Document:

Exhibit 10.1

    

    

    

    EMPLOYMENT AGREEMENT

    

    

    THIS EMPLOYMENT AGREEMENT (the “Agreement,”) is entered into and effective the 22nd day of October, 2018 (the “Effective Date”), by and
        between Southwest Iowa Renewable Energy, LLC (“SIRE” or the “Company”), and Michael D. Jerke (the “Executive”).

    

    

    RECITALS

    

    

    WHEREAS, the Company and the Executive desire to enter into a formal employment relationship to clearly define the duties,
        responsibilities, and compensation of the Executive;

    

    

    NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the
        receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties agree as follows:

    

    

    1.          Employment and Compensation.  As compensation for services rendered under this Agreement, the Executive shall receive the following:

    

    

    (a) Base Salary:  The Company agrees to
        employ the Executive at an annualized Base Salary as set from time to time by the Company’s Board of Directors (“Board”), currently at Two Hundred Eighty Thousand Dollars ($280,000.00), payable in substantially equal installments on the regular
        payroll cycles of the Company.  Subsequent increases to this base salary may be made based on an annual review.

    

    

    (b) Cash Bonus Plan:  The Executive
        shall also be entitled to participate in the Southwest Iowa Renewable Energy, LLC Cash Bonus Plan (the “Cash Bonus Plan”), as approved by the Board and as amended from time to time.  A copy of the current Cash Bonus Plan has been provided to the
        Executive.

    

    

    Under the Cash Bonus Plan, the Executive’s Annual Incentive Bonus (if awarded) will be paid out annually, typically
        in late November.  The Executive is eligible for this annual bonus beginning with the fiscal year ending September 30, 2019. The Annual Incentive Bonus target is forty percent (40%) of Base Salary.  The actual amount of any Annual Incentive Bonus
        will be determined based on both the Executive’s individual contributions during each performance year (50%) and the Company’s results achieved (50%) against select metrics of the Company’s annual business plan.

    

    

     (c) Equity Incentive Plan:  The
        Executive shall also be entitled to participate in the Southwest Iowa Renewable Energy Equity Incentive Plan (the “Equity Incentive Plan”), as approved by the Board and as amended from time to time.  A copy of the current Equity Incentive Plan has
        been provided to the Executive.

    

    

    (i) At-Hiring Grant:  Within thirty
        (30) days of the Term of this Agreement commencing, the Company will grant the Executive Equity Participation Units (as defined in the Equity Incentive Plan) with a value of $25,000.00, with the unit value having been calculated according to book
        value as of September 30, 2018.  These units will vest on their Grant Date (as defined in the Equity Incentive Plan).  The non-competition provisions of the At-Hiring Grant as agreed with the Executive shall apply to all future grants,
        notwithstanding any other provisions in the Equity Incentive Plan.

     

      

    
      
        

    

    
    (ii) Annual Grant:  Within sixty (60)
        days after the Executive has completed one year of employment with the Company (and annually thereafter), the Board will evaluate the Executive’s performance to determine whether additional units will be awarded (to be granted within the same sixty
        (60) day timeframe).  If awarded, such units will be granted based on unit values calculated according to book value as of the September 30 preceding the Grant Date.  Annual grants of Equity Participation Units will become 100% vested on the third
        anniversary from the Grant Date. Unvested Equity Participation Units become fully vested in the event of a Change in Control and/or the Executive’s termination without Cause.  The target Annual Grant is for Equity Participation Units equal to
        $50,000.00 in book value as of the Grant Date.

    

    

    (d) Signing Bonus:  The Executive shall
        be paid a cash signing bonus of $25,000.00 in the regularly scheduled payroll immediately following the Effective Date.

    

    

    2.          Executive’s Duties.  For the Term of this Agreement, the Company agrees to employ the Executive as General Manager, President, and CEO.

    

    

    (a) Duties:  The Executive shall
        perform for or on behalf of the Company such duties as are customary of the General Manager, President, and CEO, and such other duties as the Executive  shall be assigned from time to time, and the Executive’s total time commitment will normally be
        reasonably consistent with that normally expected of similarly situated executive level employees. The Executive shall perform such duties in accordance with the Company’s policies and practices, and subject only to such limitations, instructions,
        directions, and control as the Company may specify from time to time at its discretion.  The Executive shall serve the Company faithfully, diligently and to the best of his ability. The Executive shall devote all working time, ability, and
        attention to the business of the Company and during the Term of this Agreement and shall not, directly or indirectly, render any services to or for the benefit of any other business, corporation, organization, or entity, whether for compensation or
        otherwise, without the prior knowledge and written consent of the Company.  It is provided however, the Executive may serve as a director of one or more charitable or cultural enterprises, or for a for-profit entity’s Board of Directors, provided
        that such activities do not interfere with the performance of the Executive’s duties hereunder and do not create an actual or apparent conflict of interest, in each case with the prior approval of the Board in its sole discretion.

    

    

    (b) Reporting Relationships:  The
        Executive shall report to the Company’s Board of Directors (“Board”).  All Company departments and employees will ultimately report to the Executive.

     

      

    
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    (c) Annual Review:  Company and
        Executive goals are to be determined jointly in good faith by the Board and the Executive within thirty (30) days of the Term of this Agreement commencing and annually thereafter with Board approval. Company performance is measured by factors that
        include financial, commercial, organizational, safety, and other relevant metrics.  Within sixty (60) days after the Executive has completed one year of employment with the Company (and annually thereafter), the Board will evaluate the Executive’s
        performance.   The Board will prepare a written performance evaluation for the Executive.  The Executive will be provided a copy of each such evaluation for review during or prior to the performance review.

    

    

    3.          Term.  The term (the “Term”) of this Agreement shall commence on the Executive’s first day of employment with the
        Company on October 22, 2018.  The Executive’s employment with SIRE is “at-will.”  Both the Executive and the Company have the right to terminate the Term of this Agreement at any time and for any or no reason, and with or without advance notice to
        the other party.

    

    

    The Term refers to the period during which the Executive is performing Services for the Company and the Company is paying compensation
        to the Executive. Obligations that are intended to survive the Term, including, but not limited to, the obligations under Section 8, shall survive the end of the Term.

    

    

    4.          Benefits.  In addition to the compensation pursuant to Section 1 hereof, the Executive shall be entitled to receive the following:

    

    

    (a) Participation in Employee Plans: 
        The Executive shall be entitled to participate in the Company’s various benefit plans, including at this time health, dental, vision, long-term care, disability benefit (short- and long-term), life insurance, and flexible spending accounts, and any
        other fringe benefits that may be extended generally from time to time to employees of the Company at a similar level of the Executive.

    

    

    (b) 401(k):  The Executive is entitled
        to participate in the Company’s 401(k) plan.  The Executive is eligible to contribute to his 401(k) as of his first paycheck.  Contribution amounts are subject to plan limits.

    

    

    (c) Paid Time Off (PTO) and Holidays: 
        The Executive shall be entitled to nine (9) paid Company holidays each year.  The Executive shall also be entitled to participate in the Company’s Honor PTO – Salaried Exempt Employees Plan, as well as the Company’s Short-Term Salary Continuation
        Program.  Copies of both as currently in force have been provided to the Executive.

    

    

    (d) Company Vehicle:  The Executive
        shall be provided with a Company vehicle.  The Company will pay for insurance, taxes, gasoline, maintenance, and repairs for both business and personal use.  All mileage, both business and personal, must be recorded and reported to the Company.  To
        the extent required by law, the Company will report the value of such automobile and its usage as taxable income to the Executive.

    

    

    The Executive’s benefits are subject to change in accordance with changes made for full-time employees of similar status.

     

      

    
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    5.          Relocation Requirements.  The Company encourages the Executive to relocate his primary residence to the Council Bluffs, Iowa area.  If the Executive elects to relocate and notifies the Company, he will be
        eligible to participate in the Relocation Program outlined in Section 6.

    

    

    The Executive will not be required to relocate his primary residence to the Council Bluffs area during his employment with the Company. 
        In the event the Executive does not move his primary residence to the Council Bluffs area within six months of the Term of this Agreement commencing, the Executive will be required to lease or purchase a Second Residence (e.g., apartment,
        condominium, home) within reasonable daily commuting distance (i.e., within fifty (50) miles) of the Company’s offices.  All costs related to (i) the Second Residence, and (ii) traveling to/from the Executive’s current primary residence will be the
        sole responsibility of the Executive.

    

    

    6.          Relocation Program.

    

    

    (a) Eligibility:  The Executive will be
        eligible to participate in the Relocation Program upon notifying the Company that he has initiated the process of relocating his primary residence to the Council Bluffs, Iowa area.

    

    

    (b) Relocation Bonus:  In the event the
        Executive completes relocation of his primary residence to the Council Bluffs area within six months of the Term of this Agreement commencing, the Executive will be awarded a Relocation Bonus of $20,000 cash and $20,000 in Equity Participation
        Units.  Equity Participation Units will be 100% vested as of their Grant Date.

    

    

    (c) Reimbursement:  Subject to the
        limitations outlined below, the Company will reimburse the Executive for reasonable and customary relocation expenses for the following types of expenditures:

    

    

    (i) Home Sale Assistance:  Realtor fees
        for selling current home (up to 6% of the home sale price), as well as home sale closing costs.

    

    

    (ii) Home-Finding Trip:  Up to three
        days/nights including lodging, meals, and mileage for the Executive and his spouse.

    

    

    (iii) Temporary Housing:  Rental
        (including utilities) of a furnished two-bedroom apartment/condo or extended-stay hotel near the Company’s offices will be provided for a period of up to sixty (60) days prior to the relocation of the Executive’s family and household goods to the
        new residence.

    

    

    (iv) Other Transition and Housing Expenses: 

        For up to six months following the Term of this Agreement commencing:  (A)  if the Executive has not purchased or rented a primary residence in the Council Bluffs area, the Executive will be reimbursed for mileage (up to four trips per month)
        to/from his current home prior to the relocation of his primary residence; and (B) if the Executive has purchased or rented a primary residence in the Council Bluffs area, the Executive will be reimbursed for duplicate housing costs to include
        mortgage interest, property taxes, and homeowner insurance (up to $2,000.00 per month) for the Minnesota residence.

     

      

    
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    (v) Home-Purchase Closing Costs: 
        Closing costs on new home (e.g., inspections, filing fees, etc.), but not including points on mortgage – up to $10,000.00.

    

    

    (vi) Movement of Household Goods: 
        Packing/loading/unloading by moving company, as well as storage of household goods for up to sixty (60) days.

    

    

    (vii) Final Move:  For the Executive
        and spouse  – meals and mileage to new residence and hotel costs for initial 3 days after household goods are moved (up to $1,000.00).

    

    

    If the Executive’s relocation is completed before the first anniversary of the Term of this Agreement commencing, the
        Executive’s maximum reimbursement for relocation expenses will be $60,000.00.  If the Executive’s relocation is completed after the first anniversary of the Term of this Agreement commencing, the Executive’s maximum reimbursement for relocation
        expenses will be $40,000.00.

    

    

    (d) Miscellaneous Expenses Allowance: 
        The Company will make a lump sum payment to the Executive in the amount of $10,000.00 (not to be included in the gross-up discussed below) to cover miscellaneous expenses.  Payment will be made within thirty (30) days after movement of the
        Executive’s household goods to his new residence in the Council Bluffs area.  All applicable income and employment withholding will be deducted from this payment and it will not be subject to any accounting or further documentation as to purpose
        of, or method for, its use.

    

    

    (e) Tax Assistance:  To the extent that
        the expenses reimbursed pursuant to Section 6(c) are not deductible to the Executive for federal income tax purposes, then the Company shall make an additional payment to the Executive as compensation for the income tax cost associated with such
        non-tax deductible.  Provided, however, the foregoing payment shall not, in any instance, exceed $15,000.00, and this payment shall not be made upon the $10,000 payment described in Section 6(d).  Payment to the Executive will be made no later than
        April 1st of the year following the year in which the Executive received reimbursement.

    

    

    (f) Repayment:  If the Executive
        voluntarily terminates employment within twelve (12) months of the Term of this Agreement commencing, the Executive agrees to reimburse the Company for 100% of any payments made to the Executive under the Relocation Program.  In the event the
        Executive voluntarily terminates employment between twelve (12) and thirty-six (36) months after the Term of this Agreement commencing, the Executive will reimburse the Company for any such Relocation Program payments on a prorated basis.

    

    

    (g) Primary Residence:  For purposes of
        this Agreement, the Executive will be deemed to have relocated his “primary residence” to the Council Bluffs, Iowa area if:

     

      

    
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    (i) the Executive purchases or signs a long-term lease (i.e., at least twelve (12) months) for a single-family
        residential dwelling that exists within a fifty (50) mile radius of the Company’s offices (the “Local Home”);

    

    

    (ii) the Executive spends more than two hundred (200) days in the Council Bluffs area each year;

    

    

    (iii) the Executive’s Local Home is the dwelling to which the Executive returns after an absence from the Council
        Bluffs area;

    

    

    (iv) the Executive is legally registered to vote (or – if not registered – would be legally registered to vote) based
        on the Local Home’s address;

    

    

    (v) the Executive’s driver’s license is issued based on the Local Home’s address;

    

    

    (vi) the Executive is required to file a resident income tax return for the state in which the Local Home exists; and

    

    

    (vii) the Executive has some portion of his mail delivered to the Local Home.

    

    

    7.          Repayment; Clawback.  Notwithstanding any provision in this Agreement to the contrary, if the Company is required to restate any of its financial statements, other than restatements due solely to factors
        external to the Company such as a change in accounting principles or a change in securities laws or regulations with retroactive effect, then the Company may recover or require reimbursement of severance payments, bonuses, equity compensation
        awards (including profits from the sale of Company equity acquired pursuant to such awards) and/or other payments or benefits made to the Executive under this Agreement which are based on specific financial performance targets. In exercising its
        discretion to recover or require reimbursement of any amounts as a result of any restatement, the Company will give reasonable and due consideration to, among other relevant factors, the level of the Executive’s responsibility or influence, as well
        as the level of others’ responsibility or influence, over the judgments or actions that gave rise to the restatement.

    

    

    8.         Confidentiality and Non-Disclosure.  The Executive expressly acknowledges and understands that as part
        of his job duties, he will be exposed to certain confidential information, client and potential client relationships, and supplier, licensee, or other business relationships of the Company (some of which may be developed by him in the course of his
        employment) (“Confidential Information”).  The Executive acknowledges such Confidential Information is the sole and exclusive property of the Company, constituting valuable, special and unique property of the Company in which it has and will have a
        protectable interest. In certain cases, the Company is party to licenses or other agreements which require the Company and its employees to maintain the confidentiality of information and all such information is included within the definition of
        Confidential Information for purposes of this Agreement.  The parties therefore agree that it is necessary to enter into this covenant to protect the Company’s interests.  Independent of any obligation under any other contract or agreement between
        the Executive and the Company, the Executive agrees to maintain the confidentiality of the Confidential Information as described in this Section 8 during the term of this Agreement and for a period of two (2) years following the voluntary or
        involuntary separation of the Executive’s employment for any reason whatsoever, or for any longer period required by a third-party contract of which the Executive is aware.

     

      

    
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    The Executive hereby further agrees to hold in a fiduciary capacity for the benefit of the Company all Confidential Information
        consisting of proprietary and confidential information, knowledge, ideas and data of the Company, including, without limitation, customer lists and the Company’s products, processes and programs relating in any way to the present or future business
        or activities of the Company, for the useful life of such Confidential Information and as long as such Confidential Information remains confidential.

    

    

    If any court of competent jurisdiction shall determine that the foregoing covenants are invalid in any respect, the parties hereto agree
        that any court so holding may limit such covenant in time, in area or in any other manner which the court determines such that the covenant shall be enforceable against the Executive.

    

    

    9.          Remedies.  In the event of the breach or threatened breach by the Executive of the provisions of Section 8 of this
        Agreement, the Company shall be entitled to an injunction restraining the Executive from such breach or threatened breach. Nothing contained herein shall be construed to prohibit the Company from pursuing any other remedies available to it for such
        breach or threatened breach, including recovery of damages from the Executive.  Moreover, if the Company prevails against the Executive in whole or in part in any action to enforce this Agreement, whether for injunctive relief or damages or both,
        then in addition to whatever injunctive relief or damages may be awarded, the Company shall be entitled to its expenses and costs incurred in the successful pursuit of such action or portion thereof, including the Company’s reasonable attorneys’
        fees.

    

    

    10.         Severance Payments.

    

    

    (a) Generally:  The Executive will be
        eligible for severance payment(s) if the Executive’s employment is terminated under certain conditions.  Specifically:

    

    

    (i) If the Executive is terminated by the Company without Cause:

    

    

    (A) The Executive will be eligible for a severance payment equal to six (6) months of his then-current base salary,
        plus one-half of his full Annual Incentive Bonus target (paid in monthly installments, less applicable withholdings).

    

    

    (B) The Executive’s unvested Equity Participation Units will vest as of the date of his termination.  Proceeds for
        Equity Participation Units will be paid to the Executive in two equal installments: one payment within thirty (30) days of termination, and the second payment within thirteen (13) months of termination.

     

      

    
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    (ii) For a three (3) year period following a Change in Control, severance equal to twelve (12) months of the
        Executive’s then-current base salary, plus the Executive’s full Annual Incentive Bonus target will be paid to the Executive (in monthly installments, less applicable withholdings) for:

    

    

    (A) a termination without Cause; or

    

    

    (B) a voluntary termination by the Executive for “Good Reason,” which can be invoked if the new ownership takes
        certain actions without the Executive’s consent, such as:  (A) a material and adverse change in job title or a material diminution in authority, job duties or responsibilities; (B) a reduction in base salary or a material reduction in employment
        benefits; or (C) assignment to any work location more than fifty (50) miles from the Company’s current headquarters.

    

    

    After the three-year period expires following a Change in Control, the Executive’s severance terms revert to
        subsection (a)(i) above.

    

    

    If the Executive is entitled to severance under either subsection (a)(i) or (a)(ii), any unvested units granted to
        the Executive following Change in Control, if any, will vest as of the date of the Executive’s termination.

    

    

    No severance will be due to the Executive if he voluntarily terminates employment or if his employment is terminated
        for Cause.

    

    

    (b) Definitions:

    

    

    For purposes of this Agreement, the term “Cause” means the Executive’s:  (i) willful and continued failure to
        substantially perform his duties as General Manager, President, or Chief Executive Officer after written demand for substantial performance is delivered to the Executive; (ii) conviction, plea of guilty or nolo contendere plea to a felony or the
        Executive’s performance of any criminal act involving dishonesty or moral turpitude; (iii) the Executive’s material violation of the Company’s written  policies or codes of conduct, including but not limited to, the Company’s written policies
        related to discrimination, harassment, performance of illegal or unethical activities, ethical misconduct and conflicts of interest, or the provisions of this Agreement; or (iv) willful  engagement in misconduct which has, or can reasonably be
        expected to have, a material adverse effect on the Company or its reputation.  A determination of “Cause” lies in the reasonable discretion of the Board.

    

    

    For purposes of this Agreement, the term “Change in Control” means the occurrence of any one of the following events:

     

      

    
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              	i.	
                Change in ownership of the Company:  A change in the ownership of the Company
                    occurs on the date that any one person, or more than one person acting as a group, acquires ownership of equity of the Company that, together with the equity held by such person or group, constitutes more than fifty percent (50%) of the
                    total fair market value or total voting power of the equity of the Company.  However, if any one person, or more than one person acting as a group, is considered to own more than fifty percent (50%) of the total fair market value or
                    total voting power of the equity of the Company, the acquisition of additional equity by the same person or persons is not considered to cause a change in the ownership of the Company or to cause a change in the effective control of the
                    Company (within the meaning of paragraph (ii)). An increase in the percentage of equity owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires its equity in exchange for
                    property will be treated as an acquisition of equity for purposes of this paragraph (i).

              

      

    

    

    

    
      
        	

              	ii.	
                Change in effective control of the Company:  A change in the effective control of
                    the Company occurs on the date any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of
                    equity of the Company possessing fifty (50%) percent or more of the total voting power of the equity of the Company.

              

      

    

    

    

    
      
        	

              	iii.	
                Change in ownership of a substantial portion of the Company’s assets:  A change in
                    the ownership of a substantial portion of the Company’s assets occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent
                    acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately
                    before such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with
                    such assets.  There is no change in control event under this paragraph (iii) when there is a transfer to an entity that is controlled by the unitholders of the Company immediately after the transfer. A transfer of assets by the Company
                    is not treated as a change in the ownership of such assets if the assets are transferred to: (A) a unitholder of the Company (immediately before the asset transfer) in exchange for or with respect to its equity; (B) an entity, fifty
                    percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company; (C) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more
                    of the total value or voting power of all the outstanding equity of the Company; or (D) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described in (C).

              

         

        

      

    

    
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    For purposes of the foregoing, persons will not be considered to be acting as a group solely because they purchase or
        own equity of the Company at the same time, or as a result of the same public offering. However, persons will be considered to be acting as a group if they are owners of an entity that enters into a merger, consolidation, purchase or acquisition of
        equity, or similar business transaction with the Company. If a person, including an entity, owns equity in both the Company and an entity (“other entity”) that enters into a merger, consolidation, purchase or acquisition of equity, or similar
        transaction, with the Company such unitholder is considered to be acting as a group with other unitholders only with respect to the ownership in the other entity before the transaction giving rise to the change and not with respect to the ownership
        interest in the Company.

    

    

    “Related Company” means:  (i) any Company that is a member of a controlled group of Companies (as defined in Section
        414(b) of the Internal Revenue Code) that includes the Company); and (ii) any trade or business (whether or not incorporated) that is under common control (as defined in Section 414(c) of the Internal Revenue Code) with the Company.  For purposes
        of applying Internal Revenue Code sections 414(b) and (c), fifty percent (50%) is substituted for the eighty percent (80%) ownership level.

    

    

    11.          Covenants Separable.  It is mutually understood and agreed by and between the parties that the covenants contained
        in Section 8 and any subsections thereof are fair and reasonable, and are reasonably required for the protection of the Company.  The parties further agree that the covenants are separable, severable and divisible in all respects, and the
        unenforceability of any specific covenant or undertaking shall not affect the validity of any other such covenants or undertakings.  In the event any provision hereof is held to be invalid, illegal or unenforceable for any reason or in any respect,
        such invalidity, illegality or unenforceability shall in no event affect, prejudice or disturb the remainder of this Agreement, which shall be in full force and effect, enforceable in accordance with its terms.

    

    

    12.          Internal Revenue Code of 1986 Section 409A.  Notwithstanding any provision in this Agreement to the contrary, this Agreement shall be interpreted and administered in accordance with Section 409A of the
        Internal Revenue Code of 1986, as amended (the “Code”), and regulations and other guidance issued thereunder to the extent applicable.  For purposes of determining whether any payment made pursuant to this Agreement results in a “deferral of
        compensation” within the meaning of Treasury Regulation §1.409A-1(b), the Company shall maximize the exemptions described in such section, as applicable.  If the Executive is a specified employee (as defined in Treasury Regulation §1.409A-1(i))
        upon separation from service (as defined in Treasury Regulation §1.409A-1(h)), then payment of any Section 409A deferred compensation amount shall be delayed for a period of six months and paid in a lump sum on the first payroll payment date
        following expiration of such six month period.  For purposes of conforming this Agreement to Section 409A of the Code, the parties agree that any reference to termination of employment, severance from service or similar terms shall mean a
        “separation from service” as defined in Treasury Regulation §1.409A-1(h).  Further, any reimbursements, gross-ups or in-kind benefits to be provided pursuant to this Agreement that are taxable to the Executive shall be subject to the following
        restrictions: (a) each reimbursement or gross-up must be paid no later than the last day of the calendar year following the Executive’s tax year during which the expense was incurred or tax was remitted, as the case may be; (b) the amount of
        expenses or taxes eligible for reimbursement, or in-kind benefits or gross-ups provided, during a tax year of the Executive may not affect the expenses or taxes eligible for reimbursement, or in-kind benefits or gross-ups to be provided, in any
        other tax year of the Executive; (c) the period during which any reimbursement or gross-up may be paid or in-kind benefit may be provided shall end one year after the Executive’s separation from service; and (d) the right to reimbursement, gross-up
        or in-kind benefits is not subject to liquidation or exchange for another benefit.  Notwithstanding the foregoing or any provision in this Agreement to the contrary, the Company does not warrant or promise compliance with Section 409A of the Code
        and neither the Executive nor any other person shall have any claim against the Company for any good faith effort taken by the Company to comply with Section 409A.

     

      

    
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    13.          Notice.  Any notice, request, consent or communication under this Agreement shall be effective only if it is in
        writing and personally delivered, sent by certified mail return receipt requested, postage prepaid, or nationally recognized express delivery service with delivery confirmed or telexed or telecopied with receipt confirmed, addressed as follows:

    

    

    

    

    
      	
               

            	if to Executive:	
              Michael D. Jerke

            
	
               

            	
               

            	
              21937 Carrbridge Court

            
	
               

            	
               

            	
              Lakeville, MN  55044

            

    

    

      

    
      	
               

            	
              if to the Company: 

              

            	
              Southwest Iowa Renewable Energy, LLC

            
	
               

            	
               

            	
              Attn: Chairman of the Board

            
	
               

            	
               

            	
              10868 189th Street

            
	
               

            	
               

            	
              Council Bluffs, IA 51503

            

    

    

    

    

    or at such subsequent address as either party may designate to the other in writing, and shall be deemed to have been given as of the date when properly
        sent in accordance with the terms hereof.

    

    

    14.          Entire Agreement.  This Agreement, and the Equity Participation Unit Award Agreement dated as of the date hereof
        constitute the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement, including without limitation the document reflecting Approved
        Employment Terms dated September 8, 2018, summarizing the terms of the Executive’s employment.

    

    

    15.          Amendment.  This Agreement may be amended or modified only by a written instrument executed by both the Company and
        the Executive.

    

    

    16.          Governing Law.  This Agreement shall be construed, interpreted and enforced in accordance with the laws of the
        State of Iowa (without regard to conflicts of laws provisions).

     

      

    
      - 11 -

      
        

    

    17.          Binding Effect; Assignment.  This Agreement shall be binding upon and inure to the benefit of both parties and
        their respective successors, assigns, heirs and personal representatives, including any entity with which, or into which, the Company may be merged or which may succeed to its assets or business; provided, however, that the obligations of the
        Executive are personal and shall not be assigned by the Executive.

    

    

    18.          Severability.  In the event that any provision of this Agreement shall be invalid, illegal or otherwise
        unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

    

    

    19.         Counterparts.  This Agreement may be executed in any number of counterparts, including counterpart signature pages
        or counterpart facsimile signature pages, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

    

    

    20.          Recitals. The recitals are incorporated herein and made a part hereof.

    

    

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth above.

    

    

    	
            EXECUTIVE:

          	
            /s/ Michael D. Jerke

          
	 	
            Michael D. Jerke

          

    

    

    

    	
            COMPANY:

          	
            SOUTHWEST IOWA RENEWABLE ENERGY, LLC

          
	 	 
	 	
            /s/ Karol King

          
	 	 
	 	
            Karol King, Chairman of the Board

          
	 	 
	 	
            Date:  October 22, 2018

          

    

    

    

    

    - 12 -Exhibit 4.1

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE OR FOREIGN LAW.

Warrant No.«Warrant_No»

GAMIDA CELL LTD.

WARRANT

Dated «Closing_Date» (the “Closing”)

To purchase

«Number_of_F2_Shares_underlying_Warrants» Series F-2 Preferred Shares (as defined below) (subject to adjustment hereunder) of

Gamida Cell Ltd. (the “Company”)

at a per share price and subject to the terms detailed below

VOID AFTER 16:00 local Israel time

on the last day of the Warrant Period (as defined below)

THIS IS TO CERTIFY THAT «Warrant_Holder» (the “Holder”), is entitled to purchase from the Company, during the Warrant Period, an aggregate of up to «Number_of_F2_Shares_underlying_Warrants» Series F-2 Preferred Shares of the Company, nominal value NIS 0.01 per share (the “Series F-2 Preferred Shares”), as may be adjusted from time to time hereunder, at a price per share of US$«Exercise_Price» (as may be adjusted from time to time hereunder) (the “Exercise Price”) (it being acknowledged that the amount and type of Series F-2 Preferred Shares that the Holder is entitled to purchase from the Company pursuant to this Warrant and the Exercise Price thereof, are subject to further adjustments in accordance herewith and in accordance with the provisions of the Articles of Association of the Company (as in effect from time to time) (“Amended Articles”)).

Unless otherwise is specifically set forth herein, capitalized terms used but not defined herein shall have the meanings ascribed to them in that certain Series F Preferred Share Purchase Agreement dated as of June 18, 2017 (the “SPA”), by and among the Company and the Investors (as such term is defined in the SPA).

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1.  EXERCISE OF WARRANT

1.1.  Number of Warrant Shares.

1.1.1.  In General. The number of Series F-2 Preferred Shares into which this Warrant may be exercised at any time (the “Warrant Shares”) shall equal the Base Number (as defined below). For the avoidance of doubt, the Base Number and  the number and type of Warrant Shares, shall be subject to adjustment in accordance with the provisions hereof (including but not limited to Section 4) and the Amended Articles.

1.1.2.  As of Closing. As of the Closing: (a) the “Base Number” (which shall initially be the number of Warrant Shares which the Holder is to be granted the right to purchase, at the Closing, as reflected on the Capitalization Table attached to the SPA) is «Number_of_F2_Shares_underlying_Warrants» Series F-2 Preferred Shares, (b) the aggregate Base Number of Series F-2 Preferred Shares are convertible into an equal number of Ordinary Shares of the Company, nominal value NIS 0.01 per share (the “Ordinary Shares”), and (c) the number of Warrant Shares is thus equal to «Number_of_F2_Shares_underlying_Warrants» Series F-2 Preferred Shares. Upon each adjustment hereunder of the number or type of the Warrant Shares, the Base Number shall be adjusted in the same manner in which such number or type of Warrant Shares was adjusted.

1.2.  Exercise Price. Without derogating from, and in addition to, any other provision hereof (including but not limited to Section 4), the Exercise Price shall be, and shall be adjusted, as follows:

1.2.1.  In General. The Exercise Price hereunder shall at all times equal 120% of the Original Issue Price of the Series F-1 Preferred Shares, as determined (and as may be adjusted) in accordance with the Amended Articles.

1.2.2.  As of Closing. As of the Closing, (A) the Original Issue Price of the Series F-1 Preferred Shares equals the Investment Price Per Share under the SPA, i.e. US$«OIP_F1», and (B) as such, the Exercise Price equals US$«Exercise_Price» (i.e. 120% of the Investment Price Per Share).

1.2.3.  Adjustments. Upon each adjustment to the Original Issue Price of the Series F-2 Preferred Shares under the Amended Articles, the Exercise Price shall concurrently be reduced (and, for the avoidance of doubt, not increased) to equal the new adjusted Original Issue Price of the Series F-2 Preferred Shares thereunder.

1.2.4.  Increase of Warrant Shares. Upon each reduction to the Exercise Price, the number of Warrant Shares (i.e. the Base Number) shall be correspondingly increased, such that, as a result of such adjustments, the aggregate Exercise Price of all Warrant Shares that are subject to this Warrant shall remain unchanged.

1.2.5.  Exercise Upon Certain Transactions. If this Warrant is exercised in the context of an IPO (as defined in the Amended Articles) (including, for the purposes of this Warrant, any subsequent public offering) or a Deemed Liquidation (as defined in the Amended Articles), then, even if the exercise of this Warrant in such case shall be required to occur no later than immediately prior to the closing of such transaction, the Original Issue Price of the Series F-2 Preferred Shares for the purposes hereof shall be the Original Issue Price of the Series F-2 Preferred Shares as adjusted (if applicable) in accordance with the Amended Articles upon (and taking into account the consummation of) such applicable event. In such event, the Exercise Price and the number of Warrant Shares shall be adjusted accordingly, as of immediately prior to such transaction, such that the aggregate Exercise Price of all Warrant Shares that are subject to this Warrant shall remain unchanged.

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1.3.  Warrant Period. This Warrant may be exercised, subject to the terms and conditions hereof, in whole or in part, at any time and from time to time during the period commencing on the Closing and ending upon the earlier of (i) at 16:00 (Israel time) on «M_4TH_Anniversary_of_Closing» (i.e. the date that is the 4th anniversary of the Closing) or, if no Qualified IPO (as defined in the Amended Articles) has occurred by September 30, 2018, then 16:00 (Israel time) on «M_5TH_Anniversary_of_Closing» (i.e. the date that is the 5th anniversary of the Closing), or (ii)  as of immediately prior to the closing of the Deemed Liquidation. The above period shall be referred to herein as the “Warrant Period”. This Warrant and all the rights conferred hereby shall automatically terminate, expire and be of no further force and effect at the aforementioned time on the last day of the Warrant Period.

1.4.  Exercise for Cash. The Holder may exercise this Warrant in whole or in part and from time to time during the Warrant Period, by presentation and surrender thereof at the principal office of the Company or at such other office or agency as the Company may designate from time to time, accompanied by:

		1.4.1.	
A duly executed notice of exercise, in the form attached hereto as Exhibit A (the “Exercise Notice”); and

		1.4.2.	
Payment to the Company of an amount in US Dollars equal to the Exercise Price times the number of Warrant Shares for which this Warrant is then being exercised, payable by wire transfer of immediately available funds to the Company’s bank account.

1.5.  Exercise on Net Issuance Basis. In the event of an exercise of this Warrant in connection with (and as of immediately prior to) a Deemed Liquidation or an IPO, or after an IPO, then in lieu of payment to the Company of the Exercise Price per Warrant Share in cash accordance with the payment method as set forth in Section 1.4 above, the Holder may elect to convert this Warrant (or any portion thereof), without the payment by the Holder of any consideration, into the number of Warrant Shares calculated pursuant to the formula below, by presentation and surrender of this Warrant at the principal office of the Company or at such other office or agency the Company may designate from time to time, accompanied by a duly executed Exercise Notice indicating cashless exercise (the “Net Issuance Notice”). Thereupon, the Company shall issue to the Holders such number of number of fully paid and non-assessable Warrant Shares as is computed using the following formula:

 

	 	
Y*(A - B)

	
X    =     

	
A

	 

Where:

		X =	
the number of Warrant Shares to be issued to the Holder pursuant to this Section 1.5;

		Y  =	
the number of Warrant Shares otherwise purchasable upon exercise in full of this Warrant (or such lesser number of shares as Holder may designate in case of a partial exercise of this Warrant) as of the time the net issue election is made pursuant to this Section 1.5;

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		A =	
the fair market value of one Warrant Share (or of the number of securities into which one Warrant Share has been converted in accordance with the Amended Articles) at the time the net issuance election under this Section 1.5 is made; and

		B =	
the Exercise Price per Warrant Share in effect at the time the net issue election is made pursuant to this Section 1.5.

For purposes hereof, the “fair market value” of one (1) Warrant Share as of a particular date shall be: (a) if the exercise pursuant to this Section 1.5 is made (after an IPO) not in connection with a Deemed Liquidation event, the average of the daily closing bid and asked prices of a Warrant Share (or of the number of securities into which one Warrant Share has been converted in accordance with the Amended Articles) as quoted on the stock exchange providing the primary market for such securities, for the period of ten (10) consecutive trading days ending on the day immediately prior to the date of exercise of this Warrant; (b) if the exercise pursuant to this Section 1.5 is in connection with a Deemed Liquidation, then the aggregate consideration per Warrant Share payable in such Deemed Liquidation. In the event that a portion of the price in the transaction is not in cash or publicly traded securities, then the applicable fair market value of the non-cash consideration shall be determined by the Company’s auditors; or (c) if the exercise pursuant to this Section 1.5 is immediately prior to the closing of an IPO, then the public offering price (before deduction of discounts, commissions or expenses) in such offering.

1.6.  Issuance of Warrant Shares. The Warrant shall be deemed exercised upon receipt by the Company of this Warrant, accompanied by (a) the duly executed Exercise Notice and the applicable aggregate Exercise Price pursuant to Section 1.4 above; or (b) the duly executed Net Issuance Notice pursuant to Section 1.5 above, as the case may be, the Company shall promptly (i) issue to the Holder the Warrant Shares to which the Holder is entitled; and (ii) deliver to the Holder an executed share certificate evidencing such Warrant Shares, and (iii) in any event, the Holder shall be deemed to be the holder of record of the Warrant Shares issuable upon such exercise of this Warrant, at the close of business on the date this Warrant is exercised with respect to the shares for which this Warrant is being exercised, notwithstanding that the share transfer books of the Company shall then be closed or that certificates representing such shares shall not then be actually delivered to the Holder.

1.7.  Fractional Shares. No fractions of Warrant Shares shall be issued in connection with the exercise of this Warrant, and the number of shares issued shall be rounded to the nearest whole number.

1.8.  Loss or Destruction of Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of reasonable expense reimbursement and indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and deliver a new Warrant of like tenor and date.

1.9.  Partial Exercise; Effective Date of Exercise.  In case of any partial exercise of this Warrant, the Company shall cancel this Warrant upon surrender hereof and shall execute and deliver a new Warrant of like tenor and date for the balance of the Warrant Shares purchasable hereunder. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above. The person entitled to receive the Warrant Shares shall be treated for all purposes as the holder of record of such shares as of the close of business on the date the Holder is deemed to have exercised this Warrant.

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1.10.  Conditional Exercise. If this Warrant is exercised in the context of an IPO or Deemed Liquidation, then such exercise shall be deemed conditional on the closing of such transaction, and, if such transaction does not close, then this Warrant shall not be considered exercised at such time (unless the Holder explicitly notifies the Company otherwise).

1.11.  Right to Exercise into Ordinary Shares. The Holder shall have the right, at its sole discretion, to exercise this Warrant into the number of Ordinary Shares into which the Warrant Shares otherwise purchasable hereunder could be converted at such time in accordance with the provisions of the Amended Articles (as in effect from time to time). If at any time the entire class of Series F-2 Preferred Shares is converted into Ordinary Shares or another class of shares pursuant and subject to the provisions of the Amended Articles, then this Warrant shall automatically be deemed to be exercisable for such number of Ordinary Shares or shares of such other class, into which the Warrant Shares would have been converted had the Warrant Shares been issued and outstanding on the date of such conversion, and the Exercise Price shall equal the Exercise Price in effect as of immediately prior to such conversion divided by the number of Ordinary Shares or shares of such other class into which one Warrant Share would have been converted, all subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant.

2.  TAXES

2.1.  The Holder acknowledges that the grant of the Warrant, the issue of the Warrant Shares and the execution and/or performance of this Warrant may have tax consequences to the Holder and that the Company is not able to ensure or represent to the Holder the nature and extent of such tax consequences.

2.2.  The Company shall pay all of the applicable taxes and other charges (in each case, if any) payable by the Company in connection with the issuance of the Warrant Shares and the preparation and delivery of share certificates pursuant to Section 1 in the name of the Holder, if any, but shall not pay any taxes payable by the Holder by virtue of the holding, issuance, exercise or sale of this Warrant or the Warrant Shares by the Holder, which shall be the obligation of the Holder.

2.3.  The Company shall withhold taxes, if and as required according to the requirements under the applicable laws, rules, and regulations for withholding taxes at source, provided that the Company shall inform the Holder of such withholding requirement at least 10 (ten) business days prior to such anticipated withholding, so as to allow the Holder to obtain and provide the Company with an appropriate certificate of exemption, if available. No withholding shall be made if an exemption is obtained and delivered to the Company, for as long as it is valid in accordance with applicable law.

3.  RESERVATION OF SHARES; NO IMPAIRMENT

3.1.  Reservation of Shares. The Company hereby agrees that, at all times prior to the expiration or exercise of this Warrant, it will maintain and reserve, free from pre-emptive or similar rights, (a) such number of authorized but unissued Warrant Shares, as will be sufficient to permit the exercise of this Warrant in full, and (b) such number of Ordinary Shares into which such Warrant Shares shall, at any time, be convertible, so that this Warrant may be exercised into Series F-2 Preferred Shares and/or into Ordinary Shares, without additional authorization of shares.

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3.2.  No Impairment. Subject to the provisions of Section 8.1 below, the Company will not, by amendment of its organizational documents or through reorganization, recapitalization, consolidation, merger, dissolution, transfer of assets, issue or sale of securities or any other voluntary act, avoid or seek to avoid the observance or performance of any of the covenants, stipulations, conditions or terms to be observed or performed hereunder, but will at all times in good faith assist in the carrying out of all the provisions hereof and in the taking of all such actions and making all such adjustments as may be necessary or appropriate in order to fulfill the provisions hereof.

4.  ADJUSTMENT

4.1.  In addition to, and without derogating from, the other provisions hereof, the Amended Articles, the number and type of Warrant Shares purchasable upon the exercise of this Warrant and the Exercise Price payable therefor shall be subject to adjustment from time to time, as follows:

		4.1.1.	
Conversion Price Adjustment.  The Conversion Price (or any equivalent term used to define the price at which preferred shares can be converted into Ordinary Shares under the Amended Articles) of the Warrant Shares shall be the then-applicable Conversion Price of the class of shares constituting the Warrant Shares pursuant to the Amended Articles.

		4.1.2.	
Adjustment for Dividends in Kind. In case at any time or from time to time on or after the Closing, the holders of the class of shares of which the Warrant Shares are a part shall have received or, on or after the record date fixed for the determination of eligible shareholders, shall have become entitled to receive, without payment therefor, other or additional shares of the Company by way of dividend or bonus shares, then, and in each case, the Holder of this Warrant shall, upon the exercise hereof, be entitled to receive, in addition to the number of Warrant Shares receivable thereupon, and without payment of any additional consideration therefor, the amount of such other or additional shares of the Company which such Holder would be entitled to receive had it been the holder of record of such Warrant Shares on the date thereof and had thereafter, during the period from the date thereof to and including the date of such exercise, retained such shares and/or all other additional shares receivable by it as aforesaid during such period, giving effect to all adjustments called for during such period elsewhere in this Section 4.

		4.1.3.	
Share Splits and Reverse Share Splits.  If, at any time on or after the Closing, the Company shall subdivide its outstanding shares of all classes or of the class of the Warrant Shares into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision shall forthwith be proportionately reduced and the number of shares receivable upon exercise of this Warrant shall forthwith be proportionately increased; and, conversely, if at any time on or after the Effective Date, the outstanding number of shares of the class of the Warrant Shares shall be combined into a smaller number of shares, then the Exercise Price in effect immediately prior to such combination shall forthwith be proportionately increased and the number of shares receivable upon exercise of the Warrant shall forthwith be proportionately decreased; in each case, such that the aggregate Exercise Price of all Warrant Shares that are subject to this Warrant shall not change.

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		4.1.4.	
Adjustment for Reclassification or Reorganization.  In case of any reclassification or change of the outstanding securities of the Company or of any consolidation, merger or reorganization of the Company on or after the Effective Date, then and in each such case the Holder of this Warrant, upon the exercise hereof at any time after the consummation of such reclassification, change, consolidation, merger or reorganization, shall be entitled to receive, in lieu of or in addition to the shares or other securities and property receivable upon the exercise hereof prior to such reclassification, change, consolidation, merger or reorganization, the shares or other securities to which such Holder would have been entitled upon such reclassification, change, consolidation, merger or reorganization if such Holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided elsewhere in this Section 4; in each such case, the terms of this Section 4 shall be applicable to the shares or other securities or property receivable upon the exercise of this Warrant after such consummation. In such case the Exercise Price shall be adjusted appropriately such that the aggregate Exercise Price of all Warrant Shares that are subject to this Warrant shall not change.

4.2.  Certificate of Adjustment. Whenever an adjustment is effected under this Warrant, the Company shall promptly compute such adjustment and deliver to the Holder a certificate setting forth the number of Warrant Shares (or any other securities) for which this Warrant is exercisable and the Exercise Price as a result of such adjustment, a brief statement of the facts requiring such adjustment and the computation thereof and when such adjustment has or will become effective.

4.3.  Parallel Adjustments. For the avoidance of any doubt, it is the intention of the parties that any adjustments made to the exercise price and the number of warrant shares purchasable pursuant to the warrants granted by the Company to the Investors under the SPA, shall also be made to the Exercise Price and the number of Warrant Shares purchasable hereunder even if the Holder did not actually invest funds under the SPA.

5.  NOTICE OF CERTAIN EVENTS

5.1.  If at any time during the Warrant Period, any of the Notice Events set forth in Section 5.2 below shall occur, then, in any one or more of such events, the Company shall deliver to the Holder written notice thereof, at the time it so notifies the holders of a majority of the other shares of the Company who are not represented on the Company’s Board of Directors, provided that in case of a Notice Event set forth in Section 5.2(iii) such a notice shall be given not less than seven (7) days prior to the record date in respect thereof.

5.2.  For the purposes hereof, a “Notice Event” shall mean any of the following: (i) an IPO; or (ii) a Liquidation (as defined in the Amended Articles) or a Deemed Liquidation, or (iii) the date on which the Company shall distribute a dividend in cash or other property other than Bonus Shares (as defined in the Amended Articles).

6.  RIGHTS OF THE HOLDER

6.1.  No Current Rights as Shareholder. This Warrant shall not entitle the Holder, by virtue hereof, to any voting rights, rights to receive dividends or other rights as a holder of the Warrant Shares or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the holder of this Warrant, as such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of share, reclassification of share, change of par value, consolidation, merger, conveyance, or other-wise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the Warrant Shares purchasable upon the exercise hereof shall have become deliverable as expressly set forth herein.

8

6.2.  Certain Restrictions. The Holder acknowledges that the Warrant Shares shall be subject to certain rights, privileges, restrictions and limitations as set forth in this Warrant and the Amended Articles.

6.3.  Lockup. In the event of an IPO, any “lock-up” restrictions applicable to this Warrant and/or the Warrant Shares which may be acquired hereunder, shall terminate no later than upon the end of the “lock-up” period applicable to the Series F-1 Preferred Shares (or the Ordinary Shares into which they may be converted) in such IPO.

7.  REPRESENTATIONS

7.1.  The Holder represents and warrants to the Company as follows: (i) the Holder understands that the Warrant and the Warrant Shares have not been registered under the Securities Act by reason of their issuance in a transaction exempt from the registration and pros-pectus delivery requirements of the Securities Act; (ii) the Holder has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the purchase of this Warrant and the Warrant Shares, and of protecting its interests in connection therewith; (iii) the Holder is able to bear the economic risk of the purchase of the Warrant Shares pursuant to the terms of this Warrant.

7.2.  The Company represents and warrants to the Holder as follows: (i) this Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms; (ii) the Warrant Shares (and the Ordinary Shares into which such Warrant Shares are convertible) are duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms hereof, will be validly issued, fully paid (subject to the full payment of the exercise price, or valid net issuance exercise, by the Holder) and non-assessable and not subject to any third party rights or liens except for any liens created by the Holder to whom such Warrant Shares are issued and except for those restrictions on transfer set forth in the Amended Articles; and (iii) the execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance with the terms hereof and the issuance of the Ordinary Shares into which such Warrant Shares are convertible in accordance with the terms hereof and the Amended Articles, will not be, inconsistent with the Company’s governing documents, do not and will not conflict with or contravene any, and will be issued in compliance with all applicable laws, and do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any government authority or agency or other person, other than those consents or approvals that shall have been previously obtained and reports of issuance to the Israeli Registrar of Companies and to NATI (if applicable).

9

8.  MISCELLANEOUS

8.1.  Entire Agreement; Amendment. This Warrant sets forth the entire understanding of the parties with respect to the subject matter hereof and supersedes all existing agreements, promised or understandings, whether written or oral, among them concerning such subject matter. All section headings herein are inserted for convenience only and shall not modify or affect the construction or interpretation of any provision of this Warrant. No modification or amendment of this Warrant will be valid unless executed in writing by the Company and the Holder; provided however that in the event that the Special F Majority (as defined in the Amended Articles) agree with the Company to amend all of the Warrants granted pursuant to the SPA in the same manner, then this Warrant shall be deemed automatically amended in accordance with such amendment, without the need for further action or approval on the part of the Holder.

8.2.  Waiver. No failure or delay on the part of any of the parties in exercising any right, power or privilege hereunder and/or under any applicable laws or the exercise of such right or power in a manner inconsistent with the provisions of this Warrant or applicable law shall operate as a waiver thereof. Any waiver must be evidenced in writing signed by the party against whom the waiver is sought to be enforced.

8.3.  Successors and Assigns. Except as otherwise expressly limited herein, this Warrant shall inure to the benefit of, be binding upon, and be enforceable by the Holder and its respective successors, and administrators.

8.4.  Assignment. Any provision of this Warrant to the contrary notwithstanding, the Holder may not offer, sell or otherwise dispose of this Warrant to any third party, other than (i) to its Permitted Transferee (as defined in the Amended Articles) or (ii) simultaneously with the duly effected transfer of the Series F-1 Preferred Shares held by the Holder and in accordance with the restrictions on transfer of shares contained in the Amended Articles, assuming (for this purpose only) that this Warrant has been exercised; in each case, subject to the transferor and transferee providing the Company with a duly executed Assignment Form in the form attached hereto as Schedule 8.4, and with transferee providing the Company with a confirmation in writing that it is bound by all terms and conditions of this Warrant as if it were an original party to it..

8.5.  Governing Law. This Warrant shall be exclusively governed and construed in accordance with the laws of the State of Israel, without regard to conflicts of laws provisions of the State of Israel or of any other state, which may result in the application of another law.

8.6.  Jurisdiction. The competent courts in Tel Aviv-Jaffa shall have sole and exclusive jurisdiction over all matters relating to this Warrant.

8.7.  Notices. Any notice and other communication required or permitted to be given to a party pursuant to the provisions of this Warrant will be in writing,  mailed by registered or certified mail, postage prepaid, or prepaid express courier service, transmitted by facsimile or email, or otherwise delivered by hand or by messenger, addressed to such party’s address as set forth below, and will be effective and deemed given to such party on the earliest of the following: (a) the date of personal delivery (or refusal to receive); (b) one (1) Business Day (as defined in the SPA) after transmission via email, except where a notice is received stating that such email has not been successfully delivered); (c) one (1) Business Day after deposit with a return receipt express courier service; or (d) three (3) Business Days after deposit in local mail for registered or certified mail. All notices not delivered personally or by facsimile or email will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address set forth in the Amended Investors’ Rights Agreement, or at such other address as such other party may designate in accordance with this Section 8.7.

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8.8.  Severability.  In the event one or more of the provisions of this Warrant should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Warrant, which shall remain enforceable, to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Warrant (including, without limitation, the portion of this Warrant containing any provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

8.9.  Counterparts.  This Warrant may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

8.10.  Titles and Subtitles.  The titles of the sections and subsections of this Warrant are for convenience of reference only and are not to be considered in construing this Warrant.

8.11.  Preamble. The preamble hereto is an integral part hereof.

[THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, Gamida Cell Ltd. has caused this Warrant to Purchase Preferred F-2 Shares to be executed effective as of the date first written above.

	 	
GAMIDA CELL LTD.

	 	 	 
	 	
By:

	 
	 	 	
(Name & Title of Signatory)

	 	 	 

	
AGREED AND ACCEPTED: 

	 
	 	 	 
	
«Warrant_Holder»

	 	 
	 	 	 
	
By (sign name):

	 	 
	 	 	 
	
Print Name:

	 	 
	 	 	 
	
Title:

	 	 

[Signature Page to

Warrant to Purchase Series F-2 Preferred Shares / 2017]

12

Exhibit A

Exercise Notice

Date: ____________

		To:	
Gamida Cell Ltd. (the “Company”)

The undersigned, pursuant to the provisions set forth in the Warrant to Purchase Series F-2 Preferred Shares, dated as of «Closing_Date» to which this Exercise Notice is attached (the “Warrant”), hereby elects to purchase __________________  Warrant Shares , and

☐ tenders herewith payment in full for the Exercise Price for the Warrant Shares being purchased.

or alternatively,

☐ the Holder is making a net issue election.

The undersigned makes again here, with respect to the securities it is acquiring upon the exercise of the Warrant as contemplated hereby, the same representations, warranties and acknowledgements for the benefit of the Company, as it made in the Warrant.

Please issue a certificate representing the Warrant Shares in the name of the undersigned or (subject to compliance with any applicable conditions to a transfer of shares of the Company under the Articles of Association or otherwise) as otherwise indicated below and deliver it to the address stated below, and if the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, then please also issue a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant in the name of the undersigned or as otherwise indicated below and deliver it to the address stated below:

Name:

Address:

ID / Social Security No./ company number:

	 	
Signature:

	 

13

Schedule 8.4

Assignment Form

(To assign the foregoing Warrant to purchase shares of Gamida Cell Ltd., execute this form and supply required information.  Do not use this form to purchase shares.)

For Value Received, the Warrant To Purchase Series F-2 Preferred Shares of Gamida Cell Ltd., dated «Closing_Date», and all rights evidenced and obligations imposed thereby are hereby assigned and transferred to the undersigned transferee, who is hereby assuming and receiving all rights and obligations of the Holder under the Warrant and under the SPA and all of the schedules and exhibits attached thereto and contemplated thereby:

	
HOLDER

	 	 
	 	 	 
	
Holder’s Name:

	 	 
	 	 	 
	
Holder’s Signature:

	 	 
	 	 	 
	
Holder’s Address:

	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
Dated:

	 	 
	 	 	 
	 	 	 
	
TRANSFEREE

	 	 
	 	 	 
	
Transferee’s name:

	 	 
	 	 	 
	
Transferee’s signature:

	 	 
	 	 	 
	
Transferee’s Address:

	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
Dated:

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