Document:

EX-10.1

EXECUTION VERSION

MERGER AGREEMENT AND PLAN OF REORGANIZATION

THIS MERGER AGREEMENT AND PLAN OF REORGANIZATION (this “Agreement”) is made and
entered as of November 7, 2012, by and among EpiCept Corporation, a Delaware corporation
(“Parent”), Epicept Israel Ltd., an Israeli company in incorporation (“Acquisition
Subsidiary”), which shall be, following incorporation, a wholly owned subsidiary of Parent, and
Immune Pharmaceuticals Ltd., an Israeli company (the “Company”).

WHEREAS, the Boards of Directors of each of Parent, Acquisition Subsidiary and the Company
have, pursuant to the laws of their respective states of incorporation, approved this Agreement and
the consummation of the transactions contemplated hereby, including the merger of Acquisition
Subsidiary with and into the Company (the “Merger”); and the Boards of Directors of each of
the Company and Acquisition Subsidiary have declared that this Agreement is advisable, fair and in
the best interests of their respective shareholders and approved the Merger upon the terms and
conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth
herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
expressly and mutually acknowledged, and intending to be legally bound hereby, the parties hereto
agree as follows:

ARTICLE I

DEFINITIONS

Unless the context otherwise requires, the terms defined in this Article I shall have the
meanings herein specified for all purposes of this Agreement, applicable to both the singular and
plural forms of any of the terms herein defined.

“Acquisition Subsidiary” shall have the meaning set forth in the Preamble.

“Affiliate” means any Person that directly or indirectly controls, is controlled by,
or is under common control with, the indicated Person. For the purpose hereof the term “control”
shall mean the holding of shares in excess of fifty percent (50%) of the voting securities of a
corporate entity.

“Agreement” shall have the meaning assigned to it in the Preamble.

“Amiket Transaction” shall mean a transaction for the sale or regional or global
out-licensing of Amiket.

“Audited Financial Statements Date” shall have the meaning assigned to it in Section
3.6.

“Business” shall have the meaning assigned to it in Section 3.2.

“Business Day” means any day, other than a Saturday or Sunday, on which the national
banks in New York, New York as a general matter are open for business for substantially all of
their banking functions.

“Certificate of Merger” shall have the meaning assigned to it in Section 2.2.

“Charter Amendments” shall mean the proposed amendments to Parent’s Amended and
Restated Certificate of Incorporation (i) to change the name of Parent to “Immune Pharmaceuticals
Inc.” and (ii) to increase the number of authorized shares of Parent Common Stock following the
Reverse Split, to an amount mutually agreed upon by Parent and the Company.

“Closing” shall have the meaning assigned to such term in Section 9.1.

“Closing Date” shall have the meaning assigned to such term in Section 9.1.

“Code” means the Internal Revenue Code of 1986, as amended.

“Company” shall have the meaning assigned to such term in the Preamble.

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

“Company Founder Shares” means the Founder Shares of the Company, nominal value NIS
0.10 per share

“Company Shares” means, collectively, all of the issued and outstanding Company
Ordinary Shares, Company Preferred Shares and Company Founder Shares.

“Company Option Plan” shall have the meaning set forth in Section 2.8(a).

“Company Ordinary Shares” means the ordinary shares of the Company, nominal value NIS
0.10 per share.

“Company Preferred Shares” means the Series A Preferred Shares of the Company, nominal
value NIS 0.10 per share.

“Company Warrants” shall mean all of the Company’s issued and outstanding warrants and
options other than options issued under the Company Option Plan.

“Contingent Obligation” means, as to any Person, any direct or indirect liability,
contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other
obligation of another Person if the primary purpose or intent of the Person incurring such
liability, or the primary effect thereof, is to provide assurance to the obligee of such liability
that such liability will be paid or discharged, or that any agreements relating thereto will be
complied with, or that the holders of such liability will be protected (in whole or in part)
against loss with respect thereto.

“Eligible Market” means the OTC QX US and NASDAQ STOCKHOLM EXCHANGE.

“Environmental Laws” means any and all Laws relating to pollution or protection of
human health or the environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata), including, without limitation, Laws relating to
emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or
toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the
environment, or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations,
codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice
letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Exchange Ratio” shall have the meaning assigned to that term in Section 2.5(b).

“Excluded Parent Options and Warrants” shall have the meaning assigned to that term in
Section 2.5(b).

“Existing Company Shareholders” means the holders of Company Shares immediately prior
to the Merger Effective Time.

“GAAP” means United States generally accepted accounting principles consistently
applied, as applicable, as in effect from time to time.

“Governmental Authority” means any foreign, federal, national, state or local
judicial, legislative, executive or regulatory body, authority or instrumentality, including,
without limitation, any such United States or Israeli authorities.

“Governmental Authorization” means any consent, license, registration, authorization
or permit issued, granted, given or otherwise made available by or under the authority of any
Governmental Authority or pursuant to any Law.

“Indebtedness” of any Person means, without duplication (A) all indebtedness for
borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of
property or services (other than trade payables entered into in the ordinary course of business),
(C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and
other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar
instruments, including obligations so evidenced incurred in connection with the acquisition of
property, assets or businesses, (E) all indebtedness created or arising under any conditional sale
or other title retention agreement, or incurred as financing, in either case with respect to any
property or assets acquired with the proceeds of such indebtedness (even though the rights and
remedies of the seller or bank under such agreement in the event of default are limited to
repossession or sale of such property), (F) all monetary obligations under any leasing or similar
arrangement which, in connection with GAAP, consistently applied for the periods covered thereby,
is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above
secured by (or for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other
encumbrance upon or in any property or assets (including accounts and contract rights) owned by any
Person, even though the Person which owns such assets or property has not assumed or become liable
for the payment of such indebtedness and (H) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (A) through (G) above.

“Investors” means the investors in the Private Placement.

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

“Laws” means any Israeli, federal, national, state, local or foreign statute, law,
ordinance, regulation, rule, code, order or other requirement or rule of law.

“Lead Investment Bank” shall mean ROTH Capital Partners, LLC.

“Letter of Transmittal” shall have the meaning assigned to it in Section 5.7.

“Libor” shall mean the applicable British Bankers Association Interest Settlement Rate
for one year maturity for US dollars deposits displayed on the appropriate page of the
Reuters screen as published on the first banking day following any relevant due date for
payment under the loan, or if not so published, then by the Financial Times of London.

“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of
any kind, including, without limitation, any conditional sale or other title retention agreement,
any lease in the nature thereof and including any lien or charge arising by Law.

“Losses” means any and all losses, claims, actions, damages, liabilities, penalties,
fines, settlement costs and expenses, including, without limitation, costs of preparation and
reasonable attorneys’ fees.“Market Price” shall have the meaning assigned to it in Section
2.5(d).

“Material Adverse Effect” means, with respect to any Person, a change (or effect) in
the condition (financial or otherwise), properties, assets, liabilities, rights, business or
results of operations of such Person, which change (or effect), individually or in the aggregate,
could reasonably be expected to be materially adverse to such condition, properties, assets,
liabilities, rights, business or results of operations.

“Material Permits” means, with respect to any Person, all certificates, authorizations
and permits issued by the appropriate Governmental Authorities necessary to conduct the business of
such Person, the lack of which would have a Material Adverse Effect.

“Merger” shall have the meaning assigned to it in the Preamble.

“Merger Effective Time” shall have the meaning assigned to it in Section 2.2.

“Merger Shares” shall have the meaning assigned to it in Section 2.5(b).

“MidCap” means MidCap Financial, Inc.

“MidCap Commitment Letter” means the letter dated November 2, 2012 from MidCap to
Parent, a copy of which has been provided to the Company, outlining the terms of MidCap’s proposed
approval of this Agreement, the Merger and the transactions contemplated herein and its proposed
amendment of the terms of the MidCap Loan.

“MidCap Loan” means the current secured loan of MidCap to Parent.

“MidCap Loan Agreement Amendment” means an amendment to the MidCap Loan substantially
on the terms set forth in the MidCap Commitment Letter.

“Parent” shall have the meaning assigned to it in the Preamble.

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

“Parent Common Stock” shall mean the common stock, par value $0.0001 per share, of
Parent.

“Parent’s Specified Liabilities” as of the Merger Effective Time shall mean the sum of
(i) Parent’s accounts payable, (ii) Parent’s accrued expenses (iii) commitments with respect
thereto and (iv) the outstanding balance of principal and accrued interest and other fees owed by
Parent to MidCap under the MidCap Loan, less (X) Parent’s cash on hand, and (Y) no more than
$600,000 on account of the legal, accounting, proxy solicitation and investment banking fees and
expenses relating to the transaction contemplated by this Agreement, and any placement agent fees
relating to the Private Placement contemplated by this Agreement, all as of the Merger Effective
Time and calculated according to US GAAP. Parent’s Specified Liabilities as of the date of the
Agreement are as specified in Exhibit A attached hereto.

“Person” means all natural persons, corporations, business trusts, associations,
unincorporated organizations, limited liability companies, partnerships, joint ventures and other
entities and Governmental Authorities or any department or agency thereof.

“Private Placement” means the offering of securities by Parent to the Investors in
connection with the Merger and the transactions contemplated herein.

“Private Placement Memorandum” means the offering memorandum to be prepared by Parent,
the Company and the Lead Investment Bank, in connection with the Private Placement.

“Private Placement Securities” means the securities of Parent to be issued in the
Private Placement.

“Proceeding” means an action, claim, suit, investigation or proceeding (including,
without limitation, an investigation or partial proceeding, such as a deposition), whether
commenced or threatened in writing.

“Reverse Split” means the reverse stock split of the Parent Common Stock in an amount
to be mutually agreed upon by Parent and the Company, to be approved by Parent’s stockholders and
effectuated prior to the Closing.

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended.

“Surviving Corporation” shall have the meaning assigned to it in Section 2.1.

“Takeover Protections” shall mean any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under an entity’s charter documents or the laws of its state of incorporation.

“Tax” or “Taxes” means (a) any and all taxes, assessments, customs, duties,
levies, fees, tariffs, imposts, deficiencies and other governmental charges of any kind whatsoever
(including, but not limited to, taxes on or with respect to net or gross income, franchise,
profits, gross receipts, capital, sales, use, ad valorem, value added, transfer, real property
transfer, transfer gains, transfer taxes, inventory, capital stock, license, payroll, employment,
social security, unemployment, severance, occupation, real or personal property, estimated taxes,
rent, excise, occupancy, recordation, bulk transfer, intangibles, alternative minimum, doing
business, withholding and stamp), together with any interest thereon, penalties, fines, damages,
costs, fees, additions to tax or additional amounts with respect thereto, imposed by Israel, the
United States (federal, state or local) or any other applicable jurisdiction; (b) any liability for
the payment of any amounts described in clause (a) as a result of being a member of an affiliated,
consolidated, combined, unitary or similar group or as a result of transferor or successor
liability, including, without limitation, by reason of Section 1.1502-6 of the Treasury Regulations
promulgated under the Code; and (c) any liability for the payments of any amounts as a result of
being a party to any tax sharing agreement or as a result of any express or implied obligation to
indemnify any other Person with respect to the payment of any amounts of the type described in
clause (a) or (b).

“Tax Return” shall include all returns and reports (including elections, declarations,
disclosures, schedules, estimates and information returns required to be supplied to a Tax
authority relating to Taxes.

“Trading Day” means (a) any day on which the Parent Common Stock is listed or quoted
and traded on the Eligible Market, (b) if the Common Stock is not then listed or quoted and traded
on any Eligible Market, then a day on which trading occurs on the Eligible Market, or (c) if
trading ceases to occur on the Eligible Market, any Business Day.

“Trading Market” means any trading market of which the Parent Common Stock is listed
or included for trading, including the Eligible Market.

“Transactions” means the Merger and the other transactions contemplated by or
referenced in this Agreement.

“Transaction Form 8-K” shall have the meaning assigned to it in Section 5.4.

“Transaction Documents” means the Agreement and contracts, documents and instruments
contemplated by or referenced in this Agreement.

ARTICLE II

THE MERGER

Section 2.1 Merger. Subject to the terms and conditions of this Agreement, at the
Merger Effective Time, Acquisition Subsidiary shall be merged with the Company in accordance with
the Israeli Companies Law, the separate legal existence of Acquisition Subsidiary shall cease, and
the Company shall (i) be the surviving corporation of the Merger (sometimes hereinafter referred to
as the “Surviving Corporation”); (ii) be governed and continue its corporate existence
under the laws of the State of Israel; and (iii) succeed to and assume all of the rights and the
properties and obligations of Acquisition Subsidiary and the Company in accordance with the Israeli
Companies Law. With respect to references in this Agreement relating to any obligations or duties
of the Company accruing after the Merger Effective Time, the usage of the defined term “Company” as
opposed to “Surviving Corporation” shall not operate to negate any such obligation or duties.

Section 2.2 Merger Effective Time. The Merger shall become effective on the date and
at the time that the Registrar of Companies of the State of Israel (the “Companies
Registrar”) provides the Surviving Corporation with the certificate of merger in accordance
with Section 323(5) of the Israeli Companies Law (the “Certificate of Merger”) after
receipt from the Company and Acquisition Subsidiary of the Merger Proposal (as defined below)
pursuant to Section 5.9. The time at which the Merger shall become effective as aforesaid is
referred to hereinafter as the “Merger Effective Time.”

Section 2.3 Articles of Association; Directors and Officers.

(a) Articles of Association. The Company shall amend and restate its Articles of
Association and such amended and restated Articles of Association shall be the Articles of
Association of the Surviving Corporation (the “Company Articles”) from and after the Merger
Effective Time until further amended in accordance with applicable Law.

(b) Directors and Officers. The directors and officers of the Company immediately
prior to the Merger Effective Time shall be the directors and officers of the Surviving
Corporation, and each shall hold his respective office or offices from and after the Merger
Effective Time until his successor shall have been elected and shall have qualified in accordance
with applicable Law, or as otherwise provided in the Articles of Association of the Surviving
Corporation.

Section 2.4 Effects of the Merger. The Merger shall have the effects provided for
herein and in the applicable provisions of the Israeli Companies Law. Without limiting the
generality of the foregoing and subject thereto, at the Merger Effective Time, all of the
properties, rights, privileges, powers and franchises of the Company and Acquisition Subsidiary
shall vest in the Surviving Corporation and all debts, liabilities and duties of the Company and
Acquisition Subsidiary shall become the debts, liabilities and duties of the Surviving Corporation.

Section 2.5 Manner and Basis of Converting Shares.

(a) Acquisition Subsidiary Ordinary Share Conversion. At the Merger Effective Time,
each ordinary share of Acquisition Subsidiary that shall be outstanding immediately prior to the
Merger Effective Time shall, by virtue of the Merger and without any action on the part of the
holder thereof, be converted into the right to receive one ordinary share of the Surviving
Corporation, so that at the Merger Effective Time, Parent shall be the holder of all of the issued
and outstanding shares of the Surviving Corporation.

(b) Conversion of Company Shares. At the Merger Effective Time the Company Shares
held by Existing Company Shareholders prior to the Merger Effective Time shall be converted, on a
pro rata basis, into the right to receive such number of shares of Parent Common Stock, which
together with securities of Parent issued in exchange of the Company Options and the Company
Warrants and in accordance with Section 2.8 and securities of Parent reserved in accordance with
Section 2.8, shall constitute in the aggregate, 77.5% of the issued and outstanding share capital
of the Parent upon the Merger Effective Time, calculated on a fully-diluted basis immediately after
the Merger Effective Time, except that any shares of Parent Common Stock issuable upon the exercise
or conversion of (i) all outstanding stock options and warrants of Parent with an exercise or
conversion price of $0.60 or more, on a pre-Reverse Split basis (the “Excluded Parent Options
or Warrants”) and (ii) any Private Placement Securities, shall not be included in such
fully-diluted calculations (the “Adjusted Fully Diluted Parent Capitalization”), subject to
the provisions of Section 2.5(d). Without derogating from the above, it is clarified that any
Private Placement Securities converted into shares of Parent Common Stock following the date of
this Agreement will dilute the Existing Company Shareholders and the stockholders of Parent on a
pro rata basis. Additionally, the number of shares of Parent Common Stock issuable upon conversion
of the Company Shares and upon the subsequent exercise of the Company Options and the Company
Warrants, will be increased proportionately by 1% for each $400,000 by which Parent’s Specified
Liabilities at the Merger Effective Time exceed $6,800,000 (provided, however, that if the Closing
has not occurred on or prior to March 31, 2013, the $6,800,000 threshold shall be increased on
April 1, 2013 by $400,000, less any gross proceeds received by Parent from the sale in the Private
Placement of equity securities, and shall increase on the first day of each successive month by an
additional $400,000, less the proceeds received by Parent from the sale of such equity securities
during the prior month (the “Adjustment”). In the event that Parent’s Specified
Liabilities at the Closing exceed $9,000,000 (as increased after March 31, 2013 by an amount equal
to one-half of the Adjustment), the Company shall be entitled to terminate the Agreement. Any
Private Placement Securities converted into shares of Parent Common Stock following the Closing
will dilute the Existing Company Shareholders and the stockholders of Parent on a pro rata basis.
The exact exchange ratio shall be computed immediately prior to the Merger Effective Time
(“Exchange Ratio”). All of the shares of Parent Common Stock issuable pursuant to this
Section 2.5(b) (other than those issuable upon conversion or exercise of the Private Placement
Securities) are referred to herein collectively as the “Merger Shares”. The Company shall
provide Parent with a schedule seven (7) days prior to the Closing (subject to any sales during
such seven (7) day period, in which case the Company will provide to Parent an updated schedule),
setting forth the name of each holder of Company Shares entitled to receive Parent Common Stock and
the number of shares of such Parent Common Stock to be received (on a post Reverse Split basis),
and Parent shall be entitled to rely upon such schedule in issuing the Merger Shares.

(c) Other Securities. Each of the Company Shares held in the treasury of the Company,
if any, each share of any other class of shares of the Company (other than the Company Shares), if
any, any debt or other securities convertible into or exercisable for the purchase of the Company
Shares, if any (subject to the provisions of Section 2.8), and securities of the Company held by
Parent and/or Acquisition Subsidiary, if any, issued and outstanding immediately prior to the
Merger Effective Time shall be canceled without payment of any consideration therefor and without
any conversion thereof.

(d) Issuance of Additional Merger Shares. Notwithstanding the provisions of Section
2.5(b), if the Market Price (defined herein) of Parent’s Common Stock exceeds the exercise price of
any Excluded Parent Option or Warrant for a period of (i) 20 consecutive trading days, or (ii) 30
trading days out of 60 trading days or (iii) one half of the trading days remaining on the term of
any Excluded Parent Option or Warrant (if the remaining term of such Excluded Parent Option or
Warrant is less than 90 days) or (iv) any Excluded Parent Option or Warrant is exercised, then such
Excluded Parent Option or Warrant (an “In-the-Money Option or Warrant”) shall be
retroactively included in the Adjusted Fully Diluted Parent Capitalization, and the Exchange Ratio
shall be adjusted accordingly. As a result of such adjustment to the Exchange Ratio, Parent shall
promptly issue and deliver to those Persons who were Existing Company Shareholders as of the
Closing Date, on a pro rata basis, an additional number of shares of Parent Common Stock as would
maintain the same percentage ownership of the Parent by such Existing Company Shareholders as of
the Closing Date, had such In-the-Money Options or Warrants been included in the Adjusted Fully
Diluted Parent Capitalization at such time. For purposes of this Section 2.5(d), “Market Price”
shall mean the closing price of the Parent Common Stock as quoted on the OTC QX US, or if
subsequently listed on the NASDAQ or the NYSE MKT, on such markets.

Section 2.6 Surrender and Exchange of Securities. (a) As soon as practicable after
the Merger Effective Time and upon (i) surrender of a certificate or certificates representing the
Company Shares that were outstanding immediately prior to the Merger Effective Time to Parent (or,
in case such certificates shall be lost, stolen or destroyed, an affidavit of that fact by the
holder thereof) (each a “Certificate”) and (ii) delivery to Parent of an executed Letter of
Transmittal (as described in Section 5.7), Parent shall deliver to the record holder of the Company
Shares surrendering such certificate or certificates, a certificate or certificates (or evidence of
shares in book-entry form) registered in the name of such shareholder representing the number of
shares of Parent Common Stock to which such holder is entitled under Section 2.5, including any
cash paid in lieu of any fractional shares pursuant to Section 2.6(c). In the event of a transfer
of ownership of Company Shares that is not registered in the transfer records of the Company, a
certificate (or evidence of shares in book-entry form) representing the proper number of whole
shares of Parent Common Stock may be issued to a Person other than the Person in whose name the
Certificate so surrendered is registered, if, upon delivery by the holder thereof at the Closing,
such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer and
the Person requesting such issuance shall have paid any transfer and other Taxes required by reason
of the issuance of shares of Parent Common Stock to a Person other than the registered holder of
such Certificate or shall have established to the reasonable satisfaction of Parent that such Tax
either has been paid or is not applicable. As of the Merger Effective Time, each Company Share
issued and outstanding immediately prior to the Merger Effective Time shall no longer be
outstanding and shall automatically be canceled and retired and until the certificate or
certificates evidencing such shares are surrendered, each certificate that immediately prior to the
Merger Effective Time represented any outstanding Company Share shall be deemed at and after the
Merger Effective Time to represent only the right to receive upon surrender as aforesaid the
consideration specified in Section 2.5 for the holder thereof.

(b) Transfer Books; No Further Ownership Rights in Company Shares. All shares of
Parent Common Stock issued upon the surrender for exchange of Certificates in accordance with the
terms of this Article II (including any cash paid in lieu of any fractional shares pursuant to
Section 2.6(c)) shall be deemed to have been issued (and paid) in full satisfaction of all rights
pertaining to the Company Shares previously represented by such Certificates, and at the Merger
Effective Time, the share transfer books of the Company shall be closed and thereafter there shall
be no further registration of transfers on the share transfer books of the Surviving Corporation of
the Company Shares that were outstanding immediately prior to the Merger Effective Time. From and
after the Merger Effective Time, the holders of Certificates that evidenced ownership of the
Company Shares outstanding immediately prior to the Merger Effective Time shall cease to have any
rights with respect to such shares, except as otherwise provided for herein or by applicable Law.

(c) No Fractional Shares. No fraction of a share of Parent Common Stock shall be
issued upon the surrender for exchange of a Certificate (or evidence of such shares in book-entry
form), no dividends or other distributions of Parent shall relate to such fractional share
interests and such fractional share interests will not entitle the owner thereof to vote or to any
rights of a stockholder of Parent. In lieu of such fractional share interests, Parent shall pay to
each holder of a Certificate (upon surrender thereof as provided in this Article II) an amount in
cash equal to the product obtained by multiplying the fractional share interest to which such
holder (after aggregating all shares of Parent Common Stock into which the Company Shares held at
the Merger Effective Time by such holder are exchangeable) would otherwise be entitled by the
closing price of a share of Parent Common Stock on the OTC QX US on the date immediately preceding
the Closing , adjusted for the Reverse Split (such closing price, as Reverse Split adjusted,
referred to as the “Ratio”).

(d) Lost, Stolen or Destroyed Certificates. If any Certificate shall have been lost,
stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such
Certificate to be lost, stolen or destroyed and, if required by Parent, the written agreement by
such Person to indemnify Parent and the Surviving Corporation against any claim that may be made
against it with respect to such Certificate, Parent will issue, in exchange for such lost, stolen
or destroyed Certificate, the Merger Shares and cash in lieu of any fractional shares of Parent
Common Stock to which such Person would be entitled pursuant to Section 2.6(c), in each case
pursuant to this Agreement.

(e) No Liability. Notwithstanding any provision of this Agreement to the contrary,
none of the parties hereto or the Surviving Corporation shall be liable to any Person in respect of
any shares of Parent Common Stock (or dividends or other distributions with respect thereto) or
cash in lieu of any fractional shares of Parent Common Stock, in each case required to be delivered
and delivered to a public official pursuant to any applicable abandoned property, escheat or
similar Law.

(f) Withholding. Notwithstanding any provision of this Agreement to the contrary,
Parent shall be entitled to deduct and withhold from any cash amounts payable, or shares of Parent
Common Stock issuable, pursuant to this Agreement to any Company shareholder or holder of the
Company Options, such amounts or shares as may be required, under the Israeli Income Tax Ordinance
or any other Tax law, to be deducted and withheld with respect to the issuance of shares of Parent
Common Stock and options. To the extent that amounts are so withheld, they shall be treated for
all purposes of this Agreement as having been paid to the respective Company shareholder or holder
of Company Options. Notwithstanding the foregoing, Parent shall not so withhold any amounts if a
person entitled to payment under this Agreement (x) is exempt from withholding by virtue of an
Israeli Income Tax Ruling or (y) has provided to Parent a Valid Certificate at least three (3)
Business Days prior to the Closing Date. A “Valid Certificate” shall be a certificate or
ruling issued by the Israeli Tax Authority which is sufficient to enable Parent to conclude, in its
sole discretion, that no withholding of Israeli Tax is required with respect to the payment to such
shareholder or holder of Company Options. Notwithstanding the foregoing, Parent shall not be
obligated to issue any shares to any Company shareholder or holder of Company Options unless such
person has (1) provided to the Company a Valid Certificate, (2) is exempt from withholding by
virtue of an Israeli Income Tax Ruling or (3) has paid to the Company the Israeli Tax that should
be withheld in connection with the issuance of Parent Common Stock and grant of options under this
Agreement.

Section 2.7 Parent Common Stock. Parent agrees that it will issue the Merger Shares
into which the Company Shares are converted at the Merger Effective Time pursuant to Section 2.5 to
the respective holder under Section 2.5 and will pay any cash amount in lieu of any fractional
shares as set forth in Section 2.6(c).

Section 2.8 Company Options; Company Warrants.

(a) Before the Closing, the Company Board shall adopt such resolutions or take such other
actions as may be required to effect the following:

(i) adjust the terms of all outstanding options of the Company to purchase Company Ordinary
Shares under the Company’s Share Ownership and Option Plan (2011) (“Company Options” and
“Company Option Plan”), whether vested or unvested, as necessary to provide that, at the
Merger Effective Time, each Company Option outstanding immediately prior to the Merger Effective
Time shall be assumed and converted into an option to acquire, on the same terms and conditions as
were applicable under the Company Options and the Company Option Plan, the number of shares of
Parent Common Stock (rounded down to the nearest whole share) determined by multiplying the number
of Company Ordinary Shares subject to the Company Options by the Exchange Ratio (each, as so
converted, an “Assumed Option”), and the exercise price for each Company Option shall be
adjusted by multiplying it by the quotient obtained by dividing (A) 1, by (B) the Exchange Ratio.
The adjusted exercise price will also be converted into US dollars from New Israeli Shekels
(“NIS”), based on the exchange rate on the date of such conversion; and

(ii) make such other changes to the Company Option Plan as appropriate to give effect to the
Merger and any rulings or tax benefits of Israeli tax authorities with respect to the Assumed
Options, including the Israeli Income Tax Ruling referred to below.

(b) At the Merger Effective Time, by virtue of the Merger and without the need of any further
corporate action, Parent shall assume the Company Option Plan with the result that all obligations
of the Company under the Company Option Plan, including with respect to Company Options outstanding
at the Merger Effective Time, shall become the obligations of Parent following the Merger Effective
Time, entitling the holders thereof to the Assumed Options referred to in Section 2.8(a).

(c) As soon as practicable after the Merger Effective Time, Parent shall deliver to the
holders of Company Options appropriate notices setting forth such holders’ rights under the Assumed
Options subject to the adjustments required and limitations imposed by Section 2.8(a).

(d) Except as otherwise contemplated by Section 2.8 and except to the extent required under
the respective terms of the Company Options, all restrictions or limitations on transfer and
vesting with respect to Company Options awarded under the Company Option Plan or any other plan,
program or arrangement of the Company, to the extent that such restrictions or limitations shall
not have already lapsed, shall remain in full force and effect with respect to such Assumed Options
after giving effect to the Merger and any rulings of Israeli tax authorities as set forth in
Section 2.8(a).

(e) Each Company Warrant shall similarly be assumed by Parent and amended and converted into
the right to acquire upon exercise thereof the number of shares of Parent Common Stock (rounded
down to the nearest whole share) determined by multiplying the number of Company Ordinary Shares
issuable upon the exercise of each Company Warrant by the Exchange Ratio, and the exercise price
for each Company Warrant shall be adjusted by multiplying it by the quotient obtained by dividing
(A) 1, by (B) the Exchange Ratio. The adjusted exercise price will also be converted into US
dollars from NIS, based on the exchange rate on the date of such conversion.

Section 2.9 Further Assurances. From time to time, from and after the Merger
Effective Time, as and when requested by Parent or its respective successors or assigns, the proper
officers and directors of the Company or Acquisition Subsidiary (as applicable) in office
immediately prior to the Merger Effective Time shall, for and on behalf and in the name of the
Company or Acquisition Subsidiary (as applicable), execute and deliver all such deeds, bills of
sale, assignments and other instruments and take or cause to be taken such further actions as
Parent or its respective successors or assigns may deem necessary or desirable in order to confirm
or record or otherwise transfer to the Surviving Corporation title to and possession of all of the
properties, rights, privileges, powers, franchises and immunities of the Company and the
Acquisition Subsidiary or otherwise to carry out fully the provisions and purposes of this
Agreement and the Certificate of Merger.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby represents and warrants to Parent and Acquisition Subsidiary that the
statements contained in this Article III are true and correct, except as set forth in the
disclosure schedule provided by the Company to Parent and Acquisition Subsidiary, as of the date
hereof (the “Company Disclosure Schedules”). For purposes of this Article III, the phrase
“to the knowledge of the Company” or any phrase of similar import shall be deemed to refer to the
actual knowledge of the Chief Executive Officer of the Company and founder of the Company Dr.
Daniel Gedeon Teper , as well as any other knowledge which such persons would have possessed had
they made reasonable inquiry of appropriate officers and employees (whether current or former),
agents and affiliates of the Company with respect to the matter in question.

Section 3.1 Subsidiaries. The Company does not own or control, directly or
indirectly, any interest in any other corporation, partnership, company, association, limited
liability company or other business entity. Except as set forth on Schedule 3.1 of the Company
Disclosure Schedules, the Company is not a party to, or a participant in, any joint venture,
partnership or similar arrangement, including strategic relationships to develop or promote the
Company’s products and services, which relationships are conducted through contractual
relationships between the Company and third parties, but do not involve any interest of the Company
in any separate legal entities.

Section 3.2 Organization and Qualification. The Company is duly organized and validly
existing under the laws of the State of Israel and has all requisite corporate power and authority
to own, lease and operate its assets and properties and to carry on its business (the
“Business”) as now conducted. Except as set forth on Schedule 3.2 of the Company
Disclosure Schedules, the Company is duly qualified to transact business under the laws of the
State of Israel and in such other jurisdictions where the character of the properties owned, leased
or operated by it or the nature of the Business makes such qualification or licensing necessary and
has not taken any action or failed to take any action, which action or failure, as applicable, are
reasonably expected to interfere in any material respect with, preclude or prevent the Company from
carrying on its Business as now conducted. The Company is not in default with respect to the
Company Articles.

Section 3.3 Capitalization.

(a) The registered share capital of the Company as of the date hereof consists of NIS
10,000,000 divided into: 92,500,000 Ordinary Shares, 3,000,000 Preferred A Shares and 4,500,000
Founder Shares.

(b) The issued and outstanding Company Shares have been duly authorized and validly issued,
are fully paid, non-assessable, and have been issued in compliance with the Israeli Securities Law,
1968, other applicable securities laws, and the rules and regulations promulgated thereunder. The
issued and outstanding share capital of the Company, on a fully diluted basis, including a true and
correct list of the holders (beneficially and of record) of shares or rights (vested or contingent)
to acquire shares in the Company dated as of the date hereof is as set forth in Schedule 3.3 of the
Company Disclosure Schedules.

(c) Except: (i) as set forth in this Agreement and as specified in Schedule 3.3 of the Company
Disclosure Schedules; and (ii) as set forth in the Articles, the Company is not a party or subject
to any agreement or understanding with respect to any security of the Company and there are no
outstanding options, warrants, convertible securities, rights (including registration rights,
voting rights, conversion or preemptive rights and rights of first refusal), or agreements of any
kind for the purchase or acquisition of securities from the Company.

(d) The Company has provided to Parent a true and correct copy of the Company Option Plan.
True and correct copies of all Company Options and Company Warrants were provided to Parent.

(e) Except as set forth in the Company Articles and as specified in Schedule 3.3 of the
Company Disclosure Schedules, the Company is not a party or subject to any agreement or
understanding, and, to the Company’s knowledge, there is no agreement or understanding between any
other persons and/or entities that affects or relates to the voting or giving of written consents
with respect to any security or the voting by a director or shareholder of the Company.

(f) Except as set forth on Schedule 3.3 of the Company Disclosure Schedules, there is no share
option plan, share purchase, option or other right, or any agreement or understanding, between the
Company and any holder of its securities (or of any right to obtain a security), or to the
Company’s knowledge, any agreement or understanding between shareholders of the Company that (i)
provides for redemption, acceleration or other changes in the vesting provisions or other terms of
such agreement or understanding, as a result of any merger, consolidation, sale of shares or
assets, change in control or similar transaction in respect of the Company or (ii) that relates to
the acquisition (including, without limitation, through anti-dilution, conversion, preemptive
(contractual or otherwise) or similar rights), disposition or registration for the public sale of
any securities of the Company. Except as set forth on Schedule 3.3 of the Company Disclosure
Schedules, the Company does not have any right to purchase or otherwise acquire from any third
party (including, without limitation, employees, officers, directors, consultants and business
parties) shares of the Company or rights to acquire the same.

(g) The options granted by the Company and which are classified by the Company as issued
pursuant to Section 102(b)(2) of the Israeli Income Tax Ordinance comply in full with all
requirements of such Section 102(b)(2), the regulations promulgated thereunder and all guidance and
publications issued by the Israeli Tax Authority.

Section 3.4 Authorization. Except as set forth on Schedule 3.4 of the Company
Disclosure Schedules, all corporate action on the part of the Company, its officers and directors
necessary for: (i) the due authorization, execution and delivery of this Agreement; and (ii) the
performance of all obligations of the Company hereunder has been taken as of the date hereof,
except as set forth in Section 5, 6 and 9. All corporate action on the part of the Company’s
shareholders necessary for the due authorization, execution and delivery of this Agreement and the
performance of all obligations of the Company hereunder has been or will be taken prior to or upon
the Closing. The Company has obtained the written consent of Daniel Teper, Serge Goldner and Jean
Kadouche, approving the Merger and the transactions contemplated by this Agreement, subject to the
terms hereof, and the Company’s decision to pursue the Closing and has provided copies of such
consents to Parent. On or before December 15, 2012, the Company will obtain the additional
consents approving the Merger of those other holders of Company Shares who hold greater than 50% of
each other class of issued and outstanding Company Shares and will provide copies of such consents
to Parent (the “Additional Consents”). This Agreement has been duly executed by the
Company and, assuming the due authorization, execution and delivery by the other parties thereto,
constitutes and will constitute a valid and legally binding obligation of the Company, (i) subject,
to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or similar
laws of general application affecting the enforcement of creditors’ rights generally, (ii) subject
to a court’s discretionary authority with respect to the granting of specific performance,
injunctive relief or other equitable remedies and (iii) except to the extent the indemnification
and contribution provisions, if any, contained in any such agreement may be limited by Israeli
securities laws or unenforceable as against public policy.

Section 3.5 Compliance with Other Instruments; No Conflict. Except as set forth in
Schedule 3.5 of the Company Disclosure Schedules, the Company is not in violation or breach of,
conflict with, or in default under (with or without the passage of time or the giving of notice or
both) any provision of (a) the Company Articles or (b) any mortgage, indenture, lease, license or
any other agreement or instrument, judgment, order, writ or decree to which it is a party or by
which it or its properties is bound, or, any statute, rule or regulation applicable to it or its
properties, except, in the case of clause (b) above for such possible violations, breaches,
conflicts or defaults which could not, individually or in the aggregate, result in a Material
Adverse Effect. Except as set forth in Schedule 3.5 of the Company Disclosure Schedules, the
execution, delivery and performance of this Agreement, and the consummation of the transactions
contemplated hereby will not, to the Company’s knowledge, result in any such violation, breach,
conflict or default or result in the creation of any Lien upon any assets of the Company or the
suspension, revocation, impairment, forfeiture or nonrenewal of any franchise, permit, license,
authorization or approval applicable to the Company or the Business which individually or in the
aggregate (a) could reasonably be expected to have a Material Adverse Effect on the Company; or (b)
prevent or materially delay the consummation of the transactions contemplated hereby; or (c)
require any consent, approval, authorization, permit or filing with or notification to any
Governmental Authority other than as set forth in the Conditions to Closing in Section 6 hereof.

Section 3.6 Absence of Changes. Since December 31, 2011, except as disclosed in
Schedule 3.6 of the Company Disclosure Schedules or incident to the transactions contemplated
hereby or in connection with the Merger, (i) there has been no event, occurrence or development
that, individually or in the aggregate, has had or that could result in a Material Adverse Effect,
(ii) the Company has not incurred any material liabilities or Indebtedness that has had or could
result in a Material Adverse Effect other than (A) trade payables and expenses incurred in the
ordinary course of business consistent with past practice and (B) liabilities not required to be
reflected in the Company’s financial statements pursuant to GAAP, (iii) the Company has not altered
its method of accounting or the identity of its auditors, except as disclosed in its audited
financial statements, (iv) the Company has not declared or made any dividend or distribution of
cash or other property to its shareholders, in their capacities as such, or purchased, redeemed or
made any agreements to purchase or redeem any of its share capital and (v) the Company has not
issued any equity securities to any officer, director or Affiliate, except pursuant to an existing
Company Option Plan. Set forth on Schedule 3.6 of the Company Disclosure Schedules is a list of all
Options issued, including the identity of the persons to whom such Options were issued and the
exercise prices thereof. The Company has not taken any steps to seek protection pursuant to any
bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors
intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that
would reasonably lead a creditor to do so.

Section 3.7 Absence of Litigation.

(a) There is no action, suit, claim or Proceeding pending, or to the knowledge of the Company
currently threatened, against the Company, and the Company is not aware of any event or
circumstance that may form a basis for any such action, suit, claim or Proceeding other than those
set forth on Schedule 3.7(a) of the Company Disclosure Schedules that might result, either
individually or in the aggregate, in any Material Adverse Effect. The foregoing includes, to the
Company’s knowledge, actions, suits, claims or Proceedings pending or threatened against the
Company (or any basis therefor known to the Company) involving the prior employment of any of the
Company’s employees, their use in connection with the Business of any information or techniques
allegedly proprietary to any of their former employers, or their obligations under any agreements
with former employers.

(b) Except as set forth on Schedule 3.7(b) of the Company Disclosure Schedules, the Company is
not a party or subject to the provisions of any order, writ, injunction, judgment or decree of any
court or Governmental Authority that might, individually or in the aggregate, have a Material
Adverse Effect on the Company.

(c) There is no action, suit, claim or Proceeding by the Company that is currently pending or
that the Company intends to initiate.

(d) There is no action, suit, claim or proceeding pending or, to the knowledge of the Company,
threatened, that questions the validity of this Agreement or the right of the Company to enter into
this Agreement, or to consummate the transactions contemplated hereby.

Section 3.8 Compliance. The Company, except in each case as could not, individually
or in the aggregate, reasonably be expected to have or result in a Material Adverse Effect, (i) is
not in default under or in violation of (and no event has occurred that has not been waived that,
with notice or lapse of time or both, would result in a default by the Company under), nor has the
Company received written notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a
party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is not in violation of any order of any court, arbitrator or governmental
body or (iii) is not or has not been in violation of any statute, rule or regulation of any
Governmental Authority.

Section 3.9 Title to Assets. The Company does not own any real property and has good
and marketable title in all personal property owned by the Company that is material to the
Business, in each case free and clear of all Liens, except for Liens that do not, individually or
in the aggregate, have or result in a Material Adverse Effect. Any real property and facilities
held under lease by the Company are held by the Company under valid, subsisting and enforceable
leases of which the Company is in material compliance.

Section 3.10 Proprietary Rights. Except as disclosed in Schedule 3.10 of the Company
Disclosure Schedules, the Company does not have any knowledge of, and the Company has not received
any notice of, any pending conflicts with or infringement of the rights of others with respect to
any patents, patent applications, inventions, trademarks, trade names, applications for
registration of trademarks, service marks, service mark applications, copyrights, know-how,
manufacturing processes, formulae, trade secrets, licenses and rights in any thereof which are
material to the Business, as now conducted or as proposed to be conducted (herein called the
“Company Proprietary Rights”). No action, suit, arbitration or legal, administrative or
other Proceeding is pending or, to the Company’s knowledge, threatened which involves any Company
Proprietary Rights. The Company is not subject to any judgment, order, writ, injunction or decree
of any court or any local, foreign or other governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, or any arbitrator, and the Company has not entered
into nor is the Company a party to any contract which restricts or impairs the use of any such
Company Proprietary Rights in a manner which could have a Material Adverse Effect. To the
Company’s knowledge, the Company owns or licenses all the Company Proprietary Rights which are
necessary for the Business as now conducted and as contemplated to be conducted, and has the right
to use such Company Proprietary Rights without payment to a third party, other than in respect of
the licenses disclosed in Schedule 3.10 of the Company Disclosure Schedules. Except as disclosed
in Schedule 3.10 of the Company Disclosure Schedules, the Company has not granted or assigned to
any other person or entity any right to manufacture, have manufactured or assemble the products or
proposed products or to provide the services or proposed services of the Company. Except as
disclosed in Schedule 3.10 of the Company Disclosure Schedules, the Company does not have any
obligation to compensate any person for the use of any Company Proprietary Rights nor has the
Company granted to any person any license or other rights to use in any manner any Company
Proprietary Rights of the Company. Except as disclosed in Schedule 3.10 of the Company Disclosure
Schedules, all of the issued patents included in the Company Proprietary Rights are valid and
enforceable. To the best of the Company’s knowledge, no current or former employee, consultant or
independent contractor of the Company, who was involved in, or who contributed to, the creation or
development of any of the Company Proprietary Rights owned, in whole or in part, by the Company,
has performed services for or was an employee of the government, university, college, or other
educational institution or research center (each, an “Institution”) during a period of time
during which such employee, consultant or independent contractor was also performing services for
the Company or during the time such employee, consultant or independent contractor invented,
created or developed any of the Company Proprietary Rights owned, in whole or in part, by the
Company. To the extent the representation in the previous sentence cannot be made with respect to
any Institution, the Company has received a waiver from such Institution of any claim to the
Company Proprietary Rights.

Section 3.11 Insurance. The Company maintains third party liability, fire, theft,
equipment and employee claim insurance and such other customary insurance policies of types and in
amounts as necessary to conduct its Business.

Section 3.12 Permits. Except as set forth on Schedule 3.12 of the Company Disclosure
Schedules, the Company has all Material Permits necessary for the conduct of the Business as now
conducted. The Company is not in material breach of or default under any of such Material Permits.

Section 3.13 Interested and Related-Party Transactions. Except as set forth in
Schedule 3.13 of the Company Disclosure Schedules, no shareholder, officer or director of the
Company is indebted to the Company, nor is the Company indebted to (or committed to make loans or
extend or guarantee credit of) any of them. Except as set forth in Schedule 3.13 of the Company
Disclosure Schedules, to the Company’s knowledge, no shareholder, officer or director of the
Company (i) has any direct or indirect interest in any contract to which the Company is a party or
by which it or its properties may be bound or affected, (ii) has any direct or indirect interest in
any entity which transacts business with the Company, (iii) has a direct or indirect interest in
any property, asset or right which is used by the Company in the conduct of its Business or (iv)
owns any asset used by the Company in connection with its Business.

Section 3.14 Employee Relations.

(a) The Company is not a party to any collective bargaining agreement, nor does the Company
employ any member of a union. The Company believes that its relations with its employees are good.
No executive officer of the Company has notified the Company that such officer intends to leave
the Company or otherwise terminate such officer’s employment with the Company. The Company is in
compliance with all applicable laws and regulations respecting labor, employment and employment
practices and benefits, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect on the Company. There are no material complaints
or charges against the Company pending or, to the knowledge of the Company, threatened to be filed
with any Governmental Authority or arbitrator based on, arising out of, in connection with, or
otherwise relating to the employment or termination of employment by the Company of any individual.

(b) With respect to employees of the Company who reside or work in Israel (each an
“Israeli Employee”), except as set forth in Schedule 3.14 of the Company Disclosure
Schedules, the Company has complied in all material respects with all legal requirements relating
to employment, wages, severance, hours, benefits, pensions, the payment of national insurance and
the proper withholding and remission to the proper tax and other authorities of all sums required
to be withheld from Israeli Employees. The Company is not liable for the payment of any damages,
taxes, fines, penalties, or other amounts, however designated, for failure to comply with any of
the foregoing legal requirements.

Section 3.15 Environmental Laws. The Company (i) is in compliance with any and all
Environmental Laws applicable to the Company, (ii) has received all permits, licenses or other
approvals required of the Company under applicable Environmental Laws to conduct the Business and
(iii) is in compliance with all terms and conditions of any such permit, license or approval where,
in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect on the Company.

Section 3.16 Tax Status. The Company has timely made or filed all material income and
all other tax returns, reports and declarations required by any taxing authority to which it is
subject (unless and only to the extent that the Company is contesting in good faith such unpaid and
unreported taxes and has set aside on its respective books provisions reasonably adequate for the
payment of all such unpaid and unreported taxes), all such tax returns have been prepared in
compliance with all applicable Laws and all such tax returns are true, accurate and complete in
all respects. The Company has timely paid all taxes and other governmental assessments and
charges, that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith, and has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which
such returns, reports or declarations apply. To the knowledge of the Company, there are no unpaid
taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, other
than those incurred in the ordinary course of business and liabilities which are reflected in the
Company Financial Statements. The Company has not executed a waiver with respect to the statute of
limitations relating to the assessment or collection of any Israeli, foreign, federal, state or
local tax. None of the Company’s tax returns are presently being audited or the subject of any
action, suit or Proceeding by any taxing Governmental Authority, and, to the best of the Company’s
knowledge, no such audit, action, suit or Proceeding is being threatened against the Company by
such taxing Governmental Authority. The Company has made available to Parent true, correct and
complete copies of all Tax Returns with respect to income taxes filed by or with respect to it with
respect to taxable periods ended on or after September 2010, and has delivered or made available to
Parent all relevant documents and information with respect thereto, including without limitation
work papers, records, examination reports, and statements of deficiencies assessed against or
agreed to by the Company. There are no outstanding adjustments, deficiencies, additional
assessments or refund claims proposed or outstanding with respect to any Tax or Tax Return of the
Company. The Company is not a party to or bound by any tax sharing or allocation agreement and has
no current or potential contractual obligation to indemnify any other Person with respect to Taxes.

Section 3.17 [Reserved].

Section 3.18 Manipulation of Price. The Company has not, and, to its knowledge, no
one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to
result in the stabilization or manipulation of the price of Parent Common Stock, (ii) sold, bid
for, purchased, or paid any compensation for soliciting purchases of, any shares of Parent Common
Stock or (iii) paid or agreed to pay to any Person any compensation for soliciting another to
purchase any shares of Parent Common Stock.

Section 3.19 Material Agreements. A list of all oral and written material agreements
of the Company is set forth on Schedule 3.19 of the Company Disclosure Schedules, with “material”
in this context meaning any agreement of the Company requiring payment or the performance of
services or delivery of goods having a value of at least $10,000 per year (each a “Material
Agreement”). The Company, to the extent applicable, and to the Company’s knowledge, each other
party thereto, have in all material respects performed all the obligations required to be performed
by them to date (or such non-performing party has received a valid, enforceable and irrevocable
written waiver with respect to its non-performance), have received no notice of default and are not
in default (with due notice or lapse of time or both) under any Material Agreement. The Company
has no knowledge of any breach or anticipated breach by the other party to any Material Agreement
to which the Company is a party. Except as set forth on Schedule 3.20 of the Company Disclosure
Schedules, the Company has not received any other grants, incentives and subsidies, or submitted
applications therefor from the government of the State of Israel or any agency thereof, or from any
foreign governmental or administrative agency.

Section 3.20 Office of Chief Scientist; Grants. Except as set forth on Schedule 3.20
of the Company Disclosure Schedules, the Company has satisfied all conditions and requirements of
the instruments of approval granted to it by the Office of Chief Scientist of the Israeli Ministry
of Industry and Trade (the “OCS”) and any applicable laws and regulations, including the
Law for the Encouragement of Industrial Research and Development, 1984, with respect to any
research and development grants given to it by such office, except to the extent that noncompliance
with the foregoing, individually or in the aggregate, would not result in a Material Adverse Effect
and would not prevent or delay the consummation of the transactions contemplated hereby. All
information supplied by the Company with respect to such applications was true, correct and
complete in all material respects when supplied to the appropriate authorities.

Section 3.21 Disclosure. All disclosures provided by the Company to Parent and
Acquisition Subsidiary regarding the Company, the Business and the transactions contemplated
hereby, including the Company Disclosure Schedules, are true and correct in all material respects
and do not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading as of the date hereof.

Section 3.22 Consents. Except as set forth in Schedule 3.22 of the Company Disclosure
Schedules, no consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any Government Authority, or any other Person, is required
in connection with the execution and delivery of, and the consummation of the transactions
contemplated by, this Agreement, except any filing required any applicable securities laws or
regulations or as set forth herein.

Section 3.23 Broker’s and other Fees. The Company has not incurred, nor will it
incur, directly or indirectly, any liability for brokerage or finders fees or agent’s commissions
or any similar charges in connection with this Agreement or any transaction contemplated hereby.

Section 3.24 Application of Takeover Protections. Except as described in
Schedule 3.24 of the Company Disclosure Schedules, to the knowledge of the Company, there are no
Takeover Protections that are or could become applicable to the Company as a result of the Company,
Parent and Acquisition Subsidiary fulfilling their obligations or exercising their rights under the
Transaction Documents.

Section 3.25 Financial Statements.

(a) The Company has agreed to use its best efforts to deliver to Parent on or before January
31, 2013, copies of: the balance sheets of the Company and the statements of operations, and
changes in shareholders’ equity and cash flows and the unaudited balance sheets of the Company and
the unaudited statements of operations, and shareholders’ equity and cash flows, in each case,
through September 30, 2012, required for the proxy statement or Registration Statement on Form S-4
(collectively, the “Company Financial Statements”). The Company Financial Statements
(including the related notes) will be prepared in accordance with GAAP during the periods involved
(except as may be indicated therein or in the notes thereto), and will present fairly the
consolidated financial position of the Company as of the respective dates set forth therein, and
the consolidated results of the Company’s operations and its cash flows for the respective periods
set forth therein in accordance with GAAP (subject, in case of any unaudited interim financial
statements, to normal year-end adjustments).

(b) The books and records of the Company are being maintained in material compliance with
applicable legal and accounting requirements.

Section 3.26 Foreign Corrupt Practices. Neither the Company nor any director,
officer, agent, employee or other Person acting on behalf of the Company has, in the course of its
actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity, (ii)
made any direct or indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds, (iii) violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

Section 3.27 OFAC. The Company (i) is not a Person whose property or interest in
property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of
September 23, 2001 Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten
to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) does not engage in any dealings
or transactions prohibited by Section 2 of such executive order, or is otherwise associated with
any such Person in any manner violative of Section 2 of such executive order or (iii) is not a
Person on the list of Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets
Control regulation or executive order.

Section 3.28 Patriot Act. Assuming the foregoing were applicable to the Company, the
Company would be in compliance, in all material respects, with the (i) Trading with the Enemy Act,
as amended, and each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or
executive order relating thereto and (ii) Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001).

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF PARENT

AND ACQUISITION SUBSIDIARY

Each of Parent and Acquisition Subsidiary represents and warrants to the Company that the
statements contained in this Article IV are true and correct, except as set forth in the disclosure
schedule provided by Parent and Acquisition Subsidiary to the Company, as of the date hereof (the
“Parent Disclosure Schedules”). For purposes of this Article IV, the phrase “to the
knowledge of Parent and Acquisition Subsidiary” or any phrase of similar import shall be deemed to
refer to the actual knowledge of the executive officers of Parent and Acquisition Subsidiary, as
well as any other knowledge which such executive officers would have possessed had they made
reasonable inquiry of appropriate officers and employees (whether current or former), agents and
affiliates of Parent with respect to the matter in question. Any representations and warranties by
or relating to Acquisition Subsidiary shall be deemed to be effective as of the date of the
ratification notice it provides to the Company pursuant to the provisions of Section 6.3(d)(iv)
hereof.

Section 4.1 Subsidiaries. Except as set forth in the SEC Reports (defined herein) or
on Schedule 4.1 of the Parent Disclosure Schedules and except for Parent’s 100% interest in
Acquisition Subsidiary, neither Parent nor Acquisition Subsidiary owns or controls, directly or
indirectly, any interest in any other corporation, partnership, company, association, limited
liability company or other business entity. Except as set forth in the SEC Reports or on Schedule
4.1 of the Parent Disclosure Schedules, neither Parent nor Acquisition Subsidiary is a party to, or
a participant in, any joint venture, partnership or similar arrangement, including strategic
relationships to develop or promote Parent’s and/or Acquisition Subsidiary’s products and services,
which relationships are conducted through contractual relationships between Parent or Acquisition
Subsidiary and third parties, but do not involve any interest of Parent or Acquisition Subsidiary
in any separate legal entities. Acquisition Subsidiary is a direct, wholly owned subsidiary of
Parent, was formed solely for the purpose of engaging in the transactions contemplated by this
Agreement, has engaged in no other business activities and has conducted its operations only as
contemplated by this Agreement.

Section 4.2 Organization, Good Standing and Qualification. Parent is a corporation
duly organized and validly existing and in good standing under the laws of the State of Delaware
and has all corporate power and authority to carry on its business as now conducted. Acquisition
Subsidiary is a corporation duly organized and validly existing under the laws of the State of
Israel and has all requisite corporate power and authority to carry on its business as now
conducted. Each of Parent and Acquisition Subsidiary is duly qualified to transact business and is
in good standing in each jurisdiction in which the failure to be so qualified could have
a Material Adverse Effect on Parent and/or Acquisition Subsidiary. Parent is not in default with
respect to its Amended and Restated Certificate of Incorporation (as may be amended or supplemented
from time to time, the “Parent Articles”). Acquisition Subsidiary is not in default with
respect to its Articles of Association (as may be amended or supplemented from time to time, the
“Sub Articles”). Complete and correct copies of the Parent Articles and Sub Articles were
provided to Company.

Section 4.3 Authorization. The Agreement has been duly approved by the board of the
directors of the Acquisition Subsidiary and the shareholders of the Acquisition Subsidiary and has
been duly approved by the board of directors of the Parent. Except for the approval of the Reverse
Split and the Charter Amendments by the stockholders of Parent, all other corporate action on the
part of each of Parent and Acquisition Subsidiary, its officers and directors necessary for the
(i) due authorization, execution and delivery of this Agreement and (ii) performance of all
obligations of Parent and/or Acquisition Subsidiary hereunder has been taken as of the date hereof.
All corporate action on the part of the stockholders of each of Parent and Acquisition Subsidiary
necessary for the (i) due authorization, execution and delivery of this Agreement and
(ii) performance of all obligations of Parent and/or Acquisition Subsidiary hereunder has been
taken or will be taken prior to the Closing. This Agreement has been duly executed by each of
Parent and Acquisition Subsidiary and, assuming the due authorization, execution and delivery by
the other parties thereto, constitutes and will constitute a valid and legally binding obligation
of both Parent and Acquisition Subsidiary, (i) subject to applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or similar laws of general application affecting
the enforcement of creditors’ rights generally, (ii) subject to a court’s discretionary authority
with respect to the granting of specific performance, injunctive relief or other equitable remedies
and (iii) except to the extent the indemnification and contribution provisions, if any, contained
in any such agreement may be limited by Israeli or United States securities laws or unenforceable
as against public policy.

Section 4.3A Compliance with Other Instruments; No Conflict. Except as set forth in
Schedule 4.3A of the Parent Disclosure Schedules, neither Parent nor Acquisition Subsidiary is in
violation or breach of, conflict with, or in default under (with or without the passage of time or
the giving of notice or both) any provision of (a) the Parent Articles or Acquisition Subsidiary
Articles, as applicable, or (b) any mortgage, indenture, lease, license or any other agreement or
instrument, judgment, order, writ or decree to which it is a party or by which it or its properties
is bound, or, any statute, rule or regulation applicable to it or its properties, except, in the
case of clause (b) above for such possible violations, breaches, conflicts or defaults which could
not, individually or in the aggregate, result in a Material Adverse Effect. Except as set forth in
Schedule 4.3A of the Parent Disclosure Schedules, the execution, delivery and performance of this
Agreement, and the consummation of the transactions contemplated hereby will not, to either
Parent’s or Acquisition Subsidiary’s knowledge, result in any such violation, breach, conflict or
default or result in the creation of any Lien upon any assets of Parent and/or Acquisition
Subsidiary or the suspension, revocation, impairment, forfeiture or nonrenewal of any franchise,
permit, license, authorization or approval applicable to Parent, Acquisition Subsidiary or any of
their respective businesses which individually or in the aggregate (a) could reasonably be expected
to have a Material Adverse Effect on the Parent and/or Acquisition Subsidiary; (b) prevent or
materially delay the consummation of the transactions contemplated hereby; or (c) require any
consent, approval, authorization, permit or filing with or notification to any Governmental
Authority other than as set forth in the Conditions to Closing in Section 6 hereof.

Section 4.4 Authorized Securities. The Merger Shares shall be duly authorized and,
when issued in accordance with this Agreement, will be duly and validly issued, fully paid and
non-assessable, free and clear of all Liens and shall not be subject to preemptive or similar
rights of stockholders. The Assumed Options and any warrants or options issued by Parent in
exchange for the Company Warrants shall be duly issued and authorized when issued in accordance
with this Agreement and any share of Parent Common Stock issued upon the exercise thereof according
to the terms thereof will be duly and validly issued, fully paid and non-assessable, free and clear
of all Liens and shall not be subject to preemptive or similar rights of stockholders.

Section 4.5 Capitalization. The authorized share capital of Parent and Acquisition
Subsidiary is as set forth on Schedule 4.5 of the Parent Disclosure Schedules.

Section 4.5A Valid Issuance.

(a) The issued and outstanding capital stock of Parent have been duly authorized and issued,
are fully paid and non-assessable, and have been issued in compliance with applicable securities
laws. The issued and outstanding capital stock of Parent, on a fully diluted basis, is as set
forth in Schedule 4.5A(a) of the Parent Disclosure Schedules, and a true and correct list of the
record holders of shares or rights (vested or contingent) to acquire shares in Parent will be
provided to the Company within ten days from the date hereof. All issued and outstanding share
capital of Acquisition Subsidiary has been duly authorized and issued, is fully paid and
non-assessable, and has been issued in compliance with Israeli securities laws. All issued and
outstanding share capital of Acquisition Subsidiary, on a fully diluted basis, is held by Parent
immediately prior to the Closing. As of the Closing and at the Company’s election, Parent either
will assume the Company Option Plan or modify its existing stock option plan to accommodate any tax
or regulatory issues affecting employees of or consultants to the Company who reside in Israel, and
Parent will, prior to the Closing, reserve sufficient number of shares of Parent Common Stock
available for issuance upon the exercise of the Assumed Options, any warrants or options issued in
exchange for the Company Warrants or as otherwise undertaken by Parent to be issued following the
Closing.

(b) Except: (i) as set forth in this Agreement and as specified in Schedule 4.5A(b) of the
Parent Disclosure Schedules; and (ii) as set forth in the Parent Articles, the Parent is not a
party or subject to any agreement or understanding with respect to any security of the Parent and
there are no outstanding options, warrants, convertible securities, rights (including registration
rights, voting rights, conversion or preemptive rights and rights of first refusal), or agreements
of any kind for the purchase or acquisition of securities from the Parent.

(c) Parent has provided to the Company a true and correct copy of the Parent Option Plan.
True and correct copies of all Parent Options and Parent Warrants were provided to the Company.

(d) Except as set forth in the Parent Articles and as specified in Schedule 4.5A(d) of the
Parent Disclosure Schedules, the Parent is not a party or subject to any agreement or
understanding, and, to the Parent’s knowledge, there is no agreement or understanding between any
other persons and/or entities that affects or relates to the voting or giving of written consents
with respect to any security or the voting by a director or shareholder of the Parent.

(e) Except as set forth on Schedule 4.5A(e) of the Parent Disclosure Schedules, there is no
share option plan, share purchase, option or other right, or any agreement or understanding,
between the Parent and any holder of its securities (or of any right to obtain a security), or to
the Parent’s knowledge, any agreement or understanding between stockholder of the Parent that (i)
provides for redemption, acceleration or other changes in the vesting provisions or other terms of
such agreement or understanding, as a result of any merger, consolidation, sale of shares or
assets, change in control or similar transaction in respect of the Parent or (ii) that relates to
the acquisition (including, without limitation, through anti-dilution, conversion, preemptive
(contractual or otherwise) or similar rights), disposition or registration for the public sale of
any securities of the Parent. Except as set forth on Schedule 4.5A(e) of the Parent Disclosure
Schedules, the Parent does not have any right to purchase or otherwise acquire from any third party
(including, without limitation, employees, officers, directors, consultants and business parties)
securities of the Parent or rights to acquire the same.

Section 4.6 SEC Reports; Financial Statements. Parent has duly filed all reports
required to be filed by it under the Exchange Act, including pursuant to Sections 13(a) or 15(d)
thereof, for the two years preceding the date hereof (the foregoing materials (together with any
materials filed by Parent under the Exchange Act, whether or not required) being collectively
referred to herein as the “SEC Reports”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any
such extension. As of their respective dates, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act and the rules and regulations of
the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The financial statements of Parent included in the SEC Reports
comply in all material respects with applicable accounting requirements and the rules and
regulations of the SEC with respect thereto as in effect at the time of filing. Such financial
statements have been prepared in accordance with GAAP applied on a consistent basis, except as may
be otherwise specified in such financial statements or the notes thereto, and fairly present in all
material respects the financial position of Parent as of and for the dates thereof and the results
of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, year-end audit adjustments. Except as set forth on Schedule 4.6 of the
Parent Disclosure Schedules, all material agreements to which Parent or Acquisition Subsidiary is a
party or to which the property or assets of Parent or the Acquisition Subsidiary are subject are
included as part of or specifically identified in the SEC Reports.

Section 4.7 Absence of Changes. Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in the SEC Reports or
in Schedule 4.7 of the Parent Disclosure Schedules or incident to the transactions contemplated
hereby or in connection with the Merger, (i) there has been no event, occurrence or development
that, individually or in the aggregate, has had or that could result in a Material Adverse Effect
on Parent, (ii) Parent has not incurred any material liabilities or Indebtedness that has had or
could result in a Material Adverse Effect other than (A) trade payables and expenses incurred in
the ordinary course of business consistent with past practice and (B) liabilities not required to
be reflected in the Parent’s financial statements pursuant to GAAP, (iii) Parent has not altered
its method of accounting or the identity of its auditors, except as disclosed in its SEC Reports,
(iv) Parent has not declared or made any dividend or distribution of cash or other property to its
stockholders, in their capacities as such, or purchased, redeemed or made any agreements to
purchase or redeem any shares of its capital stock and (v) Parent has not issued any equity
securities to any officer, director or affiliate except pursuant to Parent Option Plan. Set forth
in Schedule 4.7 of the Parent Disclosure Schedules is a list of all Parent’s options issued and
currently outstanding, including the identity of the persons to whom such options were issued and
the exercise prices thereof. Parent has not taken any steps to seek protection pursuant to any
bankruptcy law nor does Parent have any knowledge or reason to believe that its creditors intend to
initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that would
reasonably lead a creditor to do so.

Section 4.8 Absence of Litigation.

(a) There is no action, suit, claim or proceeding pending, or to the knowledge of Parent
currently threatened, against Parent and/or Acquisition Subsidiary, and Parent is not aware of any
event or circumstance that may form a basis for any such action, suit, claim, Proceeding, other
than those set forth on Schedule 4.8(a) of the Parent Disclosure Schedules. The foregoing
includes, to Parent and/or Acquisition Subsidiary’s knowledge, actions, suits, claims or
proceedings pending or threatened against Parent and/or Acquisition Subsidiary (or any basis
therefor known to Parent and/or Acquisition Subsidiary) involving the prior employment of any of
Parent’s and/or Acquisition Subsidiary’s employees, their use in connection with the Business of
any information or techniques allegedly proprietary to any of their former employers, or their
obligations under any agreements with former employers. There are no material complaints or
charges against the Parent pending or, to the knowledge of the Parent, threatened to be filed with
any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise
relating to the employment or termination of employment by the Parent of any individual.

(b) To Parent’s and/or Acquisition Subsidiary’s knowledge, neither Parent nor Acquisition
Subsidiary is party or subject to the provisions of any order, writ, injunction, judgment or decree
of any court or Governmental Authority other than those set forth on Schedule 4.8(b) of Parent
Disclosure Schedules.

(c) There is no action, suit, claim or proceeding by Parent and/or Acquisition Subsidiary that
is currently pending or that Parent and/or Acquisition Subsidiary intends to initiate.

(d) To Parent’s and/or Acquisition Subsidiary’s knowledge, there is no action, suit, claim or
proceeding pending or, to the knowledge of Parent and/or Acquisition Subsidiary, threatened, that
questions the validity of this Agreement or the right of Parent and/or Acquisition Subsidiary to
enter into this Agreement, or to consummate the transactions contemplated hereby.

Section 4.8A Compliance. Except as disclosed on Schedule 4.8A, neither Parent nor
Acquisition Subsidiary, except in each case as could not, individually or in the aggregate,
reasonably be expected to have or result in a Material Adverse Effect, (i) is in default under or
in violation of (and no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company under), nor has Parent and/or Acquisition
Subsidiary received written notice of a claim that it is in default under or that it is in
violation of, any indenture, loan or credit agreement or any other agreement or instrument to which
it is a party or by which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any order of any court, arbitrator or
governmental body or (iii) is or has not been in violation of any statute, rule or regulation of
any Governmental Authority. Parent is in compliance with all applicable requirements of
Sarbanes-Oxley Act of 2002 and applicable rules and regulations promulgated by the SEC thereunder,
except where such noncompliance would not have, individually or in the aggregate, a Material
Adverse Effect on Parent.

Section 4.9 Title to AssetsSection 4.10 . Except as disclosed on Schedule 4.9 of the
Parent Disclosure Schedule, each of Parent and Acquisition Subsidiary has good and marketable title
in all personal property owned by either Parent and/or Acquisition Subsidiary that is material to
the business, in each case free and clear of all Liens, except for Liens that do not, individually
or in the aggregate, have or result in a Material Adverse Effect. Except as disclosed on Schedule
4.9 of the Parent Disclosure Schedule, any real property and facilities held under lease by the
either Parent and/or Acquisition Subsidiary are held by the Parent and/or Acquisition Subsidiary
(as applicable) under valid, subsisting and enforceable leases of which Parent and/or Acquisition
Subsidiary (as applicable) is in material compliance As of the date hereof, other than as
specifically disclosed in the SEC Reports and those liabilities related to this Agreement set forth
on Schedule 4.9 of the Parent Disclosure Schedules, neither Parent nor Acquisition Subsidiary has
any direct or indirect liability, indebtedness or obligation (including without limitation, known
or unknown, absolute or contingent, liquidated or unliquidated or due or to become due).

Section 4.10 Proprietary Rights. The Parent and/or Acquisition Subsidiary does not
have any knowledge of, and the neither Parent nor Acquisition Subsidiary has received any notice
of, any pending conflicts with or infringement of the rights of others with respect to any patents,
patent applications, inventions, trademarks, trade names, applications for registration of
trademarks, service marks, service mark applications, copyrights, know-how, manufacturing
processes, formulae, trade secrets, licenses and rights in any thereof which are material to the
Business, as now conducted or as proposed to be conducted (herein called the “Parent
Proprietary Rights”). No action, suit, arbitration or legal, administrative or other
Proceeding is pending or, to Parent’s and/or Acquisition Subsidiary’s knowledge, threatened which
involves any Parent Proprietary Rights. Neither Parent nor Acquisition Subsidiary is subject to
any judgment, order, writ, injunction or decree of any court or any local, foreign or other
governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign,
or any arbitrator, and the Neither Parent nor Acquisition Subsidiary has entered into or is a party
to any contract which restricts or impairs the use of any such Parent Proprietary Rights in a
manner which could have a Material Adverse Effect. To Parent’s and/or Acquisition Subsidiary’s
knowledge, Parent owns or licenses all Parent Proprietary Rights which are necessary for the
business as now conducted and as contemplated to be conducted, and has the right to use such Parent
Proprietary Rights without payment to a third party, other than in respect of the licenses
disclosed in Schedule 4.10 of Parent Disclosure Schedules. Except as disclosed in Schedule 4.10 of
Parent Disclosure Schedules, neither Parent nor Acquisition Subsidiary has granted or assigned to
any other person or entity any right to manufacture, have manufactured or assemble the products or
proposed products or to provide the services or proposed services of the Parent. Except as
disclosed in Schedule 4.10 of Parent Disclosure Schedules, neither Parent nor Acquisition
Subsidiary has any obligation to compensate any person for the use of any Parent Proprietary Rights
nor has the Parent or Acquisition Subsidiary granted to any person any license or other rights to
use in any manner any Parent Proprietary Rights. Except as disclosed in Schedule 4.10 of Parent
Disclosure Schedules, all of the issued patents included in the Parent Proprietary Rights are valid
and enforceable.

Section 4.11 Application of Takeover Protections. Except as described in
Schedule 4.11 of the Parent Disclosure Schedules, there are no Takeover Protections that are or
could become applicable to Parent or the Acquisition Subsidiary as a result of the Company, Parent
and Acquisition Subsidiary fulfilling their obligations or exercising their rights under the
Transaction Documents, including, without limitation, as a result of Parent’s issuance of the
Merger Shares or any other warrant or option as specified in this Agreement.

Section 4.12 Disclosure. All disclosure provided by Parent and Acquisition
Subsidiary to the Company regarding Parent and Acquisition Subsidiary, their respective businesses
and the transactions contemplated hereby, including the Schedules to this Agreement, furnished by
or on the behalf of Parent and Acquisition Subsidiary are true and correct in all material respects
and do not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading as of the date hereof. To Parent’s and Acquisition
Subsidiary’s knowledge, no event or circumstance has occurred or information exists with respect to
Parent or Acquisition Subsidiary or their respective business, properties, operations or financial
conditions, which, under applicable law, rule or regulation, requires public disclosure or
announcement by Parent but which has not been so publicly announced or disclosed. Parent and
Acquisition Subsidiary acknowledge and agree that the Company has not made nor will make any
representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in the Transaction Documents.

Section 4.13 Manipulation of Price. Neither Parent nor Acquisition Subsidiary has,
and to their knowledge no one acting on their behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result in the stabilization or manipulation of the price of any
security of Parent or to facilitate the sale or resale of any of Parent Common Stock, (ii) sold,
bid for, purchased or paid any compensation for soliciting purchases of, any of Parent Common Stock
or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase
any other securities of Parent.

Section 4.14 Material Agreements. A list of the oral and written material agreements
of each of Parent and Acquisition Subsidiary is set forth on Schedule 4.14 of the Parent Disclosure
Schedules (each a “Parent Material Agreement”). Except as disclosed on Schedule 4.14 of
the Parent Disclosure Schedules, each of Parent and Acquisition Subsidiary, to the extent
applicable, and to Parent’s and/or Acquisition Subsidiary’s knowledge, each other party thereto,
have in all material respects performed all the obligations required to be performed by them to
date (or such non-performing party has received a valid, enforceable and irrevocable written waiver
with respect to its non-performance), have received no notice of default and are not in default
(with due notice or lapse of time or both) under any Parent Material Agreement. Neither Parent nor
Acquisition Subsidiary has knowledge of any breach or anticipated breach by the other party to any
Parent Material Agreement to which the either Parent or Acquisition Subsidiary is a party

Section 4.15 Foreign Corrupt Practices. Neither Parent nor Acquisition Subsidiary nor
any director, officer, agent, employee or other Person acting on behalf of Parent or Acquisition
Subsidiary has, in the course of its actions for, or on behalf of, Parent and Acquisition
Subsidiary (i) used any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expenses relating to political activity, (ii) made any direct or indirect unlawful payment
to any foreign or domestic government official or employee from corporate funds, (iii) violated or
is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or
(iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment
to any foreign or domestic government official or employee.

Section 4.16 OFAC. Neither Parent nor Acquisition Subsidiary (i) is a Person whose
property or interest in property is blocked or subject to blocking pursuant to Section 1 of
Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions with
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii)
engages in any dealings or transactions prohibited by Section 2 of such executive order, or is
otherwise associated with any such Person in any manner violative of Section 2 of such executive
order or (iii) is a Person on the list of Specially Designated Nationals and Blocked Persons or
subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of
Foreign Assets Control regulation or executive order.

Section 4.17 Patriot Act. To the extent applicable, each of Parent and Acquisition
Subsidiary is in compliance, in all material respects, with the (i) Trading with the Enemy Act, as
amended, and each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or
executive order relating thereto and (ii) Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001).

Section 4.18 Employee Relations. Neither Parent nor Acquisition Subsidiary is a party
to any collective bargaining agreement or employs any member of a union. Parent and Acquisition
Subsidiary believe that its relations with its employees are good. No executive officer of Parent
and/or Acquisition Subsidiary has notified either Parent and/or Acquisition Subsidiary that such
officer intends to leave or otherwise terminate such officer’s employment with the either Parent
and/or Acquisition Subsidiary (as applicable). Parent and Acquisition Subsidiary were and are in
compliance with all applicable laws and regulations respecting labor, employment and employment
practices and benefits, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect on Parent and/or Acquisition Subsidiary. There are
no material complaints or charges against Parent or Acquisition Subsidiary pending or, to the
knowledge of Parent or Acquisition Subsidiary, threatened to be filed with any Governmental
Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the
employment or termination of employment by Parent or Acquisition Subsidiary of any individual.
Prior to the Closing, Parent will deliver a notice of termination of employment or engagement to
each of the individuals listed in Schedule 4.18 of the Parent Disclosure Schedules.

Section 4.19 Environmental Laws. Parent and Acquisition Subsidiary (i) are in
compliance with any and all Environmental Laws, (ii) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective
businesses and (iii) are in compliance with all terms and conditions of any such permit, license or
approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply
could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect
on Parent.

Section 4.20 Tax Status. Each of Parent and Acquisition Subsidiary has timely made or
filed all material income and all other tax returns, reports and declarations required by any
taxing authority to which it is subject (unless and only to the extent that Parent and/or
Acquisition Subsidiary is contesting in good faith such unpaid and unreported taxes and has set
aside on its respective books provisions reasonably adequate for the payment of all unpaid and
unreported taxes) all such tax returns have been prepared in compliance with all applicable Laws
and all such tax returns are true, accurate and complete in all respects. Each of Parent and
Acquisition Subsidiary has timely paid all material taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith, and has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which
such returns, reports or declarations apply. There are no unpaid taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, other than in the ordinary course of
business and liabilities which are reflected in the Parent’s and/or Acquisition Subsidiary’s
Financial Statements. Neither Parent nor Acquisition Subsidiary has executed a waiver with respect
to the statute of limitations relating to the assessment or collection of any Israeli, foreign,
federal, state or local tax. None of Parent’s and/or Acquisition Subsidiary’s tax returns are
presently being audited or the subject of any action, suit or Proceeding by any taxing Governmental
Authority, and, to the best of Parent’s and/or Acquisition Subsidiary’s knowledge, no such audit,
action, suit or Proceeding is being threatened against Parent and/or Acquisition Subsidiary by such
taxing Governmental Authority. Each of Parent and Acquisition Subsidiary has made available to the
Company true, correct and complete copies of all Tax Returns with respect to income taxes filed by
or with respect to it with respect to taxable periods ended on or after December 31, 2011, and has
delivered or made available to the Company all relevant documents and information with respect
thereto, including without limitation work papers, records, examination reports, and statements of
deficiencies assessed against or agreed to by the Parent and/or Acquisition Subsidiary. There are
no outstanding adjustments, deficiencies, additional assessments or refund claims proposed or
outstanding with respect to any Tax or Tax Return of either Parent or Acquisition Subsidiary.
Neither Parent nor Acquisition Subsidiary is a party to nor is it bound by any tax sharing or
allocation agreement and has no current or potential contractual obligation to indemnify any other
Person with respect to Taxes.

Section 4.21 No Undisclosed Events, Liabilities, Developments or Circumstances. No
event, liability, development or circumstance has occurred or exists, or is contemplated to occur
with respect to Parent and Acquisition Subsidiary or their respective businesses, properties,
prospects, operations or financial condition, that would be required to be disclosed by Parent
under applicable securities laws, on a registration statement on Form S-1, or similar forms, filed
with the SEC relating to an issuance and sale by Parent of Parent Common Stock or this Agreement
and the transactions contemplated hereby and which has not been publicly announced.

Section 4.22 Consents. Except as set forth in Schedule 4.22 of the Parent Disclosure
Schedules, no consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any Governmental Authority, or any other Person, is
required in connection with the execution and delivery of, and the consummation of the transactions
contemplated by this Agreement, except any filing required any applicable securities laws or
regulations or as set forth herein.

Section 4.23 Broker’s and other Fees. Except as set forth in Schedule 4.23, neither
Parent nor Acquisition Subsidiary has incurred, or will incur, directly or indirectly, any
liability for brokerage or finders fees or agent’s commissions or any similar charges in connection
with this Agreement or any transaction contemplated hereby.

Section 4.24 Insurance. Each of Parent and Acquisition Subsidiary maintains third
party liability, fire, theft, equipment and employee claim insurance and such other customary
insurance policies of types and in amounts as necessary to conduct its business.

Section 4.25 Permits. Except as set forth on Schedule 4.25 of Parent Disclosure
Schedules, each of Parent and Acquisition Subsidiary has all Material Permits necessary for the
conduct of the business as now conducted. Neither Parent nor Acquisition Subsidiary is in material
breach of or default under any of such Material Permits.

ARTICLE V

ADDITIONAL AGREEMENTS

Section 5.1 Publicity. Until the Merger Effective Time, no party shall issue any
press release or public announcement pertaining to the Merger that has not been agreed upon in
advance by Parent and the Company, except as Parent reasonably determines to be necessary in order
to comply with the rules of the SEC or of the principal trading exchange or market for Parent
Common Stock and with the performance of its obligations under Section 5.10A and as the Company
reasonably determines to be necessary in order to comply with its obligations under Section 5.9;
provided, however, that to the maximum extent practicable, Parent and the Company
shall give prior notice thereof to the other, as applicable, and consult with each other regarding
the same. Notwithstanding the foregoing, the parties shall issue a joint press release upon the
execution and delivery of this Agreement and the Closing.

Section 5.2 Tax Returns; Cooperation. From and after the Closing, the Company, on the
one hand, and Parent, on the other, will cooperate with each other and provide such information as
the other party may require in order to file any return to determine Tax liability or a right to a
Tax refund or to conduct a Tax audit or other Tax Proceeding. Such cooperation shall include
making employees available on a mutually convenient basis to explain any documents or information
provided hereunder or otherwise as required in the conduct of any audit or other proceeding. In
addition, each of the parties shall use all commercially reasonable efforts to take, or cause to be
taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other
parties in doing, all things necessary, proper or advisable to consummate and make effective, as
soon as reasonably practicable, the Merger and the other Transactions contemplated by this
Agreement.

Section 5.3 Tax Free Exchange. Each of Parent and the Company shall use its
respective reasonable efforts to cause the Merger to qualify as a tax free exchange of the Merger
Shares under the Code. For purposes of the foregoing, this Agreement shall constitute a plan of
reorganization.

Section 5.4 Transaction Form 8-K; Other Filings. As promptly as practicable (but in
no event, with respect to filing, later than the date required under applicable Law), Parent and
the Company will work together to prepare and file a current report on Form 8-K (the
“Transaction Form 8-K”) and any filings required to be filed by it under the Exchange Act,
the Securities Act or any other Federal, foreign or blue sky, Israeli, Swedish securities laws or
related Laws relating to the execution of this Agreement and the consummation of the Transactions,
as well as under the stock exchange or trading system on which shares of Parent Common Stock are
listed or quoted and such other governmental agencies as may require the filing of such other
filings.  

Section 5.5 Notices from Governmental Agencies. Subject to applicable Laws relating
to the exchange of information, each party will promptly furnish to the other Parties copies of
written communications (and memoranda setting forth the substance of all oral communications)
received by such party, or any of their respective subsidiaries, affiliates or associates (as such
terms are defined in Rule 12b-2 under the Exchange Act as in effect on the date hereof), from, or
delivered by any of the foregoing to, any Governmental Authority relating to or in respect of the
transactions contemplated under this Agreement.

Section 5.6  Parent Directors and Officers.

(a) Directors. Immediately following the Merger Effective Time, Parent and the Parent
Board shall take all necessary actions to ensure that the Parent Board shall consist of the
directors of the Company as of the Merger Effective Time, plus Mr. Robert Cook as member of the
Parent Board, as determined by Parent and the Company, subject to any limitations imposed by
applicable law or the rules of the Eligible Market.

(b) Officers. Immediately following the Merger Effective Time, the officers of Parent
shall consist of those individuals appointed by the Parent Board.

(c) Employees. Immediately following the Merger Effective Time, Parent and the Parent
Board shall take all necessary actions to ensure that Mr. Robert Cook is retained as CFO and Mr.
Stephane Allard is retained as Chief Medical Officer or such equivalent role.

Section 5.7  Letters of Transmittal.

A reasonable amount of time prior to the Merger Effective Time, Parent shall provide to each
Existing Company Shareholder a letter of transmittal (“Letter of Transmittal”) which shall
contain additional representations, warranties and covenants of such shareholder as to the
following matters: (a) such shareholder has full right, power and authority to deliver such Company
Shares and Letter of Transmittal; (b) the delivery of such Company Shares will not violate or be in
conflict with, result in a breach of or constitute a default under, any indenture, loan or credit
agreement, deed of trust, mortgage, security agreement or other agreement or instrument to which
such shareholder is bound or affected; (c) such shareholder has good, valid and marketable title to
all Company Shares indicated in such Letter of Transmittal and that such shareholder is not
affected by any voting trust, agreement or arrangement affecting the voting rights of such Shares;
(d) such shareholder is acquiring the Parent Common Stock for investment purposes and not with a
view to selling or otherwise distributing such Parent Common Stock in violation of the Securities
Act or the securities Laws of any state, subject to any limitations imposed by the Israeli Tax
Ruling; (e) such shareholder has had an opportunity to ask and receive answers to any questions
such shareholder may have had concerning the terms and conditions of the Merger and Parent Common
Stock and has obtained any additional information that such shareholder has requested; and (f) such
shareholder acknowledges that the stock certificates evidencing the shares of Parent Common Stock
to be issued to such shareholder shall bear a restrictive legend customarily used in connection
with restricted securities within the meaning of Rule 144 under the Securities Act. The Merger
Shares shall be issued to such shareholder, only upon delivery to Parent (or an agent of Parent) of
(x) certificates acceptable to Parent and its transfer agent evidencing ownership thereof as
contemplated by Section 2.6(a) (or affidavit of lost certificate acceptable to Parent and its
transfer agent) and (y) the Letter of Transmittal containing the representations, warranties and
covenants contemplated by this Section 5.7.

Section 5.8 Net liabilities. Parent will use best efforts to reduce outstanding
payables, liabilities, commitments and contingent liabilities. In the event that Parent’s Specified
Liabilities at Closing exceed $9,000,000, as increased after March 31, 2013 by an amount equal to
one-half of the Adjustment, the Company shall be entitled to terminate the Agreement.

Section 5.9  Merger Proposal.

(a) As promptly as practicable (i) the Company and Acquisition Subsidiary shall cause a merger
proposal (in the Hebrew language) (the “Merger Proposal”) to be executed in accordance with
Section 316 of the Israeli Companies Law, (ii) each of the Company and Acquisition Subsidiary shall
convene a shareholders’ meeting (the “Company General Meeting” and “Acquisition
Subsidiary General Meeting”), and (iii) each of the Company and Acquisition Subsidiary shall
deliver the Merger Proposal to the Companies Registrar. The Company and Acquisition Subsidiary
shall cause a copy of the Merger Proposal to be delivered to each of their secured creditors, if
any, no later than three days after the date on which the Merger Proposal is delivered to the
Companies Registrar and shall promptly inform their non-secured creditors of the Merger Proposal
and its contents in accordance with Section 318 of the Israeli Companies Law and the regulations
promulgated thereunder. Promptly after the Company and Acquisition Subsidiary shall have complied
with the preceding sentence but in any event no more than three days following the date on which
such notice was sent to the creditors, the Company and Acquisition Subsidiary shall inform the
Companies Registrar, in accordance with Section 317(b) of the Companies Law, that notice was given
to their creditors under Section 318 of the Israeli Companies Law and the regulations promulgated
thereunder.

(b) Notice to creditors pursuant to Section 318 shall be provided as set forth below and each
of the Company and, if applicable, Acquisition Subsidiary shall publish a notice to its creditors,
stating that a Merger Proposal was submitted to the Companies Registrar and that the creditors may
review the Merger Proposal at the Companies Registrar, the Company’s registered offices or at such
other locations as Company shall determine, in (A) two daily Hebrew newspapers, on the day that the
Merger Proposal is submitted to the Companies Registrar and (B) a popular newspaper in any foreign
jurisdiction, no later than three Business Days following the day on which the Merger Proposal was
submitted to the Companies Registrar if the Company or Acquisition Subsidiary, as applicable, has
any Material Creditor in such jurisdiction. For the purpose hereof “Material Creditor”
means any creditor to which the Company or the Acquisition Subsidiary, as applicable, is indebted
in an amount equal to the higher of NIS100,000 or an amount equal to 15% or more of the equity of
the Company or the Acquisition Subsidiary, as applicable, or as such term is otherwise defined in
the regulations promulgated under the Israeli Companies Law.

(c) Within four Business Days from the date of submitting the Merger Proposal to the Companies
Registrar, the Company and Acquisition Subsidiary, as applicable, shall send a notice by registered
mail to all of the Material Creditors that each is aware of, in which it shall state that a Merger
Proposal was submitted to the Companies Registrar and that the creditors may review the Merger
Proposal at such additional locations, if such locations were determined in the notice referred to
in Section 5.9(b).

Section 5.10 General Meetings.

(a) Promptly after the execution and delivery of this Agreement, the Company shall take all
action necessary under all applicable legal requirements to convene, give notice of and hold a
Company General Meeting to vote on the proposal to approve the Merger, this Agreement and the
transactions contemplated hereby. In the event that Parent, or any “affiliate” thereof (as such
term is defined in the Israeli Companies Law), shall cast any votes in respect of the Merger,
Parent shall, prior to such vote, disclose to Company its interest or its affiliates respective
interests in such shares so voted and any votes by such shares shall not be counted with respect to
such Company General Meeting. Required under applicable law The Company may adjourn or postpone
the Company General Meeting if, as of the time for which the Company General Meeting is originally
scheduled there are insufficient Company Shares represented (either in person or by proxy) to
constitute a quorum necessary to conduct the business of the Company General Meeting. Without
derogating from Section 6.3 below, the Board of Directors of the Company shall note to the
Company’s shareholders its approval and recommendation for approval by the shareholders of the
Company of this Agreement and the consummation of the transactions contemplated hereby, including
the Merger and the Board of Director’s declaration that this Agreement is advisable, fair and in
the best interests of their respective shareholders and approved the Merger upon the terms and
conditions set forth in this Agreement.

(b) Parent (as the sole shareholder of Acquisition Subsidiary) shall approve the Merger at an
Acquisition Subsidiary General Meeting.

(c) Each of the Company and Acquisition Subsidiary shall (in accordance with Section 317(b) of
the Israeli Companies Law and the regulations thereunder) inform the Companies Registrar of the
decision of the respective General Meetings with respect to the Merger within three days following
the adoption of the respective resolution but in any event not later than 50 days following the
delivery of the Merger Proposal to Companies Registrar.

Section 5.10A Parent Stockholders Meeting. Promptly after the date of this
Agreement, Parent shall call a special meeting of its stockholders to consider and vote upon the
approval of the Reverse Split and the Charter Amendments in accordance with the Parent Articles and
By-Laws and applicable Delaware law. Parent shall recommend to its stockholders the approval of
the Reverse Split and the Charter Amendments and any other matters necessary to complete the Merger
and shall use its best efforts to solicit and obtain the requisite vote of approval. In connection
therewith, Parent shall promptly prepare and disseminate, subject to the Company’s review and
approval, preliminary and definitive proxy materials in accordance with the applicable provisions
of the Exchange Act and the rules and regulations promulgated thereunder. Parent
shall promptly retain a proxy solicitor reasonably satisfactory to the Company to solicit proxies
from the stockholders of Parent in favor of the matters being voted upon at the Parent Stockholders
Meeting, which proxy solicitor shall continue to solicit proxies at Parent’s expense until the
termination of this Agreement or the completion of the Parent Stockholders Meeting and any
adjournments thereof, whichever is earlier. At the Company’s election, to be made in a timely
manner so as not to delay the filing of the proxy statement, the proxy statement shall be included
in a Registration Statement on Form S-4 filed under the Securities Act of 1933, as amended (the
“Securities Act”).

Section 5.11 Notification. Either party shall give prompt notice to the other party
upon becoming aware that any representation or warranty made by it contained in this Agreement has
become untrue or inaccurate in any material respect, or of any failure of such party to comply with
or satisfy in any material respect any covenant, condition or agreement to be complied with or
satisfied by it under this Agreement. Each party to this Agreement shall promptly inform the other
parties of any communication to or from the Israeli Restrictive Trade Practices Commissioner, the
OCS, the Israel Securities Authority, the Companies Registrar or any other Governmental Authority
regarding the Merger or any of the other Transactions contemplated by this Agreement.

Section 5.12 Israeli Approvals.

(a) Government Filings. Each party to this Agreement shall use all commercially
reasonable efforts to deliver and file, as promptly as practicable after the date of this
Agreement, each notice, report or other document required to be delivered by such party to or filed
by such party with any Israeli Governmental Authority with respect to the Merger. Without limiting
the generality of the foregoing:

(i) the Company and Acquisition Subsidiary shall file the relevant documents with the Israeli
Companies Registrar in order to obtain the Certificate of Merger in accordance with the terms of
Section 2.2; and

(ii) the Company shall use all reasonable efforts to obtain, as promptly as practicable after
the date of this Agreement, any other consents that may be required in connection with the Merger,
including without limitation, those listed on Schedule 3.22 of the Company Disclosure Schedules and
including approval of the OCS. In this connection, if required, Parent shall provide to the OCS any
information reasonably requested by such authorities and shall, without limitation of the
foregoing, execute an undertaking in customary form in which Parent undertakes to comply with the
OCS laws and regulations and confirm to the OCS that the Company shall continue after the Merger
Effective Time to operate in a manner consistent with its previous undertakings to the OCS.

(b) Israeli Income Tax Ruling. The parties acknowledge that the Company has caused
its Israeli counsel, advisors and accountants to prepare and file with the Israeli Income Tax
Commissioner an application for a ruling: (i) deferring any obligation to pay capital gains tax on
the exchange of the Company Shares in the Merger subject to the restrictions imposed on the
Existing Company Shareholders and the Parent pursuant to Section 103(k) or 104(h) of the Israeli
Tax Ordinance (provided, however, that any ruling under Section 103(k) cannot impose any
restrictions on the transferability by the holders thereof of any shares of Parent Common Stock or
other securities of Parent issued and outstanding immediately prior to the Closing), and
(ii) confirming that the conversion of the Company Options into the Assumed Options will not result
in a requirement for an immediate Israeli tax payment and that the Israeli taxation will be
deferred until the exercise of the warrants or options issued in exchange of the Company Options
and Company Warrants, or in the event of Assumed Options which are part of a “Section 102
Plan,” until the actual sale of the shares of Parent Common Stock by the option holders (the
“Israeli Income Tax Ruling”). The Company shall use reasonable efforts to promptly take,
or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or
advisable under applicable Law to obtain the Israeli Income Tax Rulings.

Section 5.13 Indemnification and D&O Insurance.

(a) Indemnification of Parent, Acquisition Subsidiary and Company directors and
officers. From and after the Closing, Parent will, or will cause the Surviving Corporation to,
fulfill and honor in all respects the obligations of Parent, Acquisition Subsidiary and Company
pursuant to any indemnification agreements between Parent, Acquisition Subsidiary or Company and
its directors and officers in effect immediately prior to the Merger Effective Time and any
indemnification provisions under the Parent Articles or Company Articles to the maximum extent
permitted by law. The Parent Articles and the Articles of Association of the Surviving Corporation
will contain provisions with respect to exculpation and indemnification that are at least as
favorable to the D&O Indemnified Parties (defined below) as those contained in the Parent Articles
or Company Articles, which provisions will not be amended, repealed or otherwise modified in any
manner that would adversely affect the rights thereunder of individuals who, immediately prior to
the Merger Effective Time, were directors, officers, employees or agents of Parent, Acquisition
Subsidiary or the Company, unless such modification is required by Law.

(b) D&O Insurance. Parent will, or will cause the Surviving Corporation to, purchase,
for each person who is now, or has been at any time prior to the date hereof, or who becomes prior
to the Closing, a director or officer of Parent, Acquisition Subsidiary or the Company (the
“D&O Indemnified Parties”), an insurance policy, with an effective date as of the Closing,
which maintains in effect for six years from the Closing the current directors’ and officers’
liability insurance policies maintained by Parent or a substitute policy with coverage on customary
terms and conditions for companies similar to Parent, upon which Parent and the Company shall
mutually agree in writing within 30 days from the date hereof (provided that Parent may substitute
therefor policies of at least the same coverage containing terms and conditions that are not
materially less favorable) with respect to matters occurring prior to the Closing, or provides tail
coverage with respect thereto.

(c) Existing Rights. The provisions of this Section 5.13 are intended to be in
addition to the rights otherwise available to the current and former officers and directors of
Parent, Acquisition Subsidiary and the Company by Law, charter, bylaw or agreement, and shall
operate for the benefit of, and shall be enforceable by, each of the D&O Indemnified Parties, their
heirs and their representatives.

(d) Successors. In the event Parent or the Surviving Corporation or any of their
respective successors or assigns (i) consolidates with or merges into any other Person and shall
not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii)
transfers all or substantially all of its properties and assets to any Person, then, and in each
such case, proper provision shall be made so that the successors and assigns of Parent or the
Surviving Corporation, as the case may be, shall succeed to the obligations set forth in this
Section 5.13. Parent shall cause the Surviving Corporation to perform all of the obligations of
the Parent and the Surviving Corporation under this Section 5.13.

Section 5.14 Conduct of Business. During the period from the date of this Agreement
to the Merger Effective Time, each of Parent and the Company shall:

(i) conduct its business only in the ordinary course and consistent with prudent and prior
business practice, except for transactions permitted hereunder, or with the prior written consent
of the other party, which consent will not be unreasonably withheld; and

(ii) confer on a reasonable basis with each other regarding operational matters and other
matters related to the Merger.

Section 5.15 Prohibited Actions Pending Closing. Except as provided in this
Agreement, during the period from the date of this Agreement to the Merger Effective Time, neither
the Company nor Parent shall, without the prior written consent of the other Party:

(i) amend or otherwise change their respective Articles of Association or Articles of
Incorporation, as the case may be, or other governing documents;

(ii) other than the Reverse Split or as a result of the exercise or conversion of outstanding
stock options, warrants or shares of preferred stock, declare, set aside, make or pay any dividend
or other distribution to their respective shareholders, or redeem, purchase or otherwise acquire,
directly or indirectly, any of their capital stock, or authorize or effect any reverse stock split,
split-up or any recapitalization or make any changes in the amount of their authorized or issued
capital stock;

(iii) other than the AmiKet Transaction by Parent and under terms acceptable to the Company,
sell, license or otherwise dispose of, or agree to sell, license or dispose of, any of their
respective assets or properties, other than any assets or properties where such sale, license or
disposition occurs or is to occur in the ordinary course of their respective business consistent
with past practice;

(iv) take any action or omit to take any action for the purpose of preventing, delaying or
impeding the consummation of the Merger or the other transactions contemplated hereby; or

(v) other than in connection with the Private Placement or in connection with the delivery of
a fairness opinion to Parent’s Board of Directors, pay any finders or investment bankers’ fees in
connection with the transactions contemplated by this Agreement.

Section 5.16. Further Assurances. Subject to the terms and conditions herein
provided, each of the parties hereto agrees to use reasonable efforts to take, or cause to be
taken, all action and to do, or cause to be done, all things necessary, proper or advisable under
applicable laws and regulations to satisfy the conditions to Closing and to consummate and make
effective the transactions contemplated by this Agreement, including, without limitation, using
reasonable efforts to lift or rescind any injunction or restraining order or other order adversely
affecting the ability of the parties to consummate the transactions contemplated by this Agreement
and using reasonable efforts to prevent the breach of any representation, warranty, covenant or
agreement of such party contained or referred to in this Agreement and to promptly remedy the same.
In case at any time after the Merger Effective Time any further action is necessary or desirable
to carry out the purposes of this Agreement, the proper officers and directors of each party to
this Agreement shall take all such necessary action. Nothing in this Section 5.16 shall be
construed to require any party to participate in any threatened or actual legal, administrative or
other proceedings (other than proceedings, actions or investigations to which it is a party or
subject or threatened to be made a party or subject) in connection with consummation of the
transactions contemplated by this Agreement unless such party shall consent in advance and in
writing to such participation and the other party agrees to reimburse and indemnify such party for
and against any and all costs and damages related thereto.

Section 5.17 Initial Listing Application. After the execution of this Agreement,
Parent shall use its best efforts, to the extent allowed under the rules of each Eligible Market,
to prepare all filings and other documents necessary to be filed with each Eligible Market in
connection with the initial listing application for the inclusion of the Parent Common Stock on
each Eligible Market, conduct ongoing negotiations with each Eligible Market with the participation
of the Company and its counsel with respect to such listing and perform all acts requested by each
Eligible Market to the satisfaction of the Company and its counsel.

Section 5.18 Financial Statements.

(a) The parties shall have initiated or maintained a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with management’s general or
specific authorization and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences. The parties shall disclose to the parties’ respective outside auditors (A) all
significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect such party’s ability to
record, process, summarize and report financial data and (B) any fraud, whether or not material,
that involves management or other employees who have a significant role in each of the Parent and
the Company’s internal controls over financial reporting.

(b) The Company shall use its best efforts to deliver the Company Financial Statements to
Parent by January 31, 2013. Company acknowledges that Parent cannot file the preliminary proxy
materials referred to in Section 5.10A hereof with the SEC until the Company Financial Statements
have been made available to Parent.

(c) In connection with Parent’s preparation of the preliminary and definitive proxy materials
referred to in Section 5.10A, Parent and the Company, subject to Company’s control, review and
approval on all information relating to the Company, the Surviving Corporation and Israeli Law
requirements, shall cooperate in the preparation of any pro forma financial information required by
the Exchange Act for inclusion therein, as well as required by the Securities Act for inclusion in
the Private Placement Memorandum in connection with the Private Placement and by applicable Israeli
law for inclusion in the Merger Proposal.

Section 5.19 Private Placement. Parent and Company shall commence the Private
Placement promptly after the execution of this Agreement and, led by the Lead Investment Bank and
subject to the Company’s control, will prepare the Private Placement Memorandum. Any funds raised
in the Private Placement will dilute the Existing Company Shareholders and the stockholders of
Parent on a pro rata basis since the securities issued in the Private Placement will be converted
into shares of Parent Common Stock immediately following the Closing. The use of proceeds of the
Private Placement shall be in accordance with a budget to be approved by the board of Parent
immediately following the Closing.

Section 5.20 Access to Parent and Acquisition Subsidiary. Parent shall afford to the
Company and its officers, directors, agents and counsel access at times and upon conditions
reasonably convenient to Parent and make available all properties, books, records, contracts and
documents of Parent and Acquisition Subsidiary, and an opportunity to make such investigations as
they shall reasonably desire to make of Parent and Acquisition Subsidiary; and Parent shall furnish
or cause to be furnished to the Company and its authorized representatives all such information
with respect to the business and affairs of Parent and Acquisition Subsidiary as the Company and
its authorized representatives may request and make the officers, directors, employees, auditors
and counsel of Parent and Acquisition Subsidiary available for consultation and permit access to
other third parties reasonably requested for verification of any information so obtained.

Section 5.21 Access to the Company. The Company shall afford to Parent and its
officers, directors, agents and counsel access at times and upon conditions reasonably convenient
to the Company and make available all properties, books, records, contracts and documents of the
Company, and an opportunity to make such investigations as it shall reasonably desire to make of
the Company; and the Company shall furnish or cause to be furnished to Parent and its authorized
representatives all such information with respect to the business and affairs of the Company as
Parent and its authorized representatives may request and make the officers, directors, employees,
auditors and counsel of the Company available for consultation and permit access to other third
parties reasonably requested for verification of any information so obtained.

Section 5.22 Loans by either Parent or Company. Funds raised by either Company or
Parent through one or more closings under the Private Placement prior to the Closing, shall dilute
the Existing Company Shareholders and the stockholders of Parent in accordance with the Ratio. The
Company and Parent will negotiate the terms on which Parent or Company, respectively, will advance
a portion of the proceeds thereof to the other party to fund its operations and transaction costs
prior to the Closing by a loan mechanism bearing interest at Libor plus 3%.

Section 5.23 Securities Law Matters. The parties agree to cooperate with each other
in registering the issuance of the Merger Shares to the holders of Company Shares or qualifying the
issue of the Merger Shares to the holders of Company Shares under Section 4(2) and/or Regulation S
and/or Regulation D, in each case, under the Securities Act and in complying with all state and
other securities laws in respect thereto (including the laws of the State of Israel), and in
connection therewith, to assist in the preparation of any offering materials to be delivered by
Parent to the shareholders of the Company. Neither party, nor any of its agents is or shall be
authorized to act on the other party’s behalf with respect to any aspect of the transactions
contemplated by this Agreement or make any solicitations of or representations to any of the
shareholders of the other party on its behalf. Neither this Agreement nor any other by either
party shall be deemed an offer with respect to the Merger Shares or any other securities of either
party.

Section 5.24 Listing. Parent and the Company will use their respective best efforts
following the Closing to satisfy either the NASDAQ or the NYSE MKT general listing requirements,
and will commence and coordinate preparation of the relevant listing application materials prior to
the Closing.

Section 5.25 Registration Obligations. The Parent shall file a Registration Statement
on From S-4 in connection with the Parent’s proxy statement or a resale registration on Form S-1
immediately upon the Closing for the registration of the shares of Parent Common Stock being
received pursuant to the Merger by holders of Company Shares, the form and timing of such
registration statement to be determined in the sole discretion of the Company by notice provided to
the Parent prior to the filing of the proxy statement with the SEC and in a timely manner so as not
to delay the filing of such proxy statement.

Section 5.27 MidCap Loan. Parent and the Company shall negotiate with MidCap the
terms of the MidCap Loan Agreement in accordance with the provisions of the MidCap Commitment
Letter. 

ARTICLE VI

CONDITIONS OF PARTIES’ OBLIGATIONS

Section 6.1 Conditions Precedent to Each Party’s Obligation to Effect the Merger. The
respective obligations of each party to effect the Merger shall be subject to the fulfillment or
satisfaction, prior to or on the Closing Date, of the following conditions:

(a) Shareholder Approval; Board Approval. The Merger shall have been duly approved by
(i) the requisite vote of the outstanding Company Shares entitled to vote thereon in accordance
with Israeli law (the “Company Shareholder Approval”); and (ii) the Company Board according
to Section 6.3. The Reverse Split and the Charter Amendments shall have been approved by the
requisite vote of the outstanding shares of capital stock of Parent entitled to vote thereon.

(b) No Material Adverse Change. No event shall have occurred which would have a
Material Adverse Effect on either of the Company or Parent.

(c) Governmental Authorities Approvals. All Governmental Authorities approvals
required for the consummation of the Merger shall have been obtained including, without limitation,
all Israeli Governmental Authorities approvals such as the Certificate of Merger, approval of the
OCS, the Israeli Income Tax Ruling and the Israeli Commissioner of Restrictive Trade Practices
required by applicable Law.

Section 6.2 Conditions Precedent to Obligations of Parent and Acquisition Subsidiary.
Parent’s and Acquisition Subsidiary’s obligation to effect the Merger and consummate the other
transactions contemplated to occur in connection with the Closing and thereafter is subject to the
satisfaction of each condition precedent listed below. All corporate and other proceedings and
actions taken in connection with the transactions contemplated hereby and, where such instruments
are not exhibits to this Agreement, all certificates, opinions, agreements, instruments and
documents mentioned herein or incident to any such transactions, shall be satisfactory in form and
substance to Parent and Acquisition Subsidiary. The Company shall furnish to Parent and
Acquisition Subsidiary such supporting documentation and evidence of the satisfaction of any or all
of the conditions precedent specified in this Section 6.2 as Parent or its counsel may reasonably
request.

(a) Representations and Warranties. As of the Closing, each representation and
warranty set forth in Article III shall be accurate and complete in all material respects after
giving full effect to any supplements to the schedules as amended from time to time so long as such
modification does not constitute a Company Material Adverse Effect.

(b) Actions. No action or Proceeding is pending or threatened by or before any
Governmental Authority, arbitrator, or mediator that seeks to restrain, prohibit, invalidate, or
collect any substantial damages arising out of the Transactions.

(c) Miscellaneous Closing Documents. Parent and Acquisition Subsidiary shall have
received the following:

(i) copies of resolutions of the Company and the shareholders of the Company, certified by the
Secretary or chief executive officer of the Company, authorizing and approving the execution,
delivery and performance of the Transaction Documents;

(ii) A certificate of the Company’s Chief Executive Officer certifying as of the Closing Date
as to the number of Company Shares issued and outstanding and the number of Company Shares
underlying outstanding options, warrants and other convertible securities;

(iii) receipt from the Company of the Additional Consents on or prior to December 15, 2012;
and

(iv) and such additional supporting documentation and other information with respect to the
transactions contemplated hereby as the Company may reasonably request.

(d) Parent Stockholder Approval. The Reverse Split and the Charter Amendments shall
have been approved by the stockholders of Parent.

(e) Private Placement. The Private Placement shall have been completed resulting in
gross proceeds to Parent and/or the Company of at least $2,500,000.

(f) Issuance of the Merger Shares. The Merger Shares shall have been registered
pursuant to a Registration Statement on Form S-4 declared effective by the SEC or the issuance of
the Merger Shares to the Existing Company Shareholders shall qualify as an exempt transaction
under Section 4(2) of the Securities Act and/or Regulation S and/or Regulation D promulgated
thereunder and shall be exempt from registration under the federal securities laws and all state
and other securities laws, including the securities laws of the State of Israel. The parties and
their counsel shall have been provided with completed investment questionnaires from the Existing
Company Shareholders and any other information necessary for such parties and their counsel
reasonably to have concluded that the issuance of the Merger Shares is in full compliance with
applicable securities laws.

(g) Company Shareholder Approval. The Existing Company Shareholders shall have
approved the Merger Proposal at the Company General Meeting.

Section 6.3 Conditions Precedent to Obligation of the Company. The Company’s
obligations to effect the Merger and consummate the other transactions contemplated to occur in
connection with the Closing and thereafter are subject to the satisfaction of each condition
precedent listed below. All corporate and other proceedings and actions taken in connection with
the transactions contemplated hereby and, where such instruments are not exhibits to this
Agreement, all certificates, opinions, agreements, instruments and documents mentioned herein or
incident to any such transactions shall be satisfactory in form and substance to the Company.
Parent and Acquisition Subsidiary shall furnish to the Company such supporting documentation and
evidence of satisfaction of any or all of the conditions specified in this Section 6.3 as the
Company may reasonably request.

(a) Representations and Warranties. As of the Closing, each representation and
warranty set forth in Article IV shall be accurate and complete in all material respects, after
giving full effect to any supplements to the schedules as amended from time to time so long as such
modification does not constitute a Material Adverse Effect on Parent.

(b) Actions. No action or Proceeding is pending or threatened by or before any
Governmental Authority, arbitrator, or mediator that seeks to restrain, prohibit, invalidate or
collect any substantial damages arising out of the Transactions.

(c) Director and Officer Resignations. All the directors and officers of Parent shall
have delivered to Parent and the Company an executed resignation letter with an effective date and
time agreed upon by the Company, except as otherwise contemplated by Section 5.6.

(d) Miscellaneous Closing Documents. The Company shall have received the following:

(i) Copies of resolutions of Parent’s and Acquisition Subsidiary’s respective board of
directors and shareholders, certified by their respective Secretaries, authorizing and approving,
to the extent applicable, the execution, delivery and performance of the Transaction Documents;

(ii) A certificate of Parent’s transfer agent and registrar certifying as of the Closing Date
as to the number of shares of Parent Common Stock issued and outstanding; and a certificate of
Parent’s Chief Financial Officer certifying as of the Closing Date as to the number of shares of
Parent Common Stock underlying outstanding options and warrants, and

(iii) Such additional supporting documentation and other information with respect to the
transactions contemplated hereby as the Company may reasonably request.

(iv) Receipt of ratification notice by the Acquisition Subsidiary of this Agreement within 15
days from the date hereof.

(e) Israeli Income Tax Ruling. The Company shall have obtained the Israeli Income Tax
Ruling.

(f) Parent Stockholder Approval and Acquisition Subsidiary Shareholder Approval. The
Reverse Split and the Charter Amendments shall have been approved by the stockholders of Parent and
the Merger shall have been approved by Parent, as the sole shareholder of Acquisition Subsidiary.

(g) Private Placement. The Private Placement shall have been completed resulting in
gross proceeds to Parent and/or the Company of at least $2,500,000.

(h) Issuance of the Merger Shares. The Merger Shares shall have been registered
pursuant to a Registration Statement on Form S-4 declared effective by the SEC or the issuance of
the Merger Shares to the Existing Company Shareholders shall qualify as an exempt transaction
under Section 4(2) of the Securities Act and/or Regulation S and/or Regulation D promulgated
thereunder and shall be exempt from registration under the federal securities laws and all state
and other securities laws, including the securities laws of the State of Israel. The parties and
their counsel shall have been provided with completed investment questionnaires, to the extent
reasonably necessary, from Existing Company Shareholders and any other information necessary for
such parties and their counsel reasonably to have concluded that the issuance of the Merger Shares
is in full compliance with applicable securities laws.

(i) Reverse Split; Charter Amendments. The Reverse Split shall have occurred and the
Charter Amendments shall have been duly filed with the Delaware Secretary of State.

(j) Swedish Governmental Authorities Approvals. All required Swedish approval
required under any Swedish Securities Laws have been obtained by Parent.

ARTICLE VII

SURVIVAL

Section 7.1 Survival. The representations, warranties, covenants and agreements made
or deemed made by any party to another shall not survive the Merger Effective Time but shall
terminate as of the Merger Effective Time.

ARTICLE VIII

[RESERVED]

ARTICLE IX

CLOSING

Section 9.1 Closing. The closing of the Merger (the “Closing”) shall occur at
the offices of Horn & Co. – Law Offices on such date mutually agreeable to the parties hereto (the
“Closing Date”) which shall be no later than the later to occur of (i) the second Business
Day after the satisfaction or waiver of the conditions set forth in Article VI or (ii) the Merger
Effective Time.

Section 9.2 Deliveries. As promptly after the Closing as practicable and subject to
the provisions of Section 2.6, Parent shall deliver to each Existing Company Shareholder the
certificates representing the Merger Shares to be issued pursuant to the provisions of Section 2.5
and to the holders of Company Options and Company Warrants substituting options and warrants as
applicable pursuant to the provisions of Section 2.8. Such presentment for delivery shall be
against delivery to Parent and Acquisition Subsidiary of the certificates, opinions, agreements and
other instruments referred to in Section 6.2. All of the other documents, instruments,
certificates and agreements referenced in Section 6.2 will also be executed and delivered as
described therein.

ARTICLE X

TERMINATION; NON-SOLICITATION

Section 10.1 Termination. This Agreement may be terminated at any time prior to the
Merger Effective Time, by action taken or authorized by the Board of Directors of the terminating
party or parties, and except as provided below, whether before or after the requisite approvals of
the shareholders of the Company:

(a) By mutual written consent of Parent and the Company;

(b) By either the Company or Parent if:

(i) (A) The Merger Effective Time shall not have occurred on or before March 31, 2013 (the
“End Date”); provided that the End Date shall be automatically extended for three months if
(1) the proxy statement or Registration Statement on Form S-4 is not mailed/declared effective by
February 12, 2013 and therefore requires the inclusion of financial statements of Parent or the
Company for the year ended December 31, 2012 that have not been completed by January 31, 2013 or
(2) on the End Date, only the condition set forth in Section 6.3(e) (Israeli Income Tax
Ruling) shall not have been satisfied, and (B) the party seeking to terminate this
Agreement pursuant to this Section 10.1(b) shall not have breached in any material respect its
obligations under this Agreement in any manner that shall have proximately caused the failure to
consummate the Merger on or before such date;

(ii) (A) Any Governmental Authority of competent jurisdiction that must grant an approval of
the Merger or the issuance of the Merger Shares has denied such approval and such denial has become
final and nonappealable or (B) any Governmental Authority of competent authority located in a
jurisdiction where either Parent or the Company have substantial revenues or operations shall have
issued an injunction, judgment or order or taken any other action prohibiting the consummation of
the Merger or the issuance of the Merger Shares and such injunction, judgment, order or other
action is or shall have become final and nonappealable; or

(iii) Parent’s shareholders shall have refused to grant the Parent shareholder approval
contemplated by this Agreement or the transactions;

(c) By Parent:

(i) If the Company shall have breached or failed to perform in any material respect any of its
representations, warranties, covenants or other agreements contained in this Agreement, or any such
representation or warranty shall have become inaccurate, which breach, inaccuracy or failure to
perform would result in a failure of a condition set forth in Sections 6.1 or 6.2;
provided, however, that prior to any termination pursuant to this Section 10.1(c),
(A) Parent shall deliver written notice to the Company no fewer than 10 days prior to the date of
termination stating Parent’s intention to terminate this Agreement pursuant to Section 10.1(c) and
the basis for such termination and (B) if such breach, inaccuracy or failure to perform is curable
by the Company prior to the End Date, then Parent shall not terminate this Agreement pursuant to
this Section 10.1(c); provided, that the Company continues to use commercially reasonable
efforts to cure such breach, inaccuracy or failure to perform (it being understood that Parent may
not terminate this Agreement pursuant to this Section 10.1(c) if it shall have materially breached
this Agreement).

(ii) If an event shall have occurred which would have a Material Adverse Effect on the
Company.

(iii) The Company does not deliver to Parent the Company Financial Statements on or before
January 31, 2013.

(d) By the Company:

(i) If Parent or Acquisition Subsidiary shall have breached or failed to perform in any
material respect any of their respective representations, warranties, covenants or other agreements
contained in this Agreement, or any such representation or warranty shall have become inaccurate,
which breach, inaccuracy or failure to perform would result in a failure of a condition set forth
in Section 6.1 or 6.3; provided, however, that prior to any termination pursuant to
this Section 10.1(d), (A) the Company shall deliver written notice to Parent no fewer than 10 days
prior to the date of termination stating the Company’s intention to terminate this Agreement
pursuant to Section 10.1(d) and the basis for such termination and (B) if such breach, inaccuracy
or failure to perform is curable by Parent or Acquisition Subsidiary, as applicable, prior to the
End Date, then the Company shall not terminate this Agreement pursuant to this Section 10.1(d);
provided, that Parent and Acquisition Subsidiary continue to use their respective
commercially reasonable efforts to cure such breach, inaccuracy or failure to perform (it being
understood that the Company may not terminate this Agreement pursuant to this Section 10.1(d) if it
shall have materially breached this Agreement).

(ii) If an event shall have occurred which would have a Material Adverse Effect on Parent or
Acquisition Subsidiary.

(iii) In the event that Parent’s Specified Liabilities at the Closing exceeds $9,000,000 (as
increased after March 31, 2013 by an amount equal to one-half of the Adjustment), the Company shall
have a right to terminate the Agreement.

Section 10.2 No Solicitation. Except as set forth herein, unless and until this
Agreement shall have been terminated pursuant to and in compliance with this Article X, neither
the Company nor the Parent shall, nor shall it authorize its officers, directors, affiliates,
agents, employees, representatives or advisors to, (i) solicit, initiate, encourage (including by
way of furnishing information) or take any action to facilitate the submission of any inquiries,
proposals or offers (whether or not in writing) from any person (other than the other parties
hereto and their respective Affiliates) relating to (A) any acquisition or purchase of all or
substantially all the assets of the Company or Parent, or of any class of equity securities of the
Company or Parent, (B) any tender offer (including a self tender offer) or exchange offer, (C) any
merger, consolidation, business combination, sale of substantially all assets, recapitalization,
liquidation, dissolution or similar transaction involving the Company or Parent, or (D) any other
transaction the consummation of which would or would reasonably be expected to impede, interfere
with, prevent or materially delay the Merger or which would or would reasonably be expected to
materially dilute the benefits to the other party hereto of the transactions contemplated by this
Agreement (collectively, “Acquisition Proposals”), or agree to, recommend or endorse any
Acquisition Proposal, (ii) enter into or execute any agreement with respect to any of the foregoing
or (iii) enter into or participate in any discussions or negotiations regarding any of the
foregoing.

Section 10.3 Liability. In the event of termination of this Agreement pursuant to
this Article X, this Agreement shall terminate and there shall be no other liability on the part of
the Company or Parent to the other. Notwithstanding the foregoing, in the event of an intentional
breach of this Agreement, the aggrieved party shall be entitled to all rights and remedies
available at law or in equity.

ARTICLE XI

MISCELLANEOUS

Section 11.1 Notices. Any notice, request or other communication hereunder shall be
given in writing and shall be delivered personally or mailed, certified or registered mail, return
receipt requested, or delivered by overnight courier service or sent by facsimile transmission or
email, to the following addresses, or such other addresses as shall be given by notice delivered
hereunder, and shall be deemed to have been given upon delivery, if delivered personally, five days
after mailing, if mailed, one Business Day after timely delivery to the overnight courier service,
if delivered by overnight courier service, or upon receipt when delivery is made by facsimile
transmission or email:

If to Parent or Acquisition Subsidiary, to:

EpiCept Corporation

777 Old Saw Mill River Road

Tarrytown, NY 10591

Attn: Robert W. Cook, President and Chief Financial Officer

Phone: (914 606- 3572

Fax: (914) 606-3501

Email: rcook@epicept.com

With a copy to:

Eilenberg & Krause LLP

11 East 44th Street, 19th Floor

New York, NY 10017

Attn: Adam D. Eilenberg, Esq.

Phone: 212-994 4766

Fax: 212-986-2399

Email: ade@eklawllp.com

And

Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co.

One Azrieli Center

Round Building

Tel Aviv 67021 Israel 67021

Attn: Daniel Gamulka, Esq.

Phone: 972-3-607-4474

Fax: 972-3-607-4422

Email: daniel@gkh-law.com

If to the Company or the Surviving Corporation, to:

Immune Pharmaceuticals Ltd.

15 Aba Eban Avenue

P.O.B. 12106

Industrial Zone Herzliya-Pituach, 46733, Israel

Attn: Dr. Daniel Gedeon Teper, CEO

Fax: 972.9.88.666 13

Email: daniel.teper@immunepharma.com

With a copy to:

Horn & Co.

5 Azrieli Center

Square Tower, 40th Floor

Tel Aviv 67021, Israel

Attention: Yuval Horn, Adv.

Phone: 972.3.637.8200

Fax: 972.3.637.8201

Email: yhorn@hornlaw.co.il

And

Greenberg Traurig LLP

333 SE 2nd Avenue

Suite 4400

Miami, FL 33131

Phone: 305.579.0500

Fax: 305.579.0717

Attention: Robert L. Grossman, Esq.

Email: grossmanb@gtlaw.com

Section 11.2 Entire Agreement. This Agreement, including the schedules and exhibits
attached hereto, contains the entire understanding of the parties hereto with respect to the
subject matter hereof. This Agreement supersedes all prior oral or written agreements and
undertakings between the parties with respect to such subject matter. Neither this Agreement nor
any of the terms or provisions hereof is binding upon or enforceable against any party hereto
unless and until the same is executed and delivered by all of the parties hereto.

Section 11.3 Expenses. Each party shall bear and pay all of the legal, accounting and
other costs and expenses incurred by it in connection with the transactions contemplated by this
Agreement.

Section 11.4 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

Section 11.5 Successors and Assigns; Assignment. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors, assigns and heirs;
provided, however, that neither the Company, Parent nor Acquisition Subsidiary shall directly or
indirectly transfer or assign any of its rights hereunder in whole or in part without the written
consent of the Company (in the case of Parent and Acquisition Subsidiary) or Parent (in the case of
the Company), which written shall not be unreasonably withheld or delayed, and any such transfer or
assignment without such written consent shall be void.

Section 11.6 No Third Parties Benefited. This Agreement is made and entered into for
the sole protection and benefit of the parties hereto, their successors, assigns and heirs, and no
other Person shall have any right or action under this Agreement.

Section 11.7 Counterparts. This Agreement may be executed in one or more
counterparts, with the same effect as if all parties had signed the same document. Each such
counterpart shall be an original, but all such counterparts together shall constitute a single
agreement. In the event that any signature is delivered by facsimile transmission, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such facsimile signature page
was an original thereof.

Section 11.8 Recitals, Schedules and Exhibits. The Recitals, Schedules and Exhibits
to this Agreement are incorporated herein and, by this reference, made a part hereof as if fully
set forth herein.

Section 11.9 Section Headings and Gender. The Section headings used herein are
inserted for reference purposes only and shall not in any way affect the meaning or interpretation
of this Agreement. All personal pronouns used in this Agreement shall include the other genders,
whether used in the masculine, feminine or neuter gender, and the singular shall include the
plural, and vice versa, whenever and as often as may be appropriate.

Section 11.10 Governing Law. This Agreement is to be construed in accordance with and
governed by the internal laws of the State of Israel without giving effect to any choice of law
rule that would cause the application of the laws of any jurisdiction other than the internal laws
of the State of Israel to the rights and duties of the parties. Any dispute, controversy or claim
arising out of or relating to this Agreement shall be settled by arbitration in accordance with the
International Chamber of Commerce (“ICC”) Arbitration Rules as at present in force and
shall be held at London, England in the English language by one arbitrator.

Section 11.11 Specific Performance; Remedies. Each of Parent and the Company
acknowledges and agrees that the other party would be damaged irreparably if any provision of this
Agreement is not performed in accordance with its specific terms or is otherwise breached.
Accordingly, each of Parent, Acquisition Subsidiary and the Company agrees that the other party
will be entitled to seek an injunction or injunctions to prevent breaches of the provisions of this
Agreement and to enforce specifically this Agreement and its terms and provisions in any action
instituted in any court of competent jurisdiction, in addition to any other remedy to which they
may be entitled, at law or in equity. Except as expressly provided herein, the rights, obligations
and remedies created by this Agreement are cumulative and in addition to any other rights,
obligations or remedies otherwise available at law or in equity, and nothing herein will be
considered an election of remedies.

Section 11.12 No Jury Trial. EACH PARTY HERETO HEREBY WAIVES ITS RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER
TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS
SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE
SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH
PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER WILL
APPLY TO ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS TO (OR ASSIGNMENTS OF) THIS
AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
(WITHOUT A JURY) BY THE COURT.

Section 11.13 Amendment and Waivers. This Agreement may be amended by action taken by
or on behalf of the respective Boards of Directors of Parent, Acquisition Subsidiary and the
Company, and the observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the written consent of
the Company, Parent and Acquisition Subsidiary at any time prior to the Merger Effective Time;
provided, that notwithstanding the foregoing, after the Existing Company Shareholders
approve and adopt this Agreement and the Merger, no amendment to this Agreement may be made that
would reduce the amount of or change the Merger Shares or otherwise would require the Existing
Company Shareholders to approve such amendment under Israeli Law, unless the Existing Company
Shareholders approve such amendment in accordance with Israeli Law. Amendments to this Agreement
must be in writing and signed by the Parties.

Section 11.14 Electronic Signatures.

(a) Execution on Paper. Notwithstanding the Electronic Signatures in Global and
National Commerce Act (15 U.S.C. Section 7001 et seq.), the Uniform Electronic
Transactions Act or any other Law relating to or enabling the creation, execution, delivery or
recordation of any contract or signature by electronic means, and notwithstanding any course of
conduct engaged in by the Company, Acquisition Subsidiary and Parent, neither the Company, Parent
or Acquisition Subsidiary will be deemed to have executed a transaction document or other document
contemplated thereby (including any amendment or other change thereto) unless and until such party
shall have executed such transaction document or other document on paper by a handwritten original
signature or any other symbol executed or adopted by that party with the current intention to
authenticate such transaction document or such other document contemplated.

(b) Electronic Delivery. Delivery of a copy of a transaction document or such other
document bearing an original signature by facsimile transmission (whether directly from one
facsimile device to another by means of a dial-up connection or whether mediated by the worldwide
web), by electronic mail in “portable document format” (“.PDF”) form, or by any other electronic
means intended to preserve the original graphic and pictorial appearance of a document, will have
the same effect as physical delivery of the paper document bearing the original signature.
“Originally signed” or “original signature” means or refers to a signature that has not been
mechanically or electronically reproduced.

Section 11.15 Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. If an ambiguity or question of intent or
interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto
and no presumption or burden of proof will arise favoring or disfavoring any party because of the
authorship of any provision of this Agreement. Any reference to any Law will be deemed also to
refer to law as amended and all rules and regulations promulgated thereunder, unless the context
requires otherwise. The words “include,” “includes,” and “including” will be deemed to be followed
by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to
include any other gender, and words in the singular form will be construed to include the plural
and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,”
“hereof,” “hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and
not to any particular subdivision unless expressly so limited. The parties hereto intend that each
representation, warranty, and covenant contained herein will have independent significance. If any
party hereto has breached any representation, warranty, or covenant contained herein in any
respect, the fact that there exists another representation, warranty or covenant relating to the
same subject matter (regardless of the relative levels of specificity) which that party has not
breached will not detract from or mitigate the fact that such party is in breach of the first
representation, warranty or covenant. The language used in this Agreement is deemed to be the
language chosen by the parties to express their mutual intent, and no rules of strict construction
will be applied against any party.

[Signature Page Follows]

1

IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be binding and
effective as of the day and year first set forth above.

EPICEPT CORPORATION

By:

Name:

Title: President

EPICEPT ISRAEL LTD., in formation

BY: EPICEPT CORPORATION

By:

Name:

Title: President

IMMUNE PHARMACEUTICALS LTD.

By:

Name: Dr. Daniel Gedeon Teper

Title: Chief Executive Officer

22012.11.13 8-K EX4.1

Exhibit 4.1

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.
CELANESE US HOLDINGS LLC
4.625% SENIOR NOTES DUE 2022
	
					
	No. 1
	 
	 
	 
	$500,000,000

	 
	 
	 
	 
	 

CUSIP No. 15089Q AD6 
ISIN No. US15089QAD60
CELANESE US HOLDINGS LLC, a Delaware limited liability company, for value received, promises to pay to Cede & Co., or registered assigns, the principal sum of  Five Hundred Million United States Dollars (US$500,000,000) on November 15, 2022.
Interest Payment Dates:  March 15 and September 15 and on November 15, 2022.
Regular Record Dates:  March 1 and September 1.
Additional provisions of this Note are set forth on the other side of this Note.

        

IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed.	
				
	 
	 
	 
	 

	 
	CELANESE US HOLDINGS LLC
 

	 
	By:
	 

	 
	Name:  
	 

	 
	Title:  
	 

	 

  
Dated: November 13, 2012

 

    

[Global Note]    

TRUSTEE’S CERTIFICATE OF AUTHENTICATION
This is one of the Notes of the series designated therein referred to in the within-mentioned Indenture.
Dated: November 13, 2012

	
				
	 
	 
	 
	 

	 
	WELLSFARGO BANK, NATIONAL ASSOCIATION
as Trustee

	 
	By:
	 

	 
	 
	Authorized Officer

[Global Note]    

4.625% Senior Note due 2022
1.    Interest
CELANESE US HOLDINGS LLC, a Delaware limited liability company (the “Issuer”), promises to pay interest on the principal amount of this Note at the rate per annum shown above.  The Issuer shall pay interest semiannually on March 15 and September 15 of each year, commencing March 15, 2013, and on the final maturity date of the Notes.  Interest on the Notes shall accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for, from November 13, 2012 until the principal hereof is due.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.  The Issuer shall pay interest on overdue principal and premium, if any, at the rate borne by the Notes, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful.
2.    Method of Payment
The Issuer shall pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders at the close of business on the March 1 or September 1 next preceding the interest payment date even if Notes are canceled after the record date and on or before the interest payment date (whether or not a Business Day).  Holders must surrender Notes to a Paying Agent to collect principal payments.  The Issuer shall pay principal, premium, if any, and interest in money of the United States of America that at the time of payment is legal tender for payment of public and private debts.  Payments in respect of the Notes represented by a Global Note (including principal, premium, if any, and interest) shall be made by wire transfer of immediately available funds to the accounts specified by The Depository Trust Company, the Issuer or any successor depositary.  The Issuer will make all payments in respect of a certificated Note (including principal, premium, if any, and interest), at the office of each Paying Agent, except that, at the option of the Issuer, payment of interest may be made by mailing a check to the registered address of each Holder thereof.
3.    Paying Agent and Registrar
Initially, Wells Fargo Bank, National Association (the “Trustee”), will act as Paying Agent and Registrar.  The Issuer may appoint and change any Paying Agent or Registrar without notice.  The Issuer or any of its Subsidiaries may act as Paying Agent or Registrar.
4.    Indenture
The Issuer issued the Notes under an Indenture (the “Base Indenture”), dated as of May 6, 2011, among the Issuer, Celanese Corporation, a Delaware corporation (the “Parent Guarantor”), and the Trustee, as amended with respect to the Notes by the Second Supplemental Indenture dated November 13, 2012 (the “Second Supplemental Indenture”) and, together with the Base Indenture, the “Indenture”), among the Issuer, the guarantors party thereto (the “Guarantors”) and the Trustee, which collectively constitutes the Indenture governing the Notes.  The terms of the Notes include those stated in the Indenture and those made part of the Indenture 

        

by reference to the Trust Indenture Act of 1939, as amended as in effect on the date of the Indenture (the “TIA”).  The Notes include all terms and provisions of the Indenture, and Holders are referred to the Indenture and the TIA for a statement of such terms and provisions.  This Note is one of a series of securities designated as the 4.625% Senior Notes due 2022 of the Issuer.  Capitalized terms used herein have the same meanings given in the Indenture unless otherwise indicated.
The aggregate principal amount at maturity of the Notes which may be authenticated and delivered under the Indenture shall be unlimited.  In addition, the aggregate principal amount of Securities of any class or series which may be authenticated and delivered under the Indenture shall be unlimited, provided that such Securities shall rank equally with the Notes.
5.    Optional Redemption
The Notes may be redeemed, in whole or in part, at the option of the Issuer upon not less than 30 nor more than 60 days’ prior notice mailed by first-class mail to each Holder’s registered address, at a redemption price equal to 100% of the principal amount of the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest to the applicable redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).
6.    Sinking Fund
The Notes are not entitled to the benefit of any mandatory redemption or sinking fund.
7.    Denominations, Transfer, Exchange
The Notes are in fully registered form without coupons in denominations of $1,000 and integral multiples of $1,000 in excess thereof.  A registered Holder may transfer or exchange Notes in accordance with the Indenture.  Upon any such transfer or exchange, the Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements or transfer documents.  No service charge shall be made for any registration of transfer or exchange, but the Issuer or the Trustee may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith permitted by the Indenture.  The Registrar need not register the transfer of or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or to transfer or exchange any Note for a period of 15 days prior to a selection of Notes to be redeemed.
8.    Persons Deemed Owners
The registered Holder of this Note shall be treated as the owner of it for all purposes.

        

9.    Unclaimed Money
Subject to any applicable abandoned property law, if money for the payment of principal or interest held by the Trustee or a Paying Agent remains unclaimed for two years, the Trustee or Paying Agent, as applicable, shall pay the money to the Issuer upon written request. Thereafter, Holders entitled to the money must look to the Issuer for payment as general creditors, and the Trustee and each Paying Agent shall have no further liability with respect to such monies.
10.    Discharge and Defeasance
Subject to certain conditions and limitations set forth in the Indenture, the Issuer may terminate some of or all its obligations under the Notes and the Indenture if the Issuer deposits with the Trustee money or U.S. Government Securities for the payment of principal of, premium, if any, and interest, on, the Notes to redemption or maturity, as the case may be.
11.    Modification and Waiver
Subject to certain exceptions set forth in the Indenture, the Indenture and the Notes may be amended, or default may be waived, with the consent of the Holders of a majority in principal amount of the outstanding Notes.  Without notice to or the consent of any Holder, the Issuer and the Trustee may amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency.
12.    Defaults and Remedies
If an Event of Default occurs (other than an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of the Issuer set forth in the Indenture) and is continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding Notes, in each case, by notice to the Issuer, may declare the principal of, premium, if any, and accrued but unpaid interest on all the Notes to be due and payable.  If an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of the Issuer occurs, the principal of, premium, if any, and interest on all the Notes shall become immediately due and payable without any declaration or other act on the part of the Trustee or any Holders.  Under certain circumstances, the Holders of a majority in principal amount of the outstanding Notes may rescind any such acceleration with respect to the Notes and its consequences.
13.    Trustee Dealings with the Issuer
Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with and collect obligations owed to it by the Issuer or its Affiliates and, subject to the Indenture, may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Trustee.

        

14.    Guarantees 
The Note will be entitled to the benefits of certain Guarantees made for the benefit of the Holders. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the Holders.
15.    No Recourse Against Others
No director, officer, employee, incorporator or holder of any equity interests in the Issuer or any Guarantor shall have any liability for or any obligations, covenants or agreements of the Issuer or the Guarantors under the Notes or the Indenture or for any claim based thereon or otherwise in respect of, or by reason of, such obligations or their creation. By accepting a Note, each holder expressly waives and releases all such liability.  The waiver and release are a condition of, and part of the consideration for, the execution of the Indenture and the issuance of the Notes.
16.    Authentication
This Note shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the other side of this Note.
17.    Abbreviations
Customary abbreviations may be used in the name of a holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gifts to Minors Act).
18.    Governing Law
THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.
19.    CUSIP Number and ISIN
Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused the CUSIP number and ISIN to be printed on this Note and has directed the Trustee to use the CUSIP number and ISIN in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such number either as printed on this Note or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.
The Issuer will furnish to any Holder of Notes upon written request and without charge to the Holder a copy of the Indenture and a copy of this Note.

        

ASSIGNMENT FORM
To assign this Note, fill in the form below:
I or we assign and transfer this Security to
________________________________________________________________________ 
(Print or type assignee’s name, address and zip code)
________________________________________________________________________ 
(Insert assignee’s soc. sec. or tax I.D. No.)
and irrevocably appoint ____________ agent to transfer this Note on the books of the Issuer.  The agent may substitute another to act for him.
________________________________________________________________________
	
					
	Date:
	 
	 
	Your Signature:
	 

	 
	 
	 
	 
	(Sign exactly as your name appears on the face of this Note.)

SIGNATURE GUARANTEE
Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

        

OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have all or any part of this Note purchased by the Issuer pursuant to Section 4.9 of the Second Supplemental Indenture, check the box:   ̈
If your want to have only part of the Note purchased by the Issuer pursuant to Section 4.9 of the Second Supplemental Indenture, state the amount you elect to have purchased:	
			
	 
	 
	 

	$
	 

	(multiple of $1,000)

	 Date:
	 

	
					
	 
	 
	 
	Your Signature:
	 

	 
	 
	 
	 
	(Sign exactly as your name appears on the face of this Note.)

SIGNATURE GUARANTEE
Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

        

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY
The initial principal amount of this Global Security is Five Hundred Million Dollars ($500,000,000).  The following increases or decreases in this Global Security have been made:
                	
									
	Date of 
Exchange
	 
	Amount of decrease in 
Principal Amount of 
this Global Security
	 
	Amount of increase 
in Principal Amount of this Global Security
	 
	Principal Amount 
of this Global Security following such decrease or increase
	 
	Signature of 
authorized signatory 
of Trustee or Debt 
Securities Custodian

	 
	 
	 
	 
	 
	 
	 
	 
	 

        

NOTATION OF SUBSIDIARY GUARANTEE
Each of the undersigned (the “Subsidiary Guarantors”) hereby jointly and severally unconditionally guarantees, to the extent set forth in the Second Supplemental Indenture and subject to the provisions in the Indenture dated as of May 6, 2011 (the “Base Indenture”), among Celanese US Holdings LLC, a Delaware limited liability company (the “Issuer”), Celanese Corporation, a Delaware corporation and Wells Fargo Bank, National Association, as trustee (the “Trustee”), as amended with respect to the Notes by the Second Supplemental Indenture dated November 13, 2012 (the “Second Supplemental Indenture”), among the Issuer, the guarantors party thereto (the “Guarantors”) and the Trustee, which collectively constitutes the indenture governing the Debt Securities (the Base Indenture, as amended by the Second Supplemental Indenture, the “Indenture”), (a) the due and punctual payment of the principal of, premium, if any, and interest on the Notes, when and as the same shall become due and payable, whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on overdue principal of, premium, if any, and, to the extent permitted by law, interest on the Notes, and the due and punctual performance of all other obligations of the Issuer to the Holders or the Trustee, and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
The obligations of the Subsidiary Guarantors to the Holders and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article Six of the Second Supplemental Indenture, and reference is hereby made to the Indenture for the precise terms and limitations of this Guarantee.  Each Holder of the Note to which this Guarantee is endorsed, by accepting such Note, agrees to and shall be bound by such provisions.
[Signatures on Following Pages]

        

IN WITNESS WHEREOF, each of the Subsidiary Guarantors has caused this Guarantee to be signed by a duly authorized officer.    
	
				
	 
	 
	 
	 

	 
	CELANESE AMERICAS LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CELANESE ACETATE LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CELANESE CHEMICALS, INC.
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CELANESE FIBERS OPERATIONS LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CNA HOLDINGS LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

[Notation of Guarantee]

	
				
	 
	 
	 
	 

	 
	CELANESE INTERNATIONAL CORPORATION
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CELTRAN, INC.
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CNA FUNDING LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	KEP AMERICAS ENGINEERING PLASTICS, LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	TICONA FORTRON INC.
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

[Notation of Guarantee]

	
				
	 
	 
	 
	 

	 
	TICONA POLYMERS, INC.
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	TICONA LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CELANESE GLOBAL RELOCATION LLC
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	
				
	 
	 
	 
	 

	 
	CELANESE LTD.
 

	 
	By:
	CELANESE INTERNATIONAL CORPORATION,                                                                                                                                  

	 
	 
	its general partner 

	 
	By:
	

	 
	 
	Name:

	 
	 
	Title:

    

[Notation of Guarantee]

NOTATION OF PARENT GUARANTEE
For value received, the Parent Guarantor hereby absolutely, unconditionally and irrevocably guarantees to the holder of this Security the payment of principal of, premium, if any, and interest on, the Security upon which this Parent Guarantee is set forth in the amounts and at the time when due and payable whether by declaration thereof, or otherwise, and interest on the overdue principal, premium, if any, and, to the extent lawful, interest, on such Security, to the holder of such Security and the Trustee on behalf of the Holders, all in accordance with and subject to the terms and limitations of such Security and Article XI of the Base Indenture.  This Parent Guarantee will not become effective until the Trustee or authenticating agent duly executes the certificate of authentication on this Security.  This Parent Guarantee shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof.
Dated: November 13, 2012
	
				
	 
	 
	 
	 

	 
	CELANESE CORPORATION
 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

    

[Notation of Parent Guarantee]

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