Document:

EXHIBIT
4.3

 

RADA
ELECTRONIC INDUSTRIES LTD.

(the
“Company”)

 

2015
SHARE OPTION PLAN (the “Plan”)

 

1.
PURPOSES OF THE PLAN

 

The
purposes of this Plan are to give the Company an additional tool to attract and retain the best available personnel for positions
of substantial responsibility, to provide additional incentive to Employees and Directors and to promote the success of the Company
(all as defined in Section 3 below).

 

2.
TYPES OF AWARDS

 

The
Plan is intended to enable the Company to issue Awards (as defined in Section 3 below) subject to Applicable Laws (as defined
in Section 3 below), under varying tax regimes including without limitation (i) Share Options without a Trustee (as defined in
Section 3) pursuant and subject to the provisions of Section 102 of the Israeli Income Tax Ordinance (New Version) 1961 as amended
(the “Ordinance”), and any regulations, rules, orders or procedures promulgated thereunder including tax rules
(Preferential Tax Treatment regarding Issuance of Shares to Employees, 2003) (“Section 102”) (such options,
“Non Trustee 102 Share Options”); (ii) Share Options allocated to a Trustee under the capital gain track pursuant
and subject to the provisions of Section 102 of the Ordinance (such options, “102 Capital Gain Share Options”);
(iii) Share Options allocated to a Trustee under the ordinary income track pursuant and subject to the provisions of Section 102
(such options, “102 Ordinary Income Share Options”); (iv) Share Options pursuant to Section 3(9) of the Ordinance
(“3(9) Share Options”);. All Non Trustee 102 Share Options, 102 Capital Gain Share Options, 102 Ordinary Income
Share Options, 3(9) Share Options, as well as options issued under other tax regimes, are each referred to herein as an “Option”,
and collectively the “Options”. Apart from issuance under the relevant tax regimes in the State of Israel the
Plan contemplates issuances to Grantees (as defined in Section 3 below) in other jurisdictions with respect to which the Administrator
(as defined in Section 3 below) is empowered to make the requisite adjustments in the Plan and set forth the relevant conditions
in the Company’s agreement with the Grantee in order to comply with the requirements of the tax regimes in said jurisdictions.

 

The
Plan contemplates the issuance of Awards by the Company, both as a private company and as a publicly traded company.

 

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3.
DEFINITIONS

 

For
the purposes of this Plan, as defined below, the following terms shall have the following meanings:

 

	 	(a)	“Administrator”
    means the Board or any of its Committees as shall be appointed by the Board to administer the Plan, in accordance with Section
    5 hereof.
	 	 	 
	 	(b)	“Adoption
    Date” means the earlier of the date on which the Board adopted this Plan and the date the Plan was approved
    by the Company’s shareholders, if such approval is necessary under the Applicable Laws (as defined below).
	 	 	 
	 	(c)	 “Applicable
    Laws” means the legal requirements relating to the adoption of and/or the administration of share option plans,
    including under all applicable laws, rules, and regulations of the State of Israel; the rules and regulations of any stock
    exchange or quotation system on which the Ordinary Share is listed or quoted and the By-Laws of the Company, all as may be
    in effect from time to time
	 	 	 
	 	(d)	“Award”
    shall mean any Option granted to a Grantee under the Plan.
	 	 	 
	 	(e)	“Award
    Agreement” means a written agreement between the Company and a Grantee evidencing the terms and conditions of
    an individual Award grant, as further specified in Section 7.
	 	 	 
	 	(f)	“Award
    Share” means the Share/s subject to an Award.
	 	 	 
	 	(g)	 “Board”
    means the Board of Directors of the Company.
	 	 	 
	 	(h)	 “By-Laws”
    means the by-laws of the Company as amended from time to time and all shareholders rights agreements entered or to be entered
    into by the Company and its Shareholders, or among the Shareholders themselves.
	 	 	 
	 	(i)	“Cause”
    for termination of a Grantee’s Continuous Service Status shall be considered to exist if such termination is for any
    of the following reasons: (i) any action by a Grantee involving willful malfeasance or a willful breach of such Grantee’s
    fiduciary duties in connection with such Grantee’s employment or engagement with the Company or with any Subsidiary;
    (ii) the conviction of a Grantee in a court of law of, or a guilty plea by the Grantee to, a felony or a fraud or any other
    similar act; (iii) substantial and continuing refusal or neglect by a Grantee to perform the duties requested of him or her
    (including without limitation, not abiding policies relating to confidentiality and reasonable workplace conduct) provided
    such duties are expected to be performed by a person engaged for a similar capacity (other than as a result of death, illness
    or other objective incapacity) which refusal or neglect continues for a period of ten days after written notice thereof is
    provided to the Grantee from the Company or from the respective Subsidiary; (iv) an act of moral turpitude, or any similar
    act, to the extent that such act causes or may cause injury to the reputation of the Company and/or to any of the Company’s
    Subsidiaries; (v) unauthorized use or disclosure by Grantee of any proprietary information or trade secrets of the Company
    or any other party to whom the Grantee owes an obligation of nondisclosure as a result of his or her relationship with the
    Company; (vi) any other act or omission which, in the reasonable opinion of the Company, could materially financially harm
    the Company and/or any of the Company’s Subsidiaries or harm the business reputation of the Company and/or any of the
    Company’s Subsidiaries; (vii) any other circumstance deemed by law to constitute termination for cause, including circumstances
    relieving an employer from the duty to pay severance pay to the Grantee; or (viii) termination of a Grantee’s employment
    for cause in accordance with provisions of his or her employment agreement or engagement, if any, with the Company. The determination
    as to whether a Grantee is being terminated for Cause shall be made in good faith by the Company and shall be final and binding
    on the Grantee. The foregoing definition does not in any way limit the Company’s ability to terminate a Grantee’s
    employment or consulting relationship at any time as provided in Section 6(f) below, and the term “Company” will
    be interpreted to include any Subsidiary as appropriate.

 

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	 	(j)	“Committee”
    means a committee or subcommittee of directors appointed by the Board in accordance with Section 5 hereof.
	 	 	 
	 	(k)	“Company”
    means RADA ELECTRONIC INDUSTRIES LTD.
	 	 	 
	 	(l)	“Director”
    means any Director of the company who is a member of the Board at the relevant time.
	 	 	 
	 	(m)	“Continuous
    Service Status” means the absence of any interruption or termination of service as an Employee. Continuous Service
    Status as an Employee shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other
    leave of absence approved by the Administrator, provided that such leave is for a period of not more than ninety (90) days,
    unless reemployment upon the expiration of such leave is guaranteed by contract or statute, in which case such leave shall
    not interrupt the Continuous Service Status despite its exceeding ninety (90) days, unless provided otherwise under law or
    Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the
    Company, Subsidiaries and/or their respective successors.
	 	 	 
	 	(n)	“Disability”
    is defined in Section 10(f).
	 	 	 
	 	(o)	“Effective
    Date” means the date on which the Award Agreement is signed by the Company and the Grantee. The “Effective
    Date” of Trustee Share Options shall be the date on which such Options are allocated to the Trustee.
	 	 	 
	 	(p)	“Employee”
    means any person employed by the Company or any person, including an advisor, who is engaged by the Company to render consulting
    or advisory services to such entity and is compensated for such services or any person who is engaged as an officer of the
    Company , and with regard to Trustee Share Options and Non Trustee 102 Share Options only, provided that he is not a “controlling
    party”, as defined in section 32(9) of the Ordinance, prior to and after the issuance of the Awards. For purposes of
    Section 102, a director of a company is considered an Employee thereof.

 

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	 	(q)	“Exercise
    Date” means a date on which the Grantee delivers to the Company a written notice of exercise, in accordance
    with Section 10 of this Plan.
	 	 	 
	 	(r)	“Exercise
    Period” is defined in Section 7(d).
	 	 	 
	 	(s)	“Exercise
    Price” means the amount stipulated in the Award Agreement, to be paid by the Grantee to the Company in order
    to exercise an Award into an Award Share of the Company.
	 	 	 
	 	(t)	“Fair
    Market Value Per Share” or “Fair Market Value” of a share as of a particular date shall mean
    (i) the closing sales price per Share on the securities exchange on which the Shares were principally traded for the last
    preceding date on which there was a sale of such Shares on such exchange; (ii) if the Shares are listed on the Nasdaq National
    Market, the last reported price per Share on the Nasdaq National Market on the last preceding date on which there was a sale
    of such Shares on the Nasdaq National Market;
	 	 	 
	 	(u)	“Grantee”
    means the holder of an outstanding Award granted under the Plan.
	 	 	 
	 	(v)	“Initial
    Public Offering” means the initial public offering of shares of the Company.
	 	 	 
	 	(w)	 “Lock-Up
    Period” is defined in Section 12(c).
	 	 	 
	 	(x)	“Merger
    or Acquisition” shall mean (A) the acquisition of the Company by another entity by means of any transaction
    or series of related transactions (including, without limitation, any reorganization, merger or consolidation); (B) a sale
    of all or substantially all of the assets of the Company (including, for purposes of this Section, intellectual property rights
    if, in the aggregate, such rights constitute substantially all of the Company’s material assets); unless in each case,
    the Company’s shareholders of record as constituted immediately prior to such acquisition or sale will, immediately
    after such acquisition or sale (by virtue of securities issued as consideration for the Company’s acquisition or sale
    or otherwise) hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity; or (C) more than
    fifty percent (50%) of the voting power of the Company is transferred to an unrelated third party pursuant to a transaction
    or series of related transactions; provided, however, that the issuance of equity securities solely for capital raising purposes
    shall not be deemed to be a “Merger or Acquisition.”
	 	 	 
	 	(y)	 “Ordinary
    Share” means an ordinary share of the Company.
	 	 	 
	 	(z)	“Plan”
    means this RADA ELECTRONIC INDUSTRIES LTD 2015 Share Option Plan.
	 	 	 
	 	(aa)	“Purchaser”
    means the Company (if and as permitted by law) and/or any of its Subsidiaries and/or another person or entity designated for
    this purpose by the Company.

 

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	 	(bb)	“Participant”
    means (i) an Employee or (ii) a Director.
	 	 	 
	 	(cc)	“Share”
    means a share of the Company’s ordinary shares having a par value of NIS 0.015.
	 	 	 
	 	(dd)	“Tax
    Event” is defined in Section 21.
	 	 	 
	 	(ee)	“Ten
    Percent Shareholder” means a person who owns shares possessing more than ten percent (10%) of the total combined
    voting power of all classes of shares of the Company or its parent or any Subsidiary corporation.
	 	 	 
	 	(ff)	 “Trustee”
    means an entity appointed by the Board and approved by the Income Tax Officer to hold Trustee Share Options on behalf of the
    Grantee according to the conditions set forth in Section 102.
	 	 	 
	 	(gg)	“Trustee
    Share Options” means all 102 Capital Gain Share Options and 102 Ordinary Income Share Options.
	 	 	 
	 	(hh)	“Vesting
    Schedule” is defined in Section 7(d).

 

4.
AUTHORIZED SHARES

 

	 	(a)	Awards
    may be granted under the Plan, subject to the provisions of this plan, for up to an aggregate of 3,000,000 Award Shares. The
    Award Shares may be authorized, but unissued, or reacquired Ordinary Shares. The Awards may be granted at any time, prior
    to the expiration of the Plan according to Section 8(a).
	 	 	 
	 	(b)	In
    case of Trustee Share Options, such Trustee Options may be granted after the passage of thirty days (or a shorter period as
    and if approved by the tax authorities) following the delivery by the Company to the appropriate Israeli Income Tax Authorities
    of a request for approval of the Plan and the Trustee according to Section 102.
	 	 	 
	 	(c)	Notwithstanding
    the above, in case that within 90 days of delivery of the abovementioned request, the tax officer notifies the Company of
    its decision not to approve the Plan, the Awards that were intended to be granted as Trustee Share Options shall be deemed
    as Non Trustee 102 Share Options, unless otherwise instructed by the tax officer.
	 	 	 
	 	(d)	If
    an Award expires, is cancelled or otherwise becomes unexercisable without having been exercised in full, the unexercised,
    canceled or terminated Award Shares which were subject thereto shall (unless the Plan shall have been terminated) become available
    for future grant under the Plan. In addition, any shares of Ordinary Shares which are retained by the Company upon exercise
    of an award in order to satisfy the exercise or purchase price for such award or any withholding taxes due with respect to
    such exercise or purchase shall be treated as not issued and shall continue to be available under the Plan. Shares issued
    under the Plan and later repurchased by the Company pursuant to any repurchase right which the Company may have shall be available
    for future grant under the Plan.
	 	 	 
	 	(e)	The
    number of Shares that are subject to Awards under the Plan shall not exceed the number of Shares reserved for the grant of
    Awards that then remain available for issuance under the Plan.

 

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5.
ADMINISTRATION

 

	 	(a)	Procedure.
    The Plan shall be administered by the Board or a Committee appointed by the Board, which Committee shall be constituted to
    comply with Applicable Laws. The Administrator will hold its meetings at such times and places as it may determine and will
    maintain written minutes of its meetings. This Plan may be administered by different Administrators with respect to different
    classes of Grantees and, if permitted by Applicable Laws, the Board may authorize one or more officers to make awards under
    this Plan.
	 	 	 
	 	(b)	Powers
    of the Administrator. Subject to the terms and conditions of the Plan, and in the case of a Committee, the specific duties
    delegated by the Board to such Committee, and subject to the approval of any relevant authorities and Applicable Laws, the
    Administrator shall have the authority, in its discretion:

 

	 	(i)	to
    determine the Fair Market Value of the Ordinary Shares, in accordance with Section 3 hereof, provided that such determination
    shall be applied consistently with respect to Grantees under the Plan;
	 	 	 
	 	(ii)	to
    select the Participants to whom Awards may from time to time be granted hereunder, and to grant said Participants the Awards,
    provided that this authority shall be granted solely to the Board, which will take into consideration the recommendation of
    the Committee;
	 	 	 
	 	(iii)	to
    determine from time to time the type of Awards to be granted to eligible Participants under the Plan, including the determination
    of which Grantees and which Employees will receive Non Trustee 102 Share Options and which Employees will receive 102 Capital
    Gain Share Options and/or 102 Ordinary Income Share Options, and to prescribe the terms and conditions (which need not be
    identical) of Awards granted under the Plan to such persons;
	 	 	 
	 	(iv)	to
    approve forms of the Award Agreements for use under the Plan;
	 	 	 
	 	(v)	to
    determine the terms and conditions of any Award granted hereunder, including, without limitation, the Vesting Schedule and
    whether and under what circumstances an Option may be settled in cash instead of Ordinary Shares;
	 	 	 
	 	(vi)	to
    exercise such powers and to perform such acts as are deemed necessary or expedient to promote the best interests of the Company
    with respect to the Plan, including but not limited to prescribing, amending, and rescinding any provisions related to the
    Plan;

 

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	 	(vii)	to
    amend any outstanding Award, subject to Section 16 hereof, and to accelerate the Vesting Schedule or extend the exercisability
    of any Award and, subject to Section 102, to waive conditions or restrictions on any Award, to the extent it shall deem appropriate
    provided that this authority shall be granted to the Board, and only subject to its prior approval to the Committee which
    approval shall specifically state the number and identity of Grantees which rights the Committee will be authorized to determine;
	 	 	 
	 	(viii)	to
    allow Grantees to satisfy withholding tax obligations by electing to have the Company or the Trustee, if permitted under Applicable
    Laws, withhold from the Award Shares to be issued upon exercise of an Award that number of Award Shares having a value equal
    to the minimum statutory withholding amount. The value of the Award Shares to be withheld shall be determined on the date
    that the amount of tax to be withheld is to be determined. All elections by Grantees to have Award Shares withheld for this
    purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable and after
    consultation with the Company’s counsel; and
	 	 	 
	 	(ix)	to
    construe and interpret the terms of the Plan, the Award Agreements and the Awards.

 

	 	(c)	Effect
    of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be final
    and binding on all Grantees. Each member of the Board and the Committee shall be indemnified and held harmless by the Company
    against any cost or expense (including fees of counsel) reasonably incurred by her or him, or 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 Plan unless arising out of such member’s own fraud or bad faith, to the extent permitted by Applicable Laws. Such
    indemnification shall be in addition to any rights of indemnification the member may have as director or otherwise under the
    Certificate of Incorporation of the Company, any agreement or otherwise.

 

6.
ELIGIBILITY

 

	 	(a)	General.
    Awards may be granted to Participants as defined in this Plan.
	 	 	 
	 	(b)	Non
    Trustee 102 Share Options and Trustee Share Options may be granted only to Israeli Employee Grantees and subject to the Ordinance.
	 	 	 
	 	(c)	3(9)
    Share Options may be granted only to Israeli Participants who are not Employees.
	 	 	 
	 	(d)	Continuing
    Relationship. The Plan and the Award Agreements shall not confer upon any Grantee any right with respect to continuing
    the Grantee’s relationship as a Participant with the Company or its Subsidiary, nor shall it interfere in any way with
    his right or the Company’s right, or the right of its Subsidiary, to terminate such relationship at any time, with or
    without Cause.

 

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7.
AWARD AGREEMENTS.

 

A
Participant will be entitled to an Award only if such Award is granted to the Participant by the Administrator and an Award Agreement
is signed between the Company and him/her. Subject to the terms and conditions of the Plan, each Award Agreement shall contain
provisions as the Administrator shall from time to time deem appropriate. Award Agreements need not be identical, but each Award
Agreement shall include, by appropriate language, the substance of the applicable provisions set forth herein, and any such provision
may be included in the Award Agreement by reference to the Plan. In the case of a conflict between the terms of any Award Agreement
and the Plan, the terms of the Plan shall govern in all cases.

 

	 	(a)	NUMBER
    OF SHARES. Each Award Agreement shall state the number of Award Shares to which the Award relates.
	 	 	 
	 	(b)	TYPE
    OF AWARD. Each Award Agreement shall specifically state the type of Awards granted thereunder and which of the following they
    constitute: Non Trustee 102 Share Options, 102 Capital Gain Share Options, 102 Ordinary Income Share Options, 3(9) Share Options.
	 	 	 
	 	(c)	EXERCISE
    PRICE. Each Award Agreement shall state the Exercise Price of the Award Shares to which the Award relates, provided that such
    exercise price is in compliance with the company compensation plan.
	 	 	 
	 	(d)	TERM
    AND VESTING OF OPTIONS. Each Award Agreement shall provide the schedule in which such Awards may be exercised (“Vesting
    Schedule”). The Vesting Schedule for the Award will be determined by the Administrator provided that (to the extent
    permitted under Applicable Law) the Administrator, in its absolute discretion, shall have the authority to accelerate the
    vesting of any outstanding Option at such time and under such circumstances as it, in its sole discretion, deems appropriate.
    Subject to the Vesting Schedule, Awards may be exercised into Award Shares during the ten (10) year period from the Adoption
    Date of the Plan unless otherwise determined by the Administrator (to the extent permitted under Applicable Law and this Plan)
    (the “Exercise Period”).
	 	 	 
	 	(e)	OTHER
    PROVISIONS. The Award Agreements evidencing Awards under the Plan shall contain such other terms and conditions not inconsistent
    with the Plan as the Administrator may determine.

 

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8.
TERM OF THE PLAN

 

The
Plan shall become effective upon the Adoption Date. The Plan shall continue in effect for a term of ten (10) years after the Adoption
Date, unless sooner terminated under Section 16 of the Plan.

 

	 	(a)	Expiration.
    Unless otherwise stated in the Award Agreement, each Award shall expire on the tenth (10) anniversary of the Adoption Date.
	 	 	 
	 	(b)	Exercise.
    The Awards granted will be exercisable into Award Shares of the Company according to the Vesting Schedule set forth in the
    Award Agreement and in this Plan.
	 	 	 
	 	(c)	Exercise
    Price. The Exercise Price per Award Share subject to each Award shall be determined by the Administrator, and shall be
    subject to Applicable Law and the company’s compensation plan.
	 	 	 
	 	(d)	Transfer.
    No Award granted hereunder shall be transferable by the Grantee other than by will or by the laws of descent and distribution.
    During the Grantee’s lifetime, Awards may be exercised only by the Grantee or his guardian or legal representative.
    Award Shares acquired upon exercise of the Awards shall be subject to such restrictions on transfer as are generally applicable
    to holders of Ordinary Shares of the Company in accordance with the Company’s By-Laws and Certificate of Incorporation.
    Without derogating from any other provision in this Plan, it is expressly clarified that no transfer of Award Shares shall
    become effective unless the Grantee has delivered to the Company a written notice thereof, together with a confirmation in
    writing by any transferee of the Award Shares that it is bound by all terms and conditions of this Plan and the Award Agreement.
    In case of transfer of the Award Shares after the death of the Grantee, the transfer shall become effective only after the
    transferee delivers such a written confirmation. Section 102 Awards and the holders thereof shall be subject to Section 102
    in the event the Awards are transferred to someone other than the original Grantee. Furthermore, Section 102 Awards cannot
    be pledged, borrowed against or made subject to a lien.

 

9.
CONDITIONS UPON ISSUANCE OF AWARD SHARES

 

	 	(a)	Legal
    Compliance. Award Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award, the
    method of payment and the issuance and delivery of such Award Shares complies with Applicable Laws and shall be subject to
    the approval of counsel of the Company with respect to such compliance.
	 	 	 
	 	(b)	Investment
    Representations. As a condition to the exercise of an Award, the Administrator may require the person exercising such
    Award to (1) represent and warrant at the time of any such exercise that the Award Shares are being purchased only for his
    own account and for investment purposes, and without any present intention to sell or distribute such Award Shares, as well
    as any other representation as recommended by Company counsel and approved by the Administrator, if, in the opinion of counsel
    for the Company, such a representation is in the best interests of the Company, and/or (2) execute a joinder to any existing
    agreement among the shareholders.

 

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10.
METHOD OF EXERCISE

 

	 	(a)	Delivery
    of Notice. Subject to the Vesting Schedule, and subject to the conditions determined by the Administrator as set forth
    in the applicable Award Agreement, any Award granted under the Plan may be exercised by the Grantee by delivering to the Company
    on any business day (prior to expiration of the Exercise Period) a written notice stating the number of Award Shares the Grantee
    then desires to purchase.
	 	 	 
	 	(b)	Procedure
    for Exercise; Rights as a Shareholder. Any Award granted hereunder shall be exercisable according to the terms of the
    Plan and at such times and under such conditions as determined by the Administrator and/or set forth in the Award Agreement.
    With respect to an Employee Grantee and unless the Administrator provides otherwise, vesting of Awards granted hereunder shall
    be tolled during any unpaid leave of absence other than such leave which according to the law does not impair employment continuity.
	 	 	 
	 	 	An
    Award shall be deemed exercised only when the Company receives: (i) written notice of exercise (in accordance with the Award
    Agreement) from the Grantee entitled to exercise the Award, and (ii) full payment for the Award Shares with respect to which
    the Award is exercised. Award Shares issued upon exercise of an Award shall be issued in the name of the Grantee or in the
    name of the Trustee in the case of 102 Trustee Share Options. Until the Award Shares are issued (as evidenced by the appropriate
    entry in the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends
    or any other rights as a shareholder shall exist with respect to the Award Shares, notwithstanding the exercise of the Award.
    To avoid doubt, until the Award Shares are issued, such Grantee shall not have any right as a shareholder, including the right
    to vote at any meeting of the shareholders of the Company, nor shall the Grantees be deemed to be a class of shareholders
    or creditors of the Company. Upon the exercise of an Award, the Company shall issue (or cause to be issued) such Award Shares
    promptly (up to 30 days) after the Award is exercised. If any law or regulation requires the Company to take any action with
    respect to the Award Shares specified in such notice before the issuance thereof, then the date of their issuance shall be
    delayed for the period necessary to take such action.
	 	 	 
	 	 	Exercise
    of an Award in any manner shall result in a decrease in the number of Award Shares thereafter available, for delivery under
    the Award, by the number of Award Shares as to which the Award is exercised.
	 	 	 
	 	(c)	Termination
    of Relationship with an Employee. Except as provided in this subsection and subsections (d) through (h), an Award may
    not be exercised following termination of a Grantee’s Continuous Service Status. Unless otherwise determined by the
    Administrator, if, on the date of termination, the Grantee is not vested as to his or her entire Award, the unvested portion
    shall not be exercisable and the Award Shares covered by the unvested portion of the Awards shall revert to the Plan.

 

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	 	(d)	Dismissal.
    In case of dismissal of an Employee, such Employee Grantee will be eligible to exercise any vested Award within 90 days of
    the date of termination (but in no event later than the expiration date of the term of such Award as set forth in Section
    8 or in the Award Agreement). Additionally, the Administrator shall have the right, in its discretion, as long as the Employee
    was not dismissed for Cause, to accelerate any portion of the Grantee’s unvested Awards, as per Section 5(b)(vii) hereof.
    The Board, considering the recommendations made by the Chairman of the Board and the CEO, is authorized to approve the exercise
    of additional unvested Options. If, after termination, the Grantee does not exercise within the time specified by the Award
    Agreement, the Plan or the Administrator the portion of his or her Award that had vested, the vested portion of the Award
    shall terminate, and the Award Shares covered by such portion shall revert to the Plan.
	 	 	 
	 	(e)	Dismissal
    for Cause. In the event of termination of relationship with the Participant for Cause, the Participant’s right to
    exercise unvested and/or vested Awards shall terminate immediately upon such termination, and all such Awards shall be forfeited
    without any payment being due. In addition, the Purchaser will be entitled to repurchase, within twelve (12) months of such
    termination, any or all of the Award Shares resulting from the exercise of any Awards exercised prior to the date of the repurchase.
    The price paid for each Award Share will be determined by the Administrator, in its sole discretion, but shall not be less
    than the par value of the Share.
	 	 	 
	 	(f)	Disability
    of an Employee Grantee. If an Employee Grantee ceases to be an Employee as a result of a physical or mental impairment,
    which has lasted or is expected to last for a continuous period of not less than twelve months and which causes the Grantee’s
    total and permanent disability to engage in any substantial gainful activity (a “Disability”), the Grantee
    may exercise his or her Awards within six (6) months of the date of termination, to the extent the Award is vested on the
    date of termination, but in no event later than the expiration date of the term of such Awards as set forth in Section 8 or
    in the Award Agreement. In addition, the Administrator shall have the right, in its discretion, to accelerate any portion
    of the disabled Grantee’s unvested Awards, as per Section 5(b)(vii) hereof. If, after termination, the Awards are not
    exercised within the time specified herein, the Award shall terminate, and the Award Shares covered by such Award shall revert
    to the Plan.
	 	 	 
	 	(g)	Death
    of an Employee Grantee. If an Employee Grantee dies while considered an Employee, the vested Awards and the Awards included
    in the next installment which have not yet vested, may be exercised within such period of time as is specified in the Award
    Agreement (such period to be at least six (6) months but in no event later than the expiration date of the term of such Awards
    as set forth in Section 8 or in the Award Agreement) by the Grantee’s estate or by a person who acquires the right to
    exercise the Award by bequest or inheritance. In the absence of a specified time in the Award Agreement, the Award shall remain
    exercisable for twelve (12) months following the Grantee’s death, unless otherwise extended by the Administrator. If
    the Award is not so exercised within the time specified herein, the Award shall terminate, and the Award Shares covered by
    such Award shall revert to the Plan.
	 	 	 
	 	(h)	Retirement
    of an Employee Grantee. In the event of an Employee Grantee’s retirement, at the age of at least 60 years, he/she
    will be eligible to exercise, within 90 days of such retirement (but in no event later than the expiration date of the term
    of such Award as set forth in Section 8 or in the Award Agreement), any vested Awards. Additionally, the Administrator shall
    have the right, in its discretion, to accelerate any portion of the retiring Grantee’s unvested Awards, as per Section
    5(b)(vii) hereof.
	 	 	 
	 	(i)	Clauses
    (e) through (h) of this Section 10 shall be subject to applicable limitations under Section 102 with respect to Section 102
    Awards.

 

    	11

    	 

    

 

11.
PAYMENT OF EXERCISE PRICE

 

	 	(a)	Payment.
    Payment for the Award Shares purchased pursuant to the exercise of an Option may be made in such form as shall be acceptable
    to the Administrator in its sole discretion and may consist entirely of (1) cash; (2) check; (3) if, as of the date of exercise
    of an Option the Company then is permitting employees to engage in a “same-day sale” cashless brokered exercise
    program involving one or more brokers, through such a program that complies with the Applicable Laws and that ensures prompt
    delivery to the Company of the amount required to pay the exercise price and any applicable withholding taxes; or (4) any
    combination of the foregoing methods of payment. Furthermore, with respect to Trustee Share Options, the Trustee may refuse
    to accept payment of the Exercise Price in any form other than cash if the Trustee considers in its reasonable discretion
    that acceptance of another form of consideration is likely to result in a withholding tax liability.
	 	 	 
	 	(b)	Notwithstanding
    the above, the Grantee may, at his own discretion instruct the Company in writing, as part of the Exercise Notice, that the
    payment for the Options will be made through “cashless exercise” mechanism (the “Cashless Notice”).
    In the event that the Grantee has elect to submit the Cashless Notice then the Grantee shall be entitled to receive a certificate
    for the number of Shares equal to the quotient obtained by dividing [(A-B)*(N)] by (A), where:
	 	 	 
	 	 	(A)
    = the average of the closing (or closing bid, if so reported) prices per Share on the five (5) Trading Days preceding the
    date of such election;
	 	 	 
	 	 	(B)
    = the Purchase Price; and
	 	 	 
	 	 	(N)
    = the number of shares issuable upon exercise of the Options in accordance with the terms of this Agreement.
	 	 	 
	 	 	The
    cashless exercise is not permissible under Section 102 of the Ordinance unless such cashless exercise is made pursuant to
    the special approval of the Israeli Income Tax Authorities.

 

12.
TRUSTEE SHARE OPTIONS.

 

	 	(a)	Options
    granted pursuant to this Section 12 are intended to constitute Trustee Share Options and, subject to Section 102 of the Ordinance,
    the general terms and conditions specified in the Plan, except for said provisions of the Plan applying solely to Awards under
    a different tax law or regulation, shall apply to them.

 

    	12

    	 

    

 

	 	(b)	The
    Company may choose between granting 102 Capital Gain Share Options and 102 Ordinary Income Share Options (the “Election”).
    The Company can change such Election only after the passage of at least 12 months from the end of the calendar year in which
    the first grant was made in accordance with the previous Election. Until the Election is changed, all Trustee Share Options
    shall be made according to the Election.
	 	 	 
	 	(c)	Anything
    herein to the contrary notwithstanding, all Trustee Share Options granted under this Plan shall be granted by the Company
    to a Trustee designated by the Administrator and the Trustee shall hold each such Award and the Award Shares issued upon exercise
    thereof in trust for the benefit of the Grantee in respect of whom such Award was granted. All certificates representing Award
    Shares issued to the Trustee under the Plan shall be deposited with the Trustee, and shall be held by the Trustee until such
    time that such Award Shares are released from the trust. With regard to 102 Capital Gain Share Options and 102 Ordinary Income
    Share Options, the Awards or the Award Shares and all rights related to them, including bonus shares, will be held by the
    Trustee for the period required under Section 102 or a shorter period as approved by the tax authorities (the “Lock-up
    Period”), under the terms set in Section 102.
	 	 	 
	 	(d)	In
    accordance with Section 102, the Grantee is prohibited from selling the Awards or the Awards Shares, until the end of the
    Lock-up Period.
	 	 	 
	 	(e)	Anything
    to the contrary herein notwithstanding, the Trustee shall not release any Awards which were not already exercised into Award
    Shares by the Grantee nor release any Award Shares issued upon exercise of the Award, prior to the full payment of the Exercise
    Price and Grantee’s tax liability arising from Options which were granted to him and/or Shares issued upon exercise
    of such Trustee Share Options. Prior to receipt of the Award, the Grantee 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 Plan, or any
    Option granted or Share issued to him thereunder. Any bonus shares, options or any other rights received an account of a Section
    102 Award shall be subject to this Section 12(e).
	 	 	 
	 	(f)	Trustee
    Share Options may only be granted to Employees of the issuing corporation or its subsidiaries (subject to approval by the
    tax authorities).
	 	 	 
	 	(g)	A
    recipient of Trustee Share Options shall be required to (i) provide such declarations as shall be demanded by the Trustee,
    including, inter alia, (a) that he is not a “controlling party,” as defined in Section 32(9) of the Ordinance,
    prior to and after the issuance of the Trustee Share Options, (b) that he is a resident of Israel and will report to the Trustee
    any change in residence, and (c) that he is aware of the provisions of Section 102 and of the type of options granted to him,
    and (ii) undertake not to sell the Options or the Award Shares issued to the Trustee with respect thereto during the applicable
    Lock-up Period.

 

    	13

    	 

    

 

13.
NON TRUSTEE 102 SHARE OPTIONS

 

	 	(a)	Options
    granted pursuant to this Section 13 are intended to constitute Non Trustee 102 Share Options and shall be subject to the general
    terms and conditions specified in the Plan, except for said provisions of the Plan applying solely to Awards under a different
    tax law or regulations.
	 	 	 
	 	(b)	Non
    Trustee 102 Share Options may only be granted to Employees.
	 	 	 
	 	(c)	The
    Non Trustee 102 Share Options which shall be granted pursuant to the Plan may be issued to a trustee appointed by the Administrator.
	 	 	 
	 	(d)	 If
    the Grantee’s employment with the Company is terminated for any reason, the Grantee will be obligated to provide the
    Company, to its satisfaction and subject to its sole discretion, with a security or guarantee to cover any future tax obligation
    resulting from the disposition of the Awards or the Award Shares.

 

14.
3(9) SHARE OPTIONS.

 

	 	(a)	Options
    granted pursuant to this Section 14 are intended to constitute 3(9) Share Options and shall be subject to the general terms
    and conditions specified in the Plan, except for said provisions of the Plan applying solely to Awards under a different tax
    law or regulation.
	 	 	 
	 	(b)	3(9)
    Share Options may only be granted to Israeli Participants who are not Employees.
	 	 	 
	 	(c)	The
    3(9) Share Options which shall be granted pursuant to the Plan may be issued to a trustee nominated by the Committee or the
    Administrator.

 

15.
ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER

 

	 	(a)	Changes
    in Capitalization. Subject to any required action by the shareholders of the Company, the number of Award Shares covered
    by or underlying each outstanding Award and the number of Award Shares which have been authorized for issuance under the Plan
    but as to which no Awards have been granted or which have been returned to the Plan upon cancellation or expiration of Award(s),
    as well as the Exercise Price per Share of each such outstanding Award shall be appropriately adjusted for any increase or
    decrease in the number of issued Award Shares resulting from a share split, reverse share split, share dividend, recapitalization,
    combination or reclassification of the Shares, or any other like event by or of the Company, in each case effected without
    the need for receipt of additional consideration by the Company from the Grantee; provided, however, that the Exercise Price
    shall not be less than the nominal value of the Share underlying any such Options. Such adjustment shall be made by the Board,
    whose determination shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company
    of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof
    shall be made with respect to, the number or price of Award Shares subject to an Award.

 

    	14

    	 

    

 

	 	(b)	Dissolution
    or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify
    each Grantee as soon as practicable prior to the effective date of such proposed transaction. The Grantee will have the right
    to exercise his or her Awards until ten (10) days prior to such transaction as to all of the Award Shares, including Award
    Shares which would not otherwise be vested at such time. To the extent it has not been previously exercised, an Award will
    terminate immediately prior to the consummation of such proposed action, unless otherwise determined by the Administrator.
	 	 	 
	 	(c)	Merger
    or Acquisition. In the event of a Merger or Acquisition, each outstanding Award shall be assumed or an equivalent Award
    substituted by the successor company or a parent or Subsidiaries of the successor company. In the case of such assumption
    and/or substitution of shares and/or Options, appropriate adjustments shall be made in the Exercise Price to reflect such
    action, and all other terms and conditions of the Award Agreements, such as the vesting dates, shall remain in force as will
    be determined by the Board whose determination shall be final. In the event that the successor company refuses to assume or
    substitute for the Award, the Grantee shall retain the right to exercise vested Awards, and the Administrator shall notify
    the Grantee in writing that such Awards shall be exercisable for a period not less than (15) days from the date of such notice,
    and the Awards shall terminate upon the expiration of such period. Should a Merger or Acquisition occur within one year of
    the Effective Date, such Grantee shall be eligible to exercise a proportion of such Awards as determined by the Administrator,
    regarding which the Administrator shall issue a similar notice with a 15-day period for exercise.

 

The
Administrator shall determine, in its discretion, the proper exchange ratio of the Awards and the fair value of such Awards for
purpose of such substitution, shall be authorized to accelerate the vesting date of any or all Awards and to make all necessary
adjustments in the terms of the Awards, and the substituted Awards (including, without limitation, adjustments in the Exercise
Price) that are fair under the circumstances.

 

For
the purposes of this Section 15(c), Awards shall be considered assumed if, following the Merger or Acquisition, the Award (or
substitute Award) confers upon the Grantee the right to purchase or receive, for each Share of Award Shares for which the Award
was exercisable immediately prior to the Merger or Acquisition, the pro rata consideration (whether shares, share options, cash,
or other securities or property) received in the Merger or Acquisition by holders of Shares for each Share 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 Merger or Acquisition
is not solely ordinary shares (or their equivalent) of the successor company or its parent, the Administrator may, with the consent
of the successor company, provide for the consideration to be received upon the exercise of the Award, for each Share of Award
Shares, to be solely ordinary shares (or their equivalent) of the successor company or its parent equal in fair market value to
the per share consideration received by holders of a majority of the outstanding shares in the Merger or Acquisition, and provided
further that the Administrator may determine, in its sole discretion, that in lieu of such assumption or substitution of Awards
for awards by the acquiring corporation or its parent or Subsidiaries, such Awards will be substituted for by any other type of
asset or property including cash which is fair under the circumstances.

 

    	15

    	 

    

 

16.
AMENDMENT AND TERMINATION OF THE PLAN

 

	 	(a)	Amendment
    and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.
	 	 	 
	 	(b)	Shareholder
    Approval. The Board shall obtain shareholder approval of any amendment to the Plan to the extent necessary to comply with
    Applicable Laws.
	 	 	 
	 	(c)	Effect
    of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall be made if the Administrator
    determines, at its discretion, that it will impair the legitimate rights of any Grantee, unless mutually agreed otherwise
    between the Grantee and the Administrator, which agreement must be in writing and signed by the Grantee and the Company. Notwithstanding
    the foregoing, the Board may exercise its authority under Section 15 without the consent of Grantees. Termination of the Plan
    shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted
    under the Plan prior to the date of such termination.

 

17.
INABILITY TO OBTAIN AUTHORITY

 

The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary for the lawful issuance and sale of any Award Shares hereunder, shall relieve the Company of any liability
in respect of the failure to issue or sell such Award Shares as to which such requisite authority shall not have been obtained.

 

18.
RESERVATION OF SHARES

 

The
Company, during the term of this Plan, shall at all times reserve and keep available and authorized for issuance such number of
Award Shares as shall be sufficient to satisfy the requirements of the Plan.

 

19.
GOVERNING LAW

 

The
Plan and all instruments issued thereunder or in connection therewith shall be governed by, interpreted, construed and enforced
in accordance with the internal laws of the State of Israel.

 

20.
JURISDICTION

 

Any
disputes arising out of any other instruments shall be resolved exclusively by the appropriate court in Tel-Aviv.

 

    	16

    	 

    

 

21.
TAX CONSEQUENCES

 

If
the Administrator shall so require, as a condition of exercise of an Award, upon the release of Shares by the Trustee or the expiration
of the Lock-up Period (each a “Tax Event”), each Grantee shall agree that, no later than the date of the Tax
Event, he will pay to the Company or make arrangements satisfactory to the Administrator and the Trustee (where relevant) regarding
payment of any applicable taxes of any kind required by law to be withheld or paid upon the Tax Event. To the extent approved
by the Administrator and permitted by law, a withholding obligation may be satisfied by the withholding of delivery of Shares.

 

ALL
TAX CONSEQUENCES WHICH MAY ARISE UNDER ANY APPLICABLE LAW FROM THE GRANT OF ANY AWARDS, OR IN THE CASE OF AN OPTION, FROM ITS
EXERCISE, FROM THE SALE OR DISPOSITION OF THE SHARES OR FROM ANY OTHER ACT OF THE GRANTEE IN CONNECTION WITH THE FOREGOING, SHALL
BE BORNE SOLELY BY THE GRANTEE, AND THE GRANTEE SHALL INDEMNIFY THE COMPANY AND THE TRUSTEE, AND SHALL HOLD THEM HARMLESS AGAINST
AND FROM ANY LIABILITY FOR ANY SUCH TAX OR PENALTY, INTEREST OR INDEXATION THEREON OR THEREUPON.

 

With
respect to Trustee Share Options, the Trustee shall hold such Trustee Share Options throughout their existence, and shall hold
the Award Shares until the earlier of their sale and payment of all applicable taxes by the Grantees but in no event shall the
Trustee release the Award Shares before the Lock-Up Period has elapsed. While holding the Award Shares, the Trustee will be responsible
for transferring to the Grantees any notice provided by the Company to its shareholders. Subject to fulfillment of all their obligations
and to the Proxy, Grantees will be entitled to instruct the Trustee to act on their behalf in utilizing the rights of their Award
Shares and the Trustee shall be obligated thereto.

 

22.
PROVISIONS FOR FOREIGN PARTICIPANTS

 

The
Board may, without amending the Plan, modify Awards granted to participants who are foreign nationals or employed outside Israel
to recognize differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax, securities,
currency, employee benefits or other matters.

 

23.
NON-EXCLUSIVITY OF PLAN

 

This
Plan shall not be construed as creating any limitations on the power of the Board or the Committee to adopt such other incentive
arrangements as either may deem desirable, including without limitation, the granting of share options otherwise than under this
Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

 

Adopted
by the Board of Directors on May 25, 2015.

 

    	17

    	 

    

 

APPENDIX
A

 

RADA
ELECTRONIC INDUSTRIES LTD. (the “Company”)

 

2015
SHARE OPTION PLAN (the “Plan”) - APPENDIX – U.S. TAXPAYERS

 

1.
Special Provisions for Persons who are U.S. Taxpayers

 

This
Appendix-U.S. Taxpayers (the “Appendix”) to the RADA ELECTRONIC INDUSTRIES LTD 2015 Share Option Plan (the
“Plan”) was approved by the Board of Directors of the Company (the “Board”) on March 28,
2018 (the “Effective Date”).

 

The
provisions specified in this Appendix apply only to persons who are subject to U.S. federal income tax (any such person, a “U.S.
Taxpayer”). This Appendix provides for the grant of Options to purchase Shares. Options granted under this Appendix
may include Incentive Stock Options intended to qualify under Section 422 of the Code as well as Non-Qualified Stock Options.
Incentive Stock Options must be granted, if at all, within ten years of the Effective Date.

 

Except
as otherwise provided by this Appendix, all grants made pursuant to this Appendix shall be governed by the terms of the Plan (including,
without limitation, its provisions regarding adjustments). This Appendix is applicable to all Options granted to U.S. Taxpayers
under the Plan after the Effective Date.

 

The
Plan and this Appendix shall be read together. Capitalized terms used in this Appendix, but not defined herein, shall have the
meaning given them in the Plan. For the purpose of granting Options under this Appendix, in any case of an irreconcilable contradiction
(as determined by the Administrator) between the provisions of this Appendix and the Plan, the provisions of this Appendix shall
govern unless expressly stated otherwise in the Plan. For purposes of clarification, with respect to the granting of Options under
this Appendix, if any term is defined in the Plan and this Appendix differently, then the term (as used in this Appendix and any
Agreement issued in connection with this Appendix) shall have the meaning as defined in this Appendix.

 

This
Appendix shall be submitted to the Company’s shareholders for approval within twelve (12) months of the Effective Date.
As of the Effective Date, the Administrator may grant Options pursuant to this Appendix; provided, however, that: (a) no Incentive
Stock Option may be exercised under this Appendix prior to initial shareholder approval of the Plan and this Appendix; (b) if
such approval has not been obtained at the end of said twelve-month period, all Incentive
Stock Options previously granted or awarded under the Plan and this Appendix shall thereupon be automatically converted into and
treated as Non-Qualified Stock Options; and (c) no Incentive Stock Option granted pursuant to an increase in the number
of Shares approved by the Board shall be exercised prior to the time such increase has been approved by the shareholders of the
Company.

 

2.
Definitions

 

Capitalized
terms not otherwise defined herein shall have the meaning assigned to them in the Plan. The following additional definitions will
apply to grants made pursuant to this Appendix:

 

“Code”
means the U.S. Internal Revenue Code of 1986, as amended. Any reference to any section of the Code shall also be a reference to
any successor provision and any Treasury Regulation promulgated thereunder.

 

“Disability”
means, for purposes of this Appendix, with respect to Incentive Stock Options awarded under this Appendix only, a “permanent
and total disability” within the meaning of Section 22(e)(3) of the Code, provided that in the case of Options other than
Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in
accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.

 

    	 

    	 

    

 

“Fair
Market Value” means, for purposes of this Appendix, the higher of (a) the average closing price of our Shares as quoted
on NASDAQ during the 30 business days prior to the date the Option is granted, and (b) the closing price as quoted on NASDAQ on
the last trading day preceding the date the Option is granted. If at any time our Shares are not traded on an established securities
market, the Fair Market Value shall be determined in good faith by the Administrator, taking into account such factors as it considers
advisable in a manner consistent with the principles of Code Section 409A and, with respect to Incentive Stock Options, Code Section
422.

 

“Incentive
Stock Option” means any Option awarded under the Plan and this Appendix intended to be and designated in the Option
Agreement as an “incentive stock option” within the meaning of Section 422 of the Code to an employee of the Company
or any Subsidiary.

 

“Non-Qualified
Stock Option” shall mean an Option not described in Section 422(b) or 423(b) of the Code, or, which, by its terms, does
not qualify or is not intended to qualify as an Incentive Stock Option.

 

“Option”
means an Incentive Stock Option or Non-Qualified Stock Option awarded hereunder.

 

“Grantee”
means a Service Provider who receives an Option hereunder.

 

“Parent”
means any parent corporation of the Company within the meaning of Section 424(e) of the Code.

 

“Securities
Act” means the U.S. Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Any reference
to any section of the Securities Act shall also be a reference to any successor provision.

 

“Service
Provider” shall mean an employee, director, office holder or consultant of the Company or a Subsidiary.

 

“Subsidiary”
means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code.

 

“Ten
Percent Shareholder” means a person possessing more than 10% of the total combined voting power of all classes of shares
of the Company, its Subsidiaries or its Parent determined pursuant to the attribution rules set forth in Section 424(d) of the
Code.

 

3.
Shares Reserved under the Plan; Incentive Stock Options

 

As
of the Effective Date, the aggregate maximum number of Shares that may be issued under this Appendix is 1,000,000 (subject to
adjustment in the case of changes in the capital structure of the Company as permitted by law), all of which may, but are not
required to, be issued as Incentive Stock Options. Such reserve of Shares available for grants of Incentive Stock Options shall
not be increased without the approval of the shareholders of the Company as required pursuant to Code Section 421 et seq. Shares
subject to Options that are cancelled, forfeited, settled for cash or that expire by their terms will again be available for grant
and issuance. To the extent permitted by applicable law or any exchange rule, Shares issued in assumption of, or in substitution
for, any outstanding grants of any entity acquired in any form of combination by the Company or any affiliate shall not be counted
against Shares available for grant as Options pursuant to the Plan. Notwithstanding the provisions of this Section 3, no Shares
may again be optioned as an Incentive Stock Option if such action would fail to qualify under Code Section 422 and the Treasury
Regulations promulgated thereunder.

 

The
number of Shares subject to Options and the terms of such Options may be adjusted in accordance with Section 15 of the Plan in
the event of certain changes in capitalization of the Company and other corporate events.

 

    	 

    	 

    

 

4.
Terms and Conditions of Options

 

Option
Agreement Each Option granted under the Plan and this Appendix shall be evidenced by an Option Agreement between the Grantee
and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and this Appendix and may be
subject to any other terms and conditions which are not inconsistent with the Plan and this Appendix and which the Administrator
deems appropriate for inclusion in an Option Agreement. In particular, the Administrator shall have the authority to designate
whether an Option is intended to qualify as an Incentive Stock Option or is a Non-Qualified Stock Option, as well as, the Option
expiration date and vesting schedule (and circumstances of the acceleration thereof). The provisions of the various Option Agreements
entered into under the Appendix need not be identical and an Grantee may be granted more than one Option.

 

Eligibility.
All Service Providers are eligible to be granted Non-Qualified Stock Options under this Appendix, but only employees of the Company
or a Subsidiary are eligible to be granted Incentive Stock Options under the Plan and this Appendix, if so employed on the grant
date of such Incentive Stock Option. Eligibility for the grant of an Option and actual participation in this Appendix and the
Plan shall be determined by the Board in its sole discretion.

 

Exercise
Price. Each Option Agreement shall state the exercise price per share of the Shares covered by each Option, which option price
shall be determined by the Administrator and shall be at least equal to the Fair Market Value per Share on the date of grant of
the Option. In addition, the terms in “Exercise Price” in Section 5 below shall apply to the grant of Incentive
Stock Options.

 

Withholding
Taxes. As a condition to the purchase or acquisition of any Shares hereunder, the Grantee shall make such arrangements as
the Administrator may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may
arise in connection with such purchase or acquisition.

 

Restrictions
on Transfer of Options and Shares. No Option shall be assigned, transferred or otherwise disposed of by any Grantee
other than by will or by the laws of descent and distribution, and all Options shall be exercisable, during the Grantee’s
lifetime, only by the Grantee. Any Shares awarded upon exercise of an Option under the Plan and this Appendix shall be subject
to such restrictions on transfer as are generally applicable to holders of Ordinary Shares of the Company in accordance with the
Company’s By-Laws and Certificate of Incorporation and other transfer restrictions as set forth in the Plan.

 

5.
Special Terms for Incentive Stock Options

 

Disqualification.
To the extent that any Option does not qualify as an Incentive Stock Option (whether because of its provisions or the time or
manner of its exercise or otherwise), such Option or the portion thereof that does not qualify shall constitute a separate Non-Qualified
Stock Option.

 

Exercise
Price. The exercise price per Share subject to an Incentive Stock Option shall be determined by the Administrator at the time
of grant of such Incentive Stock Option; provided that the per share exercise price of an Incentive Stock Option shall not be
less than 100% of the Fair Market Value of the Share at the time of grant of such Incentive Stock Option; and provided, further,
that if an Incentive Stock Option is granted to a Ten Percent Shareholder, the exercise price per Share shall be no less than
110% of the Fair Market Value of the Share at the time of the grant of such Incentive Stock Option.

 

Option
Term. The term of each Incentive Stock Option shall be fixed by the Administrator; provided, however, that no Incentive Stock
Option shall be exercisable more than 10 years after the date such Incentive Stock Option is granted; and further provided that
the term of an Incentive Stock Option granted to a Ten Percent Shareholder shall not exceed five (5) years.

 

Incentive
Stock Option Limitations. To the extent that the aggregate Fair Market Value (determined as of the time of grant) of Shares
with respect to which Incentive Stock Options are exercisable for the first time by an employee during any calendar year under
the Plan and/or any other stock option plan of the Company, any Subsidiary or any Parent, exceeds US$100,000, such Incentive Stock
Options shall be treated as Non-Qualified Stock Options. For purposes of this paragraph, Incentive Stock Options will be taken
into account in the order in which they were granted, the Fair Market Value of the Shares will be determined as of the date the
Option with respect to such Shares is granted, and calculation will be performed in accordance with Code Section 422. Should any
provision of this Appendix not be necessary in order for the Options to qualify as Incentive Stock Options, or should any additional
provisions be required, the Board may amend this Appendix accordingly, without the necessity of obtaining the approval of the
shareholders of the Company, unless required by applicable law.

 

    	 

    	 

    

 

Effect
of Termination of Employment. If an employee does not remain employed by the Company, any Subsidiary or any Parent at all
times from the time an Incentive Stock Option is granted until three months prior to the date of exercise thereof (or such other
period as required by Code Section 422), such Incentive Stock Option shall be treated as a Non-Qualified Stock Option. Notwithstanding
anything to the contrary in the Plan or this Appendix, and in the absence of a provision specifying otherwise in the relevant
Option Agreement, then with respect to Incentive Stock Options, the following provisions must be met in order for the Option to
qualify as an Incentive Stock Option under the Code:

 

(a)
In the event that the Grantee ceases to be an employee of the Company or any Subsidiary or Parent for any reason other than the
Grantee’s death or Disability, the vested Options must be exercised within 90 days from the effective date of termination
of the Grantee’s employment with the Company or any Subsidiary or Parent;

 

(b)
In the event that the Grantee’s employment with the Company, a Subsidiary or Parent terminates as a result of the Grantee’s
Disability, the Option must be exercised within one year following the Grantee’s Date of Termination for Disability.

 

To
avoid doubt, the provisions of Section 10 of the Plan shall remain in full force and effect and apply to Options granted as Incentive
Stock Options. The restrictions set forth above represent special additional limitations that apply to qualify as Incentive Stock
Options under the provisions of the Code. To avoid doubt, to the extent different than the terms under this Appendix, an Grantee
may choose to exercise Options in accordance with the terms of Section 10 of the Plan and the relevant Option Agreement, and not
in compliance with the provisions of the Code relating to “incentive stock options”. In that case such Option will
not qualify as an Incentive Stock Option and will be treated as a Non-Qualified Stock Option.

 

Notice
of Disposition. The Grantee shall give the Company prompt notice of any disposition of Shares acquired by exercise of an Incentive
Stock Option that occurs within (i) two years from the date of grant of such Incentive Stock Option or (ii) one year after the
transfer of such Shares to the Grantee.

 

6.
Amendment of Appendix

 

This
Appendix may be amended or terminated in accordance with the terms governing the amendment or termination of the Plan; provided,
however, that unless otherwise determined by the Board, an amendment which requires shareholder approval in order for the Plan
to continue to comply with any applicable law (including Code Section 422 to the extent applicable to Incentive Stock Options),
regulations or under the rules of any exchange or system on which the Company’s securities are listed or traded at the request
of the Company, shall not be effective unless approved by the requisite vote of shareholders. For this purpose, no amendment may
be made without the approval of the shareholders of the Company entitled to vote in accordance with applicable law, that would:
(i) increase the aggregate number of Shares that may be issued as Incentive Stock Options under this Appendix; (ii) change the
employees or class or classes of employees who are eligible for Incentive Stock Option grants; or (iii) extend the term of the
Plan as it applies to Incentive Stock Options.

 

7.
Compliance with Code Section 409A

 

Although
the Company does not guarantee to an Grantee, any particular tax treatment of Options, Options are intended be designed and operated
in such a manner as to be exempt from the application, or in compliance with the requirements, of Code Section 409A. Each Option
granted pursuant to the Plan, this Appendix and the applicable Option Agreement is intended to comply with (or be exempt from)
the requirements of Code Section 409A and any ambiguities or ambiguous terms herein will be construed and interpreted in accordance
with such intent. In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be
imposed on the Grantee by Section 409A of the Code or for any damages for failing to comply with Section 409A of the Code.Exhibit

Exhibit 10.1

AMENDED AND RESTATED 2006 STOCK INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT

Private & Confidential (Addressee Only)

Participant Name
Employee ID
Grant ID: Client Grant ID

We are pleased to advise you (the “Participant”) that Analog Devices, Inc., a Massachusetts corporation (the “Company”), has granted to the Participant that number of Performance Restricted Stock Units (“Performance RSUs”) set forth below, subject to the terms and conditions of the Analog Devices, Inc. Amended and Restated 2006 Stock Incentive Plan (the “Plan”) and this Performance Restricted Stock Unit Agreement, including Appendix A, which includes additional performance-based vesting conditions, and Appendix B, which includes any applicable country-specific provisions.  This Performance Restricted Stock Unit Agreement, together with Appendix A and Appendix B, is referred to as the “Agreement.”  The grant of Performance RSUs reflects the Company’s confidence in the Participant’s commitment and contributions to the success and continued growth of the Company.  All terms not defined in this Agreement shall have the meaning set forth in the Plan.
		
	1.
	Performance Restricted Stock Unit.

Subject to the terms and conditions of the Plan and this Agreement, the Company has granted to the Participant that number of Performance RSUs (the “Award”) effective on the Date of Grant set forth below:
Date of Grant:                          Grant Date
Number of Performance RSUs (“Initial Grant Number”):    Number of Awards Granted
Vesting Date:                          Cliff Vesting Date
If the Participant resides in a European Economic Area or European Union member state, due to local legal requirements the Participant must accept this Agreement no later than Grant Custom 4 or this Award shall terminate and will become null and void.  For purposes of this Agreement, the Participant is deemed to reside in the country where his or her Employer is located.
If the Participant resides in the United States and does not accept this Agreement by Grant Custom 4, or such other date that may be communicated, the Company will automatically accept the Agreement on the Participant’s behalf.  If the Participant declines this Agreement, this Award shall terminate and will become null and void.  The Participant may not decline this Agreement on or after Grant Custom 4.
Each one (1) Performance RSU shall, if and when it vests in accordance with this Agreement, automatically convert into one (1) share of common stock, US$0.16 2/3 par value, of the Company (“Common Stock”) issuable as provided below.  The Performance RSUs are subject to the vesting provisions set forth in Section 2 (including any performance-based vesting conditions set forth in Appendix A), the restrictions on transfer set forth in Section 3, and the right of the Company to retain Shares (as defined below) pursuant to Section 7.
		
	2.
	Vesting and Conversion.

		
	(a)
	Subject to the terms of the Plan and this Agreement, the Performance RSUs shall vest in accordance with the vesting conditions set forth in this Section 2 and the performance-based vesting conditions set forth in Appendix A.  For purposes of this Agreement, Performance RSUs that have not vested as of the Vesting Date in accordance with this Section 2 and Appendix A are referred to as “Unvested Performance RSUs.”  The shares of Common Stock that are issuable upon the vesting and conversion of the Performance RSUs are referred to in this Agreement as “Shares.”  As soon as administratively practicable after the issuance of any Shares upon the vesting and conversion of Performance RSUs (and in any event within sixty (60) days of the vesting date or event, as applicable), and subject to the terms and conditions set forth in the Agreement, the Company shall deliver or cause to be delivered evidence (which may include a book entry by the Company’s transfer agent) of the Shares so issued in the name of the Participant to the brokerage firm designated by the Company to maintain the brokerage account established for the Participant or the Participant’s heirs, in the case of Section 2(c).  Notwithstanding the foregoing, the Company shall not be obligated to issue Shares to or in the name of the Participant upon the vesting and conversion of any Performance RSUs unless the issuance of such Shares shall comply with all relevant provisions of law and other legal requirements including, without limitation, any applicable securities laws and the requirements of any stock exchange upon which shares of Common Stock may then be listed.

		
	(b)
	In the event the Participant’s employment with the Company or the Employer (as defined in Section 2(e)) is terminated either by the Participant, the Company, or the Employer for any reason or no reason (other than due to death or Disability), then in each such case, all of the Unvested Performance RSUs as of the date of termination shall terminate and be cancelled immediately and automatically and the Participant shall have no further rights with respect to such Unvested Performance RSUs.

		
	(c)
	In the event of the Participant’s death prior to the end of the Performance Period, the Unvested Performance RSUs shall vest immediately upon death with respect to the Initial Grant Number of Shares underlying the Performance RSUs, notwithstanding that the Participant was not employed as of the Vesting Date.  In the event of the Participant’s death after the end of the Performance Period, the Unvested Performance RSUs shall vest with respect to the number of Shares underlying the Performance RSUs that would have vested in accordance with Appendix A had the Participant continued employment through the Vesting Date had he or she not died. 

		
	(d)
	In the event the Participant becomes Disabled prior to the end of the Performance Period, the Unvested Performance RSUs shall vest immediately as of the date the Participant is determined to be Disabled with respect to the Initial Grant Number of Shares underlying the Performance RSUs, regardless of whether the Participant terminates employment prior to the Vesting Date.  In the event the Participant becomes Disabled after the end of the Performance Period, the Unvested Performance RSUs shall vest with respect to the number of Shares underlying the Performance RSUs that would have vested in accordance with Appendix A regardless of whether the Participant continues employment through the Vesting Date.  “Disabled” with respect to the Participant means, when and if, as a result of disease, injury or mental disorder, the Participant is incapable of engaging in regular service or occupation with the Company or the Employer (as defined in paragraph e) which has lasted or can be expected to last for a continuous period of not less than 12 months, as determined by the Company.

		
	(e)
	For purposes of this Agreement, employment shall include being an employee with the Company.  Employment shall also include being an employee with any direct or indirect parent or subsidiary of the Company, or any successor to the Company or any such parent or subsidiary of the Company (the “Employer”).  Should a Participant transfer employment to become a director, consultant or advisor to the Company or the Employer following the Date of Grant, he or she will still be considered employed for vesting purposes until he or she ceases to provide services to the Company or any direct or indirect parent or subsidiary of the Company, or any successor to the Company or any such parent or subsidiary of the Company.

		
	3.
	Restrictions on Transfer.

		
	(a)
	The Participant shall not sell, assign, transfer, pledge or otherwise encumber any Performance RSUs, either voluntarily or by operation of law.

		
	(b)
	The Company shall not be required (i) to transfer on its books any of the Performance RSUs which have been transferred in violation of any of the provisions set forth herein or (ii) to treat as the owner of such Performance RSUs any transferee to whom such Performance RSUs have been transferred in violation of any of the provisions contained herein.

		
	4.
	Not a Shareholder.  The Performance RSUs represent an unfunded, unsecured promise by the Company to deliver Shares upon vesting and conversion of the Performance RSUs, and until vesting of the Performance RSUs and issuance of the Shares, the Participant shall not have any of the rights of a shareholder with respect to the Shares underlying the Performance RSUs.  For the avoidance of doubt, the Participant shall have no right to receive any dividends and shall have no voting rights with respect to the Shares underlying the Performance RSUs for which the record date is on or before the date on which the Shares underlying the Performance RSUs are issued to the Participant.

		
	5.
	Provisions of the Plan.  The Performance RSUs and Shares, including the grant and issuance thereof, are subject to the provisions of the Plan.  A copy of the Plan prospectus is available on the Company’s Intranet at https://thecircuit.web.analog.com/Pages/CircuitHome.aspx. (From The Circuit home page, click Knowledge Centers, HR, Employee Stock Programs. The related documents can be found in the right-hand column).  If the Participant is unable to access this information via the Intranet, the Company’s Stock Plan Administrator can provide the Participant with copies (Stock_Plan_Admin@Analog.com).

		
	6.
	Withholding Taxes.

		
	(a)
	Regardless of any action the Company and/or the Employer, if different, takes with respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally applicable to the Participant is and remains the Participant’s responsibility and may exceed the amount, if any, actually withheld by the Company or the Employer.  The Participant further acknowledges that the Company and the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Performance RSUs, including the grant of the Performance RSUs, the vesting of the Performance RSUs, the subsequent sale of any Shares acquired pursuant to the Performance RSUs and the receipt of any dividends; and (ii) do not commit to structure the terms of the grant or any aspect of the Performance RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result.  Further, if the Participant becomes subject to Tax-Related Items in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable, the Participant acknowledges that the Company and/or the Employer may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

		
	(b)
	Prior to any relevant taxable or tax withholding event, as applicable, the Participant will pay or make adequate arrangements satisfactory to the Company to satisfy all Tax-Related Items.  In this regard, the Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the methods set forth below:

		
	(i)
	the Company may withhold a sufficient number of whole Shares otherwise issuable upon the vesting of the Performance RSUs that have an aggregate Fair Market Value (as defined under the Plan) sufficient to pay the minimum Tax-Related 

Items required to be withheld with respect to the Shares.  The cash equivalent of the Shares withheld will be used to settle the obligation to withhold the Tax-Related Items (determined by reference to the closing price of the Common Stock on the Nasdaq Global Select Market on the applicable vesting date); or
		
	(ii)
	the Company may, in its discretion, withhold any amount necessary to pay the Tax-Related Items from the Participant’s salary or other amounts payable to the Participant; or

		
	(iii)
	the Company may withhold from proceeds of the sale of Shares either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization).

provided, however, that if the Participant is a Section 16 officer of the Company under the Exchange Act, then the Company will withhold a sufficient number of whole Shares otherwise issuable upon the vesting of the Performance RSUs pursuant to (i) above, unless the use of such withholding method is problematic under applicable tax or securities law or has materially adverse accounting consequences, in which case, the obligation for Tax-Related Items will be satisfied pursuant to (iii).
The Company may withhold or account for Tax-Related Items by considering applicable statutory withholding amounts or other applicable withholding rates, including maximum applicable rates in the Participant’s jurisdiction(s).  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Participant is deemed to have been issued the full number of Shares subject to the vested Performance RSU, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items.
In the event the withholding requirements are not satisfied through the withholding of Shares or through the Participant’s salary or other amounts payable to the Participant, no Shares will be issued upon vesting of the Performance RSUs unless and until satisfactory arrangements (as determined by the Compensation Committee of the Board) have been made by the Participant with respect to the payment of any Tax-Related Items which the Company and/or the Employer determine, in each of its sole discretion, must be withheld or collected with respect to such Performance RSUs.  No fractional Shares will be withheld or issued pursuant to the grant of the Performance RSUs and the issuance of Shares hereunder.  By accepting this grant of Performance RSUs, the Participant expressly consents to the withholding of Shares and/or cash as provided for hereunder.  All other Tax-Related Items related to the Performance RSUs and any Shares delivered in payment thereof are the Participant’s sole responsibility.

		
	7.
	Option of Company to Deliver Cash.  Notwithstanding any of the other provisions of this Agreement, and except as set forth in Appendix B, where share settlement is otherwise prohibited under local law or may present adverse tax consequences to the Participant, at the time the Performance RSUs vest, the Company may elect, in the sole discretion of the Compensation Committee of the Board, to deliver by wire transfer to the Participant in lieu of Shares an equivalent amount of cash (determined by reference to the closing price of the Common Stock on the Nasdaq Global Select Market on the applicable vesting date).  If the Company elects to deliver cash to the Participant, the Company is authorized to retain such amount as is sufficient in the opinion of the Company to satisfy the Tax-Related Items withholding obligations of the Company pursuant to Section 6 herein.

		
	8.
	Repatriation and Other Legal Requirements.  The Participant agrees as a condition of the grant of the Performance RSUs, as applicable, to repatriate all payments attributable to the Shares and/or cash acquired under the Plan (including, but not limited to, dividends and any proceeds derived from the sale of the Shares acquired pursuant to the Performance RSUs) in accordance with all foreign exchange rules and regulations applicable to the Participant.  In addition, the Participant also agrees to take any and all actions, and consent to any and all actions taken by the Company and its subsidiaries, as may be required to allow the Company and its subsidiaries to comply with all laws, rules and regulations applicable to the Participant.  Finally, the Participant agrees to take any and all actions as may be required to comply with the Participant’s personal legal and tax obligations under all laws, rules and regulations applicable to the Participant.

		
	9.
	Miscellaneous.

		
	(a)
	No Rights to Employment.  The grant of the Performance RSUs shall not confer upon the Participant any right to continue in the employ of the Company or the Employer, nor limit in any way the right of the Company or the Employer to terminate the Participant’s employment at any time.  Except in the event of disability or termination of employment due to death, the vesting of the Performance RSUs pursuant to Section 2 and Appendix A, is earned only by satisfaction of the performance-based vesting conditions and continuing service as an employee at the will of the Company or the Employer through the Vesting Date (not through the act of being hired or engaged or being granted the Performance RSUs hereunder). 

		
	(b)
	Discretionary Nature.  The Participant acknowledges and agrees that the Plan is discretionary in nature and may be amended, cancelled, or terminated by the Company at any time, to the extend permitted under the Plan.  The Participant’s participation in the Plan is voluntary.  The grant of the Performance RSUs under the Plan is a one-time benefit and does not create any contractual or other right to receive a grant of Performance RSUs or any other award under the Plan or other benefits in lieu thereof in the future.  Future grants, if any, will be at the sole discretion of the Company, including, but not limited to, the form and timing of any grant, the number of Shares subject to the grant, and the vesting provisions.  Any amendment, modification or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant’s employment with the Company or the Employer.  The Performance RSUs and income from such Performance RSUs shall not be included in any calculation of severance, resignation, redundancy, end of service payments, bonuses, long-

service awards, holiday pay, pension, or retirement benefits or similar payments.  The Performance RSUs should in no event be considered as compensation for, or relating in any way to, past services for the Company or the Employer.
		
	(c)
	Exclusion from Termination Indemnities and Other Benefits.  This Section 9(c) applies if the Participant resides outside the U.S.:  The value of the Performance RSUs and any other awards granted under the Plan is an extraordinary item of compensation outside the scope of the Participant’s employment with the Company or the Employer (and the Participant’s employment contract, if any).  Any grant under the Plan, including the grant of the Performance RSUs and the income and value of same, is not part of normal or expected compensation or salary.  Further, the Performance RSUs and the Shares, and the income and value of same, are not intended to replace any pension rights or compensation.

		
	(d)
	No Entitlement.  This Section 9(d) applies if the Participant resides outside the U.S. and/or the Company is not the Participant's employer:  In consideration of the grant of Performance RSUs, no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance RSUs resulting from termination of the Participant’s employment with the Company or the Employer (regardless of the reason for such termination and whether or not later to be found invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment contract, if any) and the Participant irrevocably releases the Company from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, the Participant shall be deemed irrevocably to have waived the Participant’s entitlement to pursue such claim.

		
	(e)
	Exchange Rates.  This Section 9(e) applies if the Participant resides outside the U.S.:  The Participant acknowledges and agrees that neither the Company nor the Employer shall be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the Performance RSUs or of any amounts due to the Participant pursuant to the vesting and settlement of the Performance RSUs or the subsequent sale of any Shares.

		
	(f)
	Future Value of Shares.  The future value of the underlying Shares is unknown, indeterminable, and cannot be predicted with certainty.

		
	(g)
	Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

		
	(h)
	Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Company and the Participant and his or her respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 3 of this Agreement.

		
	(i)
	Notice.  Each notice relating to this Award shall be in writing (which shall include electronic form) and delivered in person, electronically or by first class mail, postage prepaid, to the address as hereinafter provided.  Each notice shall be deemed to have been given on the date it is received.  Each notice to the Company shall be addressed to it at its offices at Analog Devices, Inc., One Technology Way, Norwood, Massachusetts, 02062, Attention:  Chief Financial Officer.  Each notice to the Participant shall be addressed to the Participant at the Participant’s last known mailing or email address, as applicable, on the records of the Company.

		
	(j)
	Pronouns.  Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.

		
	(k)
	Entire Agreement.  This Agreement and the Plan constitute the entire understanding between the parties, and supersede all prior agreements and understandings, relating to the subject matter of these documents.

		
	(l)
	Governing Law.  This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to any applicable conflicts of laws. 

		
	(m)
	Compliance with Laws.  Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable.  The Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares.  The Participant also understands and agrees that the Awards granted under the Plan, including the Performance RSUs and the underlying Shares, are subject to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and any SEC regulations, as now or hereafter in effect. Further, the Participant agrees that the Company shall have unilateral authority to amend the Plan and the Agreement without the Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares. 

		
	(n)
	Interpretation.  The interpretation and construction of any terms or conditions of this Agreement or the Plan, or other matters related to the Plan, by the Compensation Committee of the Board shall be final and conclusive.

		
	(o)
	Participant’s Acceptance.  The Participant is urged to read this Agreement carefully and to consult with his or her own legal counsel regarding the terms and consequences of this Agreement and the legal and binding effect of this Agreement.  By 

virtue of his or her acceptance of this Award, the Participant is deemed to have accepted and agreed to all of the terms and conditions of this Agreement and the provisions of the Plan.
		
	(p)
	Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to the Performance RSUs or other awards granted to the Participant under the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

		
	(q)
	English Language.  The Participant acknowledges and agrees that it is the Participant’s express intent that this Agreement, the Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Performance RSUs, be drawn up in English.  If the Participant has received this Agreement, the Plan or any other documents related to the Performance RSUs translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version shall control.

		
	(r)
	Appendix B.  Notwithstanding any provisions herein to the contrary, if the Participant transfers the Participant’s residence and/or employment to a country other than the United States, the Performance RSUs shall be subject to any special terms and conditions for such country as may be set forth in Appendix B to this Agreement.  Moreover, if the Participant relocates to one of the countries included in Appendix B, the special terms and conditions for such country will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  Appendix B constitutes part of this Agreement.

		
	(s)
	Additional Requirements.  The Company reserves the right to impose other requirements on the Performance RSUs, any Shares acquired pursuant to the Performance RSUs, and the Participant’s participation in the Plan, to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable for legal or administrative reasons.  Such requirements may include (but are not limited to) requiring the Participant to sign any agreements or undertakings that may be necessary to accomplish the foregoing.

		
	(t)
	Private Placement.  The Company has submitted filings in the United States in connection with the stock incentive plan under which this Award was made.  The Company has not submitted any registration statement, prospectus or other filings with other local securities authorities (unless otherwise required under such local law), and the grant of the Award is not intended to be a public offering of securities in any other jurisdiction or subject to the supervision of other local securities authorities.

		
	(u)
	Changes in Capitalization.  In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any non-cash distribution to holders of Common Stock, the number of Performance RSUs, and Shares issuable upon vesting and conversion thereof, shall be appropriately adjusted in such manner as shall be determined by the Compensation Committee.

		
	(v)
	No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of Shares.  The Participant is encouraged to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

		
	(w)
	Insider Trading Restrictions/Market Abuse Laws.  The Participant acknowledges that, depending on the Participant’s or the Participant’s broker’s country of residence or where the Common Stock is listed, the Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions which may affect the Participant’s ability to accept, acquire, sell, or otherwise dispose of Common Stock, rights to Common Stock (e.g., Performance RSUs), or rights linked to the value of Common Stock (e.g., phantom awards, futures) under the Plan during such times as the Participant is considered to have “inside information” regarding the Company (as defined by the laws or regulations in the Participant’s country).  Local insider trading laws and regulations may prohibit the cancellation or amendment of orders the Participant placed before possessing inside information.  Furthermore, the Participant could be prohibited from (i) disclosing the inside information to any third party (other than on a “need to know” basis) and (ii) “tipping” third parties or causing them otherwise to buy or sell securities.  Keep in mind third parties includes fellow employees.  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy.  The Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and the Participant should speak to his or her personal advisor on this matter.

		
	(x)
	Foreign Asset/Account, Exchange Control, and Tax Reporting.  Depending on the Participant’s country, the Participant may be subject to foreign asset/account, exchange control and/or tax reporting requirements as a result of the vesting of the Performance RSUs, the acquisition, holding, and/or transfer of Shares or cash resulting from participation in the Plan and/or the opening and maintenance of a brokerage or bank account in connection with the Plan.  The Participant may be required to report such assets, accounts, account balances and values and/or related transactions to the applicable authorities in his or her country.  The Participant also may be required to repatriate sale proceeds or other funds received as a result of participation in the Plan to the Participant’s country through a designated broker or bank and/or within a certain time after receipt.  The Participant acknowledges that he or she is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting requirements.  The Participant further understands that he or she should consult the Participant’s personal legal advisor on these matters.

		
	(y)
	Waiver.  The Participant acknowledges that a waiver by the Company or breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant.

 
	
					
	 
	 /s/ Ray Stata
	 
	 /s/ Vincent Roche
	 

	 
	Ray Stata
	 
	Vincent Roche
	 

	 
	Chairman of the Board
	 
	President & Chief Executive Officer
	 

APPENDIX A TO
AMENDED AND RESTATED 2006 STOCK INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT

		
	1.
	Performance Period.  The three-year period beginning on Grant Date and ending on Grant Custom 1 (the “Performance Period”).

		
	2.
	Vesting Date. Cliff Vesting Date.

		
	3.
	Determination Date:  The date the Compensation Committee of the Board determines the level of attainment of the Performance Parameters.  The Determination Date shall be a date as soon as possible following the end of the Performance Period but prior to the Vesting Date.

		
	4.
	Performance-Based Vesting Terms.  Subject to Section 2(a) through 2(d) of the Performance Restricted Stock Unit Agreement, the Participant shall vest on the Vesting Date in the number of Performance RSUs, if any, that the Compensation Committee of the Board shall determine to be vested based on the determination of the level of attainment of the Performance Parameters, provided the Participant continues to provide services to the Company or Employer or respective successor through the Vesting Date.  

		
	5.
	Performance Parameters.  The Performance Parameters are based on the comparison of the TSR (as defined below) of the Company relative to the median TSR of the Peer Group (as defined below) during the Performance Period and are equal to 100% plus or minus one and a half times the difference between the Company’s TSR and the median Peer Group TSR.  The number of Performance RSUs that shall vest shall be equal to a number of Performance RSUs that is between 0% and 200% of the Initial Grant Number, up to a maximum of 100% of the Initial Grant Number if the Company’s TSR is negative.  Attainment among Performance Parameters is subject to interpolation on a linear basis. 

“Peer Group” shall mean a peer group of companies established by the Compensation Committee of the Board at the time the Performance RSUs are granted to the Participant and the stock of which continues to be traded on a publicly traded stock exchange as of the last day of the Performance Period.
Total Shareholder Return (“TSR”) shall be computed according to the following formula:
TSR =  (Ending Stock Price - Beginning Stock Price + Cumulative Cash Dividend Payments)
(Beginning Stock Price)

“Beginning Stock Price” shall mean the average of the closing prices of the applicable stock for the 90 calendar days starting and including the first day of the Performance Period.
“Ending Stock Price” shall mean the average of the closing price of the applicable stock for the 90 calendar days up to and including the last day of the Performance Period.
“Cumulative Cash Dividend Payments” shall mean the sum of all cash dividends declared during the Performance Period, based on their ex-dividend date.
The stock prices and cash dividend payments reflected in the calculation of TSR shall be adjusted to reflect stock splits during the Performance Period, and dividends shall not be reinvested in the calculation of TSR.

APPENDIX B TO
AMENDED AND RESTATED 2006 STOCK INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT

Three examples are set forth below:
	
			
	Payout Percent
	Number of Potential Shares Attained
	Performance Parameters

	0%
	0
	Company TSR minus Peer Group Median TSR is less than or equal to -66.67

	100%
	Number of Awards Granted
	Company TSR minus Peer Group Median TSR equals 0

	200%
	Grant Custom 2
	Company TSR minus Peer Group Median TSR is greater than or equal to +66.67

The Performance Parameters shall be subject to the adjustments approved by the Compensation Committee of the Board and set forth in writing at the time the Performance Parameters are approved.

This Appendix B includes additional terms and conditions that govern the Performance RSUs granted to the Participant if the Participant resides and/or works in one of the countries listed herein.  These terms and conditions are in addition to, or, if so indicated, in place of, the terms and conditions set forth in the Agreement.  Capitalized terms used but not defined in this Appendix B shall have the meanings set forth in the Plan and/or the Agreement.

This Appendix B also includes certain issues of which the Participant should be aware with respect to his or her participation in the Plan.  The information is based on the securities, exchange control, income tax and other laws in effect in the respective countries as of October 2018.  Such laws are often complex and change frequently.  As a result, the Company strongly recommends that the Participant not rely on the information noted herein as the only source of information relating to the consequences of participation in the Plan because the information may be out of date when the Performance RSUs vest or Shares acquired under the Plan subsequently are sold.

In addition, the information is general in nature and may not apply to the Participant’s particular situation, and the Company is not in a position to assure the Participant of any particular result.  Therefore, the Participant should seek appropriate professional advice as to how the relevant laws in the Participant’s country may apply to his or her situation.

Finally, the Participant understands that if he or she is a citizen or resident of a country other than the one in which the Participant is currently residing and/or working, transfers employment after the Date of Grant, or is considered a resident of another country for local law purposes, the information contained herein may not apply to the Participant, and the Company shall, in its discretion, determine to what extent the terms and conditions contained herein shall apply.

TERMS AND CONDITIONS APPLICABLE TO PARTICIPANTS OUTSIDE THE U.S.

Data Privacy Information and Consent.  The Company is located at One Technology Way, Norwood, Massachusetts, 02062 U.S.A. and grants employees of the Company and its subsidiaries Performance RSUs, at the Company’s sole discretion. If the Participant would like to participate in the Plan, please review the following information about the Company’s data processing practices and declare the Participant’s consent.
		
	(a)
	Data Collection and Usage.  The Company collects, processes and uses personal data of Participants, including, name, home address and telephone number, date of birth, social insurance number or other identification number, salary, citizenship, job title, any shares of stock or directorships held in the Company, and details of all Performance RSUs, canceled, vested, or outstanding in the Participant’s favor, which the Company receives from the Participant or the Employer.  If the Company offers the Participant a grant of Performance RSUs under the Plan, then the Company will collect the Participant’s personal data for purposes of allocating stock and implementing, administering and managing the Plan.  The Company’s legal basis for the processing of the Participant’s personal data would be his or her consent.

		
	(b)
	Stock Plan Administration Service Providers.  The Company transfers participant data to Fidelity, an independent service provider based in the United States, which assists the Company with the implementation, administration and management of the Plan.  In the future, the Company may select a different service provider and share the Participant’s data with another company that serves in a similar manner.  The Company’s service provider will open an account for the Participant to receive and trade shares of Common Stock.  The Participant will be asked to agree on separate terms and data processing practices with the service provider, which is a condition to the Participant’s ability to participate in the Plan.

APPENDIX B TO
AMENDED AND RESTATED 2006 STOCK INCENTIVE PLAN
PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT

		
	(c)
	International Data Transfers.  The Company and its service providers are based in the United States.  If the Participant is outside the United States, the Participant should note that his or her country has enacted data privacy laws that are different from the United States.  For example, the European Commission has issued a limited adequacy finding with respect to the United States that applies only to the extent companies register for the EU-U.S. Privacy Shield program.  The Company’s legal basis for the transfer of the Employee’s personal data is his or her consent.

		
	(d)
	Data Retention.  The Company will use the Participant’s personal data only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws.  When the Company no longer needs the Participant’s personal data, which will generally be seven years after the Participant is granted Performance RSUs under the Plan, the Company will remove it from it from its systems.  If the Company keeps data longer, it would be to satisfy legal or regulatory obligations and the Company’s legal basis would be relevant laws or regulations.

		
	(e)
	Voluntariness and Consequences of Consent Denial or Withdrawal.  The Participant’s participation in the Plan and the Participant’s grant of consent is purely voluntary.  The Participant may deny or withdraw his or her consent at any time.  If the Participant does not consent, or if the Participant withdraws his or her consent, the Participant cannot participate in the Plan.  This would not affect the Participant’s salary as an employee or his or her career; the Participant would merely forfeit the opportunities associated with the Plan.

		
	(f)
	Data Subject Rights.  The Participant has a number of rights under data privacy laws in his or her country.  Depending on where the Participant is based, the Participant’s rights may include the right to (a) request access or copies of personal data the Company processes, (b) rectification of incorrect data, (c) deletion of data, (d) restrictions on processing, (e) portability of data, (f) to lodge complaints with competent authorities in the Participant’s country, and/or (g) a list with the names and addresses of any potential recipients of the Participant’s personal data.  To receive clarification regarding the Participant’s rights or to exercise the Participant’s rights please contact the Company at Analog Devices, Inc., One Technology Way, Norwood, Massachusetts, 02062 U.S.A., Attention: Stock Plan Administrator.

If the Participant agrees with the data processing practices described in this notice, please declare the Participant’s consent by clicking “Accept Your Grant” on the Accepting Your Grants page on Fidelity’s participant website.

Ireland

Exclusion from Termination Indemnities and Other Benefits.  This provision supplements Section 9(b) of the Agreement: 
By accepting the Performance RSUs, the Participant acknowledges, understands, and agrees that the benefits received under the Plan will not be taken into account for any redundancy or unfair dismissal claim.

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