Document:

Exhibit
4.3

 

Agreement

Made
and signed in Tel Aviv on April 11, 2019

 

Between

Kibbutz
Nir Oz Agricultural Cooperative Association Ltd.

Number
- 57-001371-4

Mobile
Post Hanegev Nir Oz 85122

(hereinafter
- “the Kibbutz”)

 

Of
the one part

 

And
Between

Canndoc
Ltd. pcn 514418581

Of
15 Bialik Street, Tel Aviv

(hereinafter
- “Canndoc”)

 

Of
the second part

 

And
Between

Canndoc
Nir Oz Agricultural Cooperative Association Ltd. (under establishment)

Mobile
Post Hanegev Nir Oz 85122

(hereinafter
- “the Corporation”)

 

Of
the third part

 

Whereas:

 

		(a)	The
                                            Kibbutz is the holder of the lease rights in the Property (as defined below, by virtue of
                                            a square lease agreement with the Israel Land Authority (“ILA”) of 22.6.2016.

 

		(b)	And
                                            a joint agricultural venture is carried out on the property, by the Kibbutz and the Adler
                                            family in the framework of the Nirad - Agricultural Cooperative Association Ltd. which was
                                            approved under the Settlement Law (as defined below).

 

		(c)	And
                                            Canndoc engages in breeding and cultivation of medical cannabis, it has the information,
                                            unique know-how, and extensive experience in everything related to cultivation, breeding,
                                            and marketing of cannabis, and it holds a suitable license for such activity which it received
                                            from the Ministry of Health.

 

    	 

    	 

    

 

		(d)	And
                                            the parties have agreed to the establishment, operation, and management of a joint venture
                                            in the field of cultivation and breeding of medical cannabis to be carried out in the Property
                                            in the framework of the Corporation, where the rate of holdings of the Kibbutz shall be 26%
                                            and the rate of holdings of Canndoc shall be 74%.

 

Accordingly
it was agreed between the parties as follows:

 

1. Preamble, appendices and interpretation

 

		1.1.	The
                                            preamble to this agreement constitutes an inseparable part thereof.

 

		1.2.	The
                                            appendices cited in this agreement constitute an inseparable part thereof.

 

		1.3.	The
                                            headings of the clauses are for convenience only. They shall not be relied upon for interpretation
                                            of the agreement.

 

		1.4.	In
                                            this agreement, the masculine shall include the feminine and vice versa. The singular shall
                                            include the plural and vice versa. Terms such as “including” shall be interpreted
                                            broadly.

 

		1.5.	This
                                            agreement was drafted by both parties.

 

2. Definitions

 

In
this agreement, the following terms shall have the meanings below unless the written content obligates otherwise:

 

	 	Legal
    requirements:	Requirements
    by virtue of the law, regulations, and orders as revised from time to time.
	 	 	 
	 	Regulatory
    Requirements:	Requirements,
    directives, opinions, and dictation of methods for conduct or action as issued or shall be issued from time to time by regulatory
    bodies, including but without minimizing, the Ministry of Health and the Israel Police. That stated also includes the terms of any
    license and/or permit related to and/or which shall be related to the use of the Property in general and the Project in particular.

 

    	 

    	 

    

 

	 	The
    Option:	The
    Option issued to the Corporation under this Agreement to receive the right of use in the Additional Property (as defined below) for
    purposes of the Project (as defined below).
	 	 	 
	 	Exercise
    Notice:	A
    written notice which shall be delivered - if delivered - by the Corporation and Canndoc to the Kibbutz, notifying of exercise of
    the Option in which there shall be noted, inter alia, the area to which the exercise relates. Such notice must be delivered during
    the Option period and at least 30 days prior to the date on which the use of the area for which the Option was exercised shall commence.
    
	 	 	 
	 	The
    Greenhouses:	67
    Dunam of greenhouses on the Property (as defined below).
	 	 	 
	 	The
    Determining Date:	The
    date on which the last of the suspending conditions determined in this agreement shall be fulfilled.
	 	 	 
	 	The
    Property:	A
    piece of land in an area of 100 Dunam together with an operational area bounded in red in the diagram attached to this agreement
    as Appendix 2.
	 	 	 
	 	This
    Agreement or the Agreement:	Including
    all of the appendices indicated therein.
	 	 	 
	 	The
    Project:	The
    Project of the cultivation and breeding of medical cannabis which shall be carried out, managed, and operated within the bounds of
    the Property in accordance with the provisions of this Agreement.
	 	 	 
	 	The
    Additional Property:	A
    50 Dunam piece of land (within the bounds of the Property) which includes 70 Dunam of greenhouses, composed of Area A and Area B
    (as defined below).
	 	 	 
	 	The
    Initial Area:	An
    area of 50 Dunam of greenhouses (within the bounds of the Property) including an operational area, bound in entirety in the color
    brown in Appendix 2.

 

    	 

    	 

    

 

	 	The
    Corporation:	The
    Corporation (as defined in the preamble) established by the parties for the execution of the agricultural venture of cultivation
    and breeding of medical cannabis on the property in accordance with this Agreement.
	 	 	 
	 	The
    Settlement Law:	The
    Agricultural Settlement Law (exceptions to use of agricultural land and water) - 1967.
	 	 	 
	 	Business
    Day:	The
    days of the week, Sunday through Thursday, not including holidays, holiday eves and declared sabbatical days (such as election days
    for instance).
	 	 	 
	 	The
    Date of the Signature:	The
    Date of the Signature upon this Agreement as appearing at the head of the Agreement.
	 	 	 
	 	ILA:	Israel
    Land Authority.
	 	 	 
	 	Area
    A:	An
    area of 17 Dunam of greenhouses (within the bounds of the Additional Property) bound in blue in Appendix 2.
	 	 	 
	 	Area
    B:	An
    area of 33 Dunam - bare - (within the bounds of the Additional Property) bound in purple in Appendix 2.
	 	 	 
	 	The
    Option Period:	A
    period commencing on the Date of the Signature upon this Agreement and ending at the end of the fifth year from the aforementioned
    date or on the date in which the Option will be cancelled by the Corporation in accordance with the provisions of this Agreement,
    the earlier of these. 
	 	 	 
	 	The
    Period of the Agreement:	The
    first period and the additional period (if the Option in respect thereof shall be exercised), as these terms are defined in clause
    9 below.
	 	 	 
	 	Standard:	The
    Standard known as IMC-GAP + GSP

 

3. The Corporation

 

		3.1.	Immediately
                                            after the signature upon this Agreement, the parties will establish the Corporation, which
                                            shall be incorporated as an Agricultural Cooperative Association Ltd., when an application
                                            to receive the permit indicated in clause 15.1.1 below shall be filed immediately after the
                                            signature upon this Agreement

 

    	 

    	 

    

 

		3.2.	The
                                            Articles of Incorporation of the Corporation are attached as Appendix 3.2 A of this
                                            Agreement (hereinafter - “the Articles of Incorporation”). Additional
                                            provisions regulating the corporal governance of the Corporation and the agreement between
                                            the members therein are set forth in Appendix 3.2 B of this Agreement. In any event
                                            of contradiction between the clauses in this Agreement (and its appendices) and between the
                                            Articles of Incorporation, the provisions of this Agreement shall prevail and the parties
                                            undertake to vote and/or cause whomever shall act on their behalf and in their stead, to
                                            vote in the authorized organs of the Corporation, as shall be necessary in order to grant
                                            full and binding validity to the understandings set forth in this Agreement.

 

		3.3.	The
                                            rate of holdings of each of the parties in the Corporation shall be as follows: the Kibbutz:
                                            26%, Canndoc: 74%.

 

4. The Property

 

		4.1.	The
                                            right of use with respect to every part of the Property which is issued and/or shall be issued
                                            to the Corporation pursuant to this Agreement shall be solely and exclusively for purposes
                                            of the Project and not for any other purpose and the Corporation shall not make any use of
                                            the Property which is not included in the Project.

 

		4.2.	The
                                            right of use issued with respect to each part of the Property shall be subject to all of
                                            the relevant provisions in this Agreement.

 

		4.3.	On
                                            the Determining Date, the right of use in the Initial Area shall be granted, in light of
                                            the undertaking to carry out maximum cultivation in all of the Initial Area.

 

    	 

    	 

    

 

		4.4.	Subject
                                            to fulfillment of all of the undertakings of the Corporation and Canndoc on the date in which
                                            the Exercise Notice shall be issued by them with respect to every part of the Additional
                                            Property, the Option shall be exercisable for all of the areas constituting the Additional
                                            Property or for any of them as specified below. The Option may be exercised, solely and exclusively
                                            by delivery of the Exercise Notice (as defined above) with respect to the entirety of the
                                            Additional Property or part thereof. However, if the exercise shall be only with respect
                                            to a part of the Additional Property, it must be carried out in the following manner and
                                            order: first, with respect to Area A. Second, with respect to Area B. For the sake of removal
                                            of doubt it is clarified that there is no obligation to exercise the Option with respect
                                            to the entire Additional Property, however and as an example, if the Option shall be exercised
                                            only once, and not with respect to all of the additional property, the right of use shall
                                            apply to the Initial Area and to Area A alone. Exercise of the Option means an unqualified
                                            undertaking of the Corporation and Canndoc to actually performs cultivation (as distinct
                                            from breeding) in all of the area which shall be exercised and accordingly, performance of
                                            all of the investment involved therein.

 

		4.5.	It
                                            is agreed that the area allotted for breeding in the entirety of the area of the Property
                                            (meaning also after exercise of the Option with respect to all of the Additional Property)
                                            shall not exceed 7 (seven) Dunam, when the remainder of the area of the Property will be
                                            used for cultivation. An increase of the breeding area beyond the 7 Dunam is subject to the
                                            consent of the Kibbutz in advance and in writing, when in any event, if the breeding area
                                            shall be larger, the Corporation will be entitled to payment from Canndoc in accordance with
                                            the formula based upon quantity of tons produced per Dunam in practice, in such year
                                            from the other blossoming areas. Notwithstanding that stated, the Corporation will in any
                                            event be entitled to payment from Canndoc in respect of the breeding based upon the formula
                                            of quantity of tons produced per Dunam in practice in such year from the other blossoming
                                            areas.

 

		4.6.	The
                                            Corporation and/or Canndoc are entitled to notify the Kibbutz in writing of cancellation
                                            of part of the unutilized Option at any point in time during the Option Period, when for
                                            removal of doubt it is clarified that they shall not be entitled at any time to refund of
                                            any payment made prior thereto.

 

		4.7.	At
                                            the end of the Option Period (whether due to expiry of the Option Period or due to its cancellation
                                            in accordance with the provisions of this Agreement), it shall automatically expire and no
                                            notice shall be required to the Corporation/Canndoc with respect to the expiry or loss of
                                            validity thereof.

 

    	 

    	 

    

 

		4.8.	If
                                            the Option was cancelled or expired, the Kibbutz shall be entitled to make use of such part
                                            or parts with respect to which the Option was not exercised prior to the cancellation.

 

		4.9.	The
                                            provisions set forth in Appendix 4.9 of the Agreement as well as the following provisions,
                                            shall apply to the use of the Corporation in the Property:

 

		4.9.1.	The
                                            use will not cause a nuisance to the individual or to the public.

 

		4.9.2.	The
                                            use will adhere to environmental quality aspects.

 

		4.9.3.	The
                                            use will conform at all times and fully to all of the Legal and Regulatory Requirements,
                                            including the terms of the licenses and permits.

 

		4.9.4.	The
                                            Corporation will not construct, not establish and not place (permanent or mobile) structures
                                            on the Property, facilities and/or additions or changes to construction of any type or kind
                                            whatsoever (other than changes which do not require a building permit at law) without receiving
                                            the consent in advance and in writing of the Kibbutz and subject to the terms accompanying
                                            such consent, if any.

 

		4.9.5.	The
                                            Kibbutz will not unreasonably refuse such construction, establishment, placement, or installation
                                            which shall be required due to Legal or Regulatory Requirements (such as, but not only, for
                                            security or guarding purposes) or for purposes of actions required of the Corporation in
                                            the framework of the Project.

 

		4.9.6.	In
                                            any instance where the Kibbutz shall grant its approval in accordance with the preceding
                                            clause, all of the investments and/or construction and/or installation and/or connections
                                            shall remain in place, without entitling the Corporation and/or Canndoc any right to payment
                                            whatsoever and/or refund of investment and/or improvement whatsoever.

 

    	 

    	 

    

 

		4.9.7.	At
                                            the end of the Agreement Period, the Property will be vacated when it is in the same condition
                                            as it was on the eve of this Agreement, save for ordinary wear and tear - to such extent
                                            as wear and tear is relevant to the object. At all times and in any event, the Corporation
                                            and/or Canndoc will not be entitled to a refund of investment and/or improvement and/or any
                                            other payment which they bore in connection with the Greenhouses and/or the Property, including
                                            new construction which shall remain as stated. For removal of doubt - nothing in that stated
                                            shall detract from the obligation of the Corporation and/or Canndoc to vacate the Property
                                            of any person and/or item including removal of all of the waste to a licensed site and leaving
                                            the Property in a clean and orderly fashion.

 

		4.10.	Operational
                                            areas - operational areas required solely and exclusively for the Project (are marked in
                                            the diagram in Appendix 2), and the Corporation will be entitled to make nonexclusive
                                            use thereof (together with the remainder of the Kibbutz and/or others on behalf of the Kibbutz).
                                            For removal of doubt it is clarified that the obligation of the Corporation to bear the maintenance
                                            and expenses and current payments in connection with the property including as specified
                                            in Appendix 4.9 shall apply to the operational areas as well (despite the nonexclusive
                                            use).

 

5. Declarations of Canndoc

 

Canndoc
declares, confirms and undertakes as follows:

 

		5.1.	It
                                            has seen and examined the Property and the Greenhouses, the access routes to the Property
                                            and the environmental conditions relevant to the activity of the type of the Project, and
                                            has found that stated suitable for purposes of the Project and subject to the veracity of
                                            the declarations of the Kibbutz in this Agreement, it does not and shall not have any contentions
                                            of nonconformity whatsoever. To such extent as the Project shall require any modifications
                                            in connection with that stated above or at all, these modifications shall be at the responsibility
                                            of Canndoc.

 

		5.2.	It
                                            has up to date information, unique know-how and extensive experience in the field of breeding
                                            and cultivation of medical cannabis and in all of the activities ancillary thereto or required
                                            thereof, and it shall provide, its know-how and experience permanently, continuously and
                                            without consideration, for the performance of the Project, and shall be responsible for everything
                                            related to the use of the information and utilization of the know-how and experience in the
                                            optimum manner for the benefit of the Project.

 

    	 

    	 

    

 

		5.3.	Canndoc
                                            has issue notice that the intellectual property rights related to the unique know-how of
                                            Canndoc and the protocols prepared by it related to cultivation and breeding of medical cannabis,
                                            belong to Canndoc, and the Kibbutz and the Corporation confirm receipt of such notice. In
                                            light of that stated above, it is agreed that the right of the Kibbutz and the Corporation
                                            in connection with the know-how and the protocols as stated, is the right provided by Canndoc
                                            to make use of the know-how and the protocols for purposes of the Project alone.

 

		5.4.	Use
                                            of the know-how and the protocols of Canndoc in the framework of the Project as stated shall
                                            not breach intellectual property rights or other rights of third parties, and as of the Date
                                            of the Signature, no contention has been directed at it whereby use of its know-how and protocols
                                            in any framework violates or may violate any third-party rights whatsoever.

 

		5.5.	Canndoc
                                            will verify that at all times the Project will comply with all of the Legal and Regulatory
                                            Requirements related and/or connected to the Project, and it shall be Canndoc’s responsibility
                                            to cause and verify that all of the aforementioned requirements are fulfilled in language
                                            and in spirit, at all times.

 

		5.6.	It
                                            holds a license for the cultivation and breeding of medical cannabis from the relevant unit
                                            in the Ministry of Health.

 

		5.7.	It
                                            shall act (at its expense) to obtain all of the licenses and permits required and/or which
                                            shall be required for the operation of the Project by the Corporation at every point in time
                                            throughout the lifespan of the Project from all of the relevant parties, including a building
                                            permit for the post-harvest facility on the Property, and this by October 1, 2019. That stated
                                            above includes modification of anything existing on the Property in order that it shall be
                                            possible to carry out the project in accordance with the provisions of this Agreement.

 

    	 

    	 

    

 

		5.8.	It
                                            has the ability to market the products of the Project in Israel and throughout the world,
                                            subject to fulfillment of relevant Regulatory Requirements (it is clarified that as of the
                                            Date of the Signature upon this Agreement Canndoc has not yet marketed products overseas).

 

		5.9.	It
                                            is aware and agrees that the rights of the Kibbutz in the Corporation may not be diluted.

 

		5.10.	Subject
                                            to fulfillment of the suspending conditions, there is no bar from its perspective to its
                                            engagement in this agreement and its performance in accordance with and subject to its terms.

 

6. Declarations of the Kibbutz

 

The
Kibbutz declares, confirms, and undertakes as follows:

 

		6.1.	There
                                            is no bar from its perspective to its engagement in this Agreement and its performance in
                                            accordance with and subject to the provisions thereof, including fulfillment of the suspending
                                            conditions and/or approval of the ILA as shall be needed.

 

		6.2.	The
                                            existing greenhouses on the Property were issued and have building permits.

 

		6.3.	The
                                            agricultural venture underway on the Property on the eve of the signature upon this Agreement,
                                            in which it is a partner, was issued a license pursuant to the Settlement Law, which is valid.

 

		6.4.	As
                                            of the Date of the Signature, no demand was directed at it from any competent Authority concerning
                                            a lack of a building permit or other license required for the activity conducted in Property
                                            on the eve of the signature upon this Agreement.

 

7. The Additional Property

 

		7.1.	During
                                            the course of the Option Period, the Kibbutz shall be responsible to maintain the existing
                                            condition of the Additional Property and for the ongoing maintenance of the existing Greenhouses
                                            in the Additional Property. It is clarified that one is speaking of a minimal level of maintenance
                                            and that the making available of the Greenhouses to the Project subsequent to exercise of
                                            the Option will be made when the Greenhouses are in their condition (As Is) on the Date of
                                            the Signature upon this Agreement, subject to reasonable wear and tear in light of their
                                            condition on the Date of the Signature and the period which shall pass until the exercise
                                            of the Option. That stated refers to full exercise of the Option, mutatis mutandis for partial
                                            exercise and/or partial exercises.

 

    	 

    	 

    

 

		7.2.	In
                                            respect of the maintenance of the Property as stated in clause 7.1 above, during the course
                                            of the Option Period, the Kibbutz shall be entitled to receive NIS 50,000 per annum from
                                            the Corporation, with the addition of VAT at law, and this for so long as the Option has
                                            not been exercised in full or until the date in which the Corporation has notified of cancellation
                                            of the Option in writing.

 

		7.3.	For
                                            the sake of removal of doubt, it is clarified hereby that the use by the Kibbutz of areas
                                            which border and/or are in the same areas as the Additional Property, shall be in accordance
                                            with the restrictions set forth in Appendix 7.3. The parties will determine
                                            work procedures between them for performance of coordination as required.

 

8. Inputs of the Project

 

		8.1.	Throughout
                                            the duration of the Agreement, the Kibbutz will provide and supply the following resources
                                            to the Corporation:

 

		8.1.1.	Ancillary
                                            services for agriculture, subject to a separate agreement in writing.

 

		8.1.2.	Accounting.

 

		8.1.3.	Various
                                            services to such extent as shall be concluded separately, such as metal works, vehicles mechanic
                                            services.

 

		8.1.4.	Use
                                            of existing infrastructure in the Property and existing attachments.

 

		8.2.	Throughout
                                            the period of the Agreement, Canndoc will provide and supply the following resources to the
                                            Corporation:

 

    	 

    	 

    

 

		8.2.1.	Resources
                                            required for obtaining all of the permits and licenses required for the Project in accordance
                                            with the law, including as specified in clause 5.7 above.

 

		8.2.2.	Modification
                                            of the Greenhouses, in such manner that they shall comply with the Standard, including as
                                            specified in clause 5.1 and 5.7 above.

 

		8.2.3.	Know-how,
                                            agrotechnical assistance, supervision, and supply of the required breeding material for the
                                            Project as specified in clause 5.2 above.

 

		8.3.	To
                                            such extent as not determined otherwise explicitly in this Agreement, provision of services
                                            and/or inputs by any of the founders, including their scope and the proceeds paid in respect
                                            thereof, will be determined by agreement.

 

9. Purchase of the Crops by Canndoc

 

		9.1.	Canndoc
                                            undertakes to purchase from the Corporation, and the Corporation undertakes to sell to Canndoc,
                                            the entirety of the production of the Project, under terms which shall be concluded in writing
                                            between all of the parties to this Agreement from time to time. Without detracting from that
                                            stated, it is agreed that in addition to the payment for every ton of crop, Canndoc shall
                                            make payments based on growth success every year when the total production of the Project
                                            shall exceed 50 tons of crop and enlarged success bonus in every year where the total production
                                            shall exceed 75 tons of crop.

 

10. The Period of the Agreement

 

		10.1.	Unless
                                            cancelled earlier in accordance with its conditions and/or the nonfulfillment of any of the
                                            suspending conditions, this agreement shall be valid for a period of ten years starting 1.4.2019
                                            (hereinafter - “the First Period”).

 

		10.2.	The
                                            Corporation has the option to extend the Agreement period by an additional period of ten
                                            years (hereinafter - “the Additional Period”) and this, subject to the
                                            following cumulative conditions:

 

    	 

    	 

    

 

		10.2.1.	Until
                                            the date of the issue of the notice upon exercise of the Option, there shall be no material
                                            breach of the Agreement by the Corporation and/or by Canndoc, which was not remedied within
                                            the periods determined in this agreement.

 

		10.2.2.	Exercise
                                            of the Option must be made by the issue of notice in writing by the Corporation and Canndoc
                                            jointly to the Kibbutz at least six months prior to the date of the expiry of the First Period.
                                            Such notice which shall be delivered shall be irrevocable and may not be cancelled.

 

		10.2.3.	An
                                            application for a permit in accordance with the Settlement Law shall have been filed for
                                            the Additional Period and approval shall have been obtained by the date of the passage of
                                            the Frist Period.

 

		10.2.4.	If
                                            the Agreement has been extended for the Additional Period, all of the provisions of this
                                            Agreement shall apply during the Additional Period, mutatis mutandis.

 

		10.3.	It
                                            is agreed that in the event where the competent Authority at law shall not approve the export
                                            of cannabis products from Israel by the expiry of 24 months from the Date of the Signature
                                            upon this Agreement, and the Corporation has notified by the end of such period upon cancellation
                                            of the Option, the First Period shall be abridged to 5 years from the date of commencement
                                            of this Agreement and the Additional Period shall be one period of 5 years.

 

		10.4.	Notwithstanding
                                            that stated above, each party shall be entitled to cancel the Agreement prior to the end
                                            of its Period (whether the First Period or the Additional Period), upon the occurrence of
                                            one or more of the following events to the counterparty or by the counterparty:

 

		10.4.1.	In
                                            instances where the law entitles the party to cancel the Agreement, unless the cancellation
                                            is due to a breach which may be remedied and it was remedied within 21 days from the date
                                            in which the party in breach was demanded in writing to remedy the breach.

 

    	 

    	 

    

 

		10.4.2.	If
                                            breach of the Agreement is expressed in nonpayment of an amount due from one party to the
                                            counterparty on the date determined for its payment, the remedy period for such breach shall
                                            be 7 days only.

 

		10.4.3.	In
                                            the event where a party to the Agreement has decided to adopt or has adopted or there was
                                            adopted against it, proceedings in the field of insolvency (such as but not only, the appointment
                                            of a liquidator, the appointment of a receiver of assets, an application for an order of
                                            a stay of proceedings, a lien over the assets which may prevent the party from fulfilling
                                            undertakings pursuant to this agreement) and such process was not cancelled within 45 days.

 

		10.5.	Cancellation
                                            of the Agreement in the aforementioned circumstances will be by notice in writing which shall
                                            be delivered by the cancelling party to the counterparty and which shall specify the reason
                                            for the cancellation.

 

		10.6.	In
                                            the event of an occurrence which constitutes force majeure (such as, for instance, an event
                                            of a security nature), which shall impact the possibility to continue and carry out the Project,
                                            the parties shall conduct negotiations between them concerning the manner of continuation
                                            of the Project with the aim of mitigating the damages and losses and with the aim of continuing
                                            the Project after the passage of the influence of such event, in an optimal manner and in
                                            light of the circumstances of the matter. An event as stated which shall prevent the majority
                                            of the material activity in the framework of the Project for a continuous period of six months
                                            or more, will entitle the Corporation to notify upon the cancellation of the Agreement and
                                            in such instance, the parties will conduct negotiations concerning the manner and the date
                                            of termination of the Project and all of that arising therefrom.

 

11. Noncompetition

 

		11.1.	For
                                            so long as the engagement between the parties is valid and for so long as the Option is valid
                                            until its full exercise and subject to its full exercise (meaning all of the Property), and
                                            for so long as Canndoc and the Corporation fulfill all of their undertakings towards the
                                            Kibbutz and/or a party on behalf of the Kibbutz pursuant to this Agreement and/or any other
                                            agreement - the Kibbutz undertakes not to allow any third-party to receive rights in a land
                                            square in the Kibbutz for purposes of cultivation and breeding of medical cannabis, and not
                                            to engage in the field of cultivation and breeding of medical cannabis itself and/or together
                                            with others in Israel or outside of Israel.

 

    	 

    	 

    

 

		11.2.	Canndoc
                                            undertakes that the Property will constitute its principal cultivation center in Israel,
                                            (subject to the reporting obligation of Canndoc in accordance with the Securities Authority
                                            to report thereupon) and that during the course of the Period of the Agreement, it shall
                                            not operate in Israel, directly or indirectly, itself or together with others or by means
                                            of others, in the field of cultivation and breeding of medical cannabis other than in the
                                            framework of the Project. Subject to the Property constituting the principal center of cultivation
                                            as stated above, it is agreed that that stated below shall not constitute breach on the part
                                            of Canndoc.

 

		11.2.1.	Indoor
                                            cultivation which is up to 15 Dunam.

 

		11.2.2.	Cultivation
                                            for research purposes only, up to 15 Dunam.

 

		11.2.3.	Cultivation
                                            at Kibbutz Beit Ha’Emek, up to 16 Dunam.

 

		11.2.4.	Cultivation
                                            of Canndoc with a third-party (one or more) in blossoming in a cumulative area of up to 6
                                            (six) Dunam. For removal of doubt, any cultivation beyond this shall be subject to the consent
                                            in advance and in writing of the Kibbutz, and in any event, if such consent shall be received,
                                            as part of the conditions thereto, Canndoc shall pay for the cultivation with the third-party
                                            in accordance with the formula base on the quantity of tons of crop in the areas of the Project.

 

		11.2.5.	Notwithstanding
                                            that stated in clause 11 above, to such extent as the Option shall not be exercised and nonexercise
                                            of the Option shall be due to one or more of the following events and not due to a temporary
                                            event (as defined below): (a) the Additional Property is not suitable for cultivation of
                                            medical cannabis, (b) a material security even occurred which prevents cultivation of medical
                                            cannabis in the Additional Property for an extended period, then Canndoc shall be entitled
                                            to operate in Israel in the field of activity and not only on the Property and in such case
                                            the Kibbutz shall be released of the noncompetition stipulation in clause 11 above.

 

    	 

    	 

    

 

		11.3.	With
                                            respect to clause 11.2.5 above “a temporary event” means - a material
                                            security event which shall prevent the majority of the material activity in the framework
                                            of the Project for a continuous period of up to six months.

 

		11.4.	It
                                            is agreed, that subject to the exercise of the entirety of the Option and full and maximum
                                            cultivation in all of the areas of the Property, the noncompetition limitation shall not
                                            apply to the parties. Without detracting from that stated, Canndoc undertakes after full
                                            exercise of the Option as stated, to such extent as it shall seek to cultivate in additional
                                            areas in any manner whatsoever, to grant the Kibbutz a right of first refusal for its engagement
                                            with any third-party concerning an area exceeding 20 Dunam, and the following provisions
                                            shall apply:

 

		11.4.1.	Canndoc
                                            shall be obligated to deliver notice to the Kibbutz (hereinafter in this clause - “the
                                            Offer Letter”) upon its intent to engage with a third-party (hereinafter - “the
                                            Potential Party”) concerning cultivation in an area exceeding 20 Dunam (hereinafter
                                            - “the Additional Area”). The Offer Letter will set forth the name of
                                            the Potential Party, the financial and other terms of the engagement with respect to the
                                            area as stated.

 

		11.4.2.	The
                                            Kibbutz shall have forty-five (45) days from the date of receipt of the Offer Letter to confirm
                                            its agreement to engage with Canndoc (hereinafter - “the Offer Period”)
                                            with respect to the Additional Area under the terms set forth in the Offer Letter (hereinafter
                                            -”the Acceptance Letter”) and in such instance, a binding engagement will
                                            be consummated between Canndoc and between the Kibbutz, with respect to the Additional Area,
                                            in accordance with that stated in the Offer Letter.

 

		11.4.3.	If
                                            an Acceptance Letter was not issued within the Offer Period, Canndoc shall be entitled to
                                            engage with the Potential Party, and provided that the engagement in the transaction with
                                            the Potential Party will be carried out not later than the passage of forty-five (45) days
                                            from the end of the Offer Period, pursuant to the terms of the Offer Letter.

 

    	 

    	 

    

 

		11.4.4.	If
                                            an engagement with a Potential Party was not carried out within the forty-five (45) days
                                            from the end of the Offer Period, pursuant to the terms of the Offer Letter, the engagement
                                            with respect to the Additional Area will again be subject to the right of first refusal pursuant
                                            to this clause 11.4.

 

12. Confidentiality

 

		12.1.	The
                                            details of this Agreement and any information which shall reach one party from the other
                                            pursuant to this Agreement (hereinafter - “the Information”) shall be
                                            maintained by the parties in confidence, shall not be disclosed to third parties and no use
                                            will be made in such information, other than for purposes of performance of this agreement
                                            and performance of the Project.

 

		12.2.	Notwithstanding
                                            that stated, a party to this Agreement shall be entitled to disclose information to its employees,
                                            members, partners, representatives, actual and implied supervisors, and consultants, when
                                            the party receiving the Information will adopt reasonable steps in order that the recipient
                                            of the Information from him as stated shall not make use of the Information other than for
                                            fulfillment of this agreement and shall not disclose it to any third-party.

 

		12.3.	The
                                            undertaking to maintain confidentiality and nonuse as stated, shall not apply, or shall cease
                                            to apply, in any one of the following instances:

 

		12.3.1.	Information
                                            whose disclosure will be required by a competent Authority and by various regulators.

 

		12.3.2.	Information
                                            which shall be delivered ahead of or in the framework of legal proceedings.

 

		12.3.3.	Information
                                            which was in the possession of the party prior to receiving it from the counterparty.

 

		12.3.4.	Information
                                            which is deemed public domain on the Date of the Signature or shall become such thereafter,
                                            other than as a result of an act or omission of the recipient of the information or a party
                                            on its behalf.

 

    	 

    	 

    

 

		12.3.5.	Information
                                            which shall reach a party from any third-party where to the best of the knowledge of the
                                            party, the recipient of the Information is not obligated in confidentiality towards the other
                                            party.

 

		12.3.6.	Information
                                            which a party whose shares or the shares in the corporation controlling it or controlled
                                            by it are traded on a recognized stock exchange, and it is obligated in its disclosure in
                                            the framework of the law and the rules applying to such entity.

 

13. Investment option for the Kibbutz

 

		13.1.	The
                                            Kibbutz shall have an option to invest in Canndoc or in a corporation associated with Canndoc
                                            in accordance with the provisions of Appendix 13.1 of this Agreement.

 

14. Services to the Project by other parties

 

		14.1.	The
                                            Corporation and the Kibbutz will discuss additional services which the Kibbutz may provide
                                            to the Corporation during the course of the period of the Agreement. In any event, the Kibbutz
                                            will have a first right to provide services which are relevant to the activity in question
                                            in the Project, which the Corporation will seek to acquire during the course of the period
                                            of the agreement.

 

		14.2.	The
                                            Corporation will acquire electricity and water services from the Kibbutz in accordance with
                                            the Israel Electricity Company and Water Authority prices (respectively) as customary with
                                            respect to other businesses in the area of the Kibbutz.

 

15. Suspending conditions

 

		15.1.	Cumulative
                                            suspending conditions for performance of this Agreement are specified below, and the nonfulfillment
                                            of any of the aforementioned conditions within 180 days from the Date of the Signature, shall
                                            create a situation where this Agreement shall be deemed void, nonbinding and lacking validity,
                                            and no party shall be bound by it. And these are the conditions:

 

    	 

    	 

    

 

		15.1.1.	Receipt
                                            of a permit from the Supervisor of the Settlement Law. The parties will cooperate fully and
                                            transparently in the contact with the Supervisor pursuant to the Settlement Law, with the
                                            aim of receiving such permits as early as possible. In the event of a demand of the Supervisor
                                            for an amendment or a change in the Agreement as a condition to receipt of the permit pursuant
                                            to the Settlement Law, the parties will discuss same in good faith however it is clarified
                                            that neither party shall be obligated to agree to such demand even if the results of nonagreement
                                            shall be nonreceipt of the permit, and the party who shall not agree to such demand shall
                                            not be responsible for compensating or indemnifying the counterparty. The parties have taken
                                            that stated into account and have agreed, when they are aware of the implications arising
                                            therefrom.

 

		15.1.2.	Approval
                                            required for the Project from the Medical Cannabis Unit at the Ministry of Health.

 

		15.1.3.	Approval
                                            of the competent organs of the Kibbutz, of the Corporation, and of Canndoc. The parties will
                                            adopt the steps required in order to bring the Agreement for approval of the aforementioned
                                            organs within 30 days from the Date of the Signature. No party shall bear responsibility
                                            toward the counterparty if the competent organ thereof has not approved the engagement pursuant
                                            to the Agreement.

 

		15.2.	It
                                            is clarified that it is Canndoc’s responsibility at its expense to obtain the approvals
                                            in question in clause 15.1.1 and 15.1.2.

 

16. Assignment of rights

 

		16.1.	A
                                            party to this Agreement shall not transfer and shall not assign, directly or indirectly -
                                            this Agreement or a right or obligation thereunder, to any third-party without receiving
                                            the consent in advance and in writing of the counterparty.

 

		16.2.	Notwithstanding
                                            that stated in clause 16.1 above, the Kibbutz shall be entitled to transfer rights and obligations
                                            to a corporation under its control, and provided that such transfer shall not cause cancellation
                                            of the permit or license or detrimental change in the terms of the permit or license issued
                                            by any Regulatory Authority for the Project.

 

    	 

    	 

    

 

		16.3.	To
                                            such extent as the parties shall have the status of a public company whose shares - or any
                                            part thereof - are traded in any recognized stock exchange in the world, the trading of shares
                                            or rights of such public company shall not be considered an action contravening the provisions
                                            of clause 16.1 above.

 

		16.4.	Nothing
                                            in that stated above shall prevent a party from assigning its rights to receive funds from
                                            the Corporation and/or from the counterparty - to such extent as such rights exist or shall
                                            exist in the future.

 

17. Miscellaneous

 

		17.1.	This
                                            Agreement exhausts the relations of the parties in everything related to its subjects, and
                                            any arrangement, agreement, promise, or representation made prior to the Date of the Signature,
                                            if made, are null and void unless stated otherwise in this Agreement.

 

		17.2.	Any
                                            change or amendment to this Agreement may be made in writing only. A change not in writing
                                            and without the signature of both parties shall not be deemed binding.

 

		17.3.	All
                                            of the remedies and reliefs pursuant to the law and/or this Agreement are cumulative and
                                            not alternative.

 

		17.4.	Nothing
                                            in this Agreement shall accord Canndoc and/or the joint corporation any rights in the Property
                                            and/or in water. The Property and the water rights belong to the Kibbutz for all intent and
                                            purposes.

 

18. Addresses and notices

 

The
addresses of the parties for purposes of this agreement are as specified in the preamble to this Agreement and any notice delivered by
a party to its counterparty will be deemed a notice which was received on the relevant date as specified below:

 

	 	Sent
by registered post	-	within 5 days from the date of its dispatch.
	 	 	 	 
	 	Personally
delivered	-	the date of its delivery.
	 	 	 	 
	 	Facsimile
or e-mail dispatch	-	the date of the dispatch and provided that the receipt of the dispatch was confirmed by the counterparty by
a telephone call which took place immediately after the dispatch, and the party conducting the telephone call on behalf of the dispatching
party confirmed in an affidavit the existence of the telephone conversation, the date, the time of its occurrence and the name of the
party speaking on behalf of the party to whom the message was sent, and that it was confirmed to him that the message was sent was received.

 

    	 

    	 

    

 

In
witness whereof the parties have signed

 

	 	 	 	 	 
	The
    Kibbutz	 	The
    Corporation	 	CanndocExhibit
4.4

 

InterCure
Ltd.

 

Israeli
Shares and Options Allotment Plan

 

(*Pursuant
to Section 102 of the Income Tax Ordinance (New Version), 5721-1961 and the Amendment to the

Income Tax Ordinance Law (No. 132), 5762-2002)

 

    	 

    	 

    

 

This
Plan, as amended from time to time, will be referred to as the Israeli Shares and Options Allotment Plan of InterCure Ltd. (hereinafter,
respectively: the “Plan” and the “Company”).

 

	1.	Preamble

 

The
purpose of this Plan is to allocate options – exercisable into the Company’s shares – and/or the Company’s shares
to employees, consultants, service providers and directors of the Company and related companies, as defined below, in order to create
incentives for them and share the development and success of the Company with them.

 

	2.	Definitions

 

For
the purposes of the Plan and the documents associated with it, including the Grant Agreement, as defined below, the following definitions
will apply:

 

		2.1	“Option”
                                            means the right to purchase one or more shares of the Company, subject to this Plan.

 

		2.2	“102
                                            Option” or “102 Share” means an option or share that is granted
                                            to employees subject to Section 102 of the Ordinance, as defined in this section below.

 

		2.3	“102
                                            Option with a Trustee” or “102 Share with a Trustee” means an
                                            option or share that is granted subject to Section 102(b) of the Ordinance that is held in
                                            trust by a trustee for the employee.

 

		2.4	“102
                                            Option without a Trustee” or “102 Share without a Trustee” means
                                            an option or share that is granted subject to Section 102(c) of the Ordinance that is not
                                            held in trust by a trustee for the employee.

 

		2.5	“Capital
                                            Gains Option” or “Capital Gains Share” – As defined in
                                            Section 5.4 of the Plan.

 

		2.6	“Work
                                            Income Option” or “Work Income Share” – As defined in
                                            Section 5.5 of the Plan.

 

		2.7	“3(i)
                                            Option” – Means an option that is granted to non-employees subject to Section
                                            3(i) of the Ordinance.

 

		2.8	“Controlling
                                            Shareholder” – As defined in Section 32(9) of the Ordinance.

 

		2.9	“Board
                                            of Directors” means the Company’s Board of Directors.

 

		2.10	“Grant
                                            Agreement” – Means an option grant agreement or a share grant agreement between
                                            the Company and the offeree, which governs and determines the terms of the allotted options
                                            or shares.

 

		2.11	“Committee”
                                            – Means a committee that is appointed by the Board of Directors, whose number of
                                            members will be no fewer than three (with one of the committee members being an external
                                            director and one of them being a director with accounting and financial expertise).

 

    	 

    	 

    

 

		2.12	The
                                            “Company” means InterCure Ltd., a company incorporated under the laws
                                            of the State of Israel.

 

		2.13	“Related
                                            Company” means an “Employer Company” as defined in Section 102(a) of
                                            the Ordinance.

 

		2.14	“Purchasing
                                            Company” means any entity into which the Company merges or that is purchased by
                                            it, provided that the Company is not the surviving company.

 

		2.15	The
                                            “Companies Law” means the Israeli Companies Law, 5759-1999.

 

		2.16	The
                                            “Chairperson” means the Chairperson of the Committee.

 

		2.17	“Grant
                                            Date” means the date on which an option or share is granted, as determined by the
                                            Board of Directors or as stated in the Grant Agreement with the Offeree.

 

		2.18	“Purchase
                                            Date” means, as determined by the Board of Directors or the Committee, the date
                                            on which the Offeree becomes entitled to exercise the options or sell the shares or part
                                            thereof, as stated in Section 11 of the Plan.

 

		2.19	“Option
                                            Expiration Date” means the date on which the option expires, as stated in Section
                                            10.2 of the Plan.

 

		2.20	“Strike
                                            Price” means the price of each share that is subject to an option.

 

		2.21	“Share”
                                            means an ordinary share of the Company, without par value each.

 

		2.22	“Trustee”
                                            means anyone appointed by the Company to serve as a trustee, and approved by the tax
                                            authorities, and all subject to Section 102(a) of the Ordinance.

 

		2.23	“Offeree”
                                            means a person to whom options or shares are granted under the Plan.

 

		2.24	“Reason”
                                            means each of the following: (a) conviction of an offense that entails moral turpitude
                                            or an offense that affects the Company and/or related companies; (b) embezzlement of the
                                            Company’s funds and/or funds of related companies; (c) a fundamental breach of their
                                            obligations to the Company; (d) an immoral act that caused damage to the Company’s
                                            reputation; (e) any act or omission that, in the Company’s view, could harm the condition
                                            or reputation of the Company.

 

		2.25	“Section
                                            102” means Section 102 of the Ordinance, in its present form or as amended in the
                                            future, and all of the rules and/or regulations and/or any ruling and/or other statute pursuant
                                            to that section, including the Income Tax Rules (Special Tax Terms with Respect to Allotting
                                            Shares to Employees), 5763-2003.

 

    	 

    	 

    

 

		2.26	“Employee”
                                            means an employee employed by the Company or a related company and a senior officer or
                                            director of the Company or a related company (even if there is no employer-employee relationship
                                            between the parties), to the exclusion of controlling shareholders.

 

		2.27	“Transaction”
                                            means (1) a merger, acquisition, or reorganization of the Company with or into another
                                            company, provided that the Company is not the surviving company; (2) the sale of all or a
                                            substantial part of the Company’s operations.

 

		2.28	The
                                            “Ordinance” means the Income Tax Ordinance (New Version), 5721-1961, in
                                            its present form or as amended in the future.

 

		2.29	The
                                            “Tax Authorities” means the tax authorities in Israel.

 

		2.30	“Non-Employee”
                                            means a consultant, service provider, controlling shareholder or any other entity that
                                            is not an employee.

 

		2.31	“Market
                                            Value” – At any given time, the value of a share, which will be determined
                                            as follows:

 

		(1)	If
                                            the shares are listed for trade on a known stock exchange or a national market system, the
                                            market value will be the closing price of the share (or, if the closing quote if no sales
                                            are reported), as reported on the stock exchange or the national market system as stated
                                            on the last day that preceded the effective date, as reported by any source, which will be
                                            selected by the Board of Directors at its discretion.

 

			Without
derogating from the foregoing, and only for the purpose of determining tax liabilities in accordance with Section 102(b)(3) of the Ordinance,
if, on the Option Grant Date or the Share Grant Date, the Company’s shares are listed for trade on any stock exchange or national
market system, or if the Company’s shares are listed for trade within ninety (90) days of the Option or Share Grant Date, the Market
Value of the share on the option allotment date or the share allotment date will be determined according to the average value of the
Company’s shares during the thirty (30) trading days that precede the Option or Share Grant Date, or during the thirty (30) trading
days after the public offering date, as the case may be.

 

		(2)	If
                                            there is a current report on the shares through a licensed share trader, but there is no
                                            report on sale prices, the Market Value will be determined according to the average of the
                                            highest offer and the lowest price of the shares on the last trading day that precedes the
                                            record date; or

 

		(3)	In
                                            the absence of a regulated share market, the Market Value will be determined by the Board
                                            of Directors in good faith.

 

		2.33	The
                                            “Plan” means this Plan.

 

    	 

    	 

    

 

	3.	Plan
                                            Management

 

		3.1	This
                                            Plan will be directly managed by the Company’s management, or pursuant to the Committee’s
                                            recommendation, subject to any valid law, and the Company’s Articles of Association.
                                            The Board of Directors will have residual authority in the event where no Committee is appointed
                                            or if the Committee ceases to serve as the Committee for any reason whatsoever, or if the
                                            Committee is not authorized to act under applicable law under the supervision and pursuant
                                            to the approval of the Board of Directors.

 

		3.2	The
                                            Committee will select one of its members as a Chairperson and will convene on the dates and
                                            places that will be determined by the Chairperson. The Committee’s meetings will be
                                            recorded by means of minutes. The Committee will determine rules and regulations for the
                                            management of its work, in accordance with its discretion.

 

		3.3	The
                                            Committee will have the absolute exclusive authority and discretion with respect to providing
                                            the Board of Directors with recommendations, and the Board of Directors will have the exclusive
                                            and absolute discretion to decide as follows:

 

		(1)	To
                                            determine the identity of the Offerees and the number of options or shares that is granted
                                            the Offerees;

 

		(2)	To
                                            determine the terms of the Grant Agreements, including the number of options or shares that
                                            are granted to each Offeree, the number of shares that are subject to each option, the times
                                            and exercise conditions of the option, and the Strike Price, and to apply restrictions on
                                            the transferability of the options and/or shares, as well as and terms with respect to the
                                            seizure of options and shares, and to cancel and suspend grants.

 

		(4)	To
                                            choose the taxation terms of 102 Options with a Trustee or of 102 Shares with a Trustee.

 

		(5)	To
                                            determine the type of option or share that is granted in accordance with Section 102.

 

The
Board of Directors will have the absolute authority and discretion to decide as follows:

 

		(1)	To
                                            change restrictions and conditions that apply to options or shares;

 

		(2)	To
                                            interpret the terms of the Plan and to supervise the Plan’s management;

 

		(3)	To
                                            fully or partially accelerate the purchase dates of the options or shares that were granted
                                            to each Offeree, subject to Section 102 of the Ordinance;

 

		(4)	To
                                            suspend, terminate or cancel the Plan, in whole or in part, to amend or change the Plan and
                                            its provisions.

 

		(5)	To
                                            make decisions or determinations with respect to any other matter that is necessary for the
                                            Plan’s management.

 

    	 

    	 

    

 

		3.4	The
                                            Board of Directors will have the authority to grant to the Offeree, at its discretion, in
                                            exchange for canceling the option that was granted to him, a new option whose Strike Price
                                            is identical, lower or higher than the Strike Price of the original option that was canceled,
                                            and that is subject to other terms, or to change the Strike Price of the option as determined
                                            by the Board of Directors in accordance with the terms of the Plan.

 

		3.5	Subject
                                            to the Company’s Articles of Association, all of the decisions of the Board of Directors
                                            and/or Committee in connection with the Plan will be made by a majority of votes, but any
                                            member of the Board of Directors or Committee will be deprived of the right to vote or the
                                            right to rank among the members that are needed for the approval or decision of the Board
                                            of Directors and/or Committee with respect to granting options or shares to that member.
                                            Any written decision of the Board of Directors and/or Committee will be made in accordance
                                            with the Company’s Articles of Association.

 

		3.6	The
                                            Committee’s interpretation with respect to each section of the Plan or the Grant Agreement
                                            will be final and absolute, unless determined otherwise by the Board of Directors.

 

		3.7	Subject
                                            to the Company’s Articles of Association and the Company’s decision, and subject
                                            to all of the certificates required under applicable law, including the Companies Law, each
                                            member of the Board of Directors or Committee will be indemnified, will not be held personally
                                            liable, and will not be liable in any way, for a reasonable expense that they incur (including
                                            reasonable consultation expenses) in connection with actions that were taken by them or that
                                            they refrain from doing in connection with the Plan, unless such actions were taken fraudulently
                                            or in bad faith, up to the amount that is determined by applicable law and/or the Company’s
                                            Articles of Association. Such indemnification will be in addition to the right to indemnification
                                            that the member has, if applicable, by virtue of their being a director of the Company or
                                            pursuant to the provisions of the Company’s Articles of Association, an agreement,
                                            a resolution of the general meeting of shareholders, insurance policies, etc.

 

	4.	Determining
                                            the Plan Participants

 

		4.1	Among
                                            those qualified to participate in the Plan as Offerees are employees and Non-Employees of
                                            the Company or of Related Companies, provided that: (1) employees will only receive 102 Options
                                            or Shares; (2) Non-Employees will only receive 3(i) Options; (3) Controlling Shareholders
                                            will only receive 3(i) Options.

 

		4.2	The
                                            granting of an option or a share to an Offeree under this Plan does not entitle the recipient
                                            of the Option or Share to or deprive them of the right to participate in other allotments
                                            by virtue of the Plan or any other grant or share allotment plan of the Company or of related
                                            companies.

 

    	 

    	 

    

 

		4.3	Without
                                            derogating from the foregoing, any granting of an option or a share to a director and officers
                                            will be approved and implemented in accordance with the provisions of the Companies Law,
                                            as in force from time to time, and/or any law that supersedes it.

 

	5.	Determining
                                            the type of options or shares in accordance with Section 102

 

		5.1	The
                                            Company can determine the type of options or shares that will be granted to employees in
                                            accordance with Section 102 as Non-Trustee 102 Options or Non-Trustee 102 Shares or Trustee
                                            102 Options or Trustee 102 Shares.

 

		5.2	The
                                            granting of Trustee 102 Options or Trustee 102 Shares under this Plan will be subject to
                                            the approval of the Plan by the Board of Directors as stated in Section 14 below, and will
                                            be subject to the Plan’s approval by the Tax Authorities.

 

		5.3	Trustee
                                            102 Options or Trustee 102 Shares can be classified as Capital Gains Options or Capital Gains
                                            Shares or as Work Income Options or Work Income Shares.

 

		5.4	Trustee
                                            102 Options or Trustee 102 Shares with respect to which the Company determined that the tax
                                            that will apply will be capital gains tax in accordance with Section 102(b)(2) of the Ordinance
                                            and Section 12(b)(3) of the Ordinance will be hereinafter referred to as “Capital
                                            Gains Options” or “Capital Gains Shares,” respectively.

 

		5.5	Trustee
                                            102 Options or Trustee 102 Shares with respect to which the Company determined that the tax
                                            that will apply will be work income tax in accordance with Section 102(b)(1) of the Ordinance
                                            will be hereinafter referred to as “Work Income Options” or “Work
                                            Income Shares,” respectively.

 

		5.6	The
                                            Company’s choice with respect to the type of Trustee 102 Option or Trustee 102 Share
                                            as a Capital Gains Option or Capital Gains Share or as a Work Income Option or as a Work
                                            Income Share (hereinafter: the “Choice”) will be submitted as required
                                            to the Tax Authorities before the allotment date. The Choice will enter into force as of
                                            the first grant date and will remain in force at least until the end of the year after the
                                            year in which the Company grants a Trustee 102 Option or Trustee 102 Share for the first
                                            time. The Choice will only require the Company to grant the Trustee 102 Options or the Trustee
                                            102 Shares that it chose, and it will apply to all of the Offerees who receive Trustee 102
                                            Options or Trustee 102 Shares in the course of the aforementioned period of time, and all
                                            in accordance with Section 102(g) of the Ordinance. For the avoidance of doubt, the Choice
                                            will not prevent the Company from simultaneously granting Non-Trustee 102 Options or Non-trustee
                                            102 Shares.

 

		5.7	All
                                            of the Trustee 102 Options or Trustee 102 Shares will be held in trust by a trustee, as described
                                            in Section 6 below.

 

		5.8	For
                                            the avoidance of doubt, the determination of the type of Trustee 102 Options or Trustee 102
                                            Shares or Non-trustee 102 Options or Non-trustee 102 Shares will be subject to the conditions
                                            of Section 102 of the Ordinance.

 

    	 

    	 

    

 

		5.9	In
                                            case of Trustee 102 Options or Trustee 102 Shares, the terms of the Plan and/or Grant Agreement
                                            will be subject to the terms of Section 102 of the Ordinance and the approval of the tax
                                            assessor, and those terms and approval will be an integral part of the Plan and the Grant
                                            Agreement. All of the conditions of Section 102 and/or the approval as stated, which are
                                            necessary for obtaining and/or maintaining special tax benefits in accordance with Section
                                            102, and which are not expressly stated in the Plan or Grant Agreement, will be regarded
                                            as applicable to and binding on the Company and the Offerees.

 

	6.	Trustee

 

		6.1	Trustee
                                            102 Options or Trustee 102 Shares that are granted pursuant to the Plan and/or shares that
                                            are issued pursuant to the exercise of Trustee 102 Options and/or other shares that are issued
                                            pursuant to the exercise of rights, including bonus shares, will be allotted or issued in
                                            the name of the Trustee and held by them in the course of the periods of time that are set
                                            forth and required under Section 102 and/or any law and/or regulations and special rules
                                            that are enacted pursuant thereto (hereinafter: the “Block Period”). If
                                            the conditions for granting Trustee 102 Options are Trustee 102 Shares are not fulfilled,
                                            then the Trustee 102 Options or Trustee 102 Shares that were granted might be regarded as
                                            Non-trustee Options or Non-trustee 102 Shares, and all in accordance with the conditions
                                            of Section 102.

 

		6.2	The
                                            Trustee will not provide the Offeree with shares that were allotted as a result of the exercise
                                            of Trustee 102 Options or Trustee 102 Shares before the full payment of the tax liability
                                            that stems from the Trustee 102 Shares or Trustee 102 Options or that were granted to the
                                            Offeree and/or the shares that were allotted as a result of their exercise as stated.

 

		6.3	With
                                            regard to Trustee 102 Options or Trustee 102 Shares, subject to the conditions of Section
                                            102 of the Ordinance, an Offeree will not sell or transfer shares from the Trustee, including
                                            bonus shares and options and/or shares that were granted to the Offeree in the framework
                                            of warrants, until the lapse of the Block Period that is required pursuant to Section 102
                                            of the Ordinance. The aforementioned notwithstanding, if such a sale or transfer takes place
                                            within the Block Period, the sanctions under Section 102 of the Ordinance will apply to the
                                            Offeree, and the Offeree will pay the tax derived from the provisions of Section 102 of the
                                            Ordinance.

 

		6.4	Upon
                                            receiving a Trustee 102 Option or Trustee 102 Share, the Offeree will sign an undertaking
                                            to release the Trustee from any liability for actions or decisions that were made in good
                                            faith in connection with the Plan, or for any Trustee 102 Option or share that was granted
                                            to them. It is hereby clarified that, in the framework of this signature, the Offeree will
                                            release the Company from any liability for the Trustee’s actions.

 

    	 

    	 

    

 

	7.	Reserved
                                            shares, restrictions

 

		7.1	The
                                            Company may allot options or shares under the Plan and other compensation plans that it chooses
                                            to implement in the future, subject to adjustments as a result of changes in the Company’s
                                            equity, as stated in Section 9 below, up to the number of shares of which its registered
                                            and unpaid share capital consists. If an option that was granted under the Plan expires or
                                            is canceled before the exercise date, or if the Offeree waives the exercise of an option
                                            as stated, the shares that were not purchased by virtue of the option will be available with
                                            respect to the Plan, and they could be used, including for the purpose of their re-allotment
                                            to other Offerees.

 

		7.2	The
                                            granting of an option or share to an Offeree under the Plan will be pursuant to a written
                                            Grant Agreement between the Company and the Offeree in the form approved by the Board of
                                            Directors pursuant to the recommendation of the Committee, as provided from time to time.
                                            Each Grant Agreement will state, inter alia, the number of shares derived from the
                                            exercise of the option, the type of option or share granted (e.g., Capital Gains Option,
                                            Work Income Option, Non-Trustee 102 Option, or Option 3(i)), the grant date, the Strike Price
                                            of the share, the expiration date of the option and other terms as determined by the Committee
                                            or Board of Directors, provided that they are in line with the terms of the Plan.

 

	8.	Strike
                                            Price

 

		8.1	The
                                            Strike Price of each share with respect to the option will be determined by the Board of
                                            Directors at its sole discretion and in accordance with the provisions of applicable law,
                                            and subject to the guidelines of the Committee as provided from time to time. The Strike
                                            Price for each Offeree will be determined in the Option Agreement that is signed between
                                            the Offeree and the Company.

 

		8.2	The
                                            Strike Price will be paid on the option’s exercise date in a way that is determined
                                            by the Board of Directors, including cash or check. The Board of Directors will have the
                                            authority to postpone the payment date under the terms determined by it.

 

		8.3	The
                                            Strike Price will be denominated in the main currency used in the economic environment of
                                            the Company or the Offeree (i.e., the functional currency of the Company or the currency
                                            in which the employee is paid), as determined by the Company.

 

		8.4	Without
                                            derogating from the generality of the foregoing, and subject to the payment of applicable
                                            tax by the Offeree, the Board of Directors of the Company will have the authority to enable
                                            the Offerees to exercise the options under the Plan or to determine that they will exercise
                                            the options under the plan, in whole or in part, through the mechanism used to exercise options
                                            into shares on the basis of the bonus component (net exercise), pursuant to which the Offeree
                                            will be entitled to receive shares that reflect the bonus component of the options that are
                                            exercised in accordance with the following formula, in exchange for the par value of the
                                            shares, and that alone.

 

For
the avoidance of doubt, it is hereby clarified that, according to this exercise method, the options can only be exercised into the number
of shares that reflects the bonus component. The Offeree will not pay the Strike Price only for the purposes of calculating the bonus
component.

 

    	 

    	 

    

 

The
number of shares that can be purchased by the Offeree under this mechanism in exchange for the par value will be determined according
to the following formula:

 

 

Y
= The number of exercisable options whose grant date has elapsed and have yet to be exercised, and that the Offeree wishes to exercise
using this mechanism, subject to the adjustments that are set forth in the Option Plan.

 

A
= The market value of each share on the exercise date.

 

B
= The Strike Price of each option, subject to the adjustments determined in the Option Plan.

 

N
= The par value of each share.

 

	9.	Adjustments

 

Upon
each of the following events, the Offeree’s right to purchase shares under the Plan will be subject to the following adjustments:

 

		9.1	In
                                            case of a Transaction (as defined above), each option or share granted under the Plan that
                                            is yet to be exercised or with respect to a share – if its Block Period is yet to elapse,
                                            it will be replaced by or converted into options or shares, respectively, according to the
                                            number of shares under the warrant that have yet to be exercised or according to the number
                                            of blocked shares, or any security of the purchasing company (or a parent company or a subsidiary
                                            of the purchasing company), which were distributed to the shareholders of the Company against
                                            shares with respect to the aforementioned transaction, and the Strike Price of the share
                                            will be suitably adjusted (with respect to the aforementioned options) so as to reflect such
                                            an event, and all of the other conditions of the Grant Agreement will remain in force, including
                                            the grant date, and all as determined by the Board of Directors, whose decision will be exclusive
                                            and final. The Company will inform the Offeree of the transaction in a manner and form that
                                            will be deemed appropriate by the Company at least ten (10) days before the Record Date of
                                            Transaction.

 

    	 

    	 

    

 

		9.2	Without
                                            derogating from the foregoing and subject to the provisions of applicable law, the Board
                                            of Directors will have the authority to determine, at its exclusive and final discretion
                                            and in connection with certain grant agreements, that the Grant Agreement contain a section
                                            that states that if, upon the occurrence of the Transaction as stated in Section 9.1 above,
                                            the purchasing company (or a parent company or a subsidiary of the purchasing company) does
                                            not agree to convert or replace the blocked options and/or shares, the grant dates of all
                                            or some of the blocked options or shares, whose grant date has yet to elapse, will be earlier,
                                            and the Offeree will be entitled to exercise those options or sell the blocked shares ten
                                            (10) shares before the occurrence of the Transaction described in Section 9.1 above.

 

		9.3	For
                                            the purpose of Section 9.1 above, the option (in this paragraph below, including Block Shares,
                                            mutatis mutandis) will be regarded as replaced or converted if, following the Transaction,
                                            the option grants the right to purchase or receive, with respect to any share that is subject
                                            to the option, immediately before the Transaction, the consideration (shares, options, cash
                                            or securities or any other asset) received as a result of the Transaction by the shareholders
                                            with respect to any share held on the Record Date of the Transaction (and, if such holders
                                            are given a choice with respect to the consideration, the type of consideration chosen by
                                            the holders of the majority of shares); provided that, if such consideration is received
                                            in case of a transaction is not only given in the form of ordinary shares (or the equivalent
                                            thereof) of the purchasing company (or a parent company or a subsidiary thereof), the Board
                                            Directors may, after receiving the consent of the purchasing company, determine that the
                                            consideration that is received upon the exercise of the option will only consist of ordinary
                                            shares (or the equivalent thereof) of the purchasing company (or the parent company or its
                                            subsidiary), whose market price is equal to the price of the share received by the holders
                                            of the majority of the shares involved in the Transaction; and provided that the Board of
                                            Directors may determine, at its discretion, that, in such cases of replacement or conversion
                                            of options against an option of the purchasing company, such an option will be replaced against
                                            any type of any other asset, including cash, in a manner that is fair under the circumstances.

 

		9.4	If
                                            it is decided to voluntarily liquidate the Company when options exist that are yet to be
                                            exercised under the Plan, the Company will inform all of the option holders of the aforementioned
                                            decision, and each option holder will have ten (10) days to exercise the options that have
                                            yet to be exercised and whose grant date has elapsed, in accordance with the exercise process
                                            that is presented below. Upon the lapse of those 10 days, all the options that have yet to
                                            be elapsed by that date will immediately expire.

 

		9.5	In
                                            any event where changes occur to the issued share capital of the Company by way of a dividend
                                            distribution into shares (bonus shares), share splitting, consolidation or replacement, changes
                                            to the Company’s capital structure or any similar event, the number and type of shares
                                            that can be allotted under the Plan and/or the number and type of shares that will be derived
                                            from the exercise of the options under the Plan will be adjusted, and the Strike Price will
                                            be adjusted pro rata so as to proportionally preserve the number of shares and their cumulative
                                            Strike Price.

 

    	 

    	 

    

 

		9.6	If
                                            the Company offers its shareholders securities of any kind by way of issuing rights of the
                                            Company, no adjustment will be made on account of those rights.

 

If
the Company distributes a dividend, and the record date of the entitlement to the dividend distribution falls before the end of the exercise
period of the unregistered warrants, the Strike Price of the warrants will be adjusted by way of multiplying it by the ratio between
the price of the Company’s shares on the stock exchange, adjusted for the dividend distribution, as determined by the Stock Exchange
(hereinafter: the “X Dividend Price”) and the closing price determined on the Stock Exchange of the Company’s
share on the last trading day before the X dividend date. The Company will notify of the aforementioned adjusted Strike Price of the
warrants, by way of an immediate report, before trading starts on the X dividend day.

 

		9.7	Pursuant
                                            to instructions of the Tel Aviv Stock Exchange following the transition into settlements
                                            on the T+1 day with respect to shares that are convertible into securities, the options will
                                            not be converted on the Record Date of bonus share distribution, into an offering by way
                                            of rights, into a dividend distribution, into capital consolidation, into capital splitting
                                            or capital reduction (each of the foregoing will be hereinafter referred to as a “Company
                                            Event”). In addition, if the X day of a Company Event falls before the Record Date
                                            of the Company Event, the option will not be converted on the X day as stated.

 

	10.	Terms
                                            of options and shares and exercising options

 

		10.1	If
                                            an Offeree is offered the exercise of the option in their possession, they will notify the
                                            Company or a representative thereof of this in writing, in the form and manner determined
                                            by the Company, and, as needed, by the Trustee in accordance with the requirements of Section
                                            102. The exercise will be in force upon the receipt of the exercise notice by the Company
                                            and/or a representative thereof and the payment of the Strike Price by the Company’s
                                            office or a representative thereof. In the notice, the Offeree will state the number of shares
                                            with respect to the option that the Offeree wishes to exercise. In addition, all of the other
                                            documents that the Offeree is required to sign will be attached to the notice, as a condition
                                            for the Option’s exercise, as stated in the Plan and the option agreement, and pursuant
                                            to the decision of the Board of Directors.

 

		10.2	The
                                            Option will expire if it is not converted into a share beforehand, on the earlier of the
                                            following: (1) The expiration date as stated in the option agreement, provided that the period
                                            of time for the aforementioned exercise does not exceed 12 years as of the grant date; (2)
                                            the expiry of the term in the cases stated in Section 10.5 below.

 

		10.3	The
                                            options or any part thereof will be exercisable by the Offeree in full at any time, from
                                            time to time, if the grant and exercise date of the option have elapsed, and before the expiration
                                            date, provided that, subject to the conditions of Section 10.5 below, the Offeree is employed
                                            by or provides services to the Company or related companies at any time during the period
                                            of time that begins upon granting the option and ends on its exercise date.

 

    	 

    	 

    

 

		10.4	Subject
                                            to Section 10.5 below, the Offeree ceases to be an employee or a service provider of the
                                            Company or related companies, all of the options granted to it will expire in accordance
                                            with Section 10.5. Notice of the termination of labor relations or the provision of services
                                            will be regarded as the termination of such a relationship. For the avoidance of doubt, in
                                            the event where a labor relationship or service provision is terminated, the options whose
                                            grant date has yet to elapse on the date on which the relationship terminates will not be
                                            granted and will not be exercisable, except pursuant to a certain decision of the Board of
                                            Directors.

 

		10.5	The
                                            aforementioned notwithstanding, and unless otherwise stated in the option agreement of the
                                            Offeree, the Offeree may exercise an option on a date that falls after the termination of
                                            the employer-employee or service provision relationship in the course of an additional period
                                            of time after the termination of the relationship, but only with respect to options whose
                                            grant date has elapsed on the date on which the relationship was terminated, in accordance
                                            with the grant periods of the option, and all in accordance with the following cases:

 

		(1)	If
                                            the relationship was terminated without a Reason, the Offeree will have the right to exercise
                                            the options that he was entitled to exercise under the option agreement in accordance with
                                            the grant dates and provided that they have yet to expire, for three (3) months after the
                                            end of the relationship.

 

		(2)	If
                                            the relationship ended as a result of the Offeree’s death or disability, the Offeree
                                            or his legal heirs will have the right to exercise the options that the Offeree was entitled
                                            to exercise under the grant agreement in accordance with the grant dates and provided that
                                            they have yet to expire for three (3) months after the end of the relationship.

 

		(3)	The
                                            Board of Directors has approved, on a date that precedes the end of the relationship, or
                                            thereafter, or a special date determined for this purpose in the employment agreement signed
                                            with the Employee, the extension of the terms of the options that have yet to expire, beyond
                                            the date of the end of the relationship, by a period of time that will not exceed the original
                                            period of time that was determined for the exercise of the option, and all subject to the
                                            provisions of Section 102 of the Ordinance.

 

For
the avoidance of doubt, if the relationship was terminated because of a Reason, the options will expire for all intents and purposes
(whether or not the Offeree, on the date of the relationship’s termination, was entitled to exercise some of the options) and the
Offeree will have no rights in connection with the options.

 

		10.6	The
                                            Offeree for whom the Trustee holds shares, has the right to participate in shareholder meetings,
                                            and the right to receive dividends and any other right that Company shareholders have.

 

		10.7	A
                                            grant agreement that is approved under the Plan may include additional conditions, at the
                                            Board of Directors’ discretion from time to time.

 

    	 

    	 

    

 

		10.8	With
                                            regard to Non-trustee 102 Options, upon the termination of the relationship with the Company
                                            or related companies and the Offeree, the Offeree will provide the employer with collateral
                                            or a guarantee for the payment of the tax that applies on the date of the shares’ sale,
                                            and all in accordance with Section 102 of the Ordinance. If the Offeree fails to provide
                                            collateral, the warrants will expire.

 

		10.9	Under
                                            blocked share grant agreements, the Offeree will be entitled to participate in shareholder
                                            meetings, receive dividends, and any other right that Company shareholders have, but they
                                            will not be able to sell the blocked shares or transfer them to their possession before their
                                            purchase date has elapsed. Upon the end of the relationship, the Offeree will be entitled
                                            to all of the blocked shares whose grant date has elapsed. Blocked shares whose grant date
                                            has yet to elapse will be repurchased by the Company in exchange for their par value and
                                            subject to the provisions of applicable law.

 

	11.	Terms
                                            of options and shares (continued)

 

		11.1	Subject
                                            to the terms of the Plan, any blocked option or share can be exercised or sold, respectively,
                                            according to the grant dates and with respect to the number of shares as determined in the
                                            grant agreement. However, the options will not be exercisable after the expiration date.

 

		11.2	Blocked
                                            options and shares can be subject to additional conditions that pertain to the date of their
                                            exercise or blocking, respectively, as determined by the Board of Directors at its discretion.
                                            The grant dates of the blocked options and shares may differ from each other.

 

	12.	Dividends

 

All
shares (apart, for the avoidance of doubt, from options that are yet to be exercised) allotted to Offerees or the Trustee, as the case
may be, against the exercise of options, will entitle their owners to the right to receive dividends according to the number of shares,
subject to the Company’s Articles of Association and subject to the taxes that apply to such a dividend distribution, as the case
may be and subject to Section 102 of the Ordinance and the rules, regulations, orders and procedures derived therefrom.

 

	13.	Plan
                                            Period

 

The
Plan will enter into force upon its adoption by the Company’s Board of Directors, and will expire ten (10) years after its adoption.

 

	14.	Changes
                                            to or termination of the Plan

 

At
any time, and, as the case may be after consulting the Trustee, the Board of Directors may amend, change, suspend or terminate the Plan.
Such amendments, changes, suspensions or termination will not derogate from the rights of any Offeree, unless a written agreement is
reached by the Offeree and the Company, signed by the Offeree and the Company. The termination of the Plan will not derogate from the
rights of the Committee to exercise the powers entrusted to it under the Plan, with respect to options that were granted under the Plan
before its termination.

 

    	 

    	 

    

 

	15.	Applicable
                                            rules

 

The
Plan and the granting and exercise of options and shares thereunder, and the Company’s undertaking to sell and transfer shares
by virtue of the options, will be subject to all of the suitable laws, regulations and rules of the State of Israel or the United States
or any other country that has jurisdiction over the Company and the Offeree, including the registration of the shares in accordance with
the United States Securities Act of 1933, the Ordinance and the certificates issued by government ministries or stock exchanges, as required.
The above does not require the Company to list its shares in accordance with the securities laws of any judicial authority.

 

	16.	Continued
                                            employment

 

No
provision of this Plan and the grant agreement with the Offeree may be interpreted as an undertaking and/or consent on the part of the
Company and/or any related company to continue to employ the Offeree, and no provision of the agreement and/or Plan may be interpreted
as granting the Offeree any right to continue to be employed by or to provide services to the Company and/or a related company, or as
restricting the right of the Company and/or a related company to terminate the employment of any Offeree at any time.

 

	17.	Applicable
                                            law and jurisdiction

 

The
Plan will be managed, interpreted and enforced in accordance with the laws of the State of Israel that apply to agreements that were
made therein, regardless of choice of law principles. The exclusive jurisdiction under this Plan will be entrusted to the competent courts
in Tel Aviv, Israel.

 

	18.	Taxation
                                            and other arrangements that pertain to the transfer of shares to the Offeree

 

		18.1	The
                                            Offeree will exclusively incur all of the tax liabilities that are derived from the allotment,
                                            granting and exercise of options, and shares, and the transfer of and payment for shares
                                            pursuant to the exercise of options or any other act (of the Company and/or related companies
                                            and/or the Trustee and/or the Offeree). The Company and/or related companies and/or the Trustee
                                            will deduct, in accordance with applicable law, regulations and rules, all taxes, including
                                            withholding taxes. The Offeree agrees to indemnify the Company and/or related companies and/or
                                            the Trustee for and to exempt them from any liability with respect to the payment of such
                                            taxes, interest and fines, as well as any other payments, including charges that originate
                                            in the need to withhold tax or the failure to withhold tax with respect to any payment that
                                            was transferred to the Offeree.

 

		18.2	The
                                            Company and/or the Trustee, as the case may be, will not transfer share certificates to the
                                            Offeree until all of the aforementioned compulsory payments are paid in full.

 

    	 

    	 

    

 

	19.	The
                                            Plan’s non-exclusivity

 

The
adoption of the Plan by the Board of Directors will not be interpreted as amending, changing or canceling any incentivizing arrangement
that was approved beforehand or as restricting the Board of Director’s authority to adopt other incentivizing arrangements as it
deems fit, including the granting of additional options not under the Plan, and those arrangements can apply generally or in certain
cases.

 

For
the avoidance of doubt, any previous granting of options to Offerees in the framework of their employment agreements and not in the framework
of a previous option plan will not be regarded as approved incentivizing arrangements for the purposes of this section.

 

	20.	Multiple
                                            agreements

 

The
terms of each option and share may differ from those of other options and shares that are granted under the Plan, at the same time. The
Board of Directors may grant more than one option to any Offeree in the course of the Plan Period, whether in addition to or as an alternative
to one or more options that were granted to that Offeree.

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