Exhibit 10.2


 


EMPLOYMENT AGREEMENT


 


This EMPLOYMENT AGREEMENT
(the “Agreement”), is entered into as of November 12, 2020, by and between Regencell Bioscience Holdings Limited,
incorporated under the laws of the Cayman Islands (the “Company”), and Yat-Gai Au, a holder of Hong Kong Identity Card
Number: [          ] (the “Executive”). Except with respect to the direct employment of the Executive by the Company, the
term “Company” as used herein with respect to all obligations of the Executive hereunder shall be deemed to include
the Company and all of its subsidiaries and affiliated entities (collectively, the “Group”).


 


RECITALS


 


A. The Company desires to employ the Executive
as its Chief Executive Officer and to assure itself of the services of the Executive during the term of Employment (as defined
below).


 


B. The Executive desires to be employed
by the Company as its Chief Executive Officer during the term of Employment and upon the terms and conditions of this Agreement.


 


AGREEMENT


 


The parties hereto agree as follows:


 


1. POSITION



 


The Executive hereby
accepts a position of Chief Executive Officer (the “Employment”) of the Company.


 


2. TERM



 


	 	Subject to the terms and conditions of this Agreement, the initial term of the Employment shall be three (3) years, commencing on the closing date of the Company’s public offering of its Ordinary Shares in the U.S. (the “Effective Date”), unless terminated earlier pursuant to the terms of this Agreement. The Employment will be renewed automatically for additional 3-year terms if neither the Company nor the Executive provides a 1-month prior written notice of termination of the Employment to the other party, or otherwise proposes to renegotiate the terms of the Employment with the other party within three (3) months prior to the expiration of the applicable term, or unless the Employment is terminated earlier pursuant to the terms of this Agreement.


 


3. DUTIES AND RESPONSIBILITIES



 


		(a)	The
Executive’s duties at the Company will include all jobs assigned by the Company’s Board of the Directors (the “Board”).


 


		(b)	The
Executive shall devote all of his working time, attention and skills to the performance of his duties at the Company and shall
faithfully and diligently serve the Company in accordance with this Agreement, the Memorandum and Articles of Association of the
Company, as amended and restated from time to time (the “Charter Documents”), and the guidelines, policies and procedures
of the Company approved from time to time by the Board.


 


		(c)	The Executive shall use his best efforts to perform
his duties hereunder. The Executive shall not, without the prior written consent of the Board, become an employee of any entity
other than the Company and any subsidiary or affiliate of the Company, and shall not be concerned or interested in any business
or entity that engages in the same business in which the Company engages (any such business or entity, a “Competitor”),
provided that nothing in this clause shall preclude the Executive from holding any shares or other securities of any Competitor
that is listed on any securities exchange or recognized securities market anywhere if such shares or securities represent less
than 5% of the competitors outstanding shares and securities. The Executive shall notify the Company in writing of his interest
in such shares or securities in a timely manner and with such details and particulars as the Company may reasonably require.


         






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4. NO BREACH OF CONTRACT



 


The Executive hereby represents
to the Company that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive
of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement
or policy to which the Executive is a party or otherwise bound, except for agreements entered into by and between the Executive
and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no information (including, without
limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated
by, the Executive entering into this Agreement or carrying out his duties hereunder; (iii) that the Executive is not bound
by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s)
of the Group, as the case may be.


 


5.
Intentionally Omitted



 


6. COMPENSATION AND BENEFITS



 


		(a)	Base
Salary. The Executive shall draw a base salary of Hong Kong dollar one hundred (HK$100) per month during the Effective Date,
and such arrangement is subject to annual review and adjustment by the Board.


 


		(b)	Bonus.
The Executive shall not draw a bonus prior to and during the Effective Date, and such arrangement is subject to annual review
and adjustment by the Board.


 


		(c)	Equity
Incentives. To the extent the Company adopts and maintains a share incentive plan, the Executive will be eligible to participate
in such plan pursuant to the terms thereof as determined by the Board.


 


		(d)	Benefits.
The Executive is eligible for participation in any standard employee benefit plan of the Company that currently exists or may
be adopted by the Company in the future, including, but not limited to, any retirement plan, life insurance plan, health insurance
plan and travel/holiday plan.


 


		(e)	Expenses.
The Executive shall be entitled to reimbursement by the Company for all reasonable ordinary and necessary travel and other expenses
incurred by the Executive in the performance of his duties under this Agreement; provided that he properly accounts for such expenses
in accordance with the Company’s policies and procedures.


 


7. TERMINATION OF THE AGREEMENT



 


		(a)	By
the Company.


 


(i) For Cause. The
Company may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically
required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:


 


(1) the Executive is convicted
or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement;


 


(2) the Executive has been grossly
negligent or acted dishonestly to the detriment of the Company;


 


(3) the Executive has engaged
in actions amounting to willful misconduct or failed to perform his duties hereunder and such failure continues after the Executive
is afforded a reasonable opportunity to cure such failure; or


 


(4) the Executive violates Section
8 or 10 of this Agreement.


 






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Upon termination for cause, the
Executive shall be entitled to the amount of base salary earned and not paid prior to termination. However, the Executive will
not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive’s
right to all other benefits will terminate, except as required by any applicable law.


 


(ii) For death and disability.
The Company may also terminate the Employment, at any time, without notice or remuneration (unless notice or remuneration is specifically
required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), if:


 


(1) the Executive has died, or


 


(2) the Executive has a disability
which shall mean a physical or mental impairment which, as reasonably determined by the Board, renders the Executive unable to
perform the essential functions of his employment with the Company, with or without reasonable accommodation, for more than 120
days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.


 


Upon termination for death or
disability, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination. However, the
Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and
the Executive’s right to all other benefits will terminate, except as required by any applicable law.


 


(iii) Without Cause.
The Company may terminate the Employment without cause, at any time, upon one-month prior written notice. Upon termination without
cause, the Company shall provide the following severance payments and benefits to the Executive: (1) a lump sum cash payment
equal to 1 months of the Executive’s base salary as of the date of such termination; (2) a lump sum cash payment equal
to a pro-rated amount of his target annual bonus for the year immediately preceding the termination, if any; (3) payment of
premiums for continued health benefits under the Company’s health plans for 12 months fo1lowing the termination, if any;
and (4) immediate vesting of 100% of the then-unvested portion of any outstanding equity awards held by the Executive.


 


Upon termination without cause,
the Executive shall be entitled to the amount of base salary earned and not paid prior to termination.


 


(iv) Change of Control
Transaction. If the Company or its successor terminates the Employment upon a merger, consolidation, or transfer or sale of
all or substantially all of the assets of the Company with or to any other individual(s) or entity (the “Change of Control
Transaction”), the Executive shall be entitled to the following severance payments and benefits upon such termination:
(1) a lump sum cash payment equal to 1  months of the Executive’s base salary at a rate equal to the greater of
his/her annual salary in effect immediately prior to the termination, or his/her then current annua1 salary as of the date of such
termination; (2) a lump sum cash payment equal to a pro-rated amount of his/her target annual bonus for the year immediately
preceding the termination; (3) payment of premiums for continued health benefits under the Company’s health plans for
12 months fo1lowing the termination; and (4) immediate vesting of 100% of the then-unvested portion of any outstanding equity
awards held by the Executive.


 


		(b)	By
the Executive. The Executive may terminate the Employment at any time with a one-month prior written notice to the Company,
if (1) there is a material reduction in the Executive’s authority, duties and responsibilities, or (2) there is
a material reduction in the Executive’s annual salary. Upon the Executive’s termination of the Employment due to either
of the above reasons, the Company shall provide compensation to the Executive equivalent to 1 months of the Executive’s
base salary that he is entitled to immediately prior to such termination. In addition, the Executive may resign prior to the expiration
of the Agreement if such resignation is approved by the Board or an alternative arrangement with respect to the Employment is
agreed to by the Board.


 






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		(c)	Notice
of Termination. Any termination of the Executive’s employment under this Agreement shall be communicated by written
notice of termination from the terminating party to the other party. The notice of termination shall indicate the specific provision(s)
of this Agreement relied upon in effecting the termination.


 


 8. CONFIDENTIALITY AND NON-DISCLOSURE



 


		(a)	Confidentiality
and Non-disclosure. The Executive hereby agrees at all times during the term of the Employment, to hold in the strictest confidence,
and not to use, except for the benefit of the Company, or to disclose to any person, corporation or other entity without prior
written consent of the Company, any Confidential Information. The Executive understands that “Confidential Information”
means any proprietary or confidential information of the Company, its affiliates, or their respective clients, customers or partners,
including, without limitation, technical data, trade secrets, research and development information, product plans, services, customer
lists and customers, supplier lists and suppliers, software developments, inventions, processes, formulas, technology, designs,
hardware configuration information, personnel information, marketing, finances, information about the suppliers, joint ventures,
franchisees, distributors and other persons with whom the Company does business, information regarding the skills and compensation
of other employees of the Company or other business information disclosed to the Executive by or obtained by the Executive from
the Company, its affiliates, or their respective clients, customers or partners, either directly or indirectly, in writing, orally
or otherwise, if specifically indicated to be confidential or reasonably expected to be confidential. The confidentiality obligations
under this Clause shall survive notwithstanding the termination of this Employment Agreement for ten (10) years thereafter. Notwithstanding
the foregoing, Confidential Information shall not include information that is generally available and known to the public through
no fault of the Executive.


 


		(b)	Company
Property. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created,
received or transmitted in connection with his work or using the facilities of the Company are property of the Company and subject
to inspection by the Company at any time. Upon termination of the Executive’s employment with the Company (or at any other
time when requested by the Company), the Executive will promptly deliver to the Company all documents and materials of any nature
pertaining to his work with the Company and will provide written certification of his compliance with this Agreement. Under no
circumstances will the Executive have, following his termination, in his possession any property of the Company, or any documents
or materials or copies thereof containing any Confidential Information.


 


		(c)	Former
Employer Information. The Executive agrees that he has not and will not, during the term of his employment, (i) improperly
use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive
has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises
of the Company any document or confidential or proprietary information belonging to such former employer, person or entity unless
consented to in writing by such former employer, person or entity. The Executive will indemnify the Company and hold it harmless
from and against all claims, liabilities, damages and expenses, including reasonable attorneys’ fees and costs of suit,
arising out of or in connection with any violation of the foregoing.


 


		(d)	Third
Party Information. The Executive recognizes that the Company may have received, and in the future may receive, from third
parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality
of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Company
and such third parties, during the Executive’s employment by the Company and thereafter, a duty to hold all such confidential
or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner
consistent with, and for the limited purposes permitted by, the Company’s agreement with such third party.


 


This Section 8 shall
survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 8, the Company shall
have right to seek remedies permissible under applicable law.


 






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 9. CONFLICTING EMPLOYMENT



 


The Executive
hereby agrees that, during the term of his employment with the Company, he will not engage in any other employment, occupation,
consulting or other business activity related to the business in which the Company is now involved or becomes involved during the
term of the Executive’s employment, nor will the Executive engage in any other activities that conflict with his obligations
to the Company without the prior written consent of the Company.


 


 10. NON-COMPETITION AND NON-SOLICITATION



 


In consideration
of the compensation and benefits paid to the Executive by the Company and subject to applicable law, the Executive agrees that
during the term of the Employment and for a period of two (2) years following the termination of the Employment for whatever reason:


 


		(a)	The
Executive will not approach clients, customers or contacts of the Company or other persons or entities introduced to the Executive
in the Executive’s capacity as a representative of the Company for the purposes of doing business with such persons or entities
which will harm the business relationship between the Company and such persons and/or entities;


 


		(b)	The
Executive will not assume employment with or provide services as a director or otherwise for any Competitor, or engage, whether
as principal, partner, licensor or otherwise, in any Competitor; and


 


		(c)	The
Executive will not seek, directly or indirectly, by the offer of alternative employment or other inducement whatsoever, to solicit
the services of any employee of the Company employed as at or after the date of such termination, or in the year preceding such
termination.


 


The provisions contained
in Section 10 are considered reasonable by the Executive and the Company. In the event that any such provisions should be
found to be void under applicable laws but would be valid if some part thereof was deleted or the period or area of application
reduced, such provisions shall apply with such modification as may be necessary to make them valid and effective.


 


This Section 10 shall
survive two (2) years after the termination of this Agreement for any reason. In the event the Executive breaches this Section
10, the Executive acknowledges that there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief
and/or a decree for specific performance, and such other relief as may be proper (including monetary damages if appropriate). In
any event, the Company shall have right to seek all remedies permissible under applicable law.


 


 11. WITHHOLDING TAXES



 


Notwithstanding anything
else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise
due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes
as may be required to be withheld pursuant to any applicable law or regulation.


 


 12. ASSIGNMENT



 


This Agreement is personal
in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any
rights or obligations hereunder; provided, however, that (i) the Company may assign or transfer this Agreement or any rights
or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a Change of Control Transaction,
this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor
shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder.


 






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 13. SEVERABILITY



 


If any provision of
this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of
this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this
Agreement are declared to be severable.


 


 14. ENTIRE AGREEMENT



 


This Agreement constitutes
the entire agreement and understanding between the Executive and the Company regarding the terms of the Employment and supersedes
all prior or contemporaneous oral or written agreements concerning such subject matter, including any prior agreements between
the Executive and a member of the Group. The Executive acknowledges that he has not entered into this Agreement in reliance upon
any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in
writing and signed by the Executive and the Company.


 


 15. GOVERNING LAW; JURISDICTION



 


This Agreement shall
be governed by and construed in accordance with the laws of Hong Kong and each of the parties irrevocably consents to the jurisdiction
and venue of the courts located in Hong Kong.


 


 16. AMENDMENT



 


This Agreement may
not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring
to this Agreement, which agreement is executed by both of the parties hereto.


 


 17. WAIVER



 


Neither the failure
nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege
with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.
No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.


 


 18. NOTICES



 


All notices, requests,
demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been
duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by
a recognized courier with next-day or second-day delivery to the last known address of the other party.


 


 19. COUNTERPARTS



 


This Agreement may
be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears
thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or
more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the
signatories.


 


Photographic copies
of such signed counterparts may be used in lieu of the originals for any purpose.


 


 20. NO INTERPRETATION AGAINST DRAFTER



 


Each party recognizes
that this Agreement is a legally binding contract and acknowledges that he has had the opportunity to consult with legal counsel
of choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis
of that party being the drafter of such terms.


 


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IN WITNESS WHEREOF, this Agreement has
been executed as of the date first written above.


 


	 	Regencell Bioscience Holdings Limited
	 	 	 
	 	By:	 
	 	Name: 	Yat-Gai Au     
	 	Title:	Chief Executive Officer    


 


	 	Executive
	 	 	 
	 	Signature: 	 
	 	Name:	Yat-Gai Au


 


 


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