Document:

Blue Sphere Corporation 8-K

Exhibit 10.3

 

PERFORMANCE
GUARANTEE AGREEMENT

THIS
PERFORMANCE GUARANTEE AGREEMENT, dated as of 4 December 2017 (this “Agreement”), is by and among:

		1.	BLUE
                                         SPHERE BRABANT B.V., a private company with limited liability, incorporated under
                                         the laws of the Netherlands, having its seat in Amsterdam, and its registered office
                                         at Singel 250, 1017AB Amsterdam, the Netherlands, registered with the Dutch Chamber of
                                         Commerce under registration number 66863643 (the “Client”);

		2.	Anaergia
                                         B.V., a private company with limited liability, incorporated under the laws of the
                                         Netherlands, having its seat in Amsterdam, and its registered office at Zwollestraat
                                         2 b, Oldenzaal, NL 7575 EP, the Netherlands, registered with the Dutch Chamber of Commerce
                                         under registration number 818914324 (the “SM&O Contractor”); and

Client
and Contractor are jointly defined as the “Parties”.

WHEREAS:

		(a)	On
                                         the date of this agreement, Client and Contractor entered, into a turnkey agreement for
                                         the design, construction and delivery of a biogas plant with a capacity of 2,923 Nm3
                                         /h or respectively 24,000,000 Nm3/year of upgraded biomethane including all machinery,
                                         processes and equipment necessary for its complete functionality and full operation (the
                                         “Plant”) to be built and operated in in Pastoor P. Thijssenlaan 41-43
                                         in Sterksel, entered in the land register as municipality of Heeze-Leende, section H
                                         number 1193 (in part) (the “EPC Agreement”) and the Parties entered
                                         into a Service, Maintenance and Operation Agreement relating to Contractor’s obligations
                                         to provide certain operation, service and maintenance functions on the Plant once constructed
                                         in accordance with the EPC Agreement (the “O&M Agreement”);

		(b)	Capitalized
                                         terms used herein without definition shall have the meaning ascribed thereto in the O&M
                                         Agreement;

		(c)	Client
                                         requires Contractor to provide a Performance Guarantee (as hereinafter defined) regarding
                                         the minimum annual gross upgraded biogas production from the Plant; and

		(d)	Contractor is willing to provide
                                         such a Performance Guarantee in accordance with the terms below.

Now
therefore, the Parties have agreed and accepted as follows:

Section
1. Contractor hereby guarantees (the “Performance Guarantee”) from the Substantial Completion Date:

		1.1	a
                                         gross annual production of upgraded biomethane for a term of twelve years (the “Guaranteed
                                         Operation Level”). The actual upgraded biomethane output will be measured in
                                         accordance with the provisions of Section 2 below. The Guaranteed annual production of
                                         upgraded biomethane is defined as follows:

Guaranteed
Operation Level = 24,000,000 Nm3/year x 94,5% = 22,680,000 Nm3/year

Excluded
events will be deducted from the guaranteed yearly production by adjusting the performance guarantee level proportionally by the
time-extent of each excluded event. For the avoidance of doubt, all excluded events shall be reported monthly. At the end of each
year, the total sum of all excluded event hours will be calculated and deducted from the design availability of 8,200 operation
hours per year. The guaranteed annual production with taking into account the excluded events should be calculated as following:

    	  

    	 

    

 

 

Guaranteed
Operation level, nM3/year =22,680,000 nM3/year x ((8,200-Y)/8,200)

Where
:

Y,
hours – the total sum of all excluded event hours during the year.

8,200
hours – design operation hours per year.

Reduced
Methane Potential of the feedstock processed in the same year due to lower quantity or quality will reduce the guaranteed yearly
Biomethane production proportionally by applying the actual Biomethane Potential of the relevant feedstocks processed over the
year to the design parameters given in Annex 6 (“Table of Quality and Quantity of Substrates and Deviations”).

		1.2.	An
                                         annual maximum consumption of consumables required for the operation and maintenance
                                         of the facility as follows (the “Guaranteed Maximum Consumption of Consumables”):

	Consumable	Expected
    Consumption	Guaranteed
    Maximum Consumption (+10%)	 
	Electricity	14,984	16,482	MWh/year
	Water	5,131	5,644	m3/year
	Caustic
    Soda (20%)	366	403	m3/year
	Diesel	53,159	58,475	l/year

 

Section
2. At the end of each year of operation following the Substantial Completion Date, the Parties will calculate the actual upgraded
biogas output of the Plant and actual consumption of the consumables based on the following documents and information:

		(a)	The
                                         total amount of upgraded biogas produced by the Biogas Upgrade System will be recorded
                                         based on the online, control system measuring and metering the gas production (“Gas
                                         Control System”) as detailed under subsection (b) below

		(b)	Reports
                                         from the Control Systems will be printed indicating the total amount of upgraded biogas
                                         produced during the preceding 12-month period;

		(c)	Actual
                                         invoices paid or due to be paid for the consumables during the preceding 12-month period;

		(d)	Contractor
                                         and Client will then sign a protocol indicating the actual annual upgraded biogas output
                                         and consumable’s consumption;

		(e)	If
                                         Client refuses to sign the protocol, Contractor will send to Client a detailed report
                                         supported by all relevant documents and/or evident substantiating its calculation and
                                         the parties will submit the dispute to the Ruler for adjudication in accordance with
                                         the rules and procedures applicable to the Ruler as set forth in this Agreement.

Section
3. The Guaranteed Operational Level and Guaranteed Maximum Consumption of Consumables is subject to the following conditions
and qualifications:

		(a)	Correspondence
                                         of the feedstock to the required quantity and quality as defined in Annex 6 to the O&M
                                         Agreement (subject to any permitted variations). In case of a lack of correspondence
                                         (subject to any permitted variations), Client acknowledges that actual upgraded biogas
                                         output may decrease below the Guaranteed Operational Level. If so and such decrease is
                                         attributable to such lack of correspondence (subject to any permitted variations), Contractor
                                         shall bear no liability in respect of such decrease. To bring the actual upgraded biogas
                                         output back to the Guaranteed Operational Level, Client may correct the quality and quantity
                                         of feedstock supplied to the Plant up to the respective specification defined in the
                                         contractual feedstock specification as given in Appendix 6 If the Client fails to deliver
                                         feedstock as per the contractual feedstock specification (quality and quantity) given
                                         in Appendix 6 the Guaranteed Operational Level and Guaranteed Maximum Consumption of
                                         Consumables will need to be re-calculated based on the actual feedstock data.

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		(b)	Compliance
                                         with all parameters and conditions of the Plant’s Manual of Operation, all reasonable
                                         instructions given by Contractor’s personnel and all contractual and technical
                                         requirements relating to the operation of the Plant; provided, however, this Section
                                         3(b) shall be inapplicable in the event the Plant is operated by Contractor, a subcontractor,
                                         or an affiliate of Contractor.

		(c)	If the
                                         Plant is operated by an entity or person other than Contractor or an affiliate or subcontractor,
                                         then (i) Client (or other entity operating the Plant) has employed a qualified operator
                                         (i.e., a person who has received training provided for in Section 5.1.12 of the EPC Agreement)
                                         and (ii) the operator must have the skills and competencies to manage the tasks detailed
                                         within the Manual of Operation provided to Client as a part of the EPC Agreement.

		(d)	Contractor
                                         or his affiliate is performing the S&M Service unless Contractor’s engagement
                                         to perform S&M Service is validly terminated under the O&M Agreement or Contractor
                                         has breached any of its S&M Service obligations under the O&M Agreement.

		(e)	The
                                         availability of a continuous, 24-hour remote control monitoring of the Plant or in case
                                         of a disruption the restoration of such monitoring as soon as commercially practicable.

Section
4. The Parties agree that the occurrence and volume of any claim for compensation shall be subject to the compliance with
the terms and conditions set forth in Section 5 below. Contractor shall ensure that the Insurance Policy shall be in the form
and substance set forth in Annex 8 hereto. Contractor shall further ensure that the Lender’s advisor shall be provided with
sufficient documentation to be able to perform the required review prior to the issuance of its statement as to the compliance
of the Insurance policy with the terms set forth herein and to be able to use the claims under such Insurance Policy as a pledge
or otherwise as a security in favor of the Lender. Once issued, any subsequent changes to the Insurance Policy shall have any
effect on Client’s claims hereunder only after such change shall have been approved in writing by Client. Should the Insurance
Policy be issued or subsequently modified in breach of this Section 4, Client’s claims for compensation shall be governed
exclusively by the terms hereof and any reference to the Insurance Policy limiting Client’s claims hereunder shall be deemed
void.

Section
5a. Should the upgraded biogas output be less than the Guaranteed Operational Level, it is agreed as follows:

		(a)	Contractor
                                         undertakes to pay Client the total rate combined in sum of SDE rate, upgraded biogas
                                         market price and green certificate rate to the Plant (limited to a maximum of 74€/MWh),
                                         multiplied by the difference in Nm3 of upgraded biogas between the Guaranteed Operational
                                         Level and the actual upgraded biogas output of the Plant (the “Compensation”);

		(b)	Should
                                         any of the insured (co-insured) under the Insurance Policy receive any amount under the
                                         business interruption policy (the “Satisfied Claim”), a portion of
                                         Client’s claim for Compensation of the business interruption losses and/or loss
                                         of revenues for other reasons covered by the business interruption policy in the amount
                                         equivalent to the Satisfied Claim shall cease and be deemed to be fully satisfied (the
                                         “Ceased Claim”). In the event that the Ceased Claim was previously
                                         satisfied by Contractor, Client shall be obliged to return the amount corresponding to
                                         the paid Ceased Claim to Contractor without undue delay. For the avoidance of doubt,
                                         it is understood that the amount, which Client shall keep after the Ceased Claim is repaid
                                         (if repaid) shall in no event be less than the Compensation calculated according Section
                                         5(a). Client shall promptly inform the Lender on the occurrence of any Ceased Claim after
                                         it becomes aware of its existence.

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		(c)	Contractor
                                         shall keep the Insurance Policy valid and effective for no less than twelve years after
                                         the Substantial Completion Date and shall provide to Client a confirmation issued by
                                         the insurer providing the Insurance Policy stating the same without undue delay after
                                         being notified to do so. Contractor shall inform Client without undue delay on any claim
                                         made under the Insurance Policy and on any monies paid under the Insurance Policy on
                                         account of the occurrence of the insured risk. Should Contractor default on its obligation
                                         to maintain a valid and effective Insurance Policy as stated above, Contractor’s
                                         obligations to pay the Compensation to Client shall remain intact with any reference
                                         to Insurance Policy hereunder deemed void as of the moment of premature termination or
                                         failure by Contractor to maintain the Insurance Policy.

Section
5b

Should
the actual annual consumption of the consumables be higher than the Guaranteed Maximum Consumption, it is agreed that Contractor
undertakes to compensate Client the difference in cost between the Guaranteed Maximum Consumption and actual annual consumption
according to the annual average market price of the consumables.

Section
5c

It
is understood and agreed that the following limits shall apply to any compensation due from the Contractor and their Subcontractors
to the Client under the terms of this Agreement:

The
total compensation applicable to any one (1) year of operation shall not exceed the total net yearly fixed fee due to the Contractor
as per Article 15.1 of the SM&O Agreement

Section
5d

In the
event that the compensation cap is reached and the SM&O Services still not compliant the Client can claim against the Performance
Bond provided by the Contractor. For the avoidance of doubt, this is the only circumstance the Client can call the Performance
bond except for gross breach of contract by the Contractor as defined in the SM&O Agreement.

Section
6. It is understood and agreed that the Performance Guarantee shall not apply in any case of fraud or gross negligence by
Client and in connection with the following conditions (together with cases of fraud and gross negligence, each, an “Excluded
Event”):

		i.	any interruption
                                         to the energy supply network, including interruptions due to energy supply companies
                                         cutting off electricity supplies to guarantee grid security (so called grid security
                                         management), or breakdown of the feed-in meter;

		ii.	any works
                                         or alterations in the Plant, including any interruption to performance caused by such,
                                         performed by Client which materially differ from those specified or approved in writing
                                         by Contractor;

		iii.	third
                                         party influences such as vandalism and theft;

		iv.	technical
                                         defects and power surges caused by outside sources;

		v.	war, warlike
                                         events, civil war, revolution, rebellion, insurrection, acts of government or civil unrest
                                         or similar events;

		vi.	earthquakes,
                                         nuclear attack, nuclear radiation or radioactive substances;

		vii.	floods
                                         and/or increased groundwater levels, or any similar events;

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		viii.	any
                                         other Force Majeure Event (as defined below);

		ix.	any effects
                                         of corrosive gases or particulates produced by any other facility on, or surrounding,
                                         the site;

		x.	any reduction
                                         in the Services or Plant output instructed by the Client, any utility operator or any
                                         governmental authority

		xi.	any reduction
                                         in the Service or Plant output resulting from a change in law, legislation or any other
                                         statutory measure, or;

		xii.	any defect
                                         and deficiencies in any part of the Plant provided by the Client, or any failure of the
                                         Client to meet their stated obligations in relation to this Agreement (such as but not
                                         limited to digestate discharge, gas offtake, removal of unsuitable feedstock, utilities).

The
Contractor shall promptly notify the Client upon become aware of an Excluded Event. The Contractor shall keep accurate records
of its extents and implications that shall be submitted to the Client.

Section
7. SEVERABILITY OF PROVISIONS - REPRESENTATIONS. In the event that

one
of the terms or conditions of this Agreement is deemed invalid or in any case not executable, such circumstance shall not entail
the invalidity of the remaining terms and conditions of the Agreement, which shall continue to be fully valid and effective. The
Parties warrant that they have actually discussed, negotiated and agreed each individual and specific clause of this Agreement.
On conclusion of the negotiations, the Parties decided to sign two original copies of the Agreement.

Section
8. AMENDMENTS. 

Any
derogation of or amendment to the Agreement shall be valid and effective only if set forth in a written document duly signed by
the Parties.

Section
9. NOTIFICATION AND PROCESSING OF DATA

All
communications and the other notifications under the Agreement shall be formulated in writing and shall be deemed duly notified
if delivered personally, including by courier, or if sent by registered letter with return receipt and if transmitted by e-mail
to the Parties at the following addresses:

[  ]

Section
10. FORCE MAJEURE EVENT

10.1       The
following events constitute force majeure (each a “Force Majeure Event”) so long as such events are not reasonably
foreseeable and are beyond the control of the affected party : acts of God; strikes, lockouts or other industrial disturbances;
acts of public enemies; orders or restraints of any kind of the government of the United States of America or of the State or
any state or any of their departments, agencies, political subdivisions or officials, or any civil or military authority; insurrections;
civil disturbances; riots; epidemics; landslides; lightning; earthquakes; fires; hurricanes; tornadoes; storms; droughts; floods;
arrests; restraint of government and people; explosions; breakage, malfunction or accident to facilities, machinery not comprising
the Plant, transmission pipes or canals; partial or entire failure of utilities; shortages of labor, materials, supplies or transportation.

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10.2       In
the event that for any period of time after the Substantial Completion Date and up to a maximum of 360 consecutive days, the Plant
is completely inoperable due to the occurrence of a Force Majeure Event, Contractor shall immediately notify Client with a copy
to Lender of such Force Majeure Event in reasonable detail. Contractor ‘s obligations under this Agreement shall be suspended
from the date of such Force Majeure Event until it is no longer in existence; provided that Contractor complies with the obligations
set forth in Section 10.4 of this Agreement; provided, further, that Contractor shall at all times use all reasonable efforts
to ensure that the Project commences partial operation, as well as full operation, as soon as possible after the Force Majeure
Event occurs. Contractor shall provide Client with notice to Lender with periodic updates, at such intervals as Client may request,
but in no event less frequently than monthly, on the status of the Force Majeure Event and the steps that Contractor is taking
to restore the Plant to full operation. Contractor shall have the right to terminate this Agreement by written notice in the event
that the Force Majeure Event lasts for more than 360 consecutive days.

10.3       Notwithstanding
anything else to the foregoing, the following shall not be deemed Force Majeure Events:

		(i)	the
                                         absence of materials, manpower or service, unless such absences are attributable to an
                                         event of force majeure

		(ii)	site
                                         closures imposed by the competent authorities as a result of failure on the part of Contractor
                                         to comply with applicable legislation and regulations

		(iii)	strikes
                                         limited to the establishments and employees of Contractor and Subcontractors, including
                                         the states of agitation, and participation by employees of Contractor and Subcontractors
                                         in strikes of any kind that are not of a national and sectoral nature.

10.4       The
Party affected by an event of Force Majeure shall not be deemed to have defaulted only if:

		(i)	it
                                         informs the other Party of the Event of Force Majeure within 24 (twenty-four) hours of
                                         the occurrence of the Event, providing an adequate explanation of the Event of Force
                                         Majeure and its foreseeable duration;

		(ii)	it
                                         has in full effect and force an insurance policy covering up to $2,500,000 of the damage,
                                         loss and/or claims caused by or related to such Event of Force Majeure, it makes all
                                         relevant communications to the respective insurance companies in a proper and timely
                                         manner and uses its best efforts to obtain and transfer the proceeds of such policy to
                                         Client after a claim is duly made therefor; and

		(iii)	it
                                         has done all in its power to prevent or mitigate the Event of Force Majeure that is an
                                         obstacle to its fulfilment.

10.5       Force
Majeure Events which only partly prevent the fulfilment of the contractual obligation of one Party shall not release the said
Party from its obligation to fulfil obligations that are not hindered by the said Force Majeure Event.

Section
11. ASSIGNMENT OF RIGHTS

Except
to or at the direction of the Lender, to or at the direction of any party purchasing or benefiting from the investment tax credit
applicable to the Plant or any party purchasing the Plant and as set forth in this Section 11, this Agreement may be assigned
only with the prior written consent of the other Party which consent shall not be unreasonably withheld. The Client may collaterally
assign and/or pledge this Agreement and any rights or obligations thereunder to any finance provider or any trustee or agent of
any financer as collateral security; the SM&O Contractor shall execute and deliver to such financer any consents and/or other
documents and/or any changes to this Agreement reasonably requested by such financer. Any additional costs resulting from any
such action will result in a reasonable change of contract price and could cause a project delay and may require an extention
to the liquidated damages schedule

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Notwithstanding
the foregoing, Client may, without prior consent, assign its rights hereunder to a lender and/or trustee acting on behalf of a
lender, or any financing entity, which acquires a security interest in Client or the Plant (collectively, the “Security
Lenders”) in connection with any financing involving the Plant. In the event of an assignment of Client’s rights
hereunder to any Security Lenders, Contractor shall take such further actions and execute such documents as are reasonably requested
by such Security Lenders to effectuate such assignment including, without limitation, a consent agreement containing customary
terms and conditions. Such customary terms and conditions shall include, but not be limited to, provisions related to extended
notice and cure periods to be provided to the Security Lenders, and other terms and accommodations to Security Lenders as are
customary for non-recourse project financings. Solely with respect to any Security Lender which acquires a security interest in
Client or this Agreement, and provided Contractor has received written notice from Client of such interest and request, Contractor
shall give written notice to such Security Lender of any default or event of default by Principal under this Agreement.

Section
12. PROCEDURE FOR DECISION OF DISPUTES BY THE RULER.

The
Ruler is any other person nominated pursuant to a written agreement among the Parties; in the absence of such agreement by the
seventh (7) working day following a written request made by any Party for the nomination of the Ruler, the Ruler shall be appointed
by the chairman of the Arbitration Board for the Building Industry. With respect to any disputes relating to a technical issue
and\or of a technical nature under this Agreement (including any annexes thereof): (i) the relevant technical matter (including
without limitation, unless explicitly indicated otherwise herein) with respect to any financial aspects thereof shall be exclusively
decided by the Ruler, (ii) the Ruler’s opinion shall be final, undisputable and non-appealable, and the Parties will be
finally bound thereby, and (iii) the Ruler shall give reasons for its ruling, but will not be subject to any procedural Law; (iv)
Ruler’ fees shall be borne by the losing party, or as decided by the Ruler; (v) the Ruler shall give its decision within
7 working days form his appointment.

Section
13. CONDITION PRECEDENT (“Opschortende Voorwaarde”)

This
Agreement is subject to the satisfaction on or prior to the end of eighteen (18) months after the date of this Agreement (“Long
Stop Date”) of signing a Construction Finance Agreement of the Principal with the Lender in relation to the Plant (“Facility”)
(“Condition”).

Fulfilment
of conditions precedent

The
Principal will use all reasonable efforts to obtain the Facility on or prior to the Long Stop Date and the Contractor will use
all reasonable efforts to provide the Principal with such information as is necessary for the Principal to do so.

Termination

If
the Condition is not satisfied or waived on or before the Long Stop Date, this Agreement will not constitute rights and obligations
and parties shall not have any claim against the other Party under it, save for any claim arising from breach of any obligation
contained in Article 27 under “Fulfilment of conditions precedent”.

Section
14. GUARANTEE

As
security for the fulfilment of SM&O Contractor’s obligations regarding this Agreement and payment by the SM&O Contractor
of any amount due to Client pursuant to this Agreement the SM&O Contractor will provide the Client with a Guarantee which
can be called on demand by the Client, in the format as attached to this Agreement as Annex I.

Section
15.  ARBITRATION, JURISDICTION, APPLICABLE LA5.

With
the exception of those disputes to be decided by the Rule, all disputes or claims between the Parties arising out of or related
to this Agreement, its subject matter and/or its validity will be decided by binding arbitration which, unless the Parties mutually
agree otherwise in writing, shall be administered by the Arbitration Board for the Building Industry in accordance with its Construction
Industry Arbitration Rules in effect on the date of this Agreement.

The
venue of the arbitration will be in the State where the Plant is located.

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The
applicable law will be the law of The Netherlands the arbitrator shall: (i) apply substantive applicable Law; (ii) shall not be
bound by any rules of procedure and\or evidence; and (iii) shall give reasons for his ruling.

The
language of the arbitration will be English.

The
Parties have signed this Agreement

Anaergia
B.V., the SM&O Contractor

 

	/s/
    Diana Benedek
	Anaergia
    B.V.
	By:  Diana
    Benedek
	Title:  Managing
    Director
	December
    5th, 2017
	BLUE
    SPHERE BRABANT B.V, the Client
	/s/
    Roy Amitzur
	Blue
    Sphere Brabant B.V.
	By:
    Roy Amitzur
	Title:
    Executive VP
	December
    5th, 2017

 

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Annex
I - GUARANTEE

Anaergia
Inc., a company incorporated pursuant to the laws of [ ], whose principle place of business is at [ ], registered under number
764109-5 (“Anaergia”),

irrevocably,
primarily, absolutely and unconditionally guarantees to Blue Sphere Brabant B.V. (“Principal”) and its successors
and assignees, for the benefit of the foregoing and lenders, the prompt and complete payment and performance when due of the obligations,
commitments, undertakings, warranties and indemnities (such obligations, commitments, undertakings, warranties and indemnities
jointly the “Guaranteed Obligations” and “Guaranteed Obligation” each of them) of Anaergia
B.V. (“Contractor”) under or pursuant to the Performance Guarantee Agreement between the Principal and SM&O
Contractor dated on or around the date hereof, including all amendments, modifications, renewals or extensions thereto (“Agreement”),
without regard to the liability or defenses of any other person or the existence of any other security for or guarantee in respect
of this Agreement. Anaergia hereby agrees that any claimant under this guarantee that was not paid within 30 days of demand as
referred to hereinafter, may proceed directly to a claim of any amount due to it by Contractor directly from Anaergia provided
that (i) it has sent a notice of claim to Contractor and (ii) Contractor has not cured within 30 days from receipt of the notice.
This Guarantee is a guarantee of payment and performance of Contractor under the Agreement and so that the same benefits shall
be conferred on Principal as it would have received if the Guaranteed Obligations had been duly performed and satisfied by Contractor.

This Guarantee
is to be a continuing guarantee and accordingly is to remain in force until all the Guaranteed Obligations shall have been performed
or satisfied. This Guarantee is in addition to and without prejudice to and not in substitution for any rights or security which
the Principal may now or hereafter have or hold for the performance and observance of the Guaranteed Obligations.

Anaergia hereby
waives presentment, protest and notice of acceptance, non-payment and any and all other notices and demands whatsoever to which
Anaergia may be entitled and agrees that consent of Anaergia shall not be required in connection with any modification of or waiver
with respect to the Agreement or Contractor’s obligations under the Agreement, provided however, Anaergia shall have
all the rights, liabilities and defenses available to Contractor. No delay in making demand on Anaergia shall prejudice any claimant’s
rights hereunder. Anaergia additionally agrees to pay all costs and expenses including attorneys’ fees, incurred by any
claimant in enforcing this Guarantee.

The liability of
Anaergia under this Guarantee shall not be affected, impaired, reduced or released by:

		a.	any variation
                                         of the Guaranteed Obligations; 

		b.	any forbearance,
                                         neglect or delay in seeking performance of the Guaranteed Obligations or any granting
                                         of time for such performance; 

		c.	the illegality,
                                         invalidity, unenforceability or, or any defect in, any provision of the Agreement or
                                         any obligation thereunder on Contractor;

		d.	any insolvency
                                         or similar proceeding; or

		e.	any other
                                         fact or event which in the absence of this provision would or might constitute or afford
                                         a legal or equitable discharge or release or a defence to a guarantor.

Save as provided
in the next sentence, this Guarantee and the benefit thereof shall not be assigned without the prior written consent of Anaergia.
The Principal may collaterally assign and/or pledge this Guarantee and any rights thereunder to any finance provider or any trustee
or agent of any financier as collateral security and in connection with the financing of the Principal in relation to the works
under the Agreement. Anaergia shall execute and deliver to such financier any consents and/or other documents and/or any changes
to this Guarantee reasonably requested by such financer.

Notwithstanding
the foregoing, Anaergia has all the rights and defenses available to the Contractor and its obligations under this Guarantee are
limited to the obligations of the Contractor under the Agreement.

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This
Guarantee and any obligations arising out of or in connection with it is governed by and construed in accordance with the laws
of the Netherlands. All disputes ensuing from or connected with this Agreement or additional agreements will be decided by binding
arbitration which, unless the Parties mutually agree otherwise in writing, shall be administered by the Arbitration Board for
the Building (Raad van Arbitrage voor de Bouw).

Anaergia Inc.

Signature:

By:

Name:

Position:

Date:

Please
take into account the following legalisation requirements when executing this guarantee:

-
 

a copy of the valid passport/driver’s license of the individual(s) signing this document (each: a “Signatory”);

-
 

the genuineness of the signature(s) of the/each Signatory must be legalised by a notary;

-
 

an independent lawyer or notary must issue the confirmation statement that the signatory/signatories is/are authorised to
represent Anaergia Inc.

For
agreement and acknowledgement 

 

__________________________________

Blue Sphere
Brabant B.V.

Name:

Title:

 

    	10Exhibit 10.7

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT, dated October 4, 2017 with an effective date of October 1, 2017 (the “Agreement”),
is by and between Anavex Life Sciences Corp. (the “Company” or “Anavex”), and
Sandra Boenisch (the “Employee”). The Company and the Employee are referred to each individually
as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, the Parties
executed that certain employment agreement dated September 17, 2015 and effective October 1, 2015 (the “Original Agreement”);
and 

 

WHEREAS, the Original
Agreement terminated as of the date of this Agreement pursuant to Section 1(a) thereof; and

 

WHEREAS, the Company
desires to continue to employ and retain the Employee in order to advance the business and interests of the Company on
the terms and conditions set forth herein; and

 

WHEREAS, the Employee
wishes to continue to be employed by the Company and desires to provide her services to the Company in such capacities,
on and subject to the terms and conditions hereof; and

 

WHEREAS, the Company expends significant
time and expense on an ongoing basis in supporting its employees, including the Employee; and

 

WHEREAS, the Company
is clinical-stage biopharmaceutical company engaged in the development of novel drug candidates to treat Alzheimer’s disease,
other CNS diseases and various types of cancer (the “Business”); and

 

WHEREAS, in the course
of the Employee’s employment by the Company, the Employee may receive, be taught or otherwise have access
to items and information associated with the Business such as technical and non-technical information relating to the Company’s
products, research, processes, methods, correspondence, records, clinical data, protocols, specifications, technique, financial
information, pricing information, computer systems, computer software applications, business plans and other information which
is confidential and proprietary; and

 

WHEREAS, the Company
has acquired and/or developed certain trade secrets and Confidential Information, as more fully described below, and has
expended significant time and expense in acquiring or developing its trade secret or Confidential Information; and

 

WHEREAS, the Parties
have agreed to extend the term of the Prior Agreement and to change certain terms set forth therein; and

 

NOW, THEREFORE, in consideration
of the mutual promises, covenants and agreements contained herein, and intending to be legally bound hereby, the Company
and the Employee do hereby agree as follows:

 

AGREEMENT

 

1.            Adoption
of Recitals. The Company and Employee adopt the above recitals as being true and correct

 

(a)         Employment.
This Agreement will commence on the October 1, 2017 (the “Effective Date”) and shall terminate on September
30, 2019 (the “Initial Term”), unless sooner terminated in accordance with the provisions of this Agreement.
The Initial Term and any extensions shall be referred to as the “Employment Period.” The Agreement must be renewed
in writing, signed by both parties. If the Agreement is not renewed in writing, the non-renewal is not considered a Termination
(as defined below).

 

    1

     

    

 

2.            Position
and Duties.

 

(a)           The
Employee shall, during the Employment Period hereunder, serve as Principal Financial Officer (“PFO”)
for the Company and shall perform the executive, administrative, and accounting duties, functions and privileges incumbent
with the position of PFO and such other duties as reasonably determined by the CEO or the Board of Directors of the Company
(the “Board”) from time to time. While the duties may be changed, with or without notice, the PFO’s
duties may include preparation of SEC continuous disclosures and regulatory filings; bookkeeping and day-to-day accounting, bill
payments and maintenance of accounts payable, preparation of quarterly working papers and financial statements, serving as a liaison
with auditors and legal counsel, overseeing and implementing corporate governance procedures and protocols, preparation of the
corporate tax returns and filings, preparation of POSAM and registration statements, assist with the establishment, implementation
and maintenance of disclosure controls and procedures, and budgeting.

 

(b)           The
Employee will report to the CEO of the Company or his designee. The Employee’s authority is subject
to approval by the CEO of the Company and/or the Board.

 

(c)           The
Employee agrees to serve the Company faithfully, conscientiously and to the best of her ability, and to devote to
the business and affairs of the Company (and, if requested by the CEO and/or the Board, any subsidiary or affiliate
of the Company) such amount of her time as necessary and appropriate in the determination of the CEO and/or the Board
to promote the profit, benefit and advantage of the Company and, if applicable, any subsidiaries or affiliates of the Company.
The Employee shall fulfill her duties of loyalty, fidelity and allegiance to act at all times in the best interests of the
Company and to do no act which would injure the business, interests or reputation of the Company. The Employee’s
employment is subject to compliance with all the Company’s policies, including the Business Code of Conduct &
Ethics Policy, all as may be amended from time to time.

 

3.            Compensation.

 

(a)           Base
Salary. During the Employment Period, the Company shall pay to the Employee an annual base salary
(“Base Salary”) of One Hundred Twenty Thousand Canadian Dollars ($120,000 CAD) payable by the Company
and payable in accordance with the Company’s payroll schedules throughout the term of such employment, subject to
the provisions of Section 5 hereof (governing Terminations), and subject to any applicable tax and payroll deductions; provided,
however, that in the Company’s sole discretion, based on factors such as the market and the Employee’s
job performance, salary increases may be made. There, however, is never a guarantee of an increase in Base Salary. Salary
decreases may be made through a written modification of this Agreement executed and signed by the Parties

 

(b)           Annual
Bonus.

 

(i)            At
the sole discretion of the Company, the Company may award the Employee a bonus (“Annual Bonus”)
that reflects and rewards the contributions of the Employee to the Company’s business and success.

 

(ii)           Any
Annual Bonus is awarded at the option of the Company based upon individual and Company milestones. The Employee’s
bonus target for her Annual Bonus is anticipated to be 25% of her Base Salary. Annual Bonuses are not
deemed earned and accrued until the Board awards the Annual Bonus.

 

(iii)          Except
as set forth in Subsection 5(g)(iii), Annual Bonuses that are not earned and accrued are deemed waived if the Employee’s
employment terminates for any reason prior to the Board awarding the Annual Bonus.

 

(c)           Other
Benefits. During the Employment Period, the Employee shall be entitled to participate in such employee benefit
plans, programs or arrangements (collectively the “Plans”), implemented by the Company and available
to similarly situated employees of the Company within ninety (90) days following Employee’s starting date. The Company
shall have the right, from time to time and in its sole discretion, to modify and amend the benefits provided to its similarly
situated employees, including the Employee, consistent with the provisions herein.

 

    2

     

    

 

(d)          Fringe
benefits.

 

(i)           Business
Expenses. During the Employment Period, the Company shall pay for directly or reimburse the Employee
for all reasonable, customary and necessary business-related expenses incurred by the Employee in connection with the duties
of the Employee hereunder, upon submission by the Employee to the Company of such written evidence of such
expense as the Company may require. Any disputes as to the eligibility of an expense for reimbursement shall be resolved
in the sole discretion of the Board.

 

(ii)          Paid
Time Off. During the Employment Period, the Company agrees that the Employee shall earn four (4) weeks
(20 business days) of Paid Time Off (“PTO”) per calendar year for use as the Employee sees fit,
provided that such PTO intended for use as vacation time shall be taken at times mutually agreeable to the Employee and
Company and otherwise pursuant to applicable workplace policies governing the use of PTO. If at the end of the calendar
year, the Employee has accrued PTO that she did not use, the Employee shall be permitted to carry forward
up to 40 hours of unused PTO. The Employee shall further be entitled to paid holidays and authorized leaves (paid
and unpaid) in accordance with the policies of the Company then in effect for its senior executives. At all times, irrespective
of the reason for the use, the Employee’s use of PTO shall be consistent with the applicable workplace policies.

 

(iii)         Long-Term
Compensation.

 

(1)       Intentionally
Deleted

 

(2)       The
Company agrees that if Anavex is subject to a Change in Control, then 100% of any remaining unvested option shares
held by the Employee will immediately vest with no restrictions on purchase or sale (other than as legally required per statute
or other applicable regulation). “Change in Control” means (a) the consummation of a merger or consolidation
of the Company into another entity in which the Company is not the surviving entity, (b) the dissolution, liquidation or
winding up of the Company, (c) the closing of the sale, lease, transfer or other disposition of all or substantially all
of the Company’s assets in one transaction or a series of related transactions or (d) the closing of the transfer of the
Company’s outstanding securities, in one transaction or a series of related transactions, to a person or group of
affiliated persons if, after such closing, such person or group of affiliated persons would hold a majority of the voting power
of the capital stock of the Company. The foregoing notwithstanding, a merger or consolidation of the Company does
not constitute a Change in Control if immediately after the merger or consolidation a majority of the voting power of the
capital stock of the continuing or surviving entity, or any direct or indirect parent corporation of the continuing or surviving
entity, will be owned by the persons who were the Company’s stockholders immediately prior to the merger or consolidation
in substantially the same proportions as their ownership of the voting power of the Company’s capital stock immediately
prior to the merger or consolidation.

 

(iv)          Nothing
paid to the Employee under any of the Company Plans or fringe benefit arrangements shall be deemed to be in lieu
of Base Salary payable to the Employee hereunder.

 

(v)          Recovery
of Incentive Compensation. Notwithstanding anything herein to the contrary, the Employee agrees that incentive compensation
payable to the Employee under this Agreement or otherwise shall be subject to any clawback policy adopted or implemented
by the Company in respect to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and such regulations
as are promulgated thereunder from time to time, or in respect to any other applicable law, regulation or Company policy.

 

4.            Termination.

 

(a)          Termination
for Cause. The Company may terminate the Employee for Cause, by giving written Notice of Termination to Employee.
The Date of Termination shall be specified in the Notice of Termination. For purposes hereof, “Cause”
shall mean: (i) the Employee’s failure to perform and discharge the duties and responsibilities of the Employee
under this Agreement after receiving written notice and allowing the Employee thirty (30) days to cure such failures, if
so curable, (provided, however, that after one such notice has been given to the Employee during the Employment Period,
the Company is no longer required to provide time to cure subsequent failures under this Subsection 5(c)(i)); or (ii) any
breach by the Employee of the provisions of Sections 6, 8 and/or 9 hereof; or (iii) misconduct which, in the opinion and
sole discretion of the Company, is injurious to the Company; or (iv) felony conviction involving the personal dishonesty
or moral turpitude of the Employee; or (v) engagement in illegal drug use or alcohol abuse which in the sole discretion
of the Company prevents the Employee from performing her duties in any manner; or (vi) any misappropriation, embezzlement
or conversion of the Company’s or any of its parent’s, subsidiary’s or affiliate’s property by the
Employee; or (vii) willful misconduct or breach of fiduciary duty by the Employee in respect of the duties or obligations
of the Employee under this Agreement.

 

    3

     

    

 

(b)          Termination
by the Company without Cause. Except as set forth in Section 5(c) hereof, the Company may terminate this Agreement
at any time by providing a Notice of Termination which includes a Date of Termination at least thirty (30) calendar days after
delivery of the Notice of Termination.

 

(c)          Termination
by the Employee. The Employee may terminate this Agreement by delivering a Notice of Termination to the Company.
The Date of Termination shall be specified in the Notice of Termination; provided however, that the Date of Termination
shall not be earlier than thirty (30) calendar days after delivery of the Notice of Termination.

 

(d)          Obligations
Upon Termination.

 

(i)            Termination
for Cause. In the event that the employment of the Employee is terminated pursuant to Subsection 5(a), no Compensation
(as set forth in Section 4 above), no severance, no pro-rated bonuses or other post-termination payment shall be due or payable
by the Company to the Employee (except solely such Base Salary or other payments as may have been accrued but not
yet paid prior to the Date of Termination). Any outstanding stock option or other stock awards held by Employee as of the
Date of Termination shall be subject to the terms of the applicable plan documents.

 

(ii)           Termination
by the Company without Cause. In the event that the employment of the Employee is terminated pursuant to Subsection
5(b), no Compensation (as set forth in Section 4 above), no severance, no pro-rated bonuses or other post-termination payment shall
be due or payable by the Company to the Employee (except solely such Base Salary or other payments as may have been
accrued but not yet paid prior to the Date of Termination). The Company may opt to have the Employee cease providing
services to the Company during the thirty (30) day notice-period. In such event, Company shall continue the Compensation
and Benefits (as set forth in Section 4 above) during the thirty (30) day notice-period. Further, any outstanding stock option
or other stock awards vesting in the contract year of Termination held by Employee as of the Date of Termination shall immediately
vest and become exercisable.

 

(iii)          Termination
by the Employee. In the event that the employment of the Employee is terminated pursuant to Subsection 5(c), no
Compensation (as set forth in Section 4 above), no severance, no pro-rated bonuses or other post-termination payment shall be due
or payable by the Company to the Employee (except solely such Base Salary or other payments as may have been accrued
but not yet paid prior to the Date of Termination). The Company may opt to accept Employee’s resignation and
have Employee cease providing services to the Company prior to the expiration of the thirty (30) day notice-period.
If the Company waives the thirty (30) day notice-period, the Date of Termination shall be deemed to occur on the final date
Employee actually provided services to the Company.

 

(iv)         Employee’s
Duty to Render Final Accounting and Return Company Property. Upon termination of the Agreement, the Employee
shall (i) within thirty (30) days thereafter, render a final accounting to the Company which shall include all adjustments
between the Parties to ensure that all commitments of the Company addressed; and (ii) immediately surrender to the Company
or as the Company may direct, all property, books and records of the Company then in the custody, possession, or
control of the Employee, and as further described in Section 8 of this Agreement.

 

(e)          Notice
of Termination. A “Notice of Termination” to effectuate a termination under Section 5 shall be
made in accordance with the Notice provision defined in Section 7. For purposes of this Agreement, a Notice of Termination
shall mean a notice, in writing, which shall indicate the specific termination provision of this Agreement relied upon as the basis
for the Termination and the Date of Termination. The Date of Termination shall not be earlier than the date such Notice of Termination
is delivered (as defined above); provided however, that the Company, at its option, may elect to have the Employee
not report to work after the date of the written notice.

 

    4

     

    

 

(f)           Date
of Termination. “Date of Termination” means the date on which this Agreement shall terminate
in accordance with the provisions of this Section 5.

 

5.            Restrictive
Covenants.

 

(a)          Definitions.

 

(i)           The
term “Anavex” for purposes of Section 6 of this Agreement shall mean Anavex Life Sciences Corp. and its
affiliated and related entities including, but not limited to, all of its subsidiaries and joint ventures. It is understood that
any affiliated or related entities of Anavex are intended third-party beneficiaries of the provisions of this Agreement.

 

(ii)          The
term “Confidential Information” shall include, but not be limited to, (i) all technical and non-technical
information relating to Anavex’s pharmaceutical products, research, processes, methods, equipment, products, business practices,
and/or clinical trials; Customer lists and Prospective Customer lists; specific information on Customers and Prospective Customers
(including information on purchasing preferences, credit information, and pricing); terms and conditions under which Anavex
deals with Vendors and supplier or prospective Vendors or suppliers; employee and independent contractor lists; Anavex’s
sources of supply; Anavex’s billing rates; pricing lists (including item and Customer specific pricing information);
names of agents; operations; contractual or personnel data; trade secrets; license agreements; proprietary purchasing and sales
methods and techniques; proprietary compositions, ideas and improvements; pricing methods and strategies; computer programs, computer
systems, computer data, system documentation, special hardware, product hardware, related software development and computer software
design and/or improvements; methods of distribution; market feasibility studies; proposed or existing marketing techniques or plans;
sales and sales volumes; purchasing, transportation, documentation, marketing and trading techniques of Customers, potential Customers
and/or Vendors; inventions (including Inventions as defined below; future Anavex business plans; project files; design systems;
information on current and potential Vendors including, but not limited to, their identity, pricing, and purchasing information
not generally known; personal information about Anavex’s executives, officers and directors; correspondence, and letters,
notes, notebooks, reports, flowcharts, proposals, processes and/or any and all other confidential or proprietary information belonging
to Anavex or relating to Anavex’s business and/or affairs; and (ii) any information that is of value or significance
to Anavex that derives independent economic value, actual or potential, from not being generally known to, and not being
readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, including information
not generally known to the competitors of Anavex nor intended by Anavex for general dissemination. Confidential Information
shall not include any (a) information known generally to the public (other than as a result of unauthorized disclosure by the Employee),
(b) information that became available from a third party source and such source is not bound by a confidentiality agreement, or
(c) any information not otherwise considered by the Board to be Confidential Information.

 

(iii)          The
term “Customer” shall mean any person or entity which has purchased products from Anavex, entered
into any contract for products with Anavex, and/or entered into any contract for the distribution of any products with Anavex
within the one (1) year immediately preceding the termination of the Employee’s employment with Anavex for
whatever reason.

 

(iv)         The
phrase “directly or indirectly” shall include the Employee either on her own account, or as a
partner, owner, promoter, joint venturer, employee, agent, consultant, advisor, manager, executive, independent contractor, officer,
director, stockholder, or otherwise, of an entity.

 

(v)          The
term “Non-Compete Period” shall mean the Employment Period and the twelve (12) months immediately following
termination of the Employee’s employment with Anavex for whatever reason.

 

    5

     

    

 

(vi)         The
term “Prospective Customer” shall mean any person or entity which has expressed interest in purchasing
products from Anavex, expressed interest in entering into any contract for products or services with Anavex, and/or
expressed interest in entering into any contract for the distribution of any products with Anavex within the one (1) year
immediately preceding the termination of the Employee’s employment with Anavex for whatever reason.

 

(vii)        The
term “Restricted Area” shall include any geographical location anywhere in the world where Anavex,
its affiliates or subsidiaries either (a) are engaged in business, or (b) have evidenced an intention to engage in
business.

 

(viii)       The
term “Restricted Business” shall mean any business that competes with the business of Anavex,
as such business now exists or as it may exist at the time of the termination of the Employee’s employment with Anavex
for whatever reason, including any entity in the business of developing and/or distributing pharmaceutical products.

 

(ix)          The
term “Vendor” shall mean any supplier, person or entity from which Anavex has purchased products
or services during the one (1) year immediately preceding the termination of the Employee’s employment with Anavex
for whatever reason.

 

(b)          Non-Competition.
During the Non-Compete Period, in the Restricted Area, the Employee shall not, directly or indirectly, engage in, promote,
finance, own, operate, develop, sell or manage or assist in or carry on in any Restricted Business, provided, however, that
the Employee may at any time own securities of any competitor corporation whose securities are publicly traded on a recognized
exchange so long as the aggregate holdings of the Employee in any one such corporation shall constitute not more than 5%
of the voting stock of such corporation. For the avoidance of confusion, the restrictions contained in his Section 5 shall not
prevent the Employee from seeking or maintaining employment with any company or entity in the capacity of a principal financial
officer or other such similar capacity, provided, however, that such employment shall not, in the sole determination of
the CEO, fall within the Restricted Business and all such employment shall be disclosed to the CEO and in all regulatory filings
pursuant to Item 401 of Regulation S-K promulgated by the SEC or otherwise.

 

(c)          Non-Solicitation
of Employees or Independent Contractors. During the Non-Compete Period, the Employee shall not, directly or indirectly,
solicit or attempt to induce any employee of Anavex or independent contractor engaged and/or utilized by Anavex in
any capacity to terminate her employment with, or engagement by, Anavex. Likewise, during the Non-Compete Period, the Employee
shall not, directly or indirectly, hire or attempt to hire for another entity or person any employee of Anavex or independent
contractor engaged and/or utilized by Anavex in any capacity.

 

(d)          Non-Solicitation
of Customers, Prospective Customers or Vendors. During the Non-Compete Period, the Employee shall not, directly
or indirectly, provide services to Anavex to any Customer, Prospective Customer or Vendor of Anavex through any entity
other than Anavex. The Employee acknowledges and agrees that Anavex has substantial relationships with its
Customers, Vendors and Prospective Customers, which Anavex expends significant time and resources in acquiring and maintaining,
and that Anavex has Confidential Information pertaining to its business and its Customer, Vendors and Prospective
Customers, and that Anavex’s Confidential Information and relationships with its Customers, Vendors and Prospective
Customers constitute significant and valuable assets of Anavex.

 

(e)          Non-Disclosure
of Confidential Information. During and after employment under this Agreement, including but not limited to the Non-Compete
Period, the Employee shall not, directly or indirectly, without the prior written consent of the Board, or a person
duly authorized thereby, other than a person to whom disclosure is reasonably necessary or appropriate in connection with the performance
by the Employee of the duties of the Employee as an employee of Anavex, disclose or use for the benefit of
herself or any other person, corporation, partnership, joint venture, association, or other business organization, any of the trade
secrets or Confidential Information of Anavex. If the Employee is legally required to disclose any Confidential
Information or trade secrets, the Employee will notify Anavex prior to doing so by providing Anavex with
written notice ten (10) business days in advance of the intended or compelled disclosure. (If disclosure is required sooner than
ten (10) days, the Employee must provide Anavex with Notice immediately upon learning that disclosure is sought and
before disclosure is required or compelled.) Notice shall be provided as defined in Section 7 below.

 

    6

     

    

 

(f)           Need
for Restrictions. The Employee acknowledges and agrees that each of the restrictive covenants contained in this
Section 6 is reasonable and necessary to protect the legitimate business interests of Anavex, including, without limitation,
the need to protect Anavex’s trade secrets and Confidential Information and the need to protect its relationships
with its Customers, Prospective Customers, Vendors and agents. The Employee also acknowledges and agrees, as set forth in
Subsection 6(h) below, that Anavex may obtain a temporary, preliminary and/or permanent injunction to restrain any violations
of, or otherwise enforce, the restrictive covenants contained in Section 6. The Employee also acknowledges and agrees that,
if her future employment’s job duties would inevitably cause her to disclose Confidential Information or trade secrets
of Anavex, Anavex may seek to protect its legitimate business interests by enjoining her from working in that future
position.

 

(g)          Proprietary
Rights.

 

(i)           Ownership.
Anavex shall own all right, title and interest in and to all documentation, manuals, materials, creative works, methods,
techniques, compositions, ideas, recipes, creations, improvements, inventions, computer programs and data, system documentation,
special hardware, product hardware, related software development, correspondence, letters, notes, notebooks, reports, flowcharts,
proposals, know-how and other information, in any medium whatsoever (including, without limitation, any Confidential Information,
trade secrets and all software, software code, processes, copyrights, patents, technologies and inventions (collectively, “Inventions”),
including, without limitation, new contributions, improvements, ideas and discoveries, whether patentable or not, conceived, developed,
invented or made by the Employee during her employment by Anavex (including her employment with Anavex prior
to the date hereof), provided that such Inventions grew out of the Employee’s work with Anavex, are
related in any manner to the Business, as such term is defined in the Recitals, or are conceived or made on Anavex’s
time or with the use of Anavex’s facilities or materials). The Employee acknowledges and agrees that any of
her work product created, produced or conceived in connection with her association with Anavex shall be deemed work for
hire and shall be deemed owned exclusively by Anavex.

 

(ii)           Employee's
Obligations. The Employee shall (i) promptly disclose such Inventions to Anavex; (ii) assign to Anavex,
without additional compensation, all patent and other rights to such Inventions for the United States and foreign countries;
(iii) execute and deliver all documents required by Anavex to document or perfect Anavex’s proprietary rights
in and to Anavex’s work product; and (iv) give testimony in support of his inventorship. The Employee shall
deliver all Confidential Information, trade secrets and/or Inventions to Anavex upon Anavex’s
request, and, in any event, immediately upon termination of the Employee’s employment by Anavex.

 

(iii)          Employee’s
Restrictions. The Employee acknowledges that the Confidential Information, trade secrets and/or Inventions
constitute valuable trade secrets of Anavex. The Employee shall not infringe or violate any trade secret or other
proprietary right of Anavex related to the Confidential Information, trade secrets and/or Inventions, and
shall not own, apply for or otherwise attempt to obtain, on behalf of the Employee or others, any proprietary right in any
Confidential Information, trade secrets and/or Inventions, which Anavex owns or has a right to own, in which
Anavex has an interest and/or to which Anavex has title.

 

(h)          Breach
of Restrictive Covenants. In the event of a breach or threatened breach by the Employee of any restrictive covenant
set forth in Section 6, the Employee agrees that such a breach or threatened breach would cause irreparable injury to Anavex,
and that, if Anavex shall bring legal proceedings against the Employee to enforce any restrictive covenant, Anavex
shall be entitled to seek all available civil remedies, at law or in equity, including, without limitation, an injunction without
posting a bond, damages, attorneys’ fees, and costs.

 

(i)           Successors
and Assigns. Anavex and its successors and assigns may enforce these restrictive covenants.

 

(j)           Construction,
Survival. If the period of time, area, or scope of restriction specified in this Section 6 should be adjudged unreasonable
in any proceeding, then the period of time, area, or scope shall be reduced so that the restrictions may be enforced as is adjudged
to be reasonable. If the Employee violates any of the restrictions contained in this Section 6, the restrictive period shall
be tolled during the time that the Employee is in violation. All the provisions of this Section 6 shall survive the term
of this Agreement and the Employee’s employment with Anavex.

 

    7

     

    

 

6.            Notice.
For the purpose of this Agreement, notices and all other communications to either Party hereunder provided for in
the Agreement shall be in writing and shall be deemed to have been duly given when: (a) delivered in person, mailed by certified
mail, return receipt requested or recognized overnight delivery service and (b) transmitted via electronic mail.

 

	If to Anavex:	Anavex Life Sciences Corp.
	 	51 W 52nd Street, 7th floor
	 	New York, NY 10019
	 	Telephone: (212) 332 4449
	 	Attention: Christopher U. Missling
	 	E-mail: cmissling@anavexcorp.com

 

	With a copy to:	K&L Gates LLP 
	 	Southeast Financial Center – 39th Floor  
	 	200 South Biscayne Blvd.
	 	Miami, FL 33131-2399  
	 	Telephone:  305.539.3300
	 	Attention:  Clayton Parker, Esq.
	 	E-mail: clayton.parker@klgates.com

 

	If to the Employee:	Sandra Boenisch
	 	E-mail: sboenisch@anavexcorp.com

 

or to such other address as either party shall designate by giving written
notice of such change to the other party.

 

7.            Return
of the Company’s Property. All of the Company’s and its subsidiaries’ and affiliates’ products,
Customer correspondence, internal memoranda, designs, brochures, training manuals, project files, price lists, Customer and Vendor
lists, prospectus reports, Customer or Vendor information, data and databases, clinical trial protocols, project agreements, product
literature, notebooks, textbooks, e-mails and Internet access, and all other like information or products, including all copies,
duplications, replications and derivatives of such information or products, acquired by the Employee while in the employ
of the Company, whether prepared by the Employee or coming into the Employee’s possession, shall be
the exclusive property of the Company and shall be returned immediately to the Company upon the expiration or termination
of this Agreement for any reason or upon request by the Chief Executive Officer of the Company or the Board.
The Employee also shall return immediately return any Company issued property including, but not limited to, laptops, computers,
thumb drives, removable media devices, flash drives, smartphones, cellular phones, iPads and other devices upon the expiration
or termination of this Agreement for any reason or upon request by the Chief Executive Officer of the Company or the Board.
The Employee’s obligations under this Section 8 shall exist whether or not any of these items or materials contain
Confidential Information or trade secrets. The Parties hereto shall comply with all applicable laws and regulations
regarding retention of and access to this Agreement and all books, documents and records in connection therewith. The Employee
shall provide the Company with a signed certificate evidencing that all such property has been returned, and that no such
property or Confidential Information or trade secret has been retained by the Employee in any form. If the Company
has a good faith basis for suspecting that Employee has retained documents, property or information in violation of this
provision, if requested, the Employee is obligated to provide the Company and/or its agent with access to the Employee’s
laptop(s), external drive(s), computer(s), flash drive(s) and/or removable media to ensure all property of the Company or
its subsidiaries and affiliates has been returned, and Employee is not retaining copies of the documents or property without
the Company permission.

 

    8

     

    

 

8.            Prior
Agreements.

 

(a)          The
Employee represents to the Company (1) that there are no restrictions, agreements, or understandings whatsoever to
which the Employee is a party which would prevent or make unlawful the Employee’s execution of this Agreement
or employment hereunder, (2) that the Employee’s execution of this Agreement and employment hereunder shall
not constitute a breach of any contract, agreement or understanding, oral or written, to which the Employee is a party or
by which the Employee is bound, and (3) that the Employee is free and able to execute this Agreement and to
enter into employment by the Company. The Employee further represents and agrees that she will not bring with her,
disclose or otherwise use any confidential, proprietary or trade secret information acquired from any prior employer, whether that
information was created by the Employee or others. A written or oral notice or complaint that Employee breached this
provision or violated a restrictive covenant or an agreement not to disclose Confidential Information shall subject the
Employee, at the Company’s sole discretion, to immediate termination with Cause. The Employee also agrees
to fully indemnify the Company for any and all damages, costs and/or attorney’s fees incurred by the Company
that arise from any claims that were related to the Employee’s alleged or actual breach of a restrictive covenant
or an agreement not to disclose Confidential Information.

 

(b)          The
Parties mutually acknowledge and agree that any prior offer letters and/or employment agreements between and among the Company
or any affiliate or subsidiary and the Employee, including, but not limited to, the September 2015 draft Management and
Administrative Services Agreement and the Original Agreement between the Company and the Employee, are superseded
by this Agreement, except that Section 3(d)(iii) of the Original Agreement shall survive.

 

9.            Specific
Performance. It is agreed that the rights granted to the Parties hereunder are of a special and unique kind and
character and that, if there is a breach by any Party of any material provision of this Agreement, the other Party
would not have any adequate remedy at law. It is expressly agreed, therefore, that the rights of the Parties hereunder may
be enforced by an action for specific performance and other equitable relief without the Parties posting a bond, or, if
a bond is required, the Parties agree that the lowest bond permitted shall be adequate.

 

10.          Further
Assurances. Each of the Parties hereto shall execute and deliver any and all additional papers, documents and other
assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations
hereunder and to carry out the intent of the Parties hereto.

 

11.          Right
to Review and Seek Counsel. The Employee acknowledges that she has had the opportunity to seek independent counsel
and tax advice in connection with the execution of this Agreement, and the Employee represents and warrants to the Company
(a) that she has sought such independent counsel and advice as she has deemed appropriate in connection with the execution hereof
and the transactions contemplated hereby, and (b) that she has not relied on any representation of the Company as to tax
matters, or as to the consequences of the execution hereof.

 

12.          Waiver/Amendments.
The waiver by the Company of a breach or threatened breach of this Agreement by the Employee shall not be construed
as a waiver of any subsequent breach by the Employee. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is approved by the Board and agreed to in writing signed by Employee
and such officer as may be specifically authorized by the Board.

 

13.          Entire
Agreement. This Agreement contains the entire understanding of the Parties and no agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either Party, which are
not set forth expressly in this Agreement. This Agreement supersedes all negotiations, preliminary agreements, and
all prior and contemporaneous discussions and understandings of the Parties and/or their affiliates. The Employee acknowledges
that she has not relied on any prior or contemporaneous discussions or understandings in entering into this Agreement.

 

14.          Neutral
Construction. No Party may rely on any drafts of this Agreement in any interpretation of the Agreement.
Each Party to this Agreement has reviewed this Agreement and has participated in its drafting and, accordingly,
no Party shall attempt to invoke the normal rule of construction to the effect that ambiguities are to be resolved against
the drafting Party in any interpretation of this Agreement.

 

    9

     

    

 

15.          Governing
Law. This Agreement shall be governed and construed in accordance with the laws of the State of New York without
regard to conflicts of law.

 

16.          Headings
and Captions. The titles and captions of paragraphs, sections, subparagraphs and subsections contained in this Agreement
are provided for convenience of reference only, and shall not be considered terms or conditions of this Agreement.

 

17.         Validity.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and effect.

 

18.         Survival.
The provisions of this Agreement shall not survive the termination of the Employee’s employment hereunder,
except that the provisions of (i) Section 5 hereto relating to post-termination payment obligations; (ii) Section 6 hereto relating
to the restrictive covenants; (iii) Section 8 hereto relating to return of the Company’s property; and (iv) Section
17 relating to jurisdiction, venue and waiver of personal service shall remain binding upon the Parties.

 

19.         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company and its successors
and assigns, and the Employee agrees that this Agreement may be assigned by the Company without Employee’s
consent. This Agreement is not assignable by the Employee.

 

20.         Counterparts.
This Agreement may be executed in one or more separate counterparts, each of which, when so executed, shall be deemed to
be an original. Such counterparts shall, together, constitute and shall be one and the same instrument. This Agreement, and
the counterparts thereto, may be executed by the Parties using their respective signatures transmitted via facsimile machines
or via electronic mail.

 

21.          Jury
Trial Waiver, Arbitration. ALL ISSUES, MATTERS AND DISPUTES BETWEEN THE PARTIES CONCERNING THIS AGREEMENT SHALL BE SUBMITTED
TO ARBITRATION. Employee agrees, on behalf of herself and her agents or assigns that, except as otherwise provided in this
paragraph, all potentially litigable claims or controversies arising out of this Agreement shall be submitted to binding arbitration
before a mutually acceptable arbitrator and in accordance with the American Arbitration Association (“AAA”)
under the Employment Arbitration Rules and Mediation Procedures. If the Parties cannot agree upon an arbitrator, the claim or controversy
shall be arbitrated by a single arbitrator selected in accordance with the applicable AAA rules. THIS PROVISION TO ARBITRATE
SHALL NOT APPLY TO ANY CLAIM FOR BREACH OF THE RESTRICTIVE COVENANTS, AS SET FORTH ABOVE IN SECTION 6, INCLUDING ANY REQUEST FOR
INJUNCTIVE RELIEF TO ENFORCE COMPLIANCE WITH THE TERMS OF SECTION 6. EITHER PARTY MUST PROCEED EXCLUSIVELY IN COURT TO ENFORCE
THE REQUIREMENTS OF SECTION 6. The Employee hereby consents to personal jurisdiction and exclusive venue in the United
States District Court for the Southern District of New York, if such Court can exercise jurisdiction over the matter for any action
brought by the Company seeking injunctive relief. In the event the foregoing Court lacks jurisdiction, the Employee consents
to personal jurisdiction and exclusive venue in the Supreme Court of the State of New York, New York County. ALL CLAIMS CONCERNING
THIS AGREEMENT FOR INJUNCTIVE RELIEF SHALL BE TRIED BY A JUDGE IN A NON-JURY TRIAL.

 

    10

     

    

  

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on October 4, 2017.

 

	ANAVEX LIFE SCIENCES CORP. 	 	SANDRA BOENISCH
	 	 	 	 
	By:	 /s/Christopher Missling	 	/s/Sandra Boenisch
	 	 	 	 
	Name:	Christopher U Missling	 	 
	 	 	 	 
	Title:	CEO	 	 

 

    11

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