Document:

Exhibit 10.2

 

RESTATED CONSULTING SERVICES AGREEMENT

 

This Restated Consulting Services Agreement
(the “Agreement”) is entered into on August 20, 2018 and effective as of April 29, 2018 (the “Effective
Date”), by and among Wize Pharma Ltd. (Registration Number 520033259), a limited liability company operating under
the laws of Israel with offices at Hanagar 24, PO Box 6653 Hod Hasharon, Israel (the “Company”) and N. Danenberg
Holdings (2000) Ltd. (Registration Number 512950981), a limited liability company operating under the laws of Israel having
its principal place of business at Borochov 4, Hod- Hasharon, (the “Consulting Company”) through Noam Danenberg
I.D. 27868272, an individual residing at Borochov 4, Hod Hasharon (“Mr. Danenberg”). The Company, Consultant and
Mr. Danenberg are hereinafter referred to collectively as the “parties” and individually as a “party”.

 

R E C I T A L S:

 

WHEREAS, the
parties wish to restate their engagement according to the service agreement between them dated September 30, 2015 (the “Prior
Agreement”) subject to and in accordance with the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto intending to be legally bound hereby agree
as follows:

 

		1.	The Provision of the Services.

 

		1.1	The Company hereby extends the engagement of the Consulting Company to provide
the Services (as defined below) through Mr. Danenberg exclusively, and the Consulting Company and Mr. Danenberg hereby agree to
continue providing the Services to the Company through Mr. Danenberg exclusively, as described in this Agreement.

 

In this regard,
the Consulting Company through Mr. Danenberg exclusively shall provide the Company and any of its Affiliates with services typically
performed by a Chief Operating Officer, including general strategic consulting services, as required in the field of business development
and raising funds, all as shall be required from time to time by the Company (the “Consulting Services” or the
“Services”).

 

While acting
as a representative of Consulting Company, Mr. Danenberg shall report to and receive instructions from the Company’s Chief Executive
Officer or such other person designated by the Board of Directors of the Company from time to time.

 

The Services
shall be performed by Mr. Danenberg primarily from the Company’s Israeli offices, however, Mr. Danenberg acknowledges that the
Services may require international and local travel from time to time.

 

		1.2	Mr. Danenberg shall devote his best abilities and best efforts to the performance
of the Services under this Agreement (in accordance with the hours of service mentioned in Section 1.3) and provide the Services
in a skillful, loyal and professional manner in accordance with generally accepted professional practices that are standard within
the industry for top quality providers of similar services.

 

     

     

    

 

		1.3	The exact working days on which Mr. Danenberg shall provide the Services shall
be coordinated and agreed to in advance between the parties based on the Company’s needs and the scope of the Services, provided,
however, that Mr. Danenberg shall not devote less than 80% of his working time (based on an average assessment of 33 weekly hours)
to the performance of the Services. Notwithstanding the preceding sentences of this Section 1.3, and subject to any vacation or
sick day policies of the Consulting Company, in the event Mr. Danenberg is not available to provide the Consulting Services during
18 vacation days per year and/or during 18 sick leave per year, any such absences will not constitute a breach of this Section
1.3, provided, however, that any such absences shall be coordinated in advance (with the exception of a medical emergency) between
the parties. It is hereby clarified that any absence days due to sickness shall not require any medical certificate.

 

		1.4	Mr. Danenberg shall ensure that the Services are provided in accordance with
the provisions of any applicable laws and in a customary manner similar to the provision of consulting services in the industry.

 

		2.	Representation and Warranties of the Consulting Company and Mr. Danenberg.

 

Each of the Consulting
Company and Mr. Danenberg (the “Consulting Parties”) hereby represents and warrants, jointly and severally that:

 

		2.1	The Consulting Company is an Israeli company wholly owned and controlled by
Mr. Danenberg and during the Term of Engagement (as defined below) there shall not be any change in the ownership and control of
the Consulting Company.

 

		2.2	The Consulting Parties have the full power and authority to enter into this
Agreement and to assume all of the obligations pursuant hereto. The obligations of the Consulting Parties under this Agreement
are legal, valid and binding obligations and the execution of this Agreement and the performance of the Services hereunder by each
will not conflict with, or result of any breach under, any other agreement or contract to which either is a party. The execution
of the Agreement does not conflict with the organizational documents of the Consulting Company. No approval, authorization, notice
to or consent of any other party is required in connection with the Consulting Parties’ execution of this Agreement.

 

		2.3	Mr. Danenberg has the requisite qualifications, knowledge and experience to
render the Services (as defined herein) and fulfill the obligations set forth in this Agreement.

 

		2.4	In the provision of the Services, Mr. Danenberg undertakes to follow the Company’s
procedures and/or policies as established or amended from time to time by the Company, including relating to computers and e-mail
uses attached hereto as Appendix A.

 

		2.5	Mr. Danenberg shall provide reports to the Company as required from time to
time, in response to the Company’s demands and shall provide additional reports on his own initiative relating to his ongoing
activities with respect to the provision of the Services and addressing any difficulties or challenges that occur or are expected
to occur during the provision of the Services and other information of any kind which, in the circumstances of the case, should
be brought before the Company.

 

		2.6	The Consulting Company is not a manpower company and it has, and will have
throughout the Term of Engagement (as defined below), all approvals, permits, insurances and licenses required (if at all) pursuant
to applicable legislation to provide the Services in accordance with this Agreement.

 

		2.7	The Consulting Company complies with the legal bookkeeping requirements under
all applicable laws. The Consulting Company shall be properly registered at the authorities of Income Tax, Value Added Tax and
National Insurance throughout the Term of Engagement.

 

    	 	2	 

     

    

 

		3.	Loyalty and prohibition of conflict of interests.

 

		3.1	During the Term of Engagement, the Consulting Parties shall refrain from any
action that constitutes a conflict of interest in the provision of Services. The Consulting Parties shall not compete with Parent
and/or Company in the field of ophthalmology at any time during the Term of Engagement or for a period of 6 months following the
Term of Engagement.

 

		3.2	In addition, the Consulting Parties shall not accept, directly or indirectly,
any payment or any benefit, directly or indirectly, from anyone who exists, maintains or wishes to maintain contact with them,
due to the Consulting Parties’ provision of the Services to the Company and/or from whoever exists, maintains or wishes to
maintain business relations with the Company, during the Term of Engagement. In the event that either of the Consulting Parties
breach this Section 3.2, without derogating from any of the Company’s right by law or contract, such benefit or payment shall
become the sole property of the Company and/or the Company may set-off such amount from any sums due to the Consulting Company.

 

		3.3	The Consulting Parties undertake to notify the Company immediately and without
delay regarding any matter or subject in respect of which it or Mr. Danenberg has a personal interest and/or which has the potential
of creating a conflict of interest with respect to the provision of the Services. Moreover, upon execution of this Agreement, the
Consulting Parties represent that each of them does not have any matter that may constitute a conflict of interest with the services
of Mr. Danenberg to the Company.

 

		3.4	The Consulting Parties undertake to fulfill the responsibilities described
in this Agreement and to assist the Company, the Affiliates and to make Mr. Danenberg available, even following the termination
of its relations with the Company, for any reason, in any matter which the Company may reasonably request his assistance, including
for the purpose of providing any information relating to the Services or actions taken by Mr. Danenberg and including in the framework
of disputes (including legal or quasi-legal proceedings). If the Company requires Mr. Danenberg’s services after the termination
of the Services, for any reason, the Company shall reimburse Consulting Company for its expenses in connection with performing
the provisions of this Section 3.4.

 

		4.	Reserved

 

		5.	Term of Engagement.

 

		5.1	The engagement of the Consulting Parties under the Prior Agreement commenced
on April 29, 2015 (such date, the “Commencement Date”). This Agreement is effective as of April 29, 2018 (the
“Effective Date”). For avoidance of any doubt, the Prior Agreement was in effect between the period as of April
1, 2015 and until April 28, 2018.

 

The term of
engagement shall continue in effect from the Effective Date and end on the third anniversary of the Effective Date (the “Term
of Engagement”). The engagement according to this Agreement may be terminated only after the Term of Engagement by either
party subject to the delivery of a prior written notice by the terminating party of 120 days (the “Notice Period”).
It is hereby clarified and agreed that in case that the engagement is terminated by the Company, other than for Cause, the Consulting
Company shall be entitled to the Service Fees and all other entitlements (including bonuses as detailed in the Agreement) until
the completion of the Term.

 

    	 	3	 

     

    

 

		5.2	Notwithstanding the foregoing, the Consultant Company may terminate the engagement
for “Good Reason” in the event the Company breaches this Agreement which shall include any (i) reduction in the Service
Fees, bonus or benefits, (ii) any assignment to the Consulting Company and/or Mr. Danenberg of duties materially inconsistent with
the Consulting Services, (iii) resignation of Mr. Danenberg due to sickness that would entitle him to severance pay in accordance
with Section 6 to the Severance Pay Law should he was employed by the Company, (iv) a material adverse change in the reporting
structure applicable to Consulting Company and/or Mr. Danenberg without their consent, such that the title or position of the person
or entity to whom the Consulting Company and/or Mr. Danenberg report is materially reduced from the prior title or position resulting
in a material reduction in status or position to the Consulting Company and/or Mr. Danenberg; (v) any material diminution in the
Consulting Company’s and/or Mr. Danenberg’s duties, responsibilities or authority, which remains uncured for a period of more than
thirty (30) days after written notice of such breach and the Consulting Company’s and/or Mr. Danenberg’s intention to terminate
the engagement for “Good Reason” if such breach is not remedied or (vi) any other circumstance that entitles employees
to resign under Section 11(a) of Severance Pay Law should Mr. Danenberg was an employee of the Company which remains uncured for
a period of more than thirty (30) days after written notice of such breach and the Consulting Company’s and/or Mr. Danenberg’s
intention to terminate the engagement for “Good Reason” if such breach is not remedied. If the Consulting Company terminates
the engagement as provided herein, then such termination shall be effective immediately without any need to provide a prior notice.
Additionally, in case of termination for “Good Reason” the Consulting Company shall be entitled to the Service Fees and
all other entitlements (including bonuses as detailed in the Agreement) until the completion of the Term.

 

		5.3	Notwithstanding the foregoing, the Company may, at any time following the
Effective Date, terminate this Agreement for Cause immediately by provision of a written notice, (and without the prior written
notice referred to above or any payment regarding prior written notice), in which case the termination date of this Agreement shall
be the effective date of such notice of immediate termination. For purposes of this Agreement, “Cause” shall
mean any of the following circumstances:

 

		5.3.1	Commission of a felonious crime related to the provision of the Services,
breach of trust, willful misconduct or gross negligence in the performance of any of the Consulting Company’s or Mr. Danenberg’s
duties to the Company or Company’s parent (the “Parent”) which creates or has the potential to create
a material adverse effect on the business, reputation or financial condition of the Company, its funds, property, assets, employees,
or customers; or

 

		5.3.2	An injunction of receivership and/or dismantling and/or bankruptcy, temporary
or permanent, has been issued against Mr. Danenberg or the Consulting Company (as relevant), and/or a creditor settlement request
or any similar injunction has been filed against Mr. Danenberg or the Consulting Company; or

 

    	 	4	 

     

    

 

		5.3.3	Mr. Danenberg ceases to be a controlling shareholder1
of the Consulting Company or

 

		5.3.4	Other circumstances that would potentially result in Mr. Danenberg’s
being denied severance pay under applicable law, if Mr. Danenberg were an employee of the Company and any of the Affililiates;
or

 

		5.3.5	Either the Consulting Company and/or Mr. Danenberg is in breach of their respective
obligations regarding confidentiality, non-competition, non-solicitation and intellectual property, as described in this Agreement.

 

		5.4	The Consulting Parties undertake that immediately upon the termination of
its engagement with the Company hereunder, for any reason, Consulting Company and Mr. Danenberg shall act as follows:

 

		5.4.1	To promptly deliver and/or return to the Company all the documents, letters,
notes, reports and other papers in Consulting Company’s or Mr. Danenberg’s possession and relating to the Services and the
fulfillment of its duties, as well as any equipment and/or other property belonging to the Company which was placed at Consulting
Company’s or Mr. Danenberg’s disposal; and

 

		5.4.2	To promptly delete any information relating to the Company or its business
from Consulting Company’s or Mr. Danenberg’s personal computer, if any; and

 

		5.4.3	To promptly coordinate the termination of the provision of the Services, and
to transfer in an orderly fashion and in accordance with Company procedures and in accordance with the timetable reasonably determined
by the Company, to cooperate in transferring all documents and information and all matters with which he dealt during the provisions
of the Services to whomever and/or whatever entity the Company instructs, all in a manner reasonably satisfactory to the Company.

 

		6.	Compensation.

 

		6.1	Service Fees: In consideration for the performance of the Consulting
Services in accordance with this Agreement, the Company shall pay to the Consulting Company a total monthly payment as set forth
on Appendix A (the “Service Fees”). The Company shall pay the Consulting Company the Service Fees on
the 10th business day of each month in arrears following the Company’s receipt of the tax invoice from the Consulting Company.
The Consulting Company will provide the Company with a proper tax invoice together with a monthly hour log no later than the 5th
day of each calendar month in respect of the previous month.

 

		6.2	The Consulting Company is the sole employer of Mr. Danenberg and, in such
capacity, the Consulting Company solely shall bear sole responsibility for the payment of Mr. Danenberg’s salary, social and/or
other rights as an employee under any law and/or under any agreement and/or collective and/or other arrangement. The Consulting
Company undertakes to duly and timely compensate Mr. Danenberg, at its sole expense, a salary and all other payments and benefits
required under applicable law, including wages, annual vacation pay, convalescence, advance notice fees social benefits and severance
pay. The Consulting Company shall be responsible for the timely payment of all taxes and all other statutory deductions as Mr.
Danenberg’s sole employer, including income taxes, national insurance and employee’s part of the pension arrangement. The
Consulting Company and Mr. Danenberg are independent consultants and not employed by the Company.

 

 

	1	For purposes of this Agreement, “controlling shareholder” shall mean the power to direct the management and policies
of a company whether through the ownership of voting securities, by contract, or otherwise.

 

    	 	5	 

     

    

 

		6.3	Reimbursement of General Expenses: In addition to the Service Fees,
the Company will reimburse Consulting Company for all reasonable business expenses exclusively and properly incurred by it or by
Mr. Danenberg relating directly to performance of the Services in accordance with this Agreement as set forth on Appendix A,
including those expenses related to Internet, the use of a mobile phone, indemnification coverage, reimbursement of other business
expenses, professional training and professional literature. The Consulting Company shall also be entitled to reimbursement for
reasonable expenses for business related vehicle expenses of Mr. Danenberg up to a gross monthly amount as set forth on Appendix
A. Reimbursement of such expenses is subject to and conditional upon (i) Mr. Danenberg’s providing the Company with all
expenses report and receipts or other supporting documents as the Company may reasonably require in respect of those expenses,
(ii) approval of such report by the Company’s Chief Financial Officer or anyone on his behalf and (iii) the Company’s policy for
reimbursement of business expenses for strategic consultants (including regarding the expenses amount and payment dates), as such
policy may be amended from time to time.

 

		6.4	Expenses related to vehicles: Pursuant to the Company’s compensation
policy, the Consulting Company shall also be entitled to reimbursement for reasonable expenses for business related vehicle expenses
of Mr. Danenberg up to a gross monthly amount as set forth on Appendix A.

 

		6.5	Updating the Service Fees subject to meeting objectives: The Service
Fees may be adjusted upward at the discretion of the Compensation Committee of Parent.

 

Notwithstanding the foregoing,
the Service Fees shall be increased by 10%, upon completion of the uplisting of the Parent on, NYSE American, The Nasdaq Global
Select Market, The Nasdaq Global Market, The Nasdaq Capital Market or The New York Stock Exchange, Inc.

 

In addition to the above, the
Service Fees shall be increased by an additional 10% upon completion of the Phase IV study randomized, double-masked study of LO2A
versus Alcon’s Systane® Ultra UD, an over-the-counter lubricant eye drop product used to relieve dry and irritated
eyes which is intended to evaluate the safety and efficacy of LO2A for symptomatic improvement of DES in 60 adult patients with
Sjögren’s.

 

In addition to the above, the
Service Fees shall be increased by NIS 10,000 upon each final closing of a financing of the Parent or the Company
during the course of the engagement of the Consulting Company in which the Company raises and actually receives an aggregate amount
of USD $4,000,000. For removal of doubt, it is hereby clarified that the financing amounts mentioned above shall exclude any finder’s
fees, closing costs, legal and accounting fees, etc. and such costs will not be deemed to be deducted from the financing amounts
received in the framework of a financing round when determining the amounts actually received by the Company for purposes of calculating
fee increases due to be paid to the Consulting Company under this Section.

 

    	 	6	 

     

    

 

The increased Service Fees as
described in this Section 6.5 shall be referred as the Service Fees for all purpose and intent. 

 

For avoidance of any doubt, the
increases under this Section 6.5 shall refer to the Service Fees as shall be updated from time to time immediately prior to each
increase.

 

		6.6	Transaction Grant: In addition to the above, the Consulting Company
will be entitled to 1% of the gross value proceeds (including without limitation cash, stocks, options, compensation, deferred
compensation, etc.) received by the Company and/or a Wize Party’s consummation of a Material Transaction during the Employment
Period. “Material Transaction” means (i) the sale of a Wize Party, (ii) the sale of all or substantially all
of the assets of a Wize Party, (iii) a stock purchase agreement or other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of arrangement) with another entity whereby such other entity acquires more
than the 50% of the outstanding capital of a Wize Party, (iv) a debt or equity financing transaction consummated by a Wize Party
that is deemed to be a Material Transaction by the Parent’s Board of Directors, (v) a licensing agreement between a Wize
Party and a third party or (vi) any other transaction deemed to be a Material Transaction by the Parent’s Board of Directors
(each a “Transaction Grant” and collectively, the “Transaction Grants”) in its sole discretion.
“Wize Party” means the Company, the Parent or an entity that is wholly or partially owned by the Company or
the Parent.

 

The Transaction
Grant shall be paid to the Consulting Company 10 days following the receipt of the total net proceeds (whether paid in cash or
cash equivalent) to be received by the Company or anyone on its behalf in connection with a Material Transaction.

 

		6.7	Reserved.

 

		6.8	Annual Bonus

 

The Consulting
Company may receive an annual cash bonus at the discretion the Board.

 

		6.9	Directors and Officers Insurance: The Company and the Parent will provide
coverage for the Consulting Company and Mr. Danenberg under any Directors and Officers insurance coverage the Company made available
to executive officers of the Company and the Parent. In addition, the Company shall indemnify Consulting Company and Mr. Danenberg
in advance as customary at the Company and subject to the Company’s Article of Association and the applicable law. The Company
shall maintain such Directors and Officers insurance coverage with the same terms and conditions for a period of 7 years after
the termination of engagement, including in case of a merger or a change of control, per the Consulting Company’s request.

 

		6.10	For the avoidance of doubt, it is hereby clarified that the Service Fees and
the explicit additional benefits described herein represent the total consideration for Services, and the Consulting Company and/or
Mr. Danenberg shall not be entitled to any additional consideration, benefit or right of any kind. It is hereby agreed that Value
Added Tax shall be added to all amounts mentioned in Section 6.

 

		6.11	Any tax liability in connection with the compensation or benefits according
to this Agreement shall be borne solely by the Consulting Company. The Company shall withhold any amounts from payments made to
Consulting Company under this Agreement to the extent necessary to comply with any law of the State of Israel, including deduction
of tax at source, unless Consulting Company presents thereto the appropriate approvals exempting the Company from so doing.

 

    	 	7	 

     

    

 

		6.12	Notwithstanding the above, Section 6 shall be subject to the provisions of
the compensation policy for remuneration of the Company officers, as shall be applicable and amended from time to time.

 

		6.13	Clawback RightsThe Service Fees, the Transaction Grant and
any additional stock based compensation (collectively, the “Clawback Benefits”) shall be subject to “Clawback
Rights” as follows: during the Engagement Period and for a period of three (3) years thereafter, if there is a restatement
of any financial results from which any Clawback Benefits to the Consulting Company shall have been determined, the Consulting
Company agrees to repay any amounts which were determined by reference to any Company financial results which were later restated
(as defined below), to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that would have been
paid, based on the restatement of the Company’s financial information. All Clawback Benefits amounts resulting from such
restated financial results shall be retroactively adjusted by the Compensation Committee to take into account the restated results,
and any excess portion of the Clawback Benefits resulting from such restated results shall be immediately surrendered to the Company
and if not so surrendered within ninety (90) days of the revised calculation being provided to the Executive by the Compensation
Committee following a publicly announced restatement, the Company shall have the right to take any and all action to effectuate
such adjustment. The calculation of the revised Clawback Benefits amount shall be determined by the Compensation Committee in good
faith and in accordance with applicable law, rules and regulations. All determinations by the Compensation Committee with respect
to the Clawback Rights shall be final and binding on the Company and the Consulting Company. The Clawback Rights shall terminate
following a Change of Control, subject to applicable law, rules and regulations. For purposes of this Section 6.14, a restatement
of financial results that requires a repayment of a portion of the Clawback Benefits amounts shall mean a restatement resulting
from material non-compliance of the Company with any financial reporting requirement under the federal securities laws and shall
not include a restatement of financial results resulting from subsequent changes in accounting pronouncements or requirements which
were not in effect on the date the financial statements were originally prepared (“Restatements”). The parties acknowledge
it is their intention that the foregoing Clawback Rights as relates to Restatements conform in all respects to the provisions of
the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) and require recovery
of all “incentive-based” compensation, pursuant to the provisions of the Dodd-Frank Act and any and all rules and regulations
promulgated thereunder from time to time in effect. Accordingly, the terms and provisions of this Agreement shall be deemed automatically
amended from time to time to assure compliance with the Dodd-Frank Act and such rules and regulations as hereafter may be adopted
and in effect.

 

		7.	Indemnification. The Consulting Company will take all necessary precautions
to prevent injury to any persons or damage to property in performing the Services under this Agreement, and will defend, indemnify,
and hold the Company and the Affiliates, successors, employees, agents and directors harmless against all claims, losses, liabilities,
costs, damages, and expenses (including reasonable attorneys’ fees) resulting from any act, omission or negligence on Consulting
Company’s or Mr. Danenberg’s part in the performance or failure to perform the scope of work under this Agreement.

 

    	 	8	 

     

    

 

		8.	Confidentiality, Non-Competition, Intellectual Property and IP Assignment

 

		8.1	Contemporaneously with the execution of this Agreement the Consulting Company
and Mr. Danenberg shall sign the Non-Disclosure, Non-Competition, Intellectual Property and IP Assignment Agreement (the “Non-Disclosure
and Non-Competition Agreement”) in favor of the Company and any subsidiary and the Parent, attached hereto as Appendix
C.

 

		8.2	It is acknowledged and agreed that the terms and conditions of this Agreement
have been determined in part, inter alia, in consideration of this and the Consulting Company and Mr. Danenberg undertakings under
Appendix C and constitute sufficient consideration for the Consulting Company and Mr. Danenberg’s obligations hereunder
and thereunder.

 

		9.	Independent Consulting Company Relationship.

 

		9.1	Each of the Consulting Company and Mr. Danenberg acknowledges that the terms
of this Agreement and the relationship between the parties were explained to Mr. Danenberg and Mr. Danenberg communicated that
he fully understands the Agreement and the relationship. The Company would like to engage the services of Mr. Danenberg and the
Company has offered and is willing to engage Mr. Danenberg as an employee of the Company, while Mr. Danenberg has specifically
requested that the Company engages him as an external independent contractor through Consulting Company, for his own financial
and other considerations and the Company desires to receive Services from Mr. Danenberg.

 

Each of the
Consulting Company and Mr. Danenberg hereby declares and undertakes that its relationship with the Company will be that of an independent
consultant and nothing in this Agreement should be construed to create a partnership, joint venture, or employer-employee relationship
between the Company and Consulting Company and/or Mr. Danenberg.

 

		9.2	Consulting Company hereby declares and undertakes that it or Mr. Danenberg
is not the agent of Company and each of them (Mr. Danenberg or the Consulting Company) is not authorized to make any representation,
contract, or commitment on behalf of the Company without prior explicit written approval from the Company.

 

		9.3	Consulting Company has the sole and complete liability for Mr. Danenberg engagement
with the Company as his sole employer in any aspect whatsoever including, inter alia, obligations such as payment of taxes, National
Insurance, disability, salary, pension arrangement, social benefits, severance pay, disability insurance and other contributions
based on fees paid to Mr. Danenberg. The Company will be entitled to demand evidence from the Consulting Company for such payments.
The Consulting Company hereby declares that it has, is and will continue to (a) pay during the Term of this Agreement to Mr. Danenberg
all payments, including without limitation, salary, social benefits, as the sole employer of Mr. Danenberg, (b) have a professional
liability insurance that covers, inter alia, all services that shall be provided by the Consulting Company through Mr. Danenberg
according to this Agreement, omission or negligence on Consulting Company’s or Mr. Danenberg’s part in the performance or
failure to perform the scope of work under this Agreement and the Consulting Company has been and is in compliance with all applicable
labor law with respect thereto.

 

		9.4	Consulting Company agrees that it and/or Mr. Danenberg will not be entitled
to any right or benefit from the Company that derives from employer-employee, or to any right or benefit that the Company may make
available to its employees, such as manager insurance/pension fund/group insurance, profit sharing or retirement benefits.

 

		9.5	Consulting Company will be solely responsible for all tax returns and payments
required to be filed with or made to any tax authority with respect to Consulting Company’s performance of the Services by
Mr. Danenberg and receipt of fees under this Agreement. Because Consulting Company is an independent contractor, the Company will
not withhold or make payments for National Insurance Institute or obtain worker’s compensation insurance on Consulting Company’s
behalf.

 

    	 	9	 

     

    

 

		9.6	Consulting Company and Mr. Danenberg, jointly and severally, will indemnify
and hold Company harmless from and against all direct damages, liabilities, losses, penalties, fines, expenses and costs (including
reasonable fees and expenses of attorneys and other professionals) arising out of or relating to any obligation imposed by law
on Company to pay any withholding taxes (including penalties and interest, and the Company shall be entitled to require Consulting
Company to produce evidence of effecting the payments as aforesaid), social security, health insurance or disability insurance
or similar items in connection with compensation received by Consulting Company pursuant to this Agreement.

 

		9.7	Consulting Company and Mr. Danenberg undertake that they or anyone on their
behalf shall not claim, demand, sue or bring any cause of action against the Company in connection with alleged employer-employee
relations between each of them and the Company, and if it or any one on its behalf or third party does so, it shall indemnify the
Company upon its first demand for any expense that may be occasioned to it in respect of, or in connection with, a claim as aforesaid,
including expenses of attorneys and other professionals.

 

		9.8	If, for any reason whatsoever a competent authority, including a judicial
body or government authority, determines that the Consulting Company or Mr. Danenberg is the Company’s employee and thus
entitled to the benefits of an employee, the following provisions shall apply:

 

		9.8.1	In lieu of the consideration that was paid to the Consulting Company from
the commencement of this Agreement, the Consulting Company or Mr. Danenberg shall be deemed only entitled to gross consideration
equal to 50% of the consideration paid under this Agreement (the “Adjusted Consideration”) from the date of
the commencement of this Agreement. Such Adjusted Consideration reflects the salary as if Mr. Danenberg were and an employee without
the additional Company’s cost that was taken into account in order to calculate the compensation as described above (such additional
Company’s cost includes without limitation fringe benefits as severance pay, vacation pay, sick leave, social arrangement, travel
expenses and payment of national insurance that have been paid by the Company to the Consulting Company through the compensation
during the consulting period).

 

		9.8.2	The Consulting Company undertakes to immediately repay to the Company any
amount paid from the Commencement Date in excess of the Adjusted Consideration (the “Surplus Sum”), such being
linked to the Israeli consumer price index (the base index – the index known on the date of each payment made under
this Agreement; the new index – the index known on the date of actual refund by the Consulting Company).

 

		9.8.3	The Company will be entitled to set off the said Surplus Sum (or any part
of it) against the sum that is owed to the Consulting Company in accordance with this Agreement, or in accordance with a competent
authority’s decision, and this without derogating from the rights of the Company to receive the Surplus Sum.

 

		9.9	The Consulting Parties acknowledge that the Company is entering into this
Agreement based, among other things, on the representations and agreements as stated in this Section 9 and the Company relies on
their accuracy and completeness and the Consulting Parties’ good faith in providing them and that the compensation according
to this Agreement already includes the entire cost of the wage for which Mr. Danenberg was employed as a salaried employee of the
Company, including salary, social benefits, severance pay, vacation pay, annual leave.

 

    	 	10	 

     

    

 

	10.	General Provisions

 

		10.1	Unless explicitly stated otherwise in this Agreement, the Consulting Parties
shall bear all tax liabilities for any payment and or benefit of any kind given by the Company.

 

		10.2	The Company may deduct from any amount it is required to pay to the Consulting
Parties hereunder any debt owed to the Company by either Consulting Party.

 

		10.3	In case any one or more of the provisions contained in this Agreement shall,
for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. If moreover, any one or more of the provisions contained in this Agreement shall for
any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting
and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

 

		10.4	This Agreement shall be governed by and constructed in accordance with the
laws of the State of Israel. The parties hereby expressly consent to the exclusive jurisdiction of the court located in Tel-Aviv,
Israel, and all disputes or claims arising out of or related to this Agreement shall be exclusively resolved by the courts located
in Tel-Aviv, Israel.

 

		10.5	This Agreement may not be assigned by the Consulting Parties without the Company’s
prior and written consent, and any such attempted assignment shall be void and of no effect.

 

		10.6	No waiver by a party of any breach of this Agreement shall be a waiver of
any preceding or succeeding breach. No waiver by a party of any right under this Agreement shall be construed as a waiver of any
other right .

 

		10.7	This Agreement is the final, complete and exclusive agreement of the parties
with respect to the subject matter hereof and supersedes and merges all prior discussions between the parties. No modification
of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed
by the party to be charged.

 

 

[Signature page follows]

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement on the date first written above.

 

IN WITNESS
WHEREOF THE PARTIES HAVE SET THEIR HANDS HERETO AS OF THE DATE FIRST WRITTEN ABOVE:

 

	COMPANY:	 	 	 
	 	 	 	 	 
	WIZE PHARMA LTD.	 	 	 
	 	 	 	 	 
	Signature:  	/s/ Yossi Keret	 	Signature:  	/s/ Or Eisenberg
	Name: 	Yossi Keret	 	Name: 	Or Eisenberg
	Title: 	Director	 	Title: 	Director

 

	WIZE PHARMA, INC., only with	 	 	 
	respect to Sections 6.5, 6.6 and 6.13	 	 	 
	 	 	 	 	 
	Signature: 	/s/ Yossi Keret	 	Signature:  	/s/ Or Eisenberg
	Name: 	Yossi Keret	 	Name: 	Or Eisenberg
	Title: 	Director	 	Title: 	Director

 

	CONSULTING PARTIES:	 
	 	 	 
	N. DANENBERG HOLDINGS (2000) LTD.	 
	 	 	 
	Signature: 	/s/ Noam Danenberg	 
	Name: 	Noam Danenberg	 
	Title:	 	 
	 	 	 
	Signature: 	/s/ Noam Danenberg	 
	Name: 	Noam Danenberg, in his	 
	 	Individual capacity	 

 

    	 	12	 

     

    

 

Appendix
A

Compensation
and Other Benefits

 

	Consulting Parties	
        N. Danenberg Holdings (2000) LTD.

        Noam Danenberg

	Address of Consulting Parties 	
        Consulting Company: Borochov 4, Hod- Hasharon, Israel

        Mr. Danenberg: Borochov 4, Hod- Hasharon, Israel

	Position	COO (as described in the Agreement)
	Appointment percent	80% position (full time)
	Commencement Date	April 29, 2018
	Service Fee	40,000 NIS, which shall be increased As described in the Agreement.
	Bonuses	As described in the Agreement.
	General Expenses	5,000 NIS
	Car Allowance	4,500 NIS (instead of statutory travel expenses from home to the office and back)
	Notice Period	
        120 days

 

    	 	13	 

     

    

 

Appendix
B

Company
policy regarding use of computer systems, internet browsing and company email

 

1.
It is strictly forbidden to make use of the Company’s 2 computers, internet browsing or Company email for any
purposes which are illegal, inappropriate or unsuitable, including accessing inappropriate or unsuitable websites (such as pornographic
websites). It is additionally forbidden to install any programs on the Company’s computer systems, or make use of any such
system to transfer materials unrelated to work or detrimental to the Company, its clients, employees, consultants or any other
third party. Misuse of the Company’s computers, internet browsing or company emails may cause considerable harm to the company
or other third parties, as well as the computer systems themselves and their users. If in doubt, please refer to the Company’s
IT Manager.

 

2. We
would like to clarify that the Company does not forbid private use of the computer made available to you for work purpose or the
office internet connection, within reasonable bounds, and while always maintaining confidentiality, without derogating from work
requirements and subject to Section 1 above. Nonetheless, it is important to clarify that due to the nature of the Company computer
systems, network operational maintenance requirements, as well as for the implementation of this Section 2, the Company may block
certain websites from access, and the Company’s IT Manager may access any computer on the Company’s network, and accordingly,
any information found on your computer may be exposed to the Company’s IT Manager and your superiors.

 

3. In
case that the company provides you with an e-mail account for the services, it is exclusively for professional use as required
within the scope of your duties relating to providing services and/or position in the Company. Therefore, the Company shall be
entitled to monitor and conduct surveillance of the communicated data in any such professional mailbox. You are aware, and hereby
consent that the Company shall be permitted to access the contents of such mailbox, should an urgent professional need arise or
in case there is grave concern or reasonable grounds for concern regarding activity which is illegal or harmful to the Company
or any third party (including violation of the terms above), or in any other case in accordance with the law. Such monitoring
shall be conducted proportionally, in adherence to the goals as stated above, and the information, if aggregated, shall be stored
solely for the period of time required for the purposes as stated above. The monitored information, if and any as such, shall
not be transferred to any third party, excluding the security and support service provider of the Company’s computer systems,
any security and support service provider which shall replace it in the future, or in accordance with the law, subject to the
aforementioned. Accordingly, any information found in the professional electronic mailbox may be accessible to the Company, and
as such it should be taken into account that any private use of the professional mailbox should be avoided. At the expiration
of your engagement with the Company, any private correspondence saved in the professional mailbox must be removed (if any such
correspondence exists despite the above) and any information found in the professional mailbox (which should contain solely professional
correspondence) shall be exposed to the relevant parties in the Company. If you wish to do so, you may make private use of electronic
mail correspondence using a private and external mail service (such as gmail), with which you may send and receive private correspondence
which will not be exposed to the Company, and so long as such use is made reasonably and in adherence to the Company policy as
stated above.

 

4. It
is also clarified that the Company may allow other employees, consultants and other third parties and use the personal laptop /
laptop that is given to you for your services. Since the computer, e-mail, corporate network and internet connection are provided
for professional purposes only, the Company has the right to disconnect you from such systems at its sole discretion at any time.
Without prejudice to the foregoing, it is prohibited to leave these tools and / or to give access to any of these tools without
supervision and / or contrary to the Company’s policy. In any case where there is a concern that another party, other than you,
has access to these tools (for example, in the event of password disclosure, theft and / or loss), contact the computer administrator
immediately.

 

 

2
All terms not defined herein shall have the meaning ascribed to them in the Service Agreement.

 

    	 	14	 

     

    

 

5. In
addition, you are to avoid using the Internet in general and social networks in particular in a manner that is likely to create
the impression that your private use of the social networks is on behalf of the Company and/or or in its name. Thus, for example,
it is forbidden to upload pictures or other information connected to the Company or the Company’s events or the Company’s employees,
or make use of the Company’s name or any insignia in a manner that indicates that your publication is an official publication of
the Company, as opposed to your private publication, upon your own authority. In any event of doubt, you may contact the IT Manager
with any questions.

 

6. For
the avoidance of any doubt, the Company’s IT Manager, anyone acting on your behalf, and any other person who has access to
the e-mail, computer and the various folders, are to refrain from any use at all of the information therein, including its publication
or any other personal use, beyond the purposes delineated in this policy, and to keep this information in strictest confidence.

 

7. It
is preferable, that during your absence from work, for whatever reason, you leave an orderly “out of office” email message
with the date of your return and a referral to whomever is substituting for you during the period of your absence.

 

8. You
undertake that, at the termination of your engagement, you transfer the content of the computer and your email account, as is,
to the IT Manager. If you wish to delete personal and private files or to remove them from the computer – this shall be done
only with the approval of and in coordination with the IT Manager.

 

9. After
termination of your engagement, the Company, by means of the direct supervisor and IT Manager, shall be entitled to access your
computer, email account and folders.

 

10. You
are required to keep current regarding the Company’s policy of computer use as will be updated from time to time.

 

I hereby read and declare I read this Appendix
B, understood its provisions and agree thereto.

 

	/s/ Noam Danenberg	 	Date: 8-20-18
	 	 	 
	Consulting Company	 	 

 

I hereby confirm that I, Mr. Danenberg,
have read this Agreement, understood its terms and agree to be personally bound by all its terms and provisions.

 

	/s/ Noam Danenberg	 	Date: 8-20-18

 

    	 	15	 

     

    

 

Appendix C – CONFIDENTIALITY
AND NON-COMPETE AGREEMENT

 

This CONFIDENTIALITY AND NON-COMPETE
AGREEMENT (this “Agreement”) dated as of August 20, 2018 (the “Effective Date”) among
Wize Pharma Ltd. (Registration Number 520033259), an Israel limited liability company with offices at Hanagar 24, PO Box
6653 Hod Hasharon, Israel (the “Company”), N. Danenberg Holdings (2000) Ltd. (Registration Number 512950981),
an Israel limited liability Company having its principal place of business at Borochov 4, Hod- Hasharon, Israel (the “Consulting
Company”) and Noam Dannenber, an individual residing at Borochov 4, Hod- Hasharon, Israel (“Mr. Danenberg”).

 

WHEREAS,
the Company engages the Consulting Company to provide certain services exclusively through Mr. Danenberg, and the Consulting Company
accepts such engagement; and 

 

WHEREAS,
it is critical for the Company to preserve and protect its Confidential Information (as defined below), its rights in Inventions
(as defined below) and in all related intellectual property rights, and Consulting Company and Mr. Danenberg (the “Consulting
Parties”) are entering into this Undertaking as a condition to consulting agreement with
the Company.

 

NOW,
THEREFORE, in consideration of the mutual promises and herein, the Consulting Parties agree as follows:

References herein to the term “Company” shall
include any of the Company’s direct or indirect parent, subsidiary and affiliates companies, and their respective successors
and assigns.

 

The Consulting
Parties agree that during the Term of the Engagement and thereafter, the Consulting Parties shall maintain in complete confidence
any matters that relate to the Company, its affairs or business, including regarding the terms and conditions of it engagement,
and that it shall not harm its goodwill or reputation, and it agrees to the provisions of the confidentiality, non-competition,
non-solicitation and intellectual property clauses as specified below.

 

For avoidance
of any doubt, it is hereby clarified that the Consulting Parties’ obligations and representations and the Company’s rights
under this Agreement shall apply retroactively as of the commencement of the parties’ engagement, regardless of the Effective Date.

 

The Consulting Parties’ obligations
under this Agreement derive from the services provided by the Consulting Parties to the Company, along with all matters connected
therewith, and the terms and conditions of the Consulting Parties engagement pursuant to the Service Agreement, including its compensation
and benefits, have been determined in part, inter alia, in consideration of this undertaking and constitute sufficient consideration
for the Consulting Parties obligations hereunder.

 

	1.	Confidentiality

 

		1.1	The Consulting Parties undertake to maintain the Confidential Information
(as defined below) of the Company during the Term of Engagement and after the termination of such, for any reason.

 

		1.2	Without derogating from the generality of the foregoing, the Consulting
Parties hereby agree to not, directly or indirectly, disclose or transfer to any person or entity, at any time, either during or
subsequent to its engagement with the Company, any trade secrets or other confidential information, whether patentable or not,
of the Company, including but not limited to, any (i) processes, formulas, trade secrets, innovations, inventions, discoveries,
improvements, research or development and test results, survey, specifications, data and know-how; (ii) marketing plans, business
plans, strategies, forecasts, unpublished financial information, budgets, projections, product plans and pricing; (iii) personnel
information, including organizational structure, salary, and qualifications of employees; (iv) customer and supplier information,
including identities, product sales and purchase history or forecasts and agreements; and (v) any other information which is not
known to the public (collectively, “Confidential Information”), of which the Consulting Parties are or become
informed or aware of during the Term of Engagement, whether or not developed by the Consulting Parties or any one on their behalf.

 

    	 	16	 

     

    

 

		1.3	The Consulting Parties undertake not to directly or indirectly give or transfer,
directly or indirectly, to any person or entity, any material, raw material, product, part of a product, model, document or other
information storage media, or any photocopied, printed or duplicated object containing any or all of the Confidential Information.

 

		1.4	The Consulting Parties undertake that the Company may receive from third
parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s
part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the term of the
Consulting Parties’ relationship with the Company, and thereafter, the Consulting Parties will hold Third Party Information in
the strictest confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection
with their work for the Company) or use, except solely for the purpose of and in connection with his work for the Company, Third
Party Information unless expressly authorized by the Company in writing.

 

		1.5	During the Term of Engagement with the Company the Consulting Parties shall
not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person
to whom the Consulting Parties have an obligation of confidentiality, and the Consulting Parties have not and will not bring onto
the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom
the Consulting Parties have an obligation of confidentiality unless consented to in writing by that former employer or person.

 

		1.6	In the event the Consulting Parties breach any of their obligations herein,
the Consulting Parties shall be liable to compensate the Company in respect of all damages or expenses incurred by the Company
as a result of such breach, including trial costs and legal fees and statutory VAT, without derogating from any other relief or
remedy available to the Company by virtue of any law.

 

	2.	Non-Competition/ Non-Solicitation

 

The Consulting
Parties undertake that during the Term of Engagement with the Company and for a period of 6 months following the Termination of
Engagement:

 

		2.1	The Consulting Parties shall not, anywhere in the world, do business, as
an employee, independent contractor, consultant or otherwise, and shall not directly or indirectly participate in or accept any
position, proposal or job offer that may directly or indirectly compete with or harm the Company, in the field of ophthalmology
(the “Competitive Occupation”).

 

		2.2	Without derogating from the generality of the foregoing, the Consulting
Parties undertake not to maintain any business relations of any type whatsoever, including a proposal to conduct business relations,
directly or indirectly, with any of the Company’s customers, suppliers or agents, including customers, suppliers or agents with
whom the Company conducted negotiations towards an agreement at the time of the termination of its engagement with the Company
or prior thereto.

 

    	 	17	 

     

    

 

		2.3	In addition, the Consulting Parties undertake not to approach, solicit or
recruit any employee of the Company or any consultant, service provider, agent, distributor, customer or supplier of the Company,
to terminate, reduce or modify the scope of such person’s engagement with the Company.

 

		2.4	The foregoing shall apply irrespective of whether the Competitive Occupation
is carried out by the Consulting Company alone or in cooperation with others and shall apply to the participation of the Consulting
Company in a Competitive Occupation, whether as a controlling shareholder or as an interested party.

 

	3	Intellectual Property, Copyright and Patents

 

		3.1	The Consulting Parties hereby acknowledge and agree that the Company exclusively
owns and shall own all right, title and interest in and to any work, products, processes, materials, inventions, texts, algorithms,
designs, sketches, ideas or discoveries, all derivatives, enhancements or improvements thereof and any and all Intellectual Property
Rights associated therewith, created, conceived made or discovered by the Consulting Parties (whether solely or jointly with others)
during the term of engagement; or in connection therewith; or in connection with the Company, its business (actual or contemplated),
products, technology or know how (including during the period prior to commencement of engagement and prior to incorporation of
the Company) (“Company IPR”). “Intellectual Property Rights” means all worldwide (a) patents,
patent applications, designs and patent rights; (b) rights associated with works of authorship, including, but not limited to,
copyrights, copyrights applications, copyrights restrictions, mask work rights, mask work applications and mask work registrations;
(c) rights relating to the protection of trade secrets and confidential information; (d) moral rights, trademarks, service marks,
logos, domain names, trade dress and goodwill; (e) rights analogous to those set forth herein and any other proprietary rights
relating to intangible property including ideas; and (f) divisions, continuations, renewals, reissues and extensions of the foregoing
(as applicable) now existing or hereafter filed, issued, or acquired.

 

		3.2	The Consulting Parties acknowledge and agree that all Company IPR and all
modifications, derivatives and enhancements thereof belong to, and shall be the sole property of, the Company (or its designees)
upon creation thereof. The Consulting Parties hereby irrevocably assign to the Company or its designee and shall assign all right,
title and interest the Consulting Parties may have or may acquire in and to Company IPR upon its creation. The Consulting Parties
acknowledge and agree that no rights relating to any Company IPR are reserved to Consulting Company.

 

The
Consulting Parties will assist the Company, upon Company’s first request, to obtain, and from time to time enforce, any Company
IPR worldwide, including without limitation,  executing, verifying  and delivering such documents and performing
such other acts as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and
enforcing such Company IPR. Such obligation shall remain in effect beyond the termination of the Consulting Parties’ relationship
with the Company, all for no additional consideration, provided that the Consulting Parties shall not be required to bear any expenses
as a result of such assignment. In the event the Company is unable for any reason, after reasonable effort, to secure the Consulting
Parties signatures on any document required, the Consulting Parties hereby irrevocably designate and appoint the Company and its
duly authorized officers and agents as its agent and attorney in fact to act for and on its behalf to further the above purposes.   

  

    	 	18	 

     

    

 

		3.3	The Consulting Parties irrevocably confirm that the consideration explicitly
set forth in the Service Agreement between the Consulting Parties and the Company is inclusive of any and all rights for compensation
that may arise in connection with the Company IPR under applicable law and the Consulting Parties irrevocably waive any legal right
he may have in connection with the Company IPR, including without limitation any right, moral rights or right to claim royalties
or any other additional consideration from the Company with regard to the assigned Company IPR, including without limitation, in
respect of Section 134 of the Patent Law 5727-1967 or other applicable laws. The foregoing waiver relates to any claims or
demands whatsoever, whether in the present, past or future, and whether under contract or other legal or equitable theory.

 

		3.4	The Consulting Parties represent and warrant that upon execution hereof,
it has not created and does not have any right, title or interest in and to any Intellectual Property Rights related, similar to
and/or required for Company’s business, products or Intellectual Property Rights (“Prior Inventions”). The Consulting
Parties undertake to not incorporate any Prior Inventions or third party’s Intellectual Property Rights (including of a former
employer) in any Company IPR.

 

		3.5	The Consulting Parties undertake to immediately inform and deliver IN WRITING
to the Company, written notice of any Company IPR conceived or invented by it or personnel of the Company or its successors who
are subordinate to it, immediately upon the discovery thereof.

 

		3.6	The Consulting Parties obligations pursuant to this Section 3 shall survive
the termination of engagement with the Company or its successors and assigns with respect to inventions conceived by Consulting
Company during the term of its engagement or as a result of its engagement with the Company.

 

	4.	The Consulting Parties acknowledge that the restricted period of time and geographical are as specified hereunder are reasonable,
in view of his position and the nature of the business in which the Company is engaged, the Consulting Company’s knowledge
of the Company’s business and the compensation he receives. Notwithstanding anything contained herein to the contrary, if
the period of time or the geographical area specified herein should be determined to be unreasonable in any judicial proceeding,
then the period of time and area of the restriction shall be reduced so that this Undertaking may be enforced in such area and
during such period of time as shall be determined to be reasonable by such judicial proceeding. The Consulting Parties acknowledge
that the compensation and benefits granted to it by the Company under the Service Agreement were determined, inter alia, in consideration
for his obligations under this Undertaking.

 

	5.	This Agreement and all rights and duties of the parties hereunder shall be exclusively governed by and interpreted in accordance
with the laws of the State of Israel. The competent courts of the State of Israel, Tel Aviv Jaffa district, shall have the exclusive
jurisdiction over the parties with regard to this Undertaking, its execution, interpretation and performance.

 

	6.	Capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to them in the Service Agreement.

 

	7.	This Undertaking is the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior
understandings, agreements and discussions between them, oral or written.

  

[Signature page follows]

 

    	 	19	 

     

    

 

IN WITNESS WHEREOF THE PARTIES
HAVE SET THEIR HANDS HERETO AS OF THE DATE FIRST WRITTEN ABOVE:

 

	COMPANY:	 	 	 
	 	 	 	 	 
	WIZE PHARMA LTD.	 	 	 
	 	 	 	 	 
	Signature:  	/s/ Yossi Keret	 	Signature:  	/s/ Or Eisenberg
	Name: 	Yossi Keret	 	Name: 	Or Eisenberg
	Title: 	Director	 	Title: 	Director

 

	CONSULTING PARTIES:	 
	 	 	 
	N. DANENBERG HOLDINGS (2000) LTD.	 
	 	 	 
	Signature:  	/s/ Noam Danenberg	 
	Name: 	Noam Danenberg	 
	Title:	 	 
	 	 	 
	Signature: 	/s/ Noam Danenberg	 
	Name: 	Noam Danenberg, in his	 
	 	Individual capacity	 

  

 

20Exhibit

EXHIBIT 10.1

LONG-TERM INCENTIVE PLAN
Amended and Restated - August 22, 2018 

 
Prepared by:                                /s/ Christopher L. Hinton                              8/22/2018     
Christopher L. Hinton, VP Compensation & Benefits         Date
 
 
Validation Date:       07/30/2018
Review Frequency:   5 years
Validated By:             Stephen H. Gaby

1

TABLE OF CONTENTS
	
			
	 
	Page
	

	 
	 

	SECTION 1 

	 
	 

	PURPOSE AND SCOPE.......................................................................................
	5
	

	1.1    Establishment........................................................................................
	5
	

	1.2    Purpose.................................................................................................
	5
	

	 
	 

	SECTION 2

	 
	 

	DEFINITIONS........................................................................................................
	5
	

	2.1    Beneficiary.............................................................................................
	5
	

	2.2    Disability................................................................................................
	6
	

	2.3    Long-Term Performance Incentive Award.............................................
	6
	

	2.4    Long-Term Performance Incentive Grant..............................................
	6
	

	2.5    Long-Term Performance Incentive Opportunity.....................................
	6
	

	2.6    Long-Term Retention Incentive Grant...................................................
	6
	

	2.7    Percent of Opportunity Achieved...........................................................
	6
	

	2.8    Performance Cycle................................................................................
	6
	

	2.9    Performance Goals...............................................................................
	7
	

	2.10    Performance Measures.........................................................................
	7
	

	2.11    Retention Cycle.....................................................................................
	7
	

	2.12    Retirement.............................................................................................
	7
	

	2.13    Section 409A.........................................................................................
	7
	

	2.14    Separation from Service........................................................................
	7
	

	 
	 

	SECTION 3 

	 
	 

	PARTICIPATION....................................................................................................
	7
	

	3.1    Performance Component......................................................................
	8
	

	3.2    Retention Component...........................................................................
	8
	

	 
	 

	SECTION 4 

	 
	 

	PERFORMANCE MEASURES AND GOALS.......................................................
	8
	

	 
	 

2

	
			
	SECTION 5

	 
	 

	DETERMINATION OF GRANTS AND AWARDS..................................................
	9
	

	5.1    Grant Frequency...................................................................................
	9
	

	5.2    Calculation of Grants and Awards.........................................................
	9
	

	5.3    Vesting..................................................................................................
	10
	

	5.4    Awards Payable for Termination Prior to Vesting..................................
	11
	

	 
	 

	SECTION 6

	 
	 

	PAYMENT OF AWARDS.......................................................................................
	13
	

	6.1    Performance Component......................................................................
	13
	

	6.2    Retention Component...........................................................................
	13
	

	6.3    Death.....................................................................................................
	13
	

	6.4    Disability................................................................................................
	13
	

	6.5    Retirement.............................................................................................
	13
	

	 
	 

	SECTION 7

	 
	 

	DEFERRAL ELECTION OPTION..........................................................................
	14
	

	7.1    Eligibility for Deferral for Existing Employees........................................
	14
	

	7.2    Eligibility for Deferral for New Hires......................................................
	14
	

	7.3    Acceleration of Payments in the Event of the Death of a Participant....
	15
	

	 
	 

	SECTION 8

	 
	 

	PLAN ADMINISTRATION......................................................................................
	15
	

	 8.1    Authority of Plan Administrator..............................................................
	15
	

	 8.2    Determinations by Plan Administrator...................................................
	16
	

	 
	 

	SECTION 9

	 
	 

	AMENDENT OR TERMINATION OF THE PLAN..................................................
	16
	

3

	
			
	SECTION 10

	 
	 

	GENERAL PROVISIONS......................................................................................
	17
	

	  10.1    TVA Compensation Plan.......................................................................
	17
	

	  10.2    Non-Transferability of Rights and Interests...........................................
	17
	

	  10.3    Source of Payments..............................................................................
	17
	

	  10.4    Severability............................................................................................
	17
	

	  10.5    Limitation of Rights................................................................................
	17
	

	  10.6    Titles......................................................................................................
	18
	

	  10.7    Governing Law......................................................................................
	18
	

	  10.8    Authorized Representatives.................................................................
	18
	

	  10.9    Compliance with Section 409A............................................................
	18
	

	  10.10    Tax Withholding.....................................................................................
	19
	

	 
	 

4

		
	1.
	PURPOSE AND SCOPE

		
	1.1
	Establishment.  The Tennessee Valley Authority (“TVA”) hereby establishes this Long-Term Incentive Plan (the “Plan”) which combines and replaces both the TVA Executive Long-Term Incentive Plan (the “ELTIP”) and the TVA Long-Term Retention Incentive Plan (the “LTRIP”).  No new participants will be added to the ELTIP and no additional grants will be made under the LTRIP upon approval of the Plan.   The Plan supports TVA’s compensation philosophy, which is designed to attract, retain, and engage employees needed to accomplish TVA’s broad mission.

		
	1.2
	Purpose.  The purpose of the Plan is to provide a targeted level of total long-term compensation that is comprised of both (1) a variable, at-risk performance-based component (the “Performance Component”) and (2) a retention component (the “Retention Component”).   The Plan is designed to provide a competitive level of total compensation to eligible participants (each, a “Participant”).  

Participants may be selected for enrollment in one or both components of the Plan.  For a Participant who is enrolled in both components, the Performance Component will typically be targeted at 70 percent to 80 percent of the Participant’s total targeted long-term compensation.  The remaining 20 percent to 30 percent will be provided under the Retention Component.  

		
	1.2.1
	Performance Component.   The Performance Component is designed to provide Participants with time-vested incentive opportunities based on successful achievement of established financial and/or operational goals measured over a three-year period.  

		
	1.2.2
	Retention Component.  The Retention Component is designed to provide Participants with time-based incentive opportunities designed to encourage them to remain with TVA.  This component is intended to provide retention incentives to Participants similar to the retention incentive provided by restricted stock or restricted stock units in publicly-traded companies.    

		
	2.
	DEFINITIONS

Wherever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context:

5

		
	2.1
	“Beneficiary” means the Participant’s surviving spouse, unless the Participant designates one or more persons or entities to be the Participant’s Beneficiary.  The Participant may make, change, or revoke a Beneficiary designation at any time before his or her death without the consent of the Participant’s spouse or anyone the Participant previously named as a Beneficiary, and the Participant may designate primary and secondary Beneficiaries.  A Beneficiary designation must comply with procedures established by the Plan Administrator (as defined below) and must be received by the Plan Administrator before the Participant’s death.  If the Participant dies without a valid Beneficiary designation (as determined by the Plan Administrator) and has no surviving spouse, the Beneficiary shall be the Participant’s estate.

		
	2.2
	“Disability” means that the Participant has any medically determinable physical or mental impairment resulting in the Participant’s inability to perform the duties of his or her position or any substantially similar position that can be expected to result in death or can be expected to last for a continuous period of not less than six months. Disability shall be determined by the Plan Administrator, in his or her sole discretion.

		
	2.3
	“Long-Term Performance Incentive Award” means the amount earned under the Performance Component after determining achievement of the performance goals.

		
	2.4
	“Long-Term Performance Incentive Grant” means the amount granted to a Participant under the Performance Component.

		
	2.5
	“Long-Term Performance Incentive Opportunity” means the award opportunity under the Performance Component expressed as a percentage of the Participant’s base salary.

		
	2.6
	“Long-Term Retention Incentive Grant” means the amount granted to a Participant under the Retention Component.

		
	2.7
	“Percent of Opportunity Achieved” means the percent of the Long-Term Performance Incentive Opportunity achieved with respect to a Participant based on achieved level of performance compared to the established Performance Measures and Performance Goals over the Performance Cycle.

		
	2.8
	“Performance Cycle” means a period of three consecutive TVA fiscal years.  A new Performance Cycle begins at the start of each TVA fiscal year (October1).  An example showing how the three year cycles overlap is illustrated below:   

6

	
						
	Plan  Cycle
	FY 2015
	FY 2016
	FY 2017
	FY 2018
	FY 2019

	Cycle 1
	ü
	ü
	ü
	 
	 

	Cycle 2
	 
	ü
	ü
	ü
	 

	Cycle 3
	 
	 
	ü
	ü
	ü

		
	2.9
	“Performance Goals” means the long-term strategic goals established for each Performance Measure used to determine awards under the Performance Component.  

		
	2.10
	“Performance Measures” means the specific metrics used to measure performance under the Performance Component.

		
	2.11 
	“Retention Cycle” means a period of three consecutive TVA fiscal years.  A new Retention Cycle begins at the start of each TVA fiscal year and typically includes three one-year vesting periods.

		
	2.12
	“Retirement” and like phrases mean an employee has met one of the following criteria to terminate employment with a reason of Retired:  (i) the employee has reached the age of 55 with at least 10 years of full-time TVA service, (ii) the employee has reached the age of 60 with at least five years of full-time TVA service, or (iii) the employee is in the Civil Service Retirement System or Federal Employees Retirement System and is eligible for an immediate retirement benefit upon termination as outlined in the applicable plan.  

		
	2.13
	“Section 409A” means Internal Revenue Code Section 409A and the regulations and other binding guidance thereunder.

		
	2.14
	“Separation from Service” and like phrases have the meaning set forth in 26 C.F.R. §1.409A-1(h) as such provision may be amended from time to time.

		
	3.
	PARTICIPATION

The TVA Board of Directors (the “Board”), or its designee(s) (collectively, the “Authorized Parties”), shall approve individual employees as Participants.  Each Participant approved for participation shall be enrolled in the Performance Component, the Retention Component, or both.  Participation is generally limited to key positions that have the ability to significantly impact the long-term financial and/or operational objectives critical to TVA’s overall success (“Key Positions”).  

Eligibility based on the Plan guidelines does not entitle an individual to receive an award under the Plan.  An employee’s eligibility and participation in one 

7

year does not guarantee eligibility or participation for any subsequent year.  No other long-term incentive may be provided that is inconsistent with the Plan.

		
	3.1
	Performance Component.  Effective October 1, 2015, eligibility to participate in the Performance Component shall be limited to officers and employees serving in Key Positions within the Officer/Executive pay band.  Individuals serving in Key Positions within the Management & Specialist pay band may be eligible for participation in the Performance Component under limited circumstances and with approval by the Chief Executive Officer (CEO). 

		
	3.2
	Retention Component.  Effective October 1, 2015, eligibility to participate in the Retention Component shall be limited to:

		
	•
	Officers and employees serving in Key Positions within the Officer/Executive pay band; and

		
	•
	Employees serving in Manager and Specialist (M&S) positions that:

		
	•
	are at or above TVA Pay Grade 12 and 

		
	•
	report no more than two levels below a Vice President or

		
	•
	are approved by the CEO.  

Participation in the Plan, as well as the terms of each award granted under the Plan, is at the discretion of the Authorized Parties based on, among other things, recruiting needs and review of benchmark data.

		
	4.
	PERFORMANCE MEASURES AND GOALS

The Board establishes both Performance Measures and Performance Goals.   Performance Measures focus primarily on the achievement of TVA’s long-term financial and/or operational goals, and Performance Goals are established for each Performance Measure.  Performance Measures and Performance Goals typically cover the three-year period of the Performance Cycle.  The Board will establish Performance Measures and Performance Goals in writing within the first 90 days of the Performance Cycle, provided that their outcome is substantially uncertain at the time such Performance Measures and Performance Goals are established.  Performance Measures and Performance Goals will not change after the first 90 days of the Performance Cycle.

		
	5.
	DETERMINATION OF GRANTS AND AWARDS 

		
	5.1
	Grant Frequency.  Long-Term Performance Incentive Grants will typically be made annually as of the first day of each Performance Cycle.  Long-Term Retention Incentive Grants will typically be granted annually as of the first day of each fiscal year.  Grants must be formally approved by an Authorized Party prior to being communicated 

8

to Participants.  Approval will generally be part of the compensation review.  Formal communication of approved grants shall be provided to Participants as soon as practicable after approval.

		
	5.1.1
	Performance Component.  If, after the first day of a Performance Cycle, an individual is hired and becomes eligible/approved during that first fiscal year to participate in the Performance Component or is promoted or transferred into a position that is covered by the Performance Component (or would provide for an increase in the grant amount), the employee may become a Participant effective as of the next October 1 with respect to the two full fiscal years that remain in such Performance Cycle.  The grant amount will be 

effective as of and calculated based solely on the last two full fiscal years of the Performance Cycle.  For the avoidance of doubt, except in the case of death, Disability, or Retirement, participation is for full fiscal year increments only, and there will be no prorated grant amounts for less than a full year.  

		
	5.1.2
	Retention Component.  In the event an individual becomes eligible/approved during a fiscal year or is promoted or transferred into a position that is covered by the Retention Component (or would provide for an increase in the award amount) the employee will be eligible for an award or an increase in the award amount, as applicable, on the first day of the following fiscal year. 

		
	5.2
	Calculation of Grants and Awards.  Grants represent the right of a Participant to receive a cash award, subject to vesting, in the amount determined by an Authorized Party, as set forth below.

		
	5.2.1
	Performance Component.  Long-Term Performance Incentive Grants are based on a Participant’s base salary and Long-Term Performance Incentive Opportunity on the grant date, and are calculated as follows:  

	
					
	Long-Term Performance Incentive Grant
	=
	Base
Salary at Grant Date
	X
	Long-Term Performance Incentive Opportunity at Grant Date

Long-Term Performance Incentive Awards are based on    achieved level of performance compared to the established Performance Measures and Performance Goals over the Performance Cycle and are calculated as follows:

9

	
							
	Long-Term Performance Incentive Award
	=
	Base Salary at Grant Date
	X
	Long-Term Performance Incentive Opportunity at Grant Date
	X
	Percent of Opportunity Achieved

For each Participant, the maximum Long-Term Performance Incentive Award allowed under the Plan is 150 percent of the Long-Term Performance Incentive Opportunity unless a different maximum is approved by an Authorized Party. The final Long-Term Performance Incentive Award may be adjusted by the Board based on the evaluation of the Participant’s individual achievements, peer group comparisons, and performance results over the Performance Cycle.  

		
	5.2.2
	Retention Component.  Long-Term Retention Incentive Awards will be fixed on the date of grant.  

		
	5.3
	Vesting.  A Participant will vest in his or her award as set forth below.  

		
	5.3.1
	Performance Component.  Except as provided in Section 5.4, Participants will become fully vested in their Long-Term Performance Incentive Awards if they remain employed through the end of the Performance Cycle.   Long-Term Performance Incentive Grants will be made as of October 1 and will vest three years later on September 30.  For example, a Long-Term Performance Incentive Grant made for the Performance Cycle beginning on October 1, 2015, will become fully vested on September 30, 2018.

		
	5.3.2
	Retention Component.   The Retention Component shall have a prorated vesting period covering three years.  Long-Term Retention Incentive Awards will be granted on October 1 and will become 1/3 vested on each subsequent September 30, provided the Participant remains employed through that date.  For example, a Long-Term Retention Incentive Award of $75,000 granted on October 1, 2015, will vest as follows:  $25,000 on September 30, 2016; $25,000 on September 30, 2017; and $25,000 on September 30, 2018.

		
	5.4
	Awards Payable for Termination Prior to Vesting.  Except as otherwise determined by an Authorized Party or provided in the subsections below, if a Participant’s employment with TVA terminates for any reason, the unvested portion of any award shall be completely 

10

forfeited on the date of such termination of the Participant's employment.  

		
	5.4.1
	Death.  If a Participant dies while employed, the Beneficiary shall be entitled to the sum of (1) any Long-Term Performance Incentive Awards that have already vested at the time of the Participant’s death and have not yet been paid to the Participant, (2) any Long-Term Performance Incentive Awards that have not vested at the time of the Participant’s death and that cover a Performance Cycle for which the Participant has received a Long-Term Performance Incentive Grant, provided that the amount of any such Long-Term Performance Incentive Award (a) will be calculated assuming that the Percent of Opportunity Achieved is 100 percent and (b) will be prorated based on the number of whole months the Participant was participating in the Plan during the applicable Performance Cycle, (3) any portion of a Long-Term Retention Incentive Award that has already vested at the time of the Participant’s death and has not yet been paid, and (4) a prorated portion of any Long-Term Retention Incentive Grant that has not vested at the time of the Participant's Separation of Service provided that the Long-Term Retention Incentive Award for each vesting period within a Retention Cycle will be prorated based on the number of whole months the Participant was employed by TVA during the vesting period in which the Participant Separated from Service as compared to (a) 12 months for the vesting period that includes the day that the Participant Separated from Service, (b) 24 months for the vesting period that immediately follows the vesting period during which the Participant Separated from Service, and (c) 36 months for the second vesting period that follows the vesting period during which the Participant Separated from Service (such sum being hereinafter referred to as the “Beneficiary Award”).  The Beneficiary Award shall be paid to the Beneficiary in accordance with Section 6.3 or Section 7.3, as applicable.  

 
		
	5.4.2
	Disability.  If a Participant Separates from Service due to a Disability, the Participant shall be entitled to the sum of  (1) any Long-Term Performance Incentive Awards that have already vested at the time the Participant Separates from Service due to a Disability and have not yet been paid to the Participant, (2) any Long-Term Performance Incentive Awards that have not vested at the time of the Participant’s Separation from Service due to a Disability and that cover a Performance Cycle for which the Participant has received a Long-Term Performance Incentive Grant, provided that the amount of any such Long-Term 

11

Performance Incentive Award (a) will be calculated assuming that the Percent of Opportunity Achieved is 100 percent and (b) will be prorated based on the number of whole months the Participant was employed by TVA during the applicable Performance Cycle, (3) any portion of a Long-Term Retention Incentive Award that has already vested at the time that the Participant Separates from Service due to a Disability and has not yet been paid, and (4) a prorated portion of any Long-Term Retention Incentive Grant that has not vested at the time of the Participant's Separation from Service provided that the Long-Term Retention Incentive Award for each vesting period within a Retention Cycle will be prorated based on the number of whole months the Participant was employed by TVA during the vesting period in which the Participant Separated from Service as compared to (a) 12 months for  the vesting period that includes the day that the Participant Separated from Service, (b) 24 months for the vesting period that immediately follows the vesting period during which the Participant Separated from Service, and (c) 36 months for the second vesting period that follows the vesting period during which the Participant Separated from Service (such sum being hereinafter referred to as the “Disability Award”).  The Disability Award shall be paid to such Participant in accordance with Section 6.4 below.

		
	5.4.3
	Retirement.  If a Participant Separates from Service after October 1, 2018, due to a Retirement, the Participant shall be entitled to the sum of (1) any Long-Term Performance Incentive Grant that has already vested at the time the Participant Separates from Service and has not yet been paid (the “Initial Performance Award”), (2) a prorated portion of any Long-Term Performance Incentive Grant that has not vested at the time of the Participant’s Separation from Service, provided that the amount of any such Long-Term Performance Incentive Award (i) is calculated using the actual Percent of Opportunity Achieved and (ii) is prorated based on the number of whole months the Participant is employed by TVA during the applicable Performance Cycle (such amount being hereafter referred to as the “Prorated Performance Award”), (3) any portion of a Long-Term Retention Incentive Grant that has already vested at the time the Participant Separates from Service and has not yet been paid (the “Initial Retention Award”), and (4) a prorated portion of any Long-Term Retention Incentive Grant that has not vested at the time of the Participant’s Separation from Service provided that the amount of any such Long-Term Retention Incentive Award for each vesting period within the Retention Cycle is prorated based on the number of whole months the 

12

Participant was employed by TVA during such vesting period (such amount being hereafter referred to as the “Prorated Retention Award”). The Initial Performance Award, the Prorated Performance Award, the Initial Retention Award, and the Prorated Retention Award will be paid to such Participant in accordance with Section 6.5 below.

		
	6.
	PAYMENT OF AWARDS

Each award shall be paid in cash after deducting the amount of applicable federal, state, and local withholding taxes of any kind required by law to be withheld by TVA or any amounts due to be paid to TVA.  All awards will be approved by an Authorized Party prior to payment.  The awards will be paid as follows:

		
	6.1
	Performance Component.   Except in the case of death, Disability, or Retirement or in the case of deferral, Long-Term Performance Incentive Awards will be paid in a lump sum within two months of the end of each Performance Cycle.

		
	6.2
	Retention Component.   Except in the case of death, Disability, or Retirement, Long-Term Retention Incentive Awards will be paid in a lump sum within two months of vesting.  For example, a Long-Term Retention Incentive Award of $75,000 granted on October 1, 2015, will be paid as follows to the extent the Participant remains employed as of the applicable vesting date:  $25,000 within two months after September 30, 2016; $25,000 within two months after September 30, 2017; and $25,000 within two months after September 30, 2018.

		
	6.3
	Death.  The Beneficiary Award will be paid as soon as administratively practicable but in no event later than the last day of the second full calendar month following the Participant’s death.

		
	6.4
	Disability.  The Disability Award will be paid as soon as administratively practicable but in no event later than the last day of the second full calendar month following the Participant’s Separation from Service due to Disability.

		
	6.5 
	Retirement.  The Initial Performance Award and the Prorated Performance Award will be paid in a lump sum within two months of the end of the applicable Performance Cycle; the Initial Retention Award will be paid in a lump sum within two months of vesting; and the Prorated Retention Award will be paid in a lump sum within two months of the end of the fiscal year during which the Participant Separates from Service due to Retirement.

13

		
	7.
	DEFERRAL ELECTION OPTION

Participants are not eligible to defer the payment of Long-Term Retention Incentive Awards.  Participants may defer the payment of Long-Term Performance Incentive Awards in accordance with the rules set forth below.

		
	7.1
	Eligibility for Deferral for Existing Employees. Employees and Participants who are eligible to participate in the Performance Component before the Performance Measures and Performance Goals for a Performance Cycle have been established may defer Long-Term Performance Incentive Awards under the following conditions: 

		
	7.1.1
	The deferral election must be made before the first day of the Performance Cycle;

		
	7.1.2
	The deferral election is irrevocable as of the date set forth in Section 7.1.1 above;

		
	7.1.3
	The deferral must be made with respect to 25 percent increments of the actual Long-Term Performance Incentive Award;

		
	7.1.4
	Before the deferral election becomes irrevocable, the Participant must elect to have deferred amounts paid out upon the Participant’s Separation from Service, either (i) in a lump sum, or (ii) in 5 or 10 equal annual installments.  The first installment will be paid upon the Participant’s Separation from Service, and subsequent installments will be paid on each anniversary thereof; and 

		
	7.1.5
	The Participant performs services at TVA continuously from the date the Performance Measures and Performance Goals are established through the date the deferral election is made.  

		
	7.2
	Eligibility for Deferral for New Hires.  Participants who are hired by TVA after the Performance Measures and Performance Goals for a Performance Cycle have been established and who have not at any time previously been eligible to participate in the Plan or in any other plan required to be aggregated and treated with the Plan as a single plan under Section 409A may defer their Long-Term Performance Incentive Awards under the following conditions:   

14

		
	7.2.1
	The deferral election must be made within 30 days after the date the Participant becomes eligible to participate in the Plan and will be effective with respect to participation in the Performance Component as of the next October 1;

		
	7.2.2
	The deferral election is irrevocable as of the date set forth in Section 7.2.1 above;

		
	7.2.3
	The deferral must be made with respect to 25 percent increments of the actual Long-Term Performance Incentive Award; 

		
	7.2.4
	The deferral election applies only with respect to compensation paid for services to be performed after the election is made; and

		
	7.2.5
	Before the deferral election becomes irrevocable, the Participant must elect to have deferred amounts paid out upon the Participant’s Separation from Service, either (i) in a lump sum, or (ii) in 5 or 10 equal annual installments, as elected by the Participant.  The first installment will be paid upon the Participant’s Separation from Service, and subsequent installments will be paid on each anniversary thereof.

		
	7.3 
	Acceleration of Payments in the Event of the Death of a Participant.  If a Participant elects to have amounts paid out upon the Participant’s Separation from Service in 5 or 10 equal annual installments and the Participant dies before all of the payments are made, TVA will pay all of the remaining payments to the Participant’s Beneficiary in a lump sum as soon as administratively practicable after the death of the Participant but in no event later than the last day of the second full month following the death of the Participant.

		
	8.
	PLAN ADMINISTRATION 

		
	8.1
	Authority of Plan Administrator. The Plan shall be administered by the CEO or the designee of the CEO (the “Plan Administrator”) unless otherwise delegated by the Board.  For the avoidance of doubt, when the CEO is a Participant, the Plan Administrator shall be the Board or its designee.  Subject to the express provisions of the Plan, the Plan Administrator shall have the power, authority, and sole and exclusive discretion to construe, interpret, and administer the Plan, including without limitation the power and authority to make factual determinations relating to, and correct mistakes in, awards and to take such other action in the administration and operation of the Plan as the 

15

Plan Administrator deems appropriate under the circumstances, including but not limited to the following:

		
	8.1.1
	The Plan Administrator may, from time to time, prescribe forms and procedures for carrying out the purposes and provisions of the Plan;

		
	8.1.2
	The Plan Administrator shall have the authority to prescribe the terms of any communications made under the Plan and to interpret and construe the Plan, any rules and regulations under the Plan, and the terms and conditions of any award, and answer all questions arising under the Plan, including questions on the proper construction and interpretation of the Plan;

		
	8.1.3
	The Plan Administrator may (1) notify each Participant that he or she has been selected as a Participant and (2) obtain from each Participant such agreements and powers and designations of Beneficiaries as the Plan Administrator shall reasonably deem necessary for the administration of the Plan; and

		
	8.1.4
	To the extent permitted by law, the Plan Administrator may at any time delegate such powers and duties to one or more other executives or managers, whether ministerial or discretionary, as the Plan Administrator may deem appropriate, including but not limited to authorizing the Plan Administrator’s delegate to execute documents on the Plan Administrator’s behalf.

		
	8.2
	Determinations by Plan Administrator.  All decisions, determinations, and interpretations by the Plan Administrator regarding the Plan, any rules and regulations under the Plan, and the terms and conditions of or operation of any Plan award shall be final and binding on all Participants, Beneficiaries, heirs, assigns, or other persons holding or claiming rights under the Plan or any award. 

9.    AMENDMENT OR TERMINATION OF THE PLAN

The Board may at any time amend or terminate the Plan without the consent of any Participant, Beneficiary, or other person; provided that, no amendment or termination of the Plan may adversely affect, other than as specified in the Plan, any right acquired by any Participant or any Beneficiary under an award vested before the effective date of such amendment or termination.  Upon termination of the Plan, distribution of vested awards shall be made to Participants and Beneficiaries in the manner and at the time described in Sections 6 and 7, unless an Authorized Party determines in his or her sole 

16

discretion that all such amounts shall be distributed upon termination of the Plan, in accordance with Section 409A to the extent applicable.  TVA and the Plan Administrator, after such amendment or termination, shall continue to have full administrative powers to take any and all action contemplated by the Plan which is necessary or desirable and to make payment of any outstanding awards earned by Participants in accordance with the terms of the Plan.

10.     GENERAL PROVISIONS 

		
	10.1
	TVA Compensation Plan.  Approvals regarding awards granted under the Plan for each Participant, and the amount of actual awards, will be made in accordance with the TVA Compensation Plan and the delegations thereunder. 

		
	10.2
	Non-Transferability of Rights and Interests.  Neither a Participant nor a Beneficiary may alienate, assign, transfer, or otherwise encumber his or her rights and interests under the Plan, nor may such interest or right to receive a distribution be taken, either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person, and any attempt to do so shall be null and void.  

		
	10.3
	Source of Payments.  All awards shall be payable out of TVA’s general assets.  Each Participant’s or Beneficiary’s claim, if any, for the payment of an award shall not be superior to that of any general and unsecured creditor of TVA.  Nothing contained in the Plan and no action taken pursuant to the provisions of the Plan shall create or be construed to create a trust of any kind or a fiduciary relationship between TVA and any Participant, Beneficiary, or other person.  If an error or omission is discovered in any of the determinations, the Plan Administrator, in his or her sole discretion, shall cause an appropriate equitable adjustment to be made in order to remedy such error or omission.

		
	10.4
	Severability.  In the event that any provision or portion of the Plan shall be determined to be invalid or unenforceable for any reason, the 

remaining provisions and portions of the Plan shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

		
	10.5
	Limitation of Rights.  Nothing in the Plan shall be construed to give any employee any right to be selected as a Participant or to receive an award or to be granted an award other than as is provided in this 

17

document.  Nothing in the Plan or any grant or award issued pursuant to the Plan shall be construed to limit in any way the right of TVA to terminate a Participant’s employment at any time, without regard to the effect of such termination on any rights such Participant would otherwise have under the Plan, or give any right to a Participant to remain employed by TVA in any particular position or capacity or at any particular rate of remuneration.  During the lifetime of the Participant, only the Participant (or the Participant’s legal representative) may exercise the rights and receive the benefits of any award.

		
	10.6
	Titles. The titles of the articles and sections herein are included for convenience of reference only and shall not be construed as part of the Plan or have any effect upon the meaning of the provisions hereof.  Unless the context requires otherwise, the singular shall include the plural and the masculine shall include the feminine.  Words such as “herein,” “hereafter,” “hereof,” and “hereunder” shall refer to this instrument as a whole and not merely to the subdivision in which such words appear.

		
	10.7
	Governing Law.  TVA is a corporate agency and instrumentality of the United States and the Plan shall be governed by and construed under federal law. In the event federal law does not provide a rule of decision for any matter or issue under the Plan, the law of the State of Tennessee shall apply, without taking into account conflict of law principles.  By participating in the Plan, each Participant agrees that the jurisdiction for any action with respect to the Plan shall lie in the United States District Court for the Eastern District of Tennessee.  Any such action must commence no later than the date an award is paid or was to be paid, as applicable.

		
	10.8
	Authorized Representatives. Whenever TVA under the terms of the Plan is permitted or required to do or to perform any act or matter or thing, it shall be done and performed by a duly authorized representative of TVA.

		
	10.9
	Compliance with Section 409A.  At all times, to the extent Section 409A applies to amounts deferred under the Plan, (a) the Plan shall be operated in accordance with the requirements of Section 409A; (b) any action that may be taken (and, to the extent possible, any action actually taken) by an Authorized Party and the Participants or their Beneficiaries shall not be taken (or shall be void and without effect), if 

18

such action violates the requirements of Section 409A; (c) any provision in the Plan that is determined to violate the requirements of Section 409A shall be void and without effect; and (d) any provision  that is required by Section 409A to appear in the Plan that is not expressly set forth shall be deemed to be set forth herein, and the Plan shall be administered in all respects as if such provision were expressly set forth herein.  Except for the payment of the Prorated Performance Award and the Prorated Retention Award, the payment of awards under the Performance Component (to the extent no deferral election is made) and the Retention Component are intended to be interpreted, operated, and administered in a manner consistent with the short-term deferral exemption from Section 409A.  TVA may at any time amend the Plan with respect to Section 409A but is not required to do so.  No provision of the Plan is intended or shall be interpreted to create any right with respect to the tax treatment of the amounts paid hereunder, and TVA shall not, under any circumstances, have any liability to a Participant or Beneficiary for any taxes, penalties, or interest due on amounts paid or payable under the Plan, including taxes, penalties, or interest imposed under Section 409A.

		
	10.10
	Tax Withholding.  TVA is authorized to withhold from any Award taxes due or potentially payable in connection with any transactions involving the Plan, and to take any other actions TVA may deem advisable to allow TVA to satisfy obligations for the payment of withholding taxes and other tax obligations related to any Award.

IN WITNESS WHEREOF, this instrument has been approved by the Board and executed as of the 22nd day of August, 2018.

Tennessee Valley Authority

By:   /s/ William D. Johnson                           
William D. Johnson
President and Chief Executive Officer

19

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