Document:

Exhibit 10.1

    

     

    

    
      G. WILLI-FOOD INTERNATIONAL LTD.

      

        

      2022 SHARE AWARD PLAN

       

      

      
        
          

      

      
       

      

      G. WILLI-FOOD INTERNATIONAL LTD.

      2022 SHARE AWARD PLAN

      

      

      	1.	
              Purposes of the Plan

            

       

      The purpose of this 2022 Share Award Plan (the "Plan") is to advance the interests of G. Willi-Food International Ltd. (the "Company") and its shareholders by attracting and retaining the best available personnel for positions of substantial responsibility, providing additional incentive to employees, officers, directors, advisors and
        consultants and promoting a close identity of interests between those individuals and the Company and/or its Affiliate.

       

      	2.	
              Definitions

            

       

      As used herein, the following definitions shall apply:

       

      	

            	2.1.	
              "Administrator" means the Board or any of its Committees as shall be administrating the Plan, in accordance with Section 3 hereof.

            

       

      	

            	2.2.	
              "Affiliate" means any entity controlling, controlled by or under common control with the Company. For the purpose of this definition of Affiliate, control shall mean the ability to direct the activities of the relevant entity
                and/or shall include the holding of more than 50% of the capital or the voting of such entity and any "employing company" within the meaning of Section 102(a) of the Ordinance).

            

       

      	

            	2.3.	
              "Applicable Law" means, including but not limited to the requirements under Israeli tax laws, Israeli social security laws, Israel security laws, Israel companies laws, any stock exchange or quotation system on which the Shares
                are listed or quoted and the applicable law of any country or jurisdiction where Awards are granted under the Plan.

            

       

      	

            	2.4.	
              "Award" means a grant of Option and/or Share under the Plan or any Sub Plan, including restricted shares and/or restricted share units and/or stock appreciation rights and/or performance units, performance shares and other stock
                or cash awards as the Administrator may determine.

            

       

      	

            	2.5.	
              "Award Agreement" means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

            

       

      	

            	2.6.	
              "Board" means the Board of Directors of the Company.

            

       

      	

            	2.7.	
              "Committee" means a committee, if any, of the Board, designated from time to time by the resolution of the Board to administer the Plan, which shall consist of members of the Board.

            

       

      	

            	2.8.	
              "Consultant" means any person or entity who is engaged by the Company or any Affiliate to render consulting or advisory services to such entity.

            

       

      	

            	2.9.	
              "Controlling Shareholder" for purposes of Section 102 shall have the meaning ascribed to it in Section 32(9) of the Ordinance.

            

       

      	

            	2.10.	
              "Director" means a member of the Board.

            

       

      	

            	2.11.	
              "Employee" means any person who is employed by the Company or its Affiliates, including an individual who is serving as a director or "Nosei Misra", as such term is defined in the Israeli
                Companies Law, 5759-1999 (the "Companies Law"), but excluding a Controlling Shareholder as defined in Section 32(9) of the Ordinance.

            

       

      
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            	2.12.	
              "Fair Market Value" means, as of any date, the value of a Share determined as follows: (i) if the Shares are listed on any established stock exchange or a national market system, including without limitation the Tel-Aviv Stock
                Exchange (TASE), Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, their Fair Market Value shall be the closing sales price for such Shares (or the closing bid, if no sales were reported) as quoted on such
                exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable or (ii) if the
                Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, their Fair Market Value shall be the mean between the high bid and low asked prices for the Shares on the last market trading day prior to
                the day of determination, or; (iii) in the absence of an established market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Administrator; without derogating from the above and solely for the purpose
                of determining the tax liability pursuant to Section 102(b)(3), if at the date of grant the Company's Shares are listed on any established stock exchange or a national market system or if the Company's Shares will be registered for trading
                within ninety (90) days following the date of grant under Section 102 Capital Gain Track, the fair market value of the Share at the date of grant shall be determined in accordance with the average value of the Company's Shares on the thirty
                (30) trading days preceding the date of grant or on the thirty (30) trading days following the date of registration for trading, as the case may be.

            

       

      	

            	2.13.	
              "ITA" means the Israeli Tax Authority

            

       

      	

            	2.14.	
              "Option" means an option to purchase one Share pursuant to the Plan or any Sub Plan.

            

       

      	

            	2.15.	
              "Ordinance" means the Israeli Income Tax Ordinance [New Version], 5721-1961 and any regulation, rules, orders or other procedures promulgated thereunder as now in effect or as hereafter amended.

            

       

      	

            	2.16.	
              "Participant" means the holder of an Award granted under the Plan.

            

       

      	

            	2.17.	
              "Section 102" means Section 102 of the Ordinance.

            

       

      	

            	2.18.	
              "Section 3(i)" means Section 3(i) of the Ordinance.

            

       

      	

            	2.19.	
              "Section 102 Capital Gain Track" means grant of Award with a Trustee under the capital gain track as defined in Section 102(b)(2) of the Ordinance.

            

       

      	

            	2.20.	
              "Section 102 Employment Income Track" means grant of Award with a Trustee under the employment income track as defined in Section 102(b)(1) of the Ordinance.

            

       

      	

            	2.21.	
              "Section 102 Non Trustee Track" means grant of Award without a trustee as defined in Section 102(c) of the Ordinance.

            

       

      	

            	2.22.	
              "Share" means ordinary share par value NIS 1.00 of the Company.

            

       

      	

            	2.23.	
              "Sub Plan" means any sub plan subject to the terms of the Plan.

            

       

      	3.	
              Administration of the Plan

            

       

      	

            	3.1.	
              Procedure

            

       

      	

            	3.1.1.	
              The Plan shall be administered by the Board or a Committee appointed by the Board, if any.

            

       

      
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            	3.1.2.	
              In administering the Plan, the Board and/or the Committee (subject to the provisions under the Companies Law) shall comply with all Applicable Laws.

            

       

      	

            	3.2.	
              Powers of the Administrator. Subject to the provi-sions of the Plan, Applicable Law and the approval of any relevant authorities, the Administrator shall have the authority, in its discretion:

            

       

      	

            	3.2.1.	
              to grant Award under the Plan;

            

       

      	

            	3.2.2.	
              to construe and interpret the terms of the Plan and any Award granted pursuant to the Plan;

            

       

      	

            	3.2.3.	
              to determine the number of Shares to be covered by each such Award granted hereunder;

            

       

      	

            	3.2.4.	
              to determine the exercise price of the Shares covered by each Option;

            

       

      	

            	3.2.5.	
              to determine the Participant to whom, and the time or times at which Award shall be granted;

            

       

      	

            	3.2.6.	
              to prescribe forms of agreement for use under the Plan;

            

       

      	

            	3.2.7.	
              to determine the terms and conditions of any Award granted hereunder (which need not be identical) including, but not limited to, the time and the extent to which the Awards will vest;

            

       

      	

            	3.2.8.	
              to determine the Fair Market Value of the Shares;

            

       

      	

            	3.2.9.	
              to prescribe, amend and rescind rules and regulations relating to the Plan;

            

       

      	

            	3.2.10.	
              to amend, modify or supplement the terms of each outstanding Award in accordance with the ITA ruling (if required);

            

       

      	

            	3.2.11.	
              subject to Applicable Law, to make an Election (as defined below);

            

       

      	

            	3.2.12.	
              to appoint a Trustee (as defined below);

            

       

      	

            	3.2.13.	
              to amend the Plan and/or the terms and conditions under which Award has been granted under the Plan;

            

       

      	

            	3.2.14.	
              to accelerate or defer the vesting periods of Award Agreement;

            

       

      	

            	3.2.15.	
              to authorize conversion or substitution under the Plan of any or all Awards or Shares and to cancel or suspend Awards, as necessary, provided that, if such action is not specifically allowed under the terms of this Plan, any material
                harm to the interests of the Participants shall be subject to consent from the Participants except for when such amendments apply to all Participants in the same manner;

            

       

      	

            	3.2.16.	
              to determine the effect of any increase or decrease of scope of engagement of a Participant on the vesting schedule of previously granted Awards;

            

       

      	

            	3.2.17.	
              to take all other actions and make all other determinations necessary for the administration of the Plan.

            

       

      	

            	3.3.	
              Effect of Administrator's Decision. All decisions, determinations and interpretations of the Administrator shall be final and binding on all Participants. No member of the Administrator shall be liable for any action or
                determination with respect to the Plan or any Award granted thereunder.

            

       

      
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            	3.4.	
              Grants to Administrator Members. A member of the Administrator shall be eligible to receive Award under the Plan while serving on the Administrator, in accordance with the provisions of any Applicable Law.

            

       

      	

            	3.5.	
              Certain Award Grants. All grants of Award to Participants pursuant to this Plan shall be authorized and implemented in accordance with the provisions of the Companies Law and the Ordinance.

            

       

      	4.	
              Eligibility

            

       

      	

            	4.1.	
              Subject to the provisions of the Plan, the Administrator may at any time, and from time to time, grant Award to Participants under the Plan.

            

       

      	

            	4.2.	
              Award granted under this Plan to Employees shall be granted pursuant to the provisions of Section 102 Capital Gain Track, Section 102 Employment Income Track and/or Section 102 Non Trustee Track (together: "Section 102 Tracks"). All Section 102 Tracks shall be subject to the provisions of Section 102 and the Ordinance and any pre-ruling related thereto including the Income Tax Rules (Tax Benefits in Share Issuance to
                Employees), 5763-2003 (the "Rules"). The Board shall make an election with respect to either Section 102 Capital Gain Track or Section 102 Employment Income Track in accordance with the provisions of
                Section 102(g) of the Ordinance (the "Election").

            

       

      	

            	4.3.	
              For avoidance of doubt, the grant of Award under Section 102 Capital Gain Track and Section 102 Employment Income Track is subject to approval and filing the Company's Election with the ITA at least thirty (30) days prior to the date of
                first grant of Awards, all in accordance with Section 102 and the regulations promulgated thereunder.

            

       

      	

            	4.4.	
              Award under Section 102 Capital Gain Track and Section 102 Employment Income Track shall be held in trust pursuant to Section 5 of the Plan.

            

       

      	

            	4.5.	
              Award granted under this Plan to Consultant and/or to Controlling Shareholders shall be granted pursuant to the provisions of Section 3(i). Administrator may determine, in its sole discretion, that any such Awards shall be held in trust
                pursuant to the provisions of the Plan.

            

       

      	

            	4.6.	
              Award pursuant to Section 102 of the Ordinance shall be granted only to Employees of the Company who are not Controlling Shareholders of the Company.

            

       

      	

            	4.7.	
              For the avoidance of any doubt, the designation of Section 102 Capital Gain Track, Section 102 Employment Income Track and Section 102 Non Trustee Track shall be subject to the terms and conditions of Section 102.

            

       

      	

            	4.8.	
              The receipt of an Award under the Plan shall not confer upon any Participant any right with respect to continuing the Participant's relationship with the Company or an Affiliate as an Employee, Consultant or service provider nor shall it
                interfere in any way with his or her right or the Company's right, or the right of the Company's Affiliate, to terminate such relationship at any time, with or without cause, as defined herein.

            

       

      
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            	4.9.	
              Section 102 Non Trustee Track. With respect to the grant of Section 102 Non Trustee Track, the Participant will be obligated to provide the Company with any form of collateral or guarantee, which shall satisfy the demands of the
                Committee in its sole discretion, in order to secure payment by the Participant of any applicable income tax and/or social charges due in the event that the Participant is no longer employed by the Company when the Shares are sold and the
                related taxes become due and payable. The grant of Section 102 Non Trustee Track to Participant shall be made in accordance with the provisions of Section 102(c).

            

       

      	5.	
              Appointment of a Trustee.

            

       

      	

            	5.1.	
              In case of Election of either Section 102 Capital Gain Track or Section 102 Employment Income Track, the Board shall elect and appoint a Trustee (the "Trustee"). Upon such an appointment, a trust
                agreement which complies with the relevant and Applicable Law, will be signed between the Trustee and the Company.

            

       

      	

            	5.2.	
              In case of Election of either Section 102 Capital Gain Track or Section 102 Employment Income Track, all Awards granted (and Shares issued upon exercising of Options) shall be held by the Trustee and registered in the Trustee's name for
                the benefit of Employee. Awards or any Shares allocated or issued upon exercise of Options and/or other shares and/or rights received subsequently following any realization of rights, including without limitation bonus shares and dividends,
                shall be registered and held by the Trustee for the benefit of the Employee at least until the end of the restricted period as defined in Section 102 (the "Restricted Period").

            

       

      	

            	5.3.	
              Any grant and any exercise of an Award granted under Section 102 Capital Gain Track shall be notified to the Trustee in accordance with the ITA's guidelines.

            

       

      	

            	5.4.	
              In the event the requirements under Section 102 Capital Gain Track or Section 102 Employment Income Track are not met, then such Award shall be treated in accordance with the provisions of Section 102 and will result in adverse tax
                consequences pursuant to Section 102 or Section 3(i).

            

       

      	

            	5.5.	
              Notwithstanding anything to the contrary, the Trustee shall not release any Award (Shares and/or Options or Shares allocated or issued upon exercise of Options including any dividends and/or bonus shares), granted under Section 102
                Capital Gain Track and Section 102 Employment Income Track prior to the full payment of the Participant's tax liabilities arising from such Awards.

            

       

      	

            	5.6.	
              As long as the applicable tax has not been paid, neither the Option nor the Shares subject to the Award, as the case may be, may be sold, transferred, assigned, pledged or attorney for mortgaged (other than through a transfer by will or
                by operation of law), nor may be subject of an attachment, power of attorney or transfer deed (other than a power of the purpose of participation in shareholders meetings or voting such Shares) unless Section 102 and/or the regulations,
                rules, orders or procedures promulgated thereunder allow otherwise.

            

       

      
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            	5.7.	
              With respect to any Award granted under Section 102 Capital Gain Track and Section 102 Employment Income Track, subject to the provisions of Section 102 and any rules or regulation or orders or procedures promulgated thereunder, a
                Participant shall not be entitled to sell and/or release from trust any Shares or Options and/or Share received upon the exercise of an Option and/or any other asset received, including without limitation any dividends and/or bonus shares,
                until the lapse of the Restricted Period and/or in accordance with tax ruling obtained. Notwithstanding the above, if any such release or transfer occurs during the Restricted Period, the sanctions under Section 102 shall apply to and shall
                be borne by such Participant.

            

       

      	

            	5.8.	
              The Trustee shall be exempt from any liability in respect of any action or decision duly taken in its capacity as a Trustee, provided, however, that the Trustee acted at all times in good faith.

            

       

      	6.	
              Shares Subject to the Plan

            

       

      	

            	6.1.	
              Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares which may be received under the Plan shall be determined by the Board from time to time. Shares distributed pursuant to the Plan may consist of
                authorized but unissued Shares.

            

       

      	

            	6.2.	
              If an Award expires or becomes non-exercisable without having been exercised in full, the non-purchased Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for grant or sale under the
                Plan. Shares issued under the Plan and later repurchased by the Company pursuant to any repurchase right which the Company may have, shall be available for future grant under the Plan.

            

       

      	7.	
              Grant of Options

            

       

      	

            	7.1.	
              The Administrator may grant Options from time to time at its sole discretion. The Options granted pursuant to the Plan, shall be evidenced by a written Award Agreement. Each Award Agreement shall state, among other matters, the number of
                Options granted, the vesting dates, the exercise price, the tax route and such other terms and conditions as the Administrator at its discretion may prescribe in accordance with this Plan.

            

       

      	

            	7.2.	
              Awards which are issued pursuant to Section 102 Tracks, as determined in the Award Agreement, and any Shares issued following the exercise of such Options shall be subject to the Trustee’s trusteeship, as provided in Section 5 above.

            

       

      	8.	
              Vesting of Options

            

       

      	

            	8.1.	
              The Administrator shall set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Options that will vest. The Administrator may set vesting criteria based upon
                continued engagement with the Company or any Affiliate or based upon both continued engagement and the achievement of Company-wide, business unit, or individual goals, or any other condition as determined by the Administrator in its
                discretion. The vesting conditions and schedule shall be set in the applicable Award Agreement and such conditions may vary. No Option shall be exercised after the Expiration Date, as defined in Section 11 hereinunder.

            

       

      
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            	8.2.	
              Unless determined otherwise by the Administrator, the vesting of the Options shall be postponed during any un-paid leave of absence. Upon return to service, the vesting shall continue and each of the remaining vesting dates shall be
                postponed by the number of days of such period of un-paid leave (i.e. shifting the entire remaining vesting schedule and extending it by the number of unpaid leave days). Despite the aforementioned, the following shall not postpone the
                vesting of the Options: paid vacation, paid sick leave, paid maternity leave, infant care leave, medical emergency leave, military reserve duty.

            

       

      	

            	8.3.	
              The vesting of the Options shall continue upon any transfer of a Participant between the Company and any Affiliate or between Affiliates.

            

       

      	

            	8.4.	
              An Option may be subject to such other terms and conditions, not inconsistent with the Plan, on the time or times when it may be exercised as the Administrator may deem appropriate.

            

       

      	9.	
              Exercise Price and Method of Payment

            

       

      	

            	9.1.	
              The exercise price of an Award shall be determined by the Administrator on the date of grant in accordance with Applicable Law and subject to guidelines as shall be suggested by the Board from time to time.

            

       

      	

            	9.2.	
              The exercise price may or may not be equal to the Fair Market Value of the Company's Shares, and any evaluation executed in relation to the Company's Shares shall not obligate the Company when determining the exercise price of any
                Option. The exercise price will be adjusted following dividend distributions by the Company, if any.

            

       

      	

            	9.3.	
              The consideration for the exercise of Option shall be payable in a form satisfactory to the Administrator, including without limitation, by cash or check. The Administrator shall have the authority to postpone the date of payment on such
                terms as it may determine. In addition, the Administrator in his full discretion and subject to Applicable Law and/or tax ruling issued by the ITA may adopt a cashless and/or net exercise method in accordance with the ITA ruling (if
                required) or the ITA's guidelines.

            

       

      	

            	9.4.	
              The proceeds received by the Company from the issuance of Shares subject to the Options will be added to the general funds of the Company and used for its corporate purposes.

            

       

      	10.	
              Exercise of Option.

            

       

      	

            	10.1.	
              Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for
                a fraction of a Share.

            

       

      
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            	10.2.	
              An Option shall be deemed exercised when the Company receives: (i) a written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise the Option, and (ii) full payment of the exercise
                price for such Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by Applicable Law, the Award Agreement and the Plan.
                Shares issued upon exercise of an Option shall be issued in the name of the Participant, provided that Shares issued upon exercise of any Option which was granted under Section 102 Capital Gain Track or under Section 102 Employment Income
                Track shall be held, issued and registered in the name of the Trustee for the benefit of the Participant until the end of the Restricted Period.

            

       

      	

            	10.3.	
              If any law or regulation requires the Company to take any action with respect to the Shares specified in such notice of exercise before the issuance thereof, then the date of their issuance shall be extended for the period necessary to
                take such action.

            

       

      	

            	10.4.	
              Subject to Applicable Law, an Option may not be exercised unless at the time the Participant gives notice of exercise to the Company, the Participant includes with such notice also payment in cash or by bank check (or payment through
                sale of shares, to the extent permitted by Applicable Law and in accordance with an ITA ruling (if required) or the ITA guidelines) of all withholding taxes due, if any, on account of his or her acquired Shares under the Option or gives
                other assurance satisfactory to the Administrator of the payment of those withholding taxes.

            

       

      	

            	10.5.	
              Exercise of an Option in any manner shall result in a decrease in the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

            

       

      	

            	10.6.	
              Participant shall sign any document required under any Applicable Law or by the Company or the Trustee for the purposes of issuance of the Shares.

            

       

      	11.	
              Term of Award

            

       

      The term of Award shall expire on such date or dates as the Administrator shall determine at the time of the grant; provided, however, that the term of an
        Award shall not exceed ten (10) years from the date of grant thereof and subject to Section 13 of the Plan (the "Expiration Date").

       

      	12.	
              Non-Transferability of Award

            

       

      Award and the rights and privileges thereof shall not be sold, pledged, assigned, hypothecated, transferred, mortgaged, seizure or given as collateral or disposed of in any
        manner other than by will or by the laws of descent or distribution and may be exercised during the lifetime of the Participant, only by the Participant and subject to the provisions of Section 102 and/or any Applicable Law, and shall not be
        subject to sale under execution, attachment, levy or similar process.

      

      

      
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      	13.	
              Termination

            

       

      	

            	13.1.	
              In the event of termination of Participant's employment with the Company or any of its Affiliates, or if applicable, the termination of services given to the Company or any of its Affiliates by the Participant, unless otherwise
                determined by the Administrator, (i) all Options granted to Participant, which are vested and exercisable at the time of such termination, may, unless earlier terminated in accordance with the Award Agreement, be exercised within three (3)
                months after the date of such termination (or such different period as the Administrator shall prescribe) but in no event later than the expiration of the term of such Option as set forth in the Award Agreement. On the date of termination,
                all unvested Options shall expire, and the Shares covered by the unvested portion of the Option shall revert to the Plan. If a vested Option upon termination is not so exercised within the time specified above, the Option shall expire, and
                the Shares covered by such Option shall revert to the Plan (ii) with respect to Awards other than Options, all Awards granted to Participant, which are unvested and/or the restrictions have not lapsed, at the time of such termination, shall
                terminate, expire and revert to the Plan.

            

       

      	

            	13.2.	
              In the event of termination of Participant's employment with the Company or any of its Affiliates, or if applicable, the termination of services given to the Company or any of its Affiliates by the Participant, by reason of death or
                total and permanent disability, unless otherwise determined by the Administrator, (i) all Options granted to Participant, which are vested and exercisable at the time of such termination may be exercised by the Participant, the
                Participant's legal guardian, the Participant's estate or a person who acquires the right to exercise the Option upon bequest or inheritance, as the case may be, within twelve (12) months after termination to the extent the Option is vested
                on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). If, on the date of termination, a portion of the Shares covered by the Participant's Option is not vested
                in full, the unvested Shares shall revert to the Plan. If vested Shares covered by the Option are not so exercised within the period specified above, the Option shall expire, and the Shares covered by such Option shall revert to the Plan
                (ii) with respect to Awards other than Options, all Awards granted to Participant, which are unvested and/or the restrictions have not lapsed at the time of such termination, shall terminate, expire and revert to the Plan.

            

       

      	

            	13.3.	
              Notwithstanding Sections 13.1 and 13.2 of the Plan, in the event of termination of Participant's employment with the Company or any of its Affiliates, or if applicable, the termination of services given to the Company or any of its
                Affiliates by the Participant for Cause (as defined hereunder), all outstanding Awards granted to such Participant (whether vested or not) shall, to the extent not exercised, terminate on the date of such termination, unless
                otherwise determined by the Administrator, and the Shares covered by such Award shall revert to the Plan.

            

       

      
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            	13.4.	
              For purposes of this Section, termination for "Cause" shall mean any of the following: (i) Participant has committed a dishonorable criminal offense; (ii)
                Participant is in breach of Participant's duties of trust or loyalty to Company and/or Affiliate; (iii) Participant deliberately causes harm to Company's and/or Affiliate's business affairs, and/or any action by the Participant which has a
                detrimental effect on the Company and/or its Affiliate's reputation or business; (iv) Participant  breaches the confidentiality and/or non-competition and/or non-solicitation and/or assignment of inventions provisions of any agreement
                between the Company and/or Affiliate and the Participant and/or the provisions relating to confidentiality of the terms and conditions of any agreement signed between the Company and/or Affiliate and the Participant; (v) the Participant's
                failure or inability to perform any reasonable assigned duties after written notice from the Company and/or its Affiliate of, and a reasonable opportunity to cure, such failure or inability; and/or (vi) circumstances that do not entitle
                Participant to severance payments under any applicable law and/or under any judicial decision of a competent tribunal.

            

       

      	

            	13.5.	
              In the event that the Participant does not comply in full with any of non-compete, non solicitation, confidentiality or any other requirements of any agreement between the Company and/or Affiliate and the Participant (whether before or
                after termination of Participants employment or engagement, as applicable, by the Company and/or its Affiliate), the Administrator may, in its sole discretion, refuse to allow the exercise of the Options and all outstanding Options shall be
                terminated and the Shares covered by such Option shall revert to the Plan.

            

       

      	

            	13.6.	
              Participant shall not be entitled to claim that he or she was prevented from continuing to vest Awards as of the termination date. Such Participant shall not be entitled to any compensation in respect of the Awards which would have
                vested in his or her favor had such Participant’s employment or engagement with the Company not been terminated.

            

       

      	14.	
              Adjustments upon Changes in Capitalization

            

       

      In the event of a shares split, reverse share split, cash dividend, share dividend, recapitalization, combination or reclas-sification of the Shares, rights issuance or any
        other increase or decrease in the number of issued Shares effected without receipt of con-sideration by the Company (but not the conversion of any convertible securities of the Company), the Administrator in its sole discretion may make an
        appropriate adjustment in the number of Shares related to each outstanding Award, the number of Shares reserved for issuance under the Plan, as well as the exercise price per Share of each outstanding Option, provided, however, that
        any fractional shares resulting from such adjustment shall be rounded down to the nearest whole share unless otherwise determined by the Administrator. Except as express-ly provided herein, no issuance by the Company of shares of any class, or
        securities convertible into shares of any class, shall affect an Award granted to a Participant, and no adjustment by reason thereof shall be made with respect to the number or price of Shares subject to an Award.

       

      	15.	
              Dissolution or Liquidation

            

       

      In the event of dissolution or liquidation of the Company, the Administrator shall notify each Participant as soon as practicable prior to the effective date of such
        transaction. The Administrator in its discretion will determine the period of time of which Option (which is vested and exercisable) may be exercised, which in no event is less than fifteen (15) days prior to such transaction. To the extent the
        Option has not been previously exercised, the Option will expire immediately prior to the consummation of such proposed action.

       

      
        11

        
          

      

      	16.	
              Structural Change

            

       

      	

            	16.1.	
              In the event of a Structural Change, the Administrator in its discretion may determine that the Shares underlying the Awards subject to the Plan shall be exchanged or converted into shares of the Company or Successor Company in
                accordance with the exchange effectuated in relation to the ordinary shares of the Company, and the exercise price and quantity of shares underlying the Awards shall be adjusted in accordance with the terms of the Structural Change. The
                adjustments required shall be determined in good faith solely by the Administrator and shall be subject to the receipt of any approval required, including any tax ruling, if necessary.

            

       

      	

            	16.2.	
              For purposes of this Section:

            

       

      	

            	16.2.1.	
              "Structural Change" shall mean any re-domestication of the Company, share flip, creation of a holding company for the Company which will hold substantially all of the Shares of the Company or any
                other transaction involving the Company in which the Shares of the Company outstanding immediately prior to such transaction continue to represent, or are converted into or exchanged for shares that represent, immediately following such
                transaction, at least a majority, by voting power, of the share capital of the surviving, acquiring or resulting corporation.

            

       

      	

            	16.2.2.	
              "Successor Company" shall mean any entity with or into which the Company was merged or consolidated, or to which certain operations or certain assets of the Company were transferred, or which
                purchased substantially all the Company’s assets or shares, including any parent of such entity.

            

       

      	

            	16.3.	
              In the event of any change in the control of the Company, including the sale of control, the Administrator may determine that all options shall mature immediately.

            

      

      

      	17.	
              Spin-Off

            

       

      	

            	17.1.	
              In the event of a Spin-Off, the Administrator may determine that the holders of Awards shall be entitled to receive equity in the new company formed as a result of the Spin-Off, in accordance with equity granted to the ordinary
                shareholders of the Company within the Spin-Off, taking into account the terms of the Awards, including the vesting schedule and exercise price. The determination regarding the Participant's entitlement within the scope of a Spin-Off shall
                be in the sole and absolute discretion of the Administrator.

            

       

      	

            	17.2.	
              For the purpose of this Section "Spin-Off" shall mean any transaction in which assets of the Company or Shares of the Company are transferred or sold to a company or corporate entity in which the
                shareholders of the Company hold the same respective ownership stakes they are then holding in the Company.

            

      

      

      
        12

        
          

      

       

      	18.	
              Merger/Sale

            

       

      	

            	18.1.	
              In the event of a single transaction and/or a series of transactions in connection with any of the following events: (i) the sale, transfer or other disposition of all or substantially all of the assets of the Company for cash,
                securities or any other asset, (ii) a sale (including an exchange) of all or substantially all of the Shares of the Company (iii) a merger, acquisition, consolidation, amalgamation or like transaction of the Company with or into another
                corporation whereas the Company is not the surviving Company (iv) a scheme of arrangement for the purpose of effecting such sale, merger, acquisition, consolidation or amalgamation, or (v) such other transaction that is determined by the
                Board to be a transaction having a similar effect (all such transactions being herein referred to as a "Merger/Sale"), then, without the Participant's consent or action:

            

       

      	

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

            

       

      	

            	(ii)	
              In the event that the Awards are not assumed or substituted (in all or in part), then the Board may (but shall not be obligated to), in lieu of such assumption or substitution of the Award and in its sole discretion: (a) provide the
                Participant with the right to exercise the vested Award within a certain time period and sell all of their Shares, and/or cancel all of the unvested Awards and/or (b) provide for the cancellation of each outstanding Award at the closing of
                such Merger/Sale, and payment (by cash including cash-out of the Awards for the net value and/or securities) to the Participant for any vested Award, as determined by the Board, all subject to such terms and conditions as determined by the
                Board.

            

       

      	

            	(iii)	
              The Board shall have the right (but not the obligation) to: (a) accelerate of the vesting of an Award, as to all or part of the Shares covered by the Award which would not otherwise be exercisable or vested, and all under such terms and
                conditions as the Board shall determine on a case-by-case basis; (b) determine that the exchange, assumption, conversion or purchase detailed above will be made subject to any escrow arrangement, or any other arrangement determined within
                the Merger/Sale.

            

       

      	

            	18.2.	
              Notwithstanding the above, in the event of a Merger/Sale in which all or substantially all of the Shares of the Company are to be exchanged for securities of another company, each Participant shall be obliged to sell or exchange, as the
                case may be, any Shares issued to the Participant under the Plan, in accordance with the instructions issued by the Board, whose determination shall be final. Unless determined otherwise by the Board, any Awards not assumed or exchanged for
                Awards and/or shares and/or other securities or rights or not cashed-out, shall expire immediately prior to the consummation of the Merger/Sale.

            

       

      
        13

        
          

      

      	

            	18.3.	
              Notwithstanding the foregoing, in the event of a Merger/Sale, the Board may determine, in its sole discretion, that upon or prior to completion of such Merger/Sale, the terms of the Plan shall be amended and/or modified and/or the terms
                of any Award be otherwise amended, modified or terminated, as the Board shall deem to be appropriate, including but not limited to, that the Award shall confer the right to purchase or receive any other security or asset, or any combination
                thereof, or that its terms be otherwise amended, modified or terminated, as the Board shall deem to be appropriate.

            

       

      	

            	18.4.	
              Neither the authorities and powers of the Board under this Section nor the exercise or implementation thereof, shall (i) be restricted or limited in any way by any adverse consequences (tax or otherwise) that may result to any holder of
                an Award, and (ii) be deemed to constitute a change or an amendment of the rights of such holder under this Plan, nor shall any such adverse consequences (as well as any adverse tax consequences that may result from any tax ruling or other
                approval or determination of any relevant tax authority) be deemed to constitute a change or an amendment of the rights of such holder under this Plan.

            

       

      	

            	18.5.	
              For avoidance of doubt, it is hereby clarified that any tax consequences arising from the above described, shall be borne solely by the Participant.

            

       

      	

            	18.6.	
              Notwithstanding the above said, the Board may adopt, in its sole discretion, other terms regarding the treatment of the outstanding Awards, in case of Merger/Sale.

            

       

      	19.	
              Articles of Association; Shareholders Agreement

            

       

      	

            	19.1.	
              Participant acknowledges the terms and provisions of the Article of Association of the Company, as shall be amended from time to time. Any change of the Articles of Association or any other incorporation document, which may change the
                rights attached to the Company’s ordinary shares, shall also apply to the Shares, and the provisions hereof shall apply with the necessary modifications arising from any such change.

            

       

      	

            	19.2.	
              Participant acknowledges and accepts the terms and provisions of any shareholders agreements as applicable to other shareholders holding Shares of the Company, and hereby agrees to be bound by their terms as if he or she was an original
                party thereof.

            

       

      	

            	19.3.	
              Participant acknowledges that Participant's rights to sell the Shares may be subject to certain limitations as may be requested by the Company or its underwriters, and the Participant unconditionally agrees and accepts any such
                limitation.

            

       

      	

            	19.4.	
              The grant of Awards under this Plan shall not restrict the Company in any way regarding future creation of additional and/or other classes of shares, including classes of shares, which may in any manner be preferred over the currently
                existing ordinary shares which are offered to Participants under this Plan.

            

       

      	20.	
              Date of Grant

            

       

      Subject to Applicable Law, the date of grant of an Award shall, for all purposes, be the date on which the Administrator makes the determination granting such Participant.

      

      

      
        14

        
          

      

       

      	21.	
              Rights as a Shareholder; Voting and Dividends

            

       

      	

            	21.1.	
              Prior to exercise of an Option and with respect to restricted shares during the period of restrictions, a Participant shall have none of the rights of a shareholder of the Company. Upon exercise of an Option, a Participant shall have no
                shareholder rights until the Shares are issued, as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company.

            

       

      	

            	21.2.	
              In case of a dividend distribution, the Company may adjust the exercise price accordingly.

            

       

      	22.	
              Tax Consequences

            

       

      	

            	22.1.	
              Any tax consequences arising from the grant and/or vesting and/or exercise and/or sale and/or transfer and/or any disposition and/or vesting and/or waiver and/or expiration and/or amendment of an Award and/or from any other event or act
                (whether of the Participant or of the Company or of its Affiliates or of the Trustee) hereunder, shall be borne solely by the Participant.

            

       

      	

            	22.2.	
              For the avoidance of doubt it is clarified that any Award granted to a Consultant or a Controlling Shareholder or any Award granted to a Participant who is not an Israeli tax resident, shall not be subject to the provisions of Section
                102 and shall be taxed in accordance with Applicable Law.

            

       

      	

            	22.3.	
              The Company and/or the Trustee shall have the right to withhold taxes according to the requirements under Applicable Laws, rules and regulations, including withholding taxes at source and under Section 102 or Section 3(i).

            

       

      	

            	22.4.	
              Furthermore, a Participant shall indemnify the Company and/or Affiliate and/or the Trustee (if applicable) and/or the Company's shareholders and/or directors and/or officers, immediately upon request, and hold them harmless against and
                from any and all liability for any tax including without limitation interest, linkage differentials or penalty thereon, liabilities relating to the necessity to withhold tax for which the Participant is liable under any Applicable Law or
                under the Plan, and which was paid by the Company, the Affiliate or the Trustee (if applicable), or which the Company, the Affiliate or the Trustee (if applicable) are required to pay such tax. The Company, the Affiliate and the Trustee (if
                applicable) may exercise such indemnification by deducting the amount subject to indemnification from the Participants’ salaries or remunerations.

            

       

      	

            	22.5.	
              Except as otherwise required by law, the Company shall not be obligated to honor the exercise of any Option or other Award by or on behalf of a Participant until all tax consequences (if any) arising from the exercise of such Options
                and/or sale of Shares and/or Award are resolved in a manner reasonably acceptable to the Company. Furthermore, the Company's or the Trustee's (if applicable) obligation to sell or to transfer Shares is subject to payment (or provision for
                payment satisfactory to the Company and the Trustee (if applicable)) by the Participant of all Taxes due by him under any Applicable Law.

            

       

      	

            	22.6.	
              With respect to Awards granted under Section 102 Capital Gain Track and Section 102 Employment Income Track, the Trustee and/or the Company will withhold any tax due to the ITA according to applicable trust agreement, the Plan and any
                Applicable Law.

            

       

      
        15

        
          

      

      	

            	22.7.	
              In respect to Awards granted under Section 102 Non Trustee Track, if the Participant's service to or employment with the Company or an Affiliate is terminated, the Participant shall extend to the Company or the applicable Affiliate a
                security or guarantee for the payment of Tax due in respect of such Award as required under Section 102.

            

       

      	

            	22.8.	
              Without derogating the above, the Participant's Award shall be subject to any tax ruling and/or other arrangements between the Company and tax authorities.

            

       

      	

            	22.9.	
              For avoidance of doubt it is clarified that the tax treatment of any Award granted under this Plan is not guaranteed and although Awards may be granted under a certain tax route, they may become subject to a different tax route in the
                future.

            

       

      	

            	22.10.	
              Any Award granted under Section 102 Capital Gain Track is meant to comply in full with the terms and conditions of Section 102 and the requirements of the ITA, therefore the Plan is to be read such that it complies with the requirements
                of Section 102. Should any provision in the Plan disqualify the Plan and/or any Award granted under Section 102 Capital Gain Track granted thereunder from beneficial tax treatment pursuant to the provisions of Section 102, such provision
                shall not apply to such Awards and underlying Shares unless the ITA provides approval of compliance with Section 102.

            

       

      	23.	
              No Rights to Employment

            

       

      Nothing in the Plan or in any Award granted or agreement entered into force pursuant hereto shall confer upon any Participant the right to continue an employment relationship,
        or to continue in a consultant, director, officer or service provider relationship with the Company or Affiliate or to be entitled to any remuneration or benefits not set forth in the Plan or such agreement or to interfere with or limit in any way
        the right of the Company or Affiliate to terminate such Participant's relationship.

       

      	24.	
              Term, Termination and Amendment of the Plan

            

       

      	

            	24.1.	
              The Plan shall become effective upon its adoption by the Board and shall continue in effect for a term of ten (10) years from the date of adoption unless sooner terminated.

            

       

      	

            	24.2.	
              The Board may at any time amend, update, change, alter, suspend or terminate the Plan or the term and conditions of Award granted under the Plan.

            

       

      	

            	24.3.	
              Termination of the Plan shall not affect the Administrator's ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

            

       

      	

            	24.4.	
              The Plan and any Award granted thereunder shall be binding on all successors and assignees of the Company and a Participant, including, without limitation, the estate of such Participant and the executor, administrator or trustee of such
                estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.

            

       

      	25.	
              Conditions Upon Issuance of Shares

            

       

      	

            	25.1.	
              Investment Representations. As a condition to the exercise of an Option, or the grant of an Award, the Administrator may require the Participant to represent and warrant at the time of such exercise that the Shares are being
                purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

            

       

      	

            	25.2.	
              Other Compliance. At the time of issuance, the Participant is not in default under any agreement between the Company and any of its Affiliates.

            

       

      
        16

        
          

      

      	26.	
              Inability to Obtain Authority

            

       

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

       

      	27.	
              Reservation of Shares

            

       

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

       

      	28.	
              Multiple Agreements

            

       

      	

            	28.1.	
              The terms of each Award may differ from other Awards granted under the Plan at the same time. The Administrator may also grant more than one Award to a given Participant during the term of the Plan in addition to one or more Awards
                previously granted to that Participant.

            

       

      	

            	28.2.	
              This Plan (together with the applicable Award Agreement(s) entered into with any Participant and any Sub Plan) constitutes the entire agreement and understanding between the Company and such Participant in connection with the grant of
                Awards to the Participant. Any representation and/or promise and/or undertaking made and/or given by the Company or by whosoever on its behalf, which has not been explicitly expressed herein or in an Award Agreement, shall have no force and
                effect.

            

       

      	29.	
              Governing Law

            

       

      This Plan shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect to the principles of conflict of laws. The
        competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining to the Plan.

       

      ******

      

      

    

  

  
    17Exhibit
4.1

 

Execution
Copy

 

STRATASYS
LTD.

 

and

 

CONTINENTAL
STOCK TRANSFER & TRUST COMPANY

 

Rights
Agreement

 

Dated
as of July 25, 2022

 

TABLE
OF CONTENTS

 

	 	 	Page

	 	 	 
	Section
    1.	Definitions	2 
	Section
    2.	Appointment
    of Rights Agent	5 
	Section
    3.	Issue
    of Right Certificates	5 
	Section
    4.	Form
    of Right Certificates	7 
	Section
    5.	Countersignature
    and Registration	7 
	Section
    6.	Transfer,
    Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	7 
	Section
    7.	Exercise
    of Rights; Purchase Price; Expiration Date of Rights	8 
	Section
    8.	Cancellation
    and Destruction of Right Certificates	8 
	Section
    9.	Availability
    of Ordinary Shares	8 
	Section
    10.	Ordinary
    Shares Record Date	9 
	Section
    11.	Adjustment
    of Purchase Price, Number of Shares or Number of Rights	9 
	Section
    12.	Certificate
    of Adjusted Purchase Price or Number of Shares	11 
	Section
    13.	Consolidation,
    Merger or Sale or Transfer of Assets or Earning Power	12 
	Section
    14.	Fractional
    Rights and Fractional Shares	12 
	Section
    15.	Rights
    of Action	13 
	Section
    16.	Agreement
    of Right Holders	13 
	Section
    17.	Right
    Certificate Holder Not Deemed a Shareholder	13 
	Section
    18.	Concerning
    the Rights Agent	14 
	Section
    19.	Merger
    or Consolidation or Change of Name of Rights Agent	14 
	Section
    20.	Duties
    of Rights Agent	14 
	Section
    21.	Change
    of Rights Agent	15 
	Section
    22.	Issuance
    of New Right Certificates	16 
	Section
    23.	Redemption	16 
	Section
    24.	Exchange	16 
	Section
    25.	Special
    Tender Offer	17 
	Section
    26.	Notice
    of Certain Events	17 
	Section
    27.	Notices	18 
	Section
    28.	Supplements
    and Amendments	18 
	Section
    29.	Successors	18 
	Section
    30.	Determinations
    and Actions by the Board of Directors, etc	18 
	Section
    31.	Benefits
    of this Agreement	19 
	Section
    32.	Severability	19 
	Section
    33.	Governing
    Law	19 
	Section
    34.	Counterparts	19 
	Section
    35.	Descriptive
    Headings	19 
	Section
    36.	Force
    Majeure	19 
	 	 	 
	Signatures	 	20 
	 	 	 
	Exhibit
    A - Form of Right Certificate
	Exhibit
    B - Summary of Rights to Purchase Ordinary Shares

 

    i

     

    

 

Rights
Agreement (“Agreement”), dated as of July 25, 2022, between STRATASYS LTD., an Israeli company (the “Company”),
and CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York corporation, as rights agent (the “Rights Agent”).

 

The
Board of Directors of the Company has authorized and declared an issuance of one special purchase right (a “Right”)
for each Ordinary Share (as hereinafter defined) of the Company outstanding as of the Close of Business on August 4, 2022 (the “Record
Date”), each Right representing the right to purchase one (1) Ordinary Share, at the price of $0.01 per share, upon the terms
and subject to the conditions set forth herein, and has further authorized and directed the issuance of one Right with respect to each
Ordinary Share that shall become outstanding between the Record Date and the earliest of the Issuance Date, the Redemption Date and the
Final Expiration Date (as such terms are hereinafter defined).

 

Accordingly,
in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:

 

Section
1. Definitions. For purposes of this Agreement, the following terms have the meanings indicated:

 

(a)
“Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person,
shall be the Beneficial Owner of 15% or more of the Ordinary Shares of the Company then outstanding, but shall not include the Company,
any Subsidiary of the Company, any employee benefit or share ownership plan of the Company or any Subsidiary of the Company, or any entity
holding Ordinary Shares for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person shall become an “Acquiring
Person” as the result of an acquisition of Ordinary Shares by the Company which, by reducing the number of Ordinary Shares of the
Company outstanding, increases the proportionate number of Ordinary Shares of the Company beneficially owned by such Person to 15% or
more of the Ordinary Shares of the Company then outstanding; provided, however, that, if a Person shall become
the Beneficial Owner of 15% or more of the Ordinary Shares of the Company then outstanding by reason of share purchases by the Company
and shall, after such share purchases by the Company, become the Beneficial Owner of any additional Ordinary Shares of the Company, then
such Person shall be deemed to be an “Acquiring Person.” Notwithstanding the foregoing, if the Board of Directors of the
Company determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this paragraph (a), has become such inadvertently, and such Person divests as promptly as practicable a sufficient number
of Ordinary Shares, so that such Person would no longer be an “Acquiring Person,” as defined pursuant to the foregoing provisions
of this paragraph (a), then such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement.
Notwithstanding the foregoing, no Person who at the time of the first public announcement of the declaration of the Rights is the Beneficial
Owner of 15% or more of the then-outstanding Ordinary Shares of the Company shall become an Acquiring Person unless such Person shall,
after the time of the public announcement of the declaration of the Rights, increase the number of Ordinary Shares beneficially owned
by such Person as a percentage of the then-outstanding Ordinary Shares (other than as a result of an acquisition of Ordinary Shares by
the Company) to an amount equal to or greater than the greater of (1) 15% and (2) the sum of (I) the lowest Ordinary Shares beneficially
owned by such Person as a percentage of the outstanding Ordinary Shares as of any time from and after the time of the public announcement
of the declaration of the Rights and (II) 0.001%.

 

    2

     

    

 

(b)
“Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under
the Exchange Act as in effect on the date of this Agreement.

 

(c)
“Associate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under
the Exchange Act as in effect on the date of this Agreement.

 

(d)
A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any
securities:

 

(i)
which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, beneficially owns, within the meaning
of Rule 13d-3 of the General Rules and Regulations promulgated under the Exchange Act as in effect on the date of this Agreement;

 

(ii)
which such Person or any of such Person’s Affiliates or Associates has (A) the right or the obligation to acquire (whether such
right is exercisable, or such obligation is required to be performed, immediately or only after the passage of time or upon the satisfaction
of any condition, whether or not within the control of such Person, Affiliate or Associate) pursuant to any agreement, arrangement or
understanding (whether or not in writing, but other than customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange
rights, rights (other than these Rights), warrants or options, or otherwise; provided, however, that a Person
shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made
by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for
purchase or exchange; or (B) the right to vote pursuant to any agreement, arrangement or understanding (whether or not in writing); provided, however,
that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security if the agreement, arrangement or understanding
to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2)
is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or

 

(iii)
which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s Affiliates
or Associates has any agreement, arrangement or understanding (whether or not in writing, but other than customary agreements with and
between underwriters and selling group members with respect to a bona fide public offering of securities)
for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(d)(ii)(B) hereof) or
disposing of any securities of the Company; or

 

(iv)
which are beneficially owned, directly or indirectly, by a Counterparty (or any of such Counterparty’s Affiliates or Associates)
under any Derivatives Contract (without regard to any short or similar position under the same or any other Derivatives Contract) to
which such Person or any of such Person’s Affiliates or Associates is a Receiving Party (as such terms are defined in the immediately
following paragraph); provided, however, that the number of Ordinary Shares and Rights that a Person is deemed to Beneficially Own pursuant
to this clause (iv) in connection with a particular Derivatives Contract shall not exceed, in each case, the number of Notional Common
Shares with respect to such Derivatives Contract; provided, further, that the number of securities beneficially owned by each Counterparty
(including its Affiliates and Associates) under a Derivatives Contract shall for purposes of this clause (iv) be deemed to include all
securities that are beneficially owned, directly or indirectly, by any other Counterparty (or any of such other Counterparty’s
Affiliates or Associates) under any Derivatives Contract to which such first Counterparty (or any of such first Counterparty’s
Affiliates or Associates) is a Receiving Party, with this proviso being applied to successive Counterparties as appropriate.

 

A
“Derivatives Contract” is a contract between two parties (the “Receiving Party” and the “Counterparty”)
that is designed to produce economic benefits and risks to the Receiving Party that correspond substantially to the ownership by the
Receiving Party of a number of Ordinary Shares specified or referenced in such contract (the number corresponding to such economic benefits
and risks, the “Notional Common Shares”), regardless of whether obligations under such contract are required or permitted
to be settled through the delivery of cash, Ordinary Shares or other property, without regard to any short position under the same or
any other Derivatives Contract. For the avoidance of doubt, interests in broad-based index options, broad-based index futures and broad-based
publicly traded market baskets of stocks approved for trading by the appropriate federal governmental authority shall not be deemed to
be Derivatives Contracts.

 

    3

     

    

 

Notwithstanding
anything in this definition of Beneficial Ownership to the contrary, (i) the phrase “then outstanding,” when used with reference
to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding
together with the number of such securities not then actually issued and outstanding which are issuable by the Company and which such
Person would be deemed to Beneficially Own hereunder and (ii) nothing in this Section 1(d) shall cause a Person engaged in business as
an underwriter of securities to be the “Beneficial Owner” of, or to “beneficially own,” any securities acquired
through such Person’s participation in good faith in a firm commitment underwriting until the expiration of forty days after the
date of such acquisition, and then only if such securities continue to be owned by such Person at such expiration of forty days.

 

(e)
“Business Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions in New York,
New York are authorized or obligated by law or executive order to close.

 

(f)
“Close of Business” on any given date shall mean 5:00 P.M., New York, New York time, on such date; provided, however,
that, if such date is not a Business Day, it shall mean 5:00 P.M., New York, New York time, on the next succeeding Business Day.

 

(g)
“Issuance Date” shall have the meaning set forth in Section 3(a) hereof.

 

(h)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(i)
“Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof.

 

(j)
“Final Expiration Date” shall have the meaning set forth in Section 7(a) hereof.

 

(k)
“Israeli Companies Law” shall mean the Israeli Companies Law, 5759-1999

 

(l)
“Nasdaq” shall mean the Nasdaq Stock Market.

 

(m)
“Ordinary Shares” when used with reference to the Company shall mean the ordinary shares, par value NIS 0.01 per share,
of the Company. “Ordinary Shares” when used with reference to any Person other than the Company shall mean the share capital
(or equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary of another Person,
the Person or Persons which ultimately control such first-mentioned Person.

 

(n)
“Person” shall mean any individual, firm, corporation, partnership, limited liability company, limited liability partnership,
association, trust, syndicate or other entity, and shall include any successor (by merger or otherwise) of such entity, as well as any
joint venture or unincorporated group of individuals or entities that, by formal or informal agreement or arrangement (whether or not
in writing), have embarked on a common purpose or act.

 

(o)
“Purchase Price” shall have the meaning set forth in Section 4 hereof.

 

(p)
“Record Date” shall have the meaning set forth in the second paragraph hereof.

 

(q)
“Redemption Date” shall have the meaning set forth in Section 7(a) hereof.

 

(r)
“Right” shall have the meaning set forth in the second paragraph hereof.

 

(s)
“Right Certificate” shall have the meaning set forth in Section 3(a) hereof.

 

    4

     

    

 

(t)
“Shares Acquisition Date” shall mean the first date of public announcement or public disclosure by the Company or
an Acquiring Person that an Acquiring Person has become such.

 

(u)
“Subsidiary” of any Person shall mean any corporation or other entity of which a majority of the voting power of the
voting equity securities or equity interest is owned, directly or indirectly, by such Person.

 

(v)
“Summary of Rights” shall have the meaning set forth in Section 3(b) hereof.

 

(w)
“Trading Day” means a day on which the principal national securities exchange on which the security is listed or admitted
to trading is open for the transaction of business, or, if the security is not listed or admitted to trading on any national securities
exchange but are quoted on Nasdaq, a day on which Nasdaq is in operation or if the security is neither listed nor admitted to trading
on any national securities exchange, a Business Day.

 

Section
2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company in accordance
with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint
such co-Rights Agents as it may deem necessary or desirable, upon ten (10) days’ prior written notice to the Rights Agent. The
Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any such co-Rights Agent.

 

Section
3. Issue of Right Certificates. (a) Until the earlier of (i) the Close of Business on the tenth day after the Shares Acquisition
Date or (ii) the Close of Business on the tenth Business Day (or such later date as may be determined by action of the Board of Directors
of the Company prior to such time as any Person becomes an Acquiring Person) after the date of the commencement by any Person (other
than the Company, any Subsidiary of the Company, any employee benefit or stock ownership plan or of the Company or of any Subsidiary
of the Company or any entity holding Ordinary Shares of the Company for or pursuant to the terms of any such plan) of a tender or exchange
offer (other than a Permitted Offer) the consummation of which would result in any Person becoming the Beneficial Owner of Ordinary Shares
of the Company aggregating 15% or more of the then outstanding Ordinary Shares of the Company (including any such date which is after
the date of this Agreement and prior to the issuance of the Rights) (the earlier of such dates being herein referred to as the “Issuance
Date”), (b) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the balances indicated in the
book-entry account system of the transfer agent for the Ordinary Shares registered in the names of the holders thereof (which Ordinary
Shares shall also be deemed to represent Right Certificates) or, in the case of certificated shares, the certificates for Ordinary Shares
of the Company registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and
not by separate Right Certificates, and (c) the right to receive Right Certificates will be transferable only in connection with the
transfer of Ordinary Shares of the Company. As soon as practicable after the Issuance Date, the Company will prepare and execute, the
Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class,
insured, postage-prepaid mail, to each record holder of Ordinary Shares of the Company as of the Close of Business on the Issuance Date,
at the address of such holder shown on the records of the Company or the transfer agent or registrar for the Ordinary Shares of the Company,
a Right Certificate, in substantially the form of Exhibit A hereto (a “Right Certificate”), evidencing one Right for
each Ordinary Share so held. As of the Issuance Date, the Rights will be evidenced solely by such Right Certificates. In addition, in
connection with the issuance or sale of Ordinary Shares following the Issuance Date and prior to the redemption, exchange, or expiration
of the Rights, the Company (a) shall, with respect to Ordinary Shares so issued or sold pursuant to the exercise of stock options or
under any employee benefit plan or arrangement, granted or awarded as of the Issuance Date, or upon the exercise, conversion or exchange
of securities hereinafter issued by the Company (except as may otherwise be provided in the instrument(s) governing such securities),
and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates representing the appropriate
number of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued if,
and to the extent that, the Company shall be advised by counsel that such issuance would create a significant risk of material adverse
tax consequences to the Company or the Person to whom such Rights Certificate would be issued, and (ii) no such Rights Certificate shall
be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.

 

(b)
On the Record Date, or as soon as practicable thereafter, the Company will send (directly, or at the expense of the Company, upon the
written request of the Company and after the Company provides all necessary information and documents, through the Rights Agent or the
Company’s transfer agent for the Ordinary Shares) a copy of a Summary of Rights to Purchase Ordinary Shares, in substantially the
form of Exhibit B hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder of
Ordinary Shares as of the Close of Business on the Record Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring
Person), at the address of such holder shown on the records of the Company or the transfer agent or registrar for the Ordinary Shares
of the Company. At any time following the Record Date, the Company will send a copy of the Summary of Rights, by first-class, postage-prepaid
mail, to any record holder of Ordinary Shares who requests a copy of the Summary of Rights, at the address of such holder shown on the
records of the Company or the transfer agent or registrar for the Ordinary Shares of the Company. With respect to certificates for Ordinary
Shares of the Company outstanding as of the Record Date, until the Issuance Date, the Rights will be evidenced by the balances indicated
in the book-entry account system of the transfer agent for the Ordinary Shares or, in the case of certificated shares, such certificates
registered in the names of the holders thereof together with a copy of the Summary of Rights attached thereto. Until the Issuance Date
(or the earlier of the Redemption Date or the Final Expiration Date), the surrender for transfer of any certificate for Ordinary Shares
of the Company outstanding on the Record Date, with or without a copy of the Summary of Rights attached thereto, shall also constitute
the transfer of the Rights associated with the Ordinary Shares of the Company represented thereby.

 

    5

     

    

 

(c)
Rights shall be issued in respect of all Ordinary Shares issued (or delivered from the Company’s treasury) after the Record Date
but prior to the earliest of the Issuance Date, the Redemption Date or the Final Expiration Date and shall be evidenced by the following
legends:

 

(i)
Confirmation and account statements sent to holders of Ordinary Shares in book-entry form (which Ordinary Shares shall also be deemed
to represent certificates for Rights) shall bear a legend in substantially the following form:

 

			The
                                            ordinary shares, par value NIS 0.01 per share, of Stratasys Ltd. (the “Corporation”)
                                            entitle the holder thereof to certain Rights as set forth in a Rights Agreement between the
                                            Corporation and Continental Stock Transfer & Trust Company, dated as of July 25, 2022
                                            (the “Rights Agreement”), the terms of which are hereby incorporated herein
                                            by reference and a copy of which is on file at the principal executive offices of the Corporation.
                                            Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced
                                            by separate certificates and will no longer be evidenced by the shares to which this statement
                                            relates. The Corporation will mail (or cause the Rights Agent to mail) to the holder of shares
                                            to which this statement relates a copy of the Rights Agreement without charge promptly after
                                            receipt of a written request therefor. Under certain circumstances set forth in the Rights
                                            Agreement, Rights issued to an Acquiring Person or any Associate or Affiliate thereof (as
                                            such terms are defined in the Rights Agreement) may be null and void. The Rights shall not
                                            be exercisable, and shall be void so long as held, by a holder in any jurisdiction where
                                            the requisite qualification for the issuance to such holder, or the exercise by such holder
                                            of the Rights in such jurisdiction, shall not have been obtained or be obtainable.

 

With
respect to Ordinary Shares in book-entry form for which there has been sent a confirmation or account statement containing the foregoing
legend, until the earliest of the Issuance Date, the Redemption Date or the Final Expiration Date, the Rights associated with the Ordinary
Shares shall be evidenced by such Ordinary Shares alone and registered holders of Ordinary Shares shall also be the registered holders
of the associated Rights, and the transfer of any of such Ordinary Shares shall also constitute the transfer of the Rights associated
with such shares of Ordinary Shares.

 

(ii)
In the case of certificated shares, certificates for Ordinary Shares which become outstanding (including, without limitation, reacquired
Ordinary Shares referred to in the last sentence of this paragraph (c)) after the Record Date but prior to the earliest of the Issuance
Date, the Redemption Date or the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them the
following legend:

 

			This
                                            certificate also evidences and entitles the holder hereof to certain rights as set forth
                                            in an Agreement between Stratasys Ltd. (the “Corporation”) and Continental
                                            Stock Transfer & Trust Company, as Rights Agent, dated as of July 25, 2022, as it may
                                            be amended from time to time (the “Agreement”), the terms of which are
                                            hereby incorporated herein by reference and a copy of which is on file at the principal executive
                                            offices of the Corporation. Under certain circumstances, as set forth in the Agreement, such
                                            Rights (as defined in the Agreement) will be evidenced by separate certificates and will
                                            no longer be evidenced by this certificate. The Corporation will mail (or cause the Rights
                                            Agent to mail) to the holder of this certificate a copy of the Agreement without charge after
                                            receipt of a written request therefor. As set forth in the Agreement, Rights beneficially
                                            owned by any Person (as defined in the Agreement) who becomes an Acquiring Person (as defined
                                            in the Agreement) become null and void.

 

With
respect to such certificates containing the foregoing legend, until the earliest of the Issuance Date, the Redemption Date or the Final
Expiration Date, the Rights associated with the Ordinary Shares of the Company represented by such certificates shall be evidenced by
such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated
with the Ordinary Shares of the Company represented thereby. In the event that the Company purchases or acquires any Ordinary Shares
of the Company after the Record Date but prior to the Issuance Date, the Redemption Date or the Final Expiration Date, any Rights associated
with such Ordinary Shares of the Company shall be deemed cancelled and retired so that the Company shall not be entitled to exercise
any Rights associated with the Ordinary Shares of the Company which are no longer outstanding. Notwithstanding this Section 3(c), the
omission of a legend shall not affect the enforceability of any part of this Agreement or the rights of any holder of the Rights.

 

    6

     

    

 

Section
4. Form of Right Certificates. The Right Certificates (and the forms of election to purchase Ordinary Shares and of assignment
to be printed on the reverse thereof) shall be substantially the same as Exhibit A hereto, and may have such marks of identification
or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any applicable law or with any applicable rule or regulation
made pursuant thereto or with any applicable rule or regulation of any stock exchange, trading market or automated quotation system on
which the Right Certificates may from time to time be listed, or to conform to customary usage. Subject to the provisions of Section
22 hereof, the Right Certificates shall be dated as of the Record Date and on their face shall entitle the holders thereof to purchase
one (1) Ordinary Share at the price of $0.01 per share (the “Purchase Price”), but the number of such Ordinary Shares
and the Purchase Price shall be subject to adjustment as provided herein.

 

Section
5. Countersignature and Registration. The Right Certificates shall be executed on behalf of the Company by its Chairman of
the Board, its Chief Executive Officer, its Chief Legal Officer, either manually or by facsimile signature, shall have affixed thereto
the Company’s seal or a facsimile thereof, and shall be attested by the Chief Financial Officer of the Company, either manually
or by facsimile signature. The Right Certificates shall be countersigned by the Rights Agent, either manually or by facsimile signature,
and shall not be valid for any purpose unless countersigned. In case any officer of the Company who shall have signed any of the Right
Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the
Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with
the same force and effect as though the individual who signed such Right Certificates had not ceased to be such officer of the Company;
and any Right Certificate may be signed on behalf of the Company by any individual who, at the actual date of the execution of such Right
Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Agreement
any such individual was not such an officer.

 

Following
the Issuance Date, the Rights Agent will keep or cause to be kept, at its principal office, books for registration and transfer of the
Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates,
the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right Certificates.

 

Section
6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.
Subject to the provisions of Section 14 hereof, at any time after the Close of Business on the Issuance Date, and at or prior to the
Close of Business on the earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates (other
than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant
to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates entitling
the registered holder to purchase a like number of Ordinary Share as the Right Certificate or Right Certificates surrendered then entitled
such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right Certificates
shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to
be transferred, split up, combined or exchanged at the principal office of the Rights Agent. Thereupon the Rights Agent shall countersign
and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company
may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Right Certificates. The Rights Agent shall promptly forward any such sum collected by it to the
Company or to such Persons as the Company shall specify by written notice.

 

Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation
of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at
the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right Certificate
of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.

 

    7

     

    

 

Section
7. Exercise of Rights; Purchase Price; Expiration Date of Rights.

 

(a)
The registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein), in whole
or in part, at any time after the Issuance Date, upon surrender of the Right Certificate, with the form of election to purchase on the
reverse side thereof properly completed and duly executed, to the Rights Agent at the principal office of the Rights Agent, together
with payment of the Purchase Price for each Ordinary Share as to which the Rights are exercised, at or prior to the earliest of (i) the
Close of Business on July 24, 2023 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as
provided in Section 23 hereof (the “Redemption Date”), or (iii) the time at which such Rights are exchanged as provided
in Section 24 hereof.

 

(b)
The Purchase Price for each Ordinary Share purchasable pursuant to the exercise of a Right shall initially be $0.01 per share, and shall
be subject to adjustment from time to time as provided in Section 11 or 13 hereof, and shall be payable in lawful money of the United
States of America in accordance with paragraph (c) below.

 

(c)
Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase properly completed and duly
executed, accompanied by payment of the aggregate Purchase Price for the shares to be purchased and an amount equal to any applicable
transfer tax required to be paid by the holder of such Right Certificate in accordance with Section 9 hereof by certified check, cashier’s
check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) cause the (A) requisition from
any transfer agent of the Ordinary Shares certificates for the one (1) Ordinary Share to be purchased and the Company hereby irrevocably
authorizes any such transfer agent to comply with all such requests, or (B) requisition from the depositary agent depositary receipts
representing such number of Ordinary Share as are to be purchased (in which case certificates for the Ordinary Shares represented by
such receipts shall be deposited by the transfer agent of the Ordinary Shares with such depositary agent) and the Company hereby directs
such depositary agent to comply with such request; (ii) when appropriate, cause the requisition from the Company the amount of cash to
be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof; (iii) promptly after receipt of such certificates
or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered
in such name or names as may be designated by such holder; and (iv) when appropriate, after receipt, promptly deliver such cash to or
upon the order of the registered holder of such Right Certificate.

 

(d)
In case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such
Right Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section 14 hereof.

 

Section
8. Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for
cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall
be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the
Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates
to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates, and, in such case, shall
deliver a certificate of destruction thereof to the Company.

 

Section
9. Availability of Ordinary Shares. (a) The Company covenants and agrees that it will cause to be reserved and kept available
out of its authorized and unissued Ordinary Shares or any Ordinary Shares held in it as dormant shares, the number of Ordinary Shares
that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7 hereof.

 

    8

     

    

 

(b)
The Company shall use its reasonable commercial efforts to (i) file, as soon as practicable following the earliest date after any Person,
alone or together with its Affiliates and Associates, becomes an Acquiring Person, or as soon as is required by law following the Issuance
Date, as the case may be, a registration statement under the Securities Act of 1933, as amended (the “Act”), with
respect to the securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to become
effective as soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus
at all times meeting the requirements of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable
for such securities, and (B) the date of the expiration of the Rights. The Company will also take such action as may be appropriate,
and commercially reasonable, under, or to ensure compliance with, the securities or “blue sky” laws of the various states
in connection with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed 180 days
after the date set forth in clause (i) of the first sentence of this Section 9(b), the exercisability of the Rights in order to prepare
and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension
is no longer in effect. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction
unless the requisite qualification in such jurisdiction shall have been obtained.

 

(c)
The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Ordinary Shares delivered upon
exercise of Rights shall, at the time of delivery of the certificates for such Ordinary Shares (subject to payment of the Purchase Price),
be duly and validly authorized and issued and fully paid and nonassessable shares.

 

(d)
The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges
which may be payable in respect of the issuance or delivery of the Right Certificates or of any Ordinary Shares upon the exercise of
Rights. The Company shall not, however, be required to pay any transfer tax which may be payable in respect of any transfer or delivery
of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts or entries in the book-entry
account system of the transfer agent for the Ordinary Shares in a name other than that of, the registered holder of the Right Certificate
evidencing Rights surrendered for exercise or to issue or to deliver any certificates for Ordinary Shares or depositary receipts or entries
in the book-entry account system of the transfer agent for Ordinary Shares upon the exercise of any Rights until any such tax shall have
been paid (any such tax being payable by the holder of such Right Certificate at the time of surrender) or until it has been established
to the Company’s satisfaction that no such tax is due.

 

Section
10. Ordinary Shares Record Date. Each Person in whose name any certificate or entry in the book-entry account system of the
transfer agent for Ordinary Shares are issued upon the exercise of Rights shall for all purposes be deemed to have become the holder
of record of the Ordinary Shares represented thereby on, and such certificate or entry in the book-entry account system of the transfer
agent shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase
Price (and any applicable transfer taxes) was made; provided, however, that, if the date of such surrender and
payment is a date upon which the Ordinary Shares transfer books of the Company are closed, such Person shall be deemed to have become
the record holder of such shares on, and such certificate or entry in the book-entry account system of the transfer agent shall be dated,
the next succeeding Business Day on which the Ordinary Shares transfer books of the Company are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a shareholder of the Company with respect
to shares for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company,
except as provided herein.

 

Section
11. Adjustment of Purchase Price, Number of Shares or Number of Rights. The Purchase Price, the one (1) Ordinary Share covered
by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

 

(a)
(i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Ordinary Shares payable
in Ordinary Shares, (B) subdivide the outstanding Ordinary Shares, (C) combine the outstanding Ordinary Shares into a smaller number
of Ordinary Shares or (D) issue any shares of its share capital in a reclassification of the Ordinary Shares (including any such reclassification
in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided
in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification, and the number and kind of share capital issuable on such date, shall be proportionately
adjusted so that the holder of any Right exercised after such time shall be entitled to receive, upon payment of the Purchase Price then
in effect, the aggregate number and kind of shares of share capital which, if such Right had been exercised immediately prior to such
date and at a time when the Ordinary Shares transfer books of the Company were open, such holder would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, however,
that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the share
capital of the Company issuable upon exercise of one Right.

 

    9

     

    

 

If
an event occurs which would require an adjustment under both Section 11(a)(i) and Section 11(a)(ii), the adjustment provided for in this
Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii).

 

(ii)
Subject to Section 24 hereof, in the event any Person becomes an Acquiring Person, each holder of a Right other than any Acquiring Person
(or any Associate or Affiliate of such Acquiring Person) shall thereafter have a right to receive, upon exercise thereof at a price equal
to the then current Purchase Price multiplied by one (1) Ordinary Share in accordance with the terms of this Agreement. In the event
that any Person shall become an Acquiring Person and the Rights shall then be outstanding, the Company shall not take any action which
would eliminate or diminish the benefits intended to be afforded by the Rights.

 

From
and after the occurrence of such event, any Rights that are or were acquired or beneficially owned by any Acquiring Person (or any Associate
or Affiliate of such Acquiring Person) shall be void, and any holder of such Rights shall thereafter have no right to exercise such Rights
under any provision of this Agreement. Neither the Company nor the Rights Agent shall have liability to any holder of Right Certificates
or other Person as a result of the Company’s or the Rights Agent’s failure to make any determinations with respect to an
Acquiring Person or its Affiliates, Associates or transferees hereunder. No Right Certificate shall be issued pursuant to Section 3 hereof
that represents Rights beneficially owned by an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any
Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person
whose Rights would be void pursuant to the preceding sentence or any Associate or Affiliate thereof or to any nominee of such Acquiring
Person, Associate or Affiliate or with respect to any Ordinary Shares otherwise deemed to be Beneficially Owned by any of the foregoing;
and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the
preceding sentence shall be cancelled.

 

(iii)
In the event that there shall not be sufficient Ordinary Shares issued but not outstanding or authorized but unissued to permit the exercise
in full of the Rights in accordance with subparagraph (ii) above, the Company shall take all such action as may be necessary to authorize
additional Ordinary Shares for issuance upon exercise of the Rights.

 

(b)
No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in
the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(b) are not required
to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall
be made to the nearest cent or to the nearest one one-millionth of an Ordinary Share or one ten-thousandth of any other share or security
as the case may be. Notwithstanding the first sentence of this Section 11(b), any adjustment required by this Section 11 shall be made
no later than the earlier of (i) three years from the date of the transaction which requires such adjustment or (ii) the date of the
expiration of the right to exercise any Rights.

 

(c)
If, as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled
to receive any share capital of the Company other than Ordinary Shares, thereafter the number of such other shares so receivable upon
exercise of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to
the provisions with respect to the Ordinary Shares contained in Section 11(a) and (b) hereof, inclusive, and the provisions of Sections
7, 9, 10 and 13 hereof with respect to the Ordinary Shares shall apply on like terms to any such other shares.

 

(d)
All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right
to purchase, at the adjusted Purchase Price, the number Ordinary Share purchasable from time to time hereunder upon exercise of the Rights,
all subject to further adjustment as provided herein.

 

    10

     

    

 

(e)
The Company may elect, on or after the date of any adjustment of the Purchase Price, to adjust the number of Rights in substitution for
any adjustment in the one (1) Ordinary Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment
of the number of Rights shall be exercisable for the one (1) Ordinary Share for which a Right was exercisable immediately prior to such
adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated
to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase
Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement
of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount
of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if
the Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right Certificates
have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(e), the Company shall, as promptly as practicable,
cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to Section
14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company,
shall cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights
to which such holders shall be entitled after such adjustment. Right Certificates so to be distributed shall be issued, executed and
countersigned in the manner provided for herein, and shall be registered in the names of the holders of record of Right Certificates
on the record date specified in the public announcement.

 

(f)
Irrespective of any adjustment or change in the Purchase Price or in the number of Ordinary Shares issuable upon the exercise of the
Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of Ordinary
Shares which were expressed in the initial Right Certificates issued hereunder.

 

(g)
Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, of the Ordinary
Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid and nonassessable Ordinary Shares at such adjusted Purchase
Price.

 

(h)
In any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for
a specified event, the Company may elect to defer until the occurrence of such event the issuing to the holder of any Right exercised
after such record date of the Ordinary Shares and other share capital or securities of the Company, if any, issuable upon such exercise
over and above the Ordinary Shares and other shares capital or securities of the Company, if any, issuable upon such exercise on the
basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver
to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon
the occurrence of the event requiring such adjustment.

 

(i)
In the event that, at any time after the date of this Agreement and prior to the Issuance Date, the Company shall (i) declare or pay
any dividend on the Ordinary Shares payable in Ordinary Shares, or (ii) effect a subdivision, combination or consolidation of the Ordinary
Shares (by reclassification or otherwise than by payment of dividends in Ordinary Shares) into a greater or lesser number of Ordinary
Shares, then, in any such case, (A) the number of Ordinary Shares purchasable after such event upon proper exercise of each Right shall
be adjusted accordingly, and (B) each Ordinary Share outstanding immediately after such event shall have issued with respect to it that
number of Rights which each Ordinary Share outstanding immediately prior to such event had issued with respect to it. The adjustments
provided for in this Section 11(i) shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination
or consolidation is effected.

 

Section
12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11
or 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting
for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Ordinary Shares and the Securities and Exchange
Commission a copy of such certificate and (c) if such adjustment occurs at any time after the Issuance Date, mail a brief summary thereof
to each holder of a Right Certificate in accordance with Section 25 hereof.

 

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Section
13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. In the event, directly or indirectly, at any time
after a Person has become an Acquiring Person, (a) the Company shall effect a share exchange, consolidate with, or merge with and into,
any other Person, (b) any Person shall effect a share exchange, consolidate with the Company, or merge with and into the Company and
the Company shall be the continuing or surviving corporation of such share exchange, consolidation or merger and, in connection with
such transaction, all or part of the Ordinary Shares shall be changed into or exchanged for shares or other securities of any other Person
(or the Company) or cash or any other property, or (c) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries
shall sell or otherwise transfer), in one or more transactions, assets or earning power aggregating 50% or more of the assets or earning
power of the Company and its Subsidiaries (taken as a whole) to any other Person other than the Company or one or more of its wholly-owned
Subsidiaries, then, and in each such case, proper provision shall be made so that (i) each holder of a Right (except as otherwise provided
herein) shall thereafter have the right to receive, upon the exercise thereof at a price equal to $0.01 per share, in accordance with
the terms of this Agreement and in lieu of Ordinary Shares, one (1) times the number of securities of such other Person to which each
shareholder is entitled to for each of its Ordinary Shares of the Company (including the Company as successor thereto or as the surviving
corporation); (ii) the issuer of such securities shall thereafter be liable for, and shall assume, by virtue of such share exchange,
consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company”
shall thereafter be deemed to refer to such issuer; and (iv) such issuer shall take such steps (including, but not limited to, the reservation
of a sufficient number of its securities in accordance with Section 9 hereof) in connection with such consummation as may be necessary
to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to the securities thereafter
deliverable upon the exercise of the Rights. The Company shall not consummate any such share exchange, consolidation, merger, sale or
transfer unless, prior thereto, the Company and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement
so providing. The Company shall not enter into any transaction of the kind referred to in this Section 13 if at the time of such transaction
there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation
of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights. The provisions of
this Section 13 shall similarly apply to successive mergers, share exchanges or consolidations or sales or other transfers.

 

Section
14. Fractional Rights and Fractional Shares. (a) The Company shall not be required to issue fractions of Rights or to distribute
Right Certificates which evidence fractional Rights. If the Company elects not to issue such fractional Rights, the Company shall pay,
in lieu of such fractional Rights, to the registered holders of the Right Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of
this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately
prior to the date on which such fractional Rights would have been otherwise issuable. The closing price for any day shall be the last
sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way,
in either case, as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on Nasdaq or, if the Rights are not listed or admitted to trading on Nasdaq, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national securities exchange on which the Rights are listed or admitted
to trading or, if the Rights are not listed or admitted to trading on any national securities exchange, the last quoted price or, if
not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq or such other system
then in use or, if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Rights selected by the Board of Directors of the Company. If on any
such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith
by the Board of Directors of the Company shall be used.

 

(b)
The Company shall not be required to issue fractions of Ordinary Shares upon exercise of the Rights or to distribute certificates or
make any entries in the book-entry account system of the transfer agent that evidence fractional Ordinary Shares. If the Company elects
not to issue such fractional Ordinary Shares, the Company shall pay, in lieu of such fractional Ordinary Shares, to the registered holders
of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current
market value of one Ordinary Share. For the purposes of this Section 14(b), the current market value of an Ordinary Share shall be the
closing price of an Ordinary Share for the Trading Day immediately prior to the date of such exercise.

 

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(c)
The holder of a Right, by the acceptance of the Right, expressly waives such holder’s right to receive any fractional Rights or
any fractional shares upon exercise of a Right (except as provided above).

 

Section
15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action vested in the Rights
Agent pursuant to Section 18 hereof, are vested in the respective registered holders of the Right Certificates (and, prior to the Issuance
Date, the registered holders of the Ordinary Shares); and any registered holder of any Right Certificate (or, prior to the Issuance Date,
of the Ordinary Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Issuance
Date, of the Ordinary Shares), may, in such holder’s own behalf and for such holder’s own benefit, enforce, and may institute
and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right
to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right Certificate and in this Agreement. Without
limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights
would not have an adequate remedy at law for any breach of this Agreement, and will be entitled to specific performance of the obligations
under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement.

 

Section
16. Agreement of Right Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and
the Rights Agent and with every other holder of a Right that:

 

(a)
prior to the Issuance Date, the Rights will be evidenced by the balances indicated in the book-entry account system of the transfer agent
for the Ordinary Shares registered in the names of the holders of the Ordinary Shares (which Ordinary Shares shall also be deemed to
represent certificates for Rights) or, in the case of certificated shares, the certificates for the Ordinary Shares registered in the
names of the holders of the Ordinary Shares (which certificates for shares of Ordinary Shares shall also constitute certificates for
Rights) and each Right will be transferable only in connection with the transfer of Ordinary Shares;

 

(b)
after the Issuance Date, the Right Certificates are transferable only on the registry books of the Rights Agent if surrendered at the
principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer;

 

(c)
the Company and the Rights Agent may deem and treat the person in whose name the Right Certificate (or, prior to the Issuance Date, the
associated balance indicated in the book-entry account system of the transfer agent for the Ordinary Shares or, in the case of certificated
shares, the associated Ordinary Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding
any notations of ownership or writing on the Right Certificate or the associated balance indicated in the book-entry account system of
the transfer agent for the Ordinary Shares or, in the case of certificated shares, the associated Ordinary Shares certificate made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary; and

 

(d)
notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any
holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any
preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental,
regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, the Company must use
its reasonable best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible.

 

Section
17. Right Certificate Holder Not Deemed a Shareholder. No holder, as such, of any Right Certificate shall be entitled to
vote, receive dividends or be deemed for any purpose the holder of the Ordinary Shares or any other securities of the Company which may
at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate
be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a shareholder of the Company or any right
to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent
to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in Section 25 hereof),
or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have
been exercised in accordance with the provisions hereof.

 

    13

     

    

 

Section
18. Concerning the Rights Agent. The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered
by it hereunder, and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense incurred without gross
negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection
with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability
in the premises.

 

The
Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Right Certificate or certificate for the Ordinary Shares or Ordinary
Shares or any balance indicated in the book-entry account system of the transfer agent, or, for other securities of the Company, instrument
of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or
other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the
proper person or persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof.

 

Section
19. Merger or Consolidation or Change of Name of Rights Agent. Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may effect a share exchange, be consolidated, or otherwise combined, or any Person resulting
from any merger, share exchange, consolidation or combination to which the Rights Agent or any successor Rights Agent shall be a party,
or any Person succeeding to the stock transfer or corporate trust powers of the Rights Agent or any successor Rights Agent, shall be
the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of
any of the parties hereto; provided that such Person would be eligible for appointment as a successor Rights Agent under
the provisions of Section 21. The purchase of all or substantially all of the Rights Agent’s assets employed in the performance
of transfer agent activities shall be deemed a merger or consolidation for purposes of this Section 19. In case at the time such successor
Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall have been countersigned but not
delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates
so countersigned; and, in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent
may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent;
and, in all such cases, such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

 

In
case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned
but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned;
and, in case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such Right
Certificates either in its prior name or in its changed name; and, in all such cases, such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

 

Section
20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following
terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:

 

(a)
The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance
with such opinion.

 

(b)
Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed
by any one of the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer or the Chief Legal Officer of the Company
and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered
in good faith by it under the provisions of this Agreement in reliance upon such certificate.

 

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(c)
The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or willful
misconduct.

 

(d)
The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in
the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals
are and shall be deemed to have been made by the Company only.

 

(e)
The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement
or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming
void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including any adjustment required under the
provisions of Sections 11 or 13 or the manner, method or amount thereof) provided for in Section 3, 11, 13, 23 or 24 hereof, or the ascertaining
of the existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by
Right Certificates after actual notice that such change or adjustment is required); nor shall it by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any Ordinary Shares to be issued pursuant to this Agreement
or any Right Certificate or as to whether any Ordinary Shares will, when issued, be validly authorized and issued, fully paid and nonassessable.

 

(f)
The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered
all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or
performing by the Rights Agent of the provisions of this Agreement.

 

(g)
The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
any one of the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer or the Chief Legal Officer of the Company,
and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken
or suffered by it in good faith in accordance with instructions of any such officer or for any delay in acting while waiting for those
instructions.

 

(h)
The Rights Agent and any shareholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or
other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract
with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Agreement. Nothing
herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity.

 

(i)
The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself
or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or
misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct,
provided that reasonable care was exercised in the selection and continued employment thereof.

 

Section
21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under
this Agreement upon 30 days’ notice in writing mailed to the Company and to each transfer agent of the Ordinary Shares or Ordinary
Shares by registered or certified mail, and to the holders of the Right Certificates by first-class mail. In the event the transfer agency
relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically
and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible
for sending any required notice. The Company may remove the Rights Agent or any successor Rights Agent (with or without cause) upon 30
days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of
the Ordinary Shares or Ordinary Shares by registered or certified mail, and to the holders of the Right Certificates by first-class mail.
If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to
the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder
of a Right Certificate (which holder shall, with such notice, submit such holder’s Right Certificate for inspection by the Company),
then the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation or other entity organized
and doing business under the laws of the United States or of the State of Delaware (or of any other state of the United States so long
as such corporation or other entity is authorized to do business as a banking institution such other state), in good standing, which
is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal
or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus, along with its Affiliates,
of at least $50 million. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities
as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance,
act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof
in writing with the predecessor Rights Agent and each transfer agent of the Ordinary Shares or Ordinary Shares, and mail a notice thereof
in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however,
or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment
of the successor Rights Agent, as the case may be.

 

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Section
22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board of Directors
of the Company to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities
or property purchasable under the Right Certificates made in accordance with the provisions of this Agreement.

 

Section
23. Redemption. (a) The Board of Directors of the Company may, at its option, at any time prior to such time that any Person
becomes an Acquiring Person, redeem all but not less than all the then outstanding Rights at no cost and without the delivery of any
consideration in exchange for such redemption. The redemption of the Rights by the Board of Directors of the Company may be made effective
at such time, on such basis and with such conditions as the Board of Directors of the Company, in its sole discretion, may establish.

 

(b)
Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to paragraph (a)
of this Section 23, and without any further action and without any notice, the right to exercise the Rights will terminate. The Company
shall promptly give public notice of any such redemption; provided, however, that the failure to give, or any
defect in, any such notice shall not affect the validity of such redemption. Within 10 days after such action of the Board of Directors
of the Company ordering the redemption of the Rights, the Company shall mail a notice of redemption to all the holders of the then outstanding
Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Issuance Date, on the registry
books of the transfer agent for the Ordinary Shares. Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase
for value any Rights at any time in any manner other than that specifically set forth in this Section 23 or in Section 24 hereof, and
other than in connection with the purchase of Ordinary Shares prior to the Issuance Date.

 

Section
24. Exchange. (a) The Board of Directors of the Company may, at its option, at any time after any Person becomes an Acquiring
Person, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant
to the provisions of Section 11(a)(ii) hereof) for Ordinary Shares at an exchange ratio of one (1) Ordinary Share per Right, appropriately
adjusted to reflect any adjustment in the number of Rights (such exchange ratio being hereinafter referred to as the “Exchange
Ratio”). Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange
at any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit or stock ownership plan of
the Company or any such Subsidiary, or any entity holding Ordinary Shares for or pursuant to the terms of any such plan), together with
all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Ordinary Shares then outstanding. The
exchange of Rights by the Board of Directors of the Company may be made effective at such time, on such basis and with such conditions
as the Board of Directors of the Company in its sole discretion may establish. Without limiting the foregoing, in connection with effecting
an exchange pursuant to this Section 24, the Board of Directors of the Company may direct the Company to enter into a trust agreement
in such form and with such terms as the Board of Directors of the Company shall then approve and issue to the trust created by such trust
agreement all or some (as designated by the Board of Directors of the Company) of the securities to be exchanged for the Rights pursuant
to this Section 24, and all Persons entitled to receive such securities pursuant to the exchange shall be entitled to receive all or
some (as designated by the Board of Directors of the Company) of such securities (and any dividends or distributions made thereon after
the date on which such securities are deposited in the trust) from such trust and upon compliance with the relevant terms of the trust
agreement.

 

    16

     

    

 

(b)
Immediately upon the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to paragraph (a) of
this Section 24 (or at such later times as the Board of Directors of the Company may establish for the effectiveness of such exchange)
and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter
of a holder of such Rights shall be to receive that number of Ordinary Shares equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; provided, however,
that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company promptly shall mail
a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of
the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives
the notice. Each such notice of exchange will state the method by which the exchange of the Ordinary Shares for Rights will be effected,
and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based
on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by each
holder of Rights.

 

(c)
In the event that there shall not be sufficient Ordinary Shares issued but not outstanding or authorized but unissued to permit any exchange
of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize
additional Ordinary Shares for issuance upon exchange of the Rights.

 

(d)
The Company shall not be required to issue fractions of Ordinary Shares or to distribute certificates or make any entries in the book-entry
account system of the transfer agent which evidence fractional Ordinary Shares. In lieu of such fractional Ordinary Shares, the Company
shall pay to the registered holders of the Right Certificates with regard to which such fractional Ordinary Shares would otherwise be
issuable an amount in cash equal to the same fraction of the current market value of a whole Ordinary Share. For the purposes of this
paragraph (d), the current market value of a whole Ordinary Share shall be the closing price of an Ordinary Share for the Trading Day
immediately prior to the date of exchange pursuant to this Section 24.

 

Section
25. Special Tender Offer. In connection with a special tender offer in accordance with the provisions of the Companies Law, the
Board shall consider the requirements of Section 330 of the Israeli Companies Law.

 

Section
26. Notice of Certain Events. (a) In case the Company shall, at any time after the Issuance Date, propose (i) to pay any
dividend payable in shares of any class to the holders of the Ordinary Shares or to make any other distribution to the holders of the
Ordinary Shares (other than a regular quarterly cash dividend), (ii) to offer to the holders of the Ordinary Shares rights or warrants
to subscribe for or to purchase any additional Ordinary Shares or shares of any class or any other securities, rights or options, (iii)
to effect any reclassification of the Ordinary Shares (other than a reclassification involving only the subdivision of outstanding Ordinary
Shares), (iv) to effect any merger, share exchange, consolidation or other combination into or with, or to effect any sale or other transfer
(or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the
assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the liquidation,
dissolution or winding up of the Company, or (vi) to declare or pay any dividend on the Ordinary Shares payable in Ordinary Shares or
to effect a subdivision, combination or consolidation of the Ordinary Shares (by reclassification or otherwise than by payment of dividends
in Ordinary Shares), then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section
26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such share dividend, or distribution
of rights or warrants, or the date on which such reclassification, consolidation, share exchange, merger, sale, transfer, liquidation,
dissolution, or winding up is to take place and the date of participation therein by the holders of the Ordinary Shares and/or Ordinary
Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above
at least 10 days prior to the record date for determining holders of the Ordinary Shares for purposes of such action, and, in the case
of any such other action, at least 10 days prior to the date of the taking of such proposed action or the date of participation therein
by the holders of the Ordinary Shares, whichever shall be the earlier.

 

    17

     

    

 

(b)
In case the event set forth in Section 11(a)(ii) hereof shall occur, then the Company shall, as soon as practicable thereafter, give
to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall
describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof.

 

Section
27. Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of
any Right Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed
(until another address is filed in writing with the Rights Agent) or in the form of an email transmission (with receipt confirmed) as
follows:

 

Stratasys
Ltd.

1 Holtzman Street

Science
Park

P.O.
Box 2496

Rehovot,
76124, Israel

Attention:
Chief Financial Officer

 

Subject
to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the
holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by overnight delivery service or
first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows:

 

Continental
Stock Transfer & Trust Company

1
State Street Plaza, 30th Floor

New
York, NY 10004

Attention: Compliance Department

 

Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate
shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed to such holder
at the address of such holder as shown on the registry books of the Company or, if applicable, the transfer agent or registrar for the
Ordinary Shares.

 

Section
28. Supplements and Amendments. The Company may from time to time, and the Rights Agent shall, if directed by the Company,
supplement or amend this Agreement without the approval of any holders of Right Certificates in order to cure any ambiguity, to correct
or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, or to make any
other provisions with respect to the Rights which the Company may deem necessary or desirable, any such supplement or amendment to be
evidenced by a writing signed by the Company and the Rights Agent; provided, however, that, from and after such
time as any Person becomes an Acquiring Person, this Agreement shall not be amended in any manner which would adversely affect the interests
of the holders of Rights (other than an Acquiring Person or an Affiliate or Associate thereof). For the avoidance of doubt, the Company
shall be entitled to adopt and implement such procedures and arrangements (including with third parties) as it may deem necessary or
desirable to facilitate the exercise, exchange, trading, issuance or distribution of the Rights as contemplated hereby and to ensure
that an Acquiring Person does not obtain the benefits thereof, and amendments in respect of the foregoing shall not be deemed to adversely
affect the interests of the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Company that states
that the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement
or amendment.

 

Section
29. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent
shall bind and inure to the benefit of their respective successors and assigns hereunder.

 

Section
30. Determinations and Actions by the Board of Directors, etc. For all purposes of this Agreement, any calculation of the
number of Ordinary Shares outstanding at any particular time, including for purposes of determining the particular percentage of such
outstanding Ordinary Shares of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i)
of the General Rules and Regulations under the Exchange Act. The Board of Directors of the Company shall have the exclusive power, authority
and discretion to administer this Agreement and to exercise all rights and powers specifically granted to such Board of Directors or
to the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right
and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary or advisable for the administration
of this Agreement (including, but not limited to, a determination to redeem or not redeem the Rights or to amend the Agreement). All
such actions, calculations, interpretations and determinations (including all omissions with respect to the foregoing) which are done
or made by the Board of Directors of the Company or the Company in good faith shall (x) be final, conclusive and binding on the Company,
the Rights Agent, the holders of the Right Certificates and all other parties, and (y) not subject the Board of Directors of the Company
to any liability to the holders of the Rights and Right Certificates.

 

    18

     

    

 

Section
31. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company,
the Rights Agent and the registered holders of the Right Certificates (and, prior to the Issuance Date, the Ordinary Shares) any legal
or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company,
the Rights Agent and the registered holders of the Right Certificates (and, prior to the Issuance Date, the Ordinary Shares).

 

Section
32. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

Section
33. Governing Law. This Agreement, each Right and each Right Certificate issued hereunder shall be deemed to be a contract
made under the laws of the State of Israel and for all purposes shall be governed by and construed in accordance with the laws of such
state applicable to contracts to be made and performed entirely within such state, other than with respect to the duties and rights of
the Rights Agent under Sections 18-21 hereunder which shall be governed by and construed in accordance with the laws of the State of
New York.

 

Section
34. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

Section
35. Descriptive Headings; Interpretation. Descriptive headings of the several Sections of this Agreement are inserted for
convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.” Each
reference in this Agreement to a period of time following or after a specified date or event shall be calculated without including such
specified date or the day on which such specified event occurs.

 

Section
36. Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any
delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist
acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power
failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest. The Rights
Agent shall provide the Company prompt notice as soon as practicable in the event that any such delay or failure in performance occurs
and keep the Company apprised of developments and mitigation effort with respect thereto.

 

    19

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and attested, all as of the day and year first above
written.

 

	STRATASYS LTD.	 	 	 
	 	 	 	 	 
	By:	/s/ Yoav Zeif	 	/s/ Eitan Zamir	 
	Name:	Yoav Zeif	 	Eitan Zamir	 
	Title: 	Chief Executive Officer	 	Chief Financial Officer	 

 

	CONTINENTAL STOCK TRANSFER

 & TRUST COMPANY	 
	 	 	 
	By:	 /s/ Margaret B. Lloyd	 
	Name:	Margaret B. Lloyd	 
	Title:	Vice President	 

 

    20

     

    

 

Exhibit
A

 

Form
of Right Certificate

 

	Certificate
    No. R-	______
    Rights

 

NOT
EXERCISABLE AFTER JULY 24, 2023 OR SUCH LATER DATE AS DETERMINED BY THE COMPANY’S BOARD OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
THE RIGHTS ARE SUBJECT TO REDEMPTION AND TO EXCHANGE ON THE TERMS SET FORTH IN THE AGREEMENT.

 

Right
Certificate

 

STRATASYS
LTD.

 

This
certifies that ________, or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles
the owner thereof, subject to the terms, provisions and conditions of the Agreement, dated as of July 25, 2022 (the “Agreement”),
between Stratasys Ltd., a company formed under the laws of the State of Israel (the “Company”), and CONTINENTAL STOCK TRANSFER
& TRUST COMPANY (the “Rights Agent”), to purchase from the Company at any time after the Issuance Date (as such term
is defined in the Agreement) and prior to 5:00 P.M., New York, New York time, on July 24, 2023 at the principal office of the Rights
Agent, or at the office of its successor as Rights Agent, one (1) fully paid non-assessable Ordinary Share, par value NIS 0.01 per share,
of the Company (the “Ordinary Shares”), at a purchase price of $0.01 per one Ordinary Share (the “Purchase Price”),
upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed. The number of Rights evidenced
by this Right Certificate (and the number of Ordinary Shares which may be purchased upon exercise hereof) set forth above, and the Purchase
Price set forth above, are the number and Purchase Price as of August 4, 2022, based on the Ordinary Shares as constituted at such date.
As provided in the Agreement, the Purchase Price and the one (1) Ordinary Share which may be purchased upon the exercise of the Rights
evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events.

 

This
Right Certificate is subject to all of the terms, provisions and conditions of the Agreement, which terms, provisions and conditions
are hereby incorporated herein by reference and made a part hereof and to which Agreement reference is hereby made for a full description
of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of
the Right Certificates. Copies of the Agreement are on file at the principal executive offices of the Company and the offices of the
Rights Agent.

 

This
Right Certificate, with or without other Right Certificates, upon surrender at the principal office of the Rights Agent, may be exchanged
for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of Ordinary Shares as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled
such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender
hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised.

 

Subject
to the provisions of the Agreement, the Rights evidenced by this Right Certificate (i) may be redeemed by the Company in accordance with
the terms of the Agreement or (ii) may be exchanged in whole or in part for Ordinary Shares.

 

No
fractional Ordinary Shares will be issued upon the exercise of any Right or Rights evidenced hereby, but, in lieu thereof, a cash payment
will be made, as provided in the Agreement.

 

No
holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Ordinary
Shares or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained
in the Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a shareholder of the Company
or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided
in the Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate
shall have been exercised as provided in the Agreement.

 

This
Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

 

WITNESS
the facsimile signature of the proper officers of the Company and its corporate seal. Dated as of ______, _____.

 

	STRATASYS LTD.	 
	 	 	 
	By:	             	 
	Name: 	 	 
	Title:	 	 

 

     

     

    

 

Form
of Reverse Side of Right Certificate

 

FORM
OF ASSIGNMENT

 

(To
be executed by the registered holder if such

holder desires to transfer the Right Certificate.)

 

FOR
VALUE RECEIVED _________________________________ hereby sells, assigns and transfers unto __________________________________________________________________________________________

 

(Please
print name and address of transferee)

 

this
Right Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint _________
Attorney, to transfer the within Right Certificate on the books of the within-named Company, with full power of substitution.

 

Dated:
___________________

 

	 	 
	 	Signature

 

Signature
Guaranteed:

 

Signatures
must be guaranteed by an eligible guarantor institution which is a participant in the Securities Transfer Agents Medallion Program (“STAMP”),
the Nasdaq Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program (“SEMP”), pursuant to
Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended. Guarantees by a notary public are not acceptable.

 

The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or
an Affiliate or Associate thereof (as defined in the Agreement).

 

	 	 
	 	Signature

 

    A-2

     

    

 

 

Form
of Reverse Side of Right Certificate – continued

 

FORM
OF ELECTION TO PURCHASE

 

(To
be executed if holder desires to exercise

Rights represented by the Right Certificate.)

 

To:
STRATASYS LTD.

 

The
undersigned hereby irrevocably elects to exercise ______ Rights represented by this Right Certificate to purchase the Ordinary Shares
issuable upon the exercise of such Rights and requests that certificates for such Ordinary Shares be issued in the name of:

 

Please
insert social security

or other identifying number

 

(Please
print name and address)

 

If
such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining
of such Rights shall be registered in the name of and delivered to:

 

Please
insert social security

or other identifying number

 

(Please
print name and address)

 

Dated:
_______________________

 

	 	 
	 	Signature

 

Signature
Guaranteed:

 

Signatures
must be guaranteed by an eligible guarantor institution which is a participant in the Securities Transfer Agents Medallion Program (“STAMP”),
the Nasdaq Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program (“SEMP”), pursuant to
Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended. Guarantees by a notary public are not acceptable.

 

The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or
an Affiliate or Associate thereof (as defined in the Agreement).

 

	 	 
	 	Signature

 

    A-3

     

    

 

NOTICE

 

The
signature in the Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the
face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever.

 

In
the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not
completed, the Company and the Rights Agent will deem the beneficial owner of the Rights evidenced by this Right Certificate to be an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Agreement) and such Assignment or Election to Purchase will
not be honored.

 

    A-4

     

    

 

Exhibit
B

 

SUMMARY
OF RIGHTS TO PURCHASE

ORDINARY SHARES

 

Introduction

 

On
July 24, 2022, the Board of Directors of our Company, Stratasys Ltd., a company formed under the laws of the State of Israel, declared
the issuance of one special purchase right (a “Right”) for each outstanding ordinary share, par value NIS 0.01 per share
(the “Ordinary Shares”). The Rights will be issued on August 4, 2022 to the shareholders of record on August 4, 2022.

 

Our
Board has adopted this Rights Agreement to protect shareholders from coercive or otherwise unfair takeover tactics. In general terms,
it works by imposing a significant penalty upon any person or group that acquires 15% or more of our outstanding Ordinary Shares without
the approval of our Board. If a Person’s beneficial ownership of the then-outstanding Ordinary Shares as of the time of the public
announcement of the rights plan is at or above 15% (including through entry into certain derivative positions), that person or group’s
then-existing ownership percentage would be grandfathered, but the Rights would become exercisable if at any time after such announcement,
the shareholder increases its ownership percentage to an amount equal to or greater than the greater of (1) 15% and (2) the sum of (I)
the lowest number of Ordinary Shares beneficially owned by such Person as a percentage of the outstanding Ordinary Shares as of any time
from and after the time of the public announcement of the declaration of the Rights and (II) 0.001%. The Rights Agreement should not
interfere with any merger or other business combination approved by our Board.

 

For
those interested in the specific terms of the Rights Agreement as made between our Company and Continental Stock Transfer & Trust
Company, as the Rights Agent, on July 25, 2022, we provide the following summary description. Please note, however, that this description
is only a summary, and is not complete, and should be read together with the entire Rights Agreement, which has been furnished to the
Securities and Exchange Commission as an exhibit to the report on Form 6-K dated July 25, 2022. A copy of the agreement is available
free of charge from our Company.

 

The
Rights. Our Board authorized the issuance of a Right with respect to each outstanding Ordinary Share on August 4, 2022. The Rights
will initially trade with, and will be inseparable from, the corresponding Ordinary Share. The Rights are evidenced only by the balances
indicated in the book-entry account system of the transfer agent for our Ordinary Shares or, in the case of certificated shares, the
certificates that represent such Ordinary Shares. New Rights will accompany any new Ordinary Shares we issue after August 4, 2022 until
the earliest of the Issuance Date described below, the Redemption Date and the Final Expiration Date.

 

Exercise
Price. Each Right will allow its holder to purchase from our Company one (1) Ordinary Share, at a purchase price of $0.01 per
one Ordinary Share, once the Rights become exercisable. Prior to exercise, the Right does not give its holder any dividend, voting, or
liquidation rights.

 

Exercisability. The
Rights will not be exercisable until the earlier of:

 

		●	The Close of Business on the tenth
day after the public announcement or public disclosure that a person or group has become an “Acquiring Person” by obtaining
beneficial ownership of 15% or more of the Company’s outstanding Ordinary Shares, except if such person or group has become an
“Acquiring Person” pursuant to an offer approved by the majority of the Board of Directors; or

 

		●	10 business days (or a later date
determined by the Board before any person or group becomes an Acquiring Person) after a person or group begins a tender or exchange offer
(except if such person or group has become an “Acquiring Person” pursuant to an offer approved by the majority of the Board
of Directors) which, if completed, would result in that person or group becoming an Acquiring Person.

 

If
a Person’s beneficial ownership of the then-outstanding Ordinary Shares as of the time of the public announcement of the rights
plan is at or above 15% (including through entry into certain derivative positions), that person or group’s then-existing ownership
percentage would be grandfathered, but the Rights would become exercisable if at any time after such announcement, the shareholder increases
its ownership percentage to an amount equal to or greater than the greater of (1) 15% and (2) the sum of (I) the lowest number of Ordinary
Shares beneficially owned by such Person as a percentage of the outstanding Ordinary Shares as of any time from and after the time of
the public announcement of the declaration of the Rights and (II) 0.001%.

 

     

     

    

 

We
refer to the date when the Rights become exercisable as the “Issuance Date.” Until that date, the balances in the book-entry
accounting system of the transfer agent for our Ordinary Shares or, in the case of certificated shares, Ordinary Shares certificates
will also evidence the Rights, and any transfer of Ordinary Shares or, in the case of certificated shares, certificates for Ordinary
Shares will constitute a transfer of Rights. After that date, the Rights will separate from the Ordinary Shares and be evidenced solely
by Rights certificates that we will mail to all eligible holders of Ordinary Shares. Any Rights held by an Acquiring Person or any Associate
or Affiliate thereof are void and may not be exercised.

 

Consequences
of a Person or Group Becoming an Acquiring Person.

 

		●	Flip In. If a person or group
becomes an Acquiring Person, all holders of Rights except the Acquiring Person or any Associate or Affiliate thereof may, for a purchase
price of $0.01 per one Ordinary Share, purchase one (1) Ordinary Share.

 

		●	Flip Over. If our Company
is later acquired in a merger or similar transaction after the Issuance Date, all holders of Rights except the Acquiring Person or any
Associate or Affiliate thereof may, for a purchase price of $0.01 per share, purchase one (1) times the number of shares of the acquiring
corporation, that each shareholder of the Company is entitled for each Ordinary Shares.

 

Expiration. The
Rights will expire on July 24, 2023.

 

Redemption. Our
Board may redeem the Rights for no consideration at any time prior to such time that any person or group becomes an Acquiring Person.
If our Board redeems any Rights, it must redeem all of the Rights.

 

Exchange. After
a person or group becomes an Acquiring Person, but before an Acquiring Person owns 50% or more of our outstanding Ordinary Shares, our
Board may extinguish the Rights by exchanging one (1) Ordinary Share or an equivalent security for each Right, other than Rights held
by the Acquiring Person.

 

Anti-Dilution
Provisions. Our Board may adjust the purchase price of the Ordinary Shares, the number of Ordinary Shares issuable and the number
of outstanding Rights to prevent dilution that may occur from a share dividend, a share split, a reclassification of the Ordinary Shares.
No adjustments to the exercise price of less than 1% will be made.

 

Amendments. The
terms of the Rights Agreement may be amended by our Board without the consent of the holders of the Rights. After a person or group becomes
an Acquiring Person, our Board may not amend the Rights Agreement in a way that adversely affects holders of the Rights.

 

 

B-2

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