Document:

Unassociated Document

    

    Exhibit
      10.1

     

    

     

    EMPLOYMENT
      AGREEMENT

    

    This
      EMPLOYMENT AGREEMENT (the “Agreement”),
      dated
      as of September 1, 2006, is entered into among FBO Air, Inc. (the “Company”),
      and
      Keith P. Bleier (“Executive”).

    

    Recitals

    

    WHEREAS,
      the Company wishes to employ Executive and Executive wishes to be employed
      by
      the Company, on the terms and conditions set forth below.

    

    THEREFORE,
      the parties agree as follows:

    

    1. Employment
      Duties.
      During
      the Term (as defined in paragraph
      2
      below),
      the Company will employ Executive as Senior Vice President and Chief Financial
      Officer of the Company. Executive will devote substantially all of his business
      time and attention to the performance of his duties under this Agreement.
      Executive shall have the duties, rights and responsibilities normally associated
      with his position with the Company, together with such other reasonable duties
      consistent with Executive’s position and relating to the operation of the
      business of the Company and its affiliates as may be assigned to him from time
      to time by the Chairman or Chief Executive Officer of the Company or the Board
      of Directors of the Company. Executive hereby agrees to promote and develop
      all
      business opportunities that come to his attention relating to the current or
      anticipated future business of the Company, in a manner consistent with the
      best
      interest of the Company and with his duties under this Agreement. As used
      herein, the term “business opportunity” shall not include business opportunities
      involving investment in publicly traded stocks, bonds or other securities,
      or
      other investments of a personal nature.

    

    2. Term. The
      term
      of Executive’s employment under this Agreement (the “Term”)
      will
      begin on September 15, 2006 and will continue, subject to the termination
      provisions set forth in paragraph
      5
      below,
      until the third anniversary of such date; provided,
      however,
      that
      this Agreement will automatically renew for additional one-year periods unless
      either party gives written notice to the other not to extend the Term not less
      than 90 days prior to the then next upcoming expiration date.

    

    3. Salary
      and Bonus.

     

    a.
       Salary.
      During
      each year of the Term, Executive will receive a salary at the annual rate of
      $185,000 (the “Base
      Salary”),
      which
      amount shall increase by 5% on each anniversary date during the term of this
      Agreement. The Base Salary shall be payable in equal semi-monthly installments.
      The Board of Directors of the Company may increase such salary at any time
      and
      from time to time.

    
      
         

      

      
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    b. Incentive
      Bonus.
      In
      addition to Base Salary, the Executive shall be entitled to an annual
      performance bonus payable within 120 days after the end of each year ended
      December 31 in an amount which shall be determined in the sole discretion of
      the
      Board of Directors taking into account such factors concerning the performance
      of the Company and Executive and Executive’s overall compensation level as shall
      be determined by the Board of Directors. The primary criteria for the amount
      of
      the performance bonus will be the operating results of the Company, which
      factors shall be consistent with those provided to other executives similarly
      situated within the Company. The amount of the performance bonus shall be
      determined in the sole discretion of the Board of Directors, but shall not
      be
      less than the amount provided to other similarly situated executives, and
      Executive shall not be entitled to any performance bonus unless and until such
      performance bonus is approved by the Board of Directors.

    

    4. Fringe
      Benefits.
      In
      addition to the other compensation payable pursuant to this Agreement, during
      the Term:

    

    a. Standard
      Benefits.
      Executive will be entitled to receive such fringe benefits and perquisites,
      including medical and life insurance, as are generally made available from
      time
      to time to senior management employees and executives of the Company and to
      participate in any pension, profit-sharing, stock option or similar plan or
      program established from time to time by the Company for the benefit of its
      senior management employees, provided,
      that
      such benefits, perquisites and plans shall be at the same level or better,
      in
      the aggregate, than those made available generally to similarly situated
      employees of the Company. Without limiting the generality of the foregoing,
      the
      Company agrees to (i) pay premium expenses on behalf of Executive and family
      for
      medical, dental and vision insurance coverage; (ii) provide an automobile
      allowance of $700 per month plus the cost of insurance for one vehicle; (iii)
      provide and pay for term life insurance insuring the life of Executive during
      the term of this Agreement in the amount of One Million Dollars ($1,000,000.00),
      with one-half (1/2) of the proceeds thereof directed to such beneficiary or
      beneficiaries as Executive may from time to time appoint and one-half (1/2)
      the
      proceeds thereof directed to the Company.

    

    b. Vacation.
      In
      addition to standard Company holidays, the Executive shall be entitled each
      year
      to a vacation of three (3) weeks, during which time his compensation shall
      be
      paid in full. Each vacation shall be taken at such time as to minimize its
      affect on the operations of the Company.

    

    c. Business
      Expenses.
      The
      Company will pay or reimburse Executive for all business-related expenses
      incurred by Executive in the course of his performance of duties under this
      Agreement, subject to the procedures established by the Company from time to
      time with respect to incurrence, substantiation, reasonableness and
      approval.

    

    d. Stock
      Options.
      Executive shall be entitled to receive an Option to purchase shares of the
      Company’s Common Stock, par value $0.001 per share (the “Common
      Stock”),
      as
      follows:

    

    250,000
      shares on the date hereof;

    250,000
      shares on the first anniversary of the date hereof; and

    250,000
      shares on the second anniversary of the date hereof.

    
      
         

      

      
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    The
      price
      for the initial tranche shall be $0.60 per share. The per share price for the
      remaining tranches will be the fair market value of the Common Stock as of
      the
      close of business on the day immediately preceding each respective grant date.
      Each tranche shall be vested after one year and the executive will have five
      years to acquire the stock from the date of vesting. So long as it may be done
      lawfully, the manner of acquisition of stock shall be structured as to minimize
      adverse tax consequences to Executive.

    

    Additional
      options may be granted by Compensation Committee of the Board of Directors
      of
      the Company at its discretion.

    

    5. Termination
      of Employment.

    

    a. Death
      and Disability.
      Executive’s employment under this Agreement will terminate immediately upon his
      death and upon 30 days’ prior written notice given by the Company in the event
      Executive is determined to be “permanently disabled” (as defined
      below).

    

    b. For
      Cause.
      The
      Company may terminate Executive’s employment under this Agreement for “Cause”
(as defined below), upon providing Executive 30 days’ prior written notice of
      termination, which notice will describe in detail the basis of such termination
      and will become effective on the 30th day after Executive’s receipt thereof
      unless Executive reasonably cures the alleged violation or other circumstance
      which was the basis of such termination within such 30--day notice period;
      provided,
      however,
      that
      the termination for “Cause” under subparagraphs 5(f)(ii)(B), (C), (E) or (F)
      thereof shall be effective immediately upon the giving of the notice of
      termination and may not be cured by any act or event.

    

    c. For
      Good Reason.
      Executive may terminate his employment under this Agreement for “Good Reason”
(as defined below) upon providing the Company 30 days’ prior written notice of
      termination, which notice will detail the basis of such termination and will
      become effective on the 30th day after the Company’s receipt thereof, unless the
      Company cures the alleged violation or other circumstance which was the basis
      of
      such termination within such 30-day notice period.

    

    d. Without
      Cause.
      The
      Company may terminate Executive’s employment under this Agreement without
“Cause” at any time upon thirty (30) days written notice to the
      Executive.

    

    e. Change
      of Control.
      Notwithstanding anything to the contrary, the Company or Executive may terminate
      this Agreement upon ten (10) days’ notice to the other party upon the occurrence
      of a “Change of Control” (as defined below).

    

    f. Definitions.
      For
      purposes of this Agreement:

    

    (i) Executive
      will be deemed “permanently
      disabled”
if
      he
      becomes unable to discharge his normal duties as contemplated under this
      Agreement for at least four months during any eight-month period as a result
      of
      incapacity due to mental or physical illness as determined by a physician
      acceptable to Executive and the Company and paid by the Company, whose
      determination will be final and binding. If Executive and the Company are unable
      to agree on a physician, Executive and the Company will each choose one
      physician who will mutually choose the third physician, whose determination
      will
      be final and binding.

    
      
         

      

      
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    (ii) “Cause”
means
      either (A) a breach by Executive of any material provisions of this Agreement,
      but only if, after notice provided in subparagraph (b) above, Executive fails
      to
      cure such breach to the reasonable satisfaction of the Company; (B) conviction
      of a felony offense, whether or not such offense was committed in connection
      with the Company’s business; (C) theft, embezzlement, intentional or reckless
      false entries on records, intentional or reckless misapplication of funds or
      property, misappropriation of any asset, or any actual or constructive fraud;
      (D) gross neglect of duty and/or willfully engaging in gross misconduct
      materially and demonstrably injurious to the Company; (E) at any time during
      employment at the Company, intentionally or recklessly imparting confidential
      information, whether proprietary or non-proprietary, to any person other than
      (i) an authorized employee of the Company; or (ii) as required by law, or (iii)
      as part of a privileged communication to an attorney; or (F) receiving, during
      the term of this Agreement, compensation, income, anything of value, or a future
      interest in or future entitlement to compensation, income or a thing of value,
      from any person or entity who or which is engaged in the same or substantially
      the same business as the Company in the same product, service or geographical
      market, except stock dividends and/or capital gains from passive investments
      in
      financial institutions by Executive made in the ordinary course of business
      and
      as part of Executive’s investment portfolio.

    

    (iii) “Good
      Reason”
means
      a
      breach by the Company of any of its material obligations under this Agreement,
      but only if after expiration of the 30-day notice period provided in
subparagraph
      (c)
      above,
      the Company fails to cure such breach.

    

    (iv) “Change
      of Control”
means
      the occurrence of:

    

    (a) the
      sale
      by the Company of fifty-one percent (51%) of its assets to a single purchaser
      or
      to a group of associated purchasers; 

    

    (b) the
      merger or consolidation of the Company in a transaction in which the
      stockholders of the Company receive less than fifty percent (50%) of the
      outstanding voting shares of the new or continuing corporation; or

    

    (c) the
      sale,
      exchange, or other disposition, in one transaction, of at least fifty-one
      percent (51%) of the outstanding shares of the Company.

    

    6. Benefits
      upon Termination.

    

    a. Termination
      with Cause or Resignation.
      Upon
      termination of Executive’s employment by the Company for Cause or a voluntary
      resignation by Executive (other than for Good Reason pursuant to paragraph
      5(c)
      above)
      during the Term, the Company will remain obligated to pay Executive only the
      unpaid portion of his Base Salary and benefits to the extent accrued through
      the
      effective date of termination. Any amount due under this subparagraph will
      be
      payable within 30 days after the date of termination. In addition to whatever
      other rights or remedies the Company may have at law or in equity, all unvested
      stock options held by Executive, shall immediately expire on the date of
      termination and all unpaid bonuses shall be forfeited.

    
      
         

      

      
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    b. Termination
      without Cause or for Good Reason.
      Upon
      termination of Executive’s employment (x) by the Company without Cause or (y) by
      Executive for Good Reason, Executive will be entitled to the benefits provided
      below, subject to signing by Executive of a general release of claims in a
      form
      reasonably satisfactory to the Company:

    

    (i)
      In such
      event, the Executive shall be paid his Base Salary up to the date of
      termination, and in addition, there shall be paid to the Executive on the date
      of termination a severance allowance equal to one times then applicable Base
      Salary (less all amounts required to be withheld and deducted). 

    

    (ii)
      Further, the Company acknowledges that any incentive Bonus due Executive shall
      be paid on a pro-rated basis; that any issued but non-vested Options shall
      be
      terminated; and that benefits under paragraph
      4(a) shall
      continue for a period of six (6) months from the end of the month of
      termination.

    

    Notwithstanding
      anything herein to the contrary, the Company shall not terminate Executive’s
      employment without Cause during the initial 3-year Term of this Agreement;
      provided,
      however,
      that
      the Company may terminate Executive without Cause during any renewal period
      and
      may elect not to renew the Term.

    

    c. Termination
      Upon Death or Permanent Disability.
      Upon
      termination of Executive’s employment upon Executive’s death or permanent
      disability, Executive or Executive’s estate will be entitled to the benefits
      provided below:

    

    (i) Base
      Salary up to the date of death or termination; and

    

    (ii) Any
      incentive Bonus due Executive shall be paid on a pro-rated basis; and any issued
      but non-vested Options shall be terminated. 

    

    d. Termination
      upon Change of Control.
      Upon
      termination of Executive’s employment upon a Change of Control (x) by the
      Company or (y) by Executive within one (1) year after such Change of Control
      without Good Reason, Executive will be entitled to the benefits provided below,
      subject to signing by Executive of a general release of claims in a form
      reasonably satisfactory to the Company:

    

    (i) Executive
      shall be considered immediately and fully vested in any issued but non-vested
      Options;

    

    (ii) Executive
      shall be paid his Base Salary up to the date of termination, and in addition,
      there shall be paid to the Executive on the date of termination a severance
      allowance equal to one times then applicable Base Salary (less all amounts
      required to be withheld and deducted) and an amount equal to the incentive
      bonus
      paid to Executive in the immediately preceding year or due to Executive for
      such
      year; and

    
      
         

      

      
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    (iii) Executive
      shall continue to be covered by all non-cash benefit plans of the Company except
      for the retirement plans or retirement programs in which Executive participates
      or any successor plans or programs in effect on the date of such acquisition
      of
      control, for six (6) months thereafter; provided,
      however,
      that if
      during such time period Executive should enter into the employment of a
      competitor of the Company, his participation in such non-cash benefit plans
      would cease. In the event Executive is ineligible under the terms of such plans
      to continue to be so covered, the Company shall provide substantially equivalent
      coverage through other sources.

    

    e. No
      Mitigation.
      Executive will not be required to mitigate the amount of any payment provided
      for in this paragraph
      6
      by
      seeking other employment or otherwise, nor will the amount of any payment or
      benefit provided for in this paragraph
      6
      be
      reduced by any compensation earned by him as the result of employment by another
      employer or by retirement benefits after the date of termination, or
      otherwise.

    

    f. Expiration
      of this Agreement.
      In the
      event the Term of this Agreement expires without having otherwise been
      previously terminated pursuant to paragraph
      5 above
      or
      by the Company without Cause, Executive will not be entitled to any severance
      compensation whatsoever under this paragraph
      6.

    

    7. No
      Solicitation; Confidentiality; Competition;
      Cooperation

    

    a. During
      the Restricted Period (defined below), neither Executive nor any
      Executive-Controlled Person (defined below) will, without the prior written
      consent of the Board, directly or indirectly solicit for employment, employ
      in
      any capacity or make an unsolicited recommendation to any other person or entity
      that it employ or solicit for employment any person who is or was, at any time
      during the Restricted Period, an officer, executive or employee of the Company
      or of any of its affiliates. As used in this Agreement, the term “Executive-Controlled
      Person”
shall
      mean any company, partnership, firm or other entity as to which Executive
      possesses, directly or indirectly, the power to direct or cause the direction
      of
      the management and policies of such entity, whether through the ownership of
      voting securities, by contract or otherwise.

     

    b. Executive
      acknowledges that, through his status as an officer of the Company, he has,
      and
      will have, possession of important, confidential information and knowledge
      as to
      the business of the Company and its affiliates, including, but not limited
      to,
      knowledge of marketing and operating strategies, acquisition, leasing and other
      agreements, financial results and projections, future plans, the provisions
      of
      other important contracts entered into by the Company and its affiliates,
      possible acquisitions and similar information. Executive agrees that all such
      knowledge and information constitutes a vital part of the business of the
      Company and its affiliates and is by its nature trade secrets and confidential
      information proprietary to the Company and its affiliates (collectively,
“Confidential
      Information”).
      Except for information that becomes public other than as a result of disclosure
      by the Executive in violation of section 7 or as may be required by law,
      Executive agrees that, during the Restricted Period, he shall not, divulge,
      communicate, furnish or make accessible (whether orally or in writing or in
      books, articles or any other medium) to any individual, firm, partnership or
      corporation, any knowledge or information with respect to Confidential
      Information directly or indirectly useful in any aspect of the business of
      the
      Company or any of its affiliates. 

    
      
         

      

      
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    c. All
      memoranda, notes, notebooks, lists, records and other documents or papers (and
      all copies thereof), including such items stored in computer memories, portable
      computers and the like, on microfiche, disk or by any other means, made or
      compiled by or on behalf of Executive or made available to him relating to
      the
      Company are and shall be the Company’s property and shall be delivered to the
      Company promptly upon the termination of Executive’s employment with the Company
      or at any other time on request and such information shall be held confidential
      by Executive after the termination of his employment with the
      Company.

     

    d. During
      the Non-Competition Period, neither Executive nor any Executive-Controlled
      Person will (i) render any services, directly or indirectly, as an employee,
      officer, consultant or in any other capacity, to any individual, firm,
      corporation or partnership engaged in any business substantially providing
      services similar to those of the Company in the Restricted Area (such activities
      being herein called the “Company
      Business”).
      During the Non-Competition Period, Executive shall not, without the prior
      written consent of the Company, hold an equity interest in any firm, partnership
      or corporation which competes with Company Business, except that beneficial
      ownership by Executive (including ownership by any one or more members of his
      immediate family and any entity under his direct or indirect control) of less
      than five (5%) percent of the outstanding shares of capital stock of any
      corporation which may be engaged in any of the same lines of business as Company
      Business, if such stock is listed on a national securities exchange or publicly
      traded in the over-the-counter market, shall not constitute a breach of the
      covenants contained in this paragraph
      7.
      

     

    e. (i)
      As
      used in this Agreement, “Restricted
      Period”
shall
      mean the term of employment and twelve (12) months following Executive’s
      termination of employment for any reason.

    

    (ii)
      As
      used in this Agreement, “Non-Competition
      Period”
shall
      mean the term of employment and twelve (12) months following Executive’s
      termination of employment unless the termination is (A) by the Company without
      Cause (other than at the expiration of the Term), or (B) by the Executive for
      Good Reason, in which case the Non-Competition Period shall be one
      day.

    

    (iii)
      As
      used in this Agreement “Restricted
      Area”
shall
      mean a 50-mile radius around Elmira, Corning, and Horseheads, New
      York.

    

     

    f. Following
      Executive’s termination of employment, Executive will reasonably cooperate with
      the Company, its executives, counsel and other professional advisors (i) to
      the
      extent reasonably possible with respect to the consummation of matters that
      were
      in progress at the time of Executive’s termination of employment and (ii) with
      respect to any litigation or regulatory matters arising out of or related to
      the
      business, operations, or personnel of the Company (including participation
      in
      depositions, hearings and trials, as and if deemed necessary or appropriate
      by
      the Company, execution of appropriate affidavits and participation in interviews
      with Company counsel). The Company shall compensate Executive on a reasonable
      basis for any services provided by Executive pursuant to this paragraph
      7(f).

    
      
         

      

      
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    g. The
      provisions contained in this paragraph 7
      as to
      the time periods, scope of activities, persons or entities affected, and
      territories restricted shall be deemed divisible so that, if any provision
      contained in this paragraph
      7
      is
      determined to be invalid or unenforceable, such provisions shall be deemed
      modified so as to be valid and enforceable to the full extent lawfully
      permitted.

     

    h. Executive
      agrees that the provisions of this paragraph
      7
      are
      reasonable and necessary for the protection of the Company and that they may
      not
      be adequately enforced by an action for damages and that, in the event of a
      breach thereof by Executive or any Executive-Controlled Person, the Company
      shall be entitled to apply for and obtain injunctive relief in any court of
      competent jurisdiction to restrain the breach or threatened breach of such
      violation or otherwise to enforce specifically such provisions against such
      violation, without the necessity of the posting of any bond by the Company.
      Executive further covenants and agrees that if he shall violate any of his
      covenants under this paragraph 7,
      the
      Company shall not be obligated to make any payments or provide any benefits
      provided in paragraph
      6
      and the
      Company shall be entitled to recover any amounts previously paid pursuant to
      paragraph
      6.
      Such a
      remedy shall, however, not be exclusive and shall be in addition to any
      injunctive relief or other legal or equitable remedy to which the Company is
      or
      may be entitled. 

    

    8. Indemnification.
      To
      the
      full extent permitted by applicable law, Executive shall be indemnified and
      held
      harmless by the Company against any and all judgments, penalties, fines, amounts
      paid in settlement, and other reasonable expenses (including, without
      limitation, reasonable attorneys’ fees and disbursements) actually incurred by
      Executive in connection with any threatened, pending or completed action, suit
      or proceeding (whether civil, criminal, administrative, investigative or other)
      for any action or omission in his capacity as a director, officer or employee
      of
      the Company. Indemnification under this paragraph 8
      shall be
      in addition to, and not in substitution of, any other indemnification by the
      Company of its officers and directors.

    

    9. Miscellaneous.

    

    a. Executive
      represents and warrants that he is not a party to any agreement, contract or
      understanding, whether employment or otherwise, which would restrict or prohibit
      him from undertaking or performing employment in accordance with the terms
      and
      conditions of this Agreement.

    

    b. The
      provisions of this Agreement are severable and if any one or more provisions
      may
      be determined to be illegal or otherwise unenforceable, in whole or in part,
      the
      remaining provisions and any partially unenforceable provision to the extent
      enforceable in any jurisdiction will remain binding and
      enforceable.

    
      
         

      

      
        E-9

        
          

        

      

      
         

      

    

    

    

    c. The
      rights and obligations of the Company under this Agreement inure to the benefit
      of, and will be binding on, the Company and its successors and assigns, and
      the
      rights and obligations (other than obligations to perform services) of Executive
      under this Agreement will inure to the benefit of, and will be binding upon,
      Executive and his heirs, personal representatives and permitted assigns;
provided,
      however,
      that
      Executive shall not be entitled to assign or delegate any of his rights and
      obligations under this Agreement without the prior written consent of the
      Company.

    

    d. Any
      notice to be given under this Agreement will be personally delivered in writing
      or will have been deemed duly given when received after it is posted in the
      United States mail, postage prepaid, registered or certified, return receipt
      requested, or sent by overnight courier service addressed to each of the parties
      hereto at such address or addresses as each party shall provide from time to
      time in writing to the other. Initially such notices shall be sent,

    

    
      	 	
              If
                to Executive: 

            	
              Harter
                Secrest & Emery LLP

            
	 	 	
              Attention:
                Daniel R. Kinel, Esq.

            
	 	 	
              1600
                Bausch & Lomb Place

            
	 	 	
              Rochester,
                New York 14604

            
	 	 	 
	 	
              If
                to Company: 

            	
              FBO
                Air, Inc.

            
	 	 	
              Attention:
                Ronald J. Ricciardi

            
	 	 	
              101
                Hangar Road

            
	 	 	
              Avoca,
                Pennsylvania 18641.

            

    

    

    e. The
      failure of either party to enforce any provision or provisions of this Agreement
      will not in any way be construed as a waiver of any such provision or provisions
      as to any future violations thereof, nor prevent that party thereafter from
      enforcing each and every other provision of this Agreement. The rights granted
      the parties herein are cumulative and the waiver of any single remedy will
      not
      constitute a waiver of such party’s right to assert all other legal remedies
      available to it under the circumstances.

    

    f. THIS
      AGREEMENT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE
      OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS.

    

    g. Captions
      and paragraph headings used herein are for convenience and are not a part of
      this Agreement and will not be used in construing it.

    

    h. In
      the
      event of any dispute arising out of the subject matter of the Agreement, the
      prevailing party shall recover, in addition to any other damages assessed,
      its
      attorney’s fees and court costs incurred in litigating or otherwise settling or
      resolving such dispute whether or not an action is brought or prosecuted to
      judgment. 

    

    i. This
      Agreement contains the entire understanding of the parties. It may not be
      changed orally but only by an agreement in writing signed by the party against
      whom enforcement of any waiver, change, modification, extension, or discharge
      is
      sought.

    

    
      
         

      

      
        E-10

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the day and year
      first set forth above.

    
      	 	 
	 	
              FBO
                AIR, INC.

            
	 	 
	 	 
	 	 
	 	
              By:
                

            
	 	
              Name:
                Ronald J. Ricciardi

            
	 	
              Title:
                President and Chief Executive Officer

            
	
               

            	
               

            
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	
              Keith
                P. Bleier

            

    

    

     

    
      
         

      

      
        E-11Unassociated Document

    LICENSE
      AGREEMENT

    (the
      “Agreement”)

    

    

    Effective
      Date: April 22 , 2005 Between

     

    Rosetta
      Genomics Ltd. an Israel company of 10 Plaut Street, Science Park, Rehovot,
      Israel, hereinafter “ROSETTA”

     

    And

     

    Ambion,
      Inc., a Delaware corporation having its principal office at 2130 Woodward St.,
      Austin, Texas 78744, hereinafter “AMBION”. AMBION and ROSETTA may be referred to
      individually as the “Party” or collectively as the “Parties”.

     

    WHEREAS,
      ROSETTA has identified a large number of microRNA sequences using a proprietary
      bioinformatics approach;

     

    WHEREAS,
      AMBION is in the business of designing and developing kits including kits
      directed towards the use of microRNA;

     

    WHEREAS,
      ROSETTA desires to license to AMBION its microRNA sequences, and AMBION desires
      to take such a license;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual promises and covenants
      hereinafter set forth, the parties hereby agree as follows:

     

    1.  DEFINITIONS

     

    The
      following terms, when used in the Agreement, shall have the meanings set forth
      hereinbelow:

     

    A.  ROSETTA
      miRNA SEQUENCES shall mean miRNA sequences that A. (i) have been
      bioinformatically sequenced by ROSETTA or will be bioinformatically sequenced
      by
      ROSETTA in the future during the term of this Agreement, (ii) are the subject
      of
      one or more pending ROSETTA patent applications and (iii) are less than 90%
      homologous to miRNA sequences which are (a) published by third parties in the
      SANGER public registry prior to the Effective Date of this Agreement, or (b)
      published as a VALIDATED miRNA by a third party in a known scientific journal
      prior to the Effective Date of this Agreement, or B. are covered by an issued
      US
      Patent to which ROSETTA has rights. 

     

    Promptly
      upon receipt of any and all sequences from ROSETTA, AMBION shall examine such
      sequences and notify ROSETTA within 30 days (“Notification Period”) whether such
      sequences are 90% or more homologous to miRNA sequence published by a third
      party as set forth in this section (iii) above. Such notification shall include
      all reasonably required references and documentation evidencing the same.
      Following the Notification Period, any miRNA sequences provided by ROSETTA,
      which was not included in such notification shall be regarded as ROSETTA miRNA
      SEQUENCES under this Agreement.

     

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

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ROSETTA
      miRNA SEQUENCES includes VALIDATED ROSETTA miRNA SEQUENCES and NON-VALIDATED
      ROSETTA miRNA SEQUENCES.

     

    B.  VALIDATED
      ROSETTA miRNA SEQUENCES shall mean ROSETTA miRNA SEQUENCES which have been
      VALIDATED by ROSETTA prior to the provision of VALIDATED “0”
SEQUENCES.

     

    VALIDATED
      “0” SEQUENCES shall mean 140 (one hundred and forty) VALIDATED ROSETTA miRNA
      SEQUENCES, where up to 50 of such sequences may be published prior to the
      Effective Date.

     

    C.  NON-VALIDATED
      ROSETTA miRNA SEQUENCES shall mean ROSETTA miRNA SEQUENCES which have not been
      VALIDATED by ROSETTA prior to the provision of the VALIDATED “0”
SEQUENCES.

     

    D.  PRODUCT
      shall mean a product that (a) incorporates at least one (1) ROSETTA miRNA
      SEQUENCE, or (b) is designed to detect or otherwise affect ROSETTA miRNA
      SEQUENCE.

     

    E.  LICENSED
      FIELD shall mean use or sale of a PRODUCT solely as a research reagent, as
      in a
      kit format or in the performance of microarray services, specifically excluding
      any use in humans and any clinical diagnostic use.

     

    F.  LICENSED
      PRODUCT shall mean a PRODUCT solely in the LICENSED FIELD.

     

    G.  COMBINATION
      PRODUCT shall mean a LICENSED PRODUCT sold together with one or more other
      products or components of a product, which are not LICENSED
      PRODUCTS.

     

    H.  “MICRORNA”
      (also referred to as “miRNA”) shall mean a short RNA sequence that is encoded in
      the human genome in a hairpin structure, wherein such sequence is predicted
      to
      be expressed and/or is expressed in cells.

     

    I.  NET
      SALES
      shall mean all revenues from sales or other commercial use by Ambion or its
      Affiliates at arms’ length of LICENSED PRODUCTS less the following deductions:
      (i) customary trade, quantity; or cash discounts which are actually granted,
      (ii) amounts repaid or credited by reason of rejection or return, (iii) any
      taxes or other governmental charges levied on the production, sale,
      transportation, or delivery or use of a LICENSED PRODUCT other than income
      taxes
      and property taxes and (iv) outbound transportation costs prepaid or allowed
      and
      actual costs of insurance in transit. Any sales or commercial use not at arms’
length shall be accounted for at arms’ length prices or best approximations
      thereto.

     

    For
      COMBINATION PRODUCTS, NET SALES shall mean revenues from sales by Ambion or
      its
      Affiliates at arms’ length of the COMBINATION PRODUCTS (i) less the deductions
      set forth in the previous paragraph, and (ii) multiplying the resulting sum
      by -
      (a) if all components of the Combination PRODUCT were sold separately during
      the
      same or immediately preceding quarter, the fraction A/A+B where A is the sales
      price of the LICENSED PRODUCT components during such period when sold separately
      from the other components, and B is the sales price of the other components
      during such period when sold separately from the LICENSED PRODUCT
      components;

     

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

        
        

      

      
        
          2

        

        
          

        

      

      
        
        

      

    

    (b) if
      all
      components of the Combination PRODUCT were not sold separately during the same
      or immediately preceding quarter, the fraction [C/(C+D)], where C is the
      manufacturing cost of the ROSETTA miRNA SEQUENCE components and D is the
      manufacturing cost of the other components (manufacturing costs exclude
      packaging, labeling and any other indirect associated costs).

     

    J.  ROYALTY
      BASE FACTOR shall mean a dimensionless number equal to the ratio of the number
      of ROSETTA miRNA SEQUENCES in a given LICENSED PRODUCT to the total number
      of
      sequences included such given LICENSED PRODUCT.

     

    K.  “VALIDATED”
      shall mean a specific miRNA sequence that has been shown via a VALIDATION METHOD
      to be expressed in at least one tissue or cell type.

     

    L.  “VALIDATION
      METHOD.” shall mean (i) sequencing analysis, or (ii) Northern blot analysis, or
      (iii) a method mutually agreed upon by the Parties.

     

    M.  “Affiliate”
      shall mean any entity that directly or indirectly owns, is owned by or is under
      common ownership with a Party hereto, where “owns” or “ownership” means direct
      or indirect possession and/or control of at least fifty percent (50%) of the
      outstanding voting securities of a corporation or a comparable equity interest
      in any other type of entity.

     

    N.  “Intellectual
      Property Rights” shall mean patent rights, copyrights, and trade secret rights,
      and all other rights to inventions including the right to perfect and prosecute
      such rights with appropriate governmental authorities and the rights to enforce
      any and all such rights against third parties and to collect damages and secure
      such other remedies that are available and appropriate.

     

    O.  “Exclusivity
      Factor” shall mean a number equal to the ratio of ROSETTA miRNA SEQUENCES in a
      given LICENSED PRODUCT and/or COMBINATION PRODUCT where such SEQUENCES are
      licensed exclusively by AMBION to the total number of ROSETTA miRNA SEQUENCES
      in
      the same LICENSED PRODUCT and/or COMBINATION PRODUCT.

     

    P.  “EXCLUSIVE
      NET SALES” shill mean the NET SALES of a LICENSED PRODUCT or COMBINATON PRODUCT,
      and if appropriate multiplied by the ROYALTY BASE FACTOR, multiplied by the
      Exclusivity Factor,

     

    2.  LICENSE
      GRANT

     

    A.  ROSETTA
      hereby grants to AMBION a non-exclusive license to make, have made, offer for
      sale, sell, have sold, distribute, have distributed, and use in an AMBION
      service business, and let end-users use the LICENSED PRODUCTS including only
      the
      VALIDATED “0” SEQUENCES. No other use of the ROSETTA miRNA SEQUENCES is licensed
      hereunder. This grant is not subject to sub-license except as set forth below
      in
      Section 3A.

     

    B.  AMBION
      may appoint third parties within AMBION’s normal chain of distribution to sell
      LICENSED PRODUCT (such distributors are collectively referred to as
“Distributors”). The Parties acknowledge and agree that a sale of LICENSED
      PRODUCT by AMBION to an arm’s length Distributor shall constitute an arms length
      transaction and referred to in Section II of this Agreement.

     

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

        
        

      

      
        
          3

        

        
          

        

      

      
        
        

      

    

    C.  AMBION
      shall include with all LICENSED PRODUCTS and COMBINATION PRODUCTS a statement
      set forth in Annex
      B
      putting
      forth the restrictions of use of the LICENSED PRODUCTS and COMBINATION PRODUCTS
      by the end-user. AMBION agrees to provide such statement according to the same
      standards that AMBION provides similar licenses on similar products. In the
      event AMBION shall engage with Distributors, AMBION undertakes that such
      Distributors shall include with the sale of such LICENSED PRODUCTS and
      COMBINATION PRODUCTS similar restrictions. In the event that AMBION becomes
      aware of additional requirements that are needed to enforce such a limited label
      license, AMBION agrees to notify ROSETTA of such change; and the Parties shall
      mutually agree on revised language to be included in Annex B.

     

    If
      AMBION
      has knowledge that a third party customer is breaching the limited label license
      set forth in Annex B, AMBION shall promptly notify ROSETTA, and the Parties
      shall mutually agree on how to address such third party customer
      breach.

     

    3.  GRANT
      OF
      OPTIONS

     

    A.  ROSETTA
      hereby grants to AMBION an option to convert the license grant set forth in
      Section 2 hereinabove to an exclusive license. In the event that AMBION converts
      the Section 2 license grant to an exclusive license, the grant shall include
      the
      right for AMBION to sub-license the ROSETTA miRNA SEQUENCES to third parties,
      provided AMBION shall receive ROSETTA’s written approval in advance to any such
      sub-license, and subject to section 5 A (10) hereinafter.

     

    This
      option can be exercised by payment by AMBION to ROSETTA of an EXCLUSIVE UP-
      FRONT LICENSE FEE A, as set forth hereinbelow, within an option period of one
      year from the Effective Date of this Agreement (“Option Period A”). Option
      Period A may be extended for up to two additional years at the request of AMBION
      upon payment of US$[***] per year or part thereof to ROSETTA prior to the
      expiration of Option Period A or an extension thereof.

     

    B.  ROSETTA
      hereby grants to AMBION an option to extend the license grant set forth in
      Section 2 hereinabove to additionally cover NON-VALIDATED ROSETTA miRNA
      SEQUENCES scored A (the “NON-VALIDATED A SEQUENCES”). This option can be
      exercised by payment by AMBION to ROSETTA of an UP-FRONT LICENSE EXTENSION
      FEE
      B, as set forth hereinbelow, within an Option Period B of one year from the
      Effective Date of this Agreement. Rosetta agrees that following AMBION’s payment
      of the UP-FRONT LICENSE EXTENSION FEE B, upon identification of any
      NON-VALIDATED B SEQUENCES within the term of this Agreement to immediately
      forward those newly identified sequences to AMBION as set forth
      above.

     

    C.  ROSETTA
      hereby grants to AMBION an option to extend the license grant set forth in
      Section 2 hereinabove to additionally cover NON-VALIDATED ROSETTA miRNA
      SEQUENCES scored “B” (the “NON-VALIDATED B SEQUENCES”).

     

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

        
        

      

      
        
          4

        

        
          

        

      

      
        
        

      

    

    This
      option can be exercised by payment by AMBION to ROSETTA of an UP- FRONT LICENSE
      EXTENSION FEE C, as set forth hereinbelow, within an Option period C of one
      year
      from the Effective Date of this Agreement. ROSETTA agrees that following
      AMBION’s payment of the UP- FRONT LICENSE EXTENSION FEE C, upon identification
      of any NON-VALIDATED B SEQUENCES within the term of this Agreement to
      immediately forward those newly identified sequences to AMBION as set forth
      above.

     

    D.  ROSETTA
      hereby grants to AMBION an option to extend the license grant set forth in
      Section 2 hereinabove to additionally cover NON-VALIDATED ROSETTA miRNA
      SEQUENCES scored C (the “NON-VALIDATED SEQUENCES”).

     

    This
      option can be exercised by payment by AMBION to ROSETTA of an UP-FRONT LICENSE
      EXTENSION FEE D, as set forth hereinbelow, within an Option Period D of one
      year
      from the Effective Date of this Agreement. ROSETTA agrees that following
      AMBION’s payment of the UP-FRONT LICENSE EXTENSION FEE D, upon identification of
      any NON-VALIDATED C SEQUENCES within the term of this to immediately forward
      those newly identified sequences to AMBION as set forth above.

     

    E.  ROSETTA
      hereby grants to AMBION an option to convert the extended license grant referred
      to in Section 3B hereinabove to an exclusive license, following exercise of
      the
      option set forth in Section 3B.

     

    This
      option can be exercised by payment by AMBION to ROSETTA of an EXCLUSIVE UP-FRONT
      EXTENDED LICENSE FEE E, as set forth hereinbelow, within an option period of
      one
      year from the Effective Date of this Agreement. This option may be extended
      for
      up to two additional years at the request of AMBION, subject to AMBION’s
      exercise of the option according to section 3A above prior to such request,
      and
      upon payment of $[***] to ROSETTA per year or part thereof prior to the
      expiration of the option period or an extension thereof.

     

    F.  ROSETTA
      hereby grants to AMBION an option to convert the extended LICENSE GRANT referred
      to in Section 3C hereinabove to an exclusive license, following exercise of
      the
      option set forth in Section 3C.

     

    This
      option can be exercised by payment by AMBION to ROSETTA of an EXCLUSIVE UP-
      FRONT EXTENDED LICENSE FEE F, as set forth hereinbelow, within an Option Period
      of one year from the Effective Date of this Agreement. This option may be
      extended for up to two additional years at the request of AMBION, subject to
      AMBION’s exercise of the option according to section 3A above prior to such
      request, and upon payment of $[***] to ROSETTA per year or part thereof prior
      to
      the expiration of the option period or an extension thereof.

     

    G.  ROSETTA
      hereby grants to AMBION an option to convert the extended license grant referred
      to in Section 3D hereinabove to an exclusive license, following exercise of
      the
      option set forth in Section 3D.

     

    This
      option can be exercised by payment by AMBION to ROSETTA of an EXCLUSIVE UP-FRONT
      EXTENDED LICENSE FEE G, as set forth hereinbelow, within an Option Period of
      one
      year from the Effective Date of this Agreement. This option may be extended
      for
      up to two additional years at the request of AMBION, subject to AMBION’s
      exercise of the option according to section 3A above prior to such request,
      and
      upon payment of $[***] to ROSETTA per year or part thereof prior to the
      expiration of the option period or an extension thereof.

     

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

        
        

      

      
        
          5

        

        
          

        

      

      
        
        

      

    

    H.  The
      parties acknowledge and agree that ROSETTA may desire to exclude one of the
      ROSETTA miRNA SEQUENCES from any license granted in the scope of this Agreement
      (the “Excluded ROSETTA miRNA”). The parties agree, that within three (3) months
      of the Effective Date, to negotiate in good faith the terms of an agreement
      that
      would contemplate the aforementioned objective. The parties contemplate that
      the
      issues that will be discussed during such negotiation shall include (i) that
      the
      sequence of interest must be exclusive to a third party for all fields of use;
      (ii) that ROSETTA must receive significant monetary consideration for the
      removal of such sequence from the field of research, and (iii) the compensation
      to be paid to AMBION (or AMBION’s designee) for the exclusion of such sequence
      from the LICENSED PRODUCTS.

     

    4.  INFORMATION
      TRANSFER AND USE

     

    A.  ROSETTA
      hereby authorizes AMBION and AMBION hereby undertakes to carry out VALIDATION
      of
      the NON-VALIDATED ROSETTA miRNA SEQUENCES. For purposes of this section 4
      VALIDATION shall refer only to Northern Blot analysis that includes screening
      of
      each sequence against between 10 - 15 normal human tissues, as set forth in
      Annex
      D(1)
      of this
      Agreement.

     

    B.  AMBION
      shall promptly make available the results of the aforesaid VALIDATION to ROSETTA
      according to the details specified in Annex
      E
      of this
      Agreement (the “AMBION Results”) for internal use of ROSETTA. ROSETTA may
      incorporate the AMBION Results in patent applications pertaining to 50 ROSETTA
      miRNA SEQUENCES, according to ROSETTA’s preferences and AMBION actual
      performance of VALIDATION pertaining to such ROSETTA miRNA SEQUENCES and
      following a written notice to AMBION of such sequences, but otherwise shall
      not
      disclose the AMBION Results to third parties until the AMBION Results have
      entered the public domain through means that do not violate any duty of
      confidentiality to AMBION or any third party:

     

    C.  ROSETTA
      may disclose the AMBION Results for any purpose (excluding to AMBION’s
      competitors in the LICENSED FIELD) upon payment to AMBION of the consideration
      set forth in Annex
      F
      of this
      Agreement per miRNA sequence that is the subject of the disclosure.

     

    ROSETTA
      shall promptly provide AMBION data in ROSETTA’s possession related to the
      ROSETTA miRNA SEQUENCES generated from microarray experiments pertaining solely
      to the tissues as set forth in Annex B(2) of this Agreement, in order to assist
      in identification of appropriate tissues for Northern Blot
      analysis.

     

    D.  The
      LICENSED PRODUCT and the COMBINATION PRODUCT are listed in Annex
      H
      of this
      Agreement. AMBION shall update Annex H upon the addition or removal of any
      LICENSED PRODUCT and COMBINATION PRODUCT under this Agreement.

     

    5.  PAYMENTS
      TO ROSETTA

     

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

        
        

      

      
        
          6

        

        
          

        

      

      
        
        

      

    

    A.  UP-FRONT
      PAYMENTS

     

    The
      following up-front payments shall be payable by AMBION to ROSETTA on the
      conditions set forth hereinbelow. All up-front payments set forth hereinbelow
      and option period extension payments set forth hereinabove include consideration
      for all services provided by ROSETTA, including research, analysis and transfer
      of information, and are fully chargeable against royalties due to ROSETTA but
      are nonrefundable except for the Up-Front due within five days of the Effective
      Date as set forth in Section 5(A)(1).

     

    Payments
      under subsection 5A1 hereinbelow are creditable against payments payable under
      subsection 5A2 and 3A.

     

    Payments
      under subsection 5A3 hereinbelow are creditable against payments payable under
      subsection 5A6 and 3E.

     

    Payments
      under subsection 5A4 hereinbelow are creditable against payments payable under
      subsection 5A7 and 3F.

     

    Payments
      under subsection 5A5 hereinbelow are creditable against payments payable under
      subsection 5A8 and 3G.

     

    1.  UP-FRONT
      PAYMENT FOR NON-EXCLUSIVE LICENSE TO VALIDATED ROSETTA miRNA SEQUENCES pursuant
      to Section 2 - US$100,000.00 payable within five business days of the Effective
      Date of this Agreement (the “First Up-Front”). ROSETTA agrees to provide AMBION
      within 2 business days the VALIDATED “0” SEQUENCES.

     

    ROSETTA
      may publish up to 90 of the VALIDATED “0” SEQUENCES if (a) (i) ROSETTA has
      provided to AMBION at least 50 VALIDATED ROSETTA miRNA SEQUENCES (not included
      in VALIDATED “0” SEQUENCES) within 45 days of ROSETTA’s receipt of the First
      Up-Front, and (ii) ROSETTA publishes any of such 90 VALIDATED “0” SEQUENCES no
      sooner than 75 days from the provision of the 50 VALIDATED ROSETTA miRNA
      SEQUENCES set forth in section (i) above. Or (b) ROSETTA refunds the First
      Up-Front to AMBION within 10 business days of such publications.

     

    In
      addition to the provision of the VALIDATED “0” SEQUENCES, ROSETTA shall forward
      to AMBION (within the same timeframe) via electronic mail (or as otherwise
      agreed between the parties) the sequence listing for the all NON-VALIDATED
      A
      SEQUENCES, all NON-VALIDATED B SEQUENCES, and all NON-VALIDATED C SEQUENCES.
      All
      sequences provided by ROSETTA to AMBION under this Agreement shall be added
      to
      this Agreement as Annex
      A
      thereof.
      For the avoidance of any doubt, unless AMBION exercises the options set forth
      in
      sections 3B, 3C and 3D above, AMBION shall not have any right, including the
      rights defined pertaining to the license grant set forth in section 2 above,
      with regard to all NON-VALIDATED A SEQUENCES, all NON-VALIDATED B SEQUENCES,
      and
      all NON-VALIDATED C SEQUENCES.

     

    2.  EXCLUSIVE
      UP-FRONT LICENSE FEE A is defined as $US[***] and is payable within five days
      of
      exercise of the option set forth in Section 3A but in no event after expiration
      of Option Period A or any extension thereof.

     

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

        
        

      

      
        
          7

        

        
          

        

      

      
        
        

      

    

    3.  UP-FRONT
      LICENSE EXTENSION FEE B is defined as $US86,000 and is payable within five
      days
      of exercise of the option set forth in Section 3B but in no event after
      expiration of the applicable Option Period or any extension
      thereof.

     

    4.  UP-FRONT
      LICENSE EXTENSION FEE C is defined as $US71,000 and is payable within five
      days
      of exercise of the option set forth in Section 3C but in event after expiration
      of the applicable Option Period or any extension thereof.

     

    5.  UP-FRONT
      LICENSE EXTENSION FEE D is defined as $US71,000 and is payable within five
      days
      of exercise of the option set forth in Section 3D but in no event after
      expiration of the applicable Option Period or any extension thereof

     

    6.  EXCLUSIVE
      UP-FRONT EXTENDED LICENSE FEE E is defined as $US[***] and is payable within
      five days of exercise of the option set forth in Section 3E but in no event
      after expiration of the applicable Option Period or any extension
      thereof.

     

    7.  EXCLUSIVE
      UP-FRONT EXTENDED LICENSE FEE F is defined as $US[***] and is payable within
      five days of exercise of the option set forth in Section 3F but in no event
      after expiration of the applicable Option Period or any extension
      thereof

     

    8.  EXCLUSIVE
      UP-FRONT EXTENDED LICENSE FEE G is defined as $US[***] and is payable within
      five days of exercise of the option set forth in Section 3G but in no event
      after expiration of the applicable Option Period or any extension
      thereof.

     

    7.  ADDITIONAL
      EXCLUSIVE UP-FRONT EXTENDED LICENSE FEE H is defined as $US[***] and is payable
      on April 1 following the first year in which NET SALES exceed US$[***] following
      exercise of the option set forth in Section 3E.

     

    8.  ADDITIONAL
      EXCLUSIVE UP-FRONT EXTENDED LICENSE FEE I is defined as $US[***] and is payable
      on April 1 following the first year in which NET SALES exceed US$[***] following
      exercise of the option set forth in Section 3F.

     

    9.  ADDITIONAL
      EXCLUSIVE UP-FRONT EXTENDED LICENSE FEE J is defined as $US[***] and is payable
      on April 1 following the first year in which NET SALES exceed US$[***] following
      exercise of the option set forth in Section 3G.

     

    10.  SUBLICENSE
      INCOME. In the event that AMBION shall exercise its right to sub-license the
      ROSETTA miRNA SEQUENCES to third parties with ROSETTA’s Approval according to
      section 3A above, AMBION and Rosetta shall negotiate in good faith the mutual
      distribution of all payments to be associated with such
      sub-license.

     

    B.  ROYALTIES

     

    1.  AMBION
      shall pay to ROSETTA on a calendar quarterly basis, four months following each
      calendar quarter, a royalty of [***]% ([***] PERCENT) of all NET SALES
      multiplied by an appropriate ROYALTY BASE FACTOR, as defined hereinabove, for
      each LICENSED PRODUCT.

     

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

        
        

      

      
        
          8

        

        
          

        

      

      
        
        

      

    

    2.  In
      addition to the royalty set forth in Section 5B(1) hereinabove, for LICENSED
      PRODUCTS including at least one ROSETTA miRNA SEQUENCE in respect of which
      an
      option under any of Sections 3A, 3E, 3F and 3G has been exercised by AMBION,
      AMBION shall pay a royalty as set forth below and according to the payment
      terms
      set forth in Section 5B(1):

     

    a.  For
      a
      calendar quarter prior to which cumulative total payments to ROSETTA have not
      exceeded US$[***]% ([***] PERCENT) of EXCLUSIVE NET SALES;

     

    b.  For
      a
      calendar quarter prior to which cumulative total payments to ROSETTA have
      exceeded US$[***], but have not exceeded US$[***]% ([***] PERCENT) of EXCLUSIVE
      NET SALES;

     

    c.  For
      a
      calendar quarter prior to which cumulative total payments to ROSETTA have
      exceeded US$[***], but have not exceeded US$[***]% ([***] PERCENT) of EXCLUSIVE
      NET SALES.

     

    d.  When,
      cumulative total payments to ROSETTA have exceeded US$[***], AMBION shall owe
      no
      further royalties to ROSETTA under this Section 5(B)(2).

     

    3.  Stacking.
      If a third party license is required to use or sell the LICENSED PRODUCTS,
      in
      the sense that without such third party license the LICENSED PRODUCT is bared
      from being used, the Parties agree that the royalty rate set forth in Section
      5(B)(1) shall be reduced by [***] percent for every [***] percent in royalty
      paid to the third party. In no event shall the royalty set forth in Section
      5(B)(1) be less than [***] percent.

     

    In
      the
      event that AMBION wishes to enhance the LICENSED PRODUCT by adding a third
      party
      component or product, which is not required to use or sell the LICENSED
      PRODUCTS, but that AMBION for good reason believes is necessary in order to
      maximize the sales of a LICENSED PRODUCTS and such component or product requires
      a royalty-baring license of such third party, then the parties shall negotiation
      in good faith and agree upon any change of the royalty rate paid to ROSETTA
      set
      forth in section 5(B)(1).

     

    6.  MINIMUM
      ROYALTIES

     

    In
      the
      event that AMBION exercises the exclusivity option set forth in Sections 3A
      as
      set forth in this Agreement, AMBION agrees to pay the minimum royalties as
      set
      forth below, payable on January 31 of the calendar year following the relevant
      year. AMBION payment of the minimum royalties shall be a condition precedent
      to
      continued exclusivity, following exercise of any of the options set forth in
      Sections 3A, 3E, 3F and 3G hereinabove. The payments set forth in Section 5(B)
      made during the relevant year shall be creditable to the minimum royalties
      for
      that year.

     

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

        
        

      

      
        
          9

        

        
          

        

      

      
        
        

      

    

     

    
      	
              RELEVANT
                CALENDAR YEAR

            	
              AMOUNT
                (US$)

            
	
              2006

            	
              [***]

            
	
              2007

            	
              [***]

            
	
              2008

            	
              [***]

            
	
              2009

            	
              [***]

            
	
              2010

            	
              [***]

            
	
              2011

            	
              [***]

            
	
              2012

            	
              [***]

            
	
              2013

            	
              [***]

            
	
              2014

            	
              [***]

            
	
              2015

            	
              [***]

            
	
              2016

            	
              [***]

            
	
              2017

            	
              [***]

            
	
              2018

            	
              [***]

            
	
              2019

            	
              [***]

            
	
              2020

            	
              [***]

            

    

     

    7.  THIRD
      PARTY PATENTS AND INDEMNITY

     

    Should
      it
      come to the attention of either ROSETTA or AMBION that any one or more of the
      ROSETTA miRNA SEQUENCES infringes a valid claim of a third party patent (the
      “Third Party Sequence”), AMBION may elect to (i) take a license from such third
      party for the right to use the Third Party Sequence, or (ii) remove the Third
      Party Sequence from the relevant LICENSED PRODUCTS. AMBION shall provide prompt
      written notice to ROSETTA upon the removal of a Third Party Sequence as set
      forth in Section 7(ii) above

     

    ROSETTA
      shall indemnify AMBION for all damages payable to third parties for such
      infringement up to the amount of royalties paid by AMBION to ROSETTA in respect
      of the Third Party Sequence in those LICENSED PRODUCTS.

     

    8.  THIRD
      PARTY COMPETITION

     

    For
      any
      calendar quarter following an earlier calendar quarter in which Invitrogen,
      Applied Biosystems, Perkin Elmer or Strategene or other competitor having a
      similar market share markets a competing research kit containing miRNA sequences
      identical to at least [***]% of the ROSETTA miRNA SEQUENCES contained in a
      LICENSED PRODUCT, and in such earlier quarter AMBION’s sales of such LICENSED
      PRODUCT fell by at least [***]% relative to the average sales of such LICENSED
      PRODUCT for the previous two calendar quarters, AMBION shall have the option
      to
      treat the ROSETTA miRNA SEQUENCES which appear in the competitor’s product, as
      not being subject to the exercise of the option set forth in any of Sections
      3A,
      3E, 3F, and 3G, for the purpose of calculating royalties under Section 5
      hereinabove. Such option shall be exercised by written notification to ROSETTA
      no later than the 15th day of such calendar quarter. In such case, the license
      granted by ROSETTA in respect of such ROSETTA miRNA SEQUENCES shall be
      considered to be non-exclusive.

     

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

        
        

      

      
        
          10

        

        
          

        

      

      
        
        

      

    

    9.  ENFORCEMENT
      OF ROSETTA PATENT RIGHTS

     

    ROSETTA
      shall have the right, but not the obligation, to enforce its patents relating
      to
      ROSETTA miRNA SEQUENCES. In such case ROSETTA acts for its own account in terms
      of out-of-pocket costs and recoveries.

     

    Should
      ROSETTA not take action to enforce its patents within 3 months of being
      requested to by AMBION, AMBION may take such action in respect of third party’s
      products competing with AMBION LICENSED PRODUCTS within the LICENSED FIELD
      for
      its own account in terms of costs and recoveries, but shall pay to ROSETTA
      royalties pursuant to Section 5 on the recovery net of out-of-pocket costs
      and
      recoveries.

     

    10.  JOINT
      PATENTS

     

    (a)  Intellectual
      Property Rights belonging to ROSETTA as of the Effective Date of this Agreement
      shall be and remain the property of ROSETTA (the “ROSETTA Background
      Intellectual Property”).

     

    (b)  Intellectual
      Property Rights belonging to AMBION as of the Effective Date of this Agreement
      shall be and remain the property of AMBION (the “AMBION Background Intellectual
      Property”).

     

    (c)  The
      ownership of inventions developed during the term of this Agreement shall be
      determined as follows:

     

    
      	 	
              (i)

            	
              any
                invention created solely by AMBION without the use of ROSETTA Confidential
                Information shall be owned solely by
                AMBION;

            

    

     

    
      	 	
              (ii)

            	
              any
                invention created solely by ROSETTA without the use of AMBION Confidential
                Information shall be owned solely by ROSETTA
                and

            

    

     

    
      	 	
              (iii)

            	
              any
                invention created by (a) at least one AMBION employee and at least
                one
                ROSETTA employee, (b) at least one AMBION employee with the use of
                ROSETTA
                Confidential Information, or (e) at least one ROSETTA employee with
                the
                use of the AMEBION Confidential Information (collectively the “Joint
                Inventions”) shall be jointly owned by the Parties. Neither Party may use
                or license the Joint Inventions to a third party with out the prior
                written consent of the other Party. For sole purposes of determining
                the
                ownership of an invention according to this Section only, ROSETTA’s
                Confidential Information and AMBION’s Confidential Information does not
                include sequences that are made available within a LICENSED PRODUCT
                and/or
                COMBINATION PRODUCT by AMBION to an arm’s length customer within its
                marketing activities in the framework of the sales of LICENSED PRODUCTS
                and/or COMBINATION PRODUCT under this
                Agreement.

            

    

     

    

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

        
        

      

      
        
          11

        

        
          

        

      

      
        
        

      

    

     

    11.  REPORTS

     

    (a)  AMBION
      shall provide quarterly reports of NET SALES and EXCLUSIVE NET SALES to ROSETTA,
      and shall be divided to NET SALES and EXCLUSIVE NET SALES in the US and outside
      the US. Exchange rates related to calculation of the Royalties pertaining to
      NET
      SALES and EXCLUSIVE NET SALES outside the US shall be determined according
      to
      the principles set forth in Annex
      G
      of this
      Agreement.

     

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

     

    (c)  Royalties
      payable hereunder shall be made without any deductions, except for withholding
      tax or any other fiscal deductions from time to time required by the government
      of any country.

     

    Withholding
      tax, if any, levied by a government of any country of the on payments made
      by
      AMBION to ROSETTA hereunder or any part thereof according to the relevant law
      shall be borne by ROSETTA. AMBION will pay such withholding tax to the
      respective taxing authorities and will deduct such amount from the royalty
      due
      to ROSETTA.

     

    AMBION
      shall use its best efforts to enable ROSETTA to claim exception there from
      under
      any double taxation or similar agreement in force and shall produce to ROSETTA
      proper evidence of payments of all withholding taxes,

     

    12.  ROSETTA
      PATENT PROSECUTION

     

    Should
      AMBION wish that ROSETTA file additional applications or expedite applications
      on certain ROSETTA miRNA SEQUENCES, ROSETTA shall do so and AMBION shall pay
      the
      resulting costs. ROSETTA shall deliver to AMBION regarding each patent
      application related to this Agreement the following details: (1) reference
      number, (2) sequence listing: (3) filing date (4) status of application. In
      addition, AMBION’s patent attorney may request ROSETTA’s patent attorney to
      provide additional information regarding the status of ROSETTA’s patent
      applications, according to an agreed upon list of pre defined queries, ROSETTA
      shall decide, according to its sole discretion, which particular information
      it
      will provide to AMBION with regard to such request of information.

     

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

        
        

      

      
        
          12

        

        
          

        

      

      
        
        

      

    

    13.  EXISTING
      AND FUTURE ROSETTA PATENT LICENSES

     

    (a)  ROSETTA
      represents that its existing patent licenses do not conflict with the licenses
      and options granted herein.

     

    (b)  Following
      exercise by AMBION of any of the options set forth in Sections 3B, 3C and 3D,
      ROSETTA shall provide prompt notice to AMBION when ROSETTA receives bone fide
      interest from a third party for rights to any research product employing the
      ROSETTA miRNA SEQUENCES set forth in the aforementioned respective option
      Sections, and to deliver to AMBION a copy of any draft agreement with such
      third
      party, edited only to remove any identification of that third party. ROSETTA
      shall not enter into such agreement until the longer of a) 60 days from said
      notice, b) two weeks from delivery to AMBION of the final draft of the agreement
      to be signed. In no event shall ROSETTA begin any such discussions with a third
      party as described herein prior to 6 months from the Effective Date of this
      Agreement, in order to allow AMBION the right to exercise any of the options
      set
      forth in Section 3A, 3E, 3F and 3G. Upon the AMBION’s exercise of any of such
      options, ROSETTA agrees to discontinue all negotiations with any third parties
      regardless of the status of such negotiations.

     

    14.  MOST
      FAVORABLE TERMS

     

    The
      parties acknowledge that ROSETTA may enter into license agreements with third
      parties for the use of miRNA SEQUENCES in research and development. The parties
      also acknowledge that AMBION may be at a significant disadvantage if such third
      parties are given terms that are more favorable than the terms received by
      AMBION in this Agreement, and in the event that such license agreements with
      third parties shall be under identical or similar commercial circumstances,
      both
      parties desire that AMBION shall have the opportunity to consider and accept
      the
      terms being offered to such third party. For purposes of this Section only,
      ROSETTA shall have the option to either (i) provide the terms of interest in
      the
      third party agreement wherein such terms of interest include all royalty amounts
      and or percentages to be paid, all up-front fees to be paid, all option fees,
      all terms related to exclusivity, including, but not limited to, any fees for
      converting from nonexclusive to exclusive, and all other consideration, value
      exchanged and any other material term between the third party and ROSETTA as
      shall be decided by ROSETTA (collectively “Terms of Interest”); or (ii) provide
      a copy of the third party licensee agreement to a mutually agreed upon third
      party (the “Evaluator”) wherein such third party would access whether or not
      such third party license agreement is more or less favorable to AMBION than
      this
      Agreement. In the event that such Evaluator concludes that the third party
      license agreement is more favorable to AMBION than this Agreement, ROSETTA
      agrees to disclose the Terms of Interest to AMBION within fifteen (15) business
      days of the Evaluator’s conclusion. The Parties agree that ROSETTA shall bear
      all reasonable expenses associated with the Evaluator’s review of such third
      party license agreement. AMBION will decide, in its sole discretion, whether
      or
      not the Terms of’ Interest are more favorable to similar terms in this
      Agreement. If AMBION does decide that the Terms of Interest are more favorable,
      this Agreement shall be amended to incorporate all of the Terms of
      Interest.

     

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

        
        

      

      
        
          13

        

        
          

        

      

      
        
        

      

    

    15.  SINGLE
      PAYMENT

     

    AMBION
      shall have the option to extend the license set forth in Section 2 on an
      exclusive basis to all ROSETTA miRNA SEQUENCES on a paid-up irrevocable basis
      for a one time advance payment of US$[***] less all payments already paid to
      ROSETTA by AMBION.

     

    16.  TRADEMARK

     

    ROSETTA
      agrees that in exchange for the consideration described in this Agreement that
      it will immediately cease all use of the mark “The MicroRNA
      Company”.

     

    17.  ASSIGNABILITY

     

    This
      agreement shall not be assignable by either Party without the prior written
      consent of the other Party, not to be unreasonably withheld, except that either
      Party may, without such consent of the other Party, assign this Agreement to
      (i)
      an Affiliate, (ii) any purchaser of all or substantial part of its assets in
      the
      line of business to which this Agreement pertain, or (iii) any successor
      corporation resulting from any merger or consolidation of either Party with
      or
      into such corporations.

     

    18.  TERM
      AND
      TERMINATION

     

    (a)  This
      term
      of this Agreement is the lifetime of any patents or patent applications covering
      ROSETTA miRNA SEQUENCES.

     

    AMBION
      may terminate this Agreement at its sole option at any time following the
      expiration of the Option Period A and any extension thereof.

     

    ROSETTA
      may terminate this Agreement for non-payment of any payment due pursuant to
      Section 5, upon 60 days notice to AMBION, specifying the payment due, provided
      that the payment has not been made within the notice period, with interest
      at
      Prime plus 5%.

     

    Upon
      termination of this Agreement, all licenses and options shall terminate
      forthwith and all payments accrued shall be payable within 30 days.

     

    (b)  It
      is
      understood that termination. of this Agreement shall not relieve a Party from
      any liability that, at the time of such termination, has already accrued to
      the
      other Party. The provisions of Article 7, 10, 11, 16, 20, 22 and 23, shall
      survive after the expiration or termination of this Agreement

     

    

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

        
        

      

      
        
          14

        

        
          

        

      

      
        
        

      

    

    

    19.  NOTICES

     

    All
      notices pursuant to this Agreement shall be sent to the parties at their
      addresses set forth hereinbelow by fax, email and registered air mail and shall
      become effective 10 days from the date of transmission:

     

    AMBION:

     

    2130
      Woodward St.

    Austin,
      Texas 78744

    Telephone
      Number: (512) 651 0200

    Facsimile
      Number: (512) 651 0201

    Attention:
      Vice-President of Business Development

    Cc:
      General Counsel

     

    ROSETTA:

     

    10
      Plaut
      St.

    Rehovot,
      Israel

    Telephone
      Number:

    Facsimile
      Number:

    Attention:
      Chief Operation Officer

    Cc:
      Director of business Development

     

    Changes
      in the foregoing notice addresses shall be sent to the parties at their
      addresses set forth hereinabove by fax, email and registered air mail and shall
      become effective 10 days from the date of transmission.

     

    20.  Governing
      Law.
      THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH, THE LAWS OF THE UNITED STATES AND THE STATE OF NEW YORK WITHOUT REFERENCE
      TO CONFLICT OF LAWS PRINCIPLES AND EXCLUDING THE 1980 U.N. CONVENTION ON
      CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS.

     

               Jurisdiction:
      Venue.
      ALL
      DISPUTES ARISING OUT OF OR RELATED TO THIS AGREEMENT WILL BE SUBJECT TO THE
      EXCLUSIVE JURISDICTION AND VENUE OF THE NEW YORK STATE COURTS (OR, IF THERE
      IS
      EXCLUSIVE FEDERAL JURISDICTION, THE UNITED STATES DISTRICT COURT FOR THE
      SOUTHERN DISTRICT OF NEW YORK), AND THE PARTIES CONSENT TO THE PERSONAL AND
      EXCLUSIVE JURISDICTION OF THESE COURTS.

     

    21.  Force
      Majeure.
      Nonperformance of any Party shall be excused to the extent that performance
      is
      rendered impossible by strike, fire, earthquake, flood, governmental acts or
      orders or restrictions, failure or delay of suppliers, or any other reason
      where
      failure to perform is beyond the reasonable control of the nonperforming
      Party.

     

    22.  IN
      NO
      EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON FOR
      ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY OR INCIDENTAL DAMAGES (INCLUDING LOST
      OR
      ANTICIPATED REVENUES OR PROFITS RELATING TO THE SAME), ARISING FROM OR RELATING
      TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, WHETHER BASED IN CONTRACT,
      TORT
      (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE, AND EVEN IF SUCH PARTY
      IS ADVISED OF THE POSSIBILITY OR LIKELIHOOD OF SAME.

     

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

        
        

      

      
        
          15

        

        
          

        

      

      
        
        

      

    

    23.  Non-Disclosure.
      For
      purposes of this Agreement, “Confidential Information” means information of a
      confidential or proprietary nature relating to the business, products,
      technology or finances of a Party hereto and designated in writing at the time
      of disclosure as “Confidential” or, in the event of oral disclosure, confirmed
      to be “Confidential” in writing within thirty (30) days after the initial oral
      disclosure, or any information of a third party that has disclosed the
      information under a confidentiality arrangement with a Party hereto. Each Party
      will keep confidential and will not publish or otherwise disclose (except to
      its
      Affiliates, employees, agents or consultants having a need to know) and will
      not
      use for any purpose except for the purposes contemplated by this Agreement,
      any
      Confidential Information of the other Party disclosed during the term of this
      Agreement. Each Party will use at least the same standard of care as it uses
      to
      protect its own proprietary or confidential information to ensure that its
      Affiliates, employees, agents and consultants do not disclose or make
      unauthorized use of the Confidential Information of the other Party, but in
      no
      event less than reasonable care.

     

    Confidential
      Information shall not include any information which the receiving Party can
      prove by competent evidence: (a) is now, or hereafter becomes, through no act
      or
      failure to act on the part of the receiving Party, generally known or available;
      (b) is known by the receiving Party at the time of receiving such information,
      (c) is hereafter furnished to the receiving Party by a third party having the
      legal right to do so and without restriction on disclosure, or (d) is
      independently developed by the receiving Party without the aid, application
      or
      use of the Confidential Information. Confidential Information may be disclosed
      upon order of a court of competent jurisdiction provided that notice is provided
      to the Party that owns such Confidential Information immediately upon the
      receipt of the request for such information. The Party receiving such as request
      shall cooperate fully with the Party that owns such Confidential Information
      in
      all lawful efforts to restrict or resist disclosure of such Confidential
      Information.

     

    24.  The
      relationship of AMBION and ROSETTA established by this Agreement is that of
      independent contractors. Nothing in this Agreement shall be construed to create
      any other relationship between AMBION and ROSETTA. Neither Party shall have
      any
      right, power or authority to assume, create or incur any expense, liability
      or
      obligation, express or implied, on behalf of the other.

     

    25.  Entire
      Agreement.
      The
      terms and provisions contained in the Agreement, including the Exhibits hereto,
      constitute the entire agreement between the Parties regarding the subject matter
      hereof and shall supersede all previous communications, representations,
      agreements or understandings, either oral or written, between the Parties
      concerning such subject matter.

     

    26.  Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but which together shall constitute one and the same
      instrument.

     

    27.  Severability.
      Should any Section, or portion thereof, of this Agreement be held invalid by
      reason of any law, statute or regulation existing now or in the future in any
      jurisdiction by any court of competent authority or by a legally enforceable
      directive of any governmental body, such Section or portion thereof shall be
      validly reformed so as to reflect the intent of the parties as nearly as
      possible and, if not capable of suitable reformation shall be deemed divisible
      and deleted with respect to such jurisdiction, but the Agreement shall not
      otherwise be affected.

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

        
        

      

      
        
          16

        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties hereto have duly executed this License
      Agreement.

     

    AMBION,
      INC.

    

     

    By:
      /s/ Bruce Leander                              

    Title:
      President

             
      Bruce Leander

    

    

    ROSETTA
      GENOMICS LTD.

    

    

    By:
      /s/
      Amir
      Avniel                                 

    Title:
      Chief
      Operation Officer

             
      Amir Avniel

    

    

    

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

        
        

      

      
        
          17

        

        
          

        

      

      
        
        

      

    

    Annex
      A

    

     

     

     

     

     

    
 

    

    

    
      
        
          B-1

        

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

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Annex
      B

    

    Limited
      Terms of License

    

    

    NOTICE
      TO PURCHASER: LIMITED LICENSE

     

    This
      product is sold under licensing arrangement between Ambion, Inc. and Rosetta
      Genomics. The purchase price of this product includes limited, nontransferable
      rights under patents and/or pending patent applications owned by Rosetta
      Genomics to use the product solely within the field of research further
      information on purchasing licenses under the Rosetta patent applications may
      be
      obtained by contacting Rosetta Genomics, Director of Business Development
      BD@Rosettagenomics.com (Phone number to be added).

     

    

    

    

    
      
        
          B-1

        

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

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Annex
      D(1)

    

     

     

     

     

    
 

    

    

    
      
        
          D(1)-1

        

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

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Annex
      D(2)

    

    

     

     

    
 

    

    

    
      
        
          D(2)-1

        

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

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Annex
      E

    

    

    [***]
      should be [***] in a form according to the [***] where the [***]

    
      	 	
              1.

            	
              ROSETTA
                [***]

            

    

    
      	 	
              2.

            	
              [***]description
                of [***] on which the [***]

            

    

    
      	 	
              3.

            	
              [***]
                of the [***] in the [***]accordingly, or in any other [***] upon
                by the
                [***]

            

    

    
      	 	
              4.

            	
              [***]
                of the [***] in the [***]accordingly, or in any other [***] upon
                by the
                [***]

            

    

    
      	 	
              5.

            	
              [***]
                to which the [***] like a [***] as is evident from the [***]accordingly,
                or in any other [***] upon by the
                [***]

            

    

    [***]ROSETTA[***]
      for all [***] on which [***] will be [***]

     

    Example:

    

    
      	
              [***]

            	
              [***]

            	
              [***]

            	
              [***]

            	
              [***]

            
	
              [***]

            	
              [***]

            	 	 	 
	
              [***]

            	 	 	 
	
              [***]

            	 	 	 
	
              [***]

            	 	 	 
	
              [***]

            	
              [***]

            	 	 	 
	
              [***]

            	 	 	 
	
              [***]

            	 	 	 
	
              [***]

            	 	 	 

    

    

    

    

    

    
      
        
          E-1

        

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

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Annex
      F

    

    Consideration
      for VALIDATION set forth in Section 4

    

    

    

    In
      consideration for the disclosure of AMBION Results to third parties according
      to
      Section 4 (C), ROSETTA shall pay AMBION for AMBION Results pertaining to
      each ROSETTA miRNA SEQUENCE and tissue, as follows:

     

    a. For
      AMBION Results [***] ROSETTA [***] ROSETTA shall pay AMBION an amount of
      US$[***] per each [***]

     

    b. For
      AMBION Results [***] ROSETTA [***] ROSETTA shall pay AMBION an amount of
      US$[***] per each [***]

     

    c. For
      AMBION Results [***] ROSETTA [***] ROSETTA shall pay AMNION an amount of
      US$[***] per each [***]

     

    

    

    

    
      
        
          F-1

        

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

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Annex
      G

    

    Exchange
      Rate Calculation Principles

    

    

    

    All
      payments due hereunder shall be payable in United States dollars. Conversion
      of
      foreign currency to U.S. dollars shall be made at the conversion rate existing
      in the United States in amounts based on the average rate of exchange as
      calculated on the Web site www.oanda.com.
      If the
www.oanda.com
      Web site
      is not available, AMBION will use the conversion rate as reported in the Wall
      Street Journal on the last working day of the royalty period.

    

    

    

    
      
        
          G-1

        

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

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Annex
      H

    

    LICENSED
      PRODUCTS

    

    

    

    
 

     

     

     

    

      
        
          
            H-1

          

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

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