Exhibit 4.6




 





LabStyle
Innovations Corp.


 


2012
Equity Incentive Plan


 


Adopted
on January 23, 2012 


 


1.                 
Purposes.


 


(a)              
Eligible Recipients. The persons eligible to receive awards hereunder are the Employees, Directors and Consultants of
the Company and its Affiliates.


 


(b)              
Available Awards. The purpose of the Plan is to provide a means by which eligible recipients of Option Awards may be
given an opportunity to benefit from increases in value of the Common Stock through the granting of: (i) Incentive Stock Options
and (ii) Nonstatutory Stock Options.


 


(c)               
General Purpose. The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to
receive Option Awards, to secure and retain the services of new members of this group and to provide incentives for such persons
to exert maximum efforts for the success of the Company and its Affiliates.


 


2.                 
Definitions. The following capitalized terms have the following meanings.
Other capitalized terms are defined elsewhere herein.


 


(a)              
“Affiliate” means (i) any person or entity that directly or indirectly controls, is controlled
by or is under common control with the Company and/or (ii) to the extent provided by the Committee, any person or entity in
which the Company has a significant interest as determined by the Committee in its discretion. The term “control” (including,
with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any
person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.


 


(b)              
“Board” means the Board of Directors of the Company. If a Committee has been appointed to administer
this Plan, references herein to the term “Board” shall apply to such Committee to the extent such Committee has been
delegated authority over the applicable subject matter.


 


(c)               
“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions
in New York City, New York are authorized or obligated by federal law or executive order to be closed.


 


(d)              
“Cause” shall mean, in the case of a particular Option Award, unless the applicable Option Agreement
states otherwise: (i) if the Participant is a party to an employment or service agreement with the Company or its Affiliates and
such agreement provides for a definition of “cause”, the definition contained therein; or (ii) if no such agreement
exists, or if such agreement does not define “cause”: (a) conviction of, or plea of guilty or no contest to, any felony
or any crime involving moral turpitude or dishonesty or the commission of any other act involving willful malfeasance or material
fiduciary breach with respect to the Company or an Affiliate; (b) participation in a fraud, misappropriation, or embezzlement of
Company and/or its Affiliate funds or property or act of dishonesty against the Company and/or its Affiliate; (c) material violation
of any rule, regulation, policy or plan for the conduct of (as the case may be) any director, officer, employee, member, manager,
consultant or service provider of or to the Company or its Affiliates or its or their business (which, if curable, is not cured
within 5 Business Days after notice thereof is provided to the Participant); (d) conduct that results in or is reasonably likely
to result in harm to the reputation or business of the Company or any of its Affiliates; (e) gross negligence or willful misconduct
with respect to the Company or an Affiliate; (f) material violation of U.S. state, federal or other applicable (including non-U.S.)
securities laws or (g) material breach of Optionholder’s Proprietary Information and Inventions Agreement.


 






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(e)               
“Change in Control” shall, in the case of a particular Option Award, unless the applicable Option
Agreement states otherwise or contains a different definition of “Change in Control,” be deemed to occur upon:


 


(i)                
An acquisition (whether directly from the Company or otherwise) of any voting securities of the Company (the “Voting
Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d)
of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”)), immediately after which
such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more
than fifty percent (50%) of the combined voting power of the Company’s then outstanding Voting Securities.


 


(ii)              
The individuals who constitute the members of the full Board of Directors of the Company cease, by reason of a financing,
merger, combination, acquisition, takeover or other non-ordinary course transaction affecting the Company, to constitute at least
fifty-one percent (51%) of the members of the full Board of Directors of the Company; or


 


(iii)            
Approval by the full Board of Directors of the Company and, if required, stockholders of the Company of, or execution
by the Company of any definitive agreement with respect to, or the consummation of (it being understood that the mere execution
of a term sheet, memorandum of understanding or other non-binding document shall not constitute a Change of Control):


 


(A) A merger, consolidation
or reorganization involving the Company, where either or both of the events described in clauses (i) or (ii) above would
be the result;


 


(B) A liquidation
or dissolution of or appointment of a receiver, rehabilitator, conservator or similar person for, or the filing by a third party
of an involuntary bankruptcy against, the Company; provided, however, that to the extent necessary to comply with Section 409A
of the Code, the occurrence of an event described in this subsection (B) shall not permit the settlement of Restricted Stock
Units granted under this Plan; or


 






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(C) An agreement
for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer
to a subsidiary of the Company).


 


(f)               
“Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto. Any reference
to a section of the Code shall be deemed to include any regulations promulgated thereunder.


 


(g)              
“Committee” means a committee of one or more members of the Board appointed by the Board in accordance
with subsection 3(c) to administer this Plan.


 


(h)              
“Common Stock” means the common stock, par value $0.001 of the Company.


 


(i)                
“Company” means LabStyle Innovations Corp., a Delaware corporation, and any successor thereto.


 


(j)                
“Consultant” means any person, including an advisor engaged by the Company or an Affiliate to render
consulting or advisory services and who is compensated for such services.


 


(k)              
“Continuous Service” means that the Participant’s service with the Company or an Affiliate,
whether as an Employee, Director or Consultant, is not interrupted or terminated. The Participant’s Continuous Service shall
not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the Company
or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service,
provided that there is no interruption or termination of the Participant’s Continuous Service; provided further
that if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to the extent consistent
with Section 409A of the Code. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate
or a Director will not constitute an interruption of Continuous Service. The Committee or its delegate, in its sole discretion,
may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party,
including sick leave, military leave. relocation or any other personal or family leave of absence.


 


(l)                
“Covered Employee” means the chief executive officer and the other highest compensated officers of
the Company for whom total compensation is required to be reported to stockholders under the Exchange Act, as determined for purposes
of Section 162(m) of the Code.


 


(m)            
“Director” means a member of the Board.


 


(n)              
“Disability” means that the Participant is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining the term
of an Incentive Stock Option, the term Disability shall have the meaning ascribed to it Section 22(e)(3) of the Code. The determination
of whether an individual has a Disability shall be determined under procedures established by the Committee. Except in situations
where the Committee is determining Disability for purposes of the term of an Incentive Stock Option within the meaning of Section
22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for purposes of benefits under
any long-term disability plan maintained by the Company or any Affiliate in which a Participant participates.


 






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(o)              
“Employee” means any person, including an Officer or Director, employed by the Company or an Affiliate;
provided, that, for purposes of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee
of the Company or a parent or subsidiary corporation within the meaning of Code Section 424. Mere service as a Director or payment
of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the
Company or an Affiliate.


 


(p)              
“Exchange Act” means the Securities Exchange Act of 1934, as amended.


 


(q)              
“Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:


 


(i)                
If the Common Stock is listed on any established stock exchange or a national market system, including without limitation,
the New York Stock Exchange or the NASDAQ Stock Market, or quoted on a national exchange or other recognized securities quotation
system (such as the OTC Bulletin Board/OTCQB Market), the Fair Market Value of a share of Common Stock shall be the closing sales
price for such stock as quoted on such exchange, market or quotation system (or the exchange or market with the greatest volume
of trading in the Common Stock) on the last market trading day prior to the day of determination (or the closing price on the date
immediately preceding such date if no sales activity occurred on the day of determination), as reported by Bloomberg or such other
source as the Board deems reliable.


 


(ii)              
In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the
Board and such determination shall be conclusive and binding on all persons; provided that, (a) with respect to Options that are
Incentive Stock Options, the Board shall make such determination in accordance with the provisions of Section 422 of the Code and
subject to all applicable U.S. Treasury Regulations and any other applicable guidance promulgated pursuant thereto; (b) with respect
to Options that are not Incentive Stock Options, the determination shall be in accordance with and applicable to U.S. Treasury
Regulations and any other applicable guidance promulgated pursuant thereto.


 


(r)               
“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and the U.S. Treasury Regulations promulgated thereunder.


 


(s)               
“IPO” means the occurrence of each of the following: (i) either (A) a registration statement covering
an initial public offering or public resale of the Company’s securities by the Company and/or its stockholders is declared
effective by the Securities and Exchange Commission or (B) the Company consummates a “reverse merger” transaction with
a public vehicle and (ii) the company (or its successor) becomes or is a reporting company under the Securities Exchange Act of
1934, as amended, with its common stock listed or quoted on a national exchange or other recognized securities quotation system
(such as the OTC Bulletin Board/OTCQB Market).


 






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(t)                
“Listing Date” means the first date upon which the Company’s Common Stock is (i) listed (or
approved for listing) upon notice of issuance on any securities exchange,(ii) designated (or approved for designation) upon notice
of issuance as a national market security on an interdealer quotation system if such securities exchange or interdealer quotation
system has been certified or (iii) quoted on any recognized securities quotation system (such as the OTC Bulletin Board/OTCQB Market).


 


(u)              
“Non-Employee Director” means a Director who either (i) is not a current Employee or Officer of the
Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the Company or its parent or
a subsidiary for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which
disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation
S-K”)), does not possess an interest in any other transaction as to which disclosure would be required under Item
404(a) of Regulation S-K and is not engaged in a business relationship as to which disclosure would be required under Item 404(b)
of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.


 


(v)              
“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option
and does not meet the requirements of, and is not governed by, the rules of Sections 421 through 424 of the Code.


 


(w)            
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated thereunder.


 


(x)              
“Option” means an Incentive Stock Option, a Nonstatutory Stock Option or any other option granted
pursuant to the Plan or any Sub Plan.


 


(y)              
“Option Award” means an award of any Option granted under the Plan or any Sub Plan.


 


(z)               
“Option Agreement” means a written agreement between the Company and an Optionholder evidencing the
terms and conditions of an individual Option Award. Each Option Agreement shall be subject to the terms and conditions of the Plan.


 


(aa)          
“Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable,
such other person who holds an outstanding Option.


 


(bb)         
“Outside Director” means a Director who either (i) is not a current employee of the Company or an
“affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code),
is not a former employee of the Company or an “affiliated corporation” receiving compensation for prior services (other
than benefits under a tax qualified pension plan), was not an officer of the Company or an “affiliated corporation”
at any time and is not currently receiving direct or indirect remuneration from the Company or an “affiliated corporation”
for services in any capacity other than as a Director or (ii) is otherwise considered an “outside director” for purposes
of Section 162(m) of the Code.


 






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(cc)           
“Parent” means any corporation (other than the Company) in an unbroken chain of corporations or other
entities ending with the Company, if each of the corporations or other entities (other than the Company) owns stock possessing
50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation
or other entity that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing
as of such date.


 


(dd)         
“Participant” means a person to whom an Option Award is granted pursuant to the Plan or, if applicable,
such other person who holds an outstanding Option Award.


 


(ee)           
“Plan” means this Labstyle Innovations Corp. 2012 Equity Incentive Plan.


 


(ff)            
“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3,
as in effect from time to time.


 


(gg)          
“Securities Act” means the Securities Act of 1933, as amended.


 


(hh)         
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations
or other entities beginning with the Company, if each of the corporations or other entities other than the last corporation or
entity in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one
of the other corporations or entities in such chain. A corporation or other entity that attains the status of a Subsidiary on a
date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.


 


(ii)              
“Sub Plan” means any sub plan subject to the terms of the Plan.


 


(jj)             
“Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d)
of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company
or of any of its Affiliates.


 


3.                 
Administration.


 


(a)              
Administration by Board. The Board shall administer the Plan unless and until the Board delegates administration to
a Committee, as provided in subsection 3(c). Any interpretation of the Plan by the Board and any decision by the Board under the
Plan shall be final and binding on all persons.


 


(b)              
Powers of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of
the Plan:


 






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(i)                
to determine from time to time which of the persons eligible under the Plan shall be granted Option Awards; when and
how each Option Award shall be granted; what type or combination of types of Option Award shall be granted; the provisions and
terms of each Option Award granted (which need not be identical), including the time or times when a person shall be permitted
to receive Common Stock pursuant to an Option Award; the number of shares of Common Stock with respect to which an Option Award
shall be granted to each such person; and to prescribe the terms and conditions of each Option Award, including, without limitation,
the exercise price and medium of payment (including Options exercisable via “cashless exercise”) and vesting provisions,
and to specify the provisions of the Option Award relating to such grant;


 


(ii)              
to construe and interpret (i) the Plan and apply its provisions and (ii) Option Awards granted under it, and to establish,
amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect,
omission or inconsistency in the Plan or in any Option Agreement, in a manner and to the extent it shall deem necessary or expedient
to make the Plan fully effective;


 


(iii)            
to promulgate, amend and rescind rules and regulations relating to the administration of the Plan or an Option Award;


 


(iv)            
to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the
Plan;


 


(v)              
to delegate its authority to one or more Officers of the Company with respect to Option Awards that do not involve Covered
Employees or “insiders” within the meaning of Section 16 of the Exchange Act;


 


(vi)            
to determine whether each Option is to be an Incentive Stock Option or a Nonstatutory Stock Option;


 


(vii)          
to amend any outstanding Option Awards, including for the purpose of modifying the time or manner of vesting, or the
term of any outstanding Option Award; provided, however, that if any such amendment impairs a Participant’s rights
or increases a Participant’s obligations under his or her Option Award or creates or increases a Participant’s federal
income tax liability with respect to an Option Award, such amendment shall also be subject to the Participant’s consent;


 


(viii)        
to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting
termination of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable
to Employees under the Company’s employment policies;


 


(ix)            
to make decisions with respect to outstanding Option Awards that may become necessary upon a change in corporate control
or an event that triggers anti-dilution adjustments;


 






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(x)              
to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for
the administration of the Plan; and


 


(xi)            
generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the
best interests of the Company which are not in conflict with the provisions of the Plan.


 


(c)               
Delegation to Committee.


 


(i)                
General. The Board may delegate administration of the Plan to a Committee or Committees of one (1) or more members of
the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been
delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the
Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from
time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan.
From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with
or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The
Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members,
the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes
shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by
the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it
may determine to be advisable


 


(ii)              
Committee Composition when Common Stock is Publicly Traded. At such time as the Common Stock is publicly traded, unless
otherwise determined by the Board not to comply with the exemption requirements of rule 16b-3 and/or Section 162(m) of the Code,
a Committee shall consist solely of two (2) or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely
of two (2) or more Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such authority, the Board or the
Committee may (1) delegate to a committee of one or more members of the Board who are not Outside Directors the authority to grant
Option Awards to eligible persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at
the time of recognition of income resulting from such Option Award or (b) not persons with respect to whom the Company wishes to
comply with Section 162(m) of the Code and/or (2) delegate to a committee of one or more members of the Board who are not Non-Employee
Directors the authority to grant Option Awards to eligible persons who are not then subject to Section 16 of the Exchange Act.
Nothing herein shall create an inference that an Option Award is not validly granted under the Plan in the event Option Awards
are granted under the Plan by a compensation committee of the Board that does not at all times consist solely of two or more Non-Employee
Directors who are also Outside Directors.


 






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4.                 
Shares Subject to the Plan.


 


(a)               Share
Reserve. Subject to the provisions of Section 10 relating to adjustments upon changes in Common Stock, the Common Stock
that may be issued pursuant to Option Awards shall not exceed in the aggregate of 2,860,000 shares of Common
Stock. During the terms of the Option Awards, the Company shall keep available at all times the number of shares of Common
Stock required to satisfy such Awards.


 


(b)              
Reversion of Shares to the Share Reserve. If any Option Award shall for any reason expire or otherwise terminate, in
whole or in part, without having been exercised in full, the shares of Common Stock not acquired under such Option Award shall
revert to the Plan and again become available for issuance under the Plan. Notwithstanding anything to the contrary contained herein,
shares subject to an Option Award under the Plan shall not again be made available for issuance or delivery under the Plan if such
shares are (a) shares tendered in payment of an Option, (b) shares delivered or withheld by the Company to satisfy any tax withholding
obligation, or (c) shares covered by any other Option Awards that were not issued upon the settlement of the Award.


 


(c)               
Source of Shares. The shares of Common Stock subject to the Plan may be, in whole or in part, authorized and unissued
shares, treasury shares or shares reacquired by the Company in any manner.


 


(d)              
Subject to adjustment in accordance with Section 10,
no Participant shall be granted, during any one (1) year period, Options to purchase Common Stock with respect to more than 2,860,000
shares of Common Stock in the aggregate or any other Option Awards with respect to more than 2,860,000 shares of Common
Stock in the aggregate. If an Option Award is to be settled in cash, the number of shares of Common Stock on which the Option Award
is based shall count toward the individual share limit set forth in this Section 4.


 


(e)               
Any shares of Common Stock subject to an Option Award that is canceled, forfeited or expires prior to exercise or realization,
either in full or in part, shall again become available for issuance under the Plan.


 


5.                 
Eligibility.


 


(a)              
Eligibility for Specific Option Awards. Incentive Stock Options may be granted only to Employees. Options Awards other
than Incentive Stock Options may be granted to Employees, Directors and Consultants.


 


(b)              
Ten Percent Stockholders.


 


(i)                
A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is
at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not
exercisable after the expiration of five (5) years from the date of grant.


 






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(ii)              
Prior to the Listing Date, a Ten Percent Stockholder shall not be granted a Nonstatutory Stock Option unless the exercise
price of such Option is at least (i) one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of
grant.


 


(c)               
Consultants.


 


(i)                
Prior to the Listing Date, a Consultant shall not be eligible for the grant of an Option Award if, at the time of grant,
either the offer or the sale of the Company’s securities to such Consultant is not exempt under Rule 701 of the Securities
Act (“Rule 701”) because of the nature of the services that the Consultant is providing to the Company,
or because the Consultant is not a natural person, or as otherwise provided by Rule 701, unless the Company determines that such
grant need not comply with the requirements of Rule 701 and will satisfy another exemption under the Securities Act as well as
comply with the securities laws of all other relevant jurisdictions.


 


(ii)               From and
after the Listing Date, a Consultant shall not be eligible for the grant of an Option Award if, at the time of grant, a Form S-8
Registration Statement under the Securities Act (“Form S-8”) is not available to register either the
offer or the sale of the Company’s securities to such Consultant because of the nature of the services that the Consultant
is providing to the Company, or because the Consultant is not a natural person, or as otherwise provided by the rules governing
the use of Form S-8, unless the Company determines both (i) that such grant (A) shall be registered in another manner under the
Securities Act (e.g., on a Form S-3 Registration Statement) or (B) does not require registration under the Securities Act
in order to comply with the requirements of the Securities Act, if applicable, and (ii) that such grant complies with the securities
laws of all other relevant jurisdictions.


 


(iii)              As of
April 7, 1999, Rule 701 and Form S-8 generally are available to consultants and advisors only if (i) they are natural persons;
(ii) they provide bona fide services to the issuer, its parents, its majority-owned subsidiaries or majority-owned subsidiaries
of the issuer’s parent; and (iii) the services are not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for the issuer’s securities.


 


6.                 
Option Provisions.


 


Each Option shall be
in such form and shall contain such terms and conditions as the Board shall deem appropriate and set forth in the Option Agreement
approved by the Board. All Options shall be separately designated as Incentive Stock Options or Nonstatutory Stock Options of U.S.
Participants or 3(i) Option and Options granted under Section 102 of the Ordinance (as defined under the applicable Sub Plan) for
Israeli Participants at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued
for shares of Common Stock purchased on exercise of each type of Option. No Option shall be treated as an Incentive Stock Option
unless this Plan has been approved by the stockholders of the Company in a manner intended to comply with the stockholder approval
requirements of Section 422(b)(1) of the Code, provided that any Option intended to be an Incentive Stock Option shall not
fail to be effective solely on account of a failure to obtain such approval, but rather such Option shall be treated as a Nonstatutory
Stock Option unless and until such approval is obtained. The provisions of separate Options need not be identical, but each Option
shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the
following provisions:


 






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(a)              
Procedure for Exercise. An Option shall be deemed exercised when the Company receives (i) written or
electronic notice of exercise in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the shares with respect to which the Option is exercised, together with any applicable withholding taxes. Full payment
may consist of any consideration and method of payment authorized by the Board and permitted by the Option Agreement and the Plan.
The exercise price shall be denominated in the currency of the primary economic environment of, either the Company or the participant
(that is the functional currency of the Company or the currency in which the Participant is paid) as determined by the Company.


 


(b)              
Until an IPO, shares issued upon the exercise of Option shall be voted by an irrevocable proxy (attached to the Option
Agreement) (the “Proxy”) pursuant to the directions of the Board, such Proxy to be assigned to representatives
designated by Board (the “Representatives”). Such Representatives 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 the Proxy unless arising out of such Representative’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 Representative(s) may have as
a director or otherwise under the Company’s Certificate of Incorporation and By-Laws, any agreement, any vote of shareholders
or disinterested directors, insurance policy or otherwise.


 


(c)               
Term. Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, no Option shall be exercisable
after the expiration of ten (10) years from the date it was granted, or the date set forth at the Option Agreement, as earlier.


 


(d)              
Exercise Price of an Incentive Stock Option. Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders,
the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of
the Common Stock subject to the Option on the date the Option is granted or such other amount as may be required pursuant to the
Code. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than that set forth
in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying
the provisions of Section 424(a) of the Code.


 


(e)               
Exercise Price of a Nonstatutory Stock Option. Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders,
the exercise price of each Nonstatutory Stock Option granted prior to the Listing Date shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted or such other amount
as may be required pursuant to the Code. The exercise price of each Nonstatutory Stock Option granted on or after the Listing Date
shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date
the Option is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than
that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option
in a manner satisfying the provisions of Section 424(a) of the Code.


 






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(f)               
Consideration. The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted
by applicable statutes and regulations, either (i) in cash and/ or check at the time the Option is exercised or (ii) at the discretion
of the Board at the time of the grant of the Option (or subsequently in the case of a Nonstatutory Stock Option) (1) by delivery
to the Company of other Common Stock, or (2) in any other form of legal consideration that may be acceptable to the Board. The
Board shall have the authority to postpone the date of payment on such terms as it may determine.


 


(g)              
Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or
by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the
Option.


 


(h)              
Transferability of a Nonstatutory Stock Option. A Nonstatutory Stock Option granted prior to the Listing Date shall
not be transferable except by will or by the laws of descent and distribution and, to the extent provided in the Option Agreement,
and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. A Nonstatutory Stock Option granted
on or after the Listing Date shall be transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option
does not provide for transferability, then the Nonstatutory Stock Option shall not be transferable except by will or by the laws
of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding
the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option


 


(i)                
Vesting Generally. The total number of shares of Common Stock subject to an Option may, but need not, vest and therefore
become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and
conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary.


 


(j)                
Termination of Continuous Service. In the event an Optionholder’s Continuous Service terminates (other than upon
the Optionholder’s death or Disability), and unless otherwise specified in the applicable Option Agreement, the Optionholder
may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination)
but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s
Continuous Service (or such shorter period specified in the Option Agreement or such different period as the Board may prescribe,
which period shall not be less than thirty (30) days for Options granted prior to the Listing Date unless such termination is for
Cause), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder
does not exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate.


 






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(k)               Extension
of Termination Date. An Optionholder’s Option Agreement may also provide that if the exercise of the Option
following the termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s death or
Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the
registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of
the term of the Option set forth in subsection 6(c) or (ii) the expiration of a period of three (3) months after the
termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation
of such registration requirements.


 


(l)                
Disability of Optionholder. Unless otherwise provided in its Option Agreement, in the event that an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option
(to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such
period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such shorter period specified
in the Option Agreement which period shall not be less than six (6) months for Options granted prior to the Listing Date or such
longer period as specified in the Option Agreement and approved by the Board) or (ii) the expiration of the term of the Option
as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time
specified herein, the Option shall terminate.


 


(m)            
Death of Optionholder. Unless otherwise provided in its Option Agreement, in the event (i) an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the period (if
any) specified in the Option Agreement after the termination of the Optionholder’s Continuous Service, then the Option may
be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s
estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise
the option upon the Optionholder’s death pursuant to subsection 6(g) or 6(h), but only within the period ending on the earlier
of (1) the date Twelve (12) months following the date of death (or such shorter period specified in the Option Agreement which
period shall not be less than six (6) months for Options granted prior to the Listing Date as specified in the Option Agreement
and approved by the Board) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death,
the Option is not exercised within the time specified herein, the Option shall terminate.


 






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(n)              
Termination of Continuous Service for Cause. Notwithstanding Sections (j)-(m) above, in the event of termination of
Participant’s employment with the Company or any of its Affiliates, or if applicable, the termination of services given to
the Company or any of its Affiliates by Consultants of the Company or any of its Affiliates for Cause (as defined above), all outstanding
Option Awards granted to such Participant (whether vested or not) will immediately expire and terminate on the date of such termination
and the holder of Option Awards shall not have any right in connection to such outstanding Option Awards, unless otherwise determined
by the Board. The Shares of Common Stock covered by such Option Awards shall revert to the Plan.


 


(o)              
Compliance With Laws, etc. Notwithstanding the foregoing, following the Listing Date, in no event shall a Participant
be permitted to exercise an Option in a manner that the Committee determines would violate the Sarbanes-Oxley Act of 2002, if applicable,
or any other applicable law or the applicable rules and regulations of the Securities and Exchange Commission or the applicable
rules and regulations of any securities exchange, inter-dealer quotation system or other recognized securities quotation system
on which the securities of the Company are listed, quoted or traded.


 


7.                 
Covenants of the Company.


 


(a)              
Availability of Shares. During the terms of the Option Awards, the Company shall keep available at all times the number
of authorized shares of Common Stock required to satisfy such Option Awards.


 


(b)              
Securities Law Compliance. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction
over the Plan such authority as may be required to grant Option Awards and to issue and sell shares of Common Stock upon exercise
of the Option Awards; provided, however, that this undertaking shall not require the Company to register under the Plan, any Option
Award or any Common Stock issued or issuable pursuant to any such Option Award under the Securities Act. If, after reasonable efforts,
the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems
necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for
failure to issue and sell Common Stock upon exercise of such Option Awards unless and until such authority is obtained.


 


8.                 
Use of Proceeds from Stock.


 


Proceeds from the sale
of Common Stock pursuant to Option Awards shall constitute general funds of the Company.


 


9.                 
Miscellaneous.


 


(a)              
Acceleration of Exercisability and Vesting. Subject to applicable law, the Board in its sole discretion shall have the
power to accelerate the time at which a certain Option Award may first be exercised or the time during which a Option Award or
any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Option Award stating the time at
which it may first be exercised or the time during which it will vest.


 






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(b)              
Stockholder Rights. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares of Common Stock subject to such Option Award unless and until such Participant has satisfied all requirements
for exercise of the Option Award pursuant to its terms.


 


(c)               
No Employment or other Service Rights. Nothing in the Plan or any instrument executed or Option Award granted pursuant
thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect
at the time the Option Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment
of an Employee with or without notice and with or without Cause, (ii) the service of a Consultant pursuant to the terms of such
Consultant’s agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate
is incorporated, as the case may be.


 


(d)              
Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time
of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder
during any calendar year (under all plans of the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory
Stock Options.


 


(e)               
Investment Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Stock
under any Option Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and
experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company
who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together
with the purchaser representative, the merits and risks of exercising the Option Award; and (ii) to give written assurances satisfactory
to the Company stating that the Participant is acquiring Common Stock subject to the Option Award for the Participant’s own
account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and
any assurances given pursuant to such requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon
the exercise or acquisition of Common Stock under the Option Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular requirement, a determination is made by counsel for the Company
that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice
of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate
in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common
Stock.


 






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(f)               
Withholding Obligations. The Company or any Subsidiary or Affiliate may take such action as it may deem necessary or
appropriate, in its discretion, for the purpose of or in connection with withholding of any taxes which the Company or any Subsidiary
or Affiliate is required by any applicable law to withhold in connection with any Option Awards (collectively, “Withholding
Obligations”). Such actions may include, without limitation, (i) requiring a Participant to remit to the Company
in cash an amount sufficient to satisfy such Withholding Obligations; (ii) subject to applicable law, allowing the Participant
to provide shares of Common Stock to the Company, in an amount that at such time, reflects a value that the Board determines to
be sufficient to satisfy such Withholding Obligations; (iii) withholding shares of Common Stock otherwise issuable upon the exercise
of an Option Award at a value which is determined by the Board to be sufficient to satisfy such Withholding Obligations; or (iv)
any combination of the foregoing. The Company shall not be obligated to allow the exercise of any Option Award by or on behalf
of a Participant until all tax consequences arising from the exercise of such Option Award are resolved in a manner acceptable
to the Company.


 


10.             
Adjustment upon Changes in Stock.


 


(a)              
Capitalization Adjustments. If any change is made in the Common Stock generally or the Common Stock subject to the
Plan, or the Common Stock subject to any Option Award, without the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt
of consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject
to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to any person pursuant to subsection
5(c), and the outstanding Option Awards will be appropriately adjusted in the class(es) and number of securities and price per
share of Common Stock subject to such outstanding Option Awards. The Board shall make such adjustments, and its determination
shall be final, binding and conclusive. (For this purpose, the conversion of any convertible securities of the Company shall not
be treated as a transaction “without receipt of consideration” by the Company.)


 


(b)              
Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company, then the Company shall immediately
notify Participant who hold outstanding Option Awards of such dissolution or liquidation, and such Participant shall have
thirty (30) days to exercise any outstanding vested options held by him at that time. Upon the expiration of such thirty days period,
all remaining outstanding options shall terminate immediately.


 


(c)               
Change in Control. In the event of a Change in Control, then, without the consent or action required of any holder of
an Option Award (in such holder’s capacity as such):


 


(i)                
Any surviving corporation or acquiring corporation or any parent or affiliate thereof, as determined by the Board in
its discretion, shall assume or continue any Option Awards outstanding under the Plan in all or in part or shall substitute to
similar stock awards in all or in part; or


 






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(ii)              
In the event any surviving corporation or acquiring corporation does not assume or continue any Option Awards or substitute
to similar stock awards, for those outstanding under the Plan, then: (a) all unvested Option Awards shall expire (b) vested options
shall terminate if not exercised at or prior to such Change in Control; or


 


(iii)            
Upon Change in Control the Board may, in its sole discretion, accelerate the vesting, partially or in full, in the sole
discretion of the Board and on a case-by-case basis of one or more Option Awards as the Board may determine to be appropriate prior
to such events.


 


(d)              
Notwithstanding the above, in case of Change in Control, in the event all or substantially all of the shares of the
Company are to be exchanged for securities of another Company, then each holder of an Option Award shall be obliged to sell or
exchange, as the case may be, any shares such holder hold or purchased under the Plan, in accordance with the instructions issued
by the Board, whose determination shall be final.


 


(e)               
Each holder of an Option Award acknowledges that in the event that the Company’s shares shall be listed, quoted
or registered for trading in any public market, the rights of such holder to sell the shares may be subject to certain limitations
(including a lock-up period), as may be requested by the Company or its underwriters, and the holder of such Option Award unconditionally
agrees and accepts any such limitations.


 


(f) Notwithstanding
the above said, the Board may, in its sole discretion, decide other terms regarding the treatment of the outstanding Option Awards,
in case of Change in Control and/or in case of IPO.


 


11.             
Shares subject to right of first refusal. 


 


(a)              
Notwithstanding anything to the contrary in the Certificate of Incorporation and the By-Laws of the Company, none of
the Optionholders shall have a right of first refusal or preemptive right in relation with any sale of shares in the Company.


 


(b)              
Sale of shares of Common Stock by the Participant shall be subject to the right of first refusal of other shareholders
as set forth in the Certificate of Incorporation and/or the By-Laws of the Company.


 


(c)               
Prior to an IPO, and in addition to the right of first refusal, any transfer of shares of Common Stock of the Company
by a Participant shall require the approval of the Board as to the transferee. The Board may refuse to approve the transfer of
shares of Common Stock to any competitor of the Company or to any other person or entity the Board determines, in its discretion,
may be detrimental to the Company.


 


(d)              
Notwithstanding anything to the contrary unless otherwise determined by the Board, until such time as the Company shall
complete an IPO, a Participant shall not have the right to sell Common Stock unless otherwise determined by the Board.


 






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12.             
Amendment of the Plan and Option Awards.


 


(a)              
Amendment of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided in
Section 11 relating to adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the stockholders
of the Company to the extent stockholder approval is necessary to satisfy the requirements of Section 422 of the Code or any other
applicable laws, rules and regulations.


 


(b)              
Stockholder Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder
approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code
and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility
of compensation paid to certain executive officers.


 


(c)               
Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems
necessary or advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions
of the Code and the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance therewith.


 


(d)              
No Impairment of Rights. Rights under any Option Award granted before amendment of the Plan shall not be impaired by
any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing.


 


(e)               
Amendment of Option Awards. The Board at any time, and from time to time, may amend the terms of any one or more Option
Awards; provided, however, that the rights under any Option Award shall not be impaired by any such amendment unless (i) the Company
requests the consent of the Participant and (ii) the Participant consents in writing (such consent to not be unreasonably withheld
or delayed). 


 


13.             
Termination or Suspension of the Plan.


 


(a)              
Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate
on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board or approved by the stockholders of
the Company, whichever is earlier. No Option Awards may be granted under the Plan while the Plan is suspended or after it is terminated.


 


(b)              
No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Option
Award granted while the Plan is in effect except with the written consent of the Participant.


 


14.             
Tax Consequences


 


(a)Any
tax consequences arising from the grant or exercise of any Option, from the payment for Common Stock covered thereby or from any
other event or act (of the Company and/or its Affiliates, or the Participant), hereunder, shall be borne solely by the Participant.
The Company and/or its Affiliates shall withhold taxes according to the requirements under the applicable laws, rules, and regulations,
including withholding taxes at source. Furthermore, the Participant shall agree to indemnify the Company and/or its Affiliates
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 Participant.


 






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(b)The
Company shall not be required to release any share certificate to a Participant until all required payments have been fully made.


 


15.             
Notice To Company Of Disqualifying Disposition


 


Without derogating
from all of the above, each Employee who receives an Incentive Stock Option must agree to notify the Company in writing immediately
after the Employee makes a Disqualifying Disposition of any Common Stock acquired upon the exercise of an Incentive Stock Option.
A “Disqualifying Disposition” is any disposition (including any sale) of such Common Stock before the
later of (a) two (2) years after the date the Employee was granted the Incentive Stock Option, or (b) one (1) year after the date
the Employee acquired Common Stock by exercising the Incentive Stock Option. If the Employee has died before such Share is sold,
these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.


 


16.             
Effective Date of Plan.


 


The Plan shall take
effect upon its adoption by the Board (the “Effective Date”), except that solely with respect to grants
of Incentive Stock Options the Plan shall also be subject to approval within one year of the Effective Date, by a majority of the
votes cast on the proposal at a meeting or a written consent of shareholders. Failure to obtain approval by the shareholders shall
not in any way derogate from the valid and binding effect of any grant of an Option Award, which is not an Incentive Stock Option.
Upon approval of the Plan by the shareholders of the Company as set forth above, all Incentive Stock Options granted under the
Plan on or after the Effective Date shall be fully effective as if the shareholders of the Company had approved the Plan on the
Effective Date. Notwithstanding the foregoing, in the event that approval of the Plan by the shareholders of the Company is required
under applicable law, in connection with the application of certain tax treatment or pursuant to applicable stock exchange rules
or regulations or otherwise, such approval shall be obtained within the time required under the applicable law.


 


17.             
Choice of Law.


 


(i)                
Choice of Law. This Plan, all Option Awards and all documents evidencing awards and all other related documents will
be governed by, and construed in accordance with, the laws of the State of Delaware, provided that the tax treatment and
the tax rules and regulations applying to a grant in any specific jurisdiction shall be the local tax laws of such jurisdiction
in addition to the Federal income tax laws of the United States.


 






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(ii)              
Israeli Participants. Any grant of an Option Award to an Israeli Employee or to an Israeli Non-Employee (as each of
such terms is defined in the Sub Plan applicable to Israeli Participants) shall be made in accordance with and pursuant to the
provisions of this Plan and the Sub Plan applicable to Israeli Participants.


 


(iii)            
Severability. If it is determined that any provision of this Plan or an Option Agreement is invalid and unenforceable,
the remaining provisions of this Plan and/or the Option Agreement, as applicable, will continue in effect.


 


 


 


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