Document:

mnpr_ex108.htm

EXHIBIT 10.8
 CONSULTING AGREEMENT
  
 This Consulting Agreement (herein referred to as “Agreement”) is made and entered into as of January 1, 2022 (the “Effective Date”), by and between Monopar Therapeutics Inc. (herein referred to as “Monopar”), a Delaware corporation, located at 1000 Skokie Blvd, Suite 350, Wilmette, IL 60091, and Christopher M. Starr, Ph.D., (herein referred to as “Consultant”), whose principal address is # (each herein referred to as “Party” and collectively as “Parties”).
  
 RECITALS
  
 WHEREAS, Consultant is a seasoned Chief Executive Officer in the biopharmaceutical product development industry with extensive experience overseeing research and development, clinical development, regulatory affairs, clinical and commercial manufacturing, quality operations, commercial launches and corporate fundraising;
  
 WHEREAS, Consultant has served as Monopar’s Executive Chair and Board member since 2014 and Monopar desires to contract with Consultant to provide certain consultation services, as requested by Monopar, and Consultant wishes to provide such services to Monopar, upon the terms and conditions set forth below.
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the Parties agree as follows:
  
 	 1.
	 Consulting Arrangement. Consultant agrees to perform consulting services as described herein upon the terms and conditions herein set forth.

	  
	  

	 2.
	 Term of Agreement. Subject to the provision for early termination set forth below in Section 5 of this Agreement, this Agreement shall commence as of the Effective Date and terminate on December 31, 2022 (the “Term”). This Agreement shall automatically renew annually on January 1, unless either Party terminates this Agreement in writing with a 30-day notice. 

	  
	  

	 3.
	 Duties of Consultant.

  	  
	 3.1 
	 Specific Duties. Consultant shall provide advice in the areas of research, clinical development, manufacturing, quality, regulatory affairs, commercialization and fundraising strategy, including participation in various internal and external meetings with Monopar herein referred to as the “Services”.

	  
	  
	  

	  
	 3.2 
	 Obligations. Consultant shall be diligent in the performance of Services, and be professional in his commitment to meeting his obligations hereunder. Consultant represents and warrants that Consultant is not party to any other existing agreement, which would prevent it from entering into this Agreement or which would adversely affect this Agreement. Consultant shall not perform Services for any other individuals or entities in direct competition with Monopar, defined as individuals or entities developing either treatments for oral mucositis, advanced soft tissue sarcomas, or drug candidates targeting the urokinase plasminogen activator receptor, except as provided for by mutual written agreement of the Parties. Consultant shall not perform services for any party which would require or facilitate the unauthorized disclosure of any confidential or proprietary information of Monopar.

  	 
	- 1 -
	

	 

  
 	  
	 3.3 
	 Reporting. Consultant shall be authorized to use his own discretion and judgment as to when and what depth of information/results he deems constructive and appropriate to report to the Board of Directors.

	  
	  
	  

	  
	 3.4 
	 Consultation and Advice. Consultant shall advise Chandler D. Robinson, M.D., and/or any other assigned Monopar employee or consultant as may be designated by Monopar and in accordance with his own judgment and discretion.

	  
	  
	  

	  
	 3.5 
	 Compensation. Monopar shall pay Consultant at $120,000 per year paid monthly $10,000 in arrears.

  Any obligation to compensate Consultant under this Agreement that arises prior to termination of this Agreement will survive the termination of this Agreement.
  
 Consultant shall not be reimbursed, and is responsible for the facilities and equipment necessary to perform Services required under this Agreement.
  
 The verbal annual agreement for consulting services for $40,000 per year that was effective October 1, 2018  between the Company and the Consultant shall be terminated upon the effectiveness of this Agreement.
  
 	 4.
	 Reimbursement of Other Expenses. Monopar shall promptly reimburse Consultant for all direct expenses incurred in providing the Services to Monopar pursuant to this Agreement, including travel, meals and lodging as long as Monopar’s prior approval has been obtained. Invoices submitted by Consultant pursuant to this Section 4 shall include detail of all reimbursable expenses incurred during the period covered by such invoice as well as receipts.

	  
	  

	 5.
	 Termination of Agreement - Failure to perform. In the event that Consultant ceases to perform the Services or breaches his obligations as required hereunder for any reason, Monopar shall have the right to immediately terminate this Agreement upon notice to Consultant and to enforce such other rights and remedies as it may have as a result of said breach.

	  
	  

	 6.
	 Certain Liabilities. It is understood and agreed that Consultant shall be acting as an independent contractor and not as an agent or employee of, or partner, joint venturer or in any other relationship with Monopar. Consultant will be solely responsible for all insurance, employment taxes, FICA taxes and all obligations to governments or other organizations for his employees arising out of this consulting assignment. Consultant acknowledges that no income, social security or other taxes shall be withheld or accrued by Monopar for Consultant’s benefit. Consultant assumes all risks and hazards encountered in the performance of duties under this Agreement. Unless Monopar has provided prior written approval, Consultant shall not use any sub-contractors to perform obligations hereunder. Consultant shall be solely responsible for any and all injuries, including death, to all persons and any and all loss or damage to property, which may result from performance under this Agreement.

	  
	  

	 7.
	 Indemnities. Consultant hereby agrees to indemnify Monopar and hold Monopar harmless from and against all claims (whether asserted by a person, firm, entity or governmental unit or otherwise), liabilities, losses, damages, expenses, charges and fees which Monopar may sustain or incur arising out of or attributable to any breach, gross negligence or willful misconduct by Consultant, as applicable, in the performance under this Agreement.

  	 
	- 2 -
	

	 

  
 Monopar hereby agrees to indemnify Consultant and hold Consultant harmless from and against all liabilities, losses, damages, expenses, charges and fees which Consultant may sustain or incur by reason of any claim which may be asserted against Consultant by any person, firm, corporation or governmental unit and which may arise out of or be attributable to any gross negligence or willful misconduct by Monopar or its employees or contractors, as applicable, in the performance of this Agreement.
  
 	 8.
	 Warranties. The Services shall be performed in a professional manner, consistent with industry standards. In performing the Services, Consultant shall not make any unauthorized use of any confidential or proprietary information of any other party or infringe the intellectual property rights of any other party.

	  
	  

	 9.
	 Arbitration. Any controversy or claim between Monopar and Consultant arising out of or relating to this Agreement, or the breach thereof, shall be submitted to arbitration in accordance with the rules of the American Arbitration Association. The site of the arbitration shall be Chicago, IL, and except as provided herein the arbitration shall be conducted in accordance with the Rules of the American Arbitration Association prevailing at the time the demand for arbitration is made hereunder. At least one member of the arbitration panel shall be an expert knowledgeable in the area of biopharmaceutical clinical operations. Judgment upon any award rendered by the arbitrator(s) may be entered in any court of competent jurisdiction and shall be binding and final. The cost of arbitration shall be borne by the losing Party, as determined by the arbitrator(s).

	  
	  

	 10.
	 Confidential Information. Consultant has an obligation of confidentiality in his Executive Chair and Board member duties for Monopar and affirms that such confidentiality commitment shall also apply to confidential information accessed under this Agreement. 

	  
	  

	 11.
	 Inventions. Consultant agrees that all ideas, developments, suggestions and inventions conceived or reduced to practice during the course of performance under this Agreement shall be the exclusive property of Monopar and shall be promptly communicated and assigned to Monopar. Consultant shall require any other parties contracted by Consultant to disclose the same to Consultant and to be bound by the provisions of this paragraph. During the period of this Agreement and thereafter at any reasonable time when called upon to do so by Monopar, Consultant shall require any employees of or other parties contracted by Consultant to execute patent applications, assignments to Monopar (or any designee of Monopar) and other papers and to perform acts which Monopar believes necessary to secure to Monopar full protection and ownership of the rights in and to the services performed by Consultant and/or for the preparation, filing and prosecution of applications for patents or inventions made by any employees of or other parties contracted by Consultant hereunder. The decision to file patent applications on inventions made by any employees of or other parties contracted by Consultant shall be made by Monopar and shall be for such countries, as Monopar shall elect. Monopar agrees to bear all the expense in connection with the preparation, filing and prosecution of applications for patents and for all matters provided in this paragraph requiring the time and/or assistance of Consultant as to such inventions.

  	 
	- 3 -
	

	 

  
 	 12.
	 Miscellaneous.

    
 	  
	 12.1
	 Notice. Any notices to be given hereunder by either Party to the other may be effectuated, in writing, by personal delivery or by mail, registered or certified, postage prepaid, with return receipt requested, or by electronic mail. Mailed notices shall be addressed to the parties at the following addresses:

      
 	  
	 If to Monopar:
	 Monopar Therapeutics Inc.

	  
	  
	 1000 Skokie Blvd
 Suite 350
 Wilmette, IL, 60091
 Attention: Chandler D. Robinson, M.D. 
 Email: # 

	  
	  
	  

	  
	 If to Consultant: 
	 #

	  
	  
	 Attention: Christopher M. Starr, Ph.D.
 Email: #

    
 or at such other addresses as either Monopar or Consultant may designate by written notice to each other. Notices delivered personally shall be deemed duly given on the date of actual receipt; mailed notices shall be deemed duly given as of the fourth day after the date so mailed. If sent by electronic mail, such notice will be deemed given upon confirmation of receipt by recipient.
  
 	  
	 12.2 
	 Waiver of Breach. The waiver by either Party to a breach of any provision in this Agreement cannot operate or be construed as a waiver of any subsequent breach by either Party.

	  
	  
	  

	  
	 12.3 
	 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, that provision shall be deemed modified to the extent necessary to make it valid or enforceable, or if it cannot be so modified, then severed, and the remainder of the Agreement shall continue in full force and effect as if the Agreement had been signed with the invalid portion so modified or severed.

	  
	  
	  

	  
	 12.4 
	 Choice of Law. This Agreement has been made and entered into in the State of Illinois, and the laws of such state, excluding its choice of law rules, shall govern the validity and interpretation of this Agreement and the performance due hereunder. The losing party in any dispute hereunder shall pay the attorneys’ fees and disbursements of the prevailing party.

	  
	  
	  

	  
	 12.5 
	 Integration. The drafting, execution and delivery of this Agreement by the Parties have been induced by no representations, statements, warranties or agreements other than those expressed herein. This Agreement embodies the entire understanding of the Parties, and there are no further or other agreements or understandings, written or oral, in effect between the Parties relating to the subject matter hereof unless expressly referred to herein.

  	 
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	 12.6 
	 Modification. This Agreement may not be modified unless such is in writing and signed by both Parties to this Agreement.

	  
	  
	  

	  
	 12.7 
	 Assignment. Consultant shall not be permitted to assign this Agreement to any other person or entity without the prior written consent of Monopar. Consultant hereby agrees that Monopar shall be permitted to assign this Agreement to any affiliate of Monopar. This Agreement shall be binding upon and shall inure to the benefit of the successors and permitted assigns of the parties.

	  
	  
	  

	  
	 12.8 
	 Survival. The provisions of Sections 7, 8, 9, 10, and 11 shall survive expiration or termination of this Agreement for any reason. Expiration or termination of this Agreement shall not affect Monopar’s obligations to pay any amounts that may then be due to Consultant.

  IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written.
  
 ACCEPTED AND AGREED TO:
  
 	 CONSULTANT
	  
	 MONOPAR THERAPEUTICS INC.
	  

	  
	  
	  
	  

	 /s/ Christopher M. Starr, Ph.D.
	  
	 /s/ Chandler D. Robinson
	  

	 BY: Christopher M. Starr, Ph.D.
	  
	 BY: CHANDLER D. ROBINSON
 ITS: CHIEF EXECUTIVE OFFICER
	  

  
 	 
	- 5 -Exhibit 4.4

      

       

      

      RADA ELECTRONIC INDUSTRIES LTD.

    

    
       

    

    
      2021 EQUITY INCENTIVE PLAN

    

    
       

    

    
      1.          Purposes of the Plan. The purposes of this 2021 Equity Incentive Plan are:

    

    
      

      

    

    
      (a)          to attract and retain the best available personnel for positions of substantial responsibility,

    

    
      

      

    

    
      (b)          to provide additional incentive to Service Providers, and

    

    
      

      

    

    
      (c)          to promote Participants’ interest in the success of the Company’s business.

    

    
      

      

    

    
      Awards granted under the Plan may be Options, Restricted Shares and Restricted Share Units, as determined by the Administrator at the time of grant.

    

    
       

    

    
      Furthermore, the Plan is designed to benefit from, and is made pursuant to, the provisions of Section 102 of the Ordinance, with respect to Awards granted to Employees pursuant
        to the Plan.

    

    
       

    

    
      2.           Definitions. As used herein, the following definitions shall apply:

    

    
       

                                   (a)          “Administrator” means the Board or any of its Committees that will be designated by the Board, as shall be administering the Plan, in accordance
        with Section 4 of the Plan.

       

    

    
      (b)           “Affiliate” means an “employing company” as such term is defined in Section 102(a) of the Ordinance, other than the Company itself as well as any other
        entity which is, directly or indirectly, controlled by the Company.

    

    
       

    

    
      (c)          “Applicable Laws” means the requirements relating to the administration of, or otherwise affecting, equity compensation plans under the Companies Law, the
        Securities Law, other applicable laws of Israel, U.S. federal and state securities laws, any stock exchange or quotation system on which the Shares are listed or quoted, U.S. state corporate laws, and the laws of any other country or jurisdiction
        where Awards are granted under the Plan or a sub-plan or addendum hereto.

    

    
       

    

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

    

    
       

    

    
      (e)           “Award” means, individually or collectively, a grant under the Plan of Options, Restricted Shares or Restricted Share Units.

       

      

      
        
          

      

       

      

    

    
       

    

    
      (f)          “Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award
        Agreement is subject to the terms and conditions of the Plan.

    

    
       

    

    
      (g)          “Awarded Shares” means the Shares subject to an Award.

    

    
       

    

    
      (h)          “Board” means the Board of Directors of the Company.

      

      

    

    
      (i)           “Capital Gains Award (CGA)” means an Approved 102 Award elected and designated by the Company to qualify for capital gains tax treatment in accordance with
        Section 102(b)(2) of the Ordinance.

    

    
       

    

    
      (j)          “Change of Control” means the occurrence of any of the following events, in one or a series of related transactions:

    

    
       

    

    
      (i)          The acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization,
        merger or consolidation); or

    

    
      

      

    

    
      (ii)          a sale of all or substantially all of the assets of the Company (including intellectual property rights if, in the aggregate, such rights constitute substantially
        all of the Company’s material assets); or

    

     

    
      (iii)          the gain of control (as such term is defined in the Companies Law), by any shareholder or shareholders. 

    

    
       

    

    
      (k)          “Committee” means a Committee appointed by the Board in accordance with Section 4 of the Plan.

    

    
       

    

    
      (l)            “Companies Law” means the Israeli Companies Law, 5759-1999.

    

    
       

    

    
      (m)           “Company” means RADA Electronic Industries Ltd.

    

    
       

    

    
      (n)          “Consultant” means any person, other than an Employee, engaged by the Company or any Affiliate to render services.

    

    
       

    

    
      (o)           Intentionally omitted.

    

    
       

    

    
      (p)           “Controlling Shareholder” shall have the meaning ascribed to such term in Section 32(9) of the Ordinance.

    

    
       

    

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

    

    
       

    

    
      (r)          “Disability” means total and permanent disability as determined by the Administrator.

       

      

      
        
          

      

      

      

      (s)           “Election” means the Company’s election of the type of Approved 102 Awards as set forth in Section 14(b)(iii).

    

    
       

    

    
      (t)           Employee” means any person employed by the Company or any Affiliate of the Company, and includes Officers and Directors. A Service Provider shall not cease
        to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, any Subsidiary, or any successor.

    

    
       

    

    
      (u)          “Fair Market Value” means, as of any date, the value of Shares determined as follows:

    

    
       

    

    
      (i)          If the Shares are listed on any established stock exchange or a national market system, including without limitation the NASDAQ Capital Market of the National
        Association of Securities Dealers, Inc. Automated Quotation (“Nasdaq”) System, the Fair Market Value of a Share shall be the closing sales price for such shares (or the closing bid, if no
        sales were reported) as quoted on such system or exchange (or the exchange with the greatest volume of trading in Shares) on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;
        provided, however, that if there is no closing sales price (or closing bid if no sales were reported) for the Shares on the date of determination, then the Fair Market Value shall be the closing sales price (or closing bid if no sales were
        reported) on the last preceding date for which such quotation exists;

    

    
       

    

    
      (ii)          If the Shares are quoted on the Nasdaq System (but not on the NASDAQ Global Select Market thereof) or are regularly quoted by a recognized securities dealer but
        selling prices are not reported, the Fair Market Value of a Share shall be the mean between the high bid and low asked prices for the Shares on the day of determination, as reported in The Wall Street Journal or such other source as the
        Administrator deems reliable; provided, however, that if there is no bid and asked prices for the Shares on the date of determination, then the Fair Market Value shall be the mean between the high bid and low asked prices for the Shares on the last
        preceding date for which such bid and asked prices exists; and

    

    
       

    

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

    

    
       

    

    
       (v)           “ITA” means the Israeli Tax Authorities.

    

    
       

    

    
       (w)          ‘Non-approved 102 Award” means an Award granted pursuant to Section 102(c) of the Ordinance and not held in trust by a Trustee.

    

    
       

    

    
       (x)          “Officer” means, with respect to the Company and Affiliates that are Israeli companies, a person who is a “nose misra” within the meaning of the Companies
        Law but is not a Director, and with respect to Affiliates that are not Israeli companies means a person who is an officer within the meaning of the applicable corporate law of the jurisdiction of incorporation of such Affiliate.

       

      

      
        
          

      

    

    
       

    

    
       (y)           “Option” means an option to purchase Shares granted pursuant to the Plan.

    

    
       

    

    
      (z)            “Ordinance” means the Israeli Income Tax Ordinance (New Version), 1961 as now in effect and as hereafter amended.

    

    
       

    

    
       (aa)           “Ordinary Income Award (OIA)” means an Approved 102 Award elected and designated by the Company to qualify for ordinary income tax treatment in accordance
        with Section 102(b)(1) of the Ordinance.

    

    
       

    

    
        (bb)          “Ordinary Shares” shall mean the Ordinary Shares of the Company n.v NIS0.03.

    

    
      

      

    

    
       (cc)           “Participant” means the holder of an outstanding Award granted under the Plan.

    

    
       

    

    
       (dd)          “Plan” means this RADA Electronic Industries Ltd. 2021 Equity Incentive Plan.

    

    
       

    

    
       (ee)           “Restricted Shares” means Shares granted pursuant to Section 9 of the Plan.

    

    
       

    

    
       (ff)           “Restricted Share Unit” means an Award granted pursuant to Section 10 of the Plan.

    

    
       

    

    
       (gg)          “Section 3(i) Award” means an Award granted to a Consultant or a Controlling Shareholder in accordance with Section 3(i) of the Ordinance.

    

    
       

    

    
       (hh)          “Section 102” means Section 102 of the Ordinance and any regulations, rules, and orders of procedures promulgated thereunder as now in effect or as
        hereafter amended.

    

    
       

    

    
       (ii)           Section 102 Shares” means Shares issued under a Section 102 Award pursuant to Section 14(c)(i) below.

    

    
       

    

    
       (jj)           “Section 102 Period” shall have the meaning ascribed to such term in Section 14(c)(i) below.

    

    
       

    

    
      	

            	 (kk)	
              “Securities Law” means the Israeli Securities Law, 5728–1968.

            

    

    
       

    

    
      	

            	 (ll)	
              “Service Provider” means an Employee or Consultant.

            

    

    
       

      
        
          

      

       

      

    

    
      (mm)          “Share” means one Ordinary Share, as adjusted in accordance with Section 16 of the Plan.

    

    
       

    

    
      (nn)           “Trustee” means a trustee designated by the Board and approved by the ITA, pursuant to the requirements of Section 102 and a trust agreement to be entered
        into and between the Company and such Trustee and approved by the ITA.

    

    
       

    

    
      3.          Shares Subject to the Plan.

    

    
       

    

    
      (a)          Subject to the provisions of Section 16 of the Plan, the maximum aggregate number of Shares which may be issued under the Plan is 5,000,000 Shares.

    

    
       

    

    
      (b)          The Shares may be authorized but unissued, or reacquired (dormant), Shares.

    

    
      

      

    

    
      (c)          Any Shares subject to an Award shall be counted against the numerical limits of this Section 3 as one Share for every Share subject thereto.

    

    
      

      

    

    
      (d)           If an Award expires or becomes unexercisable without having been exercised in full, or, with respect to Restricted Shares or Restricted Share Units, is
        forfeited to or repurchased by the Company at its original purchase price due to such Award failing to vest, the unpurchased Shares (or for Awards other than Options, the forfeited or repurchased shares) which were subject thereto shall become
        available for future grant or sale under the Plan (unless the Plan has terminated). Shares used to pay the exercise price of an Option shall not become available for future grant or sale under the Plan. Shares used to satisfy tax withholding
        obligations shall not become available for future grant or sale under the Plan.

    

    
       

    

    
      4.          Administration of the Plan.

    

    
       

    

    
      (a)          Procedure. The Plan shall be administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws. The Plan
        may be administered by different Committees with respect to different groups of Service Providers.

    

    
      

      

    

    
      (b)          Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board
        to such Committee, the Administrator shall have the authority, in its discretion:

    

    
       

    

    
      (i)          to determine the Fair Market Value of the Shares, in accordance with Section 2(u) of the Plan;

    

    
       

    

    
      (ii)          to select the Service Providers to whom Awards may be granted hereunder;

       

      

      
        
          

      

    

    
       

    

    
      (iii)          to determine whether and to what extent Awards or any combination thereof, are granted hereunder;

    

    
      

      

    

    
      (iv)          to determine the number of Shares or equivalent units to be covered by each Award granted hereunder;

    

    
      

      

    

    
      (v)          to approve forms of agreement for use under the Plan;

    

    
      

      

    

    
      (vi)          to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder. Such terms and conditions include, but are not
        limited to, the exercise price, the time or times when Options may be exercised or other Awards vest (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation
        regarding any Award or Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine and to amend the exercise price or any other term and condition of any Option;

    

    
       

    

    
      (vii)          to construe and interpret the terms of the Plan and Awards;

    

    
      

      

    

    
      (viii)          to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans or Plan addendums, established
        for the purpose of qualifying for preferred tax treatment (e.g., Section 102);

    

    
      

      

    

    
      (ix)          to modify or amend each Award (subject to Section 18(b) of the Plan), including the discretionary authority to extend the post-termination exercisability period of
        Options longer than is otherwise provided for in the Plan, provided, however, that no extension of the exercisability of an Option will be made with respect to an Option granted to a U.S. taxpayer if such extension would cause the Option to be
        covered by Section 409A of the Code;

    

    
       

    

    
      (x)          to authorize any person to execute on behalf of the Company any instrument required to evidence the grant of an Award previously granted by the Administrator;

    

    
       

    

    
      (xi)          to allow Participants to satisfy withholding tax obligations by electing to have the Company and/or its Affiliates and/or the Trustee withhold taxes in accordance
        with the Applicable Laws. The Fair Market Value of any Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares or cash withheld for this purpose
        shall be made in such form and under such conditions as the Administrator may deem necessary or advisable;

    

    
       

      
        
          

      

       

      

    

    
      (xii)          to determine the terms and restrictions applicable to Awards;

    

    
       

    

    
      (xiii)          to determine the price per each Share to be issued under the Awards. Shares to be issued under grants of Restricted Shares and Restricted Share Units may be
        issued upon payment of their nominal value;

    

    
       

    

    
      (xiv)           to make an election as to the type of 102 Approved Award; and

    

    
      

      

    

    
      (xv)           to make all other determinations deemed necessary or advisable for administering the Plan.

    

    
       

    

    
      (c)          Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations shall be final and binding on all Participants and
        any other holders of Awards.

    

    
      

      

    

    
       5.          Eligibility. Awards may be granted to Service Providers, provided that Section 102 Awards may be granted only to Employees.

    

    
       

    

    
      6.          No Employment Rights. Neither the Plan nor any Award shall confer upon a Participant any right with respect to continuing the Participant’s employment or other
        service with the Company or its Affiliates, nor shall they interfere in any way with the Participant’s right or the Company’s or Affiliate’s right, as the case may be, to terminate such employment or other service at any time, with or without cause
        or notice.

    

    
       

    

    
      7.          Term of Plan. The Plan shall continue in effect until such date as the Board shall suspend or terminate the Plan in accordance with Section 18(a).

    

    
       

    

    
      8.          Options.

    

    
       

    

    
      (a)          Term. The term of each Option shall be stated in the Award Agreement; provided, however, that the term shall be no more than ten years (10) from the date
        of grant or such Option or shorter term as may be provided in the Award Agreement.

    

    
      

      

    

    
      (b)          Option Exercise Price. Unless determined otherwise by the Administrator, the per share exercise price for the Shares to be issued pursuant to exercise of
        an Option shall be equal to the average closing price of the Shares in Nasdaq during the 30 days immediately preceding the date of grant of the Option.

    

    
      

      

    

    
      (c)          Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and
        shall determine any conditions which must be satisfied before the Option may be exercised. In so doing, the Administrator may specify that an Option may not be exercised until the completion of a service period and/or until performance milestones
        are satisfied.

       

      

      
        
          

      

    

    
      

      

    

    
      (d)          Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment.
        In the case of a Section 102 Award, the Administrator shall determine the acceptable form of consideration at the time of grant. Subject to Applicable Laws, such consideration may consist entirely of:

    

    
       

    

    
      	

            	(i)	
              cash;

            

    

    
       

    

    
      	

            	(ii)	
              check;

            

    

    
       

    

    
      (iii)          if, as of the date of exercise of an Option the Company then is permitting employees to engage in a “same-day sale” cashless brokered exercise program
        involving one or more brokers, through such a program that complies with the Applicable Laws and that ensures prompt delivery to the Company of the amount required to pay the exercise price and any applicable withholding taxes;

    

    

    

    
      (iv)          any combination of the foregoing methods of payment;

    

    

    

    
      (v)            such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws;

    

     

    
      (vi)          Notwithstanding the above, the Participant may, at his/her own discretion instruct the Company in writing, as part of the Exercise Notice, that the payment for
        the Options will be made through “cashless exercise” mechanism (the “Cashless Notice”). In the event that the Participant has elect to submit the Cashless Notice then the Participant shall be entitled to receive a certificate for the number
        of Shares equal to the quotient obtained by dividing [(A-B)*(N)] by (A),

    

     

    
      where:

    

     

    (A) = the average of the closing (or closing bid, if so reported) prices per Share on the five (5) Trading Days preceding the date of such election;

     

    (B) = the Purchase Price; and

     

    (N) = the number of shares issuable upon exercise of the Options in accordance with the terms of this Agreement.

     

    The cashless exercise is not permissible under Section 102 of the Ordinance unless such cashless exercise is made pursuant to the special approval of the Israeli Income Tax Authorities.

     

    
      (e)          Exercise of Option; Rights as a Shareholder. Any Option granted hereunder shall be exercisable according to the terms of
        the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement.  An Option may not be exercised for a fraction of a Share.

       

      

      
        
          

      

    

    
       

    

    
      An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled
        to exercise the Option, (ii) full payment for the Shares with respect to which the Option is exercised. and (iii) as applicable, full payment or other satisfaction of any related tax withholding obligations. Full payment may consist of any
        consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Participant, provided, however, that Shares issued
        following the exercise of Options granted under Section 102(b) to the Ordinance shall be issued under the name of the Trustee for the benefit of the Participant and shall be held in trust by the Trustee. Until the stock certificate evidencing such
        Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the
        optioned stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record
        date is prior to the date the stock certificate is issued, except as provided in Section 16 of the Plan.

    

    
      

      

    

    
       9.           Restricted Shares.

    

    
       

    

    
      (a)          Grant of Restricted Shares. Subject to the terms and conditions of the Plan, Restricted Shares may be granted to Participants at any time as shall be
        determined by the Administrator, in its sole discretion. The Administrator shall have complete discretion to determine (i) the number of Shares subject to a Restricted Shares award granted to any Participant, and (ii) the conditions that must be
        satisfied, which typically will be based principally or solely on continued provision of services but may include a performance-based component, upon which is conditioned the vesting of Restricted Shares.

    

    
       

    

    
      (b)           Other Terms. The Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of Restricted
        Shares granted under the Plan. Restricted Shares grants shall be subject to the terms, conditions, and restrictions determined by the Administrator at the time the Restricted Share is awarded. The Administrator may require the recipient to sign a
        Restricted Shares Award Agreement as a condition of the award. Any certificates representing the Shares awarded shall bear such legends as shall be determined by the Administrator.

    

    
       

    

    
      (c)           Restricted Shares Award Agreement. Each Restricted Shares grant shall be evidenced by an agreement that shall specify the purchase price (if any) and such
        other terms and conditions as the Administrator, in its sole discretion, shall determine.

    

    
      

      

      
        
          

      

      

      

    

    
      10.          Restricted Share Units (RSU).

    

    
       

    

    
      (a)          Grant. Restricted Share Units may be granted at any time and from time to time as determined by the Administrator. The Administrator shall have complete
        discretion to determine (i) the number of Shares subject to a Restricted Share Unit award granted to any Participant, and (ii) the conditions that must be satisfied, which typically will be based principally or solely on continued service but may
        include a performance-based component, upon which is conditioned the grant or vesting of Restricted Share Units. Restricted Share Units shall be granted in the form of units to acquire Shares. Each such unit shall be the equivalent of one Share for
        purposes of determining the number of Shares subject to an Award. Unless the Administrator determines otherwise, until the Shares are issued, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the
        units to acquire Shares.

    

    
       

    

    
      (b)          Vesting Criteria and Other Terms. The Administrator shall set vesting criteria in its discretion, which, depending on the extent to which the criteria are
        met, will determine the number of Restricted Share Units that will be paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, Affiliate-wide, business unit, or individual goals (including,
        but not limited to, continued employment), or any other basis determined by the Administrator in its discretion.

    

    

    

    
      (c)          Earning Restricted Share Units. Upon meeting the applicable vesting criteria, the Participant shall be entitled to receive a payout of Shares as specified
        in the Restricted Share Unit Award Agreement. Notwithstanding the foregoing, at any time after the grant of Restricted Share Units, the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a
        payout of Shares.

    

    
       

    

    
      (d)           Form and Timing of Settlement. Settlement of earned Restricted Share Units shall be made as soon as practicable after the date(s) set forth in the
        Restricted Share Unit Award Agreement. The Settlement of earned Restricted Share Units shall be made in Shares.

    

    
       

    

    
      (e)          Cancellation. On the date set forth in the Restricted Share Unit Award Agreement, all unearned Restricted Share Units shall be forfeited to the Company.

    

    
       

    

    
      11.          Termination of Relationships, Death or Disability.

    

    
       

    

    
      (a)          Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, then, unless otherwise determined by the
        Administrator, on the date the Participant ceases to be a Service Provider, (i) a Participant’s vested Options will expire if and to the extent they are not exercised within the time specified in the Award Agreement or, if no time is specified, (A)
        within 90 days after the date the Participant  ceases to be a Service Provider (or 12 months in the case the Participant ceases to be a Service Provider due to death or Disability), and (B) within 12 months after the date a Participant that is a
        Director ceases to be a member of the Board, but in no event later than the expiration of the term of such Option as set forth in the Award Agreement; and (ii) the unvested portion of any Option or other Award will automatically be forfeited and
        expire on the date the Participant ceases to be a Service Provider.

       

      

      
        
          

      

    

    
       

    

    
      (b)          Death of Participant. If a Participant ceases to be a Service Provider as a result of his death, the Participant’s designated beneficiary or, if none, the
        Participant’s estate shall succeed to the Awards held by the deceased Participant, subject to the terms of the Plan and the applicable Award Agreement.

    

    
       

      12.          Leaves of Absence. Unless the Administrator provides otherwise or except as otherwise required by Applicable Laws, vesting of Awards granted hereunder shall
        cease commencing on the first day of any unpaid leave of absence and shall only recommence upon return to active service.

    

    
       

    

    
      13.           Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or
        disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the recipient, only by the recipient. If the Administrator makes an Award transferable, it may only be transferable
        for no consideration to transferees permitted pursuant to a Form S-8 Registration Statement (such as family members or pursuant to a settlement of marital property rights) and such Award shall contain such additional terms and conditions as the
        Administrator deems appropriate.

    

    
       

    

    
      14.          Grant of Approved 102 Awards and Non-approved 102 Awards.

    

    
       

    

    
      (a)          Participants. Approved 102 Awards may only be granted to Employees who are residents of the State of Israel. Except as otherwise specifically approved by the
        ITA, a Controlling Shareholder or a Consultant shall not be eligible for grant of Approved 102 Awards or Non-approved 102 Awards, and shall only be eligible for grant of Section 3(i) Awards as set forth in Section 15.

    

    
      

      

    

    
      (b)          Grant of Section 102 Awards.

    

    

    

    
      (i)          The Company may designate Awards granted to Employees pursuant to Section 102 as Non-approved 102 Awards or Approved 102 Awards.

    

    
       

    

    
      (ii)          The grant of Approved 102 Awards under the Plan shall be conditioned upon the approval of the Plan by the ITA.

    

    
       

    

    
      (iii)          Approved 102 Awards may either be classified as Capital Gains Awards (CGAs) or Ordinary Income Awards (OIAs). Approved 102 Awards may not be granted under the
        Plan unless and until the Company’s election of the type of Approved 102 Awards as CGA or OIA granted to Employees (the “Election”) is appropriately filed with the ITA. Such Election shall become effective beginning the first date of grant of an
        Approved 102 Award and shall remain in effect until the end of the year following the year during which Employees were first granted Approved 102 Awards. The Election shall obligate the Company to grant only the type of Approved 102 Awards it has
        elected, and shall apply to all Participants who were granted such Approved 102 Awards during the period indicated herein, all in accordance with the provisions of Section 102(g) of the Ordinance. For the avoidance of doubt, such Election shall not
        prevent the Administrator from granting Employees Approved 102 Awards and Non-approved 102 Awards simultaneously.

       

      

      
        
          

      

    

    
       

    

    
      (iv)          All Approved 102 Awards must be held in trust by a Trustee, as described in subsection (c) below.

    

    
       

    

    
      (v)          For the avoidance of doubt, the designation of Non-approved 102 Awards and Approved 102 Awards shall be subject to the terms and conditions of Section 102.

    

    
       

    

    
      (vi)          With respect to Non-approved 102 Award, if the Employee ceases to be employed by the Company or any Affiliate, the Employee shall extend to the Company and/or its
        Affiliate a security or guarantee for the payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102.

    

    
        

    

    
      (c)          Trustee.

    

    
       

    

    
      (i)          All Approved 102 Awards granted under the Plan and any Shares allocated or issued upon exercise of such Approved 102 Awards (“Section 102 Shares”) or other shares
        received subsequently following any realization of rights, including bonus shares, shall be allocated or issued to the Trustee, and shall be held by the Trustee for the benefit of the Participants for such period of time as required by Section 102
        (the “Section 102 Period”). In case the requirements for Approved 102 Awards are not met, then the Approved 102 Awards shall be regarded as Non-approved 102 Awards, all in accordance with the provisions of Section 102.

    

    
       

    

    
      (ii)          Notwithstanding anything to the contrary, the Trustee shall not release any Section 102 Shares or other Shares received subsequently following any realization of
        the Participant’s rights prior to the full payment of the Participant’s tax liabilities arising from the grant, exercise, release or transfer of the Approved 102 Award and any Section 102 Shares or other Shares received subsequently following any
        realization of rights.

    

    
      

      

    

    
      (iii)          With respect to any Approved 102 Awards, subject to the provisions of Section 102, a Participant shall not sell or release from trust any Section 102 Shares or
        any Shares received subsequently following any realization of rights, including bonus shares, until the lapse of the Section 102 Period. Notwithstanding the above, if any such sale or release occurs during the Section 102 Period, the sanctions
        under Section 102 shall apply to, and be borne by, such Participant.

       

      

      
        
          

      

    

    
      

      

    

    
      (iv)          Upon receipt of an Approved 102 Award, the Participant will sign an Award Agreement under which the Participant will agree to be subject to the trust agreement
        between the Company and the Trustee, stating, among others, that the Trustee will be released from any liability in respect of any action or decision duly taken and bona fide executed in relation with the Plan, or any Approved 102 Award or Section
        102 Share granted to him or her thereunder.

    

    
       

    

    
      (v)          As long as Approved 102 Awards granted, or Section 102 Shares are held by the Trustee, then all rights the Participant possesses over such Awards or Shares may not
        be transferred, assigned, pledged or mortgaged by the Participant, other than by will or laws of descent and distribution.

    

    
      

      

    

    
      (vi)          If dividends, whether cash, property or share dividends, are declared on Section 102 Shares held by the Trustee, such dividends shall also be subject to the
        provisions of Section 102 and the provisions of this Section 14. The Section 102 Period for any such additional shares shall be equal to the Section 102 Period for the original Section 102 Shares.

    

    
      

      

    

    
      (vii)          At any time after the end of the Section 102 Period with respect to any Section 102 Awards or Section 102 Shares, the Participant may order (but shall not be
        obligated to order) the Trustee to sell or transfer to the Participant such Section 102 Awards or Section 102 Shares, provided that no securities shall be sold or transferred until all required payments have been fully made: (i) such Participant
        has deposited with the Trustee an amount of money which, in the Trustee’s opinion, is necessary to discharge such Participant’s tax obligations with respect to such Section 102 Awards or Section 102 Shares, or (ii) the receipt by the Trustee of an
        acknowledgment from the ITA that the Participant has paid any applicable tax due pursuant to the Ordinance, or (iii) the Company has made other arrangements for the deduction of tax at source acceptable to the Trustee, or (iv) upon the sale by the
        Trustee of any securities held in trust from the proceeds of which the Company or the Trustee has withheld all applicable taxes and has remitted the amount withheld to the appropriate Israeli tax authorities, has paid the balance thereof directly
        to such Participant, and has reported to such Participant the amount so withheld and paid to such tax authorities.

    

    
       

    

    
      (d)          Integration of Section 102 and Tax Assessing Officer’s Permit.  With regards to Approved 102 Awards, the provisions of the Plan and the Award Agreement shall
        be subject to the provisions of Section 102 of the Ordinance and the Tax Assessing Officer’s permit, and the said provisions and permit shall be deemed an integral part of the Plan and of the Award Agreement.

    

    
      

      

    

    
      (e)          Un Approved 102 Options.  Options granted pursuant to this sub Section (e) shall be subject to the general terms and conditions specified in the Plan, except
        for said provisions of the Plan applicable solely to the requirement of Section 102. Un Approved 102 Options may only be granted (i) to Employees of the Company or its Affiliates that are not Israeli residents or (ii) to Consultants. Such un
        Approved 102 Options may be issued to a trustee appointed by the Administrator (that may also act as the trustee pursuant to the Section 102).

    

    
      

      

      
        
          

      

    

    
      (f)          Tax Consequences.  

    

     

    
      (i)           The Company, or where applicable, the Trustee, shall not be required to release any share certificate to a Participant until all required tax and other payments
        have been fully made.

    

    
       

    

    
      (ii)           Solely for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the date of grant the Company’s shares are listed on
        any established stock exchange or a national market system or if the Company’s shares will be registered for trading within ninety days following the date of grant of the Approved 102 Award, the Fair Market Value of the Shares at the date of grant
        shall be determined in accordance with the average value of the Company’s Shares on the thirty trading days preceding the date of grant or the thirty trading days following the date of registration for trading, as the case may be.

    

    
       

    

    
      15.          Grant of Section 3(i) Awards. In the event that grants are made under Section 3(i) of the Ordinance, the Company may elect to enter into an agreement with a
        trustee concerning the administration of the exercise of Options, the purchase and sale of Shares, and the arrangements for payment of or withholding of taxes due in connection with such exercise, purchase and sale. The trust agreement may provide
        that the Company will issue the Shares to such trustee for the benefit of the Participants. The type of Section 3(i) Awards to be granted under the Plan shall be subject to the provisions of Section 3(i) to the Ordinance.

    

    
       

    

    
      16.          Adjustments Upon Changes in Capitalization, Dissolution or Liquidation or Change of Control.

    

    
       

    

    
      (a)           Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of Ordinary Shares covered by each
        outstanding Award, the number of shares of Ordinary Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Award,
        as well as the price per Ordinary Shares covered by each such outstanding Award shall be proportionately adjusted for any increase or decrease in the number of issued Ordinary Shares resulting from a share split, reverse share split, share
        dividend, combination or reclassification of the Ordinary Shares, or any other increase or decrease in the number of issued Ordinary Shares effected without receipt of consideration by the Company; provided, however, that conversion of any
        convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive.
        Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of
        Ordinary Shares subject to an Award.

       

      

      
        
          

      

    

    
       

    

    
      (b)          Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Participant as soon
        as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for a Participant to have the right to exercise his or her Option prior to such transaction as to all of the Awarded Shares
        covered thereby, including Shares as to which the Award would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option or forfeiture conditions applicable to any Award shall lapse 100%, and that
        any Award vesting shall accelerate 100%, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised (with respect to Options) or vested (with respect
        to other Awards), an Award will terminate immediately prior to the consummation of such proposed action.

    

    
       

    

    
      (c)          Change of Control; Other Adjustments.

    

    
       

    

    
      (i)          If a Change of Control occurs, then, except as otherwise specifically provided by the applicable Award agreement (or any other applicable agreement approved by the
        Administrator and made by the Company with the Participant) each Award outstanding under the Plan immediately prior to the Change of Control will be either assumed and continued in accordance with Section 16(c)(ii) or terminated in accordance with
        Section 16(c)(iii).

    

    
       

    

    
      (ii)          Subject to Section 16(c)(i), if a Change of Control occurs, the parties to the Change of Control may agree that any Award outstanding under the Plan immediately
        prior to the Change of Control shall, at the effective time of the Change of Control, be assumed and continued on substantially the same vesting and other terms and conditions as a like Award with respect to shares of common stock of the successor
        or acquiring company (or a parent company).

    

    
       

    

    
      (iii)          Subject to Section 16(c)(i), any Award outstanding under the Plan immediately prior to a Change of Control that is not assumed pursuant to the preceding section
        will be terminated at the effective time of the Change of Control. No Participant shall be entitled to receive any payments or any other rights with respect to any terminated Options, Restricted Share or Restricted Share Unit that is not vested as
        of the effective time of the Change of Control. If the terminated Award is an Option that is vested as of the effective time of the Change of Control, the holder of the terminated vested Option will be entitled to receive at the effective time of
        the Change of Control a single sum payment equal to the excess, if any, of the transaction value of the Shares that are then covered by the Option over the aggregate exercise price. The amount payable with respect to the termination of an
        outstanding vested Option pursuant to this section will subject to withholding tax (in accordance with the Applicable Laws) and will be paid in cash, at the effective time of the Change of Control, unless the parties to the Change of Control agree
        that some or all of such amount will be payable in the form of freely tradable shares of common stock of the successor or acquiring company (or a parent company).

       

      

      
        
          

      

    

    
      

      

    

    
      (iv)          Without derogating from the above, and subject to the provisions of the Plan and Section 102 of the Ordinance, the Administrator may accelerate the vesting
        schedule or extend the exercisability of any Award and waive conditions or restrictions on any Award, to the extent it shall deem appropriate and subject to the requirements of Section 102 of the Ordinance.

    

    
      

      

    

    
      (v)          In the event of any adjustment in the number of shares covered by any Award pursuant to the provisions hereof, any fractional shares resulting from such adjustment
        shall be disregarded, and each converted Award shall cover only the number of full shares resulting from the adjustment.

    

    
       

    

    
      (vi)          Cash Dividends.  If the Company distributes cash dividends and the record date of such distribution falls prior to the exercise of an Award (including
        unvested Awards), then the exercise price of each Share that is subject to such Award shall be reduced by the gross amount of the cash dividend per share that was paid to the Company’s shareholders pursuant to such distribution provided that the
        exercise price of any Share shall not be lower than the nominal value thereof. The mechanism for adjustment of exercise price in cases of payment of a cash dividend may be amended by the Board in accordance with the requirements or customary
        mechanism implemented on any applicable stock exchange.

    

     

    
      (vii)          All adjustments under this Article shall be made by the Administrator as constituted immediately prior to the Change of Control, and its determination as to what
        adjustments shall be made, and the extent thereof, shall be binding and conclusive.

    

    
       

    

    
      17.          Date of Grant. The date of grant of an Award shall be, for all purposes, even if the Award is subject to the approval of any third party including the
        shareholders of the Company, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each Participant within a
        reasonable time after the date of such grant.

    

    
       

    

    
      18.          Amendment and Termination of the Plan.

    

    
       

    

    
      (a)          Amendment and Termination. Subject to any requirements of Applicable Law, the Board may at any time amend, alter, suspend or terminate the Plan.

    

    
       

    

    
      (b)          Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Participant with respect
        to an outstanding Award, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing (or electronic format) and signed by the Participant and the Company or its Affiliate.

       

      

      
        
          

      

    

    
       

    

    
      19.          Conditions Upon Issuance of Shares.

    

    
       

    

    
      (a)          Legal Compliance. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of the Award or the issuance and delivery of such
        Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.

    

    
      

      

    

    
      (b)          Investment Representations. As a condition to the exercise or receipt of an Award, the Company may require the person exercising or receiving such Award to
        represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
        representation is required.

    

    
      

      

    

    
      (c)          Tax Consequences. Any and all tax consequences arising from the grant, exercise, transfer, or sale of, or otherwise relating to, an Award or from the payment
        for or holding or sale or other disposition of Shares covered thereby or from any other event or act under the Plan (whether of the Participant or of the Company or of an Affiliate or the Trustee (in the case of an Approved 102 Award or a
        Non-Approved 102 Award) shall be borne solely by the Participant. As a condition of the exercise or settlement of an Award, the Company and/or its Affiliates and/or the Trustee (in the case of an Approved 102 Award or a Non-Approved 102 Award)
        shall withhold taxes according to the requirements under the Applicable Laws, including withholding taxes at source. Furthermore, the Participant agrees to indemnify the Company, its Affiliates and the Trustee (in the case of an Approved 102 Award
        or a Non-Approved 102 Award), if applicable, and hold them harmless from and against any and all liability for any tax, or interest or penalty thereon, including liabilities relating to the necessity to withhold, or to have withheld, any tax from
        any payment made to the Participant.

    

    
      

      

    

    
      20.          Liability of Company.

    

    
       

    

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

    

    
       

    

    
      (b)          Grants Exceeding Allotted Shares. If the Awarded Shares covered by an Award exceeds, as of the date of grant, the number of Shares which may be issued under
        the Plan without additional Board and/or shareholder approval, as required under Applicable Laws, such Award shall be void with respect to such excess Awarded Shares, unless Board and/or shareholder approval, as required under Applicable Laws, of
        an amendment sufficiently increasing the number of Shares subject to the Plan is timely obtained in accordance with Section 18 of the Plan.

       

      

      
        
          

      

    

    
       

    

    
      (c)          Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient
        to satisfy the requirements of the Plan.

    

    

    

    
      21.          Governing Law; Jurisdiction 

      

      

    

    
      This Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Israel, except with respect to matters that are subject to tax laws,
        regulations and rules of any specific jurisdiction, which shall be governed by the respective laws, regulations and rules of such jurisdiction. Certain definitions, which refer to laws other than the laws of such jurisdiction, shall be construed in
        accordance with such other laws. The competent courts located in Tel-Aviv-Jaffa, Israel shall have exclusive jurisdiction over any dispute arising out of or in connection with this Plan and any Award granted hereunder. By signing any Award
        Agreement or any other agreement relating to an Award, each Grantee irrevocably submits to such exclusive jurisdiction.

    

    

    

    
      
        

    

     

    APPENDIX A

     

    RADA ELECTRONIC INDUSTRIES LTD. (the “Company”)

     

    
      2021 EQUITY INCENTIVE PLAN

    

    (the “Plan”) - APPENDIX – U.S. TAXPAYERS

    

    

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

     

    This Appendix-U.S. Taxpayers (the "Appendix") to the RADA ELECTRONIC INDUSTRIES LTD 2021 Equity Incentive Plan (adopted on November 3, 2021
      and as amended on December 30, 2021 and as may be further amended from time to time hereafter, and hereinafter referred to as the "Plan") is approved by the Board of Directors of the Company (the "Board") on February 9, 2022 (the "Effective Date").

     

    The provisions specified in this Appendix apply only to persons who are subject to U.S. federal income tax (any such person, a "U.S. Taxpayer").
      This Appendix provides for the grant of Non-Qualified Stock Options, Restricted Shares or Restricted Share Units.  Options granted under this Appendix are not intended to be "incentive stock options" within the
        meaning of Section 422 of the Code.

     

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

     

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

     

    2.          Definitions

     

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

     

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

     

    

    
      
        

    

     

    "Disability" means, for purposes of this Appendix, the Administrator in its discretion may determine whether a permanent and total
      disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time. Notwithstanding the foregoing, for Awards subject to Code Section 409A, Disability shall mean that a Participant is disabled
      under Code Section 409A(a)(2)(C)(i).

     

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

     

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

     

    "Option" means a Non-Qualified Stock Option awarded hereunder.

     

    "Participant" means a Service Provider who receives an Option hereunder.

     

    "Section 83(b) Election" means an election by a Participant to include the Fair Market Value of a Share (less any amount paid for the Share)
      at the time of grant as part of the Participant’s income in accordance with Section 83(b) of the Code. A Section 83(b) Election must be filed in writing with the Internal Revenue Service within thirty (30) days of the date of the Award, with a copy
      to the Company or Affiliate with whom the Participant is employed.

     

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

     

    "Service Provider" shall mean an employee, director, office holder or consultant of the Company or an Affiliate.

     

    3.            Terms and Conditions of Options

     

    Option Agreement Each Option granted under the Plan and this Appendix shall be evidenced by an Option Agreement between the Participant
      and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and this Appendix and may be subject to any other terms and conditions which are not inconsistent with the Plan and this Appendix and which the
      Administrator deems appropriate for inclusion in an Option Agreement. The provisions of the various Option Agreements entered into under the Appendix need not be identical and a Participant may be granted more than one Option.

     

    

    
      
        

    

     

    Eligibility. All Service Providers for whom the Company is an "eligible issuer of service recipient stock" (within the meaning of Code
      Section 409A, and using the 20% ownership test for determining the existence of a controlling interest), as determined by the Board in its sole discretion, are eligible to be granted Non-Qualified Stock Options under this Appendix.   Eligibility for
      the grant of an Option and actual participation in this Appendix and the Plan shall be determined by the Board in its sole discretion.

     

    Exercise Price. Each Option Agreement shall state the exercise price per share of the Shares covered by each Option, which option price
      shall be determined by the Administrator and shall be at least equal to the Fair Market Value per Share on the date of grant of the Option.

     

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

     

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

     

    4.          Restricted Shares; Restricted Share Units and Other Share-Based Awards

     

    Restricted Shares. A grant of Restricted Shares as provided for in the Plan may, but is not required to, have a purchase price which may
      be set at the discretion of the Administrator. In the case of a grant of Restricted Shares for which a purchase price is required, such grant shall not be made until arrangements for payment of the purchase price have been established that are
      satisfactory to the Administrator. In accordance with the terms of the Code, a Participant shall be responsible for payment of all taxes incurred in connection with the grant of Restricted Shares. Accordingly, upon the vesting of Restricted Period,
      or upon making a Section 83(b) Election, a Participant shall make provision for the payment of all required withholding to the Company in accordance with Section 19(c) of the Plan.

     

    Restricted Share Units and Other Share-Based Awards. The conditions and dates upon which Restricted Share Units and other equity-based
      and Share-based awards become vested and nonforfeitable and upon which the Shares underlying the Restricted Share Units and other equity-based and Share-based awards may be issued, in all cases, will be subject to compliance with Code Section 409A or
      exemption therefrom.

     

    

    
      
        

    

     

    	5.	
            Certain Adjustments

          

    

    

     The Administrator may make adjustments of the type described in Section 16 of the Plan (other than as provided for in Section 16(c)(vi) of the Plan for regular cash dividends
      relating to Options), or any other event, if the Administrator determines that adjustments are appropriate to avoid distortion in the operation of the Plan and to preserve the value of Awards made hereunder, subject to requirements for qualification,
      including continued qualification with, or exemption from, the requirements of Section 409A. Without limiting the generality of the foregoing, upon the occurrence of a cash distribution with respect to the Shares that constitutes a corporate
      transaction described in Treasury Regs. §1.424-1(a)(3)(ii) (an extraordinary dividend), the per share exercise price of each outstanding Option shall be reduced following the extraordinary dividend by an amount equal to the lesser of (i) the per
      Share extraordinary dividend, or (ii) the maximum reduction that can be made without jeopardizing the status of such Options as an exempt stock right under Section 409A and without otherwise resulting in an acceleration of taxable income under the
      Option, all as determined by the Administrator; provided, however, that, to the extent permitted by Code Section 409A, the Administrator may determine, in its sole discretion, to pay a cash bonus on such terms as the Administrator determines with
      respect to all or a portion of the Options outstanding on the date of the extraordinary dividend in lieu of reducing the exercise price of such Options as provided for in this Section 6.

     

    	6.	
            Term of Appendix

          

    

    

    Subject to any other applicable approval, the Appendix became effective upon the Effective Date. Unless (i) this Appendix is sooner terminated under Section 7 of this Appendix or
      (ii) the Plan is sooner terminated, the Appendix will continue in effect for a term of 10 years from its Effective Date and thereafter terminate (except as to Awards outstanding on that date).

     

    7.          Amendment of Appendix

     

    This Appendix may be amended or terminated in accordance with the terms governing the amendment or termination of the Plan; provided, however, that unless otherwise determined by
      the Board, an amendment which requires shareholder approval in order for the Plan to continue to comply with any applicable law, regulations or under the rules of any exchange or system on which the Company’s securities are listed or traded at the
      request of the Company, shall not be effective unless approved by the requisite vote of shareholders. For this purpose, no amendment may be made without the approval of the shareholders of the Company entitled to vote in accordance with applicable
      law that would allow for Options to qualify as Incentive Stock Options.

     

    8.          Compliance with Code Section 409A

     

    Although the Company does not guarantee to a Participant, any particular tax treatment of Awards, Awards are intended be designed and operated in such a manner as to be exempt from
      the application, or in compliance with the requirements, of Code Section 409A.  Each Award granted pursuant to the Plan, this Appendix and the applicable Award Agreement is intended to comply with (or be exempt from) the requirements of Code
      Section 409A and any ambiguities or ambiguous terms herein will be construed and interpreted in accordance with such intent. By way of example, and not limitation, (i) Options are intended to be exempt from the application of Code Section 409A either
      pursuant to U.S. Treasury Regulation Section 1.409A-1(b)(5)(i)(A) as non-statutory stock options not providing for the deferral of compensation and (ii) Restricted Share Units are intended to comply, to the greatest extent possible, with the
      “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4), and such Awards shall be administered and interpreted in a manner that complies with such exemptions.   Notwithstanding the foregoing, if this Award is interpreted as
      not being exempt from Code Section 409A, it shall be interpreted to comply with the requirement of Code Section 409A so that this award is not subject to additional tax or interest under Code Section 409A.  In no event whatsoever shall the Company be
      liable for any additional tax, interest or penalties that may be imposed on the Participant by Section 409A of the Code or for any damages for failing to comply with Section 409A of the Code.

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