowledge that nothing
contained herein shall limit or otherwise restrict the ability of VBL or its other licensees or sublicensees, as applicable, to
(i) perform the General Development Activities as it sees fit and at its sole discretion, (ii) Develop the Product for use or
sale outside the Territory (whether or not in the Field) or in the Territory but outside the Field and (iii) obtain or maintain
Regulatory Approvals for the Product outside the Territory (whether or not in the Field) or outside the Field; provided that in
each case, any use of Licensee Technology in connection therewith is subject to the terms of the license granted by Licensee to
VBL pursuant to Section 2.2. Without limiting the generality of the foregoing, the Development Plan(s) shall not address (a) any
General Development Activities (other than as separately agreed by the Parties), (b) any activities which are necessary solely
for obtaining or maintaining Regulatory Approval for the Product in any country outside the Territory or outside the Field.

 

    	19

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

4.1.3
Certain Additional Restrictions. Licensee agrees and acknowledges that it and its Affiliates shall not conduct any Development
of the Product except in accordance with the Development Plan established pursuant to this Agreement.

 

4.2
Objectives Under the Development Plan.

 

4.2.1
Development Activities.

 

(a)
Licensee shall use Commercially Reasonable Efforts to carry out the Territory Development Activities set forth in the Development
Plan in accordance with the time frames set forth therein and in a manner designed to achieve successful Development and Regulatory
Approval for the treatment of the GBM Indication in the Territory.

 

(b)
Upon agreeing to a new Development Plan for any additional indication(s) for the Product in the Field and in the Territory other
than the GBM Indication, Licensee shall use Commercially Reasonable Efforts to carry out the Territory Development Activities
set forth in such Development Plan in accordance with the time frames set forth therein and in a manner designed to achieve successful
Development and Regulatory Approval for each other indication within the Field.

 

(c)
Licensee may request that VBL perform, or cooperate with Licensee to perform, certain Territory Development Activities within
the Territory. Upon such request, the Parties shall discuss in good faith and agree upon the scope and details of VBL’s
Territory Development Activities, if any, and amend the applicable Development Plan accordingly. Thereafter, subject to the payment
or reimbursement of certain Development Costs as set forth in Section 4.4.1, VBL shall use Commercially Reasonable Efforts to
carry out such Territory Development Activities set forth in such Development Plan in accordance with the time frames set forth
therein and in a manner designed to achieve successful Development and Regulatory Approval for the treatment of the applicable
indication in the Territory.

 

(d)
In the event that pre-clinical studies are required to obtain Regulatory Approval for the Product in the Territory, Licensee shall
request that VBL perform such studies, and VBL shall use Commercially Reasonable Efforts to perform such studies itself or through
Third Parties; provided that if VBL declines to perform, or is incapable of performing, such studies, Licensee shall have rights
to perform such studies itself or through Third Parties.

 

4.2.2
Specific Development Diligence. With respect to the Product for the GBM Indication, Licensee shall (i) assuming the Regulatory
Materials to be provided by VBL hereunder are sufficient for submitting a CTA in Japan, submit a CTA in Japan in accordance with
the timeline set forth in Schedule 4.3.2, (ii) subject to VBL’s timely supply of required quantities of clinical
samples, initiate clinical testing in Japan within [***] after obtaining CTA approval therefor, (iii) complete such
trial within [***] after it is initiated, and (iv) file an Approval Application within [***] after completion of such trial.
With respect to the Product for the ovarian cancer indication, the Parties shall meet with key opinion leaders, contract research
organizations and other experts in such indication in order to generate a new Development Plan for such indication within [***] after the Effective Date.

 

    	20

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

4.2.3
Compliance. Each Party shall conduct its Development Activities in accordance with sound and ethical business and scientific
practices, and in compliance with all Applicable Laws and GXPs. Neither Party shall use in any capacity, in connection with its
Development (or Commercialization) of Product hereunder, any Person who has been debarred pursuant to Section 306 of the FD&C
Act (or similar Applicable Laws outside of the U.S.), or who is the subject of a conviction described in such section, and each
Party shall inform the other in writing immediately if it or any Person who is performing services for it hereunder is debarred
or is the subject of a conviction described in Section 306 (or similar Applicable Laws outside of the U.S.), or if any action,
suit, claim, investigation or legal administrative proceeding is pending or, to such Party’s knowledge, is threatened, relating
to the debarment of such Party or any Person used in any capacity by such Party in connection with its Development (or Commercialization)
of Product hereunder.

 

4.3
Development Plan and Development Budget.

 

4.3.1
General. In connection with the Development of the Product for use in the GBM Indication in the Territory, Licensee shall
conduct Territory Development Activities in accordance with the Initial Development Plan, as the same may be amended from time
to time by the JMC in accordance with this Agreement. In connection with the Development of the Product for use in the other indications
in the Territory, Licensee shall conduct Territory Development Activities, if any, for such indication pursuant to a comprehensive
development plan for such indication agreed upon by the Parties (each, together with the Initial Development Plan, a “Development
Plan”). Each Development Plan shall set forth, among other things, the following:

 

(a)
any studies or trials (including Phase IV Clinical Trials) necessary for obtaining and maintaining Regulatory Approval in the
Territory, in each case, together with all protocols, endpoints and primary investigators conducting such studies, with respect
to the Product in the Field in the Territory, including a timeline for commencement and completion of clinical trials;

 

(b)
all regulatory plans and other elements of obtaining and maintaining Regulatory Approvals in the Field in the Territory, including
the plans and timeline for preparing the necessary Regulatory Materials and for obtaining Regulatory Approval in the Field in
the Territory; and

 

(c)
a detailed annual budget for all Development Costs and Regulatory Costs for the activities in the applicable Development Plan
(the “Development Budget”).

 

4.3.2
Initial Development Plan. The initial Development Plan for the Product for the GBM Indication (the “Initial Development
Plan”) is set forth as Schedule 4.3.2. To the extent that future “national meetings” with the Regulatory
Authorities in the Territory provide guidance with respect to the risk management plan or Territory Development Activities, the
Parties shall consider such guidance in updating and amending the Development Plan pursuant to Section 4.3.3.

 

    	21

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

4.3.3
Updating and Amending Development Plan and Development Budget; Additional Development Activities.

 

(a)
Licensee shall have the right to initiate and lead discussions for (i) any revisions to a Development Plan or (ii) the development
of any new Development Plan for any additional indications. On or before September 30th of each Calendar Year during the Term,
Licensee shall submit to the JCC any proposed revisions to a Development Plan or proposals for a new Development Plan, and the
JCC shall review, update and approve amendments to or new proposals for such Development Plan, which shall cover the Territory
Development Activities to be conducted during the upcoming Calendar Year.

 

(b)
The JCC shall, on at least a Calendar Quarter basis, review and update, as appropriate, each then-current Development Plan to
reflect any material changes, reprioritizations of, or additions to such Development Plan. Notwithstanding the foregoing, from
time to time during the Term, either Party may submit to the JCC any proposed expansion or other material amendment of the Development
Plan to cover additional Territory Development Activities (or otherwise amend the Territory Development Activities) with respect
to the Product for use in the Field in the Territory for the JCC’s review and approval. Once approved by the JCC, each amended
Development Plan shall become effective and supersede the previous Development Plan as of the date of such approval or at such
other time as decided by the JCC. For the avoidance of doubt, no timelines included in any Development Plan may be altered, or
this Agreement amended, without the consent of both Parties.

 

(c)
With respect to the Development Budget, such budget shall be included within the Development Plan and provided to the JCC for
its review; provided, however, that such budget shall be developed and finalized, and thereafter revised, in Licensee’s
sole discretion.

 

4.4
Development Costs.

 

4.4.1
Territory Development Activities. Unless otherwise agreed by the Parties or by any applicable Committee, Licensee shall be
[***] of all Development Costs incurred by: (i) Licensee; or (ii) to the extent approved
by the JMC or JCC or included in a Development Plan and Development Budget, VBL (except to the extent as described in the next
sentence), with respect to any Territory Development Activities (including, for clarity, any given Development Activities which
are deemed Territory Development Activities in accordance with Section 1). To the extent reasonably requested by Licensee, VBL
shall cooperate and assist Licensee in the performance or implementation of Territory Development Activities necessary for Regulatory
Approval of the Product in the Territory. However, Licensee shall bear any reasonable, documented and pre-approved (i) Out-of-Pocket
Costs incurred by VBL in performing or implementing such assistance and (ii) internal labor costs for any assistance by VBL requiring
VBL personnel to travel to Japan in excess of [***] (with the hourly rate per full-time equivalent being [***]), and VBL shall invoice Licensee for such costs, which invoices Licensee shall pay within
thirty (30) days of receipt thereof.

 

    	22

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

4.4.2
General Development Activities. VBL shall be responsible for one hundred percent (100%) of all Development Costs incurred
by VBL with respect to any General Development Activities.

 

4.5
Records, Reports and Information.

 

4.5.1
General. Licensee (and VBL, to the extent it conducts any Territory Development Activities) shall, and shall cause each of
its Affiliates, and permitted Sublicensees and Third Party subcontractors to, maintain current and accurate records of all work
conducted by it under the Development Plan and all data and other information resulting from such work (which records shall include,
as applicable, books, records, reports, research notes, charts, graphs, comments, computations, analyses, recordings, photographs,
computer programs and documentation thereof (e.g., samples of materials and other graphic or written data generated in connection
with the Development Activities)). Such records shall properly reflect all work done and results achieved in the performance of
the Development Activities in sufficient detail and in good scientific manner appropriate for regulatory and patent purposes.
Licensee (and VBL, to the extent it conducts any Territory Development Activities) shall document all preclinical studies and
clinical trials to be conducted pursuant to the Development Plan in formal written study reports according to applicable national
and international (e.g., ICH, GCP and GLP) guidelines. Upon reasonable request, VBL (and Licensee, to the extent VBL conducts
any Territory Development Activities) shall be provided with copies of or access to drafts of reports resulting from Territory
Development Activities conducted under the Development Plan.

 

4.5.2
Status Updates.

 

(a)
Licensee (and VBL, to the extent it conducts any Territory Development Activities) shall provide the JMC with reports detailing
its respective Territory Development Activities and the results thereof at least five (5) Business Days prior to any JMC meeting,
but in any event, on at least a Calendar Quarter basis. Without limiting the foregoing, Licensee shall promptly, but in any event
within fifteen (15) days after receipt thereof, provide to VBL copies of any material documents or correspondence received from
any Regulatory Authority related to Territory Development Activities.

 

(b)
VBL shall provide the JMC with reports detailing its General Development Activities and the results thereof at least five (5)
Business Days prior to any JMC meeting, but in any event, on at least a Calendar Quarter basis. In addition, VBL shall promptly,
but in any event within fifteen (15) days after receipt of a request from Licensee, provide to Licensee any correspondence with
Regulatory Authorities required for Development of the Product within the Territory.

 

4.5.3
Access to Records. VBL shall have the right to review all records under the Development Plan maintained by Licensee and its
Sublicensees and Third Party subcontractors at reasonable times, upon reasonable written request.

 

4.6
Ownership and Transfer of Development Data. All data (including pre-clinical, clinical, technical, chemical, safety, and scientific
data and information), know-how and other results generated by or resulting from or in connection with the conduct of Development
Activities, including relevant laboratory notebook information, screening data, Regulatory Data and synthesis schemes, including
descriptions in any form, data and other information (collectively, the “Development Data”), shall be owned
solely and exclusively by the Party generating such data which shall be Confidential Information of such Party (and each Party
shall use Commercially Reasonable Efforts to require that all of its Affiliates and subcontractors assign any of such Affiliates’
and subcontractors’ right, title and interest in and to such Development Data to such Party). With respect to Development
Data generated by a Party hereunder, such Party shall promptly provide the other Party with copies of reports and, if available,
summaries thereof, in each case through the applicable Committee and the data sharing processes agreed by such Committee.

 

    	23

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

4.7
Right to Audit. Licensee shall ensure that VBL’s authorized representatives and any Regulatory Authorities, to the extent
permitted by Applicable Laws, may, during regular business hours and upon reasonable advance written notice, (i) examine and inspect
its facilities or, subject to any Third Party confidentiality restrictions and other obligations, the facilities of any subcontractor
or any investigator site used by Licensee in the performance of Development of the Product in the Field in the Territory hereunder,
and (ii) subject to Applicable Laws and any Third Party confidentiality restrictions and other obligations, inspect all data,
documentation and work product to the extent reasonably available to Licensee relating to the activities performed by it, the
subcontractor or investigator site, including the medical records of any patient participating in any clinical study, in each
case generated pursuant to the said Development. This right to inspect all data, documentation, and work product relating to the
Product in the Field in the Territory may be exercised once for each Calendar Year (and more frequently if any material issues
are discovered pursuant to an authorized audit) during the Term upon reasonable notice, or such longer period as shall be required
by Applicable Laws. The audit rights described in this Section 4.7 are without limitation of other audit rights described elsewhere
in this Agreement.

 

ARTICLE
5

REGULATORY

 

5.1
Regulatory Data and Regulatory Materials.

 

5.1.1
Regulatory Data Generated by VBL and Licensee. Within thirty (30) days after the Effective Date, VBL and Licensee shall meet
and agree upon the portion of Regulatory Materials and Regulatory Data which is in VBL’s possession and that is necessary
for Licensee to perform its obligations hereunder and VBL shall thereafter supply Licensee with such Regulatory Materials and
Regulatory Data as promptly as reasonably practicable. During the Term, VBL and Licensee shall each promptly provide to the other
copies of any further Regulatory Materials and Regulatory Data that either may generate or otherwise acquire, and at any time
during the Term, Licensee may request to meet with VBL to discuss additional Regulatory Materials and Regulatory Data that VBL
can provide to Licensee. For clarity, Regulatory Materials and Regulatory Data generated or acquired by VBL’s sublicensees
shall be included in such Regulatory Materials and Regulatory Data to be provided by VBL to Licensee to the extent that such materials
are accessible to and Controlled by VBL.

 

5.1.2
Use of Data by Licensee. Licensee may only use the Regulatory Materials and Regulatory Data, and any other Development Data,
provided by VBL hereunder for the purposes of Developing and Commercializing the Product, and obtaining and maintaining Regulatory
Approval for the Product, in the Field in the Territory pursuant to this Agreement. VBL may use the Regulatory Materials and Regulatory
Data, and any other Development Data, provided by Licensee hereunder for the purposes of Development and Commercialization of
and obtaining and maintaining Regulatory Approval of the Product (a) outside the Territory (whether in the Field or outside Field)
and (b) outside the Field.

 

    	24

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

5.1.3
Regulatory Materials. Each Party shall, as soon as reasonably practicable after the same become available, provide the other
Party with copies of the core data sheet, approved local prescriber, and patient-directed, labeling that are proposed or approved
for the Commercialization and Development of the Product in the Field in the Territory, with respect to Licensee, or outside the
Field or outside the Territory, with respect to VBL.

 

5.2
Regulatory Filings and Regulatory Approvals.

 

5.2.1
General Responsibilities; Ownership of Regulatory Approvals. Subject to Section 5.2.4, as between the Parties, (a) Licensee
shall be responsible for the preparation of all Regulatory Materials necessary or desirable for obtaining and maintaining the
Regulatory Approvals for the Product in the Field in the Territory (including in connection with Patient Information Leaflets,
labeling and packaging for the Product in the Field in the Territory) and Licensee shall submit such Regulatory Materials, as
applicable, to the applicable Governmental Authorities in the Territory and (b) VBL shall be responsible for the preparation of
all Regulatory Materials necessary or desirable for obtaining and maintaining the Regulatory Approvals for the Product in the
Field outside of the Territory, including in the U.S. (including in connection with Patient Information Leaflets, labeling and
packaging for the Product in the Field outside of the Territory), and VBL shall, or shall cause its affiliates or licensees to,
submit such Regulatory Materials, as applicable, to the applicable Governmental Authorities outside of the Territory and maintain
such Regulatory Approvals outside of the Territory, including in the U.S., for the Term of this Agreement. For clarity, to the
extent allowed by Applicable Laws, all Regulatory Approvals for the Product in the Field in the Territory (other than those related
solely to the Manufacture of the Finished Product, if any, which it is agreed shall be held and owned by VBL) shall be held and
owned by Licensee in its name. In the event that the Applicable Law does not allow Licensee to be the holder of certain Regulatory
Approvals for the Product in the Territory, such Regulatory Approval shall be held by VBL in its name with the intent to provide
under this Agreement to Licensee the privileges of ownership of (and related usage rights for) such Regulatory Approvals and related
Regulatory Materials. In furtherance of the foregoing, (i) to the extent required by Applicable Laws or a Regulatory Authority
(which requirement shall be notified in writing by Licensee to VBL), or (ii) at the reasonable request of Licensee, then VBL or
its designee shall attend key meetings with the relevant Regulatory Authorities with respect to obtaining or maintaining the Regulatory
Approvals for the Product in the Field in the Territory, at Licensee’s cost and expense; provided, that, to the extent the
subject matter of such meeting makes it appropriate given the allocation of responsibilities herein (e.g., VBL’s responsibility
for Manufacturing the Product), then VBL or its designee may attend such meeting at VBL’s cost and expense.

 

    	25

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

5.2.2
Cost of Regulatory Activities. All Regulatory Costs incurred in connection with the preparation by or on behalf of Licensee
of Regulatory Materials for, and obtaining of, Regulatory Approvals in the Field in the Territory for Product shall be borne solely
by Licensee. Licensee shall be responsible for all Regulatory Costs involved in the maintenance of all Regulatory Approvals for
Product in the Field in the Territory. VBL shall invoice Licensee for Regulatory Costs it incurs in connection with the preparation
of Regulatory Materials for, and obtaining of Regulatory Approvals in, the Field in the Territory for the Product to the extent
that such Regulatory Costs to be incurred by VBL are incurred in accordance with the Development Plan or have otherwise been approved
by Licensee in writing, which invoices Licensee shall pay within forty-five (45) days of receipt thereof.

 

5.2.3
Reporting and Review. Licensee shall keep VBL reasonably and regularly informed in connection with the preparation of all
Regulatory Materials, Regulatory Authority review of Regulatory Materials, and Regulatory Approvals, in each case with respect
to Product for sale in the Field in the Territory. Licensee shall provide VBL, within five (5) days to the extent material, and
otherwise within fifteen (15) days, with copies of all notices, questions, and requests for information in tangible form which
it receives from a Regulatory Authority with respect to Product for sale in the Field. Similarly, VBL shall provide Licensee,
within five (5) days, with copies of all notices which it receives from a Regulatory Authority outside of the Territory and which
may have a material impact on the development, manufacture or sale of the Product in the Territory.

 

5.2.4
Consultation and Approval Prior to Regulatory Filings. The Parties shall consult with each other on the strategy for pre-authorization
activities (i.e., Regulatory Authority meetings) and post-authorization activities, with respect to Regulatory Approvals for the
Product in the Field in the Territory prior to the filing. Without limitation of the foregoing, Licensee shall provide VBL (through
the applicable Committee) with a copy of all proposed Regulatory Materials in English for review prior to filing, and subject
to Section 3.1.6, Licensee shall take into account any reasonable comments received from VBL in finalizing the Regulatory Materials
to the extent VBL provides comments in a timely manner (which for this purpose shall mean within thirty (30) days after receiving
such Regulatory Materials); provided that, if such Regulatory Materials are required in order to obtain Regulatory Approval for
the Product in the Field in the Territory, then Licensee may submit such Regulatory Materials but shall use reasonable efforts
to revise them to the extent possible to take into account VBL’s comments.

 

5.3
Communications. The Parties shall cooperate in communicating with any Regulatory Authority having jurisdiction regarding the
Product in the Field whether within the Territory or outside the Territory and Licensee shall immediately notify VBL in the event
that Licensee (or any of its Affiliates, Sublicensees, subcontractors, wholesalers or distributors) communicates, or intends to
communicate, either on its own initiative in accordance with this Agreement or as a result of such a Regulatory Authority initiating
contact with such Person in connection therewith. Notwithstanding the foregoing, except as may be required by Applicable Laws,
Licensee (and its Affiliates, Sublicensees, subcontractors, wholesalers and distributors) shall not, with respect to the Product,
communicate with (i) any Regulatory Authority having jurisdiction outside the Territory regarding the Product or (ii) any Regulatory
Authority with respect to the Product for use outside the Field, in each case, unless explicitly provided for in the Development
Plan or requested or permitted in writing to do so by VBL, or unless so ordered by such Regulatory Authority, in which case Licensee
shall immediately notify VBL of such order and shall, to the extent permitted by Applicable Laws, not take any further actions
or communicate with such Regulatory Authority further until VBL has provided instruction as to how to proceed, which instruction
shall be given reasonably in advance of the deadline, if any. All communications with Regulatory Authorities regarding the Product
in the Field in the Territory shall be undertaken as provided in this Agreement.

 

    	26

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

5.4
No Other Regulatory Filings. Except as otherwise expressly set forth in ARTICLE 5, Licensee (and its Affiliates) shall not
file any Regulatory Materials or Regulatory Approvals for the Product or that are otherwise based on any VBL Technology or any
Collaboration Patents, unless otherwise agreed by the Parties.

 

5.5
Rights of Reference.

 

5.5.1
Licensee’s Rights. VBL shall permit Licensee (and its Affiliates or permitted Sublicensees) to access, and shall provide
Licensee (and its Affiliates or permitted Sublicensees) with sufficient rights to reference and use, in association with exercising
Licensee’s rights and performing its obligations under this Agreement, VBL’s Development Data, Regulatory Materials
and Regulatory Approvals outside the Territory that are associated with the Product in the Field. VBL shall transmit to the extent
accessible to and Controlled by VBL all necessary and appropriate letters to applicable Regulatory Authorities advising such applicable
Regulatory Authorities of such rights of reference and use.

 

5.5.2
VBL’s Rights. Licensee shall permit VBL (and its Affiliates or permitted Sublicensees) to access, and shall provide
VBL (and its Affiliates or permitted Sublicensees) with sufficient rights to reference and use, in association with exercising
its rights and performing its obligations under this Agreement, Licensee’s Development Data, Regulatory Materials and Regulatory
Approvals in the Territory that are associated with the Product. Licensee shall transmit to the extent accessible to and Controlled
by Licensee all necessary and appropriate letters to applicable Regulatory Authorities advising such applicable Regulatory Authorities
of such rights of reference and use.

 

5.6
Adverse Event Reporting, Safety Data Exchange and Medical Inquiries.

 

5.6.1
Pharmacovigilance. Subject to the terms of this Section 5.6.1, each Party shall be responsible for its respective pharmacovigilance
obligations under Applicable Laws. Licensee, as the intended beneficiary under this Agreement of the privileges of ownership of
the Regulatory Approvals in the Field in the Territory, shall be responsible for the collection, review, assessment, tracking
and filing of information related to adverse events associated with the Product in the Territory (whether or not Regulatory Approval
has been achieved), in each case in accordance with Applicable Laws and this Agreement (and Licensee shall ensure that, in the
Development and Commercialization of the Product, it will record, investigate, summarize, notify, report and review all adverse
events in accordance with Applicable Laws, including, for clarity, laws relating to adverse event reporting in the Territory).
VBL (or its designee) shall be responsible for the collection, review, assessment, tracking and filing of information related
to adverse events associated with the Product in the countries outside the Territory. The safety units from each of the Parties
shall meet and agree upon a written pharmacovigilance agreement for exchanging adverse event and other safety information relating
to the Product promptly following the Effective Date, and in any event, prior to Licensee’s first clinical activity or prior
to the first Regulatory Approval in the Territory (whichever is first). Such written pharmacovigilance agreement shall ensure
that adverse event associated with the Product and other safety information is exchanged according to a schedule that will permit
each Party (and its designees or its sublicensees) to comply with Applicable Laws and regulatory requirements in their respective
markets.

 

    	27

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

5.6.2
Global Safety Database. VBL shall be responsible for maintaining the global safety database for Product. The written pharmacovigilance
agreement prescribed by Section 5.6.1 shall ensure that adverse event and other safety information is exchanged according to a
schedule that will permit VBL (and each of its designees and sublicensees, as applicable) to comply with Applicable Laws and regulatory
requirements in their respective markets. VBL shall provide Licensee with reasonable access to such global safety database without
any compensation to VBL.

 

5.6.3
Medical Inquiries for the Product. Following the Effective Date, Licensee, as the intended beneficiary under this Agreement
of the privileges of ownership of the Regulatory Approvals in the Field in the Territory, shall be responsible for handling all
medical questions or inquiries in the Territory, including all Product Complaints, with regard to any Product sold by or on behalf
of Licensee (or any of its Affiliates), in each case in accordance with Applicable Laws and this Agreement. VBL shall provide
a copy of any standardized responses to medical inquiries to Licensee for Licensee’s use with respect to the Product in
the Field in the Territory. VBL shall immediately forward any and all medical questions or inquiries which it receives with respect
to any Product sold by or on behalf of Licensee (or any of its Affiliates) in the Territory to Licensee in accordance with all
Applicable Laws and Licensee shall immediately forward to VBL any and all medical questions or inquiries that it receives with
respect to Product (i) not sold by or on behalf of Licensee (or any of its Affiliates) in the Territory or (ii) outside of the
Territory, in each case in accordance with all Applicable Laws. Notwithstanding the foregoing, VBL shall be responsible for handling
all Product Complaints other than those related to the Development and Commercialization of the Product in the Field in the Territory,
and Licensee shall refer all such Product Complaints to VBL. Licensee shall be responsible for handling all Product Complaints
related to the Development and Commercialization of the Product in the Field in the Territory, and VBL shall refer all such Product
Complaints to Licensee.

 

5.7
Regulatory Authority Communications Received by a Party.

 

5.7.1
General. Each Party shall immediately inform the other Party of notification of any action by, or notification or other information
which it receives (directly or indirectly) from, any Regulatory Authority whether inside the Territory or outside the Territory
which (i) raises any material concerns regarding the safety or efficacy of the Product; (ii) indicates or suggests a potential
material liability of either Party to Third Parties in connection with the Product; (iii) is reasonably likely to lead to a recall,
market withdrawal or market notification with respect to the Product whether inside the Territory or outside the Territory; or
(iv) relates to expedited and periodic reports of adverse events with respect to the Product whether inside the Territory or outside
the Territory, or Product Complaints, and which may have an adverse impact on Regulatory Approval or the continued Commercialization
of the Product whether inside the Territory or outside the Territory. Licensee shall be solely responsible for responding to any
such communications relating to the Product in the Field in the Territory and the Parties shall reasonably cooperate with and
assist each other in complying with regulatory obligations, including by VBL providing to Licensee such information and documentation
which is in VBL’s possession as may be necessary or reasonably helpful for Licensee to prepare a response to an inquiry
from a Regulatory Authority in the Territory with respect to the Product in the Field. Each Party shall also promptly provide
the other Party with a copy of all correspondence received from a Regulatory Authority whether inside the Territory or outside
the Territory specifically regarding the matters referred to above. VBL (or its designee) shall be solely responsible for any
communications relating to the Product outside of the Territory or outside the Field.

 

    	28

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

5.7.2
Disclosures. In addition to its obligations under this Agreement, each Party shall disclose to the other Party (and such Party
shall have the right to subsequently disclose to its designees or sublicensees (in the case of VBL) or permitted Sublicensees
(in the case of Licensee)) the following regulatory information:

 

(a)
all material information pertaining to actions taken by Regulatory Authorities, whether inside the Territory or outside the Territory,
in connection with the Product in the Field, including any notice, audit notice, notice of initiation by Regulatory Authorities
of investigations, inspections, detentions, seizures or injunctions concerning the Product in the Field, notice of violation letter
(i.e., an untitled letter), warning letter, service of process or other inquiry; provided, however, that a Party shall be entitled
to redact those portions thereof to the extent not related to the Product in the Field. Without limiting the generality of the
foregoing, each Party shall promptly, but in any event within two (2) Business Days, inform the other Party of any inspections,
proposed regulatory actions, investigations or requests for information or a meeting by any Regulatory Authority with respect
to the Product in the Field whether inside the Territory or outside the Territory; and

 

(b)
all information pertaining to notices from Regulatory Authorities, whether inside the Territory or outside the Territory, of non-compliance
with Applicable Laws in connection with the Product, including receipt of a warning letter or other notice of alleged non-compliance
from any Regulatory Authority relating to the Product; provided, however, that a Party shall be entitled to redact those portions
thereof to the extent not related to the Product.

 

5.8
Recall, Withdrawal, or Market Notification of Product.

 

5.8.1
Notification and Determination. In the event that any Governmental Authority threatens or initiates any action to remove the
Product from the market in the Field whether inside the Territory or outside the Territory (in whole or in part), the Party receiving
notice thereof shall notify the other Party of such communication immediately, but in no event later than one (1) Business Day,
after receipt thereof. Notwithstanding the foregoing, in all cases Licensee, as the intended beneficiary under this Agreement
of the privileges of ownership of the Regulatory Approvals in the Field in the Territory, shall determine (and notify VBL with
respect to such determination) whether to initiate any recall, withdrawal or market notification of the Product in the Field in
the Territory, and VBL, acting as the holder of the Regulatory Approval, shall act on behalf of Licensee in any recall, withdrawal
and market notification of the Product. VBL shall determine whether to initiate any such recall, withdrawal or market notification
of the Product outside the Field in the Territory, or outside the Territory, including the scope of such recall or withdrawal
(e.g., a full or partial recall, temporary or permanent recall, or “dear doctor” letter) or market notification; provided,
however, that, before Licensee or VBL (as the case may be) initiates a recall, withdrawal or market notification in the Territory,
the Parties shall promptly meet and discuss in good faith the reasons therefor; provided, that such discussion shall not delay
any action that is required to be taken under Applicable Laws in relation to any recall, withdrawal or market notification. In
the event of any such recall, withdrawal or market notification in the Territory, Licensee shall determine the necessary actions
to be taken, and shall implement such action, with VBL providing reasonable input (which Licensee shall in good faith consider
and incorporate into any recall, withdrawal or market notification strategy) and reasonable assistance, to conduct such recall,
withdrawal or market notification. Without limiting the foregoing, in the event of a recall, withdrawal or market notification
outside the Territory, VBL shall have the right to cause Licensee to initiate a Product recall, withdrawal or market notification
in the Territory; provided, however, that, before VBL can cause Licensee to initiate a recall, withdrawal or market notification
in the Territory, the Parties shall promptly meet and discuss in good faith the reasons therefor. Licensee shall at all times
utilize a batch tracing system which will enable the Parties to identify, on a prompt basis, customers within the Territory who
have been supplied with Product of any particular batch, and to recall such Product from such customers as set forth in this Section
5.8.1.

 

    	29

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

5.8.2
Cost Allocation. All direct costs and expenses associated with implementing a recall, withdrawal or market notification with
respect to the Product in the Field in the Territory shall be allocated between VBL and Licensee as follows:

 

(a)
in the event, and to the extent, that the recall, withdrawal or market notification arises as a result of a material breach of
this Agreement by any Party, then such Party shall bear the costs and expenses, including internal expenses and Out-of-Pocket
Costs of the other Party, for implementing such recall, withdrawal or market notification; and

 

(b)
in all other events, including where that the recall, withdrawal or market notification arises as a result of any adverse event
or other safety issues concerning the Product not as a result of a material breach of this Agreement by any Party, then the costs
and expenses incurred by either Party, including internal expenses and Out-of-Pocket Costs, for implementing such recall, withdrawal
or market notification, shall be allocated between the Parties as agreed by the Parties; provided, that, if the Parties are unable
to agree on such allocation within thirty (30) days after notice in writing by one Party to the other Party, then the Parties
shall refer such dispute to arbitration in accordance with Section 15.3. Until such an allocation is agreed or determined, each
of the Parties will bear fifty percent (50%) of such costs and expenses and shall make reconciliation payments to each other on
a timely basis in order to effectuate such cost sharing.

 

ARTICLE
6

COMMERCIALIZATION

 

6.1
Commercialization in the Field in the Territory. During the Term, Licensee shall be solely responsible for Commercializing
the Product in the Territory for use in the Field, which Commercialization shall be in accordance with the Commercialization Plan
and this Agreement. Licensee shall be responsible for one hundred percent (100%) of the expenses (including Pre-Marketing and
other Commercialization expenses) incurred in connection with the Commercialization of the Product in the Territory for use in
the Field. Without limiting the foregoing, Licensee shall use Commercially Reasonable Efforts to Commercialize the Product for
use in the Field in the Territory; provided, that VBL is in compliance with its obligations to supply Product in accordance with
ARTICLE 7 of this Agreement.

 

    	30

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.2
Commercialization Plan.

 

6.2.1
Initial Commercialization Plan. On an annual basis commencing with the Calendar Year in which the first filing for Regulatory
Approval in the Field in the Territory is expected to be made, Licensee shall prepare a commercialization plan with respect to
the Commercialization of the Product in the Field in the Territory pursuant to this Agreement (the “Commercialization
Plan”). The initial Commercialization Plan (i.e., for the Product for the Calendar Year in which the Regulatory Approval
is expected to be received) will be prepared by Licensee (the “Initial Commercialization Plan”) at an appropriate
and agreed time following the Effective Date (but no later than twelve (12) months before the expected date of receipt of such
Regulatory Approval in the Territory) and shall be subject to approval by the JCSC; provided that if after good faith discussions
at the JCSC and, if necessary, the JMC, the Parties cannot agree on reasonable targets for sales of the Product in the Territory
per Calendar Year, commencing after the First Commercial Sale of the Product in the Territory (the “Sales Targets”),
they shall be determined in accordance with Article 15.

 

6.2.2
Updates to Commercialization Plan. On an annual basis no later than October 15 of each Calendar Year (except as set forth
in Section 6.2.1), Licensee shall create and submit to the JCSC for its review, discussion and approval the Commercialization
Plan for the following Calendar Year. From time to time during a given Calendar Year, Licensee may propose written updates to
the Commercialization Plan for review, discussion and approval by the JCSC. Licensee shall conduct all Commercialization of the
Product in accordance with the Commercialization Plan and this Agreement.

 

6.2.3
Contents of Commercialization Plan. Each annual Commercialization Plan shall include, among other things, a summary of the
following items in connection with the Commercialization of the Product in the Territory for use in the Field:

 

(a)
the short and long term vision for the Product and Product positioning; a situation analysis; a Strengths, Weaknesses, Opportunities
and Threats (SWOT) analysis; and a description of critical issues, strategic imperatives and tactics by strategic imperative with
timelines, from each of the following perspectives: marketing, sales, reimbursement and distribution;

 

(b)
the minimum level of sales efforts to be dedicated to the promotion of the Product (including expenditure thereon);

 

(c)
any material Promotional Materials and campaigns, including publication plans, to be used, subject to Section 6.8.1, in connection
with the promotion of the Product in the Field;

 

(d)
Commercialization activities to be focused on the hospital setting; and

 

(e)
the forecast of Product unit sales, gross sales, and Net Sales, including anticipated pricing and discounting strategies.

 

    	31

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.3
Licensee’s Performance.

 

6.3.1
Specific Commercialization Obligations. Without limiting the generality of the provisions of Section 6.1, in connection with
the Commercialization of the Product in the Territory for use in the Field by Licensee hereunder:

 

(a)
Licensee shall (i) use Commercially Reasonable Efforts to Commercialize Product for use in the Field in the Territory and maximize
the commercial potential for Product in the Field in the Territory, (ii) represent Product accurately and fairly, (iii) Commercialize
Product so as to reflect favorably on Product and the good name, goodwill and reputation of VBL; (iv) act in good faith to attempt
to maximize the economic value of Product and (v) use Commercially Reasonable Efforts to meet the Sales Targets set forth in the
Commercialization Plan, provided that VBL is in compliance with its obligations to supply Product in accordance with ARTICLE 7
of this Agreement and (vi) achieve the minimum level of sales activities for the promotion of the Product to be agreed by the
JCSC and set forth in the Commercialization Plan (e.g., minimum number of sales representatives dedicated to the Product,
minimum priority level for the Product, minimum number of sales details to potential prescriber accounts).

 

(b)
Licensee shall not (i) disparage, defame, discredit, or negatively comment to Third Parties in any way about or concerning the
Product or VBL (including VBL’s activities, operations or other products) nor permit its employees, officers or directors
to do so, (ii) utilize deceptive, misleading or unethical business practices, or (iii) knowingly take any action that would reasonably
be likely to prejudice the value of Product.

 

(c)
Licensee shall be solely responsible for (i) receiving, accepting and filling orders for the Product in the Field in the Territory,
(ii) handling all returns of the Product in the Field in the Territory, (iii) controlling invoicing, order processing and collection
of accounts receivable for the sales of the Product in the Field in the Territory, and (iv) distributing and managing inventory
of the Product in the Field in the Territory.

 

(d)
Licensee shall use Commercially Reasonable Efforts to launch the Product in the Territory within a reasonable time after all applicable
Regulatory Approvals for Product have been obtained as agreed by the Parties and set forth in the Commercialization Plan, and
shall thereafter ensure that the Product remains commercially available in the Territory for the duration of the Royalty Term,
subject to adequate supply of the Product by VBL in accordance with ARTICLE 7 of this Agreement.

 

(e)
Following the First Commercial Sale of the Product in the Field in the Territory and for the duration of the Royalty Term, Licensee
shall use Commercially Reasonable Efforts to maximize the market access of the Product in the Field in the Territory.

 

6.3.2
Commercialization Plan. Without limiting the obligations of Licensee under Sections 6.3.1, Licensee shall use Commercially
Reasonable Efforts to carry out the Commercialization activities in the Commercialization Plan in accordance with the time frames
set forth in the Commercialization Plan.

 

    	32

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.4
Reports. Without limiting Licensee’s quarterly reporting obligations under Section 8.5 with respect to Net Sales, Royalty
Payments and Sublicense Income, Licensee shall (i) within thirty (30) days after the end of each Calendar Year, provide VBL a
reasonably detailed report regarding its significant Commercialization activities involving Product during the preceding Calendar
Year, including number of sales representatives and details, and overall marketing expenditures; and (ii) within three (3) months
after the end of each Calendar Year, provide VBL the number of prescriptions written (aggregated by province) to the extent such
number of prescriptions written can be provided by IMS (or a similar internationally recognized information service). In addition,
Licensee shall update the JCSC no less than twice per Calendar Year regarding its significant Commercialization activities involving
the Product.

 

6.5
Compliance.

 

6.5.1
Reporting. Each Party shall ensure that all government reporting (including price and gift reporting), and manufacturing,
sales, marketing and promotional practices, in respect of the Product in the Territory meet the standards required by all Applicable
Laws, including without limitation (i) the Drug Administration Law, (ii) any anti-unfair competition law of the Territory, and
(iii) the Anti-Corruption Laws. Each of VBL and Licensee shall reasonably cooperate with the other Party to provide the other
Party access to any and all information, data and reports required by the other in order to comply with the provisions of Applicable
Laws required in the respective jurisdictions in which each Party manufactures or sells the Product, including reporting requirements,
in a timely and appropriate manner. Each Party shall ensure that its reporting under governmental healthcare programs in the respective
jurisdictions in which each Party manufactures or sells the Product is true, complete and correct in all respects; provided, however,
that a Party shall not be held responsible for submitting erroneous reports if such deficiencies result from information provided
by the other Party which itself was not true, complete and correct.

 

6.5.2
Corporate Compliance Program. Each Party shall maintain an effective comprehensive corporate compliance program that is compliant
with Applicable Laws; provided, however, that, whether or not required by Applicable Laws, such compliance program will include
a mechanism for its employees and the public to report, anonymously if they choose, any concerns about potential illegal activity
relating to the Product. Such compliance program will require such Party to investigate any such report of wrongdoing. At the
other Party’s request, each Party shall provide to the other written copies in English of any reports of any investigations
initiated by Governmental Authorities in the respective jurisdictions as to the knowledge of such Party.

 

6.5.3
General Compliance Obligations. Each Party specifically agrees, on behalf of itself and its Affiliates, sublicensees and subcontractors,
and its and their respective officers, directors and employees (together with such Party, the “Representatives”),
to comply with Applicable Laws and, specifically, in connection with the subject matter of this Agreement:

 

(a)
The Representatives shall not directly or indirectly pay, offer or promise to pay, authorize the payment of any money or give,
offer or promise to give, or authorize the giving of anything else of value, to: (a) any Government Official in order to influence
official action; (b) any individual or entity (whether or not a Government Official) (1) to influence such individual or entity
to act in breach of a duty of good faith, impartiality or trust (“acting improperly”), (2) to reward such individual
or entity for acting improperly or (3) where such individual or entity would be acting improperly by receiving the money or other
thing of value; (c) any individual or entity (whether or not a Government Official) while knowing or having reason to know that
all or any portion of the money or other thing of value will be paid, offered, promised or given to, or will otherwise benefit,
the individuals or entities for the purposes listed in clauses (a) and (b) above.

 

    	33

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(b)
The Representatives shall not, directly or indirectly, solicit, receive or agree to accept any payment of money or anything else
of value in violation of the Anti-Corruption Laws.

 

(c)
The Representatives shall comply with the Anti-Corruption Laws and shall not take any action that will, or would reasonably be
expected to, cause either Party or its Affiliates to be in violation of any such laws or policies.

 

(d)
No Representative that will participate or support its performance of its obligations hereunder has, directly or indirectly, (i)
paid, offered or promised to pay or authorized the payment of any money, (ii) given, offered or promised to give or authorized
the giving of anything else of value or (iii) solicited, received or agreed to accept any payment of money or anything else of
value, in each case ((i), (ii) and (iii)), in violation of the Anti-Corruption Laws during the three (3) years preceding the date
of this Agreement.

 

(e)
Each Representative shall have acquired all applicable licenses, permits, qualifications, approvals or authorizations by the competent
Governmental Authority in each jurisdiction in which it operates, in accordance with Applicable Laws.

 

(f)
Each Party shall promptly provide the other Party with written notice of the following events: (i) upon becoming aware of any
actual or alleged breach or violation by such Party or its Representative of any obligation in this Section 6.5 or (ii) upon receiving
a formal notification that it is the target of an investigation by a governmental authority for a violation of the Anti-Corruption
Laws or upon receipt of information from any of the Representatives connected with this Agreement that any of them is the target
of an investigation by a governmental authority for a violation of the Anti-Corruption Laws.

 

Each
Party shall be responsible for any breach of any obligation under this Section 6.5 or of the Anti-Corruption Laws by any of its
Representatives.

 

6.5.4
Non-Compliance. On the occurrence of any of the following events:

 

(a)
a Party (as the reporting Party) becomes aware of, whether or not through a Compliance Audit, that the other Party or any of its
Representatives is in breach or violation of any obligation in this Section 6.5 or of the Anti-Corruption Laws; or

 

    	34

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(b)
notification is received under Section 6.5.3(f) relating to any suspected or actual violation of the Anti-Corruption Laws by the
other Party or any of its Representatives, then, in either case ((a) or (b)), the reporting Party shall have the right, in addition
to any other rights or remedies under this Agreement or to which the reporting Party may be entitled in law or equity, to: (i)
take such steps as are reasonably necessary in order to avoid a potential violation or continuing violation by the other Party
or any of its Representatives of the Anti-Corruption Laws, including by requiring that the other Party agrees to such additional
measures, including possible self-disclosures, representations, warranties, undertakings and other provisions as are reasonably
necessary (“Provisions”); and (ii) terminate this Agreement in its entirety immediately: (A) in the event that
the breach or violation by the other Party which is the subject of the notice pursuant to Section 6.5.3(f)(i) is confirmed by
an internal investigation of the compliance team of the other Party, and has not been cured to the reasonable satisfaction of
the reporting Party within thirty (30) days after receipt of such notice (provided, that the reporting Party shall have the right
in its sole discretion to challenge the finding of the other Party’s internal investigation and, upon exercising such right,
the Parties agree to cooperate with, and submit any and all evidence in connection with such investigation to, an internationally
recognized law firm mutually selected by the Parties in order to resolve such dispute within thirty (30) days after such submission
and the Parties agree to be bound by the final decision rendered in connection therewith); or (B) in the event that an investigation
which is the subject of the notice pursuant to Section 6.5.3(f)(ii) is concluded with a finding that the other Party violated
the Anti-Corruption Laws.

 

6.5.5
Effective Date Status; Improvement Plan. Each Party represents and warrants that (i) it has reviewed its internal programs
in relation to compliance with Applicable Laws and the Anti-Corruption Laws in advance of the signing of this Agreement, and (ii)
it and the other Representatives can and will continue to comply with such Applicable Laws and Anti-Corruption Laws in performance
of its obligations hereunder. Should any measures be identified at meetings of the applicable Committee(s) that should be reasonably
taken to improve the Representatives’ compliance with such Anti-Corruption Laws for the performance of its obligations hereunder
(the “Improvement Plan”), the applicable Party shall implement such Improvement Plan within an agreed reasonable
timeframe (which shall in any event not be in excess of three (3) calendar months) from the date the Improvement Plan is delivered
to such Party.

 

6.5.6
Compliance Certification. Within thirty (30) days of each anniversary of the Effective Date (i.e., once per Calendar Year
on the anniversary of the Effective Date), Licensee shall submit to VBL a written certification by an appropriate corporate officer
of Licensee, in a form acceptable to VBL, regarding Licensee’s (and its Affiliates, sublicensees and subcontractors, as
applicable) compliance with the terms of this Section 6.5.

 

6.5.7
Disclaimer. Each Party acknowledges that compliance with the Anti-Corruption Laws and other Applicable Laws by it and its
Representatives is the responsibility of such Party under this Section 6.5, and agrees that the other Party shall have no liability
to such Party or any of its Representatives by reason of the other Party’s exercise (or failure to exercise) its rights
or performance of its obligations under this Section 6.5.

 

6.6
Compliance Audit. For the Term, Licensee shall, for the purpose of auditing and monitoring the performance of its compliance
obligations hereunder, permit VBL and its Affiliates or the auditors of any of them to have once per Calendar Year (or more frequently
upon a showing of good reason), upon reasonable notice, access to any premises of the Licensee or its Affiliates used in connection
with this Agreement (“Compliance Audit”). To the extent that any Compliance Audit by or on behalf of VBL requires
access and review of any commercially or strategically sensitive information of the Licensee or its Affiliates relating to the
business of the Licensee or its Affiliates, such activity shall be carried out by a Third Party professional advisor appointed
by VBL and such professional advisor shall only report back to VBL such information as is directly relevant to informing VBL on
the Licensee’s compliance with the particular provisions of this Agreement being Compliance Audited (and shall enter into
a commercially reasonable confidentiality agreement consistent with the foregoing). The costs and fees of any such Compliance
Audit shall be paid by VBL, except that, if a Compliance Audit reveals any material breach by Licensee of Section 6.5 as documented
by such Third Party professional advisor, such costs and fees shall be paid by Licensee. Licensee shall bear its own costs of
rendering assistance to the Compliance Audit. The audit rights described in this Section 6.6 are without limitation of other audit
rights described elsewhere in this Agreement.

 

    	35

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.7
Provisions applicable to Sales Representatives and/or Medical Science Liaisons.

 

6.7.1
General. Licensee shall, and shall cause its Sales Representatives to, conduct all details with respect to the Product and
perform its other Commercialization activities under this Agreement in the Territory in adherence with Applicable Laws and Regulatory
Approvals.

 

6.7.2
Compensation. Licensee shall be solely responsible for (i) any compensation that is payable to its Sales Representatives (including
with respect to any employee benefit plan), (ii) the payment or withholding of any contributions, payroll taxes, or any other
payroll-related item by or on behalf of Licensee (or its Affiliates) or any of its Sales Representatives or Medical Science Liaisons,
and (iii) any failure of Licensee (or its Affiliates) to withhold or pay required taxes or failure to file required forms with
regard to compensation and benefits paid or extended by Licensee (or its Affiliates) to any of its Sales Representatives or Medical
Science Liaisons.

 

6.7.3
Training. Licensee shall be solely responsible for training, and all costs associated with such training, its Sales Representatives
and Medical Science Liaisons using Commercially Reasonable Efforts and in all cases in accordance with Applicable Laws, including
timely reporting of any adverse events with respect to the Product. Such training will include, among other topics, PMDA requirements
and other national and local regulations and industry guidelines, including those set forth in Section 6.5.1 above.

 

6.7.4
Acts of Sales Representatives and Medical Science Liaisons. For the avoidance of doubt, Licensee shall be solely responsible
for any act or omission of its Sales Representatives and Medical Science Liaisons while interacting with healthcare professionals
or performing any Commercialization activities (including any proceedings or claims for benefits that any Sales Representative
or Medical Science Liaison may make under or with respect to any VBL benefit plan). Licensee shall be solely responsible and liable
for all probationary and termination actions taken by it with respect to its Sales Representatives and Medical Science Liaisons,
as well as for the formulation, content and dissemination (including content) of all employment policies and rules (including
written compliance policies, and probationary and termination policies) applicable to its employees and contractors. Licensee
shall ensure that its policies require a clear delineation between the promotional and medical activities, including training
both its Sales Representatives and Medical Science Liaisons on the differentiation of their roles under Applicable Laws. For clarity,
Sales Representatives shall not engage in medical affairs activities (including receiving, approving or delivering grants) nor
will they attend formulary committee meetings and no Medical Science Liaison shall serve as a Sales Representative.

 

    	36

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.8
Promotional Materials.

 

6.8.1
Creation of Promotional Materials. Licensee will create and develop Promotional Materials for the Territory in accordance
with the Regulatory Approvals and Applicable Laws and at Licensee’s sole cost and expense, in each case taking into consideration
(to the extent consistent with such Regulatory Approvals and Applicable Laws) promotional materials used by VBL in the U.S. (copies
of which shall be provided by VBL to Licensee at Licensee’s reasonable request). Prior to the First Commercial Sale of the
Product, Licensee shall provide samples thereof to VBL in English for its information prior to distributing such Promotional Materials
(for clarity, such samples need only be submitted for each different type of Promotional Material, as opposed to each item of
Promotional Material needing to be submitted). Any new samples of Promotional Material for the Territory made thereafter will
be provided to VBL for its information prior to being distributed. To the extent Licensee includes any VBL trademarks in the Promotional
Materials for the Territory, Licensee shall comply with VBL’s then current guidelines for trademark usage that are provided
by VBL.

 

6.8.2
Inclusion of Logos on Packaging and Promotional Materials. To the extent permitted or required by Applicable Laws and subject
to obtaining necessary Regulatory Authority approvals, with respect to Product to be sold by or on behalf of Licensee (or any
of its Affiliates) in the Territory, the VBL trademark and the Licensee trademark shall be given equal prominence on all package
inserts utilized by Licensee. Subject to the terms set forth herein, VBL hereby grants to Licensee a non-exclusive, royalty-free
right and license during the Term to utilize the VBL trademark (including all trademarks, names and logos) in order to perform
the Commercialization activities required to be performed by Licensee hereunder in accordance with the terms of this Agreement,
and Licensee hereby grants to VBL a non-exclusive, royalty free right and license during the Term to utilize the Licensee trademark
(including all trademarks, names and logos) in order to perform the Manufacturing and other activities to be performed by or on
behalf of VBL under the terms of this Agreement. Each Party shall only use the trademark of the other Party with the necessary
trademark designations, and each Party shall use the other Party’s trademarks in compliance with the then-current guidelines
for trademark usage that are provided by the other Party and in a manner that does not derogate from such Party’s rights
in its trademarks, names and logos. Each Party shall submit representative samples of its use of the other Party’s trademark
for review by the JCSC. Each Party will take no action that will interfere with or diminish the other’s rights in its respective
trademarks, names and logos, and if a Party reasonably believes that the use of its trademarks, names and logos by the other Party
hereunder is interfering with or diminishing its rights, such Party shall notify the other Party thereof in writing and such other
Party shall promptly cease use of such trademarks, names or logos in such manner. Each Party agrees that all use of the other
Party’s trademarks, names and logos will inure to the benefit of such other Party, including all goodwill in connection
therewith.

 

    	37

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.8.3
Licensee Ownership of Promotional Materials. Subject to ARTICLE 14, Licensee shall own all right, title and interest in and
to any Promotional Materials created by Licensee hereunder relating to the Product in the Field in the Territory including copyrights,
but excluding trademarks (including the Product Trademark), names, logos and other marks owned by or on behalf of VBL or its Affiliates.

 

6.8.4
Use of Promotional Materials Exclusively for the Product. The Promotional Materials, and any aspects of those uniquely tied
to the Product, shall be used by Licensee (and its Affiliates, Sublicensees, subcontractors, wholesalers and distributors) in
connection with the Commercialization of the Product in the Field in the Territory in accordance with the terms of this Agreement,
and Licensee shall not use, or allow any other Person to use, any such Promotional Materials except in accordance with this Agreement.

 

6.9
Product Trademarks and Product Trade Dress.

 

6.9.1
Product Trademark. Licensee shall Commercialize the Product in the Field in the Territory under such trademark (and logo)
as may be determined by Licensee after consultation with VBL (together, the “Product Trademark” and the “Product
Trade Dress”, respectively). For clarity, the Parties acknowledge and agree that it is their mutual intention that Licensee
Commercialize the Product in the Field in the Territory under the Product Trademark and the Product Trade Dress. Licensee shall
bear all costs relating to the creation, legal clearance, filing, registration, and maintenance of any alternative trademark and
trade dress. Licensee shall not employ any such alternative trademarks or trade dress without providing prior notice to VBL.

 

6.9.2
Use and Ownership of Product Trademarks and Product Trade Dress. All uses of the Product Trademark and Product Trade Dress
by Licensee (and its Affiliates, Sublicensees, subcontractors, wholesalers and distributors) to identify and/or in connection
with the Commercialization of the Product in the Field in the Territory shall be in accordance with Regulatory Approvals and all
Applicable Laws, as may be amended from time to time. Licensee (and its Affiliates) shall only use the Product Trademark and Product
Trade Dress pursuant to the terms of this Agreement to identify, and in connection with the Commercialization of, the Product
in the Territory for use in the Field. Licensee shall not (and shall cause its Affiliates, Sublicensees, subcontractors, wholesalers
and distributors not to) use such Product Trademark or Product Trade Dress to identify, or in connection with the marketing of,
any other products. VBL shall own and retain all rights to the Product Trademark and Product Trade Dress (in each case, together
with all goodwill associated therewith throughout the Territory), and Licensee shall assign (and shall cause its Affiliates, Sublicensees,
subcontractors, wholesalers and distributors to assign), and hereby does assign, to VBL, all of its and their right, title and
interest in and to such Product Trademark and Product Trade Dress. If Licensee filed and registered any such Product Trademark
or Product Trade Dress at the request of VBL, then VBL shall reimburse all reasonable costs relating to the filing, registration,
and maintenance of such Product Trademark or Product Trade Dress within forty-five (45) days of receipt of an invoice therefor.
VBL shall also own rights to any Internet domain names incorporating the Product Trademark or any variation or part of the Product
Trademark as its URL address or any part of such address. Licensee shall not establish any Internet domain name or URL incorporating
the Product Trademark without the prior written consent of VBL.

 

    	38

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.9.3
Maintenance of Product Trademark. During the Term, VBL shall (i) use Commercially Reasonable Efforts to establish, register
and enforce the Product Trademark and Product Trade Dress in the Territory, (ii) maintain the Product Trademark and Product Trade
Dress in the Territory and (iii) bear all costs and expenses relating to the foregoing.

 

6.9.4
Infringement of the Product Trademark. In the event that either Party becomes aware of any infringement of the Product Trademark
or Product Trade Dress by a Third Party in the Territory, such Party shall promptly notify the other Party and the Parties shall
consult with each other in good faith with respect thereto. Licensee shall, at its sole discretion, have the first right to determine
how to proceed with respect to such infringement, including by the institution of legal proceedings against such Third Party,
in which case all costs and awards relating to such legal proceedings will be borne exclusively by Licensee. If requested to do
so, VBL shall reasonably cooperate with any and all action initiated by Licensee, including by joining legal proceedings as a
party at Licensee’s reasonable expense. If Licensee elects not to take action or initiate legal proceedings against an instance
of infringement to the Product Trademark or Product Trade Dress in the Territory, VBL shall have the right at its own and sole
discretion to take action or initiate legal proceedings against such instance of infringement to the Product Trademark or Product
Trade Dress in the Territory, in which case all costs and awards relating to such legal proceeding will be borne exclusively by
VBL. If requested to do so, Licensee shall reasonably cooperate with any and all action initiated by VBL in connection therewith,
including, by joining legal proceedings as a party at VBL’s reasonable expense.

 

6.9.5
Trademark Acknowledgments. Each Party acknowledges the sole ownership by the other Party and validity of all copyright, trademarks,
trade dress, logos and slogans owned by the other Party and used or intended to be used in connection with the Commercialization
of the Product for the Field in the Territory. Each Party agrees that it will not at any time during or after the Term assert
or claim any interest in, or knowingly do anything which may materially and adversely affect the validity or enforceability of,
any copyright, trademark, trade dress, logo or slogan owned by the other Party and used or intended to be used on or in connection
with the marketing or sale of the Product. Neither Party will register, seek to register or cause to be registered any copyrights,
trademarks, trade dress, logos or slogans owned by the other Party and used or intended to be used on or in connection with the
marketing or sale of the Product or any variation thereof, under any Applicable Laws providing for registration of copyrights,
trademarks, service marks, trade names or fictitious names (including as an Internet domain name) or similar Applicable Laws,
without the other Party’s prior written consent (in its sole discretion).

 

6.10
Global Branding Strategy. VBL shall have the right, from time to time during the Term, to implement (and thereafter modify
and update) a global branding strategy, including global messaging, for the Product for use in the Field throughout the world
(the “Global Branding Strategy”). To the extent VBL determines to utilize such Global Branding Strategy, Licensee
shall use Commercially Reasonable Efforts to adhere to the Global Branding Strategy in its Commercialization of the Product, including
with respect to any Promotional Materials; provided, that, in the event that Licensee believes that the application of the Global
Branding Strategy in the Territory would be inappropriate whether because of linguistic or cultural particularities, because it
is against the Applicable Laws of the Territory or because Licensee reasonably determines it would be inconsistent with Licensee’s
obligation to use Commercially Reasonable Efforts to Commercialize the Product in the Territory, Licensee shall present such concern
to VBL, and the Parties shall discuss whether appropriate revisions to the Global Branding Strategy may make it appropriate for
use in the Territory. Nothing in this Section 6.10 shall be construed to derogate from Licensee’s ultimate right and responsibility
to use Commercially Reasonable Efforts to Commercialize the Product in the Territory in accordance with the terms and conditions
of this Agreement.

 

    	39

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

6.11
Commercialization Data. Licensee shall own all marketing and sales data and information resulting from its Commercialization
of the Product in the Field in the Territory (the “Commercialization Data”). Upon request from VBL, Licensee
shall provide to VBL a copy of the Commercialization Data, including promotional materials, marketing strategies, market research
data and customer lists. VBL shall have the right and license to use all such Commercialization Data (and the right to grant its
Affiliates and Third Parties the right to use such Commercialization Data) in connection with its commercialization of the Product
in the Field outside the Territory, which right and license shall survive the expiration or termination of this Agreement. Notwithstanding
the foregoing, Licensee’s obligation to provide Commercialization Data and VBL’s right to use such data shall be performed,
or exercised, respectively, in all instances in accordance with all Applicable Laws, including, without limiting the foregoing,
any data privacy laws.

 

ARTICLE
7

SUPPLY

 

7.1
VBL Supply Obligations.

 

7.1.1
General. VBL shall use best efforts to Manufacture (or have Manufactured) and supply all quantities of the Finished Product
duly forecasted and ordered by Licensee pursuant to this ARTICLE 7 for clinical and commercial use in the Field in the Territory,
in each case in accordance with the terms of this ARTICLE 7 and the Quality Agreement.

 

7.1.2
Development Supply. VBL shall use best efforts to Manufacture, or arrange for a Third Party to Manufacture, and supply all
of Licensee’s requirements of the Finished Product for Territory Development Activities to be performed by it in accordance
with the Development Plan, which supply shall be in accordance with the terms of this ARTICLE 7 and the applicable Quality Agreement.
The Finished Product shall be ordered and supplied for Territory Development Activities in accordance with the procedures set
forth in this ARTICLE 7; provided, that VBL shall have no obligation to supply Finished Product hereunder unless and until the
Parties have executed the Quality Agreement in accordance with Section 7.7.1.

 

7.1.3
Commercial Supply. VBL shall use best efforts to Manufacture, or arrange for a Third Party to Manufacture, and supply all
of Licensee’s requirements of the Finished Product for commercial sale in the Field in the Territory pursuant to this Agreement,
which supply shall be in accordance with the terms of this ARTICLE 7 and the applicable Quality Agreement.

 

7.1.4
Secondary Supply. VBL shall use Commercially Reasonable Efforts to establish, at its own cost and expense, a second source
of supply for the Finished Product at a facility that is separate from VBL’s Facility at Modiin, Israel, which may be an
additional VBL manufacturing site or a Third Party, and which is capable of Manufacturing the Finished Product pursuant to the
specifications and requirements set forth in this Agreement and the Quality Agreements (“Secondary Source”).
In the event that VBL is unable to fulfill Licensee’s requirements for the Finished Product through VBL’s own Manufacturing
capacity, VBL shall engage the Secondary Source to Manufacture the Finished Product to fulfill Licensee’s requirements thereof.

 

    	40

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

7.2
Exclusivity. Subject to the provisions of this Agreement and the Quality Agreement, and VBL’s supply of sufficient and
non-Defective Finished Products, Licensee shall, and shall cause its Affiliates and Sublicensees (as applicable) to, purchase
all of its and their respective requirements of the Product exclusively from VBL (except as set forth in Section 7.10), and VBL
shall, and shall cause its Affiliates and Manufacturing subcontractors (as applicable) to, supply the Product for sale in the
Field in the Territory exclusively to Licensee pursuant to the terms of this ARTICLE 7 and VBL shall not, and shall not permit
its Affiliates and sublicensees to, directly or indirectly (i) sell the Product in the Field in the Territory, (ii) supply the
Product to any Third Party in the Field in the Territory or (iii) supply the Product to any Third Party outside the Territory
that VBL knows intends to resell the Product in the Field in the Territory.

 

7.3
Packaging and Labeling; Certain Other Manufacturing Activities.

 

7.3.1
Finished Product. Notwithstanding anything to the contrary contained herein, in accordance with the procedures set forth in
the Quality Agreement, with respect to the supply of Finished Product, VBL or its designated Third Party shall be responsible
(at its sole cost and expense, which shall be included in the Cost of Goods and Supply Price) for all final product labeling and
packaging (whether in commercial or clinical packaging presentation, and, if not already qualified by VBL’s existing stability
program, including a new stability program, which shall be included in Cost of Goods and Supply Price), including insertion of
materials such as patient inserts, patient medication guides, professional inserts and any other written, printed or graphic materials
accompanying the Product, considered to be part of the Finished Product, and handling, storage, quality control, quality assurance,
and release testing and related activities, of the Finished Product in connection with the foregoing (collectively, “Packaging
and Labeling”). With respect to the supply of Finished Product, VBL or its designated Third Party shall ensure that
all such Packaging and Labeling shall comply with Applicable Laws, GMPs and the Regulatory Approvals for the Product in the Territory,
including the Product Specifications; provided, that Licensee shall be responsible for compliance with Applicable Laws, GMPs and
the Regulatory Approvals with respect to approved and camera-ready artwork for such Packaging and Labeling and all other printed
components and materials, which camera-ready artwork Licensee shall prepare and deliver to VBL (in electronic files in a native
electronic format) at least ninety (90) days prior to issuing a firm Purchase Order.

 

7.3.2
General. VBL or its designated Third Party shall also be responsible for performing any required testing and release testing
of the Finished Product and Licensee shall provide reasonable assistance to VBL in connection therewith, all as more particularly
set forth in the Quality Agreement; provided that if any release testing procedure or procedures are required for the Territory
but not for generally for markets outside the Territory, the Licensee shall bear the cost and expense of such specific procedure
or procedures.

 

    	41

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

7.4
Forecasting and Ordering.

 

7.4.1
Forecast. Licensee shall furnish the first forecast under this Section 7.4 no less than [***] before the anticipated
commencement of Territory Development Activities or Commercialization activities that will require Finished Product, as applicable
(the “Initial Forecast Date”). On the Initial Forecast Date and on the first day of each calendar month thereafter
(each a “Forecast Date”), Licensee shall furnish VBL a forecast of quantities of Finished Product that Licensee
expects to be delivered on a monthly basis in the [***] beginning one (1) Calendar Quarter after the Forecast
Date (each a “Forecast”), with the months included in the first Calendar Quarter of each Forecast being binding,
the months included in the second Calendar Quarter of each Forecast being permitted to vary in subsequent Forecasts by up to [***], the months included in the third Calendar Quarter of each Forecast being permitted to vary in subsequent Forecasts
by up to [***], and the remainder of each Forecast being a good faith estimate for informational and planning
purposes. If Licensee wishes to increase supply quantities at any time in excess of the volumes permitted under this Section 7.4.1,
upon Licensee’s request, the Parties shall discuss such increase in good faith and VBL shall use Commercially Reasonable
Efforts to supply any such increase in volumes. If Licensee wishes to make a firm, binding order for the Product, it must provide
VBL with a Purchase Order for the Product at least one (1) Calendar Quarter prior to the requested delivery date. All Forecasts
shall (i) be specified for Finished Product on a monthly basis and (ii) be for units of full packages of Finished Product. In
the event that the foregoing Forecasts change over time based on commercial or regulatory developments or other factors, the Parties
shall meet to discuss in good faith (through the applicable Committees) the reasonable ability of VBL to accommodate any such
change, a plan of action for accommodating such change, and an equitable allocation between the Parties of any resulting costs
and expenses.

 

7.4.2
Long Range Capacity Planning; Supply Chain Improvements. Concurrent with the Initial Forecast, for the purposes of discussion
and planning of manufacturing capacity Licensee shall provide a non-binding forecast of Finished Product needs for the [***] following that specified in the then current Forecast as described in Section 7.4.1 (“Long Range Forecast”).
In the event VBL projects a shortfall in capacity based on the Long Range Forecast, the Parties will jointly discuss alternatives
to increase such capacity, and the Parties shall promptly meet to discuss a reasonable manner of proceeding. Unless otherwise
agreed to by the Parties during the Term, the Long Range Forecast shall be updated by Licensee and reviewed with VBL on an annual
basis.

 

7.4.3
Orders. On each Forecast Date, in addition to the Forecast specified in Section 7.4.1, Licensee shall for the Term deliver
to VBL a firm purchase order or orders specifying the quantities of the Finished Product for delivery on a monthly basis in the
Calendar Quarter beginning one (1) Calendar Quarter after the Forecast Date, as well as the location of delivery and desired delivery
date for each delivery (each a “Purchase Order”). Each such Purchase Order shall provide for aggregate quantities
for delivery in such Calendar Quarter as set forth in the Forecast for such Calendar Quarter given one (1) Calendar Quarter earlier
than the Forecast Date on which such Purchase Order is placed; provided, however, that, to the extent a Purchase Order sets forth
quantities that are no less than [***], and no more than [***], of the quantities
contained in such Forecast, then VBL will use Commercially Reasonable Efforts to accommodate such amounts and accept such Purchase
Orders. Unless agreed separately between the Parties, each Purchase Order shall specify no more than one (1) delivery date for
the Finished Product in each calendar month.

 

    	42

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

7.4.4
Receipt and Acceptance. Subject to the terms and conditions of this Agreement, VBL shall use best efforts to supply, and Licensee
shall purchase, all Finished Product ordered and specified in a Purchase Order. Purchase Orders may be delivered electronically
or by other means to such location as VBL shall designate and shall be in a form reasonably acceptable to VBL. VBL shall provide
written confirmation of such Purchase Order to Licensee within ten (10) Business Days of receipt of such Purchase Order (the date
of such written confirmation, the “Purchase Order Acceptance Date”). If VBL fails to provide the written confirmation
of such Purchase Order in a timely manner, such Purchase Order shall be deemed to have been duly accepted by VBL and become legally
binding upon the Parties on the tenth (10th) Business Day after receipt by VBL. VBL shall accept any Purchase Order
for Finished Product that does not exceed the applicable maximum provided for in the most recent Forecast. If a Purchase Order,
whether or not accepted, exceeds such applicable maximum, the Parties shall seek to agree on a reasonable manner of proceeding.
VBL shall use Commercially Reasonable Efforts to supply any amount of Finished Product that Licensee orders pursuant to Section
7.4.3 in excess of the maximum amount deliverable under the ordering and forecasting procedures specified herein, but, in any
event, such efforts shall not be construed as an obligation hereunder and in no event shall VBL be deemed in breach of this Agreement
by means of a failure to provide Finished Product in excess of the Forecasted amount. Nothing in any such Purchase Order or written
acceptance shall supersede the terms and conditions of this Agreement or the Quality Agreement, and in the event of a conflict
between the terms such Purchase Order (or written acceptance, as applicable) and the terms of this Agreement (or the Quality Agreement,
as applicable), the terms of this Agreement (or the Quality Agreement, as applicable) shall control. All Purchase Orders, written
acceptances of Purchase Orders and other notices contemplated under this Section 7.4 shall be sent to the attention of such persons
as each Party may identify to the other in writing from time to time in accordance with Section 16.3. In addition, (i) VBL shall
not be liable for any delays related to changes or other matters applicable to any camera-ready artwork or other materials or
information provided by Licensee, and (ii) the Parties acknowledge that delivery times for clinical quantities may vary.

 

7.5
Supply Price and Invoicing.

 

(a)
Prior to Establishment of the NHI Price. Prior to final approval of the NHI price for the Product in the Territory, the
Finished Product supplied for Development or Commercialization in the Territory shall be invoiced at [***].

 

(b)
After Establishment of the NHI Price. After final approval of the NHI price for the Product in the Territory, the Finished
Product supplied for Development or Commercialization in the Territory shall be invoiced per dose at the lesser of (i) [***] of
the then-current NHI price or (ii) [***]. Notwithstanding the foregoing, if [***] of the NHI price is less than VBL’s Cost
of Goods plus [***], then the Supply Price shall be VBL’s Cost of Goods plus [***], but in no case shall the Supply Price be
greater than [***]. VBL shall use Commercially Reasonable Efforts to decrease its Cost of Goods to [***] by the [***] anniversary
of the First Commercial Sale of the Product in the Territory.

 

    	43

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(c)
“Cost of Goods” means, for Finished Product manufactured by VBL or a Third Party, VBL’s actual costs
of manufacturing, packaging, and testing such Product and amounts paid to a Third Party, calculated in accordance with the Accounting
Standards, consisting of: (a) the costs and expenses associated with components, such as raw materials, drugs and chemicals, encapsulation,
labeling and packaging materials and components, (b) any applicable net sales taxes, VAT, customs duties and similar import fees
or costs and freight actually paid by VBL, (c) direct production labor, (d) Third Party logistics fees and pass-through expenses,
and (e) fairly allocated manufacturing overhead. In the event that pursuant to paragraph (b) above, the Supply Price has been
set by reference to VBL’s Cost of Goods, then Licensee shall have the right to audit the calculation of VBL’s Cost
of Goods. Such audit shall be carried out in the same manner as the audit provisions of Section 8.11 which shall apply mutatis
mutandis to both Parties to facilitate such right of audit.

 

7.5.2
Invoice. Each delivery of Finished Product hereunder shall be accompanied by an invoice setting forth the Supply Price for
such shipment. Licensee will make payment against each invoice, within the earlier of (a) thirty (30) days after obtaining the
affirmative drug testing report at the destination port for the Product covered by a given invoice (provided, that Licensee shall
deliver a copy of such drug testing report in English to VBL within such thirty (30) day time period) or (b) sixty (60) days after
the Product arrives at the destination port.

 

7.6
Shipping and Delivery.

 

7.6.1
Delivery. Subject to the terms and conditions of this Agreement, VBL shall ship (or have shipped) to Licensee in accordance
with this Section 7.6 the quantity of the Finished Product specified in each accepted Purchase Order within ninety (90) days from
the Purchase Order Acceptance Date or otherwise as agreed to by the Parties. Notwithstanding anything to the contrary contained
herein, (i) VBL will notify Licensee of the anticipated FCA (Incoterms 2010) (VBL’s or its designee’s site) date of
shipment at least five (5) days prior to such FCA (Incoterms 2010) (an international airport close to VBL’s or its designee’s
site as agreed by the Parties) date, which FCA (Incoterms 2010) (VBL’s or its designee’s site) date may occur as many
as seven (7) days prior to the date that is ninety (90) days from the Purchase Order Acceptance Date, and such shipment shall
be deemed to have been shipped on a timely basis hereunder, and (ii) in order to allow for Finished Product Manufacturing variances,
VBL shall be entitled to ship quantities of Finished Product as much as five percent (5%) above or below the amount of the Finished
Product specified by Licensee in the applicable Purchase Order, and such shipment shall be deemed to have been shipped in satisfaction
of VBL’s obligations hereunder. Licensee shall purchase all such Finished Product so shipped. The Finished Product delivered
by VBL or its designee shall have at least the greater of (a) one and one half years of remaining shelf life or (b) remaining
shelf life equal to at least fifty percent (50%) of its total shelf life, upon arrival at the destination port in the Territory,
subject to delays caused by customs and other Governmental Authorities.

 

7.6.2
Shipment Terms. Finished Product shall be supplied to Licensee FCA (Incoterms 2010) (an international airport close to VBL’s
or its designee’s site as agreed by the Parties). Delivery shall occur, and title and risk of loss will pass to Licensee,
when the Product is shipped to Licensee’s carrier. Finished Product shall be shipped at Licensee’s expense via a carrier
identified by Licensee in the applicable Purchase Order; provided, that (i) such carrier shall be one that can transport and maintain
such Finished Product in accordance with Product Specifications as per Product storage requirements), and (ii) in the event that
Licensee fails to identify a carrier, VBL may choose a carrier at its own reasonable discretion, at Licensee’s expense.

 

    	44

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

7.6.3
Retention. Unless the Parties agree otherwise, VBL will maintain or cause to be maintained analytical samples of each Finished
Product in storage for a time period based upon VBL’s sample retention policy.

 

7.7
Quality and Compliance.

 

7.7.1
Quality Agreements. The Quality Agreements will set forth the Parties’ quality and compliance obligations with respect
to Manufacture of the Finished Product. VBL’s quality and compliance obligations and warranties with respect to Manufacture
of the Finished Product set forth in such Quality Agreements shall be at least as favorable to Licensee as are the quality and
compliance obligations and warranties that VBL receives pursuant to the quality agreement(s) that VBL enters into with its suppliers
and other manufacturers of the Product. In cases where Licensee is required to enter into quality agreement(s) directly with local
suppliers in the Territory for raw materials used in the Manufacture of the Finished Product, Licensee shall have the right and
authority to enter into such quality agreement(s), and VBL shall comply with the terms set forth therein in Manufacturing the
Finished Product. Licensee and VBL agree to comply with the requirements and provisions set forth in the Quality Agreements. The
Quality Agreements will set forth in greater detail many of the responsibilities and obligations set forth herein. In the event
of a conflict between the terms of the Quality Agreements and the terms of this Agreement, the terms of this Agreement shall prevail.
The Parties shall execute the Quality Agreements within ninety (90) days of the Effective Date, or such other time-frame as otherwise
agreed between the Parties.

 

7.7.2
Notice of Non-Conformance.

 

(a)
VBL shall supply to Licensee the applicable batch number for the Finished Product delivered as well as such other information
as the Parties may set forth in the Quality Agreement with respect to the Manufacture of the Product for all Finished Product
shipped to Licensee hereunder. Licensee shall promptly on receipt of each shipment of Finished Product hereunder inspect, or cause
to have inspected, each shipment of such Product for any damage, Defect (as defined below) or shortage, and cause to be tested
by the qualified drug testing institution at the destination port in the Territory of each shipment of such Product for any quality
issues, within a reasonable period of time and give VBL written notice of any such damaged, defective or short shipment or any
shipment of such Product with quality issues (a “Notice of Non-Conformance”). All testing shall be conducted
in accordance with the Product Specifications and the Quality Agreement. “Defect” and “Defective”
refer to Finished Product that fails to meet any of the representations and warranties set forth in Section 10.2(g) as of the
date of delivery, including for clarity, any Latent Defect (defined below).

 

(b)
Latent Defects shall be communicated to VBL, together with appropriate detail, via a Notice of Non-Conformance, without undue
delay after such Latent Defect is first discovered by Licensee (or Licensee otherwise is notified of such Latent Defect), but
in all cases within fifteen (15) days of the date on which such Latent Defect was first discovered by Licensee or was notified
to Licensee by the relevant Person discovering the defect, and thereafter such Latent Defect shall be handled as set forth in
the remainder of this Section 7.9 and/or the Quality Agreement, as applicable. For purposes of this Section 7.7.2(b), “Latent
Defects” shall mean those defects that could not be discovered by inspection or testing by Licensee or its designee
as described in Section 7.7.2(a). Notwithstanding the foregoing, Licensee must submit a Notice of Non-Conformance, if at all,
with respect to Finished Product no later than six (6) months from the date of delivery of such Finished Product.

 

    	45

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

7.7.3
Notification of Significant Quality Issues. As set forth in the Quality Agreements, the Parties shall notify each other of
the occurrence of a confirmed out-of-specification or out-of-trend (“OOS”) or out-of-trend (“OOT”)
result or major process deviation relating to the Product in the Territory. The Parties agree to consult on all quality decisions
regarding any OOS or OOT result or major process deviations involving the Product, and/or Finished Product that is intended for
the Territory.

 

7.7.4
Audits. Licensee shall have access to VBL’s or its Third Party manufacturer’s Facilities associated with the Product
or Finished Product at a mutually agreeable time for the sole purpose of auditing the Facilities for operational compliance with
cGMP and GMP by any Regulatory Authority in the Territory. The right to audit also includes any testing Facility related to the
Product or Finished Product; provided, that, to the extent a Third Party’s Facilities are the subject of an audit pursuant
to this Section 7.7.4, Licensee shall (a) perform such audit in conjunction with VBL (and any other licensees of VBL desiring
to so audit), (b) bear any costs charged by such Third Party associated with such audit, and (c) abide by any applicable terms
and conditions regarding such audit as VBL’s agreement with such Third Party may provide (including any limitations on the
number of such audits as may be conducted in a given a time-frame). For clarity, VBL shall have the right to accompany Licensee
on any such audit of a Third Party’s Facility. The audit rights described in this Section 7.7.4 are without limitation of
other audit rights described elsewhere in this Agreement. The audit rights described herein may be exercised by Licensee only
one time each Calendar Year. Notwithstanding anything in this Section 7.7.4 to the contrary, Licensee shall only have the right
to audit a Third Party to the extent that VBL has such right and such Third Party consents to Licensee accompanying VBL on such
audit.

 

7.8
Disputes and Remedies.

 

7.8.1
Disputes. If Licensee timely delivers a Notice of Non-Conformance in respect of all or any part of a shipment of the Finished
Product and VBL does not agree with Licensee’s determination that the Finished Product fails to meet the Product Specifications
(or there is a short shipment), the Parties shall in good faith attempt to resolve such dispute. VBL and Licensee shall have thirty
(30) days, unless otherwise agreed in writing by the Parties, from the date of VBL’s receipt of a Notice of Non-Conformance
to resolve such dispute regarding whether all or any part of such shipment of Finished Product was Manufactured in conformance
with the Product Specifications (or there is otherwise a short shipment). In the event of such a dispute, Licensee shall retain
samples of such Finished Product and make such samples available to VBL at VBL’s reasonable request. If the dispute regarding
whether all or any part of a shipment of Finished Product rejected by Licensee was Manufactured in conformance with the Product
Specifications (or there is a short shipment) is not resolved in such thirty (30) day period, then the Parties shall submit the
samples of such Finished Product to an agreed-upon drug testing institution for re-testing. The results of the drug testing qualified
institution’s re-testing shall be final and binding on the Parties, and if such Finished Product is determined to meet the
Product Specifications (or is otherwise determined not to be a short shipment, as applicable), then Licensee shall pay for the
costs of such drug re-testing; otherwise VBL shall pay for such costs.

 

    	46

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

7.8.2
Remedies. In the event any shipment of Finished Product is timely rejected pursuant to Section 7.7.2 as a result of such Finished
Product being Defective (including for being Latently Defective) or a short shipment, as applicable, then (i) Licensee shall,
at the direction of VBL, either (a) destroy such rejected Finished Product at VBL’s reasonable expense (in accordance with
Applicable Laws) or (b) return such Finished Product to VBL, at a location designated by VBL and at VBL’s reasonable expense,
and (ii) VBL, at no expense to Licensee, shall (in VBL’s sole discretion) either (a) use its best efforts to replace such
non-conforming Finished Product or short shipment, or (b) give Licensee a credit in an amount equal to the amount paid or payable
by Licensee with respect to such rejected Finished Product or short shipment. In the event that any shipment of Finished Product
is not timely rejected or is rejected for any reason other than being Defective, subject to Sections 7.10 and 11.1, VBL shall
have no liability to Licensee in connection therewith, and Licensee shall, at its sole cost, destroy such rejected Finished Product
in compliance with Applicable Laws. SUBJECT TO SECTION 11.1, VBL’s LIABILITY IN RESPECT OF ANY REJECTION (INCLUDING ANY
SHORT SHIPMENT) SHALL BE LIMITED TO THE REMEDIES PROVIDED IN THIS SECTION 7.8.2 AND SECTION 7.10. For clarity, a shipment of Finished
Product that is a short shipment shall not be subject to return by Licensee, but all remedies (other than for such short shipment
itself) set forth in this Section 7.8.2 and Section 7.10 shall apply to the Finished Products delivered under such short shipment.

 

7.9
Shortages. In the event that VBL anticipates the materials and/or Manufacturing capacity of VBL or its Third Party manufacturer
required to Manufacture and deliver the Finished Product to Licensee is to be in short supply, VBL shall promptly notify Licensee
of such shortage and the Parties shall promptly meet to discuss the shortage. VBL shall provide a written plan of action stating
in reasonable detail the identifiable cause of the shortage and proposed measures to remedy the shortage and the date such shortage
is expected to end. Within thirty (30) days after the occurrence of any shortage event, VBL shall allocate its inventory of the
Product, if any, among Licensee and VBL, and its Affiliates, licensees and/or business partners for the Product world-wide, on
a pro-rata basis, based upon market share and order volumes for the prior twelve (12) month period until the Purchase Orders
from Licensee can be adequately fulfilled. Upon the occurrence of a shortage event as described above, VBL shall, for the limited
purpose of complying with its inventory allocation obligations set forth above, provide Licensee with reports setting forth its
annual world-wide sales of the Product within 60 (sixty) days after the end of each Calendar Year. VBL shall use its Commercially
Reasonable Efforts to minimize the duration of any shortage. Licensee shall maintain reasonable safety stock of Finished Product
based on the fifty percent (50%) binding portion of the subsequent Calendar Quarter of the most recent Forecast.

 

7.10
Major Supply Failure. In addition to the remedies set forth in Section 7.11, in the event VBL materially and repeatedly fails
to satisfy its supply obligations under this Agreement, including by materially and repeatedly (a) delivering Defective Finished
Products, (b) delivering short shipments of Finished Products, (c) failing to deliver Finished Products by the delivery dates
set forth in the applicable Purchase Order, or (d) failing to remedy a shortage event set forth in Section 7.11 (“Major
Supply Failure”), VBL hereby agrees that Licensee may manufacture or have manufactured through a Third Party, or purchase
directly from VBL’s third-party supplier, Licensee’s requirements of Product. VBL shall provide all reasonable cooperation
to assist Licensee in obtaining an alternative source of Product in the event of a Major Supply Failure upon Licensee’s
request, including by introducing Licensee to its third-party supplier and conducting a technology transfer, provided that any
such technology transfer will be subject to approval by the applicable Regulatory Authority in Israel. In connection therewith,
VBL shall bear all cost and expenses incurred by Licensee for such arrangement or assistance, and the Parties shall discuss in
good faith and agree upon adjustments to the royalty and milestone payments set forth in ARTICLE 8 for the remainder of the Term.

 

    	47

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

7.11
Product Specification and Manufacturing Changes. Neither Party shall make any Product Specification changes as it pertains
to the Product to be supplied in the Field in the Territory without prior written consent of the other Party, such consent not
to be unreasonably withheld. In the event of such consent, the Parties shall enter into a written supplemental agreement with
respect to the division of responsibilities for obtaining Regulatory Approvals of such changes and the cost to be assumed by each
Party in connection therewith. VBL shall (a) notify Licensee in writing twelve (12) months before it (i) changes the Facility
used to Manufacture the supply of the Product in the Field in the Territory and any Product Specification for the Product in the
Field in the Territory applicable to the Regulatory Materials filed with PMDA, or (ii) makes any changes within the Facility for
the Product in the Field in the Territory applicable to the Regulatory Materials filed with PMDA, and (b) not proceed with any
such change until Licensee provides confirmation of PMDA’s approval for such change. Each Party shall provide the other
Party with all necessary documentation and information required for preparing the applicable Regulatory Materials with PMDA; provided,
that all applicable Regulatory Materials shall be prepared and filed by the Parties in accordance with the provisions of ARTICLE
5 and each Party shall bear its respective costs and expenses incurred in connection therewith. Notwithstanding the foregoing
and the forecasting and ordering provisions under Section 7.4, VBL shall use best efforts to ensure the sufficient supply of Product
to Licensee during the transitional period for the changes set forth in this Section 7.11. VBL and Licensee shall discuss means
to ensure supply throughout this transition period, including VBL preparing and holding a safety stock of Product at its site
to mitigate any supply shortages that may occur as a result of such changes. For clarity, changes made with respect to the Facilities
or other sites that are applicable to the supply of Product outside the Field or outside the Territory, or otherwise not applicable
to the Regulatory Materials filed with PMDA with respect to the supply of the Product in the Field in the Territory, will not
be subject to this Section 7.11.

 

7.12
Termination of Supply Obligations. Notwithstanding anything to the contrary contained herein, the obligations of VBL under
this ARTICLE 7, including the obligations to Manufacture and supply Finished Product, to Licensee hereunder, and Licensee’s
obligations to purchase solely from VBL, shall continue during the Royalty Term and, subject to the agreement set forth below
in this paragraph, shall continue after the end of the Royalty Term, upon reasonable terms and conditions to be agreed between
the Parties. In the event that Licensee desires to continue Commercializing the Product, and VBL is able to continue supplying
the Product, following the expiration of the Royalty Term, the Parties shall, at least twelve (12) months before the expiration
of the Royalty Term, negotiate in good faith and execute a distinct manufacturing and supply agreement with the terms and conditions
upon which VBL continues to Manufacture and supply, and Licensee continues to purchase, requirements of the Finished Product,
as applicable, from VBL.

 

    	48

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

ARTICLE
8

PAYMENTS

 

8.1
Upfront Payment. In consideration of the right to Develop and Commercialize the Product in the Territory subject to the terms
of this Agreement, on the Effective Date, Licensee shall pay to VBL an upfront amount equal to fifteen million Dollars ($15,000,000)
(the “Upfront Payment”) by wire transfer of immediately available funds into an account designated in writing
by VBL. The Upfront Payment shall be nonrefundable and noncreditable against any other payments due hereunder.

 

8.2
Milestone Payments. In consideration of the right to Develop and Commercialize the Product in the Territory subject to the
terms of this Agreement, Licensee shall pay to VBL the milestone payments described in this Section 8.2 following achievement
(first occurrence) during the Royalty Term of the corresponding milestone event. A Party shall promptly notify the other Party
in writing of, but in no event later than ten (10) days after, the achievement (first occurrence) of each such milestone event
(each, a “Milestone Notification Notice”) achieved by it. Licensee shall pay the applicable milestone payment
relating to regulatory milestones by wire transfer of immediately available funds into an account designated by VBL within fifteen
(15) Business Days after the date of the Milestone Notification Notice; provided, however, that in no event shall a failure to
deliver a Milestone Notification Notice relieve Licensee of its obligation to pay VBL the milestone payments described in this
Section 8.2. Licensee shall pay milestone payments for sales-based milestones within 90 days after the end of the Calendar Year
in which a sales-based milestone is achieved. If multiple sales milestones are achieved in the same Calendar Year they will be
paid at such time. Each such milestone payment shall be payable only once regardless of how many times the milestone event is
achieved. Each such milestone payment is nonrefundable and noncreditable against any other payments due hereunder, except as set
forth below. With respect to Sales Based Milestone Payments set forth below, Licensee may deduct, one time only with respect to
each applicable deduction amount, any amount paid by Licensee to VBL under Section 8.3.2 below on Sublicense Income earned by
Licensee from Sublicensees on account of the achievement of specified levels of sales of Product in the Territory, which deduction
shall be applied to any subsequent Sales Based Milestone Payment to be made by Licensee to VBL hereunder. With respect to Regulatory
Milestone Payments set forth below, Licensee may deduct, one time only with respect to each applicable deduction amount, any amount
paid by Licensee to VBL under Section 8.3.2 below on Sublicense Income earned by Licensee from Sublicensees on account of the
achievement of a regulatory milestone in the Territory; provided that such deductions shall be on an indication-by-indication
basis, so that Licensee may only deduct from a Regulatory Milestone Payment owed to VBL relating to a particular indication, Sublicense
Income Payments previously made to VBL on account of Sublicense Income earned by Licensee for the achievement of a regulatory
milestone relating to the same indication (including milestones for pre-commercialization activities, [***]).

 

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

 

By
way of illustration of the above calculations:

 

		●	[***]
	 	 	 
		●	[***]

 

    	49

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

		●	[***]

 

8.3
Royalty Payments; Sublicense Income.

 

8.3.1
Royalty Payments. As further consideration for the rights granted to Licensee under this Agreement, with respect to Net Sales
during the Royalty Term, Licensee shall pay to VBL tiered payments (“Royalty Payments”) at the following rates
[***] based on aggregate annual
Net Sales of Product in the Territory for all or any portion of the Calendar Year falling within the Royalty Term for such Product:

 

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

 

    	50

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

[***]

 

8.3.2
Sublicense Income. In addition to other amounts due under this Section 8.3, subject to Section 8.2, Licensee will pay VBL
[***] of all Sublicense Income received during a given Calendar Quarter (“Sublicense
Income Payment”).

 

8.4
Royalty Stacking. In the event that Licensee owes a royalty for the Development or Commercialization (including sale) of the
Products in the Territory under any agreement with a third party (excluding any Affiliates or VBL) (a “Third Party License”),
then [***] percent ([***]%) of such any royalty due under such Third Party License shall be creditable against any
royalty to be paid by Licensee to VBL hereunder, provided that in no event shall any royalty to be paid hereunder be reduced by
more than [***] percent ([***]%). For the avoidance of doubt, this Section 8.4 shall be in addition to, and shall
not limit or disturb, any remedy that Licensee may have pursuant to a breach of any provision of this Agreement by VBL.

 

8.5
Royalty Reports and Payment Procedures. Licensee shall calculate all (i) Royalty Payments with respect to Net Sales, and (b)
Sublicense Income, payable to VBL pursuant to Section 8.3 at the end of each Calendar Quarter, which amounts shall be converted
to Dollars at such time in accordance with Section 8.7. Licensee shall provide a written estimate of Sublicense Income received
and Net Sales during the just ended Calendar Quarter within five (5) days of the end of such Calendar Quarter. Thereafter, Licensee
shall pay to VBL the Royalty Payment due for Net Sales, and Sublicense Income Payment due for Sublicense Income, during a given
Calendar Quarter within thirty (30) days following the end of such Calendar Quarter. Each Royalty Payment and Sublicense Income
Payment due to VBL shall be accompanied by (i) a statement of the amount of gross sales of the Product in the Territory, and gross
Sublicense Income received, during the applicable Calendar Quarter (such amounts expressed in local currency and in Dollars converted
at the relevant time in accordance with Section 8.6), (ii) an itemized calculation of Net Sales in the Territory, showing each
deduction provided for in the definition of “Net Sales” during such Calendar Quarter, and (iii) a calculation of the
amount of the Royalty Payment due on such Net Sales, and the Sublicense Income Payment due on such Sublicense Income, for such
Calendar Quarter. Without limiting the generality of the foregoing, Licensee shall require its Affiliates and Sublicensees (if
any) to account for its Net Sales and to provide such reports with respect thereto as if such sales were made by Licensee.

 

8.6
Taxes and Withholding.

 

8.6.1
VAT. The Parties agree to cooperate with one another and use reasonable efforts to ensure that value added tax or similar
payment (“VAT”) in respect of any payments made by Licensee to VBL under this Agreement does not represent
an unnecessary cost in respect of payments made under this Agreement. For purposes of clarity, all sums payable under this Agreement
shall be exclusive of VAT. In the event that any VAT is owing in any jurisdiction in respect of any such payment, Licensee shall
pay such VAT, and (i) if such VAT is owing as a result of any action by Licensee, including any assignment or sublicense (including
assignment to, or payment hereunder by, another Licensee-related entity or Affiliate), or any failure on the part of Licensee
or its Affiliates to comply with applicable tax laws or filing or record retention requirements, that has the effect of modifying
the tax treatment of the Parties hereto, then the payment in respect of which such VAT is owing shall be made without deduction
for or on account of such VAT to ensure that VBL receives a sum equal to the sum which it would have received had such VAT not
been due or (ii) otherwise, such payment shall be made after deduction of such VAT. For the sake of clarity, any increase in payments
to VBL under this Section 8.5 shall reflect only the incremental increase in VAT directly resulting from clause (i) above. In
the event that any VAT is owing in any jurisdiction in respect of any such payment, VBL will provide to Licensee tax invoices
showing the correct amount of VAT in respect of such payments hereunder.

 

    	51

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

8.7
Withholding Tax. If Licensee is required to make a payment to VBL that is subject to withholding tax under the Applicable
Laws, such amounts shall be borne by Licensee, and not deducted from the payments otherwise due to VBL hereunder.

 

8.7.1
Tax Cooperation. To the extent Licensee is required to deduct and withhold taxes on any payments to VBL, Licensee shall pay
the amounts of such taxes to the proper Governmental Authority in a timely manner and promptly transmit to VBL an official tax
certificate or other evidence of such withholding sufficient to enable VBL to claim such payments of taxes. VBL shall provide
to Licensee any tax forms that may be reasonably necessary in order for Licensee not to withhold tax or to withhold tax at a reduced
rate under an applicable bilateral income tax treaty. VBL shall use reasonable efforts to provide any such tax forms to Licensee
at least thirty (30) days prior to the due date for any payments for which VBL desires that Licensee apply a reduced withholding
rate. Each Party shall provide the other with reasonable assistance to enable the recovery, as permitted by Applicable Laws, of
withholding taxes, VAT, or similar obligations resulting from payments made under this Agreement, such recovery to be for the
benefit of the Party bearing such withholding tax or VAT.

 

8.7.2
Indirect Tax. All payments to be made by Licensee to VBL pursuant to the terms of this Agreement are stated exclusive of Indirect
Taxes. If any Indirect Taxes are chargeable in respect of such payments, Licensee shall pay such Indirect Taxes.

 

8.8
Currency Conversion. All payments hereunder shall be made in Dollars. For the purpose of calculating any sums due under,
or otherwise reimbursable pursuant to, this Agreement (including the calculation of Net Sales expressed in currencies other than
Dollars), any amount expressed in a foreign currency shall be converted into Dollars based on the applicable exchange rate quoted
on “www.oanda.com” for the last day of the relevant Calendar Quarter or the date that a milestone is achieved.

 

8.9
General Payment Procedures. Unless otherwise expressly payable in certain time frames as provided in this Agreement (including
Section 7.5), the receiving Party shall invoice the paying Party for all amounts due to such receiving Party under this Agreement,
and such payments shall be made within thirty (30) days following the receipt by the paying Party of an invoice from the receiving
Party specifying the amount due.

 

8.10
Late Payments. Any amount required to be paid by a Party hereunder which is not paid within five (5) Business Days after the
date due shall bear interest at a rate equal to the thirty (30) day Dollar LIBOR rate effective for the date that payment was
first due as reported by The Wall Street Journal, eastern edition, plus two percent (2%), or the maximum rate permitted under
Applicable Law. Such interest shall be computed on the basis of a year of three hundred sixty (360) days for the actual number
of days’ payment is delinquent. Interest charged and paid with respect to any late payments will not limit any other remedies
that may be available to a Party.

 

    	52

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

8.11
Financial Records and Audit. Licensee (and its Affiliates and Sublicensees) shall keep full, true and accurate records and
books of account containing all particulars that may be necessary for the purpose of confirming the accuracy of, and calculating,
as applicable, all Royalty Payments, Sublicense Income Payments and other amounts payable to VBL hereunder (including records
of Net Sales and Sublicense Income), for a minimum period of five (5) years or such longer period as required by Applicable Laws.
VBL shall have a right to request an audit of Licensee (and its Affiliates) by an independent, internationally recognized accounting
firm in order to confirm the accuracy of the foregoing (a “Financial Audit”). Upon the written request by VBL to Licensee
to conduct a Financial Audit, VBL shall have the right to engage an independent, internationally recognized accounting firm to
perform a review as is reasonably necessary to enable such accounting firm to calculate or otherwise confirm the accuracy of any
of the foregoing for the Calendar Year(s) requested by VBL; provided, that (i) such accountants shall be given access to, and
shall be permitted to examine and copy such books and records of Licensee (or its Affiliates) upon ten (10) Business Days’
prior written notice to Licensee, (ii) prior to any such examination taking place, such accountants shall enter into a confidentiality
agreement with Licensee (or its Affiliates) reasonably acceptable to Licensee (or its Affiliates) in order to keep all information
and data contained in such books and records strictly confidential and shall not disclose such information or copies of such books
and records to any third person including VBL, but shall only use the same for the purpose of the reviews and/or calculations
which they need to perform in order to determine any amounts being reviewed, and (iii) such accountants shall use reasonable efforts
to minimize any disruption to Licensee’s business. Licensee shall make personnel reasonably available during regular business
hours to answer queries on all such books and records required for the purpose of the Financial Audit. The accountants shall deliver
a copy of their findings to each of the Parties within twenty (20) Business Days of the completion of the review, and, in the
absence of fraud or manifest error, the findings of such accountant shall be final and binding on each of the Parties. Any underpayments
by Licensee shall be paid to VBL within twenty (20) Business Days of notification of the results of such inspection. Any overpayments
made by Licensee shall be refunded by VBL within twenty (20) Business Days of notification of the results of such inspection.
The cost of the accountants shall be the responsibility of VBL unless the accountants’ calculation shows that the actual
royalties payable, Net Sales, Sublicense Income and/or any other applicable amount audited hereunder to be different, by more
than ten percent (10%), than the amounts as previously calculated and reported by Licensee, in which case Licensee will be responsible
for such costs. In addition, with respect to Sublicensees, VBL shall have the right to participate in Licensee’s audits
of Sublicensees for the purpose of confirming the accuracy of the Sublicense Income Payments and other amounts payable by Sublicensees
to Licensee under the sublicenses granted by Licensee hereunder and for the purpose of determining the accuracy of Licensee’s
Net Sales calculation and reports; provided that VBL complies with all applicable terms and conditions agreed between Licensee
and Sublicensee regarding such audits. The audit rights described in this Section 8.11 are without limitation of other audit rights
described elsewhere in this Agreement.

 

    	53

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

ARTICLE
9

INTELLECTUAL
PROPERTY MATTERS

 

9.1
Ownership of Intellectual Property.

 

9.1.1
General. Except as expressly set forth in this Agreement or otherwise mutually agreed by the Parties, as between the Parties,
(a) VBL shall solely own all VBL Technology, and it alone shall have the right to file, prosecute and control all applications
for VBL Patents within and outside of the Territory, (b) Licensee shall solely own all Licensee Technology, and it alone shall
have the right to file, prosecute and control all applications for Licensee Patents within and outside of the Territory, and (c)
VBL and Licensee shall jointly own all Joint Inventions (with each Party having rights to use and license all rights under such
Joint Inventions without the duty to account to or obtain consent from the other Party), and each Party hereby assigns and agrees
to assign to the other Party, an undivided, one-half of its full right, title and interest in and to such Joint Inventions. Each
Party shall promptly disclose to the other Party each material item of VBL Inventions, Licensee Inventions and Joint Inventions,
as applicable, made by it during the Term. The determination of inventorship for such Inventions shall be made in accordance with
Applicable Laws relating to inventorship set forth in the patent Applicable Laws of the United States (Title 35, United States
Code). Notwithstanding the foregoing, Licensee shall not, and shall use Commercially Reasonable Efforts to cause its Sublicensees
not to, grant any license or other right with respect to its interest in the Joint Inventions relating to the Product to any Third
Party without the prior written consent of VBL.

 

9.1.2
Employees. Each Party will require all of its and its Affiliates’ employees to assign all Inventions that are developed,
made or conceived by such employees according to the ownership principles described in Section 9.1.1 free and clear of all liens,
encumbrances, charges, security interests, mortgages or other similar restrictions. Each Party will also use its Commercially
Reasonable Efforts to require any agents or independent contractors performing an activity pursuant to this Agreement to assign
all Inventions that are developed, made or conceived by such agents or independent contractors to VBL and/or Licensee according
to the ownership principles described in Section 9.1.1 free and clear of all liens, encumbrances, charges, security interests,
mortgages or other similar restrictions.

 

9.2
Patent Filings, Prosecution and Maintenance.

 

9.2.1
VBL Patents and Collaboration Patents.

 

(a)
                                         Subject to, and without limiting Licensee’s rights under, Section 9.3 of this Agreement,
                                         VBL shall have the first right to prepare, file, prosecute and maintain all VBL Patents
                                         and Patents covering Joint Inventions (“Collaboration Patents”), at
                                         its own cost and expense. VBL shall keep Licensee informed of the status of VBL Patents
                                         and Collaboration Patents and will provide Licensee with copies of all substantive documentation
                                         submitted to, or received from, the patent offices in connection therewith. With respect
                                         to the original submission of a national application that VBL is required to or otherwise
                                         intends to submit to a patent office in the Territory with respect to an VBL Patent or
                                         Cooperation Patent, VBL shall provide a draft of such submission to Licensee at least
                                         thirty (30) days prior to the deadline for, or the intended filing date of, such submission,
                                         whichever is earlier and Licensee shall have the right to review and comment upon any
                                         such submission by VBL to a patent office in the Territory, and will provide such comments
                                         within fourteen (14) days after receiving such submission (provided, that if no comments
                                         are received within such fourteen (14) day period, then VBL may proceed with such submission).
                                         With respect to subsequent substantive submissions with respect to each such national
                                         application, VBL will use reasonable efforts to comply with such thirty (30) day standard,
                                         but if that is not reasonably possible VBL will provide a draft to Licensee with as much
                                         lead time as is reasonably possible under the circumstances. VBL shall consider in good
                                         faith any suggestions or recommendations of Licensee concerning the preparation, filing,
                                         prosecution and maintenance thereof. If, during the Term, VBL (i) intends to allow any
                                         VBL Patent to which Licensee has a license under this Agreement or any Collaboration
                                         Patent to expire or intends to otherwise abandon any such VBL Patent or Collaboration
                                         Patent, or (ii) decides not to prepare or file patent applications covering Joint Inventions
                                         or VBL Inventions in the Territory to which Licensee would otherwise have a license under
                                         this Agreement, VBL shall notify Licensee of such intention or decision at least thirty
                                         (30) days (or as soon as possible if less than thirty (30) days) prior to any filing
                                         or payment due date, or any other date that requires action, in connection with such
                                         VBL Patent, VBL Inventions, Joint Invention or Collaboration Patent, and Licensee shall
                                         thereupon have the right, but not the obligation, to assume responsibility for the preparation,
                                         filing, prosecution or maintenance thereof at its sole cost and expense, in the name
                                         of Licensee.

 

    	54

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

9.2.2
Licensee Patents.

 

(a)
Licensee shall have the first right to prepare, file, prosecute and maintain all Licensee Patents, at its own cost and expense.
Licensee shall keep VBL informed of the status of Licensee Patents and will provide VBL with copies of all substantive documentation
submitted to, or received from, the patent offices in connection therewith. With respect to the original submission of a national
application that Licensee is required to or otherwise intends to submit to a patent office with respect to a Licensee Patent,
Licensee shall provide a draft of such submission to VBL at least thirty (30) days prior to the deadline for, or the intended
filing date of, such submission, whichever is earlier and VBL shall have the right to review and comment upon any such submission
by Licensee to a patent office in the Territory, and will provide such comments within fourteen (14) days after receiving such
submission (provided, that if no comments are received within such fourteen (14) day period, then Licensee may proceed with such
submission). With respect to subsequent substantive submissions with respect to each such national application, Licensee will
use reasonable efforts to comply with such thirty (30) day standard, but if that is not reasonably possible Licensee will provide
a draft to VBL with as much lead time as is reasonably possible under the circumstances. Licensee shall consider in good faith
any suggestions or recommendations of VBL concerning the preparation, filing, prosecution and maintenance thereof.

 

(b)
If, during the Term, Licensee (a) intends to allow any Licensee Patent to which VBL has a license under this Agreement to expire
or intends to otherwise abandon any such Licensee Patent, or (b) decides not to prepare or file patent applications covering Licensee
Know-How or Licensee Inventions to which VBL would otherwise have a license under this Agreement, Licensee shall notify VBL of
such intention or decision at least thirty (30) days (or as soon as possible if less than thirty (30) days) prior to any filing
or payment due date, or any other date that requires action, in connection with such Licensee Patent or Licensee Inventions, and
VBL shall thereupon have the right, but not the obligation, to assume responsibility for the preparation, filing, prosecution
or maintenance thereof at its sole cost and expense, in the name of VBL.

 

    	55

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

9.2.3
Cooperation. The Parties agree to reasonably cooperate in the preparation, filing, prosecution and maintenance of all Patents
under this Section 9.2, including obtaining and executing necessary powers of attorney and assignments by the named inventors,
providing relevant technical reports to the filing Party concerning the Invention disclosed in such Patent, obtaining execution
of such other documents which are needed in the filing and prosecution of such Patent, and, as requested by a Party, updating
each other regarding the status of such Patent, and shall cooperate with the other Party so far as reasonably necessary with respect
to furnishing all information and data in its possession reasonably necessary to obtain or maintain such Patents.

 

9.2.4
Patent Expenses. Any expenses incurred by a Party in connection with the preparation, filing, prosecution and maintenance
of any Patents, as applicable, shall be borne by the Party incurring such expenses.

 

9.3
Defense and Enforcement of Patents.

 

9.3.1
Infringement of Third Party Patents. Each of the Parties shall promptly, but in any event no later than ten (10) days after
receipt of notice thereof, notify the other Party in writing in the event of any claims by a Third Party of alleged patent infringement
by Licensee or VBL or any of their respective Affiliates or sublicensees (in the case of VBL) or Sublicensees (in the case of
Licensee) with respect to the research, development, manufacture, use, sale, offer for sale or importation of a Product (each,
an “Infringement Claim”). With respect to any Infringement Claim, VBL shall assume control of the defense of
such Infringement Claim at its sole cost and expense and shall keep Licensee informed of the status thereof. Licensee, upon reasonable
request of VBL, agrees to use Commercially Reasonable Efforts to cooperate with VBL in any such proceedings at VBL’s expense
(including, if legally required, joining as a party to such proceedings at VBL’s expense). Licensee will have the right
to consult with VBL concerning such Infringement Claim and to participate in and be represented by independent counsel of its
choice in any litigation in which Licensee is a party at its own expense. VBL shall have the exclusive right to settle any Infringement
Claim without the consent of Licensee, as long as such settlement does not have a material adverse impact on Licensee (in which
case the consent of Licensee shall be required). For purposes of this Section 9.3.1, any settlement that would involve the waiver
or loss of rights (including the rights to receive payments) of Licensee hereunder shall be deemed a material adverse impact and
shall require the consent of Licensee, which consent shall not be unreasonably withheld. For the avoidance of doubt, any consent
from Licensee for such settlement shall not limit Licensee’s right to indemnification under ARTICLE 11 or any other remedies
that Licensee may have at law or in equity.

 

9.3.2
Prosecution of Infringers.

 

(a)
Notice. If either Party (i) receives notice of any patent nullity actions, any declaratory judgment actions or any alleged
or threatened infringement of patents or patent applications or misappropriation of intellectual property in the Territory comprising
the (w) Joint Inventions or Collaboration Patents, (x) VBL Patents, VBL Inventions or VBL Know-How or (y) Licensee Patents, Licensee
Inventions or Licensee Know-How, or (ii) learns that a Third Party is materially infringing or allegedly infringing any Patent
within the VBL Patents, Licensee Patents or Collaboration Patents or if any Third Party claims that any such Patent is invalid
or unenforceable, in each case, with respect to the Territory, it shall promptly notify the other Party thereof, including providing
evidence of infringement or the claim of invalidity or unenforceability reasonably available to such Party.

 

    	56

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(b)
Enforcement of Patents.

 

(i)
As between VBL and Licensee, (x) VBL shall have the first right (but not the obligation) to take the appropriate steps to enforce
or defend any Patent within the VBL Patents and any Collaboration Patents against infringement by a Third Party that is conducting
the manufacture, sale, use, offer for sale or import of any pharmaceutical product, whether inside or outside of the Territory,
and (y) Licensee shall have the sole and primary right (but not the obligation) to take the appropriate steps to enforce or defend
any Patent within the Licensee Patents in or outside of the Territory against infringement by a Third Party that is conducting
the manufacture, sale, use, offer for sale or import of any pharmaceutical product in the Territory. The enforcing Party may take
steps including the initiation, prosecution and control of any suit, proceeding or other legal action by counsel of its own choice
and shall bear the costs of such enforcement or defense, as applicable. Notwithstanding the foregoing, the other Party will have
the right, at its own expense, to be represented in any such action by counsel of its own choice.

 

(ii)
If, pursuant to Section 9.3.2(b)(i), VBL fails to institute such litigation or otherwise take steps to remedy the infringement
of an VBL Patent or a Collaboration Patent within one hundred eighty (180) days of the date one Party has provided notice to the
other Party pursuant to Section 9.3.2(a) of such infringement or claim, then Licensee shall have the right (but not the obligation),
at its own expense, to bring any such suit, action or proceeding by counsel of its own choice and VBL will have the right, at
its own expense, to be represented in any such action by counsel of its own choice. Notwithstanding anything to the contrary contained
herein, in no event shall Licensee have any right to bring any suit, action or proceeding with respect to any matter involving
infringement of an VBL Manufacturing Patent, or a Patent outside the Territory or outside the Field.

 

(c)
Cooperation; Damages.

 

(i)
If one Party brings any suit, action or proceeding under Section 9.3.2(b), the other Party agrees to be joined as party plaintiff
if necessary to prosecute the suit, action or proceeding and to give the first Party reasonable authority to file and prosecute
the suit, action or proceeding (including, in the case of any suit, action or proceeding by Licensee involving the VBL Patents,
by registering the rights granted by VBL to Licensee hereunder as an exclusive license with applicable Governmental Authority);
provided, however, that neither Party will be required to transfer any right, title or interest in or to any property to the other
Party or any other party to confer standing on a Party hereunder.

 

(ii)
The Party not pursuing the suit, action or proceeding hereunder will provide reasonable assistance to the other Party, including
by providing access to relevant documents and other evidence and making its employees available, subject to the other Party’s
reimbursement of any Out-of-Pocket Costs incurred by the non-enforcing or defending Party in providing such assistance.

 

    	57

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(iii)
Neither Party shall, without the prior written consent of the other Party (in its sole discretion), enter into any compromise
or settlement relating to any claim, suit or action that it brought under Section 9.3.2 involving any applicable Patent that admits
the invalidity or unenforceability of such Patent, or requires the other Party to pay any sum of money, or otherwise adversely
affects the rights of the other Party with respect to such Patents, the Product or the other Party’s rights hereunder (including
the rights to receive payments).

 

(iv)
Any settlements, damages or other monetary awards (a “Recovery”) recovered pursuant to a suit, action or proceeding
brought pursuant to Section 9.3.2(b) will be allocated first to the costs and expenses of the Party taking such action, and second,
to the costs and expenses (if any) of the other Party, with any remaining amounts (if any) to be allocated as follows: (i) to
the extent that such Recovery is a payment for lost sales of the Product in the Field in the Territory, (a) if Licensee is the
Party taking such action, then Licensee shall pay a Royalty Payment to VBL pursuant to Section 8.3 with respect to the imputed
loss in Net Sales out of any such Recovery or (b) if VBL is the Party taking such action, then any such Recovery shall be shared
equally by VBL and Licensee and (ii) all remaining Recoveries shall be payable to the Party taking such action to the extent such
remaining Recoveries relate solely to the Product in the Field in the Territory (and, for purposes of clarity, all remaining Recoveries
related to the Product outside the Field or outside the Territory shall be payable to VBL).

 

9.4
Patent Term Extensions. Upon Licensee’s request, VBL shall seek, in Licensee’s name if so required, Patent Term
Extensions (including any supplemental protection certificates and the like available under Applicable Laws) in the Territory
in relation to the VBL Patents (including Collaboration Patents). Licensee and VBL shall cooperate in connection with all such
activities. VBL, its agents and attorneys will give due consideration to all suggestions and comments of Licensee regarding any
such activities.

 

9.5
Patent Marking. Licensee shall mark the Product marketed and sold by Licensee (or its Affiliate, wholesaler or distributor)
hereunder with appropriate patent numbers or indicia, as long as it is required by Applicable Laws.

 

9.6
Patent Challenge. VBL will be permitted to terminate this Agreement upon written notice to Licensee, effective upon receipt,
if Licensee (or its Affiliates), directly or indirectly, initiate or request an interference or opposition proceeding with respect
to, or make, file or maintain any claim, demand, lawsuit or cause of action to challenge the validity or enforceability of, or,
to the extent applicable, oppose any extension of, or the grant of a supplementary protection certificate with respect to, any
VBL Patent or VBL Manufacturing.

 

ARTICLE
10

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

10.1
Mutual Representations and Warranties. Each Party hereby represents, warrants, and covenants (as applicable) to the other
Party as follows, as of the Effective Date:

 

    	58

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(a)
It has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and the
execution, delivery and performance of this Agreement has been duly and validly authorized and approved by proper corporate action
on the part of such Party. Assuming due authorization, execution and delivery on the part of the other Party, this Agreement constitutes
a legal, valid and binding obligation of such Party, enforceable against such Party, in accordance with its terms.

 

(b)
The execution and delivery of this Agreement by it and the performance by it contemplated hereunder will not violate any Applicable
Laws, and, to its knowledge, it is and will continue to be during the Term in compliance in all material respects with all material
Applicable Laws applicable to the subject matter of this Agreement.

 

(c)
It is not a party to any agreement or arrangement with any Third Party or under any obligation or restriction (including any outstanding
order, judgment or decree of any court or administrative agency) which in any way limits or conflicts with its ability to fulfill
any of its obligations under this Agreement.

 

(d)
Except with respect to Regulatory Approvals for the Development, Manufacturing or Commercialization of the Product or as otherwise
described in this Agreement, (i) all necessary consents, approvals and authorizations of, and (ii) all notices to, and filings
by such Party with, all Governmental Authorities and other Persons required to be obtained or provided by such Party as of the
Effective Date in connection with the execution, delivery and performance of this Agreement have been obtained and provided, except
for those approvals, if any, not required at the time of execution of this Agreement.

 

(e)
In the course of the Development of Products, such Party has not used prior to the Effective Date and shall not use, during the
Term, any employee, agent or, to its knowledge, independent contractor who has been debarred by any Regulatory Authority, or,
to such Party’s knowledge, is the subject of debarment proceedings by a Regulatory Authority.

 

(f)
As of the Effective Date, no claim or demand of any Person has been asserted in writing to such Party arising out of such Party’s
development, regulatory or commercialization activities with respect to any other products that could reasonably be expected to
impact such Party’s ability to perform any of its obligations under this Agreement, and no investigations are pending or,
to the knowledge of such Party, threatened relating to such activities.

 

10.2
Additional Representations, Warranties and Covenants of VBL. VBL hereby represents, warrants and covenants (as applicable)
to Licensee that:

 

(a)
As of the Effective Date, VBL is the owner or exclusive licensee of, and has the right to license to the extent set forth herein,
the VBL Patents and VBL Know-How licensed to Licensee hereunder, free and clear of all mortgages, pledges, charges, liens, equities,
security interests, or other encumbrances or similar agreements, or any other obligation with respect to any of the foregoing
that would conflict or interfere with any of the rights or licenses granted to Licensee hereunder.

 

    	59

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(b)
As of the Effective Date, neither VBL nor its Affiliates, nor, to the knowledge of VBL, its subcontractors nor sublicensees, has
received written notice of any proceedings pending before or threatened by any Regulatory Authority with respect to the Product
or any Facility where the Product is Manufactured, and to VBL’s knowledge there is no basis for the foregoing.

 

(c)
Prior to and as of the Effective Date, to the knowledge of VBL, no Third Party (i) is infringing any VBL Patents or VBL Manufacturing
Patents or has misappropriated any VBL Technology or VBL Manufacturing Know-How or (ii) has challenged the scope, duration, validity,
enforceability, priority, or VBL’s right to use or license any VBL Technology, VBL Manufacturing Patent or VBL Manufacturing
Know-How.

 

(d)
Prior to and as of the Effective Date, to the knowledge of VBL, no patent, trademark or other intellectual property right owned
by a Third Party would be infringed by research, development, manufacture, use, sale, offer for sale, or import of the Product
in the Field in the Territory, and VBL and its Affiliates, and to the knowledge of VBL, its subcontractors and sublicensees, have
received no notice of any action or proceeding claiming the same.

 

(e)
As of the Effective Date, VBL has obtained assignments from the inventors of all inventorship rights relating to the VBL Patents
which are owned by VBL, and, to the knowledge of VBL, all such assignments of inventorship rights relating to such VBL Patents
are valid and enforceable.

 

(f)
Prior to and as of the Effective Date, to the knowledge of VBL, VBL has complied with all Applicable Laws, in all material respects,
including any disclosure requirements, in connection with the filing, prosecution and maintenance of the VBL Patents owned by
VBL, and VBL shall continue to comply in all material respects with such Applicable Laws in such connection during the Term.

 

(g)
The Finished Product furnished by VBL to Licensee under this Agreement:

 

(i)
shall be manufactured, handled, stored and shipped by VBL, in accordance with, and shall conform to, the applicable Product Specifications
and free of any other manufacturing defects or material damages from VBL’s handling, storage or shipment;

 

(ii)
shall be manufactured, handled and stored by or on behalf of VBL in compliance with all Applicable Laws; and

 

(iii)
shall be manufactured using Product which is manufactured, handled, stored and shipped by or on behalf of VBL in accordance with,
and conforms to, the applicable Product Specifications and in compliance with all Applicable Laws.

 

10.3
Additional Representations, Warranties and Covenants of Licensee. Licensee hereby represents, warrants and covenants (as applicable)
to VBL that:

 

(a)
As of the Effective Date, Licensee is solvent and has the ability to pay and perform all of its obligations as and when such obligations
become due, including payment obligations and other obligations under this Agreement.

    	60

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

(b)
As of the Effective Date, Licensee’s compensation programs for its Sales Representatives do not, and during the Term will
not with respect to the Product, provide financial incentives for the promotion, sales, and marketing in violation of any Applicable
Laws or any professional requirements.

 

(c)
During the Term, Licensee’s medical, regulatory or legal teams, as applicable, will review all training materials and programs
prior to use by Licensee to ensure that such training materials and programs are in accordance with the Commercialization Plan
and the Regulatory Approvals and in compliance with Applicable Laws.

 

(d)
As of the Effective Date, to the knowledge of Licensee, Licensee has complied with all Applicable Laws in all material respects.

 

10.4
Disclaimer. Subject to the regulatory and commercial status of the Product in the U. S. as of the Effective Date, Licensee
understands that the Product is the subject of ongoing clinical research and development and that VBL cannot ensure the safety
or usefulness of the Product or that the Product will receive Regulatory Approvals. In addition, VBL makes no warranties except
as set forth in this ARTICLE 10 concerning the VBL Technology.

 

10.5
No Other Representations or Warranties. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, NO REPRESENTATIONS OR WARRANTIES WHATSOEVER,
WHETHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR NON-MISAPPROPRIATION
OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS, ARE MADE OR GIVEN BY OR ON BEHALF OF A PARTY. EXCEPT AS EXPRESSLY STATED IN THIS
AGREEMENT, ALL REPRESENTATIONS AND WARRANTIES, WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE, ARE HEREBY EXPRESSLY EXCLUDED.

 

ARTICLE
11

INDEMNIFICATION

 

11.1
Indemnification by VBL. VBL hereby agrees to save, indemnify, defend and hold Licensee, its Affiliates, and their respective
directors, officers, agents and employees harmless from and against any and all losses, damages, liabilities, costs and expenses
(including reasonable attorneys’ fees and expenses) (collectively, “Losses”) arising in connection with
any and all charges, complaints, actions, suits, proceedings, hearings, investigations, claims, demands, judgments, orders, decrees,
stipulations or injunctions by a Third Party (each a “Third Party Claim”) resulting or otherwise arising from
(i) any material breach by VBL or its Affiliates, sublicensees or subcontractors of any of VBL’s representations, warranties,
covenants or obligations pursuant to this Agreement, (ii) the negligence or willful misconduct by VBL or its Affiliates, sublicensees
or subcontractors or their respective officers, directors, employees, agents or consultants in performing any obligations under
this Agreement, (iii) any matter related to the Development and Manufacturing of the Product hereunder by VBL or its Affiliates,
sublicensees or subcontractors or their respective officers, directors, employees, agents or consultants or (iv) the failure by
VBL to conduct a Product recall, withdrawal or market notification that is initiated by Licensee under Section 5.8.1.

 

    	61

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

11.2
Indemnification by Licensee. Licensee hereby agrees to save, indemnify, defend and hold VBL, its Affiliates, and their respective
directors, agents and employees harmless from and against any and all Losses arising in connection with any and all Third Party
Claims resulting or otherwise arising from (i) any material breach by Licensee (or by any of its Affiliates, Sublicensees, subcontractors,
wholesalers or distributors) of any of Licensee’s representations, warranties, covenants or obligations pursuant to this
Agreement, (ii) the negligence or willful misconduct by Licensee (or by any of its Affiliates, Sublicensees, subcontractors, wholesalers
or distributors) or their respective officers, directors, employees, agents or consultants in performing any obligations under
this Agreement, (iii) any matter related to the Development, Packaging and Labeling (or Manufacturing to the extent permitted
under this Agreement), or Commercialization of the Product hereunder by Licensee (or by any of its Affiliates, Sublicensees, subcontractors,
wholesalers or distributors) or their respective officers, directors, employees, agents or consultants, or (iv) the failure by
Licensee to initiate a Product recall, withdrawal or market notification that is agreed by the Parties under Section 5.8.1.

 

11.3
Indemnification Procedures. The obligations to indemnify and defend set forth in Sections 11.1 and 11.2 shall be contingent
upon the Party seeking indemnification (the “Indemnitee”): (a) notifying the indemnifying Party of a claim,
demand or suit within fifteen (15) Business Days of receipt of same (provided, however, that Indemnitee’s failure or delay
in providing such notice shall not relieve the indemnifying Party of its indemnification obligation except to the extent the indemnifying
Party is prejudiced thereby), (b) allowing the indemnifying Party and/or its insurers the right to assume direction and control
of the defense of any such Third Party Claim, (c) using its Commercially Reasonable Efforts to cooperate with the indemnifying
Party and/or its insurers in the defense of such Third Party Claim at the indemnifying Party’s expense, and (d) agreeing
not to settle or compromise any Third Party Claim without prior written authorization of the indemnifying Party. Indemnitee shall
have the right to participate in the defense of any such Claim referred to in this Section 11.3 utilizing attorneys of its choice,
at its own expense; provided, however, that the indemnifying Party shall have full authority and control to handle any such Claim.
The indemnifying Party shall have the right to settle or compromise any action or otherwise seek to terminate any pending or threatened
action for which indemnity may be sought hereunder (whether or not any indemnified Party is a party thereto) as long as such settlement,
compromise or termination includes an unconditional release of, and does not include an admission of liability by, each indemnified
Party from all liability in respect of such Third Party Claim.

 

11.4
Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES
ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING
THE FOREGOING, NOTHING IN THIS SECTION 11.4 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS
OF ANY PARTY UNDER SECTION 11.1 or 11.2, IN EACH CASE WITH RESPECT TO PAYMENT TO THIRD PARTIES, OR DAMAGES AVAILABLE FOR A PARTY’S
BREACH OF CONFIDENTIALITY OBLIGATIONS UNDER ARTICLE 12.

 

    	62

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

11.5
Insurance. Each Party shall procure and maintain insurance that is available on commercially reasonable terms, including general
liability, clinical trial insurance, product liability insurance and other insurance as necessary, adequate to cover its obligations
hereunder and which is consistent with normal business practices of prudent companies similarly situated at all times during which
Product is being clinically tested in human subjects or commercially distributed or sold by a Party pursuant to this Agreement,
and such insurance coverage shall be, in no event less than, in amounts per loss occurrence and in the aggregate as are customary
in the industry in the Territory. It is understood that such insurance shall not be construed to create a limit of either Party’s
liability with respect to its indemnification obligations under this ARTICLE 11. Each Party shall provide the other Party with
written evidence of such insurance upon request of the other Party and upon expiration of any one coverage. Each Party shall provide
the other Party with written notice at least thirty (30) days prior to the cancellation, nonrenewal or material change in such
insurance which materially adversely affects the rights of the other Party hereunder. Without limiting the foregoing, Licensee
shall cause its insurance policies to name VBL as an additional insured without cost to VBL.

 

ARTICLE
12

CONFIDENTIALITY

 

12.1
Confidential Information. As used in this Agreement, the term “Confidential Information” means all information,
whether it be written or oral, including all production schedules, lines of products, volumes of business, processes, new product
developments, product designs, formulae, technical information, patent information, Know-How, trade secrets, financial and strategic
information, marketing and promotional information and data, and other material relating to any products, projects or processes
of one Party (the “Disclosing Party”) that is provided to, or otherwise obtained from the Disclosing Party
by, the other Party (the “Receiving Party”) in connection with this Agreement (including information exchanged
prior to the date hereof in connection with the transactions set forth in this Agreement, including any information disclosed
by either Party pursuant to the Confidentiality and Nondisclosure Agreement between the Parties dated July 20, 2017 (the “Confidential
Disclosure Agreement”)). Notwithstanding the foregoing sentence, Confidential Information shall not include any information
or materials that:

 

(a)
were already known to the Receiving Party (other than under an obligation of confidentiality), at the time of disclosure by the
Disclosing Party, to the extent such Receiving Party has documentary evidence to that effect;

 

(b)
were generally available to the relevant public or otherwise part of the public domain at the time of disclosure thereof to the
Receiving Party;

 

(c)
became generally available to the relevant public or otherwise part of the public domain after disclosure or development thereof,
as the case may be, and other than through any act or omission of a Party in breach of such Party’s confidentiality obligations
under this Agreement; or

 

(d)
were independently discovered or developed by or on behalf of the Receiving Party without the use of the Confidential Information
belonging to the other Party, to the extent such Receiving Party has documentary evidence to that effect.

 

    	63

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

12.2
Confidentiality Obligations. Each of Licensee and VBL shall keep all Confidential Information received from or on behalf of
the other Party with the same degree of care with which it maintains the confidentiality of its own Confidential Information,
but in all cases no less than a reasonable degree of care. Neither Party shall use such Confidential Information for any purpose
other than in performance of this Agreement, or exercise of rights under this Agreement, or disclose the same to any other Person
other than to such of its and its Affiliates’ directors, managers, employees, independent contractors, agents, consultants
or its sublicensees, who have a need to know such Confidential Information to implement the terms of this Agreement or enforce
its rights under this Agreement; provided, however, that a Receiving Party shall advise any of its and its Affiliates’ directors,
managers, employees, independent contractors, agents, consultants or its sublicensees, who receives such Confidential Information
of the confidential nature thereof and of the obligations contained in this Agreement relating thereto, and the Receiving Party
shall ensure (including, in the case of a Third Party, by means of a written agreement with such Third Party having terms at least
as protective as those contained in this ARTICLE 12) that all such directors, managers, employees, independent contractors, agents,
consultants or its sublicensees comply with such obligations. Upon termination of this Agreement, the Receiving Party shall return
or destroy all documents, tapes or other media containing Confidential Information of the Disclosing Party that remain in the
possession of the Receiving Party or its directors, managers, employees, independent contractors, agents, consultants or its sublicensees,
except that the Receiving Party may keep copies of the Confidential Information, solely for archival purposes. Such archival copy
shall be deemed to be the property of the Disclosing Party, and shall continue to be subject to the provisions of this ARTICLE
12.

 

12.3
Permitted Disclosure and Use. Notwithstanding Section 12.2, either Party may disclose Confidential Information belonging to
the other Party only (i) to the extent such disclosure is reasonably necessary to comply with or enforce any of the provisions
of this Agreement or to comply with Applicable Laws or (ii) to the extent such disclosure is reasonably necessary to obtain or
maintain Regulatory Approval of the Product and such disclosure is made to a Governmental Authority. If a Party deems it necessary
to disclose Confidential Information of the other Party pursuant to this Section 12.3, such Party shall give reasonable advance
written notice of such disclosure to the other Party to permit such other Party sufficient opportunity to object to such disclosure
or to take measures to ensure confidential treatment of such information, including seeking a protective order or other appropriate
remedy. Notwithstanding Section 12.2, each Party may also disclose Confidential Information belonging to the other Party related
to the Product to Third Parties in the course of and solely to the extent necessary for due diligence examinations carried out
by potential investors or business partners (provided, that such Third Parties are bound by written agreements having terms at
least as protective as those contained in this ARTICLE 12 with respect to keeping such Confidential Information confidential).

 

12.4
Notification. The Receiving Party shall notify the Disclosing Party promptly upon discovery of any material unauthorized use
or disclosure of the Disclosing Party’s Confidential Information, and will cooperate with the Disclosing Party in any reasonably
requested fashion to assist the Disclosing Party to regain possession of such Confidential Information and to prevent its further
unauthorized use or disclosure.

 

    	64

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

12.5
Publicity; Filing of this Agreement.

 

12.5.1
Publicity. The press release to be issued in connection with this Agreement and the transactions described herein is set forth
on Schedule 12.5.1. Except as otherwise provided in this Section 12.5, each Party shall maintain the confidentiality of
all provisions of this Agreement, and without the prior written consent of the other Party, which consent shall not be unreasonably
withheld, neither Party nor its respective Affiliates shall make any press release or other public announcement of or otherwise
disclose the provisions of this Agreement to any Third Party not otherwise disclosed in any agreed-upon press release or other
public announcement, except for: (i) disclosure to those of its directors, officers, employees, accountants, attorneys, underwriters,
lenders and other financing sources, potential strategic partners, advisors, agents and its sublicensees, whose duties reasonably
require them to have access to this Agreement; provided, that such directors, officers, employees, accountants, attorneys, underwriters,
lenders and other financing sources, advisors, agents or sublicensees, are required to maintain the confidentiality of this Agreement;
(ii) disclosures required by The NASDAQ Stock Market or any securities exchanges, in which case the disclosing Party shall provide
the non-disclosing Party with at least sixty (60) hours-notice, but in any event no later than the time the disclosure required
by such NASDAQ Stock Market or any securities exchange is made; (iii) disclosures as may be required by Applicable Laws, in which
case the disclosing Party shall provide the non-disclosing Party with prompt advance notice of such disclosure and cooperate with
the non-disclosing Party to seek a protective order or other appropriate remedy, including a request for confidential treatment
in the case of a filing with the U.S. Securities and Exchange Commission; (iv) the report on Form 6-K or any equivalent in the
Territory, which may be filed by setting forth the press release referred to above, and/or this Agreement in redacted form (i.e.,
Redacted Agreement) as provided in Section 12.5.2 and/or a summary thereof; (v) disclosures that are consistent with or complementary
to those described in clause (iv) but which do not contain any Confidential Information of the other Party; and (vi) other disclosures
for which consent has previously been given. A Party may publicly disclose without regard to the preceding requirements of this
Section 12.5 any information that was previously publicly disclosed pursuant to this Section 12.5, so long as the context and
extent of such disclosure is substantially similar to the context in and extent to which the initial disclosure was made.

 

12.5.2
Required Filings. Notwithstanding Section 12.5.1, each Party may publicly disclose without violation of this Agreement, such
terms of this Agreement as are, on the advice of such Party’s counsel, required by the rules and regulations of the SEC
or The NASDAQ Stock Market, Inc. or other applicable securities exchanges (“Redacted Agreement”); provided,
that such disclosing Party shall advise the other Party of such intended disclosures and provide the other Party with reasonable
opportunity to request that the disclosing Party seek confidential treatment of such disclosures. Subject to the immediately preceding
sentence, such disclosing Party shall consult with the other Party, and the other Party shall have the right to review and comment
with respect to the Redacted Agreement or the other Party’s Confidential Information as part of the confidential treatment
request to the SEC or such other applicable exchange. After release of the press release announcing this Agreement and excluding
any public disclosures of the terms of this Agreement that are authorized by the preceding sentences or Section 12.5.1, if either
Party desires to make a public announcement concerning the material terms of this Agreement, milestones achieved under this Agreement
or the other Party’s Confidential Information, then such shall give reasonable prior advance notice of the proposed text
of such announcement to the other Party for its prior review and approval (except as otherwise provided herein), such approval
not to be unreasonably withheld, conditioned or delayed; provided, that the other Party shall provide its comments, if any, within
five (5) Business Days (or one (1) Business Day in the event the disclosing Party is required to make such disclosure pursuant
to Applicable Laws or stock exchange rules) after receiving the public announcement for review (and failure of the other Party
to provide comments within such time period shall be deemed to constitute the other Party’s consent to such public announcement).
In relation to the other Party’s review of such an announcement, the other Party may make specific, reasonable comments
on such proposed press release or other public disclosure within the prescribed time for commentary. Neither Party shall be required
to seek the permission of the other Party to disclose any information already disclosed or otherwise in the public domain, provided
such information remains accurate.

 

    	65

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

12.6
Publication. Each Party shall submit to the other Party copies in English of each proposed academic, scientific, medical and
other publication or presentation that contains or refers to any Confidential Information or technology provided by the other
Party at least sixty (60) days in advance of submitting such proposed publication or presentation to a publisher or other Third
Party. Upon receipt thereof, the other Party shall have the right to review and comment on each such proposed publication or presentation
and request that the submitting Party remove any of its Confidential Information prior to submission for publication or presentation.
Upon such request, the submitting Party shall redact or otherwise modify the proposed publication or presentation to remove any
such Confidential Information of the other Party. In addition, in the event that the document includes data, information or material
generated by the other Party’s scientists, and professional standards for authorship would be consistent with including
such scientists as co-authors of the document, the Parties shall discuss in good faith the inclusion of the names of such scientists
as co-authors.

 

12.7
Use of Names. Except as otherwise set forth in this Agreement, neither Party shall use the name of the other Party in relation
to this transaction in any public announcement, press release or other public document without the written consent of such other
Party, which consent shall not be unreasonably withheld; provided, however, that subject to Section 12.5, either Party may use
the name of the other Party in any document filed with any Regulatory Authority or Governmental Authority, including the Securities
and Exchange Commission and any applicable securities exchanges.

 

12.8
Survival. The obligations and prohibitions contained in this ARTICLE 12 as they apply to Confidential Information shall survive
the expiration or termination of this Agreement for a period of five (5) years.

 

ARTICLE
13

TERM
AND TERMINATION

 

13.1
Term. This Agreement shall become effective on the Effective Date and, unless earlier terminated pursuant to this ARTICLE
13, shall remain in effect until the later of (a) the date on which Licensee and its Sublicenses cease selling the Product in
the Territory or (b) expiration of the Royalty Term (the “Term”).

 

    	66

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

13.2
Termination for Breach. In the event that either Party reasonably believes that a material breach in the performance by the
other Party of its obligations under this Agreement has occurred, the Parties shall first consult with each other in good faith
and use Commercially Reasonable Efforts to amicably resolve the disputed subject matter prior to the other Party invoking its
termination rights under this Section 13.2. Subject to the foregoing, either Party may, without prejudice to any other remedies
available to it at law or in equity, terminate this Agreement upon written notice to the other Party in the event that the other
Party (the “Breaching Party”) shall have materially breached or defaulted in the performance of its obligations
under this Agreement, including without limitation, in the case of a breach by Licensee of its obligations under Section 4.2.2
or Section 6.3.1. The Breaching Party shall have ninety (90) days (sixty (60) days in the event of payment) after written notice
thereof was provided to the Breaching Party by the non-breaching Party to remedy such default. Unless the Breaching Party has
cured any such breach or default prior to the expiration of such ninety (90) day period (sixty (60) days in the event of payment),
such termination shall become effective upon the end of the ninety (90) day period (sixty (60) days in the event of payment).
In the event of any dispute as to whether or not a material breach has been committed under this Section 13.2, the Parties shall
first consult with each other in good faith and use good faith efforts to settle such dispute. Should the Parties fail to agree
on the settlement of any such dispute, the matter shall be submitted to and finally resolved by arbitration in accordance with
Section 15.3 (provided, however, that referral to the Executive Officers shall not be applicable, and the time period for a decision
under Section 15.3.2 shall be three (3) months following selection of the arbitrator). For the avoidance of doubt, if Licensee
is entitled to terminate this Agreement in accordance with the foregoing, it is agreed that Licensee shall also have the right
not to terminate this Agreement. In the case that Licensee chooses not to terminate this Agreement, Licensee shall have the right
to claim damages arising out of VBL’s material breach; provided, however, that it is understood and agreed that Licensee
shall remain subject to its payment obligations incurred prior thereto as set forth in ARTICLE 8.

 

13.3
Termination as a Result of Bankruptcy. Each Party shall have the right to terminate this Agreement upon written notice as
a result of the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings, or upon an assignment
of a substantial portion of the assets for the benefit of creditors by the other Party; provided, that such termination shall
be effective only if such proceeding is not dismissed within ninety (90) days after the filing thereof.

 

13.4
Termination by Licensee for Convenience. At any time during the Term, Licensee has the right to immediately terminate this
Agreement with or without cause upon ninety (90) days prior written notice to VBL.

 

ARTICLE
14

EFFECTS
OF TERMINATION AND EXPIRATION

 

14.1
Termination. Without limiting any other legal or equitable remedies that a Party may have, if this Agreement is terminated
by either Party and for any reason prior to its natural expiration, then the following provisions shall apply:

 

    	67

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

14.1.1
Termination of Licenses. All rights and licenses granted to Licensee hereunder shall immediately terminate and be of no further
force and effect and Licensee shall cease Developing and Commercializing the Product (except as otherwise set forth in Section
14.1.3).

 

14.1.2
Assignments. In the event of a termination of this Agreement, subject to Section 14.1.7, upon request by VBL, Licensee will
promptly, in each case within sixty (60) days after receipt of such request:

 

		(a)	at
                                         VBL’s election, assign to VBL or its designee all of Licensee’s right, title
                                         and interest in and to any agreements (or portions thereof) between Licensee and Third
                                         Parties that relate to the Development or Commercialization of the Product, or terminate
                                         such agreements;

 

		(b)	assign
                                         to VBL or its designee all of Licensee’s right, title and interest in and to any
                                         (i) Licensee Know-How (including all of Licensee’s right, title and interest in
                                         and to any and all Development Data and Commercialization Data Controlled by Licensee
                                         for the Product), (ii) Collaboration Patents, and (iii) Promotional Materials and copyrights
                                         and trademarks, including any goodwill associated therewith, and any registrations and
                                         design patents for the foregoing, all to the extent solely related to the Product; provided,
                                         however, in the event VBL exercises such right to have assigned such Promotional Materials,
                                         Licensee shall grant, and hereby does grant, to VBL a royalty-free right and license
                                         to any trademarks, trademarks, names and logos of Licensee contained therein for a period
                                         of twelve (12) months in order to use such Promotional Materials in connection with the
                                         Commercialization of the Product. In furtherance of the foregoing, Licensee shall execute,
                                         and shall cause its Affiliates to execute, any documents reasonably required to confirm
                                         VBL’s sole ownership of Licensee Know-How, Collaboration Patents and Internet domain
                                         names, and any documents required to apply for, maintain and enforce any Patent or other
                                         right in the Licensee Know-How or Collaboration Patents;

 

		(c)	at
                                         VBL’s sole discretion, (i) assign to VBL or its designee the management and continued
                                         performance of any clinical trials for the Product ongoing hereunder as of the effective
                                         date of such termination in respect of which VBL shall assume full financial responsibility
                                         from and after the effective date of such termination, (ii) continue performing such
                                         activities (in accordance with applicable terms and conditions of this Agreement) at
                                         VBL’s reasonable cost and expense, except in the event that VBL has terminated
                                         this Agreement under Section 13.2 in connection Licensee’s breach, in which case
                                         at Licensee’s cost and expense, or (iii) wind-down the performance of such activities
                                         at Licensee’s cost and expense;

 

		(d)	transfer
                                         to VBL or its designee any and all of Licensee’s right, title and interest in and
                                         to any and all regulatory filings, Regulatory Approvals and other Regulatory Materials
                                         for the Product in respect of which VBL shall assume full financial responsibility; and

 

		(e)	provide
                                         a copy of (i) the material tangible embodiments of the foregoing and (ii) any other material
                                         books, records, files and documents Controlled by Licensee solely to the extent related
                                         to the Product, and, to the extent applicable, in accordance with Section 14.1.3; provided,
                                         that such materials may be redacted to exclude Confidential Information of Licensee that
                                         is unrelated to the Product;

 

    	68

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

provided,
however, that to the extent that any agreement or other asset described in this Section 14.1.2 is not assignable by Licensee and/or
relates to businesses other than the Development or Commercialization of the Product, then such agreement or other asset will
not be assigned, and upon the request of VBL, the Parties will discuss the treatment thereof, and Licensee will use Commercially
Reasonable Efforts to take such steps as may be reasonably necessary to allow VBL or its designee to obtain and to enjoy the benefits
of, and to assume the obligations of, such agreement or other asset . For purposes of clarity, (1) VBL shall have the right to
request that Licensee take any or all of the foregoing actions in whole or in part, or with respect to all or any portion of the
assets set forth in the foregoing provisions and (2) to the extent VBL requests Licensee to transfer its right, title and interest
in the items set forth in this Section 14.1.2 to VBL or its designee, Licensee shall also cause its Affiliates to transfer and
assign to VBL or its designee all of such Affiliates’ right, title and interest in and to the foregoing items set forth
in this Section 14.1.2.

 

14.1.3
Delivery of Licensee Know-How. Upon request by VBL, Licensee will promptly transfer to VBL or its designee copies of any physical
embodiment of any Licensee Know-How, to the extent then used in connection with the Development or Commercialization of Product,
and such transfer shall be effected by the delivery of material documents in Licensee’s possession. The appropriate technical
teams at VBL (or its designee) and Licensee will meet to plan transfer for the Licensee Know-How as follows: (i) Licensee’s
designated representative(s) for Product will meet with representatives from VBL or its designee to answer questions with respect
to the Licensee Know-How and establish a plan for the transfer for such Licensee Know-How; and (ii) each Party will allocate adequate
appropriately qualified representatives to work with the other Party (and in the case of VBL, VBL or its designee) to review the
Licensee Know-How to enable the completion of the transfer within thirty (30) days of the completion of the initial transfer planning
meetings to the extent reasonable, but in any event no longer than sixty (60) days thereafter.

 

14.1.4
Disposition of Inventory. In the event that this Agreement is terminated other than by VBL under Section 13.2 in connection
with Licensee’s breach, Licensee and its Affiliates will be entitled, during the period ending on the last day of the sixth
(6th) full month following the effective date of such termination, to sell any inventory of Product affected by such termination
that remains on hand as of the effective date of the termination, so long as Licensee pays to VBL the Royalty Payments and other
amounts payable hereunder (including milestones) applicable to said subsequent sales, with respect to sales in the Territory,
as applicable, in accordance with the terms and conditions set forth in this Agreement and otherwise complies with the terms set
forth in this Agreement. In the event this Agreement is terminated by VBL under Section 13.2 in connection with Licensee’s
breach, VBL shall have the option to purchase any inventory of Product affected by such termination at the original Supply Price
therefor.

 

14.1.5
Disposition of Commercialization Related Materials. Upon request by VBL, Licensee will promptly deliver to VBL or its designee
in electronic, sortable form (a) a list identifying all wholesalers and other distributors involved in the Commercialization of
the Product in the Territory as well as any customer lists (e.g., purchasers) related to the Commercialization of the Product
in the Territory, and (b) all Promotional Materials as well as any items bearing the Product Trademark and/or any trademarks or
trademarks of VBL otherwise associated with the Product.

 

    	69

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

14.1.6
Termination other than for Breach. Except for termination by Licensee pursuant to Section 13.2, upon termination of this Agreement,
in addition to the effects of termination set forth in this ARTICLE 14, the following obligations shall apply: (i) Licensee shall
remain responsible for all of Licensee’s accrued but unpaid Development and Commercialization costs until the effective
date of termination for twelve (12) months after notice of termination; (ii) to the extent Licensee is unable to assign to VBL
the management and continued performance of any clinical trials pursuant to Section 14.1.2(c), Licensee shall remain responsible
to conduct such on-going clinical trials or other related Development activities in the Territory until such clinical trials or
other activities can be wound down in compliance with Applicable Laws and appropriate ethical standards prevailing in the industry
or effectively transferred to VBL; and (iii) Licensee shall not take any action that is intended or reasonably likely to materially
adversely affect or impair the further Development or Commercialization of the Product by VBL.

 

14.1.7
Transfer Costs and Additional Consideration. With respect to the assignments, delivery and disposition of materials set forth
in this Section 14.1 (including such steps necessary to allow VBL or its designee to obtain and enjoy the benefits of the relevant
agreement or asset), the Parties shall allocate all reasonable, documented and pre-approved Out-of-Pocket Costs incurred as transfer
costs for such assignment, delivery or disposition (“Transfer Costs”), and VBL shall additionally pay mutually
agreed amounts that reasonably approximate the costs incurred by Licensee during the Term of this Agreement for developing or
otherwise obtaining the transferring Know-How, materials and/or rights (“Assignment Consideration”), as follows:

 

		(a)	in
                                         the event of an assignment requested by VBL after termination of this Agreement by VBL
                                         pursuant to Section 13.2 or 13.3, or by Licensee pursuant to Section 13.4, Licensee shall
                                         bear all Transfer Costs for any applicable assignments, delivery and/or disposition of
                                         materials set forth in this Section 14.1, and VBL shall owe no additional Assignment
                                         Consideration to Licensee; and

 

		(b)	in
                                         the event of an assignment requested by VBL after termination of this Agreement by Licensee
                                         pursuant to Section 13.2 or 13.3, VBL shall bear all Transfer Costs for any applicable
                                         assignments, delivery and/or disposition of materials set forth in this Section 14.1,
                                         and VBL shall additionally pay the Assignment Consideration to Licensee.

 

For
all payments due under this Section 14.1.7, the receiving Party shall promptly invoice the paying Partying for the applicable
amounts upon completion of the assignment, delivery and/or disposition of the relevant materials, and such payments shall be made
within thirty (30) days following receipt of such invoice by the paying Party and subject to Section 8.10 if not made within such
thirty (30) day period.

 

14.1.8
Grant-Back License to Licensee. With respect to any Licensee Know-How, Collaboration Patent and Promotional Materials assigned
by Licensee to VBL pursuant to Section 14.1.2(b), VBL shall grant, and hereby does grant, to Licensee a non-exclusive, perpetual,
irrevocable, sublicensable, royalty-free license to use the foregoing for any purpose in or outside of the Territory, except for
the Development or Commercialization of the Product.

 

    	70

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

14.2
Expiration of this Agreement. 

 

14.2.1
Upon expiration of this Agreement pursuant to Section 13.1 (as opposed to termination of this Agreement), the licenses granted
to Licensee under Section 2.1 shall become fully paid-up, royalty-free, perpetual and non-exclusive licenses.

 

14.2.2
Licensee may use the Regulatory Materials and Regulatory Data provided by VBL hereunder or generated by Licensee hereunder,
and any other Development Data and Commercialization Data, for the purposes of maintaining Regulatory Approval for the Product
in the Field in the Territory.

 

14.3
Accrued Rights. Termination or expiration of this Agreement for any reason will be without prejudice to any rights that will
have accrued to the benefit of a Party prior to the effective date of such termination. Such termination will not relieve a Party
from obligations that are expressly indicated to survive the termination or expiration of this Agreement.

 

14.4
Survival. Notwithstanding anything to the contrary contained herein, the following provisions shall survive any expiration
or termination of this Agreement: Articles: ARTICLE 11, 12, 14 (and Sections 8.9 and 8.10 with respect to payments due thereunder),
15 and ARTICLE 16 and Sections: 6.5.7, 8.11, 9.1. Except as set forth in this ARTICLE 14 or otherwise expressly set forth herein,
upon termination or expiration of this Agreement all other rights and obligations of the Parties shall cease.

 

14.5
Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by VBL and Licensee are, and shall
otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code (and of any similar provisions of Applicable
Laws under any other jurisdiction), licenses of right to “intellectual property” as defined under Section 101 of the
U.S. Bankruptcy Code. The Parties agree that each Party, as licensee of certain rights under this Agreement, shall retain and
may fully exercise all of its rights and elections under the U.S. Bankruptcy Code and under any similar provisions of Applicable
Laws under any other jurisdiction. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding
by or against a Party (such Party, the “Bankrupt Party”) under the U.S. Bankruptcy Code or under any similar
provisions of Applicable Laws under any other jurisdiction, (a) the other Party shall be entitled to a complete duplicate of (or
complete access to, as appropriate) any intellectual property licensed to such other Party and all embodiments of such intellectual
property, which, if not already in such other Party’s possession, shall be promptly delivered to it (x) upon any such commencement
of a bankruptcy proceeding upon such other Party’s written request therefor, unless the Bankrupt Party elects to continue
to perform all of its obligations under this Agreement or (y) if not delivered under clause (x), following the rejection of this
Agreement by the Bankrupt Party upon written request therefor by the other Party and (b) the Bankrupt Party shall not unreasonably
interfere with the other Party’s rights to intellectual property and all embodiments of intellectual property, and shall
assist and not unreasonably interfere with the other Party in obtaining intellectual property and all embodiments of intellectual
property from another entity. The “embodiments” of intellectual property includes all tangible, intangible, electronic
or other embodiments of rights and licenses hereunder, including all compounds and products embodying intellectual property, Products,
filings with Regulatory Authorities and related rights and VBL Know-How in the case that VBL is the Bankrupt Party and Licensee
Know-How in the case Licensee is the Bankrupt Party.

 

    	71

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

ARTICLE
15

DISPUTE
RESOLUTION

 

15.1
Disputes. The Parties recognize that, from time to time during the Term, disputes may arise as to certain matters which relate
to either Party’s rights and/or obligations hereunder. It is the objective of the Parties to establish procedures to facilitate
the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to litigation.
To accomplish this objective, the Parties agree to follow the procedures set forth in this ARTICLE 15 to resolve any controversy
or claim arising out of, relating to or in connection with any provision of this Agreement (other than a dispute addressed in
Section 3.1.6).

 

15.2
Arising Between the Parties. With respect to all disputes arising between the Parties and not from the JMC, including any
alleged failure to perform, or breach, of this Agreement, or any issue relating to the interpretation or application of this Agreement,
if the Parties are unable to resolve such dispute within thirty (30) days after such dispute is first identified by either Party
in writing to the other, the Parties shall refer such dispute to the Chief Executive Officers of each of the Parties, or a designee
from senior management with decision-making authority (the Chief Executive Officer or such designee, the “Executive Officer”)
for attempted resolution by good-faith negotiations within thirty (30) days after such notice is received by the Executive Officers
of each of the Parties.

 

15.3
Dispute Resolutions. If the Executive Officers are not able to resolve such dispute referred to them under Section 15.2 within
such thirty (30) day period, then either Party shall have right to refer such dispute for binding arbitration administered in
New York, New York in accordance with the Rules of Arbitration of the International Chamber of Commerce (the “ICC Rules”).
The language of the arbitration shall be English. Any situation not expressly covered by this Agreement shall be decided in accordance
with the ICC Rules. Notwithstanding the foregoing, any dispute, controversy or claim relating to the scope, validity, enforceability
or infringement of any patent rights covering the manufacture, use or sale of any Product or of any trademark rights relating
to any Product shall be subject to Section 15.4 and not this Section 15.3.

 

15.3.1
Arbitrator. There shall be a single arbitrator, appointed in accordance with the ICC Rules. The arbitrator may, in the award,
allocate all or part of the costs of the arbitration, including the fees of the arbitration and the reasonable attorneys’
fees of the prevailing Party.

 

15.3.2
Decision. A written decision shall be rendered by the arbitrators following a full comprehensive hearing, no later than twelve
(12) months following the selection of the arbitrators as provided for in Section 15.3.1.

 

    	72

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

15.3.3
Award. Any award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Such award shall be
promptly paid in Dollars free of any tax, deduction or offset; and any costs, fees or taxes incident to enforcing the award shall,
to the maximum extent permitted by Applicable Laws, be charged against the Party resisting enforcement. Such award may include
an appropriate allocation of the prevailing Party’s attorneys’ fees. Each Party agrees to abide by the award rendered
in any arbitration conducted pursuant to this Section 15.3. The award shall include interest from the date of the award until
paid in full, at a rate fixed by the arbitrators and the arbitrators may, in their discretion, award pre-judgment interest. With
respect to money damages, nothing contained herein shall be construed to permit the arbitrators or any court or any other forum
to award punitive or exemplary damages. Pursuant to this Agreement, the Parties expressly waive any claim for punitive or exemplary
damages.

 

15.3.4
Costs. Except as set forth in Section 15.3.3, each Party shall bear its own legal fees. The arbitrators shall assess their
costs, fees and expenses against the Party losing the arbitration unless he or she believes that neither Party is the clear loser,
in which case the arbitrators shall divide his or her fees, costs and expenses according to their sole discretion.

 

15.3.5
Injunctive Relief. Provided a Party has made a sufficient showing under the rules and standards set forth in Applicable Laws,
the arbitrators shall have the freedom to invoke, and the Parties agree to abide by, injunctive measures after either Party submits
in writing for arbitration claims requiring immediate relief. Additionally, nothing in this Section 15.3 will preclude either
Party from seeking equitable relief or interim or provisional relief from a court of competent jurisdiction, including a temporary
restraining order, preliminary injunction or other interim equitable relief, concerning a dispute either prior to or during any
arbitration if necessary to protect the interests of such Party or to preserve the status quo pending the arbitration proceeding.

 

15.3.6
Confidentiality. The arbitration proceeding shall be confidential and the arbitrators shall issue appropriate protective orders
to safeguard each Party’s Confidential Information. Except as required to comply with Applicable Laws, including rules and
regulations promulgated by the U.S. Securities Exchange Commission, The NASDAQ Stock Market or any securities exchanges, no Party
shall make (or instruct the arbitrators to make) any public announcement with respect to the proceedings or decision of the arbitrators
without prior written consent of the other Party. The existence of any dispute submitted to arbitration, and the award, shall
be kept in confidence by the Parties and the arbitrators, except as required in connection with the enforcement of such award
or as otherwise required by Applicable Laws.

 

15.3.7
Survivability. Any duty to arbitrate under this Agreement shall remain in effect and be enforceable after termination of this
Agreement for any reason.

 

15.4
Patent and Trademark Dispute Resolution. Any dispute, controversy or claim relating to the scope, validity, enforceability
or infringement of any patent rights covering the manufacture, use or sale of any Product or of any trademark rights relating
to any Product shall be submitted to a court of competent jurisdiction in the region in which such patent or trademark rights
were granted or arose.

 

15.5
Injunctive Relief. Nothing herein may prevent either Party from seeking a preliminary injunction or temporary restraining
order, in any court of competent jurisdiction, so as to prevent any Confidential Information from being disclosed in violation
of this Agreement.

 

    	73

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

ARTICLE
16

MISCELLANEOUS

 

16.1
Entire Agreement; Amendment. This Agreement and all Schedules attached hereto shall constitute the entire agreement between
the Parties relating to the subject matter hereof and thereof and shall supersede all previous writings and understandings including
the Confidential Disclosure Agreement. No terms or provisions of this Agreement shall be varied or modified by any prior or subsequent
statement, conduct or act of either of the Parties, except that the Parties may amend this Agreement by written instruments specifically
referring to and executed in the same manner as this Agreement.

 

16.2
Force Majeure. If the performance of any part of this Agreement by either Party, or of any obligation under this Agreement,
is prevented, restricted, interfered with or delayed by reason of a Force Majeure affecting the Party liable to perform, unless
conclusive evidence to the contrary is provided, the Party so affected shall, upon giving written notice to the other Party, be
excused from such performance to the extent of such Force Majeure; provided, that the affected Party shall use its Commercially
Reasonable Efforts to avoid or remove such causes of nonperformance and shall continue performance with the utmost dispatch whenever
such Force Majeure ceases. When such circumstances arise, the Parties shall discuss what, if any, modification of the terms of
this Agreement may be required in order to arrive at an equitable solution.

 

16.3
Notices. Any notice, request, approval or other document required or permitted to be given under this Agreement shall be in
writing and shall be deemed to have been given when delivered in person, or sent by overnight courier service, postage prepaid,
or sent by certified or registered mail, return receipt requested, or by facsimile transmission, to the following addresses of
the Parties and to the attention of the persons identified below (or to such other address, addresses or persons as may be specified
from time to time in a written notice). Any notices given pursuant to this Agreement shall be deemed to have been given and delivered
upon the earlier of (a) if sent by overnight courier service, on the date when received at the address set forth below as proven
by a written receipt from the delivery service verifying delivery, or (b) if sent by facsimile transmission, on the day when sent
by facsimile as confirmed by automatic transmission report coupled with overnight courier service receipt proving delivery, or
(c) if delivered in person, on the date of delivery to the address set forth below as proven by written signature of the recipient.

 

	If
                                         to VBL:

                                                                                                                                          

                                                                                                                                         

        Attn:
        VP Business Operations

        VBL Therapeutics

        8
        Hasatat St., Modiin 7178106

        ISRAEL

        Facsimile: +972-8-993-5001
	With
                                         a copy to: 

         

        Attn:
        Chief Executive Officer

        VBL Therapeutics

        8
        Hasatat St., Modiin 7178106

        ISRAEL

        Facsimile:
        +972-8-993-5001

 

    	74

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

	If
                                         to Licensee:

        Attn:
        Director of Business Development

        NanoCarrier
        Co., Ltd.

        Ohnoya-Kyobashi
        Bldg.

        1-4-10
        Kyobashi, Chuo-ku,

        Tokyo,
        104-0031, Japan

        Facsimile:
        +81-3-3241-0554

        
	With
                                         a copy to: 

        Attn:
        Chief Executive Officer

        NanoCarrier
        Co., Ltd.

        Ohnoya-Kyobashi
        Bldg.

        1-4-10
        Kyobashi, Chuo-ku,

        Tokyo,
        104-0031, Japan

        Facsimile:
        +81-3-3241-0554

        

 

16.4
No Strict Construction; Interpretation. This Agreement has been prepared jointly and shall not be strictly construed against
either Party. Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may
be deemed to have authored the ambiguous provision. The headings of each Article and Section in this Agreement have been inserted
for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular
Article or Section.

 

16.5
Assignment. Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written
consent of the other, except that each Party may make such assignment without the other Party’s consent to an Affiliate
or a successor to all or substantially all of the business of the assigning Party to which this Agreement relates; provided that
in the case of an assignment by either Party, the assignee has sufficient resources and experience to carry out such assigning
Party’s obligations hereunder and agrees to be bound by the provisions of this Agreement. Any permitted assignment shall
be binding on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the
terms of this Section 16.5 shall be null, void and of no legal effect.

 

16.6
Severability. In the event that any portion of this Agreement is held illegal, void or ineffective, the remaining portions
of this Agreement shall remain in full force and effect. If any of the terms or provisions of this Agreement are in conflict with
any Applicable Laws, then such terms or provisions shall be deemed to be modified to conform with such Applicable Laws to the
extent necessary in order that such terms or provisions be valid and enforceable and such amendment shall apply only with respect
to the operation of such terms or provisions in the particular jurisdiction in which such declaration is made or, if such modification
is not feasible, then such terms and provisions shall be deemed to be inoperative to the extent that such terms or provisions
conflict with Applicable Laws. In the event that the terms and conditions of this Agreement are materially altered as a result
of this Section 16.6, the Parties shall renegotiate the terms and conditions of this Agreement to resolve any inequities and to
achieve the original intent of the Parties.

 

16.7
No Waiver of Breach. The failure of either Party at any time or times to require performance of any provision hereof shall
in no manner affect its rights at a later time to enforce the same. No waiver by either Party of any condition or term in any
one or more instances shall be construed as a further or continuing waiver of such condition or term or of another condition or
term.

 

    	75

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

16.8
Partnership or Joint Venture. VBL and Licensee shall be independent contractors and the relationship between the Parties hereunder
shall not constitute a partnership, joint venture or agency. Neither VBL nor Licensee shall have the authority to make any statements,
representations or commitments of any kind, or to take any action, which shall be binding on the other, without the prior written
consent of such other Party to do so.

 

16.9
English Language; Governing Law. This Agreement was prepared in the English language, which language shall govern the interpretation
of, and any dispute regarding, the terms of this Agreement. All notices, reports and other documents contemplated by this Agreement
to be delivered by a Party to the other Party shall be in the English language. This Agreement and all disputes arising out of
or related to this Agreement or any breach hereof shall be governed by and construed under the laws of the State of New York,
without giving effect to any choice of law principles that would require the application of the laws of a different jurisdiction.

 

16.10
Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but which
together shall constitute one and the same instrument. A facsimile or a portable document format (PDF) copy of this Agreement,
including the signature pages, will be deemed an original.

 

[No
Further Text on This Page]

 

    	76

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

IN
WITNESS WHEREOF, the Parties, through their authorized representatives, have executed this Agreement as of the Effective Date.

 

	NanoCarrier
    Co., Ltd.	Vascular
    Biogenics Ltd.
	 	 	 	 
	By:	 	By:	 
	Name:	Ichiro
    Nakatomi, PhD	Name:	Dror
    Harats, M.D.
	Title:	President
    & CEO	Title:	CEO

 

[Signature
Page to Development, Commercialization and Supply Agreement]

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

Schedule
1.78

 

VBL
Patents

 

I.
Patents

 

	Patent
    No.	 	Appl.
    No.	 	Filing
    Date	 	Grant
    Date	 	Title
    (SKGF Ref No)
	[***]	 	[***]	 	[***]	 	[***]	 	[***]

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

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

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

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

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

 

II.
Application

 

	Appl.
    No.	 	Filing
    Date	 	Title
	[***]	 	[***]	 	[***]
	[***]	 	[***]	 	[***]

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

Schedule
4.3.2

 

[***]

 

[***]

 

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

 

[***]

 

[***] 

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

Schedule
12.5.1

 

Press
Release

 

VBL
THERAPEUTICS AND NANOCARRIER CO., LTD SIGN EXCLUSIVE AGREEMENT FOR VB-111 IN JAPAN 

 

Agreement
includes $15 million up front, potential milestones payments of more than $100 million, as well as tiered high-teen royalties

 

NanoCarrier
receives exclusive rights to VB-111 in Japan, VBLT retains rights in rest of world

 

TEL
AVIV, Israel, November 6, 2017 — VBL Therapeutics (Nasdaq: VBLT), a clinical-stage biotechnology company focused
on the discovery, development and commercialization of first-in-class treatments for cancer, today announces an exclusive license
agreement with NanoCarrier Co., Ltd. (TSE Mothers: 4571) for the development, commercialization, and supply of ofranergene obadenovec
(“VB-111”) in Japan. VBL Therapeutics (VBLT) retains rights to VB-111 in the rest of the world.

 

“Japan
is potentially a large market opportunity for VBLT, and this agreement provides us with access into this important market as we
continue to prepare for commercialization of VB-111 in recurrent glioblastoma (rGBM), and in other indications,” said Dror
Harats, M.D., chief executive officer of VBL Therapeutics. “We see this agreement with NanoCarrier as providing further
validation of the potential of VB-111 and we look forward to working together to bring this important anticancer therapy to patients
and health care professionals in Japan.”

 

“We
are continually looking for new opportunities in the treatment of cancer, and VB-111 is an innovative gene therapy which, if approved,
could have significant market potential in Japan,” said Ichiro Nakatomi, PhD., President and Chief Executive Officer of
NanoCarrier. “VB-111 is a perfect fit for our portfolio of cancer drug candidates.”

 

Under
terms of the agreement, VBLT has granted NanoCarrier an exclusive license to develop and commercialize VB-111 in Japan for all
indications, VBLT will supply NanoCarrier with VB-111, and NanoCarrier will be responsible for all regulatory and other clinical
activities necessary for commercialization in Japan. In exchange, VBLT receives an up-front payment of $15 million, and is entitled
to receive greater than $100 million in development and commercial milestone payments. VBLT will also receive tiered royalties
on net sales in the high-teens. Other terms of the agreement are not being disclosed.

 

In
addition to this agreement, VBL Therapeutics and NanoCarrier intend to explore future collaborations in oncology.

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

About
VB-111 (ofranergene obadenovec)

 

VB-111,
a potential first-in-class anticancer therapeutic candidate, is the Company’s
lead product currently being studied in a global Phase 3 pivotal trial for rGBM. VB-111 has
demonstrated statistically significant overall survival and a progression-free survival in a Phase 2 trial in patients with rGBM,
versus current standard of care. VBL-111 has received orphan drug designation in both the US and Europe, and fast track designation
in the US for prolongation of survival in patients with rGBM. In addition, VB-111 successfully demonstrated proof-of-concept and
survival benefit in Phase 2 clinical trials in radioiodine-refractory thyroid cancer and recurrent platinum resistant ovarian
cancer.

 

About
VBL 

 

Vascular
Biogenics Ltd., operating as VBL Therapeutics, is a clinical stage biopharmaceutical company focused on the discovery, development
and commercialization of first-in-class treatments for cancer. The Company’s lead oncology product candidate, ofranergene
obadenovec (VB-111), is a first-in-class biologic agent that uses a dual mechanism to target solid tumors. It utilizes an angiogenesis-specific
sensor (VBL’s PPE-1-3x proprietary promoter) to specifically target the tumor vasculature, by induction of cell death in
angiogenic endothelial cells in the tumor milieu. Moreover, it is an immune-stimulant that triggers a local anti-tumor immune
response, which is accompanied by recruitment of CD8 T-cells and apoptosis of tumor cells. Ofranergene obadenovec is positioned
to treat a wide range of solid tumors and is conveniently administered as an IV infusion once every two months. It has been observed
to be well-tolerated in >300 cancer patients and we have observed its efficacy signals in an “all comers” Phase
1 trial as well as in three tumor-specific Phase 2 studies. Ofranergene obadenovec is currently being studied in a Phase 3 pivotal
trial for rGBM, conducted under an FDA Special Protocol Assessment (SPA). For more information, refer to: www.vblrx.com.

 

About
NanoCarrier Co., Ltd.

 

NanoCarrier’s
key business objective is to deliver new pharmaceuticals primarily in the area of cancer to society through our pioneer work of
micellar nanoparticle technology as core technology developed based on nanotechnology, which originates in Japan. NanoCarrier
is strongly committed to research and development through which we strive to develop cutting-edge pharmaceuticals to meet the
needs of many patients suffering from cancer. Conventional anticancer agents show similar cytotoxic effects on cancerous and normal
cells. The administration of these agents generally causes adverse reactions because it is distributed to the entire body, affecting
normal cells as well. NanoCarrier’s pharmaceutical products, using the micellar nanoparticle technology, are expected to
wide therapeutic window of given such agent to accumulate more in cancerous lesions, thereby reducing drug distribution to normal
cells, and reducing the occurrence of adverse reactions. It has been observed by ongoing Phase 1 trough Phase 3 clinical trials.
For more information, refer to http://www.nanocarrier.co.jp/en/index.html.

 

    	 

    	CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL
TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

    

 

Forward
Looking Statements

 

This
press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking
statements, which are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “goal,” “intend,” “look forward to”, “may,” “plan,”
“potential,” “predict,” “project,” “should,” “will,” “would”
and similar expressions. These forward-looking statements include, but are not limited to, statements regarding the clinical development
and commercial potential of ofranergene obadenovec (VB-111) in Japan. These forward-looking statements are not promises or guarantees
and involve substantial risks and uncertainties. Among the factors that could cause actual results to differ materially from those
described or projected herein include uncertainties associated generally with research and development, clinical trials and related
regulatory reviews and approvals, and the risk that historical clinical trial results may not be predictive of future trial results.
In particular, results from our pivotal Phase 3 clinical trial of ofranergene obadenovec (VB-111) in rGBM may not support approval
of ofranergene obadenovec for marketing in the United States or in Japan, notwithstanding the positive results seen in prior clinical
trials. A further list and description of these risks, uncertainties and other risks can be found in the Company’s regulatory
filings with the U.S. Securities and Exchange Commission, including in our annual report on Form 20-F for the year ended December
31, 2016. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. VBL Therapeutics undertakes no obligation to update or revise the information contained in this
press release, whether as a result of new information, future events or circumstances or otherwise.

 

VBL
INVESTOR CONTACT:

Michael
Rice

LifeSci
Advisors, LLC

mrice@lifesciadvisors.com

(646)
597-6979

 

VBL
MEDIA CONTACT:

Matt
Middleman, M.D.

LifeSci
Public Relations

matt@lifescipublicrelations.com

(646)
627-8384

 

NANOCARRIER
CONTACT: 

Tetsuhito
Matsuyama

CFO
and Head of CEO’s Office

info@nanocarrier.co.jp

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