Document:

Exhibit 4.30

      

    

    

    

     

     

    

    November 30, 2020

     

    Re: Offer of Employment

     

    Dear Spiros Jamas,

     

    I am very pleased to confirm our offer to you of employment with Entera Bio, Inc. (the “Company”), a wholly owned subsidiary of Entera
      Bio Ltd., an Israeli Company (the “Parent“), as the Chief Executive Officer of Parent (the “Position”). You will report to the board of directors of the Parent (the “Parent Board”).  We are eager to begin integrating you into the Company as soon as possible. Therefore, we are pleased to offer you employment at-will with the Company based on the terms that are outlined in this
      letter agreement (the “Offer” or the “Agreement”) as follows:

     

    1.          Term.  Your Employment shall commence on January 4, 2021 (the “Start

        Date”), and shall continue until terminated by either party, pursuant to Section 10 hereof.

     

    2.          Duties and Reporting Relationship. During your employment with the Company, you shall devote 100%
      (one hundred percent) of your business time, and use your skills and render services to the best of your abilities on behalf of the Company, unless otherwise agreed in writing by the Parent Board.  The Position is a full time, exempt position. You
      shall be responsible for all duties as reasonably required by the Position and as determined by the Parent Board. You shall comply with all legal requirements and all of the policies and procedures of the Company and the Parent, as in effect from
      time to time, observe high standard of integrity and act within the limits of your authority.  In addition, you shall be permitted to provide services to trade and charitable organizations and serve on the board of directors of non-competitive
      companies, which are pre-approved in writing by the Parent Board, so long as such services will not conflict with, or does not interfere with your obligations hereunder or prevent you from performing all of
      your duties at the level and scope required pursuant to the terms of this Agreement and the applicable law.

     

    3.          Place of Performance.  Initially, you shall work remotely.  As and when the Company and the Parent
      return to full in person work protocols, your principal place of employment shall be Cambridge, Massachusetts, although you acknowledge and agree that in connection with your employment, you will be required to travel on behalf of the Company and
      render services within and outside the United States, including the Parent’s offices in Israel.

     

    4.          Annual Base Salary; Bonus. The compensation set forth in this Section 4 below constitutes your
      sole and total available cash compensation and will be subject to adjustment pursuant to the Company’s employee compensation policies and applicable law (for the purpose of this Agreement, references to “applicable law” shall include any applicable
      stock exchange regulations and rules) as in effect from time to time.

     

    	

          	4.1	
            Salary. The Company will pay you an annual gross base salary of US $380,000 (the “Annual Base Salary”), payable during your employment in accordance with the Company's regular payroll practice
              in effect from time to time. Your Base Salary shall be subject to annual review and may be increased but not decreased.  Your salary, bonus and other benefits will be subject to applicable withholding as required by law.

          

     

    	

          	4.2	
            Bonus. In addition to the Annual Base Salary, you will be eligible to receive an annual bonus (the “Bonus”) in an amount equal to up to 60% of your Annual Base Salary (the “Target Bonus”), subject to the terms of this section 4.2. The Bonus will be awarded on an annual basis and paid in the year following the calendar year to which the Bonus relates  in accordance with the
              Parent’s compensation policy but in no event later than ninety (90) days after the end of the applicable calendar year), based and subject to your meeting certain criteria and key performance indicators as shall be determined by the
              compensation committee of the Parent Board (the “Compensation Committee”), and the Parent Board from time to time, and in accordance with the Company’s compensation plan and Company policies, as amended
              from time to time, and subject to applicable law. It is hereby clarified that the payment of the Bonus may be subject to an approval of the shareholders of the Company, to the extent required to be approved by the shareholders of the Parent
              in accordance with applicable law. The Company’s goals, parameters, key performance indicators or any terms of the compensation plan or the Bonus entitlement may be reviewed, modified and adjusted by the Company, at any time and for any
              reason with respect to the future, upon notification to you; provided that any material modification or adjustment made after the establishment of goals, parameters, key performance indicators or terms for a particularly bonus year may only
              be made with your written consent which such consent shall not be unreasonably withheld. The calculation and interpretation of any Bonus payable, and whether any criteria and/or performance standards have been met, shall be determined by the
              Compensation Committee and the Parent Board at their sole and final discretion, and shall not be subject to review or appeal. You must continue to be employed on the payment date to be entitled to payment of any Bonus granted by the Company
              according to the terms of this section 4.2 for any given calendar year.

          

     

    
      
        

    

     

    

    5.      Benefits.

     

    	

          	5.1.	
            You will be eligible to participate in the Company’s standard full-time employment benefits that are offered by the Company from time to time, which are currently expected to include medical, short term disability and 401K benefits.

          

     

    	

          	5.2.	
            You will receive other benefits, including vacation, holidays and sick leave, as the Company generally provides to its employees from time to time. As an employee of the Company, you will be entitled to 20 (twenty) days of total paid time
              off (inclusive of sick days) (“PTO”) per each full calendar year, and your PTO benefits generally will be subject to the Company’s policies as in effect from time to time. In addition, the Company will
              offer seven (7) Company holidays: New Year’s Day, Presidents’ Day, Memorial Day, Independence Day (July 4), Thanksgiving and the Friday after Thanksgiving and Christmas Day.

          

     

    	

          	5.3.	
            Notwithstanding anything to the contrary herein, the Company reserves the right to change or otherwise modify, in its sole discretion, the benefits offered to employees to conform to the Company’s general policies as such polices and
              benefits may be changed from time to time.

          

     

    6.      Options.

     

    	

          	6.1	
            Subject to the approval of the Parent Board, at its sole discretion, the Company will recommend to the Parent Board that Parent grant you with an option to purchase the number of ordinary shares, par value 0.0000769 NIS each, of the Parent
              (“Ordinary Shares”), which is equal to 4.5% of the Parent's issued and outstanding share capital on a fully diluted basis as of the Start Date (including for the avoidance of doubt, any issued and
              outstanding options and warrants to purchase Ordinary Shares as of such date, but excluding any Ordinary Shares that are reserved for issuance under the Entera Bio Ltd. 2018 Equity Incentive plan, as may be amended from time to time (“Option Plan”), but are unallocated of such date) (the “Options”), subject to the requirements of the relevant securities, tax and other applicable laws and
              regulations. Subject to the approval of the Parent Board and the terms of the Options Agreement (as defined below), the Options will have an exercise price equal to the closing price of the Ordinary Shares as of the grant date by the Parent
              Board, and will vest over four (4) years, with 25% of the Options vesting at the end of your first anniversary with the Company, and thereafter the remaining 75% of the Options shall vest in equal quarterly increments, so long as you remain
              employed by the Company on a full time basis on each applicable vesting date (for the avoidance of doubt, and notwithstanding anything to the contrary in the Option Plan and the Options Agreement (as defined below), the Options shall stop
              vesting if you cease to be employed by the Company, irrespectively if you serve in the capacity of a director of the Parent). In the event of a Change in Control (as defined below), as long as you remain employed by the Company on a full time
              basis on the closing date of such event, any then outstanding unvested Options shall vest and become fully exercisable as of the closing of such Change in Control.

          

     

    
      
        

    

     

    

    	

          	6.2	
            Upon and subject to the approval of the grant of the Options by the Parent Board and by the shareholders of the Parent as required by applicable law, and as a condition to the grant of the Options, you shall sign the standard option
              agreement with the Parent and the Company regarding the options (the “Options Agreement”). Notwithstanding anything herein to the contrary, the Options will be subject to applicable law, the terms and
              conditions of the Option Plan, the Options Agreement, and other terms and conditions approved by the Parent Board (which such terms and conditions shall be consistent with the vesting schedule and other terms set forth in this Agreement).

          

     

    	

          	6.3	
            You will be responsible for any and all tax consequences in connection with the grant of the Options, and/or the exercise of the Options and sale of Ordinary Shares. The Company or Parent, as applicable, shall withhold taxes according to
              the requirements under applicable laws, rules, and regulations, including withholding taxes at source.

          

     

    7.          Board Member of the Parent Company. In addition, as long as you serve in your Position, the Parent
      shall make a recommendation to the shareholders of the Parent, at each relevant annual shareholders meeting of the Parent, to elect you as a director of the board of directors of the Parent (the “Parent Board”),

      subject to applicable law. Notwithstanding the foregoing, in the case of a termination of your employment with the Company for any reason, unless agreed otherwise in writing by the Company prior to the effective date of termination, you hereby
      irrevocably agree that such board membership with the Parent Board (and any board membership with any affiliate of the Company) will automatically expire and terminate upon the effective date of termination, and to the extent required by the Company
      or applicable law, you agree to execute all reasonable documents and take all other steps necessary to effectuate such termination and resignation from your position as a director of the Parent Board or any other affiliate of the Company.

     

    8.          Reimbursement of Expenses. The Company will reimburse you for all reasonable, documented out of
      pocket travel and other business expenses incurred in the performance of your duties upon your submission of appropriately itemized documentation and subject to, on all cases the Company’s expense reimbursement policy as in effect from time to time.

     

    9.          Confidentiality; Non-Competition, Non-Solicitation, and
        Assignment of Inventions Undertaking. You are required to sign the Company’s standard “Confidentiality, Non-Competition, Non-Solicitation, and Assignment of Inventions Undertaking in the form attached hereto as Exhibit A (the “NDA”) as a condition precedent of your employment. We wish to impress upon you that we do not want you to, and we hereby direct you not to, bring with you any confidential
      or proprietary material of any former employer or to violate any other obligations you may have to any former employer. The terms and conditions of the NDA shall apply regardless of any change in the nature of your position, duties, compensation or
      employment with the Company.

     

    10.          At Will Employment.  Should you decide to accept our offer, you will be an at-will employee of
      the Company, which means the employment relationship can be terminated by either of us for any reason (or for no reason at all), at any time, with or without cause, subject to delivery of 30 (thirty) days prior written notice to the other party; provided that the Company may elect to pay the applicable portion of your Annual Base Salary during the notice period in lieu of providing notice; provided, further, that
      the Company will not be required to provide advance notice or pay in lieu thereof in the case of a termination of your employment by the Company for Cause (as defined below). Any statements or representations to the contrary should be regarded by you
      as ineffective. Further, any participation in any stock option or benefit program is not to be regarded as assuring you of continuing employment for any particular period of time. Any modification or change in your at-will employment status may only
      occur by way of a written agreement signed by you and the Company. Salary and other benefits (including any Bonus) shall immediately terminate upon termination, other than as provided for herein; provided, however,
      that in case your employment is terminated by the Company without Cause or you resign for Good Reason (as defined below) at any time, you shall be entitled to (i) a one time lump sum severance payment equal to a period of twelve (12) months of your
      then-effective Annual Base Salary, and (ii) an extension of your exercise period with respect the vested Options as of the date of termination for up to two (2) years post-termination (provided that in no event shall such extension extend beyond 10
      years from the grant date), in each case subject to your execution and non-revocation of a customary release of claims against the Company, the Parent and their affiliates. . Any severance to which you are entitled will be payable in one lump sum in
      the next regular Company pay period following expiration of any consideration and revocation period with respect to the release (such period not to exceed 60 days). If the consideration and revocation period spans two calendar years, then the lump
      payment will be paid on the first payroll date following expiration of the applicable revocation period in the second calendar year.  Regardless of the circumstances surrounding the termination of your employment, you hereby undertake that upon
      termination of employment, you will return to the Company all Company's property and assist with any transition or handover of the position, unless otherwise instructed by the Company.

     

    

    
      
        

    

     

    11.          Employee’s Representations. By signing this Offer, you represent and warrant that no provision of
      any law, regulation, agreement or other source prohibits you from entering into employment relations with the Company according to the terms of this Offer and fulfilling all its terms. Without derogating from the above, you undertake that your
      performance of the terms of this Offer will not breach any written or oral agreement entered into by you with a former employer or with any other third party. Subject to the provisions of Section 1 above, you further undertake not to engage, directly
      or indirectly, in any business, professional or commercial occupation outside your employment with the Company, whether or not such occupation is rendered for any gain, without the prior written approval of the Company, and subject to the terms of
      such approval. You further undertake to execute any D&O questionnaire and other affidavits as may be required according to applicable law (whether prior to the Start Date or as may be required from time to time).

     

    12.          Authorization to Work; Background Check. You are required
      to provide to the Company documentary evidence of your identity and your eligibility to work in the United States no later than the Start Date. If you have questions about this requirement, you may contact the Company’s CFO, Dana Yaacov. If you do
      not do so, then this Offer shall be null and void and shall have no force and effect whatsoever. During your employment, should you cease to be eligible to work in the United States, for any reason, you shall immediately inform the Company of the
      same and your employment shall be terminated immediately.  Eligibility to work in the United States is an express condition of your employment with the Company. In addition, consistent with the Company's pursuit of a quality workforce and
      professional services, the Company requires, as a condition of employment, that all applicants authorize and consent to a pre-employment background checks and drug screen. This Offer is contingent upon submitting to and successfully passing both, if
      the Company deems these necessary.

     

    13.          Indemnification.  You will be entitled to execute the Parent's D&O indemnification agreement,
      in the same form as was executed by all other directors of the Company, subject to applicable law, the Company's articles of association and the required approvals. Subject to applicable law, you will be covered by the D&O insurance policy of the
      Parent in the same manner as applicable to all officers and directors of the Parent and the Company, as in effect from time to time, subject to the terms of such policy.

     

    14.          Data Privacy; Monitoring of Company Systems. You consent,
      of your own free will, that the information in this Agreement and any information concerning you that is gathered by the Company, will be held and managed by the Company or on its behalf, and that the Company shall be entitled to transfer such
      information to third parties, domestically or abroad. The Company undertakes that the information will be used and transferred for legitimate business purposes only. Without derogating from the generality of the above, such purposes may include human
      resources management and assessment of potential transactions. You agree that the Company may monitor your use of its systems and copy, transfer and disclose all electronic communications and content transmitted by or stored in such systems, in
      pursuit of the Company's legitimate business interests, all in accordance with the Company's policy as in force from time to time and subject to applicable law. For the purposes of this section, the term "systems" includes, without limitation,
      telephones, computers, computer systems, internet servers, electronic databases and software, whether under the your direct control or otherwise.

     

    15.          Section 409A. If at the time of your separation from service, you are a “specified employee,” as
      defined in Section 409A of Code and the rules and regulations promulgated thereunder (“Section 409A”), any and all amounts that may be payable to you, if any, in connection with such separation from service
      that constitute deferred compensation subject to Section 409A and that would (but for this sentence) be payable within six months following such separation from service, shall instead be paid on the date that follows the date of such separation from
      service by six months. Notwithstanding anything to the contrary herein, to the extent required by Section 409A, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment
      of amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A.  For purposes of Section 409A, each payment made under this Agreement and the NDA
      shall be designated as a “separate payment” within the meaning of Section 409A. Notwithstanding anything to the contrary herein, except to the extent any expense, reimbursement or in-kind benefit provided pursuant to this Agreement does not
      constitute a “deferral of compensation” within the meaning of Section 409A, (x) the amount of expenses eligible for reimbursement or in-kind benefits provided to you during any calendar year will not affect the amount of expenses eligible for
      reimbursement or in-kind benefits provided to you in any other calendar year, (y) the reimbursements for expenses for which you are entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in
      which the applicable expense is incurred and (z) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

     

    

    
      
        

    

     

    16.          Governing Law; Jurisdiction. This Offer and the NDA shall be governed by the laws of the
      Commonwealth of Massachusetts, without giving effect to conflict of law provisions thereof, and the federal or state courts of the State of Massachusetts shall have exclusive jurisdiction with respect to any action or legal proceeding arising out of
      or relating to this Offer. YOU HEREBY IRREVOCABLY WAIVE ANY RIGHTS YOU MAY HAVE TO A TRIAL BY JURY, and further, irrevocably waive any objection with respect to the venue being an inconvenient forum.

     

    17.          Entire Agreement. This Offer, together with the NDA, will form the complete and exclusive
      statement of your employment agreement with the Company. It supersedes any other agreements or promises with respect to your employment made to you by anyone, whether oral or written, and it can only be modified in a written agreement signed by you
      and by another officer of the Company or director of the Parent Board.

     

    18.          Expenses. Each party hereto will bear its own fees and expenses in connection with the
      negotiation and preparation of this Agreement.

     

    19.          Corporate approvals. Notwithstanding anything to the
      contrary in this Agreement, it is hereby agreed that this Offer is subject to, and shall only enter into effect upon, the receipt of the approval by all corporate approvals as required according to applicable law (including without limitation, the
      Compensation Committee, the Parent Board and the shareholders of the Parent). 

     

    20.          Assignment. The Company is allowed, at its sole discretion, to assign this Agreement or any other
      agreement with you, to any of its affiliates, without giving any prior notice. In any event of assignment as aforesaid, this Agreement shall apply to any successor or assignee, mutatis mutandis.

     

    21.          Defined Terms. Certain capitalized terms in this Agreement shall have the meaning set forth
      below.

     

    “Cause” shall mean any material breach by you of any agreement to which you and the Company or Parent are both parties, or of any of the
      Company's or Parent's code of conduct or other material policies, that is injurious to the Company and/or Parent; substantial negligence in the performance of, or substantial failure to perform, your services to the Company or Parent, which breach,
      negligence or failure, as applicable, is not cured within fourteen (14) days following written notice by the Company or Parent; commission by you of a felony or other crime involving moral turpitude or having been the subject of any order, judicial
      or administrative obtained or issued by the SEC for any securities violation involving fraud; or willful misconduct by you which has, or could reasonably be expected to have, a material adverse effect upon the business, interests or reputation of the
      Company or Parent.

     

    “Change of Control” shall mean: (a) the consummation of a merger or consolidation of the Parent with or into another entity, if persons
      who were not stockholders of the Parent immediately prior to such merger or consolidation own immediately after such merger or consolidation 50% or more of the total combined voting power of the outstanding equity securities of each of (i) the
      continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; or (b) the sale, transfer or other disposition of all or substantially all, in one transaction or a series of related
      transactions within a 12-month period, to any person or entity (other than an affiliate of the Parent), of the assets of the Parent or its subsidiaries.

     

    “Resignation for Good Reason” shall mean a separation from service as a result of your resignation after one of the following conditions
      has come into existence without your consent: (i) a material diminution in your compensation, except for across-the-board reductions approved by the Parent Board affecting all of the Company’s and the Parent’s executives and officers); or (ii) a
      material diminution in your title, duties, authority or responsibilities with Parent; (iii) a material breach of the Company’s or Parent’s obligation under any agreement between the Company and you; provided,
        however, that in each case, Good Reason shall in no event exist unless you have given written notice to Parent within sixty (60) days of the initial existence of the event(s) giving rise to such Good Reason, including specific details
      regarding such event(s) and unless Parent has thereafter failed to cure such event(s) within thirty (30) days after delivery of such written notice.

     

    

    
      
        

    

     

    22.           Acceptance. This Offer remains subject to approval of the Parent Board. This Offer will remain
      open until November __, 2020. If you decide to accept our Offer, and we hope you will, please sign the enclosed copy of this Offer in the space indicated as well as the NDA and return them to the Company. Your signature will acknowledge that you have
      read and understood and agreed to the terms and conditions of this Offer and the attached documents. Should you have anything else that you wish to discuss, please do not hesitate to contact us.

     

    [Signature Page to Follow]

     

    
      
        

    

    

    

     

    We look forward to the opportunity to welcome you to the Company.

     

    

    
      	
               

            	
              
                Very truly yours,

                 

                ________________________

                Chairman of Parent Board

              

            

    

     

    

    Attachments:

     

    	

          	•	
            Exhibit A- Confidentiality, Non-Competition, Non-Solicitation, and Assignment of Inventions Undertaking.

          

     

    I have read and understood this Offer and hereby acknowledge, accept and agree to the terms as set forth above and further acknowledge that no other commitments were made to me as part of my
      employment offer except as specifically set forth herein.

     
      
        	
                
                  _____________________          

                  Spiros Jamas

                

              	
                
                  Date signed: ______________

                

              

      

       

    

    [Signature Page to Entera Bio, Inc. Offer Letter // Spiros Jamas; 2020]

     

    
      
        

    

    

    

    Exhibit A

    Confidentiality, Non-Competition, Non-Solicitation, and Assignment of Inventions Undertaking

    

    

    I, the undersigned, employed by Entera Bio, Inc. (“Company”), pursuant to the offer letter between me and Company, dated November 30, 2020 (“Agreement”), and upon the signing of this Confidentiality, Non-Competition, Non-Solicitation, and Assignment of Inventions Undertaking (this “Undertaking”):

    

    

    I acknowledge that in the course of my employment with the Company, I will become familiar with a range of Confidential Information (as defined below) and that my services are of particular and
      special value to the Group (as defined below). In consequence, I undertake the following towards Entera Bio Ltd., the parent company (the “Parent”), the Company and any other entities which control, are
      controlled by or are under common control with the Company and/or the Parent, now or in the future (individually and collectively referred to as the “Group”).

    

    

    I understand that the terms of this Undertaking shall survive termination of the Agreement.

    

    

    	1.	
            Confidential Information and Confidentiality

          

    

    

    	

          	1.1	
            I am aware that I may have access to or be entrusted with information (regardless of the manner in which it is recorded or stored) relating to the business interests, methodology or affairs of the Group, or any person or entity with whom
              or which the Group deals or is otherwise connected and which, for the avoidance of doubt, includes the terms of the Agreement, other than the terms of this Undertaking (“Confidential Information”). By
              way of illustration, Confidential Information includes but is not limited to technical information, whether ideas or reduced to practice, techniques, products, technologies (actual or planned) and their components, Inventions (as defined
              below), research and development activities, drawings, pricing methods, financial data, business and marketing strategies and plans, customer and supplier information and information pertaining to employees or officers of, or investors in,
              the Group.

          

    

    

    	

          	1.2	
            During the term of the Agreement and at all times thereafter I shall keep confidential, and shall not except in the proper performance of my employment duties use, disclose and/or make available, directly or indirectly, to any third party
              any Confidential Information without the prior written consent of the Company. The foregoing does not apply to information that is already in the public domain through no fault of my own, or to disclosures which are required by law, in which
              case I will notify the Company immediately on becoming aware of such requirement or its likely occurrence.

          

    

    

    	

          	1.3	
            Without derogating from the generality of the foregoing, I confirm that:

          

    

    

    	

          	1.3.1	
            Except in the proper performance of my employment duties, I shall not copy, transmit, communicate, publish or make any commercial or other use whatsoever of any Confidential Information, without the prior written consent of the Company.

          

    

    

    	

          	1.3.2	
            I shall exercise the highest degree of care in safeguarding the Confidential Information against loss, theft or other inadvertent disclosure and in maintaining its confidentiality.

          

    

    

    	

          	1.3.3	
            Upon termination of my employment, or at the earlier request of my direct manager, I shall deliver to the Company all Confidential Information and any and all copies thereof that have been furnished to me, prepared by me or came to my
              possession howsoever, and I shall not retain copies thereof in whatever form.

          

    

    

    
      
        

    

    

    

    	2.	
            Non-Competition and Non-Solicitation

          

    

    

    I hereby covenant that throughout the term of the Agreement and for a period of twelve (12) months thereafter (the “Restricted Period”), I
      shall not, whether directly or indirectly, in any way:

    

    

    	

          	2.1	
            in any capacity whatsoever, whether independently or as a shareholder (excluding holding up to 5% of the share capital of a public company), employee, consultant, officer or in any managerial capacity, carry on, set up, own, manage,
              control or operate, be employed, engaged or interested in a business which directly competes with, or proposes to directly compete with, the Group, or any part thereof; provided, however, that this
              Section 2.1 shall only apply if (a) the Company notifies me within ten days prior to my effective date of termination that this Section 2.1 should apply and (b) during the Restricted Period, the Company pays me an amount equal to 50% of what
              I would receive as base salary had I continued to be employed during the Restricted Period;

          

    

    

    	

          	2.2	
            canvass, solicit, or endeavor to entice from the Group, or otherwise have any business dealings with, any person or entity who or which at any time during my employment was or is an employee, agent, officer, consultant, advisor or other
              independent contractor of or provider of services to the Group;

          

    

    

    	

          	2.3	
            otherwise interfere with the relationship between any of the persons or entities listed in Section 2.2 and the Group (including by assisting another to interfere in such relationship).

          

    

    

    	

          	2.4	
            I acknowledge that my obligations under this Section 2 are reasonable in light of my position and duties within the Company and the nature of the Group’s business.

          

    

    

    	3.	
            Inventions

          

    

    

    	

          	3.1	
            I shall promptly disclose to the Parent Board (as defined in the Agreement) all inventions, original works of authorship, developments, know-how, trade secrets, designs, improvements and discoveries which I solely or jointly conceive,
              develop or reduce to practice or cause to be conceived, developed or reduced to practice during the course of my employment with the Company or which use Confidential Information or other Group’s property, whether patentable or not (“Inventions”).

          

    

    

    	

          	3.2	
            I further confirm that all Inventions, and any and all rights, interests and title therein, shall be the exclusive property of the Group and I shall not be entitled to, and I hereby waive now and in the future, any claim to any right,
              compensation or reward in connection therewith.

          

    

    

    	

          	3.3	
            Without derogating from the Group’s rights under this Undertaking or any law, I agree to assign and hereby automatically assign and shall in the future take all the requisite steps (including by way of illustration only, signing all
              appropriate documents) to assign to the Company. or other member of the Group and/or its designee any and all of my foregoing rights, titles and interests in respect of any Inventions, on a worldwide basis and acknowledge now and in the
              future acknowledge the Group’s full and exclusive ownership in all such Inventions. I shall, at any time hereafter, execute all documents and take all steps necessary to effectuate the assignment to the Group or its designee or to assist them
              to obtain the exclusive and absolute rights, title and interests in and to all Inventions, including by the registration of patents or trademarks, protection of trade secrets, copyright, or  any other applicable legal protection, and to
              protect the same against infringement by any third party, including by assisting in any legal action requested by the Group with respect to the foregoing.

          

    

    

    	

          	3.4	
            I hereby acknowledges and agree that all copyrightable works included in the Inventions shall be “works made for hire” within the meaning of the Copyright Act of 1976, as amended (17 U.S.C. §101) (“Act”),

              and that Company (or the Parent, if applicable) is to be the “author” within the meaning of the Act. In the event that title to any or all of the Inventions does not or may not by operation of law, vest in Company (or the Parent, if
              applicable), I hereby agree to promptly disclose and provide all Inventions to Company and hereby assign to Company (or the Parent, if applicable), all of my right, title and interest in all Inventions and all copies of them, in whatever
              medium fixed or embodied, and in all writing relating thereto in my possession or control. I hereby expressly waive that which may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like or similar rights
              in any Invention or any such work made for hire.

          

    

    

    
      
        

    

    

    

    	

          	3.5	
            If Company (or the Parent, if applicable) is unable, after duly reasonable effort, to secure my signature on any such documents, I hereby irrevocably designate and appoint Company, the Parent and their duly authorized officers and agents
              as my agent and attorney-in-fact, to do all lawfully permitted acts (including but not limited to the execution, verification and filing of applicable documents) with the same legal force and effect as if performed by myself.

          

    

    

    	4.	
            No Conflicting Obligations

          

    

    

    I will not, at any time during the term of the Agreement, use or disclose any trade secrets or proprietary or confidential information in such manner that may breach any
      confidentiality or other obligation I owe to any former employer or other third party, without their prior written consent.

    

    

    I warrant that I have the full right to assign the Inventions and the associated rights, titles and interests and that I have not made, and will not make, any agreement in
      conflict with this paragraph or Section 3 above.

    

    

    	5.	
            Notice to Offerors

          

    

    

    I agree that if, during my employment with the Company or the period of the restrictions set out in Section 2, I receive an offer of employment or engagement, I will provide a
      copy of this Undertaking to the offeror as soon as is reasonably practicable after receiving the offer and will inform the Company of the identity of the offeror.

    

    

    	6.	
            Employee Protections

          

     

    I understand that nothing in the Agreement, this Undertaking or otherwise limits my ability to communicate directly with and provide information, including documents, not
      otherwise protected from disclosure by any applicable law or privilege to the Securities and Exchange Commission (the “SEC”), any other federal, state or local governmental agency or commission (“Government Agency”) or self-regulatory organization regarding possible legal violations, without disclosure to the Company.  The Company may not retaliate against me for any of these activities.

    

    

    
      Pursuant to the Defend Trade Secrets Act of 2016, the parties hereto acknowledge and agree that I shall not have criminal or civil liability under any Federal or State trade
        secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and (ii) solely for the purpose of reporting or investigating a
        suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition and without limiting the preceding sentence, if I file a lawsuit for retaliation by
        the Company for reporting a suspected violation of law, I may disclose the trade secret to my attorney and may use the trade secret information in the court proceeding, if I (X) file any document containing the trade secret under seal and (Y) do
        not disclose the trade secret, except pursuant to court order.

    

    

    

    
      
        

    

    

    

    	7.	
            General

          

    

    

    
       

      	

            	7.1	
              
                Without intending to limit the remedies available to the Company, I agree that a breach of any of the covenants contained in this Undertaking may result in material and irreparable injury to the Group for which there is no adequate
                  remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of such a breach or threat thereof, the Company shall be entitled to seek a temporary restraining order or a preliminary or
                  permanent injunction, or both, without bond or other security, restraining me from engaging in activities prohibited by the covenants contained in this Undertaking or such other relief as may be required specifically to enforce any of the
                  covenants contained in this Undertaking. Such injunctive relief in any court shall be available to the Company in lieu of, or prior to or pending determination in, any proceeding. In addition to the remedies the Company may seek and
                  obtain hereunder, the Restricted Period shall be extended by any and all periods during which I am in breach of Section 2.

              

            

      

      

    

    	

          	7.2	
            I acknowledge that any breach by me of my obligations pursuant to this Undertaking may cause substantial damage for which the Group shall hold me liable.

          

    

    

    	

          	7.2	
            The terms of this Undertaking shall be interpreted in such a way as to give them maximum enforceability at law. The unenforceability of any term (or part thereof) shall not affect the enforceability of any other part of this Undertaking.

          

    

    

     7.3       My undertakings hereunder are in addition to, and do not derogate from, any obligation to which I may be subject under applicable law or any
      Group policy or agreement.

    

    

    	

          	7.4	
            I have been given at least ten days to review this Undertaking, and I have been advised that I should seek legal counsel to advise me on the terms hereof.

          

     

    

    
      
        	
                
                  _____________________          

                  Spiros Jamas

                

              	
                
                  ______________

                  Date

                

              

      

       

    

    Entera Bio Inc. hereby agrees to and accepts the assignment of all rights in the Inventions.

    

    

    
      
        	
                
                  _____________________          

                  
                    Entera Bio Inc.  

                    

                    Name:

                    Title:

                  

                

              	
                
                  _____________

                  Date 

                  

                

              

      

       

    

    [Signature Page to Confidentiality, Non-Competition,

      Non-Solicitation, and Assignment of Inventions Undertaking]Document

Exhibit 10.8    

FEDERAL HOME LOAN BANK OF CINCINNATI                                                              

Incentive Compensation Plan 
Plan Document

    

As of January 1, 2021
Approved November 19, 2020
                    									
		i
	

FEDERAL HOME LOAN BANK OF CINCINNATI                        

Incentive Compensation Plan

									
		Table Of Contents

			Page
			
		Overview	1 	
	1.	Plan Objectives	1 	
	2.	Definitions	1 	
	3.	Eligibility	5 	
	4.	Incentive Award Opportunity	6 	
	5.	Performance Mix	7 	
	6.	Performance Measures	7 	
	7.	Award Determination	8 	
	8.	Preconditions to Award	9 	
	9.	Vesting of Awards, Timing of Benefit Payments	10 	
	10.	Plan Communication	12 	
	11.	Administrative Control	12 	
	12.	Miscellaneous Conditions	13 	
			
	Appendices	17 	
			
		Appendix A:  Plan Participants
	18 	
		Appendix B:  Award Opportunity and Performance Mix
	19 	
		Appendix C:  Annual Performance Measures
	20 	
		Appendix D:  Performance Measures Long-Term Deferred Component
	21 	
		Appendix E:  Performance Measures for Chief Risk Officer and ERM
	22 	

 

FEDERAL HOME LOAN BANK OF CINCINNATI                        
Incentive Compensation Plan
PLAN DOCUMENT
Overview
The Incentive Compensation Plan is a cash-based annual incentive plan with a deferral component established to provide incentive award opportunities related to the achievement of Bankwide and individual performance objectives by eligible Participants. Performance is evaluated on an annual basis using annual performance measures to determine a total incentive award opportunity. Subject to the conditions described herein, an approved award is paid in cash shortly after the close of the year to which the performance incentive relates. With regard to Participant Levels I through V, a portion of the earned incentive award is mandatorily deferred for three years after the end of the Plan year to which the incentive relates; and the payment of the Deferred Award is based on whether applicable safety and soundness measures are achieved during the three-year Deferral Period.  
Plan Objectives
1.1    The purpose of the Federal Home Loan Bank of Cincinnati's Incentive Compensation Plan is to achieve the following:
1.1.1    Promote awareness and achievement of the Bank's annual and long-term profitability and business goals; 
1.1.2    Link performance and compensation to specific Bankwide and individual performance measures; 
1.1.3    Provide a competitive reward structure for officers and other employees; 
1.1.4    Provide a vehicle for closer Board involvement and communication with management regarding Bank strategic plans; and
1.1.5    Promote loyalty and dedication to the Bank and its objectives. 
2.    Definitions
2.1    When used in the Incentive Compensation Plan, the following words and phrases shall have the following meaning: 

2.1.1    Annual Incentive Award means the award based upon the results of a single Plan year, the Eligibility Level, Performance Mix, and other factors detailed in this Plan.
2.1.2    Audit Committee means the Audit Committee of the Board.
2.1.3    Bank means the Federal Home Loan Bank of Cincinnati. 
2.1.4    Board means the Bank's Board of Directors. 
2.1.5    Chief Risk Officer means the Bank’s Chief Risk Officer.
2.1.6    Deferred Award means the portion of the Annual Incentive Award Opportunity that is mandatorily deferred for the applicable Deferral Period and which is payable if applicable safety and soundness measures over the Deferral Period are achieved. A rate of interest equal to the Pre-Map effective interest rate in the Defined Benefit Pension plan will be applied annually and be adjusted annually based on any changes in the rate reported by the Defined Benefit Pension plan administrator.
2.1.7    Deferral Period means the three-year period over which a portion of the Annual Incentive Award for a Participant in Level I, II, III, IV, or V is mandatorily deferred and over which applicable safety and soundness measures  must be achieved before payment to the Particpant.
2.1.8    Disability means a Participant who (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank. All determinations as to the date and extent of disability shall be made upon the basis of such evidence, including independent medical reports and data, as the Human Resources, Compensation and Inclusion Committee deems necessary and desirable. All determinations of the Committee shall be final and binding. 
2.1.9    Enterprise Risk Management (“ERM”) means the Bank’s Enterprise Risk Management department. 
    									
		2
	

2.1.10    Executive Officers means the Bank’s Named Executive Officers.
2.1.11    Extraordinary Events may include changes in business strategy, impact of severe economic fluctuations, significant growth or consolidation of the membership base or other factors that materially impact the Bank or the Federal Home Loan Bank system. 
2.1.12    Final Award means the amount ultimately paid to a Participant under the Plan.  With respect to Participants in Levels VI, VII, VIII and IX, each year the Final Award will be composed solely of that immediately preceding year’s Annual Incentive Award.  With respect to Participants in Levels I, II, III, IV, and V the Final Award for each year will be composed of a combination of that immediately preceding year’s Annual Incentive Award and the Deferred Award.
2.1.13    Incentive Award Opportunity means the award that may be earned at various levels (Threshold, Target and Maximum) based on the Plan year results, the Eligibility Level, and Performance Mix and other factors detailed in this Plan. 
2.1.14    Internal Audit Department means the Bank’s Internal Audit Department.
2.1.15    Participant means a person who, at the discretion of the Board, is eligible to take part in the Plan for a designated Plan year and/or Deferral Period, and whose position is included in one of the levels defined within this Plan or who has been separately named as a Participant for that Plan year by the President, with the concurrence of the Human Resources, Compensation and Inclusion Committee. 
2.1.16    Performance Measure means each performance factor that is taken into consideration under the Plan in determining the value of the Final Award. 
2.1.17    Performance Mix means the weighting of Performance Measures taken into consideration under the Plan in determining the value of the Final Award.
2.1.18    Performance Period means the period of time over which Bank performance is measured.  In the case of a Participant in Level VI, VII, VIII, or IX this is the Plan year.  In the case of any Participant in Level I, II, III,IV, or V this is the Plan year and the Deferral Period.  
    									
		3
	

2.1.19    Human Resources, Compensation and Inclusion Committee or Committee means the Human Resources, Compensation and Inclusion Committee of the Board. 
2.1.20    Plan means this Incentive Compensation Plan. 
2.1.21    Plan Administrator means the Board or its designee(s). 
2.1.22    Plan Year means the calendar year, January 1 through December 31, over which both Bank and Participant performance is measured.
2.1.23    President means the President of the Bank. 
2.1.24    Retire, Retires, or Retirement mean a Participant’s Separation from Service after the Participant has (i) been employed with the Bank for at least five (5) years and (ii) reached at least age 62 or (iii) age plus service equals 70. 
2.1.25    Senior Officer means an officer with a rank of Senior Vice President or above.
2.1.26    Separation from Service or Separates from Service means, generally, a termination of employment with the Bank.  Except in the case of a Participant on a bona fide leave of absence as provided below, a Participant is deemed to have incurred a Separation from Service if the Bank and the Participant reasonably anticipate that the level of services to be performed by the Participant after a certain date will be reduced to 20% or less of the average services rendered by the Participant during the immediately preceding 36-month period (or the total period of employment, if less than 36 months), disregarding periods during which the Participant was on a bona fide leave of absence. A Participant who is absent from work due to military leave, sick leave, or other bona fide leave of absence shall incur a Separation from Service on the first date immediately following the later of (i) the six-month anniversary of the commencement of the leave or (ii) the expiration of the Participant’s right, if any, to reemployment under statute or contract. For purposes of determining whether a Separation from Service has occurred, the Bank means, with respect to employees it employs, the Bank and each corporation, trade or business that, together with the Bank, is treated as a single employer under Code Section 414(b) or (c), except that common ownership of at least 50% shall be determinative. The Human Resources, Compensation and Inclusion Committee will determine, in accordance with 
    									
		4
	

Code Section 409A, whether a Separation from Service has occurred. 
2.1.27    Target Award Opportunity means the award that may be earned during a Performance Period for achieving target performance levels under each Performance Measure. 
3.    Eligibility
3.1    Eligibility shall normally be limited to all Employees who: 
•occupy positions with an employment status of scheduled full time or scheduled part time as of December 31st of the Plan year; and
•are not in a probationary period due to poor performance or disciplinary action or have received an overall rating equal to or below 1.9 at the time of payment of the Final Award. 
3.2    Employees of the Bank who are hired into an eligible position by August 31st of the Plan year shall be eligible for participation in the Plan in accord with Section 3.1, and shall receive a prorated incentive award. 
3.3    Employees of the Bank who are hired into an eligible position on or after September 1st of the Plan year will only be eligible to participate for that Plan year if specifically nominated by the President and shall receive a prorated incentive award. 
3.4    The Chief Risk and Compliance Officer and other ERM officers and staff will participate in the Plan but their award opportunities will be weighted 75 percent on the Bank-wide program and 25 percent on ERM-specific goals. 
3.5    Due to its unique role for the Bank and reporting relationship to the Board, the Internal Audit Department will not be included as eligible positions under the Plan, but will be eligible for a similar plan administered by the Audit Committee. 
3.6    There will be nine levels of participation, with participation in the cash and deferral features of the Plan as follows:
    									
		5
	

															
			Applicable Feature

					
			Annual
Cash Payment
		

Mandatory
Deferral

	Level I:	President	Yes		Yes
	Level II:	Executive Vice Presidents	Yes		Yes
	Level III:	Senior Vice Presidents	Yes		Yes
	Level IV	First Vice Presidents	Yes		Yes
	Level V:	Vice Presidents	Yes		Yes
	Level VI:	Assistant Vice Presidents/Functional Officers	Yes		No
	Level VII:	Professional Staff (Grade 15 and above)	Yes		No
	Level VIII:	Other Exempt Employees (Grade 14 and below)	Yes		No
	Level IX:	Other Non-exempt Employees	Yes		No

4.    Incentive Award Opportunity
4.1    Each Plan year, the Bank will provide an award opportunity to Participants. The award opportunity shall be a percentage of each Participant's compensation. Certain executive positions have a greater and more direct impact than others on the annual success of the Bank; therefore, these differences are recognized by varying award opportunities for each Participant level. (See Appendix B – Incentive Award Opportunity and Performance Mix for current Plan year award opportunities.) 
4.2    Compensation for Levels I through VI is defined as the applicable Participants’ base salary including any salary adjustments made during the Plan year.  
4.3    Compensation for levels VII VIII and IX is defined as the sum of the applicable Participant’s base pay including any salary adjustments made during, as well as shift differential and overtime paid through the Plan year. 
4.4    In addition to the incentive award opportunity described above, the President may also approve an additional discretionary incentive award opportunity (the “President’s Award”) for employees in Levels VII VIII and IX.  Based upon the recommendation of a Senior Officer, an employee in Level VII, VIII or IX may be nominated for a President’s Award in order to recognize extraordinary individual performance or to address competitive compensation practices within the Bank’s labor market. Generally, the President’s Award will not exceed an additional ten percent (10%) 
    									
		6
	

incentive opportunity for the Participant based on compensation as defined in section 4.3. 
5.    Performance Mix
5.1    Participants will earn their incentive award by achieving a combination of Bankwide objectives and individual goals. 
5.2    A Level I, II, III, IV, VII, VIII, or IX Participant will earn an incentive award based solely on the achievement of Bankwide objectives. 
5.3    The incentive award of a Level V or VI Participant will be weighted between Bankwide objectives and individual goals and will vary by Participant level. The more control and influence a Participant has on Bankwide goals, the greater the Participant's weighting on Bank goals will be. Likewise, the less control and influence a Participant has on Bankwide goals, the greater the weighting on that Participant's individual goals. See Appendix B – Incentive Award Opportunity and Performance Mix for current Plan year weightings.  
6.    Performance Measures
6.1    Bankwide and individual performance measures will be established with respect to each Plan year. Three achievement levels will be set for each Bankwide and, where applicable, individual measure, and include: 
									
	Threshold		The minimum achievement level accepted for the Performance Measure.
			
	Target		The planned achievement level for the Performance Measure.
			
	Maximum		The achievement level for the Performance Measure which substantially exceeds (as defined by the Committee) the planned level of achievement.

6.2    Bankwide measures will be established by the Human Resources, Compensation and Inclusion Committee with Board approval.  See Appendix C - Annual Bank Performance Measures and Bank Safety and Soundness Measures for the Deferred Award. 
6.3    Participants in Levels V and VI typically will have three to five major individual goals established that reflect the priorities of the Participant for the Plan year. Each goal will be weighted to reflect its relative importance, with a minimum weight of 10 percent per goal. In order to be eligible to receive an incentive award based on his or her individual performance, a 
    									
		7
	

Level IV or V Participant must submit his or her individual goals in writing to their Senior Officer and the President may approve or modify those goals.
6.4    All individual performance goals are to remain in effect for the entire Plan year, however, after the Plan year commences, at the sole discretion of the Human Resources, Compensation and Inclusion Committee with Board approval, the Committee may revise Bank Performance Measures and/or the President may also revise individual performance goals for the Plan year. All material changes, which occur after initial Finance Agency review and which impact Executive Officers are subject to further Finance Agency review. 
7.    Award Determination
7.1    The method of determining the Annual Incentive Award will be according to the following sequence: 
7.1.1    Define the dollar value of the Target Award Opportunity for the Participant. 
7.1.2    Determine the amount of the Target Award Opportunity that is attributable to Bank performance and to individual performance. 
7.1.3    After the Plan year ends, evaluate actual Bank performance against the Bankwide Performance Measures stated in Appendix C. Assess Bank performance as it relates to the threshold, target and maximum awards, interpolating between the threshold, target, and maximum awards as necessary. 
7.1.4    Using the award opportunity table described in Appendix B, determine the Bank incentive award by relating the level of actual Bank performance derived in 7.1.3 to the award opportunity for the Participant's level. Interpolate between the threshold, target, and maximum awards as necessary. 
7.1.5    After the Plan year ends, where applicable, evaluate actual individual Participant performance against the individual performance goals. Assess performance as it relates to the threshold, target, and maximum performance measures. 
7.1.6    Using the award opportunity table in Appendix B, determine the individual incentive award by relating the level of actual individual performance derived in 7.1.5 to the award opportunity for the Participant's Level. Interpolate between the threshold, target and maximum awards as necessary. 
    									
		8
	

7.1.7    Sum the Bank and individual awards to determine a total award for each Participant. The President with Human Resources, Compensation and Inclusion Committee approval may recommend the Board adjust the award of a Participant or one or more Levels of Participants. The Human Resources, Compensation and Inclusion Committee may recommend the Board adjust the award of the President.  All material changes, which occur after initial Finance Agency review and which impact Executive Officers are subject to further Finance Agency review.
7.1.8    Determine whether the Participant is eligible to receive an incentive award for the Plan year and applicable Deferral Period by applying the rules of Sections 8 and 9 below.

8.    Preconditions to Award
8.1    Certain preconditions must be satisfied before a final award may be made to a Participant:
8.1.1    The Bank must achieve one or more of the threshold measures of performance as defined in Appendix C; 
8.1.2    The President must determine and the Human Resources, Compensation and Inclusion Committee must concur that Bank performance is consistent with bestowing achievement awards; and
8.1.3    The Participant's immediate supervisor and the President must determine that the individual's overall performance meets their expectations. The President's performance (Level I) will be appraised by the Human Resources, Compensation and Inclusion Committee.  All other Participants will be appraised by the President and/or the Participant's immediate supervisor.
8.2    Should any individual Participant's performance meet these expectations but the Bank fail to achieve one or more of its threshold performance measures no Final Award will be made to any Participant (see exception in Section 8.3). Likewise, if the Bank achieves all its threshold performance measures but a Participant's performance fails to meet such expectations no Final Award will be made to that Participant. 
8.3    In the event the Bank does not achieve threshold performance levels, the President may recommend, with the concurrence of the Human Resources, Compensation and Inclusion Committee, an incentive award 
    									
		9
	

for extraordinary individual performance. Additionally or alternatively, at the Human Resources, Compensation and Inclusion Committee’s sole discretion, an incentive award may be recommended for Bank performance below threshold subject to final approval by the Board of Directors. All material changes, which occur after initial Finance Agency review and which impact Executive Officers are subject to further Finance Agency review.
8.4    The Level I, II, III,  IV, and V Participants shall not receive a Final Award under this Plan if during the most recent examination of the Bank by the Federal Housing Finance  Agency (“FHFA”), the Bank received the lowest Composite Rating (as defined in the FHLBank Rating System) indicating the Bank has been found to be operating in an unacceptable manner, exhibits serious deficiencies in corporate governance, risk management or financial condition and performance, or in substantial noncompliance with laws, FHFA regulations or supervisory guidance. Any awards to Levels VI, VII and VIII under these conditions are at the sole discretion of the Committee. 
8.5    Furthermore, the incentive award calculated may be reduced (but not to a number that is less than zero), for all Participants or for an individual Participant, as applicable, if the Committee in its discretion determine that any of the following occur such that if it had occurred prior to the payment of the award, it would have negatively impacted the goal results and/or been determined that it should have reduced the associated payout calculation: 
8.5.1    Operational errors or omissions resulting in material revisions to:  the financial results, information submitted to FHFA or payout calculation, or other data used to determine the award; 
8.5.2    Submission of significant information to the Securities and Exchange Commission, Office of Finance and/or FHFA materially beyond any deadline or applicable grace period, other than late submissions that are caused by acts of God or other events beyond the reasonable control of the Participants; or
8.5.3    Failure by the Bank to make sufficient progress, as determined by the Committee, in the timely remediation of examination and other supervisory findings and matters requiring attention. 
9.    Vesting of Awards, Timing of Benefit Payments 
9.1    Except as provided in Sections 9.2, 9.3, or 9.4 below, a Participant must be employed by the Bank both on the last day of the Performance Period 
    									
		10
	

and on the date the Final Award payment is made as authorized by the Board.  
9.2    Any Participant on an approved bona fide leave of absence on the date the Board authorizes the payment of the Final Award applicable to that Participant shall be paid his or her Final Award according to the normal payment schedule.
9.3    Except as provided in Section 9.3.1, 9.3.2, or 9.4 below, in the event a Participant voluntarily or involuntarily terminates employment during the Performance Period, no Final Award will be made to the Participant.
9.3.1    A Participant who dies or becomes Disabled during the Performance Period may receive a Final Award which is prorated for the applicable period, but only if the President nominates and the Board approves such action. In any such case, all Deferral Period payments will be made at the target level. Any Participant who becomes eligible for a prorated Final Award pursuant to this Section will be paid such Final Award,  as soon as practicable following his or her death or Disability but in all events, no later than 21⁄2 months following the close of the calendar year in which the death or Disability occurred.   
9.3.2    A Participant who Retires during the Performance Period may receive an Annual Incentive Award prorated for the applicable period. Any incentive award payments made pursuant to this Section will continue to be earned and evaluated according to the otherwise applicable criteria and shall be paid according to the normal payment schedule. If the Participant has a Deferred Award, those awards will continue to vest and will be paid out according to the applicable criteria and according to the normal payment schedule.
9.4    If a Participant ceases employment during the Performance Period or after the Performance Period but before the Board approves the Final Award for that Performance Period, the President may nominate and the Board may approve the Participant to receive a Final Award. In any such case, the Participant’s Final Award shall be paid according to the normal payment schedule.
9.5    Each Final Award shall be paid no later than 21⁄2 months following the close of the calendar year in which the applicable Performance Period ends. This means that any Annual Incentive Award (because it is not subject to mandatory deferral) shall be paid no later than 21⁄2 months following the close of the calendar year to which it relates; and any Deferred Incentive Award will be paid no later than 21⁄2 months following 
    									
		11
	

the close of the calendar year in which the mandatory three-year Deferral Period ends. In the case of Executive Officers, the Final Award is subject to Agency review prior to payment.
9.6    All Final Awards will be paid out in cash and will be subject to applicable payroll tax withholdings. 
9.7    No Final Award shall be considered as compensation under any employee benefit plan of the Bank, except as determined by the Board.
10.    Plan Communication
10.1    The Plan administrator will communicate with Participants regarding the Plan according to the following schedule: 
									
	First quarter of the Plan year		Communicate Bankwide and individual goals for Plan year.

	Quarterly		Interim assessments of progress toward achieving Bank and individual goals.

	End of Plan year		Final assessment of Bank and individual performance.

11.    Administrative Control
11.1    The Board has ultimate authority over the Plan, however, the Board may delegate any and all of its authority regarding the administration and amendment of the Plan to a committee or individual designee.  Notwithstanding the foregoing, the Board reserves unto itself the authority to terminate the Plan.
11.2    The Bank's First Vice President, Human Resources will assist, as requested, the President and the Committee in the administration of the particular provisions of the Plan delegated and specified throughout the Plan as the duties of the Committee and/or the President. 
11.3    In addition to the authority expressly provided in the Plan, the Board or its designee shall have such authority in its sole discretion to control and manage the operation and administration of the Plan and shall have all authority necessary to accomplish these purposes, including, but not limited to, the authority to interpret the terms of the Plan, and to decide questions regarding the Plan and the eligibility of any person to participate in the Plan and to receive benefits under the Plan. The Board’s 
    									
		12
	

determinations and interpretations regarding the Plan (or those of the Board’s designee) shall be final, binding, and conclusive.
11.4    The Board has the right to revise, modify, or terminate the Plan in whole or in part at any time or for any reason, and the right to modify any recommended incentive award amount (including the determination of a greater or lesser award, or no award), without the consent of any Participant. Any payment under the Plan may be impacted by Extraordinary Events, a failure to meet certain minimum financial performance or control requirements, and is subject to the claw back provisions described in Section 12.1. In the case of Plan termination, unless otherwise agreed by the Board, all Annual Incentive Awards and Deferred Awards hereunder which have not yet been paid are cancelled and forfeited.
12.    Miscellaneous Conditions
12.1    Any undue incentives (the amount of the incentive over and above what should have been paid barring inaccurate, misstated and/or misleading achievement of financial or operational goals) paid to officers of the Bank (i.e., levels I-VI) based on achievement of financial or operational goals within this Plan that subsequently are deemed to be inaccurate, misstated or misleading shall be recoverable from the officer by the Bank.  Inaccurate, misstated and/or misleading achievement of financial or operational goals includes, but is not limited to, overstated revenue, income, capital, return measures and/or understated credit risk, market risk, operational risk or expenses.  Furthermore, the value of any benefits delivered or accrued related to the undue incentive shall be reduced and/or recovered by the Bank to the fullest extent possible. 
12.2    Notwithstanding any Plan provision to the contrary, mere participation in the Plan will not entitle a Participant to an award. 
12.3    The right of the Bank to discipline or discharge a Participant shall not be affected by reason of any provision of this Plan. The designation of an employee as a Participant in the Plan does not guarantee employment.  Nothing in this Plan shall be deemed (i) to give any employee or Participant any legal or equitable rights against the Bank, except as expressly provided herein or provided by law; or (ii) to create a contract of employment with any employee or Participant, to obligate the Bank to continue the service of any employee or Participant, or to affect or modify any employee's or Participant's term of employment in any way.
12.4    No employee has a guaranteed right to any award under this Plan, and any attempt by an employee to sell, transfer, assign, pledge, or otherwise encumber any anticipated award shall be void, and the Bank shall not be 
    									
		13
	

liable in any manner for or subject to the debts, contracts, liabilities, engagements or torts of any person who might anticipate an award under this program. 
12.5    This Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Bank for payment of any award under this program. If the Bank in its sole and absolute discretion chooses to maintain one or more trusts for the purpose of facilitating the payment of benefits or expenses hereunder, the following provisions shall apply: 
12.5.1    the Bank may set aside in such trust such amount as it deems, in its sole and absolute discretion, necessary to assist it in meeting its obligations to Participants and beneficiaries hereunder; 
12.5.2    any amount so set aside shall remain subject to the claims of the Bank’s general creditors; and 
12.5.3    no such trust nor the assets held therein shall be located outside of the United States of America.
12.6    The Plan shall be construed, regulated and administered in accordance with the laws of the state of Ohio, unless otherwise preempted by the laws of the United States. 
12.7    If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of the Plan, and the Plan shall be construed and enforced as if such provision had not been included herein. 
12.8    If a Participant dies before receiving his or her award, any amounts determined to be paid under this Plan shall be paid to the Participant’s surviving spouse, if any, or if none, to the Participant’s estate. The Bank's determination as to the identity of the proper payee of any amount under this Plan shall be binding and conclusive and payment in accordance with such determination shall constitute a complete discharge of all obligations on account of such amount. 
12.9    Claims and Appeals Procedures. A Participant (such Participant being referred to below as a “Claimant”) may deliver to the Human Resources, Compensation and Inclusion Committee a written claim for a determination with respect to any claim under this Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. The 
    									
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claim must state with particularity the determination desired by the Claimant. 
The Human Resources, Compensation and Inclusion Committee shall consider a Claimant's claim within a reasonable time, but no later than one-hundred-twenty (120) days after receiving the claim. If the Human Resources, Compensation and Inclusion Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial one-hundred-twenty (120) day period. Upon reaching its decision, the Human Resources, Compensation and Inclusion Committee shall notify the Claimant in writing. 
On or before sixty (60) days after receiving a notice from the Human Resources, Compensation and Inclusion Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant's duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. The Committee shall render its decision on review promptly, in writing, and deliver it to the Claimant no later than one-hundred-twenty (120) days after it receives the Claimant’s written request for a review of the denial of the claim.  If the Human Resources, Compensation and Inclusion Committee fails to render a decision within that time frame, the claim is deemed denied.  The Human Resources, Compensation and Inclusion Committee’s decision upon review is final and binding upon the Participant, any beneficiary of the Participant, or any other person who claims to derive a benefit under this Plan by reference to the Participant.
12.10    Deadline to File Legal Action and Venue.  Any legal actions, suits or proceedings pertaining to this Plan shall be brought in the courts of Hamilton County, Ohio (whether federal or state) and the Participant, by submission of his or her individual goals hereunder to the President (or in the case of the President, to the Board or Committee), on his or her behalf and on behalf of his or her beneficiaries, persons claiming to be a beneficiary or any other persons who claim to derive a benefit under this Plan by reference to the Participant hereby irrevocably submits to the exclusive jurisdiction of said courts. The Participant on his or her behalf and on behalf of his or her beneficiaries, persons claiming to be a beneficiary or any other persons who claim to derive a benefit under this Plan by reference to the Participant hereby waives, to the fullest extent permitted by law, any objections he or she, his or her beneficiaries or any such persons may now or hereafter have to the laying of venue in any suit, action or proceeding hereunder in any court, as well as any right he or she, his or her beneficiaries or any such persons may now or hereafter have to remove any such suit, action or proceeding once commenced to 
    									
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another court in any jurisdiction on the grounds of forum non conveniens or otherwise.
No legal action to recover benefits under this Plan or any other action arising from, or related to, this Plan may be brought by any Claimant on any matter pertaining to this Plan unless the legal action is commenced in the proper forum as required by this Section within:
(a)    180 days of the date on which the Claimant knew or reasonably should have known of the principal facts on which the claim is based, or
(b)    180 days after the Claimant has exhausted the claims procedures set forth in Section 12.9.
For purpose of applying the foregoing provisions, knowledge of all facts that the Participant knew or reasonably should have known shall be imputed to every Claimant who is or claims to be a beneficiary of the Participant or otherwise claims to derive a benefit under this Plan by reference to the Participant.
12.11    Any agreements or representations, oral or otherwise, express or implied, with respect to the subject matter of this Plan which are not contained herein will have no effect or enforceability.
12.12    This Plan and the awards hereunder are exempt from the Employee Retirement Income Security Act of 1973, as amended, on account of the Bank being a governmental entity.  This Plan and the awards hereunder are intended to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.  Additionally, this Plan and the awards hereunder are intended to comply with the requirements of FHFA regulations and supervisory guidance and in accordance with Section 1116 of the Housing and Economic Recovery Act of 2008. 

    									
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APPENDICES                                            
    									
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APPENDIX A:                                            
Plan Participants – 2021 Plan Year

									
	Level	Title
			
	I		President & CEO*
			
	II		Executive Vice Presidents *
			
	III		Senior Vice Presidents*
			
	IV		First Vice Presidents*
			
	V		Vice Presidents*
			
	VI		Assistant Vice Presidents, Functional Officers*
			
	VII		Professional Staff (Grades 15 and above)
			
	VIII		Professional Staff (exempt status below grade 15)
			
	IX		Administrative Staff (non-exempt)

* Levels I-VI represent Officers of the Bank
    									
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APPENDIX B:
Incentive Award Opportunity to be applied to each Plan year (as a percentage of compensation)1 2 
Achievement Levels

															
	Level	Threshold	Target	Maximum	Deferral

	I	50.0%	75.0%	100.0%	50%
	II	40.0%	60.0%	80.0%	50%
	III	35.0%	52.5%	70.0%	50%
	IV	32.5%	48.75%	65.0%	40%
	V	30.0%	45.0%	60.0%	35%
	VI	12.5%	18.75%	25.0%	NA
	VII	7.75%	11.625%	15.5%	NA
	VIII	5.25%	7.875%	10.5%	NA
	IX	4.0%	6.0%	8.0%	NA

Weightings to be applied to each Plan year: 
									
	Level	Bank	Individual

	I	100%	0%
	II	100%	0%
	III	100%	0%
	IV	100%	0%
	V	75%	25%
	VI	60%	40%
	VII	100%	0%
	VIII	100%	0%
	IX	100%	0%

For each year within the deferral period, a rate of interest equal to the pension plan pre-map effective interest rate will be applied annually, which may be increased or decreased.  

1 Earned incentive awards that fall between any of the designated achievement levels (i.e., threshold, target, and maximum) will be interpolated.
2 See Section 3 with regards to the further weighting that applies to the ERM department.
    									
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APPENDIX C:                                            

2021 Annual Bank Performance Measures
There will be seven (7) Bank annual performance measures for the 2021 Plan Year. 
    									
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APPENDIX D:                                            

Bank Safety and Soundness Meaures for the Deferred Award

There will be one safety and soundness measure for the Deferred Award for the period covering 2021-2023.
																								
	2020-2022 (2019 Deferred Annual Incentive):
								
	Market Capitalization Ratio (1)
	Greater than 100%	100%
								
	(1) Ratio of Market Value of Equity (MVE) to Par Value of Regulatory Capital Stock measured as lower of up 200 bps and sliding scale for down rate shock.

    									
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APPENDIX E:                                            

2021 Incentive Compensation Program 
For Chief Risk Officer and Enterprise Risk Management Department

Composition of Annual Incentive Compensation Program

The incentive program for the Chief Risk Officer and ERM Department will be comprised of both the bank-wide goals and ERM department specific goals related to risk management.  

Bank-Wide Program:        75%
ERM-Department Program:    25%

Goals:

									
	Threshold:		Aggregate of 1 goals completed

	Target:		Aggregate of 3 goals completed

	Outstanding:		Aggregate of 4 goals completed

Each specific ERM department goal may be granted partial credit in increments of 0.25 (a 1.00 would indicate a strategy was completed and thus given 100 percent credit). However, individual goals with achievement of less than 100 percent will be counted as eligible only if at least one of the individual goals is achieved at a 100 percent level. Each eligible goal receives the same weight.
The objectives for each goal indicate the minimum specific actions to be implemented in order to achieve the goal.
Satisfactory achievement of goals is determined by the President with documentation provided by the Chief Risk Officer and confirmation by Human Resources and Internal Audit.
Governance 
Goal: 1 Enhance Compliance Program
Fully implement a compliance testing program including:
1.A formal review of other FHLBank compliance testing programs
2.Seek input from Bank-wide team, including “1B” staff
3.Develop a Bank risk-based compliance testing framework with annual plan
4.Implement activities per 2021 plan

Reporting & Monitoring
Goal 2:  Improve Dashboard Reporting and Data Management
1.Execute 2021 activities per the FMRA data project
    									
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2.Migrate Board Dashboard Data into FRAME Database Application
3.Migrate Risk Metrics Data into FRAME Database Application
4.Produce proof of concept dashboard for Board or ALCO reporting in Tableau or other dashboard application

Risk Assessment & Quantification
Goal 3:  Modeling & Validation
1.LIBOR transition modeling:
a.Develop Non-Libor based modeling, including but not limited to primary mortgage rate model re-development,
b.Update model documentation to reflect changes
2.Support non-LIBOR based Advance products, investments, and derivatives with modeling and analytics.
3.Develop and validate an internally built Credit Union Model to replace reliance on another FHLB.

Goal 4: Enhance Risk Assessment process
1.Review existing risk assessment process to make it consistent across the                          lines of defense
2.Review of Market and Liquidity risks:
a.Develop more formal/structured program, with an annual plan, for oversight of Market and Liquidity risks
b.Execute items on plan for the year
3.Review of mission asset pricing:
a.Road map and annual plan for 2021
b.Execute items on the plan for the year

    									
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