Document:

June
22, 2015

 

Nell.
H. Beattie

***********

 

Dear
Nell:

 

VBI
Vaccines Inc. (the “Company”) is pleased to offer you employment in the position of Director, Corporate Development
and Investor Relations reporting to the Chief Executive Officer. Your anticipated start date will be no later than June 29,
2015.

 

This
letter is intended to summarize some of the terms of your employment. We refer you to the policies, plans and practices of the
Company for more details on the terms and conditions of your employment.

 

Generally,
your duties and responsibilities as the Company’s Director, Corporate Development and Investor Relations are to:

 

Corporate
Development (in collaboration with CEO & VP: Business Development)

 

Acquisitions

 

	 	●	Lead and/or support investigation of new opportunities (e.g., products, verticals, geographies) for potential investment to accelerate the company’s strategy
	 	●	Build the company’s acquisition strategy, working closely with the Leadership Team
	 	●	Actively manage the acquisition funnel: including opportunity identification, target assessment, market research, financial analysis, etc. 
	 	●	Play a pivotal role in the deal team and manage/contribute to key deal activities on all transactions, including:
	 	 	 	○	Financial modeling, including valuation and synergy development
	 	 	 	○	Due diligence
	 	 	 	○	Definitive agreement negotiation
	 	 	 	○	Investment memo / board presentations
	 	●	Interact regularly with third party advisors (legal, financial, tax, consultants)
	 	●	Lead post-merger integration planning and implementation

 

Investments

 

	 	●	Lead
    and/or support analysis of venture and minority investment opportunities
	 	●	Review
    term sheets and investment agreements
	 	●	Lead
    and/or support due diligence, working closely with operating teams
	 	●	Manage
    regular reporting on investments

 

 

 

    	 	 	 

    	 

    

 

 

Corporate

 

	 	●	Work
    closely with senior management to identify and drive key strategy projects, providing leadership and analytical support where
    needed
	 	●	Lead
    and/or support major corporate initiatives (e.g., partnerships, organizational change, negotiations, etc.)
	 	●	Prepare
    materials for Board of Directors meetings, including regular business updates, strategy reviews, and special topics

 

Investor
Relations (in collaboration with CEO and CFO)

 

	 	●	Participate
    and/or present at Investor meetings and conferences
	 	●	Receive
    and screen investor calls, providing approved distribution materials, answering questions and deferring inquiries as appropriate
    to CEO and CFO. 
	 	●	Provide
    support by composing and/or editing a variety of documents. This may include highly confidential correspondence, contracts
    and proposals.
	 	●	Assist
    with the review and approval of corporate communications documents including press releases, website postings, and regulatory
    filings.
	 	●	Assist
    with the preparation and distribution of Investor Relations materials as directed by CEO and CFO.

 

You
will be an “at-will” employee, which means that either you or the Company may end the employment relationship at any
time for any reason or no reason at all. This offer letter does not constitute, and is not intended to be, a contract of employment
for any set period of time.

 

Your
anticipated base salary will be the equivalent of $125,000 payable semi-monthly (which equates to $5,208.33 USD each pay period),
less appropriate withholdings and payable in accordance with the Company’s standard payroll policies (the “Base Salary”).
Financial circumstances permitting, the Company conducts an annual performance review of all employees. Performance bonuses are
determined based on the individual’s performance as well as that of the company attaining its corporate objectives as well.
You will be eligible to be considered for an annual cash bonus of up to twenty-five percent (25%) of your then applicable Base
Salary (the “Bonus”). Bonus entitlement shall be based on you meeting certain performance objectives, which
shall be mutually established with the Company within three months after the start date and shall be re-established on an annual
basis thereafter as approved by the Board of Directors. Entitlement to this bonus will be contingent upon you remaining actively
employed with the Company through the date any Bonus is paid. The Bonus will generally be paid within ninety (90) days after the
end of the applicable calendar year. You shall not be entitled to any portion of any Bonus that might otherwise have been awarded
for any calendar year during which your employment terminates for any reason. All determinations regarding any Bonus will be made
by the Board in its sole discretion.

 

 

 

    	 	 	 

    	 

    

 

 

As
a condition of employment you will be required to relocate to the Cambridge-area, MA. The Company agrees to cover reasonable costs
of relocation up to a maximum of seven thousand five hundred ($7,500.00). Expenses that may be covered include, but are not limited
to, costs charged by a moving company to relocate your belongings including insurance and storage costs related to the move, house-hunting
trips but excluding costs related to the sale of your existing home except any commission paid to a registered real estate agent
for their assistance in selling your current residence and any commission or fees paid on the purchase or rental of your new residence.
For greater certainty, land transfer fees are considered as part of the capital cost of purchasing a home and not as moving expenses.
In addition, the Company will reimburse you up to a maximum of four thousand dollars ($4,000.00) of transitional housing costs
during the first month after your start date. The relocation and housing expenses will be reimbursed upon submission of an expense
report including supporting documentation and/or original receipts.

 

The
company also agrees to pay you a signing bonus of thirty-seven thousand five hundred dollars ($37,500.00) (“Signing Bonus”),
payable in the first payroll following your start date. Should you resign or be terminated for Cause prior to the second anniversary
from your employment start date, fifty percent (50%) of the Signing Bonus is fully repayable.

 

“Cause”
means that, in the good faith and reasonable determination of the Board, you have (i) breached any fiduciary duty or legal or
contractual obligation to the Company; (ii) engaged in gross negligence, willful misconduct, fraud, embezzlement, acts of dishonesty,
or a conflict of interest relating to the affairs of the Company or any of its subsidiaries or affiliates; (iii) been convicted
of or pleaded nolo contendere to: (A) any misdemeanor relating to the affairs of the Company or any of its subsidiaries or affiliates;
or (B) any felony or indictable offence; or (iv) engaged in a violation of any federal, state laws or foreign securities laws.

 

You
will be eligible to participate in such healthcare, insurance and 401(k) benefits as may be offered to the Company’s employees
from time to time. The terms and carrier of the Company’s healthcare, insurance and 401(k) benefits are subject to change
from time to time, at the Company’s sole discretion.

 

You
will be eligible to receive options to purchase shares of the capital stock of VBI Vaccines Inc. through its 2014 Equity Incentive
Plan (“SOP Plan”), subject at all times to the terms of, and as described more fully in, the SOP Plan. Subject to
approval of the Board of Directors, you will be granted 35,000 stock options at closing price of the stock on the date of grant,
and subject to the following vesting: i) 25% of the grant vesting on the first year anniversary of your employment, ii) beginning
in month 13 and monthly thereafter until month 48, a pro-rata portion of the remaining 75%.

 

You
will be eligible to accrue a total three week’s paid vacation during each complete year of your employment, which vacation
must be taken at a time convenient to the Company. You are expected to use your full vacation allotment each year; any unused
vacation time at the end of each completed year of your employment will not be carried forward from one year into the next, unless
otherwise modified by company policy.

 

Your
employment is contingent upon (a) the completion of standard employment forms and favourable reference checks; (b) providing verification
of employment eligibility in the United States, pursuant to the Immigration and Reform Control Act of 1986; and (c) execution
by you of the attached Intellectual Property and Confidential Information Agreement in the form attached. All payments described
in this offer are subject to applicable withholdings and taxes.

 

 

 

    	 	 	 

    	 

    

 

 

If
your employment is terminated after the first anniversary of this Agreement by the Company without Cause (other than as a result
of the death or Disability of the Employee) or by the Employee for Good Reason, the Employee shall be entitled to payments of
Base Salary and properly documented expense reimbursement that had accrued but had not been paid prior to the date of such termination,
and payments for any accrued but unused vacation time.

 

The
Employee shall provide two weeks notice in the event of resignation.

 

This
offer letter shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

 

Yours
very truly,

 

	/s/
    Jeff Baxter	 
	Jeff
    Baxter	 
	President
    & CEO	 

 

 

 

    	 	 	 

    	 

    

 

 

INTELLECTUAL
PROPERTY AND

CONFIDENTIAL INFORMATION AGREEMENT

 

This
Intellectual Property and Confidential Information Agreement (the “Agreement”) is entered into as of _________________,
2015 between VBI Vaccines Inc. (hereinafter called the “Company”) and me, the undersigned individual. I understand
that the references to the “Company” in this Agreement refer to VBI Vaccines Inc., Variation Biotechnologies (US),
Inc., Variation Biotechnologies, Inc. (Canada) and all past, present and future parents, subsidiaries, affiliates and related
business entities, successors and assigns, wherever located. This Agreement is intended to cover all of my intellectual property
and confidential information obligations to the Company since the date that I commenced employment or engagement with the Company
(the “Effective Date”).

 

I
recognize that the Company is engaged in the vaccine design, development and manufacturing business. I also recognize the importance
of protecting the Company’s trade secrets, know-how, confidential information and other proprietary information and related
rights acquired through the expenditure of time, effort and money by the Company.

 

NOW
THEREFORE, in consideration of my employment and/or continued employment with the Company, including the compensation provided
to me by the Company and the benefits I will receive in connection with same, I make the following representations and agree to
the following terms and conditions of my employment:

 

	1.	Definitions

 

(a)
“Confidential Information” means all of the materials and information (whether or not reduced to writing and whether
or not patentable or protected by copyright) provided by the Company to me, or which is available to me during the course of my
employment, including, without limitation the following:

 

	 	i.	any
    and all versions of the Company’s products (whether software or hardware) and related documentation owned or marketed
    by the Company;
	 	 	 
	 	ii.	all
    Developments (as defined below);
	 	 	 
	 	iii.	information
    regarding the Company’s business operations, methods and practices, recruiting and training policies, including marketing
    strategies, product plans (including unannounced products), product pricing, margins, hourly rates, per diems and information
    regarding the financial affairs of the Company;
	 	 	 
	 	iv.	customer
    lists, quotations or proposals given to customers, requirements of specific customers, and the names of the suppliers to the
    Company, and the nature of the Company’s relationships with these clients and suppliers;
	 	 	 
	 	v.	technical
    and business information of or regarding the clients or customers of the Company obtained in order to enable or assist the
    Company in providing such clients or customers with products and services, including information regarding the business operations,
    methods and practices and product plans of such clients; 

 

 

 

    	 	 	 

    	 

    

 

 

	 	vi.	any
    other trade secret or confidential or proprietary information received by the Company from third parties and in the possession
    or control of the Company; and 
	 	 	 
	 	vii.	any
    other materials or information related to the Company’s business which are not generally known to others, regardless
    of whether such information is in paper or electronic format or any other format;

 

provided
that, Confidential Information shall not include information which:

 

	 	viii.	is
    generally known or in the public domain at the time of disclosure; or
	 	 	 
	 	ix.	though
    originally Confidential Information becomes generally available to the public through no fault of mine, as of the date of
    its becoming part of the public knowledge.

 

The
absence of any notice indicating confidentiality on any material will not imply that same is not Confidential Information.

 

	 	(b)
    	“Developments”
    include, without limitation any methods, processes, procedures, systems, inventions (whether patentable or not), devices,
    discoveries, concepts, know-how, data, databases, technology, products, software (in executable and source code formats),
    templates, documentation, specifications, compilations, designs, reports, trade-marks, and any enhancements, modifications,
    or additions to the foregoing or to any products owned, marketed or used by the Company which relate, directly or indirectly,
    to the Company’s present or reasonably foreseeable business or any of my employment activities and which are developed,
    created, generated or reduced to practice by me, alone or jointly with others, during my employment with the Company, whether
    during or after working hours, whether prior to or following the Effective Date, and whether or not resulting from the use
    of the premises or property of the Company.

 

	2.	Non-Disclosure
    of Confidential Information
	 	 
	 	At
    all times during and subsequent to the termination of my employment with the Company, I shall keep in strictest confidence
    and trust the Confidential Information, I shall take all necessary precautions against unauthorized disclosure of the Confidential
    Information, and I shall not directly or indirectly disclose, allow access to, transmit or transfer the Confidential Information
    to a third party, nor shall I copy or reproduce the Confidential Information except as may be reasonably required for me to
    perform my duties for the Company.

 

 

 

    	 	 	 

    	 

    

 

 

	3.	Restricted
    Use of Confidential Information

 

(a)
At all times during and subsequent to the termination of my employment with the Company, I shall not use the Confidential Information
in any manner except as reasonably required for me to perform my duties for the Company.

 

(b)
Without limiting my obligations under paragraph 3(a) hereof, I agree that at all times during and subsequent to the termination
of my employment with the Company I shall not use or take advantage of the Confidential Information for creating, maintaining
or marketing, or aiding in the creation, maintenance or marketing, of any product which is competitive with any product owned
or marketed by the Company Group.

 

(c)
Upon the request of the Company, and in any event upon the termination of my employment with the Company, I shall immediately
return to the Company all materials, including all copies in whatever form, containing the Confidential Information which are
in my possession or under my control.

 

	4.	Ownership
    of Confidential Information and Developments

 

(a)
I acknowledge and agree that I shall not acquire any right, title or interest in or to the Confidential Information.

 

(b)
I agree to make full disclosure to the Company of each Development promptly after its creation.

 

(c)
I hereby assign and transfer to the Company, and agree that the Company shall be the exclusive owner of, all of my right, title
and interest to each Development throughout the world, including all trade secrets, patent rights, copyrights and all other intellectual
property rights therein. I further agree to cooperate fully at all times during and subsequent to my employment with respect to
signing further documents and doing such acts and other things reasonably requested by the Company to confirm such transfer of
ownership of rights, including intellectual property rights, effective at or after the time the Development is created and to
obtain patents or copyrights or the like covering the Developments. I agree that the Company, its assignees and their licensees
are not required to designate me as the author of any Developments. I agree that the obligations in this paragraph 4(c) shall
continue beyond the termination of my employment with the Company with respect to Developments created during my employment with
the Company.

 

(d)
I hereby grant a power of attorney to the Company to have the Company execute on my behalf all applications, specifications, oaths,
assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and
in order to assign and convey to Company and its successors, assigns and nominees sole and exclusive rights, title and interest
in and to such Developments, and any copyrights, patents, trade-marks, industrial designs (design patents), topographies (mask
work rights) or other intellectual property rights relating thereto.

 

(e)
I hereby waive in whole all moral rights which I may have in the Developments, including the right to the integrity of the Developments,
the right to be associated with the Developments, the right to restrain or claim damages for any distortion, mutilation or other
modification of the Developments, and the right to restrain use or reproduction of the Developments in any context and in connection
with any product, service, cause or institution. I will confirm any such waiver from time to time as requested by the Company.

 

 

 

    	 	 	 

    	 

    

 

 

	5.	List
    of Pre-employment Inventions

 

If
I wish to clarify that something created by me prior to entering into this Agreement, either alone or jointly with others, that
relates to the Company’s actual or proposed business is not within the scope of this Agreement, I have listed it on the
attached Exhibit “A” (“Pre-employment Inventions”). Exhibit “A” also includes a listing of
the numbers of all applicable registrations or pending applications for the Pre-employment Inventions in all applicable countries,
and a brief description of all unpatented inventions or ideas, which I made prior to the commencement of the employment with the
Company. Any patentable improvements made on these Pre-employment Inventions during the term of the employment and for a period
of six (6) months after the termination of the employment are Developments within the scope of this Agreement. If I use or, except
pursuant to this Section 5, disclose Pre-employment Inventions when acting within the scope of the employment or otherwise on
behalf of the Company, I hereby grant Company a perpetual, irrevocable, worldwide, royalty-free, non-exclusive, sublicensable
right and license to exploit and use all such confidential information and intellectual property rights. If no such list is attached,
if the attached list is not completed or if Exhibit “A” is a “NIL” list, then I hereby represent that
I do not own any Pre-employment Inventions as at the date of this Agreement.

 

	6.	No
    Competition or Solicitation

 

Prior
to and during the course of my employment with the Company, I have been and will be exposed to, provided with, given access to
the Company’s Proprietary Information. I have had and will have contacts with the Company’s customers, potential customers,
vendors and distribution network. I understand that the Company invests substantial time, money and other resources in developing
and maintaining the confidential nature of its Proprietary Information and in developing its goodwill and reputation. I also understand
that the Company invests substantial time, money and other resources in hiring educating and training employees and developing
in its employees skills and knowledge specific to the Company and its business.

 

I
agree that, during my employment with the Company and for one year thereafter, regardless of whether I resign or am terminated
and regardless of the reason for termination of my employment relationship, I will not, directly or indirectly, individually or
as a consultant to, or an employee, officer, director, manager, stockholder (except as a stockholder owning less than one percent
(1%) of the shares of a corporation whose shares are traded on a national securities exchange), partner, member, or other owner
or participant in any business entity other than the Company:

 

 

 

    	 	 	 

    	 

    

 

 

	 	(a)	carry
    on, participate in, or engage in any business that competes directly with the Business of the Company in the United States
    or Canada. For purposes of this Agreement, the term “Business of the Company” means the research, development
    or commercialization of peptide-based vaccines for infectious diseases affecting humans or animals;
	 	 	 
	 	(b)	solicit,
    employ, hire, endeavor to entice away from the Company, or offer employment or any consulting arrangement to, any person or
    entity who is, or was within the one-year period immediately prior thereto, employed by, or a consultant to, the Company;
    or
	 	 	 
	 	(c)	solicit
    or endeavor to entice away from the Company, any person or entity who is, or was within the one-year period immediately prior
    thereto, a customer or client of, supplier to, or other party having material business relations with the Company.

 

I
agree that the restrictions in this Agreement, specifically including those in paragraphs 2, 3 and 6 above, are reasonable and
necessary to protect the Company’s Confidential Information and goodwill. I further acknowledge that the restrictions in
this Agreement will not prevent me from engaging in work or from obtaining employment or making a living, other than as expressly
set forth in this Agreement after termination of my employment with the Company.

 

	7.	No
    Conflicting Obligations

 

I
acknowledge and represent to the Company that my performance during the period of my employment with the Company shall not breach
any agreement or other obligation to keep confidential the proprietary information of any client of mine or any other third party.
I further acknowledge and represent that I am not bound by any agreement or obligation with any third party that conflicts with
any of my obligations under this Agreement.

 

I
represent and agree that I will not bring to the Company and shall not use in the performance of my work with the Company, any
trade secrets, confidential information and other proprietary information of any client of mine or any other third party. I represent
and agree that in my work creating Developments I will not knowingly infringe the intellectual property rights, including copyright,
of any third party.

 

	8.	Enforcement

 

I
acknowledge that full compliance with the terms of this Agreement is necessary to protect the business and goodwill of the Company
and that a breach of this Agreement will irreparably and continually harm the Company, for which money damages may not be adequate.

 

I
acknowledge and agree that damages may not be an adequate remedy to compensate the Company for any breach of my obligations contained
in this Agreement, and accordingly I agree that in addition to any and all other remedies available to it, the Company shall be
entitled to seek relief by way of a temporary or permanent injunction to enforce the obligations contained in this Agreement.
Such relief shall be in addition to and not in lieu of any other remedies available to Company at law or in equity.

 

I
also agree that in such event, I shall be bound by the restrictions set forth in this Agreement, specifically including those
in paragraphs 2, 3 and 6 above, until a period of one (1) year has expired without a violation of such restrictions.

 

 

 

    	 	 	 

    	 

    

 

 

	9.	Returning
    Company Documents

 

I
agree that upon the termination of the employment I will deliver to the Company (and will not keep in my possession or deliver
to anyone else) any and all Confidential Information and Company proprietary information including, without limitation, devices,
records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment,
other documents or property, or reproductions of any aforementioned items belonging to the Company, together with any third party
information received by me. In the event of the termination or other cessation of the employment, I agree to sign and deliver
to the Company the “Termination Certificate” attached hereto as Exhibit “B”. Notwithstanding the foregoing,
I shall be entitled to keep personal copies of (i) my compensation records, (ii) materials distributed to shareholders generally
and (iii) this Agreement.

 

	10.	General

 

(a)
This Agreement shall be governed by and construed in accordance with the laws in force in the Commonwealth of Massachusetts applicable
thereto.

 

(b)
If any provision of this Agreement is wholly or partially unenforceable for any reason, such unenforceable provision or part thereof
shall be deemed to be omitted from this Agreement without in any way invalidating or impairing the other provisions of this Agreement.
Further, a court shall have the authority to reform and rewrite the “invalid or unenforceable” provision, so it will
be valid and enforceable.

 

(c)
In this Agreement any reference to a termination of employment shall include termination for any reason whatsoever and with or
without cause.

 

(d)
The obligations herein may not be changed or modified, released or terminated, in whole or in part, except in writing signed by
the President of the Company and me.

 

(e)
This Agreement supersedes all previous agreements, if any, between the Company and myself with respect to the subject matter of
this Agreement. I agree, however, that this Agreement does not purport to set forth all of the terms and conditions of my employment,
and that I have other obligations to the Company that are not set forth in this Agreement.

 

(f)
The rights and obligations under this Agreement shall survive the termination of my employment and shall inure to the benefit
of and shall be binding upon (i) my heirs and personal representatives and (ii) the successors and assigns of the Company.

 

(g)
The Company may transfer and/or reassign me and change my duties and responsibilities, including transferring my employment to
a subsidiary, affiliate or related business entity of Variation Biotechnologies, Inc. based in Canada. I agree that such changes
do not affect, alter or modify my obligations under this Agreement and that I will continue to be bound by this Agreement without
further consideration or compensation and regardless of any such change.

 

 

 

    	 	 	 

    	 

    

 

 

(h)
Neither the Company’s failure to enforce the terms of this Agreement on previous occasions, nor its failure to enforce another
agreement similar to this with another employee, shall constitute a waiver of any term or provision in this Agreement. The Company
must be free to use its own judgment as to when enforcement of its rights hereunder is appropriate.

 

(i)
I HAVE READ THIS AGREEMENT, UNDERSTAND IT, HAVE HAD THE OPPORTUNITY TO OBTAIN INDEPENDENT LEGAL ADVICE IN RESPECT OF IT, AND I
AGREE TO ITS TERMS. 

 

(j)
I acknowledge having received a fully executed copy of this Agreement.

 

IN
WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the 11th day of February, 2015.

 

	SIGNED,
                                         SEALED AND DELIVERED in the

                                                                                presence
                                         of:
	)

                                                                    )

                                                                    )

                                                                    )
	Employee:
	Witness	)

                                                         )
	Nell.
                                         H. Beattie

         

        

 

	 	VBI
    Vaccines Inc.  
	 	 
	 	By:	 
	 	Name:	Jeff
    Baxter
	 	Title:	President
    & CEO
	 	 	 

 

 

 

    	 	 	 

    	 

    

 

 

EXHIBIT
A

 

List
of Pre-employment Inventions (if applicable)

 

	Title	 	Date	 	Identifying
    Number or Brief Description
	●	 	●	 	●

 

Brief
Description(s) of All of Pre-employment Unpatented Inventions Or Ideas:

 

None

 

Date:
_____________, 2015

 

	SIGNED, SEALED AND DELIVERED in the

                                                                                presence of:
	)

                                                                    )

                                                                    )

                                                                    )

                                                                    )
	 
	Witness	)

                                                         )
	Nell.
                                         H. Beattie

         

        

 

 

 

    	 	 	 

    	 

    

 

 

EXHIBIT
B

 

Termination
Certificate

 

	To:	VBI
    Vaccines Inc. (the “Company”)

 

	Re:	Intellectual
                                         Property and Confidential Information Agreement (the “Agreement”) dated _____________,
                                         2015 between the Company and the Undersigned.

 

This
is to certify that I do not have in my possession, nor have I failed to return, any confidential or proprietary information belonging
to the Company, its subsidiaries, affiliates, licensors, successors or assigns, including without limitation, devices, records,
data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment,
other documents or property, or reproductions of any aforementioned items. I further certify that I have complied with all the
terms of the Agreement signed by me, including the reporting of any Developments, inventions and original works of authorship
(as defined therein), conceived or made by me (solely or jointly with others) covered by that Agreement.

 

I
further agree that, in compliance with the Agreement, I will preserve as confidential all trade secrets, confidential knowledge,
data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental
work, computer programs, data bases, other original works of authorship, customer lists, business plans, financial information
or other subject matter pertaining to any business of the Company or any of its clients, consultants or licensees.

 

	Date:	 	 
	 	 	 
	Signature:	 	 
	Print Name:	Nell. H. BeattieSEPARATION
AND RELEASE AGREEMENT

 

This
Separation and Release Agreement (this “Agreement”) is made and entered into as of December 22, 2016 (the “Contract
Date”), by and between Curt Lockshin (“Employee” or “You”), on the one hand, and
VBI Vaccines Inc., a corporation organized under the laws of British Columbia, Canada; VBI Vaccines (DE) Inc., a Delaware corporation;
SciVac Ltd, an entity incorporated pursuant to the laws of Israel; and SciVac USA, LLC, a Florida limited liability company (all
collectively, the “Company” or “Employer”), on the other hand. Employee and the Company
are sometimes each referred to herein as a “Party” and both collectively, as the “Parties”.
Terms used herein but not otherwise defined shall have the meanings ascribed thereto in the Letter Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS,
Employee and the Company are parties to that certain Employment Agreement, effective May 9, 2016 (the “Letter Agreement”);
and

 

WHEREAS,
Employee and the Company desire to separate from their business relationship as provided herein;

 

NOW,
THEREFORE, in consideration of the premises and mutual promises herein contained, it is agreed as follows:

 

1.
Effective as of the Contract Date, your employment with the Company (including your position as Chief Technology Officer and any
and all other offices you held with the Company or any of its subsidiaries) shall terminate. Except for Section 8 of the Letter
Agreement, as of the Contract Date the Letter Agreement shall terminate and have no further force or effect. The Parties understand
and agree that neither the making of this Agreement nor the fulfillment of any condition or obligation of this Agreement constitutes
an admission of any liability or wrongdoing by the Company, any of the Employee Releasees (as defined below) or any of the Company
Releasees (as defined below).

 

2.
Upon execution of this Agreement, Employee will deliver to the Company an executed resignation letter, in substantially the form
attached hereto as Exhibit A. The contents of the resignation letter shall form the substance of the Company’s required
disclosure pursuant to applicable securities laws.

 

3.
This Agreement supersedes any and all other agreements, written or verbal, which may exist between the Company and Employee solely
concerning Employee’s separation from the Company, including without limitation any representations made to Employee by
any executive officer or director of the Company.

 

4.
Employee Acknowledgments.

 

(a)
You have been advised by the Company to consult with an attorney of your choice prior to signing this Agreement.

 

(b)
You have been given a period of at least twenty-one (21) days within which to consider this Agreement.

 

(c)
You agree that you would not be entitled to receive the consideration offered to You herein but for your signing this Agreement.

 

    	 

    	 	 	 

    

 

(d)
You may revoke this Agreement within seven (7) days after the date You sign it by providing written notice of the revocation to
the Chief Executive Officer of the Company no later than the seventh (7th) day after You sign it. It is understood and agreed
that any notice of revocation received by the Chief Executive Officer of the Company after the expiration of this seven (7) day
period shall be null and void.

 

5.
It is further expressly agreed by the Parties that this Agreement shall not become effective or enforceable and the consideration
referred to in Section 7 below and elsewhere herein will not be paid until the seven (7) day revocation period described in Section
4(d) above has expired without any such revocation having occurred or been attempted. Therefore, it is expressly agreed by the
Parties that the “Effective Date” of this Agreement is the first day after the date the seven (7) day revocation
period has so expired.

 

6.
Employee represents that he has consulted or has had sufficient opportunity to discuss with any person, including an attorney
of his choice, all provisions of this Agreement, that he has carefully read and fully understands all the provisions of this Agreement,
that he is competent to execute this Agreement, and that he is voluntarily entering into this Agreement of his own free will and
accord, without reliance upon any statement or representation of the Company or its representatives not expressly set forth in
writing in this Agreement.

 

7.
Provided that Employee does not so revoke this Agreement and complies with his obligations hereunder, the Company agrees as follows:

 

(a)
On or before January 31, 2017, the Company will pay to Employee, as a bonus for fiscal year end December 31, 2016, a total of
$56,250, equal to 3 months of Employee’s salary as described in the Letter Agreement in accordance with the Company’s
standard payroll procedures.

 

(b)
Employee has submitted to the Company a list of expenses for which he is seeking reimbursement. The Company will promptly reimburse
Employee for authorized expenses consistent with its corporate policy, including expenses for one additional trip to the Company’s
Rehovet, Israel facilities, to take place on or before February 28, 2017.

 

(c)
Upon execution of this Agreement by the Parties, You will deliver to the Company a flashdrive containing a copy of all information
pertaining to the Company and its subsidiaries on the harddrive of any computer within your possession, custody or control.

 

8.
Reference is hereby made to that certain Restricted Share Unit Agreement by and between the Company and Employee dated as of June
14, 2016 (the “RSU Agreement”). The restricted stock units issued to Employee shall remain subject to the RSU
Agreement in all respects. For purposes of clarification, 15,411 RSUs shall vest, and such equivalent number of Company shares
shall be issued, reduced by such number of shares necessary to satisfy Your tax withholding obligations thereon (the “RSU
Shares”) to Employee, pursuant to the terms of the RSU Agreement and Section 16 of the VBI Vaccines Inc. Incentive Plan.
The Company shall deliver the RSU Shares to Employee within five (5) business days of the Effective Date.

 

9.
Employee’s health insurance and all other Company benefits will terminate according to the terms of the plans. This provision
is not, however, intended to waive Employee’s rights under COBRA. Employee acknowledges that the Company will provide the
COBRA notice, in accordance with federal guidelines, under which Employee may elect continuation of coverage.

 

    	2

    	 	 	 

    

 

10.
From the Contract Date through January 31, 2017 (the “Separation Period”), You agree to make yourself available
to consult with the Chief Executive Officer of the Company (the “CEO”) or persons designated by the CEO on
matters concerning the Company and its subsidiaries as reasonably requested by the CEO from time to time; provided, however, that
in no event shall You be required, unless otherwise agreed, to devote more than 150 hours of your time to performing such services
during any calendar month. You and the Company agree that You will receive no compensation for performing such services, but You
will be: (i) paid at the rate of $125 per hour for each hour over 150 hours performed in any calendar month (it being agreed and
understood that you will advise the Company in writing each month when you have performed 150 hours of services in any calendar
month on behalf of the Company); and (ii) reimbursed for all reasonable out-of-pocket expenses you incurred in performing such
services that have been approved in writing by the Company prior to your incurrence thereof. The parties hereto acknowledge that
but for this Agreement You would not be required to render the services described in this Paragraph.

 

11.
Employee represents and acknowledges that in executing this Agreement, he does not rely and has not relied upon any representation
or statement made by the Company or any of its agents, representatives or attorneys with regard to the subject matter, basis or
effect of this Agreement or otherwise other than the representations contained in this Agreement.

 

12.
Employee agrees as follows:

 

(a)
As a material inducement to the Company to enter into this Agreement and subject to the terms of this Section 12, Employee hereby
irrevocably and unconditionally releases, acquits and forever discharges the Company and each of its parent, owners, stockholders,
predecessors, successors, assigns, agents, directors, officers, employees, representatives, attorneys, divisions, subsidiaries,
affiliates and all persons acting by, through, under or in concert with any of them, (all collectively “Company Releasees”),
from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, penalties,
actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including without limitation attorneys’
fees and costs actually incurred), of any nature whatsoever, whether now known or unknown (“Claim” or “Claims”)
which Employee now has, owns, holds, or which Employee at any time heretofore had, owned, or held against any or all of the Company
Releasees, including, but not limited to: (a) all Claims under the Age Discrimination in Employment Act of 1967, as amended (the
“ADEA”); (b) all Claims under Title VII of the Civil Rights Act of 1964, as amended; (c) all Claims under the
Employee Retirement Income Security Act of 1974, as amended; (d) all Claims arising under the Americans With Disabilities Act
of 1990, as amended; (e) all Claims arising under the Family and Medical Leave Act of 1993, as amended; (f) all Claims related
to Employee’s employment with the Company; (g) all Claims of unlawful discrimination, retaliation or harassment based on
age, sex, race, religion, national origin, handicap, disability, equal pay, sexual orientation or otherwise; (h) all Claims arising
under the Massachusetts Fair Employment Practices Law (M.G.L. ch. 151B), the Massachusetts Equal Rights Act, the Massachusetts
Equal Pay Act, the Massachusetts Privacy Statute, and the Massachusetts Civil Rights Act; (i) all Claims of wrongful discharge,
breach of an implied or express employment contract, negligent or intentional infliction of emotional distress, libel, slander,
defamation, breach of privacy, fraud, breach of any implied covenant of good faith and fair dealing and any other federal, state,
or local common law or statutory claims, whether in tort or in contract; (j) all Claims related to unpaid wages, salary, overtime
compensation, bonuses, severance pay, vacation pay, expenses or any other compensation or benefits arising out of Employee’s
employment with the Company; (k) all Claims arising under any federal, state or local regulation, law, code or statute; (l) all
Claims of discrimination, retaliation or harassment arising under any state or local law or ordinance; and (m) all Claims relating
to any agreement, arrangement or understanding that Employee has, or may have, with the Company (including, without limitation,
the Letter Agreement, but specifically excluding this Agreement, and the RSU Agreement,(collectively, the “Other Agreements”)).
Notwithstanding anything to the contrary contained in this subsection (a), the Company agrees that Employee shall remain a beneficiary
under any past and current Directors and Officers Insurance policies to the extent that Employee was a beneficiary as of the Contract
Date, and notwithstanding anything to the contrary contained in this Agreement, Employee is not releasing in any way any coverage
under said insurance policies. The foregoing does not include any claim under the workers compensation or unemployment compensation
statutes or any other claim, which, as a matter of law, cannot be released by private agreement. Also, this Agreement is not intended
to affect the rights and responsibilities of government agencies such as the Equal Employment Opportunity Commission (the “EEOC”),
the National labor Relations Board (the “NLRB”) or any comparable state or local agency, to enforce the laws
within their jurisdiction. Notwithstanding the foregoing, with respect to any claim that cannot be released by private agreement,
including without limitation any action commenced by the EEOC, the NLRB or any other federal, state, or local government entity
on Your behalf, You specifically waive and release Your right to recover, if any, monetary damages or other benefits or remedies
of any sort whatsoever arising from the governmental action or third party action.

 

    	3

    	 	 	 

    

 

(b)
Employee covenants and promises not to sue, commence an arbitration or otherwise pursue legal action in any forum against the
Company, other than for breach of this Agreement or the Other Agreements, and further covenants and promises to indemnify and
defend the Company from any and all such claims, demands and causes of action, including the payment of reasonable costs and attorneys’
fees relating to any claim, demand, or causes of action brought by him. Employee agrees that should any legal action be pursued
on his behalf by any person or other entity against the Company regarding the claims released by Employee in this Agreement, Employee
will not accept recovery from such action, but will assign such recovery to the Company and agrees to indemnify the Company against
such claims and assessment of damages. Employee further represents that neither he nor anyone acting on his behalf has filed any
lawsuits, arbitrations or other actions in any forum against the Company.

 

(c)
Employee further promises and agrees that he will not at any time disparage the Company or any of its directors, officers, employees,
products, operations, policies, decisions, advertising or marketing programs, if the effect of such disparagement reasonably could
be anticipated to cause material harm to the Company’s reputation, business, interests or to the morale among its work force,
or the reputation of any Company employee. Additionally, Employee will refer all inquiries that he receives (whether written or
oral) regarding the business or operations of the Company to the CEO (or his designee). Employee will make reasonable efforts
to transition Company information to an authorized representative of the Company.

 

(d)
Except as otherwise set forth above in Section 7(b) regarding any unreimbursed business expenses to be paid and in Section 8 regarding
issuance of stock, the amount set forth above in Section 7(a) will be complete and unconditional payment, accord and/or satisfaction
with respect to all obligations and liabilities of the Company Releasees to you, including, without limitation, all claims for
back wages, salary, vacation pay, draws, incentive pay, bonuses, commissions, severance pay, any and all other forms of compensation
or benefits, attorney’s fees, or any other costs or sums.

 

(e)
You understand that rights or claims under the under the ADEA which may arise after the date this Agreement is signed are not
waived by You.

 

13.
The Company agrees as follows:

 

(a)
As a material inducement to Employee to enter into this Agreement and subject to the terms of this paragraph, the Company, on
its own behalf and on behalf of each of the Company Releasees, hereby irrevocably and unconditionally releases, acquits and forever
discharges Employee, and his heirs, representatives, successors and assigns and all persons acting by, through, under or in concert
with any of them (collectively, the “Employee Releasees”), from any and all Claims which any Company Releasee
now has, owns, holds, or which any Company Releasee at any time heretofore had, owned, or held against any of the Employee Releasees
(including, without limitation, any Claims arising out of, in connection with, or related to Employee’s involvement as an
officer or director of the Company or any of its subsidiaries).

 

    	4

    	 	 	 

    

 

(b)
The Company covenants and promises not to sue, commence an arbitration or otherwise pursue legal action against Employee in any
forum, other than for breach of this Agreement or the Other Agreements, and further covenants and promises to indemnify and defend
Employee from any and all such claims, demands and causes of action, including the payment of reasonable costs and attorneys’
fees relating to any claim, demand, or causes of action brought by the Company. The Company agrees that should any legal action
be pursued on its behalf by any person or other entity against Employee regarding the claims released in this Agreement, the Company
will not accept recovery from such action, but will assign such recovery to Employee and agrees to indemnify Employee against
such claims and assessment of damages. The Company further represents that it has filed no lawsuits, arbitrations or other actions
against Employee in any forum.

 

(c)
The Company further promises and agrees that it will not at any time disparage Employee, if the effect of such disparagement reasonably
could be anticipated to cause material harm to Employee’s reputation.

 

14.
Employee will not, for a period ending one year after the Effective Date, for any reason, directly or indirectly: (a) solicit
the business of any customer of the Company, for the purpose of, or with the intention of, selling or providing to such customer
any product or service in competition with any product or service sold or provided by Employer during the 12 months immediately
preceding the termination of Employee’s employment with Employer; (b) cause or attempt to cause any employee of Employer
to cease working for Employer.

 

15.
Notwithstanding anything in this Agreement to the contrary, the Company and Employee agree that the Other Agreements shall remain
in full force and effect, as revised above.

 

16.
If Employee or the Company determines that the other has breached this Agreement, the non-breaching Party will notify the Party
in breach of that fact in writing and the Party in breach will be afforded ten (10) days to cure the breach.

 

17.
Employee agrees that by three days after the termination of the Separation Period, he will use his best efforts to return to the
Company any and all property of the Company in his possession, custody or control, including without limitation marketing plans
and related information, product development plans and related information, trade secret information, pricing information, vendor
information, financial information (including usernames and passwords for online corporate and/or financial accounts), telephone
lists, computer software and hardware, keys and office equipment and confirm removal of all Company information from all telephones
and other personal electronic devices. You specifically acknowledge and agree that You will continue to be bound by and subject
to the confidentiality provisions of Section 8 of the Letter Agreement and You will not, among other things, use or disclose any
of the Company information contained on the harddrive of your computer in violation of such Section 8.

 

18.
No waiver of any of the terms of this Agreement shall be valid unless in writing and signed by both Parties. No waiver or default
of any term of this Agreement shall be deemed a waiver of any subsequent breach or default of the same or similar nature. This
Agreement may not be changed except by a later writing signed by both Parties.

 

    	5

    	 	 	 

    

 

19.
This Agreement shall be binding upon Employee and upon Employee’s heirs, administrators, representatives, executors, trustees,
successors and assigns, and shall inure to the benefit of Company Releasees and each of them, and to their heirs, administrators,
representatives, executors, trustees, successors, and assigns.

 

20.
For the same aforesaid consideration, it is further expressly agreed and understood that the Parties will promptly execute any
and all documents that are necessary and appropriate to effectuate the terms of this Agreement.

 

21.
For the same aforesaid consideration, it is expressly agreed and understood that the contents of this Agreement, including its
terms, any monetary consideration paid therein, and the parties thereto, shall not be disclosed, released or communicated to any
person (except their attorneys, spouses, and tax consultants), including natural persons, corporations, partnerships, limited
partnerships, joint ventures, sole proprietorships or other business entities, except for the purpose of enforcing this Agreement
or any provision therein or pursuant to a lawful subpoena or except as otherwise required by applicable law (including, without
limitation, Federal securities laws). Each Party agrees to give reasonable notice to the other in the event disclosure of this
Agreement is sought by subpoena or otherwise.

 

22.
This Agreement is entered into and shall be interpreted, enforced and governed by the law of the Commonwealth of Massachusetts.
In any proceeding to enforce this Agreement, the prevailing Party shall be entitled to costs and reasonable attorneys’ fees.

 

23.
All notices and other communications hereunder shall be in writing and shall be given by personal delivery, mailed by registered
or certified mail (postage prepaid, return receipt requested), sent by facsimile transmission, sent by a nationally recognized
overnight courier service to the parties at the following addresses (or at such other address for a party as is specified by like
change of address):

 

	 	If
    to the Company:	 	Jeff
    Baxter, CEO
	 	 	 	VBI
    Vaccines Inc.
	 	 	 	222
    Third Street, Suite 2241
	 	 	 	Cambridge,
    MA 02142
	 	 	 	 
	 	If
    to Employee:	 	Curt
    Lockshin
	 	 	 	**********

 

24.
The Parties agree that the Agreement may be executed in multiple originals.

 

25.
To the extent that the Company or counsel for the Company requests the assistance of Employee with respect to any legal matters
relating to the Company following the termination of the Separation Payment Period, including without limitation any lawsuit,
arbitration or other action to which the Company is a party or any inquiry or investigation made or undertaken by any government
authority, Employee shall provide such assistance upon reasonable notice to Employee, Employee shall be paid at the rate of $125
per hour plus any pre-approved expenses. Employee shall provide the Company with weekly invoices for any work performed under
this Section 25, which shall be paid within 15 days of receipt.

 

[Signature
pages follow.]

 

    	6

    	 	 	 

    

 

EXECUTED
as of the Contract Date.

 

	 	/s/ Curt Lockshin
	 	CURT LOCKSHIN
	 	 	 
	 	VBI VACCINES INC.
	 	 	 
	 	By:	/s/ Jeff Baxter
	 	Printed: 	Jeff Baxter
	 	Title: 	Chief Executive Officer

 

	 	VBI
    VACCINES (DELAWARE) INC.
	 	 	 
	 	By:	/s/
    Jeff Baxter
	 	Printed:
    	Jeff
    Baxter
	 	Title:
    	Chief
    Executive Officer

 

	 	SCIVAC
    LTD
	 	 	 
	 	By:
    	/s/
    Jeff Baxter
	 	Printed:
    	Jeff
    Baxter
	 	Title:
    	Chief
    Executive Officer

 

	 	SCIVAC USA, LLC
	 	 	 
	 	By:
    	/s/
    Jeff Baxter
	 	Printed:
    	Jeff
    Baxter
	 	Title:
    	Chief
    Executive Officer

 

    	 

    	 	 	 

    

 

EXHIBIT
A

 

Form
of Resignation Letter

 

December
22, 2016

 

The
Board of Directors

VBI
Vaccines Inc.

222
Third Street, Suite 2241

Cambridge,
MA 02142

 

Gentlemen,

 

Effective
as of December 22, 2016, I hereby resign my positions as Chief Technology Officer of VBI Vaccines Inc. ; VBI Vaccines (Delaware)
Inc.; SciVac Ltd; and SciVac USA, LLC (collectively, the “Companies”) and any and all other office(s) I hold with
the Companies and their respective parents and subsidiaries.

 

I
confirm that my resignation from the positions in the Companies is not predicated on any disagreements or objections as to any
matter relating to the Companies’ operations, policies or practices.

 

	Sincerely,
    	 
	 	 
	 	 
	Curt
    Lockshin

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