Document:

Exhibit 10.46

Employment Contract

 

Party A (Employer)

Name of Company: Shenzhen Highpower Technology
Co., Ltd.

Address: Building A1, 68 Xinxia Street, Pinghu,
Longgang, Shenzhen, Guangdong, People’s Republic of China

Legal Representative: Dang Yu Pan

Tel: ***

Party B (Employee):

Name of Employee: Sunny Pan

Sex: Male

Birth Date:

ID Card / Passport No.: ***

Address:

Tel: ***

 

Considering that

 

Party B is willing to be employed by Party
A and contribute wisdom to Party A’s enterprise. Party A is willing to recruit Party B and delicate to increasing investors’
ROI and employees’ welfare at the same time.

 

Party A has informed Party B of job content,
work condition, work place, occupational hazard, safety production situation, labor remuneration, labor discipline and other situation
which Party B demands to know.

 

Party B has been aware of its job content,
work condition, work place, occupational hazard, safety production situation, labor remuneration, labor discipline and other situation.

 

Party A had ensured Party A that the materials
related to employment provided by Party B is real and legal.

 

The Parties, intending to be bound hereby,
agree to enter into this Employment Contract on the basis of equality, free will and mutual consultation pursuant to the Labor
Law of the People’s Republic of China (“PRC”), the Labor Contract Law of the PRC and other laws, regulations
and rules.

 

Article 1 Term of the employment contract

1. Both Party A and Party B agree that the
term of the employment contract shall be determined as set forth in Item 1 below:

 

Hires duration: From January 1, 2018 to December
31, 2022.

 

Article 2 Job Description and Workplace Location

1. Party B shall engage in the job of CFO.

Party A may adjust reasonably Party B’s
job positions and job content based on personnel system, operational business needs and Party B’s performance.

 

     

     

    

 

2. Party A shall have the right to adjust
Party B's position (including but not limited to, the downgrade of the position of Party B in accordance with Party A's performance-related
system and Party B's performance appraisal rating is D). If Party B is still incompetent after adjustment, Party A shall have the
right to cancel the Employment contract.

3. Party B's position adjustment shall not
affect the validity of this contract during the period of employment.

4. Party A may change Party B’s workplace
location according to operation and business needs and Party B is willing to obey the agreement, change Party B’s workplace
location and complete work task initiatively.

Party B’s workplace location may be
arranged at as below:

(1)               
Shenzhen Pinghu Street

(2)               
Shenzhen Guanlan Street

(3)               
Huizhou (Industrial Park)

(4)               
Ganzhou (Industrial Park)

 

Article 3 Working Hours, Rest and Leave Entitlements

1. The working hours of Party B shall be determined
as set forth in Item 1 below.

Party A shall comply with Party A's manage
regulations and carry out Party B's work hours and rest leave in accordance with the regulations of the State and in combination
with the actual conditions of production and work.

1. Both Party A and Party B agree that the
term of the Employment contract shall be determined as set forth in Item 1 below:

(1)The normal working hours system

In addition to fixed overtime, Party B shall
apply for overtime by letter which shall be approved by the leader and handed to Human Resources Department for final approval.
The confirmed overtime is allowed to take working days off in the same month.

(2)A cumulative working hours system

a. It means that working hours shall be calculated
comprehensively by year, in the meanwhile Party A shall ensure that Party B’s working time per day and per week shall basically
accord to the legal standard working hours.

(3) The non-fixed working hours system

Party B’s working hours shall be determined
by job demand and Party A’s arrangement.

2. Party A shall adopt reasonable working
hours methods like co-located work, co-located rest, holidays by turns, days off and flexible working hour to ensure Party B’s
Rest and Leave Entitlements and the completion of production and work task.

3. Vacation

Party B shall take the vacation according
to Party A’s regulation.

 

Article 4 Work Remuneration

1. Party A shall formulate salary distribution
system by law and inform Party B that the wages paid by Party A to Party B shall not be less than the minimum wage standard stipulated
by the people’s government.

(1) Party B’ remuneration shall be approved
in accordance with the salary management system implemented by Party A, and the remuneration of Party B will be adjusted with the
adjustment of the salary system of Party A.

(2) Party A does not pay Party B a fixed salary,
which is linked to Party B's actual attendance. The performance bonus shall be carried out in accordance with Party A's salary
system and regulations such as performance appraisal.

 

     

     

    

 

(3) Party A has the right to review the wages
of Party B periodically or intermittently, and to adjust the salary and treatment of Party B accordingly according to the operating
condition of Party A, the change of position and rank of Party B and the results of performance appraisal.

 

Article 5 Social insurance and social benefits

1. Party A and B participate in social insurance
and pay social insurance premiums in accordance with the relevant provisions of the state and provinces and municipalities.

2. If Party B has occupational diseases or
work-related injuries, Party A shall execute the regulations according to Law of Occupational Disease Prevention and Treatment
and The Regulation on Work Injury Insurance.

 

Article 6 Labor Protection, Working Conditions
and Protections Against Occupational Hazards

1. According to the related stipulation of
labor protection from the state, province and city, Party A provides standard working condition and necessary labor protection
facilities, insuring Party B’s safety and health during work.

2. According to the related stipulation from
the state, province and city, Party A shall provide special protection for female workers and underage workers.

3. Party B is entitled to refuse Party A’s
illegal command and command on risky work. Party B is entitled to demand Party A to correct the behaviors on safety and health
hazards.

 

Article 7 Regulations

 

1. Party A shall inform Party B of rules and
regulations formulated by Party A according to law.

2. Party B shall abide by rules and regulations
formulated by Party A according to law and the related stipulation of labor protection from the state, province and city, finish
the work tasks, improve vocational skills, and observe the safety operating rules and professional ethics.

3. If Party B violates against labor discipline
and rules and regulations, Party A is entitled to hold accountable for Party B and terminate the contract according to the Employment
contract. If hence Party A suffer loss, Party A has right to pursue Party B's liability for damages.

4. Party B shall obey the related stipulation
of Birth Control from the state, province and city.

 

Article 8 Party A’ Rights and obligations

1. Party A has the right to adjust Party B's
working position and working place according to Party B's actual working ability and working needs.

2. Party A has the right to manage Party B
in accordance with Party A's rules and regulations

3. Party B's post achievements and intellectual
property rights during the period of employment shall be owned by Party A.

4. Party A can provide Party B with special
training according to the need of work, and shall request Party B to sign training agreement accordingly.

 

Article 9 Party B’ Rights and obligations

1. Party B has the basic working rights and
related benefits as prescribed.

2. Party B is entitled to the corresponding
remuneration and promotion opportunities, and has the right to enjoy the rest and vacation prescribed by Party A's rules and regulations.

3. Party B has the right to propose work improvement
suggestions.

 

     

     

    

 

4. Party B has the obligation to safeguard
Party A's interests and reputation and to abide by Party A's rules and regulations.

5. Party B has the obligation to strictly
abide by Party A's trade secrets and technical secrets in strict accordance with the requirements of this contract, Party A's rules
and regulations, and the relevant agreements and undertakings signed by Party B.

6. Party B guarantees that all kinds of documents
and other relevant information for the work of providing goods to Party A are consistent with the actual situation of the person,
and there is no falsehood or fraud.

7. Party B shall not engage directly or indirectly
through any person, partnership, business or other entity to engage in any commercial activity that may create actual or expected
conflicts of interest with Party B's duties acting in the best interests of Party A at any time.

 

Article 10 Secondary occupation restriction

Party B promises that during the term of this
contract, without the written consent of Party A or the relevant agreement with Party A, it shall not engage in the second occupation
directly or indirectly, whether or not it is paid for such acts or whether it is utilized in Party A. Working time. These second
occupations include, but are not limited to: (1) being employed by any third party or providing services to any third party, whether
or not such third parties produce or operate similar products or provide similar services with Party A, and These third parties
act as partners, shareholders, directors, supervisors, senior management, employees, representatives, agents or consultants. or
(2) investing in a business. If Party B violates these regulations, Party A has the right to deal with Party B until the contract
is terminated.

 

Article 11 Intellectual Property

1. Both parties confirm that Party B's work
during Party A's work (including one year from the date of resignation), due to the performance of his duties or the tasks assigned
by Party A, or the use of Party A's material conditions and business information, etc. Inventions, utility models, designs, know-how,
products, computer software, works or other forms of intellectual achievement that are conceived, developed, created or developed
by themselves or with others, All intellectual property rights or other property rights (hereinafter collectively referred to as
“intellectual property rights”) contained in or related to them are owned by Party A.

2. Party A has the right to use, transfer
or authorize others to use the above intellectual property rights without the consent of Party B.

3. Party A and Party B agree that Party A's
remuneration package paid to Party B has considered all the awards that Party B should receive under all applicable laws and this
contract for the granting of patent rights by Party B's service inventions and the implementation, licensing or transfer of the
aforementioned patent rights. , remuneration and other benefits.

 

Article 12 Confidentiality agreement and competition
agreement

Party B during the term of this contract and
after the stop or remove of the contract, shall not disclose to any third party any form of commercial and technical secrets of
party a, and business information (including but not limited to party a's client list, management mode, management plan, way to
trade, trade contracts, financial status, etc.) in the party A and party B with party a's requirements during the work the other
confidential information, arty B shall not use or allow others to use the above secrets or information, and shall not use such
secrets or information for profit or to damage the interests of party A and any third party. The above confidentiality obligations
shall also apply to the business and technical secrets and business information obtained by party b for work reasons and belonging
to a third party (such as party a's customers). If party b violates the confidentiality obligation, it shall stop the breach and
compensate party for all losses.

 

     

     

    

 

The materials and information related to party
A's business obtained by party b during the labor contract shall be owned by party a, and party b shall return all such materials
and information to party a before leaving the company.

Party B agrees that party a may enter into
a separate non-competition agreement with party B according to the nature of party b's position or relevant regulations of the
company, which stipulates that party B shall not compete with party A in any way within a certain period after the rescission or
termination of this contract. The rights and obligations of party A and party B in respect of engagement shall be subject to the
separate engagement limitation agreement.

 

Article 13 Work handover

1. Regardless of the reason for termination
or cancellation of this contract, Party B shall handle the handover of work. Party B shall complete the following procedures in
accordance with the requirements of Party A:

(1) Duty of work and assignment of work: including
but not limited to the presentation of the work content, the progress of the work/project being processed, the customer relationship,
and the return of documents and materials, files and information containing Party A’s technical secrets or trade secrets.
System permissions, etc. These work assignments should have detailed written material descriptions to make the post-transfer work
go smoothly.

(2) Accept and cooperate with Party A's necessary
audit of Party B's work during its work.

(3) Returning the property of Party A, including
but not limited to returning office assets to Party A, borrowing funds, signing the letter of commitment, returning the keys, label,
meal card and any business held or controlled by Party A. Or the property associated with the transaction, etc.

2. If Party B fails to handle or hand in the
work handover procedures in a timely manner, causing losses to Party A, Party B shall compensate them.

3. If Party B causes economic losses to Party
A due to personal reasons during the work period, or Party B shall be liable for compensation according to this contract or the
training agreement signed by both parties, Party B shall agree that Party A may settle the settlement payment from Party B (including
but not limited to wages). , unsigned labor contract double wages, overtime pay, compensation, compensation, various vacation benefits,
social insurance, provident fund, etc.) deducted accordingly.

 

Article 14 Contract Changes

1. Both parties may change the contract by
consensus. The change contract should be in writing. The change contract should be in writing. Each party to the revised contract
text shall hold one copy.

2. The relevant content of this contract may
be changed in one of the following situations:

(1) The objective situation on which the contract
was based was significantly changed, resulting in the failure to perform this contract;

(2) Party A shall reasonably adjust the work
position of Party B according to its personnel system, business needs and the performance of Party B;

(3) Party B cannot work or is not qualified
for the original post (type of work).

 

Article 15 Cancellation and Termination the
Employment contract

1. Except for the renewal of the agreement
by both parties, the labor relationship between the two parties shall terminate upon the expiration of this contract.

 

     

     

    

 

2. In any of the following circumstances,
the labor contract is terminated:

(1) The expiration of the labor contract;

(2) Party B retires or begins to enjoy basic
pension insurance benefits according to law;

(3) Party B dies or is declared dead or declared
missing by the people's court;

(4) Party A is declared bankrupt according
to law;

(5) Party A is revoked of the business license,
ordered to close, canceled, or Party A decides to dissolve in advance;

(6) Other legal circumstances.

3. If Party B has one of the following circumstances,
Party A has the right to terminate the labor contract:

(1) During the probation period, the assessment
will not pass (the grade of the corrective defense is C or below) or the recruitment requirements will not be met (three days notice);

(2) Serious violation of Party A's rules and
regulations;

(3) Party B is sick or has a public injury,
and is engaged in the original work after the prescribed medical period has expired, and cannot engage in any work arranged by
Party A;

(4) Not qualified for work, after training
or adjusting jobs, still not qualified for work;

(5) The objective situation on which the labor
contract was based was significantly changed, resulting in the inability to perform the labor contract. After consultation between
the two parties, it was not possible to reach an agreement on changing the content of the labor contract;

(6) Serious misconduct, malpractice, corruption
and other serious bad behaviors, causing significant damage to Party A’s interests or reputation;

(7) Engaged in the second occupation, which
has a serious impact on the completion of Party A’s work tasks, or has been rejected by Party A and refused to correct it;

(8) The information provided by Party B's
personal resume and job application registration form (including but not limited to the degree certificate, diploma, foreign language
grade certificate, qualification certificate, ID card and other valid personal documents and information) does not match the actual
situation of the person;

(9) By means of fraud, coercion or victorious
or other means, Party A may enter into or change this contract in violation of the true meaning;

(10) Deliberately disclose the business secrets
of Party A;

(11) Private speculation;(The so-called speculation
refers to: 1. The act of transferring the orders of the company's customers to the company. 2. The order placed by the company's
customers is the type and model of the battery that Party A did not produce or because of the price factor. If the battery is considered
for outsourcing, Party B will transfer the order to other companies without the consent of Party A);

(12) Party B is held criminally responsible;

(13) Other legal circumstances

4. If Party A forces Party B to work by means
of violence, threats or illegal restrictions on personal freedom, or Party A violates the rules and directs the risky operation
to endanger the personal safety of Party B, Party B may immediately terminate the labor contract without prior notice to Party
A.

5. Party B shall notify Party A in writing
30 days in advance (three days before the trial period), and the labor contract may be terminated. If Party B terminates the labor
contract in violation of the terms of this agreement and causes losses to Party A, it shall be liable for compensation.

6. Party B may terminate this contract in
advance by mutual agreement.

7. If Party B terminates the contract in advance
and pays Party A the liquidated damages according to the agreement signed by both parties, Party A shall pay Party A the liquidated
damages.

 

     

     

    

 

8. In any of the following circumstances,
Party A shall have the right to terminate the labor contract after notifying Party B in writing 30 days in advance or paying Party
B's salary for one month;

(1) Party B is sick or not injured because
of public injury. After the prescribed medical period expires, Party B cannot perform the original work, nor can it engage in any
work arranged by Party A;

(2) Party B is not qualified for the job.
After training or adjusting the position, Party B is still not qualified for the job;

(3) The objective situation on which the
labor contract was based was significantly changed, resulting in the inability to perform the labor contract. After
consultation between the two parties, it was not possible to reach an agreement on changing the content of the labor
contract;

(4) Other legal circumstances.

9. Party A may have one of the following circumstances:

(1) Carry out bankruptcy reorganization;

(2) Serious difficulties in production and
operation;

(3) The enterprise changes production, major
technological innovation or adjustment of business methods. After the labor contract is changed, the personnel still need to be
reduced;

(4) The objective economic situation on which
the labor contract was concluded was significantly changed, resulting in the failure to perform this contract;

(5) Other legal circumstances.

 

Article 16 Legal responsibilities for violating
the Employment contract

1. Regarding any party who violates the Employment
contract and raise the revocation and causes economic losses to the other party, they shall bear the legal responsibility according
to how serious the result and responsibility is; if two side both have made a mistake, according to the real situation, two sides
shall bear legal responsibility separately.

2. With C funding the training, if Party B
terminate the Employment contract in advance, Party B shall compensate Party A for the following losses:

(1) Training fee: training compensation fee=
(the Contract total months – served months) / the Contract total months * actual cost for training

(2) the served months count from the day on
which the Contract is signed. 

 

Article 17 The remove of Employment contract
and termination process

When Party A and Party B cancel and terminate
the Contract, Party B shall transfer the work in accordance with the agreement of the two sides. Party A shall issue a written
confirmation to Party B in accordance with the law and do the file and social security transfer within 15 days.

 

Article 18 Dispute Settlement

Labor disputes occurring in a joint venture
shall first of all be solved through consultation by the two parties. If consultation fails, they can ask the worker representative
congress’s permanent branches for help to solve the dispute, or apply to the labor dispute mediation committee of their unit
for mediation; or apply arbitration committee for labor disputes for judgment directly. If two parties have an objection to the
arbitral decision, they shall obey the decision. If the arbitration ruling is not accepted, then litigation may be commenced in
the People's Court.

 

Article 19 After the equal agreement between
Party A and Party B, the following contents are agreed upon.

 

     

     

    

 

Party A and Party B unanimously agree that
Party B and Party A shall automatically terminate the labor contract signed by Party A and other related companies of Party A before
the signing of this contract from the date of signing this labor contract.

 

Article 20 Other

1. The related regulatory framework have the
same legal force as the Contract.

2. The unsettled affairs in the Contract or
the terms which is against the existing rules and regulations shall be executed according to the existing rules and regulations.

3. The contract shall go into force after
the signature of both parties. Alteration or signature without written authorization is invalid.

4. The unsettled affairs in the Contract shall
be executed according to Party A’s rules and regulations.

5. If there is any change in the ID/passport
number, home address/residence address and/or the location of the account provided by Party A, Party B shall notify Party A within
5 working days from the date of the change. If Party B fails to notify Party A in accordance with the provisions of this Article,
Party A shall send the documents in accordance with the address and relevant information provided by Party B to Party A for the
last time.

 

Article 21 This Contract is in duplicate,
each of the parties has one copy. The contract shall go into force after the signature of both parties.

 

	Party A	Party B
	Signature	Signature
	Date	DateExhibit 4.25

ENTERA BIO LTD.

 2018 EQUITY INCENTIVE PLAN

 

STOCK OPTION AWARD AGREEMENT - ISRAELI EMPLOYEES – TRUSTEE 

 CAPITAL GAIN ROUTE

 

___________________, 20__

Subject to the terms and conditions set forth in this grant letter (the “Grant Letter”) and the award agreement set forth in Exhibit A (the Grant Letter and Exhibit A, collectively this “Agreement”), Entera Bio Ltd., a company organized under the laws of the State of Israel (the “Company”), has granted you as of the Grant Date set forth below an option to purchase Shares (the “Award”).  The Award is granted under and is subject to the Entera Bio Ltd. 2018 Equity Incentive Plan (together with the Israeli Sub Plan, the “Plan”).  Unless defined in this Agreement, capitalized terms shall have the meanings assigned to them in the Plan.  The provisions of the Plan shall control in the event of a conflict among the provisions of the Plan, this Agreement and any descriptive materials provided to you.

AWARD TERMS

 

	
PARTICIPANT:

	
GRANT DATE:

	
SHARES SUBJECT TO AWARD:

	
PER SHARE EXERCISE PRICE:

	
VESTING TERMS:

 

	
TAX ROUTE: Trustee Capital Gains Route

 

Please review this Agreement and let us know if you have any questions about this Agreement, the Award or the Plan.  You are advised to consult with your own tax advisors in respect of any tax consequences arising in connection with this Award.

If you have questions please contact [●] via email at [●].  If not, please provide your signature, address and the date for this Agreement where indicated below.

By signing below, you declare as follows: (i) you shall comply with all terms and conditions set forth in Section 102 with regard to the applicable tax track and the rules and regulations promulgated thereunder, as amended from time to time; (ii) you are familiar with, and understand the provisions of Section 102 in general, and the tax arrangement under the applicable tax track in particular, and its tax consequences; (iii) you agree that the Option and any Shares that may be issued in connection with the Option (or otherwise in relation to the Option), will be held by the Trustee for at least the duration of the Holding Period; (iv) you understand that any release of such option or shares from trust, or any sale of the share prior to the termination of the Holding Period, will result in taxation at marginal tax rate, in addition to deductions of appropriate social security, health tax contributions or other compulsory payments; and (v) you agree to the provisions of the form Trust Deed signed between the Trustee, the Company.

 

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

 

	 	
ENTERA BIO LTD.

	 
	 	 	 	 
	
 

	
By: 

		 
	 	 	 	 
	 	 	Name:	 
	 	 	 	 
	 	 	Title:	 

 

	 	

PARTICIPANT

	 
	 	 	 	 
	
 

		 	 
	 	 	 Name	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
Address

	 
	 	 		 
	 	 	Date: _____________	 

 

                                     

EXHIBIT A

 

ENTERA BIO LTD. 2018 EQUITY INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT – TRUSTEE CAPITAL GAINS ROUTE

 

The following award agreement (this “Award Agreement”) sets forth the agreement of the parties to the Grant Letter to which this Award Agreement is appended with respect to the grant of stock options described in the Grant Letter. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan and the Grant Letter.

 

1.          Grant of Option.  The Company hereby grants to the Participant an option to purchase all or any part of the number of Shares set forth in the Grant Letter (“Option Shares”) at the per-share exercise price set forth in the Grant Letter (the “Exercise Price”), pursuant to the provisions of the Plan, the terms of which are incorporated herein by reference, and further subject to the terms and conditions set forth herein (the “Option”).

 

2.          Terms and Conditions.  It is understood and agreed that the Award evidenced hereby is subject to the following terms and conditions:

 

(a)          Vesting of Award.  Subject to the provisions of this Section 2 and Sections 3 and 4, the Option shall vest and become exercisable in accordance with the vesting schedule set forth in the Grant Letter.  In the event of a Termination of Service of the Participant prior to the date on which the Award otherwise becomes vested, the unvested portion of the Award shall immediately be forfeited by the Participant and become the property of the Company.

 

(b)          Term of Option.  The term of the Option shall expire at close of the principal stock market or exchange on which the Shares are quoted or traded on the tenth (10th) anniversary of the Grant Date, unless terminated earlier in accordance herewith.  In no event may any portion of the Option be exercised after it has expired.

 

(c)          Manner of Exercise.  The Participant may, subject to the limitations in this Agreement and the Plan, exercise all or any portion of the Option that has vested.  In order to exercise the Option, the Participant shall (i) deliver to the Company a written notice specifying the number of Option Shares to be purchased and (ii) remit the aggregate Exercise Price to the Company in full, payable (A) in cash or by check, bank draft or money order payable to the order of the Company or (B) any other method acceptable to the Administrator.

 

(d)          No Right to Future Awards.  Any Award granted under the Plan shall be a one-time Award that does not constitute a promise of future grants.  The Company, in its sole discretion, maintains the right to make available future grants under the Plan.

 

3.          Exercise in Event of Death, Disability or Other Termination of Service.

 

(a)          Death or Disability.  If the Participant incurs a Termination of Service due to such Participant’s death or Disability, all or any part of the Option which was exercisable by the Participant immediately prior to his or her death or Disability may be exercised by the Participant or the Participant’s designated Beneficiary, estate or the person to whom such Option is transferred by will or the applicable law of descent and distribution, at any time before the earlier of (i) the twelve (12) month anniversary of the date of the Termination of Service and (ii) the time such Option would otherwise expire.  To the extent the Option was not exercisable on the date of the Participant’s Termination of Service as a consequence of his or her death or Disability, such portion of the Option shall terminate.

 

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(b)          For Cause.  If the Participant incurs a Termination of Service by the Company for Cause, any Options held by the Participant shall be immediately cancelled and may not thereafter be exercised, even if exercisable on the date of such Termination of Service.

 

(c)          Exercise Following Termination of Service.  If the Participant incurs a Termination of Service for any reason other than the Participant’s death or Disability or for Cause, the Option held by the Participant at the time of such Termination of Service, to the extent vested at such time, may be exercised at any time before the earlier of (i) the three (3) month anniversary of the date of the Termination of Service and (ii) the time such Option would otherwise expire; provided that if the Participant dies within such three-month period, the Options (to the extent vested) may be exercised by the Participant’s designated Beneficiary, estate or the person to whom such Option is transferred by will or the applicable law of descent and distribution, at any time before the earlier of (i) the twelve (12) month anniversary of the date of the Termination of Service and (ii) the time such Option would otherwise expire.  Except as set forth in this Section 3(c), to the extent the Option was not exercisable on the date of the Participant’s Termination of Service, such portion of the Option shall terminate.

 

4.          Treatment on Change in Control.  In the event of a Change in Control, the Option will be treated in accordance with Section 11(b) of the Plan.

 

5.          Trust. The Option is intended to be subject to tax under the trustee capital gains route pursuant to section 102(b)(2) of the Israeli Income Tax Ordinance [New Version] 1961 ("Section 102"), subject to compliance with the terms and conditions of Section 102 and the Income Tax Rules (Tax Benefits in Share Issuance to Employees) 5763-2003 (the "Rules"). The Options and the Shares issued upon exercise or otherwise and/or any additional rights, including without limitation any right to receive any dividends or any Shares received as a result of an adjustment made under the Plan, that may be granted in connection with the Option (the "Additional Rights") shall be issued to or controlled by the Trustee for the benefit of the Participant under the provisions of Section 102 and the Rules pursuant to the capital gains route for at least the period stated in Section 102.  In the event the Option or underlying Shares do not meet the requirements of Section 102, such Option and the underlying Shares shall not qualify for the favorable tax treatment under the Capital Gains Route of Section 102.  The Company makes no representations or guarantees that the Option will qualify for favorable tax treatment and will not be liable or responsible if favorable tax treatment is not available under Section 102. Any fees associated with any vesting, sale, transfer or any act in relation to the Option shall be borne by the Participant and the Trustee and/or the Company and/or any Affiliate shall be entitled to withhold or deduct such fees from payments otherwise due to from the Company or an Affiliate or the Trustee. In accordance with the requirements of Section 102 and the Capital Gains Route, the Participant shall not sell nor transfer the Shares or Additional Rights from the Trustee until the end of the required Holding Period.  Notwithstanding the above, if any such sale or transfer occurs before the end of the required Holding Period, the sanctions under Section 102 shall apply to and shall be borne by the Participant.

 

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6.          Tax Liability; Withholding Requirements. The Participant shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any interest that accrues thereon, that the Participant incurs in connection with the receipt, vesting or exercise of any Option granted hereunder. The Company and/or the Trustee shall withhold taxes according to the requirements under Applicable Law, including withholding taxes at source. Furthermore, the Participant agrees to indemnify the Company and/or the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Participant. The Company and/or the Trustee may make such provisions and take such steps as they may deem necessary or appropriate for the withholding of all taxes required by law to be withheld with respect to Options under the Plan and the exercise, vesting and/or sale or other disposition thereof, including, but not limited to, (i) deducting the amount so required to be withheld from any other amount (or Shares issuable) then or thereafter to be provided to the Participant, including by deducting any such amount from the Participant’s salary or other amounts payable to the Participant, to the maximum extent permitted under law and/or (ii) requiring the Participant to pay to the Company the amount so required to be withheld as a condition of the issuance, delivery, distribution or release of any Shares. The Company and/or the Trustee shall not be required to release any Shares to the Participant until all required withholding taxes have been paid by the Participant. In addition, the Participant will be required to pay any amount due in excess of the tax withheld and transferred to the ITA, pursuant to applicable tax laws, regulations and rules.

 

7.          References.  References herein to rights and obligations of the Participant shall apply, where appropriate, to the Participant’s legal representative or estate without regard to whether specific reference to such legal representative or estate is contained in a particular provision of this Agreement.

 

8.          Not Salary, Pensionable Earnings or Base Pay.  The Participant acknowledges that the Award shall not be included in or deemed to be a part of (a) salary, normal salary or other ordinary compensation, (b) any definition of pensionable or other earnings (however defined) for the purpose of calculating any benefits payable to or on behalf of the Participant under any pension, retirement, termination or dismissal indemnity, severance benefit, retirement indemnity or other benefit arrangement of the Company or any Subsidiary or (c) any calculation of base pay or regular pay for any purpose.

 

9.          Forfeiture Upon Breach of Certain Other Agreements.  Subject to Section 10, the Participant’s breach of any non-competition, non-solicitation, confidentiality, non-disparagement, assignment of inventions or other intellectual property agreement that the Participant may be a party to with the Company or any Affiliate (the “Restrictive Covenant Agreement”) is incorporated herein by reference, in addition to whatever other equitable relief or monetary damages that the Company or any Affiliate may be entitled to, shall result in automatic rescission, forfeiture, cancellation or return of any Shares (whether or not vested) held by the Participant. To the extent that the Participant has not executed the Restrictive Covenant Agreement, this Agreement and the Award thereunder shall not be effective unless and until the Participant executes the Restrictive Covenant Agreement, and this Agreement and the Award thereunder shall be revoked if the Participant does not execute the Restrictive Covenant Agreement within thirty (30) days following the Grant Date.

 

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10.        Whistleblower Protection; Defend Trade Secrets Act.

 

(a)          Nothing in this Agreement or otherwise limits the Participant’s ability to communicate directly with and provide information, including documents, not otherwise protected from disclosure by any Applicable Law or privilege to the Securities and Exchange Commission (the “SEC”), any other federal, state or local governmental agency or commission (“Government Agency”) or self-regulatory organization regarding possible legal violations, without disclosure to the Company.  The Company may not retaliate against the Participant for any of these activities, and nothing in this Agreement requires the Participant to waive any monetary award or other payment that the Participant might become entitled to from the SEC or any other Government Agency or self-regulatory organization.

 

(b)          Pursuant to the Defend Trade Secrets Act of 2016, the parties hereto acknowledge and agree that the Participant shall not have criminal or civil liability under any Federal or State trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition and without limiting the preceding sentence, if the Participant files a lawsuit for retaliation by the Company for reporting a suspected violation of law as contemplated by the preceding sentence, the Participant may disclose the relevant trade secret to his attorney and may use such trade secret in the ensuing court proceeding, if the Participant (X) files any document containing such trade secret under seal and (Y) does not disclose such trade secret, except pursuant to court order.

 

11.          Recoupment/Clawback.  This Award (including any amounts or benefits arising from this Award) shall be subject to recoupment or “clawback” as may be required by Applicable Law, stock exchange rules or by any applicable Company policy or arrangement the Company has in place from time to time.

 

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12.        Miscellaneous.

 

(a)          Notices.  Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by courier, or sent by certified or registered mail, postage prepaid, return receipt requested, duly addressed to the party concerned at the address indicated below or to such changed address as such party may subsequently by similar process give notice of:

 

If to the Company:

 

Entera Bio Ltd.

Kiryat Hadassah

Minrav Building – Fifth Floor

Jerusalem 9112002

Israel

Attention: [●]

 Email: [●]

 

If to the Participant:

 

At the Participant’s most recent address shown on the signature page of the Grant Letter, or at any other address which the Participant may specify in a notice delivered to the Company in the manner set forth herein.

 

(b)          Entire Agreement.  This Agreement, the Plan and any other agreements, schedules, exhibits and other documents referred to herein or therein constitute the entire agreement and understanding between the parties in respect of the subject matter hereof and supersede all prior and contemporaneous arrangements, agreements and understandings, both oral and written, whether in term sheets, presentations or otherwise, between the parties with respect to the subject matter hereof.

 

(c)          Severability.  If any provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or this Agreement under any law deemed applicable by the Board, such provision shall be construed or deemed amended to conform to Applicable Law, or if it cannot be so construed or deemed amended without, in the determination of the Board, materially altering the intent of this Agreement, such provision shall be stricken as to such jurisdiction, and the remainder of this Agreement shall remain in full force and effect.

 

(d)          Amendment; Waiver.  No amendment or modification of any provision of this Agreement that has a material adverse effect on the Participant shall be effective unless signed in writing by or on behalf of the Company and the Participant; provided that the Company may amend or modify this Agreement without the Participant’s consent in accordance with the provisions of the Plan or as otherwise set forth in this Agreement.  No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.  Any amendment or modification of or to any provision of this Agreement, or any waiver of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which made or given.

 

(e)          Successors and Assigns; No Third-Party Beneficiaries.  This Agreement shall inure to the benefit of and be binding upon the Company and the Participant and their respective heirs, successors, legal representatives and permitted assigns.  Nothing in this Agreement, express or implied, is intended to confer on any Person other than the Company and the Participant, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

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(f)           Dispute Resolution.  All controversies and claims arising out of or relating to this Agreement, or the breach hereof, shall be settled by the Company’s mandatory dispute resolution procedures, if any, as may be in effect from time to time with respect to matters arising out of or relating to the Participant’s employment or service with the Company.

 

(g)          Participant Undertaking; Acceptance.  The Participant agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable to carry out or give effect to any of the obligations or restrictions imposed on either the Participant or the Option pursuant to this Agreement.  The Participant acknowledges receipt of a copy of the Plan and this Agreement and understands that material definitions and provisions concerning the Option and the Participant’s rights and obligations with respect thereto are set forth in the Plan.  The Participant has read carefully, and understands, the provisions of this Agreement and the Plan.

 

(h)          Counterparts.  This Agreement may be executed in two counterparts, each of which shall constitute one and the same instrument.

 

(i)           Israeli Securities Law. The Company may obtain an exemption from prospectus requirements in Israel pursuant to Section 15D of the Israeli Securities Law. If such exemption is obtained the documents filed with the SEC regarding the Plan and the Plan itself will be available at the Company’s offices.

 

(j)           Governing Law. The Award shall be governed by the laws of the State of Israel. The Company, its Affiliates and each Participant (by acceptance of the Award) irrevocably submit, in respect of any suit, action or proceeding related to the implementation or enforcement of the Plan, to the exclusive jurisdiction of the competent courts in Tel-Aviv-Jaffe.

 

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ENTERA BIO LTD.

 2018 EQUITY INCENTIVE PLAN

 

STOCK OPTION AWARD AGREEMENT

 

___________________, 20__

Subject to the terms and conditions set forth in this grant letter (the “Grant Letter”) and the award agreement set forth in Exhibit A (the Grant Letter and Exhibit A, collectively this “Agreement”), Entera Bio Ltd., a company organized under the laws of the State of Israel (the “Company”), has granted you as of the Grant Date set forth below an option to purchase Shares (the “Award”).  The Award is granted under and is subject to the Entera Bio Ltd. 2018 Equity Incentive Plan (the “Plan”).  Unless defined in this Agreement, capitalized terms shall have the meanings assigned to them in the Plan.  The provisions of the Plan shall control in the event of a conflict among the provisions of the Plan, this Agreement and any descriptive materials provided to you.

AWARD TERMS

 

	
PARTICIPANT:

	
GRANT DATE:

	
SHARES SUBJECT TO AWARD:

	
PER SHARE EXERCISE PRICE:

	
VESTING TERMS:

 

 

Please review this Agreement and let us know if you have any questions about this Agreement, the Award or the Plan.  You are advised to consult with your own tax advisors in respect of any tax consequences arising in connection with this Award.

If you have questions please contact [●] via email at [●].  If not, please provide your signature, address and the date for this Agreement where indicated below.

 

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

 

	 	
ENTERA BIO LTD.

	 
	 	 	 	 
	
 

	
By: 

		 
	 	 	 	 
	 	 	Name:	 
	 	 	 	 
	 	 	Title:	 

 

	 	
PARTICIPANT

	 
	 	 	 	 
	
 

		 	 
	 	 	 Name	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
Address

	 
	 	 		 
	 	 	Date: _____________	 

 

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EXHIBIT A

 

ENTERA BIO LTD. 2018 EQUITY INCENTIVE PLAN

STOCK OPTION AWARD AGREEMENT

 

The following award agreement (this “Award Agreement”) sets forth the agreement of the parties to the Grant Letter to which this Award Agreement is appended with respect to the grant of stock options described in the Grant Letter. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan and the Grant Letter.

 

1.          Grant of Option.  The Company hereby grants to the Participant an option to purchase all or any part of the number of Shares set forth in the Grant Letter (“Option Shares”) at the per-share exercise price set forth in the Grant Letter (the “Exercise Price”), pursuant to the provisions of the Plan, the terms of which are incorporated herein by reference, and further subject to the terms and conditions set forth herein (the “Option”).

 

2.          Terms and Conditions.  It is understood and agreed that the Award evidenced hereby is subject to the following terms and conditions:

 

(a)          Vesting of Award.  Subject to the provisions of this Section 2 and Sections 3 and 4, the Option shall vest and become exercisable in accordance with the vesting schedule set forth in the Grant Letter.  In the event of a Termination of Service of the Participant prior to the date on which the Award otherwise becomes vested, the unvested portion of the Award shall immediately be forfeited by the Participant and become the property of the Company.

 

(b)          Term of Option.  The term of the Option shall expire at close of the principal stock market or exchange on which the Shares are quoted or traded on the tenth (10th) anniversary of the Grant Date, unless terminated earlier in accordance herewith.  In no event may any portion of the Option be exercised after it has expired.

 

(c)          Manner of Exercise.  The Participant may, subject to the limitations in this Agreement and the Plan, exercise all or any portion of the Option that has vested.  In order to exercise the Option, the Participant shall (i) deliver to the Company a written notice specifying the number of Option Shares to be purchased and (ii) remit the aggregate Exercise Price to the Company in full, payable (A) in cash or by check, bank draft or money order payable to the order of the Company or (B) any other method acceptable to the Administrator.

 

(d)          No Right to Future Awards.  Any Award granted under the Plan shall be a one-time Award that does not constitute a promise of future grants.  The Company, in its sole discretion, maintains the right to make available future grants under the Plan.

 

3.          Exercise in Event of Death, Disability or Other Termination of Service.

 

(a)          Death or Disability.  If the Participant incurs a Termination of Service due to such Participant’s death or Disability, all or any part of the Option which was exercisable by the Participant immediately prior to his or her death or Disability may be exercised by the Participant or the Participant’s designated Beneficiary, estate or the person to whom such Option is transferred by will or the applicable law of descent and distribution, at any time before the earlier of (i) the twelve (12) month anniversary of the date of the Termination of Service and (ii) the time such Option would otherwise expire.  To the extent the Option was not exercisable on the date of the Participant’s Termination of Service as a consequence of his or her death or Disability, such portion of the Option shall terminate.

 

9

 

(b)          For Cause.  If the Participant incurs a Termination of Service by the Company for Cause, any Options held by the Participant shall be immediately cancelled and may not thereafter be exercised, even if exercisable on the date of such Termination of Service.

 

(c)          Exercise Following Termination of Service.  If the Participant incurs a Termination of Service for any reason other than the Participant’s death or Disability or for Cause, the Option held by the Participant at the time of such Termination of Service, to the extent vested at such time, may be exercised at any time before the earlier of (i) the three (3) month anniversary of the date of the Termination of Service and (ii) the time such Option would otherwise expire; provided that if the Participant dies within such three-month period, the Options (to the extent vested) may be exercised by the Participant’s designated Beneficiary, estate or the person to whom such Option is transferred by will or the applicable law of descent and distribution, at any time before the earlier of (i) the twelve (12) month anniversary of the date of the Termination of Service and (ii) the time such Option would otherwise expire.  Except as set forth in this Section 3(c), to the extent the Option was not exercisable on the date of the Participant’s Termination of Service, such portion of the Option shall terminate.

 

4.          Treatment on Change in Control.  In the event of a Change in Control, the Option will be treated in accordance with Section 11(b) of the Plan.

 

5.          Tax Liability; Withholding Requirements. The Participant shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any interest that accrues thereon, that the Participant incurs in connection with the receipt, vesting or exercise of any Option granted hereunder.

 

6.          References.  References herein to rights and obligations of the Participant shall apply, where appropriate, to the Participant’s legal representative or estate without regard to whether specific reference to such legal representative or estate is contained in a particular provision of this Agreement.

 

7.          Not Salary, Pensionable Earnings or Base Pay.  The Participant acknowledges that the Award shall not be included in or deemed to be a part of (a) salary, normal salary or other ordinary compensation, (b) any definition of pensionable or other earnings (however defined) for the purpose of calculating any benefits payable to or on behalf of the Participant under any pension, retirement, termination or dismissal indemnity, severance benefit, retirement indemnity or other benefit arrangement of the Company or any Subsidiary or (c) any calculation of base pay or regular pay for any purpose.

 

10

 

8.          Forfeiture Upon Breach of Certain Other Agreements.  Subject to Section 9, the Participant’s breach of any non-competition, non-solicitation, confidentiality, non-disparagement, assignment of inventions or other intellectual property agreement that the Participant may be a party to with the Company or any Affiliate (the “Restrictive Covenant Agreement”) is incorporated herein by reference, in addition to whatever other equitable relief or monetary damages that the Company or any Affiliate may be entitled to, shall result in automatic rescission, forfeiture, cancellation or return of any Shares (whether or not vested) held by the Participant. To the extent that the Participant has not executed the Restrictive Covenant Agreement, this Agreement and the Award thereunder shall not be effective unless and until the Participant executes the Restrictive Covenant Agreement, and this Agreement and the Award thereunder shall be revoked if the Participant does not execute the Restrictive Covenant Agreement within thirty (30) days following the Grant Date.

 

9.          Whistleblower Protection; Defend Trade Secrets Act.

 

(a)          Nothing in this Agreement or otherwise limits the Participant’s ability to communicate directly with and provide information, including documents, not otherwise protected from disclosure by any applicable law or privilege to the Securities and Exchange Commission (the “SEC”), any other federal, state or local governmental agency or commission (“Government Agency”) or self-regulatory organization regarding possible legal violations, without disclosure to the Company.  The Company may not retaliate against the Participant for any of these activities, and nothing in this Agreement requires the Participant to waive any monetary award or other payment that the Participant might become entitled to from the SEC or any other Government Agency or self-regulatory organization.

 

(b)          Further, nothing in this Agreement precludes the Participant from filing a charge of discrimination with the Equal Employment Opportunity Commission or a like charge or complaint with a state or local fair employment practice agency.  However, once this Agreement becomes effective, the Participant may not receive a monetary award or any other form of personal relief from the Company in connection with any such charge or complaint that the Participant filed or is filed on the Participant’s behalf.

 

(c)          Pursuant to the Defend Trade Secrets Act of 2016, the parties hereto acknowledge and agree that the Participant shall not have criminal or civil liability under any Federal or State trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition and without limiting the preceding sentence, if the Participant files a lawsuit for retaliation by the Company for reporting a suspected violation of law as contemplated by the preceding sentence, the Participant may disclose the relevant trade secret to his attorney and may use such trade secret in the ensuing court proceeding, if the Participant (X) files any document containing such trade secret under seal and (Y) does not disclose such trade secret, except pursuant to court order.

 

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10.        Recoupment/Clawback.  This Award (including any amounts or benefits arising from this Award) shall be subject to recoupment or “clawback” as may be required by applicable law, stock exchange rules or by any applicable Company policy or arrangement the Company has in place from time to time.

 

11.        Miscellaneous.

 

(a)          Notices.  Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by courier, or sent by certified or registered mail, postage prepaid, return receipt requested, duly addressed to the party concerned at the address indicated below or to such changed address as such party may subsequently by similar process give notice of:

 

If to the Company:

 

Entera Bio Ltd.

Kiryat Hadassah

Minrav Building – Fifth Floor

Jerusalem 9112002

Israel

Attention: [●]

 Email: [●]

 

If to the Participant:

 

At the Participant’s most recent address shown on the signature page of the Grant Letter, or at any other address which the Participant may specify in a notice delivered to the Company in the manner set forth herein.

 

(b)          Entire Agreement.  This Agreement, the Plan and any other agreements, schedules, exhibits and other documents referred to herein or therein constitute the entire agreement and understanding between the parties in respect of the subject matter hereof and supersede all prior and contemporaneous arrangements, agreements and understandings, both oral and written, whether in term sheets, presentations or otherwise, between the parties with respect to the subject matter hereof.

 

(c)          Severability.  If any provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or this Agreement under any law deemed applicable by the Board, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Board, materially altering the intent of this Agreement, such provision shall be stricken as to such jurisdiction, and the remainder of this Agreement shall remain in full force and effect.

 

(d)          Amendment; Waiver.  No amendment or modification of any provision of this Agreement that has a material adverse effect on the Participant shall be effective unless signed in writing by or on behalf of the Company and the Participant; provided that the Company may amend or modify this Agreement without the Participant’s consent in accordance with the provisions of the Plan or as otherwise set forth in this Agreement.  No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.  Any amendment or modification of or to any provision of this Agreement, or any waiver of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which made or given.

 

12

 

(e)          Successors and Assigns; No Third-Party Beneficiaries.  This Agreement shall inure to the benefit of and be binding upon the Company and the Participant and their respective heirs, successors, legal representatives and permitted assigns.  Nothing in this Agreement, express or implied, is intended to confer on any Person other than the Company and the Participant, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

(f)          Waiver of Jury Trial. TO THE EXTENT ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IS NOT GOVERNED BY THE ARBITRATION AGREEMENT, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH LEGAL PROCEEDING.

 

(g)          Dispute Resolution.  All controversies and claims arising out of or relating to this Agreement, or the breach hereof, shall be settled by the Company’s mandatory dispute resolution procedures, if any, as may be in effect from time to time with respect to matters arising out of or relating to the Participant’s employment or service with the Company.

 

(h)          Participant Undertaking; Acceptance.  The Participant agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable to carry out or give effect to any of the obligations or restrictions imposed on either the Participant or the Option pursuant to this Agreement.  The Participant acknowledges receipt of a copy of the Plan and this Agreement and understands that material definitions and provisions concerning the Option and the Participant’s rights and obligations with respect thereto are set forth in the Plan.  The Participant has read carefully, and understands, the provisions of this Agreement and the Plan.

 

(i)           Counterparts.  This Agreement may be executed in two counterparts, each of which shall constitute one and the same instrument.

 

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