Document:

Exhibit 10.19

 

[Free Translation
from Hebrew]

 

State of Israel

Ministry of
Trade and Industry

Industrial Research
and Development Administration

Office of Chief
Scientist

 

Jerusalem, __________

To

Company's CEO

PolyPid Ltd.

20 Hamagshimim St.

Petah Tikva 49348

Fax no. 972-74-7195718

 

Dear Sir / Madam,

 

Subject: Product
for controlled ongoing release of medication for the treatment of bone infection and bone illness

Meeting no.
10/2014 (m) held on 04/07/2014 (File 52264)

 

We hereby inform you that the
research committee, by virtue of its authority according to Article 17 of the Law for the Encouragement of Research and Development
in the Industry, 5744-1984 (hereinafter: the “R&D Law”), has resolved:

 

To approve the program with
a budget of up to NIS 6,019,462, and with a grant rate of 30%.

 

Royalties shall be paid out
of all income derived from products for controlled ongoing release of medication for the treatment of bone infection and bone illness
and other applications of the platform.

 

Budget cap amount may be reduced
as a result of adjustments to conform to budgeting regulations.

For your information, the program
approval is limited to the approved budget for the foregoing file, and solely for this research and development period. Additional
approvals, for this program or other programs, for the coming years, shall be examined in comparison to the research plans brought
forward to the research committee in the relevant year.

Once you prove that all conditions
set forth by the committee and/or requirements stemming from the financial examination, if any, have been fulfilled, you shall
be summonsed to sign a budget document and letter of undertaking.

The procedure shall be completed
within two months commencing from the day of approval by the committee, otherwise the approval shall terminate, and we shall be
free to allocate the budget for other purposes.

 

	 	Sincerely,
	 	 
	 	/s/  Abraham Gross
	 	Abraham Gross
	 	Committee Member- Vice Chief Scientist

 

Please note:

Pre-conditions and/or signing on budget and
undertakings, Ms. Shulamit Butbul, tel: 02-6662514

Copy: Ora Dar, Field Head

Shulamit Drukman, Professional Examiner

 

    	 

    	 

    

 

[Summary Translation
from Hebrew]

 

This page forms an
integral part of the letter of approval

 

Details of the budget
for research and development in the matter of: Product for controlled ongoing release of medication for the treatment of ...

Performance period
commencing 01/01/2014 until 12/31/2014

 

Budget page version
1.1

 

Request date

 

Date of latest update
04/24/2014

 

	 	File number:	52264
	 	Preparation Date:	04/24/2014
	 	Company	PolyPid
	 	Company Number	7262

 

	A. Human Resources	 	 
	Total Human Resources	 	2,429,711
	 	 
	B. Materials and consumable tools	 	 
	Total Materials	 	190,300
	 	 
	C. Subcontractors	 	 
	Total Subcontractors	 	3,301,197
	 	 
	D. Approved Equipment 	 	 
	Total	 	58,256
	 	 	 
	E. Miscellaneous	 	 
	Total	 	40,000
	 	 
	 	 	Total in NIS 6,019,462
	 	 	Grant 30% 1,805,839

 

Notes:

A. The person
performing the research shall be entitled to payments only with respect to expenses made and registered in a special account (including
registration of work hours of the researchers working in this research), and in accordance with the budget instructions of the
Office of the Chief Scientist at the Ministry of Trade and Employment.

 

B. This budget
page is in effect only after signing the letter of approval.

 

Signature:

 

	/s/ David Lavie	 	/s/ Amir Weisberg	 	05/05/14
	Office	 	Company	 	Date

 

    	 

    	 

    

  

[Free Translation
from Hebrew]

 PolyPid
Ltd.

Number at the registrar
of companies: 514105923

 

	 	Date: 05/11/14
	 	 
	 	Company: 7262

 

To

 

Industrial Research and Development Administration,
Office of Chief Scientist

Ministry of Industry, Trade and Employment

5 Bank Israel, PO Box 3166

Jerusalem

 

Dear Sir,

 

Re: Undertaking
Letter and Notice re Commencement of Performance of Approved R&D Plan

Subject: Product
for controlled ongoing release of medication for the treatment of bone infection and bone illness

 

File Number: 52264

 

We hereby inform
you that we commenced performing the approved plan, according to the referenced approval letter on 01/01/2014.

 

		1.	We declare and undertake to comply with all the provisions of the Law for the Encouragement of
Research and Development in Industry 5744-1984 (hereinafter the “Law”), and including:

 

		a.	The obligation not to transfer to another the knowledge, the rights on the knowledge and the manufacturing
rights deriving from the research and development without the approval of the research committee.

 

		b.	To pay royalties and file all reports according to the Law and the Regulations for the Encouragement
of Research and Development in Industry (Rate of Royalties and Rules for their Application), 5756-1996 (hereinafter the “Royalties
Regulations”) and the procedures of the Industrial Research and Development Administration (hereinafter the “Administration”).

 

		2.	We declare that we have read all instructions and procedures for financial reporting for R&D
purposes and we will comply with them, including in connection with the computerized system for the reporting on hours in assignment
to tasks.

 

		3.	We consent to the attribution of this file numbered: 52264 to plan 44765

Subject: Product for controlled
ongoing release of medication for the treatment of bone infection and bone illness.

 

		4.	Additional undertakings:

(A) We have been informed
of the amendment to royalties as published in the 'regulations file 5759' dated 3.12.1988 page 110 (file 5939). Pursuant to the
amendment thereof, the research grants shall be linked to the dollar and shall bear annual interest at the Libor rate.

(B) Additional Undertakings:

Payment of royalties out of
all income derived from products for controlled ongoing release of medication for the treatment of bone infection and bone illness
and other applications of the platform.

 

    	 

    	 

    

 

		5.	We hereby declare that we have separated and distinguished account/s in the framework of our financial
bookkeeping for the purpose of performing this plan. The recordings made in the account/s are direct, chronological, primary, systematic
and only according to documentation.

 

		6.	We hereby declare that we are aware that the referenced grant shall be paid subject to the terms of
the approval and according to the Administration’s procedures.

 

		7.	The attached budget, including its details, terms and appendices constitutes a binding framework.
Expenses deviating from this detailed framework will not be recognized, unless under the approval of the Administration.

 

		8.	Procedures:

 

		a.	The company shall not be entitled to advancement, and all payments shall be in accordance with the
financial report.

 

		b.	Any additional payment shall be executed according to a detailed financial report which corresponds
to the Administration’s procedures. Payment shall be made after review of the aforesaid report. The grant’s recipient
is obliged to file a financial report once every three months and a technical report at least once every half a year, and this
on the Administration’s forms or in the same format.

 

		c.	The truthfulness of the financial report shall be confirmed by an authorized representative of the
company, and documents witnessing actual payments to subcontractors shall be attached, if such expense is reported.

 

		d.	Any payment with respect to the approved grant shall be considered as advanced payment only until
the approval of the final report. Until the final report, no more than 90% (including ongoing advancements) shall be paid from
the lower of the budgeted grant or the expense in the financial report. The remaining balance shall be paid only following receipt
of a final financial report and a final technical report together with confirmation from an accountant on behalf of the company.
The payment shall be made following examination of the reports by representatives of the Administration.

 

		e.	The company’s books of accounts, including the company’s balance sheets, shall be open
for review of the Administration during a period of 7 years from the commencement of performance of the approved plan, or 6 years
from filing the final financial report, the later of the two.

 

		f.	The Administration will have the right to set off any sum due from the recipient of the support out
of grant approved hereby.

 

		g.	The grant’s recipient is not entitled to stop performing the plan without the prior written
approval from the head of the Administration. If the plan is ceased without such approval, the Administration may and shall be
entitled to demand the return of the grant plus interest and linkage differentials in accordance with the law.

 

		h.	The grant’s recipient is obligated to file a final financial report approved by an accountant
on its behalf in a format acceptable to the Office of the Chief Scientist and a final technical report to the approved plan, no
later than 3 months from the date of completion of the approved plan.

 

		i.	The Administration is entitled to demand additional technical reports at any time.

 

		j.	An expense shall not be recognized unless the consideration therefor is paid, except overhead in salaries
item.

 

		k.	In the final financial report only expenses accumulated during the approved research period and paid
no later than 60 days from its termination shall be recognized.

 

		l.	The Administration may demand interest and linkage differentials as provided by law on any sum due
to it from the recipient of the grant.

 

    	 

    	 

    

 

		9.	The abovementioned terms do not derogate from any statute and law applicable to the grant for this
file.

 

		10.	We hereby undertake to comply with intellectual property laws as shall be practiced in Israel from
time to time, and we consent that if we are convicted for violation of any of the intellectual property laws the Administration
shall be entitled to retrospectively terminate any benefit granted by you, including grant, loan, benefit or any other financial
advantage, or any part of such benefit, and demand their repayment including interest and linkage differentials, according to the
law.

 

Signature
confirmation for the company

 

The undersigned attorney
/ accountant Eitan Kyeit hereby confirms that PolyPid Ltd. is lawfully registered in Israel; that Messrs. Amir
Weisberg who have signed this agreement on its behalf, have signed it before me and are authorized to do so on its behalf;
that their signature on this agreement binds the company.

 

	05/07/2014	 	/s/ Eitan Kyiet
	Date	 	Signature and stamp 
	 	 	 
	 	 	 

 

	/s/ Amir Weisberg	 	Amir Weisberg	 	CEO	 	 
	 	 	 	 	 	 	 
	/s/ Noam Emanuel	 	Noam Emanuel	 	CTO	 	[company stamp]
	 	 	 	 	 	 	 
	Signature	 	Name	 	Position	 	Company’s stampExhibit 10.20

 

FORM OF

 

CONVERTIBLE LOAN AGREEMENT

 

THIS
CONVERTIBLE LOAN AGREEMENT (the “Agreement”), dated as of this __ day of December, 2014, is entered into by
and by and between PolyPid Ltd., a company organized under the laws of Israel (the “Company”) and each
of the lenders whose names are set forth in Exhibit A attached hereto (each, a “Lender” and together,
the “Lenders”).

 

RECITALS

 

WHEREAS, the
Company is seeking financing in the form of a convertible loan; and

 

WHEREAS, the
Lenders, which are current shareholders of the Company, have agreed to grant the Company, and the Company has agreed to accept
from the Lenders, a convertible loan in an aggregate amount of up to Three Million United States Dollars ($3,000,000), subject
to and in accordance with the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

		1.	The Loan.

 

		1.1.	The Loan Amount. At the Closing (as defined below), the Lenders shall provide the Company
a loan in the aggregate principal amount of up to Three Million United States Dollars ($3,000,000) (the “Principal Amount”),
pursuant to the allocation set forth in Exhibit A attached hereto.

 

In
addition, it is agreed that the Company may borrow, under same terms, additional amounts from external investors which are not
shareholders of the Company (the "New Investor(s)") in one or more tranches,
up to an additional principal amount of Two Million Five Hundred Thousand United States Dollars (US $2,500,000)
subject to the resolution of the board of directors of the Company, all within a period ending on the earlier of: (a) 20 days following
the Closing, and (b) the pricing of an initial public offering of the Company. The New Investor shall sign a joinder to this Agreement
and shall each be deemed as an Investor for the purpose of this Agreement. In the event that the investment (the “New
Investors’ Investment”) made by the New Investors will be made in the form of a loan pursuant to such a joinder,
the New Investors’ Investment shall not be considered as a Financing Round for the purpose of Section 2.1 below ("Additional
Closing").

 

		1.2.	Interest. The Principal Amount shall bear interest at the rate of 4% per annum, compounded
annually (“Interest”). Notwithstanding anything herein to the contrary, the Interest shall either be, subject
to the Company's sole discretion: (i) paid to the Lenders in cash (in case of repayment of the Loan Amount or in case of conversion
of the Principal Amount pursuant to the terms of Section 2 below); or (ii) converted into share capital of the Company together
with the Principal Amount, on the same terms; in each case, subject to withholdings taxes, if applicable. The Principal Amount
together with the applicable accrued Interest shall be referred to herein as the “Loan Amount”.

 

		1.3.	Closing. The closing of the transactions contemplated herein shall occur on the date hereof
(the “Closing”). At the Closing, the following transactions shall be consummated simultaneously:

 

		1.1.1.	The Lenders shall deliver to the Company the Principal Amount by wire transfer of immediately available
funds pursuant to the wiring instructions to be delivered to the Lenders by the Company.

 

    	 

    	 

    

 

		1.1.2.	The Company shall deliver to the Lenders:
(A) true and correct copies of resolutions of the Company’s Board of Directors
and shareholders approving, inter alia, this Agreement and the transactions
contemplated hereby, and (B) evidence that any preemptive, veto
and similar rights of the shareholders of the Company have either been waived or complied with in accordance with the Company’s
Articles of Association.

 

		1.1.3.	Use of Proceeds. The Company shall
use the proceeds of the Principal Amount for its ongoing operations as shall be resolved by the Board of Directors of the Company.

 

		2.	Conversion of the Loan. The Loan Amount shall be converted into shares of the Company pursuant
to the provisions of this Section 2.

 

		2.1.	Mandatory Automatic Conversion upon
Financing Round. 

 

		2.1.1.	In the event that prior to the first anniversary of the Closing Date (the “Due Date”),
the Company shall consummate a financing round in the Company’s share capital by one or more investors (whether or not such
investors are existing shareholders of the Company) (the “Financing
Round”), the Principal Amount or the Loan Amount, as applicable and subject to the Company’s discretion pursuant
to Section 1.2 above, will be automatically converted into the most senior class of shares of the Company issued in such Financing
Round, based on the price per share reflected in such Financing Round, after giving effect to a 25% discount (the "Discount").

 

		2.1.2.	The shares of the Company issued to the Lenders upon conversion of the Principal Amount or Loan
Amount, as applicable, pursuant to Section 2.1.1 above shall be of the same class and shall have the same rights and preferences
as the most senior shares issued to the investors in such Financing Round as such rights are reflected from time to time in the
Articles of Association of the Company (the "AOA").

 

		2.2.	Automatic Conversion upon Initial Public
Offering. Unless previously converted pursuant to Section 2.1
above, immediately prior to the closing of an Initial Public Offering of the Company (an "IPO"), the outstanding
Principal Amount or Loan Amount, as applicable, shall be automatically converted into ordinary shares of the Company at a price
per share equal to the price per share of the Company’s ordinary shares being offered in the IPO, after giving effect to
the Discount. Any shares which shall be issued to the Lenders in connection with the IPO shall be subject to a 180 day lock-up
and/or as may be reasonably required by the underwriter of the IPO. Each Lender hereby irrevocably consents to execute any ancillary
document deemed by the Company or the underwriters necessary or desirable to reflect said conversion terms. 

 

		2.3.	Mechanics of Conversion.

 

		2.3.1.	No Fractional Shares. Conversion into shares shall be calculated based on the aggregate
Principal Amount or Loan Amount, as applicable, to be converted and upon conversion, no fractional shares shall be issued to the
Lenders, and the number of converted shares to be issued shall be rounded to the nearest whole number.

 

		2.3.2.	Issuance of Share Certificates.
The Company shall, immediately upon any conversion of the Principal Amount or Loan Amount, as applicable, issue and deliver to
each Lender a certificate representing the number of the converted shares to which such Lender shall be entitled upon conversion
of its portion of the Principal Amount or Loan Amount, as applicable.

 

		2.3.3.	Lenders' Undertaking
to Execute Documents. Each Lender hereby undertakes, upon the conversion of the Principal
Amount or Loan Amount, as applicable, in accordance
with the provisions of this Agreement, to execute any and all documents requested by the Company, if such execution is required
under any law in order to effect such conversion. 

 

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		2.3.4.	Discharge. Upon conversion of the Principal
Amount or Loan Amount, as applicable, in accordance with the terms of this Agreement, the Principal Amount or Loan Amount,
as applicable, shall, for all intents and purposes, be fully repaid and discharged. At such time that the entire Loam Amount
shall be repaid and/or discharged, this Agreement shall terminate.

 

		2.3.5.	Withholding Taxes. The Company shall
be entitled to deduct withholding taxes in accordance with applicable law.

 

		2.3.6.	Rights of Lenders.
Prior to the conversion of the Principal
Amount or Loan Amount, as applicable, the Lender, in its capacity as lender, shall not be
entitled to any rights of a shareholder of the
Company, including, without limitation, the right to vote or to receive dividends or other distributions.

 

		3.	Repayment of the Loan 

 

		3.1.	Upon an Event of Default. The Loan
Amount shall immediately become due and payable in cash by the Company (to the extent not previously converted into shares of the
Company pursuant to Section 2 above) upon an Event of Default. Payment shall be made in lawful money of the United States of America
and shall be subject to withholding taxes in accordance with applicable law.

 

For purposes of this Agreement,
an “Event of Default” shall mean any of the following: (i) the Company files any petition or action for relief
under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors,
now or hereafter in effect, or makes any assignment for the benefit of creditors, or applies for or consents to the appointment
of any custodian, receiver or trustee for all or any substantial part of its property, or shall admit in writing that it is generally
unable to pay its debts as they become due, or takes any action to authorize any of the actions or events set forth above in this
clause; all provided however that such proceedings were not terminated, lifted or cancelled within 90 days thereafter; (ii) an
involuntary petition is filed against the Company under any bankruptcy statute now or hereafter in effect, which has not been removed,
sustained or terminated within 90 days thereafter (iii) a custodian, receiver, liquidator, trustee or assignee for the benefit
of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Company which
has not been removed, sustained or terminated within 90 days thereafter; (iv) the Company adopts a resolution for liquidation,
winding up or dissolution (or suffers any liquidation, wind-up or dissolution), bankruptcy or reorganization of the Company; (v)
the calling by the Company of a meeting of creditors for the purpose of entering into a scheme or arrangement with such creditors
which has not been removed, sustained or terminated within 90 days thereafter.

 

		4.	Representations and Warranties of the Company. The Company hereby represents and warrants
to the Lenders as follows:

 

		4.1.	Organization. The Company is a company duly formed, validly existing under the laws of the
State of Israel, with full corporate power and authority to enter into and perform its obligations under this Agreement.

 

		4.2.	Authorization. All corporate action on the part of the Company (including its shareholders)
necessary for the authorization, execution, delivery, and performance of all of the Company's obligations under this Agreement
have been (or will be) taken prior to the Closing. This Agreement, when executed and delivered by or on behalf of the Company,
shall constitute the valid and legally binding obligations of the Company, legally enforceable against the Company in accordance
with their respective terms. The shares issued to the Lenders upon conversion of the Principal Amount or Loan Amount, as applicable,
(the “Conversion Shares”), when issued and delivered (if any), will be validly issued, fully paid and other
than as set forth in the AOA, as in effect at the relevant time, free of restrictions on transfer.

 

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		4.3.	No Breach. The execution and delivery of this Agreement or compliance by the Company with
the terms and provisions hereof, will neither conflict with, or result in a breach or violation of, any of the terms, conditions
and provisions of the Company's articles of association, or other governing instruments of the Company, nor will such execution
and delivery of this Agreement or compliance by the Company with the terms and provisions hereof, conflict with or result in a
breach or violation of, any of the terms, conditions and provisions of (i) any judgment, order, injunction, decree, or ruling of
any court or governmental authority, domestic or foreign, (ii) any agreement, contract, lease, license or commitment to which the
Company is a party or to which it is subject, or (iii) applicable law. Such execution, delivery and compliance does not and will
not, (a) give to others any rights, including rights of termination, cancellation or acceleration, in or with respect to any agreement,
contract or commitment referred to in this paragraph, or to any of the properties of the Company or (b) otherwise require the consent
or approval of any person, which consent or approval has not heretofore been obtained.

 

		5.	Representations and Warranties of the Lenders. Each Lender (severally and not jointly) hereby
represents and warrants to the Company as follows:

 

		5.1.	The Lender has all requisite power and authority to execute and deliver this Agreement and other
agreements contemplated hereby or which are ancillary hereto and to consummate the transactions contemplated hereby and thereby.
This Agreement constitutes a legal, valid and binding obligation of the Lender, enforceable against the Lender in accordance with
its terms.

 

		5.2.	The Lender is an “accredited investor” as such term is defined in Rule 501 of Regulation
D promulgated under the Securities Act of 1933, as amended (the “Securities Act”) and that the information contained
on the signature page hereto is complete, accurate and true in all respects;

 

		5.3.	The Lender has had the opportunity to conduct an independent examination of the Company’s
business, financial or legal affairs and condition and recognizes that the Company has a limited operating history and no approved
pharmaceuticals, and that an investment in the Company involves a high degree of risk, including, without limitation, that the
Company may never conduct an IPO or otherwise effectuate a liquidity event;

 

		5.4.	The Lender has been advised that there will be no market for the Conversion Shares and that a market
may never develop. The Lender’s overall commitment to investments which are not readily marketable is not disproportionate
to his net worth; his investment in the Company will not cause such overall commitment to become excessive; and he can afford to
bear the loss of his entire investment in the Company;

 

		5.5.	The Lender has adequate means of providing for his current needs and personal contingencies and
has no need for liquidity in his investment in the Company;

 

		5.6.	The Lender has such knowledge and experience in financial and business matters that he is capable
of evaluating the merits and risks of an investment in the Company;

 

		5.7.	The Lender confirms that the Company has made available to Lender the opportunity to ask questions
of, and receive answers from, the Company concerning the Company and/or the Conversion Shares. In considering its investment in
the Company, the Lender has not relied upon any representations made by, or other information (whether oral or written) furnished
by or on behalf of, the Company, or any director, officer, stockholder, partner, employee, agent, member, or counsel, or any representative
or affiliate of any of the foregoing, other than as expressly set forth in this Agreement;

 

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		5.8.	The Lender hereby acknowledges that the Lender has been advised that the Conversion Shares have
not been, and will not be, registered with, or reviewed by, the United States Securities and Exchange Commission (the “SEC”)
because the issuance of the Conversion Shares is intended to be a non-public offering pursuant to Section 4(2) and Regulation D
under the Securities Act. The Lender represents that, in the event of conversion, the Conversion Shares are being purchased for
the Lender’s own account, for investment purposes only and not with a view for distribution or resale to others. The Lender
agrees that the Lender will not sell or otherwise transfer the Conversion Shares unless they are registered under the Securities
Act or unless in the opinion of counsel satisfactory to the Company an exemption from such registration is available. The Lender
understands that the Conversion Shares have not been registered under the Securities Act by reason of a claimed exemption under
the provisions of the Securities Act which depends, in part, upon the Lender’s investment intention.

 

		5.9.	The Lender understands that neither the SEC nor the securities administrator of any state or governmental
entity outside the United States has made any finding or determination relating to the fairness of this investment and that neither
the SEC nor any such securities administrator has recommended or endorsed, or will recommend or endorse, the offering and/or issuance
of the Conversion Shares, nor have any of them reviewed or passed upon the accuracy or adequacy of this Agreement;

 

		5.10.	If the Lender is an entity, the execution, delivery and performance by the Lender of the Agreement
has been duly authorized by its Board of Directors or other governing body and validly executed on its behalf;

 

		5.11.	The Lender acknowledges that no general solicitation or general advertising (including communications
published in any newspaper, magazine, e-mail or by electronic means on the Internet or other broadcast) has been received by him
and that no public solicitation or advertisement with respect to the offering of the Conversion Shares has been made to him;

 

		5.12.	The Lender has sufficient resources to bear the economic risk of an investment in the Company and
in the Conversion Shares for an indefinite period of time, and that this investment is being made for the account of the Lender
alone;

 

		5.13.	By executing and delivering this Agreement, the Lender covenants to the Company that, except with
the prior written permission of the Company, it shall at all times keep confidential and not divulge, furnish or make accessible
to anyone any information contained in this Agreement, including the exhibits and attachments thereto;

 

		5.14.	THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES
LAWS OF ANY STATES AND ARE BEING OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND
SUCH LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE SECURITIES HAVE NOT BEEN APPROVED,
DISAPPROVED OR RECOMMENDED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY,
NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE
OFFERING MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL, THE COMPANY MAY AFFIX ON ANY SHARE CERTIFICATE ISSUED HEREUNDER
APPROPRIATE LEGEND EVIDENCING THE ABOVE STATEMENTS;

 

		5.15.	The Lender is not a “U.S. Person” as that term is defined in Rule 902 of Regulation
S under the Securities Act; and received all communications relating to the issuance of the Conversion Shares, and executed all
documents relating thereto, outside the United States;

 

		5.16.	Without derogating from the foregoing, each Lender confirms that he/it is either a director of
the Company or is considered as an investor for purpose of Section 15A(b)(1) to the Israeli Securities Law 5728–1968 (the
"Israeli Securities Law") and he/it understands and confirms the implications thereof; and

 

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		5.17.	The foregoing representations and warranties are true and accurate as of the date hereof, shall
be true and accurate as of the date of delivery of this Agreement and accompanying documents to the Company and shall survive such
delivery. If, in any respect, those representations and warranties shall not be true and accurate prior to the conversion and issuance
of any shares as provided for in this Agreement, the undersigned shall immediately give written notice to the Company specifying
which representations and warranties are not true and accurate and the reason therefor.

 

		6.	Indemnification; Survival of Representations.

 

		6.1.	Indemnification. The Company shall
indemnify, defend and hold harmless the Lenders and its directors, officers, and shareholders and representatives (the “Indemnified
Party”), from and against all third party claims, actions, suits, losses, liabilities, damages, deficiencies, judgments,
settlements, actually incurred by the Lenders (including reasonable attorneys' fees and disbursements incurred in connection with
defending a claim or enforcing this indemnification or otherwise in connection with any of the foregoing), arising out of any breach
of any representation or warranty of the Company contained in Section 4 of this Agreement (collectively, “Losses”)
provided however that no claims made under this Section 6 shall be brought
against the Company unless such Losses exceed in the aggregate US$ 50,000, at which point claims may be made for the full amount
of Losses from the "first Dollar".

 

		6.2.	Limitations. Notwithstanding anything
to the contrary herein (i) the liability of the Company towards the Lenders under this Agreement with respect to breaches of representations
and warranties contained in Section 4 of this Agreement (a “Reps Claim”) shall be limited to the Loan Amount
plus any reasonable expenses incurred by any Lender in connection with its claim in respect of such Losses; and (ii) no Reps Claim
shall be brought against the Company later than the end of the applicable Survival Period set forth in Section 6.3 below.

 

		6.3.	Survival. Each representation and
warranty set forth in Section ‎4 shall survive and remain in full force and effect after the Closing until the earlier of:
(i) conversion (in which case the applicable share purchase agreement shall govern) or repayment of the Loan Amount; or (ii) twenty
four (24) months following the Closing (the “Survival Period”).

 

		7.	Miscellaneous.

 

		7.1.	Further Assurances. 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 hereby.

 

		7.2.	Governing Law. This Agreement shall
be governed by and construed according to the laws of the State of Israel, without regard to principles
of conflict of laws. The parties hereto irrevocably submit to the exclusive jurisdiction of any court of competent jurisdiction
located in Tel-Aviv in respect of any dispute arising out of or in connection with this Agreement or the transactions contemplated
hereby. Except as otherwise expressly limited herein, the provisions hereof shall inure to the benefit of, and be binding upon,
the successors, assigns, heirs, executors, and administrators of the parties hereto.

 

		7.3.	Assignment. None of the rights, privileges, or obligations set forth in, arising under,
or created by this Agreement may be assigned or transferred by either Party.

 

		7.4.	Entire Agreement; Amendment and Waiver. This Agreement constitutes the full and entire understanding
and agreement between the parties with regard to the subject matter hereof and supersedes any prior agreements between the parties
with respect to such subject matter. Any term of this Agreement may be amended and the observance of any term hereof may be waived
(either prospectively or retroactively and either generally or in a particular instance) only with the written consent of the Company
and the Lenders advancing a majority of the Loan Amount, which amendment shall then be binding upon all Lenders.

 

    	6

    	 

    

 

		7.5.	Notices. All notices and other
communications required or permitted hereunder to be given to a party to this Agreement shall be in writing and shall be faxed,
e-mailed or mailed by registered or certified mail, postage prepaid,
or otherwise delivered by hand or by messenger, to the addresses provided by the parties. Any notice sent in accordance with this
Section shall be effective (i) if mailed, seven (7) business days after mailing, (ii) if sent by messenger, upon delivery, and
(iii) if sent via facsimile or e-mail, upon transmission and electronic confirmation of receipt or (if transmitted and received
on a non-business day) on the first business day following transmission and electronic confirmation of receipt. 

 

		7.6.	Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing
to any party upon any breach or default under this Agreement, shall be deemed a waiver of any other breach or default theretofore
or thereafter occurring. All remedies, either under this Agreement or by law or otherwise afforded to any of the parties, shall
be cumulative and not alternative.

 

		7.7.	Severability. If any provision
of this Agreement is held by a court of competent jurisdiction to be unenforceable under applicable law, then such provision shall
be excluded from this Agreement and the remainder of this Agreement shall be interpreted as if such provision were so excluded
and shall be enforceable in accordance with its terms; provided,
however, that in such event this Agreement shall be interpreted so as to give effect, to the greatest extent consistent with and
permitted by applicable law, to the meaning and intention of the excluded provision as determined by such court of competent jurisdiction.

 

		7.8.	Counterparts. This Agreement may
be executed in one or more counterparts.

 

[Remainder of page intentionally left
blank]

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the parties have signed this Convertible
Loan Agreement as of the date first written above.

 

	 	THE COMPANY:
	 	 
	 	POLYPID LTD.
	 	 
	 	By: 	 	 
	 	 
	 	Name:
	 	 
	 	Title:
	 	 
	 	THE LENDER:

 

YOUR SIGNATURE IS REQUIRED
- For U.S. securities law purposes:

 

By initialing the appropriate
space below, the Lender hereby represents that the Lender is:

 

	________

(initials)	a corporation, a business trust, or a partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000.
	________

(initials)	a natural person whose individual net worth, or joint net worth with his or her spouse, exceeds $1,000,000 (ignoring the positive net value of a principal residence secured by a mortgage but including any negative net value).
	________

(initials)	a natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with his or her spouse in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year.
	________

(initials)	a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Ordinary Shares, whose purchase is directed by a sophisticated person as described Regulation D.
	________

(initials)	
        an entity in which all of the equity owners
        fall within one of the categories set forth above.

        Other category of accredited investor
        (specify): _________________________________

 

YOUR SIGNATURE
IS REQUIRED - For Israeli securities law purposes:

 

By
initialing the appropriate space below, the Lender hereby represents that the corresponding description is true, and that the
Lender is aware of the implications of being declared a Classified Investor1
under the Israeli Securities Law and the Lender consents to being declared as
such:

 

	________

(initials)	an entity or person which is a Controlling Shareholder2,
    a general manager or a director in the Company or a corporation in the control of the Company. 
	________

(initials)	a corporate entity which is an venture capital fund3;

 

 

1
A Classified Investor – an investor who falls within any of the categories listed in the 1st Addendum of the
Israeli Securities Law.

2
"Control" is defined as ability the ability to direct the activities of the company, other than by virtue
of being an office holder. A shareholder is presumed to be a controlling shareholder if the shareholder holds 50% or more of the
voting rights in a company or the right to appoint the directors of the company or its general manager. 

3
A venture capital fund is defined as a corporation whose main activity is investing in corporations which, at the
time of the investment, area primarily engaged in research, development or manufacturing of innovative and hi-tech products or
processes, and where the risk of investment is higher than what is customary for other investments.

 

    	8

    	 

    

 

	________

(initials)	a corporation entity fully owned by Classified Investors;
	________

(initials)	a corporation entity with shareholders equity exceeding ILS 50,000,000 (excluding entities that were incorporated for the purpose of purchasing securities in a specific offering).
	________

(initials)	a person who, if purchases securities of the Company, does so
    for their own account and not on behalf, or the benefit, of any other party, and complies with at least two of the following:
    (i) owns cash, deposits, Financial Assets4 and
    securities worth (in total) of more than ILS 12,000,000; (ii) has expertise in the capital market, or alternatively was employed
    for at least a year in a professional role which requires expertise in the capital market; (iii) during the four calendar
    quarters prior to the date hereof, executed at least 30 transactions in average per quarter, not including transactions performed
    by a portfolio manager/s. 
	________

(initials)	
        an entity in which all of the equity owners
        fall within one of the categories set forth above.

        Other category of accredited investor
        (specify): _________________________________

 

	Lender’s name é
	 
	Lender’s signature é
	 
	Title of signatory, if Lender is an entity é
	 
	Loan amount invested to be extended by the Lender ê

 

 

 

		4	"Financial Assets" are defined
to include units in mutual investment funds, shares or units of funds registered outside of Israel, options, future contracts,
structured products and education funds (kranot hishtalmut).

 

    	9

    	 

    

 

Exhibit A

 

List of Lenders

 

 

    	10

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