Document:

EXHIBIT 4.3

 

MediWound Ltd.

42 Hayarkon Street

Yavne Israel

 

, 2014

 

Clal Biotechnology Industries Ltd.

12 Abba Hillel Silver St.

Ramat Gan 52506, Israel

 

Ladies and Gentlemen:

 

Re: Information Rights

 

This letter confirms our agreement and undertaking that subject to and following the initial public offering of the ordinary shares of MediWound Ltd. (the “Company”) on the Nasdaq Global Market, provided that such offering is consummated not later than August 31, 2014, Clal Biotechnology Industries Ltd. (the “Shareholder”) shall be entitled to the information rights set forth in this letter agreement (this “Agreement”), subject to the terms set forth herein.

 

1.                            Effectiveness of Rights.

 

The Shareholder shall have the rights set forth in Sections 2 and 3 of this Agreement until any one of the following conditions is fulfilled: (a) neither the Shareholder nor any company that controls the Shareholder (with the term “control” having the meaning set forth in the Israeli Securities Law 5728-1968, as amended (the “Securities Law”)) is required to issue immediate and periodic reports pursuant to the Securities Law, or (b) the Shareholder holds less than 15% of the issued and outstanding share capital of the Company (the “Rights Period”).

 

2.                            Rights to Certain Financial Information.

 

During the Rights Period, the Company shall deliver to the Shareholder:

 

2.1.                           Annual financial statements (including a balance sheet, statement of income and statement of cash flow), audited by a reputable accounting firm, and accompanied by a customary opinion of such firm, within seven (7) days from the Board approval of such financial statements but in any event within forty-five (45) days after the end of each fiscal year of the Company; and

 

2.2.                           Un-audited but reviewed by a reputable accounting firm, quarterly financial statements (including a balance sheet, statement of income and statement of cash flow) within seven (7) days from the approval of the Company’s board of directors but in any event within thirty (30) days following the end of each of the first three fiscal quarters of each fiscal year of the Company.

 

2.3.                           All financial statements and other information provided pursuant to this Section 2 shall be prepared (to the extent applicable) in accordance with International

 

 

Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board and, to the extent required, audited by a firm of Independent Certified Public Accountants, selected by the Company and approved by the Company’s board of directors.  Such financial statements and other information  shall reflect any adjustments or modifications reasonably requested by the Shareholder which are necessary for the Shareholder to comply with accounting standards and reporting requirements applicable to it under the Securities Law.

 

3.                            Rights to Other Information.

 

3.1.                           During the Rights Period, in the event that information with respect to the Company which is either readily available to the Company or can be prepared by the Company independently exerting reasonable efforts but without undue burden, is required to be disclosed under the Securities Law in any periodic report of the Shareholder or any prospectus or similar document prepared in connection with any public offerings of any kind of the Shareholder, then if reasonably requested by the Shareholder, the Company shall provide such information to the Shareholder within a reasonable period after written request of the Shareholder.

 

3.2.                           During the Rights Period, in the event that the Shareholder becomes aware of any information relating to the Company that the Shareholder reasonably determines it is required to disclose under the Securities Law, then the Company will, within a reasonable period after written request of the Shareholder (provided that the Company exerts reasonable commercial efforts to provide such information within the time necessary for the Shareholder to meet its filing obligations under the Securities Law), provide to the Shareholder any such information in order for the Shareholder to comply with its disclosure obligations under the Securities Law.

 

3.3.                           The obligations of the Company under Sections 3.1 and 3.2 above shall be solely to the extent that (x) providing such information may not jeopardize the Company’s attorney-client privilege or cause the Company or any subsidiary thereof to be in violation of any applicable law, or (y) the specific information which is required to be delivered to the Shareholder under this Section 23 does not relate to specific events, occurrences or circumstances with respect to which there is a conflict of interest between the Company and the Shareholder) and the Shareholder shall provide a draft of its proposed disclosure to the Company in advance of such disclosure so that, to the extent reasonably possible, the Company has a reasonable period of time to review and comment on such disclosure and prepare its disclosure relating to such information and publicly disclose such information prior to disclosure by the Shareholder. The Shareholder shall exert reasonable efforts to revise its disclosure on matters relating to the Company based on any comments provided by the Company to such draft proposed disclosure.

 

3.4.                           The Shareholder shall use reasonable efforts, in the event that disclosure under the Securities Law is required with respect to information provided by the Company under this Section 3, to limit the disclosure to the minimum scope necessary.

 

4.                            Confidentiality.

 

4.1.                           The Shareholder agrees that it will keep confidential and will not disclose, divulge, or use for any purpose other than disclosure by the Shareholder pursuant to its reporting obligations under the Securities Law, any information obtained from the Company pursuant to the terms of this Agreement (including, without limitation,

 

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notice of the Company’s intention to file a registration statement), unless such information: (a) is known or becomes known to the public in general (other than as a result of a breach of this Agreement by the Shareholder), (b) is or has been made known or disclosed to the Shareholder by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that the Shareholder may disclose such confidential information (i) to its officers, attorneys, accountants, consultants, and other professionals to the extent necessary to determine the scope of required disclosure of such confidential information by the Shareholder pursuant to the Securities Law and to prepare such required disclosure; or (ii) as may otherwise be required by law pursuant to any lawful demand of any competent regulatory authority, provided that, without limitation of Section 3 above, the Shareholder promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

 

4.2.                           The Shareholder acknowledges that any information received from the Company under this letter may be deemed material nonpublic information that has not been disclosed to the public, and such Shareholder is prohibited from (i) trading in the Company’s securities, including but not limited to, puts, calls, warrants, options and convertible securities whether or not issued by the Company (a “Derivative Security”), (ii) advising others to trade or to refrain from trading in the Company’s securities or Derivative Securities, or (iii) disclosing the material information to any other person for the purpose of enabling such person to trade or to refrain from trading in the Company’s securities or Derivative Securities. This Section 4 shall survive the expiration and/or termination of this Agreement, and shall remain in effect until the information is fully disclosed to the public or until the information, although not disclosed, ceases to be material.

 

5.                            Successors and Assigns.

 

The rights and obligations under this Agreement may not be assigned by either party hereto without the consent of the other party.

 

6.                            Governing Law; Jurisdiction.

 

This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal laws of the State of Israel, without regard to conflict of law principles that would result in the application of any law other than the law of the Sate of the State of Israel. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the competent courts of Tel Aviv-Jaffa, Israel for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the competent courts of Tel Aviv-Jaffa, Israel.

 

7.                            Counterparts; Facsimile.

 

This Agreement may be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

8.                            Titles and Subtitles.

 

The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

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9.                            Notices.

 

All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after the business day of deposit with a nationally recognized overnight courier, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as kept on record with the Company, or to such email address, facsimile number or address as subsequently modified by written notice given in accordance with this paragraph 9.

 

10.                     Consent Required to Amend or Waive.

 

This Agreement may be amended or modified and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by the Company and the Shareholder.

 

11.                     Severability.

 

The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

12.                     Entire Agreement.

 

This Agreement constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement, understanding or arrangement relating to the subject matter hereof existing between the parties are expressly canceled and shall have no further force and effect.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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Sincerely,
    
	
 
    	
 
    	
 
    
	
 
    	
MediWound Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

ACKNOWLEDGED AND ACCEPTED:

 

 

Clal Biotechnology Industries Ltd.

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

— Signature page for the Information Rights Letter —

 

5EXHIBIT 10.5

 

FORM OF INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (the “Agreement”), dated as of                , 20    , is entered into by and between MediWound Ltd., an Israeli company whose address is 42 Hayarkon Street, Yavne 81227 , Israel (the “Company”), and                , the/a [insert position of the officer] of the Company whose address is                         (the “Indemnitee”).

 

WHEREAS,                     Indemnitee is an Office Holder (“Noseh Misra”), as such term is defined in the Israeli Companies Law, 5759—1999, as amended (“Office Holder” and the “Companies Law,” respectively), of the Company;

 

WHEREAS,                     both the Company and Indemnitee recognize the increased risk of litigation and other claims being asserted against Office Holders of companies and that highly competent persons have become more reluctant to serve corporations as directors and officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, companies;

 

WHEREAS,                     the Articles of Association of the Company authorize the Company to indemnify and advance expenses to its Office Holders and provide for insurance and exculpation to its Office Holders, in each case, to the fullest extent permitted by applicable law;

 

WHEREAS,                     the Company has determined that (i) the increased difficulty in attracting and retaining competent persons is detrimental to the best interests of the Company’s shareholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future, (ii) and it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law, so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and

 

WHEREAS,                     in recognition of Indemnitee’s need for substantial protection against personal liability in order to assure Indemnitee’s continued service to the Company in an effective manner and, in part, in order to provide Indemnitee with specific contractual assurance that the indemnification, insurance and exculpation afforded by the Articles of Association will be available to Indemnitee, the Company wishes to undertake in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent permitted by applicable law and as set forth in this Agreement and provide for insurance and exculpation of Indemnitee as set forth in this Agreement.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

 

1.                            INDEMNIFICATION AND INSURANCE.

 

1.1.                             The Company hereby undertakes to indemnify Indemnitee to the fullest extent permitted by applicable law for any liability and expense specified in Sections 1.1.1 through 1.1.4 below, imposed on Indemnitee due to or in connection with an act performed by such Indemnitee, either prior to or after the date hereof, in Indemnitee’s capacity as an Office Holder, including, without limitation, as a director, officer, employee, agent or fiduciary of the Company, any subsidiary thereof or any another corporation, collaboration, partnership, joint venture, trust or other enterprise, in which Indemnitee serves at any time at the request of the Company (the “Corporate Capacity”). The term “act performed in Indemnitee’s capacity as an Office Holder” shall include, without limitation, any act, omission and failure to act and any other circumstances relating to or arising from Indemnitee’s service in a Corporate Capacity. Notwithstanding the foregoing, in the event that the Office Holder is the beneficiary of an indemnification undertaking provided by a subsidiary of the Company or any other entity [(other than a Secondary Indemnitor (as defined below))](1), with respect to his Corporate Capacity with such subsidiary or entity, then the indemnification obligations of the Company hereunder with respect to such Corporate Capacity shall only apply to the extent that the indemnification by such subsidiary or other entity does not actually fully cover the indemnifiable liabilities and expenses relating thereto. The following shall be hereinafter referred to as “Indemnifiable Events”:

 

1.1.1.                              Financial liability imposed on Indemnitee in favor of any person pursuant to a judgment, including a judgment rendered in the context of a settlement or an arbitrator’s award approved by a court. For purposes of Section 1 of this Agreement, the term “person” shall include, without limitation, a natural person, firm, partnership, joint venture, trust, company, corporation, limited liability entity, unincorporated organization, estate, government, municipality, or any political, governmental, regulatory or similar agency or body;

 

1.1.2.                              Reasonable Expenses (as defined below) expended or incurred by Indemnitee as a result of (i) an investigation or any proceeding instituted against the Indemnitee by an authority that is authorized to conduct an investigation or proceeding, and that was concluded without the filing of an indictment against the Indemnitee and without imposing on the Indemnitee a financial liability in lieu of a criminal proceeding, or that was concluded without the filing of an indictment against the Indemnitee but imposing a financial liability in lieu of a criminal proceeding in an offence that does not require proof of mens rea, or (ii) in connection with a financial sanction. In this section “conclusion of a proceeding without the filing of an indictment in a matter in which a criminal investigation has been instigated” and “financial liability in lieu of a criminal proceeding” shall have the meaning assigned to such terms under the Companies 

 

(1)  Only relevant to directors who have an additional indemnification agreement provided by their employees.

 

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Law, and the term “financial sanction” shall mean such term as referred to in Section 260(a)(1a) of the Companies Law;

 

1.1.3.                              Reasonable Expenses incurred by or charged to Indemnitee by a court, in a proceeding instituted against him by the Company or on its behalf or by another person, or in a criminal charge from which he was acquitted or in which he was convicted of an offence that does not require proof of mens rea; and

 

1.1.4.                              Any other event, occurrence or circumstances in respect of which the Company may lawfully indemnify an Office Holder of the Company (including, without limitation, indemnification with respect to the matters referred to under Section 56h(b)(1) of the Israeli Securities Law 5728-1968, as amended (the “Securities Law”)).

 

For the purpose of this Agreement, “Expenses” shall include, without limitation, attorneys’ fees and all other costs, expenses and obligations paid or incurred by Indemnitee in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in any claim relating to any matter for which indemnification hereunder may be provided. Expenses shall be considered paid or incurred by Indemnitee at such time as Indemnitee is required to pay or incur such cost or expenses, including upon receipt of an invoice or payment demand. The Company shall pay the Expenses in accordance with the provisions of Section1.3.

 

1.2.                             Notwithstanding anything herein to the contrary, the Company shall indemnify the Indemnitee under Section 1.1.1 only with respect to events described in Exhibit A hereto. The board of directors of the Company (the “Board”) has determined that the categories of events listed in Exhibit A are likely to occur in light of the operations of the Company. The maximum amount of indemnification payable by the Company under Section 1.1.1 of this Agreement with respect to all persons with respect to whom the Company undertook to indemnify under agreements substantially in the form of this Agreement (the “Indemnifiable Persons”), for the events described in Exhibit A shall be as set forth in Exhibit A hereto (the “Limit Amount”). If the applicable Limit Amount is insufficient to cover all the indemnity amounts payable with respect to all Indemnifiable Persons, then such amount shall be allocated to such Indemnifiable Persons with respect to each indemnifiable event pro rata according to the percentage of their culpability in such indemnifiable event, as finally determined by a court in the relevant claim, or, absent such determination or in the event such persons are parties to different claims, based on an equal pro rata allocation among the Indemnifiable Persons who are indemnified with respect to such indemnifiable event. The Limit Amount payable by the Company as described in Exhibit A is deemed by the Company to be reasonable in light of the circumstances. The indemnification provided under Section 1.1.1 herein shall not be subject to the limitations imposed by this Section 1.2 and Exhibit A if and to the extent such limits are no longer required by the Companies Law.

 

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1.3.                             If so requested by Indemnitee, and subject to the Company’s repayment and reimbursements rights set forth in Sections 3 and 5 below, the Company shall pay amounts to cover Indemnitee’s Expenses with respect to which Indemnitee is entitled to be indemnified under Section 1.1 above, as and when incurred. The payments of such amounts shall be made by the Company directly to the Indemnitee’s legal and other advisors, as soon as practicable, but in any event no later than fifteen (15) days after written demand by such Indemnitee therefor to the Company, and any such payment shall be deemed to constitute indemnification hereunder. As part of the aforementioned undertaking, the Company will make available to Indemnitee any security or guarantee that Indemnitee may be required to post in accordance with an interim decision given by a court, governmental or administrative body, or an arbitrator, including for the purpose of substituting liens imposed on Indemnitee’s assets.

 

1.4.                             The Company’s obligation to indemnify Indemnitee and advance Expenses in accordance with this Agreement shall be for such period (the “Indemnification Period”) as Indemnitee shall be subject to any actual, possible or threatened claim, action, suit, demand or proceeding or any inquiry or investigation, whether civil, criminal or investigative, arising out of the Indemnitee’s service in the Corporate Capacity as described in Section 1.1 above, whether or not Indemnitee is still serving in such position.

 

1.5.                             Without derogating from the Company’s obligations to indemnify Indemnitee as provided herein, the Company undertakes that, subject to the mandatory limitations under applicable law, as long as it may be obligated to provide indemnification and advance Expenses under this Agreement, the Company will purchase and maintain in effect directors and officers liability insurance, which will include coverage for the benefit of the Indemnitee, providing coverage in amounts as reasonably determined by the Board; provided that, the Company shall have no obligation to obtain or maintain directors and officers insurance policy if the Company determines in good faith that such insurance is not reasonably available, the premium costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited by exclusions that it provides an insufficient benefit. The Company hereby undertakes to notify the Indemnitee thirty (30) days prior to the expiration or termination of the directors and officers’ liability insurance.

 

1.6.                             Without derogating from the Company’s obligations to indemnify Indemnitee as provided herein, the Company undertakes to give prompt written notice of the commencement of any claim hereunder to the insurers in accordance with the procedures set forth in each of the policies. The Company shall thereafter diligently take all actions reasonably necessary under the circumstances to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies. The above shall not derogate from Company’s authority to freely negotiate or reach any compromise with the insurer which is reasonable in the 

 

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Company’s sole discretion provided that the Company shall act in good faith and in a diligent manner.

 

2.                             SPECIFIC LIMITATIONS ON INDEMNIFICATION.

 

Notwithstanding anything to the contrary in this Agreement, the Company shall not indemnify or advance Expenses to Indemnitee with respect to (i) any act, event or circumstance with respect to which it is prohibited to do so under applicable law, or (ii) a counter claim made by the Company or in its name in connection with a claim against the Company filed by the Indemnitee.

 

3.                             REPAYMENT OF EXPENSES.

 

3.1.                             In the event that the Company provides or is required to provide indemnification with respect to Expenses hereunder and at any time thereafter the Company determines, based on advice from its legal counsel, that the Indemnitee was not entitled to such payments, the amounts so indemnified by the Company will be promptly repaid by Indemnitee, unless the Indemnitee disputes the Company’s determination, in which case the Indemnitee’s obligation to repay to the Company shall be postponed until such dispute is resolved in a manner that is final and unappealable.

 

3.2.                             Indemnitee’s obligation to repay to the Company for any Expenses or other sums paid hereunder shall be deemed a loan given to Indemnitee by the Company subject to the minimum interest rate prescribed by Section 3(9) of the Income Tax Ordinance [New Version], 1961, or any other legislation replacing it, which is not considered a taxable benefit.

 

4.                             SUBROGATION.

 

4.1.                             Except as set forth in Section 4.2 below, in the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

 

4.2.                             The Company hereby acknowledges that Indemnitee may have from time to time certain rights to indemnification, advancement of expenses and/or insurance provided by shareholder(s) of the Company and certain of its affiliates (collectively, the “Secondary Indemnitors”).  The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Secondary Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the Articles of Association of the Company (or any other agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Secondary Indemnitors, and, (iii) that it irrevocably waives, relinquishes and releases the Secondary Indemnitors from any and all claims against the Secondary Indemnitors for contribution, subrogation or any other recovery of any kind 

 

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in respect thereof.  The Company further agrees that no advancement or payment by the Secondary Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Secondary Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company. The Company and Indemnitee agree that the Secondary Indemnitors are express third party beneficiaries of the terms of this Section 4.2.

 

5.                             REIMBURSEMENT.

 

Except as set forth in Section 4.2 above, the Company shall not be liable under this Agreement to make any payment in connection with any Indemnifiable Event to the extent Indemnitee has otherwise actually received payment under any insurance policy or otherwise (without any obligation of Indemnitee to repay any such amount) of the amounts otherwise indemnifiable hereunder.

 

Any amounts paid to Indemnitee under such insurance policy or otherwise after the Company has indemnified Indemnitee for such liability or Expense shall be repaid to the Company promptly upon receipt by Indemnitee.

 

6.                             EFFECTIVENESS.

 

The Company represents and warrants that this Agreement is valid, binding and enforceable in accordance with its terms and was duly adopted and approved by the Company, and shall be in full force and effect immediately upon its execution. 

 

7.                             NOTIFICATION AND DEFENSE OF CLAIM.

 

Indemnitee shall notify the Company of the commencement of any action, suit or proceeding, and of the receipt of any notice or threat that any such legal proceeding has been or shall or may be initiated against Indemnitee (including any proceedings by or against the Company and any subsidiary thereof), promptly upon Indemnitee first becoming so aware; but the omission so to notify the Company will not relieve the Company from any liability which it may have to Indemnitee under this Agreement unless and to the extent that such failure to provide notice materially and adversely prejudices the Company’s ability to defend such action. Notice to the Company shall be directed to the Chief Executive Officer or Chief Financial Officer of the Company at the address shown in the preamble to this Agreement (or such other address as the Company shall designate in writing to Indemnitee). With respect to any such action, suit or proceeding as to which Indemnitee notifies the Company of the commencement thereof and without derogating from Sections 1.1 and 2:

 

7.1.                             The Company will be entitled to participate therein at its own expense.

 

7.2.                             Except as otherwise provided below, the Company, alone or jointly with any other indemnifying party similarly notified, will be entitled to assume the defense thereof, with counsel selected by the Company which counsel is reasonably reputable with experience in the relevant field. Indemnitee shall have the right to employ his or her own counsel in such action, suit or proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the 

 

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expense of Indemnitee, unless: (i) the employment of counsel by Indemnitee has been authorized in writing by the Company; (ii) Indemnitee reasonably claims that there may be a conflict of interest between the Company and Indemnitee in the conduct of the defense of such action; or (iii) the Company has not in fact employed counsel to assume the defense of such action, in which cases the reasonable fees and expenses of counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Company or as to which the Indemnitee reasonably makes the claim specified in (ii) above. The counsel appointed by the Company shall act and shall owe its duty of loyalty to the Indemnitee and to the Company.

 

7.3.                             The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts or expenses paid in connection with a settlement of any action, claim or otherwise, effected without the Company’s prior written consent.

 

7.4.                             The Company shall have the right to conduct the defense as it deems fit in its sole discretion (provided that the Company shall conduct the defense in good faith and in a diligent manner), including the right to settle or compromise any claim or to consent to the entry of any judgment against Indemnitee without the consent of the Indemnitee, provided that, the amount of such settlement, compromise or judgment does not exceed the Limit Amount (if applicable) and is fully indemnifiable pursuant to this Agreement (subject to Section 1.2 of this Agreement) and/or applicable law, and any such settlement, compromise or judgment does not impose any penalty or limitation on Indemnitee without the Indemnitee’s prior written consent. The Indemnitee’s consent shall not be required if the settlement includes a complete release of Indemnitee, does not contain any admission of wrong-doing by Indemnitee, and includes monetary sanctions only as provided above. In the case of criminal proceedings the Company and/or its legal counsel will not have the right to plead guilty or agree to a plea-bargain in the Indemnitee’s name without the Indemnitee’s prior written consent. Neither the Company nor Indemnitee will unreasonably withhold or delay their consent to any proposed settlement.

 

7.5.                             Indemnitee shall fully cooperate with the Company and shall give the Company all information and access to documents, files and to his advisors and representatives as shall be within Indemnitee’s power, in every reasonable way as may be required by the Company with respect to any claim which is the subject matter of this Agreement and in the defense of other claims asserted against the Company (other than claims asserted by Indemnitee), provided that the Company shall cover all expenses, costs and fees incidental thereto such that the Indemnitee will not be required to pay or bear such expenses, costs and fees.

 

8.                             EXCULPATION.

 

Subject to the provisions of the Companies Law, the Company hereby releases, in advance, the Office Holder from liability to the Company for any damage that arises from the breach of the Office Holder’s duty of care to the Company (within the meaning of such terms under Sections 252 and 253 of the Companies Law), 

 

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other than breach of the duty of care towards the Company in a distribution (as such term is defined in the Companies Law).

 

9.                             NON-EXCLUSIVITY.

 

The rights of the Indemnitee hereunder shall not be deemed exclusive of any other rights Indemnitee may have under the Company’s Articles of Association, applicable law, the prior indemnification agreement, entered into effective as of                       , by and between the Indemnitee and the Company (the “Prior Indemnification Agreement”), or otherwise, and to the extent that during the Indemnification Period either (i) the indemnification rights of the then-serving directors and officers are more favorable to such directors or officers or (ii) the Indemnitee’s rights under the Prior Indemnification Agreement are, in any way, in whole or in part, more favorable to Indemnitee, in each case, than the indemnification rights provided under this Agreement to Indemnitee, Indemnitee shall be entitled to the full benefits of such more favorable indemnification rights to the extent permitted by law.

 

10.                       PARTIAL INDEMNIFICATION.

 

If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred by Indemnitee in connection with any proceedings, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled under any provision of this Agreement. Subject to the provisions of Section 5 above, any amount received by Indemnitee (under any insurance policy or otherwise) shall not reduce the Limit Amount hereunder and shall not derogate from the Company’s obligation to indemnify the Indemnitee in accordance with the provisions of this Agreement up to the Limit Amount, as set forth in Section 1.2.

 

11.                       BINDING EFFECT.

 

This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. In the event of a merger or consolidation of the Company or a transfer or disposition of all or substantially all of the business or assets of the Company, the Indemnitee shall be entitled to the same indemnification and insurance provisions as the most favorable indemnification and insurance provisions afforded to the then-serving Office Holders of the Company. In the event that in connection with such transaction the Company purchases a directors and officers’ “tail” or “run-off” policy for the benefit of its then serving Office Holders, then such policy shall cover Indemnitee and such coverage shall be deemed to be in satisfaction of the insurance requirements under this Agreement. This Agreement shall continue in effect during the Indemnification Period regardless of whether Indemnitee continues to serve in a Corporate Capacity.

 

Any amendment to the Companies Law, the Securities Law or other applicable law adversely affecting the right of the Indemnitee to be indemnified, insured or released pursuant hereto shall be prospective in effect, and shall not affect the Company’s obligation or ability to indemnify or insure the Indemnitee for any act 

 

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or omission occurring prior to such amendment, unless otherwise provided by applicable law.

 

12.                       SEVERABILITY.

 

The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.  If any provision of this Agreement, or the application thereof or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

13.                       NOTICE.

 

All notices and other communications pursuant to this Agreement shall be in writing and shall be deemed provided if delivered personally,  sent by electronic facsimile, electronic mail, reputable overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the addresses shown in the preamble to this Agreement, or to such other address as the party to whom notice is to be given may have furnished to the other party hereto in writing in accordance herewith. Any such notice or communication shall be deemed to have been delivered and received (i) in the case of personal delivery, on the date of such delivery, (ii) in the case of an electronic facsimile or electronic mail, one business day after the date of transmission if confirmation of receipt is received, (iii) in the case of a reputable overnight courier, three business days after deposit with such reputable overnight courier service, and (iv) in the case of mailing, on the seventh business day following that on which the mail containing such communication is posted.

 

14.                       GOVERNING LAW; JURISDICTION.

 

This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect to the conflicts of law provisions of those laws. The Company and Indemnitee each hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of Tel Aviv, Israel for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.

 

15.                       ENTIRE AGREEMENT AND TERMINATION.

 

This Agreement represents the entire agreement between the parties hereto and supersedes any other agreements, contracts or understandings between the parties, whether written or oral, with respect to the subject matter of this Agreement.

 

For the avoidance of doubt, it is hereby clarified that nothing contained herein derogates from the Company’s right upon its sole discretion, subject to applicable law and the Articles of Association of the Company, to indemnify Indemnitee post factum for any amounts which Indemnitee may be obligated to pay as set forth herein without the limitations set forth in Exhibit A below (which limitations, for the avoidance of doubt, apply only to paragraph 1.1.1).

 

9

 

16.                       INTERPRETATION.

 

The obligations of the Company as provided hereunder shall be interpreted broadly and in a manner that shall facilitate its execution, to the extent permitted by law, and for the purposes for which it was intended.

 

17.                       NO MODIFICATION AND NO WAIVER.

 

No supplement, modification or amendment, termination or cancellation of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. Any waiver shall be in writing. The Company hereby undertakes not to amend its Articles of Association in a manner which will adversely affect the provisions of this Agreement.

 

18.                     ASSIGNMENTS; NO THIRD PARTY RIGHTS

 

Neither party hereto may assign any of its rights or obligations hereunder except with the express prior written consent of the other party. Nothing herein shall be deemed to create or imply an obligation for the benefit of a third party, other than as provided under Section 4.2 above. Without limitation of the foregoing, nothing herein shall be deemed to create any right of any insurer that provides directors and officers’ liability insurance, to claim, on behalf of Indemnitee, any rights hereunder.

 

19.                     COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument; it being understood that parties need not sign the same counterpart. The exchange of an executed Agreement (in counterparts or otherwise) by facsimile or by electronic delivery in pdf format shall be sufficient to bind the parties to the terms and conditions of this Agreement, as an original.

 

[SIGNATURE PAGE FOLLOWS]

 

10

 

 

IN WITNESS WHEREOF, the parties, each acting under due and proper authority, have executed this Indemnification Agreement as of the date first mentioned above, in one or more counterparts.

 

 

	
MediWound Ltd.
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name   and title:
    	
 
    	
 
    

 

 

	
[Indemnitee]
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    

 

11

 

EXHIBIT A*

 

	
 
    	
 
    	
CATEGORY OF INDEMNIFIABLE EVENT
    	
 
    	
LIMIT AMOUNT PER
   EACH SPECIFIC
   EVENT WITHIN THIS
   CATEGORY OF
   EVENTS
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Claims in connection with employment relationships with   and/or by employees of the Company, and in connection with business relations   between the Company and its employees, independent contractors, customers,   suppliers and various service providers.
    	
 
    	
The greater of (a) twenty-five percent (25%) of   the Company’s total shareholders’ equity according to the Company’s most   recent financial statements as of the time of the actual payment of   indemnification and (b) $25,000,000 (the “Maximum Amount”)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Negotiations, execution, delivery and performance of   agreements of any kind or nature, anti-competitive acts,acts of commercial   wrongdoing, approval of corporate actions including the approval of the acts   of the Company’s management, their guidance and their supervision, actions   concerning the approval of transactions with Office Holders or shareholders,   including controlling persons and claims of failure to exercise business   judgment and a reasonable level of proficiency, expertise and care with   respect to the Company’s business.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Violation, infringement and other misuse of copyrights,   patents, designs, trade secrets and any other intellectual property rights,   breach of confidentiality obligations, acts in regard of invasion of privacy   including with respect to databases, acts in connection with slander and   defamation, and claims in connection with publishing or providing any   information, including any filings with any governmental authorities, whether   or not required under any applicable laws.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Liabilities related to the violation, infringement and other misuse of copyrights, patents, designs,   trade secrets and any other intellectual property rights of the Company and/or any Subsidiary and its   protection, including the registration or assertion of rights to intellectual   property and the defense of claims related to intellectual property.
    	
 
    	
The Maximum Amount
    

 

12

 

	
 
    	
 
    	
CATEGORY OF INDEMNIFIABLE EVENT
    	
 
    	
LIMIT AMOUNT PER
   EACH SPECIFIC
   EVENT WITHIN THIS
   CATEGORY OF
   EVENTS
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Violations of securities laws of any jurisdiction,   including without limitation, fraudulent disclosure claims, failure to comply   with any securities authority or any stock exchange disclosure or other   rules and any other claims relating to relationships with investors,   debt holders, shareholders and the investment community; claims relating to   or arising out of financing arrangements, any breach of financial covenants   or other obligations towards lenders or debt holders of the Company, class   actions, violations of laws requiring the Company to obtain regulatory and   governmental licenses, permits and authorizations in any jurisdiction;   actions taken in connection with the issuance of any type of securities of   Company, including, without limitation, the grant of options to purchase any   of the same.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Liabilities arising from the   conduct of clinical trials and/or testing, development or manufacturing of   products developed or services provided by the Company and/or any Subsidiary   or in connection with the distribution, sale, marketing, license or use of   such products or services, including without limitations in connection with   professional liability and product liability claims.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
The offering of securities by the Company to the public   and/or to private investors or the offer by the Company to purchase   securities from the public and/or from private investors or other holders   pursuant to a prospectus, agreements, notices, reports, tenders and/or other   proceedings.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Events in connection with change in ownership or in the   structure of the Company, its reorganization, dissolution, or any decision   concerning any of the foregoing, including but not limited to, merger, sale   or acquisition of assets, division, change in capital.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Any claim or demand made in connection with any   transaction not in the ordinary course of business of the Company, including   the sale, lease or purchase of any assets or business.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Any claim or demand made by any third party suffering   any personal injury and/or bodily injury or damage to business or personal   property or any other type of damage through 
    	
 
    	
The Maximum Amount
    

 

13

 

	
 
    	
 
    	
CATEGORY OF INDEMNIFIABLE EVENT
    	
 
    	
LIMIT AMOUNT PER
   EACH SPECIFIC
   EVENT WITHIN THIS
   CATEGORY OF
   EVENTS
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
any act or omission attributed to the Company, or its   employees, agents or other persons acting or allegedly acting on its behalf,   including, without limitation, failure to make proper safety arrangements for the   Company or its employees and liabilities arising from any accidental or   continuous damage or harm to the Company’s employees, its contractors, its   guests and visitors as a result of an accidental or continuous event, or   employment conditions, permanent or temporary, in the Company’s offices.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Any claim or demand made directly or indirectly in   connection with complete or partial failure, by the Company or its directors,   officers and employees, to pay, report, keep applicable records or otherwise,   of any foreign, federal, state, county, local, municipal or city taxes or   other compulsory payments of any nature whatsoever, including, without   limitation, income, sales, use, transfer, excise, value added, registration,   severance, stamp, occupation, customs, duties, real property, personal   property, capital stock, social security, unemployment, disability, payroll   or employee withholding or other withholding, including any interest, penalty   or addition thereto, whether disputed or not.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
Any administrative, regulatory,   judicial or civil actions orders, decrees, suits, demands, demand letters,   directives, claims, liens, investigations, proceedings or notices of   noncompliance or violation by any governmental entity or other person   alleging potential responsibility or liability (including potential   responsibility or liability for costs of enforcement investigation, cleanup,   governmental response, removal or remediation, for natural resources damages,   property damage, personal injuries or penalties or for contribution,   indemnification, cost recovery, compensation or injunctive relief) arising   out of, based on or related to (a) the presence of, release, spill,   emission, leaning, dumping, pouring, deposit, disposal, discharge, leaching   or migration into the environment (each a “Release”) or threatened   Release of, or exposure to, any hazardous, toxic, explosive or radioactive   substances, wastes or other pollutants, including petroleum or petroleum   distillates, asbestos or asbestos-containing material, polychlorinated   biphenyls (“PCBs”) or PCB-containing materials or equipment, radon   gas, infectious or medical wastes and all other substances or 
    	
 
    	
The Maximum Amount
    

 

14

 

	
 
    	
 
    	
CATEGORY OF INDEMNIFIABLE EVENT
    	
 
    	
LIMIT AMOUNT PER
   EACH SPECIFIC
   EVENT WITHIN THIS
   CATEGORY OF
   EVENTS
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
wastes of any nature regulated   pursuant to any environmental law, at any location, whether or not owned,   operated, leased or managed by the Company or any of its subsidiaries, or   (b) circumstances forming the basis of any violation of any   environmental law or environmental permit, license, registration or other   authorization required under applicable environmental law.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
Any administrative, regulatory   or judicial actions, orders, decrees, suits, demands, demand letters,   directives, claims, liens, investigations, proceedings or notices of   noncompliance or violation by any governmental entity or other person   alleging the failure to comply with any statute, law, ordinance, rule,   regulation, order or decree of any governmental entity applicable to the   Company or any of its businesses, assets or operations, or the terms and   conditions of any operating certificate or licensing agreement.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
Participation and/or   non-participation at the Company’s Board meetings, bona fide expression of   opinion and/or voting and/or abstention from voting at the Company’s Board   meetings.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
Review and approval of the   Company’s financial statements, including any action, consent or approval   related to or arising from the foregoing, including, without limitations,   execution of certificates for the benefit of third parties related to the   financial statements.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
All actions, consents and   approvals relating to a distribution of dividends, in cash or otherwise.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.
    	
 
    	
Liabilities arising out of   advertising, including misrepresentations regarding the Company’s products   and unlawful distribution of emails.
    	
 
    	
The Maximum Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
18.
    	
 
    	
An announcement, a statement, including a position   taken, or an opinion or representation made in good faith by the Office   Holder in the course of his duties and in conjunction with his duties,   whether in public or in private, including during a meeting of the Board of   Directors of the Company or any of the committees of the Board of Directors   of the Company.
    	
 
    	
 
    

 

15

 

	
 
    	
 
    	
CATEGORY OF INDEMNIFIABLE EVENT
    	
 
    	
LIMIT AMOUNT PER
   EACH SPECIFIC
   EVENT WITHIN THIS
   CATEGORY OF
   EVENTS
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
19.
    	
 
    	
Money management,   management of the Company’s bank accounts in the areas of activity in which   the Company is engaged at banks, including foreign currency deposits,   securities, loans and credit facilities, credit cards, bank guarantees,   letters of credit, consultation agreements concerning investments including   with portfolio managers, hedging transactions, options, futures, and the   like.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
20.
    	
 
    	
Any action or decision in relation to protection of   work safety and/or working conditions, including with respect to provisions   of the law, procedures or standards as applicable in or outside of Israel   with relating to protection of work safety, pertaining, inter alia, to   contamination, health protection, production processes, distribution, use,   treatment, storage and transportation of certain materials, including in   connection with corporal damage, property and environmental damages.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Aggregate   Limit Amount for all events together: The greater of (a) twenty-five percent (25%) of the   Company’s total shareholders’ equity according to the Company’s most recent   financial statements as of the time of the actual payment of indemnification   and (b) $25,000,000
    	
 
    	
 
    

 

	
*
    	
Any reference in this Exhibit A to the Company   shall include the Company and any entity in which the Indemnitee serves in a   Corporate Capacity.
    

 

16

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