Document:

Exhibit
10.1

 

CERTAIN
INFORMATION IN THIS DOCUMENT, MARKED BY [***], HAS BEEN EXCLUDED PURSUANT TO REGULATION S-K, ITEM 601(b)(10)(iv).
SUCH EXCLUDED INFORMATION IS NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

 

SETTLEMENT
AGREEMENT AND RELEASE

 

This
Settlement Agreement and Release (this “Settlement Agreement”), is entered into by and between BEYOND AIR, INC.,
formerly AIT Therapeutics, Inc. (“Beyond Air”) on behalf of itself and its Affiliates (collectively, “Beyond
Air”) and CIRCASSIA LIMITED on behalf of itself and its Affiliates (collectively, “Circassia”) on
the date it is fully executed by the Parties (the “Effective Date”). Beyond Air and Circassia may be referred to collectively
as the “Parties” and each individually as a “Party”. “Affiliate” means any entity
that directly or indirectly controls, is controlled by or is under common control of a Party.

 

RECITALS

 

	A.	Circassia
                                            and Beyond Air are parties to a License, Development and Commercialization Agreement dated
                                            January 23, 2019 (the “License Agreement”) with respect to the Product
                                            (defined herein).

 

	B.	In
                                            December 2019, Beyond Air purported to terminate the License Agreement based on an alleged
                                            material breach by Circassia. Circassia asserts that it did not breach the License Agreement,
                                            that the termination was wrongful and that, instead, Beyond Air ceased cooperating with Circassia
                                            and effectively abandoned its obligations under the License Agreement prior to attempting
                                            to terminate it. The effectiveness of the purported termination and each Party’s allegations
                                            regarding the other Party’s failure to fulfill its obligations under the License Agreement
                                            are referred to herein as the “Dispute”.

 

	C.	[***],
                                            Beyond Air submitted a pre-market approval application to the FDA for the Product (the “PMA”).

 

	D.	The
                                            Parties desire to resolve all disagreements and disputes between them, and the Parties agree
                                            that this Settlement Agreement constitutes a settlement of disputed claims, that nothing
                                            contained herein shall be construed as an admission of liability by the Parties and that
                                            all such liability is expressly denied.

 

NOW,
THEREFORE, in consideration of the promises and releases contained herein, and the compromise of disputed claims, the receipt and sufficiency
of all such consideration being expressly acknowledged by all Parties, the Parties agree as follows:

 

AGREED
TERMS

 

1.
Defined Terms.
Capitalized terms used in this Settlement Agreement and not otherwise defined shall have the meanings given to them in Exhibit
A attached hereto. 

 

2.
Termination of License Agreement. Subject
to the terms and conditions of this Settlement Agreement, the term of the License Agreement
is hereby terminated as of the Effective Date. From and after the Effective Date,
the License Agreement will be of no further force or effect, and the rights and obligations
of each of the Parties thereunder shall terminate, except for any rights and obligations of the Parties set forth in Sections 12.1 through
12.5 of the License Agreement regarding confidentiality, which shall survive in accordance with their terms.

 

    	 

     

    

 

3.
Initial Settlement Payment.

 

(a)
Beyond Air will pay Circassia the sum of Ten Million Five Hundred Thousand Dollars ($10,500,000.00) (the “Initial Settlement
Payment”) in three installments as follows:

 

(i)
$2,500,000 to Circassia within fifteen (15) days following FDA approval of the Product (“Initial Payment Due Date”);

 

(ii)
$3,500,000 to Circassia on the first anniversary of the Initial Payment Due Date; and

 

(iii)
the remainder of the Initial Settlement Payment on the second anniversary of the Initial Payment Due Date.

 

(b)
Each installment of the Initial Settlement Payment shall be paid by wire transfer of immediately available funds in accordance with the
following wire instructions or such other instructions as Circassia may designate by notice to Beyond Air hereunder:

 

	 	ABA
    Number:	[***]
	 	Account
    Number: 	[***]
	 	Bank
    Address:	[***]
	 	Attn:
    	[***]

 

4.
FDA Approval. If Beyond Air withdraws the PMA or any
other application submitted to the FDA with respect to the Product in lieu of the PMA or fails to pursue FDA approval of the Product
primarily for the purpose of depriving Circassia of the right to receive the benefits
of this Settlement Agreement or otherwise in bad faith, the Initial Settlement Payment will become due and payable immediately without
further action or notice on the part of Circassia. 

 

5.
Royalty Payments.

 

(a)
In addition to the Initial Settlement Payment, Beyond Air shall pay to Circassia a royalty payment equal 5% of Net Sales (“Royalties”)
made in the Territories commencing in the first full fiscal quarter following the second anniversary of the Initial Payment Due Date
and continuing until such time as the aggregate Royalties paid to Circassia equal to Six Million Dollars ($6,000,000.00) (“Total
Royalty Payment”). Beyond Air shall pay the Royalties earned in any fiscal quarter within [***] of the close of such fiscal
quarter.

 

    	Page 2 of 8

     

    

 

(b)
Beyond Air shall furnish or cause to be furnished to Circassia within [***] after the end of each fiscal quarter of Beyond Air (each
a “Reporting Period”) a written report or reports (the “Sales Report”) covering the applicable
Reporting Period and containing the following information:

 

(i)
The Net Sales from the sale of Products and/or Filters (and all associated calculations) in the Territories during the Reporting Period;
and

 

(ii)
the Royalties which shall have accrued hereunder in respect to such Net Sales during the Reporting Period.

 

The
obligation to provide such Sales Reports shall commence following the first full quarter following the second anniversary of the Initial
Payment Due Date and continue until the Total Royalty Payment has been made. If the net sales amount set forth in any Beyond Air publicly
filed Form 10-Q report is calculated consistent with Net Sales as defined in this Agreement, then such publicly filed Form 10-Q report
shall constitute a “Sales Report” within the meaning of this Agreement. Beyond Air and its Affiliates shall keep legible,
verifiable and accurate records in sufficient detail to enable the Royalties payable hereunder to be determined and substantiated.

 

(c)
Circassia shall have the right to have an independent public accounting firm of its own selection but reasonably acceptable to Beyond
Air, and at [***] own expense (except if the result of such audit reveals an underpayment exceeding [***] ([***]) of the amounts actually
due to Circassia for the audit period in question, in which case such audit shall be at [***] expense), examine the relevant books and
records of account of Beyond Air and any of its Affiliates during reasonable business hours upon reasonable prior written notice to Beyond
Air and not more often than [***] each fiscal year of Beyond Air, for not more than [***] ([***]) previous years, to determine whether
appropriate payment have been made to Circassia hereunder. Beyond Air shall promptly pay to Circassia the full amount of any undisputed
underpayment. If the amount of the underpayment is greater than [***] ([***]) on an annualized basis, Beyond Air shall pay interest on
that amount that is in excess of [***] ([***]) at the rate of [***] ([***]) per year, or the maximum rate permitted by applicable Law,
whichever is less, in either case compounding annually from the date payment was due. Any overpayment by Beyond Air shall be credited
against future Beyond Air Royalties payment obligations hereunder. Such public accounting firm shall treat as confidential, and shall
not disclose to Circassia, any information other than information which could otherwise be given to Circassia pursuant to any provision
of this Settlement Agreement, all of which shall be treated as Confidential Information of Beyond Air under the surviving confidentiality
provisions under the License Agreement.

 

(d)
All payments to Circassia shall be in U.S. Dollars.

 

6.
[***]. In
the event of [***], the
Initial Settlement Payment and the Total Royalty Payment will become due and payable to Circassia [***] without
further action or notice. Notwithstanding the foregoing, if [***], then payment is not due
and payable to Circassia [***] as set forth in the immediately preceding sentence and shall
be made as follows:

 

    	Page 3 of 8

     

    

 

	Circassia
    Balance Due 

    as a percentage of  [***]	 	Payment
    Schedule
	[***]	 	[***]
	[***]	 	[***]
	[***]	 	[***]

 

Alternatively,
Beyond Air may make a proposal to Circassia regarding a preferred payment schedule with respect to the remaining amounts due under this
Settlement Agreement and Circassia will consider such proposal in good faith. 

 

7.
Taxes. Circassia shall be solely responsible for, and is legally bound to make payment of, any taxes determined to be due and
owing (including penalties and interest related thereto) by it to any federal, state, local, or regional taxing authority as a result
of the Initial Settlement Payment or the Royalties.

 

8.
Mutual Release. The Parties, on behalf of themselves, their predecessors, successors, direct and indirect parent companies, direct
and indirect subsidiary companies, companies under common control with any of the foregoing, Affiliates, and assigns, and their past,
present, and future officers, directors, shareholders, interest holders, members, partners, attorneys, agents, employees, managers, representatives,
assigns, and successors in interest, and all persons acting by, through, under, or in concert with them, and each of them, hereby absolutely,
fully and forever, release, relieve, waive, relinquish and discharge the Parties, and each of their current and former parents, subsidiaries,
Affiliates, insurers, and each of their respective present and past officers, directors, equity holders, managers, members, agents, servants,
employees, representatives, predecessors, successors, assigns and attorneys, of and from any and all claims, demands, causes of action,
contracts (other than the provisions of the License Agreement that survive termination of the License Agreement in accordance with the
terms of the License Agreement), suits, judgments and liabilities of any kind or nature whatsoever, whether known or unknown, liquidated
or unliquidated, contingent or determined, direct or indirect, in law or in equity, arising from any matter or thing whatsoever, including
but not limited to the License Agreement, and the Dispute (collectively, the “Released Claims”). The Parties may hereafter
discover facts in addition to or different from those which they now know or belief to be true with respect to the subject matter of
the Released Claims, but the Parties expressly, fully, finally and forever settle and release, any and all Released Claims, known or
unknown, suspected or unsuspected, contingent or non-contingent, whether or not concealed or hidden, which now exist, or heretofore have
existed, upon any theory of law or equity now existing or coming into existence in the future, including without limitation conduct that
is negligent, intentional, with or without malice, and a breach of any duty, law or rule, without regard to the subsequent discovery
or existence of such different or additional facts. The Parties acknowledges that the foregoing waiver and release was separately bargained
for and a key element of the settlement of which this release is a part.

 

    	Page 4 of 8

     

    

 

9.
Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and
shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by e-mail of a PDF document (with confirmation
of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours
of the recipient; or (d) on the third day after the date mailed, by certified or registered mail (in each case, return receipt requested,
postage pre-paid). Such communications must be sent to the respective Parties at the following addresses (or at such other address for
a Party as shall be specified in a notice given in accordance with this Section):

 

	If
    to Circassia:	Circassia
                                            Limited

    Northbrook
    House

    Robert
    Robinson Avenue, Science Park

    Oxford
    OX4 4GA, UK

    E-mail:
    [***]

    Telephone:
    [***]

    Attention:
    [***]

	 	 
	with
    a copy to:	Womble
                                            Bond Dickinson (US) LLP

    555
    Fayetteville Street Suite 1100 Raleigh, NC 27601

    E-mail:
    J[***]

    Telephone:
    [***]

    Attention:
    [***]

    

	 	 
	If
    to Beyond Air:	Beyond
                                            Air, Inc.

    825
    East Gate Blvd., Suite 320

    Garden
    City, New York 11530

    E-mail:
    [***]

    Telephone:
    [***]

    Attention:
    [***]

 

    	Page 5 of 8

     

    

 

10.
Authority. The Parties and signatories to this Settlement Agreement represent and warrant that they have the full legal authority
to sign this Settlement Agreement. The Parties represent and warrant that they have full power and authority to compromise and release
the Released Claims, and have not previously assigned, encumbered or otherwise transferred any portion of the Released Claims.

 

11.
No Outstanding or Known Future Claims/Causes of Action. The Parties affirm that they have not filed with any governmental agency
or court any type of action or report against the other Party, and currently know of no existing act or omission by the other Party that
could give rise to liability.

 

12.
No Admission of Liability. The Parties acknowledge that the Initial Settlement Payment and the Total Royalty Payment were agreed
upon as a compromise and final settlement of disputed claims and that payment of the Initial Settlement Payment and the Total Royalty
Payment is not, and may not be construed as, an admission of liability by either Party and is not to be construed as an admission that
either Party engaged in any wrongful, tortious, or unlawful activity. The Parties specifically disclaim and deny (a) any liability to
the other Party and (b) engaging in any wrongful, tortious, or unlawful activity.

 

13.
Non-Disparagement. The Parties agree that, unless required to do so by legal process, the Parties, including all Affiliates, officers,
and directors, will not make any disparaging statements or representations, either directly or indirectly, whether orally or in writing,
by word or gesture, in any medium to any person whatsoever, about the other Party, the other Party’s Affiliates, or any of the
other Party’s directors, officers, employees, attorneys, agents, or representatives. For purposes of this Section, a disparaging
statement or representation is any communication which, if publicized to another, would cause or tend to cause the recipient of the communication
to question the business condition, integrity, competence, good character, or product quality of the person or entity to whom the communication
relates.

 

14.
Entire Agreement. Other than the provisions of the License Agreement that survive termination of the License Agreement in accordance
with the terms of the License Agreement, this Settlement Agreement constitutes the final, integrated and entire agreement and understanding
of the Parties with respect to the subject matter of this Settlement Agreement, and supersedes any and all prior agreements, representations
and negotiations between the Parties as to such subject matter, whether oral or written. The Parties further agree that they are not
relying on any inducements, promises, or representations made by the other Party, with the exception of the representations and the consideration
cited herein.

 

    	Page 6 of 8

     

    

 

15.
Interpretation. Should any provision of this Settlement Agreement be declared or be determined by any court to be illegal or invalid,
the validity of the remaining parts, terms, or provisions shall not be affected thereby and said illegal or invalid part, term, or provision
shall be deemed not to be a part of this Settlement Agreement. The headings within this Settlement Agreement are purely for convenience
and are not to be used as an aid in interpretation. Moreover, this Settlement Agreement shall not be construed against either Party as
the author or drafter of the Settlement Agreement.

 

16.
Choice of Law; Venue. This Settlement Agreement and all related documents and all matters arising out of or relating to this Settlement
Agreement, whether sounding in contract, tort, or statute are governed by, and construed in accordance with, the laws of the State of
Delaware, without giving effect to the conflict of laws provisions thereof to the extent such principles or rules would require or permit
the application of the laws of any jurisdiction other than those of the State of Delaware. All claims, controversies or disputes arising
out of or in connection with this Settlement Agreement, including its validity or termination, or the performance or breach hereof, shall
be heard exclusively by courts located in Delaware.

 

17.
Reliance on Own Counsel. In entering into this Settlement Agreement, the Parties acknowledge that they have relied upon the legal
advice of their respective attorneys, who are the attorneys of their own choosing, that such terms are fully understood and voluntarily
accepted by them, and that, other than the consideration set forth herein, no promises or representations of any kind have been made
to them by the other Party. The Parties represent and acknowledge that in executing this Settlement Agreement they did not rely, and
have not relied, upon any representation or statement, whether oral or written, made by the other Party or by that other Party’s
agents, representatives, or attorneys with regard to the subject matter, basis, or effect of this Settlement Agreement or otherwise.

 

18.
Counterparts. This Settlement Agreement may be executed by the Parties in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. An executed facsimile or electronically scanned copy of this
Settlement Agreement shall have the same force and effect as an original.

 

19.
Covenant Not to Sue.
Each Party hereby irrevocably covenants that neither such Party nor any of its related parties granting the release in Section 8 will,
directly or indirectly, alone or by, with, or through others, cause, induce or authorize, or voluntarily assist, participate, or cooperate
in, the commencement, maintenance or prosecution of any action or proceeding of any kind or nature whatsoever including, but not limited
to, any suit, complaint, grievance, demand, claim, cause of action in, of, or before any government authority against the other Party
or any of the other persons or entities released pursuant to Section 8 hereof, seeking or having the tendency to establish any liability
on the part of, or to exact any sanction or penalty, or any injunctive, equitable, legal, declaratory, administrative or other relief
from or against the other Party, or any of such other released persons or entities, arising from, by reason of, or in connection with
any claim or other matter released pursuant to Section 8.

 

    	Page 7 of 8

     

    

 

20.
Agreement is Legally Binding.
The Parties intend this Settlement Agreement to be legally binding upon and shall inure to the benefit of each of them and their respective
successors and assigns. Moreover, the persons and entities referred to in Section 8 above (other than the Parties) are third-party beneficiaries
of this Settlement Agreement.

 

21.
Attorneys’ Fees.

 

(a)
The Parties acknowledge and agree that they are solely responsible for paying any attorneys’ fees and costs they incurred in connection
with the Dispute or the negotiation and execution of this Settlement Agreement and that neither Party nor its attorney(s) will seek any
award of attorneys’ fees or costs from the other Party, except as provided herein.

 

(b)
In the event that any Party institutes any legal suit, action or proceeding, including arbitration, against the other Party to enforce
the covenants contained in this Settlement Agreement (or obtain any other remedy in respect of any breach of this Settlement Agreement)
or otherwise arising out of or relating to this Settlement Agreement, the prevailing party in the suit, action or proceeding shall be
entitled to receive in addition to all other damages to which it may be entitled, the costs incurred by such party in conducting the
suit, action or proceeding, including reasonable attorneys’ fees and expenses and court costs.

 

READ
THE FOREGOING DOCUMENT CAREFULLY. IT INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS.

 

[signature
page follows]

 

    	Page 8 of 8

     

    

 

CERTAIN
INFORMATION IN THIS DOCUMENT, MARKED BY [***], HAS BEEN EXCLUDED PURSUANT TO REGULATION S-K, ITEM 601(b)(10)(iv).
SUCH EXCLUDED INFORMATION IS NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Settlement Agreement as of the date first above written.

 

	BEYOND
  AIR, INC.	CIRCASSIA
  LIMITED
	 	 	 	 
	by:	/s/
  Steve Lisi	by:	/s/
  Michael Roller
	 	Authorized
  signature	 	Authorized
  signature

 

	Signatory
  Name:	Steve
  Lisi	Signatory
  Name:	Michael
  Roller
	 	(type
  or print)	 	(type
  or print)
	 	 	 	 
	Signatory
  Title:	CEO	Signatory
  Title:	Director
	 	 	 	 
	Signature
  Date:	May
  25, 2021	Signature
  Date:	25
  May 2021

 

[Signature
Page]

 

    	 

     

    

 

Exhibit
A

 

Defined
Terms

 

[***]

 

“Circassia
Balance Due” means, as of a given date, an amount equal to [***].

 

[***]

 

“FDA”
means the United States Food and Drug Administration and any successors thereof.

 

“Filter”
means [***].

 

[***]

 

[***]

 

“Laws”
means all laws, statutes, rules, regulations, ordinances and other pronouncements having the effect of law of any federal, national,
multinational, state, provincial, county, city or other political subdivision, domestic or foreign, including any regulatory agency policy
or informal regulatory agency guidance, including, but not limited to, those related to medical device marketing, labeling and sales,
foreign corrupt practices, import and export controls.

 

[***]

 

[***]

 

“Net
Sales” has the same meaning as set forth in the License Agreement.

 

“Person”
means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership,
unincorporated organization, governmental authority, or other entity.

 

“Product”
has the same meaning as set forth in the License Agreement.

 

“Territories”
means the United States of America and its territories and possessions.

 

[***]

 

[***]

 

[***]Exhibit 10.2 

 

AIT
THERAPEUTICS INC.

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This
Executive Employment Agreement (“Agreement”) is made and entered into as of June 30, 2018, by and between AIT THERAPEUTICS
INC., a Delaware corporation (“Employer”), and Steven Lisi (“Executive”).

 

1.
Employment. Employer employs Executive, and Executive accepts employment with Employer, on the terms and conditions set forth
in this Agreement commencing on June 30, 2018 (“Effective Date”).

 

2.
Position; Scope of Employment The Company agrees to employ and the Executive agrees to serve as the Company’s Chief Executive
Officer and Chairman of the Board. The duties and responsibilities of the Executive shall include the duties and responsibilities as
the Company’s Board of Directors (“Board”) may from time to time assign to the Executive.

 

For
so long as Executive is Chief Executive Officer, the Company shall use commercially reasonable efforts, subject to applicable law and
regulations of any applicable stock exchange, to cause Executive to be nominated for election as a director and to be recommended to
the stockholders for election as a director.

 

The
Executive shall devote his full-time efforts and services to the business and affairs of the Company and its subsidiaries. Nothing in
this Section 1 shall prohibit the Executive from: (A) serving as a director or member of any other board, committee thereof of any other
entity or organization (except as such position may be with a directly competing company); (B) delivering lectures, fulfilling speaking
engagements, and any writing or publication relating to his area of expertise; (C) serving as a director or trustee of any governmental,
charitable or educational organization; (D) engaging in additional activities in connection with personal investments and community affairs,
including, without limitation, professional or charitable or similar organization committees, boards, memberships or similar associations
or affiliations (E) performing advisory activities, provided, however, such activities are not in competition with the business and affairs
of the Company or would tend to cast executive of Company in a negative light in the reasonable judgment of the Board.

 

2.1.
Rules and Regulations. During his employment with Employer, Executive agrees to observe and comply with Employer’s rules
and regulations (including Employer’s code of ethics and insider trading policy) as provided by Employer and as may be amended
from time to time by Employer and will carry out and perform faithfully such orders, directions and policies of Employer. To the extent
any provision of this Agreement is contrary to an Employer rule or regulation, as such may be amended from time to time, the terms of
this Agreement shall control.

 

3.
Employment Term. Executive’s term of employment (the “Employment Term”) shall commence upon the Effective
Date of this Agreement and shall terminate as provided in Section 5.

 

4.
Compensation. During the Employment Term, Employer shall pay to or provide compensation to Executive as set forth in this Section
4. All compensation of every description shall be subject to the customary withholding tax and other employment taxes as required with
respect to compensation paid to an employee.

 

4.1.
Base Salary. Employer shall pay Executive an annual base salary as established by the Board of Directors from time-to-time (“Base
Salary”). Executive’s Base Salary shall be payable in accordance with Employer’s regular payroll schedule, but
not less frequently than twice per month. The initial Base Salary shall be $450,000 per annum.

 

4.2.
Review. Executive’s Base Salary and duties shall be reviewed by the Compensation Committee of the Board of Directors at
least annually. During the review, duties will be outlined and compensation may be adjusted up at the discretion of the Compensation
Committee. The Base Salary may not be decreased during the Employment Term without the consent of the Executive. If Employer has no Compensation
Committee, then all references to the Compensation Committee shall refer to the Board of Directors.

 

    	Page 1

     

    

 

4.3.
Short-Term Incentive Compensation. In addition to the Base Salary provided for in sections 4.1 and 4.2, Executive is eligible
to receive a short-term incentive bonus (“STI”) equal to a percentage of his Base Salary in effect at the end of the
fiscal year, based partially on performance weighted bonus objectives established for Executive by the Board of Directors (which will
include both corporate objectives and individual objectives) for the fiscal year, such objectives to be discussed with Executive prior
to being established, and partially based on the discretion of the Board of Directors. The target STI each fiscal year shall be an amount
equal to 60% of the Base Salary in effect at the end of that fiscal year. However, the actual STI as determined by the Board of Directors
may range from 0% to higher than 100% of the Base Salary. STI shall for any year be payable on or before April 15 of the following year
and may include cash, stock options and restricted stock awards. If paid in stock options or restricted stock awards, STI shall be paid
separately from, and independently of, any long term equity incentive award as described in section 4.4 below. Any and all bonuses provided
to Executive pursuant to this paragraph shall be governed by the terms of a separate management bonus plan as adopted by the Board of
Directors in its sole discretion from time to time.

 

4.4.
Long Term Incentive Compensation. Executive shall be eligible to receive awards of stock options or restricted stock grants as
may be determined from time to time by the Board of the Directors or the Compensation Committee of the Board of Directors. On a date
to be determined by the Compensation Committee of the Board of Directors (but no later than March 31, 2018), Executive will be granted
options to purchase up to 400,000 shares of Employer’s Common Stock (“Options”), if appropriate, under Employer’s
Stock Option Plan (the “Plan”) pursuant to an option agreement in the form determined by the Board of Directors (the
“Option Agreement”). Subject to the terms and conditions of the Option Agreement, the Options will vest as to 25%
of the shares subject to the Option (the “Option Shares”) on the Effective Date, and thereafter 25% on December 31,
2018 and December 31st of each of the two ensuing years thereafter until vested in full (provided that the last vesting date shall occur
on a date before the Option expires). The exercise price of the Options will be equal to 100% of the fair market value of share of Employer
Common Stock on the date of grant, not to be less than $4.25 and the Options will expire on the tenth anniversary of the date of grant.
In the event of a conflict between the terms hereof and the terms of the Option Agreement and/or the Plan, the terms of the Option Agreement
and/or the Plan will control. The Board may, in its absolute discretion, choose to grant Executive additional options in the future.

 

4.5
Tax Matters Relating to Awards. The Compensation Committee shall be permitted to elect to have Employer cover any tax withholding
obligation by net share settlement of shares equal to the amount of Executive’s tax withholding liability unless a Rule 10b5-1
Plan is a viable option. Otherwise, such net settlement on vested shares for tax purposes shall be permitted upon finding that a Rule
10b5-1 Plan is not an alternative for Executive.

 

4.6.
Vacation and Sick Leave Benefits. Executive shall be entitled to accrue six (6) weeks of paid vacation annually. While Employer
encourages Executive to take vacation, if he does not use all vacation accrued in each calendar year, Executive may carry it over from
year to year; provided, however, that the maximum accrual of Executive’s vacation shall be capped at two times the
annual accrual rate. Once the cap is reached, Executive shall no longer accrue vacation until such time as he uses accrued vacation and
his accrued and unused vacation days fall below the cap, at which time he will again begin to accrue vacation at the appropriate accrual
rate. The value of any amount of vacation that would otherwise accrue but for the cap would be paid in cash to Executive. Any vacation
benefit granted or paid to Executive is based solely on his Base Salary. Executive shall be entitled to sick leave in accordance with
Employer’s sick leave policy, as amended from time to time.

 

4.7
Other Fringe Benefits. Executive shall participate in all of Employer’s fringe benefit programs in substantially the same
manner and to substantially the same extent as other similar employees of Employer, excluding only those benefits expressly modified
by the terms hereof.

 

4.8
Expenses. Executive shall be reimbursed for his reasonable business expenses, subject to the presentation of evidence that such
expenses are made in accordance with established policies adopted by Employer from time to time.

 

    	Page 2

     

    

 

4.9
Compensation From Other Sources. Any proceeds that Executive shall receive by virtue of qualifying for disability insurance, disability
benefits, or health or accident insurance shall belong to Executive. Executive shall not be paid Base Salary in any period in which he
receives benefits as determined and paid under Employer’s long-term disability policy. Benefits paid to Executive under Employer’s
short-term disability policy shall reduce, by the same amount, Base Salary payable to Executive for such period.

 

4.10
Medical Insurance. Executive shall be eligible to receive all benefits available to the Employer’s executives, including
Health, Dental and Vision Insurance to which other Employer executives or officers participate. The terms and conditions of the Executive’s
participation in Employer’s benefit plans, policies, programs, or perquisites shall be governed by the terms of each such plan,
policy, or program.

 

5.
Termination of Employment. Executive’s employment with Employer shall terminate on the earliest to occur of the following
(the date of termination of Executive’s employment being the “Termination Date”):

 

5.1
upon the mutual agreement of Employer and Executive in writing;

 

5.2
upon the Executive’s death;

 

5.3
upon delivery to Executive of a written notice of termination by Employer if Executive should suffer a disability or physical or mental
condition, which for the purposes of this Agreement, means Executive’s inability, for a period of ninety (90) consecutive days,
to substantially perform the essential functions of Executive’s duties as Chief Executive Officer, with or without a reasonable
accommodation. For purposes of determining whether Executive has a disability or physical or mental condition under this Section 5.3,
upon request Executive agrees to submit to Employer a medical certification regarding his health condition from his health care provider,
or submit to a medical exam by a health care provider selected by Employer and Executive for the sole purpose of evaluating Executive’s
ability to perform the essential functions of his position. Employer’s written notice of termination under this Section 5.3 shall
coincide with the date Executive qualifies for total disability payments under Employer’s long-term disability plan.

 

5.4
upon the date set forth in a written notice of termination for Cause delivered to Executive by Employer.

 

For
purposes of this Agreement, “Cause” is defined as follows: (a) willful or habitual breach of Executive’s duties,
provided that Employer shall give Executive notice of such breach and Executive shall not have cured such breach within thirty (30) days
of such notice; (b) fraud, dishonesty, deliberate injury or intentional material misrepresentation by Executive to Employer or any others;
(c) embezzlement, theft or conversion by Executive; (d) negligent unauthorized disclosure or other use of Employer’s trade secrets,
customer lists or confidential information; (e) habitual misuse of alcohol or any non-prescribed drug or intoxicant; (f) willful misconduct
that causes material harm to Employer; (g) willful violation of any other standards of conduct as set forth in Employer’s employee
manual and policies; (h) Executive’s conviction of or plea of guilty or nolo contendere to a felony or to a misdemeanor
involving moral turpitude; (i) continuing failure to communicate and fully disclose material information to the Board of Directors, the
failure of which would adversely impact the Employer or may result in a violation of state or federal law, including securities laws;
or (j) debarment by any federal agency that would limit or prohibit Executive from serving in his capacity for Employer under this Agreement.

 

5.5
upon the date set forth in a written notice of resignation delivered to Employer by Executive for Good Reason.

 

For
purposes of this Agreement, “Good Reason” is defined as one or more of the following: (a) without the consent of Executive,
Executive is assigned material duties that are materially inconsistent with Executive’s position, duties, responsibilities or status
as Chief Executive Officer of Employer, including any Change of Control, provided that Executive must advise the Board of Directors in
writing within fifteen (15) days of such assignment of duties that he believes the duties would give him the right to terminate his employment
for Good Reason and the Board of Directors does not withdraw or change such assignment within a reasonable period of time; or (b) without
the consent of Executive, Employer relocates Executive’s principal place of employment to a location further than 35 miles from
the Employer’s current principal offices.

 

    	Page 3

     

    

 

5.6
upon the date set forth in (a) a written notice of termination without Cause delivered to Executive by Employer; or (b) a written notice
of resignation for Good Reason delivered to Employer by Executive, if such written notice is provided within three (3) months prior to
a Change of Control or one (1) year following a Change in Control.

 

For
purposes of this Agreement, “Change in Control” means an event involving one transaction or a related series of transactions
in which one of the following occurs: (a) Employer issues securities equal to fifty percent 50% or more of Employer’s issued and
outstanding voting securities, determined as a single class, to any individual, firm, partnership or other entity, including a “group”
within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934; (b) Employer issues securities equal to fifty percent
50% or more of the issued and outstanding common stock of Employer in connection with a merger, consolidation or other business combination;
(c) Employer is acquired in a merger or other business combination transaction in which Employer is not the surviving company; or (d)
all or substantially all of Employer’s assets are sold or transferred to a third party that is not an affiliate of Employer.

 

5.7
upon the date set forth in a written notice of resignation delivered to Employer by Executive, other than a notice under Section 5.5
(Good Reason) or Section 5.6 (Change in Control);

 

5.8
upon the date set forth in a written notice of termination without Cause delivered to Executive by Employer, other than a notice under
Section 5.3 (Disability) or Section 5.4 (termination for Cause).

 

6.
Compensation Upon Termination.

 

6.1
Minimum Payments. Upon termination of Executive’s employment for any reason Executive shall be entitled to: (a) Base Salary
accrued through the Termination Date; (b) reimbursement of expenses incurred prior to termination of employment that are payable in accordance
with Section 4.8; (c) any benefits accrued or earned in accordance with the terms of any applicable benefit plans and programs of Employer,
including but not limited to accrued and unused vacation; and (d) any earned but unpaid STI bonus or other incentive compensation if,
and to the extent, the applicable management bonus plan expressly provides for payment following termination of employment.

 

6.2
Severance Payments for Termination Without Cause or for Resignation for Good Reason. If Executive’s employment is terminated
pursuant to Section 5.5 (Good Reason) or Section 5.8 (without Cause), in addition to the payments made under Section 6.1, Executive shall
be entitled to:

 

(a)
Base Salary: a sum equal to twenty-four (24) months of Base Salary in effect as of the Termination Date, payable in a lump sum cash payment
on the Termination Date.

 

(b)
STI: a lump sum cash payment equal to one and a half (1.5) times the Executive’s most recently established and earned annual STI
award, and

 

(c)
Equity Awards: all of the Executive’s outstanding options to acquire Employer’s common stock and restricted common stock
awards which have not vested as of the Termination Date shall become immediately vested as of the Termination Date.

 

(d)
Health and Welfare Benefits: Provided that the Executive timely elects continuation coverage (as defined under COBRA) under the Employer’s
medical and dental plans as in effect at the time of the Executive’s termination, the Employer shall pay the COBRA premiums for
Executive and his dependents under such plans (or any successor plans) until the earliest of i) the end of the eighteenth (18th)
month following the Executive’s termination, or ii) the date Executive secures subsequent employment with medical and dental
coverage. Executive shall provide at least five (5) business days advance written notice informing the Employer when Executive becomes
eligible for other comparable medical and dental coverage in connection with subsequent employment. In addition, if periodically requested
by the Employer, Executive will provide the Employer with written confirmation that Executive has not become eligible for comparable
medical and dental coverage.

 

    	Page 4

     

    

 

6.3
Severance Payments Related to Change of Control. If Executive’s employment is terminated pursuant to Section 5.6 because
Executive has resigned for Good Reason, or because Employer terminated Executive without Cause, in either case within three (3)
months prior to a Change of Control or within eighteen (18) months following of a Change of Control, in addition to the benefits under
Sections 6.1, Executive shall be entitled to:

 

(a)
A one-time grant of 650,000 shares of common stock,validly issued, fully paid and nonassessable

 

(b)
all the Executive’s outstanding options to acquire the Employer’s common stock or restricted stock awards which have not
vested as of the Termination Date shall become immediately vested as of the Termination Date,

 

(c)
Health and Welfare Benefits: Provided that the Executive timely elects continuation coverage (as defined under COBRA) under the Employer’s
medical and dental plans as in effect at the time of the Executive’s termination, the Employer shall pay the COBRA premiums for
Executive and his dependents under such plans (or any successor plans) until the earliest of i) the end of the twenty-fourth (24th)
month following the Executive’s termination, or ii) the date Executive secures subsequent employment with medical and dental
coverage. Executive shall provide at least five (5) business days advance written notice informing the Employer when Executive becomes
eligible for other comparable medical and dental coverage in connection with subsequent employment. In addition, if periodically requested
by the Employer, Executive will provide the Employer with written confirmation that Executive has not become eligible for comparable
medical and dental coverage.

 

6.4
Timing of Payments. Subject to the conditions set forth in Sections 6.5 (Release) and Section 13 (409A), all compensation under
sections 6.2 and 6.3 earned by and owing to Executive at the time of his termination of employment shall be paid to him on the Termination
Date. Subject to the conditions set forth in Sections 6.5 (Release) and Section 13 (409A), all other payments made to Executive under
this Agreement shall be due and payable as stated and, if not specified, in installments at least twice monthly at Employer’s sole
discretion and election.

 

6.5
Release. Executive acknowledges and agrees that payments under Section 6.2 or 6.3 shall fully and completely discharge any and
all obligations of Employer to Executive arising out of or related to: (a) Executive’s employment with, and/or separation from
employment with Employer; and/or (b) this Agreement. The payment(s) made hereunder shall constitute liquidated damages in lieu of any
and all claims which Executive may have against Employer or any of its officers, directors, employees, or other agents, except for any
obligations under the workers’ compensation laws including Employer’s liability provisions. Therefore, notwithstanding any
provision of this Agreement to the contrary, no payments or benefits shall be owed to Executive under Section 6.2 or Section 6.3 unless
Executive executes and delivers to Employer a release in the form attached hereto as Exhibit A (“Release”) within
forty five (45) days following the Termination Date, and any applicable revocation period has expired prior to the sixtieth (60th)
day following the Termination Date.

 

6.6
No Obligation to Seek Employment. Executive shall have no obligation to seek other employment following termination of his employment
with Employer nor shall any payment he receives from any subsequent employer reduce the payments to which he is entitled to under this
Agreement.

 

6.7
Section 280G. If a payment (including this tax reimbursement payment) by the Company is determined to be an “excess parachute
payment” within the meaning of Internal Revenue Code (“Code”) §280 and/or §4999, and Treasury Regs. §1.280G-1,
and an excise tax is imposed thereon under Code §4999, the Company shall immediately reimburse Executive for the amount of such
excise tax together with any additional income tax or excise tax attributable to the reimbursement of any excise taxes, as well as any
income taxes on the income tax on the excise tax reimbursement, etc., so that Executive is not out of pocket any excise tax expense nor
any income tax expense on such excise tax reimbursement.

 

    	Page 5

     

    

 

7.
Proprietary Information; Confidentiality.

 

7.1.
Confidential Information. Executive during the course of his duties will be handling financial, accounting, statistical, marketing
and personnel information of Employer and/or its customers or other third-parties. All such information is confidential and shall not
be disclosed, directly or indirectly, or used by Executive in any way, either during the term of this Agreement or at any time thereafter
except as required in the course of Executive’s employment with Employer. Executive agrees not to disclose to any others, or take
or use for Executive’s own purposes or purposes of any others, during the term of this Agreement, any of Employer’s Confidential
Information (as defined below). Executive agrees that these restrictions shall also apply to (a) Confidential Information belonging to
third parties in Employer’s possession; and (b) Confidential Information conceived, originated, discovered or developed by Executive
during the term of this Agreement. “Confidential Information” means any Employer proprietary information, trade secrets
or know-how, and any other information relating to Employer, its subsidiaries, or affiliates of any kind, type or nature (whether written,
stored on magnetic or other media, or oral), including, but not limited to, research, plans, services, customer lists, Employer’s
computer programs or computer software, marketing, finances or other business information that has been compiled, prepared, devised,
developed, designed, discovered, or otherwise learned by Executive during the course of his employment and/or disclosed to Executive
by Employer, either directly or indirectly, in writing, orally, or by observation of any business conduct. Confidential Information does
not include any of the foregoing items that has become publicly known and made generally available through no wrongful act of Executive.
Executive further agrees not to use improperly or disclose or bring onto the premises of Employer any trade secrets of another person
or entity during the term of this Agreement.

 

7.2.
Return of Property. Executive agrees that upon termination of employment with Employer, Executive will deliver to Employer all
devices, records, data, disks, computer files, notes, reports, proposals, lists, correspondence, materials, equipment, other documents
or property, or reproductions of any aforementioned items developed by Executive pursuant to employment with Employer or otherwise belonging
to Employer, its successors or assigns.

 

7.3.
Employment Information. Executive represents and warrants to Employer that information provided by Executive in connection with
his employment and any supplemental information provided to Employer is complete, true and materially correct in all respects. Executive
has not omitted any information that is or may reasonably be considered necessary or useful to evaluate the information provided by Executive
to Employer. Executive shall immediately notify Employer in writing of any change in the accuracy or completeness of all such information.

 

7.4.
Other Agreements. Executive represents that the performance of all the terms of this Agreement will not breach any agreement to
keep in confidence proprietary information acquired by Executive in confidence or in trust prior to employment with Employer. Executive
has not and shall not: (a) disclose or use in the course of his employment with Employer, any proprietary or trade-secret information
belonging to another; or (b) enter into any oral or written agreement in conflict with this Agreement.

 

7.5
Communications with Government Authorities. Nothing in this in this Agreement is intended to discourage or restrict Executive
from communicating with, or making a report with, any governmental authority regarding a good faith belief of any violations of law or
regulations based on information that Executive acquired through lawful means in the course of his employment, including such disclosures
protected or required by any whistleblower law or regulation of the Securities and Exchange Commission, the Department of Labor, or any
other appropriate governmental authority. Furthermore, nothing in this Agreement is intended to discourage or restrict Executive from
reporting any theft of trade secrets pursuant to the Defend Trade Secrets Act of 2016 (the “DTSA”) or other applicable
state or federal law. The DTSA prohibits retaliation against an employee, contractor or consultant because of whistleblower activity
in connection with the disclosure of trade secrets, so long as any such disclosure is made either (A) in confidence to an attorney or
a federal, state, or local government official and solely to report or investigate a suspected violation of the law, or (B) under seal
in a complaint or other document filed in a lawsuit or other proceeding. Executive agrees that if Executive believes that any Employer
employee, consultant, contractor or any third party has misappropriated or improperly used or disclosed trade secrets or Confidential
Information, Executive will report such activity to Employer’s Board of Directors or otherwise in accordance with any communication
protocols or policies established by the Employer.

 

    	Page 6

     

    

 

8.
Duty of Loyalty; Fiduciary Duty; Covenant Not to Unfairly Compete.

 

8.1
Obligations During Employment. During the term of this Agreement, Executive has a duty of loyalty and a fiduciary duty to Employer.
Executive shall not, directly or indirectly, whether as a partner, employee, creditor, stockholder, or otherwise, promote, participate,
or engage in any activity or other business which is directly competitive to the current operations of Employer or the currently contemplated
future operations of Employer. The obligation of Executive not to compete with Employer shall not prohibit Executive from owning or purchasing
less than 5% of the outstanding voting securities of any company whose securities are regularly traded on a recognized stock exchange
or on over-the-counter market.

 

8.2
Obligations Post-Employment. To the fullest extent permitted by law, upon the termination of Executive’s employment with
Employer for any reason, Executive shall not use any of Employer’s confidential proprietary or trade secrets information to directly
or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, director, or any
other individual or representative capacity, engage or participate in any business, wherever located, that is in direct competition with
the business of Employer.

 

9.
Inventions; Ownership Rights. To the fullest extent permitted by law, Executive agrees that all ideas, techniques, inventions,
systems, formulas, discoveries, technical information, programs, know-how, prototypes and similar developments (“Developments”)
developed, created, discovered, made, written or obtained by Executive in the course of or as a result, directly or indirectly, of performance
of his duties hereunder, and all related industrial property, copyrights, patent rights, trade secrets, moral rights and other forms
of protection with respect thereto, shall be and remain the property of Employer. Executive agrees to execute or cause to be executed
such assignments and applications, registrations and other documents and to take such other action as may be requested by Employer to
enable Employer to protect its rights to any such Developments. If Employer requires Executive’s assistance under this Section
9 after termination of this Agreement, Executive shall be compensated for his time actually spent in providing such assistance at an
hourly rate equivalent to the prevailing rate for such services and as agreed upon by the parties.

 

 10. Non-Solicitation; Post-Termination Cooperation.

 

10.1
Customers. During the term of this Agreement, Executive has a duty of loyalty and a fiduciary duty to Employer. While employed
by Employer, Executive shall not divert or attempt to divert (by solicitation or other means), whether directly or indirectly, Employer’s
customers for the purpose of inducing or encouraging them to sever their relationship with Employer or to solicit them in connection
with any product or service competing with those products and services offered and sold by Employer. Also, to the fullest extent permissible
under applicable law, following termination of Executive’s employment with Employer for any reason, Executive agrees not use any
Confidential Information to directly or indirectly divert or attempt to divert (by solicitation or other means) Employer’s customers
for the purpose of inducing or encouraging them to sever their relationship with Employer or to solicit them in connection with any product
or service competing with those products and services offered and sold by Employer.

 

10.2
Employees. To the fullest extent permissible under applicable law, Executive agrees that both during the term of this Agreement,
and for a period of one (1) year after the Termination Date, Executive shall not take any action to induce employees or independent contractors
of Employer to sever their relationship with Employer and accept an employment or an independent contractor relationship with any other
business. However, this obligation will not affect any responsibility Executive may have as an employee of Employer with respect to the
bona fide hiring and firing of Employer personnel.

 

10.3
Post-Termination Cooperation. For a period of one (1) month following any termination of this Agreement, Executive will make himself
available and assist Employer, as reasonably requested, with respect to prior services, transition of duties, and intellectual property
filings and protection.

 

    	Page 7

     

    

 

11.
Arbitration; Remedies. Executive and Employer agree that any dispute between the parties (including any affiliate, successor,
predecessor, contractors, employees, and agents of Employer) that may arise from Executive’s employment with Employer or termination
of Executive’s employment with Employer, and/or regarding the rights or obligations of the parties under this Agreement, will be
submitted to binding arbitration. The arbitration requirement applies to all statutory, contractual, and/or common law claims arising
from the employment relationship including, but not limited to, claims arising under Title VII of the Civil Rights Act of 1964; the Age
Discrimination in Employment Act; the Equal Pay act of 1963; New York Labor Law; the Fair Labor Standards Act, the American With Disabilities
Act, and other applicable federal and state employment laws. Both Employer and Executive shall be precluded from bringing or raising
in court or another forum any dispute that was or could have been submitted to binding arbitration. This arbitration requirement does
not apply to claims for workers’ compensation benefits, claims arising under ERISA, or claims for any provisional or injunctive
relief remedies as set forth in the New York Code of Civil Procedure (or any statute or law of similar effect concerning provisional
or injunctive relief remedies in any other applicable jurisdiction). The parties agree that, in the event of a breach or threatened breach
of Sections 7 through 10 of this Agreement by Executive, monetary damages alone would not be an adequate remedy to Employer for the injury
that would result from such breach, and that Employer shall be entitled to apply to any court of competent jurisdiction for specific
performance and/or injunctive relief (without posting bond or other security) in order to enforce or prevent any violation of such provisions
of this Agreement. Executive further agrees that any such injunctive relief obtained by Employer shall be in addition to monetary damages.

 

Binding
arbitration under this Agreement shall be conducted in New York County, New York and shall be conducted before a neutral arbitrator selected
by both parties and shall otherwise be conducted in accordance with the American Arbitration Association’s “National Rules
for the Resolution of Employment Disputes”. Where required by law, Employer shall pay all additional costs peculiar to the arbitration
to the extent such costs would not otherwise be incurred in a court proceeding. Each party shall pay their own attorney’s fees
and costs. The parties will be permitted to conduct discovery as provided by the New York Code of Civil Procedure. The arbitrator shall,
within thirty (30) days after the conclusion of the arbitration, issue a written award setting forth the factual and legal bases for
his or her decision and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

 

NOTE:
THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES
RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP.

 

12.
Actions Contrary to Law; Blue Pencil. Nothing contained in this Agreement shall be construed to require the commission of any
act contrary to law, and whenever there is any conflict between any provision of this Agreement and any statute, law, ordinance, or regulation,
contrary to which the parties have no legal right to contract, then the latter shall prevail; but in such event, the provisions of this
Agreement so affected shall be curtailed and limited only to the extent necessary to bring it within legal requirements. The parties
hereby acknowledge that the restrictions set forth in Sections 7 through 10 have been specifically negotiated and agreed to by the parties
hereto and if the scope or enforceability of any such section is in any way disputed at any time, and should a court find that such restrictions
are overly broad, the court may modify and enforce the covenant to the extent that it believes to be reasonable under the circumstances.

 
13.
Section 409A Compliance.

 

13.1
Conditions to Payment. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this
Agreement that constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986,
as amended (“Code”) and the regulations and other guidance thereunder and any state law of similar effect (collectively,
“Section 409A”) shall not commence in connection with your termination of employment unless and until you have also incurred
a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h) (“Separation From Service”),
unless the Company reasonably determines that such amounts may be provided to you without causing you to incur the additional 20% tax
under Section 409A. It is intended that each installment of severance pay provided for in this Agreement is a separate “payment”
for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that severance payments set
forth in this Agreement satisfy, to the greatest extent possible, the exceptions from the application of Section 409A provided under
Treasury Regulation Sections 1.409A-1(b)(4) and 1.409A-1(b)(9). If the Company (or, if applicable, the successor entity thereto) determines
that any payments or benefits constitute “deferred compensation” under Section 409A and you are, on the termination of service,
a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i)
of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A,
the timing of the payments and benefits shall be delayed until the earlier to occur of: (a) the date that is six months and one day after
your Separation From Service, or (b) the date of your death (such applicable date, the “Specified Employee Initial Payment Date”).
On the Specified Employee Initial Payment Date, the Company (or the successor entity thereto, as applicable) shall (i) pay to you a lump
sum amount equal to the sum of the payments and benefits that you would otherwise have received through the Specified Employee Initial
Payment Date if the commencement of the payment of such amounts had not been so delayed pursuant to this Section and (ii) commence paying
the balance of the payments and benefits in accordance with the applicable payment schedules set forth in this Agreement. All reimbursements
provided under this Agreement shall be subject to the following requirements: (i) the amount of in-kind benefits provided or reimbursable
expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement
in any other taxable year, (ii) all reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement
be paid after the last day of the taxable year following the taxable year in which the expense was incurred, and (iii) the right to reimbursement
or in-kind benefits is not subject to liquidation or exchange for any other benefit. It is intended that all payments and benefits under
this Agreement shall either comply with or be exempt from the requirements of Section 409A, and any ambiguity contained herein shall
be interpreted in such manner so as to avoid adverse personal tax consequences under Section 409A.

 

    	Page 8

     

    

 

14.
Miscellaneous.

 

14.1.
Notices. All notices and demands of every kind shall be personally delivered or sent by first class mail to the parties at the
addresses appearing below or at such other addresses as either party may designate in writing, delivered or mailed in accordance with
the terms of this Agreement. Any such notice or demand shall be effective immediately upon personal delivery or three (3) days after
deposit in the United States mail, as the case may be.

 

	EMPLOYER:	AIT
    THERAPEUTICS INC.
	 	500
                                            Mamaroneck Road

    Harrison,
New York

	 	 
	EXECUTIVE:
    	Steven
    Lisi
	 	9
                                            McGann Drive

    Rockville
    Centre, New York

 

14.2.
Attorneys’ Fees; Prejudgment Interest. If the services of an attorney are required by any party to secure the performance
hereof or otherwise upon the breach or default of another party to this Agreement, or if any judicial remedy or arbitration is necessary
to enforce or interpret any provision of this Agreement or the rights and duties of any person in relation thereto, to the extent permitted
by law, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and other expenses, in addition to any other
relief to which such party may be entitled. Any award of damages following judicial remedy or arbitration as a result of the breach of
this Agreement or any of its provisions shall include an award of prejudgment interest from the date of the breach at the maximum amount
of interest allowed by law.

 

14.3.
Choice of Law, Jurisdiction, Venue. This Agreement is drafted to be effective in the State of New York, and shall be construed
in accordance with New York law. The exclusive jurisdiction and venue of any legal action by either party under this Agreement shall
be the County of New York, New York.

 

14.4.
Amendment, Waiver. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by
Executive and Employer. A waiver of any term or condition of this Agreement shall not be construed as a general waiver by Employer. Failure
of either Employer or Executive to enforce any provision or provisions of this Agreement shall not waive any enforcement of any continuing
breach of the same provision or provisions or any breach of any provision or provisions of this Agreement.

 

    	Page 9

     

    

 

14.5
Change in the Time and Form of Payment. Any amendment that proposes to delay the time or form of the payment of any deferred compensation
payable pursuant to the terms of this Agreement shall be subject to the following restrictions:

 

(a)
Any election to amend the terms of this Agreement to defer the time or form of payment of deferred compensation hereunder shall not take
effect for twelve (12) months after the date on which the election to amend the time of form of payment is made: and

 

(b)
Any election to amend the terms of this Agreement to defer the payment of deferred compensation payable hereunder shall require that
the first payment of any deferred compensation payable hereunder be deferred for a period of not less than five (5) years from the date
such payment would have been made but for the amendment of the Agreement to defer the payment date.

 

14.6.
Assignment; Succession. It is hereby agreed that Executive’s rights and obligations under this Agreement are personal and
not assignable. Further, neither Executive, nor beneficiary, nor any other person entitled to payments hereunder shall have the power
to transfer, assign, anticipate, mortgage or otherwise encumber in advance any of such payments, nor shall such payments be subject to
seizure for the payment of public or private debts, judgment, alimony or separate maintenance or be transferable by operation of law
in event of bankruptcy, insolvency or otherwise. This Agreement contains the entire agreement and understanding between the parties to
it and shall be binding on and inure to the benefit of the heirs, personal representatives, successors and assigns of the parties hereto.

 

14.7.
Independent Covenants. All provisions herein concerning unfair competition and confidentiality shall be deemed independent covenants
and shall be enforceable without regard to any breach by Employer unless such breach by Employer is willful and egregious.

 

14.8.
Entire Agreement. This document constitutes the entire agreement between the parties, all oral agreements being merged herein,
and supersedes all prior representations. There are no representations, agreements, arrangements, or understandings, oral or written,
between or among the parties relating to the subject matter of this Agreement that are not fully expressed herein. This Agreement supersedes
and replaces its entirety the employment letter, dated December 14, 2016, between Executive and Employer, which employment letter shall
be terminated effective as of the date hereof.

 

14.9.
Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable,
the remainder of the Agreement which can be given effect without the invalid provision shall continue in full force and effect and shall
in no way be impaired or invalidated.

 

14.10.
Captions. All captions of sections and paragraphs in this Agreement are for reference only and shall not be considered in construing
this Agreement.

 

14.11
Certain Definitions. As used in this Agreement, the term “affiliate” means, with respect to a specified person
or entity, any other person or entity that directly or indirectly controls, is controlled by, or is under common control with the specified
person or entity. For purposes of the preceding sentence, “control” when used with respect to an entity means the
power to direct the management and policies of the entity, directly or indirectly, whether through ownership of voting securities, by
contract or otherwise. The terms “affiliated”, “unaffiliated”, and “non-affiliated”
shall have meanings correlative to the foregoing.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	Page 10

     

    

 

THIS
AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH AFFECTS YOUR LEGAL RIGHTS AND MAY BE ENFORCED BY THE PARTIES.

 

	 	EMPLOYER:

     

    AIT
    THERAPEUTICS.

	 	 
	 	/s/
                                            

    

    

	 	By:
	 	 
	 	EXECUTIVE:
	 	 
	 	 
		

    Steven
    Lisi, Individually

 

    	Page 11

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