Document:

Exhibit 10.1

    

     

    

    
      MUTUAL SEPARATION AGREEMENT

      

      

      This Mutual Separation Agreement (the “Agreement”) is made and entered on June 15, 2022 (the “Effective Date”) by and between Entera Bio Ltd., a company registered in
          Israel under number 514330604 of Hi-Tech Park 2/5 Givat-Ram, Jerusalem (the "Company") and Phillip Schwartz, ID No. 343880345 of David Alro'i 5(aleph) 35, Jerusalem (the “Executive”).  The Company and the Executive are each a “Party” and together are the "Parties".

      

      

      	

            	Whereas:	
              The Executive is one of the founders of the Company and a shareholder of the Company, and until May 31, 2010 (the "Initial Period"), any engagement he had with the Company was in his capacity as its founder;

            

      

      

      	

            	Whereas:	
              As of June 1, 2010, the Executive has been employed by the Company as its direct employee, in various positions, pursuant to an employment agreement dated August 19,
                2010, which was later replaced by an employment agreement dated June 8, 2014, as amended from time to time, including by an amendment dated May 19, 2019 (collectively referenced herein as the "Employment Agreement");

            

      

      

      	

            	Whereas:	
              The Parties have been negotiating a mutual separation agreement of the Executive from his employment by the Company; and

            

      

      

      	

            	 Whereas:	
              The Parties have agreed that the Executive's employment with the Company shall end by mutual consent on July 21, 2022 (the "Separation Date"), which constitutes an extended prior notice period, and have further agreed that the Executive shall be entitled to the Ex-Gratia Benefits (defined below), to
                which he would otherwise have no entitlement, subject to the terms of this Agreement;

            

      

      

      Now Therefore,
        the Parties agree and affirm as follows:

      

      

      	1.	
              The preface to this Agreement constitutes an integral part hereof. The capitalized terms appearing herein shall have the meanings attributed to them in the Employment
                Agreement, unless otherwise stated.

            

      

      

      	2.	
              On the Separation Date, the Executive's Employment shall terminate and the Employment Agreement shall terminate except for its provisions intended to survive its
                termination, including specifically, sections 16.1-16.4 to the Employment Agreement. The Executive hereby confirms and undertakes that he has complied and shall continue to comply with the obligations of Confidentiality, Non-Competition,
                Non-Solicitation and Intellectual Property Rights undertakings applicable to him under any law and agreement, including the Employment Agreement, which shall all continue to survive and be binding upon the Executive after the Separation
                Date, in accordance with their terms.

            

      

      

      	3.	
              Until the Separation Date, the Executive shall continue to perform his position, in accordance with the Company's needs and instructions and shall comply with the
                Company's instructions, polices and applicable laws.

            

      

      

      	4.	
              Upon the Effective Date (i.e., the date that both Parties have signed this Agreement),
                  the Executive hereby resigns from his capacity as a director of the Company and/or any other member of the Group (defined below) (including from any committees thereof) effective as of the Effective Date and from the capacity as an
                  officer of the Company and/or any other member of the Group effective as of the Separation Date, and accordingly the Executive shall thereafter cease to be a director and officer of the board of directors of the Company (the "Board") and/or a director or officer of the Company or any other
                  member of the Group as of the above-mentioned dates with no additional actions whatsoever required by any of the Parties. Notwithstanding the foregoing, the Executive shall execute all documents necessary for that purpose as may be
                  required by the Company to effect such resignation. Notwithstanding the foregoing and for removal of doubt it is clarified that the employment relations between the Executive and the Company shall continue until the Separation Date, as
                  defined above, and until the Separation Date the Executive will continue to be entitled to all rights as an employee, including for the purpose of options vesting (which shall continue to vest in accordance with their terms until the
                  Separation Date).

            

      

      

      
        
          

      

      
      	5.	
              On or around the Separation Date, a full and final settlement of accounts will be carried
                  out with the Executive in the framework of which, he shall receive all the payments and benefits to which he is entitled due to the termination of his employment as detailed in Appendix A attached hereto, subject to the specific deductions as set forth in this Agreement, tax
                  deductions and applicable law. Such payment will be made to the Executive on the next regular salary payment date following the Separation Date except as otherwise required by applicable law. In addition, the Company shall send release
                  letters to the relevant insurance companies, releasing to the Executive all sums accrued to his pension arrangement, including without limitation, the severance pay component, as well as all sums accumulated in the further education fund
                  in the Executive's name (the "Release Letters").

            

      

      

      	6.	
              In addition to the above, as a gesture of good will and above the requirements of
                the law, conditioned upon the Executive's execution of, and full compliance with, the terms and conditions of this Agreement, the Company will grant the Executive,
                  an extended paid prior notice period, and the following ex-gratia benefits (the benefits under Sections 6.1 and 6.2 are the "Ex-Gratia Benefits"):

            

      

      

      	

            	6.1.	
              The Company shall approve and recommend to the shareholders of the Company to approve on the next shareholders meeting of the Company, which will be held as early as
                practicable following the Effective Date, in a timely manner and subject to all requirements of the applicable law and NASDAQ rules, and subject to the instructions of the Company's legal advisors, the following amendment to the options
                terms (collectively, the "Amended Options Terms"):

                (i) a full acceleration of the 2021 Option Grant, such that all outstanding options to acquire Ordinary Shares under the 2021 Option
                Grant which are not already vested as of the date of the Separation Date shall be fully vested and exercisable upon the approval of the shareholders, and (ii) notwithstanding the termination of employment as of the Separation Date or any
                provisions in the applicable option agreement or the Company's option plan requiring the Executive to exercise the Existing Options within 90 days of termination, upon the approval of the shareholders, the Existing Options shall be
                exercisable by the Executive during the earlier of (i) period of 10 years from the initial grant date by the Board as applicable to each grant of the Existing Options, or (ii) such earlier dates as applicable in M&A events, Change in
                Control, Structural Changes or other similar events as specified in the Company's share option plans or as applicable to all other option holders as granted under the Company's option plans as permitted by the Board ; for the sake of good
                order, all other terms of the Existing Options and the applicable share option plans shall remain as-is and unchanged and these Amended Options Terms shall not derogate from any other such terms. The Executive agrees to execute an amendment
                to the applicable option agreements with respect to the Existing Options, which will reflect the Amended Options Terms, following the receipt of required approvals according to the applicable law.

            

      

        The term "Existing Options" shall mean the following two option grants to acquire ordinary shares of the Company, par value ILS 0.0000769
        per share (the "Ordinary Shares") based on the option agreements between the Company and the Executive which were executed under the applicable
        Company's share option plans: (i) option to acquire 357,500 Ordinary Shares approved by the Board on November 23, 2017 subject to the terms approved therein and as amended (including with respect to the exercise price) (the "2017 Option Grant"), and (ii) option to acquire 100,000 Ordinary Shares approved by the Board on April 21, 2021 subject to the terms approved therein (including with
        respect to the exercise price) (the "2021 Option Grant"). All references to number of options and shares under this Agreement are subject to
        customary adjustments in the event of shares split, reverse split and other similar recapitalization events).

      

      

      
        2

        
          

      

      	

            	6.2.	
              The Company shall approve and recommend to the shareholders of the Company to approve that together with the signing of this Agreement, the Parties enter into a
                Consulting Agreement in the form attached as Appendix B to this Agreement (the "Consulting Agreement").

            

      

      

      	

            	6.3.	
              Notwithstanding anything to the contrary in this Agreement, the Executive acknowledges that the approval of the Ex-Gratia Benefits is subject to the approval of all corporate organs of the Company as required according to applicable law (including without limitation, the Company's compensation
                committee, the Board and the shareholders of the Company) and such Ex-Gratia Benefits shall only enter into effect upon such approval, and to the extent that the shareholders of the Company shall not approve these terms in the upcoming
                shareholders meeting of the Company, then no such Ex-Gratia Benefits shall be granted to the Executive.  For the avoidance of doubt, the Board shall approve and recommend to the Company’s shareholders that the Ex-Gratia Benefits be
                approved. If the Ex Gratia benefits are not approved by the shareholders in the upcoming shareholders meeting, then the terms of Section 21 of this Agreement shall apply.

            

      

      

      	7.	
              All payments and benefits referred to herein are gross amounts and the Company will
                  deduct at source from them, all taxes, social security, health insurance and all other deductions, which are mandatory under applicable law. In addition, any and all debts owed to the Company by the Executive, including a total
                  outstanding gross debt amount of NIS 86,867.02, and/or any other debts outstanding, if any, under the Company's credit card issued under the name of the Executive (the "Credit Card") will be set off from any such amounts and benefits as detailed in Appendix A attached hereto.

            

      

      

      	8.	
              The Executive acknowledges and undertakes that the receipt of all of the payments and/or
                  benefits due to him as detailed in Appendix A attached hereto (subject to the specific deductions as set forth in this Agreement, tax deductions and applicable law), and the issue of the Release Letters, constitute full and final settlement of everything owed to him by the
                  Company and/or any of its affiliates (being any person controlling, controlled by, or under common control, in each case, directly or indirectly, with the Company now or in the future) (collectively, the “Group”) in connection with his employment with the Company and/or any other
                  services as a director or officer of the Group, including (but not limited to) with respect to (whether to be paid now or in the future in each case with respect to the period prior to the Separation Date): salary, overtime payment,
                  severance pay, sick leave, vacation, redemption of vacation days, travel expenses, cellular phone, recuperation pay, prior notice, payment in lieu of prior notice, expenses reimbursement, bonuses of all kinds, social contributions of all
                  kinds, including to any managers' insurance policy, pension fund and advanced study fund, commissions of all kinds, additional entitlement to options, stock or any other equity securities of the Company, claims for ownership or other
                  rights, payment or royalties with respect to the know-how of the intellectual property of the Company (including any moral rights) and any other payment or cost or social benefit whatsoever arising out of or connected to the Executive's
                  employment by the Company and/or its termination and/or the termination process and/or any other services provided to the Group, including in his capacity as a director or officer, except that Indemnification Agreement shall remain in
                  full force and effect in accordance with and subject to the terms of such agreement, and coverage by the Company’s D&O Insurance, if any, as set forth in Section 9.1 below.

            

      

      

      	9.	
              The Parties hereby release the following claims subject to the terms and conditions set forth below.

            

      

      

      
        	 	
                9.1.

              	
                The Executive hereby confirms and declares that upon and subject to receipt of all of the payments and benefits
                    due to him as detailed in Appendix A attached hereto (subject to the specific deductions as set forth in this Agreement, tax
                    deductions and applicable law),  and the issue of the of Release Letters, neither he nor anyone on his behalf, shall have any claim, causes of action, suits or demand of any kind whatsoever (including without limitation with respect to
                    the know-how or ownership of the intellectual property of the Company or any claims to receive additional payment or royalties in connection with the intellectual property of the Company), both contingent and fixed, known and unknown,
                    suspected or unsuspected, matured or un-matured, of every kind and nature whatsoever in law or equity, contract, or otherwise which he ever had, now have, or which he shall, or may have, for, upon, or by reason of, any other matter
                    whatsoever (collectively,  "Claims") against the Company and/or any other member of the Group and/or against any of their past, present
                    or future directors, officers, managers, employees, shareholders, investors, affiliates, representatives consultants, legal any of their advisors, or successors or against anyone acting on their behalf (collectively, "Representatives") with regards to the Executive’s employment with the Company or the termination thereof, or and/or any other services
                    provided to the Group, including the capacity of as a director or officer. The Parties agree that the indemnification agreement executed by the Executive with the Company prior to the Separation Date shall remain in full force and
                    effect in accordance with its terms (the "Indemnification Agreement") and that the Company’s D&O insurance, as may be in effect
                    from time to time, if any, will apply to the Executive in the same manner and for the same period of time that coverage is provided for other former officers and directors (the "D&O insurance"). Notwithstanding anything to the contrary in this Agreement, the Executive understands and confirms that the Company cannot guarantee its ability to acquire or
                    maintain a D&O Insurance (either with respect to former directors and officers or in general), the economic terms of the D&O Insurance, the ability to renew such insurance or that the coverage under the insurance, if any, will
                    cover all indemnification obligations under the Indemnification Agreement. Without derogating from the generality of the above, the Executive confirms that: (i) during the Initial Period, he had provided services to the Company in his
                    capacity as its founder, with no written agreement and without entitlement to any consideration, and no employer-employee relationship or other contractual relationship had existed between him and the Company, for any matter or purpose,
                    whatsoever with respect to such period, and that the Executive is owed nothing from the Company with respect to the Initial Period and/or its termination, (ii) the above waiver of Claims includes any claims or demands with regard to the
                    employment period and/or the Employment Agreement and/or its termination; and (iii) for the sake of good order, the waiver of Claims made by the Executive under this Agreement shall also apply with respect to any claims raised or made
                    by the Executive or on his behalf against the Group or its Representatives (whether in his capacity as director, officer or shareholder of the Company) prior to the Separation Date or with respect to any period prior to the Separation
                    Date. For the sake of good order, the Executive confirms that he is not entitled to and that he will not be re-nominated to serve as a Board member of the Company or any member of the Group in the upcoming 2022 annual Shareholder
                    Meeting. For the sake of good order, the Executive shall not, directly or indirectly, commence, voluntarily participate in, or voluntarily provide assistance in connection with any action, suit, or proceeding against the Group or the
                    Representatives before any court, administrative agency, or other tribunal, relating to any of the abovementioned claims or demands.

              

      

      

      

      
        3

        
          

      

      
        	 	
                9.2.

              	
                The Company hereby confirms and declares that upon the resignation of the Executive pursuant to Paragraph 2 and
                    complying with the terms of this Agreement, neither the Company nor anyone acting on its behalf, shall have any Claims against the Executive and/or any Representatives of the Executive with respect to the period prior to the Separation
                    Date. For the sake of good order, the waiver of Claims made by the Company under this Agreement shall also apply with respect to any Claims raised or made by the Company or on its behalf against the Executive prior to the Separation
                    Date or with respect to any period prior to the Separation Date.

              

      

      

      

      
        	
                10.

              	
                Notwithstanding anything to the
                      contrary in this Agreement, and without derogating from the generality of the above, and subject to any applicable law, the Executive confirms, agrees and covenants that:

              

      

      

      

      
        	 	
                10.1.

              	
                Until the Specified Date, Executive
                    shall not vote against the Board’s recommendations as submitted to the shareholders of the Company with respect to each election of directors and any removal of directors, in each case as set forth in the Company’s applicable
                    definitive proxy statement, consent solicitation statement, consent revocation statement, position or counter-position paper filed with the Securities and Exchange Commission (the “SEC”) in respect thereof. In addition, with respect to the upcoming annual 2022 Shareholder Meeting, Executive
                    shall not vote against the Board’s recommendations with respect to the proposals to be submitted to the shareholders of the Company, as set forth in the Board’s applicable definitive proxy statement or consent solicitation
                    statement filed with the SEC in respect thereof;

              

      

       

        

      
        	 	
                10.2.

              	
                Until the Specified Date, without the prior written consent of the Board, Executive shall not, directly or indirectly:

              

      

       

        

      
        	 	
                10.2.1.

              	
                nominate or recommend for nomination a person (including the Executive) or agree to be nominated for election at any Shareholder Meeting at which directors of the Board are to be elected or any solicitation of written consents of shareholders of the Company;

              

      

      
        	 	
                10.2.2.

              	
                initiate, encourage or participate in any solicitation of proxies or consents in respect of any election contest
                    or removal contest with respect to the Company’s directors;

              

      

      
        	 	
                10.2.3.

              	
                submit any shareholder proposal for consideration at, or bring any other business before, any Shareholder
                    Meeting;

              

      

      
        	 	
                10.2.4.

              	
                initiate, encourage or participate in any solicitation of proxies or consents in respect of any shareholder
                    proposal for consideration at, or bring any other business before, any Shareholder Meeting;

              

      

      
        	 	
                10.2.5.

              	
                initiate, encourage or participate in any solicitation of written consents of shareholders of the Company;

              

      

      
        	 	
                10.2.6.

              	
                initiate, encourage or participate in any request to call a special meeting of the Company’s shareholders;

              

      

      
        	 	
                10.2.7.

              	
                initiate, encourage or participate in any “withhold” or similar campaign with respect to any Shareholder
                    Meeting;

              

      

      
        	 	
                10.2.8.

              	
                form, join or in any way participate in any group or agreement of any kind with respect to any voting securities
                    of the Company;

              

      

      
        	 	
                10.2.9.

              	
                deposit any Company voting securities in any voting trust or subject any Company voting securities to any
                    arrangement or agreement with respect to the voting thereof;

              

      

      
        	 	
                10.2.10.

              	
                demand an inspection of the Company’s books and records;

              

      

      
        	 	
                10.2.11.

              	
                seek publicly, alone or in concert with others, to amend any provision of the Company’s organizational
                    documents;

              

      

      
         

        

        
          4

          
            

        

        	 	
                10.2.12.

              	
                effect or publicly seek to effect, offer or propose to effect, cause or participate as a buyer in, or in any way
                    assist or facilitate any other person to effect or seek, offer or propose to effect or participate as a buyer in, any acquisition of more than 10.0% of any securities, or any material assets or businesses of the Company or any of its
                    subsidiaries; any tender offer or exchange offer, merger, acquisition, share exchange or other business combination involving more than 10.0% of any of the voting securities or any of the material assets or businesses of the Company or
                    any of its subsidiaries; or any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries or any material portion of its or their businesses. For
                    avoidance of doubt, nothing in this Section 10.2.12 is intended to restrict the Executive from accepting a public tender offer made according to the Israeli Companies Law and addressed to all holders of voting securities of the Company
                    generally on a pro rata basis;

              

      

      
        	 	
                10.2.13.

              	
                enter into any discussions, negotiations, agreements or understandings with any third party with respect to the
                    foregoing, or advise, assist, encourage or seek to persuade any third party to take any action with respect to any of the foregoing in this Section 10, or otherwise take or cause any action inconsistent with any of the foregoing; or

              

      

      
        	 	
                10.2.14.

              	
                take any action challenging the validity or enforceability of this Section 10 or this Agreement, or publicly
                    make or in any way advance publicly any request or proposal that the Company or Board amend, modify or waive any provision of this Agreement.

              

      

       

        

      
        	 	
                10.3.

              	
                Executive covenants and agrees
                    that he shall not, directly or indirectly, alone or in concert with others, encourage, pursue or assist any other person to threaten, initiate or pursue, any lawsuit, claim or proceeding before any court or governmental, administrative
                    or regulatory body (collectively and individually, a “Legal Proceeding”) against or on behalf of the Company or any of its
                    Representatives, except for any Legal Proceeding initiated solely to enforce this Agreement. Nothing herein shall prevent Executive from providing information to any regulatory or administrative body or court or other tribunal, if
                    requested by such regulatory or administrative body, court or other tribunal, provided however that such request, shall not directly or indirectly be
                    initiated by the Executive;

              

      

       

        

      
        	 	
                10.4.

              	
                Specified Terms for this Section 10. “Shareholder Meeting” means each annual or special meeting of shareholders of the Company, or any other meeting of shareholders held in lieu thereof, and any adjournment, postponement, rescheduling or
                    continuations thereof. “Specified Date” means the
                    next day following the date of the 2023 final annual general meeting of shareholders of the Company (including to the extent such 2023 annual general meeting has been adjourned, postponed or, rescheduled). The terms "Affiliate” and “Associate” (and any plurals thereof) have the meanings ascribed to such terms under Rule 12b-2 promulgated by the SEC under the Exchange Act of 1934, as amended (the “Exchange Act”)
                    and shall include all persons or entities that at any time prior to the Specified Date are Affiliates or Associates of such person or entity.

              

      

      

      

      
        	
                11.

              	
                By no later than the Separation Date,
                      the Executive shall return to the Company all documents, information, reports, possessions or other assets (whether electronic or otherwise) belonging to the Company and/or the Group, which are in his possession or under his control,
                      including without limitation, the Company's Credit Card (which for the sake of good order shall be canceled as of such date), laptops and Company's smartphone. It is agreed that the Executive shall be entitled to transfer, on the Separation Date, the Company's cell phone number currently used by the Executive to a new personal account in a telecom provider (as elected by the
                      Executive) to be listed under his personal name and to be paid by the Executive.  Furthermore, by no later than the Separation Date, the Executive shall provide the Company with a list of all passwords, write-protect codes and similar access codes used in the context of his work, except to the extent needed by Executive to carry out his duties under the Consulting Agreement and as
                      approved by the Company prior to the Separation Date, provided that upon termination of the Consulting Agreement, any such passwords or similar access shall be provided to the Company. In addition, it is hereby agreed that the
                      Executive shall be entitled to acquire the Company's laptop, which was provided to him by the Company (the "Laptop"), based on the book value of such Laptop, which such book value will be set off from the amounts detailed in Appendix A attached hereto or from the Executive’s last salary (and the consent to such
                      reduction is hereby given by the Executive), and accordingly, the ownership and title of such Laptop will be transferred to the Executive upon the Separation Date. The Executive agrees to delete all Company information, systems and/or
                      data saved or used on the Laptop and/or to the extent requested by the Company, to provide the Laptop prior to the Separation Date to the Company's IT team or to another service provider elected by the Company in order to allow the
                      Company to delete such Company information, systems and/or data saved or used on the Laptop, in accordance with the input of the Company's IT experts.

              

      

      

      

      
        5

        
          

      

      	12.	
              The Executive acknowledges that up to the Separation Date and subject to any applicable
                  law, all information stored in the Laptop shall be regarded as business information and the Company shall have access thereto, for the purpose of ensuring the continuity of its business activities, and to the extent any Company's
                  information is still stored in the Laptop following the Separation Date, the Executive agrees to delete such information and not to use it for any purpose. The Executive hereby expressly and voluntarily agrees that until and after the
                  Separation Date, the Company or any other relevant member of the Group shall have access to all information (including files) located on computers (except for the Laptop once purchased by the Executive) and in email accounts, which were
                  placed at his disposal by the Company during the course of his engagement with the Company, for the purpose of ensuring the continuity of the Group's business activities until and after the Separation Date. Subject to any applicable law,
                  the Executive hereby waives any claim against the Company and the Group based on violation of privacy rights with regard to all of the above mentioned in this Section 12.

            

      

      

      	13.	
              Each Party undertakes to preserve the reputation of the other Party (including all
                  members of the Group and their Representatives), and to refrain from any act or omission, which is likely to harm such reputation. Without derogating from the generality of the above, each Party further undertakes that they will not,
                  directly or indirectly, make, public or issue, or cause to be made, published or issued, or communication that might reasonably be construed to be, untrue, disparaging or derogatory, written or oral statements whatsoever concerning the
                  other Party (and/or any member of the Group or their Representatives). Notwithstanding any provision hereof to the contrary, the Executive and the Company shall be entitled to make any disclosure required by applicable law, including by
                  the rules of the NASDAQ Global Stock Market, the Securities Act of 1933, as amended (the “Securities Act”), the Exchange Act and FINRA.

            

      

      

      	14.	
              Notwithstanding anything to the contrary herein, the Executive understands and confirms that there may be tax implications as a result of the approval of the Amended
                Options Terms, including disqualification from preferential tax treatment.  The Executive irrevocably agrees to solely bear any tax consequences (if any) associated with the approval of the Amended Options Terms in any territory or under
                any applicable law. The Executive understands that the Company does not assume any responsibility to advise the Executive on these matters, which shall remain solely and exclusively the responsibility of the Executive and his legal and tax
                advisors. The Executive will indemnify the Company and hold the Company harmless against and from any and all liability for any such tax or interest or penalty thereon, including, without limitation, liabilities relating to the necessity to
                withhold, or to have withheld, any such tax from any payment made to the Executive. The Company shall not be liable for the aforementioned taxes, directly or indirectly, nor shall it be required to pay such taxes. The Executive will not be
                entitled to receive from the Company any shares to be issued upon the exercise of Existing Options until the full payment of the applicable exercise price and the applicable Executive's tax liabilities arising from such Existing Options, if
                any, as may be required by the applicable law, at the discretion of the Company. By signing below, the Executive hereby confirms that he will bear any legal and tax consequences, if any, in any territory and under any applicable law,
                associated with the abovementioned, and the Company shall be entitled to withhold at source any taxes as may be required according to any applicable law as a result of the approval of the Amended Options Terms (including without limitation,
                as a result of disqualification from preferential tax treatment).

            

      

      

      	15.	
              Until and after the Separation Date, the Executive undertakes to fully and truthfully cooperate with any requests by the Company and any other member of the Group, in
                connection with any existing, potential or future issues relating to events or matters that arose during or in connection with his engagement with the Company, or of which he may have knowledge.

            

      

      

      
        6

        
          

      

      	16.	
              The Executive and the Company each acknowledge that the undertakings contained in this Agreement are irrevocable and that each shall be relying upon the undertakings
                of the other Party. Each Party further acknowledges that the willingness of the other Party to be bound by the terms of this Agreement is based strictly upon the other Party's agreement to be bound the terms of Agreement.

            

      

      

      
        	 	
                16.1.

              	
                If a breach is committed by the Executive of any of his obligations under Sections 2, 8, 9.1, 10 and 13 of this
                    Agreement or any other material breaches of this Agreement as finally determined by an arbitrator, under the provisions of Section 17, then the Executive shall not be entitled to the Ex-Gratia Benefits, and if already granted to him,
                    then (without duplication) and in addition to any other remedies or causes of action the Company or the Group may otherwise have at law – (i) the amounts representing the value of such Ex-Gratia Benefits as of such date will be repaid
                    by the Executive to the Company no later than 7 days from the Company's first demand, together with linkage and interest according to law (any with respect to any shares issued as a result of the exercise of the Existing Options (with
                    the Amended Options Terms), such amount shall include the amount of any proceeds of the sale or gain realized on the sale of such underling shares), or (ii) the Existing Options (with the Amended Options Terms), and any shares issued
                    upon the exercise of such options shall be subject to the Company's claw-back or recoupment such that the Existing Options (with the Amended Options Terms) held by the Executive shall be cancelled by the Company and/or the Company shall
                    forfeit and cancel such underlying shares which such shares will be transferred to the Company for no consideration; Provided however
                    that prior to submitting any claim for arbitration, the Company shall provide the Executive with a 7 days prior written notice which will describe the alleged breach and will provide the Executive with the opportunity to cure such
                    breach during such 7 day period, to the extent such breach can be cured at no harm to the Company as noted above The rights under this subsection and any dispute regarding the rights under this Section 16.1 shall be subject to the
                    arbitration provision in Section 17.

              

      

      

      

      
        	 	
                16.2.

              	
                With regards to any other breaches of the Executive that are not covered in Section 16.1 above and with regard
                    to any breach of this Agreement by the Company, the injured Party shall be entitled to the remedies prescribed by law. Subject to any law, any claim and any dispute regarding such alleged breach shall be resolved according to the
                    arbitration provision in Section 17, provided however that prior to submitting any claim for arbitration, the Party claiming
                    breach shall provide the other Party with a 7 day prior written notice which will describe the alleged breach and will provide the other Party with the opportunity to cure such breach during such 7 day period, to the extent such breach
                    can be cured at no harm to the aggrieved Party.

              

      

      

      

      	17.	
              This Agreement shall be governed by and construed in accordance with the laws of the
                  State of Israel. Any dispute arising out of or relating to this Agreement that cannot be resolved amicably by the Parties shall be settled in arbitration. The Parties shall mutually appoint one arbitrator (the "Arbitrator"), and if the Parties are unable to agree on the
                  identity of the Arbitrator, within seven (7) days from the request of one of the Parties, each Party may apply to the Head of the Israeli Bar Association to appoint an Arbitrator who is a former Israeli judge. This Section 17 shall be
                  treated as an arbitration contract between the Parties to the Agreement for all intents and purposes and the provisions of the Israeli Arbitration Law of 1968 (the "Arbitration Law") shall be applied to the arbitration proceedings and the Arbitrator, unless the Parties to such
                  arbitration proceedings expressly agree to the contrary in writing. The Arbitrator will be subject to the rules and regulation of Israeli substantive law, however shall not be subject to any evidence rules or regulations and any
                  procedural rules and regulations. The Arbitrator shall make a detailed, reasoned determination in writing within no more than sixty (60) days from his or her appointment. The Arbitrator shall be required to give reasons for his or her
                  ruling and his or her decisions, and he or she shall record the main points said by the parties, their representatives and the Arbitrator himself or herself, in the course of the arbitration. The Arbitrator's fees shall be paid by the
                  Parties to the arbitration proceedings, shared equally between them, unless the Arbitrator rules otherwise, provided that at the end of the arbitration, the Arbitrator shall issue an order regarding the payment of cost and fees from the
                  arbitration to be paid by the losing party to the prevailing party in the arbitration, as shall be determined by the Arbitrator. Unless the Parties expressly agree to the contrary in writing, the arbitration proceedings shall be held in
                  Tel Aviv, Israel. Any of the Parties to the arbitration proceedings shall be entitled to request to appeal any arbitration ruling given by the Arbitrator before a duly authorized court, if that party believes that the Arbitrator has made
                  a basic error in the application of the law that could result in a miscarriage of justice. The appeal process and procedures shall be governed by Section 29B of the Arbitration Law. The arbitrator may, at the request of a party, order
                  provisional or conservatory measures and remedies (including, without limitation, preliminary injunctions and interim remedies) and, to the extent permitted by applicable law, the parties shall be able to enforce the terms and provisions
                  of such orders in any court having jurisdiction. This provision shall not prohibit the Parties from applying to an authorized court requesting provisional or conservatory measures and remedies (including, without limitation, preliminary
                  injunctions and interim remedies).

            

      

      

      
        7

        
          

      

      	18.	
              The Executive's undertakings hereunder are in addition to, and do not derogate from, any obligation to which he may be subject under applicable law or any Group
                policy or agreement (whether towards the Company or any other member of the Group).

            

      

      

      	19.	
              Without prejudice to the provisions of the Employment Agreement that continue beyond the Separation Date, this Agreement represents the complete agreement between the
                parties with respect to the subject matter hereof. This Agreement shall not be altered or modified except by the mutual agreement of the Executive and the Company, evidenced in writing.

            

      

      

      	20.	
              The Parties undertake to maintain all of the terms of Executive’s engagement with the Company and all matters concerning the separation therefrom, as well as the
                content of this Agreement, strictly confidential, except as otherwise required by any applicable law including by the rules of the NASDAQ Global Stock Market, the Securities Act, the Exchange Act and FINRA. For the avoidance of any doubt,
                the Company and the Executive shall be entitled to consult with their legal and tax advisors regarding this Agreement. Notwithstanding the foregoing, the Executive acknowledges that following the execution of this Agreement, as required by
                applicable law including by the rules of the NASDAQ Global Stock Market, the Securities Act, the Exchange Act and FINRA, the Company will be required to make public filings with the SEC (including under Form 8-K) with respect to the entry
                into this Agreement and may be required to publish this Agreement and/or to describe the terms of this Agreement in connection with the upcoming 2022 annual Shareholders Meeting (including for the approval of the Ex-Gratia Benefits) or
                under any other public discourse as may be required thereafter by applicable law or regulation (e.g., Form 10-K).  Except as set forth above, neither party shall, either directly or indirectly, file or make any press release relating to
                subject matter of this Agreement, without the prior written consent of the other, provided however the Parties shall mutually agree on the wording of the press release to be made and filed as an exhibit to a Form 8-K in connection with the
                execution of this Agreement.

            

      

      

      	21.	
              The provisions of Section 6 of this Agreement are subject to and shall only enter into
                  effect upon the receipt of the approval by all corporate organs of the Company as required according to applicable law (including without limitation, the Company's compensation committee, the Board and the shareholders of the Company).
                  For the sake of good order, notwithstanding anything to the contrary in this Agreement, no Ex-Gratia Benefits will be made to the Executive to the extent the shareholders of the Company have voted against the approval of such Ex-Gratia
                  Benefits. If the Ex Gratia benefits are not approved by the shareholders of the Company, then effective as of such vote of the shareholders, Sections 6, 8, 9, 10, 13 and 16.1 of this Agreement shall become immediately null and void (as-if
                  such sections were deleted in their entirely from this Agreement), and any other sections of this Agreement shall remain in full force and effect and binding against the Parties in accordance with their terms irrespectively of such vote.

            

      

      

      
        8

        
          

      

      	22.	
              For the avoidance of any doubt, this Agreement shall be deemed a settlement and an admission of payment for the purposes of section 29 of the Severance Pay Law –
                1963.

            

      

      

      	23.	
              Each Party, acknowledges and agrees that irreparable injury to the other Party may occur in the event any provision of this Agreement were not performed in accordance
                with such provision’s specific terms or were otherwise breached or threatened to be breached and that such injury would not be adequately compensable by the remedies available at law (including the payment of money damages). It is
                accordingly agreed that, each Party, shall each be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other Party hereto shall not take action, directly or indirectly, in
                opposition to the initiating Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity.  This Section 23 shall not be the exclusive remedy for any violation of this Agreement.

            

      

      

      	24.	
              Each of the parties hereto shall perform such further acts and execute such further documents as may reasonably be necessary to carry out and give full effect to the
                provisions of this Agreement and the intentions of the parties as reflected thereby.

            

      

      

      	25.	
              The Executive declares that he is fully aware of his rights according to law and that this Agreement is signed by him of his own free will after having checked all
                accounts with the Company and after having investigated all rights against the Company. The Executive further acknowledges that he has had the opportunity to consult with any counsel of his choice, including legal and tax advisors.

            

      

      

      
        	
                /s/ Phillip Schwartz

              	 	
                6/15/2022

              
	
                Executive's Signature

              	 	
                Date

              

        

        

        	
                          /s/
                      Jerry Lieberman          

              	 	
                6/15/2022

              
	
                Company's Signature

              	 	
                Date

              
	 	 	 
	 	 	 

        

        

      

      
        9

        
          

      

      Appendix A

      

      

      	

            	a.	
              Accrued and unused vacation days as of the Separation Date: NIS 416,533 (for 100.74 days; the final amount shall be based on the final number of lawfully accrued
                vacation days; estimated number may change based on vacation use until the Separation Date); and

            

      

      

      		b.	
              Recuperation pays as of the Separation Date: NIS 171.56 (for 0.45 days);

            

      

      

      	

            	c.	
              Severance pay shortfall – shortfall severance pay amount for the employment period between June 1, 2010 and December 31, 2013 calculated as follows: (a) statutory
                severance pay amount, which is NIS 321,067 calculated as follows NIS 89,600*3.5833 (monthly salary*number years), minus (b) the amounts accrued in the severance component of the Executive's pension arrangement for such period, as detailed
                in the letter issued by the pension insurer.

            

      

      

      	

            	d.	
              Separation payment in the total gross amount of NIS 537,600.

            

      

      

      	

            	e.	
              Reimbursement for pre-approved business expenses until the Separation Date, in accordance with the Company's policies, provided that all relevant receipts, invoices
                and documentation for such expenses are submitted at least three (3) days prior to the Separation Date (for the sake of clarity, the Executive shall not be entitled to submit any other expenses or invoices following such date and no
                reimbursement of expenses whatsoever shall be made by the Company following such date).

            

      

      

      * Final number of vacation days will be adjusted in accordance with actual use until the Separation Date.

      

      

      *****************

      

      

      
        
          

      

      
      CONSULTING AGREEMENT

      

      

      This Consulting Agreement (the "Agreement")

        is entered into on June 15, 2022 by and between Entera Bio Ltd., company number 444958743 of Hi-Tech Park 2/5 Givat-Ram, PO Box 39098, Jerusalem, Israel (the “Company”), and Phillip Schwartz, ID number 343880345 of David Alro'i 5(aleph) 35, Jerusalem, Israel (the “Consultant”).  The Company and the Consultant are each a “Party” and
        together are the "Parties".

      

      

      WHEREAS:

      

      

      	(A)	
              The Company wishes the Consultant to provide it with business development services with respect to specific scientific matters or agreed assignments, only if, and as
                requested and needed by the Company, from time to time, and as shall be agreed by the Parties in writing (including with respect to the applicable Fees for each such matter) in advance (the "Services") and the Consultant agrees to provide the Services, as an independent contractor as of July 22, 2022 (the “Commencement Date”);

            

      

      

      	(B)	
              The Consultant warrants that he has the ability, experience, expertise and resources to provide the Services and to perform all of his obligations hereunder and that
                he wishes to provide the Services to the Company from the Commencement Date;

            

      

      

      NOW THEREFORE, in consideration
        of the mutual promises, covenants and understandings contained herein, the parties agree as follows:

      

      

      	1.	
              Recitals, Headings and Interpretation

            

      

      

      	1.1	
              The recitals and appendices form part of this Agreement. Headings are for reference purposes only and shall not in any way affect interpretation of this Agreement.

            

      

      

      	2.	
              Representations, Duties and Undertakings of Consultant

            

      

      

      	2.1	
              The Consultant warrants that he has all the approvals, permits and licenses that are or may be required under any law for the provision of the Services, to the extent
                that such are required, and that he will have all such approvals, permits and licenses at all times during the term of this Agreement.

            

      

      

      	2.2	
              The Consultant warrants and undertakes that there is no legal, commercial, contractual or any other restriction, which precludes or might preclude him from signing
                this Agreement or fully performing his obligations pursuant to this Agreement.

            

      

      

      	2.3	
              The Consultant undertakes that if there should, at any time during the entire term of the provision of the Services under this Agreement, occur anything to prevent
                him from providing the Services at the required level and quality, the Consultant shall notify the Company immediately and, the Company shall be entitled to terminate the Agreement by immediate notice, without advance warning and without
                the requirement to make any payment by the Company to the Consultant in respect of the termination, except for payment for services actually performed upon the date of receipt of the Company’s notice of termination.

            

      

      

      
        A - 2

        
          

      

      	2.4	
              Without derogating from the generality of the above, no work performed hereunder shall infringe any copyright, patent, trademark, trade secret or other proprietary
                right of any third party and, in providing the Services, the Consultant shall comply with all applicable laws.

            

      

      

      	2.5	
              The Consultant undertakes to provide the Services to the Company in accordance with the provisions of this Agreement and with the Company's policy guidelines, and
                other relevant instructions to be provided to the Consultant from time to time by the Company, and Consultant shall comply at all times during the term with such instructions, Company's polices and the applicable law.

            

      

      

      	2.6	
              The Consultant undertakes to provide the Services with the highest level of professional skill and care, dedication, loyalty and in good faith. Furthermore, the
                Consultant shall use best endeavors to protect the good name of the Company and shall not perform any act that may bring the Company into disrepute.

            

      

      

      	2.7	
              The Consultant shall not, offer, promise, give, authorize, solicit or accept, directly or indirectly, any unlawful pecuniary or other advantage of any kind including
                any perquisite, commission, rebate, discount or gratuity in cash or in kind, from any third party which has or is likely to have a business relationship with the Company, and will in no way contravene any applicable law related to anti
                bribery and corruption. In the event that any of the activity described above, in this Section 2.7, in relation to the Company is brought to the Consultant attention, the Consultant hereby commits to immediately notifying the Company's CEO.

            

      

      

      	2.8	
              Where the Consultant discovers, or ought reasonably to have discovered, that he has or might have at some point in the future, any personal interest in the Company
                business (except in his capacity as a shareholder of the Company), or a conflict of interest arising out of or in connection with the Services then, immediately upon discovery, the Consultant shall notify the same to the Company in writing.
                Without derogating from any other rights under this Agreement or under law, the Company may require the Consultant to cease having any such personal interest or conflict of interest, as the case may be or to immediately terminate this
                Agreement, without any advance notice. The Consultant shall not be entitled to any damages or payment other than Fees for Services provided to the Company prior to termination.

            

      

      

      	2.9	
              The Consultant agrees that subject to any applicable law, the Company and any related entity may monitor the Consultant's use of their systems and monitor, copy,
                transfer and disclose all electronic communications and content transmitted by or stored in such systems, regardless of the location, time or purpose of such use, in pursuit of the Company's legitimate business interests, in accordance with
                the Company's policy as in effect from time to time. For the purposes of this Section, systems include: telephone, computers, computer system, internet server, electronic database and software, whether under the Consultant's direct control
                or otherwise.

            

      

      

      	2.10	
              The Consultant agrees of his own free will, that all the information in this Agreement and any information concerning the Consultant gathered by the Company,
                including before the execution of this Agreement, will be held and managed by the Company or on its behalf, inter alia, on databases according to law, and that subject to any applicable law the Company shall be entitled to transfer such
                information to third parties, in Israel or abroad (including to countries which have a different level of data protection than that existing in Israel). The Company hereby undertakes that the information will be used and/or transferred for
                legitimate business purposes only.

            

      

      

      
        A - 3

        
          

      

      	2.11	
              During the term of this Agreement, the Consultant shall not be engaged (in any capacity whatsoever) in any occupation which may conflict with or breach any of his
                duties, undertakings or covenants towards the Company and for the avoidance of doubt, shall not be engaged with any third party whose business interests compete with those of the Company, and its affiliates, being persons or entities which
                control, are controlled by or are under common control with the Company now or in the future (individually and collectively referred to as the - "Group").

            

      

      

      	3.	
              The Services

            

      

      

      	3.1	
              The Consultant shall provide the Company with the Services, at a scope as requested and needed by the Company, if any, from time to time (the "Scope"). Notwithstanding anything to the contrary in this Agreement, the Consultant shall provide the Company with such Services as shall be agreed by the
                Parties, in advance and in writing (subject to a specific statement of work to be signed by the Parties), in each case prior to provision of any such specific Services, and subject to the agreement by the Parties with respect to the Fees
                for each such assignment.

            

      

      

      	3.2	
              In providing the Services, the Consultant shall act in accordance with the directions of the Company's CEO, or such other person as directed by the Company, at the
                Company's sole discretion.

            

      

      

      	3.3	
              The Consultant shall provide the Services personally, and shall not have any other person or entity perform any of the Services, except with the Company's prior
                written consent.

            

      

      

      	3.4	
              The Consultant is aware of the need for travel outside of Israel, and hereby agrees to perform such travel (all expenses of such travel will be paid by the Company in
                accordance with the Company's travel and expense policy) as may be reasonably necessary to perform the Services to the level required under this Agreement.

            

      

      

      	3.5	
              The Consultant shall provide the Company with reports, in the manner and form, as may be requested from time to time by the Company.

            

      

      

      	3.6	
              The Consultant shall be responsible, at his own expense, for obtaining all of the equipment, which shall be necessary in order to enable him to provide the Services
                according to this Agreement.

            

      

      

      	3.7	
              The Consultant shall have no authority to bind the Group, to sign or commit to any agreement or obligation on behalf of the Group (for the sake of good order, the
                Consultant shall have no signatures rights in the Group, whether in general or with respect to their bank accounts). At all times, the Consultant shall not make any representation or public disclosure with respect to the Company or its
                business and affairs without a prior written confirmation from the Company.

            

      

      

      
        A - 4

        
          

      

      

      

      	4.	
              Remuneration

            

      

      

      	4.1	
              Subject to the fulfillment of all of the Consultant's obligations hereunder, the Company shall pay the Consultant a gross fee for the Services to be provided by the
                Consultant, if any in such amount (fixed, hourly rate or other form) as shall be agreed by the Parties, from time to time in advance and in writing, as shall be reflected in one or more statements of work agreed by the Parties (the "Fee") plus VAT.

            

      

      

      	4.2	
              The Consultant shall provide a proper tax invoice on a monthly basis, by no later than the last day of each calendar month in which the Services were rendered, with
                regard to any payment to be paid by the Consultant.  Payment will be made on a monthly basis, within 30 days from the end of the month in which the Consultant delivered such invoice to the Company.

            

      

      

      	4.4	
              The Consultant shall not be entitled to any further compensation in connection with the Services other than the Fee, except as otherwise stated in this Agreement.

            

      

      

      	4.5	
              The Consultant shall be responsible for, and shall indemnify and hold the Company harmless from, all payments and taxes required to be made to the National Insurance
                Institute, any taxation body or other third party in consequence of the provision of the Services hereunder or the remuneration provided in connection therewith.

            

      

      

      	4.6	
              Notwithstanding the above, the Company shall withhold all taxes and compulsory payments on any payment and/or benefit to the Consultant to the extent that such taxes
                and compulsory payments are required by any applicable law to be withheld at source.

            

      

      

      	5.	
              Status of Parties

            

      

      

      	5.1	
              The relationship between the Consultant and the Company hereunder is one of independent contractor and no employment relationship exists between the Company and the
                Consultant. The Consultant warrants that he maintains financial books in accordance with applicable law and that he is duly registered with the income tax authorities, value added tax authorities and National Insurance Institution as an
                independent contractor.

            

      

      

      	5.2	
              The Consultant is fully aware to all rights, benefits and entitlements (whether monetary or not) which he will not receive in light of his requirement to be engaged
                as an independent contractor. The Consultant declares that he has been given the opportunity to consult with any person or advisor of his choice on the matter, and has knowingly elected, at his choice and of his own free will to enter into
                this engagement as an independent contractor, rather than remain an employee of the Company.

            

      

      

      	5.3	
              If, notwithstanding the Consultant’s specific requirement and his undertakings and representations in this Agreement, the Consultant or any other person shall claim,
                and/or a judicial authority shall determine, that the Consultant provided the Services under this Agreement as an employee of the Company, then the following provisions shall apply:

            

      

      

      	

            	5.3.1	
              For the period as to which it is claimed or determined that an employment relationship existed between the Company and the Consultant (the “Relevant Period”), the Consultant shall not be entitled to the Fee, but only 60% thereof (the “Reduced Fee”).

            

      

      

      
        A - 5

        
          

      

      	

            	5.3.2	
              The Reduced Fee shall constitute the full Fee payable to the Consultant as salary in connection with said employment relationship, on which basis any social benefits
                will be calculated - to the extent that such social benefits are required to be paid to or in respect of the Consultant pursuant to any third party authority's decision reclassifying the Consultant as an employee.

            

      

      

      	

            	5.3.3	
              In view thereof, an accounting shall be conducted between the parties, and the Consultant shall immediately return and pay to the Company all amounts paid to him in
                excess of the Reduced Fee for the Relevant Period, along with linkage differentials and interest from the date of payment of each amount by the Company to the Consultant and up to the date upon which actual return and payment of the funds
                is made by the Consultant, all based on the Consumer Price Indices known at the relevant dates and as provided by the Adjudication of Interest and Linkage Law, 1961.

            

      

      

      	5.4	
              In addition, in the event that the relationship between the Company and the Consultant shall be claimed, regarded or determined by any third party, including any
                governmental and/or judicial and/or tax authority to be an employment relationship, the Consultant shall reimburse and indemnify the Company for any expense and/or payment incurred by or demanded of the Company as a consequence (including
                any legal expenses and VAT), immediately upon the Company's demand, and in any event no later than 7 days from the Company's first demand.

            

      

      

      	5.5	
              The Company shall be entitled to offset any amounts due to it under this Section 5 from any amounts payable or due to the Consultant under this Agreement or otherwise
                (including according to a judicial decision).

            

      

      

      	6.	
              Confidentiality, Non-Competition, Non-Solicitation and Assignment of Inventions Undertaking

            

      

      

      	

            	
              Upon the signing of this Agreement, the Consultant undertakes to sign a Confidentiality, Non-Competition, Non-Solicitation, and
                Assignment of Inventions Undertaking in the form attached hereto as Appendix A, which constitutes an integral part hereof. The
                Consultant's  compensation has been calculated to include special consideration for his commitments under Appendix A and he will not be entitled to any further consideration for such commitments, expressly including no entitlement to
                royalties for any Service Inventions as defined in Section 132 of the Patent Law, 1967 (the "Patent Law”). This clause constitutes an express waiver of my rights under Section 134 of the Patent Law. Notwithstanding anything to the contrary in this Agreement, the Advisor
                irrevocably confirms and agrees that the execution of Appendix A under this Agreement shall be in addition (and not in lieu) of any
                other confidentiality, non-competition, non-solicitation, and assignment of inventions undertaking signed by the Advisor in his capacity as an employee of the Company.

            

      

      

      
        A - 6

        
          

      

      	7.	
              Term and Termination

            

      

      

      	7.1	
              This Agreement shall be effective from Commencement Date until terminated by either party at will for any reason by providing 14 days' prior written notice to the
                other party (the "Notice Period"). 

                During the Notice Period, the Consultant must continue to discharge and perform his duties and obligations under this Agreement, unless otherwise directed by the Company.

            

       

      	7.2	
              Notwithstanding Section 7.1 above, the Company may terminate this Agreement forthwith and without prior notice or any payment in lieu thereof or any other
                compensation if any of the following occurs (i) if the Consultant engages or engaged in any act of dishonesty or fraud, whether or not it involves the Company; (ii) if the Consultant commits a fundamental breach of the Agreement, including
                but not limited to any breach of the Consultant's representations or obligations under Sections 2, 3, 5, 6 and Appendix A of this Agreement, or (iii) in the event of any act or omission of the Consultant that would have entitled the Company
                legally to dismiss the Consultant without prior notice period and/or severance pay, in whole or in part, had the Consultant been engaged as an employee of the Company.

            

      

      

      	7.3	
              Upon termination of this Agreement for whatever reason or at such other time as directed by the Company, the Consultant shall immediately return to the Company all
                the documents, information and other equipment or material in his possession or control which belong to, or have been entrusted to, the Company, or otherwise related to the provision of the Services. The Consultant shall neither have, nor
                retain, any proprietary interest in such assets. Furthermore, upon termination of this Agreement, or at such other time as directed by the Company, the Consultant shall provide the Company with a list of all passwords, write-protect codes
                and similar access codes used in the context of his work.

            

      

      

      	8.	
              General

            

      

      

      	8.1	
              The Consultant acknowledges that this Agreement does not grant the Consultant exclusivity in the provision of the Services to the Company and that the Company may
                during the term of this Agreement and thereafter engage with any other third party to obtain any services, including services of the same type as those Services provided by the Consultant under this Agreement.

            

      

      

      	8.2	
              The Consultant shall not assign any of his rights and obligations hereunder, and any attempt to do so shall be null and void. The Company shall be entitled to assign
                its rights and/or obligations under this Agreement, in whole or in part, to any third party without the need to obtain the consent of the Consultant, provided only that the Consultant's rights are not materially prejudiced by such
                assignment.

            

      

      

      	8.3	
              No behaviour by either party hereto shall be deemed to constitute a waiver of any rights according to this Agreement, and/or a waiver of or consent to any breach or
                default in respect of any of the terms hereof, or a change, invalidation or addition to any term, unless expressly made in writing.

            

      

      

      	8.4	
              This Agreement, contains the entire agreement and understanding between the parties with respect to the subject matter contained herein, and supersedes all prior
                discussions, agreements, representations and understandings in this regard. This Agreement shall not be modified except by an instrument in writing signed by the Company.

            

      

      

      
        A - 7

        
          

      

      	8.5	
              Provisions intended to survive the termination of this Agreement, including but not limited to Section 4.5, 4.6, 5, 6, 8 and Appendix A, shall so survive.

            

      

      

      	8.6	
              Without derogating from any relief to which the Company is entitled to pursuant to any law and/or agreement, the Company may set off any amount which the Consultant
                owes it pursuant to this Agreement and/or any other source from any sum that the Consultant is entitled to receive from the Company, from whatever source.

            

      

      

      	

            	8.7	
              This Agreement shall be governed by and construed according to Israeli law, without regard to its choice of law principles. The competent courts of Tel-Aviv, Israel
                shall have exclusive jurisdiction to hear any dispute relating to this Agreement or arising thereunder and no other courts will have jurisdiction whatsoever in respect of such disputes.

            

      

      

      	8.8	
              If any provision of this Agreement is held to be unenforceable for any reason, it shall be modified rather than voided, if possible, in order to achieve the intent of
                the parties to this Agreement to the extent possible. In any event, all other provisions of this Agreement shall be deemed valid and enforceable to the full extent.

            

      

      

      In witness whereof, the parties have executed this Agreement as of the above-captioned date.

      

      

      
        	
                Phillip Schwartz

              	 	
                Entera Bio Ltd.

              
	 	 	 
	
                By:  /s/ Phillip Schwartz

                           

              	 	
                By:  /s/
                      Jerry Lieberman 

                

                Title:  Chairman of the
                  Board

              

      

      

      

      
        A - 8

        
          

      

      Appendix B

      

      

      Confidentiality, Non-Competition, Non-Solicitation, and Assignment of Inventions
          Undertaking

      

      

      I, Phillip Schwartz, a consultant engaged by Entera Bio Ltd. (“Company”) pursuant to a consultancy agreement to which this Confidentiality, Non-Competition, Non-Solicitation, and Assignment of Inventions Undertaking (“Undertaking”) is attached as Appendix B (“Agreement”).

      

      

      I acknowledge that prior to the Commencement Date, in my capacity as an employees of the Company ("Previous Period") and in the course of my engagement with the Company hereunder, I became and will continue to become familiar with a range of Confidential Information (as
        defined below) and that my services are of particular and special value to the Company. In consequence, I undertake the following towards the Company and its affiliates, being persons or entities, which control, are controlled by or are under
        common control with the Company now or in the future (individually and collectively referred to as the “Group”).

      

      

      	1.	
              Confidential Information and Confidentiality

            

      

      

      	

            	1.1	
              I am aware that I had and may continue to have access to or be entrusted with information (regardless of the manner in which it is recorded or stored) relating to the
                business interests, methodology or affairs of the Group, or any person or entity with whom or which the Group deals or is otherwise connected and which, for the avoidance of doubt, includes the terms of the Agreement, other than the terms
                of this Undertaking (“Confidential Information”). By way of illustration, Confidential Information includes but is not limited to
                technical information, whether ideas or reduced to practice, techniques, products, technologies (actual or planned) and their components, Inventions, research and development activities, drawings, pricing methods, financial data, business
                and marketing strategies and plans, customer and supplier information and information pertaining to employees or officers of, or investors in, the Group.

            

      

      

      	

            	1.2	
              During the Previous Period, the term of the Agreement, and at all times thereafter, I kept and shall continue to keep confidential, and shall not except in the proper
                performance of the Services use, disclose and/or make available, directly or indirectly, to any third party any Confidential Information without the prior written consent of the Company. The foregoing does not apply to information that I
                can provide evidence that is already in the public domain through no fault of my own, or to disclosures which are required by law or a valid court order, in which case I will notify the Company in writing immediately on becoming aware of
                such requirement or its likely occurrence, and the disclosure shall be limited to the extent expressly required. In addition, the above does not apply with respect to any information which reflects general skills of persons with similar
                skills and qualifications to my skills and qualifications.

            

      

      

      	

            	1.3	
              Without derogating from the generality of the foregoing, I confirm that:

            

      

      

      
        
          

      

      
      	

            	1.3.1	
              Except in the proper performance of the Services, I shall not copy, transmit, communicate, publish or make any commercial or other use whatsoever of any Confidential
                Information, without the prior written consent of the Company.

            

      

      

      	

            	1.3.2	
              I shall exercise the highest degree of care in safeguarding the Confidential Information against loss, theft or other inadvertent disclosure and in maintaining its
                confidentiality.

            

      

      

      	

            	1.3.3	
              Upon termination of my engagement, or at the earlier request of the Company I shall deliver to the Company all Confidential Information and any and all copies thereof
                that have been furnished to me, prepared by me or came to my possession howsoever, and I shall not retain copies thereof in whatever form.

            

      

      

      	2.	
              Non-Competition and Non-Solicitation

            

      

      

      	

            	2.1	
              I hereby reconfirm my undertakings under Section 16.2 of the previous Employment Agreement with the Company dated June 8, 2014 (the “Employment Agreement”), which may continue to apply to me despite the termination of my employment with the Company. I agree that the restriction period under such
                section may be until the completion of 12 months following the termination any consulting by me (if any) to the company (and not the termination of the Employment Agreement).

            

      

      

      	

            	2.2	
              I acknowledge that my obligations under this Section 2 are reasonable in light of the Services, the nature of the Group’s business, and the fact that the Fee to which
                I am entitled under the Consulting Agreement has been calculated to include special consideration for my undertakings in this Section 2.

            

      

      

      	3.	
              Inventions

            

      

      

      	

            	3.1	
              I shall promptly disclose to the Company all inventions, original works of authorship, developments, know-how, trade secrets, designs, Service Inventions (as defined
                in Section 132 of the Patent Law), improvements, discoveries and any other intellectual property rights which I have, or may solely or jointly conceive, develop or reduce to practice or cause to be conceived, developed or reduced to
                practice during the course of my engagement with the Company or prior to such engagement (whether or not documented by a formal agreement), including during the Previous Period, which are related to the Company’s Business, or which use
                Confidential Information or other Group property (“Inventions”).

            

      

      

      	

            	3.2	
              I further confirm that all Inventions, and any and all rights, interests and title therein, shall be the exclusive property of the Company and I shall not be entitled
                to, and I hereby waive now and in the future, any claim to any right, moral rights, compensation or reward, including any right to royalties in Service Inventions in accordance with the Patent Law, that I may have in connection therewith.

            

      

      

      	

            	3.3	
              Without derogating from the Group’s rights under this Undertaking or any law, I agree to assign and hereby automatically assign and shall in the future take all the
                requisite steps (including by way of illustration only, signing all appropriate documents) to assign to the Company and/or its designee any and all rights, titles and interests in respect of any Inventions, to the extent that I may have
                such rights, on a worldwide basis, and I acknowledge now and in the future the Company's full and exclusive ownership in all such Inventions. I hereby irrevocably appoint and empower the Company to exercise any right or perform any act on
                behalf of me at any time relating to such Inventions, including without limitation, to register the Company as the lawful owner of any Inventions. I shall, at any time hereafter, execute all documents and take all steps necessary to
                effectuate the assignment to the Company and/or its designee or to assist them to obtain the exclusive and absolute right, title and interest in and to all Inventions, including by the registration of patents or trademarks, protection of
                trade secrets, copyright, or  any other applicable legal protection, and to protect the same against infringement by any third party, including by assisting in any legal action requested by the Group with respect to the foregoing.

            

      

      

      
        B - 2

        
          

      

      	4.	
              No Conflicting Obligations

            

      

      

      I have not and will not, at any time during the term of the Agreement, use or disclose
        Confidential Information in such manner that may breach any confidentiality or other obligation I owe to any former employer or other third party, without their prior written consent. I warrant that I have the full right to assign the Inventions
        and the associated rights, titles and interests therein and that I have not made, and will not make, any agreement in conflict with this paragraph or Section 3 above.

      

      

      	5.	
              Notice to Offerors

            

      

      

      I agree that if, during my engagement with the Company or the period of the restrictions
        set out in Section 2, I receive an offer of employment or engagement relating to the Company's Business, I will provide a copy of this Undertaking to the offeror prior to accepting the offer.

      

      

      	6.	
              General

            

      

      

      	

            	6.1	
              I acknowledge that any breach by me of my obligations pursuant to this Undertaking may cause substantial damage for which the Group shall hold me liable.

            

      

      

      	

            	6.2	
              The terms of this Undertaking shall be interpreted in such a way as to give them maximum enforceability at law. The unenforceability of any term (or part thereof)
                shall not affect the enforceability of any other part of this Undertaking.

            

      

      

      	

            	6.3	
              My undertakings hereunder are in addition to, and do not derogate from, any obligation to which I may be subject under applicable law or any Group policy or
                agreement.

            

      

      

      	

            	6.4	
              My undertakings hereunder will be applicable to me during the term of my engagement with the Company and thereafter. Notwithstanding the aforesaid, the effect of my
                undertakings under Section 2 above shall be for the period specified in such Section.

            

      

      

      	

            	6.5	
              This Undertaking shall be governed by and construed in accordance with the laws of Israel.

            

      

      

      
        	
                /s/ Phillip Schwartz

              	 	
                6/15/2022

              
	
                Phillip Schwartz

              	 	
                Date

              

      

      

      

    

  

  B - 3Document

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into by and among Express, Inc., Express, LLC (together with Express, Inc., the “Company”), and Timothy Baxter (the “Executive”) (collectively referred to as the “Parties”).

WHEREAS, the Company and Executive entered into that certain Employment Agreement effective as of June 17, 2019 (the “Original Employment Agreement”), with a term of three (3) years which will expire by its terms on June 17, 2022;

WHEREAS, the Company and Executive desire to continue Executive’s employment with the Company; and

WHEREAS, in light of the nearing expiration of the Original Employment Agreement, the Parties desire to enter to a new agreement on the terms and conditions as set forth herein, which shall become effective on June 18, 2022;

WHEREAS, the Parties agree that the terms and conditions herein are in their mutual best interests, and the Company and Executive each agree that both Parties under this Agreement will receive new and valuable consideration beyond that which each of them is entitled under the Original Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing and the respective agreements of the parties contained herein, the Parties hereby agree as follows:

1.Term. The initial term (the “Initial Term”) of employment under this Agreement shall be for the period commencing on June 18, 2022 (the “Effective Date”) and ending on the third (3rd) anniversary of the Effective Date. On the third (3rd) anniversary of the Effective Date and on each subsequent anniversary thereafter, the term of Executive’s employment under this Agreement shall automatically renew and extend for a period of twelve (12) months (each such twelve (12)-month period being a “Renewal Term”) unless written notice of non-renewal is delivered by either party to the other not less than sixty (60) days prior to the expiration of the then-existing Initial Term or Renewal Term, as applicable. Notwithstanding any other provision of this Agreement, Executive’s employment pursuant to this Agreement may be terminated at any time in accordance with Section 8. For the purposes herein, the Initial Term and the Renewal Term may also be referred to collectively as the “Term.”

2.Employment.

a.Position.

i.The Executive shall be employed as Chief Executive Officer of the Company and have such responsibilities, powers, duties and authority customary for the chief executive officer of corporations of the size, type and nature of the Company as may be determined by the Board of Directors of Express, Inc. (the “Board”). The Executive shall perform the duties, undertake the responsibilities, and exercise the authority customarily performed, undertaken, and exercised by persons employed in a similar executive capacity. The Executive shall report to the Board.

ii.The Executive serves on the Board as of the Effective Date, and the Board shall nominate the Executive to serve on the Board at each annual stockholders meeting during the Term at which the class on which the Executive serves is nominated for election, unless the Board, in the good faith exercise of its fiduciary duties, determines that it is advisable not to do so.

b.Obligations. The Executive agrees to devote the Executive’s full business time and attention to the business and affairs of the Company and its subsidiaries. The foregoing, subject to the Company’s Corporate Governance Guidelines and approval by the Compensation and Governance Committee (as defined below), shall not preclude the Executive from serving on corporate, civic, or charitable boards or committees or managing personal investments, so long as such activities are approved 
1

by the Compensation and Governance Committee (which approval shall not unreasonably withheld) and do not materially interfere with the performance of the Executive’s responsibilities hereunder.

3.Base Salary. The Executive’s annual base salary shall be $1,350,000, less applicable withholding (the “Base Salary”). The Base Salary shall be subject to annual review and may be increased from time to time in the discretion of the independent members of the Board or any committee thereof responsible for executive compensation matters (the “Compensation and Governance Committee”), based on factors such as the Executive’s responsibilities, compensation of similar executives in other companies, the Executive’s performance, and other pertinent factors. Such Base Salary shall be payable in accordance with the Company’s customary practices applicable to senior executives of the Company.

4.Short-Term Incentive Compensation. The Executive shall be eligible to participate in the Company’s applicable short-term incentive compensation plan at an annual target level of One Hundred and Fifty Percent (150%) of the Base Salary (the “Annual Incentive Target”) on the same basis and terms as are applicable to senior executives of the Company generally as determined from time to time by the independent members of the Board or the Compensation and Governance Committee, pro-rated for service during any partial performance period. The target level may be increased from time to time in the discretion of the independent members of the Board or the Compensation and Governance Committee, based on factors such as the Executive’s responsibilities, compensation of similar executives in other companies, the Executive’s performance, and other pertinent factors. The actual amount of any bonus shall be based upon the attainment of performance goals and objectives determined reasonably and in good faith by the Board, the independent members of the Board or the Compensation and Governance Committee after meaningful consultation with the Executive. Unless otherwise deferred in a manner that satisfies Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), all short-term incentive bonuses payable pursuant to the plan described in this Section 4, including any bonuses payable pursuant to Section 9 below, shall be paid to the Executive, to the extent earned, in no event later than the last day of the “applicable 2 1⁄2 month period”, as such term is defined in Treasury Regulation Section 1.409A-1(b)(4)(i)(A) with respect to such payment’s treatment as a “short-term deferral” for purposes of Code Section 409A.

5.Long-Term Incentive Compensation. The Executive will be eligible for long-term incentive awards (“LTI Awards”) commensurate with the Executive’s position and performance; it being agreed that any such awards shall be awarded, if at all, in the discretion of the independent members of the Board or the Compensation and Governance Committee. Commencing for fiscal 2022, the Executive’s annual long-term incentive target award amount will be $4,200,000, calculated pursuant to the Company’s standard GAAP valuation methodology. LTI Awards will be subject to the terms and conditions of the Express, Inc. 2018 Incentive Compensation Plan (such plan or any successor plan, each as amended from time to time, the “2018 Plan”) and governed by applicable award agreements, which shall be approved by the Board or the Compensation and Governance Committee, as provided in the 2018 Plan. Any such LTI Awards shall be paid in a manner that is intended to be exempt from or in compliance with Code Section 409A.

6.Employee Benefits. The Executive shall be entitled to participate in all employee benefit plans, and programs maintained by the Company and made available to senior executives generally and as may be in effect from time to time (and subject to the Executive meeting applicable eligibility requirements and the Company’s right to modify, amend and/or terminate such plans). The Executive’s participation in such plans shall be on the same basis and terms as are applicable to senior executives of the Company generally.

7.Other Benefits.

a.Expenses. Subject to applicable Company policies, the Executive shall be entitled to receive prompt reimbursement of all expenses reasonably incurred in connection with the performance of the Executive’s duties hereunder or for promoting, pursuing, or otherwise furthering the business or interests of the Company.

b.Office and Facilities. The Executive shall be provided with appropriate offices and with such secretarial and other support facilities as are commensurate with the Executive’s status with the Company and adequate for the performance of the Executive’s duties hereunder.

2

c.Business Travel. For domestic business-related travel, the Executive shall be entitled to use chartered private aircraft, at his discretion reasonably applied, in accordance with applicable Company policy, as it may be modified from time to time.

d.Paid Time Off (PTO) Program. The Executive shall be entitled to paid time off in accordance with the policies as periodically established by the Company for senior executives of the Company.

8.Termination. The Executive’s employment hereunder is subject to the following terms and conditions:

a.Disability. The Company shall be entitled to terminate the Executive’s employment after having established the Executive’s Disability. For purposes of this Agreement, “Disability” means a physical or mental infirmity which impairs the Executive’s ability to substantially perform the Executive’s duties under this Agreement for a period of at least six (6) months in any twelve (12)-month calendar period as determined in accordance with the Company’s Long-Term Disability Plan or, in the absence of such plan, as determined by the Board.

b.Cause. The Company shall be entitled to terminate the Executive’s employment for “Cause” without prior written notice (unless notice is required under this subsection (b)). For purposes of this Agreement, “Cause” shall mean that the Executive (1) willfully failed to perform the Executive’s material duties with the Company (other than a failure resulting from the Executive’s incapacity due to physical or mental illness) that the Executive failed to remedy to the reasonable satisfaction of the Company within thirty (30) days after written notice is delivered by the Company to the Executive that sets forth the basis of the Executive’s failure; (2) has pleaded “guilty” or “no contest” to or has been convicted of an act defined as a felony under federal or state law; (3) engaged in misconduct in bad faith that could reasonably be expected to materially harm the Company’s business or its reputation; or (4) violated any of the Company’s material policies (including, but not limited to, the Company’s policies pertaining to non-discrimination, anti-harassment, retaliation, and insider trading). The Executive shall be given written notice by the Company of a termination for Cause, which shall state in reasonable detail the act or acts or failures to act that constitute the grounds on which the termination for Cause is based.

c.Termination by the Executive. The Executive may terminate employment hereunder without Good Reason (as defined below) by delivering to the Company, not less than thirty (30) days prior to the Termination Date, a written notice of termination. The Executive may terminate employment hereunder for Good Reason by delivering to the Company not less than thirty (30) days prior to the Termination Date, a written notice of termination setting forth in reasonable detail the facts and circumstances that constitute Good Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events, without the express written consent of the Executive, unless such events are fully corrected in all material respects by the Company within thirty (30) days following written notification by the Executive to the Company of the occurrence of one of the following reasons: (i) the assignment to the Executive of any duties materially inconsistent with the Executive’s positions, material duties, authority, responsibilities or reporting requirements as set forth in Section 2(a) hereof; (ii) a material reduction in or a material delay in payment of the Executive’s total cash compensation and benefits from those to be provided in accordance with the provisions of this Agreement; (iii) the Company, the Board or any person or group controlling the Company requires the Executive to be based at a location more than sixty (60) miles from the Executive’s principal residence as of the Effective Date, other than on travel reasonably required to carry out the Executive’s obligations under the Agreement; (iv) the failure of the Company to obtain the assumption in writing of its obligation to perform this Agreement by any successor to all or substantially all of the business of the Company within fifteen (15) days after a Change in Control (as defined below); or (v) the Company’s material breach of any provision of this Agreement. The Executive shall provide the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within ninety (90) days after the occurrence of such circumstances, and actually terminate employment within thirty (30) days following the expiration of the Company’s thirty- (30-) day cure period described above. Otherwise, any claim of such circumstances as “Good Reason” shall be deemed irrevocably waived by the Executive.

d.Termination Date. “Termination Date” shall mean, in the case of the Executive’s death, the date of death, or in all other cases of termination by the Company, the date specified in writing by the 
3

Company as the Termination Date; provided, however, that if the Executive’s employment is terminated by the Company either for (i) reasons other than Cause or (ii) Disability, the date specified as the Termination Date shall be at least thirty (30) days from the date that written notice of the termination date is given to the Executive.

e.Expiration. Executive’s employment with the Company shall terminate in the event of the Expiration of the Term. For the purposes of this Agreement, “Expiration of the Term” shall mean the expiration of the Initial Term or any Renewal Term pursuant to a notice of non-renewal by either party as provided in Section 1. For the avoidance of doubt, an Expiration of the Term shall not constitute a termination of employment by the Company other than death, Disability or Cause, or a termination of employment by Executive for Good Reason.

9.Compensation Upon Certain Terminations.

a.If the Executive’s employment is terminated by the Company other than for death, Disability or Cause or by the Executive for Good Reason, the Company’s sole obligations hereunder shall be as follows:

i.Subject to Section 9(f) and the Executive’s continued compliance with Section 10 hereof:

1.The Company shall pay the Executive (i) a lump sum amount equal to the product of 2.0 and the Executive’s Base Salary no later than sixty (60) days following the Termination Date (the “Base Salary Severance”) and (ii) a lump sum amount equal to the actual short-term incentive compensation the Executive would have received, based on actual achievement of the performance objectives pursuant to the bonus plan described in Section 4 above, as if the Executive had remained employed with the Company for a period of one (1) year after the Termination Date, paid on the date on which short-term incentive compensation for each such period is paid to executives generally (together with the Base Salary Severance, the “Severance Payment”);

2.The Company shall pay the Executive: (i) the amount of any unpaid short-term incentive compensation for any performance period ending prior to the Termination Date, determined based on actual achievement of the performance objectives pursuant to the bonus plan described in Section 4 above, paid on the date on which the bonus for such period is paid to executives generally; and (ii) a short-term incentive amount for the performance period in which the Termination Date occurs, based on actual achievement of the performance objectives pursuant to the bonus plan described in Section 4 above and prorated based on the number of days employed during the performance period (including the Termination Date), paid on the date on which the bonus for each such period is paid to executives generally; and

3.Subject to the Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will pay the Executive a taxable lump-sum payment in an amount equal to the monthly COBRA premium charged for the COBRA coverage elected by the Executive for himself and, if applicable, his dependents under the Company’s group medical and dental care plan (which amount will be based on the premium for the first month of the Executive’s COBRA coverage) multiplied by twenty-four (24), which payment will be made no later than sixty (60) days following the Termination Date. For the avoidance of doubt, the taxable lump-sum payment may be used for any purpose, including, but not limited to the payment of the Executive’s COBRA premiums, and will be subject to all applicable tax withholdings. Executive acknowledges that it shall be Executive’s sole responsibility to timely elect COBRA coverage, and nothing herein shall promise or extend any period of coverage under COBRA or any Company medical or dental care plan.

4

ii.In addition to the amounts described above, the Company shall pay the Executive the following amounts earned hereunder but not paid as of the Termination Date: (i) Base Salary, and (ii) reimbursement for any and all monies advanced or expenses incurred pursuant to Section 7(a) through his Termination Date.

b.If the Executive’s employment is terminated by the Company for Cause or by reason of the Executive’s death, or if the Executive gives the Company a written notice of termination other than for Good Reason, or if Executive’s employment terminates due to the Expiration of the Term, then the Company’s sole obligation hereunder shall be to pay the Executive the following amounts earned hereunder but not paid as of the Termination Date: (i) Base Salary, (ii) reimbursement for any and all monies advanced or expenses incurred pursuant to Section 7(a) through the Termination Date, and (iii) in the event of the Executive’s death, the amount of any unpaid short-term incentive for any performance period ending prior to the Termination Date, determined based on actual achievement of performance objectives pursuant to the bonus plan described in Section 4 above, paid on the date on which the bonus for such period is paid to executives generally. The Executive’s entitlement to any other benefits shall be determined in accordance with the Company’s employee benefit plans then in effect.

c.If the Executive’s employment is terminated by the Company by reason of the Executive’s Disability, the Company’s sole obligations hereunder shall be as follows:

i.the Company shall pay the Executive the amount of any unpaid short-term incentive for any performance period ending prior to the Termination Date, determined based on actual achievement of the performance objectives pursuant to the bonus plan described in Section 4 above, paid on the date on which the bonus for such period is paid to executives generally; and

ii.the Executive shall be entitled to receive any disability benefits available under the Company’s Long-Term Disability Plan.

d.This Section 9(d) shall apply if there is a termination of the Executive’s employment (i) by the Company other than for death, Disability or Cause or (ii) by the Executive for Good Reason, in each case, either (A) during the two-year period following a Change in Control or (B) during the six (6) month period preceding a Change in Control; provided that to the extent a termination occurs pursuant to the foregoing clause (B), the Executive shall receive the benefits described in Section 9(a) in accordance with the terms thereof and any additional benefits provided in this Section 9(d) shall be paid in accordance with the terms hereof; provided further that if a Change in Control subsequently occurs, the unpaid balance of the benefits provided in Section 9(a) shall be provided in accordance with this Section 9(d). If any termination described in this Section 9(d) occurs, the Executive (or the Executive’s estate, if the Executive dies after such termination and execution of the release but before receiving such amount) shall receive the following:

i.Subject to Section 9(f) and the Executive’s continued compliance with Section 10 hereof:

1.The Company shall pay the Executive: (i) the amount of any unpaid short-term incentive compensation for any performance period ending prior to the Termination Date, determined based on actual achievement of the performance objectives pursuant to the bonus plan described in Section 4 above, paid on the date on which the bonus for such period is paid to executives generally; and (ii) a short-term incentive amount for the performance period in which the Termination Date occurs, based on actual achievement of the performance objectives pursuant to the bonus plan described in Section 4 above and prorated based on the number of days employed during the performance period (including the Termination Date), paid on the date on which the bonus for each such period is paid to executives generally; and

2.The Company shall pay the Executive (i) an amount equal to two (2.0) times the Base Salary and (ii) an amount equal to one and one-half (1.5) times the target amount of short-term incentive to which the Executive would have been entitled 
5

pursuant to the plan described in Section 4 above had the Executive’s employment continued for one (1) year after the Termination Date, in each case, payable in a lump sum within sixty (60) days following the Termination Date. Notwithstanding the foregoing, in the case of a termination of employment during the six (6) month period preceding a Change in Control, the amount described in subparagraph (ii) of this Subsection (2) shall be payable in a lump sum within sixty (60) days following the date of the Change in Control;

3.Subject to the Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will pay the Executive a taxable lump-sum payment in an amount equal to the monthly COBRA premium charged for the COBRA coverage elected by the Executive for himself and, if applicable, his dependents under the Company’s group medical and dental care plan (which amount will be based on the premium for the first month of the Executive’s COBRA coverage) multiplied by twenty-four (24), which payment will be made no later than sixty (60) days following the Termination Date. For the avoidance of doubt, the taxable lump-sum payment may be used for any purpose, including, but not limited to the payment of the Executive’s COBRA premiums, and will be subject to all applicable tax withholdings. Executive acknowledges that it shall be Executive’s sole responsibility to timely elect COBRA coverage, and nothing herein shall promise or extend any period of coverage under COBRA or any Company medical or dental care plan; and

4.Immediate accelerated vesting of all outstanding equity-based and cash-based incentive awards under the 2018 Plan (using target level of achievement under the respective award agreement for any award subject to performance-based criteria to determine the vested award amount).

For purposes of this Agreement, “Change in Control” shall have the meaning ascribed thereto in the 2018 Plan.

e.Except as otherwise expressly set forth herein, the amounts payable to the Executive pursuant to this Section 9 will be paid to the Executive at such times as the Executive would have otherwise been entitled to receive such amounts had the Executive not been terminated (determined in accordance with the Company’s payroll practices at the time of termination) and only so long as the Executive has not breached the provisions of Section 10 hereof or any other restrictive covenant and/or non-competition agreement between the Executive and the Company or any of its affiliates.

f.The parties acknowledge and agree that any damages that will result to the Executive in the event of a termination by the Company of the Executive’s employment without Cause or by the Executive for Good Reason shall be extremely difficult or impossible to establish or prove, and agree that the amounts payable to the Executive under Section 9(a) or Section 9(d) shall constitute liquidated damages for any such termination. The Executive agrees that such liquidated damages shall be in lieu of all other claims that the Executive may make by reason of any such termination of employment. Any and all amounts payable and benefits or additional rights provided pursuant to this Agreement shall only be payable if the Executive delivers to the Company and does not revoke a general release of claims in favor of the Company in a form reasonably satisfactory to the Company and the Executive. Such release must be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following the Termination Date. Notwithstanding anything to the foregoing set forth herein, to the extent that the payment of any amount described in Section 9(a) or Section 9(d) constitutes “nonqualified deferred compensation” for purposes of Code Section 409A, any such payment scheduled to occur during the first sixty (60) days following the Termination Date shall not be paid until the first regularly scheduled pay period following the 60th day following such termination and shall include payment of any amount that was otherwise scheduled to be paid prior thereto.

g.The Executive shall not be required to mitigate the amount of any payment provided for in this Section 9 by seeking other employment or otherwise and no such payment or benefit shall be 
6

eliminated, offset or reduced by the amount of any compensation provided to the Executive in any subsequent employment.

h.Except as otherwise expressly provided in this Section 9, all the Executive’s rights to salary, bonuses, fringe benefits and other compensation hereunder (if any) that accrue or become payable after the Termination Date will cease upon the Termination Date. The Executive’s termination of employment with the Company for any reason shall be deemed to automatically remove the Executive, without further action, from the Board, any other board to which the Executive has been appointed or nominated by or on behalf of the Company, and any and all offices held by Executive with the Company or its affiliates. The Executive shall execute such additional documents as requested by the Company from time to time to evidence the foregoing.

i.The Company may deduct or withhold from any amounts owing from the Company to the Executive all federal, state and local income, employment or other taxes as may be required to be withheld by any applicable law or regulation.

10.Employee Covenants.

a.For the purposes of this Section 10, the term “Company” shall include Express, Inc., and all its subsidiaries, parent companies and affiliates thereof.

b.Confidentiality. The Executive shall not, during the Term of this Agreement and thereafter, make any Unauthorized Disclosure. For purposes of this Agreement, “Unauthorized Disclosure” shall mean use by the Executive for the Executive’s own benefit, or disclosure by the Executive to any person other than a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of duties as an executive of the Company or as may be legally required, of any confidential information relating to the business or prospects of the Company (including, but not limited to, any information and materials pertaining to any Intellectual Property as defined below); provided, however, that Unauthorized Disclosure shall not include the use or disclosure by the Executive of any publicly available information (other than information available as a result of disclosure by the Executive in violation of this Section 10(b). This confidentiality covenant has no temporal, geographical or territorial restriction. Notwithstanding anything to the contrary in this Agreement or otherwise, nothing shall limit the Executive’s rights under applicable law to provide truthful information to any governmental entity or to file a charge with or participate in an investigation conducted by any governmental entity. Notwithstanding the foregoing, the Executive agrees to waive the Executive’s right to recover monetary damages in connection with any charge, complaint or lawsuit filed by the Executive or anyone else on the Executive’s behalf (whether involving a governmental entity or not); provided that the Executive is not agreeing to waive, and this Agreement shall not be read as requiring the Executive to waive, any right the Executive may have to receive an award for information provided to any governmental entity. In addition, the Company provides the Executive with the following notice under the Defend Trade Secrets Act of 2016: The Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that (1) is made: (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.

c.Non-Competition. During the Non-Competition Period described below, the Executive shall not, directly or indirectly, without the prior written consent of the Board, own, manage, operate, join, control, be employed by, consult with or participate in the ownership, management, operation or control of, or be connected with (as a stockholder, partner, or otherwise), any business, individual, partner, firm, corporation, or other entity that competes or plans to compete, directly or indirectly, with the Company or any of its products; provided, however, that the “beneficial ownership” by the Executive after termination of employment with the Company, either individually or as a member of a “group,” as such terms are used in Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of not more than two percent (2%) of the voting stock of any publicly held corporation shall not be a violation of Section 10 of this Agreement.
7

The “Non-Competition Period” means the period the Executive is employed by the Company plus one (1) year from the Termination Date.

d.Non-Solicitation. During the No-Raid Period described below, the Executive shall not, directly or indirectly, solicit, induce or attempt to influence any employee to leave the employment of the Company, nor assist anyone else in doing so. Further, during the No-Raid Period, the Executive shall not, either directly or indirectly, alone or in conjunction with another party, interfere with or harm, or attempt to interfere with or harm, the relationship of the Company with any person who at any time was an employee, customer or supplier of the Company, or otherwise had a business relationship with the Company.

The “No-Raid Period” means the period the Executive is employed by the Company plus one (1) year from the Termination Date.

e.Intellectual Property. The Executive agrees that all inventions, designs and ideas conceived, produced, created, or reduced to practice, either solely or jointly with others, during the Executive’s employment with the Company, including those developed on the Executive’s own time, which relate to or are useful in the Company’s business (“Intellectual Property”) shall be owned solely by the Company. The Executive understands that whether in preliminary or final form, such Intellectual Property includes, for example, all ideas, inventions, discoveries, designs, innovations, improvements, trade secrets, and other intellectual property. All Intellectual Property is either work made for hire for the Company within the meaning of the United States Copyright Act, or, if such Intellectual Property is determined not to be work made for hire, then the Executive irrevocably assigns all rights, titles and interests in and to the Intellectual Property to the Company, including all copyrights, patents, and/or trademarks. The Executive agrees to, without any additional consideration, execute all documents and take all other actions needed to convey the Executive’s complete ownership of the Intellectual Property to the Company so that the Company may own and protect such Intellectual Property and obtain patent, copyright and trademark registrations for it. The Executive also agrees that the Company may alter or modify the Intellectual Property at the Company’s sole discretion, and the Executive waives all right to claim or disclaim authorship. The Executive represents and warrants that any Intellectual Property that the Executive assigns to the Company, except as otherwise disclosed in writing at the time of assignment, will be the Executive’s sole exclusive original work. The Executive also represents that the Executive has not previously invented any Intellectual Property or has advised the Company in writing of any prior inventions or ideas.

f.Remedies. The Executive agrees that any breach of the terms of this Section 10 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Executive therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Executive and/or any and all persons and/or entities acting for and/or with the Executive, without having to prove damages. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including but not limited to the recovery of damages from the Executive. The Executive and the Company further agree that the confidentiality provisions and the covenants not to compete and solicit contained in this Section 10 are reasonable and that the Company would not have entered into this Agreement but for the inclusion of such covenants herein. Should a court determine, however, that any provision of the covenants is unreasonable, either in length of time, geographical area, or otherwise, the parties hereto agree that the covenant should be interpreted and enforced to the maximum extent which such court deems reasonable. In the event of any violation of the provisions of this Section 10, the Executive acknowledges and agrees that the post-termination restrictions contained in this Section 10 shall be extended by a period of time equal to the period of such violation, it being the intention of the parties hereto that the running of the applicable post-termination restriction period shall be tolled during any period of such violation. In the event of a material violation by the Executive of this Section 10, any severance being paid to the Executive pursuant to this Agreement or otherwise shall immediately cease.

8

g.The provisions of this Section 10 shall survive any termination of this Agreement, and the existence of any claim or cause of action by the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section 10.

11.Employee Representation. The Executive expressly represents and warrants to the Company that the Executive is not a party to any contract or agreement and is not otherwise obligated in any way, and is not subject to any rules or regulations, whether governmentally imposed or otherwise, which will or may restrict in any way the Executive’s ability to fully perform the Executive’s duties and responsibilities under this Agreement.

12.Successors and Assigns.

a.This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and assigns, and the Company shall require any successor or assign to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. The term “the Company” as used herein shall include any such successors and assigns to the Company’s business and/or assets. The term “successors and assigns” as used herein shall mean a corporation or other entity acquiring or otherwise succeeding to, directly or indirectly, all or substantially all the assets and business of the Company (including this Agreement) whether by operation of law or otherwise.

b.Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, the Executive’s beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal personal representative.

13.Arbitration and Other Matters.

a.Except with respect to the remedies set forth in Section 10(f) hereof, any controversy or claim between the Company or any of its affiliates and the Executive arising out of or relating to this Agreement or its termination shall be settled and determined by a single arbitrator whose award shall be accepted as final and binding upon the parties. The American Arbitration Association, under its Employment Arbitration Rules as then in effect, shall administer the binding arbitration. The arbitration shall take place in Columbus, Ohio. The Company and the Executive each waive any right to a jury trial or to a petition for stay in any action or proceeding of any kind arising out of or relating to this Agreement or its termination and agree that the arbitrator shall have the authority to award costs and attorney fees to the prevailing party. Except for any award of attorney fees by the arbitrator as provided in the preceding sentence, the parties acknowledge and agree that in connection with any dispute hereunder, each party shall pay all its own costs and expenses, including, without limitation, its own attorney fees and expenses.

b.For so long as there exists liability thereafter with regard to the Executive’s activities on behalf of the Company, the Company shall indemnify the Executive to the fullest extent permitted by applicable law (and in no event in connection with the Executive’s gross negligence or willful misconduct), and shall at the Company’s election provide the Executive with legal representation or shall advance to the Executive reasonable attorneys’ fees and expenses as such fees and expenses are incurred (subject to an undertaking from the Executive to repay such advances if it shall be finally determined by a judicial decision which is not subject to further appeal that the Executive was not entitled to the reimbursement of such fees and expenses).

c.During the Executive’s employment by the Company and for a period of six (6) years thereafter, the Executive shall be entitled to the same directors’ and officers’ liability insurance coverage that the Company provides generally to its other directors and officers, as may be amended from time to time for such directors and officers.

14.Notice. For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the notice of termination) shall be in writing and shall be deemed to have been duly 
9

given when personally delivered or sent by registered or certified mail, return receipt requested, postage prepaid, or upon receipt if overnight delivery service is used, addressed as follows or to such other address as any party shall notify the other parties of:

To the Executive:

At the most recent address listed in the Company’s books and records.

To the Company:

Express, Inc.
1 Express Drive
Columbus, OH 43230
Attn: Corporate Secretary

15.Settlement of Claims. The Company may (subject to any Code Section 409A considerations) offset any amounts the Executive owes it or its subsidiaries or affiliates against any amounts it owes the Executive hereunder.

16.Miscellaneous. No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

17.Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Ohio without giving effect to the conflict of law principles thereof.

18.Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

19.Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof. In the event of any inconsistency between the terms of this Agreement and the terms of any award of equity or non-equity incentive compensation to the Executive, the terms of this Agreement shall govern.

20.Section 409A Compliance. The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Code Section 409A and the regulations and guidance promulgated thereunder and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and construed consistent with such intent. The Company makes no representations that the payments and benefits provided under this Agreement comply with, or are exempt from, Code Section 409A. In no event whatsoever shall the Company its directors, officers, employees or agents be liable for any additional tax, interest or penalty that may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A. Any payment or installment made under this Agreement and any amount that is paid as a short-term deferral, within the meaning of Treasury Regulation Section 1.409A-1(b)(4), will each be treated as separate and distinct payments for purposes of Section 409A. Any payments to be made under this Agreement that are considered non-exempt “deferred compensation” under Code Section 409A upon a termination of employment shall only be made upon a "separation from service" under Section 409A. For purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” In the event that Code Section 409A requires that any special terms, provisions or conditions be included in this Agreement, then such terms, provisions and conditions shall, to the extent practicable, be deemed to be made a part of the Agreement, as applicable and terms used in this Agreement shall be construed in accordance with Code Section 409A if and to the extent required. Whenever a payment under this Agreement specifies a payment period with 
10

reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

Notwithstanding anything in this Agreement to the contrary, if any payment or benefit that constitutes non-exempt “deferred compensation” under Code Section 409A would otherwise be provided under this Agreement due to the Executive’s separation from service during a period in which he is a “specified employee” (as defined in Code Section 409A and the associated final regulations), then, to the extent required by Code Section 409A, such payments or benefits will be delayed, to the extent applicable, until six months after the Executive’s separation from service or, if earlier, the Executive’s death (the “409A Deferral Period”). If such payments are otherwise due to be made in installments during the 409A Deferral Period, the payments that would otherwise have been made in the 409A Deferral Period will be accumulated and paid in a lump sum during the seventh month following the Executive’s separation from service, and the balance of the payments will be made as otherwise scheduled. In the event benefits are required to be deferred, any such benefit may be provided during the 409A Deferral Period at the Executive’s expense, with the Executive having the right to reimbursement from the Company once the 409A Deferral Period ends, and the balance of the benefits will be provided as otherwise scheduled.

With respect to any reimbursement or in-kind benefit provided to the Executive pursuant to this Agreement that constitutes deferred compensation for purposes of Code Section 409A, the following conditions shall be applicable (except as otherwise permitted by Code Section 409A): (i) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive, (ii) any right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

21.Code Section 280G. Notwithstanding any other provision of this Agreement to the contrary, if the payments or benefits that the Executive would receive from the Company under this Agreement or otherwise (including, without limitation, any payment, benefit, entitlement or distribution paid or provided by the person or entity effecting a change in control) in connection with a change of ownership or control of the Company (or in the ownership of a substantial portion of the assets of the Company) (the “Total Payments”) (a) constitute “parachute payments” within the meaning of Section 280G of the Code, and (b) but for this Section 21, would be subject to the excise tax imposed by Section 4999 of the Code, then the Executive will be entitled to receive either (i) the full amount of the Total Payments (taking into account the full value of any equity awards), or (ii) a portion of the Total Payments having a value equal to $1 less than three (3) times the Executive’s “base amount” (as such term is defined in Section 280G(b)(3)(A) of the Code), whichever of clauses (i) and (ii), after taking into account applicable federal, state, and local income and employment taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by the Executive, on an after-tax basis, of the greatest portion of the Total Payments. Any determination required under this Section 21 shall be made in writing by an accounting firm selected by the Executive and reasonably acceptable to the Company (the “Accountants”), whose determination shall be conclusive and binding for all purposes upon the Company and the Executive. The Company shall be responsible for and promptly pay all fees and expenses of the Accountants in connection with or arising from the determinations contemplated hereby. For purposes of making the calculations required by this Section 21, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and 4999 of the Code. If there is a reduction pursuant to this Section 21 of the Total Payments to be delivered to the Executive, such reduction shall occur in the following order: (i) any cash severance payable by reference to Base Salary or seasonal bonus, (ii) any other cash amount payable to the Executive, (iii) any benefit valued as a “parachute payment,” and (iv) acceleration of vesting of any equity award. For the avoidance of doubt, in the event additional Total Payments are made to the Executive after the application of the cutback in this Section 21, which additional Total Payments result in the cutback no longer being applicable, the Company shall pay to the Executive an additional amount equal to the value of the Total Payments which were originally cutback. The Accountants shall determine at the end of each calendar year whether any such restoration is necessary based on additional Total Payments (if any) made during such calendar year and shall pay such restoration within ninety (90) days following the last day of such calendar year.

* * * * *

11

IN WITNESS WHEREOF, Express, Inc. and Express, LLC have caused this Agreement to be executed by a duly authorized officer and the Executive has executed this Agreement, in each case as of the respective dates set forth below.

EXPRESS, INC.

By: /s/ Mike Reese                              
Name: Mike Reese
Title: Chief Human Resources Officer
Date: June 16, 2022

EXPRESS, LLC

By: /s/ Mike Reese                              
Name: Mike Reese
Title: Chief Human Resources Officer
Date: June 16, 2022

/s/ Timothy Baxter                               
Name: Timothy Baxter
Date: June 16, 2022
12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}]]