Document:

Exhibit 10.3

 

**CONFIDENTIAL PORTIONS HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION (THE
"COMMISSION').**

 

Memorandum of Understanding

 

By: PolyPid Ltd., 20 Hamagshimim Street,
Petah Tikva ("PolyPid"), and

Between: MIS Implant Technologies Ltd.,
Bar-Lev Industrial Zone (“MIS”)

 

		1.	PolyPid is developing an innovative product for dental and orthopedic needs, based on the delayed
release of the antibiotic Doxycycline (hyclate) from the surface of synthetic bone chips based on beta TCP, being also used as
a bone growth factor, which is also meant to be used as a bone filler, and intends to develop an application of the said product
to treat Preiimplantits (the “Indication”) (the product to be developed for the Indication will be called the
“Product”). The Product is based on Polypid's innovative technologies in the field of delayed release of materials
with biological activities within medical devices coating. PolyPid confirms that the intellectual property based on the technology
that enables the production and the marketing of the Product belong, to the best of its knowledge, exclusively to PolyPid, and
that it filed patent applications and/or provisional patent applications regarding the inventions contained therein (the "Patent").

 

2.

 

		(a)	Any marketing rights granted to MIS shall be solely in connection with the Indication. All of MIS's
promotional and marketing materials for the Product shall be limited to the Indication only.

 

		(b)	Shortly after the signing of this agreement, and within 6 months from the signing, PolyPid will
provide the material for the planned implant to be developed by PolyPid as part of the Product, as determined by the technical
specifications and the amount agreed upon between the parties, afterwards it shall send the Product to the place to be determined
by MIS and approved by PolyPid. MIS shall terminate all necessary preparations to start the clinical phase on patients, pursuant
this agreement. MIS undertakes to fund the clinical trial, preparations, execution, and a full summary. Following delivery of the
required material by PolyPid, MIS will make every effort to ensure that the clinical study duration will not exceed 12 months.
MIS undertakes to carry out the clinical trial in accordance with a mutually agreed plan, and that the Products provided by PolyPid
will be used only pursuant to PolyPid's instructions. In addition, MIS shall not make any use of the Product in violation of the
provisions herein. Without limiting the foregoing, MIS shall be responsible for the following actions, subject to the written instructions
of PolyPid regarding the use of the product.

 

    	 

    	 

    

 

		i.	To locate and identify the researchers and medical centers. The number of patients and the objectives
of the clinical trials will be determined with PolyPid, and pursuant to the instruction given to PolyPid by the applicable regulatory
bodies in Europe and the United States, whichever is stricter;

 

		ii.	To provide appropriate insurance coverage for the clinical trials and to pay all expenses related
to the clinical trials – which shall be in accordance with applicable regulation in the United States and Europe;

 

MIS guarantees that the controller
of the clinical trial will deliver any relevant information, whether verbal or written, to the representatives of the two companies.
If such information will be transferred only to one of the companies, the receiving company will provide the relevant information
to the designated representative of the other company. In addition MIS is committed to transfer to PolyPid, immediately, any information
regarding the clinical trial and its progress.

 

		(c)	MIS guarantees that all the clinical trials will be covered by suitable insurance and will be made
pursuant to any ethical rules, relevant regulations and certifications of the country in which the trials take place. PolyPid undertakes
to make efforts to provide the Product for use in human trials, and to deliver the relevant booklet to the examiner, in order to
obtain the approval of the ethical committee for the trial.

 

		(d)	It is hereby agreed that after obtaining preliminary results in the clinical trial (recruitment
of one-third of the patients and follow-up of a minimum of four months from the end of treatment), PolyPid will consult with the
regulatory bodies in the United States and Europe, and receive its recommendations. PolyPid undertakes to complete the clinical
trial in accordance with the regulatory bodies' recommendations.

 

		(e)	PolyPid shall supply the required quantities of the Product for the clinical trial at no charge,
with the appropriate regulatory approval, according to quality control requirements.

 

		(f)	Subject to the successful completion of the clinical trials, PolyPid will fund and obtain all regulatory
approvals needed for marketing the Product in the U.S and Europe. If MIS decides to continue the cooperation with PolyPid, MIS
undertakes to obtain the needed approvals to market the Product in each country, at its own expense. In the event that the regulatory
body in Europe or the U.S. requires additional regulatory actions with respect to the clinical trials, MIS undertakes to perform,
at its own expense, such actions within a reasonable time. If any further regulatory requirements concerning the Product will arise,
PolyPid undertakes to make any efforts to comply with such requirements; however, PolyPid may decide that due to high costs, it
will not comply with the additional regulatory requests. In such case, PolyPid will reimburse MIS any amounts paid by MIS, regarding
the territory in question. If MIS is not interested in obtaining regulatory approvals regarding specific states or countries, PolyPid
shall be entitled to act to obtain such permits by itself or through a third party, and MIS will not be permitted to market the
Product in such state or country.

 

    	 

    	 

    

 

		(g)	In the event that the FDA imposes additional requirements regarding a clinical trial, MIS may choose
not to comply with such requirements if they would result in high costs, subject to providing PolyPid with 30 days' prior written
notice. In such event, PolyPid will exclude the U.S. from MIS's marketing license and PolyPid shall be free to grant any other
entity a license to market the Product in the U.S., and MIS shall not have any claims for, nor shall it be entitled to any compensation
therefor. Nothing stated herein shall derogate from MIS's obligation to pay PolyPid any amounts due pursuant to Section 3(b), excluding
the payments in Subsections 3(b)(4)-(6). In the event that MIS had already made a payment (pursuant to Subsections 3(b)(4)-(6),
PolyPid shall refund such payment. Furthermore, if MIS does not obtain regulatory approvals on PolyPid's behalf, pursuant to section
2(f), within a period agreed upon by the parties, PolyPid may market the Product independently or grant a license to market the
Product to a third party, after providing MIS with 30 day's prior written notice. If MIS does not execute the clinical trial according
to the requirements of the FDA, and in accordance with the schedule established by the parties, PolyPid shall be entitled to exclude
the U.S. from MIS's marketing license and may grant to any other entity or itself the license to market the Product in the U.S.
Nothing stated herein shall derogate from MIS's obligation to pay PolyPid any amounts due pursuant to Section 3(b), excluding the
payments in Subsections 3(b)(4)-(6). In the event that MIS had already made a payment (pursuant to Subsections 3(b)(4)-(6), PolyPid
shall refund such payment. In the event that MIS does not fulfill its material obligations and/or commits a material breach hereunder,
without curing such breach within 60 days (upon written notice), PolyPid shall be entitled to terminate this agreement immediately,
and PolyPid shall not be obligated to return any payments received from MIS, and MIS shall not be entitled to any further payments.

  

		(h)	Neither party guarantees the success of the clinical trial. PolyPid does not give any representation
regarding the Product or PolyPid's technology, and delivers the material to MIS as is.

 

    	 

    	 

    

 

		3.	

 

		(a)	MIS will notify PolyPid in writing within 45 days of the delivery of the final report of the clinical
trial, if it wishes to continue the collaboration with PolyPid, pursuant to the terms of this agreement. If MIS gives a positive
notification, it will be nominated as the exclusive worldwide distributer of the Product for the Indication. For this purpose,
PolyPid will grant MIS an exclusive, non-transferable worldwide license (the “License”) to market the Product.
If MIS decides not to continue the collaboration with PolyPid, this agreement will terminate and neither party shall have any financial
or other liability to the other party, except that PolyPid shall return the milestone payments paid by MIS of the total $2,500,000
according to Section 3(b). However all the amounts paid by MIS until such date, related to the clinical trial or any other expense
of MIS, shall not be returned to MIS.

 

		(b)	In consideration for the said exclusive marketing right, MIS will pay PolyPid $2,500,000,
plus VAT, in accordance with the following milestone payments: (1) $150,000 plus VAT, shall be paid upon the execution
of this agreement; (2) $450,000 plus VAT shall be paid upon the receipt of approvals to begin the clinical trial and
delivery of materials from PolyPid to MIS; (3) $650,000 plus VAT shall be paid upon receipt of European regulatory
approval for marketing (CE); (4) $150,000 plus VAT shall be paid upon the engagement with the FDA regulatory; (5) $450,000 shall be paid upon the commencing of the clinical trial which supports FDA approval and supplying the materials for
this trial; and (6) the remaining amount (total of $650,000) shall be paid upon receipt of regulatory approval to market the
product in the United States (FDA).

 

    	 

    	 

    

 

4.

 

		(a)	Three months prior to the expected date of receiving a regulatory approval to sell the Product,
MIS will provide PolyPid with an 18-months' order estimation. Upon receiving regulatory approval, MIS will provide an 18-months'
order estimation. PolyPid will strive to fulfil orders on a quarterly basis. The package design of the final boxed Product shall
clearly identify PolyPid as the manufacturer and the owner of all intellectual property, and shall be made at the expense of MIS.
The intellectual property rights relating to the package design of the final boxed Product design and any marketing materials shall
belong solely to MIS. MIS will sell the Product under its own brand.

 

		(b)	PolyPid will manufacture and produce the Product, at its own expense, in basic, sterile packaging,
and will provide the Product in such form to MIS, accompanied by the relevant documents. MIS shall be responsible for, and shall
bear the costs of, package design, the package material, and the leaflet to the doctor and the patient, all in accordance with
the instructions of the regulatory authorities in each country.

 

		(c)	PolyPid is responsible for shipping the product, FOB, from its manufacturing facility, pursuant
to the requirements of the regulatory body which is stricter, to three destinations that shall be determined in advance with MIS.

 

		(d)	MIS shall pay the advertising, marketing and sales expenses of the product and undertakes to bear
these costs to be agreed upon between the parties in a definitive agreement. MIS shall sell the product to its customers under
its own brand without altering the markings on the original packaging and without creating the impression that MIS is the owner
of the product or the related patents. MIS shall market the Product in each country only in accordance with the License granted
and pursuant to applicable regulatory authorities.

  

		(e)	During the first five years after receiving the first regulatory approval, MIS shall strive to
purchase an annual amount of the Product (the "Purchasing Objective"), to be agreed upon between the parties in
a definitive agreement. In each of the five years, the objective will be increased and examined. If MIS does not meet the Purchasing
Objective, PolyPid may terminate the agreement, without the foregoing being considered a breach of the agreement by either party.
The parties shall make an evaluation of whether MIS is meeting the Purchasing Objective at the end of each year after the target
date. The target date is three months after the first regulatory authorization. In such event, PolyPid will not reimburse MIS for
any amount paid by MIS, and MIS will not be entitled to any compensation or payment in connection with the Product in the future.
In the event that MIS meets the purchasing objective, the parties shall agree on a new Purchasing Objective for the following year,
this agreement shall reflect the growth of the sales each year.

 

    	 

    	 

    

 

		(f)	In the event that the parties do not reach an agreement on any matter (including but not limited
to the Purchasing Objective), within 60 days, the parties shall resort to arbitration by a single arbitrator. The decisions of
the arbitrator shall be considered as those agreed upon by the parties.

 

		5.	The price MIS will pay PolyPid for the Product shall be calculated as follows:

 

		(a)	Prior to the beginning of sales, the parties shall agree upon the selling price of the Product
from PolyPid to MIS, considering in-product cost plus a reasonable profit target based on a commercial 'golden ratio' of **THE
CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE
COMMISSION.** (the ratio between the expected sale price from MIS’ distributers to their customers and the sale price
from PolyPid to MIS). The parties will examine the costs at the end of each year, and may change the price. Consideration for the
delivered Product will be made within 90 days from the date of the invoice. It is further agreed that 2% of the Products provided
to MIS in the first three years, will be provided at no cost for purposes of promoting the Product. Notwithstanding the foregoing,
if MIS sells such Products, MIS shall pay to PolyPid the price of the Product in accordance with this section.

 

		(b)	From the beginning of the marketing of the product by MIS and during the entire period, MIS shall
provide PolyPid a detailed report, on a three months' basis, which shall contain: the identity of the distributor, the amount of
Products sold to the distributor, the sale price to the distributor, and any other detail reasonably requested by PolyPid. MIS
further undertakes to immediately provide PolyPid with any information MIS obtains in connection with the Product. PolyPid shall
be entitled to use any such information, and MIS and any other party shall not be entitled to use such information without Polypid's
consent. The information generated by MIS and anyone engaged with MIS for the performance of clinical trials of the Product, including
all intellectual property rights inherent therein, shall remain the exclusive property of PolyPid. In addition, each party engaged
with MIS for the purpose of conducting the clinical trials shall not be entitled to use the Product or any other information resulting
therefrom in any way, unless PolyPid provides a license to use the information.

 

6.

 

		(a)	PolyPid shall be responsible for adjusting the Product, product quality and safety of the Product
in accordance with the relevant regulatory terms. PolyPid declares, that to the best of its knowledge, the Product does not violate
the intellectual property rights of third parties. PolyPid shall not be liable for product defects arising after transmission to
MIS. Each party shall ensure, separately, to purchase appropriate insurance for product liability and damages to third parties.
Each party shall bear its individual insurance costs.

 

    	 

    	 

    

 

		(b)	MIS shall market the Product solely for indication, in accordance with regulatory requirements.
MIS will make reasonable efforts at its discretion to maintain the Purchasing Objective, to be determined by the parties. PolyPid
shall be responsible for any breach of a third party’s intellectual property rights caused by the Product and the product
packaging provided by PolyPid. MIS shall be responsible for any breach of a third party’s intellectual property rights caused
by the package design of the Product as well as the marketing and advertising materials.

 

7.

 

		(a)	Any information, idea, development, improvement, different use, derivative, or any concept or change
in relation to the Product or in the technology of PolyPid, whether formulated or developed by MIS or its representatives, and
all intellectual property rights embodied in them, shall belong to and be exclusively owned by PolyPid, and MIS shall irrevocably
assign to PolyPid any right which it may have in connection therewith, including the right to any royalties or any similar consideration.
MIS, and any party on its behalf, shall sign any document so as to allow PolyPid to protect its intellectual property (including
patent registration). MIS undertakes that each third party that MIS engages with regarding the clinical trial, shall execute an
intellectual property undertaking identical to this section (providing that all intellectual property created with respect to the
Product and or PolyPid's technology shall exclusively belong to PolyPid). This agreement does not entitle MIS to any rights regarding
PolyPid's intellectual property related to the Product and/or its technology or any other of PolyPids products; all such rights
remain in the exclusive ownership of PolyPid. MIS's intellectual property rights relating to the Product, as well as the marketing
and advertising materials, shall be the exclusive property of MIS.

 

		(b)	MIS and/or its representatives are obligated to maintain secrecy and to keep confidential information
in secret with regards to any technical confidential information of PolyPid that is related to the Product, technology or other
products of PolyPid, and not make any use of such information except for the purpose of marketing the Product under the agreement
and as approved in advance and in writing by PolyPid. Furthermore, MIS is responsible that any party acting on its behalf shall
be obligated to maintain confidentiality. In addition, any other party that shall enter into an agreement with MIS, regarding the
clinical trial, is obligated to maintain confidentiality. The confidentiality obligation shall not apply to information in the
public domain, not due to a breach of this agreement by MIS and/ or another party on its behalf, or held by MIS prior to the agreement,
or provided to MIS or by a third party authorized to do so, or developed by or for MIS independently, without using the information
of PolyPid after the term of the agreement, solely when MIS can prove that the information developed by it, or for it, was created
after the term of the agreement.

 

    	 

    	 

    

 

		(c)	MIS commits not to develop, produce or market, directly or indirectly, products for the Indication
(Preiimplantits), which are not produced by PolyPid, for a period of five years following the beginning of marketing of the Product.
Notwithstanding the foregoing, this section shall not apply to the marketing of the Perio-Patch, which MIS already markets upon
the signing of this agreement.

 

		(d)	It is further agreed, that for a period of three years following the termination of this agreement
for any reason, MIS will not use the commercial name of the Product, or any other similar name, for the marketing of a product
that competes with the Indication.

 

		8.	Each party to this agreement is an independent contractor acting upon its own accord and responsible
for its respective actions and liabilities. There shall not be partnership, employee-employer or representative relationships between
the parties hereto.

 

		9.	This agreement shall be effective for as long as all patents are effective, and for as long as
MIS maintains its undertakings in accordance with this Agreement, and in any case for a minimum duration of five years following
the beginning of the sales following initial regulatory approval. At the end of the 5 year term, and subject to MIS fulfilling
all of its obligations herein, the parties will renegotiate the terms of this agreement.

 

Notwithstanding the forgoing,
either party may terminate this agreement by a written notice, following a breach by the other party that is not rectified within
60 days. In addition, either party may terminate the agreement following a force measure that exceeds a 30 day period, and in case
of a bankruptcy, liquidation and other similar events. In addition, MIS is entitled to terminate the agreement at any time with
90 day's prior notice. If MIS chooses to terminate the agreement not following a breach by PolyPid, PolyPid will not return MIS
any sums of money paid to it, and PolyPid will be entitled to market the Product in any manner. Without derogating from the generality
of the forgoing, it is clarified that if MIS breaches this agreement, and does not rectify the breach within 60 days, PolyPid will
be entitled to terminate the License and the agreement immediately. In such an event, MIS will not be entitled to any consideration.

 

Each party's obligations and
liabilities shall survive the termination of the agreement for any reason (except pursuant to a breach by the other party), provided
that such obligation or liability was incurred prior to the termination of the agreement, including completing production due until
the termination of the agreement (as applicable), providing and paying for Products ordered prior to the termination of the agreement
and any additional payments due to Polypid, in accordance with this agreement. Upon termination of this agreement, MIS's License
shall expire, and all confidential information and property owned by PolyPid shall be returned to PolyPid immediately.

 

    	 

    	 

    

 

		10.	In the event of a Re-organization of either party, the re-organized party undertakes to make its
best efforts to ensure that the new party will commit to maintain all undertakings pursuant to this agreement. If the re-organization
is to take place in PolyPid, and the new controlling party will not maintain PolyPid's undertakings, PolyPid will be entitled to
terminate the agreement, with 90 day's prior notice, provided that the following conditions shall apply;

 

		1.	If the agreement is terminated by PolyPid before the end of five years, PolyPid shall return to
MIS all payments made until such date, pursuant to Section 3(b) above, along with compensation that will be calculated as follows;
the average monthly income of MIS from selling the Product for the 12 month period prior to the termination (not including the
price paid to PolyPid for the product and not including VAT), multiplied by the number of months from the date of termination of
the agreement until the end of five years from the start of the sales, however, in any case not less than 6 months. VAT shall be
added to such compensation amount.

 

		2.	If the agreement is not extended by PolyPid after the expiry of five years from the target date,
for reasons other than disagreements regarding the Purchasing Objective as stated in section 4(b) above or the requested price,
PolyPid shall not be required to reimburse MIS any sums (including any consideration paid up to that date pursuant to section 3(b)
above); however MIS will be entitled, during a period of one year from the termination of the agreement, to continue to market
the Product under the terms of this agreement provided that the License will be non-exclusive. It is further agreed that during
this year, PolyPid shall be entitled to grant, in parallel with MIS, marketing and sale rights of the Product (including product
design, packaging and preparation of marketing materials) provided that during this year, the following rule shall apply: If PolyPid
sells its Product to a third party at a price lower than the price offered to MIS, then MIS shall be entitled to receive the lower
price, retroactively from the beginning of that year;

 

		3.	Notwithstanding the foregoing, if PolyPid will receive an offer of engagement from a different
marketer after the expiry of five years from the target date, PolyPid will grant MIS the right to extend its engagement under the
same terms and conditions offered by the such marketer, including a **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO
A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** discount of the price and terms offered,
within 30 days of receipt of the proposal.

 

As used herein, the term "Re-organization"
shall mean any of the following: change of control, merger, sale of Relevant Assets or investment by a strategic investor. The
term "Relevant Assets" shall mean (intellectual property and tangible assets) those assets that the same party
uses during the manufacturing and supply of the Product.

 

    	 

    	 

    

 

		11.	If PolyPid enters into bankruptcy, liquidation or other similar proceedings, and such proceedings
are not canceled within 60 days, MIS will retain its License and 10% of the royalties will be paid to PolyPid. If MIS enters into
bankruptcy or liquidation proceedings that are not canceled within 60 days, the License will expire immediately.

 

		12.	Following the signing of this agreement, the parties will negotiate to reach a definitive agreement
within 90 days that will include, inter alia, limited liability clauses, representations and warranties, etc. (the “Definitive
Agreement”). The parties agree that if a Definitive Agreement is not signed, this Agreement will be valid. With the termination
of this Agreement, MIS shall return to PolyPid immediately, all of PolyPid's confidential information and properties that were
held by MIS or on its behalf.

 

		13.	Notwithstanding any section of this Agreement, it is hereby agreed that under no circumstance shall
either party be liable for indirect and/or incidental and/or consequential damages, whether direct or indirect, whether due to
a contractual liability, tort (including negligence) liability or any other legal liability, even if the other party has been notified
or if either party should have or could have expected such damages. For the avoidance of doubt, any sum owed by a party to the
Agreement to a third party which is also subject to the duty of Indemnification as stated in Section 15 hereinafter, shall be regarded
as a direct damage and the foregoing limitations shall not apply.

 

		14.	In any event, the total liability of any party to the other party in accordance with this Agreement
shall not exceed a sum that is equal to the total sums of money received by PolyPid from MIS under the Agreement (not including
VAT) during the 12 months preceding the event that caused the liability. The foregoing ceiling of liability will not apply with
respect to a party’s liability toward a third party. In addition, with respect to a loss and/or damage of up to $20,000,
no indemnification will be granted. In the event that the amount of cumulative damages exceed the minimum amount of indemnity,
the indemnification obligation under this section shall apply in respect to the full amount

 

		15.	Each party (the “Indemnifying Party”) shall be responsible and indemnify the
other party (the “Indemnified Party”) for any damage or cost sustained by the Indemnified Party due to a suit
and/or claim and/or demand against the Indemnified Party by a third party due to actions and/or omissions of the Indemnifying Party
(including breach of the third party’s intellectual property and rights) or due to a breach of this Agreement and the Definitive
Agreement by the Indemnifying Party.

 

		16.	This agreement shall be governed by Israeli law, and the Israeli courts shall have the exclusive
jurisdiction with respect to this agreement.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties have executed this agreement
as of February ___ 2013

 

	 	/s/  Amir Weisberg 	 	 	/s/ Idan Kleifeld
	 	PolyPid Ltd.	 	 	MIS Implant Technologies Ltd.Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made and entered into as of the Company's IPO by and between Polypid Ltd. (the “Company”),
and Noam Emanuel (I.D. No. 055997621), an individual residing at 1 Ha'atzmaut St. Rehovot, Israel (the “Employee”).

 

WHEREAS, the
Employee is currently employed by the Company on a part time basis and is providing services to the Company through a company on
its behalf pursuant to a certain Services Agreement entered between the Company and the service provider indicated in Schedule
A attached hereto ("Services Agreement");

 

WHEREAS, the Company
wishes to terminate the Services Agreement and employ the Employee on a full time basis;

 

WHEREAS, the parties
wish to update and replace the current employment agreement entered between the parties on March 1, 2014, by this Agreement, as
of the Effective Date and throughout the Term (as such terms are defined hereunder).

 

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

 

		1.	Employment; Position

 

		1.1.	The Company desires to amend the employment engagement with the Employee and employ the Employee
and the Employee desires to be employed by the Company pursuant to the terms set forth in this Agreement, as of the date indicated
in Schedule A attached hereto (“Effective Date”) and until this Agreement shall be terminated
in accordance with the provisions of Section 8 below (“Term”).

 

		1.2.	The Employee shall be employed on a full time basis in the position indicated in Schedule
A attached hereto (“Position”). The Employee shall have the authority, functions, duties and responsibilities,
as may be stipulated from time to time by the person or organ indicated in Schedule A attached hereto (“Direct
Supervisor”) and shall report thereto.

 

		1.3.	The Employee shall perform his duties and obligations hereunder from the Company's offices or from
any other place as shall be instructed, from time to time, by the Direct Supervisor.

 

		1.4.	Employee acknowledges that he is employed hereunder in a management position which requires a special
degree of trust, and therefore, the Hours of Work and Rest Law 1951 (“Work and Rest Law”) and any other law
amending or replacing such law, does not apply to you or to his employment with the Company. Employee acknowledges that the Salary
set hereunder nevertheless includes within it consideration that would otherwise have been due to Employee pursuant to such law.

 

		2.	Duties and Obligations

 

The Employee affirms and undertakes,
throughout the Term, as follows:

 

		2.1.	The Employee shall devote the Employee's working time, know-how, energy, expertise, talent, experience
and best efforts to the business and affairs of the Company and to the performance of the Employee’s duties with the Company.

 

		2.2.	The Employee shall perform and discharge well and faithfully, with devotion, honesty and fidelity,
all of the Employee’s obligations derived from Employee’s Position and from this Agreement.

 

    	 

    	 

    

  

		2.3.	The Employee shall comply with all the Company’s disciplinary regulations, work rules, policies,
procedures and objectives, as may be determined by the Company from time to time.

 

		2.4.	The Employee shall travel abroad from time to time if and as may be required pursuant to Employee’s
Position.

 

		2.5.	The Employee shall refrain from being involved in, directly or indirectly, and to inform the Direct
Supervisor, immediately and without delay, of any affairs and/or matters that constitute a conflict of interest with Employee’s
Position and/or employment with the Company.

 

		2.6.	In his free time, the Employee may engage in other business unrelated
to the Company (other than competitor business), provided that the Company shall pre-approve such engagement. The Company acknowledges
and accepts that the Employee is engaged in the management of a group of investors and the holdings of such group.

 

		3.	Representations and Warranties

 

The Employee represents and
warrants to the Company as follows:

 

		3.1.	The Employee is free to be employed by the Company pursuant to the terms contained in this Agreement
and there are no contracts, impediments and/or restrictive covenants preventing full performance of the Employee’s duties
and obligations hereunder.

 

		3.2.	The Employee has the requisite qualifications, experience and knowledge to perform the Employee’s
obligations under this Agreement.

 

		3.3.	All work under this Agreement shall be the Employee’s original work and none of his work
product or any development arising from his work, use, production, distribution or exploitation thereof will, to Employee's knowledge,
infringe, misappropriate or violate any intellectual property or other right of any person or entity; it being understood that
Employee shall not use any confidential information or information owned by third parties in connection with previous employment/engagement
or involvement of Employee with other ventures or businesses and any use of such information will be deemed as breach of this Agreement.

 

		3.4.	The Employee is not involved, directly or indirectly, in any business and/or affairs and/or matters
that constitute or may constitute a conflict of interests with Employee’s employment with the Company under this Agreement.

 

		3.5.	In the event that the Employee becomes aware that the performance of his obligations and duties
under this Agreement may violate any third-party rights, he will disclose this to the Company without delay.

 

		4.	Compensation 

 

		4.1.	Subject to and in consideration for the Employee’s fulfillment of Employee’s obligations
under this Agreement, the Company shall pay Employee a monthly gross salary in the amount indicated in Schedule A
attached hereto (the “Salary”).

 

		4.2.	Without derogating from the above said in Section 1.4, it is hereby clarified that the Salary is
calculated based on three separate components as follows:

 

		4.2.1.	A gross monthly base salary in the amount indicated in Schedule A attached hereto
(the “Base Salary”);

 

		4.2.2.	A gross monthly global compensation for overtime hours of work in the amount indicated in Schedule
A attached hereto (the “Global Overtime Compensation”). The Global Overtime Compensation has been determined
based on the Company’s knowledgeable estimation of the average of overtime hours per month that the Position requires. It
is hereby agreed and acknowledged that the Global Overtime Compensation shall constitute the full consideration to which the Employee
shall be entitled for the Employee’s work during Overtime Hours as provided above; and

 

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		4.2.3.	The amount indicated in Schedule A attached hereto is paid as a special consideration
for Employee’s commitments under the NDA (as defined below) (“Special Component”).

 

In the event that it is claimed
or determined that the Work and Rest Law is applicable to the Position under this Employment Agreement despite the specific agreement
herein, the Global Overtime Compensation represents any amounts due and payable under such law.

 

		4.3.	Israeli income tax and other applicable withholdings with respect to the Salary shall be deducted
from the Salary by the Company at source.

 

		4.4.	The Salary shall serve as the basis for the calculation of all social benefits to which Employee
is entitled hereunder. No other amount paid to Employee, including any bonuses and signing bonus (to the extent granted), shall
be taken into account in the calculation of any social benefits to which Employee may be entitled.

 

		5.	Social and Fringe benefits

 

		5.1.	Pension 

 

		5.1.1.	The Company will insure the Employee under a "Manager's Insurance Policy" ("Bituach
Menahalim") ("Policy") or a Pension Fund ("Pension Fund", and together with the Policy,
the "Insurance Scheme") to be selected by the Employee. At the end of each month during the employment of Employee,
the Company shall pay an aggregate amount equal to 13.33% of the Salary for the preceding month to the Policy or 14.33% of the
Salary for the preceding month to the Pension Fund (the "Company's Contribution"), as follows: (a) 8.33% for severance
pay component; and (b) for savings and risk component, either (i) in the case of a Policy, 6%, subject to deduction of 7% from
the Salary by the Employee, as detailed below; or (ii) in the case of a Pension Fund, 6%, subject to deduction of 5.5% from the
Salary, as detailed below. In addition, if the Employee shall elect a Policy, the Company shall pay up to 2.5% of the Salary towards
loss of working capacity disability insurance (depending on the cost to the Company necessary to provide coverage) to be purchased
by the Company. The Employee agrees that the Company shall deduct from the Salary an amount equal to 5% or 5.5% of the Salary for
the preceding month, and shall pay such amount as premium payable in respect for savings and risk component of the Policy or the
Pension Fund, as the case may be (the “Employee’s Contributions”). If the Employee elects to be insured
under a combination of the Policy and Pension Plan, the Employee may determine the allocation between the two, provided
that, in any event the Company's contributions will not exceed the maximum amounts set forth above.

 

		5.1.2.	The Company and Employee agree and acknowledge that the Company’s Contribution to the Insurance
Scheme in accordance with Section 5.1.1. above, shall, provided contribution is made in full, be instead of severance payment to
which the Employee (or his beneficiaries) is entitled with respect to the Salary upon which such contributions were made and for
the period in which they were made (the "Exempt Salary"), pursuant to Section 14 of the Severance Pay Law 5713
– 1953 (the "Severance Law"). The parties hereby adopt the General Approval of the Minister of Labor and
Welfare, which is attached hereto as Exhibit A. The Company hereby forfeits any right it may have in the reimbursement
of sums paid by Company into the Insurance Scheme, except: (i) in the event that Employee withdraws such sums from the Insurance
Scheme, other than in the event of death, disability or retirement at the age of 60 or more; or (ii) upon the occurrence of any
of the events provided for in Sections 16 and 17 of the Severance Law. Nothing in this Agreement shall derogate from the Employee’s
rights to severance payment in accordance with the Severance Law or agreement or applicable ministerial order including the General
Approval of the Minister of Labor and Welfare, as set forth in this Section 5, in the event contributions to the Insurance Scheme
have not been made in full.

 

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		5.2.	Study Fund.

 

		5.2.1.	Notwithstanding anything herein to the contrary, for the purpose of this Section 5.2, the term
“Salary” shall mean that portion of the Salary which does not exceed the recognized ceiling for withholdings
that are exempted from taxes under the provisions of applicable law in effect from time to time (the “Advanced Study Fund
Ceiling”). For the removal of any doubt, it is hereby agreed that the Advanced Study Fund Ceiling shall serve
as the basis for the calculation of deductions and contributions to the Advanced Study Fund.

 

		5.2.2.	The Company shall contribute an aggregate monthly amount equal to 7.5% of the Salary towards an
advanced study fund of Employees’s choice (Keren Hishtalmut) (“Advanced Study Fund”).

 

		5.2.3.	Employee shall contribute, and for that purpose she hereby irrevocably authorizes and instructs
Company to deduct from Employee’s Salary at source, an aggregate monthly amount equal to 2.5% of the Salary as Employee’s
participation in such Advanced Study Fund.

 

		5.2.4.	Employee shall bear any and all taxes applicable and required by law in connection with amounts
payable by Employee and/or Company to the Advanced Study Fund under this Section 5.2.

 

		5.3.	Vacation. Employee shall be entitled to an annual leave per year as indicated in Schedule
A attached hereto. Each leave shall be coordinated with the Direct Supervisor with adequate regard to the needs of the
Company.

 

		5.4.	Sick Leave; Recreation Pay. Employee shall be entitled to sick leave and to annual recreation
pay in accordance with applicable laws and regulations as in effect from time to time.

 

		5.5.	Military Reserve Duty. Employee shall inform the Company of any military reserve duty Employee
has been ordered to perform, immediately after Employee has been notified of the same. In the absence of Employee due to military
reserve duty, Employee shall be entitled to receive Employee’s Salary, including payments for social benefits and other rights
to which Employee is entitled pursuant to this Agreement. Employee undertakes to provide the Company with proper confirmation of
active military reserve duty so that Company may collect from the National Insurance Institute all amounts to which Employee is
entitled in connection with such service.

 

		5.6.	Equipment. The Company may, from time to time, in its sole discretion, provide the Employee
with various equipment (the “Equipment”) for the Employee’s use in the course of performing the Employee’s
obligations pursuant to the Position, provided that the Company’s procedures in respect thereof are followed. Employee shall
bear and pay all (if any) taxes applicable to him in connection with any such Equipment provided. The Employee shall return any
such Equipment to the Company’s principal office immediately following the cessation of the Employee’s employment hereunder,
and the Employee shall not have any rights of lien, delay or set-off with respect to the Equipment.

 

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		6.	Reimbursement of Expenses and Laptop. During the term of this Agreement, the Company
shall (a) reimburse the Employee for cellular phone costs; and (b) provide the Employee a laptop for his disposal. The Employee
undertakes to take good care of the laptop and to return it to the Company immediately upon the termination of this Agreement.

 

		7.	Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement

 

The Employee has executed the
Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement in the form attached to his previous employment agreement
with the Company (the “NDA”). The Special Component is the sole consideration for Employee’s commitments
under the NDA and Employee will not be entitled to any further consideration for such commitments, including any entitlement to
royalties for any Service Inventions as defined in Section 132 of the Patent Law, 1967 (the “Patent Law”). This
clause constitutes an express agreement between the Employee and the Company for the purposes of Section 134 of the Patent Law.

 

		8.	Termination

 

		8.1.	Either party may, at any time during the Term, furnish the other party hereto with a written notice
that this Agreement is terminated (“Termination Notice”). The Termination Notice must be furnished, in
writing, to the other party, as indicated in Schedule A attached hereto, prior to the Termination Notice having effect
(the “Notice Period”). The Termination Notice shall set forth both the date on which said notice is being furnished
and the date on which the Termination Notice shall be effective.

 

		8.2.	In the event that a Termination Notice is delivered by either party hereto, the following shall
apply:

 

		8.2.1.	During the Notice Period, the Employee shall be obligated to continue to discharge and perform
all of Employee’s duties and obligations with the Company and to take all steps, satisfactory to the Company, to ensure the
orderly transition to any persons designated by the Company of all matters handled by Employee during the course of Employee’s
employment with the Company.

 

		8.2.2.	Notwithstanding the provisions of Section ‎8.2.1 above to the contrary, by notifying Employee
concurrently with or at any time after a Termination Notice is delivered by either party hereto, the Company shall be entitled
to either: (i) waive any and/or all of Employee’s services with the Company during the Notice Period or any part thereof
or; (ii) terminate the employer-employee relationship prior to the completion of the Notice Period; provided that in any such event,
the Company shall pay Employee for the aforesaid Notice Period or any part thereof, a sum equal to the full value of salary, social
benefits (i.e. Managers' Insurance) according to this Agreement and as required under applicable laws and in accordance with the
Prior Notice Law.

 

By the end of the Notice Period
or the termination of the employer-employee relationship, which ever comes first, or in the event the Company has waived Employee’s
services during the Notice Period, then upon the furnishing of a notice to Employee to that effect, Employee shall return to the
Company any Equipment provided to him by the Company.

 

		8.3.	Notwithstanding the provisions of Sections 8.1 and ‎8.2 above, the Company, by furnishing a
notice to Employee, shall be entitled to terminate Employee’s employment with the Company with immediate effect in the event
that said termination is Termination for Cause (as defined below). In the event of such Termination of Cause, then without derogating
from the rights of the Company under this Agreement and/or any applicable law, the Employee shall not be entitled to any of the
consideration specified in Section ‎8.2 above.

 

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		8.4.	As used in this Agreement, the term “Termination for Cause” shall mean termination
of Employee’s employment with Company as a result of the occurrence of any one of the following: (i) Employee has committed
a criminal offense directly related to the Employee's engagement with the Company and provided that such offense involves moral
turpitude; (ii) Employee is in material, malicious breach of Employee’s duties of trust or loyalty to the Company; (iii)
any intentional material breach of this Agreement which has not been cured by Employee within fifteen (15) after his receipt of
notice from the Company containing a description of such breach, (iv) Employee deliberately causes malicious harm to the Company’s
business affairs; (v) Employee materially, maliciously breaches any of the provisions of the NDA; and/or (vi) circumstances that
constitute “cause” or do not entitle Employee to severance payments under any applicable law and/or under any judicial
decision of a competent tribunal.

 

		8.5.	Without derogating from the Company’s rights pursuant to any applicable law, in the event
that Employee shall terminate Employee’s employment with the Company with immediate effect or upon shorter notice than the
Notice Period, the Company shall have the right to offset the amount of compensatory payment to which Employee would otherwise
have been entitled under the Prior Notice Law or any part thereof, as the case may be, from any other payments payable to Employee.

 

		8.6.	Upon termination of Employee’s employment with the Company, and as a condition to the fulfillment
of Company’s obligations, if any, towards Employee at such time, Employee affirms and undertakes to transfer Employee’s
Position to its replacement, as shall reasonably be determined by Company, in an efficient, complete, appropriate and orderly manner,
and to fulfill Employee’s obligations under this Agreement, provided that the foregoing shall not apply following the expiration
of 30 days after the effective termination of this Agreement.

 

		9.	General Provisions

 

		9.1.	Employee may not assign or transfer any right, claim or obligation provided herein.

 

		9.2.	Employee shall not be entitled to any additional bonus, payment or other compensation in connection
with Employee's employment with the Company, other than as provided herein.

 

		9.3.	The Company shall withhold, or charge Employee with, all taxes and other compulsory payments as
required under applicable law with respect to all payments, benefits and/or other compensation paid to Employee in connection with
Employee’s employment with the Company.

 

		9.4.	In the event of an Exit (as defined below), the Company shall be entitled to assign or transfer
any right, claim or obligation provided herein.

 

“Exit” shall
mean (i) a merger, acquisition, reorganization or similar transaction pursuant to which the holders of equity interests of the
Company prior to the consummation of such transaction represent less than 50% of the equity interests of the Company following
such transaction (directly or indirectly), or (ii) a sale of all or substantially all of the assets of the Company.

 

		9.5.	The Company shall be entitled to offset from any and/or all payments to which Employee shall be
entitled thereof, any and/or all amounts to which the Company shall be entitled from Employee at such time; and for that purpose
Employee hereby irrevocably authorizes and instructs the Company to offset from any amounts which may be due or owing to Employee
from the Company, all amounts to which the Company shall be entitled from Employee at any time, to the extent applicable by the
Israeli Law.

 

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		9.6.	The Company’s failure or delay in enforcing any of the provisions of this Agreement shall
not, in any way, be construed as a waiver of any such provisions, or prevent the Company thereafter from enforcing each and every
other provision of this Agreement, including those which were previously not enforced.

 

		9.7.	This Agreement shall not be amended, modified or varied by any oral agreement or representation
other than by a written instrument executed by both parties, or their duly authorized representatives.

 

		9.8.	This Agreement shall be interpreted and construed in accordance with the laws of the State of Israel.
The parties submit to the exclusive jurisdiction of the competent courts of the city of Tel Aviv in any dispute related to this
Agreement.

 

		9.9.	This Agreement and the NDA constitute the entire agreement of the parties hereto with respect to
the subject matters hereof, and supersede all prior agreements and understandings between the parties with respect thereto. The
parties hereto hereby acknowledges that any previous agreement with respect to provision of services to the Company by the Employee
and/or its affiliates, and/or employment of he Employee by the Company, including without limitation, the Services Agreement and
the Original Employment Agreement by and between the Company, are hereby terminated and shall have no force and effect.

 

For the avoidance of doubt,
nothing herein shall affect any option agreement or any other equity-based incentive plan which has been signed between the Company
and the Employee and such option agreement(s) will continue to be in full force and effect.

 

		9.10.	Captions and paragraph headings used in this Agreement are for convenience purposes only and shall
not be used for the interpretation thereof.

 

		9.11.	Notices given hereunder shall be in writing and shall be deemed to have been duly given on the
date of personal delivery, on the date of postmark if mailed by certified or registered mail, or on the date sent by facsimile
upon transmission and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the first business
day following transmission and electronic confirmation of receipt, addressed as set forth above or such other address as either
party may designate to the other in accordance with the aforesaid procedure.

 

		9.12.	The parties agree that this Agreement constitutes, among other things, notification in accordance
with the Notice to Employee Law (Terms of Employment), 2002.

 

THE EMPLOYEE ACKNOWLEDGES
THAT HE IS FAMILIAR WITH AND UNDERSTANDS THE ENGLISH LANGUAGE AND DOES NOT REQUIRE TRANSLATION OF THIS AGREEMENT AND ITS EXHIBITS
TO ANY OTHER LANGUAGE. THE EMPLOYEE FURTHER ACKNOLWEDGES THAT THE COMPANY HAS ADVISED HIM THAT HE MAY CONSULT AN ATTORNEY BEFORE
EXECUTING THIS AGREEMENT AND THAT HE HAS BEEN AFFORDED AN OPPORTUNITY TO DO SO. 

 

	העובד מצהיר בזאת כי השפה האנגלית מוכרת ומובנת לו וכי הוא אינו זקוק לתרגום הסכם זה ונספחיו לשפה אחרת. העובד גם מצהיר ומודיע כי הומלץ בפניו על ידי החברה לקבל ייעוץ משפטי בקשר להסכם זה בטרם החתימה עליו וכי ניתנה לו הזדמנות נאותה לעשות כן.

 

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IN WITNESS WHEREOF,
the parties hereto have duly executed this Agreement on the day and year first set forth above.

 

	 	COMPANY:
	 	 
	 	POLYPID LTD.
	 	 
	 	By:	/s/ Amir Weisberg
	 	Name: Amir Weisberg
	 	Title: CEO
	 	 
	 	EMPLOYEE:
	 	 
	 	/s/ Noam Emanuel
	 	 
	 	Noam Emanuel

 

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Schedule A

 

	1.       Name of Employee:	Noam Emanuel
	 	 
	2.       I.D. No. of Employee:	055997621 
	 	 
	3.       Address of Employee:	1 Ha'atzmaut St. Rehovot, Israel
	 	 
	4.       Position in the Company:	CTO
	 	 
	5.       Direct Supervisor:	CEO
	 	 
	6.       Effective Date:	As of the company's IPO
	 	 
	7.       Notice Period:	6 months notice period
	 	 
	8.       Salary:	NIS 62,000 gross per month (comprised of  (i) Base Salary in the amount of NIS 55,800, (ii) Global Overtime Compensation in the amount of NIS 1,240, and (iii) Special Component in the amount of NIS 4,960
	 	 
	9.       Vacation Days Per Year:	24 
	 	 
	10.     Employee shall be entitled to company car according to the company policy.  If employee elects not to use such a car, his salary shall be increased by NIS 7,050.	 
	 	 

 

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Exhibit A

 

GENERAL APPROVAL
REGARDING PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY

 

By virtue of my power
under section 14 of the Severance Pay Law, 1963 (hereinafter: the “Law"), I certify that payments made by an
employer commencing from the date of the publication of this approval publication for his employee to a comprehensive pension benefit
fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit
Funds) Regulations, 1964 (hereinafter: the “Pension Fund") or to managers insurance including the possibility
of an insurance pension fund or a combination of payments to an annuity fund and to a non-annuity fund (hereinafter: the “Insurance
Fund), including payments made by him by a combination of payments to a Pension Fund and an Insurance Fund, whether or not
the Insurance Fund has an annuity fund (hereinafter: the “Employer's Payments), shall be made in lieu of the severance
pay due to the said employee in respect of the salary from which the said payments were made and for the period they were paid
(hereinafter: the “Exempt Salary"), provided that all the following conditions are fulfilled:

 

		(1)	The Employer's Payments -

 

		(a)	To the Pension Fund are not less than 141/3% of the Exempt Salary or 12%
of the Exempt Salary if the employer pays for his employee in addition thereto also payments to supplement severance pay to a benefit
fund for severance pay or to an Insurance Fund in the employee's name in an amount of 21/3% of the Exempt
Salary. In the event the employer has not paid an addition to the said 12%, his payments shall be only in lieu of 72% of the employee's
severance pay;

 

		(b)	To the Insurance Fund are not less than one of the following:

 

		(2)	131/3% of the Exempt Salary, if the employer pays for his employee in addition
thereto also payments to secure monthly income in the event of disability, in a plan approved by the Commissioner of the Capital
Market, Insurance and Savings Department of the Ministry of Finance, in an amount required to secure at least 75% of the Exempt
Salary or in an amount of 21/2% of the Exempt Salary, the lower of the two (hereinafter: “Disability
Insurance");

 

		(3)	11% of the Exempt Salary, if the employer paid, in addition, a payment to the Disability Insurance,
and in such case the Employer's Payments shall only replace 72% of the Employee's severance pay; In the event the employer has
paid in addition to the foregoing payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund
in the employee's name in an amount of 21/3% of the Exempt Salary, the Employer's Payments shall replace
100% of the employee's severance pay.

 

		(4)	No later than three months from the commencement of the Employer's Payments, a written agreement
is executed between the employer and the employee in which -

 

		(a)	The employee has agreed to the arrangement pursuant to this approval in a text specifying the Employer's
Payments, the Pension Fund and Insurance Fund, as the case may be; the said agreement shall also include the text of this approval;

 

		(b)	The employer waives in advance any right, which it may have to a refund of monies from his payments,
unless the employee’s right to severance pay has been revoked by a judgment by virtue of Section 16 and 17 of the Law, and
to the extent so revoked and/or the employee has withdrawn monies from the Pension Fund or Insurance Fund other than by reason
of an entitling event; in such regard "Entitling Event" means death, disability or retirement at after the age of 60.

 

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		(5)	This approval is not such as to derogate from the employee's right to severance pay pursuant to
any law, collective agreement, extension order or employment agreement, in respect of salary over and above the Exempt Salary.

 

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