Document:

Exhibit 4.11

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), THE ISRAELI
SECURITIES LAW OF 1968 (THE “SECURITIES LAW”) OR ANY APPLICABLE STATE SECURITIES LAWS. IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, THE SECURITIES LAW AND SUCH STATE LAWS, THESE SECURITIES MAY NOT BE OFFERED,
SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
1933 ACT, THE SECURITIES LAW AND SUCH STATE LAWS.

 

Convertible
Loan Agreement

 

This
Convertible Loan Agreement is made and entered into as of the last date set forth on the signature page below by and between
RedHill Biopharma Ltd., a company organized and registered under the laws of the State of Israel, with offices at 42 Givati Street,
Ramat-Gan, 52232, Israel (“Borrower”) and the person or entity whose name, signature and address appear
on the signature page hereof (“Lender”).

 

Whereas,
Borrower seeks funds in a total amount of $4,000,000 or such other amount as determined by the Board of Directors of the Company
(the “Aggregate Total Amount”) as convertible loans on the terms set forth in this Agreement (“Convertible
Financing Loans”) from various lenders including Lender (all such lenders, including Lender, providing Convertible
Financing Loans to Borrower on terms similar to those of this Agreement, shall be referred to collectively as “Convertible
Financing Lenders”); and

 

Whereas,
Borrower desires to borrow the amount set forth on the signature page hereunder from Lender for the purposes specified in Section
3 below; and

 

Whereas,
Lender is willing to lend such sum to Borrower, subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, the parties
agree as follows:

 

1.          Loan.
Lender shall lend to Borrower and Borrower shall borrow from Lender the principal amount set forth on the signature page
hereof (the “Loan”). The Loan shall be delivered to Borrower by deposit in any of the Borrower’s
bank accounts listed in Exhibit A within 7 days from the date of execution of this Agreement.

 

2.          Interest.
The Loan shall bear interest on its outstanding principal amount in US Dollars, at a per annum rate equal to eight percent (8.0%),
compounded annually (“Interest”). Interest shall accrue and not be payable until the Loan is converted
pursuant to the provisions of Section 4 below. The principal amount of the Loan together with accrued Interest is hereinafter referred
as the “Loan Amount”.

 

3.          Use
of Proceeds. Borrower undertakes that the entire amount of the Loan shall be used to fund Borrower’s, acquisition
of products, research and development activities and general working capital.

 

    	 

    	 

    

 

4.         Mandatory
Conversion. 

 

		(a)	Unless previously converted, in the event that at any time following the funding of the Loan hereunder
and prior to December 31, 2011, Borrower shall close an equity investment, or series of related equity investments, in a minimum
aggregate amount of Three Million US Dollars ($3,000,000) (excluding conversion of the Loan) (the “Financing Round”),
the entire outstanding Loan Amount shall automatically convert into shares of the class of equity securities of Borrower issued
in the Financing Round on the same terms as the Financing Round but at a price per share which shall be equal to seventy percent
(70%) of the price per share paid by the investors in the Financing Round (the “Lender Price Per Share”)
and Borrower shall issue to Lender the number of shares of the class of equity securities issued in the Financing Round ("Financing
Conversion Shares") as is obtained by dividing (i) the outstanding Loan Amount as of the closing date of the Financing
Round by (ii) the Lender Price Per Share. In the event that the Financing Round is achieved through a series of equity financings
and the transactions consummated in such equity financings are not on identical terms and conditions or involve the issuance of
more than one type of securities, then Lender shall be entitled to the most favorable class or series of equity securities issued
in such financing and/or the most favorable terms and conditions.

 

		(b)	Unless previously converted, on December 31, 2011 the Loan Amount shall be automatically converted
into the class of equity securities of Borrower having the most seniority in terms of distribution of assets upon liquidation,
outstanding at such time (the “Senior Conversion Shares”), at a price per share reflecting a pre-money
valuation of Borrower (on a fully-diluted basis) of Seven Million US Dollars ($7,000,000) and Borrower shall issue to Lender the
number of Senior Conversion Shares determined by dividing the outstanding Loan Amount by the product of (i) Seven Million US Dollars
($7,000,000) divided by (ii) the aggregate number of issued and outstanding shares of equity securities of Borrower, on a fully-diluted
and as-converted basis.

 

		(c)	Unless previously converted, immediately prior to the consummation
of: (i) a consolidation or merger of Borrower with or into any person (other than an affiliate of Borrower) or
pursuant to which the outstanding equity of Borrower is converted into cash, securities or other property, in each case
other than a transaction in which the shareholders of Borrower prior to the transaction will hold
more than 50% of the voting securities (on an as-converted basis) of the surviving entity after the transaction; (ii)
a sale or other disposition of all or substantially all of Borrower’s assets to any person, other than an affiliate of Borrower;
or (iii) a transaction in which any person or related group (other than Borrower and/or its affiliates) acquires more than fifty
percent (50%) of the issued and outstanding shares, or more than fifty percent (50%) of the outstanding voting power of Borrower;
(each of the transactions in clauses (i)-(iii), a “Change in Control Transaction”), then immediately
prior to the closing or effectiveness of the Change in Control Transaction the outstanding Loan Amount shall be converted into
Ordinary Shares of Borrower (the “Change in Control Conversion Shares”) at a price per share equal to
70% of the price per share in the Change in Control Transaction determined as follows: (A) in respect of a Change in Control Transaction
described in clause (c)(i) above, the price per share shall be the aggregate consideration actually to be distributed to and received
by the shareholders of Borrower in the Change in Control Transaction, divided by the aggregate number of issued and outstanding
shares of equity securities of Borrower, on a fully-diluted and as-converted basis, participating in such distribution; (B) in
respect of a Change in Control Transaction described in clause (c)(ii) above, the price per share shall be the aggregate consideration
available for distribution to the holders of the equity securities of Borrower as a result of the Change in Control Transaction,
as determined by the board of directors of Borrower, divided by the aggregate number of issued and outstanding equity securities
of Borrower, on a fully diluted and as-converted basis, eligible to participate in such distribution and (C) in respect of a Change
in Control Transaction described in clause (c)(iii) above the price per share shall be the price per share in such Change in Control
Transaction. The value of securities or other payments-in-kind, if any, distributed to the holders of shares shall be determined
by the board of directors of Borrower, in its sole discretion.

 

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		(d)	Unless previously converted, immediately prior to the consummation
of an initial public offering by Borrower of its shares pursuant to an effective registration statement, prospectus or similar
document under the US Securities Act of 1933, as amended, under the Israeli Securities Law of 1968
or any equivalent law of another jurisdiction (“IPO”), the outstanding Loan Amount shall be converted
into Ordinary Shares of Borrower (the “IPO Conversion Shares”) at a price per share equal to 70% of the
price per share in the IPO (for the avoidance of doubt, it is hereby clarified that in the event the IPO is conducted on the Tel-Aviv
Stock Exchange (“TASE”) the outstanding Loan Amount shall be converted into Ordinary Shares of Borrower
at a price per share equal to 70% of the minimum price per share determined in the Company's Prospectus (including any complimentary
notice, as applicable). In the event that that the securities of Borrower offered in the IPO consist of “units” comprising
Ordinary Shares and other securities, then the price per share in the IPO shall be the effective price per share as part of the
unit as published in the Company's Prospectus or as determined by the board of directors of the Company. For the avoidance of doubt,
it is hereby clarified that in the event the IPO is conducted on the TASE, the effective price per share shall be calculated in
accordance with the TASE's rules and regulations. In any other event the effective price per share shall be calculated based on
the Black-Scholes model. 

 

		(e)	In the event that the Lender Price Per Share, the price per share in a Change in Control Transaction
or the price per share in an IPO is expressed in any currency other than US Dollars, conversion of the Loan Amount shall be in
accordance with the rate of exchange last published by the Bank of Israel and known at the time of consummation of the relevant
transaction and in the event of an IPO on the TASE on the date of publication of the Company's Prospectus.

 

		(f)	Lender acknowledges and agrees that in the event of a public offering of the Company’s securities
any securities issued to Lender upon conversion of the Loan Amount may be subject to a lock-up period.

 

		(g)	It is agreed that in no event shall the price per share paid by Lender for the shares upon conversion
in accordance with this Section 4 (the “Conversion Price Per Share”) exceed a price per share reflecting
a pre-money valuation of Borrower (on a fully-diluted basis) of Twelve Million US Dollars ($12,000,000).

 

		(h)	Upon conversion of the Loan Amount as aforesaid, the Loan and all Interest accrued thereon shall
be deemed fully repaid, and the issuance of the Financing Conversion Shares, Change in Control Conversion Shares, IPO Conversion
Shares or the Senior Conversion Shares, as the case may be, shall be deemed as full and complete satisfaction of all Borrower’s
obligations under this Agreement and Lender shall have no further rights under this Agreement or with respect to the Loan and Interest
accrued thereon.

 

(i)          For
the avoidance of doubt, it is hereby expressly agreed that each of the conversion events described in paragraphs (a) through (d)
this Section 4 is independent of each other such event and the Loan Amount shall be subject to conversion upon achievement of the
conditions set forth in any of such paragraphs.

 

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5.         Grant
of Warrant. Upon conversion of the Loan Amount, Borrower shall grant Lender a warrant substantially in the form of the
Warrant Certificate attached hereto as Exhibit B (the “Warrant”) to purchase additional
Financing Conversion Shares, Change in Control Conversion Shares, IPO Conversion Shares or Senior Conversion Shares, as the case
may be.

 

6.         Representations
and Warranties of Borrower. Borrower hereby represents and warrants to Lender as follows:

 

		(a)	Organization

 

(i)          Borrower
is an Israeli private company duly organized and validly existing under the laws of the State of Israel, has all requisite corporate
power and authority to own and operate its properties and assets and to carry on its business as now conducted.

 

(ii)         No
proceeding or resolution for bankruptcy, dissolution, liquidation, winding-up, scheme of arrangement with creditors, appointment
of receiver or liquidator and/or similar proceeding has been instituted or taken by Borrower, and to the best of Borrower's knowledge,
no such proceeding and no “freezing or stay of process order” has been instituted, threatened or applied for against
Borrower.

 

		(b)	Authority. Borrower has full corporate power and authority to enter into, execute, deliver
and perform this Agreement, to bind itself hereunder, to comply with its obligations hereunder and to carry out the provisions
hereof and thereof, including the issuance of the Financing Conversion Shares, Change in Control Conversion Shares, IPO Conversion
Shares or Senior Conversion Shares, as the case may be and the grant of Warrant under this Agreement.

 

 

7.         Representations
and Warranties of Lender. Lender hereby represents and warrants to Borrower as
follows:

 

		(a)	Organization. If other than an individual, Lender is duly organized, properly registered
and validly existing under the law of the jurisdiction of its organization. No proceeding or resolution for bankruptcy, dissolution,
liquidation, winding-up, appointment of a receiver and/or similar proceeding has been instituted or taken by Lender, and, to the
best of Lender knowledge, no such proceeding has been instituted or threatened against Lender.

 

		(b)	Authority. Lender has the full power and authority to enter into, execute and deliver this
Agreement, bind itself hereunder, comply with its obligations hereunder, and consummate the transactions contemplated hereunder;
the entering into and the execution, delivery and performance by it of this Agreement, and the transactions contemplated hereunder,
have been duly approved and authorized by all the required corporate actions, and this Agreement was signed by its duly authorized
representatives, where required, and constitutes a valid and legally binding obligation on it, enforceable in accordance with its
respective terms, subject to and limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium, and other laws generally
applicable to creditors’ rights, and (b) judicial discretion in the availability of equitable relief. The execution, delivery
and performance of this Agreement and all other related documents do not violate Lender's governing documents or any agreement
to which Lender is a party or by which it is bound.

 

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		(c)	Required Consents. No approval, authorization or consent from any person, entity or authority,
is required by it for the execution, delivery and performance by it of this Agreement.

 

		(d)	Investment Experience. Lender is an investor in securities of companies in the development
stage, and is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial
and business matters that it is capable of evaluating the merits and risks of its grant of the Loan to Borrower as a company in
the research and development stage. Lender has the ability to bear the full economic risk of its Loan pursuant to this Agreement.
Lender also represents that it has (i) performed its own independent review of the data and documents it requested and received
from Borrower in connection with Borrower and this Agreement; (ii) been given the opportunity to ask questions of and receive
answers from Borrower regarding Borrower, the terms and conditions of its shares, and Borrower's current and proposed business,
operations, properties, prospects, legal and financial condition; and (iii) reached the decision to lend funds to Borrower
as a result of, inter alia, careful consideration.

 

		(e)	Investment Purpose. Lender is providing the Loan for investment for its account, not as
nominee or agent, and not with a current view to the resale or distribution of any part thereof, and Lender has no present intention
of selling, granting any participation in or otherwise distributing the same. Lender understands that the Financing Conversion
Shares, Change in Control Conversion Shares, IPO Conversion Shares or Senior Conversion Shares to be issued hereby have not been,
and will not be, registered under the US Securities Act of 1933 (the “1933 Act”) by reason of a specific exemption
from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide
nature of the investment intent and the accuracy of Lender's representations as expressed herein.

 

		(f)	Accredited Investor. If Lender is a U.S. Person (as defined in Regulation S promulgated
under the 1933 Act), it represents to Borrower that Lender is an Accredited Investor (as defined in Rule 501 of Regulation D promulgated
under the 1933 Act). Lender also represents that Lender has not been organized for the purpose of providing the Loan.

 

 

8.         Default.
The entire Loan Amount will immediately become due and payable upon any of the following events of
default:

 

		(a)	the commencement by Borrower of any liquidation proceedings or the adoption of a winding up resolution
by Borrower, or the appointment of a receiver or trustee over the whole or a substantial part or Borrower's assets, or the calling
by Borrower of a meeting of creditors for the purpose of entering into a scheme or arrangement with them, and if any of the aforementioned
actions or proceedings is not canceled within 60 days of its initiation; or

 

		(b)	the levy of an attachment or the institution of execution proceedings against the whole or a substantial
part of Borrower's assets, where such attachment or execution proceeding is not discharged within sixty (60) days. Borrower shall
notify Lender within 72 hours of any such attachment or proceeding.

 

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9.         Confidentiality.
Lender undertakes that all information concerning Borrower, which comes into its possession or to
its attention, whether pursuant to this Agreement, as a shareholder of Borrower or otherwise, including audited and unaudited financial
statements of Borrower, and all other financial, technical and other information relating to Borrower, will be kept in the strictest
confidence and will not, without the prior written consent of Borrower, be used by it or be disclosed to, or discussed with, any
third party provided, however, in the event that Lender is required by law or stock exchange rule to include financial information
obtained pursuant to this Agreement in reports to governmental authorities or stock exchanges, Lender shall be entitled to make
such disclosure to the minimum extent required, and provided, further, that in connection with periodic reports to Lender's shareholders
or partners, Lender may, without first obtaining the prior written consent of Borrower, make general statements, not containing
technical, commercially sensitive or other confidential information, regarding the general nature of Borrower, and may provide
summary and general information regarding Borrower’s revenues and profits to Lender's lawyers and accountants, and in its
reports to its shareholders and partners, but may not annex to such reports the full financial information to be provided by Borrower
hereunder except as required by applicable law and regulations. Notwithstanding the above, the undertaking of confidentiality will
not apply to:

 

(i)          Information
which is in the public domain at the time of disclosure or subsequently becomes part of the public domain, except by breach by
a party hereto of its obligations hereunder; or

 

(ii)         Information
which is received from a third party, provided that such information was not obtained by said third party directly or indirectly
from Borrower pursuant to obligations of confidentiality; or

 

(iii)        Information
which must be disclosed under applicable laws or regulations but only to the extent so required; provided, however, that in the
event a party feels that circumstances exist which require such disclosure, it shall notify Borrower thereof, and provide Borrower
with a copy of such proposed disclosure or notice, promptly and, where possible, in a manner which will enable Borrower to oppose
such disclosure within the period of time allotted under such laws or regulations for submission of the disclosure or notice.

 

10.        Governing
Law and Forum. This Agreement, its interpretation, validity and breach shall be governed by the laws of the State of
Israel, without regard to its conflict of laws rules, and any claim or dispute with respect thereto shall be submitted to the exclusive
jurisdiction of the competent courts of Tel-Aviv, Israel, and each of the parties hereby submits irrevocably to the jurisdiction
of such court to the exclusion of any other jurisdiction and agrees to the service of process by post in accordance with the provisions
of Section 11(i) below.

 

11.        MiscellaneoUS

 

(a)        Further
Cooperation. The parties agree to execute any and all documents necessary in order to consummate, implement and give full force
and effect to this Agreement, and to all matters, actions and transactions envisaged and contemplated herein including, filings
with governmental or regulatory bodies, corporate resolutions and such other documentation as may be reasonably necessary from
time to time.

 

(b)        No Partnership.
The parties to this Agreement are independent contractors. There is no relationship of partnership, joint venture, employment,
franchise or agency between the parties. No party will have the power to bind the other or incur obligations on the other's behalf
without the other's prior written consent.

 

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(c)        Construction.
A reference to a Section, Exhibit or Schedule shall mean a Section in or Exhibit or Schedule to this Agreement, unless otherwise
expressly stated. The titles and headings herein are for reference purposes only and shall not have any significance in the interpretation
of this Agreement nor in any manner limit the construction of this Agreement which shall be considered as a whole. The words “include,”
“includes” and “including” when used herein shall be deemed in each case to be followed by the words “without
limitation.” Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine
or neuter forms, and the singular form of names and pronouns shall include the plural and vice-versa. The plural of any defined
term shall have a meaning correlative to such defined term and words denoting any gender shall include all genders and the neuter.
Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. The parties have
participated jointly in the negotiation and drafting of this Agreement. If any ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

 

(d)        Counterparts;
Facsimile. This Agreement may be executed in any number of counterparts, and at one or more times, each of which containing
the signature of any of the parties, shall be deemed an original, but all of which together shall constitute one and the same instrument.
Any copy of this Agreement executed with an original signature and transmitted via facsimile shall be deemed valid.

 

(e)        Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations,
or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

None of the rights, privileges,
or obligations set forth in, arising under, or created by this Agreement may be assigned without the prior consent in writing of
each party to this Agreement, with the exception of: (a) assignments between Convertible Financing Lenders, and (b) assignments
from Lender to any other entity which controls, is controlled by or is under common control with, Lender; provided, however, that
no such assignment or transfer shall become effective unless each such transferee has provided Borrower with a confirmation in
writing that it is bound by all terms and conditions of this Agreement and all the agreements contemplated hereby.

 

(f)        Severability.
If one or more provisions of this Agreement is held to be illegal, invalid or unenforceable under applicable law, such provision
shall be excluded from this Agreement, and the balance of the Agreement shall be interpreted as if such provision were so excluded
and shall be enforceable in accordance with its terms; provided, however, that in such event this Agreement shall be interpreted
so as to give effect, to the greatest extent consistent with and permitted by applicable law, to the meaning and intention of the
excluded provision as determined by such court of competent jurisdiction.

 

(g)        Waivers.
The failure of any party at any time or times to require performance of any provision hereof or to enforce any right with respect
thereto, shall in no manner affect the right of such party at a later time to enforce the same and shall in no way be construed
to be a waiver of such provision or right.

 

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(h)        Entire
Agreement; Amendments. This Agreement and the exhibits attached hereto constitute the full and entire understanding and agreement
among the parties with regard to the subjects hereof and thereof, and no previous agreements, memoranda of agreements, letters,
negotiations, promises, consents, undertakings, representations, warranties or documents which were applied, exchanged, or signed
by or between any of the parties hereto prior to the signing of this Agreement shall have any force or effect. Any term of this
Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance
and either retroactively or prospectively) in the context of a similar amendment or waiver in respect of the Conversions Lender
Loans, with the written consent of Borrower and Conversion Financing Lenders who have provided a majority of the outstanding Aggregate
Total Amount provided as Conversion Lender Loans.

 

(i)          Notices.
All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall
in any event be deemed to be given upon receipt or, if earlier, (a) five (5) business days after the business day of deposit
with an express courier, freight prepaid, (b) upon delivery, if delivered by hand; or (c) one (1) business day after
the business day of facsimile transmission or e-mail, if delivered by facsimile transmission or sent by e-mail. All such notices
and other communications shall be addressed to the following addresses or such other address as the recipient party may designate
by ten (10) days advance written notice to the other party pursuant to the provisions above:

 

If
to Lender, as set forth on the signature page hereunder.

 

If
to Borrower:

RedHill
Biopharma Ltd.         

42
Givati Street

Ramat-Gan
52232, Israel

Fax:
972-3-7255723

Email:
ori@redhillbio.com

Attn:
Ori Shilo

 

(j)        Publicity. Lender shall
not, subject to the requirements or law, regulations or order, issue any press release or undertake any publicity concerning the
existence or any of the terms or provisions of this Agreement or any of the transactions contemplated hereby or thereby without
the prior written consent of Borrower.

 

(k)        Fees and Expenses. Lender
and Borrower shall each bear their own expenses and legal fees incurred by them or on their behalf with respect to this Agreement
and the transactions contemplated hereby.

 

[Remainder of page intentionally left
blank]

 

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SIGNATURE PAGE

 

IN WITNESS WHEREOF, the parties have executed
this Convertible Loan Agreement.

 

BORROWER

 

RedHill Biopharma Ltd.

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Date:	 	 

 

LENDER

 

Name of Lender: 

 

	 	 

 

Signature of Lender:

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

	Identity No./Company No.	 	 

 

	Principal Amount of Loan:	 	 

 

	Address of Lender:	 	 
	 	 	 

 

	Facsimile No. 	 	 

 

	Date:	 	 

 

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Exhibit
A

 

RedHill
Biopharma – Israeli Bank Details

 

RedHill
Biopharma – USA Bank Details

 

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Exhibit
B

 

Warrant Certificate

 

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THE WARRANT AND THE SECURITIES ISSUABLE
UPON THE EXERCISE OF THIS WAARANT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), THE ISRAELI SECURITIES LAW OF 1968 (THE “SECURITIES LAW”) OR ANY APPLICABLE STATE SECURITIES
LAWS. IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, THE SECURITIES LAW AND SUCH STATE LAWS, THESE SECURITIES
MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT, THE SECURITIES LAW AND SUCH STATE LAWS.

 

WARRANT TO PURCHASE SHARES

 

RedHill Biopharma Ltd., an Israeli company (the “Company”),
hereby grants to _________________________ (the “Holder”), the right to purchase from the Company such number
and class of shares of the Company, set forth below, subject to the terms and conditions set forth below. The parties acknowledge
that this Warrant is granted in connection with the conversion of a loan extended by Holder to the Company pursuant to the terms
and conditions of that certain Convertible Loan Agreement dated [ ], 2010 (the “Loan” and the “Loan
Agreement”, respectively). Unless otherwise required by the context, all capitalized terms used herein and not otherwise
defined shall have the respective meanings ascribed to them in the Loan Agreement.

 

1.          Number
of Shares Available for Purchase and Exercise Price

 

This Warrant may be exercised
to purchase up to that number of shares of the Company of the class determined as provided below (the “Warrant Shares”)
equal to $[ ],000, which is equal to thirty percent (30%) of the original principal amount of the Loan (without any interest or
linkage), divided by the Warrant Price (as defined below). For the purposes of this Warrant, the class of shares comprising the
Warrant Shares shall be the class comprising the Financing Conversion Shares, Change in Control Conversion Shares, IPO Conversion
Shares or Senior Conversion Shares (as such terms are defined in the Loan Agreement), as the case may be, issued to the Holder
in connection with the conversion of the Loan and shall be referred to as the “Conversion Class of Shares”.
Notwithstanding the foregoing, from and after immediately prior to the consummation of an IPO (as defined in the Loan Agreement),
the outstanding Conversion Class of Shares shall be Ordinary Shares of the Company.

 

The exercise price for
each Warrant Share (the “Warrant Price”) shall be calculated as follows: (i) in the event Holder exercises this
Warrant within six (6) months following the Conversion Event (as such term is defined in Section 5 of the Loan Agreement) (the
“Initial Exercise Period”), the Warrant Price shall be equal to 130% of the Conversion Price Per Share (as defined
in the Loan Agreement) at which the Loan was converted in the Conversion Event; (ii) in the event Holder exercises this Warrant
within six (6) months following the end of the Initial Exercise Period (the “Second Exercise Period”), the Exercise
Price shall be equal to 140% of the Conversion Price Per Share at which the Loan was converted in the Conversion Event; and (iii)
in the event Holder exercises the Warrant following the end of the Second Exercise Period, the Exercise Price shall be equal to
150% of the Conversion Price Per Share at which the Loan was converted in the Conversion Event.

 

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2.          Term

 

This Warrant may be exercised,
in whole, or in part (subject to Section 4 below), during the period beginning on the date of the Conversion Event and ending on
the earlier to occur of: (a) thirty-six (36) months following the date of closing under the Loan Agreement or (b) a Change in Control
Transaction (as defined in the Loan Agreement) (the “Exercise Period”).

 

3.          Exercise
of Warrant

 

This Warrant may be exercised
in whole or in part on any number of occasions during the Exercise Period. The Warrant may be exercised by the surrender of the
Warrant to the Company at its principal office together with the Notice of Exercise annexed hereto duly completed and executed
on behalf of the Holder. This Warrant may be exercised for cash only. To exercise, the Notice of Exercise must be accompanied by
payment in full of the amount of the aggregate Warrant Price payable for the Warrant Shares being purchased upon such exercise
in immediately available funds, in U.S. Dollars or NIS equivalent thereof, based on the representative rate of exchange last published
by the Bank of Israel and known at the time of payment.

 

The Company agrees that the Warrant Shares so purchased shall
be issued as soon as practicable thereafter, and that the Holder shall be deemed the record owner of such Warrant Shares as of
and from the close of business on the date on which this Warrant shall be surrendered, together with payment in full as required
above. In the event of a partial exercise, the Company shall concurrently issue to the Holder a replacement Warrant on the same
terms and conditions as this Warrant, but representing the number of Warrant Shares remaining after such partial exercise.

 

4.          Fractional
Shares

 

No fractional shares
will be issued in connection with any exercise hereunder, and the number of Warrant Shares issued shall be rounded down to the
nearest whole number.

 

5.          Warrant
Confers No Rights of Shareholder

 

Except as otherwise set
forth in this Warrant, the Holder shall not have any rights as a shareholder of the Company with regard to the Warrant Shares prior
to actual exercise of this Warrant resulting in the purchase of Warrant Shares and the issuance of such shares.

 

    	13

    	 

    

 

 

6.          Investment
Representation

 

Neither this Warrant
nor the Warrant Shares issuable upon the exercise of this Warrant have been, as of the date hereof, registered under the 1933 Act,
the Securities Law or any other securities laws. The Holder agrees that any Warrant Shares issuable upon exercise of this Warrant
will be acquired for investment and not with a view to distribution and such Warrant Shares will not be registered under the Securities
Act, the Securities Act or any applicable state securities laws and that such Warrant Shares may have to be held indefinitely unless
they are subsequently registered or qualified under the 1933 Act, the Securities Law and applicable state or foreign securities
laws, or based on an opinion of counsel reasonably satisfactory to the Company that an exemption from such registration and qualification
is available. The Holder, by acceptance hereof, consents to the placement of legend(s) on all securities hereunder as to the applicable
restrictions on transferability in order to ensure compliance with the 1933 Act and the Securities Law, unless in the opinion of
counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act and the Securities Law. The
Company may issue stop transfer instructions to its transfer agent in connection with such restrictions. Adjustment of Warrant
Price and Number of Shares

 

7.          Adjustment.

 

The
number and kind of securities purchasable initially upon the exercise of this Warrant and the Warrant Price shall be subject to
adjustment from time to time upon the occurrence of certain events during the Exercise Period, as follows:

 

		a.	Adjustment for Shares Splits and Combinations.
If the Company at any time or from time to time during the Exercise Period effects a subdivision of the Conversion Class of Shares,
the number of shares issuable upon exercise of this Warrant immediately before the subdivision shall be proportionately increased
and conversely, if the Company at any time or from time to time combines the outstanding Conversion Class of Shares, the number
of shares issuable upon exercise of this Warrant immediately before the combination shall be proportionately decreased. Any adjustment
under this Section 7(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

		b.	Adjustment for Reclassification, Exchange and Substitution.
If the shares of the Conversion Class of Shares issuable upon the exercise of this Warrant are changed into the same or a different
number of shares of any class or classes of shares, whether by recapitalization, conversion, reclassification or otherwise (other
than a subdivision or combination of shares or shares dividend or a reorganization, merger, consolidation or sale of assets,
provided for elsewhere in this Section), then and in any such event the Holder shall have the right thereafter to exercise this
Warrant into the kind and amount of shares and other securities receivable upon such recapitalization, reclassification or other
change, by holders of the number of shares of the Conversion Class of Shares for which this Warrant might have been exercised
immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein and
under the Company’s Articles of Association.

 

    	14

    	 

    

 

		c.	Reorganization Mergers, Consolidations or Sales
of Assets. If at any time or from time to time during the Exercise Period there is a capital reorganization of the Conversion
Class of Shares (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for
elsewhere in this Subsection), or a merger or consolidation of the Company with or into another corporation, or the sale of all
or substantially all of the Company’s shares or properties and assets to any other person, then, as a part of such reorganization,
merger, consolidation or sale, then, as a part of such reorganization, provision shall be made so that the Holder shall thereafter
be entitled to receive upon exercise of this Warrant, the number of shares or other securities or property of the Company, or
of the successor corporation resulting from such merger or consolidation or sale to which a holder of the shares of the Conversion
Class of Shares deliverable upon conversion would have been entitled on such capital reorganization merger, consolidation or sale.
In any such case (except to the extent any cash or property is received in such transaction), appropriate adjustment shall be
made in the application of the provisions of this Subsection and the Company’s Articles of Association with respect to the
rights of the Holder after the reorganization merger, consolidation or sale to the end that the provisions of this Subsection
and the Company’s Articles of Association (including adjustment of the number of shares of the Conversion Class of Shares
issuable upon exercise of this Warrant) shall be applicable after that event and be as nearly equivalent to the provisions hereof
as may be practicable.

 

		d.	Adjustment of Warrant Price. Upon each
relevant adjustment in the number of the Conversion Class of Shares purchasable hereunder, the Warrant Price shall be proportionately
increased or decreased, as the case may be, in a manner that is the inverse of the manner in which the number of the Conversion
Class of Shares purchasable hereunder shall be adjusted.

			

 

		e.	Notice of Adjustments. Whenever the Warrant
Price or the number of Warrant Shares purchasable hereunder shall be adjusted pursuant to this Section 7, the Company shall provide
the Holder with a certificate setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment,
the method by which such adjustment was calculated, and the Warrant Price and the number of Warrant Shares purchasable hereunder
after giving effect to such adjustment.

 

8.          Transfer

 

The
transfer of this Warrant shall be restricted in the same manner as the transfer of shares of the Conversion Class of Shares is
restricted by the provisions of the Articles of Association. Without derogating from the foregoing, following the initial public
offering of the shares of the Company, the transfer of this Warrant shall be subject to the prior written approval of the Company's
board of directors. In the event of a public offering of the Company’s securities the Warrant Shares issued to the Holder
upon exercise of this Warrant may be subject to a lock-up period along with the other shareholders of the Company. 

 

    	15

    	 

    

 

 

9.          Representations
and Warranties.

 

The Company represents
and warrants to the Holder as follows:

 

		a.	This Warrant has been duly authorized and executed by
the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms.

 

		b.	Subject to the creation of the Conversion Class of Shares,
the Warrant Shares shall be duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable and not subject to any preemptive rights.

 

		c.	Subject to the creation of the Conversion Class of Shares,
the execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance
with the terms hereof will not be, inconsistent with the Company’s Articles of Association.

 

10.         Loss,
Theft, Destruction or Mutilation of Warrant

 

Upon receipt by the Company
of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of any Warrant or Shares certificate, and
in case of loss, theft or destruction, of indemnity, or security reasonably satisfactory to it, and upon reimbursement to the Company
of all reasonable expenses incidental thereto, and upon surrender and cancellation of such Warrant or Shares certificate, if mutilated,
the Company will make and deliver a new Warrant or Shares certificate of like tenor and dated as of such cancellation, in lieu
of such Warrant or Shares certificate.

 

11.         Tax

 

Any
tax arising with respect to the grant or exercise of the Warrant, the payment for, or disposition of the Warrant Shares covered
thereby, or from any other event or act in connection therewith, shall be borne solely by the Holder. The Company shall be entitled
to withhold taxes according to the requirements of any applicable laws, rules, and regulations, including withholding taxes at
source. The Holder shall indemnify the Company and hold the Company harmless against and from any and all liability for any such
tax or interest or penalty thereon.

 

12.         Notices

 

Any notice or other communication
hereunder shall be in writing and shall be deemed to have been given upon delivery, if personally delivered or three (3) business
days (five (5) business days if sent internationally) after deposit if deposited in the mail for mailing by registered or certified
mail (airmail if sent internationally), postage prepaid, and addressed as follows:

 

If to Holder:

			

 

To the address set forth on the
signature page hereto

			

 

If to Company: 

42 Givati
Street

 

    	16

    	 

    

 

Ramat-Gan
52232, Israel

Tel: 972-3-6761706

Fax: 972-3-7255723

Email:
ori@redhillbio.com

Attn: Ori
Shilo

 

Each of the above addressees
may change its address for purposes of this paragraph by giving to the other addressees notice of such new address in conformance
with this paragraph.

 

13.         Applicable
Law; Jurisdiction

 

This Warrant shall be
governed by and construed in accordance with the laws of the State of Israel as applicable to contracts between two residents of
the State of Israel entered into and to be performed entirely within the State of Israel. Any dispute arising under or in relation
to this Warrant shall be resolved exclusively in the competent court for Tel Aviv-Jaffa district, and each of the parties hereby
submits irrevocably to the exclusive jurisdiction of such court.

 

13.         Entire
Agreement

 

This Warrant constitutes
the entire agreement between the parties hereto with regard to the subject matters hereof, and supersedes any prior communications,
agreements and/or understandings between the parties hereto with regard to the subject matters hereof.

 

[Remainder of page intentionally left
blank]

 

    	17

    	 

    

 

IN WITNESS WHEREOF, the Company has executed this Warrant Certificate
as of the date set forth below.

 

14.         

 

	Dated:	 	 

 

RedHill Biopharma Ltd. 

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

Agreed and accepted:

 

Holder

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

Address:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

[SIGNATURE PAGE TO WARRANT CERTIFICATE]

 

    	18Exhibit 4.12

 

THE SYMBOL "****" DENOTES
PLACES WHERE PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. SUCH MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

MASTER SERVICE AGREEMENT for RHB-104
R&D Program (“AGREEMENT”)

	 

 

	BY AND BETWEEN:	 	RedHill Biopharma Ltd., with principle place of business at 42 Givati St. Ramat-Gan 52232, Israel
	 	 	(herein after referred to as the “CLIENT”),
	 	 	 
	AND:	 	7810962 Canada Inc (doing Business under the name “InSymbiosis”), a body politic and corporate, duly incorporated according to the laws of Canada and with principle place of business at 245 Victoria Ave, Suite 100, Montreal, Quebec, H3Z 2M6, Canada,
	 	 	(herein after referred to as the “PROVIDER”),

 

The Client and the Provider are in this
Agreement sometimes individually referred to a “Party” and collectively as the “Parties”.

 

WHEREAS all
or substantially all of the PROVIDER’s revenue is derived from the prosecution of scientific research and development (R&D),
as defined in the Income Tax Act, including the sale of rights arising therefrom;

 

WHEREAS the
CLIENT requires certain R&D services related to the development of RHB-104 that shall be executed by the PROVIDER. The results
and all ensuing intellectual property rights (“IP Rights”, as defined herein below) shall accrue exclusively to the
benefit of and be rendered to the CLIENT. Such projects and types of services will be set forth in sequentially numbered service
agreements that will be executed by the parties from time to time and will be appended to this Agreement; and

 

WHEREAS the
Parties have agreed to certain terms and conditions, the whole as is fully set forth below. 

 

    	 

    	 

    

 

NOW, THEREFORE, THE PARTIES HERETO AGREE
AS FOLLOWS:

 

GENERAL

 

1.                    PROVIDER will provide services
to CLIENT in the form of:

 

		a.	Project management services related to the R&D of RHB-104 as defined in paragraphs 6-9 below.

		b.	R&D services through the use of third party providers related to the research and development
of RHB-104 as defined in paragraph 12-15 below.

2.                    PROVIDER will provide [****]
to CLIENT with respect to the R&D services through the use of third party providers as defined in paragraph 16-24 below.

3.                    Confidential information shall
be handled as per the mutual disclosure agreement executed between the parties as per Appendix 1.

4.                    For the purpose of this Agreement,
“IP Rights” means all intangible, intellectual, proprietary and industrial property rights and all intangible embodiments
thereof wherever located with respect to the particular R&D, including without limitation, (i) all trade-marks, trade names,
slogans, domain names, URLs or logos; (ii) all copyrights, moral rights and other rights in works of authorship; (iii) all patents
and patent applications, industrial designs, patentable ideas, inventions and innovations; (iv) all know-how and trade secrets;
and (v) all registrations, applications, renewals, extensions, continuations, divisions or reissues thereof now or hereafter in
force (including any rights in any of the foregoing); (vi) all results of research, i.e. data and reports, samples and chemical
or biological products. All and any results, data, information, discoveries, technology or inventions created, generated, made,
conceived, developed, or reduced to practice by the PROVIDER or third party providers as a result of performance of the particular
R&D and all IP Rights related thereto, and all IP whatsoever related to this Agreement (together the “IP”) is,
will be and will remain the sole property of CLIENT and shall accrue to the exclusive benefit of the CLIENT. The specific manner
in which the IP will be transferred and assigned (if such transfer or assignment is appropriate or necessary) to the CLIENT shall
be determined in the service agreements. For the avoidance of doubt, the cost of sale and assignment of such IP (if any) to the
CLIENT is included in the amount that the CLIENT agrees to pay to the PROVIDER as described in this Agreement and the service agreements.
The CLIENT will be required to make no additional payment whatsoever. The CLIENT shall have the exclusive right to use such IP
for any and all purposes, and shall have the full, unrestricted right to assign, license, sublicense and otherwise transfer any
such IP and the deliverables without any further payment to PROVIDER.

 

5.                    All other terms and conditions
regarding CLIENT’S materials, price, indemnification, warranties and term and termination will be specific to and defined
in the sequentially numbered Service Agreements that will be appended to this Agreement.

 

PROJECT MANAGEMENT SERVICES

 

6.                    PROVIDER will provide project
management services to CLIENT related to the RHB-104 program. Both PROVIDER and CLIENT will have a variety of responsibilities
as outlined below.

7.                    The PROVIDER will:

		a.	Provide an opinion on and recommendations in relation to the regulatory path and steps as proposed by the CLIENT (for the avoidance
of doubt, it shall remain within the CLIENTs discretion and responsibility to follow such recommendations or not).

		b.	Provide scientific and technical consulting services with respect to the design and planning of studies outsourced to the PROVIDER,
taking into account any instructions from the CLIENT in relation to the regulatory path and steps determined by the CLIENT.

 

7810962 Canada Inc

 

    	2

    	 

    

 

		c.	Propose qualified third party providers (CROs and CMOs) and advise the CLIENT on collaboration terms in line with market practice,
taking into account the specific R&D requirements (including regulatory requirements) of studies outsourced to the PROVIDER.

		d.	Manage the outsourcing of the studies agreed with third party providers (CROs and CMOs) where their intent will be to ensure
that the third party providers perform the studies in compliance with the regulatory instructions, protocols and work plans and
in a timeframe that respects the key pre-agreed milestones. This responsibility includes regular visits to CRO and CMO sites that
the PROVIDER suggests for the relevant studies.

		e.	Provide scientific and technical consulting services with respect to the interpretation of the data generated during studies
under the management of the PROVIDER.

		f.	Maintain an open and proactive communication line with the CLIENT to ensure that the CLIENT is up to date on project status
so as to enable the CLIENT to make key decisions in a timely manner.

		g.	At the outset of any specific project, agree with the CLIENT on (i) a recommended project management plan including the frequency
and content of follow up reports, weekly meetings (see (h) below), meeting reports, status updates etc., (ii) specific procedures
to be followed by all persons involved in the management of the RHB-104 program, and (iii) communication and escalation procedures
to deal with management of schedules, quality and cost issues.

		h.	The PROVIDER will organize weekly status meetings with the CLIENT in order to provide the CLIENT’S team members updates
regarding the on-going studies and work. These meetings will be held on a day each week that is to be agreed upon between the parties.
A status report document will be sent out by the PROVIDER to the relevant parties the day prior the meeting as well as meeting
minutes the day following the call.

		i.	As part of the Planning Phase (pre-study or work start up) and the Activities Phase (whilst study or work is ongoing), the
PROVIDER will be responsible for creating and owning Gantt charts which will be reviewed and approved by the CLIENT.

		j.	The PROVIDER will as part of its project management duties, monitor the key critical pre-agreed milestones and provide the
CLIENT with updates of the progression of these milestones via the various meetings and status reports as described in (g) and
(h) above.

		k.	Provide first drafts of the service agreements to be entered into between the CLIENT and the PROVIDER when third party providers
are involved in accordance with clause 12-15 below.

		l.	For the provision of the services set out above in this clause 8, PROVIDER will make available the following persons:

 

[****] (The Team) will work full time on the RBH-104
program but it is understood and agreed to by the Parties that The Team will be allowed to work on projects for other clients as
long as The Team ensures that their ability to fully execute their work for the RBH-104 program is not affected.

 

In addition, other members will contribute to the
efforts of The Team including but not restricted to business development individuals, CMC specialists and quality experts.

 

7810962 Canada Inc

 

    	3

    	 

    

 

8.                    The CLIENT will:

		a.	Be responsible for all regulatory topics related to all studies and work outsourced to the PROVIDER. The PROVIDER acknowledges
that the CLIENT will for this purpose, involve regulatory experts including but not restricted to:

		i)	Preparation of all regulatory applications such as IND, CTA, Orphan Designation, etc.

		ii)	Submission and receipt of IND/CTA approvals by relevant regulatory authorities

		iii)	Payment of associated regulatory costs to ensure that study sites (CROs, CMOs etc) are up to standards and comply with regulatory
requirements identified by the CLIENT.

The CLIENT will include the PROVIDER in the discussions
with regulatory experts to the extent that is necessary to allow the PROVIDER to align the management of the program with regulatory
requirements and recommendations.

		b.	The CLIENT will be responsible for emergency responses and medical information via assigned personnel for Chief Scientific
Officer and Chief Medical Officer responsibilities.

		c.	In a timely manner, provide the PROVIDER with all information reasonably required for the PROVIDER to deliver the above mentioned
services.

		d.	In a timely manner, respond to phone calls and emails from the PROVIDER.

		e.	In a timely manner, review and provide feedback on study related documents
(protocols, work plans, draft reports etc) in order not to delay the progression of the program (it being understood that it shall
remain entirely within the PROVIDER’S discretion to sign and approve such study related documents). 

9.                    Both the PROVIDER and the
CLIENT agree that:

		a.	The scientific findings of the studies and work may influence the ability to meet timelines and may change the overall budget
of a study. Timeline and budget changes will be communicated by the PROVIDER to the CLIENT as part of the PROVIDER’S project
management responsibilities, it being understood that the PROVIDER shall not make any commitments or incur any expenses whatsoever
outside of the original budget without the CLIENT’s prior written approval.

		b.	The opinions of the PROVIDER and the interpretation of the scientific findings of the studies by the PROVIDER may not necessarily
coincide with the opinions of the regulatory authorities.

		c.	The PROVIDER may make recommendations to the CLIENT throughout the course of the RHB-104 program. The CLIENT will however be
ultimately responsible for making decisions regarding their compounds during the program.

		d.	Communication chain for third party provider management: the communications will be directly between
the PROVIDER and the third party provider, it being understood that the CLIENT will at all times be kept informed and be copied
on any communication between the PROVIDER and the third party service providers (i.e.: copied on emails, involved on teleconference
calls, etc.).

 

7810962 Canada Inc

 

    	4

    	 

    

 

CLIENT MATERIALS

 

10.                    The parties agree that all
Client Materials furnished by the CLIENT to the PROVIDER or a third party provider of the PROVIDER in connection with the prosecution
of the particular R&D hereunder and all associated IP Rights therein shall remain the exclusive property of the CLIENT. The
PROVIDER undertakes to destroy or return to the CLIENT or cause the third party provider to destroy or return to the CLIENT, at
the CLIENT’s option, all unused supplies of such CLIENTS Materials furnished by the CLIENT when the work pertaining to the
particular Client Materials is discontinued, completed or otherwise terminated. In the event of the return of Client Materials
to the CLIENT, transfer of such Client Materials shall be at the CLIENT’s sole cost and expense. For the purpose of this
clause, “Client Materials” means proteins, polypeptides, amino acids, amino acid sequences, genes, partial genes, DNA,
RNA, nucleotides, nucleotide sequences, plasmids, vectors, expression systems, cells, cell lines, organisms, antibodies, other
biological substances, and any constituents, progeny, mutants, fragments, unmodified derivatives, derivatives or replications thereof
or there from, together with all reagents, chemical compounds or other materials, including public domain materials, furnished
to the PROVIDER by the CLIENT in connection with the PROVIDER’s prosecution of R&D hereunder.

 

PROJECT MANAGEMENT FEES

 

11.                    During the term of the Agreement,
PROVIDER will charge CLIENT a monthly project management fee of $US10,000. This monthly project management fee will be payable
as follows, subject to a lawful invoice issued by PROVIDER and received by CLIENT:

		a.	A first payment covering the first 6 months, payable within 21 days of the date of signing of this
Agreement;

		b.	Subsequent quarterly payments, payable each quarter, in advance, within 21 days of the beginning
of the relevant quarter.

 

R&D SERVICES THROUGH THE USE
OF THIRD PARTY PROVIDERS

 

12.                    The PROVIDER shall provide
R&D services to the CLIENT through the use of third party providers and shall manage the third party providers as described
above under project management services.

 

13.                    The PROVIDER shall only use
a third party provider after the CLIENT has provided its written approval and after a service agreement between the PROVIDER and
the CLIENT specific to the services offered via the third party provider has been fully executed and after the CLIENT has provided
written approval of the Service Agreement executed between the PROVIDER and the third party provider.

 

14.                    A list of the specific R&D
services provided through the use of third party providers that are to be included in this Agreement and specific to the RHB-104
R&D program are outlined in Appendix 2. Additional R&D services can be added to this list in Appendix 2 subject to written
approval of the CLIENT and the PROVIDER and will result in an amendment to Appendix 2.

 

15.                    Service Agreements executed
by the PROVIDER and the CLIENT for specific R&D services (as listed in Appendix 2) through the use of third party providers
shall be appended to this Agreement in sequentially numbered Service Agreements in Appendix 3.

 

7810962 Canada Inc

 

    	5

    	 

    

 

[****]

 

16.                    The [****] offered in this
Agreement covers of the PROVIDER starting [****] and starting [****].

17.                    The PROVIDER shall perform
a series of R&D activities related to the RHB-104 program according to the terms and conditions of the individual service agreements
as appended to this Agreement in Appendix 3.

18.                    The PROVIDER shall charge
the CLIENT at pass through costs for work performed through third party providers provided such pass through costs have been pre-approved
by the CLIENT. For greater clarity, the PROVIDER will charge the CLIENT the amount that is charged to the PROVIDER by third party
providers without any markup whatsoever, and subject to pre-approval in writing by the CLIENT. These charges are defined as Study
Charges and such Study Charges will be detailed in the specific service agreements in Appendix 3.

19.                    No later than 60 days after
the end of each financial year for PROVIDER, PROVIDER shall furnish CLIENT with a Statement of Costs detailing all Study
Charges invoices sent to CLIENT from PROVIDER during the course of the preceding financial year. The CLIENT shall verify that they
are in agreement with the statement.

20.                    Once
agreement regarding the Statement of Costs is reached between the PROVIDER and the CLIENT, the PROVIDER shall issue a draft
and tentative [****] to the CLIENT based upon the following:

 

		·	The CLIENT shall receive [****] For greater
clarity, the amount that the CLIENT will receive will be calculated as follows:

 

[****]

[****]

21.                    Within a maximum of 120 days
of the financial year end of the PROVIDER, the PROVIDER shall file a tax return with CRA, Revenue Quebec (and, subject to prior
agreement between the Parties, any other relevant country, state, region or province), [****].

22.                    Once the PROVIDER has received
a Statement of Assessment from CRA and Revenue Quebec regarding [****]

23.                    Once agreement regarding
the final [****] is reached between the PROVIDER and the CLIENT, the PROVIDER will issue a [****]. The CLIENT will have
the option to

24.                    For projects related to the
RHB-104 program that start during the financial years covered by this Agreement and are included in Appendix 2 and 3 of this Agreement
and where expenses are incurred the year following year two (2), [****] will be applied in the following two financial years and
PROVIDER commits to extending the terms and conditions of this Agreement by agreeing to execute an identical agreement for those
following two financial years.

 

7810962 Canada Inc

 

    	6

    	 

    

 

TERMINATION

 

25.                    This Agreement shall commence
on the date hereof and shall continue for an initial period of 2 years, unless earlier terminated under in accordance with clauses
27-30 below (the “Initial Term”). After the Initial Term, this Agreement may be extended for further periods to be
agreed in writing between the parties at that time.

 

26.                    The CLIENT may terminate
this Agreement without cause upon thirty (30) days prior written notice to the PROVIDER.

 

27.                    The PROVIDER may terminate
this Agreement effective upon thirty (30) days prior written notice to the CLIENT, if the CLIENT commits a material breach of this
Agreement and fails to cure such breach by the end of such thirty (30) day period.

 

28.                    Either Party may terminate
this Agreement effective upon written notice to the other Party, if the other Party becomes insolvent or admits in writing its
inability to pay its debts as they become due, files a petition for bankruptcy, makes an assignment for the benefit of its creditors
or has a receiver, trustee or other court officer appointed for its properties or assets.

 

29.                    Expiration or termination
of this Agreement shall be without prejudice to any rights or obligations that accrued to the benefit of either party prior to
such expiration or termination (this includes, for the avoidance of doubt, the [****] as set out in article 16 and following of
this Agreement). In case of termination by the CLIENT in accordance with clause 27, the PROVIDER shall [****].

 

NOTICES

 

30.                    All notices and other communications
hereunder shall be in writing and shall be deemed given: (A) when delivered personally; (B) when delivered by facsimile transmission
(receipt verified); (C) when received or refused, if mailed by registered or certified mail (return receipt requested), postage
prepaid; or (D) when delivered if sent by express courier service, to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice; provided, that notices of a change of address shall be effective only
upon receipt thereof):

 

	To CLIENT:	RedHhill Biopharma Ltd.
	 	42 Givati St. Ramat-Gan 52232, Israel
	 	Attention: Ori Shilo, VP Finance & Operations
	 	Facsimile: +972 3 7255 723
	 	 
	To PROVIDER :	7810962 Canada Inc
	 	245 Victoria Ave, Suite 100, Montreal, Quebec, H3Z 2M6, Canada
	 	Attention: Alain Guimond, PhD, Senior Director of Research
	 	Facsimile: +1 514-315-9029 

 

GENERAL PROVISIONS

 

31.                    This Agreement including
the attachments, as well as the Confidentiality Agreement dated February 26, 2010, constitute the entire understanding between
the Parties and supersedes any contracts, agreements or understanding (oral or written) of the parties with respect to the subject
matter hereof. No term of this Agreement may be amended except upon written agreement of both parties, unless otherwise provided
in this Agreement.

 

7810962 Canada Inc

 

    	7

    	 

    

 

32.                    The captions in this Agreement
are for convenience only and are not to be interpreted or construed as a substantive part of this Agreement.

 

33.                    Failure by either Party to
insist upon strict compliance with any term of this Agreement in any one or more instances will not be deemed to be a waiver of
its rights to insist upon such strict compliance with respect to any subsequent failure.

 

34.                    If any term of this Agreement
is declared invalid or unenforceable by a court or other body of competent jurisdiction, the remaining terms of this Agreement
will continue in full force and effect.

 

35.                    The relationship of the Parties
is that of independent contractors, and neither party will incur any debts or make any commitments for the other party except to
the extent expressly provided in this Agreement. Nothing in this Agreement is intended to create or will be construed as creating
between the Parties the relationship of joint ventures, co-partners, employer/employee or principal and agent.

 

36.                    This Agreement will be binding
upon and inure to the benefit of the parties, their successors and permitted assigns. Neither Party may assign this Agreement,
in whole or in part, without the prior written consent of the other Party (which consent shall not be unreasonably withheld, conditioned
or delayed), except that CLIENT may, without the PROVIDER’s consent, assign this Agreement to an affiliate or to a successor
to substantially all of the business or assets of it or to a successor to all of the assets relating to RHB-104.

 

37.                    This Agreement may be executed
in one or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same
instrument.

 

38.                    Neither Party will make any
press release or other public disclosure regarding this Agreement or the transactions contemplated hereby without the other party's
express prior written consent (which shall not be unreasonably withheld, conditioned or delayed), except as required under applicable
law or stock exchange requirement or by any governmental agency or regulatory authority, in which case the Party required to make
the press release or public disclosure shall use commercially reasonable efforts to obtain the approval of the other Party (which
shall not be unreasonably withheld, conditioned or delayed) as to the form, nature and extent of the press release or public disclosure
prior to issuing the press release or making the public disclosure.

 

39.                    This Agreement shall be construed
and enforced in accordance with, and the rights of the parties shall be exclusively governed by, the laws of the United Kingdom.
Any disputes arising out of this agreement shall be submitted to the exclusive jurisdiction of the courts of London, England and
all proceedings shall be drafted and conducted using only the English language.

 

7810962 Canada Inc

 

    	8

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first herein above mentioned.

 

	 	 	REDHILL BIOPHARMA Ltd
	 	 	 
	 	 	/s/ Dror Ben-Asher
	 	Per:	Dror Ben-Aher
	 	 	 
	 	Title:	CEO
	 	 	 
	 	Date:	April 28, 2011
	 	 	 
	 	 	PARTY OF THE FIRST PART
	 	 	 
	 	 	7810962 Canada Inc.
	 	 	 
	 	 	/s/ Alain Guimond
	 	Per:	Alain Guimond
	 	 	 
	 	Title:	Senior Director of Research
	 	 	 
	 	Date:	April 28, 2011
	 	 	 
	 	 	PARTY OF THE SECOND PART

 

7810962 Canada Inc

 

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APPENDIX 1

 

Mutual Confidentiality Agreement as executed on February 26th
2010

 

7810962 Canada Inc

 

    	10

    	 

    

 

APPENDIX 2

 

List of Services Provided through the use of Third Party Providers:

 

		1.	Service Agreement 1: Research and Tech Transfer, manufacturing and supply agreement for RHB-104 (Uman Agreement):

		a.	Status: Executed on April 28, 2011

		2.	Service Agreement 2: Clinical Service Agreement for 2 Phase II/III studies of RHB-104 on Patients with MAP infected Crohn's
disease (Pharmanet Agreement):

		a.	Status: Not yet executed

 

7810962 Canada Inc

 

    	11

    	 

    

 

APPENDIX 3

 

Service agreements listed in Appendix 2 above are separate documents
that form an integral part of this agreement.

 

7810962 Canada Inc

 

    	12

    	 

    

 

 

THE SYMBOL "****" DENOTES
PLACES WHERE PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. SUCH MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

AMENDMENT
#1

 

AMENDMENT TO THE MASTER SERVICE AGREEMENT
FOR REDHILL BIOPHARMA LTD.’S RHB-104 R&D PROGRAM

 

 

	BY AND BETWEEN:	RedHill Biopharma Ltd., with principle place of business at 21 Ha’arba’a St. Tel-Aviv 64739, Israel
	 	(herein referred to as the “Client”),
	 	 
	AND:	7810962 Canada Inc (doing Business under the name “InSymbiosis”), a body politic and corporate, duly incorporated according to the laws of Canada and with principle place of business at 245 Victoria Ave, Suite 100, Montreal, Quebec, H3Z 2M6, Canada,
	 	(herein referred to as the “Provider”),

 

The Client and the Provider are in this
Agreement sometimes individually referred to as “Party” and collectively as the “Parties”.

 

WHEREAS on 28
April 2011, the Client and the Provider entered into a Master Service Agreement in relation to the Client’s RHB-104
program (the “MSA”);

 

WHEREAS the
Parties wish to confirm the extension of the scope of the MSA to certain other R&D programs of the Client; and

 

WHEREAS the
Parties have agreed to certain terms and conditions, the whole as is fully set forth below. 

 

NOW, THEREFORE, THE PARTIES HERETO AGREE
AS FOLLOWS:

 

1.                   Unless specifically set out otherwise
in this agreement (the “AMENDMENT AGREEMENT”), the terms of the MSA shall continue to apply.

 

7810962 Canada Inc

 

    	13

    	 

    

 

2.                    Throughout the MSA, the term “RHB-104
Program” is replaced by “RHB R&D Programs” and “RHB R&D Program” shall mean any R&D program
of the Client for which the Client and the Provider have or, in the future, will agree to collaborate.

 

3.
                   A list of the programs on which the Parties currently collaborate and on which, for the avoidance of doubt, the terms of the
MSA apply as from the date on which for each of these programs agreements have been entered into between the Client and the Provider,
is attached as Appendix 1 to this Amendment Agreement.

 

4.                   Upon entering into a collaboration
for any future program, Appendix 1 to this Amendment Agreement will be further updated.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Amendment Agreement as of the date first herein above mentioned.

 

	 	 	REDHILL BIOPHARMA Ltd.
	 	 	 
	/s/ Dror Ben-Asher	 	/s/ Ori Shilo
	Per:	Dror Ben-Asher	 	Per:	Ori Shilo
	Title:	CEO	 	Title:	VP Finance and Operation
	Date:	 	 	Date:	 
	 	 	 
	 	 	PARTY OF THE FIRST PART
	 	 	 
	 	 	7810962 Canada Inc.

 

	/s/ Alain Guimond	 
	Per:	Alain Guimond	 
	Title:	Senior Director of Research	 
	Date:	 	 

 

	 	PARTY OF THE SECOND PART

 

7810962 Canada Inc

 

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APPENDIX 2

 

List of RedHill Programs in development in collaboration with
InSymbiosis and Services Provided through the use of Third Party Providers:

 

		1.	RHB-102

 

		1.1.	[****]:

		·	Status: Executed on November 2nd 2011

 

		2.	RHB-104

 

		2.1.	Research and Tech transfer, manufacturing and supply agreement for RHB-104 (Uman Agreement):

		·	Status: Executed on April 28th 2011

 

		2.2.	Technical transfer of the RHB-104 capsule formulation to UMAN Pharma (Corealis Agreement):

		·	Status: Executed on September 8th 2011

 

		2.3.	Clinical Service Agreement for [****] studies of RHB-104 in Patients with MAP infected Crohn’s
disease (Pharmanet Agreement):

		·	Status: Executed on June 15th 2011

 

		2.4.	Clinical Service Agreement for a [****] study of RHB-104 in [****] with MAP infected Crohn’s
disease (Pharmanet Agreement):

		·	Status: Executed on March 27th 2012

 

		3.	RHB-105

 

		3.1.	Formulation development of RHB-105 in oral solid dosage form and manufacture of Phase III Clinical
Trial Supplies (Corealis Agreement):

		·	Status: Executed on July 5th 2011

 

		4.	RHB-106

 

		4.1.	Services Agreement for Biostatistical Consulting for both RHB-104 [****] clinical trial and RHB-106 clinical trial.

		·	Status: Executed on June 5th 2012

 

7810962 Canada Inc

 

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