Document:

Exhibit 10.17

 

Service Provider Agreement

 

That was written and signed on the 8th day
of the month of November year 2015

 

By and between

 

L. & S. Light and Strong Ltd.

 

Co. no. 514030741

 

Ha- Adom St. Industrial Zone Kanot, P.O.
Box 7042

 

Gadera 707000

 

(hereinafter: the “Company”)

 

Of the first part;

 

And

 

Yehuda Yaavetz – Chen, identity Certificate
no. 067671149

 

Of 16 Nesher St. Caesarea 30899

 

(hereinafter: the “Service Provider”)

 

Of the second part;

 

 

 

		Whereas	the Company is a private company that was incorporated in Israel and that specializes in the manufacture of products from composite
materials;

 

		And whereas:	the Company wishes to employ the Service Provider as
a director in the Company in a manner and under the terms as set forth in this agreement hereafter and the Service Provider agrees
to this;

 

		And whereas:	according to the Companies Law, 5759 – 1999 (hereinafter:
the “Companies Law”) the payment in consideration for the services that shall be paid to the Service Provider by the
Company is subject to the approvals of the authorized organs in the Company: the board of directors of the Company and the general
meeting of the shareholders which have not yet been received at the time of signing this agreement;

 

		And whereas:	the parties wish to regulate their relationship and to
put in in writing, all as set forth in this agreement hereafter;

 

 

    	 

     

    

 

 

Therefore, it has been stipulated,
declared and agreed between the parties as follows:

 

		1.	Introduction

 

		1.1.	The preamble of this agreement and the parties’ declarations in it constitute an integral part of it.

 

		1.2.	The titles of the sections are for the purpose of convenience only and no weight shall be given to them in the interpretation
of this agreement.

 

		1.3.	The appendixes of this agreement constitute an integral part of this agreement and are part of its terms. In the event of a
contradiction the provisions of the appendixes shall prevail over the agreement.

 

 

		2.	The Contractual Engagement

 

		2.1.	The Service Provider shall grant to the Company in the framework of the contractual engagement
pertaining to this agreement his services as an active director in the Company (hereinafter: the “Services”).

 

		2.2.	The services shall be given by the Service Provider being an independent contractor, and they shall
be supplied by Mr. Yehuda Yavetz – Chen, identity certificate no. 067671149 who shall serve in his position as director in
the Company (hereinafter the “Service Provider”).

 

		2.3.	During the period of the contractual engagement (as defined in section 4.1 hereafter, the Service
Provider shall invest his time and effort in fulfilling his job as an active director in the Company under a scope of services
that is parallel to the scope of a fourth of a position.

 

		2.4.	The Service Provider undertakes to fulfill his position in the Company faithfully and with dedication
and to invest his time, efforts, experience and knowledge in the fulfillment of his position and in the advancement of the Company’s
business subject to the policy of the Company, as it shall be from time to time and in accordance with the instructions that shall
be given to him by the Company, in accordance with what is agreed in the framework of this agreement. The Service Provider shall
not engage in other activities in a manner that shall prevent him from meeting his undertakings according to this agreement.

 

 

		3.	Supervision of the Company

 

The services shall be given
by the Service Provider to the Company and the Service Provider shall be subject in the framework of his position directly to the
CEO of the Company and the board of directors of the Company.

 

		4.	The Period of the Contractual Engagement

 

		4.1.	The period of the contractual engagement according to this agreement shall begin on the date of
signing this agreement and it shall continue as long as any of the parties has not notified of his wish to terminate the contractual
engagement (hereinafter the “Period of the Contractual Engagement”).

 

		4.2.	Notwithstanding the provisions in section 4.1 above, each of the parties of this agreement is entitled
to terminate the period of the contractual engagement according to this agreement for any reason, provided that they gave an advance
written notice of 2 months in advance to the other party and this shall not be considered as a breach of the agreement (hereinafter:
“Advance Notice” and “Advance Notice Period”, respectively).

 

    	 

     

    

 

 

		4.3.	In any event that one of the parties shall notify of the termination of the agreement as mentioned
in section 4.2 above, the Service Provider shall continue to give services according to this agreement up to the end of the early
notice period unless it is otherwise requested by the Company, provided that all of the consideration for the early notice period
or the balance of the early notice period, respectively shall be paid to the Service Provider. During the period of the early notice,
the Service Provider undertakes to do everything that he can in order to help the Company perform an organized transfer of the
position to a person that shall be appointed for this on behalf of the Company.

 

		4.4.	Notwithstanding the provisions in section 4.2 it is agreed between the parties that the Company
is entitled to terminate the contractual engagement with the Service Provider, immediately, without any advance notice, in each
of the following cases:

 

		4.4.1.	The Service Provider has materially breached his undertakings according to this agreement.

 

		4.4.2.	The Service Provider was convicted for performing a shameful criminal offense.

 

		4.4.3.	The Service Provider has abused his position in the Company or has breached his fiduciary duty
towards the Company;

 

		4.4.4.	The Service Provider has entered into bankruptcy proceedings.

 

		4.4.5.	The Service Provider has passed away and/or has lost his legal competency and/or has loss his ability
to work for a period that exceeds 45 days.

 

		4.5.	If the Service Provider’s work has ended or has been terminated for any reason, including
but not only, in accordance with the aforesaid in this section, the Service Provider undertakes to return to the Company, to a
place where the Company shall order him, immediately and without any delay, any written material and/or printed material and/or
recorded material and/or typed material and/or any other information that he has in his possession.

 

		4.6.	The Service Provider undertakes to refund to the Company any equipment and/or property that belongs
to the Company and that is in his possession, when it is in proper condition as it was given to the Service Provider, except for
natural wear and tear for the reasonable use of the property.

 

 

		5.	Consideration and Benefits

 

		5.1.	In consideration for providing the services and against fulfilling all of the undertakings of eh
Service Provider in accordance with this agreement, the Company shall issue to the Service Provider 3% of the Company’s outstanding
share capital as of the date of signing this agreement in other words, 1,831,586 options to purchase 1,831,586 ordinary shares
of the Company without any par value, under the terms and in accordance with the current option plan of the Company, attached hereto
as appendix A and in accordance with the option agreement that is attached hereto as appendix B.

 

    	 

     

    

 

 

		5.2.	The issue of options shall be performed in accordance and subject to the approvals required according
to the law.

 

		5.3.	It is agreed by the parties that the consideration in section 5.1 above constitute full consideration
for providing the services.

 

		5.4.	It is further agreed between the parties that except for the consideration mentioned in this section
5, the Service Provider shall not be entitled to receive from the Company and/or from any third party any additional benefit and/or
wages and/or remuneration of any type and kind for providing the services pertaining to this agreement.

 

 

		6.	The Service Provider’s Undertakings

 

		6.1.	Without derogating from the other provisions of this agreement the Service Provider confirms and
declares as follows:

 

		6.1.1.	That he has all the qualifications required for fulfilling his position in the framework of the
services of the Service Provider.

 

		6.1.2.	That he shall be entitled, during the period of the existence of this agreement, to grant services
as a contractor to anyone provided that this shall not harm the performance of his undertakings according to this agreement.

 

		6.1.3.	That he shall refuse to receive and he shall not receive any payment and/or any other benefit from
any third party that has a direct connection or indirect connection with the services of the Service Provider which he performs
for the Company, including from the Company’s customers and/or suppliers.

 

		6.1.4.	That he shall grant the Service Provider services to the Company with maximum discretion, diligence
and faith, using all of his abilities, experience, knowledge for the Company’s benefit and in favor of its promotion and
avoidance of conflicts of interests.

 

		6.1.5.	That he shall notify the Company, immediately and without any delay, of any matter and/or issue
in respect to which he has a persona interest in and/or that could create a conflict of interests with providing the services to
the Company.

 

		6.1.6.	That he shall act according to the provisions of any law and statute regarding the services provided
as mentioned in this agreement.

 

		6.1.7.	That insofar as I am aware, he has no limitation that prevents him from providing the services
to the Company in the framework of this agreement.

 

		6.1.8.	That he has no criminal past and/or criminal record in the Israel Police and insofar as he is aware
no lawsuit and/or case and/or police investigation is pending against him and there is no reason that such shall be instituted/
conducted against him.

 

 

    	 

     

    

 

 

		6.2.	It is agreed between the parties that the rights of the Service Provider according to this agreement
are personal rights and the Service Provider shall not be entitled to sell and/or transfer and/or assign etc... his rights
and undertakings according to this agreement and/or any part of it, whether directly or indirectly, and in any form, to another
and/or others, whether for consideration or not for consideration, and/or in any other form, unless this shall be agreed otherwise
in advance and in writing by the Company, and this is subject to the provisions of any law including the convening of a shareholders
meeting of the Company, insofar as there is a need to do so according to the law.

 

		6.3.	The provisions in this section, and all of its sub- sections are material terms of this agreement.

 

 

		7.	Conflicting Claims

 

		7.1.	The Service Provider hereby declares that it is clear to him and agreed that the consideration
set forth in section 5 above is based on his declarations in this section hereafter, regarding the representation that he created
towards the Company and the basic assumption of this agreement that there is no employment relationship between the Service Provider
and the Company.

 

		7.2.	The Service Provider hereby declares that in the framework of the services provided by him in accordance
with this agreement, no employment relationship exists or shall exist between him and the Company in any form or manner.

 

		7.3.	It is fundamentally agreed that the monthly consideration set forth in section 5 of this agreement
was determined taking into consideration the fact that the Service Provider is an independent contractor and that he is not an
“employee of the Company”, and it is based on his statements in sections 7 and 8 hereafter, on the representation that
he created towards the Company and the basic assumption of this agreement that there is no employment relationship between the
Service Provider and the Company. Therefore it is agreed that the Company shall not have for the engagement or termination of engagement
of the Service Provider as a director in the Company any additional expenses including, any social benefits (including annual vacation,
convalescence pay, national insurance pay, remuneration, severance pay, supplementary study fund, holiday pay, reserve duty pay,
maternity leave, car expenses etc...) so that the monthly consideration as mentioned is the full, comprehensive and exclusive
costs that the Company shall have with respect to receiving the services of the service provide which he provides to the Company
in the framework of this agreement as a self – employed contractor.

 

		7.4.	The Service Provider hereby undertakes to indemnify the Company for any claim of any type or kind
that shall be filed against the Company, with respect to the question of the existence of an employment relationship between the
Service Provider and any of the employees of the private Company, whether the lawsuit is filed by the Service Provider and/or by
his employee and/or by his substitute and/or their heirs according to law and whether by any third party.

 

 

    	 

     

    

 

 

		7.5.	Therefore, the Service Provider agrees that in any event in which any rights are sued and/or demanded
in any form from the Company in respect to the existence of an employment relationship and/or if it is ruled by a judicial instance
and/or any other authority that there is an employment relationship between him and the Company, notwithstanding the provisions
in this agreement, the effective salary for the purpose of any law or right in the law as an employee (including but not only,
severance pay, vacation pay, convalescence pay, pension, advance notice pay etc...) shall be calculated on the basis of the
amount that equals 70% of the monthly consideration set forth in section 5 above and the consideration shall be regarded as if
it was agreed in this way from the beginning and the Service Provider shall refund to the Company the difference in the amount
of 30% of the consideration with additional linkage differences and interest according to law, from the date of payment of each
payment of consideration and up to the date of the actual refund.

 

The provisions in this section
shall apply, whether a claim is raised regarding the existence of an employment relationship in any manner and/or if a claim is
filed against the Company and/or against any other company that the Company is associated with, by the Service Provider and whether
it is raised by an employee of the Service Provider and/or their substitutes and/or estates and/or heirs and/or any other third
party that is connected to him and in this respect the Service Provider and/or his estate shall be regarded as obligated to pay
such refund above, before any payment is paid to the Service Provider and/or his estate and/or his substitutes.

 

		7.6.	The provisions above do not derogate from any other remedy or relief that are available to the
Company according to this agreement and/or according to the law.

 

		7.7.	The provisions in this section, and all of its sub- sections, is a fundamental terms of this agreement.

 

		8.	The Status of the Service Provider

 

		8.1.	Without derogating from the other provisions of this agreement, it is agreed by the parties that
the Service Provider serves as a self – employed contractor for all intents and purposes and that no employment relationship
exists or shall exist between the Service Provider and the Company in any form or manner.

 

		8.2.	It is agreed by the parties that the Service Provider shall be solely responsible for his relationship
with the tax authorities including – income tax, the national insurance institute and value added tax.

 

		8.3.	It is agreed between the parties that the Service Provider shall himself bear payment of all the
taxes and/or fees and/or governmental payments and/or other payments for conducting his business and inter alia, the payment of
income tax, value added tax, national insurance pay, employers’ tax etc...

 

		8.4.	It is hereby agreed and clarified that the Service Provider is a self-employed contractor for performing
all of his undertakings according to this agreement, and that the contractual engagement with him as a self –employed contractor
was made at his express demand. It is further clarified that an employer of the Service Provider shall not be considered an employee
of the Company for any purpose, and no employment relationship shall exist between him and the Company.

 

 

    	 

     

    

 

 

		8.5.	The provisions in this section, and all of its sub- section, is a fundamental term of this agreement.

 

 

		9.	Condition Precedent

 

In accordance with the provisions
of the Companies Law, this agreement becoming effective, including the payment of the monthly consideration and the issuing of
the options are conditioned upon the approval of the following organs: (a) the approval of the board of directors of the Company;
and (b) an approval of the general meeting of the Company’s shareholders by the majority required according to the Companies
Law.

 

 

		10.	Maintaining Secrecy; Non – Competition and Conflict of Interests

 

The Service Provider undertakes
to sign the undertakings that include provisions regarding maintaining confidentiality and non – competition in the wording
attached as appendix C of this agreement, and he shall undertake towards the Company that:

 

		10.1.	The Service Provider undertakes to keep completely confidential
any data and/or document and/or knowledge and/or information concerning the providing of the services to the Company and/or the
Company’s business activities. The Service Provider is aware that any such information that is not public domain constitutes
property that belongs to the Company. The aforesaid shall not apply to information that is public domain provided that it did
not reach the public domain as a result of an action or omission of the Service Provider and/or anyone on his behalf. The aforesaid
does not derogate from the authority of the Service Provider to use the information, including giving it to third parties, in
the framework and for fulfilling his position as CEO of the Company and performing his work in it and to the same extent that
this shall be required.

 

The
provisions of this section shall apply to the Service Provider without any time limit (and even after the end or cancelation of
this agreement for any reason), however, they shall not apply or they shall cease to apply, respectively, regarding information
as mentioned that is public domain at the time this agreement comes into force or that it shall become public domain not due to
an action or omission of the Service Provider.

 

		10.2.	The Service Provider undertakes not to be in a position
of a conflict of interests between his various businesses and the service that is given by him to the Company. In any event that
there shall be a concern of the existence of a conflict of interests, the Service Provider undertakes to notify this to the Company
in advance and to receive its written approval to act as set forth above.

 

		10.3.	During the period of the agreement and for an additional
period of 12 months after its end (for any reason that will cause the termination of the agreement) the Service Provider shall
not engage and shall not grant services directly or indirectly, including not by a corporation in which he shall have a financial
interest, in activities competing with the Company’s activities and in the Company’s fields of business.

 

    	 

     

    

 

 

		10.4.	For the sake of avoiding doubt, it is clarified that
the passing of the period of 12 months as mentioned in section 10.3 above shall not be construed as such that derogates from the
undertakings to maintain confidentiality as mentioned above, and in appendix C, that will continue to remain in force during the
period mentioned in section 10.1 above.

 

		10.5.	The undertakings of the Service Provider according to
this section and according to appendix C, are fundamental undertakings in this agreement.

 

 

		11.	Intellectual Property

 

		11.1.	Plans, opinions, ideas, trademarks, patents and intellectual
property rights etc... that shall be developed and/or prepared by the Service Provider for the Company and/or any of its
customers, shall be, at all times, the exclusive property of the Company and the Service Provider shall not be entitled to any
payment and/or remuneration and/or compensation for each of those.

 

		11.2.	Without derogating from the Service Providers other undertakings,
the Service Provider hereby undertakes to give all the documentation to the Company that he shall have regarding providing the
services by him to the Company, including but not only, the original plans, the source software and all the documents, the information,
the databases, the explanations and any other information, whether in writing or in a digital form and/or analogical form and
whether verbal and in any other manner according to the provisions of this agreement, at any time that shall be demanded and immediately
when demanded.

 

		11.3.	The Company is entitled at all times, according to its
absolute sole discretion, to use the material or any information, document, software, database, plans etc... and other details
that were given by the Service Provider and the Company is entitled to publish and/or deliver material, all or in part, to whoever
it shall see fit, according to its exclusive discretion, in any manner and this is without the need to receive any consent from
the Service Provider.

 

		11.4.	The Service Provider undertakes not to transfer and/or
deliver any information, document, object etc... that according to their nature, are not public domain, that have reached
the Service Provider as a result and/or with respect to providing the services of the Service Provider, to any third party and/or
to the public and this is including any part of them and/or any right according to them and/or any benefit.

 

 

		12.	Professional Liability and Claims

 

		12.1.	The Service Provider fundamentally undertakes to inform
the Company in writing and immediately upon the occurrence of an event that in which there is a concern that a claim shall be
filed as a result of it against the Service Provider and/or the Company for negligence and/or an omission and/or action in the
framework of providing the services to the Company.

 

 

    	 

     

    

 

 

		12.2.	In addition the Service Provider undertakes to inform
the Company in writing of any claim and/or demand and/or letter and/or complaint that shall be filed against him following his
engagement as a Service Provider immediately and without delay. In such notice the Service Provider shall set forth all the details
of the event and he shall furnish to the Company all the relevant documents all so that the Company may consider the continuation
of receiving services form the Service Provider in light of the event.

 

 

 

		13.	Miscellaneous

 

		13.1.	This agreement includes everything that has been agreed
upon between the Service Provider and the Company. Upon signing this agreement all the agreements, understandings and letters
of undertaking that were exchanged between the parties before its signing, if existing – are null and void.

 

		13.2.	Each party shall pay his costs for preparing this agreement.

 

		13.3.	The provisions of the agreements and arrangements that
apply to the Company’s employees and the terms of employment of the Company’s salary paid employees and the terms
that apply to other contractors in the Company (if and insofar as existing) shall not apply to the relationship between the Company
and the Service Provider.

 

		13.4.	It is expressly agreed that the account books and records
of the Company shall constitute prima facie evidence of the truth of that registration for all intents and purposes or a transaction
or account registered in them.

 

		13.5.	No conduct of any of the parties shall be considered
as a waiver of any of his rights according to this agreement and/or according to any law or as a waiver and consent on his part
to any breach or non- performance of any terms of this agreement by the other party or as giving a deferral, extension or as a
change, cancellation or addition of any term, unless they were expressly made in writing.

 

 

		13.6.	Any change, cancellation, addition or amendment to this
agreement shall be made in writing and shall obligate only after the signature of both parties.

 

		13.7.	The competent court in the city of Tel Aviv is hereby
granted exclusive jurisdiction to hear any dispute that shall occur between the parties with respect to this agreement and/or
upon granting the services of the Service Provider according to this agreement.

 

 

    	 

     

    

 

 

		14.	Addresses and Notices

 

		14.1.	The addresses of the parties for the purpose of this
agreement are as set forth in the preamble of this agreement or any other address of any of the parties which he shall notify
of in writing to all the other parties.

 

		14.2.	Any notice that shall be sent by one party to the other,
shall be sent in writing by facsimile, and in addition, in writing by registered mail according to the addresses that appear in
the preamble of this agreement and/or by personal delivery. A notice that was delivered by post shall be considered as if it was
received within 72 hours after it was sent by registered mail in a post office in Israel. A notice that was personally delivered
shall be considered as having been received immediately upon its delivery. With respect to this section Saturdays and Jewish holidays
shall not be included in the count of days.

 

 

 

And in witness whereof the parties
have signed:

 

	 	 ( - )
	_____________________________________	________________________________
	The Company	The Service Provider

 

 

    	 

     

    

 

 

Appendix B

 

	Attn.	___ in ______________ 2015

L. & S. Light and Strong

 

(hereinafter: the “Company”)

 

 

 

Dear sirs,

 

 

Re: Non – Disclosure Undertaking

 

 

Following my contractual engagement with
the Company in an agreement to provide services of the ___________ (hereinafter: the “Agreement”) in which I was exposed
in the past and I shall be exposed in the future to information regarding the Company, including secret information, as defined
hereafter. Therefore since you wish to ensure that this secret information shall not be disclosed to any third party, except to
my employees and/or others acting by my virtue and/or on my behalf (hereinafter: “Third Party”) and will not serve
for any other purpose except for providing the services to the Company (as defined in this agreement), I therefore undertake towards
you as follows:

 

“Secret Information” –
any information that is associated with the Company and its activities that was transferred and/or shall be transferred to us whether
in writing or verbally, and any material, knowledge or any other information with respect to the Company (hereinafter jointly referred
to as the “Information”) provided that the information reached us and/or anyone on our behalf from the Company and/or
anyone on its behalf, whether verbally or in writing, all except for information that is public domain or information that has
become public domain or that was known to us before it was given to us by the Company or anyone on its behalf or that reached us
or that shall reach us from third parties, not while breaching our undertaking towards you according to the undertaking.

 

		2.	To keep completely secret and not to deliver, disclose, publish or describe, to any third party,
the secret information, all or in part, whether directly or indirectly, except if I shall receive your prior written approval,
to do so, under the terms you shall stipulate.

 

		3.	To keep secret the actual existence of the secret information, except as required according to
law and in coordination with you.

 

		4.	Not to perform by myself or not to allow a third party to copy the secret information, to photograph
it, to copy it, to print it or to make any use of it in any form unless we have received from you express prior written permission
to do so.

 

		5.	Without derogating from the generality of the aforesaid I undertake not to give, disclose, publish
or describe, without your prior written consent, the secret information to any third party, except to my employees and/or those
acting by my virtue and/or on my behalf, and the secret information is required by them for the purpose for which the secret information
was given to us, as mentioned above, and provided that they shall expressly undertaking in writing and in advance to keep complete
secrecy of the secret information, in accordance with the statements in this letter of mine.

 

 

    	 

     

    

 

 

For the sake of avoiding doubt,
it is emphasized that the failure to fulfill these conditions by any of my employees and/or those acting by my virtue and/or on
my behalf cannot release me from my obligations and duties according to this non- disclosure undertaking.

 

		6.	To carefully keep the secret information secret, to take means of caution that are required in
order to prevent the possibility that the secret information would leave my possession and reach a third party.

 

		7.	Subject to the provisions of any law, if I will be required, according to any law, to give the
secret information and/or any part of it, directly or indirectly, I will notify you of this immediately and in writing, if possible
before delivering any information as mentioned, and if this is not possible according to law, as soon as possible after it is delivered.
Furthermore, subject to the provisions of any law, I undertake that in these circumstances of the matter I will do to my best ability
in order to leave you reasonable and sufficient time to defend yourself against such demand.

 

		8.	You shall be entitled to sue any legal remedy against me, that is available to you according to
any law, in the event of a breach of any of my undertakings mentioned above, whether by me or by anyone of my employees and/or
those acting by my virtue and/or on my behalf, including a lawsuit for an injunction, mandatory order and order to collect information.

 

		9.	I hereby declare that I am aware of the fact that you are giving me and/or shall give me the secret
information based on my undertakings mentioned above and I undertake that these undertakings shall remain fully valid without any
limit in time, unless such information has stopped being secret in the meantime which is not as a result of our breach of the provisions
of this agreement.

 

		10.	No waiver, delay, avoidance from action or giving an extension by you shall be construed in any
circumstances as a waiver by you, jointly and/or separately of your rights according to this non- disclosure undertaking and according
to any law, and they shall not prevent you from taking any legal steps and others that are required for exercising your rights.

 

		11.	For the entire duration of my engagement, I undertake to refrain from any situation of a conflict
of interests between my interests and the Company’s interests, in my actions with suppliers, customers, public authorities
and any other person or body that engages or is interested to engage with the Company, and in the conducting of my personal affairs.

 

		12.	Any change and/or deviation of any of the provisions of this non- disclosure undertaking shall
not be valid, unless it was set forth in writing in advance and signed by the parties.

 

		13.	In the event that I shall be required according to law to give the confidential information and/or
any part of it, I undertake to notify you immediately in writing of this, so that you may consider taking appropriate legal proceedings
and/or a waiver of the applicability of this document regarding the required information. If you shall not succeed in these proceedings,
I undertake to give, as mentioned only that same part of the secret information that is required according to any law only, and
to do my best in order to ascertain that the information shall be kept confidential.

 

 

    	 

     

    

 

 

		14.	Without derogating from the aforesaid, I undertake that during my work in the Company and during
the period of __________ months after the end of my work in the Company, not to persuade employees and/or other people engaged
by the Company and/or customers and/or suppliers of the Company, to stop their contractual engagement with the Company, and not
to employ or enter into a contractual engagement with any of the Company’s employees.

 

		15.	I agree and confirm that all of the rights of any type and kind, whether proprietary rights or
others, in ideas and/or work methods, and/or software and/or products and/or patents and/or developments and/or improvements and/or
processes and/or techniques (jointly referred to as “inventions”) that I will develop during my work for the Company
and/or that I will take part in and/or that I will be involved in their development shall belong to the Company alone, and I shall
not have any rights in them, and I will be prohibited from making any use of them whether during the period of my work at the Company
or after it. The aforesaid does not derogate from any other undertaking of mine towards the Company in these issues, if such exists.
For the sake of avoiding doubt, I am hereby assigning to the Company or to whoever it shall order, any right, including moral right
and financial right that I have or that I will have in the inventions.

 

		16.	I confirm that the provisions of this undertaking of mine add to one another and do not derogate
from one another, and they add to my obligations according to any law.

 

		17.	I hereby confirm that I have read this undertaking carefully and I have understood its contents
and the meaning of my undertakings according to it and I agree to accept these undertakings upon myself out of my free wish and
out of recognition and undertaking that each of my undertakings above is at the basis of the contractual engagement of my Company
with me, and that this is essential in order to protect the legitimate interests and the Company’s property.

 

 

 

Sincerely,

 

 

 

( - )

 

__________________________

 

The Service
Providerex10-3.htm

Exhibit 10.3

 

 

Learning Tree International, Inc.

 

NONQUALIFIED STOCK OPTION AWARD AGREEMENT

 

To: _____________ (“Optionee”)

 

From: Learning Tree International, Inc.

 

Date:                 

 

Learning Tree International, Inc. (the “Company”) is pleased to inform you that the Compensation and Stock Option Committee of the Board of Directors (the “Committee”) has decided to grant you a nonqualified stock option (your “Option”) to acquire shares of the Company’s Common Stock (“Common Stock” or “Shares”).

 

Your Option will be governed by the attached Standard Terms and Conditions (the “Terms”) and the following specific provisions (which are subject to adjustment as described below and in the Terms):

 

The “Date of Grant” for your Option is _________________.

The “Expiration Date” of your Option is __________________.

The “Exercise Price” per share for your Option is: ___________            

The “Number of Shares” potentially covered by your Option is: ______________.

 

Your Option is a nonqualified stock option.

 

Vesting. As a Company employee, you will earn the right to exercise twenty-five percent (25%) of your Number of Shares on each of __________________, ____________________, _______________ and _________________ if you are employed by the Company or its subsidiaries on such date, except as otherwise set forth in the Terms. As an example, at any time after ___________ but before ___________, the maximum number of shares you may purchase or have purchased under this Option is fifty percent (50%) of the Number of Shares; after _____________, you may purchase up to the total Number of Shares. Of course, you can never exercise the Option after the Expiration Date (as adjusted under the Terms).

 

Please review the Terms carefully, as they control your rights under your Option. Then sign (and if you are married, have your spouse sign) one copy of this letter and return it to: _____________. If you have any questions, please call her.

 

We appreciate your continuing efforts on behalf of the Company.

 

 

	
 
	
Very truly yours,

	
 
	
Learning Tree International, Inc. 

	
 
	
 

	
 
	
By: 
	 
	 	 
	 	Its:	 

 

 

 

 

 

I hereby accept this Option and have reviewed the Award Agreement and the Terms. I understand that I will lose my right to exercise my Option under certain circumstances, including my ceasing to be an employee of the Company, whether voluntary or not. I further understand that I may not transfer my Option except under circumstances described in the Terms.

 

	 	  
	 	  
	 	
 

	 	
Optionee

 

I agree to be bound by all of the terms and conditions of the Award Agreement, including those set forth in the Terms.

 

 

	 	  
	 	  
	 	
 

	 	
Optionee's Spouse

	 	 
	 	 

 

	 	  	  	  
	  
	 	  	  
	 	
Name:
	
 
	
 

	 	  	
 
	  

 

 

THE OPTION AND ANY SHARES ISSUABLE UNDER IT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, SOLD, ASSIGNED, PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREOF AND ANY APPLICABLE STATE SECURITIES LAWS AND AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER HEREOF THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

 

 

 

STANDARD TERMS AND CONDITIONS

 

These Standard Terms and Conditions (the “Terms”) are attached to an award agreement (the “Award Agreement”) from Learning Tree International, Inc. (the “Company”) granting an Option to you, and are intended to govern that Option. All capitalized terms not specifically defined in these Terms have the meanings set forth in the attached Award Agreement.

 

	 	
1.
	
Option. You may exercise the Option to buy all or any part of the Number of Shares of Common Stock which is then exercisable at the Exercise Price per share until the Expiration Date. This Option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

 

	 	
2.
	
Manner of Exercise. This Option may be exercised only (a) during your lifetime, by you; (b) to the extent permitted by the Committee, by your designated beneficiary in the event of your death; and (c) after your death, by your transferees by will or the laws of descent or distribution. To exercise this Option, you must provide the Company with (a) a written notice of exercise in the form attached hereto as Exhibit A, and (b) the full purchase price of the shares to be purchased (i) in cash or by check or promissory note payable to the order of the Company or (ii) by delivery of shares of Common Stock of the Company previously purchased on the open market or acquired through exercise of a stock option, and in your possession, valued at fair market value, or (iii) in consideration received from a licensed broker under a cashless exercise program, or (iv) any combination of the foregoing or such other consideration as permitted by applicable laws and the Committee. This Option may not be exercised for a fraction of a share and no partial exercise of this Option may be for less than (a) one hundred (100) shares or (b) the total number of shares then eligible for exercise, if less than one hundred (100) shares.

 

	 	
3.
	
Termination of Service; Death or Disability. The Expiration Date is the earlier of (i) the date set out in the Award Agreement, or (ii) the expiration of a period following the time you cease (whether voluntarily or involuntarily) to be an employee of the Company or its subsidiaries, which period will be (a) three (3) months if you ceased to be an employee for any reason other than your death, Disability or Retirement, or (b) twelve (12) months if you die or become Disabled while you are an employee of the Company or one of its subsidiaries. Any options not exercisable on the date that you cease to be an employee (whether voluntarily or involuntarily) will be of no further force or effect. After the Expiration Date, the Option will expire and be void and of no further force or effect. For purposes of these Terms and the Award Agreement, Disability means a permanent and total disability within the meaning of Section 22(e)(3) of the Code, and Retirement means, in the case of an employee, a termination of employment by reason of the employee’s retirement at or after age 62. 

 

	 	
4.
	
Changes in Capitalization; No Option Repricing. Subject to any required action by the shareholders of the Company pursuant to any applicable listing requirements of any national securities exchange on which Shares of the same share class are then listed and any other requirements of law or of any regulatory bodies having jurisdiction over such Shares, the number of Shares covered by the Option and the Award Agreement, as well as the exercise price per Share of such Option, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to the Option. Further, except for the adjustments provided herein, the Option may not be amended to reduce its initial exercise price, and the Option may not be cancelled and replaced with an Option with a lower price.

 

 

 

 

 

	 	
5.
	
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Committee shall notify you as soon as practicable prior to the effective date of such proposed transaction. The Committee in its discretion may provide for you to have the right to exercise your Option until ten (10) days prior to such transaction as to all of the Shares covered by your Option, including Shares as to which the Option would not otherwise be exercisable. To the extent it has not been previously exercised, the Option will terminate immediately prior to the consummation of such proposed action.

 

	 	
6.
	
Going Private Transaction with Controlling Shareholders. If the Company is taken private by reorganization, merger, stock purchase, asset purchase, share exchange, consolidation or other acquisition transaction by the Company’s current majority shareholders (Dr. David C. Collins and Mrs. Mary C Collins) and the Company’s Common Stock is no longer registered under the Securities Exchange Act of 1934, as amended (the ”Exchange Act”), the Company shall cause (i) the Option to continue to be outstanding according to the Terms and the Award Agreement or (ii) an equivalent equity incentive plan to be adopted by the Company (or any successor to the Company) and a new, substantially identical option award agreement to be granted containing the following terms relative to this Option (in either case referred to as the “Newly Issued Options”): 

 

	 	
o
	
Same % of the Company’s outstanding shares; 

	 	
o
	
Same vesting schedule, which shall take into account and reflect any portion of the Option that had already vested; and 

	 	
o
	
Proportionate adjustment of the exercise price based on the total of the Company’s outstanding shares.

 

 

Upon termination of employment, the Company (or any successor) shall buy back (i) any Newly Issued Options that have vested or (ii) to the extent exercised, the shares issued upon exercise of any Newly Issued Options, at the then-current Company value (the “Option Payment”). The Company shall have the right to pay the Option Payment over a period of up to four (4) years with each payment occurring at the beginning of anniversary of the date of termination (i.e., the first payment will be made on the one-year anniversary of the date of termination and each successive payment will be made one year later for the next three (3) years). Interest at a rate of Prime plus 1% will accrue on any unpaid balance. The value of the Company for purposes of determining the Option Payment shall be determined by use of a third-party appraisal firm (engaged by the Company) that typically undertakes such valuations for annual accounting purposes.

 

If the Newly Issued Options (or shares received upon exercise) are transferred, pledged or otherwise offered for sale to a third party, then the Company shall have the right of first offer to acquire the Options (or shares received upon exercise). If the Newly Issued Options (or shares received upon exercise) are proposed to be transferred, pledged or otherwise offered for sale to a third party by you (or the party to who you pledged the securities), then the Company shall have the right of first offer to acquire the Options (or shares received upon exercise) on the same terms as a bone fide offer received by such third party (“Third Party Offer”). All of the material terms of the Third Party Offer shall be set forth by you in a written notice (“Notice”) and delivered to the Company. The Company shall have thirty (30) days to exercise its right of first offer after receiving the Notice. The right of first offer shall not apply to transfers to a trust for estate planning purpose, provided that such trust agrees to be subject to the right of first refusal. 

 

Going Private Transaction with Third Party. If the Company is taken private by reorganization, merger, stock purchase, asset purchase, share exchange, consolidation or other acquisition transaction by a third party other than the Company’s current majority shareholders (Dr. David C. Collins and Mrs. Mary C Collins) and the Company’s Common Stock is no longer registered under the Exchange Act, then the Option shall vest 100% and be exercisable in connection with such transaction.

 

 

 

 

 

	 	
7.
	
Shares to be Issued in Compliance with Applicable Laws and Exchange Rules. By accepting the Option, you represent and agree, for yourself and any person entitled to exercise this Option, that none of the shares purchased on exercise of the Option will be acquired with a view to any sale, transfer or distribution in violation of the Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations promulgated thereunder, any applicable state “blue sky” laws or any applicable foreign laws. If required by the Committee at the time the Option is exercised, the person entitled to exercise the Option shall furnish evidence satisfactory to the Company to such effect (including a written representation and an indemnification of the Company in the event of any violation of any applicable laws). The Company does not have to issue any shares on the exercise of this Option if there has not been full compliance with all applicable requirements of the Securities Act (whether by registration or satisfaction of exemption conditions), all applicable listing requirements of any national securities exchange on which shares of the same class are then listed and any other requirements of law or of any regulatory bodies having jurisdiction over such issuance. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue such Shares as to which such requisite authority shall not have been obtained.

 

	 	
8.
	
Withholding of Taxes. Upon the exercise of this Option, the Company shall have the power and the right to deduct or withhold, or require you to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes required to be withheld with respect to the exercise.

 

	 	
9.
	
No Assignment or Transfer. This Option and all other rights and privileges granted hereby shall not be transferred, either voluntarily or by operation of law except (i) by will or the laws of descent and distribution or (ii) to your designated beneficiary to the extent permitted by the Committee. If there is any other attempt to transfer this Option or any other right or privilege granted hereby, this Option and all rights and privileges granted hereby shall immediately become null and void and be of no further force or effect.

 

	 	
10.
	
Beneficiary Designation. You may name a beneficiary or beneficiaries to whom any unexercised vested Option shall pass in the event of your death. Each such designation shall revoke all prior designations by you and shall be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation and, subject to the Terms including Section 3 hereof, any unexercised vested Option may be exercised by the Committee or executor of your estate.

 

	 	
11.
	
Participation in Other Company Plans. The grant of this Option will not affect any right you might otherwise have to participate in and receive benefits under the then current provisions of any pension, insurance, or profit sharing program of the Company or any of its subsidiaries.

 

	 	
12.
	
Not an Employment or Service Contract. Nothing in this Option is to be construed as an agreement, express or implied, by the Company or any of its subsidiaries to employ you or contract for your services, nor will it restrict the Company's or such subsidiary's right to discharge you or cease contracting for your services or to modify, extend or otherwise affect in any manner whatsoever, the terms of any employment agreement or contract for services which may exist between you and the Company or any of its subsidiaries.

 

	 	
13.
	
No Rights as a Shareholder Until Issuance of Stock Certificate. Neither you nor any other person legally entitled to exercise this Option will be entitled to any of the rights or privileges of a shareholder of the Company with respect to any shares issuable upon any exercise of this Option unless and until a certificate or certificates representing the shares shall have been actually issued and delivered or such shares are issued in book entry form and reflected as such in the Company’s records.

 

	 	
14.
	
Agreement Subject to Terms. This Option is subject to, and the Company and you agree to be bound by, all of the terms and conditions of the Award Agreement and the Terms, as each may be amended from time to time in accordance with their terms. No amendment to the Terms or the Award Agreement will adversely affect your rights under this Option in a material manner without your prior written consent.

 

	 	
15.
	
The Committee. The Committee shall have all powers and discretion necessary or appropriate to administer the Award Agreement including, but not limited to, the power (a) to interpret the Award Agreement, (b) to adopt rules for the administration, interpretation and application of the Award Agreement as are consistent therewith, and (c) to interpret, amend or revoke any such rules. The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or any part of its authority and powers to one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate its authority and powers with respect to Section 16 Persons. A Section 16 Person is a person who, with respect to the Shares, is subject to Section 16 of the Exchange Act. All determinations and decisions made by the Committee shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law.

 

 

 

 

 

	 	
16.
	
Indemnification. Each person who is or shall have been a member of the Committee, or of the board of directors of the Company, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, notion, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Award Agreement and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

 

	 	
17.
	
Entire Agreement; Governing Law. The Terms and the Award Agreement constitute our entire agreement with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and you with respect to the subject matter hereof. The interpretation, performance and enforcement of the Award Agreement shall be governed by the internal substantive laws of the State of Delaware, without regard to the conflict of laws provisions of that or any other State. The Option can only be amended in a writing executed by the chairman of the board of the Company.

 

	 	
18.
	
Severability. In the event any provision of these Terms or the Award Agreement shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of these Terms and the Award Agreement, and these Terms and the Award Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

 

	 	
19.
	
Requirements of Law. The granting of the Option and the issuance of Shares upon exercise of the Option shall be subject to all applicable laws. Subject to the foregoing, any grants or payments hereunder may be adjusted as reasonably required to comply with the terms of Section 409A of the Code, while attempting to achieve a result whose economic impact is as similar as possible to that contemplated hereunder.

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