Exhibit 10.1 4 


 


ISRAELI SHARE OPTION PLAN


 


 


 






 








 


KAMADA LTD.


 


THE 2005 ISRAELI SHARE OPTION
PLAN


 


 


(*In compliance with Amendment No. 132
of the Israeli Tax Ordinance, 2002)


 


 


 



    	  



    	 



    



 


 


ISRAELI SHARE OPTION PLAN





 






 







 


 


This plan, as amended from time
to time, shall be known as Kamada Ltd. 2005 Israeli Share Option Plan (the “ISOP”).


 


 


1.PURPOSE OF THE ISOP


 


The ISOP is intended to provide
an incentive to retain, in the employ of the Company and its Affiliates (as defined below), persons of training, experience,
and ability, to attract new employees, directors, consultants, service providers and any other entity which the Board shall decide
their services are considered valuable to the Company, to encourage the sense of proprietorship of such persons, and to stimulate
the active interest of such persons in the development and financial success of the Company by providing them with opportunities
to purchase shares in the Company, pursuant to the ISOP.


 


2.DEFINITIONS


 


For purposes of the ISOP and
related documents, including the Option Agreement, the following definitions shall apply:


 


		2.1	“Affiliate” means any “employing company”
within the meaning of Section 102(a) of the Ordinance.



 


		2.2	“Approved 102 Option” means an Option granted pursuant
to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of the Optionee.



 


		2.3	“Board” means the Board of Directors
of the Company.



 


		2.4	“Capital Gain Option (CGO)” as defined in Section 5.4
below.



 


		2.5	“Cause” means, (i) conviction of any felony involving
moral turpitude or affecting the Company; (ii) any refusal to carry out a reasonable directive of the chief executive officer,
the Board or the Optionee’s direct supervisor, which involves the business of the Company or its Affiliates and was capable
of being lawfully performed; (iii) embezzlement of funds of the Company or its Affiliates; (iv) any breach of the Optionee’s
fiduciary duties or duties of care of the Company; including without limitation disclosure of confidential information of the Company;
and (v) any conduct (other than conduct in good faith) reasonably determined by the Board to be materially detrimental to the Company.



 


		2.6	“Chairman” means the chairman of the Committee.



 


		2.7	“Committee” means a share option compensation committee
appointed by the Board, 



 



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ISRAELI SHARE OPTION PLAN





 






 


 




			which shall
consist of no fewer than two members of the Board.



 


		2.8	“Company” means Kamada Ltd., an Israeli
company.



 


		2.9	“Companies Law” means the Israeli
Companies Law 5759-1999.



 


		2.10	“Controlling Shareholder” shall have the meaning ascribed
to it in Section 32(9) of the Ordinance.



 


		2.11	“Date of Grant” means, the date of grant of an Option,
as determined by the Board and set forth in the Optionee’s Option Agreement.



 


		2.12	“Employee” means a person who is employed by the Company
or its Affiliates, including an individual who is serving as a director or an office holder, but excluding Controlling Shareholder.



 


		2.13	“Expiration date” means the date upon
which an Option shall expire, as set forth in Section 10.2 of the ISOP.



 


		2.14	“Fair Market Value” means as of any date, the value of
a Share determined as follows:



 


(i) If the Shares are
listed on any established stock exchange or a national market system, including without limitation the NASDAQ National Market system,
or the NASDAQ SmallCap Market of the NASDAQ Stock Market, the Fair Market Value shall be the closing sales price for such Shares
(or the closing bid, if no sales were reported), as quoted on such exchange or system for the last market trading day prior to
time of determination, as reported in the Wall Street Journal, or such other source as the Board deems reliable. Without derogating
from the above, solely for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the
Date of Grant the Company’s shares are listed on any established stock exchange or a national market system or if the Company’s
shares will be registered for trading within ninety (90) days following the Date of Grant, the Fair Market Value of a Share at
the Date of Grant shall be determined in accordance with the average value
of the Company’s shares on the thirty (30) trading days preceding the Date of Grant or on the thirty (30) trading days following
the date of registration for trading, as the case may be;


 


(ii) If the Shares are
regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall be the mean
between the high bid and low asked prices for the Shares on the last market trading day prior to the day of determination, or;


 


(iii) In the absence of
an established market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Board.


 


		2.15	“IPO” means the initial public offering of the Company’s
shares.



 






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		2.16	“ISOP” means this 2005 Israeli Share Option Plan.



 


		2.17	“ITA” means the Israeli Tax Authorities.



 


		2.18	“Non-Employee” means a consultant, adviser, service provider,
Controlling Shareholder or any other person who is not an Employee.



 


		2.19	“Ordinary Income Option (OIO)” as defined in Section
5.5 below.



 


		2.20	“Option” means an option to purchase one or more Shares
of the Company pursuant to the ISOP.



 


		2.21	“102 Option” means any Option granted to Employees pursuant
to Section 102 of the Ordinance.



 


		2.22	“3(i) Option” means an Option granted pursuant to Section
3(i) of the Ordinance to any person who is Non- Employee.



 


		2.23	“Optionee” means a person who receives or holds an Option
under the ISOP.



 


		2.24	“Option Agreement”means the share
option agreement between the Company and an Optionee that sets out the terms and conditions of an Option.



 


		2.25	“Ordinance” means the 1961 Israeli Income Tax Ordinance
[New Version] 1961 as now in effect or as hereafter amended.



 


		2.26	“Purchase Price” means the price for each Share subject
to an Option.



 


		2.27	“Section 102” means section 102 of the Ordinance as now
in effect or as hereafter amended.



 


		2.28	“Share” means the ordinary shares,
NIS 1.00 par value each, of the Company.



 


		2.29	“Successor Company” means any entity the Company is merged
to or is acquired by, in which the Company is not the surviving entity.



 


		2.30	“Transaction” means (i) merger, acquisition or reorganization
of the Company with one or more other entities in which the Company is not the surviving entity, (ii) a sale of all or substantially
all of the assets of the Company.



 


		2.31	“Trustee” means any individual appointed by the Company
to serve as a trustee and approved by the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance.



 


		2.32	“Unapproved 102 Option” means an Option granted pursuant
to Section 102(c) of the



 


 



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			Ordinance
and not held in trust by a Trustee.






 


		2.33	“Vested Option” means any Option, which has already been
vested according to the Vesting Dates.



 


		2.34	“Vesting Dates” means, as determined by the Board or
by the Committee, the date as of which the Optionee shall be entitled to exercise the Options or part of the Options, as set forth
in section 11 of the ISOP.



 


3.ADMINISTRATION OF THE ISOP


 


		3.1	The Board shall have the power to administer the ISOP either directly or
upon the recommendation of the Committee, all as provided by applicable law and in the Company’s Articles of Association.
Notwithstanding the above, the Board shall automatically have residual authority if no Committee shall be constituted or if such
Committee shall cease to operate for any reason.



 


		3.2	The Committee shall select one of its members as its Chairman and shall
hold its meetings at such times and places as the Chairman shall determine. The Committee shall keep records of its meetings and
shall make such rules and regulations for the conduct of its business as it shall deem advisable.



 


		3.3	The Committee shall have the power to recommend to the Board and the Board
shall have the full power and authority to: (i) designate participants; (ii) determine the terms and provisions of the respective
Option Agreements, including, but not limited to, the number of Options to be granted to each Optionee, the number of Shares to
be covered by each Option, provisions concerning the time and the extent to which the Options may be exercised and the nature and
duration of restrictions as to the transferability or restrictions constituting substantial risk of forfeiture and to cancel or
suspend awards, as necessary; (iii) determine the Fair Market Value of the Shares covered by each Option; (iv) make an election
as to the type of Approved 102 Option; and (v) designate the type of Options.



 


The Committee shall have
full power and authority to :(i) grant Options to the Employees and to issue Shares underlying such Options and duly exercised
pursuant to the provisions herein, in accordance with section 288(b) of the Companies Law; (ii) alter any restrictions and conditions
of any Options or Shares subject to any Options (ii) interpret the provisions and supervise the administration of the ISOP; (iv)
accelerate the right of an Optionee to exercise in whole or in part, any previously granted Option; (v) determine the Purchase
Price of the Option; (vi) prescribe, amend and rescind rules and regulations relating to the ISOP; and (vii) make all other determinations
deemed necessary or advisable for the administration of the ISOP, including, without limitation, to adjust the terms of the ISOP
or any Option Agreement so as to reflect (a) changes in applicable laws and (b) the laws of other jurisdictions within which the
Company wishes to grant Options.


 






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		3.4	Notwithstanding the above, the Committee shall not be entitled to grant
Options to Optionees who are not Employees, however, it will be authorized to issue Shares underlying Options which have been granted
by the Board and duly exercised pursuant to the provisions herein in accordance with section 112(a)(5) of the Companies Law.



 


		3.5	The Board shall have the authority to grant, at its discretion, to the holder
of an outstanding Option, in exchange for the surrender and cancellation of such Option, a new Option having a purchase price equal
to, lower than or higher than the Purchase Price of the original Option so surrendered and canceled and containing such other terms
and conditions as the Committee may prescribe in accordance with the provisions of the ISOP. The Committee shall have the same
authority with respect to holders of outstanding Options who are Employees.



 


		3.6	Subject to the Company’s Articles of Association, all decisions and
selections made by the Board or the Committee pursuant to the provisions of the ISOP shall be made by a majority of its members
except that no member of the Board or the Committee shall vote on, or be counted for quorum purposes, with respect to any proposed
action of the Board or the Committee relating to any Option to be granted to that member. Any decision reduced to writing shall
be executed in accordance with the provisions of the Company’s Articles of Association, as the same may be in effect from
time to time.



 


		3.7	The interpretation and construction by the Committee of any provision of
the ISOP or of any Option Agreement thereunder shall be final and conclusive unless otherwise determined by the Board.



 


		3.8	Subject to the Company’s Articles of Association and the Company’s
decision, and to all approvals legally required, including, but not limited to the provisions of the Companies Law, each member
of the Board or the Committee shall be indemnified and held harmless by the Company against any cost or expense (including counsel
fees) reasonably incurred by him, or any liability (including any sum paid in settlement of a claim with the approval of the Company)
arising out of any act or omission to act in connection with the ISOP unless arising out of such member's own fraud or bad faith,
to the extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the member
may have as a director or otherwise under the Company's Articles of Association, any agreement, any vote of shareholders or disinterested
directors, insurance policy or otherwise.



 


4.DESIGNATION OF PARTICIPANTS


 


		4.1	The persons eligible for participation in the ISOP as Optionees shall include
any Employees and/or Non-Employees of the Company or of any Affiliate; provided, however, that (i) Employees may only be granted
102 Options; (ii) Non-Employees may only be granted 3(i) Options; and (iii) Controlling Shareholders may only be granted 3(i) Options.



 


			




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		4.2	The grant of an Option hereunder shall neither entitle the Optionee to participate
nor disqualify the Optionee from participating in, any other grant of Options pursuant to the ISOP or any other option or share
plan of the Company or any of its Affiliates.



 


		4.3	Anything in the ISOP to the contrary notwithstanding, all grants of Options
to directors and office holders shall be authorized and implemented in accordance with the provisions of the Companies Law or any
successor act or regulation, as in effect from time to time.



 


5.DESIGNATION OF OPTIONS
PURSUANT TO SECTION 102


 


		5.1	The Company may designate Options granted to Employees pursuant to Section
102 as Unapproved 102 Options or Approved 102 Options.



 


		5.2	The grant of Approved 102 Options shall be made under this ISOP adopted
by the Board as described in Section 15 below, and shall be conditioned upon the approval of this ISOP by the ITA.



 


		5.3	Approved 102 Option may either be classified as Capital Gain Option (“CGO”)
or Ordinary Income Option (“OIO”).



 


		5.4	Approved 102 Option elected and designated by the Company to qualify under
the capital gain tax treatment in accordance with the provisions of Section 102(b)(2) shall be referred to herein as CGO.



 


		5.5	Approved 102 Option elected and designated by the Company to qualify under
the ordinary income tax treatment in accordance with the provisions of Section 102(b)(1) shall be referred to herein as OIO.



 


		5.6	The Company’s election of the type of Approved 102 Options as CGO
or OIO granted to Employees (the “Election”), shall be appropriately filed with the ITA before the Date of Grant
of an Approved 102 Option. Such Election shall become effective beginning the first Date of Grant of an Approved 102 Option under
this ISOP and shall remain in effect until the end of the year following the year during which the Company first granted Approved
102 Options. The Election shall obligate the Company to grant only the type of Approved 102 Option it has elected, and shall
apply to all Optionees who were granted Approved 102 Options during the period indicated herein, all in accordance with the provisions
of Section 102(g) of the Ordinance. For the avoidance of doubt, such Election shall not prevent the Company from granting Unapproved
102 Options simultaneously.



 


		5.7	All Approved 102 Options must be held in trust by a Trustee, as described
in Section 6 below.



 


		5.8	For the avoidance of doubt, the designation of Unapproved 102 Options and
Approved 102 Options shall be subject to the terms and conditions set forth in Section 102 of the Ordinance and the regulations
promulgated thereunder.



 



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6.TRUSTEE


 


		6.1	Approved
102 Options which shall be granted under the ISOP and/or any Shares allocated or issued upon exercise of such Approved 102 Options
and/or other shares received subsequently following any realization of rights, including without limitation bonus shares, shall
be allocated or issued to the Trustee and held for the benefit of the Optionees for such period of time as required by Section
102 or any regulations, rules or orders or procedures promulgated thereunder (the “Holding Period”). In the
case the requirements for Approved 102 Options are not met, then the Approved 102 Options may be treated as Unapproved 102 Options,
all in accordance with the provisions of Section 102 and regulations promulgated thereunder.



 


		6.2	Notwithstanding anything to the contrary, the Trustee shall not release
any Shares allocated or issued upon exercise of Approved 102 Options prior to the full payment of the Optionee’s tax liabilities
arising from Approved 102 Options which were granted to him and/or any Shares allocated or issued upon exercise of such Options.



 


		6.3	With respect to any Approved 102 Option, subject to the provisions of Section
102 and any rules or regulation or orders or procedures promulgated thereunder, an Optionee shall not sell or release from trust
any Share received upon the exercise of an Approved 102 Option and/or any share received subsequently following any realization
of rights, including without limitation, bonus shares, until the lapse of the Holding Period required under Section 102 of the
Ordinance. Notwithstanding the above, if any such sale or release occurs during the Holding Period, the sanctions under Section
102 of the Ordinance and under any rules or regulation or orders or procedures promulgated thereunder shall apply to and shall
be borne by such Optionee.



 


 


		6.4	Upon receipt of Approved 102 Option, the Optionee will sign an undertaking
to release the Trustee from any liability in respect of any action or decision duly taken and bona fide executed in relation with
the ISOP, or any Approved 102 Option or Share granted to him thereunder.



 


7.SHARES RESERVED FOR THE
ISOP; RESTRICTION THEREON


 


		7.1	The Company has reserved 1,200,000 (One Million and Two Hundred Thousand)
authorized but unissued Shares, for the purposes of the ISOP and for the purposes of any other share option plans which may be
adopted by the Company in the future, subject to adjustment as set forth in Section 9 below. Any Shares which remain unissued and
which are not subject to the outstanding Options at the termination of the ISOP shall cease to be reserved for the purpose of the
ISOP, but until termination of the ISOP the Company shall at all times reserve sufficient number of Shares to meet the requirements
of the ISOP. Should any Option for any reason expire or be canceled prior to its exercise or relinquishment in full, the Shares
subject to such Option may again be subjected to an Option under the ISOP or under the Company’s other share option plans.



 






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		7.2	Each Option granted pursuant to the ISOP, shall be evidenced by a written
Option Agreement between the Company and the Optionee, in such form as the Board or the Committee shall from time to time approve.
Each Option Agreement shall state, among other matters, the number of Shares to which the Option relates, the type of Option granted
thereunder (whether a CGO, OIO, Unapproved 102 Option or a 3(i) Option), the Vesting Dates, the Purchase Price per share, the Expiration
Date and such other terms and conditions as the Committee or the Board in its discretion may prescribe, provided that they are
consistent with this ISOP.



 


			



 


		7.3	Until the consummation of an IPO, such Shares shall be voted by an irrevocable
proxy (the”Proxy”) pursuant to the directions of the Board, such Proxy to be assigned to the person or persons
designated by the Board. Such person or persons designated by the Board shall be indemnified and held harmless by the Company against
any cost or expense (including counsel fees) reasonably incurred by him/her, or any liability (including any sum paid in settlement
of a claim with the approval of the Company) arising out of any act or omission to act in connection with the voting of such Proxy
unless arising out of such member's own fraud or bad faith, to the extent permitted by applicable law. Such indemnification shall
be in addition to any rights of indemnification the person(s) may have as a director or otherwise under the Company's Articles
of Association, any agreement, any vote of shareholders or disinterested directors, insurance policy or otherwise. Without derogating
from the above, with respect to Approved 102 Options, such shares shall be voted in accordance with the provisions of Section 102
and any rules, regulations or orders promulgated thereunder.



 


8.PURCHASE PRICE


 


		8.1	The Purchase Price of each Share subject to an Option shall be determined
by the Committee in its sole and absolute discretion in accordance with applicable law, subject to any guidelines as may be determined
by the Board from time to time. Each Option Agreement will contain the Purchase Price determined for each Optionee.



 


		8.2	The Purchase Price shall be payable upon the exercise of the Option in a
form satisfactory to the Committee, including without limitation, by cash or check. The Committee shall have the authority to postpone
the date of payment on such terms as it may determine.



		8.3	The Purchase Price shall be denominated in the currency of the primary economic environment of,
either the Company or the Optionee (that is the functional currency of the Company or the currency in which the Optionee is paid)
as determined by the Company.



 


9.ADJUSTMENTS


 


Upon the occurrence of any of
the following described events, Optionee's rights to purchase Shares under the ISOP shall be adjusted as hereafter provided:


 






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		9.1	In the event of Transaction, the unexercised Options then outstanding under
the ISOP shall be assumed or substituted for an appropriate number of shares of each class of shares or other securities of the
Successor Company (or a parent or subsidiary of the Successor Company) as were distributed to the shareholders of the Company in
connection and with respect to the Transaction. In the case of such assumption and/or substitution of Options, appropriate adjustments
shall be made to the Purchase Price so as to reflect such action and all other terms and conditions of the Option Agreements shall
remain unchanged, including but not limited to the vesting schedule, all subject to the determination of the Committee or the Board,
which determination shall be in their sole discretion and final. The Company shall notify the Optionee of the Transaction in such
form and method as it deems applicable at least ten (10) days prior to the effective date of such Transaction.



 


		9.2	Notwithstanding the
above and subject to any applicable law, the Board or the Committee shall have full power and authority to determine that in certain
Option Agreements there shall be a clause instructing that, if in any such Transaction as described in section 9.1 above, the Successor
Company (or parent or subsidiary of the Successor Company) does not agree to assume or substitute for the Options, the
Vesting Dates shall be accelerated so that any unvested Option or any portion thereof shall be immediately vested as of the date
which is ten (10) days prior to the effective date of the Transaction.



 


		9.3	For the purposes of section 9.1 above, an Option shall be considered assumed
or substituted if, following the Transaction, the Option confers the right to purchase or receive, for each Share underlying an
Option immediately prior to the Transaction, the consideration (whether shares, options, cash, or other securities or property)
received in the Transaction by holders of shares held on the effective date of the Transaction (and if such holders were offered
a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided,
however, that if such consideration received in the Transaction is not solely ordinary shares (or their equivalent) of the Successor
Company or its parent or subsidiary, the Committee may, with the consent of the Successor Company, provide for the consideration
to be received upon the exercise of the Option to be solely ordinary shares (or their equivalent) of the Successor Company or its
parent or subsidiary equal in Fair Market Value to the per Share consideration received by holders of a majority of the outstanding
shares in the Transaction; and provided further that the Committee may determine, in its discretion, that in lieu of such assumption
or substitution of Options for options of the Successor Company or its parent or subsidiary, such Options will be substituted for
any other type of asset or property including cash which is fair under the circumstances.



 


		9.4	If the Company is voluntarily liquidated or dissolved while unexercised
Options remain outstanding under the ISOP, the Company shall immediately notify all unexercised Option holders of such liquidation,
and the Option holders shall then have ten (10) days to exercise any unexercised Vested Option held by them at that time, in accordance
with the exercise procedure set forth herein. Upon the expiration of such ten-days period, all remaining outstanding Options will
terminate immediately.



 






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		9.5	If the outstanding
shares of the Company shall at any time be changed or exchanged by declaration of a share dividend (bonus shares), share split,
combination or exchange of shares, recapitalization, or any other like event by or of the Company, and as often as the same shall
occur, then the number, class and kind of the Shares subject to the ISOP or subject to any Options therefore granted, and the Purchase
Prices, shall be appropriately and equitably adjusted so as to maintain the proportionate number of Shares without changing the
aggregate Purchase Price, provided, however, that no adjustment shall be made by reason of the distribution of subscription rights
(rights offering) on outstanding shares. Upon happening of any of the foregoing, the class and aggregate number of Shares issuable
pursuant to the ISOP (as set forth in Section 7 hereof), in respect of which Options have not yet been exercised, shall be appropriately
adjusted, all as will be determined by the Board whose determination shall be final.



 


		9.6	Anything herein to the contrary notwithstanding, if prior to the completion
of the IPO all or substantially all of the shares of the Company are to be sold, or in case of a Transaction, all or substantially
all of the shares of the Company are to be exchanged for securities of another Company, then each Optionee shall be obliged to
sell or exchange, as the case may be, any Shares such Optionee purchased under the ISOP, in accordance with the instructions issued
by the Board in connection with the Transaction, whose determination shall be final.



 


		9.7	The Optionee acknowledges that in the event that the Company’s shares
shall be registered for trading in any public market, Optionee’s rights to sell the Shares may be subject to certain limitations
(including a lock-up period), as will be requested by the Company or its underwriters, and the Optionee unconditionally agrees
and accepts any such limitations.



 


 


10.TERM AND EXERCISE OF OPTIONS


 


		10.1	Options shall be exercised by the Optionee by giving written notice to the
Company and/or to any third party designated by the Company (the “Representative”), in such form and method
as may be determined by the Company and when applicable, by the Trustee in accordance with the requirements of Section 102, which
exercise shall be effective upon receipt of such notice by the Company and/or the Representative and the payment of the Purchase
Price at the Company’s or the Representative’s principal office. The notice shall specify the number of Shares with
respect to which the Option is being exercised.



 


		10.2	Options, to the extent not previously exercised, shall terminate forthwith
upon the earlier of: (i) the date set forth in the Option Agreement; and (ii) the expiration of any extended period in any of the
events set forth in section 10.5 below.



 


		10.3	The Options may be exercised by the Optionee in whole at any time or in
part from time to time, to the extent that the Options become vested and exercisable, prior to the Expiration Date, and provided
that, subject to the provisions of section 10.5 below, the 



 






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			Optionee is employed by or providing services to the Company or any
of its Affiliates, at all times during the period beginning with the granting of the Option and ending upon the date of exercise.






 


		10.4	Subject to the provisions of section 10.5 below, in the event of termination
of Optionee’s employment or services, with the Company or any of its Affiliates, all Options granted to such Optionee will
immediately expire. A notice of termination of employment or service shall be deemed to constitute termination of employment or
service. For the avoidance of doubt, in case of such termination of employment or service, the unvested portion of the Optionee’s
Option shall not vest and shall not become exercisable.



 


		10.5	Notwithstanding anything to the contrary hereinabove and unless otherwise
determined in the Optionee’s Option Agreement, an Option may be exercised after the date of termination of Optionee's employment
or service with the Company or any Affiliates during an additional period of time beyond the date of such termination, but only
with respect to the number of Vested Options at the time of such termination according to the Vesting Dates, if:



 


		(i)	termination is due to Optionee's resignation, other than in the circumstances
described in paragraph (iii) below, in which event any Vested Option still in force and unexpired may be exercised within a period
of thirty (30) days after the date of such termination; or-



 


		(ii)	termination is initiated by the Company without Cause,
in which event any Vested Option still in force and unexpired may be exercised within a period of ninety (90) days after the date
of such termination; or-



 


		(iii)	termination is the result of death or disability of the
Optionee, in which event any Vested Option still in force and unexpired may be exercised within a period of twelve (12) months
after the date of such termination; or –



 


		(iv)	prior to the date of such termination, the Committee
shall authorize an extension of the terms of all or part of the Vested Options beyond the date of such termination for a period
not to exceed the period during which the Options by their terms would otherwise have been exercisable.



 


For avoidance of any doubt,
if termination of employment or service is for Cause, any outstanding unexercised Option (whether vested or non-vested), will immediately
expire and terminate, and the Optionee shall not have any right in connection to such outstanding Options.


 


		10.6	To avoid doubt, the Optionees shall not have any of the rights or privileges
of shareholders of the Company in respect of any Shares purchasable upon the exercise of any Option, nor shall they be deemed to
be a class of shareholders or creditors of the Company for purpose of the operation of sections 350 and 351 of the Companies Law
or 



 






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			any successor to such section, until registration of the Optionee as holder of such Shares in the Company’s register of
shareholders upon exercise of the Option in accordance with the provisions of the ISOP, but in case of Options and Shares held
by the Trustee, subject to the provisions of Section 6 of the ISOP.



 


		10.7	Any form of Option Agreement authorized by the ISOP may contain such other
provisions as the Committee may, from time to time, deem advisable.



 


		10.8	With respect to Unapproved 102 Option, if the Optionee ceases to be employed
by the Company or any Affiliate, the Optionee shall extend to the Company and/or its Affiliate a security or guarantee for the
payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102 and the rules, regulation
or orders promulgated thereunder.



 


11.VESTING OF OPTIONS


 


		11.1	Subject to the provisions of the ISOP, each Option shall vest following
the Vesting Dates and for the number of Shares as shall be provided in the Option Agreement. However, no Option shall be exercisable
after the Expiration Date.



 


		11.2	An Option may be subject to such other terms and conditions on the time
or times when it may be exercised, as the Committee may deem appropriate. The vesting provisions of individual Options may vary.



			



 


12.SHARES SUBJECT TO RIGHT
OF FIRST REFUSAL


 


		12.1	Notwithstanding anything to the contrary in the Articles of Association
of the Company, none of the Optionees shall have a right of first refusal in relation with any sale of shares in the Company.



 


		12.2	Unless otherwise determined by the Committee, until such time as the Company
shall complete an IPO, the sale of Shares issuable upon the exercise of an Option shall be subject to a right of first refusal
on the part of the Repurchaser(s).



 


			Repurchaser(s) means (i) the Company, if permitted by applicable law, (
ii) if the Company is not permitted by applicable law , then any affiliate of the Company designated by the Committee; or (iii)
if no decision is reached by the Committee, then the Company’s existing shareholders (save, for avoidance of doubt, for other
Optionees who already exercised their Options), pro rata in accordance with their shareholding. The Optionee shall give a notice
of sale (hereinafter the “Notice”) to the Company in order to offer the Shares to the Repurchaser(s).



 


		12.3	The Notice shall specify the name of each proposed purchaser or other transferee
(hereinafter the “Proposed Transferee”), the number of Shares offered for sale, the price per Share and the
payment terms. The Repurchaser(s) will be entitled for thirty (30) days from the day of receipt of the Notice (hereinafter the
“Notice Period”), to purchase all or 



 






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			part of
the offered Shares on a pro rata basis based upon their respective holdings in the Company.



 


		12.4	If by the end of the Notice Period not all of the offered Shares have been
purchased by the Repurchaser(s), the Optionee shall be entitled to sell such Shares at any time during the ninety (90) days following
the end of the Notice Period on terms not more favorable than those set out in the Notice, provided that the Proposed Transferee
agrees in writing that the provisions of this section shall continue to apply to the Shares in the hands of such Proposed Transferee.
Any sale of Shares issued under the ISOP by the Optionee that is not made in accordance with the ISOP or the Option Agreement shall
be null and void.



 


13.DIVIDENDS


 


With respect to all Shares (but
excluding, for avoidance of any doubt, any unexercised Options) allocated or issued upon the exercise of Options purchased by the
Optionee and held by the Optionee or by the Trustee, as the case may be, the Optionee shall be entitled to receive dividends in
accordance with the quantity of such Shares, subject to the provisions of the Company’s Articles of Association (and all
amendments thereto) and subject to any applicable taxation on distribution of dividends, and when applicable subject to the provisions
of Section 102 and the rules, regulations or orders promulgated thereunder.


 


14.RESTRICTIONS ON ASSIGNABILITY
AND SALE OF OPTIONS


 


		14.1	No Option or any right with respect thereto, purchasable hereunder, whether
fully paid or not, shall be assignable, transferable or given as collateral or any right with respect to it given to any third
party whatsoever, except as specifically allowed under the ISOP, and during the lifetime of the Optionee each and all of such Optionee's
rights to purchase Shares hereunder shall be exercisable only by the Optionee.



 


			Any such action made directly or indirectly, for an immediate validation
or for a future one, shall be void.



 


		14.2	As long as the Shares are held by the Trustee on behalf of the Optionee,
all rights of the Optionee over the Shares are personal, can not be transferred, assigned, pledged or mortgaged, other than by
will or pursuant to the laws of descent and distribution.



 


15.EFFECTIVE DATE AND DURATION
OF THE ISOP


 


The ISOP shall be effective
as of the day it was adopted by the Board and shall terminate at the end of ten (10) years from such day of adoption.


 






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The Company shall obtain the
approval of the Company’s shareholders for the adoption of this ISOP or for any amendment to this ISOP, if shareholders’
approval is necessary or desirable to comply with any applicable law including without limitation the US securities law or the
securities laws of other jurisdiction applicable to Options granted to Optionees under this ISOP, or if shareholders’ approval
is required by any authority or by any governmental agencies or national securities exchanges including without limitation the
US Securities and Exchange Commission.


 


16.AMENDMENTS OR TERMINATION


 


The Board may at any time, but
when applicable, after consultation with the Trustee, amend, alter, suspend or terminate the ISOP. No amendment, alteration, suspension
or termination of the ISOP shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the
Company, which agreement must be in writing and signed by the Optionee and the Company. Termination of the ISOP shall not affect
the Committee’s ability to exercise the powers granted to it hereunder with respect to Options granted under the ISOP prior
to the date of such termination.


 


17.GOVERNMENT REGULATIONS


 


The ISOP, and the granting and
exercise of Options hereunder, and the obligation of the Company to sell and deliver Shares under such Options, shall be subject
to all applicable laws, rules, and regulations, whether of the State of Israel or of the United States or any other State having
jurisdiction over the Company and the Optionee, including the registration of the Shares under the United States Securities Act
of 1933, and the Ordinance and to such approvals by any governmental agencies or national securities exchanges as may be required.
Nothing herein shall be deemed to require the Company to register the Shares under the securities laws of any jurisdiction.


 


18.CONTINUANCE OF EMPLOYMENT
OR HIRED SERVICES


 


Neither the ISOP nor the Option
Agreement with the Optionee shall impose any obligation on the Company or an Affiliate thereof, to continue any Optionee in its
employ or service, and nothing in the ISOP or in any Option granted pursuant thereto shall confer upon any Optionee any right to
continue in the employ or service of the Company or an Affiliate thereof or restrict the right of the Company or an Affiliate thereof
to terminate such employment or service at any time.


 


19.GOVERNING LAW & JURISDICTION


 


The ISOP shall be governed by
and construed and enforced in accordance with the laws of the State of Israel applicable to contracts made and to be performed
therein, without giving effect to the principles of conflict of laws. The competent courts of Tel-Aviv, Israel shall have sole
jurisdiction in any matters pertaining to the ISOP.


 


20.TAX CONSEQUENCES


 


		20.1	Any tax consequences arising from the grant or exercise of any Option, from
the payment



 


 






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			for Shares covered thereby or from any other event or act (of the Company and/or its Affiliates, the Trustee or the
Optionee), hereunder, shall be borne solely by the Optionee. The Company and/or its Affiliates and/or the Trustee shall withhold
taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore,
the Optionee shall agree to indemnify the Company and/or its Affiliates and/or the Trustee and hold them harmless against and from
any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the
necessity to withhold, or to have withheld, any such tax from any payment made to the Optionee.



 


		20.2	The Company and/or, when applicable, the Trustee shall not be required to
release any Share certificate to an Optionee until all required payments have been fully made.



 


 


21.NON-EXCLUSIVITY OF THE
ISOP


 


The adoption of the ISOP by
the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangements or as creating
any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without
limitation, the granting of Options otherwise than under the ISOP, and such arrangements may be either applicable generally or
only in specific cases.


 


For the avoidance of doubt,
prior grant of options to Optionees of the Company under their employment agreements, and not in the framework of any previous
option plan, shall not be deemed an approved incentive arrangement for the purpose of this Section.


 


22.MULTIPLE AGREEMENTS


 


The terms of each Option
may differ from other Options granted under the ISOP at the same time, or at any other time. The Board may also grant more than
one Option to a given Optionee during the term of the ISOP, either in addition to, or in substitution for, one or more Options
previously granted to that Optionee.


 








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