Document:

Exhibit 10.3

 

ADVISOR AGREEMENT

 

NANO-TEXTILE LTD.

 

This Advisor Agreement
(the “Agreement”) is made as of 15 October, 2018 (the “Effective Date”), between
Nano-Textile Ltd., an Israeli corporation (the “Company”), and Plug & Play Venture Group, LLC, a
California limited liability company (“Advisor”).

 

Company desires to
retain Advisor to perform certain services and Advisor is willing to perform the services on the terms described below. In consideration
of the mutual promises contained herein, the parties agree as follows:

 

1.       Services.
Advisor has provided and will continue to provide advice and assistance to the Company from time to time as further described
on Exhibit A attached hereto (collectively, the “Services”).

 

2.       Compensation.
The Company agrees to pay Advisor the compensation and expenses described in Exhibit A and Exhibit B for Advisor’s
performance of the Services.

 

3.       Term
and Termination. The term of this Agreement shall continue until terminated by either party for any reason upon written
notice.

 

4.       Independent
Contractor. Advisor’s relationship with the Company will be that of an independent contractor and not that of an
employee. Advisor is not, and will not, be eligible for any employee benefits, nor will the Company make deductions from payments
made to Advisor for employment or income taxes, all of which will be Advisor’s responsibility. Advisor will have no authority
to enter into contracts that bind the Company or create obligations on the part of the Company without the prior written authorization
of the Company. If Advisor is reclassified by a state or federal agency or court as an employee of Company, they will become a
reclassified employee and will receive no benefits except those mandated by state or federal law, even if by the terms of Company’s
benefit plans in effect at the time of the reclassification they would otherwise be eligible for benefits.

 

5.       Nondisclosure
of Confidential Information and Trade Secrets.

 

A.       Agreement
Not to Disclose. Advisor agrees not to use any “Confidential Information” (as defined below) disclosed
to Advisor by the Company for Advisor’s own use or for any purpose other than to carry out, and to engage in discussions
concerning the Services. Advisor agrees to take all reasonable measures to protect the secrecy of and avoid disclosure or use
of “Confidential Information” of the Company in order to prevent it from falling into the public domain
or the possession of persons other than agents of the Company or persons to whom the Company consents to such disclosure. Upon
request by the Company, any materials or documents that have been furnished by the Company to Advisor in connection with the Services
shall be promptly returned by Advisor to the Company.

 

B.       Definition
of Confidential Information. “Confidential Information” means any information, technical data or
know-how (whether disclosed before or after the date of this Agreement), including, but not limited to, information relating to
business and product or service plans, financial projections, customer lists, business forecasts, sales and merchandising, human
resources, patents, patent applications, computer object or source code, research, inventions, processes, designs, drawings, engineering,
marketing or finance to be confidential or proprietary or which information would, under the circumstances, appear to a reasonable
person to be confidential or proprietary. Confidential Information does not include information, technical data or know-how that:
(i) is in the possession of Advisor at the time of disclosure, as shown by Advisor’s files and records immediately
prior to the time of disclosure; (ii) becomes part of the public knowledge or literature, not as a direct or indirect result
of any improper inaction or action of Advisor; or (iii) is obtained by Advisor from a third party without an accompanying duty
of confidentiality and without a breach of such third party’s obligations of confidentiality. Notwithstanding the foregoing,
Advisor may disclose Confidential Information with the prior written approval of the Company or pursuant to the order or requirement
of a court, administrative agency or other governmental body.

 

     

     

    

 

C.       Definition
of Trade Secret. A “Trade Secret” is defined as information
of the Company, without regard to form, including, but not limited to, technical or nontechnical data, a formula, pattern, compilation,
program, device, method, technique, drawing or process, (i) that derives independent economic value,
actual or potential, from not being generally known to or readily ascertainable through appropriate means by other persons who
might obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy.

 

D.       Defend
Trade Secrets Act of 2016 (the “DTSA”). Notwithstanding anything to the contrary set forth in this Agreement,
(i) pursuant to the DTSA (18 U.S.C § 1833(b)(1)), no individual shall be held criminally or civilly liable under federal
or state law for the disclosure of a trade secret that is made: (1) in confidence to a federal, state, or local government official,
either directly or indirectly, or to an attorney; and solely for the purpose of reporting or investigating a suspected violation
of law; or (2) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal, and
(ii) Advisor shall not be prohibited from (1) exercising Advisor’s rights under federal, state, or local law (including,
but not limited to, acting as or cooperating with a whistleblower), (2) cooperating in a government or administrative investigation,
or (3) revealing alleged criminal wrongdoing to law enforcement.

 

6.       No
Rights Granted. Nothing in this Agreement shall be construed as granting any rights under any patent, copyright or other
intellectual property right of the Company, nor shall this Agreement grant Advisor any rights in or to the Company’s Confidential
Information, except the limited right to use the Confidential Information in connection with the Services.

 

7.       Assignment
of Intellectual Property.

 

A.       Assignment.
To the extent that Advisor jointly develops any new inventions, whether or not patentable or registrable under copyright or similar
laws or other intellectual property (collectively, “Intellectual Property”) which relates to the Company’s
technology, Advisor agrees that such Intellectual Property will be the sole property of Company and will be considered “works
made for hire” as that term is defined in the United States Copyright Act. To the extent that ownership of the Inventions
does not by operation of law vest in Company, Advisor will assign and hereby assigns all rights, title and interest to such Intellectual
Property to the Company.

 

8.       Company’s
Right to Disclose. The Company shall have the right to disclose the existence of this Agreement, Advisor’s status
as an Advisor, and to include Advisor’s name, image and profile in various promotional materials, including, but not limited
to, executive summaries, investor presentations and the Company’s website.

 

9.       Assignment;
Severability. Due to the personal nature of the services to be rendered by Advisor, Advisor may not assign this Agreement.
The Company may assign all rights and liabilities under this Agreement to a subsidiary, an affiliate, or to a successor to all
or a substantial part of its business and assets without the consent of Advisor. Subject to the foregoing, this Agreement will
inure to the benefit of and be binding upon each of the heirs, assigns and successors of the respective parties. If any provision
of this Agreement shall be declared invalid, illegal or unenforceable, such provision shall be severed and the remaining provisions
shall continue in full force and effect.

 

    	 	- 2 -	 

     

    

 

10.       No
Conflicts. Advisor represents that Advisor’s compliance with the terms of this Agreement and provision of Services
hereunder will not violate any duty which Advisor may have to any other person or entity (such as a present or former employer),
and Advisor agrees that Advisor will not do anything in the performance of Services hereunder that would violate any such duty.
In addition, Advisor agrees that, during the term of this Agreement, Advisor will promptly notify the Company in writing of any
direct competitor of the Company for which Advisor is also performing services. It is understood that in such event, the Company
will review whether Advisor’s activities are consistent with Advisor remaining as an advisor of the Company.

 

11.       Services
and Information Prior to Effective Date. All services performed by Advisor and all information and other materials disclosed
between the parties prior to the Effective Date will be governed by the terms of this Agreement, except where the services are
covered by a separate agreement between Advisor and Company.

 

12.       Survival.
Section 4 (Independent Contractor), Section 5 (Nondisclosure of Confidential Information), Section 7 (Assignment
of Intellectual Property), Section 13 (Miscellaneous) and this Section 12 (Survival) shall survive termination of
this Agreement.

 

13.       Miscellaneous.
Any term of this Agreement may be amended or waived only with the written consent of the parties. So long as you continue to serve
as an advisor to the Company, you hereby consent to the Company including your name on its marketing materials, website or private
placement memo, or offering materials as an advisor of the Company. This Agreement, including its schedules and exhibits, constitute
the sole agreement of the parties and supersedes all oral negotiations and prior writings with respect to the subject matter hereof.
The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California,
without giving effect to the principles of conflict of laws. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together will constitute one and the same instrument.

 

(signature page follows)

 

    	 	- 3 -	 

     

    

 

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

 

 

	ADVISOR	NANO-TEXTILE LTD.
	 	 
	PLUG
                                    & PLAY VENTURE GROUP, LLC

	 
	a
                                    California limited liability company

	 
	 	 
	________________________________________	______________________________________ 
	Saeed Amidhozour, Manager

	Mr. Joshua Herchcovici

	 	Founder and Chairman

 

	Address for
    Notice:	 
	440
    N. Wolfe Rd.	 
	Sunnyvale,
    CA 94085	 
	 	 

 

 

 

 

 

 

 

 

[Signature Page to Advisor Agreement]

     

     

    

 

EXHIBIT A

 

SERVICES AND COMPENSATION

 

 

		1.	Services.
                                         The Services will include, but will not be limited to, the following:

 

		·	Participation
                                         in Plug and Play’s Fashion for Good Program (the “Program”) which provides
                                         the following:

		o	Engagement
                                         with the corporate partners, venture capital firms, and angel networks that are affiliated
                                         with the Program, to advisor’s best effort, over the course of the Program and
                                         after.

		o	Opportunities
                                         to pitch to corporations, venture capital firms, or other strategic partners, to Advisor’s
                                         best effort, over the course of the Program and after.

		o	Engagement
                                         with Plug and Play’s global network of mentors and advisors including industry
                                         and domain experts.

		·	Participate
                                         and assist in reference calls and information exchanges to our best efforts with venture
                                         capital firms, angel investors, and corporate partners which seek the Advisor’s
                                         independent opinion of the Company.

 

		2.	Compensation.

 

		A.	The Advisor shall receive 781,879
                                         shares of the Company’s Common Stock (the “Shares”) as
                                         compensation in exchange for Services to be provided by it subject to the terms and conditions
                                         of a restricted stock purchase agreement in form and substance attached hereto as Exhibit
                                         B.

 

		B.	The Company will reimburse Advisor,
                                         in accordance with Company policy, for all reasonable expenses incurred by Advisor in
                                         performing the Services pursuant to this Agreement, but only if Advisor receives written
                                         consent from an authorized agent of the Company prior to incurring such expenses and
                                         submits receipts for such expenses to the Company in accordance with Company policy.

 

     

     

    

 

EXHIBIT B

 

RESTRICTED STOCK PURCHASE AGREEMENT

 

(see attached)Exhibit 10.4

 

Nano Textile
Ltd.

 

12
October 2018

 

Plug & Play Venture Group, LLC

370 Convention Way

Redwood City, CA 94063

 

 

		Re:	Participation Rights

 

This letter will confirm
our agreement that effective as of the purchase by Plug & Play Venture Group, LLC and certain of its affiliates (collectively,
“Investor”) of a Simple Agreement for Future Equity (the “SAFE”) of Nano-Textile Ltd. (the “Company”)
in the principal amount of €100,000 (the “Principal Balance”), Investor shall receive the rights
set forth herein, subject to the terms and conditions set forth herein. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed thereto in the SAFE.

 

1.            Participation
Rights in Equity Financing

 

(a)       General.
Investor shall have the right of first offer to purchase such Investor’s Pro Rata Share (as defined below) of all (or any
part) of any New Securities (as defined in Section 1(b) below) that the Company may issue in the Equity Financing (as defined in
the SAFE), provided, however, such Investor shall have no right to purchase any such New Securities if such Investor cannot demonstrate
to the Company’s reasonable satisfaction that such Investor is at the time of the proposed issuance of such New Securities
an “accredited investor” as such term is defined in Regulation D under the Securities Act of 1933, as amended.
Investor’s “Pro Rata Share” for purposes of this right of first offer is a number of the New Securities issued
in the Equity Financing sufficient for Investor to maintain its ownership percentage of two and twenty-three hundredths percent
(2.23%) of the Company’s stock on an as-converted and fully-diluted basis as of the close of the Equity Financing. Investor
shall be entitled to apportion the right of first offer hereby granted it pursuant to this Section 1 among itself and its affiliates
in such proportions as it deems appropriate.

 

(b)       New
Securities. “New Securities” shall mean shares of capital stock or securities convertible into or exchangeable
or exercisable for capital stock issued by the Company in connection with a Equity Financing (as defined in the SAFE).

 

 

(c)       Procedures.
In the event that the Company proposes to undertake an issuance of New Securities, it shall give to Investor a written notice of
its bona fide intention to issue New Securities (the “Notice”) describing the type of New Securities and the price
and the general terms upon which the Company proposes to issue such New Securities. Investor shall have ten (10) days from the
date such Notice is effective (such date, the “ROFR Termination Date”) given in accordance with the notice provisions
in the SAFE to agree in writing to purchase such Investor’s Pro Rata Share of such New Securities for the price and upon
the general terms specified in the Notice by giving written notice to the Company and stating therein the quantity of New Securities
to be purchased (not to exceed such Investor’s Pro Rata Share). If all New Securities that Investor is entitled to obtain
pursuant to this Section 1 are not elected to be purchased as provided herein, the Company may offer the remaining unsubscribed
portion of such New Securities to any person or persons at a price not less than that, and upon terms no more favorable to the
offeree than those, specified in the Notice. 

 

     

     

    

 

2.            Participation
Rights after the Equity Financing. The Investor will execute and deliver to the Company all transaction documents related to
the Equity Financing; provided, however, that such transaction documents will provide the Investor (or one or more of its
affiliates) with a right to purchase that number of shares necessary to maintain its pro rata ownership of the Company, on a fully-diluted
basis calculated immediately prior to the closing of the Equity Financing, in only the subsequent round of equity financing by
the Company occurring after the Equity Financing, on the same terms and conditions thereof.

 

3.            Information
Rights.  Company shall provide Investor with an operations report once per year, on January 15th each year (“Annual
Investor Update”). The Annual Investor Update will include a current capitalization table, balance sheet, profit and loss
statement, budget/forecast for the next year, an operations report in a manner determined by the CEO, and any and all changes in
Material Debt raised by Company (”Annual Business Report”). Additionally, Company shall give Investor as much advance
notice as possible when raising Material Debt. Material Debt includes, but is not limited to, SAFEs, convertible notes and venture
debt (“Material Debt”).

 

4.            Anti-Dilution
Protection. The Company hereby agrees to issue the Investor the number of additional shares of common as is necessary to preserve
its then ownership stake in the Company in the event of an issuance of equity securities to Zhongguancun Translational Medicine
(“ZTM”), or its affiliates, in satisfaction of any existing obligation it has to issue ZTM such securities subsequent
to the date on which the Investor receives any SAFE Preferred Stock or other securities in connection with or arising out of the
SAFE.

 

5.            Miscellaneous.
This letter agreement shall be governed by and construed under the laws of the State of California. This letter agreement constitutes
a valid and binding agreement of the parties hereto, enforceable against each party in accordance with the law. The rights described
herein shall terminate and be of no further force or effect upon the first to occur of (i) the closing of a Change of Control (as
defined in the SAFE) or the liquidation, dissolution or winding-up of the Company, or (ii) such date as Investor holds no securities
of the Company. This letter agreement may be executed in any number of counterparts, each of which shall be enforceable against
the parties that execute such counterparts, and all of which together shall constitute one instrument. This letter agreement and
the SAFE contain the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and
thereof, and supersede any prior agreements or understandings, whether written or oral. 

 

     

     

    

 

 

	 	Nano Textile Ltd.
	 	 
	 	By:                                                  
	 	 
	 	Mr. Joshua Herchcovici 
	 	 
	 	Founder and Chairman

 

 

AGREED AND ACCEPTED:

 

Plug & Play Venture Group, LLC

 

 

 

By: _______________________________

Saeed Amidhozour, Manager

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