Document:

Exhibit
      10.7

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT
      (this
“Agreement”)
      is
      made and entered into as of the 14th
      day of
      December, 2005 (the “Effective
      Date”),
      by
      and between MODIGENE INC.,
      a
      Delaware corporation (“Employer”),
      and
      Shai Novik (“Executive”).

     

    RECITALS

     

    
      	 	
              A.

            	
              Executive
                currently serves in the position of President of
                Employer.

            

    

     

    
      	 	
              B.

            	
              Employer
                desires to have Executive continue in the position of President and
                Executive desires to continue to serve in such
                position.

            

    

     

    
      	 	
              C.

            	
              Employer
                and Executive have made commitments to each other on a variety of
                important issues concerning Executive’s employment, including the
                performance that will be expected of Executive, the compensation
                that
                Executive will be paid, how long and under what circumstances Executive
                will remain employed and the financial details relating to any decision
                that either Executive or Employer might ever make to terminate this
                Agreement.

            

    

     

    
      	 	
              D.

            	
              Employer
                and Executive believe that the commitments they have made to each
                other
                should be memorialized in writing, and that is the purpose of this
                Agreement.

            

    

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and of the covenants and agreements hereinafter
      contained, it is covenanted and agreed by and between the parties hereto as
      follows:

     

    AGREEMENTS

     

    Section
      1. Term
      and Automatic Extension.
      Executive’s employment hereunder shall be for a term of two years (the
“Term”)
      commencing on the Effective Date. The Term shall automatically extend for
      additional one-year periods (the “Automatic
      Extension”),
      unless either party provides written notice to the other not less than 60 days
      prior to the applicable one-year anniversary of the Effective Date of its desire
      not to extend the Term. If such a written notice is effectively given and the
      Automatic Extension is not effected, then Executive’s employment hereunder shall
      terminate as of the last day of the then current Term.
      For the
      avoidance of doubt, the initial Term commences on December 14, 2005, therefore
      the expiration date shall be December 14, 2007 unless the Automatic Extension
      is
      triggered as a result of no notice being given on or before October 15, 2006
      (60
      days prior to the one-year anniversary of the commencement date) and thereby
      the
      Term will be automatically extended to December 14, 2008. Similarly, if no
      notice is given on or before October 15, 2007 (60 days prior to the next
      one-year anniversary of the commencement date), the Term will automatically
      be
      extended to December 14, 2009.

     

    Section
      2. Position
      and Duties.
      Employer
      hereby employs Executive as the President. Executive will devote Executive’s
      full business time and best efforts to the performance of Executive’s duties
      hereunder and will not engage in any other business, profession or occupation
      for compensation or otherwise which would conflict or interfere with the
      rendition of such services, without the prior written consent of the Board;
      provided,
      that
      nothing herein shall preclude Executive from engaging in other business
      professions or occupations for compensation or otherwise or from accepting
      appointment to or continuing to serve on any board of directors or trustees
      of
      any business corporation or any charitable organization; provided
      further,
      that, in
      each case, and in the aggregate, such activities do not conflict or interfere
      with the performance of Executive’s duties hereunder or conflict with
Section
      6.
      Executive’s duties and authority shall consist of and include all duties and
      authority customarily performed and held by persons holding equivalent positions
      with business organizations similar in nature and size to Employer, as such
      duties and authority are reasonably defined, modified and delegated from time
      to
      time by the Board. Executive shall have the powers necessary to perform the
      duties assigned to him.

     

    
      
        
        

      

      
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    Section
      3. Compensation.
      As
      compensation for the services to be provided by Executive hereunder, Executive
      shall receive the following compensation, expense reimbursement and other
      benefits (as shall be set forth also in the Notice to Employee attached hereto
      as Exhibit
      A,
      as may
      be amended from time to time):

     

    (a) Base
      Salary.
      Executive shall receive an aggregate annual minimum base salary at the rate
      of
      One Hundred and Ninety-Five Thousand Dollars ($195,000) payable in equal monthly
      installments of $16,250 or otherwise in accordance with the regular payroll
      schedule of Employer (“Base
      Salary”).
      At
      the mutual agreement of Employer and Employee, payments of Base Salary shall
      be
      made in NIS, calculated in accordance with the applicable exchange rate
      published by Bank Israel at the day of payment. The Base Salary shall be subject
      to review annually commencing on July 1, 2006, and shall be maintained or
      increased during the term hereof as the Board may determine from time to
      time.

     

    (b) Performance
      Bonus.
      Executive shall be eligible to receive an annual cash bonus up 50% of Base
      Salary, as determined by the Board, payable within 30 days after the end of
      the
      fiscal year of Employer, which shall be based upon performance criteria
      established by the Board (“Performance
      Bonus”).

     

    (c) Signing
      Bonus.
      Executive shall receive a signing bonus of One Hundred Thousand Dollars
      ($100,000) (the “Signing
      Bonus”),
      payable as follows: (i) $50,000 within three business days of the Effective
      Date, and (ii) $50,000 upon the earliest to occur of (1) the receipt of $100,000
      by Employer or any of its subsidiaries from any business or research and
      development collaboration, including, without limitation, any down payment,
      milestone payment or royalty payment, (2) the closing of the next equity or
      debt
      funding round of Employer, (3) 12 months after the Effective Date, or (4) the
      termination of this Agreement for any reason. At the mutual agreement of
      Employer and Employee, payments of the Signing Bonus shall be made in NIS,
      calculated in accordance with the applicable exchange rate published by Bank
      Israel at the day of payment. 

     

    (d) Grant
      of Options.
      Executive is hereby granted two (2) option grants. The 1st
      option
      grant includes 100,000 options to purchase common shares of Employer, with
      a
      strike price of $1.5, vested equally over a twelve months period starting on
      the
      Effective Date. The 2nd
      option
      grant includes 85,000 options to purchase common shares of Employer, with a
      strike price of $1.5, vested annually over a three-year period starting on
      the
      Effective Date. The exercise of the 1st
      and
      2nd
      option
      grants can be done via cash or cashless method. The 1st
      and
      2nd
      option
      grants are granted to Employee under the Employer’s ESOP. The 1st
      option
      grant shall be effective through the expiration date of the options, and shall
      survive any voluntary termination by Employee or termination by Employer. All
      the other terms of the 1st
      and
      2nd
      option
      grants shall be detailed in a separate Option Grant Agreement delivered to
      the
      Employee no later than 90 days from the Effective Date.

     

    
      
        
        

      

      
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    (e) Discretion
      of the Board.
      Additional incentive compensation shall be at the discretion of the
      Board.

     

    (f) Vacations
      and Sick Leave. During
      the Term, Executive shall be entitled to an aggregate of 30 days of paid
      vacation and sick leave per calendar year (which include paid sick leave (“Dmei
      Machala”) as prescribed under Israeli law).  Such
      paid
      vacation /sick leave shall accrue quarterly. Executive may accumulate
      or carry over up
      to 21
      days of unused,
      accrued vacation/sick leave to
      the
      next calendar year.
      For any
      partial year of employment, the number of vacation /sick leave days shall be
      prorated. 

     

    (g) Employer
      Plans.
      Executive shall have the right to participate in such employee benefit and
      welfare plans and programs as Employer may from time to time offer or provide
      generally to its executive officers, including participation in any life
      insurance, disability coverage, health and accident, medical plans and programs
      and profit sharing and retirement plans, all in accordance with the terms and
      conditions of such plans and programs.  

     

    (h) Other
      Benefits.
      Executive
      shall be entitled to all benefits specifically established for him by the Board
      and, when and to the extent he is eligible therefor, to receive commensurate
      benefits as from time to time generally accorded to senior executives of
      Employer.

     

    (i) Reimbursement
      of Expenses.
      Executive
      shall be reimbursed, upon submission of appropriate vouchers and supporting
      documentation, for all travel, entertainment and other out-of-pocket expenses
      reasonably and necessarily incurred by Executive in the performance of his
      duties hereunder. 

     

    (j) Withholding.
      Employer
      shall be entitled to withhold from amounts payable to Executive hereunder,
      any
      applicable withholding or other taxes or charges which it is from time to time
      required to withhold under applicable law. Employer shall be entitled to rely
      upon the opinion of its legal counsel with regard to any question concerning
      the
      amount or requirement of any such withholding.

     

    Section
      4. Confidentiality
      and Loyalty. 

     

    (a) Confidentiality.
      

     

    (i) Executive
      will not at any time (whether during or after Executive’s employment with
      Employer) (x) retain or use for the benefit, purposes or account of
      Executive or any other Person; or (y) disclose, divulge, reveal,
      communicate, share, transfer or provide access to any Person outside Employer
      (other than its professional advisers who are bound by confidentiality
      obligations), any non-public, proprietary or confidential
      information - including, without limitation trade secrets, know-how,
      research and development, software, databases, inventions, processes, formulae,
      technology, designs and other intellectual property, information concerning
      finances, investments, profits, pricing, costs, products, services, vendors,
      customers, clients, partners, investors, personnel, compensation, recruiting,
      training, advertising, sales, marketing, promotions, government and regulatory
      activities and approvals - concerning the past, current or future
      business, activities and operations of Employer, its subsidiaries or affiliates
      and/or any third party that has disclosed or provided any of same to Employer
      on
      a confidential basis (“Confidential
      Information”)
      without the prior written authorization of the Board. 

     

    
      
        
        

      

      
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    (ii) “Confidential
      Information”
shall
      not include any information that is (a) generally known to the industry or
      the public other than as a result of Executive’s breach of this covenant or any
      breach of any other confidentiality obligations by third parties; (b) made
      legitimately available to Executive by a third party without breach of any
      confidentiality obligation; or (c) required by law to be disclosed;
provided,
      that
      Executive shall give prompt written notice to Employer of such requirement,
      disclose no more information than is so required, and cooperate with any
      attempts by Employer to obtain a protective order or similar
      treatment.

     

    (iii) Except
      as
      required by law, Executive will not disclose to anyone, other than Executive’s
      immediate family and legal or financial advisors, the existence or contents
      of
      this Agreement; provided,
      that
      Executive may disclose to any prospective future employer the provisions of
      Section
      4
      and
Section
      6
      of this
      Agreement provided they agree to maintain the confidentiality of such terms.
      Notwithstanding anything herein to the contrary, any party to this Agreement
      (and any employee, representative, or other agent of any party to this
      Agreement) may disclose to any and all persons, without limitation of any kind,
      the tax treatment and tax structure of the transactions contemplated by this
      Agreement and all materials of any kind (including opinions or other tax
      analyses) that are provided to it relating to such tax treatment and tax
      structure. However, any such information relating to the tax treatment or tax
      structure is required to be kept confidential to the extent necessary to comply
      with any applicable federal or state securities laws.

     

    (iv) Upon
      termination of Executive’s employment with Employer for any reason, Executive
      shall (x) cease and not thereafter commence use of any Confidential
      Information or intellectual property (including, without limitation, any patent,
      invention, copyright, trade secret, trademark, trade name, logo, domain name
      or
      other source indicator) owned or used by Employer, its subsidiaries or
      affiliates; (y) immediately destroy, delete or return to Employer, at
      Employer’s option, all originals and copies in any form or medium (including
      memoranda, books, papers, plans, computer files, letters and other data) in
      Executive’s possession or control (including any of the foregoing stored or
      located in Executive’s office, home, laptop or other computer, whether or not
      Employer property) that contain Confidential Information or otherwise relate
      to
      the business of Employer, its affiliates and subsidiaries, except that Executive
      may retain only those portions of any personal notes, notebooks and diaries
      that
      do not contain any Confidential Information; and (z) notify and fully
      cooperate with Employer regarding the delivery or destruction of any other
      Confidential Information of which Executive is or becomes aware.

     

    
      
        
        

      

      
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    (b) Intellectual
      Property.

     

    (i) If
      Executive creates, invents, designs, develops, contributes to or improves any
      works that relate to Employer’s business of developing therapeutic proteins,
      either alone or with third parties, at any time during Executive’s employment by
      Employer and within the scope of such employment and/or with the use of any
      of
      Employer resources (“Employer
      Works”),
      Executive shall promptly and fully disclose same to Employer and hereby
      irrevocably assigns, transfers and conveys, to the maximum extent permitted
      by
      applicable law, all rights and intellectual property rights therein (including
      rights under patent, industrial property, copyright, trademark, trade secret,
      unfair competition and related laws) of the Employer Works to Employer to the
      extent ownership of any such rights does not vest originally in
      Employer.

     

    (ii) Executive
      agrees to keep and maintain adequate and current written records (in the form
      of
      notes, sketches, drawings, and any other form or media requested by Employer)
      of
      all Employer Works. The records will be available to and remain the sole
      property and intellectual property of Employer at all times.

     

    (iii) Executive
      shall take all requested actions and execute all requested documents (including
      any licenses or assignments required by a government contract) at Employer’s
      expense (but without further remuneration) to assist Employer in validating,
      maintaining, protecting, enforcing, perfecting, recording, patenting or
      registering any of Employer’s rights in the Employer Works. If Employer is
      unable for any other reason to secure Executive’s signature on any document for
      this purpose, then Executive hereby irrevocably designates and appoints Employer
      and its duly authorized officers and agents as Executive’s agent and attorney in
      fact, to act for and in Executive’s behalf and stead to execute any documents
      and to do all other lawfully permitted acts in connection with the
      foregoing.

     

    (iv) Executive
      shall not improperly use for the benefit of, bring to any premises of, divulge,
      disclose, communicate, reveal, transfer or provide access to, or share with
      Employer any confidential, proprietary or non-public information or intellectual
      property relating to a former employer or third party without the prior written
      permission of such third party. Executive hereby indemnifies, holds harmless
      and
      agrees to defend Employer and its officers, directors, partners, employees,
      agents and representatives from any breach of the foregoing covenant. Executive
      shall comply with all relevant policies and guidelines of Employer, including
      regarding the protection of confidential information and intellectual property
      and potential conflicts of interest. Executive acknowledges that Employer may
      amend any such policies and guidelines from time to time, and that Executive
      remains at all times bound by their most current version.

     

    (v) The
      provisions of this Section
      4
      shall
      survive the termination of Executive’s employment for any reason.

     

    Section
      5. Termination.

     

    (a) Voluntary
      Termination by Executive or Expiration of Term.
      If
      Executive voluntarily terminates his employment under this Agreement, other
      than
      pursuant to Section
      5(f)
      (Change
      of Control), or upon the natural expiration of the Term (after any Automatic
      Extensions), then Employer shall only be required to pay Executive such Base
      Salary, accrued vacation and unpaid expenses as shall have accrued through
      the
      effective date of such termination and the Signing Bonus (to the extent not
      previously paid), and Employer shall not be obligated to pay any Performance
      Bonus for the then current fiscal year of Employer, or have any further
      obligations to Executive. Executive shall provide Employer a 30-day notice
      prior
      to such voluntary termination. If the Term expires, then Employer shall only
      be
      required to pay Executive such Base Salary, accrued vacation/sick leave and
      unpaid expenses as shall have accrued through the effective date of such
      termination, plus Employer shall be obligated to pay any Performance Bonus
      (as
      determined be Section 3 above) for the then current fiscal year of Employer.
      Notwithstanding the foregoing, if Executive voluntarily terminates his
      employment due to Employer’s material breach of its obligation to pay Executive
      pursuant to this Agreement and Executive has given Employer notice and a 30-day
      period to cure such breach, then Employer shall continue to pay Executive his
      Base Salary for the 12-month period following the effective date of termination
      (payable in monthly installments), plus Employer shall pay to Executive, within
      ten (10) days after the effective date of termination, an amount equal to the
      value of accrued vacation/sick leave, unpaid expenses and any other benefits
      accrued at the effective date of termination (including a pro rata portion
      of
      the current fiscal year’s Performance Bonus, if any). In such case, Employer
      shall not be obligated to pay any remaining Performance Bonus for the then
      current fiscal year of Employer, or have any further obligations to
      Executive.

     

    
      
        
        

      

      
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    (b) Premature
      Termination by Employer.
      In the
      event of the termination of this Agreement by Employer prior to the last day
      of
      the Term (as the same may be extended pursuant to Section 1) for any reason
      other than a termination in accordance with the provisions of Section
      5(c)
      (Termination for Cause), then Employer shall continue to pay Executive his
      Base
      Salary for the nine-month period following the effective date of termination
      (payable in monthly installments), plus Employer shall pay to Executive, within
      ten (10) days after the effective date of termination, an amount equal to the
      value of accrued vacation/sick leave, unpaid expenses and any other benefits
      accrued at the effective date of termination (including a pro rata portion
      of
      the current fiscal year’s Performance Bonus, if any, through the effective date
      of termination). In such case, Employer shall not be obligated to pay any
      remaining Performance Bonus for the then current fiscal year of Employer, or
      have any further obligations to Executive; provided, however, that the Base
      Salary amount that Employer is obligated to pay hereunder shall be reduced
      by
      any salary or consulting fees that Executive receives from another employer
      during such nine-month period. Employer shall provide Executive with 90 days
      prior written notice of such premature termination.

     

    (c) Termination
      for Cause.
      This
      Agreement may be terminated for cause as hereinafter defined. “Cause”
shall
      mean: (i) Executive’s
      death; (ii) Executive’s
      “Permanent
      Disability”,
      which
      shall mean Executive’s inability, as a result of physical or mental incapacity,
      substantially to perform his duties hereunder for a period of three consecutive
      months; (iii) a
      material violation by Executive of any applicable material law or regulation
      respecting the business of Employer; (iv) Executive
      being found guilty of a felony or an act of dishonesty in connection with the
      performance of his duties as an officer of Employer, or which disqualifies
      Executive from serving as an officer or director of Employer; (v) the
      willful or negligent failure of Executive to perform his duties hereunder in
      any
      material respect after receipt of written notice from the Board and a reasonable
      opportunity to cure; (vi) the
      willful or negligent failure of Executive to obey the reasonable lawful
      directives of the Board after receipt of written notice from the Board and
      a
      reasonable opportunity to cure; and (vii) to
      the extent permitted by applicable law, the development by Executive of any
      drug, alcohol or other substance abuse problems, or the commission of a crime
      involving moral turpitude. Upon a termination of Executive’s employment with
      Employer for Cause, Executive shall be entitled to receive from Employer only
      such payments as are due and owing to Executive as of the effective date of
      such
      termination.
      Employer
      shall provide Executive with five days prior written notice of termination
      with
      Cause. For the avoidance of doubt, no Performance Bonus shall be payable for
      the
      fiscal year in which Employee is terminated for Cause.

     

    
      
        
        

      

      
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    (d) Payments
      Upon Death.
      At the
      death of Executive, payment of all accrued but unpaid Base Salary and the value
      of any accrued but unused vacation/sick leave, as of the date of such death,
      shall be made to such beneficiary as Executive may designate in writing, or
      failing such designation, to the executor of his estate, in full settlement
      and
      satisfaction of all claims and demands on behalf of Executive. Such payments
      shall be in full settlement and satisfaction of all claims and demands on behalf
      of Executive under this Agreement.

     

    (e) Payments
      Upon Permanent Disability.
      Executive shall be entitled to the compensation and benefits provided for under
      this Agreement for any period during the Term and prior to the establishment
      of
      Executive’s Permanent Disability during which Executive is unable to work due to
      a physical or mental infirmity. Notwithstanding anything contained in this
      Agreement to the contrary, until the date specified in a notice of termination
      relating to Executive’s Permanent Disability, Executive shall be entitled to
      return to his position with Employer as set forth in this Agreement in which
      event no Permanent Disability of Executive will be deemed to have occurred.
      Upon
      the establishment of Executive’s Permanent Disability, payment of all accrued
      but unpaid Base Salary, and the value of any accrued but unused vacation /sick
      leave shall be made to Executive or his representative. Such payments shall
      be
      in full settlement and satisfaction of all claims and demands on behalf of
      Executive under this Agreement.

     

    (f) Other
      Termination Payments

     

    (i) In
      the
      event of a termination of Executive’s employment under either (A) or (B) below,
      Executive shall be entitled to receive, in lieu of any other payments provided
      for in this Agreement, a lump sum payment equal to the sum of (x) the lesser
      of
      (i) Executive’s Base Salary for nine months and (ii) Executive’s Base Salary for
      the remainder of the Term (as the same may have been extended pursuant to
      Section 1), (y) the value of accrued vacation/sick leave, unpaid expenses and
      any other benefits accrued at the effective date of termination (including
      a pro
      rata portion of the current fiscal year’s Performance Bonus, if any), and (z)
      the Signing Bonus (to the extent not previously paid). In addition, all
      non-vested stock options held by Executive shall immediately vest and shall
      be
      exercisable:

     

    A. Executive
      terminates his employment under this Agreement for Good Reason (as defined
      below) by a written notice to that effect delivered to the Board within 12
      months after the occurrence of the Good Reason event.

     

    B. Executive’s
      employment is terminated by Employer or its successor within 12 months of a
      Change of Control. 

     

    
      
        
        

      

      
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    (ii) For
      purposes of this Section, the term “Change
      of Control”
shall
      mean the following:

     

    A. The
      consummation of the acquisition by any person (as such term is defined in
      Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the
      “1934
      Act”))
      of
      beneficial ownership (within the meaning of Rule 13d-3 promulgated under
      the 1934 Act) of fifty percent (50%) or more of the combined voting power of
      the
      then outstanding voting securities of Employer; 

     

    B. The
      individuals who, as of the date hereof, are members of the Board cease for
      any
      reason to constitute a majority of the Board, unless the election, or nomination
      for election by the stockholders, of any new director was approved by a vote
      of
      a majority of the Board, and such new director shall, for purposes of this
      Agreement, be considered as a member of the Board; or

     

    C. The
      consummation of: (1) a merger or consolidation to which Employer is a party
      if
      the stockholders immediately before such merger or consolidation do not, as
      a
      result of such merger or consolidation, own, directly or indirectly, more than
      fifty percent (50%) of the combined voting power of the then outstanding voting
      securities of the entity resulting from such merger or consolidation in
      substantially the same proportion as their ownership of the combined voting
      power of Employer’s voting securities outstanding immediately before such merger
      or consolidation; or (2) a complete liquidation or dissolution or an agreement
      for the sale or other disposition of all or substantially all of the assets
      of
      Employer.

     

    Notwithstanding
      the foregoing, a Change of Control shall not be deemed to occur solely because
      fifty percent (50%) or more of the combined voting power of Employer’s then
      outstanding securities is acquired by: (1) a trustee or other fiduciary holding
      securities under one or more employee benefit plans maintained for employees
      of
      the entity; or (2) any corporation which, immediately after such acquisition,
      is
      owned directly or indirectly by the stockholders in substantially the same
      proportion as their ownership of stock immediately prior to such
      acquisition.

     

    (iii) If
      (A)
      Executive provides written notice to Employer of the occurrence of Good Reason
      (as defined below) within a reasonable time after Executive has knowledge of
      the
      circumstances constituting Good Reason, which notice specifically identifies
      the
      circumstances which Executive believes constitute Good Reason; (B) Employer
      fails to notify Executive of Employer's intended method of correction within
      30
      days after receipt of the notice, or fails to commence appropriate action to
      correct the circumstances within 30 days after receipt of such notice; and
      (C)
      Executive resigns within ten business days after receiving Employer's response,
      if such response does not indicate an intention to correct such circumstances,
      or within ten business days following the end of Employer's 30-day cure period
      if Employer had failed to commence appropriate action to correct the
      circumstances; then Executive shall be considered to have terminated for Good
      Reason. For purposes of this Agreement, "Good
      Reason"
      shall
      mean, without Executive's express written consent (and except in consequence
      of
      a prior termination of Executive's employment), the occurrence of any of the
      following circumstances, including, but not limited to, after the occurrence
      of
      a Change of Control:

     

    
      
        
        

      

      
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    A. the
      assignment to Executive, without Executive’s written consent, of any duties
      materially inconsistent with his positions, duties, responsibilities and status
      with Employer, or a change in Executive’s reporting responsibilities, titles or
      offices or any plan, act, scheme or design to constructively terminate
      Executive, except in connection with the termination by Employer for Cause
      or
      Permanent Disability or as a result of Executive’s death or voluntary
      resignation;;
      provided, however, the change which is the result of Employer becoming an entity
      which is a subsidiary to one or more entities, public or private, will not,
      by
      itself, constitute Good Reason;

     

    B. a
      reduction in Executive’s Base Salary or bonus opportunity; or

     

    C. a
      change,
      without Executive’s written agreement, in the location of Executive’s principal
      place of employment with Employer by more than 50 miles from the location where
      Executive was principally employed as of the signing of this Agreement and
      which
      is not closer to Executive’s principal residence at that time.

     

    (iv) It
      is the
      intention of Employer and Executive that no portion of any payment under this
      Agreement, or payments to or for the benefit of Executive under any other
      agreement or plan, be deemed to be an “Excess Parachute Payment” as defined in
      Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
      or
      its successors. It is agreed that the present value of and payments to or for
      the benefit of Executive in the nature of compensation, receipt of which is
      contingent on the Change of Control of Employer, and to which Section 280G
      of
      the Code applies (in the aggregate “Total
      Payments”)
      shall
      not exceed an amount equal to one dollar ($1.00) less than the maximum amount
      which Employer may pay without loss of deduction under Section 280G(a) of the
      Code. Present value for purposes of this Agreement shall be calculated in
      accordance with Section 280G(d)(4) of the Code. Within 90 days following the
      earlier of (A) the giving of the notice of termination or (B) the giving of
      notice by Employer to Executive of its belief that there is a payment or benefit
      due Executive which will result in an excess parachute payment as defined in
      Section 280G of the Code, Executive and Employer, at Employer’s expense, shall
      obtain the opinion of such legal counsel and certified public accountants as
      Executive may choose (notwithstanding the fact that such persons have acted
      or
      may also be acting as the legal counsel or certified public accountants for
      Employer), which opinions need not be unqualified, which sets forth (I) the
      amount of the “Base
      Period Income”
of
      Executive, (II) the present value of Total Payments and (III) the amount and
      present value of any excess parachute payments. In the event that such opinions
      determine that there would be an excess parachute payment, the payment hereunder
      or any other payment determined by such counsel to be includable in Total
      Payments shall be modified, reduced or eliminated as specified by Executive
      in
      writing delivered to Employer within 60 days of Executive’s receipt of such
      opinions or, if Executive fails to so notify Employer, then as Employer shall
      reasonably determine, so that under the method of calculation set forth in
      such
      opinions there will be no excess parachute payment. The provisions of this
      subparagraph, including the calculations, notices and opinions provided for
      herein shall be based upon the conclusive presumption that (y) the compensation
      and benefits provided for in Section
      3
      hereof
      and (z) any other compensation earned by Executive pursuant to Employer’s
      compensation programs which would have been paid in any event, are reasonable
      compensation for services rendered, even though the timing of such payment
      is
      triggered by the Change of Control; provided,
      however,
      that in
      the event such legal counsel so requests in connection with the opinion required
      by this subparagraph, Executive and Employer shall obtain, at Employer’s
      expense, and the legal counsel may rely on in providing the opinion, the advice
      of a firm of recognized executive compensation consultants as to the
      reasonableness of any item of compensation to be received by Executive. In
      the
      event that the provisions of Sections 280G and 4999 of the Code are repealed
      without succession, this subparagraph shall be of no further force or
      effect.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Section
      6. Restrictive
      Covenant.

     

    (a) Restrictive
      Covenant.
      Executive acknowledges and recognizes the highly competitive nature of the
      businesses of Employer and its affiliates and accordingly agrees as
      follows:

     

    (i) During
      the term of Executive’s employment and, for a period of one year following the
      date Executive ceases to be employed by Employer for any reason (the
“Restricted
      Period”),
      Executive will not, whether on Executive’s own behalf or on behalf of or in
      conjunction with any person, firm, partnership, joint venture, association,
      corporation or other business organization, entity or enterprise whatsoever
      (“Person”),
      directly or indirectly solicit or assist in soliciting in competition with
      Employer; the business of any client or prospective client:

     

    A. with
      whom
      Executive had personal contact or dealings on behalf of Employer during the
      one
      year period preceding Executive’s termination of employment;

     

    B. with
      whom
      employees reporting to Executive had had personal contact or dealings on behalf
      of Employer during the one year immediately preceding Executive’s termination of
      employment; or

     

    C. for
      whom
      Executive had direct or indirect responsibility during the one year immediately
      preceding Executive’s termination of employment.

    

    (ii) During
      the Restricted Period, Executive will not directly or indirectly:

     

    A. engage
      in
      any business that competes with the business of Employer or its affiliates
      (including, without limitation, businesses which Employer or its affiliates
      have
      specific plans to conduct in the future and as to which Executive is aware
      of
      such planning) in any county of any state of the United States or a comparable
      jurisdiction of Israel where Employer or its affiliates researches, develops,
      manufactures, produces, sells, leases, rents, licenses or otherwise provides
      its
      products or services (“Competitive
      Business”);

     

    B. enter
      the
      employ of, or render any services to, any Person (or any division or controlled
      or controlling affiliate of any Person) who or which engages in a Competitive
      Business;

     

    C. acquire
      a
      financial interest in, or otherwise become actively involved with, any
      Competitive Business, directly or indirectly, as an individual, partner,
      shareholder, officer, director, principal, agent, trustee or consultant;
      or

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    D. interfere
      with, or attempt to interfere with, business relationships (whether formed
      before, on or after the date of this Agreement) between Employer or any of
      its
      affiliates and customers, clients, suppliers or investors of Employer or its
      affiliates.

     

    (iii) Notwithstanding
      anything to the contrary in this Agreement, Executive may, directly or
      indirectly own, solely as an investment, securities of any Person engaged in
      the
      business of Employer or its affiliates which are publicly traded on a national
      or regional stock exchange or on the over-the-counter market if Executive
      (A) is not a controlling person of, or a member of a group which controls,
      such Person and (B) does not, directly or indirectly, own five percent (5%)
      or more of any class of securities of such Person.

     

    (iv) During
      the Restricted Period, Executive will not, whether on Executive’s own behalf or
      on behalf of or in conjunction with any Person, directly or
      indirectly:

     

    A. solicit
      or encourage any employee of Employer or its affiliates to leave the employment
      of Employer or its affiliates; or

     

    B.  hire
      any
      such employee who was employed by Employer or its affiliates as of the date
      of
      Executive’s termination of employment with Employer, or who left the employment
      of Employer or its affiliates coincident with, or within one year prior to
      or
      after, the termination of Executive’s employment with Employer, unless such
      employee has not been employed by Employer for a period of six
      months.

     

    (b) Remedies
      for Breach of Restrictive Covenant.
      Executive acknowledges that the restrictions contained in Section
      4
      (Confidentiality and Loyalty) and Section
      6
      (Restrictive Covenant) of this Agreement are reasonable and necessary for the
      protection of the legitimate business interests of Employer, that any violation
      of these restrictions would cause substantial injury to Employer and such
      interests, that Employer would not have entered into this Agreement with
      Executive without receiving the additional consideration offered by Executive
      in
      binding himself to these restrictions and that such restrictions were a material
      inducement to Employer to enter into this Agreement. 

     

    (c) Enforceability.
      It is
      expressly understood and agreed that although Executive and Employer consider
      the restrictions contained in this Section
      6
      to be
      reasonable, if a final judicial determination is made by a court of competent
      jurisdiction that the time or territory or any other restriction contained
      in
      this Agreement is an unenforceable restriction against Executive, the provisions
      of this Agreement shall not be rendered void but shall be deemed amended to
      apply as to such maximum time and territory and to such maximum extent as such
      court may judicially determine or indicate to be enforceable. Alternatively,
      if
      any court of competent jurisdiction finds that any restriction contained in
      this
      Agreement is unenforceable, and such restriction cannot be amended so as to
      make
      it unenforceable, such finding shall not affect the enforceability of any of
      the
      other restrictions contained herein.

     

    Section
      7. General
      Provisions.

     

    (a) Successors;
      Assignment. This
      Agreement shall be binding upon and inure to the benefit of Executive, Employer
      and his and its respective personal representatives, successors and assigns,
      and
      any successor or assign of Employer shall be deemed the “Employer” hereunder.
      Employer shall require any successor to all or substantially all of the business
      and/or assets of Employer, whether directly or indirectly, by purchase, merger,
      consolidation, acquisition of stock, or otherwise, by an agreement in form
      and
      substance satisfactory to Executive, expressly to assume and agree to perform
      this Agreement in the same manner and to the same extent as Employer would
      be
      required to perform if no such succession had taken place. At any time during
      the Term, Executive shall be entitled to assign all or a part of his rights
      and
      obligations hereunder to a Controlled Entity (as defined below) provided that
      (i) the Controlled Entity executes this Agreement upon such assignment and
      agrees to be bound by the provisions hereof, (ii) the Controlled Entity shall
      at
      all times after such assignment employ or otherwise retain the services of
      Executive, (iii) in addition to the Controlled Entity, Executive will remain
      personally bound by and subject to the restrictions and other provisions of
      Sections 4 and 6, (iv) the management services and other duties under Section
      2
      shall be rendered by the Controlled Entity only through Executive, and (v)
      the
      total cost to Employer shall be the same as if such services are rendered by
      Executive as an employee in of Employer (for example, if Employer would have
      incurred health insurance costs pursuant to Section 3(f) of $500 per month
      if
      Executive was an employee of Employer, then upon such assignment to a Controlled
      Entity, Employer shall pay the Controlled Entity such $500 per month). For
      purposes of this Section 7(a), a “Controlled
      Entity”
is
      an
      entity wholly-owned by Executive and/or members of the Executive’s immediate
      family. Upon such an assignment to a Controlled Entity, the term Base Salary
      shall include any other payments made to the Controlled Entity by Employer
      on a
      monthly basis, and any severance payment due under this Agreement shall be
      calculated to reflect such revised Base Salary.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (b) Entire
      Agreement; Modifications.
      This
      Agreement constitutes the entire agreement between the parties respecting the
      subject matter hereof, and supersedes all prior negotiations, undertakings,
      agreements and arrangements with respect thereto, whether written or oral.
      Except as otherwise explicitly provided herein, this Agreement may not be
      amended or modified except by written agreement signed by Executive and
      Employer.

     

    (c) Enforcement
      and Governing Law.
      The
      provisions of this Agreement shall be regarded as divisible and separate; if
      any
      of said provisions should be declared invalid or unenforceable by a court of
      competent jurisdiction, the validity and enforceability of the remaining
      provisions shall not be affected thereby. This Agreement shall be construed
      and
      the legal relations of the parties hereto shall be determined in accordance
      with
      the laws of the State of Israel without reference to the law regarding conflicts
      of law.

     

    (d) Arbitration.
      

     

    (i) Subject
      to Employer’s rights to seek specific performance pursuant to Section
      6(b),
      any
      other dispute or controversy arising under or in connection with this Agreement
      shall be settled exclusively by arbitration, conducted before a panel of three
      arbitrators, selected by the parties in accordance with Section 7(d)(ii) below,
      sitting in a location selected by Executive within 30 miles from the location
      of
      Employer’s main office, in accordance with the rules of the American Arbitration
      Association (“AAA”)
      then
      in effect. Judgment may be entered on the arbitrator’s award in any court having
      jurisdiction; provided,
      however,
      that
      Executive shall be entitled to seek specific performance of his right to be
      paid
      through the date of termination during the pendency of any dispute or
      controversy arising under or in connection with this Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (ii) Within
      ten days of the initiation of arbitration by either party, pursuant to this
      Section 7(d), Executive and Employer shall each appoint one arbitrator. If
      either party fails so to appoint an arbitrator within the time specified by
      this
      Section 7(d)(ii), the AAA shall make the appointment for such party. Within
      ten
      (10) days of the date on which both of the first two arbitrators have been
      appointed, the first two arbitrators shall appoint the third arbitrator. If
      within such ten (10) days the first two arbitrators shall not have agreed on
      the
      appointment of the third arbitrator, then the third arbitrator shall be
      appointed by the AAA. By whomever appointed, the third arbitrator shall serve
      as
      chair of the tribunal. 

     

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

     

    (f) Notices.
      Notices
      pursuant to this Agreement shall be in writing and shall be deemed given when
      received; and, if mailed, shall be mailed by United States registered or
      certified mail, return receipt requested, postage prepaid; and if to Employer,
      addressed to the principal headquarters of Employer, attention: Chief Executive
      Officer, with a copy to Barack Ferrazzano Kirschbaum Perlman & Nagelberg,
      333 W. Wacker Drive, Suite 2700, Chicago, Illinois 60606, attention: Gretchen
      Anne Trofa, Esq., or,
      if to
      Executive, to his home address set forth below Executive’s signature on this
      Agreement, or to such other address as the party to be notified shall have
      given
      to the other.

     

    (g) Good
      Faith.
      The
      parties will deal with each other in good faith with respect to this
      Agreement.

    

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

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

    
      	 	 	 	 
	
              EMPLOYER:

            	 	 	
              EXECUTIVE:

            
	 	 	 	 
	
              MODIGENE
                INC.

            	 	 	 
	 	 	 	
              /s/
                Shai Novik

            
	 	 	 	
              

              Shai
                Novik

            
	
              By: /s/
                Avri Havron   

            	 	 	
            
	
              
                

              

              Title: CEO    

            	 	 	
              Notice
                Address: 
                

              

              

              

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    NOTIFICATION
      TO EMPLOYEE OF EMPLOYMENT CONDITIONS

     

    Date:
      December 14, 2005

     

    
      	1.	
              Name
                of Employer: Modigene
                Inc.

            

    

    Legal
      Entity: Company

    Identification
      Number: ____________

    Address:
      8000 Towers Crescent Drive, Suite 1300, Vienna, VA 22182

     

    Name
      of
      Employee: Shai Novik

    Identification
      Number: 22280069

    Address:
      30 Anni-Maamin Street, Ramat-Hasharon, Israel

    

    
      	2.	
              Date
                of Commencement of Employment: December 14,
                2005

            

    

    Term
      of
      Employment: 2 years, automatic renewal mechanism

    

    
      	3.	
              Main
                Responsibilities of the Employee:
                President

            

    

    

    
      	
              4.

            	
              Name
                of employee’s direct supervisor or direct supervisor’s title:
                Board

            

    

    

    
      	5.	
              The
                basis upon which employee’s salary is made:
                monthly.

            

    

     

    
      	
              6.

            	
              The
                aggregate fixed payments (gross) to be made to Employee in accordance
                with
                the base salary is US$16,250, to be paid either in US dollars, or
                at
                the equivalent in NIS to be calculated in accordance with the applicable
                exchange rate published by Bank Israel at the day of payment (the
                “Salary”). All payments to be made to Employee as compensation are as
                follows: 

            

    

    

    
      	
              Fixed
                Payments

            
	
              Payment
                Type

            	 	
              Timing
                of payment

            
	
              Salary
                (gross) US$16,250 (inclusive of all such payments that the Company
                is
                required to pay under any applicable law except for those payments
                indicated herein)

            	 	
              In
                accordance with the Company’s normal payroll
                procedures.

            
	 	 	 
	
              Recreation
                Pay (Dmei Havraa)

            	 	
              Once
                a year in accordance with applicable law, if required

            
	 	 	 
	
              Signing
                Bonus of $50,000 at signing, and $50,000 within 12 months

            	 	
              Within
                12 months

            
	 	 	 
	
              Variable
                Payments

            	 	 
	 	 	 
	
              Annual
                bonus of 50% of annual Base Salary 

            	 	
              Annual

            

    

    

    
      	
              7.

            	
              Your
                working week shall consist of 43 hours. As your position in the Company
                requires a special degree of personal trust, you may be required
                to work
                overtime and on days of rest. 

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	8.	
              The
                rest day is Friday and Saturday.

            

    

    

    
      	
              9.

            	
              You
                declare and agree that the Company’s rules and regulations, as shall be
                adjusted from time to time by the Company in its sole discretion,
                shall
                apply to your employment with the Company and shall be part of the
                terms
                and conditions of your employment with the
                Company.

            

    

    

    
      	
              10.

            	
              The
                employer is not, nor is an association that the employer belongs
                to, a
                party to a collective agreement that address the employment terms
                of the
                employee.

            

    

     

    This
      notification is not an employment agreement, but rather an employer notification
      regarding the main terms and conditions of employee’s employment with the
      Company; this notification is without prejudice to employee’s rights pursuant to
      applicable law, any extension order, any collective agreement and his/her
      employment agreement.

     

    
      	SIGNATURE OF EMPLOYER:	 	 	DATE:
	 	 	 	 
	 	 	 	 
	
              /s/ Avri
                Havron   

            	 	 	 
	
              
 	 	 	 
	 	 	 	 
	SIGNATURE OF EMPLOYEE:	 	 	DATE:
	 	 	 	 
	 	 	 	 
	
              /s/
                Shai Novik

            	 	 	 
	
              
 	 	 	 

     

    
      
        
        

      

      
        16Exhibit
      10.8

    FIRST
      AMENDMENT TO EMPLOYMENT AGREEMENT

     

    This
      First Amendment to Employment Agreement (this “Amendment”)
      is
      made as of this ___ day of July, 2006 by and between MODIGENE INC., a Delaware
      corporation (“Employer”),
      and
      SHAI NOVIK (“Executive”),
      and
      amends that certain Employment Agreement, dated December 14, 2005, between
      Employer and Executive (as amended, restated, supplemented or modified from
      time
      to time, the “2005
      Agreement”).
      

     

    RECITALS:

     

    A. The
      parties desire to modify certain provisions of the 2005 Agreement concerning
      the
      termination of Executive’s employment, Executive’s compensation, severance and
      responsibilities.

     

    B. Pursuant
      to Section 7(b) of the 2005 Agreement, the parties desire to enter into this
      Amendment. 

     

    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree to the following amendments to the 2005
      Agreement:

     

    AGREEMENT:

     

    1.  Amendment
      to Section 2.
      The
      second to the last sentence of Section 2 of the 2005 Agreement is hereby
      deleted and replaced with the following :

     

    "Executive's
      duties and authority shall consist of and include all duties and authority
      customarily performed and held by persons holding equivalent positions with
      business organizations similar in nature and size to Employer, including but
      not
      limited to being an active spokesman for the Company and its products, as such
      duties and authority are reasonably defined, modified and delegated from time
      to
      time by the Board."

     

    2.  Amendment
      to Section 3(a).
      The
      first sentence of Section 3(a) of the 2005 Agreement is hereby deleted and
      replaced with the following two sentences:

     

    Executive
      shall receive an aggregate annual minimum base salary at the rate of One Hundred
      and Ninety-Five Thousand Dollars ($195,000) payable in equal monthly
      installments of $16,250 or otherwise in accordance with the regular payroll
      schedule of Employer (as the same may be increased, “Base
      Salary”).
      Effective and conditioned upon the closing of a funding into Employer of not
      less than $7,000,000 in gross proceeds, the Base Salary shall be increased
      as of
      such closing to an aggregate annual minimum base salary at the rate of Two
      Hundred Five Thousand Dollars ($205,000) payable in equal monthly installments
      of $17,083.33 or otherwise in accordance with the regular payroll schedule
      of
      Employer.”

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.  Amendment
      to Section 5(a).
      The
      first three sentences of Section 5(a) of the 2005 Agreement shall be deleted
      in
      their entirety and replaced with the following:

     

    If
      Executive voluntarily terminates his employment under this Agreement prior
      to
      the expiration date of the applicable Term, other than pursuant to Section
      5(f)
      (Change of Control), then Employer shall only be required to pay Executive
      such
      Base Salary, accrued vacation and unpaid expenses as shall have accrued through
      the effective date of such termination and the Signing Bonus (to the extent
      not
      previously paid), and Employer shall not be obligated to pay any Performance
      Bonus for the then current fiscal year of Employer, or have any further
      obligations to Executive. Executive shall provide Employer a 30-day notice
      prior
      to such voluntary termination. If the Term expires (including after any
      Automatic Extension) as the result of Employer delivering notice under Section
      1
      of Employer’s desire not to extend the Term, then Employer shall continue to pay
      Executive his Base Salary for the 12-month period following such expiration
      of
      the Term, together with accrued vacation and unpaid expenses as shall have
      accrued through the expiration date of the Term and the Signing Bonus (to the
      extent not previously paid). If the Term expires (including after any Automatic
      Extension) as the result of Executive delivering notice under Section 1 of
      Executive’s desire not to extend the Term, then Employer shall only be required
      to pay Executive such Base Salary, accrued vacation and unpaid expenses as
      shall
      have accrued through the effective date of such termination and the Signing
      Bonus (to the extent not previously paid). If the Term expires (including after
      any Automatic Extension), regardless of whether as the result of Executive
      or
      Employer delivering notice under Section 1 of his or its desire not to extend
      the Term, Employer shall be obligated to pay the Performance Bonus (as
      determined by Section 3 above), if any, for the then current fiscal year of
      Employer. 

     

    4.  Amendment
      to Section 5(b).
      The
      words “nine-month period” in each of the first and second sentences of Section
      5(b) of the 2005 Agreement shall be replaced with the words “12-month
      period”.

     

    5.  Amendment
      to Section 5(f)(i).
      The
      words “nine months” in the first sentence of Section 5(f)(i) of the 2005
      Agreement shall be replaced with the words “twelve months”.

     

    6.  Revised
      Notification under Israeli Law.
      In the
      event that the Base Salary is increased pursuant to Section 1 of this Amendment,
      Employer agrees to deliver to Employee, and both parties agree to sign, a
      revised Notification to Employee of Employment Conditions (in the form attached
      to the 2005 Agreement), reflecting such increase.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    7.  Effectiveness.
      The
      amendments to the 2005 Agreement contemplated by this Amendment shall be deemed
      effective immediately upon the full execution of this Amendment, without any
      further action required by the parties hereto. 

     

    8.  The
      Agreement.
      All
      references in the 2005 Agreement to the term “Agreement” shall be deemed to
      refer to the 2005 Agreement referenced in, and as amended by, this
      Amendment.

     

    9.  Amendment
      and 2005 Agreement to be Read Together.
      This
      Amendment amends and is part of the 2005 Agreement, and the 2005 Agreement
      and
      this Amendment shall henceforth be read together and shall constitute the
      Agreement. Except as otherwise set forth herein, the 2005 Agreement shall remain
      in full force and effect.

     

    10.  Headings.
      Headings used in this Amendment are for convenience only and shall not affect
      the construction or interpretation of the 2005 Agreement or this
      Amendment.

     

    11.  Counterparts.
      This
      Amendment may be executed by facsimile and in one or more counterparts, each
      of
      which shall be deemed an original, and all of which together shall constitute
      one and the same instrument.

     

    [The
      Remainder of this Page is Intentionally Left Blank]

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Amendment as of the day
      and
      year first written above.

     

    
      	
              EMPLOYER:

            	 	 	
              EXECUTIVE:

            
	 	 	 	 
	
              MODIGENE
                INC.

            	 	 	 
	 	 	 	 
	
              By:  
                /s/
                Avri Havron

            	 	 	
              /s/
                Shai Novik

            
	
              
                

              

              Name:
                Avri
                Havron

            	 	 	
              

              Shai
                Novik

            
	
              Title:
                CEO

            	 	 	
              Notice
                Address:

            
	 	 	 	 
	 	 	 	___________________________________________
	 	 	 	___________________________________________ 
	 	 	 	___________________________________________

    

     

    Ö

     

    
      
         

      

      
        S-1

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