Document:

Unassociated Document

 

EXHIBIT 4.5

 

Employment Agreement

This Employment Agreement (this “Agreement”) is entered into on this 24 day of May, 2009 by and between BioLineRx Ltd., a company organized under the laws of the State of Israel, with its offices at 19 Hartum Street, P.O. Box 45158, Jerusalem 91450, Israel (“BioLine”), and Phillip Serlin, I.D. Number 310550157 with an address at 11 Hachazav Street, Bet Shemesh (the “Employee”).

 

WHEREAS, BioLine desires to employ the Employee and the Employee desires to enter into such employment, on the terms and conditions hereinafter set forth.

 

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

 

	
1.

	
Employment.

 

	 	
1.1.

	
The Employee shall serve in the position described in Exhibit A commencing on May 24, 2009 (the “Commencement Date”). The Employee shall be under the direct supervision of and comply with the directives of the CEO of BioLine and/or any such individual designated by BioLine at its sole discretion (the “Supervisor”). The Employee shall perform the duties, undertake the responsibilities and exerciese the authority as determined from time to time by the Superviser diligently, conscientiously and in furtherance of BioLine’s best interests. Employee’s duties and responsibilities hereunder may also include other services performed for affiliates of BioLine.

 

	 	
1.2.

	
During the Employment Period, Employee shall honestly, diligently, skillfully and faithfully serve BioLine, and undertakes to devote all of Employee’s efforts and the best of his/her qualifications and skills to promoting the business and affairs of BioLine, and shall at all times act in a manner suitable of his position and status in BioLine.

 

	 	
1.3.

	
The Employee agrees and undertakes to inform BioLine, immediately after becoming aware of any matter that may in any way raise a conflict of interest between Employee and BioLine. Employee shall not receive during any payment, compensation or benefit from any third party in connection, directly or indirectly, with the execution of Employee’s position in BioLine.

 

	 	
1.4.

	
Employee will be employed on a full time basis. Employee shall not undertake or accept any other paid or unpaid employment or occupation or engage in any other business activity except with the prior written consent of BioLine, which shall not be unreasonably withheld.

 

	 	
1.5.

	
Employee hereby confirms and declares that his/her position is one that requires a special measure of personal trust and loyalty. Accordingly, the provisions of the Hours of Work and Rest Law-1951 shall not apply to Employee, and Employee shall not be entitled to any compensation for working more than the maximum number of hours per week set forth in said law or any other applicable law.

 

	 	
1.6.

	
The Employee may also work outside of regular working hours and outside of regular working days, as may be required by BioLine from time to time. The Employee must obtain Supervisor’s prior approval for work in excess of the quota of overtime work hours per month set forth in Section 6 below and notify BioLine in the event that this average quota is exceeded.

 

	  	 	  
	
BioLine

	 	
Employee

  

1

  

	 	
1.7.

	
The parties hereby confirm that this is a personal services agreement and that the relationship between the parties hereto shall not be subject to any general or special collective employment agreement or any custom or practice of BioLine with respect to any of its other employees or contractors.

 

	
2.

	
Place of Performance. Employee shall be based at BioLine’s facilities in Israel or at such other place as is otherwise appropriate to the functions being performed by BioLine. Employee acknowledges and agrees that his/her position may involve significant domestic and international travel.

 

	
3.

	
Employee’s Representations and Warranties. Employee represents and warrants that the execution and delivery of this Agreement and the fulfillment of all its terms: (i) will not constitute a default under or conflict with any agreement or other instrument to which Employee is a party or by which Employee is bound; and (ii) do not require the consent of any person or entity. Further, with respect to any past engagement Employee may have had with third parties and with respect to any allowed engagement Employee may have with any third party during the term of his/her engagement with BioLine (for purposes hereof, such third parties shall be referred to as “Other Employers”), Employee represents, warrants and undertakes that: (a) Employee’s engagement with BioLine is and/or will not be in breach of Employee’s undertakings towards Other Employers, and (b) Employee will not disclose to BioLine, or use, in provision of any services to BioLine, any proprietary or confidential information belonging to any Other Employers. Employee further represents and warrants that: (y) he/she does not suffer from any medical condition that may prevent from complying with duties and obligations under this Agreement; (z) to Employee’s best knowledge, the employment by BioLine will not cause any hazard to Employee’s health.

 

	
4.

	
Proprietary Information; Confidentiality and Non-Competition. The Employee is obligated to keep all the terms and covenants of this Agreement under strict confidentiality. By executing this Agreement Employee confirms and agrees to the provisions of BioLine’s Proprietary Information, Confidentiality and Non-Competition Agreement attached as Exhibit B hereto. Employee acknowledges and confirms that all terms of his/her employment are personal and confidential, and undertakes to keep such term in confidence and refrain from disclosing such terms to any third party.

 

	
5.

	
Period of Employment. Employee’s employment by BioLine commence on the Commencement Date and shall continue for an initial period of three (3) months (the “Initial Period”) and shall then continue, unless terminated in accordance with the provisions of this Agreement (the “Employment Period”).

 

	 	
5.1.

	
Death or Disability.  The Employee’s employment will terminate upon the death of the Employee, and BioLine may terminate the Employee’s employment after having established the Employee’s disability.  For purposes of this Agreement, “disability” means a physical or mental infirmity which impairs the Employee’s ability to substantially perform Employee’s duties under this Agreement which continues for a period of at least ninety (90) consecutive days.  Upon termination for disability, the Employee shall be entitled to severance pay required by law, in accordance with the terms of this Agreement.

 

	 	
5.2.

	
Termination at Will. Either party may terminate the employment relationship hereunder at any time by giving the other party prior written notice as set forth in Exhibit A (the “Notice Period”).

 

	  	 	  
	
BioLine

	 	
Employee

 

  

2

  

	 	
5.3.

	
Termination for Cause. In the event of a termination for Cause (as defined below), BioLine may immediately terminate the employment relationship effective as of the time of notice of the same, and without payment in lieu of prior notice. “Cause” means (i) a serious breach of trust including but not limited to theft, embezzlement, self-dealing, prohibited disclosure to unauthorized persons or entities of confidential or proprietary information of or relating to BioLine or its affiliates, and the engaging by Employee in any prohibited business competitive to the business of BioLine; (ii) any willful failure to perform or failure to perform competently any of Employee’s fundamental functions or duties hereunder, which was not cured within thirty (30) days after receipt by Employee of written notice thereof; (iii) any breach of this Agreement by the Employee; and (iv) any other cause justifying termination or dismissal without severance payment under applicable law.

 

	 	
5.4.

	
Notice Period; End of Relations. During the Notice Period, the employment relationship hereunder shall remain in full force and effect and there shall be no change in Employee’s position with BioLine, the Salary, or in any other obligations of either party hereunder, unless otherwise determined by BioLine in a written notice to Employee, and Employee shall cooperate with BioLine and assist BioLine with the integration into BioLine of the person who will assume Employee’s responsibilities. At the option of BioLine, the Employee shall during such period either continue with Employee’s duties or remain absent from BioLine’s premises. However, BioLine, at its own discretion, may terminate this Agreement and the employment relationship at any time immediately upon a written notice and pay Employee an amount equal to the Salary referred to in Section 6 below that would have been paid to Employee during the Notice Period in lieu of the prior notice.

 

	 	
5.5.

	
Without derogating from all of BioLine’s rights according to the provisions of this Agreement and the law, upon the termination of this Agreement, BioLine shall have the right to deduct from any payment to be paid to the Employee any sum owed by the Employee to BioLine.

 

	
6.

	
Salary.

 

	 	
6.1.

	
BioLine shall pay or cause to be paid to the Employee during the term of this Agreement a gross salary in the amount set forth in Exhibit A per month (the “Base Salary”). Since the nature of the work precludes supervision of the Employee’s work hours and due to BioLine’s anticipation that the Employee may be required to work outside of regular working hours and outside of regular working days as stated in Section 1.5 above, BioLine agrees to pay to the Employee during the term of this Agreement a gross payment in the amount set forth in Exhibit A per month (the “Overtime Payment”) on account of forty five (45) global overtime work hours per month.  The Base Salary and the Overtime Payment together shall constitute the “Salary” for purposes of this Agreement.

 

	 	
6.2.

	
The Salary will be paid no later then the 9th day of each calendar month after the month for which the Salary is paid, after deduction of any and all taxes and charges applicable to Employee, as may be in effect or which may hereafter be enacted or required by law. Employee shall notify BioLine of any change which may affect Employee’s tax liability.

 

	
7.

	
Insurance and Social Benefits.

 

The Employee shall be entitled to the following benefits:

 

	 	
7.1.

	
Manager’s insurance; Pension Fund. At the end of the Initial Period, and subject to the continued employment of Employee following the Initial Period, BioLine will insure Employee, retroactive to the Commencement Date, under a “Manager’s Insurance Scheme” or pension fund to be selected by BioLine in coordination with Employee (unless otherwise agreed to by the parties) (collectively the “Policy”), such that BioLine will pay an amount equal to 131⁄3% of the Salary towards a such Policy, of which 5% shall be for pension fund payments and 81⁄3% shall serve to cover severance compensation. In addition, BioLine shall deduct from the Salary an amount equal to 5% of the Salary, and forward the same to the Policy. Any tax payable in respect of such contributions to the Policy shall be borne and paid by the Employee.

 

	  	 	  
	
BioLine

	 	
Employee

 

  

3

  

	 	
7.2.

	
The Employee hereby agrees and acknowledges that all of the payments that BioLine shall make to the abovementioned Policy shall be instead of any severance pay to which the Employee or Employee’s successors shall be entitled to receive from BioLine with respect to the salary from which these payments were made and the period during which they were made, in accordance with Section 14 of the Severance Pay Law 5723-1963 (the “Law”). The parties hereby adopt the General Approval of the Minister of Labor and Welfare, published in the Official Publications Gazette No. 4659 on June 30, 1998, attached hereto as Exhibit C. BioLine hereby waives in advance any claim it has or may have to be refunded any of the payments made to the manager’s insurance policy, unless (i) the Employee’s right to severance pay is invalidated by a court ruling on the basis of Sections 16 or 17 of the Law (and in such case only to the extent it is invalidated), or (ii) the Employee withdrew funds from the manager’s insurance policy for reasons other than an “Entitling Event”. An “Entitling Event” means death, disability or retirement at the age of sixty (60) or more.

 

	 	
7.3.

	
Disability Insurance. In addition to the foregoing, during the Employment Period BioLine will bear the cost of disability insurance with an insurance company (Ovdan Kosher Avoda). The amount paid by BioLine for such insurance shall be as generally accepted, but shall not exceed 2.5% of the Salary.

 

	 	
7.4.

	
Advanced Study Fund. At the end of the Initial Period, and subject to the continued employment of Employee following the Initial Period, BioLine will maintain an advanced study fund (Keren Hishtalmut) recognized by the Israeli Income Tax Authorities, retroactive to the Commencement Date, such that BioLine and Employee shall contribute to such fund an amount equal to 7.5% of the Salary and 2.5% of the Salary, respectively. Any tax payable in respect of such contributions to such fund shall be borne and paid by the Employee.

 

	 	
7.5.

	
Convalescence. During the Employment Period, Employee shall be entitled to receive convalescence allowance (Dmei Havra’a) pursuant to applicable law.

 

	 	
7.6.

	
Sick Leave. The Employee shall be entitled to be absent from work each year due to illness for the number of days allowed pursuant to the Sick Pay Law 5736 - 1976, and shall be entitled to fully paid sick leave upon presentation of appropriate medical documentation regarding said illness. Any amounts paid to the Employee on account of the disability insurance indicated in subsection 7.3 above, will be on account of Sick Leave payment.

 

	 	
7.7.

	
Reserve Service. During the Employment Period, BioLine shall pay the full salary of the Employee during the period of the Employee’s military reserve service. National Insurance Institute transfers in connection with such military reserved duty shall be retained by BioLine.

 

	 	
7.8.

	
Vacation. During the Employment Period, Employee shall be entitled to vacation in the number of working days per year as set forth in Exhibit A, as adjusted in accordance with applicable law.  A “working day” shall mean Sunday to Thursday inclusive, and the use of said vacation days will be coordinated with BioLine. Employee shall be entitled to accumulation and redemption of vacation days in accordance with BioLine’s employees’ handbook, which may be amended from time to time in BioLine’s sole discretion.

 

	  	 	  
	
BioLine

	 	
Employee

 

  

4

  

	 	
7.9.

	
Mobile Phone. During the Employment Period, the Employee shall be entitled to receive a mobile phone. Employee shall use the mobile phone in a standard and reasonable manner, and in accordance with BioLine’s policies.

 

	 	
7.10.

	
Automobile. For purposes of performance of Employee’s duties and tasks, and during the Employment Period, BioLine shall make available to Employee a company vehicle, leased or owned by BioLine of a type to be elected by BioLine, in accordance with its policies which may be amended from time to time (the “Company Car”). Employee shall use the Company Car in accordance with BioLine’s car policy then in effect, as well as the requirements of the leasing company and the insurance company. BioLine shall bear the cost of maintenance and repairs, and any insurance deductibles for the Company Car, in accordance with its policies and the Car Agreement which will be signed between Employee and BioLine. Employee shall be liable for paying for fuel, as well as any parking and/or traffic fines received in connection herewith, and for any damages and expenses in case of negligent use of the Company Car and/or use of the Company Car not in accordance with BioLine’s applicable policies. All taxes arising out of the use of the Company Car shall be borne by Employee, and Employee acknowledges that such taxes will be withheld from Employee’s salary as required by law.  Employee further acknowledges that the tax treatment of the benefit through use of the Company Car is subject to change, and any economic impact resulting from such changes will be in Employee’s sole responsibility .For the avoidance of doubt, Employee agrees and confirms that the cost of the leasing and/or the cost of the use of the Company Car shall not constitute a component of Employee’s Salary, including with regard to social benefits and/or any other right to which Employee is entitled by virtue of this Agreement or under law. The Employee shall be required to follow rules and regulations as to the usage of the Company Car as described in the “Company Car Lease Agreement” or “Car Addendum” provided to the Employee prior to receipt of the Company Car. The Company Car will remain in BioLine’s ownership, and will be returned to BioLine immediately upon termination of Employee’s employment with BioLine for any reason, as of the date of termination. The Employee shall not be entitled to use a Company Car during unpaid leaves or absences, unless specifically approved by BioLine in writing.

 

7.11.

 

Notwithstanding anything to the contrary herein, all payments and contributions of BioLine under this Agreement shall be limited to the applicable deductible amount required by the tax authorities.

 

	
8.

	
BioLine Property. Employee acknowledges and agrees that the computer, telephone, email account and any other device providing for transmittal and storage of information, which are placed at Employee’s disposal by BioLine during the Employment Period are and shall remain the property of BioLine. Employee confirms its understanding that BioLine regularly reviews email correspondence and other information transmitted and stored by using the equipment stated above, and Bioline reserves the right to copy, store, present to others, and use such information.

 

	
9.

	
Expenses. Employee shall be reimbursed for all direct business expenses borne by Employee, in accordance with BioLine’s policies as determined by BioLine from time to time, provided that such expenses were approved by Employee’s Superior in advance. As a condition to reimbursement, Emploee shall be required to provide BioLine with all invoices, receipts and other evidence of expenditure as may be reasonably required by BioLine from time to time.

 

	
10.

	
Options. Subject to the approval of the BioLine Board of Directors, Employee shall be granted options to purchase Ordinary Shares par value NIS 0.01 each of BioLine, in the amount set forth in Exhibit A, to be granted pursuant to, and in accordance with, the terms and conditions of the share option plan adopted by BioLine (the “Options”).

 

	  	 	  
	
BioLine

	 	
Employee

 

  

5

  

	
11.

	
General.

 

	 	
11.1.

	
The laws of the State of Israel shall apply to this Agreement and the sole and exclusive place of jurisdiction in any matter arising out of or in connection with this Agreement shall be the Jerusalem Regional Labor Court. The provisions of this Agreement are in lieu of the provisions of any collective bargaining agreement, and therefore, no collective bargaining agreement shall apply with respect to the relationship between the parties hereto (subject to the applicable provisions of law).

 

	 	
11.2.

	
This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements with respect thereto. This Agreement may not be modified except by written instrument signed by a duly authorized representative of each party hereto. No failure, delay of forbearance of either party in exercising any power or right hereunder shall in any way restrict or diminish such party’s rights and powers under this Agreement, or operate as a waiver of any breach or nonperformance by either party of any terms of conditions hereof. In the event that it shall be determined under any applicable law that a certain provision set forth in this Agreement is invalid or unenforceable, such determination shall not affect the remaining provisions of this Agreement.

 

	 	
11.3.

	
This Agreement may be assigned by BioLine. Employee may not assign or delegate his/her duties under this Agreement without the prior written consent of BioLine. This agreement shall be binding upon the heirs, successors and permitted assignees of Employee. The provisions of this Agreement shall survive the termination of the Employment Period and the assignment of this Agreement by BioLine to any successor or other assignee.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

 

	
/s/ Morris Laster

	  	
/s/ Philip Serlin

	
BioLineRx Ltd.

	  	
Employee

	By: MORRIS LASTER	  	  
	
Title: CEO

	  	Name: PHILIP SERLIN

 

	  	 	  
	
BioLine

	 	
Employee

 

  

6

  

Exhibit A

Particulars of Employment

	
1.

	
Name of Employee:

	
Philip Serlin

	  	  	  
	
2.

	
ID No. of Employee:

	
310550157

	  	  	  
	
3.

	
Address of Employee:

	
11 Hachazav Street, Bet Shemesh

	  	  	  
	
4.

	
Position in BioLine:

	
Chief Financial Officer

	  	  	  
	
5.

	
Commencement Date:

	
May 24, 2009

	  	  	  
	
6.

	
Notice Period:

	
60 days

	  	  	  
	
7.

	
Base Salary:

	
NIS 31,500

	  	  	  
	
8.

	
Overtime Payment:

	
NIS 10,500

	  	  	  
	
9.

	
Car Maintenance Expenses

	
NIS 4,097

	  	  	  
	
10.

	
Vacation Days Per Year:

	
21 days

	  	  	  
	
11.

	
Options

	
130,000 Options

 

	  	 	  
	
BioLine

	 	
Employee

 

  

7

  

Exhibit B

Proprietary Information, Confidentiality and Non-Competition Agreement

	
1.

	
General.

 

	 	
1.1.

	
All capitalized terms herein shall have the meanings ascribed to them in the Employment Agreement to which this Exhibit B is attached (the “Employment Agreement”). For purposes of any undertaking of the Employee toward BioLine, the term BioLine shall include all subsidiaries and affiliates of BioLine including its General and Limited Partners

 

	 	
1.2.

	
The Employee’s obligations and representations and BioLine’s rights under this Exhibit B (this “Agreement”) shall apply as of the Commencement Date of the employment relationship between BioLine and the Employee, and as of the first time in which Employee became engaged with BioLine, regardless of the date of execution of the Employment Agreement.

 

	 	
1.3.

	
Employees undertakings hereunder shall remain in full force and effect after termination of this Agreement or the Employment Agreement, or any renewal thereof.

 

	
2.

	
Employee acknowledges that he/she has received and/or may receive information of a confidential and proprietary nature regarding the activities and business of BioLine, its parent companies, subsidiaries and/or affiliates, all whether in oral, written, graphic, or machine-readable form, or in any other form, including, but not limited to, (i) patents and patent applications and related information, (ii) trade secrets and industrial secrets, and (iii) drugs, compounds, molecules, building blocks, chemical libraries, reaction protocols for chemical libraries, chemical structures, chemical design and model relationship data, chemical databases, assays, samples, media and other biological materials, procedures and formulations for producing any such materials, products, processes, ideas, know-how, trade secrets, drawings, inventions, improvements, formulas, equations, methods, developmental or experimental work, research or clinical data, discoveries, developments, designs, techniques, instruments, devices, computer software and hardware related to the current, future and/or proposed products and services, and including, without limitation, information regarding research, development, new service offerings or products, marketing and selling, business plans, forecasts, business methods, budgets, finances, licensing, collaboration and development arrangements, prices and costs, buying habits and practices, contact and mailing lists and databases, vendors, customers and clients, and potential business opportunities, and personnel (collectively, “Confidential Information”). Confidential Information may also include information furnished to BioLine by third parties, which, for purposes of this Agreement, shall all be deemed Confidential Information of BioLine. Notwithstanding the aforesaid, information that is in the public domain, through no act or omission of the Employee shall not be deemed Confidential Information. The Confidential Information and all right, title and interest therein will remain at all times the exclusive property of BioLine (or any third party entrusting its own Confidential Information to BioLine).

 

	
3.

	
At all times during the Employment Period and thereafter, Employee will hold all Confidential Information in strictest confidence and will not disclose, use, or make any copies thereof. Employee hereby assigns to BioLine any rights that the Employee may have or acquire in such Confidential Information and recognize that all Confidential Information shall be the sole property of BioLine and its assigns or licensors, as applicable.

 

	  	 	  
	
BioLine

	 	
Employee

 

  

8

  

	
4.

	
Employee represents that he/she has assigned to BioLine all inventions, original works of authorship, developments, improvements, and trade secrets which were conceived, developed, made or reduced to practice by Employee prior to the date of the this Agreement or the Commencement Date, whichever is earlier (collectively referred to as “Prior Inventions”), in which Employee has or purports to have any ownership interest in or a license to use, and which relate to BioLine’s current or proposed business, products or research and development.

 

	
5.

	
Employee will promptly disclose and describe to BioLine all inventions, improvements, designs, concepts, techniques, methods, processes, know how, and trade secrets, whether or not patentable, copyrightable or protectible as trade secrets that are made, developed, conceived or first reduced to practice or created by Employee, whether alone or jointly with others, during the provision of Consulting Services (i) which relate to BioLine’s business or actual or demonstrably anticipated research or development, (ii) which are developed in whole or in part on BioLine’s time or with the use of any of BioLine’s Confidential Information or other information, equipment, supplies, facilities or trade secret information, or (iii) which result directly or indirectly from any work performed by Employee for BioLine (the “Inventions”, and each an “Invention”).

 

	
6.

	
Employee hereby assigns and agrees to assign in the future (when any such Inventions or Proprietary Rights (defined below) are first reduced to practice or first fixed in a tangible medium, as applicable) to BioLine or its designee(s) all of Employee’s right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable or registrable under copyright or similar statutes. Employee further specifically assigns to BioLine all original works of authorship, including any related moral rights, which are made by the Employee (solely or jointly with others) during the Employment Period which are protectable by copyright pursuant to applicable copyright law. Employee also agrees to assign all of his/her right, title and interest in and to any particular Invention to any third party, including without limitation government agency, as directed by BioLine.

 

The term “Proprietary Rights” shall mean: (i) patents, whether in the form of utility patents or design patents and all pending applications for such patents; (ii) trademarks, trade names, service marks, designs, logos, trade dress, and trade styles, whether or not registered, and all pending applications for registration of the same; (iii) copyrights or copyrightable material, including moral rights, including but not limited to books, articles and publications, whether or not registered, and all pending applications for registration of the same; and (iv) all other intellectual property rights throughout the world.

 

	
7.

	
Employee will assist BioLine in every proper way to obtain, and from time to time enforce, any Proprietary Rights relating to any Inventions in any and all countries.  To that end Employee will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as BioLine may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof.  In addition, Employee will execute, verify and deliver assignments of such Proprietary Rights to BioLine or its designee.  Employee’s obligation to assist BioLine with respect to Proprietary Rights relating to any such Inventions in any and all countries shall continue indefinitely beyond termination of the Employment Period for any reason (the “Termination Date”), but BioLine shall compensate Employee at a reasonable rate after the Termination Date for the time actually spent by Employee at BioLine’s request on such assistance.

 

	  	 	  
	
BioLine

	 	
Employee

 

  

9

  

	
8.

	
In the event that BioLine is unable for any reason, after reasonable effort, to secure Employee’s signature on any document needed in connection with the actions specified in the preceding paragraph, Employee hereby irrevocably designates and appoints BioLine and its duly authorized officers and agents as Employee’s agent and attorney in fact, which appointment is coupled with an interest, to act for and in Employee’s behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by the Employee.  Employee hereby waives and holds BioLine harmless from any and all claims, of any nature whatsoever, which Employee now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to BioLine.

 

	
9.

	
Employee agrees to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by BioLine) of all Confidential Information developed by the Employee and all Inventions made by the Employee during the Employment Period to BioLine, which records shall be available to and remain the sole property of BioLine at all times.

 

	
10.

	
During the Employment Period, Employee will not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom Employee has an obligation of confidentiality, and Employee will not bring onto the premises of BioLine any unpublished documents or any property belonging to any former employer or any other person to whom Employee has an obligation of confidentiality unless consented to in writing by that former employer or person.

 

	
11.

	
Upon the earlier of (i) a written request by BioLine; or (ii) the expiration or termination of the employment, Employee shall promptly return to BioLine all Confidential Information, together with any and all copies or excerpts thereof and any and all other information directly or indirectly derived therefrom. Return or destruction of the Confidential Information as required hereunder shall not affect Employee’s remaining obligations pursuant to this Agreement.

 

	
12.

	
Non Competition; Non Solicitation.

 

	 	
12.1.

	
In consideration of Employee’s terms of employment, which include special compensation for Employee’s undertakings under this Section 12, and in order to enable BioLine to effectively protect its Proprietary Information, Employee undertakes that during the Employment Period and for a period of twelve (12) months from the Termination Date, Employee will not directly or indirectly: (i) carry on or hold an interest in any company, venture, entity or other business (other than a minority interest in a publicly traded company) which directly competes with the products or services of BioLine, (a “Competing Business”) (including, without limitation, as a shareholder); (ii) act as a consultant or employee or officer or in any managerial capacity in a Competing Business, or supply in direct competition with BioLine services to any person who, to Employee’s knowledge, was provided with services by BioLine any time during the twelve (12) months immediately prior to the Termination Date; (iii) solicit, canvass or approach or endeavor to solicit, canvass or approach any person who, to Employee’s knowledge, was provided with services by BioLine at any time during the twelve (12) months immediately prior to the Termination Date, for the purpose of offering services or products which directly compete with the services or products supplied by BioLine at the Termination Date; or (iv) employ, solicit or entice away or endeavor to solicit or entice away from BioLine any person employed by BioLine any time during the twelve (12) months immediately prior the Termination Date with a view to inducing that person to leave such employment and to act for another employer in the same or a similar capacity.

 

	  	 	  
	
BioLine

	 	
Employee

 

  

10

  

	 	
12.2.

	
Insofar as the protective covenants set forth in this Agreement are concerned, Employee specifically acknowledges, stipulates and agrees as follows: (i) the protective covenants are reasonable and necessary to protect the goodwill, property and Proprietary Information of BioLine, and the operations and business of BioLine; and (ii) the time duration of the protective covenants is reasonable and necessary to protect the goodwill and the operations and business of BioLine, and does not impose a greater restrain than is necessary to protect the goodwill or other business interests of BioLine. Nevertheless, if any of the restrictions set forth in this Agreement is found by a court having jurisdiction to be unreasonable or overly-broad as to geographic area, scope or time or to be otherwise unenforceable, the parties intend for the restrictions set forth in this Agreement to be reformed, modified and redefined by such court so as to be reasonable and enforceable and, as so modified by such court, to be fully enforced.

 

	
13.

	
Employee represents that Employee’s performance of all the terms of the Employment Agreement and this Agreement does not and will not breach any agreement to keep in confidence information acquired by Employee in confidence or in trust prior to Employee’s relationship with BioLine. Employee has not entered into, and agrees that he/she will not enter into, any agreement either written or oral in conflict herewith.

 

	
14.

	
Employee hereby consents that in the event that the Employee leaves the employ of BioLine. Employee shall notify any new employer of Employee’s rights and obligations under this Agreement.

 

	
15.

	
Employee acknowledges that any violation or threatened violation of this Agreement may cause irreparable injury to BioLine, entitling BioLine to seek injunctive relief in addition to all other legal remedies.

 

	
16.

	
Employee recognizes and agrees that: (i) this Agreement is necessary and essential to protect the business of BioLine and to realize and derive all the benefits, rights and expectations of conducting BioLine’s business; (ii) the area and duration of the protective covenants contained herein are in all things reasonable; and (iii) good and valuable consideration exists under the Employment Agreement, for Employee’s agreement to be bound by the provisions of this Agreement.

 

	
17.

	
The General terms of the Employment Agreement (Section 11) shall apply to this Agreement, mutatis mutandis.

 

	
18.

	
EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS READ THIS AGREEMENT CAREFULLY, UNDERSTANDS ITS TERMS, AND HAS BEEN GIVEN THE OPPORTUNITY TO DISCUSS IT WITH INDEPENDENT LEGAL COUNSEL.

 

	  	 	  
	
BioLine

	 	
Employee

 

  

11

  

TRANSLATION FROM HEBREW

 

Exhibit C

General Approval Regarding Payments by Employers to a Pension Fund and Insurance

Fund in lieu of Severance Pay under the Severance Pay Law 5723-1963

By virtue of my power under Section 14 of the Severance Pay Law, 5723-1963 (hereinafter: the “Law”), I certify that payments made by an employer commencing from the date of the publication of this approval for the sake of his employee to a comprehensive pension provident fund that is not an insurance fund within the meaning set forth in the Income Tax Regulations (Rules for the Approval and Conduct of Provident Funds), 5724-1964 (hereinafter: the “Pension Fund”) or to managers’ insurance which includes the possibility to receive annuity payments under an insurance fund as aforesaid, (hereinafter: the “Insurance Fund”), including payments made by the employer by a combination of payments to a Pension Fund and an Insurance Fund (hereinafter: “Employer’s Payments”), shall be made in lieu of severance pay due to said employee with respect to the salary from which said payments were made and for the period they were paid (hereinafter: the “Exempt Salary”), provided that all the following conditions are fulfilled:

 

(1)   The Employer’s Payments –

 

(a)   to the Pension Fund are not less than 141⁄3% of the Exempt Salary or 12% of the Exempt Salary if the employer pays, for the sake of his employee, in addition thereto, payments to supplement severance pay to a  severance pay provident fund or to an Insurance Fund in the employee’s name, in the amount of 21⁄3% of the Exempt Salary.  In the event that the employer has not paid the above mentioned 21⁄3% in addition to said 12%, his payments shall come  in lieu of only 72% of the employee’s severance pay;

 

(b)   to the Insurance Fund are not less than one of the following:

 

(i)   131⁄3% of the Exempt Salary, provided that, in addition thereto, the employer pays, for the sake of his employee, payments to secure monthly income in the event of disability, in a plan approved by the Commissioner of the Capital Market, Insurance and Savings Department of the Ministry of Finance, in an amount equivalent to the  lower of either an amount  required to secure at least 75% of the Exempt Salary or in an amount of 21⁄2% of the Exempt Salary (hereinafter: “Disability Insurance Payment”);

 

(ii)   11% of the Exempt Salary, if the employer paid, in addition, the Disability Insurance Payment; and in such case, the Employer’s Payments shall come in lieu of only 72% of the employee’s severance pay. In the event that the employer has made payments in the employee’s name, in addition to the foregoing payments, to a severance pay provident fund or to an Insurance Fund in the employee’s name, to supplement severance pay in an amount of 21⁄3% of the Exempt Salary, the Employer’s Payments shall come in lieu of 100% of the employee’s severance pay.

 

(2)   No later than three months from the commencement of the Employer’s Payment, a written agreement was executed between the employer and the employee, which includes:

 

(a)   the employee’s consent to an arrangement pursuant to this approval, in an agreement  specifying the Employer’s Payments, the Pension Fund and the Insurance Fund, as the case may be; said agreement shall also incorporate the text of this approval;

 

(b)   an advance waiver by the employer of any right which he may have to a refund of monies from his payments, except in cases in which the employee’s right to severance pay was denied by a final judgment pursuant to Section 17 of the Law, and in such a case or in cases in which the employee withdrew monies from the Pension Fund or Insurance Fund, other than by reason of an entitling event; for these purposes an “Entitling Event” means death, disability or retirement at or after the age of 60.

 

(3)   This approval shall not derogate from the employee’s right to severance pay pursuant to any law, collective agreement, extension order or employment agreement with respect to compensation in excess of the Exempt Salary.

 

15th Sivan 5758 (June 9th, 1998).

 

	  	 	  
	
BioLine

	 	
Employee

 

  

12Unassociated Document

 

CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH

THE SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

EXHIBIT 4.6

 

LICENSE AGREEMENT

 

This License Agreement is entered into as of this 10th day of January, 2005 (the "Effective Date"), by and among BioLine Innovations Jerusalem L.P., an Israeli limited partnership, having a place of business at 19 Hartum Street, P.O. Box 45158, Jerusalem , 91450, Israel ("BioLine"); and B.G. Negev Technologies and Applications Ltd., a company formed under the laws of Israel, having a place of business at I Henrietta Szold St., Beer Sheva, 84105 ("BGN") on behalf of Ben Gurion University ("BGU").

 

WHEREAS, BGN is the owner of rights in the Licensed Technology (as hereinafter defined) relating to Injectible Alginate Biomaterials and the uses thereof; and

 

WHEREAS, BioLine wishes to obtain an exclusive license with respect to such Licensed Technology, in order to develop, obtain regulatory approval for and commercialize products based on the Licensed Technology, and BGN wishes to grant BioLinc a license with respect to such Licensed Technology, all in accordance with the terms and conditions of this Agreement.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1. Definitions

 

The capitalized terms defined in this Section 1, whether used in the singular or the plural, shall have the meanings specified below: "Additional Ingredient" shall mean any compound or substance which (i) is contained in a Licensed Product, and (ii) when administered to a patient has a therapeutic or prophylactic clinical effect, either directly or by acting synergistically with or otherwise enhancing the effect of other compounds or substances contained in such product.

 

"Affiliate" shall mean, with respect to a party, any person, organization or entity controlling, controlled by or under common control with, such party. For purposes of this definition only, "control" of another person , organization or entity shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the activities, management or policies of such person, organization or entity, whether through the ownership of voting securities, by contract or otherwise. Without limiting the foregoing, control shall be presumed to exist when a person, organization or entity (i) owns or directly controls fifty percent (50%) or more of the outstanding voting stock or other ownership interest of the other organization or entity, or (ii) possesses , directly or indirectly, the power to elect or appoint fifty percent (50%) or more of the members of the governing body of the organization or other entity.

  

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"BioLine Royalty Payments" shall mean payments payable by BioLine to BGN with respect to Net Sales of Products by an Invoicing Entity, as set forth in Section 7.5 below.

 

"Calendar Quarter" shall mean the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 or December 31, for so long as this Agreement is in effect.

 

"Combination Product" shall mean a product, substance or devise which comprises a Licensed Product and at least one other essential Additional Ingredient.

 

"Commercially Reasonable Efforts" shall mean (i) with respect to any objective by an entity, reasonable, diligent, good faith efforts to accomplish such objective as such entity (together with its Affiliates as a group) would normally use in the ordinary course of business and research to accomplish a similar objective under similar circumstances; and (ii) with respect to research, development and commercialization of any Licensed Product hereunder, shall mean those efforts and resources normally used by such entity (together with its Affiliates as a group) for a product owned by it or to which it has rights, which is of similar market potential at a similar stage in its development or product life as such Licensed Product.

 

"Current Invention" the invention disclosed in the patent application described in Exhibit A.

 

"Development Plan" shall mean the non-binding plan for the development of Licensed Products attached hereto as Exhibit B, as such plan may be amended from time to time pursuant to Section 6.2 below. The Development Plan shall include an estimated budget setting forth BioLine's anticipated development costs as of the date hereof. To avoid doubt, the Development Plan may be subject to change from time to time as determined by BioLine, in light of business, financial, scientific and/or technical considerations.

 

"FDA" shall mean the United States Food and Drug Administration and/or the corresponding licensing authorities in Europe, and/or Japan.

 

"Government Programs" shall mean the Biotech Incubators Program of the Office of the Chief Scientist of the Israeli Ministry of Industry and Trade, and any other funding programs sponsored by the Israeli or other governments.

 

"Grants" shall mean any funds or benefits received by BioLine from governmental, quasi-governmental or other non-profit sources for the development of the Licensed Technology or other benefits, including but not limited to grants provided within the context of Government Programs.

 

"License" shall mean the license granted pursuant to Section 2.

  

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"Licensed Patent Rights" shall mean the Patent Rights described in Exhibit C attached hereto. Exhibit C shall include and shall be updated from time to time to reflect inclusion of new Licensed Patent Rights.

 

"Licensed Product" shall mean any therapeutic product that comprises, contains or incorporates Licensed Technology as a component.

 

"Licensed Technology" shall mean the Current Invention and the Licensed Patent Rights; all improvements, updates, modifications and enhancements thereto made by BGN by the Effective Date (if any); and all inventions, know-how and other intellectual property owned or licensed by BGN and covered thereby or related thereto.

 

"Milestones" shall mean the milestones and performance dates for development and commercialization of Licensed Products set forth in Exhibit D. "NDA" shall mean an FDA New Drug Application or Product License Application (or Biologics License Application), as appropriate, and all supplements filed pursuant to the requirements of the FDA, including all documents, data and other information concerning Licensed Products that are necessary for or included in FDA approval to market a Licensed Product.

 

"Net Sales" shall mean the gross amount billed or invoiced by or on behalf of BioLine and/or its Affiliates (the "Invoicing Entity") on sales of Licensed Products, less the following: (a) customary trade, quantity, or cash discounts to the extent actually allowed and taken; (b) amounts repaid or credited by reason of rejection or return; (c) to the extent separately stated on purchase orders, invoices, or other documents of sale, any taxes or other governmental charges levied on the production, sale, transportation, import, export, delivery, or use of a Licensed Product which is paid by or on behalf of the Invoicing Entity; (d) outbound transportation, packing and delivery charges, as well as prepaid freight (including shipping insurance) actually incurred; and (e) payments to one or more third parties to obtain a Third Party License from such third party(ies) in order to practice the Licensed Technology; provided however, that:

 

(i) in any transfers of Licensed Products between the Invoicing Entity and an Affiliate of the Invoicing Entity, Net Sales shall be equal to the higher of. (x) the fair market value of the Licensed Products so transferred, assuming an arm's length transaction made in the ordinary course of business, and (y) the total amount invoiced by such Affiliate on resale to an independent third party purchaser, in each case, after deducting the amounts referred to in clauses (a) through (d) above, to the extent applicable;

 

(ii) In the event that the Invoicing Entity, or the Affiliate of the Invoicing Entity, receives non-monetary consideration for any Licensed Products or in the case of transactions not at arm's length with a non-Affiliate of the Invoicing Entity, Net Sales shall be calculated based on the fair market value of such consideration or transaction. assuming an arm's length transaction made in the ordinary course of business; and

  

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(iii) In the event a Licensed Product is sold by BioLine, an Affiliate of BioLine in the form of a Combination Product, Net Sales from such Combination Product, for purposes of determining BioLine Royalty Payments, shall be determined by multiplying the actual Net Sales of such Combination Product during the applicable royalty reporting period, by the fraction A/(A+B) where: A is the average sale price of the Licensed Product contained in the Combination Product when sold separately by BioLine or its Affiliate or its sublicense; and B is the average price of the other Additional Ingredients included in the Combination Product when sold separately by its supplier, in each case during the applicable royalty reporting period or if sales of both the Licensed Product and/or other Additional Ingredients did not occur in such period, then in the most recent royalty reporting period in which sales of both occurred. In the event that such average sale price cannot be determined for both the Licensed Product and all other Additional Ingredients included in the Combination Product, Net Sales for the purpose of determining BioLine Royalty Payments shall be calculated by multiplying the Net Sales of the Combination Products by the fraction of C/C+D where C is the fair market value of the Licensed Product and D is the fair market value of all other Additional Ingredients included in the Combination Product. In such event, the parties shall negotiate in good faith to arrive at a determination of the respective fair market values of the Licensed Product and all other Additional Ingredients included in the Combination Product.

 

"Patent Rights" shall mean any and all (a) patents, (b) pending patent applications, including, without limitation, all provisional applications, continuations, continuations-inpart, divisions, reissues, renewals, and all patents granted thereon, and (c) all patents-of addition, reissue patents, reexaminations and extensions or restorations by existing or future extension or restoration mechanisms, including, without limitation, supplementary protection certificates or the equivalent thereof.

 

"Regulatory Agency" shall mean the FDA or equivalent licensing agency or overnment body in Europe, and/or Japan.

 

"Sublicense Consideration" shall mean the actual cash income or other consideration forms actually received by BioLine in exercising its rights under the License, including, but not limited to, cash income and other consideration received for or  consequent to any sublicensing or co-marketing or co-promotion arrangement or permitted assignment of the License or any portion thereof to a third party of the rights under the License provided however, that "Sublicense Consideration" shall not include any amounts received by BioLine in respect of (i) Grants and (ii) Net Sales.

 

"Sublicensee" shall mean a person or entity to whom BioLine or its sublicensee grants a sublicense or co-marketing or co-promotion rights with respect to some or all of the rights granted to BioLine under Section 2.

 

"Third Party License" shall mean a license from an unaffiliated third party to one or more valid and enforceable patents issued in the United States or any other jurisdiction, the claims of which cover one or more components that is essential for the efficacy of the Licensed Product.

  

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2. License Grant

 

BGN hereby grants to BioLine an exclusive, worldwide, sublicensable license under BGN's rights in the Licensed Technology to research, have researched, develop, have developed, manufacture, have manufactured, use, market, distribute, offer for sale, sell, have sold, export and import Licensed Products and/or provide services relating thereto in accordance with the terms and conditions of this Agreement (the "License"). For purposes of this Section 2, the term "exclusive" means that BGN shall not have any right to grant such licenses or rights to any third party or engage in any of the foregoing. To avoid doubt, BGU will retain the right to use the Licensed Technology solely for noncommercial research purposes which do not, in BioLine's opinion, in any manner interfere with, impede, or place at risk BioLine's exclusive rights under the License.

 

3. Title.

 

3.1 Licensed Technology. Subject to the License granted to BioLine, all rights, title and interest in and to the Licensed Technology are and shall be owned solely and exclusively by BGN.

 

3.2 BioLine Inventions. As between the parties, BioLine shall own all inventions conceived, discovered or developed by BioLine or its subcontractors or Sub- Licensees in connection with activities under this Agreement, including without limitation all intellectual property rights therein, subject to BGN's rights in the Licensed Technology. Except as may be otherwise agreed in writing between the parties with respect to specific inventions, any inventions conceived jointly by BioLine or its subcontractors, on the one hand, and BGN or BGU, on the other hand, shall be jointly owned by BGN and BioLine and, during the term of this Agreement shall be exclusively licensed to BioLine on the terms set forth herein. Subsequent to termination of this Agreement, neither party will have any right to commercialize, utilize, exploit and/or license such jointly owned inventions without the express written permission of the other party, which will not be unreasonably withheld. The foregoing is subject to any restrictions or terms applying to Grants, which shall supercede these provisions.

 

3.3 Determination. All determinations of inventorship under this Agreement shall be made in accordance with United States patent law. In case of dispute between BGN and BioLine in respect of inventorship, a mutually acceptable independent patent counsel shall make the determination of the inventor(s) by applying the standards contained in United States patent law.

  

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4. Patent Filing, Prosecution and Maintenance.

 

4.1 Filing. BioLine shall have the first right to prepare, file, prosecute and maintain any patent applications and patents, in respect of the Licensed Technology and/or any part thereof, and at the BioLine's sole expense. BioLine shall provide BGN with copies of all patent applications and BGN undertakes to cooperate in a timely manner with the BioLine's efforts to register the patent, including by executing any documents as may be required for such purpose.

 

4.2 Consultation. BGN and BioLine shall consult each other regarding the preparation, filing and prosecution of all patent applications, and the maintenance of all patents, included within the Licensed Patent Rights, including, without limitation, the content, timing and jurisdiction of the filing of such patent applications and their prosecution, and other details and overall global strategy pertaining to the procurement and maintenance of the Licensed Patent Rights. All Licensed Patent Rights shall be filed, prosecuted and maintained by the parties through a law or patent attorney firm selected by BioLine, and subject to BGN's approval.

 

4.3 [***]

 

4.4. Abandonment. Should BioLine elect not to pursue the filing, prosecution or maintenance of a patent application in any country, on any invention or claim included in the Licensed Technology in any such country (an "Abandoned Country"), BioLine shall provide BGN and the parties' outside patent counsel with prompt written notice of such election. Upon written receipt of such notice by BGN, BioLine shall be released from any obligation with respect to such Abandoned Country in conjunction with such Patent Rights. [***]

 

4.5 No Warranty. Nothing contained herein shall be deemed to be a warranty by any of the parties that they can or will be able to obtain patents on patent applications included in the Licensed Patent Rights, or that any of the Licensed Patent Rights will afford adequate or commercially worthwhile protection.

 

 

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

 

  

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5. Sublicenses

 

5.1 Right to Grant Sublicenses. Subject to the terms and conditions of this Section 5 BioLine shall be entitled to grant sublicenses or other rights to third parties under the License. Such sublicenses shall be made for consideration and in arm's length transactions.

 

5.2 Sublicense Agreements. Sublicenses shall only be granted pursuant to written agreements, which shall be in compliance and not inconsistent with the terms and conditions of this Agreement.

 

5.2.1 BioLine shall inform BGN of any negotiations to grant a sublicense to a third party and provide BGN with the proposed form of sublicense agreement prior to its execution, for BGN's approval. BGN shall have the right to withhold its approval for any proposed sublicensing agreement solely to the extent that it reasonably determines that (a) the proposed sublicensing agreement does not comply in any substantive manner with the provisions of this Section 5; or (b) execution and performance of the proposed sublicense agreement will jeopardize or expose to non-prosecutable infringement BGN's proprietary rights in the Licensed Technology. In such case BGN shall provide written notice to BioLine within three business days of receipt of the proposed sublicense agreement, detailing the grounds for withholding its approval in accordance with this  Section 5.2.1.  In the event that BGN does not provide such a written notice within said three business days, it will be deemed for all purposes to have approved the proposed sublicense agreement.

 

5.2.2 Each such sublicense agreement shall contain inter alia, provisions necessary to ensure BioLine's ability to perform its obligations under this Agreement, including with respect to reporting requirements and audit rights.

 

5.2.3 In the event of termination of the License , any existing agreements that contain a sublicense of, or other grant of right with respect to, Licensed Technology shall terminate to the extent of such sublicense or other grant of right; provided, however, that, for each Sublicensee, upon termination of the sublicense agreement with such Sublicensee, if Sublicensee is not then in breach of such sublicense agreement with BioLine such that BioLine would have the right to terminate such sublicense, BGN shall be obligated, at the request of such Sublicensee, to enter into a new agreement with such Sublicensee on substantially the same terms as those contained in such sublicense agreement, and provided further that such terms shall be amended, if necessary, to the extent required to ensure that such sublicense agreement does not impose any obligations or liabilities on BGN which are not included in this Agreement.

 

5.2.4 A Sublicensee shall be entitled to sublicense its rights under a sublicense agreement, and so forth through a chain of sublicenses, provided that each such sublicense shall be subject to execution of a written agreement consistent with the terms of this Section 5 (other than Section 5.2.1 above), and shall be made for consideration and at arm's length transactions. To avoid doubt, BGN's approval will not be required in any such instance.

  

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5.3 Delivery of Sublicense Agreement. BioLine shall furnish BGN with a fully executed copy of any such sublicense agreement promptly after its execution, and shall ensure that any Sublicensee who further sublicenses its rights furnishes BGN with a fully executed copy of any such sublicense agreement promptly after its execution.

 

5.4 Contractors. BioLine shall have the right to utilize third party contractors in connection with BioLine's activities in exploiting the License. Provided that such contractors perform activities on BioLine's behalf, the provisions of this Section shall not apply with respect to such contractors. Sublicenses to Affiliates and third party contractors of BioLine shall not be considered Sub-Licenses under this Agreement, provided however, that such Affiliates and contractors shall act under the strict control, supervision and responsibility of BioLine. BioLine hereby agrees and undertakes that it shall remain solely responsible towards BGN for all acts and omissions performed, or omitted, by any such contractor (" the Acts"), relating to BioLine's undertakings under this Agreement, and that, for all purposes, it shall be considered as if the said Acts were performed, or omitted, by BioLine. BioLine hereby specifically renounces any argument and/or claim, that any undertaking and/or statement it has given under this Agreement, has no effect since it has no control of acts and/or omissions of any such contractor.

 

6. Development and Information Exchange.

 

6.1 Diligence. BioLine shall use all Commercially Reasonable Efforts, and/or shall cause its Affiliates and/or Sublicensees to use their Commercially Reasonable Efforts to develop Licensed Products in accordance with the applicable Development Plan during the periods and within the timetable specified therein. Without limiting the foregoing, BioLine and/or its Affiliates and/or Sublicensees shall meet the Milestones set forth in Exhibit D hereto.

 

6.2 Modifications. BioLine shall be entitled, from time to time, to make such adjustments to the then applicable Development Plan as BioLine believes, in its good faith judgment, are needed in order to improve BioLine's ability to meet the Milestones.

 

6.2A Development Plan Reporting and Approval. BioLine hereby undertakes to provide BGN with an updated Development Plan at least once a year, no later then 30 (thirty) days following the beginning of each calendar year.

 

6.3 Failure. If BioLine fails to achieve a Milestone by its designated performance date ("Failure"), unless and to the extent a delay in achievement of a Milestone is necessitated by a Regulatory Agency or by an event beyond the control of BioLine, BGN may notify BioLine in writing of BioLine's Failure and shall allow BioLine [***] to cure such failure. BioLine's failure to cure such failure to BGN's reasonable satisfaction within such [***] period shall constitute a material breach of this Agreement and BGN shall have the right to terminate this Agreement.

 

 

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

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6.4 Steering Committee, Consultation and Progress Reports. The parties shall establish a steering committee (the "Committee") to oversee the exercise of the License. Each party shall be entitled to designate one representative to the Committee (the "Representative"), which shall meet at least once every six (6) months. The Representatives shall be bound by the confidentiality arrangements set out in this Agreement. BioLine agrees to consult with BGN, via the BGN Representative, in respect of significant decisions related to the exercise of the License. BioLine shall (i) provide BGN via BGN's Representative with periodic reports not less than once per every six (6) months concerning all material activities undertaken in respect of the exercise of the License, and (ii) keep BGN fully informed via BGN's Representative on a current basis concerning all material activities undertaken in respect of the exercise of the License.

 

6.5 Research Employees and Consultants. BioLine hereby undertakes that any and all research activity that BioLine may wish to have performed in connection with the Licensed Technology that entails the services of BGU's employees including, without limitation, any employee, who has been employed or engaged by BGU shall be contracted though and provided solely and exclusively via BGN on such terms and conditions as shall be agreed upon by BGN and BioLine. For the avoidance of any doubt, BioLine hereby undertakes not to solicit, engage as subcontractor or agent, or employ, directly or indirectly, any of BGU's employees and/or consultant and/or service providers, other than in terms and conditions of this section 6.5.

 

7. Consideration for Grant of License . In consideration of the License, BioLine shall pay BGN the following fees and payments:

 

7.1 Initial and First Year Payments . BioLine shall reimburse BGN for expenses incurred by BGN to date in connection with the Licensed Technology by payment of an initial fee of [***], within fourteen (14) days of the Effective Date. For the avoidance of doubt it is hereby clarified that such an amount is an amount agreed upon by the parties and BGN shall not be required to justify such an amount in any manner, inter alia, to present receipts.

 

7.2  In addition, BioLine shall pay BGN additional fees of [***] on each of the following dates: March 31 2005, September 30, 2005, and December 31, 2005 (for a total of [***]).

 

7.2 Annual License Fee. As of December 31, 2005 and on subsequent anniversaries thereof, BioLine shall pay BGN an annual fee of thirty thousand U.S. dollars ($30,000) as an annual maintenance fee for the license. Such annual fee will cease to be payable once BGN has received cumulative Payments on Sublicense Consideration and/or BioLine Royalties equal to or exceeding [***] in any calendar year.

  

 

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

 

  

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7.3 Milestone Payment. In addition, BioLine shall pay BGN a one-time milestone payment of [***] (the "Milestone Payment"), within fourteen (14) days of upon the earlier of the occurrence of either of the following: [***]

 

7.4 Payments on Sublicensing Consideration and BioLine Royalty Payments

 

7.4.1 BioLine shall pay BGN an amount equal to twenty-eight percent (28%) of any and all Sublicense Consideration ("Payments on Sublicense Consideration"). To avoid doubt, Payments on Sublicense Consideration shall not be payable with respect to an M&A transaction in which all or substantially all of BioLine's assets or share capital are acquired by a third party.

 

7.4.2 [***]

 

7.5 BioLine Royalties In addition to the amounts set forth in Sections 7.1, through 7.4 above, in the event that BioLine will actually manufacture and/or sell Licensed Products under the License, BioLine will pay to BGN [***] of BioLine's and/or its Affiliates' Net Sales ("BioLine Royalty Payments"). Such amounts shall be payable, on a Licensed Product-by-Licensed Product and country-by-country basis, during the period in which a valid patent on the Licensed Technology underlying a product or service generating Net Sales in a given country remains in force in such country. To avoid doubt, in the event that BioLine continues sell products or services in any country based upon the Licensed Patent Rights with respect to which no patent remains in force as a result of abandoned pursuant to Section 4.4, BioLine Royalty Payments will nonetheless be payable with respect to such sales.

 

7.6 Permitted Deductions; Third-Party Royalties. In the event that BioLine or an Affiliate of BioLine is legally required to make royalty payments to one or more third parties to obtain a Third Party License from such third party(ies) in order to practice the Licensed Technology in a particular country, BioLine may offset such third-party payments against the BioLine Royalty Payments that are due to BGN pursuant to Section 7.5 with respect to sales in such country.

  

 

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

 

  

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7.7 Multiple Sublicenses. In the event that BioLine will seek to sublicense rights under the License to a third party together with technologies unrelated to the Licensed Technology (a "Multiple Sublicense"), and BGN believes that the fact that the Licensed Technology is being sublicensed in the context of the Multiple Sublicense will substantially reduce the remuneration receivable by the BGN with respect to the sublicense of the Licensed Technology, the parties shall seek an independent evaluation ("Arbitration") by a mutually agreed upon third party ("the Arbitrator"), whose decision will be limited solely to determination of the independent valuation of the License, and the economic effect of the sublicensing of the License in the context of the proposed Multiple Sublicense, and will be binding on the parties. In the event that the parties do not agree on the identity of the Arbitrator within 30 (thirty) days, or any other period agreed upon in writing by both parties, from the date in which a written request for Arbitration was sent by at least one party to the other party, the Arbitrator shall be nominated by the head of Kost Forer, Gabbay and Kasirer's (Ernst &Young Israel) Life Science Department.

 

7.8 Government Programs. BioLine may submit applications for Grants, and BGN undertakes to provide all necessary assistance to BioLine, in a timely manner, with respect to any such applications and in order to ensure BioLine's compliance with the terms and conditions of any Grants or benefits under Government Programs. Any (i) costs incurred in respect of obtaining Grants, and (ii) financial obligations assumed in respect thereof (such as, for example, repayment of the principal of a Grant, interest payments or royalties in respect thereof) shall be solely for the account of BioLine. The parties acknowledge that BioLine's obligations hereunder shall be subject to the terms of any applicable Grant, including without limitation, and if applicable any consents or approvals required pursuant to the Law for the Encouragement of Research and Development in Industry (1984) and related regulations. To avoid doubt, BioLine shall be entitled to execute any such documents, make any such representations and perform any such actions as may be necessary or desirable to fulfill its obligations and exercise its rights under any Government Program, and nothing in this Agreement shall be construed as restricting in any manner its ability to comply with the terms of any Government Program.

 

  

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8. Reports ; Payments ; Records.

 

8.1 Reports and Payments.

 

8.1.1 Reports. Within [***] after the conclusion of each Calendar Quarter commencing with the first Calendar Quarter in which BioLine or an Affiliate of BioLine first receives consideration from Net Sales and/or Sublicense Consideration, BioLine shall deliver to BGN a report containing the following information:

 

(a) the number of units of Licensed Products sold by BioLine and its Affiliates in each country for the applicable Calendar Quarter;

 

(b) the gross amount billed for the Licensed Product sold by BioLine and its Affiliates in each country during the applicable Calendar Quarter;

 

(c) a calculation of Net Sales for the applicable Calendar Quarter in each country, including a listing of applicable deductions;

 

(d) the amount of Sublicense Consideration received by BioLine and/or Affiliates for the applicable Calendar Quarter; and

 

(e) the total amount payable to BGN in U.S. dollars for the applicable Calendar Quarter, together with exchange rates used for conversion, if any. The report shall state if no amounts are due to BGN for any Calendar Quarter.

 

8.1.2 Payment. Concurrent with the delivery of each report delivered pursuant to Section 8.1.1, BioLine shall remit to BGN all amounts due to BGN for the applicable Calendar Quarter. All payments due under this Agreement shall be payable in the currency in which they were received. Any and all payments shall be performed by BioLine no later then [***] days following receipt of relevant payments by BioLine.

 

8.2 Records and Audit. BioLine shall maintain, and shall cause its Affiliates to maintain, complete and accurate records of Licensed Products that are made, used, marketed or sold under this Agreement, any amounts payable to BGN in relation to such Licensed Products and all Sublicense Consideration received by BioLine and its Affiliates, which records shall contain sufficient information to permit BGN to confirm the accuracy of any reports or notifications delivered to BGN under Section 8.1. The relevant party 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, BGN shall have the right, at BGN's expense, to cause an independent, certified public accountant, who is bound by a suitable confidentiality arrangement with BioLine, to inspect BioLine's and the relevant Affiliates' relevant records during normal business hours for the sole purpose of verifying any reports and payments delivered under this Agreement. Such accountant shall not disclose to BGN or any third party any information gained during the course of such inspection that does not directly relate to the accuracy of reports and payments delivered under this Agreement. The parties shall reconcile any underpayment or overpayment within thirty (30) days after the accountant delivers the results of the audit. BGN may exercise its rights under this Section 8.2 only once every year per audited party and only with reasonable prior notice to the audited party. BioLine shall cause its Affiliates to fully comply with the terms of this Section 8.2.

  

 

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

 

  

Page 12 of 28

  

 

8.3 Payment Method. Each payment due to BGN under this Agreement shall be made by wire transfer of funds to BGN accounts in accordance with written instructions provided by BGN.

 

8.4 Withholding and Similar Taxes. If applicable laws require that taxes be withheld from any amounts due to BGN under this Agreement, BioLine shall (a) deduct these taxes from the remittable amount, (b) pay the taxes to the proper tax authority, and (c) promptly deliver to BGN a statement including the amount of tax withheld and justification therefore, and such other information as may be necessary for tax credit purposes. Each party agrees to assist the other party in claiming exemption from such deductions or withholdings under any double taxation or similar agreement or treaty from time to time in force.

 

9. Confidential Information

 

9.1 Confidentiality.

 

9.1.1 BGN Confidential Information. BioLine agrees that, without the prior written consent of BGN, in each case, during the term of this Agreement, and for five (5) years thereafter, it will keep confidential, and not disclose or use BGN Confidential Information (as defined below) other than for the purposes of this Agreement or as detailed below. BioLine shall treat such BGN Confidential Information with the same degree of confidentiality as it keeps its own confidential information, but in all events no less than a reasonable degree of confidentiality. BioLine may disclose the BGN Confidential Information only to employees, consultants or researchers of BioLine or of its Affiliates who have a "need to know" such information in order to enable BioLine to exercise its rights or fulfill its obligations under this Agreement and provided such parties are legally bound by agreements which impose confidentiality and non-use obligations comparable to those set forth in this Agreement. For purposes of this Agreement, "BGN Confidential Information" means any scientific, technical, trade or business information relating to the subject matter of this Agreement designated as confidential or which otherwise should reasonably be construed under the circumstances as being confidential disclosed by or on behalf of BGN, or any of its employees, consultants or researchers to BioLine, whether in oral, written, graphic or machinereadable form, except to the extent such information: (i) was known to BioLine at the time it was disclosed, other than by previous disclosure by or on behalf of BGN or any of its employees, consultants or researchers, as evidenced by BioLine's written records at the time of disclosure; (ii) is at the time of disclosure or later becomes publicly known under circumstances involving no breach of this Agreement; (iii) is lawfully and in good faith made available to BioLine by a third party who is not subject to obligations of confidentiality to BGN with respect to such information; (iv) is independently developed by BioLine without the use of or reference to BGN Confidential Information, as demonstrated by documentary evidence, or (v) is disclosed pursuant to a court or administrative order, provided however that BioLine will first notify BGN of any such order and afford BGN the opportunity to seek a protective order relating to such disclosure.

 

 

Page 13 of 28

 

 

Notwithstanding anything to the contrary in this Section 9.1.1, BioLine may disclose BGN Confidential Information to actual and potential business partners, collaborators, investors, contractors, service providers and consultants, provided, in each case, that such recipient of Confidential Information first enters into a legally binding agreement with BioLine which imposes confidentiality and non-use obligations with respect to Confidential Information comparable to those set forth in this Agreement for a period of at least five (5) from the date of disclosure of BGN Confidential Information to such recipient.

 

9.1.2 BioLine Confidential Information. BGN agrees that, without the prior written consent of BioLine, in each case, during the term of this Agreement, and for five (5) years thereafter, it will keep confidential, and not disclose or use BioLine Confidential Information (as defined below) other than for the purposes of this Agreement. BGN shall treat such BioLine Confidential Information with the same degree of confidentiality as it keeps its own confidential information, but in all events no less than a reasonable degree of confidentiality. BGN may disclose the BioLine Confidential Information only to employees, consultants or researchers of BGN or its Affiliates who have a "need to know" such information in order to enable BGN to exercise its rights or fulfill its obligations under this Agreement and provided such parties are legally bound by agreements which impose confidentiality and non-use obligations comparable to those set forth in this Agreement. For purposes of this Agreement, "BioLine Confidential Information" means any scientific, technical, trade or business information relating to the subject matter of this Agreement designated as confidential or which otherwise should reasonably be construed under the circumstances as being confidential disclosed by or on behalf of BioLine whether in oral, written, graphic or machine-readable form, except to the extent such information: (i) was known to BGN at the time it was disclosed, other than by previous disclosure by or on behalf of BioLine as evidenced by BGN's written records at the time of disclosure; (ii) is at the time of disclosure or later becomes publicly known under circumstances involving no breach of this Agreement; (iii) is lawfully and in good faith made available to BGN by a third party who is not subject to obligations of confidentiality to BioLine with respect to such information; (iv) is independently developed by BGN without the use of or reference to the BioLine Confidential Information, as demonstrated by documentary evidence; or (v) is disclosed pursuant to a court or administrative order, provided however that BGN will first notify BioLine of any such order and afford BioLine the opportunity to seek a protective order relating to such disclosure.

 

  

Page 14 of 28

  

 

9.2 Disclosure of Agreement. Each party may disclose the terms of this Agreement to the extent required, in the reasonable opinion of such party's legal counsel, to comply with applicable laws, as well as to sublicensees and prospective and current investors, pursuant to appropriate non-disclosure arrangements . If a party discloses this Agreement or any of the terms hereof in accordance with this Section 9.2, such party agrees, at its own expense , to seek confidential treatment of portions of this Agreement or such terms, as may be reasonably requested by the other party.

 

9.3 Publicity. Except as expressly permitted under Section 9.2, no party will make, directly or indirectly, any announcement, publication, presentation or similar disclosure , regarding this Agreement or the Licensed Technology without the prior approval of the other party.

 

10. Patent Infringement.

 

10.1 Enforcement of Patent Rights.

 

10.1.1 Notice. In the event any party becomes aware of any possible or actual infringement or unauthorized possession, knowledge or use of any Licensed Patent Rights (collectively, an "Infringement'), that party shall promptly notify the other party and provide it with details regarding such Infringement.

 

10.1.2 Suit by BioLine. BioLine shall have the right, but not the obligation, to take action in the prosecution, prevention, or termination of any Infringement of Licensed Patent Rights. Should BioLine elect to bring suit against an infringer and BGN is joined as party plaintiff in any such suit, BGN shall have the right to approve the counsel selected by BioLine to represent BioLine and BGN, such approval not to be unreasonably withheld. The expenses of such suit or suits that BioLine elects to bring, including any expenses of BGN incurred in conjunction with the prosecution of such suits or the settlement thereof, shall be paid for entirely by BioLine and BioLine shall hold BGN free, clear and harmless from and against any and all costs of such litigation, including reasonable attorney's fees. BioLine shall not compromise or settle such litigation without the prior written consent of BGN, which consent shall not be unreasonably withheld or delayed. In the event BioLine exercises its right to sue pursuant to this Section 10.1.2, it shall first reimburse itself out of any sums recovered in such suit or in settlement thereof for all costs and expenses of every kind and character, including reasonable attorney's fees, necessarily involved in the prosecution of any such suit. If, after such reimbursement, any funds shall remain from said recovery, then BGN shall receive an amount equal to [***] of such funds and the remaining [***] of such funds shall be retained by BioLine.

   

   

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

Page 15 of 28

  

10.1.3 Suit by BGN. If BioLine does not take action in the prosecution, prevention, or termination of any Infringement pursuant to Section 10.1.2 above, and has not commenced negotiations with the infringing party for the discontinuance of said Infringement, within sixty (60) days after receipt of notice to BioLine by BGN of the existence of an Infringement, BGN may elect to do so. If BGN elects to bring suit against an infringing party and BioLine is joined as party plaintiff in any such suit, BioLine shall have the right to approve the counsel selected by BGN to represent BGN and BioLine, such approval not to be unreasonably withheld. The expenses of such suit or suits that BGN elect to bring, including any expenses of BioLine incurred in conjunction with the prosecution of such suits or the settlement thereof, shall be paid for entirely by BGN and BGN shall hold BioLine free, clear and harmless from and against any and all costs of such litigation, including reasonable attorney's fees. BGN shall not compromise or settle such litigation without the prior written consent of BioLine, which consent shall not be unreasonably withheld or delayed. In the event BGN exercise their right to sue pursuant to this Section 10.1.3, they shall first reimburse themselves out of any sums recovered in such suit or in settlement thereof for all costs and expenses of every kind and character, including reasonable attorney's fees, necessarily involved in the prosecution of any such suit. If, after such reimbursement, any funds shall remain from said recovery, then BioLine shall receive an amount equal to [***] of such funds and the remaining [***] of such funds shall be retained by BGN.

 

10.1.4 Own Counsel. Each party shall always have the right to be represented by counsel of its own selection and at its own expense in any suit instituted under this Section 10 for Infringement.

 

10.1.5 Cooperation. Each party agrees to cooperate fully in any action under this Section 10 which is controlled by another party, provided that the controlling party reimburses the cooperating party promptly for any costs and expenses incurred by the cooperating party in connection with providing such assistance.

 

10.1.6 Standing. If a party lacks standing and another party has standing to bring any such suit, action or proceeding, then such other party shall do so at the request of and at the expense of the requesting party. If a party determines that it is necessary or desirable for another party to join any such suit, action or proceeding, the other party shall execute all papers and perform such other acts as may be reasonably required in the circumstances.

 

10.1.7 Delegation. BioLine may delegate the performance of its obligations under this Section 10.1 to Subticensees.

 

10.2 Legal Action Against a Party. Each Party will provide the others with prompt notice of any action, suit or proceeding brought against it, alleging the infringement of the intellectual property rights of a third party by reason of the discovery, development, manufacture, use, sale, importation, or offer for sale of a Licensed Product or otherwise due to the use or practice of the Licensed Technology.

   

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

Page 16 of 28

  

11. Warranties; Limitation of Liability.

 

11.1 Representations and Warranties. BGN hereby represents and warrants that (i) to its best knowledge BGU is the sole owner of the Licensed Patent Rights; (ii) it has not granted any rights in or to Licensed Technology which are inconsistent with the rights granted to BioLine under this Agreement; (iii) it has full right and authority to grant the License granted under this Agreement; (iv) it will not transfer, assign, encumber, grant, sell, lease or otherwise dispose of the Licensed Technology other than as may be expressly permitted herein; and (v) it has no knowledge as of the date hereof of any legal suit or proceeding by a third party against BGN and/or BGU contesting the ownership or validity of the Licensed Patent Rights, or claiming that the practice of the Licensed Patent Rights in the manner contemplated by this Agreement would infringe the rights of such third party.

 

11.2 No Warranty. Except as otherwise expressly provided in this Agreement, no party makes any warranty with respect to any technology, patents, goods, services, rights or other subject matter of this Agreement and hereby disclaims warranties of merchantability, fitness for a particular purpose and non-infringement with respect to any and all of the foregoing.

 

11.3 Limitation of Liability. Notwithstanding anything else in this Agreement or otherwise, neither BGN nor BioLine will be liable to the other with respect to any subject matter of this Agreement under any contract, negligence, strict liability or other legal or equitable theory for (i) any indirect, incidental, consequential or punitive damages or lost profits, and (ii) the cost of procurement of substitute goods, technology or services.

 

12. Indemnification.

 

12.1 Indemnity. BioLine shall indemnify, defend, and hold harmless BGN and its respective directors, officers, employees, and agents and their respective successors, heirs and assigns (the "BGN Indemnitees "), from and against any liability, damage, loss, or expense (including reasonable attorney's fees and expenses of litigation) incurred by or imposed upon any of the BGN Indemnitees in connection with any claims, suits, actions, demands or judgments (" Claims") concerning the use of any Licensed Technology by BioLine, or any of its Affiliates or Sublicensees, or concerning any product, process, or service that is made, used, or sold pursuant to any right or license granted by BGN to BioLine under this Agreement (except in cases where, and to the extent that, such claims, suits, actions, demands or judgments result from gross negligence or willful misconduct on the part of any of the BGN Indemnitees).

 

12.2 Conditions for Indemnification. BioLine undertakings under Section 12.1 above shall be subject to: (a) receipt of prompt written notice of any Claim by a BGN lndemnitee, (b) the cooperation of BGN and the BGN Indemnitee(s) regarding the response to and the defense of any such Claim, and (c) BioLine's right to assume the defense or represent the interests of the BGN lndemnitee in respect of such Claim, that shall include the right to select and direct legal counsel and other consultants to appear in proceedings on behalf of the BGN Indemnitee and to propose, accept or reject offers of settlement, all at its sole cost; provided however, that no such settlement shall be made without the written consent of the BGN Indemnitee, such consent not to be unreasonably withheld. Nothing herein shall prevent the BGN Indemnitee from retaining its own counsel and participating in its own defense at its own cost and expense.

  

Page 17 of 28

  

12.3 Insurance. BioLine shall maintain insurance that is reasonably adequate to fulfill any potential obligation to the BGN Indemnitees consistent with industry standards.  BioLine shall provide BGN, upon request, with written evidence of such insurance.

 

13. Term and Termination.

 

13.1 Term. The term of this Agreement shall commence on the Effective Date and, unless earlier terminated as provided in this Section 13, shall continue in full force and effect on until the expiration of all payment obligations pursuant to Section 7 for such Licensed Product, and as.

 

13.2 Effect of Expiration. Following the expiration of the last valid patent on the Licensed Technology underlying a product or service generating Net Sales in a given country, on a country-by-country basis, (a) BioLine shall have a fully-paid up, nonexclusive, worldwide license (with the right to grant sublicenses) under the BGN Technology in such country solely to develop, have developed, manufacture, have manufactured, use, market, offer for sale, sell, have sold, import, export, otherwise transfer physical possession- of or otherwise transfer title to Licensed Products; and (b) BGN shall be free to use the Licensed Technology in such country to develop, make and have made, use, offer to sell, sell, have sold, import, export, otherwise transfer physical possession of or otherwise transfer title to Licensed Products and to grant others licenses under the Licensed Technology to do the same. To avoid doubt, to the extent that BioLine continues to receive Sublicense Consideration following such expiration, BGN shall continue to be entitled to receive Payments on Sublicense Consideration with respect thereto, notwithstanding the foregoing.

 

13.3 Termination.

 

13.3.1 Termination By BioLine. BioLine may terminate this Agreement within the first two years of the term of the Agreement, with sixty (60) days prior written notice to BGN, for commercial, economic, scientific or technological reasons, as it shall determine at its sole and absolute discretion. After such initial two year period, BioLine may terminate this Agreement without cause with sixty (60) days prior written notice to BGN.

 

13.3.2 Termination for Default.

 

13.3.2.1 In the event that BioLine commits a material breach of its obligations under this Agreement and fails to cure that breach within sixty (60) days after receiving written notice thereof from BGN, BGN may terminate this Agreement immediately upon written notice to BioLine. In the event that BGN commits a material breach of its obligations under this Agreement and fails to cure that breach. within sixty (60) days after receiving written notice thereof from BioLine, BioLine may terminate this Agreement immediately upon written notice to BGN. Notwithstanding the foregoing, in the event that any breach is not susceptible of cure within the stated period and the breaching party uses diligent good faith efforts to cure such breach, the stated period will be extended by an additional thirty (30) days.

  

Page 18 of 28

  

13.3.2.2 In the event of an uncured material breach by any party as described in the foregoing paragraph, the other party may elect not to terminate this Agreement but, instead, to sue the breaching party for damages arising from such breach.

 

13.3.3 Bankruptcy.

 

13.3.3.1 Either BioLine or BGN may terminate this Agreement upon notice to the other if the other party becomes insolvent, is adjudged bankrupt, applies for judicial or extra-judicial settlement with its creditors, makes an assignment for the benefit of its creditors, voluntarily files for bankruptcy or has a receiver or trustee (or the like) in bankruptcy appointed by reason of its insolvency, or in the event an involuntary bankruptcy action is filed against the other party and not dismissed within ninety (90) days, or if the other party becomes the subject of liquidation or dissolution proceedings or otherwise discontinues business.

 

13.3.3.2 Notwithstanding the foregoing, in the event a receiver or trustee (or the like) is appointed or BioLine has entered into a settlement with its creditors and BioLine is otherwise meeting its obligations pursuant to this Agreement, BGN shall not be entitled to terminate this Agreement as contemplated under Section 13.3.3.1 during such period.

 

13.4 Effect of Termination.

 

13.4.1 Termination of Rights. Upon termination by BioLine pursuant to Sections 13.3.1, 13.3.2 or 13.3.3 hereof or by BGN pursuant to Sections 13.3.2 or 13.3.3 hereof (except in the circumstances set out in Section 13.3.3.2): (a) the rights and licenses granted to BioLine under Section 2 shall terminate; (b) all rights in and to the Licensed Technology shall revert to BGN and BioLine shall not be entitled to make any further use whatsoever of the BGN Technology nor shall BioLine develop, make, have made, use, offer to sell, sell, have sold, import, export, otherwise transfer physical possession of or otherwise transfer title to Licensed Products developed in whole or in part under the rights granted hereunder; and (c) any existing agreements that contain a sublicense of the Licensed Technology shall terminate to the extent of such sublicense provided however, that, for each Sublicensee, upon termination of the sublicense agreement with such Sublicensee, BGN shall be obligated, at the request of such Sublicensee, to enter into a new license agreement with such Sublicensee on substantially the same terms as those contained in such sublicense agreement, provided that such terms shall be amended, if necessary, to the extent required to ensure that such sublicense agreement does not impose any obligations or liabilities on BGN which are not included in this Agreement.

 

13.4.2 Accruing Obligations. Termination of this Agreement shall not relieve the parties of obligations occurring prior to such termination, including obligations to pay amounts accruing hereunder up to the date of termination.

 

13.5 Survival. The parties' respective rights, obligations and duties under Sections 3, 9, 11.4 and 14, as well as any rights, obligations and duties which by their nature extend beyond the expiration or termination of this Agreement, shall survive any expiration or termination of this Agreement.

  

Page 19 of 28

  

14. Miscellaneous.

 

14.1 Entire Agreement. This Agreement is the sole agreement with respect to the subject matter hereof and except as expressly set forth herein, supersedes all other agreements and understandings between the parties with respect to same.

 

14.2 Publicity Restrictions. Subject to Section 9.3, BioLine and its Affiliates and Sublicensees shall not use the name of BGN or any of its directors, officers, employees, or agents, or any adaptation of such names, in any promotional material or other public announcement or disclosure relating to the subject matter of this Agreement or in connection with the marketing or sale of any Licensed Products, without the prior written consent of BGN. Subject to Section 9.3, BGN and its Affiliates shall not use the name of BioLine and its Affiliates and Sublicensees or any of their employees, directors, stockholders and/or representatives or any adaptation of such names, in any promotional material or other public announcement or disclosure relating to the subject matter of this Agreement, without the prior written consent of BioLine.

 

14.3 Notices. Unless otherwise specifically provided, all notices required or permitted by this Agreement shall be in writing and may be delivered personally, or may be sent by facsimile or certified mail, return receipt requested, to the following addresses, unless the parties are subsequently notified of any change of address in accordance with this Section 14.3:

 

If to BioLine: BioLine Innovations Jerusalem L.P

19 Hartum Street

P.O. Box 45158

Jerusalem 91450

Israel

Attention: CEO and VP Finance

Fax: 972-2-548-9101

With a copy (which Yigal Arnon & Co., Law Offices

shall not constitute 22 Rivlin Street

notice) to: Jerusalem, 94263

Israel

Attention: Barry Levenfeld

Fax: 972-2-623-9236

If to BGN: B.G.Negcv Technologies and Applications Ltd.

1, Henrietta Sold street

P.O.Box 653

Beer-Sheva, 84105

Israel

  

Page 20 of 28

  

Attn: Ora Horovitz

Fax: 972-8-6276420

With a copy (which

Bach, Arad, Sharf and Co.

shall not constitute 2 Hashalom Rd.

notice) to: Tel-Aviv

Israel

Attention: Adv. Eytan Liraz

Fax: 972-3-5625304

 

Any notice shall be deemed to have been received as follows: (i) by personal delivery, upon receipt; (ii) by facsimile, one business day after transmission or dispatch; (iii) by airmail, three (3) business days after delivery to the postal authorities by the party serving notice. If notice is sent by facsimile, a confirming copy of the same shall be sent by mail to the same address.

 

14.4 Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Israel, without regard to the application of principles of conflicts of law, except for matters of patent law, which, other than for matters of inventorship on patents, shall be governed by the patent laws of the relevant country of the patent. The parties hereby consent to personal jurisdiction in Israel and agree that any lawsuit they file to enforce their respective rights under this Agreement shall be brought in the competent court in Tel Aviv, Israel. 

 

14.5 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective legal representatives, successors and permitted assigns.

 

14.6 Headings. Section and subsection headings are inserted for convenience of reference only and do not form a part of this Agreement.

 

14.7 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original.

 

14.8 Amendment; Waiver. This Agreement may be amended, modified, superseded or canceled, and any of the terms may be waived, only by a written instrument executed by each party or, in the case of waiver, by the party waiving compliance. The delay or failure of any party at any time or times to require performance of any provisions hereof shall in no manner affect the rights at a later time to enforce the same. No waiver by either party of any condition or of the breach of any term contained in this Agreement, whether by conduct, or otherwise, in any one or more instances, shall be deemed to be, or considered as, a further or continuing waiver of any such condition or of the breach of such term or any other term of this Agreement.

  

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14.9 No Agency or Partnership. Nothing contained in this Agreement shall give any party the right to bind another, or be deemed to constitute either parties as agents for each other or as partners with each other or any third party.

 

14.10 Assignment and Successors. This Agreement may not be assigned by either party without the consent of the other party, which consent shall not be unreasonably withheld or delayed; provided however, that each party (including its successors or assigns) may, without such consent, assign this Agreement and the rights, obligations and interests of such party, in whole or in part, to any of its Affiliates, to any purchaser of all or substantially all of its assets or research to which the subject matter of this Agreement relates, or to any successor corporation resulting from any merger or consolidation of such party with or into such corporation.

 

14.11 Force Majeure. Neither party will be responsible for delays resulting from causes beyond the reasonable control of such party, including without limitation fire, explosion, flood, war, strike, or riot, provided that the nonperforming party uses commercially reasonable efforts to avoid or remove such causes of nonperformance and continues performance under this Agreement with reasonable dispatch whenever such causes are removed.

 

14.12 Interpretation. The parties hereto acknowledge and agree that: (i) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement; and (iii) the terms and provisions of this Agreement shall be construed fairly as to both parties hereto and not in favor of or against either party, regardless of which party was generally responsible for the preparation of this Agreement.

 

14.13 Severability. If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed unenforceable, it is the intention of the parties that the remainder of this Agreement shall not be affected.

 

14.14 Exhibits. The following exhibits form an integral part of this Agreement:

 

Exhibit A: Current Invention

 

Exhibit B: Development Plan

 

Exhibit C: Patent Rights

 

Exhibit D: Milestones

  

Page 22 of 28

  

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

 

	
B.G. Negev Technologies and

	
BioLine Innovations Jerusalem L.P.

	
Applications Ltd.

	  
	  	
By its General Partner:

	  	
BioLine Innovations Jerusalem Ltd.

	
By:       /s/ Moti Herskowitz   /s/ Netta Cohen

	
By:       /s/ Morris Laster, /s/ Aharon Schwartz

	
Name: Moti Herskowitz, Netta Cohen

	
Name: Morris Laster, Aharon Schwartz

	
Title:   Director, CEO

	
Title:   Director , Director

	
Date:   16/01/05

	
Date:   10/01/05

 

I hereby confirm that I have read and understood the Agreement, that its contents are acceptable to me and that I will act in accordance with its terms.

 

	
Prof. Smadar Cohen

	
By:      /s/ Smadar Cohen

	
Date : 22/01/05

	  
	
Prof. Jonathan Leor

	
By:     /s/ Jonathan Leor

	
Date: 22/01/05

  

Page 23 of 28

  

 

Exhibit A

 

Current Invention

 

	
Patent No.

	
Application

	
Invention

 

[***]

     

   

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

Page 24 of 28

  

 

Exhibit B

 

Development Plan

 

	
ID

	
Task

Name

	
Start

	
Finish

	
Cost

	
2005

	
2006

	
2007

	
2008

	
2009

	
2010

 

[***]

   

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

Page 25 of 28

  

 

	
ID

	
Task

Name

	
Start

	
Finish

	
Cost

	
2005

	
2006

	
2007

	
2008

	
2009

	
2010

 

[***]

    

   

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

Page 26 of 28

  

Exhibit C

 

Patent Rights

 

Patent No.   Application   Invention

 

[***]

    

   

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

Page 27 of 28

  

 

Exhibit D

 

Milestones

 

Milestone                         Date

 

[***]

    

   

[***] Omitted pursuant to a confidential treatment request. The confidential portion has been filed separately with the SEC.

  

Page 28 of 28

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