Document:

Exhibit 4.17

 

Unofficial translation into English.

 

This Letter
of Exemption and Indemnification is an unofficial translation of a Letter of Exemption and 

Indemnification in Hebrew adopted by
the Company.

 

Redhill
Biopharma Ltd.

 

Public
Co. Reg. No. 51-430400-5

 

21 Ha’arba’a
Street, Tel Aviv, Israel 

 

Telephone:
972-3-5413131; Fax:  972-3-5413144

 

________ _________, 201_

 

	To Mr.
                                                  / Ms.	

 

 

Dear Sir or Madam;

 

Letter
of Exemption and Indemnification

 

		Whereas	in accordance with its articles
                                                                    of association, the Company may exempt, in advance, an officer
                                                                    therein from all or any of his liability for damage due to
                                                                    a breach of the duty of care vis-à-vis the Company
                                                                    and to indemnify him in advance and/or retroactively, for
                                                                    any liability or expense as provided in the articles of association,
                                                                    imposed on him or incurred by him, due to any act performed
                                                                    by him by virtue of his being an officer in the Company; and

 

		Whereas	on January 16, 2011, the Company's
                                                                    Board Of Directors, after having obtained the approval of
                                                                    the Company's audit committee to that effect, resolved to
                                                                    approve the Company's undertaking to exempt and indemnify
                                                                    officers in the Company, in accordance with the Companies
                                                                    Law, 5759 - 1999, the Company's Articles Of Association and
                                                                    the terms of exemption and indemnification set forth in this
                                                                    Letter; and

 

		Whereas	on January 27, 2011, the Company's
                                                                    general meeting also approved the said resolution of the board
                                                                    of directors in connection with directors in the Company;
                                                                    and

 

		Whereas	on February 15, 2012, the
                                                                    Company's general meeting approved the amendment of the Letter
                                                                    of Exemption and Indemnification, please be advised as follows:

 

    	 

    	 

    

 

Chapter
One: Interpretation

 

		1.	Definitions
	 	 	 
	 	 	In this Letter of Exemption and Indemnification, each of the terms
                              below will have the meaning set out opposite it, unless expressly stated otherwise.

	

 

	 	“Means of control" 	-	As defined in the Companies Law;
	 	 	 	 
	 	"Financial liability in lieu of criminal proceedings"	-	Financial liability imposed by law in lieu of criminal proceedings, including an administrative penalty under the Administrative Offences Law, 5746 – 1985, penalty for an offence defined as a penalty offence under the provisions of the Criminal Procedure Law, financial sanction or forfeit;
	 	 	 	 
	 	“Companies Law” 	-	The Companies Law, 5759 -1999;
	 	 	 	 
	 	The “Securities Law”	-	The Securities Law, 5728 – 1968;
	 	 	 	 
	 	The "Criminal Procedure Law"	-	The Criminal Procedure Law [Combined Version], 5742 – 1982;
	 	 	 	 
	 	"Administrative Proceeding"	-	A proceeding pursuant to Chapter H3 (Imposing Monetary Sanction by the ISA), H4 (Imposing Administrative Enforcement Measures by the Administrative Enforcement Committee) and/or I1 (Conditioned Arrangement for Avoidance of Taking Action of for Stopping Action) of the Securities Law, as amended from time to time  
	 	 	 	 
	 	"Distribution"	-	As defined in the Companies Law;
	 	 	 	 
	 	“This Letter”	-	This Letter of Exemption and Indemnification, including the addendum hereto, constituting an inseparable part hereof;
	 	 	 	 
	 	"Termination of proceeding without the filing of an indictment in a case in which a criminal investigation was instituted"	-	Closing the case pursuant to Section 62 of the Criminal Procedure Law, or a stay of proceedings by the Attorney General pursuant to Section 231 of the Criminal Procedure Law;
	 	 	 	 
	 	"Act" or "Act in the capacity of officer" 	-	A legal act, through any act or omission, of an officer in the capacity of an officer in the Company and/or as an officer and/or employee and/or observer at meetings of competent organs of a corporation in which the Company holds, directly or indirectly, the means of control ("related corporation"), including such act which took place prior to the entry into force of this Letter of Exemption and Indemnification; 
	 	 	 	 
	 	"Third Party"	-	Any person who is not the Company and/or one of the shareholders of the Company and/or anyone acting on their behalf.

 

Confidential

 

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		2.	Interpretation

 

		2.1	The Preamble to this Letter of Exemption and Indemnification constitutes an inseparable part hereof.

 

		2.2	The section headings in this Letter of Exemption and Indemnification are for convenience only and
shall not be used for the purpose of the interpretation hereof.

 

		2.3	Words and terms defined in the singular will also include the plural and vice versa; words in the
masculine gender will also include the feminine gender and vice versa.

 

		2.4	To the extent not expressly defined in this Letter, the terms herein will be interpreted in accordance
with the Companies Law and, where there is no definition in the Companies Law – in accordance with the Securities Law.

 

		2.5	The Company’s undertakings pursuant to this Letter shall be interpreted broadly, in a manner
intended to fulfill them, to the maximum extent permitted under law, for the purpose for which they were designed

 

		2.6	In the event of a conflict between any provision in this Letter and a provision of the law that
cannot be contracted out of, and which may not be revised or supplemented, such provision of the law shall prevail, but same shall
not prejudice or derogate from the force of the other provisions in this Letter. Furthermore, should it be determined that any
provision in this Letter is unenforceable and/or lacks legal validity on any ground whatsoever, same shall not prejudice or derogate
from the force of the other provisions in this Letter.

 

Chapter Two: Exemption

 

		3.	Exemption in Advance

 

Subject to
the provisions of any law, the Company hereby exempts you in advance from any liability for any damage incurred by it, either directly
or indirectly, due to the breach of your duty of care vis-à-vis the Company, by your acts in your capacity as an
officer.

 

Without limitation
to the generality of the foregoing, it is hereby clarified that so long as same is not permitted under law, the Company does not
exempt you in advance from your liability to the Company for a breach of the duty of care upon Distribution, to the extent applicable
to you, if any.

 

		4.	Exemption in Advance and Indemnification Have No Bearing on Each Other

 

Nothing in
the Company's undertaking to exempt you in advance (as set forth in section 3 above) will derogate from the Company's undertaking
to indemnify you in accordance with this Letter.

Confidential  

 

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		5.	Retroactive Exemption
	 	 	 

To the extent
permitted by any law, the Company exempts you from any liability for any damage incurred by it, either directly or indirectly,
due to the breach of your duty of care vis-à-vis the Company, by your acts in your capacity as an officer prior
to the entry into force of this Letter of Exemption and Indemnification.

 

Chapter Three: Indemnification 

 

		6.	Indemnification in Advance –
                                                            General

 

		6.1	Subject to the provisions of
                                                                 any law, the Company hereby undertakes to indemnify you in advance
                                                                 for any liability or expense as set forth in section 7 below,
                                                                 imposed on you or incurred by you in connection with acts performed
                                                                 by you in the capacity of an officer in the Company, to the extent
                                                                 that the liability or expense has not been actually paid by virtue
                                                                 of an insurance policy or by virtue of indemnification on behalf
                                                                 of a third party, provided that the maximum indemnity amount
                                                                 will not exceed the amount set forth in subsection 8.1 below.

 

		6.2	Subject to the provisions of
                                                                 subsection 8.3 of this Letter below, it is hereby clarified that
                                                                 nothing in the Company's undertaking to indemnify you in advance
                                                                 as set forth in subsection 6.1 of this Letter above, shall derogate
                                                                 from your right to receive, directly or via the Company, payments
                                                                 by virtue of an insurance policy or by virtue of indemnity on
                                                                 behalf of a third party, to the extent that you are entitled
                                                                 to such payments for any liability or expense as set forth in
                                                                 section 7 of this Letter below.

 

			The Company's undertaking to indemnify
                                                              you in advance as set forth in subsection 6.1 above, is conditioned
                                                              on the fact that you have adopted all reasonable measures to receive
                                                              payments by virtue of an insurance policy or by virtue of an indemnity
                                                              undertaking and insurance by a related corporation in connection
                                                              with your capacity as an officer in such corporation, if and to
                                                              the extent that you are entitled to such payments, and they can
                                                              be claimed under the circumstances of the case.

 

			To remove any
                                                                                doubts, it should be clarified that the Company's
                                                                                undertaking to indemnify you will only apply with
                                                                                respect to the balance of your liabilities following
                                                                                the full utilization of your rights for insurance
                                                                                and indemnification in a related corporation in
                                                                                connection with your office in a related corporation
                                                                                and following the utilization in full of your
                                                                                rights for officers' insurance of the Company.

 

		6.3	In the event that you have incurred
                                                                 excess insurance to receive payments pursuant to an insurance
                                                                 policy, the Company's undertaking to indemnify you in advance
                                                                 as set forth in subsection 6.1 of this Letter above shall also
                                                                 apply with respect to the amount of the self participation charged
                                                                 in accordance with the insurance policy.

 

Confidential

 

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		7.	Liabilities or Expenses to which the
                                                      Indemnity Applies in Advance

 

The Company's
undertaking to indemnify you in advance, as set forth in section 6 above, will apply due to any liability, payment or expense
imposed on or incurred by you, as follows:

 

		7.1	A financial liability imposed on
                                                               you in favor of another person pursuant to a judgment, including
                                                               a compromise judgment or an arbitrator's award, approved by the
                                                               Court, due to acts performed by you in the capacity of an officer,
                                                               and which pertain, directly or indirectly, to one or more of the
                                                               events set forth in the addendum to this Letter (the "Addendum"),
                                                               which, at the discretion of the Company's Board Of Directors, are
                                                               anticipated in light of the Company's actual activity at the time
                                                               of the issuance of the advance indemnity undertaking;

 

		7.2	Reasonable litigation costs, including
                                                               lawyer’s fee, incurred by you pursuant to any investigation
                                                               or proceeding conducted against you by any authority competent
                                                               to conduct an investigation or proceeding, at the end of which,
                                                               no indictment is filed against you and no financial liability is
                                                               levied on you in lieu of criminal proceedings, or at the
                                                               end of which, no indictment is filed against you but a financial
                                                               liability is levied in lieu of criminal proceedings, in
                                                               an offense not requiring proof of mens rea or in connection
                                                               with a monetary sanction;

 

		7.3	Reasonable litigation costs, including
                                                               attorney's fees, incurred by you or with which you are charged
                                                               by a Court, in a proceeding to be instituted against you by the
                                                               Company or on its behalf or by another person, or in a criminal
                                                               indictment from which you are acquitted, or in a criminal indictment
                                                               in which you are convicted of an offense which does not require
                                                               proof of mens rea.
	 	 	 

		7.4	A monetary liability imposed on
                                                               you due to a payment for the party harmed by the breach in an Administrative
                                                               Proceeding, as aforesaid in Section 52(54)(a)(1)(a) of the Securities
                                                               Law.
	 	 	 

		7.5	Expenses incurred by you in connection
                                                               with an Administrative Proceeding conducted in your matter, including
                                                               reasonable litigation expenses, including legal fees.
	 	 	 

		7.6	Any liability or other expense
                                                               which upon them the indemnification to an officer according to
                                                               the law is allowed.

 

		8.	Amount of the Advance Indemnity

 

		8.1	The amounts to be paid by the Company
                                                               to all officers, in the aggregate, in any calendar year, in accordance
                                                               with all letters of exemption and indemnification issued and/or
                                                               to be issued to them by the Company for financial liabilities and
                                                               reasonable litigation costs as set forth in subsection 7.1 above,
                                                               will not exceed the higher of 25% (twenty five percent) of the
                                                               Company's consolidated shareholders' equity as is in accordance
                                                               with the Company's most recent consolidated annual financial statements,
                                                               that existed as of the actual date of payment for the indemnification,
                                                               or USD 3,000,000 (three million US Dollars) ("Maximum Indemnity
                                                               Amount"). It should be clarified that the Company's Board
                                                               Of Directors has determined that the Maximum Indemnity Amount,
                                                               as defined in this Letter above, is reasonable under the circumstances.

 

Confidential

 

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		8.2	If and to the extent that the total
                                                               sum of all amounts which the Company is required to pay on any
                                                               date, plus the sum of all amounts paid by the Company by such date,
                                                               for financial liabilities and reasonable litigation costs as set
                                                               forth in subsection 7.1 above, in accordance with all letters of
                                                               exemption and indemnification issued and/or to be issued to all
                                                               officers in the aggregate, exceeds the Maximum Indemnity Amount,
                                                               the Maximum Indemnity Amount or the balance thereof, as the case
                                                               may be, will be distributed among the officers entitled to such
                                                               amounts in connection with demands submitted to the Company pursuant
                                                               to the indemnity letters and which have not been paid to them before
                                                               such date, so that the amount actually received by each of the
                                                               said officers, will be calculated in the ratio of the amount payable
                                                               to each of the officers from the sum payable to all the said officers
                                                               in the aggregate, on such date, in connection with such demands.
                                                               Should it turn out on a subsequent date, that amounts which the
                                                               Company was required to pay become available, either in light of
                                                               the contents of Section 10 below or due to the settlement of claims
                                                               against officers without having to pay therefor all or any part
                                                               of the amounts claimed by any officer, the balance of the amount
                                                               for indemnification will increase by the amount of the sums becoming
                                                               available, and all officers who have only received their pro
                                                               rata share as aforesaid, will be entitled to their proportionate
                                                               share, pro rata, out of the amounts that become available.

 

In order
to clarify the calculation method detailed in this subsection 8.2, the following example is provided: assume that compensation
payments were ruled against Officer A for the sum of $100. These payments are recoupable, and thus Officer A demands indemnification
from the Company for these payments. Assume further that the maximum indemnification sum is 25% (twenty-five percent) from Company's
consolidated shareholders' equity, which was set according to the last consolidated annual financial statements, that existed
as of the actual date of payment for the indemnification, is $1,000. Therefore, the maximum indemnification sum is, as of the
payment date of $100 to Officer A, is $250. Therefore, after payment for the indemnification or Officer A, and until the new consolidated
annual financial statements, law suits are filed against Officers B, C and D, who demand repayment of $100, $200 and $300 –
respectively. In such a case, since the latest claimed indemnification sum ($600) is higher than the balance maximum indemnification
sum ($150), the balance shall be divided pro rata between the Officers as follows: Officer B shall receive 150*100/600,
Officer C shall receive 150*200/600 and Officer D shall receive 150*300/600. In case after the specified above, and before the
Company updates its consolidated annual financial statements the Company will learn that Officer A was not entitled to the Indemnification,
the sum of $100 will become available and return to the general indemnification sum. The returned sum ($100) shall be divided
pro rata between the Officers as follows: Officer B shall receive a further payment of 100*100/600, Officer C shall receive
a further payment of 100*200/600 and Officer D shall receive a further payment of 100*300/600.

 

Confidential

 

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		8.3	The indemnity amount paid to you
                                                               by the Company, together with the amounts paid to you pursuant
                                                               to an insurance policy and/or in accordance with an indemnity undertaking
                                                               by any third party whatsoever, will in no event exceed the amount
                                                               of the financial liability and/or the expenses as set forth in
                                                               Section 7 above, which you have incurred or with which you have
                                                               been charged. For this purpose, the amounts of the excess insurance
                                                               in accordance with an insurance policy, if such have been prescribed,
                                                               will be deemed to be amounts not actually paid to you. Should the
                                                               Company pay to you or in your place, amounts that you are entitled
                                                               to receive in accordance with an insurance policy and/or an indemnity
                                                               undertaking by any third party whatsoever, then you will assign
                                                               to the Company your rights to receive the amounts in accordance
                                                               with the insurance policy or the indemnity undertaking by any third
                                                               party, to the extent that there is no impediment to the assignment
                                                               of such rights, and you will authorize the Company to collect these
                                                               amounts on your behalf, where required for the fulfillment of the
                                                               provisions of this section, and, at the Company's request, you
                                                               will sign any document for the purpose of assigning your rights
                                                               and authorizing the Company to effect such collection. In the event
                                                               that you have collected the aforesaid amounts directly from an
                                                               insurance company or from any third party whatsoever, these amounts
                                                               will be returned by you to the Company in accordance with the provisions
                                                               of Section 10 below.

 

		9.	Realization of Advance indemnification
                                                      

 

In any event in respect of
which you are likely to be prima facie entitled to indemnity pursuant to this Letter, you and the Company will act as follows:

 

		9.1	Subject
                                                                     to any law, you will give notice to the Company of any legal
                                                                     and/or administrative proceeding, investigation or proceeding
                                                                     by a competent authority instituted against you, and of any
                                                                     concern or threat that such proceeding or investigation will
                                                                     be instituted against you (in this section 9 and section
                                                                     10.1 hereunder: "Proceeding"), with due
                                                                     expedition after you have first learned about it and not
                                                                     later than by the end of three (3) days after you first learned
                                                                     of it and on such date as will allow you and the Company
                                                                     a reasonable time to submit a response to such Proceeding,
                                                                     as required under law, and you will transfer to the Company
                                                                     or to anyone designated by it, without delay, a copy of any
                                                                     document relating to the Proceeding delivered to you by the
                                                                     initiator of the Proceeding (in this section: "Duty
                                                                     to Give Notice and Deliver Documents"). Subject
                                                                     to any law, in the event that the Company learns of such
                                                                     a Proceeding, the Duty to Give Notice and Deliver Documents
                                                                     will apply to the Company vis-à-vis you, mutatis
                                                                     mutandis.

 

It should
be clarified that if you breach the Duty to Give Notice and Deliver Documents, this will not release the Company from its undertaking
in accordance with this Exemption Letter, unless the breach committed by you as aforesaid, will have a material adverse effect
on the Company's rights and/or its ability to defend in its name (in the event that the Company is also a party to the same Proceeding)
and/or in your name against the Proceeding.

 

Confidential

 

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		9.2	The Company will be entitled to
                                                               assume the handling of your legal defense within the ambit of the
                                                               same Proceeding and/or transfer such handling to a reputable attorney
                                                               experienced in the relevant field, which the Company will select
                                                               to this end, and who will act and will owe a fiduciary duty to
                                                               you and to the Company. The Company will be entitled to appoint
                                                               an attorney as aforesaid provided you give your prior approval,
                                                               in writing, to the identity of the attorney. However, you will
                                                               not unreasonably withhold such approval, including due to circumstances
                                                               where, at your reasonable discretion, concern of a conflict of
                                                               interests exists between your defense and the Company's defense
                                                               or that of another officer. In the event of concern of a conflict
                                                               of interests as aforesaid, a separate attorney will be appointed
                                                               for you, who will be acceptable to you, in order to protect your
                                                               personal affairs, provided that such appointment is approved, in
                                                               advance and in writing, by the Company. Subject to that stated
                                                               heretofore and hereinafter, the Company and/or any such attorney
                                                               will be entitled to act within the ambit of such handling of the
                                                               Proceeding at their exclusive discretion subject to ongoing reporting
                                                               to you and consultation with you from time to time.

 

			The Company and/or such attorney will
                                                         be entitled to terminate the Proceeding. However, the Company and/or
                                                         the attorney will not agree to enter into a settlement in consequence
                                                         of which you will be convicted of a criminal offense or required to pay
                                                         an amount for which you would not be indemnified under this Indemnification
                                                         Letter and would also not be paid to you pursuant to any insurance purchased
                                                         by the Company or within the framework of any indemnity by a third party,
                                                         other than with your prior written approval. The Company will not agree
                                                         to decide the dispute by way of mediation or arbitration without first
                                                         obtaining your prior written approval. However, you will not unreasonably
                                                         withhold your approval as aforesaid.

 

			At the Company’s
                                                                               request, you will sign any document empowering
                                                                               the Company and/or any attorney as aforesaid, to
                                                                               handle your defense within such Proceeding on your
                                                                               behalf and to represent you in any matter pertaining
                                                                               thereto, as aforesaid.

 

		9.3	You will collaborate with the Company
                                                               and/or with any attorney as aforesaid and/or with any insurer in
                                                               any reasonable manner as may be required of you by any of them
                                                               as part of their handling in connection with such Proceeding, including
                                                               the investment of all time required for dealing with the Proceeding,
                                                               compliance with the provisions of the insurance policy, execution
                                                               or delivery of applications, affidavits, powers of attorney and
                                                               any other document, provided that the Company ensures the full
                                                               coverage of all expenses relating thereto, in such manner as will
                                                               not require you to pay or finance them in person, and all subject
                                                               to the provisions of Sections 7 and 8 above.

 

		9.4	The Company will not be obligated
                                                               to indemnify you for any amount with which you are charged in the
                                                               wake of a settlement arrangement, mediation or arbitration or in
                                                               the event that, within the ambit of a criminal indictment, you
                                                               confess to an offense not requiring proof of mens rea, unless
                                                               the Company's approval has been given in advance and in writing
                                                               for the settlement arrangement or the holding of such mediation
                                                               proceeding or such arbitration or for your confession to such charge,
                                                               as the case may be. It should be noted that the Company will not
                                                               unreasonably withhold its approval as aforesaid.

 

Confidential

 

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		9.5	Irrespective of whether or not
                                                               the Company exercises its right under subsection 9.2 above, the
                                                               Company will attend to the full coverage of all the litigation
                                                               costs referred to in subsections 7.2, 7.3, 7.5 and 7.6 above, and,
                                                               within this context, will also provide securities and/or sureties
                                                               which it is charged to provide pursuant to an interim decision
                                                               of a court or an arbitrator, including for the purpose of substituting
                                                               attachments imposed on your assets, and will pay such costs so
                                                               that you will not be required to pay or finance them in person,
                                                               and all subject to the provisions of Section 7 above.

 

			Subject to subsection 10.1 below,
                                                            amounts paid by the Company as aforesaid will be credited as an advance
                                                            payment on account of the indemnity amount to which you will be entitled
                                                            under this Indemnification Letter.

 

		9.6	Upon your request to effect a payment
                                                               with respect to any event pursuant to this Indemnification Letter,
                                                               the Company will adopt all measures required under law for the
                                                               payment thereof and will act to procure any approval required to
                                                               this end, if any. In the event that any approval whatsoever as
                                                               aforesaid is required for such payment, and where such payment
                                                               is not approved on any ground whatsoever, such payment or any part
                                                               thereof which is not approved as aforesaid shall be subject to
                                                               the court's approval (where relevant), and the Company will act
                                                               to obtain same immediately, and will bear all costs and payments
                                                               required to obtain same as aforesaid.

 

		9.7	You may contact the Company secretary
                                                               at any time, and receive information as to the balance of the Maximum
                                                               Indemnification Amount, as at the date of such application, that
                                                               has not yet been settled by virtue of the indemnification letters,
                                                               as defined in subsection 8.2 above.

 

		10	Refund
                                                           of Amount Paid by virtue of the Advance Indemnity Undertaking 

 

		10.1	In
                                                                the event that the Company has paid to you or on your behalf any
                                                                amounts whatsoever under this Indemnification Letter, including
                                                                amounts in accordance with subsection 9.5 above, and where subsequently
                                                                it transpires that you are not entitled to indemnification from
                                                                the Company for such amounts, these amounts will be deemed as
                                                                a loan extended to you by the Company, which will bear interest
                                                                at the minimum rate prescribed in accordance with subsection 3(i)
                                                                of the Income Tax Ordinance, or any other law superseding same,
                                                                as applicable from time to time, and which does not constitute
                                                                a benefit with respect to your chargeable income (hereinafter
                                                                in this subsection: the "Loan") . In such event
                                                                you will repay the loan within three years from the date it became
                                                                clear that the beneficiary is not entitled to indemnification
                                                                from the company. and in accordance with such payments schedule
                                                                as determined by the Company, with the approval of the Company's
                                                                competent organs. 

 

It should
be clarified that in the event that the Company has paid litigation costs to you or on your behalf, including lawyer's fee, in
connection with any investigation or proceeding conducted against you by a competent authority or in connection with a criminal
proceeding instituted against you, such amounts will be deemed as a loan extended to you by the Company, under such terms as are
set forth in this section. If and where it transpires that the Company may, by law, indemnify you for such amounts, these amounts
will become indemnity amounts which have been paid to you by the Company pursuant to this Indemnification Letter, you will not
be required to refund same to the Company, the interest thereon will be written off and the Company will bear the tax payments
applicable to you in consequence thereof, if any.

 

Confidential

 

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		10.2	It is clarified that amounts awarded
                                                                in your favor within the framework of a legal proceeding, settlement,
                                                                mediation or arbitration arrangement, in connection with any liability
                                                                or expense paid to you or on your behalf theretofore by the Company
                                                                in accordance with the Indemnification Letter, will be refunded
                                                                by you to the Company upon receipt thereof. In the event that
                                                                such amounts were awarded in your favor and you have not yet received
                                                                them, you will assign your rights to receive such amounts to the
                                                                Company and/or authorize the Company to collect such amounts on
                                                                your behalf.

 

		11	Retroactive Indemnification

 

Subject
to the provisions of the Company's Articles Of Association and to the resolution of the Company's competent organs, nothing in
the foregoing in this Letter shall derogate from the Company's right to indemnify you retroactively.

 

Chapter Four: General Provisions

 

		12	Exemption and Indemnification Exclusion

 

The Company
does not exempt you in advance and will not indemnify you for any of the following:

 

		12.1	Breach of fiduciary duty, other
                                                                than in connection with indemnification, provided that you acted
                                                                in good faith and had reasonable grounds to assume that your act
                                                                would not adversely affect the best interests of the Company and/or
                                                                a related corporation;

 

		12.2	Breach of a duty of care committed
                                                                intentionally or recklessly, other than if committed only by negligence;

 

		12.3	A deliberate act to generate personal
                                                                profit unlawfully;

 

		12.4	Any fine, civil fine or ransom
                                                                imposed upon you, provided that such fine or ransom have not been
                                                                imposed pursuant to the conviction for a crime which does not
                                                                require proof of criminal intent, or for a financial sanction
                                                                levied on you.

 

		13	Application
                                                           subsequent to Termination of Office

 

The Company's obligations
under this Letter of Exemption and Indemnification will be available to you and/or to your estate and/or to alternate directors
duly appointed by you, without a time limitation, as well as subsequent to the termination of your capacity as officer in the
Company and/or in a related corporation, as the case may be, provided that the acts forming the subject of this Letter of Exemption
and Indemnification were committed in the course of your capacity as an officer in the Company and/or in a related corporation,
as the case may be.

 

Confidential

 

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		14	No Assignment

 

To remove
any doubts, it should be clarified that this Letter may not be assigned. Notwithstanding the foregoing, in the event of your demise
(G-d forbid), this Letter shall apply to you and to your estate.

 

		15	Letter not in favor of Third Party

 

To remove
any doubts, it should be clarified that this Letter will not be interpreted as intending to grant any right or benefit to any
third party whatsoever, including any insurer.

 

		16	Cancellation, Revision, Waiver
                                                            and Refraining from Action

 

		16.1	Nothing in this Letter of Exemption
                                                                and Indemnification shall prejudice or derogate from future resolutions
                                                                of the Company as to the grant of advance exemption and/or advance
                                                                or retroactive indemnification in connection with any matter subject
                                                                to any law, and same shall not compel the Company to grant you
                                                                additional exemption and/or indemnification beyond that stated
                                                                in this Letter of Exemption and Indemnification.

 

		16.2	The Company will be entitled,
                                                                at its exclusive discretion and at any time, to cancel its exemption
                                                                and/or indemnification undertaking pursuant to this Letter, or
                                                                to reduce the Maximum Indemnification Amount hereunder, or limit
                                                                the events to which the indemnification applies, either in respect
                                                                of all officers or in respect of only part of them, to the extent
                                                                that such cancellation or revision refers to events taking place
                                                                following the date of the cancellation or revision, provided you
                                                                have been given a prior notice of its intention as aforesaid,
                                                                in writing, not less than 30 days prior to the date on which its
                                                                resolution takes effect. To remove any doubts, it is hereby clarified
                                                                that any such resolution, likely to adversely affect the terms
                                                                of or to revoke this Letter, will not have any retroactive applicability
                                                                of any nature whatsoever and this Letter, prior to the revision
                                                                or cancellation hereof, as the case may be, will continue to apply
                                                                and be valid in all respects in connection with any event which
                                                                occurred prior to the revision or the cancellation, even where
                                                                the proceeding in connection therewith was instituted against
                                                                the officer subsequent to the revision or cancellation of this
                                                                Letter. In any other event, this Letter may not be revised unless
                                                                signed by the Company and by you.

 

		16.3	In the event that, in the future,
                                                                the relevant law is modified so as to allow the Company to extend
                                                                the scope of the exemption which it may grant an officer from
                                                                his liability for breach of the duty of care and/or allowing the
                                                                Company to extend its undertaking to indemnify an officer, then
                                                                such modification will also be deemed to apply to you by law,
                                                                and this Letter of Exemption and Indemnification will be deemed
                                                                to have been modified so as to include such modification.

 

Confidential

 

    	11

    	 

    

 

		16.4	A delay, postponement, grant of
                                                                extension or failure on your part or on the part of the Company
                                                                to exercise or enforce any of the rights in accordance with this
                                                                Letter, will not be deemed as a waiver or impediment, on your
                                                                part or on the part of the Company, of the exercise of the rights
                                                                under this Letter and pursuant to any law in the future, and will
                                                                not prevent you or the Company from instituting all legal and
                                                                other measures required to exercise such rights.

 

		17	Law and Jurisdiction

 

Israeli
Law shall exclusively apply to this Letter, and to any dispute arising with respect to this Letter. The exclusive jurisdiction
in respect of everything related to and arising from this Letter, including with respect to its validity, breach and interpretation
hereof, will vest in the competent courts in the district of Tel – Aviv only.

 

		18	Entry into Force; Previous Letters
                                                           of Exemption and Indemnification

 

		18.1	This Letter of Exemption and Indemnification
                                                                will take effect only upon your execution of a copy hereof, in
                                                                the place designated therefor, and upon the delivery of the signed
                                                                copy to the Company. Upon its entry into force, this Letter of
                                                                Exemption and Indemnification revokes any previous undertaking
                                                                for exemption and/or indemnification, if and insofar as offered
                                                                and granted to you by the Company. Without derogating from the
                                                                generality of the foregoing, if and insofar as this Letter of
                                                                Exemption and Indemnification is declared or found to be void
                                                                by the competent courts, then any exemption and/or indemnification
                                                                undertaking preceding the date of the entry into force of this
                                                                Letter of Exemption and Indemnification, and which this Letter
                                                                of Exemption and Indemnification was intended to replace, will
                                                                remain in full force and effect.

 

		18.2	Nothing in this Letter of Exemption
                                                                and Indemnification will derogate from any other exemption or
                                                                indemnification granted to you by any third party and/or to which
                                                                you are entitled from any other source under law.

 

		19	Addresses And Notices

 

The
Parties' addresses are as follows:

 

	 	 	Address	 	Electronic mail
	 	 	 	 	 
	Redhill Biopharma Ltd.	 	21 Ha’arba’a St., Tel Aviv 64739, Israel	 	ori@redhillbio.com
	 	 	 	 	 
	[Officer's Name]	 	__ ___________ St. ________	 	[____@_________]
	 	 	Zip Code _______, P.O.B. ________	 	 

 

Any notice
forwarded by one Party to the other in accordance or in connection with this Letter will be sent by registered mail and by electronic
mail or hand delivered. A notice to be delivered to the Company should be delivered, as aforesaid, to two addresses. A notice
which is hand delivered will be deemed to have reached its addressee on the actual date of delivery, provided that it is a business
day and if it is not a business day, then on the first business day subsequently. A notice sent by registered mail will be deemed
to have reached its addressee within three (3) business days from its dispatch, and a notice transmitted via electronic mail will
be deemed to have reached its addressee on the date of transmitting the notice, subject to receipt of an electronic confirmation
of the transmission thereof.

 

Confidential

 

    	12

    	 

    

 

In Witness
Whereof the Company Has Signed, via its duly authorized signatories.

 

	Redhill Biopharma Ltd.
	 
	By: ________________	By:
	 	 
	Position: _________________	Position: ________________
	 	 
	Date: ________ _________, 201_	Date: ________ _________, 201_
	 	 
	Signature: __________________	Signature: __________________

	

  

I have
read this Letter of Exemption and Indemnification thoroughly, I have fully understood its contents, and I confirm receipt of this
Letter of Exemption and Indemnification and confirm my consent to all its provisions. I am aware that in respect of this Letter
of Exemption and Indemnification, the Company's legal advice does not represent me and that I cannot rely thereon.

 

	 	______________	 
	 	 	 
	 	Date: ________ _________, 201_	 
	 	 	 
	 	Signature: __________________	 

  

Confidential

 

    	13

    	 

    

 

Exhibit 4.16

 

Unofficial translation into English. 

 

Addendum

 

		1.	To remove any doubt, all definitions,
                                                              terms and expression in this Addendum, will have the same meaning
                                                              imparted to them in the Letter of Exemption and Indemnification
                                                              to which this Addendum is attached, unless expressly stated otherwise.

 

		2.	Subject to the provisions of any
                                                              law, you will be entitled to indemnity for any liability or expense
                                                              imposed on you in favor of another person pursuant to a judgment,
                                                              including a compromise judgment or an arbitrator's award approved
                                                              by a Court, due to any act committed by you in the capacity of an
                                                              officer in the Company, and/or any derivation of such act, in connection
                                                              with the following events which at the discretion of the Company's
                                                              Board Of Directors are anticipated in view of the Company's actual
                                                              activity at the time of the issuance of the advance indemnity undertaking:

 

		2.1	Issue
                                                               of securities and/or listing them for trading on a stock exchange
                                                               in Israel or abroad, including, without limitation to the foregoing,
                                                               offering securities to the public under a prospectus, a private
                                                               offering, an offer for sale, issue of bonus shares or offering
                                                               of securities in any other manner whatsoever.

 

		2.2	An
                                                               event arising from the Company being a public company or arising
                                                               from the fact that its shares were offered to the public or arising
                                                               from the fact that the Company's shares are traded on a stock exchange
                                                               in Israel or abroad.

 

		2.3	A transaction within the meaning
                                                               of Section 1 of the Companies Law, including negotiations to enter
                                                               into a transaction or act, transfer, sale, lease, purchase or encumbrance
                                                               of assets or liabilities (including securities) or granting or
                                                               receiving any interest in any of the foregoing, obtaining credit
                                                               and provision of securities, as well as any act directly or indirectly
                                                               connected to such transaction, including disclosure of information
                                                               and documents.

 

		2.4	Resolutions
                                                               and/or acts relating to approval of transactions with stakeholders,
                                                               as such transactions are defined in Chapter 5 of Part VI of the
                                                               Companies Law.

 

		2.5	A report or notice submitted under
                                                               the corporate laws, the securities laws, communications laws, tax
                                                               laws, antitrust laws, labor laws or any other law compelling the
                                                               Company to submit a report or a notice, including in accordance
                                                               with rules or guidelines prevailing in a stock exchange in Israel
                                                               or abroad, or in accordance with any law of another country regulating
                                                               similar matters and/or refraining from submitting any report or
                                                               notice as aforesaid.

 

    	14

    	 

    

 

	 	2.6	Adoption of the findings of external opinions for the purpose of the issuance of an immediate report, prospectus, financial statements or any other disclosure document.
	 	 	 
	 	2.7	Discussion and passing resolutions and discovery and disclosure in the Company's reports, including an evaluation with respect to the effectiveness of internal control and other issues incorporated in the report of the Company's Board Of Directors, as well as the issuance of statements and reference to the financial statements.
	 	 	 
	 	2.8	Preparation, editing, approval and execution of the financial statements, including the passing of resolutions as to the application of accounting principles and restatement in the financial statements.
	 	 	 
	 	2.9	Adoption of financial reporting in accordance with International Financial Reporting Standards (IFRS), and any act in connection therewith.
	 	 	 
	 	2.10	Events relating to the effecting of investments on the part of the Company in any corporations whatsoever.
	 	 	 
	 	2.11	A resolution as to distribution, as defined in the Companies Law, including a distribution with the court's approval.
	 	 	 
	 	2.12	A change in the Company's structure, a change in the Company's ownership, the Company's reorganization, the liquidation thereof, the sale of its assets or businesses (in whole or in part), or any resolution in respect thereof, including, without limitation to the generality of the aforesaid, a merger, spin off, a change in the Company's capital, establishment of subsidiaries, winding up or selling them, allocation or distribution.
	 	 	 
	 	2.13	Consolidation, change or revision of arrangements between the Company and the shareholders and/or holders of bonds and/or banks and/or creditors of the Company or of related corporations, including the preparation or revision of the trust deeds, bonds and outline and arrangement documents in general.
	 	 	 
	 	2.14	Acts relating to the issuance of licenses, permits or approvals, including approvals and/or exemptions in respect of restrictive trade practices.
	 	 	 
	 	2.15	Participation in and preparation of tenders.
	 	 	 
	 	2.16	A statement, declaration, including the expression of a position or opinion, vote and/or abstaining from voting, made in good faith by you as an officer in the course and by virtue of your capacity, such as in negotiations and contractual engagements with suppliers or customers, including within the framework of meetings of management, board of directors or any of its committees.
	 	 	 
	 	2.17	Any act in contravention of the Company's articles of association.

 

    	15

    	 

    

 

	 	2.18	Any act or resolution with respect to an employer-employee relationship including negotiations, contracting and implementation of personal or collective employment agreements, employees' benefits, including allocation of securities to employees.
	 	 	 
	 	2.19	Any act or resolution relating to safety at work and/or to terms of employment.
	 	 	 
	 	2.20	Acts in connection with conducting medical trials and/or product trials and/or the sale, distribution, licensing or use of such products.
	 	 	 
	 	2.21	Negotiations, contractual engagements and activation of insurance policies.
	 	 	 
	 	2.22	Consolidation of work plans, including pricing, marketing, distribution, guidelines to employees, to customers and to suppliers and collaboration with competitors.
	 	 	 
	 	2.23	Resolutions and/or acts relating to the environment and to public health, including hazardous materials.
	 	 	 
	 	2.24	Resolutions and/or acts relating to the Consumer Protection Law, 5741 – 1981 and/or orders and/or regulations by virtue thereof.
	 	 	 
	 	2.25	Acts relating to the Company's intellectual property and the protection thereof, including the registration or enforcement of intellectual property rights and their protection within claims in connection therewith.
	 	 	 
	 	2.26	Infringement of intellectual property rights of third parties, including, without limitation, patents, designs, breeders' rights, trademarks, copyright, and so forth.
	 	 	 
	 	2.27	Negotiations, execution and implementation of contracts of any nature or type with suppliers, distributors, agents, franchisers, marketers, importers, exporters, customers, etc. of the products or the services marketed and/or sold and/or supplied by the Company or used by it.
	 	 	 
	 	2.28	Negotiations, execution and implementation of contracts with manpower contractors, service contractors, construction contractors, refurbishing contractors, etc.
	 	 	 
	 	2.29	Reports, notices and submission of an application to State and other authorities.
	 	 	 
	 	2.30	Investigations on the part of State authorities.
	 	 	 
	 	2.31	Management of the bank accounts which the Company operates at banks and performance of transactions in such bank accounts, including with respect to transactions in foreign currency (including foreign currency deposits), securities (including resale transactions in securities and lending and borrowing of securities), loans and credit facilities, debit cards, bank guarantees, letters of credit, consultation agreements concerning investments including with portfolio managers, hedging transactions, options, futures contracts, derivatives, swap transactions, and so forth.

 

    	16

    	 

    

 

	 	2.32	Realization of personal guarantees provided by the officer to the Company, as security for the Company's obligations and/or declarations.
	 	 	 
	 	2.33	Failure to maintain complete and/or proper due diligence procedures over the Company's investments, resulting in a loss of the investments in whole or in part and/or an adverse effect to the Company's businesses and/or breach of an undertaking vis-à-vis a third party.
	 	 	 
	 	2.34	Events and acts in connection with investments performed by the Company in various corporations, before or after effecting the investment, including for the purpose of entering into a transaction, its implementation, development, follow up and supervision.
	 	 	 
	 	2.35	Financial liability imposed on an officer in connection with acts in which he took part on behalf of the Company, vis-à-vis the various State institutions.
	 	 	 
	 	2.36	Financial liability imposed on an officer in connection with a claim by third parties against the officer due to deficient or misleading disclosure, in writing or verbally, to existing and/or potential investors in the Company, including in the event of the merger of the Company with another company.
	 	 	 
	 	2.37	Covering the excess insurance in the event of the activation of officers’ liability insurance.
	 	 	 
	 	2.38	Breach of the provisions of any agreement whatsoever to which the Company is a party.
	 	 	 
	 	2.39	An act relating to a tax liability of the Company and/or a subsidiary and/or shareholders of any of them.
	 	 	 
	 	2.40	Any of the foregoing events, in connection with the capacity of the officer in the Company by virtue of his capacity as an officer and/or employee and/or observer at meetings of competent organs of a related corporation.
	 	 	 
	 	2.41	Acts and omissions not covered by a Product insurance policy
	 	 	 
	 	2.42	Acts and omissions in connection with bodily injuries or property damage attributed to the Company and/or to an officer who has acted on its behalf.
	 	 	 
	 	2.43	Acts and omissions arising from failure to purchase appropriate insurance and/or to take sufficiently secure measures and/or negligence in risk management.
	 	 	 
	 	2.44	Any event and/or act that in respect of which indemnification may be made pursuant to the Improvement of Enforcement Proceedings in the ISA law (Legislative Amendments), 5771-2011.

 

* * *

 

    	17Exhibit 4.18

 

RedHill Biopharma Ltd.

(the “Company”)

 

OPTION PLAN (2010)

 

Adopted by the Board of Directors on
February 4, 2010,

As been amended from time to time

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	1.	Preamble.	2
	 	 	 
	2.	Administration of the Plan.	3
	 	 	 
	3.	[Reserved]	3
	 	 	
	4.	Option Exercise Prices.	3
	 	 	 
	5.	Exclusivity of the Plan.	4
	 	 	 
	6.	Grant of the Options to the Trustee; Voting of Shares.	4
	 	 	 
	7.	Option or Share Purchase Agreement; Termination of Employment.	5
	 	 	 
	8.	Acceleration of an Option; Liquidation.	8
	 	 	 
	9.	Term of Options; Exercise.	9
	 	 	 
	10.	Additional Documents.	11
	 	 	 
	11.	Taxation.	12
	 	 	 
	12.	Dividends.	13
	 	 	 
	13.	Rights and/or Benefits arising out of the Employee/Employer Relationship and the Absence of an Obligation to Employ.	13
	 	 	 
	14.	Adjustments Upon Changes in Capitalization.	14
	 	 	 
	15.	Term, Termination and Amendment.	15
	 	 	 
	16.	Effectiveness of the Plan; Approvals.	15
	 	 	 
	17.	Release of the Trustee and the Attorney from Liability.	15
	 	 	 
	18.	Governing Laws.	15

 

APPENDICES

 

	Appendix A:	Employee’s Notice to the Trustee as to Exercise of the Option (Section 9.2).
	 	 
	Appendix B:	Notice to the Company of Exercise of the Option by the Trustee (Section 9.2).
	 	 
	Appendix C:	Proxy and Power of Attorney (Section 10.2).

 

    	1

    	 

    

 

		1.	PREAMBLE

 

		1.1	This plan, as amended from time to time, shall be known as the RedHill Biopharma Ltd. Option Plan
(2010)” (the “Plan”). The purpose and intent of the Plan is to provide incentives to employees, directors
and/or service providers including advisors of the Company and/or of subsidiaries and/or affiliated companies of the Company (each
a “Related Company” and collectively, “Related Companies”) by providing them with
the opportunity to purchase shares of the Company..

 

		1.2	The Plan is intended to enable the Company to grant options under various and different tax regimes,
including, without limitation: (i) pursuant and subject to Section 102 of the Israeli Income Tax Ordinance (New Version), 1961
(the “Income Tax Ordinance”) or any provision which may amend or replace it and any regulations, rules, orders
or procedures promulgated thereunder (collectively, “Section 102”) and to
designate them as either grants made through a trustee or not through a trustee; (ii) pursuant and subject to Section 3(i) of the
Income Tax Ordinance; (iii) as “incentive stock options” within the meaning of Section 422 of the United States Internal
Revenue Code of 1986, as amended (“Incentive Stock Options” and the “Code”, respectively);
(iv) as options to U.S. residents, which would not qualify as Incentive Stock Options (“Non-Qualified Stock Options”);
(v) to grantees in jurisdictions other than Israel and the United States; and (vi) as restricted shares.

 

The Company, however, does not
warrant that the Plan will be recognized by the income tax authorities in any jurisdiction or that future changes will not be made
to the provisions of applicable laws, or rules or regulations which are promulgated from time to time thereunder, or that any exemption
or benefit currently available, whether pursuant to Section 102 or otherwise, will not be abolished.

 

		1.3	The Board of Directors of the Company (the "Board") shall have the authority to
make any requisite adjustments in the Plan and determine the relevant terms in any Agreement (as defined in Section 7 below) in
order to comply with the requirements of any relevant tax regime. Furthermore, should any provision of Section 102 be amended,
such amendment shall be deemed included in the Plan with respect to options granted in the context of Section 102. Where a conflict
arises between any section of the Plan, the Agreement or their application, and the provisions of any relevant tax law, rule or
regulation, whether relied upon for tax relief or otherwise, the Board in its sole discretion shall determine the necessary changes
to be made to the Plan and its determination regarding this matter shall be final and binding.

 

		1.4	The Plan contemplates the grant of option awards by the Company both as a private company and as
a company whose shares are publicly-traded. In the event the Company’s shares should be registered for trading on the Tel
Aviv Stock Exchange, the New York Stock Exchange, any other stock exchange or an electronic quotation system, whether in Israel,
the USA or elsewhere, the options allotted in accordance with the Plan may be made conditional to any requirement or instruction
of the stock exchange authorities or of any other relevant authority acting pursuant to applicable law as shall exist from time
to time. In such case, by means of a Board resolution, the Plan and the Agreements prepared pursuant hereto, may be amended as
necessary to meet such requirements. In the event of a contradiction between any such amendment and the Plan’s provisions,
the amendment shall prevail.

 

    	2

    	 

    

 

		2.	ADMINISTRATION OF THE PLAN

 

		2.1	The Plan shall be administered by the Board and/or by any committee of the Board so designated
by the Board. Any subsequent references herein to the Board shall also mean any such committee, if appointed and, unless the powers
of the committee have been specifically limited by law or otherwise, such committee shall have all of the powers of the Board granted
herein. Without derogating from the generality of the foregoing, the Board shall have the authority to designate grants made pursuant
to Section 102 as either grants made through a trustee or not through a trustee and to determine (and from time to time change,
subject to Section 102) the tax route applicable to options granted through a trustee pursuant to Section 102 (e.g., the capital
gains route or the employment income route) and to make any other elections with respect to the Plan pursuant to applicable law.
Subject to Sections 4 and 15, the Board shall have plenary authority to determine the terms and conditions of all options (which
need not be identical), including, without limitation, the purchase price of the shares covered by each option, the identity of
those to whom, and the time or times at which, options shall be granted, the number of shares to be subject to each option, whether
an option shall be granted pursuant to Section 102 or otherwise and when an option can be exercised and whether in whole or in
installments. Subject to Section 15, the Board shall have plenary authority to construe and interpret the Plan, to prescribe, amend
and rescind the rules and regulations relating to it and to make all other determinations deemed necessary or advisable for the
administration of the Plan. All determinations and decisions of the Board pursuant to the provisions of the Plan and all related
orders and resolutions of the Board shall be final, conclusive and binding on all persons, including the Company, its shareholders,
grantees and their estates and beneficiaries.

 

		2.2	Any directive or notice signed by a member of the Board shall constitute conclusive proof and authority
for every act or decision of the Company.

 

		2.3	No director or officer of the Company shall be personally liable or obligated to any grantee as
a result of any decision made and/or action taken with respect to the Plan or its execution.

 

		3.	[Reserved] 

 

		4.	OPTION EXERCISE PRICES

 

The consideration to be paid
by a grantee for each share purchased by exercising an option (the “Option Exercise Price”) shall be as determined
by the Board on the date of grant provided that the Option Exercise Price shall not be less than the nominal value of the shares
subject to the option. The Option Exercise Price shall be denominated in the currency of the primary economic environment of, either
the Company or the grantee (that is the functional currency of the Company or the currency in which the grantee is paid) as determined
by the Company.

 

The Board may, in its discretion,
grant to the holder of an outstanding option, in exchange for the surrender and cancellation of such option, a new option having
an Option Exercise Price lower than provided in the option so surrendered and canceled, and containing such other terms and conditions
as the Board may prescribe in accordance with the provisions of this Plan provided that such new Option Exercise Price shall not
be less than the nominal value of the shares subject to the new option.

 

    	3

    	 

    

 

		5.	EXCLUSIVITY OF THE PLAN

 

			Unless otherwise determined by the Board in any particular instance as part of the Agreement, each
grantee hereunder will be required to declare and agree that all prior agreements, arrangements and/or understandings with respect
to options to purchase shares of the Company which have not actually been granted prior to execution of the Agreement shall be
null and void and that only the provisions of the Plan and/or the Agreement shall apply.

 

			Notwithstanding the above, the adoption of this Plan, by itself, shall not be construed as amending,
modifying or rescinding any incentive arrangement previously approved by the Board or as creating any limitations on the power
of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of
options otherwise than under this Plan, and such arrangements may be either applicable generally or only in specific cases.

 

		6.	GRANT OF THE OPTIONS TO THE TRUSTEE; VOTING OF SHARES 

 

		6.1	The Board shall appoint a trustee for the purposes of this Plan, which trustee shall be approved,
with respect to grants designated as grants made through a trustee pursuant to Section 102, in accordance with Section 102 (the
“Trustee”). The Trustee shall have all the powers provided by law, Section 102 and the Plan and shall act pursuant
to the provisions thereof, as they shall apply from time to time. The Company shall pay the Trustee a fee as shall be agreed between
the Trustee and the Company.

 

		6.2	Unless otherwise determined by the Board, all option awards shall be issued by the Company in the
name of the Trustee and the share certificates representing any shares issued pursuant to options exercised hereunder, and any
and all other or additional rights deriving in connection therewith, if any, such as, but not limited to, bonus shares (share dividends)
(“Additional Rights”), shall be issued by the Company in the name of the Trustee in trust for the designated
grantee and shall be deposited with the Trustee, held by him or her and registered in his or her name in the register of members
of the Company for such period as determined by the Board but, in the case of grants designated as grants made through a trustee
pursuant to Section 102, not less than the period required, or approved, with respect thereto pursuant to Section 102, as shall
be in effect from time to time (the “Lock-Up Period”).

 

			Furthermore, and without derogating from the aforesaid or any other provision hereof, with respect
to options granted which were designated as made through a trustee pursuant to Section 102: (i) they may not be sold until the
end of the Lock-Up Period, unless otherwise allowed or determined by the Israeli tax authorities; and (ii) all Additional Rights
will be subject to the same tax route applicable to the original option.

 

    	4

    	 

    

 

		6.3	Without derogating from the provisions of Sections 6.2 above or 6.7 below, and unless otherwise
determined by the Board generally or in any particular instance, the shares issued with respect to any options granted hereunder
and all Additional Rights, if any, will be held by the Trustee and registered in his name until the consummation of the initial
public offering of the Company’s shares, pursuant to an effective registration statement, prospectus or similar document
in Israel or such other jurisdiction as is determined by the Board (the “IPO”), after which time the grantee
for whom they are being held may request their registration in his/her name and transfer to him/her subject to the provisions of
Section 102, applicable laws and the Plan all as shall be in effect from time to time (e.g., payment of taxes, etc.). After the
consummation of the IPO, options granted and designated as grants made through a trustee pursuant to Section 102 will be held by
the Trustee and registered in his name in trust for the designated grantee, for not less than the Lock-Up Period.

 

		6.4	Options granted hereunder shall not confer upon the holder thereof any of the rights of a shareholder
of the Company with respect to the shares subject to such options until such shares are issued and registered in the name of the
holder upon exercise of the options.

 

		6.5	For as long as any shares are held by the Trustee or registered in his name or for as long as the
certificates representing any shares are held by the Trustee, the Trustee alone shall be entitled to receive every notice to which
a shareholder is entitled, or to demand any information, and any financial and/or other report to which a shareholder is entitled
from the Company, and only he or whomever he shall designate pursuant to the Proxy and Power of Attorney referred to and as defined
in Section 10.2 below (the “Attorney”), shall be entitled to exercise every other right of the shareholders
vis-a-vis the Company including the right to participate in and to vote at all shareholders’ meetings. No grantee shall be
entitled to exercise any of these rights as shareholder nor make any demand or request of the Trustee and/or of the Attorney in
this regard.

 

		6.6	Shares registered in the Trustee’s name shall be represented at all meetings of shareholders
of the Company and shall be voted by the Trustee or the Attorney in the same manner, proportionately, as the other shareholders
of the Company voting on such matter.

		6.6	Nothing in the foregoing provisions shall derogate from the power of the Board to grant options
to the Trustee otherwise than under the provisions of Section 102 or to grant options to grantees directly otherwise than through
the Trustee or on terms which differ from those specified above or to approve the transfer of shares from the Trustee to the name
of any grantee(s) upon such conditions as shall be determined by the Board.

 

		7.	OPTION AGREEMENT; TERMINATION OF EMPLOYMENT

 

			Unless otherwise determined by the Board, every grantee shall be required to sign an option agreement
or other document as shall be determined by the Board, in the form approved by the Board (the “Agreement”).

 

			The Agreement shall specify the type of option award granted and whether it constitutes an option
pursuant to Section 102, and if so, under which regime, an option pursuant to Section 3(i) of the Income Tax Ordinance, an Incentive
Stock Option, a Non-Qualified Stock Option or otherwise. The Agreement need not be identical with respect to each grantee. The
following terms, however, shall apply to all options, unless expressly otherwise decided in respect of a particular option:

 

		7.1	The Option Exercise Price shall be paid by the grantee to the Company no later than the date of
exercise of the option unless otherwise determined in the Agreement.

 

		7.2	The grantee shall have no right of first refusal to purchase shares of the Company which may be
offered for sale by shareholders of the Company, and shall have no pre-emptive rights to purchase shares which are being allotted
or shall in the future be allotted by the Company, to the extent any such rights otherwise exist.

 

    	5

    	 

    

 

		7.3	The option and/or the right to the option are personal and except insofar as is specified in this
Plan, and, where applicable, subject to Section 102, may not be transferred, assigned, pledged, withheld, attached or otherwise
charged either voluntarily or pursuant to any law, except by way of transfer pursuant to the laws of inheritance, and no power
of attorney or deed of transfer, whether the same has immediate effect or shall take effect on a future date, shall be given with
respect thereto. During the lifetime of the grantee the option may only be exercised by the designated grantee or, if granted to
the Trustee, by the Trustee on behalf of the designated grantee. A note as to the provisions of this sub-section or a legend may
appear on any document which grants the option and in particular in the Agreement, and also on any share certificate.

 

		7.4	The right to exercise the option is granted to the Trustee on behalf of the grantee. Unless otherwise
provided in the Agreement, vesting shall be in installments, gradually over a period of three (3) years from the date of grant
of the option or such other period or periods as determined by the Board. Unless otherwise determined, at the conclusion of each
period for the exercise of the option as determined in the Agreement (“Vesting Periods”), the option may, from
time to time, be exercised in relation to part or all the shares allocated for that period in such manner that at the end of each
year following the granting of the option the Trustee shall, in the absence of a contrary determination in the Agreement, be entitled
to exercise on behalf of the grantee and at his or her request up to one third (1/3) of the shares subject to the option.

 

			In addition, during each of the Vesting Periods, the option may be exercised in relation to all
or part of the shares allocated for any previous Vesting Period in which the option was not fully exercised, provided, subject
to the provisions of Section 7.6 hereof, that at the time of the exercise of the option the grantee has continued to be employed
by or to serve as a director of or provide services to, the Company or a Related Company on a continual basis from the date of
the grant thereof until the date of their exercise. After the end of the Vesting Periods and during the balance of the option period,
the option may be exercised, from time to time, in relation to all or part of the shares which have not at that time been exercised
and which remain subject to the option, subject to the provisions of Section 7.6 hereof and to any condition in the Agreement,
if such exists, which provides a minimum number of shares with respect to which the option may be exercised and any provision which
determines the number of times that the Trustee may send the Company notice of exercise on behalf of the grantee in respect of
the option. The Board shall be entitled at any time to shorten the vesting schedule or any Vesting Period.

 

    	6

    	 

    

 

		7.5	The Board may determine at its sole discretion, that any grantee shall be entitled to receive the
options, through the Trustee, pursuant to the provisions of this Plan or, subject to the provisions of Section 102 as relevant,
directly in the name of the grantee, immediately upon execution of the Agreement or on such other date or dates as the Company
has undertaken towards such grantee. In the event that a grantee is exempt from the Vesting Periods (pursuant to the provisions
of Section 7.4), the Board shall be entitled, subject to the provisions of Section 102 as relevant, to determine that where the
grantee does not comply with the conditions determined by the Board or ceases to be an employee of the Company or a Related Company,
the Trustee, the Company or a Related Company shall have the right to repurchase the shares from the grantee for nominal or any
other consideration paid by the grantee or as otherwise determined by the Board at the time of grant. The Board may set additional
conditions to this right of repurchase, including the provision of appropriate arrangements for the monies which shall be available
to the Trustee or a Related Company or others for the purpose of the repurchase and may set conditions with respect to the voting
rights of the grantee, rights of first refusal or pre-emptive rights to purchase shares in the Company, to the extent such rights
exist, the grantees right to receive reports or information from the Company, and the grantee’s right to a dividend in respect
of shares which are subject to a right of reacquisition as aforesaid. For as long as the foregoing conditions of the Board (including
a minimum period of employment as a condition for the lapse of the right to reacquisition) have not been complied with, the grantee
shall not be entitled to sell or charge or transfer in any other manner the shares which are subject to the right of reacquisition.
As security for the compliance with this undertaking the share certificate will be deposited with the Trustee who will release
the same to the grantee only after the grantee becomes entitled to the shares and the same are not subject to any other restrictive
condition.

 

    	7

    	 

    

 

7.6 Termination of Employment

 

		7.6.1	If a grantee ceases to be an employee, director or service provider (or, if relevant, an employee
of a service provider) of the Company or a Related Company, other than: (i) by reason of death, disability (as determined by the
Board in its absolute discretion) or retirement as provided in Section 7.6.3 below; or (ii) for Cause (as defined in Section 8.2
below) (at which time the option shall terminate immediately upon the earlier of such cessation or notice of cessation); the option
shall remain exercisable for a period of ninety (90) days following the earlier of such cessation or notice of cessation (but only
to the extent exercisable at termination of employment and not beyond the scheduled expiration date), unless the Agreement provides
otherwise.

 

		7.6.2	If the employment or the director or service-provider relationship of a grantee is terminated by
reason of death, disability (as determined by the Board in its absolute discretion) or retirement after age 60 with the approval
of the Board, the option shall remain exercisable for a period of twenty four (24) months following such termination (but only
to the extent exercisable at termination of employment and not beyond the scheduled expiration date).

 

		7.6.34	The Board may determine whether any given leave of absence constitutes a termination of employment.
Options awarded under this Plan shall not be affected by any change of employment so long as the grantee continues to be an employee,
director or service-provider, as applicable, of the Company or a Related Company.

 

		7.6.4	Notwithstanding the foregoing, the Board may in its absolute discretion, extend the period of exercise
of the option by a grantee or grantees for such time as it shall determine either with or without conditions.

 

		8.	ACCELERATION OF AN OPTION; LIQUIDATION

 

		8.1	Acceleration in the Event of Sale of Assets, Certain
Mergers. In the event of: (i) a sale of all or substantially all of the assets of the Company; or (ii) a consolidation or
merger of the Company in which the Company is not the continuing or surviving corporation and the continuing or surviving corporation
(or, if such transaction is effected through a subsidiary, the parent of such continuing or surviving corporation), does not assume
the option or substitute it with an appropriate option in the continuing or surviving corporation (or in the parent as aforesaid),
then, notwithstanding any contrary Vesting Periods in any Agreement or in this Plan, and unless in each case: (A) the applicable
Agreement provides otherwise; or (B) the Board determines otherwise, all of the outstanding options held by or for the benefit
of any grantee whose vesting dates fall within the first twelve (12) months thereafter shall be accelerated and become vested
and exercisable immediately prior to the consummation or closing of such proposed action.

 

		8.2	Acceleration in the Event of a Significant Event. If a “Significant Event”,
as defined below, shall occur, and the employment of a grantee with the Company or a Related Company is terminated by the Company
or a Related Company within twelve (12) months thereafter, other than for “Cause” as defined below; and unless: (i)
the applicable Agreement provides otherwise; or (ii) the Board determines otherwise, all of the outstanding options held by or
for the benefit of any grantee whose vesting dates fall within the first twelve (12) months thereafter shall be accelerated and
become immediately vested and exercisable.

 

    	8

    	 

    

 

			Each of the following shall be a “Significant Event”: a consolidation or
                                                                           merger of the Company with or into another corporation in which the Company is the continuing or surviving corporation or in
                                                                           which, if the Company is not the continuing or surviving corporation, the continuing or surviving corporation (or, if such
                                                                           transaction is effected through a subsidiary, the parent of such continuing or surviving corporation) assumes the option or
                                                                           substitutes it with an appropriate option in the surviving corporation (or in the parent as aforesaid).

 

			The term “Cause” shall mean, for the purposes hereof, conviction (whether following
trial, by plea of guilty or failure to contest prosecution) in a criminal proceeding of (i) a misdemeanor involving fraud, false
statements or misleading omissions, embezzlement, bribery, forgery or extortion; or (ii) a felony; or (iii) an equivalent charge
to those in (i) and (ii) above in jurisdictions which do not use those designations.

 

		8.3	Liquidation; Merger. Unless otherwise determined
by the Board, in the event of: (i) the proposed liquidation or dissolution of the Company; or (ii) a consolidation or merger as
described in Section 8.1 (ii) above; all outstanding options (including, without limitation, any options accelerated pursuant
to Section 8.1 above) will terminate and expire immediately upon to the consummation or closing of such proposed action. Without
derogating from any other right or authority of the Board hereunder, the Board may, in connection with any proposed liquidation
or dissolution, or in connection with any merger or consolidation as aforesaid, determine any other date and time upon which any
outstanding option will terminate and may also provide for the acceleration and vesting of, and right to exercise, any option
which would not otherwise be exercisable.

 

		9.	TERM OF OPTIONS; EXERCISE

 

		9.1	The term of each option shall be for such period as the Board shall determine, but not more than
ten (10) years from the date of grant thereof or such shorter period as is prescribed in Section 7.6 or 8.3 hereof or, with respect
to Incentive Stock Options, as prescribed in Section 4 above.

 

		9.2	A grantee who desires that the Trustee exercise an option granted to the Trustee on his or her
behalf shall so instruct the Trustee in writing in the form annexed hereto as Appendix A or in such other form as shall
be approved by the Board from time to time. The notice shall be accompanied by, or specify the arrangements for, payment of the
full Option Exercise Price of such shares as provided in the Agreement. The Company may require as a condition to the exercise
of an option that the grantee pay or otherwise make arrangements to the Company’s satisfaction, for the payment of the tax
and other obligatory payments applicable to him or her (including all sums payable arising out of or in connection with the Company’s
obligation to deduct tax and other obligatory payments at source) pursuant to applicable law and the provisions of the Plan. The
Company may also require that the grantee provide or make such representations and agreements as to grantee’s investment
intent and such other matters as the Company may deem necessary, advisable or appropriate at such time. Upon receipt of all the
requisite documents, approvals and payments from the grantee, including sufficient proof of payment or other arrangement with respect
to the payment of any applicable taxes in form satisfactory to the Company and the Trustee, the Trustee shall deliver a notice
to the Company in the form annexed hereto as Appendix B or in such other form as shall be approved by the Board from time
to time, whereupon the Company shall allot the shares in the name of the Trustee.

 

    	9

    	 

    

 

		9.3	A grantee who desires to exercise an option granted directly to him or her (and not through the
Trustee) shall so notify the Company in writing in such form as shall be prescribed by the Board from time to time. As a condition
for the exercise of the option, the grantee shall pay or otherwise make arrangements, to the Company’s and Trustee’s
satisfaction, for the payment of the tax and other obligatory payments applicable to him or her (including all sums payable by
the Company arising out of its obligation to deduct tax and other obligatory payments at source) pursuant to applicable law and
the provisions of the Plan. Upon receipt of all the requisite documents, approvals and payments from the grantee, including sufficient
proof of payment or other arrangement with respect to the payment of any applicable taxes in form satisfactory to the Company and
the Trustee, the Company shall allot the shares in the name of the grantee.

 

		9.4	Without limiting the foregoing, the Board may, with the consent of the grantee, from time to time
cancel all or any portion of any option then subject to exercise, and the Company’s obligation in respect of such option
may be discharged by: (i) payment to the grantee or to the Trustee on behalf of the grantee of an amount in cash equal to the excess,
if any, of the Fair Market Value (as defined below) of the relevant shares at the date of such cancellation subject to the portion
of the option so canceled over the aggregate Option Exercise Price of such shares; (ii) the issuance or transfer to the grantee
or to the Trustee on behalf of the grantee of shares of the Company with a Fair Market Value at the date of such transfer equal
to any such excess; or (iii) a combination of cash and shares with a combined value equal to any such excess, all as determined
by the Board in its sole discretion.

 

			For purposes hereof, the “Fair Market Value” of the Ordinary Shares shall mean,
as of any date, the last reported sale price, on that date, of the Ordinary Shares of the Company on the principal securities exchange
on which such shares are then traded, or, in the event that no sales of such shares took place on such date, the last reported
sale price of such shares on such principal securities exchange on the most recent prior date on which a sale of shares took place;
provided, however, that if such shares are not publicly traded on the date as of which Fair Market Value is to be determined, “Fair
Market Value” of the Ordinary Shares shall mean the value as determined in good faith by the Board.

 

Without derogating from the
above, solely for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Income Tax Ordinance, if at
the date of grant the Company’s shares are listed on any established stock exchange or a national market system or if the
Company’s shares will be registered for trading within ninety (90) days following the date of grant, the Fair Market Value
of an Ordinary Share at the date of grant shall be determined in accordance with the average value of the Company’s shares
in the thirty (30) trading days preceding the Date of Grant or in the thirty (30) trading days following the date of registration
for trading, as the case may be.

 

    	10

    	 

    

 

		9.5	Exercise of options will not be permitted on the effective date for distribution of bonus shares,
rights offering, distribution of a dividend, capital consolidation, capital split or capital reduction (all of the above will be:
"Effective Date" and "Company Event", respectively).

 

			If the Ex Date of a Company Event precedes the Effective Date of a Company Event, the exercise
of options will not be permitted on the Ex Date as mentioned.

 

			Ex Date - the first trading day, in which the securities are traded without the right to
any payment under a Company Events.

 

		10.	ADDITIONAL DOCUMENTS

 

		10.1	Until the consummation of the IPO, the grantee shall provide any certificate, declaration or other
document which the Company or the Trustee shall consider to be necessary or desirable whether pursuant to any law, whether local
or foreign, or otherwise, including any undertaking on the part of the grantee not to sell his or her shares during any period
which shall be required by an underwriter or investment bank or advisor of the Company for the purpose of any share issue, whether
private or public (including lock-up and/or market stand-off arrangements and undertakings), and including any certificate or agreement
which the Company shall require, if any, from the grantees as members of a class of shareholders, or any certificate, declaration
or other document the obtaining of which shall be deemed by the Board or the Trustee to be appropriate or necessary for the purpose
of raising capital for the Company, of merging the Company with or into another company (whether the Company is the surviving entity
or not), or of reorganization of the Company, including, in the event of a consolidation or merger of the Company or any sale,
lease, exchange or other transfer of all or substantially all of the assets or shares of the Company, for the sale or exchange,
as the case may be, of any shares the grantee (or the Trustee on his or her behalf) may have purchased hereunder all as shall be
deemed necessary or desirable by the Board or the Trustee.

 

			As long as the options are registered in the Trustee’s name, the same shall be authorized
to sign the grantee’s name and on his or her behalf on any of the aforesaid documentation. In the event that the options
have been transferred into the name of the grantee, and he or she has refused to confirm any document required by the Company as
aforesaid by placing his or her signature thereon, the Trustee shall be entitled, at the request of the Company, to sign any document
in the name of the grantee and on his or her behalf.

 

		10.2	In order to guarantee the aforesaid, and because the rights of the Company and the other shareholders
are dependent thereon, the grantee shall, upon signing the Agreement and as a condition to the grant of any options hereunder,
execute the Proxy and Power of Attorney attached hereto as Appendix C, or in such other form as shall be approved by the
Board (the “Proxy and Power of Attorney”), irrevocably empowering the Trustee and/or the Attorney, until consummation
of the IPO, to sign any document and take any action in his or her name as aforesaid, and the grantee shall have no complaint or
claim against the Trustee and/or the Attorney in respect of any such signature or action, or in respect of any determination of
the Trustee pursuant hereto, including pursuant to Sections 6.6 or 10.1 above. The grantee will authenticate his or her signature
in the presence of a notary if he or she shall be asked to do so by the Company, in order to give full validity to the Proxy and
Power of Attorney.

 

    	11

    	 

    

 

		11.	TAXATION

 

		11.1	General

 

			The grantee shall be liable for all taxes, duties, fines and other payments which may be imposed
by the tax authorities (whether in Israel or abroad) and for every obligatory payment of whatever source (including, but not limited
to, social security, health tax, etc., as may be applicable) in respect of the options (including, without limitation, upon the
grant of the options, the exercise of the options, or the registration of the shares in the grantee’s name) or dividends
or any other benefit in respect thereof and/or for all charges which shall accrue to the grantee, the Company, any Related Company
and/or to the Trustee in connection with the Plan, the options, or any act or omission by the grantee or the Company in connection
therewith or pursuant to any determination by the applicable tax or other authorities, including, without limitation, any such
payments required to be made by the Company as the result of any sale by the grantee of shares which were designated as made through
a trustee pursuant to Section 102 prior to the end of the Lock-Up Period. Notwithstanding the foregoing, if the Company elects
the “employment income” route for options granted through a trustee pursuant to Section 102, the Company or the Related
Company, as applicable, shall pay, at its expense, any social security payments payable by the employer with respect to options
so granted to the extent required as a result of such choice.

 

		11.2	Deduction at Source

 

			The Company (including any Related Company) and/or the Trustee shall have the right to withhold
or to require the grantee to pay an amount in cash or to retain or sell without notice Ordinary Shares in value sufficient to cover
any tax or obligatory payment required by any governmental or administrative authority to be withheld or otherwise deducted and
paid with respect to the options or the Ordinary Shares subject thereto (including, without limitation, upon their grant, exercise,
issuance or sale or the registration of the Ordinary Shares in the grantee’s name) or with respect to dividends or any other
benefits in respect thereof (“Withholding Tax”), and to make payment (or to reimburse itself or himself for
payment made) to the appropriate tax or other authority of an amount in cash equal to the amount of such Withholding Tax. Notwithstanding
the foregoing, the grantee shall be entitled to satisfy the obligation to pay any Withholding Tax, in whole or in part, by providing
the Company and/or the Trustee with funds sufficient to enable the Company and/or the Trustee to pay such Withholding Tax.

 

		11.3	Certificate of Authorization of Assessing Officer

 

			The Company (including any Related Company) or the Trustee shall at any time be entitled to apply
to the Assessing Officer, and in the case of a grantee abroad, to any foreign tax authority, and to any other governmental or administrative
authority for receipt of their certificate of authorization as to the amount of tax or other obligatory payments which the Company
or any Related Company or the grantee or the Trustee is to pay to the tax or other authorities resulting from granting the options,
or regarding any other question with respect to the application of the Plan.

 

    	12

    	 

    

 

		11.4	Security for Payment of Taxes

 

			Without derogating from the above, the Company (including any Related Company) and/or the Trustee
shall have the right to require that any grantee provide guarantees or other security to the Company’s satisfaction to guarantee
the payment of any taxes or other obligatory payments which may be payable as a result of or in connection with the grant of an
option, the exercise thereof, the registration of any options in the grantee’s name (including any sum payable arising out
of or in connection with the Company’s obligations to deduct tax and other obligatory payments at source); and, with respect
to options granted pursuant to Section 102 which were not designated as made through a trustee, if the grantee’s employment
with the Company or any Related Company is terminated for any reason, the grantee will be obligated to provide the Company with
a guarantee or other security to its satisfaction and at its discretion, to cover any tax obligations which may arise thereafter
in connection with the disposition of the shares.

 

		12.	DIVIDENDS

 

			The Ordinary Shares issued as a result of the exercise of the options shall participate equally
with the Company’s other Ordinary Shares in every cash dividend that shall be declared and distributed subject to the following
provisions:

 

		12.1	A cash dividend shall be distributed only to persons registered in the register of members as shareholders
on the record date fixed for the distribution of the dividend.

 

		12.2	A dividend with regard to shares that are registered in the name of the Trustee shall be paid to
the Trustee, subject to any lawful deduction of tax, whether such rate is at the usual rate applicable to a dividend or at a higher
rate. The Trustee shall transfer the dividend to the grantees in accordance with instructions that he shall receive from the Company.
Alternatively, the Company shall be entitled to pay the dividend directly to the grantee subject to the deduction of the applicable
tax.

 

		12.3	Without derogating from the provisions of Sections 11.2 and 12.2 hereof, the Company or the Trustee
shall be entitled to set off and deduct at source from any dividend any sum that the grantee owes to the Company (including any
Related Company) or the Trustee, whether under the Plan or otherwise, and/or any sum that the grantee owes to the tax or other
authorities.

 

		13.	RIGHTS AND/OR BENEFITS ARISING OUT OF THE EMPLOYEE/ EMPLOYER RELATIONSHIP AND THE ABSENCE
OF AN OBLIGATION TO EMPLOY

 

		13.1	No income or gain which shall be credited to or which purports to be credited to the grantee as
a result of the Plan, shall in any manner be taken into account in the calculation of the basis of the grantee’s entitlements
from the Company or any Related Company or in the calculation of any social welfare right or other rights or benefits arising out
of the employee/employer relationship. If, pursuant to any law, the Company or any Related Company, shall be obliged for the purposes
of calculation of the said items to take into account income or gain actually or theoretically credited to the grantee, the grantee
shall indemnify the Company or any Related Company, against any expense caused to it in this regard.

 

    	13

    	 

    

 

		13.2	Nothing in the Plan shall be interpreted as obliging the Company or any Related Company to employ
the grantee and nothing in the Plan or any option granted pursuant thereto shall confer upon any grantee any right to continue
in the employment of the Company or any Related Company or restrict the right of the Company or any Related Company to terminate
such employment at any time. The grantee shall have no claim whatsoever against the Company or any Related Company as a result
of the termination of his or her employment, including, without limitation, any claim that such termination causes any options
to expire and/or prevents the grantee from exercising the options and/or from receiving or retaining any shares pursuant to any
agreement between him or her and the Company, or results in any loss due to an imposition, or earlier than anticipated imposition,
of tax or other liability pursuant to applicable law.

 

		14.	ADJUSTMENTS

 

			Upon the occurrence of any of the following described events, a Grantee’s rights to purchase
Shares under the Plan shall be adjusted as hereinafter provided:

 

		14.1	In the event that the Company distributes a cash dividend, the effective date for
the distribution thereof, will take place after the date of the allocation of the Options to the Trustee for a Grantee, but before
the exercise or expiry of the Options, the exercise price shall be decreased in respect of each Option by the amount of the dividend
per share. For the avoidance of doubt, under no circumstances will the exercise price be decreased to a price which is less then
the nominal value of an ordinary share of the Company.

 

		14.2	In the event that the Company distributes bonus shares, the effective date for the
distribution of which takes place after the date of the allocation of the Options to the Trustee for the Grantee, but before the
exercise or expiry of the Options, the number of Shares to which the Grantee is entitled upon the exercise of the Options shall
increase by the number of the Shares that the Grantee would have been entitled to as bonus shares, had he exercised the Options
prior to the effective date for the distribution of the bonus shares.
The exercise price of each Option shall not vary as a result of the increase in the number of Shares to which the Grantee
is entitled in the wake of the distribution of bonus shares.

 

		14.3	If rights to acquire any securities whatsoever are offered to Company shareholders by way of rights,
the Company shall act with a view that the number of Shares that each Grantee is entitled to upon the exercise of the Options will
be adjusted multiplying it by the Benefit Ratio.

 

			Benefit Ratio - the closing price of the stock exchange on the Last trading day before the
Ex Date divided by the base price of the ex-rights stock.

 

		14.4	In any event of division or consolidation of the Company’s share capital, or
any other corporate capitalization event of a significantly similar nature, the Company shall effect such changes or adjustments
as are required to prevent dilution or increase in a Grantee’s rights, pursuant to the Plan with respect to the number and
class of the Shares in relation to the Options not yet exercised by the Grantee and/or the exercise price of each Option.

 

		14.5	In any event of a merger, spin-off and/or any other structural change, Options which
have been granted under this Plan, shall be replaced by, or converted to, an alternative option in the Company after such structural
change, all at the absolute discretion of the Company’s Board.

 

    	14

    	 

    

 

		15.	TERM, TERMINATION AND AMENDMENT

 

			Unless the Plan shall theretofore have been terminated as hereinafter provided, the Plan shall
terminate on, and no option shall be granted after, the tenth anniversary of the date the Plan is adopted by the Board. The Board
may at any time terminate, modify or amend the Plan in such respects as it shall deem advisable. Options granted prior to termination
of the Plan may, subject to the terms of the Plan and any Agreement, be exercised thereafter. No amendment or modification of the
Plan may, without the consent of the grantee to whom any option shall theretofore have been granted, adversely affect the rights
of such grantee under such option.

 

		16.	EFFECTIVENESS OF THE PLAN; APPROVALS

 

			The Plan shall become effective as of the date determined by the Board. Notwithstanding the foregoing
and Sections 3 and 15 above, in the event that approval of the Plan or any modification or amendment thereto by the shareholders
of the Company is required under applicable law or pursuant to applicable stock exchange rules or regulations, such approval shall,
to the extent possible, be obtained within the time required under the applicable law, rule or regulation. If such shareholder
approval is required in connection with the application of specified tax treatments, the Company shall make reasonable efforts
to obtain such approval within the required time.

 

		17.	RELEASE OF THE TRUSTEE AND THE ATTORNEY FROM LIABILITY

 

			In no event shall the Trustee or the Attorney be liable to any grantee under the Plan, or to a
purchaser of shares from any grantee with respect to any act which has been or will be carried out in relation to the Plan, its
execution and any matter connected thereto or arising therefrom. The grantee will be required to covenant upon signing the Agreement
that he or she will not make any claim against the Trustee or the Attorney in any manner whatsoever and on any ground whatsoever
and that he or she will expressly agree that if the Trustee or the Attorney are sued by them, then the Trustee or the Attorney
shall be entitled by virtue of this Section alone to apply to the court for dismissal of the action against them with costs.

			

		18.	GOVERNING LAWS

 

			The Plan and all instruments issued thereunder shall be governed by and construed in accordance
with the laws of the State of Israel, subject to the provisions of the Code with respect to Incentive Stock Options and, in the
event of any ambiguity or conflict, the provisions hereof shall be so construed and applied as to give effect to the intention
that any Incentive Stock Option granted will qualify as such under Section 422 of the Code.

 

*               *               *

 

    	15

    	 

    

 

RedHill Biopharma Ltd.

 

Appendix A

 

to 

RedHill Biopharma Ltd.’s Employee
Option Plan (2010)

 

(Section 9.2)

 

NOTICE OF EXERCISE

 

Date: ______________

The Trustee under the RedHill Biopharma Ltd.

Employee Option Plan (2010) (the “Plan”)

 

Dear Sirs,

 

Re: Notice of Exercise

 

I hereby wish to inform you that it is my
desire that of the Option which was granted to you on ________ to acquire ______ (________) Ordinary Shares of RedHill Biopharma
Ltd. (the “Company”) on my behalf, you exercise and acquire on my behalf ______ (________) of the Ordinary Shares
subject to the said Option at a price of ____ per share, all in accordance with the Plan.

 

Attached to this Notice is a check in the
amount of ________ ( ________) as payment for the abovementioned shares.

 

I am aware that all the shares shall be allotted
to you, registered in your name and that you shall hold all the share certificates representing such shares.

 

Likewise, I am aware of and agree to all the
other provisions of the Plan and applicable law.

 

Yours sincerely,

	 	
	 	_______________
	 	Employee’s name

 

    	16

    	 

    

 

RedHill Biopharma Ltd.

 

Appendix B

 

to RedHill Biopharma Ltd.’s Employee
Option Plan (2010)

 

(Section 9.2)

 

NOTICE OF EXERCISE

 

Date: ______________

 

RedHill Biopharma Ltd.

___________

___________

 

Dear Sirs,

 

Re: Notice of Exercise

 

Please be advised that I hereby exercise
________ (________) of the shares of Ordinary Shares subject to the Option which was granted to me on behalf of __________ on ________
to acquire ________ (________) shares of Ordinary Shares of RedHill Biopharma Ltd., at a price of ____ per share, all in accordance
with the Plan.

 

Attached to this Notice is a check in the
amount of ________ ( ________) as payment for the abovementioned shares.

 

Yours sincerely

 

______________

The Trustee

 

 

    	17

    	 

    

 

RedHill Biopharma Ltd.

Appendix C

 

to RedHill Biopharma Ltd.’s Option
Plan (2010)

 

(Section 10.2)

 

IRREVOCABLE PROXY AND POWER OF ATTORNEY

 

I, the undersigned, ________ , hereby appoint
[                     ] or whomever shall replace it as trustee pursuant to RedHill Biopharma Ltd.’s Option Plan (2010) (the “Trustee”
and the “Plan”, respectively) or whomever the Trustee shall designate (the Trustee and/or such designee shall
be referred to hereafter as the “Attorney”) as my proxy to participate and vote (or abstain) for me and on my
behalf as the Attorney at his sole discretion shall deem appropriate, on all matters and at all meetings of shareholders (whether
ordinary, extraordinary or otherwise), of RedHill Biopharma Ltd. (the “Company”), on behalf of all the options
of the Company held by the Trustee on my behalf and hereby authorize and grant a power of attorney to the Attorney as follows:

 

I hereby authorize and grant power of attorney
to the Attorney for as long as any options which were allotted or granted on my behalf are held by the Trustee or registered in
his name, or for as long as the certificates representing any shares are held by the Trustee, to exercise every right, power and
authority with respect to the options and to sign in my name and on my behalf any document (including any agreement, including
a merger agreement of the Company or an agreement for the purchase or sale of assets or shares (including the shares of the Company
held on my behalf) and any and all documentation accompanying any such agreements, such as, but not limited to, resolutions, decisions,
requests, instruments, receipts and the like), and any affidavit or approval with respect to the options or to the rights which
they represent in the Company in as much as the Attorney shall deem it necessary or desirable to do so. In addition and without
derogating from the generality of the foregoing, I hereby authorize and grant power of attorney to the Attorney to sign any document
as aforesaid and any affidavit or approval (such as any waiver of rights of first refusal to acquire shares which are offered for
sale by other shareholders of the Company and/or any waiver of any preemptive rights to acquire any shares being allotted by the
Company, in as much as such rights shall exist pursuant to the Company’s Articles of Association as shall be in existence
from time to time) and/or to make and execute any undertaking in my name and on my behalf if the Attorney shall, at his sole discretion,
deem that the document, affidavit or approval is necessary or desirable for purposes of any placement of securities of the Company,
whether private or public (including lock-up and/or market stand-off arrangements and undertakings), whether in Israel or abroad,
for purposes of a merger of the Company with or into another entity, whether the Company is the surviving entity or not, for purposes
of any reorganization or recapitalization of the Company or for purposes of any purchase or sale of assets or shares of the Company.

 

This Proxy and Power of Attorney shall
be interpreted in the widest possible sense, in reliance upon the Plan and upon the goals and intentions thereof.

 

This Proxy and Power of Attorney may be
revoked after the consummation of the initial public offering of the Company’s shares, pursuant to an effective registration
statement, prospectus or similar document in Israel or such other jurisdiction as is determined by the Board of Directors of the
Company and shall be irrevocable until such time as the rights of the Company and the Company’s shareholders are dependent
hereon. The revocation or expiration of this Proxy and Power of Attorney shall in no manner effect the validity of any document
(as aforesaid), affidavit or approval which has been signed or given as aforesaid prior to the revocation or expiration hereof
and in accordance herewith.

 

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This Proxy and Power of Attorney shall
also apply to all options in other entities granted to or on behalf of the undersigned and held by the Trustee in consideration
or in exchange for, or by virtue of, any options of the Company in connection with any consolidation, merger, spin-off or like
transaction with respect to the Company, and the term “Company” when used herein shall include any other such entity.

 

IN WITNESS WHEREOF, I have executed
this Proxy and Power of Attorney on the __ day of ________, ____.

 

__________________

Name:

I.D. Number:

 

CONFIRMATION

 

I, the undersigned, ________, hereby confirm
the signature of ________ which appears above.

 

_________________

 

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