UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 1, 2014

ORGENESIS INC.
(Exact name of registrant as specified in its charter)

Nevada 000-54329 980583166
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)

21 Sparrow Circle, White Plains, NY 10605
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: +972.4.824.2051

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))


2

Item 1.01 Entry into a Material Definitive Agreement.

On August 1, 2014, we entered into a financial consulting agreement with Eventus Consulting, P.C., an Arizona professional corporation, pursuant to which Eventus has agreed to provide financial consulting and shareholder communication services to our company. In consideration for Eventus’ services, we have agreed to pay Eventus a rate of $175 per hour for all work performed by senior staff and $65 per hour for support staff for other accounting and bookkeeping services.

The term of the consulting agreement is for a period of one year from August 1, 2014 and shall automatically renew for additional one year periods upon the expiration of the term unless otherwise terminated.

For a complete description of all of the terms and conditions of the agreement please refer to the consulting agreement which is filed as exhibit 10.1 to this current report on Form 8-K.

The information required by this Item pursuant to the employment agreement with Neil Reithinger is included under Item 5.02 of this current report on Form 8-K.

Item 3.02 Unregistered Sales of Equity Securities.

The information required by this item is included under Item 5.02 of this current report on Form 8-K.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Effective August 1, 2014 Joseph Tenne resigned as our Chief Financial Officer, Treasurer and Secretary. Mr. Tenne’s resignation was not as a result of any disagreement with our company operations, policies or practices but for personal reasons. Mr. Tenne will remain as Chief Financial Officer of our Israeli subsidiary, Orgenesis Ltd.

On August 1, 2014 we appointed Neil Reithinger as our Chief Financial Officer, treasurer and Secretary pursuant to an employment agreement which has the following terms:

  (a)

payment of a monthly salary of $1,500.00;

     
  (b)

payment of an annual bonus as determined by our company in our sole discretion;

     
  (c)

participation in our company’s pension plan;

     
  (d)

a grant of 200,000 stock options exercisable at the current market price of $0.50 for a period of 5 years, and which are subject to vesting provisions; and

     
  (e)

reimbursement of expenses.

For a complete description of all of the terms and conditions of the agreement please refer to the form of employment agreement which is filed as exhibit 10.2 to this current report on Form 8-K.


3

Neil Reithinger is the Founder and President of Eventus Advisory Group, LLC, a private, CFO-services firm incorporated in Arizona, that specializes in capital advisory and SEC compliance for publicly-traded and emerging growth companies. He is also the President of Eventus Consulting, P.C., a registered CPA firm in Arizona. Prior to forming Eventus, Mr. Reithinger was COO & CFO from March 2009 to December 2009 of New Leaf Brands, Inc. [OTC:NLEF], a branded beverage company, CEO of Nutritional Specialties, Inc. from April 2007 to October 2009, a nationally distributed nutritional supplement company that was acquired by Nutraceutical International, Inc. [NASDAQ: NUTR], Chairman, CEO & President of Baywood International, Inc. from January 1998 to March 2009, a publicly-traded nutraceutical company and Controller of Baywood International, Inc. from December 1994 to January 1998.

Mr. Reithinger earned a B.S. in Accounting from the University of Arizona and is a Certified Public Accountant. He is a Member of the American Institute of Certified Public Accountants and the Arizona Society of Certified Public Accountants.

There are no family relationships between Mr. Reithinger and our board of directors.

Item 9.01 Financial Statements and Exhibits.

10.1

Consulting Agreement dated August 1, 2014 with Eventus Consulting, P.C.

10.2

Employment Agreement dated August 1, 2014 with Neil Reithinger

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ORGENESIS INC.

By:

/s/ Vered Caplan
Vered Caplan
Interim President ,Chief Executive Officer and
Chairperson of the board of directors
 
August 5, 2014



FINANCIAL CONSULTING AGREEMENT

     This Financial Consulting Agreement (this “Agreement”) is made effective as of this 1st day of August, 2014 (the “Effective Date”) by and between Orgenesis, Inc., a Nevada corporation (the “Company”), and Eventus Consulting, P.C., an Arizona professional corporation (“Eventus”), collectively known as the “Parties” and each singularly as “Party.”

      WHEREAS, Eventus is a consulting firm that provides consulting services including, but not limited to, accounting services, consultation on public filings, as well as finance department creation, organization, implementation and maintenance. Eventus is willing to provide services to the Company and the Company desires to have such services provided by Eventus; and

      WHEREAS, the Company is a development stage company with a novel therapeutic approach in the treatment of diabetes by correcting malfunctioning organs with new functional tissues created from the patient’s own existing organs.

      NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, agree as follows:

1. DESCRIPTION OF SERVICE . Eventus shall advise the Company so that the Company may develop a plan for the management of the financial reporting requirements of the Company as required under the Securities Exchange Act of 1934. With respect to the terms used herein, “SEC Counsel” is assumed to mean a law firm qualified in the areas of securities law and compliance for publicly-traded companies, and the term “Auditor” is assumed to mean a qualified independent public accounting firm that is registered with the Public Company Accounting Oversight Board. With respect to this Agreement, Eventus shall perform the following:

     (a) Internal Accounting & Financial Consulting

     In collaboration with the Company’s Chief Executive Officer and/or Chief Financial Officer, Eventus shall assist in evaluating the experience and competency of the current accounting and financial environment and staffing of the Company. With respect to this evaluation, Eventus shall assist the Chief Executive Officer and Chief Financial Officer in identifying the competencies and deficiencies in that environment and amongst the staff so that Eventus can operate effectively with respect to its duties and objectives set forth in this Agreement. Based on the above evaluation and in collaboration with the Chief Financial Officer, Eventus shall assist the Company to sufficiently do the following:

                    (i) Maintain a competent accounting and finance staff;

                    (ii) Assist in running its day-to-day accounting operations;

                    (iii) Prepare monthly, quarterly, and annual financial statements;

                    (iv) Assess, design and set up accounting systems to facilitate the effective and efficient recording of accounting transactions;

                    (v) Monitor adherence to established operating procedures and internal controls;

1 | P a g e Eventus Initials _______ Company Initials __________
Copyright © Eventus Consulting, P.C. 2014


                    (vi) Prepare/review general ledger accounts and assess the integrity and accuracy of accounts;

                    (vii) Manage and perform accounting and month-end and year-end closing;

                    (viii) Manage fixed asset accounting and reporting; (ix) Manage cash flows, collections and payments subject to supervision by Chief Financial Officer and/or Chief Executive Officer;

                    (x) Provide management with financial and operational information and provide quarterly Board of Director reports;

                    (xi) Review and analyze results for operational management; and

                    (xii) Prepare support schedules for year-end work papers and financial statement audits.

     With respect to this Section 1(a), Eventus is not providing any attest functions, as more specifically defined under N.Y. EDN. LAW § 7401-a. The financial statements of the Company are the responsibility of the Company’s management, and any conclusions about the reliability of such financial statements remains solely as the responsibility of the Company’s Auditor.

     (b) Financial Consulting & Compliance

     In collaboration with the Company’s finance staff, Auditor and SEC Counsel, Eventus shall:

                    (i) Assist in the planning, preparing and scheduling the timely completion of all Company public filings including, but not limited to, at the request of the management of the Company, the following: Form S-1, Form 10, Form 10-K, Form 10-Q, Form 8-K, and preliminary and definitive proxy statements;

                    (ii) Assist the Company in planning and managing the finances of the entire organization;

                    (iii) Plan and recommend financing structures for raising capital for major initiatives or acquisitions;

                    (iv) Identify appropriate areas of financial due-diligence for any merger and acquisition activities;

                    (v) Assist the Company in identifying its goals and objectives in managing the Company’s finance and accounting staff;

                    (vi) Assist the Company in preparing for any annual financial statement audits and quarterly reviews;

                    (vii) Research and stay abreast of the latest regulatory trends and latest financial accounting reporting trends; and

                    (viii) Assist in developing a system to monitor the Company’s financial processes, policies, and personnel who will assist the Company in maintaining compliance with accepted financial accounting standards, including Sarbanes-Oxley requirements.

2 | P a g e Eventus Initials _______ Company Initials __________
Copyright © Eventus Consulting, P.C. 2014


     With respect to this Section 1(b), Eventus is not providing any attest functions, as more specifically defined under N.Y. EDN. LAW § 7401-a. The financial statements of the Company are the responsibility of the Company’s management, and any conclusions about the reliability of such financial statements remain solely as the responsibility of the Company’s Auditor.

     (c) Press Releases and Shareholder Communications

     Eventus shall assist the management of the Company in how it communicates its business and any material events with existing shareholders and the investing public. With regard to this section, Eventus shall, in collaboration with Company’s SEC Counsel:

                    (i) Assist the Company in composing press releases for the announcement of material events. Management and SEC Counsel will review and approve all press releases before public dissemination;

                    (ii) Coordinate the distribution of final press releases according to the day and time that the Company specifies and in accordance with Securities and Exchange Commission (“SEC”) rules and regulations;

                    (iii) Together with the Company’s management and SEC Counsel, generate a Two (2) to Three (3) page corporate profile, which clearly articulates the Company’s current business and financial position, as well as its strategy for future growth; and

                    (iv) Assist the Company in updating its investor package and investor information for dissemination to investors and shareholders.

With respect to this Section 1(c), Eventus shall not act as an underwriter, broker-dealer, auditor or legal counsel for the Company in the creation and/or dissemination of these shareholder or investor documents.

2. PERFORMANCE OF SERVICES. Eventus shall reasonably determine the manner in which all services to be provided herein are to be performed and the specific hours that will be reasonably necessary to ensure the performance of the services provided.

3. LIMITATIONS; SCOPE OF SERVICES. Eventus does not render legal advice, tax advice, auditing or attest services or investment advice, irrespective of its principals’, employees’ or agents’ professional backgrounds. Eventus is providing consulting services to the Company regarding the Company’s organization, structure, financial reports and operation of its financial information department to facilitate the reporting of such information in compliance with state and federal securities laws. The Company agrees to obtain independent advice from its SEC Counsel and its Auditors regarding the adequacy of all information that is disclosed to third parties and investors. Payments made as per this Agreement are for the services described herein for the Company only. If attending investor meetings or phone/conference call conversations with investors, Eventus shall comment on the services it provides, but shall not comment on the Company’s financial information except as set forth by the Auditor. It is the Company’s and management’s complete and exclusive responsibility to comply with all financial reporting requirements established under all federal and state securities laws, rules, and regulations.

3 | P a g e Eventus Initials _______ Company Initials __________
Copyright © Eventus Consulting, P.C. 2014


4. RESPONSIBILITIES OF THE COMPANY. The Company shall, at all times, have the sole responsibility of gathering, recording, and maintaining all relevant financial information relating to the Company’s operations. It is the Company’s sole responsibility to provide Eventus with complete and accurate information in order for Eventus, its employees, agents, and consultants to fulfill its duties under this Agreement. The representations made within any documents produced in conjunction with the Company are the sole responsibility of the Company. Eventus shall rely upon the accuracy and completeness of information supplied to it by the Company’s officers, directors, agents, and employees. Furthermore, by executing this Agreement, the Company represents that it has disclosed and will disclose, during the course of this engagement, all information to Eventus that could in fact limit or be construed to limit Eventus’ ability to perform its duties hereunder. The Company shall be solely responsible for the retention of its legal counsel, independent registered public accounting firm, and any other professional which may be needed to obtain any opinions regarding the Company’s compliance with applicable state and federal securities laws. The Company shall additionally be solely responsible for any actions it may take regarding the hiring, promotion, termination, assignment of responsibilities, and other similar tasks relating to the personnel used by the Company in the gathering, recording, and retention of financial information.

5. FEES. For all services described hereunder, Eventus shall be paid at the rate of One Hundred Seventy-Five ($175) per hour for all work performed by senior staff and Sixty-Five ($65) per hour for support staff for other accounting and bookkeeping services. The Company shall pay Five Thousand Dollars ($5,000) to Eventus monthly, beginning upon the Effective Date, which Eventus will keep on retainer and subtract the hourly rate as work is performed. Any retainer amount left over at the end of the month will be added to the following month’s retainer of Five Thousand Dollars ($5,000) once paid. After One Hundred Twenty (120) days from the Effective Date, Eventus shall compare to total hours billed with the total paid and then confer with the Company on any variances, if any, and how to reconcile them.

6. TIMING. The timing of services to be performed under this Agreement is highly dependent on the cooperation, efficiency and availability of documents and information from the Company. Document production and availability of Company personnel or other representatives shall be determined by and between the Parties. Each Party shall cooperate fully, and on a best efforts basis, in order to satisfy any time-table established, by and between the Parties, but is not to be considered a guarantee, warranty (implied or expressed) that a time-table will be met.

7. INDEPENDENT CONTRACTOR. The relationship between Eventus and the Company is solely that of an independent contractor and nothing contained herein shall be deemed to have created, by interpretation or implication, a relationship of employment, partnership, joint venture or agency. Eventus shall take no actions and make no statements that are inconsistent with its role as an independent contractor. All services rendered by Eventus on behalf of the Company shall be performed to the best of Eventus’ ability in concert with the overall business plan of the Company and the goals and objectives of the management and board of directors of the Company.

4 | P a g e Eventus Initials _______ Company Initials __________
Copyright © Eventus Consulting, P.C. 2014


8. EXPENSES. The Company shall reimburse all reasonable approved out-of-pocket expenses incurred on behalf of Eventus in connection with this Agreement as mutually agreed upon by the Parties. Expenses may include travel and administrative expenses incurred during the Term of the Agreement and any other fees associated with the execution of this Agreement. Any single expense over Five Hundred Dollars ($500) within a calendar month or monthly fees in excess of One Thousand Dollars ($1,000) shall be subject to pre-approval by the Company. All requests for reimbursement shall be made in writing. Any expense item that has not been objected to by the Company shall be paid within Ten (10) business days of the date of submission. Any objection shall be in writing, explaining the basis for the objection.

9. NON-CIRCUMVENT AND NON-DISCLOSURE.

     (a) The Parties mutually recognize that the services described in this Agreement are confidential and that the business of each Party may be learned by the other and that the identity, address and/or telephone numbers of clients, agents, brokers, buyers, sellers, financiers, investors, consultants, experts, business plans, processes, intellectual property, bank accounts, transaction codes, all other capital sources, participating investment and commercial banks and/or entities (hereafter referred to as “Confidential Information”), which the other Party has acquired through years of time, expense and effort, shall be treated as confidential. Such Confidential Information shall remain the sole property of the contributing Party.

     (b) Notwithstanding the foregoing, Confidential Information shall not include information that (i) has become public knowledge through legal means without fault by the other Party, (ii) is already public knowledge prior to the disclosure of the Confidential Information by the other Party (iii) is known to the other Party prior to disclosure of the same pursuant to this Agreement, or (iv) is independently developed by the other Party without reference to or use of the Confidential Information. In addition, the Parties shall be entitled to release Confidential Information to permit it to prosecute or defend any claim under this Agreement or pursuant to an order of a court or government agency, provided, however, in the case of release pursuant to this section the Parties shall limit the release to the greatest extent reasonably possible under the circumstances and shall have provided the other Party with sufficient advance notice to permit the Company to seek a protective order or other order protecting its Confidential Information from disclosure.

     (c) For and in consideration of the mutual promises, assertions, and covenants set forth herein, the Parties agree to take all reasonable action to ensure the confidentiality of the other Party’s business and the other Party’s Confidential Information. The Parties will maintain complete confidentiality regarding each other’s business sources and/or their affiliates and Confidential Information, as well as the nature and manner and forms of the other Party’s business dealings, unless the other Party provides, in its sole discretion, an express written agreement providing otherwise. The Parties will not, in any way or manner, solicit or accept business from sources or their affiliates that are made available by the other Party to this Agreement, at any time or in any manner prior to One (1) year from the expiration of this Agreement, without the express written permission of the Party who made available said sources, in its sole discretion. Any violation of these covenants shall be deemed an attempt to circumvent such other Party, and the Party violating this covenant shall be liable for damages in favor of the circumvented Party and/or an injunction and/or other equitable remedies. Each Party agrees with the other that upon any breach of this Agreement, the Party in default will pay to the other the non-circumvention damages, if applicable, plus all loss and/or damage sustained by the non-defaulting Party by reason of such breach, plus a reasonable sum for attorney’s expenses and attorney’s fees.

5 | P a g e Eventus Initials _______ Company Initials __________
Copyright © Eventus Consulting, P.C. 2014


10. NO ASSURANCE. Due to factors that may exist and may occur during the term of this Agreement that are beyond the control of either the Eventus or the Company, Eventus can provide no assurance that the services described in this Agreement will be completed or effected and that, not withstanding certain factors, whether known or unknown, could have an impact on Eventus performing its duties hereunder including, but not limited to, market conditions, regulatory obstacles, economic conditions, access to the appropriate data or otherwise.

11. BREACH. Except as set forth in this Agreement, any claim or controversy arising under any of the provisions of this Agreement shall, at the election of either Party hereto, be determined by arbitration before the American Arbitration Association in New York, New York in accordance with the rules of the American Arbitration Association. The decision of the Arbitrator shall be binding and conclusive upon the Parties. The prevailing Party shall be entitled to recover its costs and expenses in any such arbitration and the costs of filing for the arbitration, including but not limited to, reasonable attorneys fees, as well as the fees of the arbitrator. In the event of a material violation of the provisions of this Agreement, as determined by a party in good faith, that Party may seek injunctive relief in state or federal court to compel the other to comply with, or restrain from violating such provision.

12. TERM; TERMINATION. The term (the “Term”) of this Agreement shall be for a period of One (1) year commencing on the Effective Date of this Agreement. The Term shall automatically renew for additional One (1) year periods upon the expiration of the Term unless otherwise terminated. This Agreement may be terminated by either Party upon Thirty (30) days prior written notice to the other Party hereto.

13. INDEMNIFICATION. The Parties agree to indemnify, hold harmless, and defend the other Party, its members, managers, officers, agents, and employees at its own expense, in respect to any action, proceeding, suit, cost expense, claim, or demand whatsoever that is brought by any third party, at law or in equity, in connection with the Company’s public filings under the Securities and Exchange Act of 1934, including, without limitation, the disclosure or failure to disclose any information to any third party. This obligation to indemnify shall include, but not be limited to, any and all costs incurred by either Party, including reasonable attorney’s fees. The Parties will not be liable under the foregoing to the extent that any loss, claim, damage, liability or expense is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from the other Party’s bad faith or gross negligence.

14. NOTICES. All notices and demands required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given, if delivered in person or mailed, certified, return-receipt requested, postage prepaid or by facsimile transmission. Mailed notices shall be deemed given three business days after the date mailed. Until otherwise specified by notice in writing, the address for such notices shall be:

  If to Eventus: Eventus Consulting, P.C.
    14201 N. Hayden Road, Suite A-1
    Scottsdale, AZ 85260
    Attn: Neil Reithinger, President
    Facsimile No.: (480) 659-6407
    E-Mail: nreithinger@EventusAG.com

6 | P a g e Eventus Initials _______ Company Initials __________
Copyright © Eventus Consulting, P.C. 2014



  If to the Company: Orgenesis, Inc.
    21 Sparrow Circle
    White Plains, NY 10605
    Attn: Ms. Vered Caplan, Interim CEO
    E-mail (for electronic): pbd-v@zahav.net.il
     
  With a copy to (which shall not constitute notice):
     
    Brinen & Associates, LLC
    7 Dey Street, Suite 1503
    New York, NY 10007

15. AMENDMENT. This Agreement may be modified or amended with the expressed and written consent of both Parties.

16. SEVERABILITY. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed and enforced as so limited.

17. APPLICABLE LAW. This Agreement is made in, and shall be exclusively governed by the laws of the State of New York (and applicable U.S. federal law) without regard to their choice of law principles. Venue for any arbitration or litigation brought in connection with this Agreement shall reside exclusively in New York, New York and both Parties hereby agree that such forum is convenient and waive any right to assert that the forum is not convenient.

18. BINDING AUTHORITY. Both signing individuals represent and warrant that they have full authority of their respective organizations to enter into this Agreement.

19. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the Parties with respect to its subject matter. This Agreement merges any and all prior and contemporaneous oral or written agreements and/or statements made by one Party to the other, and thus shall be considered the full and final binding agreement with respect to its subject matter. The Parties have not relied upon any representation or warranty not expressly contained within this Agreement.

      IN WITNESS WHEREOF, this Agreement is entered into by the following Parties, as of the Effective Date first written above.

EVENTUS CONSULTING, P.C. ORGENESIS, INC.
   
By: /s/ Neil Reithinger By: /s/ Vered Caplan
   
Name: Neil Reithinger Name: Vered Caplan
   
Title: President Title: CEO

7 | P a g e Eventus Initials _______ Company Initials __________
Copyright © Eventus Consulting, P.C. 2014



EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”) is made effective as of August 1, 2014 (the “Effective Date”) between Neil Reithinger (“Employee”) and Orgenesis, Inc., hereinafter referred to as (“ORGS” or the “Company”), who are hereinafter sometimes collectively referred to as “the parties” or singularly as a “party.”

WITNESSETH

WHEREAS , ORGS wishes to appoint Employee as the Company’s Chief Financial Officer and desires to memorialize his employment in this Agreement upon the terms and conditions set forth herein.

NOW, THEREFORE , in consideration of the mutual covenants contained herein, the parties hereto agree as follows:

1. Employment Services. ORGS hereby agrees to employ Employee as Chief Financial Officer and Employee hereby accepts such position under the terms and conditions set forth herein. Employee shall be subject to all the usual and customary office policies and procedures of the Company as may from time to time be established for Employees of similar grade and position.

2. Duties.

  (a)

Employee shall serve as the Chief Financial Officer of the Company during the Term (as defined below) of this Agreement. Employee shall carry out all assignments including:

       
  (i)

financial reporting, including preparation of financial statements, reports and disclosure documents, coordination with any outside accountant or auditor in the preparation of any regulatory disclosure documents, and certifying required Securities and Exchange Commission regulatory filings;

       
  (ii)

economic strategy and forecasting, including studying, analyzing and reporting on trends and opportunities for expansion and projection of future company growth and acquisitions or research which may involve handling press and public relations;

       
  (iii)

preparation and analyzing or preparing budgets for expansions, future projects, supervising investments and raising funds;

       
  (iv)

overseeing accounting which includes review and payment of expense reports and all other expenses and monitoring income of the Company and its subsidiaries;

       
  (v)

such other duties as are usual and typical for an employee of a company in similar positions and for the faithful discharge of such different or additional duties as may be reasonably established by management or the Board of Directors; and

       
  (vi)

review all communication the Company has with outside parties that may affect any and all existing and future investments and funding to the Company.

       
  (b)

Employee shall, if so requested by the Company, also serve for additional compensation, as an officer, director or manager of entities from time to time directly or indirectly owned or controlled by the Company (each an “Affiliate,” or collectively, the “Affiliates”).

3. Term. The term of the employment shall be for a One (1) year period commencing on the Effective Date (the “Term”), unless sooner terminated by the Company or Employee in accordance with the terms of this Agreement or pursuant to Section 6 below.

1


4. Extent of Services. Employee shall devote sufficient time, attention and energy to his duties hereunder and shall use his best efforts to promote the business of ORGS and/or its subsidiaries during the Term of this Agreement. Employee may engage in other activities, including serving on the Board of Directors of other corporations/organizations, and/or advising other corporations/organizations in each case to the extent that such activities do not materially detract from or limit the performance of Employee’s duties under this Agreement, or inhibit in any material way the business of ORGS and/or its subsidiaries. Employee shall perform all duties in a professional, ethical and businesslike manner.

5. Compensation and Benefits. As compensation for his services hereunder, during the Term of the Agreement, ORGS agrees:

  (a)

To make payments to Employee of One Thousand Five Hundred Dollars ($1,500.00) per month as compensation for his employment.

     
  (b)

To pay annual bonuses, if any bonuses are payable during the Term, which shall be determined by the Company, in its sole discretion, in an amount and upon such other performance criteria as shall be fixed by the Board of Directors based upon the performance of Employee and the Company during the same period.

     
  (c)

Employee shall be included in any pension plan in effect as of the date of this Agreement or affected thereafter. Employee’s participation as described in the sentence immediately preceding shall be in relation to Employee’s annual compensation as compared to any other individual’s participation based upon his annual compensation at the time of this Agreement.

     
  (d)

To grant Employee 200,000 stock options at the current market price of $0.50 which shall vest as to one quarter of such at the end of each three month period during the Term, provided the Employee remains an employee of the Company at the date of such vesting. Employee shall be eligible for future stock option and/or restricted stock grants, as may be determined by the Board of Directors of the Company from time-to-time.

     
  (e)

ORGS will reimburse Employee for his direct expenses in connection with his duties hereunder including, but not limited to, reasonable travel, entertainment and hotel expenses. Employee shall timely provide such receipts and other documentation of his expenses before any reimbursements will be paid.

6. Termination.

  (a)

This Agreement shall be terminated upon the happening of any of the following:


  (i)

at the cessation of ORGS’s business activities except as a result of a sale or merger;

     
  (ii)

upon the mutual consent of the parties hereto;

     
  (iii)

upon the death of Employee;

     
  (iv)

the termination of this Agreement for any reason or no reason by the Company upon Thirty (30) days prior written notice to Employee.

     
  (v)

the termination for any reason or no reason by Employee upon Thirty (30) days written notice to the Company. However, Employee cannot terminate this Agreement during a Restricted Period.

2



  (1)

“Restricted Period” shall mean the Thirty (30) day period immediately preceding the due date of a quarterly regulatory filing and the Sixty (60) day period immediately preceding the due date of an annual regulatory filing. The due date of the regulatory filing shall include any applicable extensions and extend until such quarterly or annual statement is filed.


  (b)

Termination by Company for Cause. “Cause” for the purpose of this Agreement is defined as (i) an intentional act of fraud, embezzlement, theft or any other material violation of law committed by Employee; (ii) damage to Company’s assets; (iii) disclosure of Company’s confidential information; (iv) breach of Employee’s obligations under this Agreement; (v) intentional engagement in any competitive activity which would constitute a breach of Employee’s duty of loyalty or of Employee’s obligations under this Agreement; (vi) breach of any of Company’s policies; (vii) the willful and continued failure to substantially perform Employee’s duties for Company (other than as a result of incapacity due to physical or mental illness); (viii) willful conduct by Employee that is materially injurious to Company, monetarily or otherwise, or (ix) failure to follow any written directives from the Board of Directors.

     
  (c)

If Employee is terminated under Section 6(a)(i)-(iv), Employee shall receive Three (3) months severance. If Employee is terminated under Section 6(a)(v) or 6(b) then Company shall pay Employee any earned but unpaid compensation as of the Date of this Termination within Thirty (30) days of such date. “Date of Termination” shall mean the final date of Employee’s employment, not the date of notice of termination.

7. Covenant not to Compete. Employee hereby covenants and agrees that during the Term of this Agreement and for a period of One (1) year after termination of such Agreement hereunder:

  (a)

Employee will not in any way, directly or indirectly, solicit, divert, take away or accept, the business of any of the customers, suppliers or service providers of ORGS during the Term of this Agreement for the purpose of selling to any such customer any product or service which was provided or offered by during the Term of this Agreement hereof.

     
  (b)

Employee will not directly or indirectly, attempt or seek to cause any of the foregoing customers, suppliers or service providers of ORGS to refrain from maintaining or acquiring from or through ORGS any products or services, or providing any products or services which were provided or offered by or to ORGS during the Term hereof, and will not assist any other person or persons to do so. Employee agrees that telephonic or written communication by him to any of the Parties described above shall constitute activity by Employee for the purposes of this Agreement.

     
  (c)

Employee will not enter into any contract with direct competitors of the Company or work for or consult direct competitors of the Company on topics relating to the Company’s business. The Recipient agrees that he will not engage in, directly or indirectly, and in any capacity whatsoever, or have any financial interest in, any business operation or in any party in competition with the Company.

     
  (d)

Attempt in any manner to persuade any investor or shareholder of the Company to cease investing or reduce any investment in the Company.

8. Non – Disclosure. Employee acknowledges that, in order for Employee to effectively perform his duties hereunder ORGS will disclose to Employee certain valuable trade secrets and confidential business information that has been created, discovered or developed by, or that otherwise has become known to ORGS as a result of substantial effort, expense and time incurred by ORGS or which has been assigned or otherwise conveyed. In light of such acknowledgement, Employee hereby agrees as follows:

3



  (a)

Trade Secrets. Employee hereby acknowledges that certain processes, formulas and mechanisms used by ORGS in its operation of its business, are not generally known to the public or to other persons engaged in businesses similar to its business and, as such constitute its trade secrets. Employee hereby agrees never to directly or indirectly disclose or use, or assist anyone else in disclosing or using such trade secrets to any person or entity other than as authorized in the regular course of the performance of this Agreement.

     
  (b)

Insider Trading and Company Policies. Employee acknowledges that the Company is a publicly traded company and agrees not to trade in the securities of the Company while in possession of material undisclosed information, and further agrees not to disclose any such information to any party except as permitted by the Company. Employee agrees to comply with all Company policies on insider trading and all other policies implemented by the Company from time to time.

     
  (c)

Confidential Information.


(i) Employee hereby agrees that during the Term of this Agreement and for a period of Two(2) years following termination of such employment, Employee will not divulge, disclose or make accessible to any person or entity the following confidential business information (“Confidential Information”) of ORGS, including but not limited to: (1) e-mail addresses, customer lists, the names of customer contacts, the names of investor contacts, investor lists, professional contacts, business plans, technical data, product ideas, personnel, contracts and financial information; (2) patents, trade secrets, techniques, formulas, formulations, components, ingredients, compounds, processes, business methodologies, schematics, employee suggestions, development tools and processes, computer printouts, computer programs, design drawings and manuals, and improvements; (3) information about costs, profits, markets and sales; (4) plans for future development and new product concepts; (5) data relating to studies, clinical trials, results of any studies or trials, regulatory applications, patients, research, development, procedures and treatment plans;(6) all documents, books, papers, drawings, models, sketches, and other data of any kind and description, including electronic data recorded or retrieved by any means, that have been or will be disclosed, as well as written or oral instructions or comments; and (7) any and all information provided to Recipient regarding the Company or conversations between the Recipient and a representative of the Company.

   
  (ii) Employee recognizes and acknowledges that:

  (1)

The Confidential Information is a valuable, special and unique asset of the Company and that disclosure of any Confidential Information would cause considerable harm to the Company’s operations and/or business reputation; and

     
  (2)

The disclosure of the Confidential Information to any other person or entity outside the Company or use of the Confidential Information by or on behalf of any other person or entity could result in irreparable harm to the Company.


  (iii)

Employee shall not disclose, use or in any way implement the Confidential Information to provide, enable or help others to provide services that are substantially similar to or competitive with any of the Company’s projects, products or services without the written consent of the Company or as otherwise required by law.

4



  (iv)

With respect to all Confidential Information, Employee shall:

       
  (1)

protect and safeguard the Confidential Information against unauthorized use, publication, or disclosure in any manner;

       
  (2)

not use any of Confidential Information except to perform the duties of Chief Financial Officer of the Company as set out in this Agreement;

       
  (3)

not, directly or indirectly, in any way, reveal, reverse engineer, de-compile, disassemble, report, publish, disclose, transfer or otherwise use any of the Confidential Information except as specifically authorized by the Company in accordance with this Agreement; and

       
  (4)

not restrict access to the Confidential Information to the Company’s officers, directors, or employees who need such access for a permitted use.

9. Property of ORGS. Employee agrees that upon termination of this Agreement, he will promptly deliver to ORGS all written and other materials in his possession or control which contain any of the trade secrets and confidential business information described in this Agreement and all other property of ORGS in his possession or control at such time, which was obtained from ORGS or complied or produced for ORGS during the Term of this Agreement, including, but not limited to: (a) records; data, plans, programs, invoices, flow charts, record layouts, computer printouts, magnetic tapes, diskettes, disks, card decks; (b) log-in and password information for all electronic formats including but not limited to: bank(s), QuickBooks, and payroll company; and (c) letters and customer lists.

10. Non-solicitation of Employees. During the Term of this Agreement and for One (1) year thereafter, Employee shall not hire or solicit for employment directly or through or on behalf of any party, any persons who are then employees of ORGS.

11. Relations with Third Parties and Representations of the Parties.

  (a)

Employee agrees that ORGS may make known to others, either during or subsequent to the Term of this Agreement, the existence of this Agreement and the provisions of all or any part hereof.

     
  (b)

Employee represents and warrants that:


  (i)

He is not in violation of any term of any employment contract, patent or other proprietary information disclosure agreement of any other contract, agreement or any judgment, decree or order of any court or administrative agency relating to or affecting his right to be retained by ORGS because of the nature of this business conducted or proposed to be conducted by ORGS or for any other reasons;

     
  (ii)

No such term, judgment, decree or order conflicts with his obligation to use his best efforts to promote the interests of ORGS nor does the execution and delivery of this Agreement, nor the carrying on of ORGS business conflict with any such term, judgment, decrees or order; and

     
  (iii)

Neither he nor any of his affiliates (as that term is defined under the Securities Act of 1933) are a party to any transaction, agreement or understanding to which ORGS is also a party except this Agreement or any agreement executed hereunder, nor does he or any of his affiliates have any interest in any person or entity with whom ORGS does or intends to do business.

5



  (c)

ORGS hereby makes the following representations in connection with this Agreement:


  (i)

ORGS is a corporation duly organized and validly existing by virtue of the laws of the state of its incorporation and is in good standing under the laws thereof.

     
  (ii)

The execution of this Agreement by ORGS and the performance by it of the covenants and undertakings hereunder have been duly authorized by all requisite corporate action, and approved by the Board of Directors and ORGS has the corporate power and authority to enter into this Agreement and perform the covenants and undertakings to be performed by it hereunder and is under no other impediment which would adversely affect its ability to consummate or prohibit it from meeting its obligation hereunder.

     
  (iii)

This Agreement has been duly authorized, executed and delivered by ORGS and constitutes a valid and legally binding obligation of ORGS enforceable in accordance with its terms.

12. Remedies, Survival, and Severability.

  (a)

ORGS and Employee agree that in the event of breach of any of the covenants, agreements or obligations under Sections 4, 7, 8, 9, 10 and 11 thereof, remedies at law would be inadequate and either party may seek injunctive relief as well as damages.

     
  (b)

The covenants, agreements, representations, warranties and obligations contained in Sections 4, 7, 8, 9, 10 and 11 hereof shall survive the termination of this Agreement for the periods herein set forth.

     
  (c)

Each of the covenants, agreements and obligations contained in Sections 4, 7, 8, 9, 10 and 11 hereof shall be independent and severable from the others and should any be for any reason held illegal, invalid or unenforceable in whole or in part, said illegality, invalidity or unenforceability shall not affect the other covenants, agreements and obligations in said Sections.

     
  (d)

In the enforcement of their rights hereunder, ORGS and Employee shall return all of their rights under law or in equity to enforce the obligations of the other party hereunder or otherwise, and to seek relief for the acts of the other party subject to the terms of this Agreement.

13. Miscellaneous.

  (a)

This Agreement embodies the entire agreement of the parties hereto relating to the subject matter hereof. No amendment, modification, waiver or attempted waiver of this Agreement or any part hereof shall be valid or binding unless made in writing and signed by both parties.

     
  (b)

All questions concerning the construction, validity, and interpretation of this Agreement and the performance of the obligations imposed hereunder shall be governed by the laws of the State of New York, without giving effect to the conflict of law or choice of law provisions thereof. Any dispute, controversy or claim arising out of this Agreement shall be resolved in accordance with the rules of the Arbitration Association of America (“AAA”) applying New York law. Each Party hereby waives its right to seek any remedy or claim for relief in court, including such Party’s right to a jury trial. Notwithstanding the foregoing, any actions commenced under this Agreement shall be venued in either the United States District Court for the Southern District of New York, or in the Supreme Court of New York, New York County.

     
  (c)

Any notice required or permitted to be given pursuant to this Agreement shall be sufficiently given when delivered or if sent by Certified mail postage prepaid, return receipt requested, on the third day after such mailing, to the following address:

6


If to Orgenesis, Inc.:

21 Sparrow Circle
White Plains, NY 10605

If to Employee:

At the address set forth on the signature page.

or, as to each party, at such other address as shall be designated by such party in a written notice to the other party pursuant to the terms of this section.

  (d)

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

     
  (e)

The headings of the sections and subsections hereof have been inserted as a matter of convenience and shall not be used in the interpretation of any provisions of this Agreement.

     
  (f)

The failure of either party hereto in any one or more instances to insist upon the performance of any of the terms or conditions of this Agreement, or to exercise any rights or privileges conferred in this Agreement or the waiver by either party of any breach of any of the terms, covenants or conditions of this Agreement shall not be construed as thereafter waiving any such terms, conditions, rights, privileges or covenants, and the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

     
  (g)

Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. Further, to the extent that any term or provision hereof is deemed invalid, void or otherwise unenforceable, but may be made enforceable by amendment thereto, the parties agree that such amendment may be made so that the same shall, nevertheless, be enforceable to the fullest extent permissible under the laws and public policies applied in any such jurisdiction in which enforcement is sought.

14. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement under their seals as of the date and year first written above.

The Company: Employee:
Orgenesis, Inc.  
   
By: /s/ Vered Caplan /s/ Neil Reithinger
  Neil Reithinger
Name: Vered Caplan  
Title: Chairperson, Interim Chief Executive Officer Address: 14201 N. Hayden Road, Suite A-1,
  Scottsdale, AZ 85260

7