Document:

EX-10.3

 Exhibit 10.3 

FORM OF LOCK-UP AGREEMENT 

            , 2015 

Sabby Capital Management, LLC 
 Maxim Group, LLC 

 

	 	Re:	Purchase of Securities of Capnia, Inc. 

 Ladies and Gentlemen: 

The undersigned, a holder of shares of common stock, par value $0.001 per share (“Common Stock”), or securities convertible
into or exercisable for Common Stock or rights to acquire Common Stock, of Capnia, Inc. (the “Company”) understands that you as a purchaser (“Purchaser”) of the Company’s securities, propose to enter into a
Securities Purchase Agreement (the “Purchase Agreement”) with the Company pursuant to which Purchaser shall purchase shares of Preferred Stock of the Company, together with related Warrants (collectively, the
“Securities”). Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Purchase Agreement. 

In consideration of the Purchaser’s agreement to enter into the Securities Purchase Agreement and to purchase the Securities, and for
other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned hereby agrees for the benefit of the Company and the Purchaser agree that, without the prior written consent of the Purchaser, the
undersigned will not, during the 90 day period (the “Lock-Up Period”) following the Effective Date (as such term is defined in the Purchase Agreement and which, if there are multiple Effective Dates, shall be the last Effective Date
as it relates to Securities (as defined in the Purchase Agreement) actually issued under the Purchase Agreement), directly or indirectly, without the prior written consent of the Purchaser or unless otherwise provided herein (a) offer, sell,
agree to offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, borrow or otherwise dispose (each a “Transfer”) of any Relevant Security (as defined below),
(b) establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent position” with respect to any Relevant Security (in each case within the meaning of Section 16 of the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder), or otherwise enter into any swap, derivative or other transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of
ownership of a Relevant Security, whether or not such transaction is to be settled by delivery of Relevant Securities, other securities, cash or other consideration, or (c) publicly disclose the intention to make any such offer, sale, pledge or
disposition, or to enter into any such transaction, swap, hedge or other arrangement. As used herein, the term “Relevant Security” means any shares of Common Stock, warrant or option to purchase Common Stock, or other security of
the Company or any other entity that is convertible into, or exercisable or exchangeable for shares of Common Stock or equity securities of the Company, in each case that are owned by the undersigned on the Effective Date or acquired by the
undersigned during the 

 
Lock-Up Period. Notwithstanding anything herein to the contrary, this lock-up shall not apply to any sales made by the undersigned at or above a sales price of $3.50 (subject to adjustment for
reverse and forward stock splits and the like). 
 In addition, the undersigned hereby agrees that, without the prior written consent of the
Purchaser, during the Lock-Up Period, the undersigned will not: (i) file or participate in the filing with the Securities and Exchange Commission of any registration statement, or circulate or participate in the circulation of any preliminary
or final prospectus or other disclosure document with respect to any proposed offering or sale of a Relevant Security and (ii) exercise any rights the undersigned may have to require registration with the Securities and Exchange Commission of
any proposed offering or sale of a Relevant Security. 
 In addition, to the extent required by applicable law, if: (i) the Company
issues an earnings release or material news or a material event relating to the Company occurs during the last seventeen (17) days of the Lock-Up Period, or (ii) prior to the expiration of the Lock-Up Period, the Company announces that it
will release earnings results during the sixteen (16)-day period beginning on the last day of the Lock-Up Period, the restrictions imposed by this Agreement shall continue to apply until the expiration of the eighteen (18)-day period beginning on
the issuance of the earnings release or the occurrence of the material news or material event, as applicable, unless the Purchaser waive, in writing, such extension or the undersigned receives prior written confirmation from the Purchaser or the
Company that the restrictions imposed herein have expired. 
 In furtherance of the undersigned’s obligations hereunder, the
undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, Relevant
Securities for which the undersigned is the record holder and the transfer of which would be a violation of this lock-up agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but not the record holder, agrees
during the Lock-Up Period to cause the record holder to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities to the extent such
transfer would be violation of this lock-up agreement. 
 Notwithstanding the foregoing, the undersigned may transfer the undersigned’s
Relevant Securities (i) as a bona fide gift or gifts, (ii) for bona fide financial and estate planning purposes, including, but not limited to, transfers to any trust for the direct or indirect benefit of the undersigned or the immediate
family of the undersigned, (iii) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity (1) to another corporation, partnership, limited liability company, trust or other business entity
that is a direct or indirect affiliate (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned or (2) to limited partners, limited liability company members or stockholders of the undersigned,
(iv) if the undersigned is a trust, to the beneficiary of such trust, (v) by testate succession or intestate succession, (vi) by operation of law, such as pursuant to a qualified domestic order or in connection with a divorce
settlement, provided, in the case of clauses (i)-(vi), that such transfer shall not involve a disposition for value and the transferee agrees in writing with the Purchaser and the Company to be bound by the terms of this lock-up agreement. For
purposes of this Agreement, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. 

 In addition, during the Lock-Up Period, the foregoing restrictions shall not apply to the:
(i) exercise of stock options granted pursuant to the Company’s equity incentive plans (whether on a cash or cashless basis) or the conversion or redemption of outstanding convertible securities including but not limited to warrants,
provided that the terms of this lock-up agreement shall apply to any of the Relevant Securities issued upon such exercise, conversion or redemption, as the case may be and, if the undersigned is required to file a report under Section 16(a) of
the Exchange Act reporting a reduction in beneficial ownership of shares of Common Stock during the Lock-Up Period, the undersigned shall include a statement in such report to the effect that such transfer was not a disposition for value;
(ii) the establishment or modification of any contract, instruction or trading plan (a “Plan”) that satisfies all of the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act, provided that no sales of the
undersigned’s Relevant Securities shall be made pursuant to such a Plan prior to the expiration of the Lock-Up Period (as such may have been extended pursuant to the provisions hereof) and no public announcement or disclosure of entry into such
Plan is made or required to be made during the Lock-Up Period, including any filing with the SEC under Section 16(a) of the Exchange Act; or (iii) transfers of the Relevant Securities to the Company in transactions exempt from
Section 16(b) of the Exchange Act, provided that no filing by any party under Section 16(a) of the Exchange Act shall be required or shall be made voluntarily in connection with such transfer. 

The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this lock-up agreement and that
this lock-up agreement constitutes the legal, valid and binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with enforcement
hereof. Any obligations of the undersigned shall be binding upon the successors and assigns of the undersigned from the date first above written. 

The undersigned understands that, (i) if the Purchase Agreement or the Registration Statement does not become effective, (ii) if the
Company, on the one hand or the Purchaser, on the other hand, informs the other in writing prior to the execution of the Purchase Agreement that it does not intend to proceed with the purchase of the Securities, or (iii) if the Purchase
Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated for any reason prior to payment for and delivery of the Securities to be sold thereunder, the undersigned shall be released from all obligations
under this lock-up agreement. 
 If the undersigned is an officer or director of the Company, (i) the Purchaser agrees that, at least
three business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Securities, the Purchaser will notify the Company of the impending release or waiver, and (ii) the Company has
agreed in the Purchase Agreement to announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver. Any release or waiver granted by the Purchaser
hereunder to any such officer or director shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if (a) the release or waiver is effected solely to permit a
transfer not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described in this letter to the extent and for the duration that such terms remain in effect at the time of the transfer. 

 The undersigned, whether or not participating in the offering of the Securities, understands that
the Purchaser is entering into the Purchase Agreement and proceeding with the purchase of the Securities in reliance upon this lock-up agreement. The undersigned further understands that this agreement is irrevocable and shall be binding upon the
undersigned’s heirs, legal representatives, successors and assigns. 
 This lock-up agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. Delivery of a signed copy of this letter agreement by facsimile or e-mail/.pdf transmission shall be effective as delivery of the original
hereof. 
 [Signature Page Follows] 

 
					
	Very truly yours,
	
	Vivo Ventures Fund V, L.P.
			
		 	by	 	Vivo Ventures V, LLC, its general partner
		 	by:	 	  

		 	its:	 	  

	
	Vivo Ventures V Affiliates Fund, L.P.
			
		 	by	 	Vivo Ventures V, LLC, its general partner
		 	by:	 	  

		 	its:	 	  

	
	Biotechnology Development Fund IV, L.P.
		 	by:	 	  

		 	its:	 	  

	
	BDF IV Annex Fund, L.P.,
			
		 	by	 	BioAsia Investments IV, LLC, its general partner
		 	by:	 	  

		 	its:	 	  

	
	Biotechnology Development Fund IV Affiliates, L.P.
			
		 	by	 	BioAsia Investments IV, LLC, its general partner
		 	by:	 	  

		 	its:	 	  

	
	Biotechnology Development Fund II, L.P.
			
		 	by	 	BioAsia Management, LLC, its general partner
		 	by:	 	  

		 	its:Exhibit 10.3

 

ADVANCED
INHALATION THERAPIES (AIT) INC.

 

 

 

EMPLOYMENT AGREEMENT

 

FOR

 

AMIR AVNIEL 

  

 

 

     

     

    

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”), dated as of September 17th, 2015, is made and entered into by and between Amir
Avniel, an individual having an address at 2600 Netherland Ave, Bronx, NY 10463 (the “Employee”) and Advanced
Inhalation Therapies (AIT) Inc., a Delaware corporation with its principal offices located at New York, New York 
(“AIT” or the “Company”).

 

WITNESSETH:

 

WHEREAS, the Company
desires to employ the Employee; and

 

WHEREAS, the Employee
is willing to render services to the Company, on the terms and subject to the conditions hereinafter set forth;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants, agreements and promises hereinafter set forth, the parties hereto covenant
and agree as follows:

 

1.      EMPLOYMENT. The Company hereby employs the Employee on the terms and conditions contained in this Agreement and the Employee
hereby accepts such employment upon the terms and conditions contained herein. While employed by the Company, the Employee shall
serve as President and Chief Executive Officer of the Company and act in such capacity for the Company's parent company, Advanced
Inhalation Therapies (AIT) Ltd. (the “Parent Company”) upon the terms and conditions set forth herein. The term
of this Agreement initially shall be for a period of _3 years from January 1st, 2016, provided, however, that this Agreement
shall renew automatically for successive additional one (1) year periods after the initial term unless: (i) notice of non-renewal
is given by either party to the other at least ninety (90) days prior to the end of the then current term; or (ii) the Agreement
is terminated pursuant to Section 4 hereof. The term “Employment Period” as used herein means the entire
period during which the Employee is employed by the Company hereunder.

 

2.      DUTIES.

 

(a)          Obligations
of Employee. The Employee will report directly to the Board of Directors of the Company. The Employee will perform and discharge
diligently and faithfully such duties as may be assigned to him from time to time by the Board of Directors of the Company which
will be such duties as are customary within the Company for the position of Chief Executive Officer. Notwithstanding anything contained
herein to the contrary, it is agreed and understood that the Employee shall be allowed to pursue and engage in the “Outside
Activities” (as hereinafter defined) provided such Outside Activities do not (i) interfere with Employee's employment hereunder
and the performance of his duties, responsibilities and obligations under this Agreement; or (ii) give rise to a conflict of interest.
The term “Outside Activities” shall mean: (i) serving as a board member on boards of directors; (ii) passive management
of Employee's personal investments and certain community and charitable activities.

 

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(b)          Full
Time Employment. The Employee will devote his full business time, attention, skills and energies to the performance of his
duties hereunder and to the promotion of the business of the Company, consistent with such duties,.

 

(c)          Restrictive
Covenants. The Employee will promptly deliver to the Company a signed copy of the Employee Confidentiality and Intellectual
Property Rights Agreement annexed hereto as Exhibit A (the “Restrictive Covenants”).

 

3.      COMPENSATION.

 

(a)          Salary.
For services rendered by the Employee hereunder, the Company will pay him a gross base salary at the annual rate of One Hundred
Ninety Thousand Three Hundred and Twenty Three US Dollars (US$190,323) (the “Salary”), less payroll deductions
and withholdings as required by applicable law. The Salary will be payable in accordance with the Company’s normal payroll
practices and will be subject to annual review and adjustment in the sole discretion of the Board of Directors..

 

(b)          Bonus.
Subject to the terms and conditions set forth herein, the Employee shall be entitled to receive an annual cash bonus, provided
that he is still employed by the Company on the date of payment thereof (the “Payment Date”), subject to certain
milestones and performance targets to be determined by the Board of Directors at its sole discretion. In addition to the foregoing,
and subject to the terms and conditions set forth herein, the Employee shall be entitled to receive a cash bonus of $50,000 upon
the closing of a Qualified Financing (as hereinafter defined), provided that he is still employed by the Company on the Payment
Date (the “Qualified Financing Bonus”). The Qualified Financing Bonus shall be payable in cash. The term “Qualified
Financing” shall mean the earlier of (i) the sale and issuance by the Parent Company of equity and/or debt securities in
which the Parent Company shall receive gross proceeds of at least $10,000,000; or (ii) the closing of an underwritten public offering
of the Parent Company's securities in which the Parent Company shall receive gross proceeds of at least $10,000,000.

 

(c)          Benefits.
Beginning on the date hereof and until the end of the Employment Period, the Company will provide the Employee with health insurance
and any other employee benefits made generally available to salaried employees of the Company from time to time in accordance with
the respective terms of such plans and programs. Such benefits may be modified or terminated at any time in the sole and absolute
discretion of the Company. Employee shall also be eligible to participate in any retirement plan, 401K plan, profit-sharing plan
and/or defined benefit plan maintained by the Company for the benefit of full time, salaried employees of the Company upon the
terms and conditions of such plans.

 

(d)          Expense
Reimbursement. The Company shall reimburse the Employee for out-of-pocket expenses properly incurred by the Employee directly
and solely in connection with performance of his duties and obligations hereunder, including without limitation, customary administrative
and office related costs (including costs related to Employee's computer, printer, landline phone and cellular phone, internet
services, etc.), traveling and lodging expenses while traveling, subject to the prior written approval of the Company, against
applicable receipts. Such expenses will be paid in accordance with the Company's expense reimbursement policy in effect from time
to time. It is further agreed that the Company shall reimburse the Employee for any expenses and legal fees incurred in connection
with obtaining a work permit/visa in the U.S. and applying for a Green Card.

 

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(e)          Vacation.
The Employee will be entitled to thirty (30) vacation days per calendar year, prorated for partial years. In all other respects,
the Employee’s vacation benefit will be governed by the Company’s vacation policy, which the Company may publish and
revise in its sole discretion from time to time. Vacation days may be accumulated if not used during a work year up to forty five
(45) unused vacation days per annum.

 

(f)          Withholding.
All payments made and benefits provided to the Employee under this Agreement may be subject to applicable federal, state and local
income and payroll withholding taxes.

 

4.      TERMINATION.

 

(a)          Termination
Without Cause by the Employee. The Employee may terminate his employment without cause at any time, effective upon ninety (90)
days prior notice to the Company; provided, however, that in case of such termination, the Employee will be entitled only to payments
and benefits until the effective date of termination and benefits that are required by applicable law governing wage payments or
continuation of benefits.

 

(b)          Termination
Without Cause by the Company or for Good Reason by the Employee. The Company may terminate the Employee’s employment
without cause at any time, or Employee may terminate his employment for Good Reason (as hereinafter defined), such termination
to be effective no earlier than ninety (90) days from the date notice thereof is given to the Employee (the “Notice Period”);
provided, however, that in the event of such termination the Company shall have the option to terminate the Employee’s employment
at any time during the Notice Period, in which event the Company will continue to pay the Employee the equivalent of his Salary
through the end of the Notice Period; provided further, however, that the Company will be entitled to discontinue making such payments
in the event the Employee breaches any of the Restrictive Covenants. Furthermore, in the event of termination of the Employee's
employment by the Company without cause or by Employee for Good Reason as set forth in this Section 4(b), the Company will pay
to the Employee and Employee shall be entitled to receive: (i) any earned but unpaid bonuses for prior years, if any, as of the
effective date of termination; (ii) any reimbursement of expenses pursuant to Section 3(e) herein, to the extent applicable, as
of the effective date of termination; and (iii) any benefits under any employee benefit plans as of the effective date of termination.
Furthermore, if the Employee is terminated by the Company without cause as set forth herein, the Employee shall be entitled to
a Salary continuation at the rate then in effect for a period of 90 days from the effective date of termination.

 

The term “Good
Reason” shall mean any of the following: (A) any material and adverse change in Employee's position with the Company; (B)
any material diminution in Employee's authority or responsibilities under this Agreement; (C) the Company requiring Employee to
be based at any office more than thirty (30) miles from the place of employment stated in this Agreement (however, travel required
by the Company in connection with Employee's duties will not constitute Good Reason); or (D) any material breach of this Agreement
by the Company that is not cured within 30 days from receipt of notice in writing. Notwithstanding the foregoing, in the event
the Employee does not give a written notice of Good Reason within 90 days after the initial existence of an event constituting
Good Reason, the event will no longer constitute Good Reason.

 

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(c)          Termination
for Cause. The Company may terminate the Employee’s employment for Cause at any time during the Employment Period, effective
immediately upon giving the Employee written notice of such termination. In such event, the Employee will be entitled only to payments,
expense reimbursement and benefits until the effective date of termination and benefits that are required by applicable law governing
wage payments or continuation of benefits. As used herein, the term “Cause” will mean any of the following events:

 

(i)          the
Employee is convicted of any felony;

 

(ii)         the
Employee is convicted of any misdemeanor involving moral turpitude, if in the reasonable good-faith judgment of the Company such
conviction has or could materially damage the reputation of the Company or is likely to materially interfere with the Employee’s
performance of his duties hereunder;

 

(iii)        the
Employee commits a material breach of this Agreement or engages in a willful failure to carry out the material directives of any
superior authorized by the Company to give such directives; and

 

(iv)        the
Employee commits a breach of any fiduciary duty or duty of loyalty owed to the Company, gross negligence, gross malfeasance, gross
nonfeasance or willful misconduct in the performance of his duties, including, without limitation, criminal dishonesty, fraud,
embezzlement or theft; breach of any of the Restrictive Covenants; a material violation of any Company or other external (e.g.,
professional) code of conduct to which the Employee may be subject; and any act or failure to act that the Employee knows or reasonably
should know is or likely to be materially injurious to the business or reputation of the Company.

 

(d)          Death.
If the Employee dies during the Employment Period, this Agreement and the Employee’s employment will automatically terminate
as of the date of his death. The Company will pay to the Employee’s estate and the Employee's estate shall be entitled to:
(i) any unpaid Salary and, if applicable, any unused vacation days accrued as of the date of death; (ii) any earned but unpaid
bonuses for prior years, if any, as of the date of death; (iii) any reimbursement of expenses pursuant to Section 3(e) herein,
to the extent applicable, as of the date of death; and (iv) any benefits under any employee benefit plans as of the date of death.
Furthermore, if the Employee dies during the Employment period, the Employee's estate shall be entitled to a Salary continuation
at the rate then in effect for a period of 90 days from the date of death. Except as set forth in this Agreement, the Employee’s
estate will neither be entitled to any further payments or benefits (including any bonus payment) except as required by any applicable
federal or state law.

 

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(e)          Disability.
If the Employee is incapacitated by accident, sickness or otherwise so as to render him mentally or physically incapable of performing
fully the services required of him under this Agreement (referred to herein as a “Disability”) for a period
of ninety (90) consecutive days, the Company may terminate this Agreement and the Employee’s employment effective immediately
after the expiration of such period, upon giving the Employee written notice of such termination. Notwithstanding the foregoing
provision, the Company acknowledges that it may be subject to the requirements of the Americans with Disabilities Act, the Family
and Medical Leave Act and corresponding state laws which may affect its right to terminate the Employee’s employment on account
of a Disability. In the event of termination for Disability as set forth in this Section 4(e), the Company will pay to the Employee
and the Employee shall be entitled to: (i) any unpaid Salary and, if applicable, any unused vacation days accrued as of the effective
date of termination; (ii) any earned but unpaid bonuses for prior years, if any, as of the effective date of termination; (iii)
any reimbursement of expenses pursuant to Section 3(e) herein, to the extent applicable, as of the effective date of termination;
and (iv) any benefits under any employee benefit plans as of the effective date of termination. Furthermore, if the Employee is
terminated for Disability as set forth herein, the Employee's estate shall be entitled to a salary continuation at the rate then
in effect for a period of 90 days from the effective date of termination.

 

(f)          Termination
Upon Change of Control.

 

In the event
the Employee's employment is terminated within two (2) years following the closing of a Change of Control Transaction (as hereinafter
defined) either: (i) by the Company without cause, or (ii) by Employee for Good Reason, the Company shall pay the Employee and
Employee shall be entitled to receive (i) any unpaid Salary and, if applicable, any unused vacation days accrued as of the effective
date of termination; (ii) any earned but unpaid bonuses for prior years, if any, as of the effective date of termination; (iii)
any reimbursement of expenses pursuant to Section 3(e) herein, to the extent applicable, as of the effective date of termination;
and (iv) any benefits under any employee benefit plans as of the effective date of termination. Furthermore, if the Employee is
terminated in connection with a Change of Control Transaction pursuant to this Section 4(f), the Employee shall be entitled to
a Salary continuation at the rate then in effect for a period of seven (7) months following the effective date of termination.

 

The term
"Change of Control Transaction" shall mean (i) a merger, consolidation, a sale of all or substantially all of the assets
or similar transaction of the Parent Company or its subsidiaries with or into or to any other person or entity, where the Parent
Company shall not be the surviving entity, or, if the Parent Company is the surviving entity, after which the equity holders of
the Parent Company as of the date hereof fail to own at least fifty percent (50%) of the voting or management power of the Parent
Company or (ii) other than any public offering of securities, one or more sales of the outstanding capital stock of the Parent
Company after which the equity holders of the Parent Company as of the date hereof fail to own at least fifty percent (50%) of
the voting or management power of the Parent Company or the surviving person or entity, as applicable.

 

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(g)          Mitigation
and Set Off. It is agreed and understood that the Employee shall not be required to (x) mitigate (by seeking any other
employment, self employment or any other income producing pursuit) any post-employment compensation under this Section 4 or (y) set
off against any post-employment compensation, any compensation for other employment, consultancy or unemployment benefits received
while he is receiving post-employment compensation hereunder.

 

5.      NOTICES.
Any notices or other communications required to be given pursuant to this Agreement will be in writing and will be deemed given:
(i) upon delivery by hand to the Employee if delivery is to the Employee or to an officer of the Company, other than the Employee,
if delivery is to the Company, as the case may be; (ii) after two (2) business days if sent by express mail or air courier;
(iii) four (4) business days after being mailed, if sent by registered mail (airmail if to an address in a foreign country
from the point of mailing), postage prepaid, return receipt requested; or (iv) upon transmission, if sent by facsimile (provided
that a confirmation copy is sent in the manner provided in clause (ii) or clause (iii) of this Section 5 within thirty-six
(36) hours after such transmission), except that if notice is received by facsimile after 5:00 p.m. on a business day at the place
of receipt, it will be effective as of the following business day. All communications hereunder will be delivered to the respective
parties at the following addresses:

 

If to the Company:

 

Advanced Inhalation Therapies (AIT) Inc.

 

Attention: Amir Avniel, Chief Executive Officer

 

If to the Employee:

 

	 	Amir Avniel	 
	 	 	 
	 	 	 
	 	 	 

 

or to such other address as the person to whom notice is given
may have previously furnished to the others in writing in the manner set forth above.

 

6.      GOVERNING
LAW. This Agreement will be governed by and construed in accordance with the laws of the State of New York, regardless of the
laws that might otherwise govern under applicable principles of conflict of laws thereof. Each party agrees that all legal proceedings
concerning the interpretations and enforcement of this Agreement and the transaction contemplated hereunder shall be commenced
exclusively in the state and federal courts sitting in New York County. Each party hereby irrevocably submits to the exclusive
jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the Southern
District of New York for the adjudication of any dispute hereunder or in connection herewith.

 

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7.      WAIVER
OF BREACH. The waiver by the Company of a breach of any provision of this Agreement by the Employee will not operate or be
construed as a waiver of any subsequent breach by the Employee.

 

8.      SUCCESSORS
AND ASSIGNS. This Agreement will be binding upon and will inure to the benefit of the parties hereto and their respective heirs,
successors, representatives and assigns. This Agreement is assignable to any legal successor of the Company. This Agreement may
not be assigned by the Employee.

 

9.      ENTIRE
AGREEMENT. This Agreement, which includes the Restrictive Covenants, constitutes the entire understanding and agreement between
the Company and the Employee with regard to all matters contained herein and incorporates and supersedes all prior and simultaneous
agreements between the parties concerning the employment of the Employee by the Company. No prior or contemporaneous promises,
agreements, conditions or representations, oral or written, express or implied, relating hereto but not contained herein shall
be of any force or effect, or are or can be relied upon in any way. This Agreement may be amended only in a writing signed by both
parties.

 

10.    INTERNAL
REVENUE CODE SECTION 409A. This Agreement shall be interpreted and administered in a manner so that any amount payable hereunder
shall be paid or provided in a manner and at such time and in such form that is either exempt from or compliant with the applicable
requirements of Section 409A of the Internal Revenue Code (the “Code”) and applicable guidance and regulations issued
thereunder. Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute
non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable
hereunder by reason of the Employee’s termination of employment, such amount or benefit will not be payable or distributable
to the Employee by reason of such circumstance unless (i) the circumstances giving rise to such termination of employment
meet any description or definition of “separation from service” in Section 409A of the Code and applicable regulations
(without giving effect to any elective provisions that may be available under such definition), or (ii) the payment or distribution
of such amount or benefit would be exempt from the application of Section 409A of the Code by reason of the short-term deferral
exemption or otherwise. If any amount that would constitute non-exempt “deferred compensation” for purposes of Section
409A of the Code would otherwise be payable or distributable under this Agreement by reason of the Employee’s separation
from service during a period in which she is a “specified employee” (as defined in Section 409A of the Code and applicable
regulations), then payment of such non-exempt amounts shall be delayed until the earlier of the Employee’s death or the first
day of the seventh month following Employee’s separation from service. This provision does not prohibit the vesting of any
amount upon a termination of employment, however defined. If this provision prevents the payment or distribution of any amount
or benefit, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section
409A-compliant “separation from service.”

 

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11.    MISCELLANEOUS.
This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original and when a counterpart has been executed by each of the
parties hereto, all of the counterparts, when taken together, shall constitute one and the same agreement. This Agreement may not
be modified or amended unless agreed to in writing by the parties.

 

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IN WITNESS WHEREOF,
the parties have executed this Employment Agreement as of the date set forth above.

 

	 	The Company:
	 	 
	 	ADVANCED INHALATION THERAPIES (AIT) INC.
	 	 
	 	By:	/s/ Racheli Vizman
	 	Name: Racheli Vizman
	 	Title: COO
	 	 
	 	Employee:
	 	 
	 	/s/ Amir Avniel
	 	AMIR AVNIEL

 

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EXHIBIT C

 

EMPLOYEE
CONFIDENTIALITY AND INTELLECTUAL

PROPERTY
RIGHTS AGREEMENT

 

This Agreement is entered
into by and between the undersigned Employee and Advanced Inhalation Therapies (AIT) Inc., a Delaware Corporation (the “Company”).

 

RECITALS

 

A.           Employee
is now, or desires to become, employed by the Company.

 

B.           Employee
understands and acknowledges that he will come into contact with, and be exposed to, valuable, special and unique Company confidential
and proprietary information and trade secrets. Employee further acknowledges the highly competitive nature of the Company’s
business and understands and acknowledges that the restrictions set forth in this Agreement are reasonable and necessary for the
protection of the Company’s legitimate business interests.

 

NOW, THEREFORE, in
exchange for the mutual covenants and conditions set forth herein, the parties, intending legally to be bound, hereby agree as
follows:

 

1.          Consideration.
Employee understands and acknowledges that the consideration for this Agreement is Employee’s employment by the Company and
the compensation and other valuable benefits to be received by Employee during the course of Employee’s employment by the
Company.

 

2.          Confidential
Information. Employee agrees that, both during Employee’s employment by the Company and at all times thereafter,
Employee will not, except as required to effectively and appropriately discharge Employee’s duties to the Company, directly
or indirectly use or disclose to any third person, without the prior written consent of the Company, any Confidential Information
(as hereinafter defined) of the Company or its affiliates worldwide (the “Company Group”). For purposes of this
Agreement, “Confidential Information” means customer lists, customer requirements and specifications, financial data,
sales figures, costs and pricing figures, test reports, test data, test procedures, testing manuals, testing software, marketing
and other business plans, product development, marketing concepts, personnel matters, drawings, specifications, instructions, methods,
processes, techniques, formulae or any other information of any kind relating to the service, business and products of the Company
and/or the Company Group ́s sales, technology, research, research data, business, affairs and finances of the Company and/or
the Company Group and all other know-how, trade secrets or proprietary information, or any copies, elaborations, modifications
and adaptations thereof, which are in the possession of the Company Group and which have not been published or disclosed to, and
are not otherwise known to, the public. In the event the Company is bound by a confidentiality agreement or understanding with
a customer, vendor, supplier or other party regarding the confidential information of such customer, vendor, supplier or other
party, which is more restrictive than specified above in this Section 2, and of which Employee has notice or is aware, the provisions
of such other confidentiality agreement will be binding upon Employee and will not be superseded by this Section 2. Employee further
agrees that, all documents containing Confidential Information of the Company shall remain the exclusive property of the Company
and that upon the termination of Employee’s employment with the Company for any reason or at any other time upon request,
Employee will promptly deliver to the Company, without retaining any copies thereof, all tangible evidence of the Confidential
Information, including, without limitation, all notes, memoranda, records, files and other documents, whether tangible or intangible,
and regardless of how stored or maintained, whether on computer tapes, discs or any other form of technology. Notwithstanding anything
contained herein to the contrary, it is agreed that the obligations of confidentiality and non-use as set forth hereunder shall
not apply to any information that (a) was known to the Employee or in the public domain before the disclosure hereunder, or (b)
becomes known to the public through no unauthorized act or omission on the part of the Employee; or (c) is disclosed to the Employee
by a third party having a legal right to make such disclosure; or (d) is required to be disclosed by applicable law.

 

     

     

    

  

3.            Non-Competition
Covenant. During the term of Employee’s employment with the Company and for a period of twenty four (24) months after
such employment terminates, regardless of the reason, Employee will not (a) accept employment in the United States, Canada
or any other geographic area in which the Company does business (during the course of his employment with the Company or at the
time his employment terminates) (the “Restricted Geographical Area”) with any Competitive Business (as hereinafter
defined); or (b) engage in any business or activity (whether alone or as an owner, member, manager, partner, officer, employee,
director, investor, lender, consultant or independent contractor of any entity) within the Restricted Geographical Area that is
a Competitive Business. For purposes of this Agreement, “Competitive Business” shall mean a business or entity that
is engaged in the field of using nitric oxide for respiratory diseases

 

4.            Non-Solicitation
Covenant. During the term of Employee’s employment with the Company and for a period of twenty four (24) months after
such employment terminates, regardless of the reason, Employee will not directly or indirectly, for any reason or purpose whatsoever
(other than on behalf of the Company in performing Employee’s required duties for the benefit of the Company) engage in any
of the following activities, whether for Employee’s own benefit or on behalf of, or in conjunction with, any other corporation,
partnership, limited liability company, proprietorship or business, and whether as an employee, partner, principal, officer, director,
consultant, agent, shareholder, or otherwise:

 

(i)          solicit,
take away, divert, attempt to take away or provide any product or service similar to those offered by the Company to any customer
or solicited prospect of the Company if the customer or solicited prospect is someone (x) whom Employee worked or dealt with,
solicited, sold or provided any product or service to, dealt with, or became aware of by virtue of Employee’s employment
with the Company or access to Confidential Information, or (y) who was a customer of an employee whom Employee directly or
indirectly managed or supervised at any time during the last year of Employee’s employment with the Company;

 

     - 2 -

     

    

 

(ii)         induce
or attempt to induce any supplier or customer of the Company to reduce such supplier’s or customer’s business with
the Company or divert any such supplier’s or customer’s business from the Company, by direct advertising, solicitation
or otherwise; or

 

(iii)        solicit
the employment of, recruit, employ, hire, cause to be employed or hired, entice away, or establish a business with, any then current
officer, manager, or other employee or agent of the Company (other than nonsupervisory or nonmanagerial personnel who are employed
in a clerical or maintenance position) or any other such person who was employed by the Company within the twelve (12) months immediately
prior to such employment or establishment, or suggest to or discuss with any such employee the discontinuation of that person’s
status or employment with the Company; or

 

(iv)        assist
any person, firm, entity, employer, business associate or member of Employee’s family to commit any of the foregoing acts.

 

5.            Other
Agreements/Warranties. Employee warrants that Employee is not bound by the terms of any confidentiality agreement or non-competition
agreement or any other agreement with a former employer or other third party which would preclude Employee from accepting employment
with the Company or which would preclude Employee from effectively performing Employee’s duties for the Company. Employee
further warrants that, Employee has the right to make all disclosures that Employee will make to the Company during the course
of Employee’s employment by the Company.

 

6.            Company’s
Intellectual Property Rights.

 

(i)          Work
for Hire. Employee agrees that all work, materials (tangible and intangible) and products produced, developed, created
or completed by Employee on behalf of the Company during the course of Employee’s employment by the Company will be deemed
“work for hire,” as such term is defined by the copyright laws of the United States, and are expressly intended to
be wholly owned, and all copyright rights to be held, by the Company. To the extent that any such copyrightable works may not,
by operation of law, be works for hire, Employee agrees to and hereby does assign to the Company or its designees ownership of
all copyright rights in those works. The Company will have the right to obtain and hold in its own name copyrights, registrations
and similar protection which may be available for those works. Employee agrees to give the Company or its designees all assistance
reasonably required to secure or protect those rights.

 

     - 3 -

     

    

  

(ii)         Company’s
Proprietary Rights. Employee agrees that all discoveries, developments, ideas, improvements, modifications, innovations,
inventions, processes, know-how, technical information, secret processes, programs, operating instructions, manuals, documentation,
discs, tapes, written materials, systems, techniques, hardware, software, test procedures or other things, whether or not patentable
(referred to herein as “Inventions”), that are made, conceived or reduced to practice by Employee, while employed by
the Company, solely or with others, whether or not during working hours or on the Company’s premises, and that (i) relate
to the Company’s competitive business activities or actual or demonstrably anticipated research or development or a reasonable
or contemplated expansion thereof, or (ii) result from any work performed by Employee for the Company, or (iii) are developed
on the Company’s time or using the Company’s equipment, supplies, facilities or trade secret information, or (iv) are
based upon or are related to trade secrets and other confidential information of the Company, its parent company or affiliates
that Employee have had access to through Employee’s employment by the Company, will be the exclusive property of, and will
promptly be disclosed by Employee to, the Company.

 

(iii)        General.
Without limiting the preceding subsections of this Section 6, all intellectual property developed or generated by Employee during
and in the course and scope of his employment with the Company, including any trademarks or trademark rights, shall will be the
exclusive property of the Company.

 

(iv)        Cooperation.
Employee agree that, at any time during or after Employee’s employment with the Company, Employee will, without further compensation
but at the Company’s sole expense, sign all papers and cooperate in all other acts reasonably required to secure or protect
the Company’s rights in all such property identified in subsection (b) above, including without limitation executing written
assignments therefor and applying for, obtaining and enforcing patents thereon in any and all countries. In the event that Employee
is unable or unavailable or will refuse to sign any lawful or necessary documents required in order for the Company to apply for
and obtain a patent or patents with respect to any work performed by Employee (including applications or renewals, extensions,
divisions or continuations), Employee hereby irrevocably designates and appoints the Company and its duly authorized officers and
agents as Employee’s agents and attorneys-in-fact to act for and in Employee’s behalf, and in Employee’s place
and stead, to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and
issuance of patents with respect to such new developments with the same legal force and effect as if executed by Employee.

 

(v)         Assignment
of Intellectual Property Rights. Nothing set forth in this Agreement will be deemed to limit the Company’s right
to assign any intellectual property rights to any other party, whether a member of the Company Group or otherwise.

 

     - 4 -

     

    

  

7.          Enforcement/Remedies.
Employee understands and acknowledges that a breach of the provisions of this Agreement would injure the Company irreparably in
a way which could not be adequately compensated for by damages. Employee therefore agrees that in the event of any breach or threatened
breach by Employee, Employee will be subject to disciplinary action up to and including termination by the Company, and the Company
will be entitled to an injunction, without bond, restraining such breach, as well as costs and attorneys’ fees relating to
any such proceeding or any other legal action to enforce the Agreement. Nothing herein will be construed, however, as prohibiting
the Company from pursuing other available remedies or recovering on any claim for damages for such breach or threatened breach.

 

8.          Governing
Law. The parties agree that this Agreement will be governed and construed by and in accordance with the laws of the State
of New York regardless of the laws that might otherwise govern under applicable principles of conflict of laws thereof. Each party
agrees that all legal proceedings concerning the interpretations and enforcement of this Agreement and the transaction contemplated
hereunder shall be commenced exclusively in the state and federal courts sitting in New York County. Each party hereby irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District
Court for the Southern District of New York for the adjudication of any dispute hereunder or in connection herewith.

 

9.          Severability.
If any provision of this Agreement is deemed invalid or unenforceable, the validity of the other provisions of this Agreement will
not be impaired. If any provision of this Agreement will be deemed invalid as to its scope, then notwithstanding such invalidity,
that provision will be deemed valid to the fullest extent permitted by law, and the parties agree that, if any court makes such
a determination, it will have the power to reduce the duration, scope and/or area of such provision and/or to delete specific words
and phrases by “blue penciling” and, in its reduced or blue penciled form, such provision will then be enforceable
as permitted by law.

 

10.         Assignment.
The provisions of this Agreement will inure to the benefit of the successors and assigns of the Company.

 

11.         Entire
Agreement/Waiver. This Agreement represents the entire understanding of the parties with respect to its subject matter,
no modification of any provision hereof will be valid unless made in writing and signed by the parties hereto, and no waiver of
any provision hereof will be valid unless made in writing and signed by the party to be charged with such waiver.

 

     - 5 -

     

    

  

IN WITNESS WHEREOF,
the Company has caused this Agreement to be signed by its duly authorized representative, and Employee has executed this Agreement
as of the date set forth below.

 

COMPANY:

 

ADVANCED INHALATION THERAPIES (AIT) INC

 

	By:	/s/ Racheli Vizman	 
	Name: Racheli Vizman	 
	Title: COO	 

 

EMPLOYEE:

 

	/s/Amir Avniel	 
	 	 
	AMIR AVNIEL	 

 

     - 6 -

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