Document:

Exhibit 10.4

 

ISRAELI SHARE OPTION PLAN

	 

 

BiondVax Ltd.

 

THE 2005 ISRAELI SHARE OPTION PLAN

 

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

 

    	1

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	 

 

	  	
This plan, as amended from time to time, shall be known as BiondVax Ltd. 2005 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 and its Affiliates (as defined below), persons of training, experience, and ability, to attract new employees, directors, consultants, service providers and any other entities which the Board shall decide their services are considered valuable to the Company, 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 by providing them with opportunities to purchase shares in the Company, 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

	
“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.

	  	  	  
	  	
2.3

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

	  	  	  
	  	
2.4

	
“Capital Gain Option (CGO)” as defined in Section 5.4 below.

	  	  	  
	  	
2.5

	
“Cause” means, (i) conviction of any felony involving moral turpitude or adversely affecting the Company; (ii) any refusal to carry out a reasonable directive of the chief executive officer, the Board or the Optionee’s direct supervisor, which involves the business of the Company or its Affiliates and was capable of being lawfully performed; (iii) embezzlement of funds of the Company or its Affiliates; (iv) any breach of the Optionee’s fiduciary duties or duties of care of the Company; including without limitation disclosure of confidential information of the Company; and (v) any conduct (other than conduct in good faith) reasonably determined by the Board to be materially detrimental to the Company.

	  	  	  
	  	
2.6

	
“Chairman” means the chairman of the Committee.

	  	  	  
	  	
2.7

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

	  	  	  
	 	
2.8

	
“Company” means BiondVax Ltd., an Israeli company.

 

    	2

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	 

 

	
2.9

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

 

	
2.10

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

 

	
2.11

	
“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.

 

	
2.12

	
“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.

 

	
2.13

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

 

	
2.14

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

 

(i)    If the Shares are listed on any established stock exchange or a national market system, including without limitation the NASDAQ National Market system, or the NASDAQ SmallCap Market of the NASDAQ Stock Market, 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 in the Wall Street Journal, 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;

 

(ii)   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;

 

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

 

	
2.15

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

 

	
2.16

	
“ISOP” means this 2003 Israeli Share Option Plan.

 

	
2.17

	
“ITA” means the Israeli Tax Authorities.

 

    	3

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	 

 

	
2.18 

	
“Law” means the Companies Law of 1999 as now in effect or as hereafter amended, the Ordinance and such other law applicable to the Company or this ISOP.

 

	
2.19

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

 

	
2.20

	
“Ordinary Income Option (OIO)” as defined in Section 5.5 below.

 

	
2.21

	
”Option” means an option to purchase one or more Shares of the Company pursuant to the ISOP.

 

	
2.22

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

 

	
2.23

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

 

	
2.24

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

 

	
2.25

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

 

	
2.26

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

 

	
2.27

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

 

	
2.28

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

 

	
2.29

	
“Share” means the ordinary shares, NIS 0.000001 par value each, of the Company.

	
2.30

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

 

	
2.31

	
“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.

 

	
2.32

	
“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.

 

	
2.33

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

 

    	4

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	  	  	  
	 	 	 
	  	
2.34

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

	  	  	  
	  	
2.35

	
“Vesting Dates” means, as determined by the Board or by the Committee, the date (whether calendar or milestone based) 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 keep records of its meetings and 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. Notwithstanding the above the Board may delegate to the Committee any of its above authorities to the extent possible under, and subject to the provisions of, the Law.

	  	  	  
	  	  	
The Committee shall have full power and authority to: (i) alter any restrictions and conditions of any Options or Shares subject to any Options (ii) interpret the provisions and supervise the administration of the ISOP; (iii) accelerate the right of an Optionee to exercise in whole or in part, any previously granted Option; (iv) determine the Purchase Price of the Option; (v) prescribe, amend and rescind rules and regulations relating to the ISOP; and (vi) make all other determinations deemed necessary or advisable for the administration of the ISOP, including, without limitation, to adjust the terms of the ISOP or any Option Agreement so as to reflect (a) changes in applicable laws and (b) the laws of other jurisdictions within which the Company wishes to grant Options.

 

    	5

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	  	  	  
	 	 	 
	  	
3.4

	
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.

	  	  	  
	  	
3.5

	
Subject to the Company’s Articles of Association and the Law, all decisions and selections made by the Board or the Committee pursuant to the provisions of the ISOP shall be made by a majority of its members except that no member of the Board or the Committee shall vote on, or be counted for quorum purposes, with respect to any proposed action of the Board or the Committee relating to any Option to be granted to that member. Any decision reduced to writing shall be executed in accordance with the provisions of the Company’s Articles of Association, as the same may be in effect from time to time.

	  	  	  
	  	
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.

	  	  	  
	  	
3.7

	
Subject to the Company’s Articles of Association and the Company’s decision, and to all approvals legally required, including, but not limited to the Law, each member of the Board or the Committee shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him, 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 ISOP 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 member 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.

	  	  	  
	
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.

 

    	6

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	  	  	  
	  	  	  
	
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 15 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 (“CGO”) or Ordinary Income Option (“OIO”).

	  	  	  
	  	
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)(l) 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 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.

 

    	7

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	  	  	  
	 	 	 
	
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 has reserved 188,900 (one hundred eighty eight thousand and nine hundred) authorized but unissued Shares, for the purposes of the ISOP and for the purposes of any other share option plans which may be adopted by the Company in the future, subject to adjustment as set forth in Section 9 below. Any Shares which remain unissued and which are not subject to the outstanding Options at the termination of the ISOP shall cease to be reserved for the purpose of the ISOP, but until termination of the ISOP the Company shall at all times reserve sufficient number of Shares to meet the requirements of the ISOP. 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 an Option under the ISOP or under the Company’s other share option plans.

 

    	8

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	  	  	  
	 	 	 
	  	
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. 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 person or persons designated by the Board. Such person or persons designated by the Board 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 determined by the Committee 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 Optionee.

	  	  	  
	  	
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 or check. 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 as determined by the Committee.

	  	  	  
	
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 Transaction, the unexercised Options then outstanding under the ISOP shall be assumed or substituted for an appropriate number of shares of each class of shares or other securities of the Successor Company (or a parent or subsidiary of the Successor Company) as were distributed to the shareholders of the Company in connection and with respect to the Transaction. In the case of such assumption and/or substitution of Options, appropriate adjustments shall be made to the Purchase Price so as to reflect such action and all other terms and conditions of the Option Agreements shall remain unchanged, including but not limited to the vesting schedule, all subject to the determination of the Committee or the Board, which determination shall be in their sole discretion and final. The Company shall notify the Optionee of the Transaction in such form and method as it deems applicable at least ten (10) days prior to the effective date of such Transaction.

 

    	9

    	 

    
 

 

ISRAELI SHARE OPTION PLAN

	 	 	 
	  	  	  
	  	
9.2

	
Notwithstanding the above and subject to any applicable law, the Board or the Committee shall have full power and authority to determine that in certain Option Agreements there shall be a clause instructing that, if in any such Transaction as described in section 9.1 above, the Successor Company (or parent or subsidiary of the Successor Company) does not agree to assume or substitute for the Options, the Vesting Dates shall be accelerated so that any unvested Option or any portion thereof shall be immediately vested as of the date which is ten (10) days prior to the effective date of the Transaction.

	 	 	 
	  	
9.3

	
For the purposes of section 9.1 above, an Option shall be considered assumed or substituted if, following the Transaction, the Option confers the right to purchase or receive, for each Share underlying an Option immediately prior to the Transaction, the consideration (whether shares, options, cash, or other securities or property) received in the Transaction by holders of shares held on the effective date of the Transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the Transaction is not solely ordinary shares (or their equivalent) of the Successor Company or its parent or subsidiary, the Committee may, with the consent of the Successor Company, provide for the consideration to be received upon the exercise of the Option to be solely ordinary shares (or their equivalent) of the Successor Company or its parent or subsidiary equal in Fair Market Value to the per Share consideration received by holders of a majority of the outstanding shares in the Transaction; and provided further that the Committee may determine, in its discretion, that in lieu of such assumption or substitution of Options for options of the Successor Company or its parent or subsidiary, such Options will be substituted for any other type of asset or property including cash which is fair under the circumstances.

	  	  	  
	  	
9.4

	
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 liquidation, and the Option holders shall then have ten (10) days to exercise any unexercised Vested Option held by them at that time, in accordance with the exercise procedure set forth herein. Upon the expiration of such ten-days period, all remaining outstanding Options will terminate immediately.

	  	  	  
	  	
9.5

	
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.

 

    	10

    	 

    
 

	 	  	 
	 	
ISRAELI SHARE OPTION PLAN

 

	 

	 	 	 
	  	
9.6

	
Anything herein to the contrary notwithstanding and subject to Company’s Articles of Association and the Law, 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.

	  	  	  
	  	
9.7

	
The Optionee acknowledges that in the event that the Company’s shares shall be registered for trading in any public market, Optionee’s rights to sell the Shares may be subject to certain limitations (including a lock-up period), as will be requested by the Company or its underwriters, and the Optionee unconditionally agrees and accepts any such limitations.

	  	  	  
	
10.

	
TERM AND EXERCISE OF OPTIONS

	 	 
	  	
10.1

	
Options shall be exercised by the Optionee by giving written notice to the Company and/or to any third party designated by the Company (the “Representative”), 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/or the Representative and the payment of the Purchase Price at the Company’s or the Representative’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 the earlier of: (i) the date set forth in the Option Agreement; and (ii) 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.

 

    	11

    	 

    
 

 

	 	  	 
	 	
ISRAELI SHARE OPTION PLAN

 

	 

	 	  	  	  
	 	 
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 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:

	 	  	  
	 	  	
(i)

	
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; or-

	 	  	  	  
	 	  	
(ii)

	
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 -

	 	  	  	  
	 	  	
(iii)

	
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.

	 	  	  	  
	 	  	
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 of the ISOP.

	 	  	  	  
	 	
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.

 

    	12

    	 

    
 

 

	 	  	 
	 	
ISRAELI SHARE OPTION PLAN

 

	 

	 	 	 
	
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.

	  	
11.2

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

	  	  	  
	
12.

	
SHARE 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 received by it pursuant to the exercise of an Option granted pursuant to this ISOP.

	  	  	  
	  	
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 as described in the Company’s Article of Association.

	  	  	  
	
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.

	
RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS

	  	  	  
	  	
14.1

	
No Option or any right with respect thereto, purchasable hereunder, whether fully paid or not, shall be assignable, transferable or given as collateral or any right with respect to it given to any third party whatsoever, except as specifically allowed under the ISOP, and during the lifetime of the Optionee each and all of such Optionee’s rights to purchase Shares hereunder shall be exercisable only by the Optionee.

 

    	13

    	 

    
 

	 	  	 
	 	
ISRAELI SHARE OPTION PLAN

 

	 

	  	  	  
	  	  	
Any such action made directly or indirectly, for an immediate validation or for a future one, shall be void.

	  	  	  
	  	
14.2

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

	  	  	  
	
15.

	
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 including without limitation the US securities law or the securities laws of other jurisdiction applicable to Options granted to Optionees under this ISOP, or if shareholders’ approval is required by any authority or by any governmental agencies or national securities exchanges including without limitation the US Securities and Exchange Commission.

	  	  	  
	
16.

	
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.

	  	  	  
	
17.

	
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 of the United States or any other State having jurisdiction over the Company and the Optionee, including the registration of the Shares under the United States Securities Act of 1933, 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.

 

    	14

    	 

    
 

 

	 	  	 
	 	
ISRAELI SHARE OPTION PLAN

 

	 

	  	  	  
	
18.

	
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.

	  	  	  
	
19.

	
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.

	  	  	  
	
20.

	
TAX CONSEQUENCES

	  	  	  
	  	
20.1

	
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 under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Optionee shall 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.

	  	  	  
	  	
20.2

	
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.

	  	  	  
	
21.

	
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.

 

    	15

    	 

    
 

 

	 	  	 
	 	
ISRAELI SHARE OPTION PLAN

 

	 

	  	  
	
22.

	
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.

 

**********

 

    	16Exhibit 10.5

 

MANAGEMENT SERVICES AGREEMENT

 

THIS AGREEMENT is made as of the 1st day of April, 2007 (the “Effective Date”) 

 

BETWEEN:

 

BiondVax Pharmaceuticals Ltd.

an Israeli Company No.51-3436105, 

(the “Company”) 

of 54 Bialik Ave. 

47205 Ramat- Ha’Sharon 

ISRAEL

 

And

 

Ron Executive Ltd.,

an Israeli Company No.512361403, wholly owned by the Contractor

(the “Contractor”)

of 54 Bialik Ave.

47205 Ramat Ha’Sharon

ISRAEL

	 	 	 
	WHEREAS	
the parties desire to enter into this Agreement setting forth the terms and conditions pursuant to which the Company shall retain from the Contractor management Services as an independent sub-contractor of the Company, to be provided exclusively by Ron Babecoff (“Babecoff”) effective as of the Effective Date; and 

	WHEREAS 	the parties further agree that upon the Effective Date the previous Management Services Agreement (the “Previous Agreement”) between the parties hereunder, dated March 27, 2005 shall terminate;
	 	 	 
	 	 	
NOW, THEREFORE, the parties hereto agree as follows:

	 	 	 
	
1. 

	Contracting Agreement
	 	 
	 	
This Agreement shall exclusively determine the terms of the rendering of the Contractor’s Services by the Company. This Agreement shall be binding upon the parties, and shall not be subject to any other agreements or arrangements of any kind.

	 	 
	2.	Independent Contractor Services.
	 	 
	 	2.1	
The Company hereby retains the Contractor’s Services, as defined in Section 4 herein. The Contractor agrees and undertakes that the Services shall be provided exclusively by Babecoff, which undertaking is a fundamental team of this Agreement. None of the Services may be delegated, assigned, or subcontracted by the Contractor to others without the prior written consent of the Company.

 

 

    	  

    	 

    
 

 

	 	 	 
	 	
2.2

	
It is hereby agreed that such Services shall be performed under and pursuant to the terms and conditions hereinafter set forth. The Contractor hereby represents in favor of the Company that no provision of any law, regulation, agreement or other document prohibits it from entering into this Agreement.

	 	 	 
	 	
2.3

	
The Contractor agrees that Contractor shall act (and has acted pursuant to the Previous Agreement) as an independent contractor in the performance of the duties under this Agreement and that nothing contained herein (or in the Previous Agreement) shall create (or has created) or be construed to create an employer-employee relationship between the Company and the Contractor and/or Babecoff and that the Contractor shall not be entitled to any Company employment rights or benefits. In the event that any court will determine that employer-employee relationship existed between the Company and/or Babecoff, any payments paid to the Contractor under this Agreement (or under the Previous Agreement) shall be deemed in lieu of any payments due to Babecoff under any applicable employment law, had he been an employee of the Company including without limitation any payments for or in lieu of severance, vacation, sick leave, convalescence, management insurance or similar like payments made to employees and not to contractors.

	 	 	 
	 	
2.4

	
Without prejudice to the generality of Section 2.3 above, if any judicial instance shall determine following the date hereof that Babecoff has been rendering his Services as an “employee” to the Company pursuant to the terms of this Agreement or the Previous Agreement (albeit the specific opposite arrangement contemplated herein and therein) and therefore that Babecoff is eligible to receive various terms and/or social benefits as if he was employed by the Company – the parties hereby specifically agree that the monthly salary which presumably is owed by the Company to Babecoff, shall be calculated as 60% (sixty percent) of the total average monthly consideration paid by the Company to the Contractor hereunder, or as the case may be, under the Previous Agreement (“Agreed Salary”). The Contractor and Babecoff, severally and jointly will refund the Company on the date of such judicial determination, with an amount equal to the total surplus payments which Contractor received from the Company beyond the Agreed Salary.

	 	 	 
	 	
2.5

	
Without derogating from the above, in any case Babecoff will bring such claims the Company will have the right to set-off any payment due to the Contractor against the sums due to the Company and/or Babecoff, as a result of the above. 

	 	 	 
	3.	Term
	 	 
	 	
The period of renders of Services by the Contractor to the Company pursuant to the terms hereunder shall commence as of the Effective Date and shall remain n full force and effect for a period of 60 months, unless terminated earlier as provided in Section 6 hereof (such term being referred to herein as the “Contracting Period”).

 

 

    	  

    	 

    
 

 

	 	 	 
	4.	
Scope of Services and Duties; Exclusive Services.

	 	 	 
	 	
Contractor undertakes that Babecoff will provide the Company with the following Services during the Contracting Period (the “Services”):

	 	 	 
	 	
4.1  

	
During the Contracting Period, Babecoff shall serve as the President and CEO of the Company.

	 	 	 
	 	
4.2  

	
It is agreed that Babecoff will devote all of his working time and efforts to the performance of his duties.

	 	 	 
	 	
4.3  

	
During the Contracting Period, Contractor and/or Babecoff shall not, without the prior written authorization of the Company, directly or indirectly render Services of a business, professional or commercial nature (whether for compensation or otherwise) to any person or entity other than the Company.

	 	 	 
	 	
4.4  

	
The Contractor and/or Babecoff shall not, directly or indirectly, accept any commission, rebate, discount, or gratuity in cash or in kind, from any person other than Company, in any connection with his contractor relationship with the Company.

	 	 	 
	 	
4.5  

	
In the event that the Contractor shall discover that it and/or Babecoff has or might have at some point in the future any conflict of interest with the Company and/or with the duties required of him by virtue of his contractor relationship with the Company, the Contractor shall, as soon as possible, so inform the Company in writing, immediately upon such discovery.

	 	 	 
	5.	
Consideration and Related Matters.

	 	 	 
	 	
5.1

	
Monthly Fees. As consideration for the performance by the Contractor of its obligations hereunder, during the Contracting Period, the Company shall pay the Contractor monthly fees at the rate of 40,376 (forty thousand and three and seventy six NIS) per month plus VAT (the “Fees”). The Fees for each month shall be payable in arrears within ten (10) Calendar days of the first day of the following calendar month, against a proper tax invoice to be issued by the Contractor.

	 	 	 
	 	 	
It is agreed that the Contractor’s Fees shall increase by 5% per year.

	 	 	 
	 	
5.2

	
Expenses. The Company shall promptly reimburse the Contractor, for all reasonable business expenses incurred during the Contracting Period by the Contractor in performing the Services hereunder, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company.

 

 

    	  

    	 

    
 

 

	 	 	 
	 	
5.3

	
Payment for Previous Consulting Period. The Company shall pay the Contractor by not later than April 30, 2007, an amount of 29,168 NIS plus VAT, due to the Consultant as fee differentials for the service period under the Previous Agreement.

	 	 	 
	 	
5.4

	
Company Car. The Company shall make available to the Contractor an automobile of class “3” for the Contractor’s use, with all maintenance and usage expenses paid by the Company. All liability for any parking or traffic fines shall be borne by the Contractor. The Contractor shall be liable for any and all income tax liability applicable to his use of the automobile. Should the Company terminate the Contractor’s contracting relationship with the Company, the Contractor shall be required to return possession of such automobile, together with all keys thereto, to the Company, within 9 month’s from receipt of notice. Should the Contractor’s contracting relationship with the Company terminate due to voluntary termination initiated by the Contractor, the Contractor shall be required to return possession of such automobile upon actual termination of his contracting relationship with the Company. The Contractor shall not have any lien over the Car and/or any of its accessories.

	 	 	 
	
6.

	Term of Agreement.
	 	 	 
	 	
6.1

	
The Company may terminate this Agreement at any time and for any reason, provided that the Contractor shall receive a written termination notice of not less than 9 months in advance.

	 	 	 
	 	
6.2

	
The Contractor may terminate his contracting relationship with the Company under this Agreement, upon 90 (ninety) days’ prior written notice.

	 	 	 
	 	
6.3

	
In the event of termination under Sections 6.1 or 6.2 above either by the Company or Contractor, the Company may at its sole discretion shorten all or part of the notice period, terminate immediately the Contractor’s Contracting relationship with the Company and pay the Contractor its Fees (as defined in section 5.1 above) with respect to the remainder of the notice period.

	 	 	 
	 	
6.4

	
The Company may immediately terminate the Contractor’s contracting relationship with the Company under this Agreement for “Cause” at any time and without derogating from any right of the Company. “Cause” shall mean: (1) a material breach by the Contractor of its obligations under this Agreement; or (2) breach of trust, malfeasance or gross negligence by the Contractor and/or Babecoff; or (3) Contractor and/or Babecoff being convicted with any felony.

	 	 	 
	 	6.5	
Transfer of services. Upon the expiration or termination of this Agreement, the Contractor will cause Babecoff to assure the smooth transfer of services to his successor, by coordinating with his successor and helping familiarize him with the Company and the nature of his position and duties.

 

 

    	  

    	 

    
 

 

	 	 	
 

	
7. 

	Confidential Information; Inventions; Non-competition.
	 	 	 
	 	
7.1  

	
Confidential Information. In consideration of the Company’s agreements hereunder, and in further consideration of the benefits accruing to the Contractor hereunder, the Contractor agrees and undertakes that the Contractor and/or Babecoff shall not, directly or indirectly, disclose or use at any time, either during or subsequent to the Contracting Period, any trade secrets or any other information which is not known to the public (collectively, “Confidential Information”), of which the Contractor and Contractor are or become informed or aware during the Contracting Period. Confidential information also includes, marketing plans, business plans, strategies, forecasts, unpublished financial information, budgets, projections, product plans, pricing, tenders and any price sensitive information, personnel information, including organizational structure, salary, and qualifications of Contractors, customer and supplier information, including identities, product sales and purchase history or forecasts and agreements and the terms and provision of this Agreement.

 

Upon termination of the Contracting Period, or at any other time upon request of the Company, the Contractor and Babecoff ( shall promptly deliver to the Company all physical and electronic copies and other embodiments of Confidential Information and all memoranda, notes, notebooks, records, reports, manuals, drawings, blueprints and any other documents or things belonging to the Company, and all copies thereof, in all cases, which are in the possession or under the control of the Contractor and/r Babecoff. The Contractor agrees that the return of such materials and any other equipment made available to the Contractor and/r Babecoff by the Company shall be a condition to receiving any benefits and amounts payable to the Contractor upon termination.

	 	 	 
	 	
7.2  

	
Inventions and Discoveries. All and any work products of the Contractor and Babecoff in the scope of the Services provided Services to the Company hereunder, including any business plan, patent, invention, development, idea, technology, methods of work, processes, research data, improvements and future products (hereinafter referred to as an “Invention”) which are invented or developed by or in cooperation with Babecoff during the term of the Contractor’s contracting relationship with the Company shall be wholly owned by the Company, and the Company shall be entitled to deal therewith as it desires and register and/or disseminate the Invention in its name. The Contractor shall assist the Company in everything necessary in order to present, disseminate and/or register its rights in such an invention, both in Israel and abroad, and shall execute every document required in such connection even after the termination of its contracting relationship with the Company insofar as necessary. The Contractor and Babecoff irrevocably appoint the Company as their attorney in fact in their name and on their behalf to execute all documents and do all things required in order to give full effect to the provisions of this Section. The duty of confidentiality in Section 7.1 shall also apply to any such Invention.

 

 

    	  

    	 

    
 

 

	 	 	 
	 	
7.3

	
Non-competition Covenant. Without derogating from sub- Paragraphs 7.1 and 7.2 above, the Contractor agrees and undertakes that at all times during the Contracting Period and thereafter until the twelfth month from the termination of the contracting relationship with the Company for any reason (the “Non-competition Period”), the Contractor and Babecoff shall not, except on behalf of the Company, directly or indirectly, Participate in any Competitive Business (as each of such terms is defined below).

 

For purposes of this Agreement, the term “Participate” means to have any direct or indirect interest, participation or involvement, whether as an officer, director, employee, partner, sole proprietor, agent, representative, independent contractor, consultant, franchiser, franchisee, creditor, owner, stockholder or otherwise; provided, however, that the foregoing shall not prevent the Contractor or Contractor from investing in publicly traded securities issued by any corporation, provided the holdings thereof by the Contractor or Contractor do not constitute more than five percent (5%) of outstanding shares, so long as the Contractor or Contractor do not have any participation in the business management of such entity.

 

For the purposes of this Agreement the term “Competitive Business” means any enterprise, venture or proprietorship engaged in or which proposes to engage in the development, manufacture, sale, licensing and/or distribution of any information, products and/or Services that are the same as or substantially similar to the information, products and/or Services provided (or in development and proposed to be provided) by any business unit or division within the Company in which the Contractor provided Services prior to the termination of the Contracting Period for any reason.

	 	 	 
	 	
7.4  

	
Non-Solicitation of Employees. The Contractor recognizes that the Contractor and/or Babecoff will possess confidential information about employees and other contractors of the Company, relating to their education, experience, skills, abilities, compensation and benefits, and inter-personal relationships with customers of the Company. The Contractor recognizes and undertakes that the information the Contractor and/or Babecoff will possess about these employees and other contractors is not generally known, is of substantial value to the Company in developing their business and in securing and retaining customers, and has been and will be acquired by him because of his business position with the Company.

 

 

    	  

    	 

    
 

 

	 	 	
 

	 	 	
The Contractor undertakes that, during the Contracting Period and for a period of one (1) year thereafter, the Contractor and Babecoff will not, directly or indirectly, solicit or recruit any employee of the Company for the purpose of being employed by them or by any other on whose behalf they are acting as an agent, representative or employee and that he will not convey any such confidential information or trade secrets about employees of the Company to any other person.

	 	 	 
	 	
7.5

	
Acknowledgment. The Contractor and Contractor hereby expressly agree that the terms of this Section 7 are reasonable, in light of the provisions of this Agreement.

	 	 	 
	 	
7.6

	
The provisions of Section 7 shall remain in full force and effect following the termination of this Agreement for whatever reason.

	 	 	 
	9.	Miscellaneous.
	 	 	 
	 	
9.1

	
Modification No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Contractor and Contractor and the Company.

	 	 	 
	 	
9.2

	
Company’s Successors. As used in this Agreement, “Company” shall mean the Company as herein defined and any successor (whether direct or indirect, by purchase, merger, consolation or otherwise) to all or substantially all of the business and/or assets of the Company or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.

	 	 	 
	 	9.3	
Waiver No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar of dissimilar provisions and conditions at the same or at any prior or subsequent time.

	 	 	 
	 	9.4	
Governing Law The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Israel without regard to its conflicts of law principles.

	 	 	 
	10. 	Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in a mutually acceptable manner in order that the terms of this Agreement remain as originally contemplated to the fullest extent possible.

 

 

    	  

    	 

    
 

 

	 	
 

	11. 	
Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matters contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of the Company or any party hereto, including but not limited to the Previous Agreement; and any prior agreement of the parties hereto or of the Contractor and the Company in respect of the subject matter contained herein is hereby terminated and canceled.

	 	 	 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

	 	 	 	 	 	 	 	 	 
	/s/ Ron Babecoff	 	 	 
	Ron Executive Ltd.	 	
    BiondVax Pharmaceuticals Ltd.

	 
	 	 	 	 
	
BY: Dr. Ron Babecoff

	 	
BY: Prof. Avner Rotman 

Title: Chairman

	 
	Date:	 5/4/2007	 	 	 	
Date:

	 		 

 

Personal Undertaking & Guarantee

 

I, the undersigned, Ron Babecoff personally guarantee the complete fulfillment of all of the Contractor’s s obligations towards the Company under the foregoing Agreement and warrant the correctness of all of the Contractor’s warranties and declarations therein. I further undertake to be personally bound by the provisions of, and to personally fulfill all of the obligations set forth in foregoing.

Without derogating from any of my undertakings hereunder and the terms of the above to which I am bound, I further confirm that I am not, nor will I be, at any time during the course of providing the Services, an employee of Company and that there does not now exist, nor shall there exist during the course of providing the Services, an employer-employee relationship between myself and Company. I further agree that in the event that, despite my express declaration herein, an action be brought, or a claim made, against Company by me and or by any third party, that such an employer-employee relationship existed, and without derogating from the remedies available to Company pursuant to this Agreement and to law, Company shall be entitled to set-off the amounts to which the Company shall be entitled under the foregoing Agreement, from any and all amounts determined to be owing to me as a result of the foregoing claims and/or determinations.

	 	 	 
	/s/
Ron Babecoff 	 
	
Dr. Ron Babecoff

	 
	 	 	 
	
Date:

	  5/4/2007	 
	 	 	 

 

 

    	 

    	 

    

 

_______, 2012

To:

Ron Executive Ltd.,

54 Bialik Ave

Ramat Ha’Sharon 47205

Dear Sir,

Re: Amendment to Management Services Agreement

In connection with that certain Management Services Agreement dated April 1st, 2007 (the “Agreement”) by and between you and BiondVax Pharmaceuticals Ltd. (the “Company”), we wish to amend the Agreement as follows:

Sections 4.2 and 4.3 shall be replaced in their entirety with the following:

 

“4.2 Babecoff shall provide the Services utilizing the highest professional skill, diligence, ethics and care to ensure that the Services are preformed to the reasonable satisfaction of the Company.

 

4.3 During the Contracting period (as defined below), Contractor and/or Babecoff shall be entitled to render services of a professional, commercial or advisory nature, including paid lectures, to third parties in a scope which shall not exceed 20 hours per month, subject to the provisions of this Agreement (including Section 7.3 below), and provided that such rendered services shall not interfere with the Services.”

 

The following language shall be added to the end of Section 5.1:

“5.1 It is agreed that as of January 1, 2012 and during the Contracting period (as defined below), the Fees shall be increased by 5% per year (i.e. the Fees shall be equal to, as of January 1st, 2012, to NIS 52,500 per month, and subject to further increases on the following years).”

Section 5.5 shall be added, as follows:

 

“5.5 In the event a Material Agreement (as defined below) shall be signed between the Company and a third party during the Contracting Period (as defined below), Contractor will be entitled to a one-time bonus per Material Agreement in the rate equal to 1.75% of the proceeds received by the Company resultant of the Material Agreement (the “Material Agreement Bonus”).

 

Material agreement shall be defined as: (i) an agreement or a series of Agreements, (ii) pertaining a transaction with the Company (or any other entity designated for this transaction by the Company) in connection with the sale of all or substantially all of the Company’s assets or a commercialization of one of its products in the field of business, (iii) the total proceeds received resultant of such agreement during the Contracting Period (as defined below) shall be no less than a sum of US$ 10,000,000.

 

    	  

    	 

    
 

 

Notwithstanding the aforesaid, in the event such Material Agreement is signed and executed during a period of 3 years commencing on the date of the termination of this Management Services Agreement by the Company, Contractor shall still be entitled to receive the Material Agreement Bonus.

 

The Material Agreement Bonus shall not be limited to a single Material Agreement (i.e., the Material Agreement Bonus can be resultant of two separate Material Agreements), nor shall it be limited to any maximum amount”.

Section 3 of the Agreement shall be replaced in its entirety with the following:

“3.   Term

The period of rendering of Services by the Contractor to the Company pursuant to the terms hereunder shall commence as of the Effective Date and shall remain in full force and effect for a period of 96 months, unless terminated earlier as detailed in Section 6 below (such term being referred to herein as the “Contracting Period”).”

 

Except as specifically amended herein, all terms and conditions of the Agreement shall remain in full force and effect.

	 	 
	Sincerely yours,	 
	 	
 

	BiondVax Pharmaceuticals Ltd	 
	 	 
	We hereby confirm and agree:	 
	 	 
	Ron Executive Ltd.	 
	Date:                     	 
	 	 
	Dr. Ron Babecoff	 
	 	 
	Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]